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CO 061
Conservation Order Cover Page XHVZE This page is required for administrative purposes in managing the scanning process. It marks the extent of scanning and identifies certain actions that have been taken. Please insure that it retains it's current location in this file. (~2_~ _ Conservation Order Category Identifier Organizing RE~-. DIGITAL DATA OVERSIZED (Scannable with large ploffe.~/.scan net) V Color items: [] Diskettes, No. ~~Maps: [] Grayscale items: [] Other, No/Type [] Other items [] Poor Quality Originals: OVERSIZED (Not suitable for [] Other: plotter/scanner, may work with 'log' scanner) [] Logs of various kinds [] Other NOTES: BY: Scanning Preparation BY: Production Scanning Stage I PAGE COUNT FROM SCANNED DOCUMENT: ~ ,/" PAGE COUNT MATCHES NUMBER IN SCANNING PREPARATION: __/LYES ~ NO /! Stage 2 IF NO IN STAGE 1, PAGE(S) DISCREPANCIES WERE FOUND: ~ YES ~ NO BY: (' ROB!,N// MARIA DATE:,..~'"~;;;:~"~'~._~ /S/ (SCANNING IS COMP"I-~=~.F~rHIS 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 /t~ STATE OF AIJkSKA ,i DEPART~ENT OF NATURAL P~ESOURCES DIVISION OF ~XIINES ~2ND ~f[NEP~ALS Alaska Oil and Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99504 Re: The beneficial use of gas produced ) as the result of crude oil producing ) operations in the Granite Point, McArthur ) River, and Trading Bay Fields ) Conservation Order Granite Point, McArthur River, and Trading Bay Fields May 10, 1968 IT APPEARING TI-tiT: 1. The Oil and Gas Conservation Cor~ittee, pursuant to Section 2009 of the Oil and Gas Conservation Regulations, published in the Anchorage Daily News on January 11, 1968, the notice of public hearing on the referenced matter to be held on February 7, 1968. 2. Waivers of personal service were received from each of the affected parties. 3. A public hearing was held on February 7, 19.68, in the City Council Chambers of the Z. J. Loussac Library. Test~anony and exhibits were presented by Marathon Oil Company, Mobil Oil Corporation, Pan ~anerican Oil Corporation., and Union Oil Company of California. 4. The public hearing was continued until April 10, 1968~ by a notice published in the Anchorage Daily News on March 1!, 1968. The public hearing was further continued until May 8, 1968: by a notice published in the Anchorage Daily News on April !0, 1968. 5. Waivers of personal service were received from each of the affected parties for each of the two continuances. 6. The public hearing was reconvened on May 8, 1968, in the City Council Chambers of the Z~ J. Loussac Library. Testimony was presented by Mobil Oil Corporation, Pan American Petroleum Corporation, and Union Oil. Company of California. J~/qD IT FURTHER APPEARING T~T the following findings apply to the McArthur River Field: 1. The field is in a very early stage of development and a considerable amount of drilling will be necessary to thoroughly evaluate the reservoirs~ but enough, is not known to permit reasonable predictions of gas production and gas usage. CONSERVATION ORDER #61 Page 2 May 10, 1968 2. Gas production will exceed gas usage for slightly over ten years but the volume available will be constantly decreasing after the first five years. 3. The produced gas has a high nitrogen content which may render it undesir- able for uses other than heating. 4. The high nitrogen content will prohibit use of the gas in the liquifica- tion plants being constructed on the east side of the Inlet. AND IT FURTHER APPEARING THAT the following findings apply to the Trading Bay Field: 1. Field limits have not been defined. 2. The producing formations are folded, faulted and truncated creating a .complex geologic structure which will result in loss of control of injected gas. 3. Gas production will exceed gas usage for six years, but the volume available will be constantly decreasing after the first two years. AND IT FURTt~R APPEARING THAT the following findings apply to the Granite Point Field° 1. Field limits have not been defined. 2, Produced gas will exceed gas usage for eleven years but a constantly declining volume will be available after the first two years. AND IT FURTHER APPEARING THAT the following findings apply to all fields covered by this order: 1, There is no feasible way to lay a pipeline from the productive areas on the west side to the east side of the Inlet across the deep trench with present pipeline technology, 2. Gas available for market is concentrated in the early years and a deficiency will exist from 1974 to 1979, 3, Ali.. gas now being produced is originally found in' solution with the oil and in order to produce the oil the gas must also be produced, 4. The gas being flared is casinghead gas which is quite different in character and properties from gas well gas. CONSERVATION ORDER #61 Page 3 May 10, 1968 5. A small volume of gas is produced with each barrel of oil and the amount of gas does not exceed the amount reasonably necessary to lift the oil to the surface. 6. ~e reservoir energy is being efficiently utilized. 7. Ail gas production which exceeds gas consumption is being flared and burned for safety purposes. 8. Operators have installed gas lift equipment or made plans to install equipment to utilize as much of the heat energy as possible on the off-shore platforms. 9. Lines and most facilities have been installed to move the gas production from the platforms to the shore for possible marketing if and when a market develops. I0. ~ere is no market for casinghead gas at present since costs to dehydrate, compress, transport and process the gas exceed the value of the tail gas plus the extracted liquids. 11. Operators are investigating and installing pilot water injection projects and it is not feasible to re-inject gas into the oil reservoirs until the success or failure of the water injection projects are proved. 12. If water injection does not prove feasible the operators will re-evaluate the feasibility of gas injection for pressure maintenance. 13. It is not feasible to store gas in undeveloped reservoirs in this field. because of high compression .and injection costs, possible loss of hydrocarbons~ safety hazards, and contamination dangers. 14. There are no depleted oil or gas reservoirs in which to store the gas. 15. The operators have utilized all gas possible for lifting the production, fuel. and generation of power= and have attempted to secure a market for the remaining gas, 16. Maximum beneficial use of the gas is being obtained under the circumstances. 17. No illegal use is being made of the produced gas° NOW, THEREFORE~ IT IS ORDERED that 'the oil producing operations in the Granite Point Field, the McArthur River Field, and the Trading Bay Field be conducted in such a manner that the maximum quantity of casinghead gas be utilized and the quantity of gas flared be kept to a minimum. CONSERVATION OPdPER f~61 Page 4 May 10, 1968 IT IS FURTHER ORDERED that the burning of the gas produced with the oil be authorized only in the amount that the gas cannot be beneficially utilized for fuel, power, drilling, pressure maintenance, storage or market sales. The Oil and Gas Conservation Committee will maintain continuing surveilance of the disposition of casinghead gas in the Granite Point Field, the McArthur River Field, and the Trading Bay Field. This order will be effective for 120 days and may be extended in successive 120-day periods upon a showing by each operator to the satisfaction of the Committee that the operator is actively pursuing a program to beneficially utilize the gas which is being flared. CONSERVATION ORDER ~61 Page 5 >lay 10, 1968 DONE at Anchorage, College, and Junaau, Alaska, and dated Hay 10, 1968. thomas R Marshall, [- ~ . [ {' ._ , xecut]ve Secretary Alaska Oil and Gas Conservation Co~m~ittee Concurrence: s A. Williams, Cha~ l ka Oil and Gas Conservation Committee Dale 17allington, ~~// Alaska Oil and Gas.. Conservation C~ommmttee' Kaf_l L. VonderAhe, Member Alaska Oil and Gas Conservation Committee Harry W. Kugler, ~..~.ember Alaska Oil and (las Conservation Committee Mobil Oil Corporation POST OFFICE POUCH 7-003 ANCHORAGE, ALASKA 99501 March 26,-,L1,97t , , ....... Mr. Thomas R. Marshall, Jr. Executive Secretary Alaska Oil & Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99503 Dear Mr. Marshall' In response to your directive concerning "Extension of Conservation Orders No. 32 and No. 61 For An Additional 1Z0 Day Period", Mobil Oil Corporation sub'mits the following information regarding the utilization of casing head gas from the Granite Point Platform. Since our affidavit of December 23, 1970, Mobil has installed additional cooling capacity and a stabilizer in an effort to establish greater gas condensate recoveries from the second stage of our 1550 HP Gas Lift Compressor. All natural gas liquids recovered are mixed with the produced crude oil and are ultimately sold to the local pipeline. At present we are recovering approximately 80 B/D to 100 B/D. We anticipate that the recovery will improve as our operators become more fa'miliar with the equipment. In addition to the above, Mobil has equipment on board the platform capable of using casing head gas as follows' one (1) 800 KW Gas Turbine Generator utilizing about Z10 MCF/D one (1) 1550 HP Gas Lift Compressor utilizing about ZZ0 MCF/D one (1) 350 HP Gas Lift Compressor utilizing about 60 MCF/D two (Z) 1450 HP Gas Turbine-Injection Pu'mps utilizing about 900 MCF/D one (1) Deaerating Colu'mn utilizing about 100 MCF/D Further, Mobil has two (2) treaters in operation at its Granite Point Shore Site which utilize about 50 MCF/D when in operation. Also, Mobil furnishes fuel gas for two (2) 500 HP gas engine driven shipping pumps installed at Granite Point which will utilize about 200 MCF/D under full load continuous duty operations. We are continuing in our efforts to utilize casing head gas in every Mr. Thomas R. Marshal[, Jr. March 26, 1971 Page 2 beneficial way possible and respectfully request exte.nsion of Conservation Orders No. 32 and No. 61 commencing April 26, 1971. Yours very truly, AVBarnett/kg cc' W. M. Jones Pan American C. C. Woodruff Divi sion En gin ee r Alaska Division STATE OF ALASKA ) · ss. THIRD JUDICIAL DIST'RICT ) THIS IS TO CERTIFY, that on this 26th day of March, 1971, before me, the undersigned, a Notary Public in and for the State of Alaska, duly commissioned and sworn as such, personally appeared H. N. PORTER, to me personally known, and known to me to be the person described in and who executed the foregoing instrument, and he acknowledged to me that he executed the said instrument freely and voluntarily with the knowledge of its contents, for the uses and purposes therein mentioned. WITNESS my hand and Notarial Seal this 26th day of March, 1971. (Seal My commission expires' 10-25-1971. ALASKA OIL AND GAS CONSERVATION COMMITTEE January 21, 1971 TO: SUBJECT: COOK INLET GAS PRODUCERS Extension of Conservation Order Nos. 32 and 61 for an Additional 120-Da~. Period The Alaska Oil and Gas Conservation Committee has reviewed the affidavits and statements submitted pursuant to Conservation Order Nos. 32 and 61 and directive dated July 15, 1968. Essentially all of the equipment on the thirteen oil-producing platforms in the Cook Inlet have been converted to use casinghead gas as fuel. Additional equipment to be installed in the foreseeable future on the Grayling, Dolly Varden, King Salmon, Monopod, MGS "C" and Granite Point Anna and Bruce platforms will be fueled by casinghead gas and consume an estimated 7,200 MCF per day. The attached table tabulates pertinent production data by fields. In 1970 casinghead gas produced at Cook Inlet platforms averaged 3,016,823 MCF per month; of this amount 2,518,414 MCF per month, or 83.5%, was flared. Flaring of Cook Inlet casinghead gas increased from 6,120 MCF per day in 1969 to 7,540 MCF per day in 1970, or 12.8%. The Committee believes a market may exist for the gas now being flared. Decision It is the Committee's decision that the operators are beneficially utiliz- ing the casinghead gas to a substantial extent but that a market may exist for the gas now being flared and its development should be encouraged by every means possible other than reducing ultimate recovery of oil. .Di~e. ctive Conservation Order Nos. 32 and 61 are extended for an additional 120-day period, from December 27, 1970 through April 26, 1971. A public hearing on the matter of extension of Conservation Order Nos. 32 and 61 beyond the April 26 termination date will be held upon not less than 30 days notice. Thomas R. Marshall, Jr. Executive Secretary Alaska Oil and Cas Conservation Committee Fields Granite Point Middle Ground Shoal McArthur River Trading Bay Totals Comparative Disposition of Casinghead Gas Produced Monthly Average Casinghead Gas in Cook Inlet 1969 Produced MCF Flared MCF 1970 (11 Months) Utilized Produced Flared 722,390 500,517 797,048 552,322 2,572,277 649,632 415,354 679,436 489,204 2,233,626 % MCF % MCF 89.9 72,758 10.1 818,452 83.0 85,163 17.0 511,838 85.2 117,612 14.8 1,130,443 88.6 63,118 11.4 556,090 86.8 338,651 13.2 3,016,823 MCF % MCF 712,308 87.0 421,466 82.3 916,429 81.1 468~211 84.2 2,518,414 83.5 Utilized 106,144 90,372 214,014 87~879 498,409 13.0 17.7 ' 18.9 15.8 16.5 1970 Monthly Average Casi~nghead Gas Fields Granite Point Middle Ground Shoal McArthur River Trading Bay Totals Produced MCF + % of 1969 818,452 511,838 1,130,443 556~090 3,016,823 +13.3 + 2.3 +41.8 + 0.7 +17.3 Flared MCF + % of 1969 712,308 421,466 916,429 468~211 2,518,414 +9.6 + 1.5 +34.9 -4.3 +12.8 Utilized MCF -+ % of 1969 106,124 90,372 214,014 87~879 498,409 +45.9 +6.1 +82.0 +39.2 +47.2 AtlanticRichfieldCompany North American Producing Division Alaska I~:" ict Post OffiL,. Oox 360 Anchorage, Alaska 99501 Telephone 907 277 5637 January 8, 1971 Mr. Thomas R. Marshall, Jr. Executive Secretary Alaska Oil and Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99504 Re: Beneficial Use of Gas Produced Trading Bay Northeast Oil Pool Dear Mr. Marshall: O.o. ¥! Atlantic Richfield Company hereby requests administrative extension of Conservation Orders No. 32 and 61 for another 120-day period starting January l, 1971. At the present time, all gas produced in association with the oil production from the Spark Platform is being flared. Early in February, we anticipate that repairs to our Worthington 750 hp compressor will be complete. At this time, casinghead gas will be used as fuel for the power generation turbine except that minimum volume required to o)erate the platform flare for safety purposes. I~ truly yours, R A. Crosky ~ District ProdUction and Drilling Superintendent RAC/JWH:sr STATE OF ALASKA ) ) ss THIRD JUDICIAL DISTRICT) Subscribed and sworn to before me this day of January, 1971. (, NO "'~ ~,"'" My Co~ission Expires: August 3, 1974 , STATE OF ALASKA ) ) THIRD JUDICIAL DISTRICT ) ss. THIS IS TO CERTIFY that on this 23rd day of December, 1970, before me, the undersigned, a Notary Public in and for the State of Alaska, duly commissioned and sworn as such, personally appeared C. C. WOODRUFF, to me personally known, and known to me to be the person described in and who executed the foregoing instrument, and he acknowledged to me that he executed the said instrument freely and voluntarily with the knowledge of its contents, for the uses and purposes therein mentioned. WITNESS my hand and Notarial Seal this 23rd day of December, 1970. 'Nota~Publfc in And for Alaska My commission expires: 10-25-71 ANC~IO~Ag~ Mobil Oil Corporation Alaska Division Pouch 7-003 Anchorage, Alaska December 23, 1970 Mr. Thomas R. Marshall, Jr. Executive Secretary Alaska Oil and Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99503 Dear Mr. Marshall: !'i k'; ~ Zi .., ~ ,~ ..... i..,. i..'' i In response to your directive concerning "Extension of Conservation Orders No. 32 and No. 61 For An Additional 120 Day Period", Mobil Oil Corporation submits the following information regarding the utilization of casing head gas from the Granite Point Platform. Since our affidavit of August 13, 1970, wells #12-24, #42-23X and #33-14 have been converted to water injectors thus making Mobil' s _~~..e...~.~p~o_'..l~ .~ate rflood full~L_o.p__e ration,.a,,~z Equip'men t on board the Platform capable of using casing head gas is as follows: I c. ..... 2__ ......... __!. 2 ENG ......... I 3 ENG __!__f I 5 ~-..-, ~ 3 GEOL ~ REV J DRAFT .......... ...... CONFER: one (1) one (1) one (1) two (Z) one (1) 800 KW Gas Turbine Generator utilizing about Zl0 MCF/D 1550 I-IP Gas Lift Compressor utilizing about 220 MCF/D 350 HP Gas Lift Compressor utilizing about 60 MCF/D 1450 HP Gas Turbine - Injection Pumps utilizing about 900 MCF/D Deaerating Column utilizing about 100 MCF/D In addition to the above, Mobil has two (2) treaters in operation at its Granite Point Shore Site which utilize about 50 MCF/D when in operation. Further, Mobil furnishes fuel gas for two~}.)_....5....0_0.TJ~_g~as engine driven shipping pumps installed at Granite Poilit which will utilize about 200 MCF/D under full load continuous duty operations. We are continuing in our efforts to utilize casing head gas in every beneficial way possible and respectfully request extension of Conservation Orders No. 32 and No. 61 commencing January l, 1971. AVBarnett/kg C. C. Wood Division En Alaska Division AMERICAN PETROLEUM COnFO ION SECURITY LIFE BUILDING DENVER~ COLORADO 80202 November 25, 1970 File: AMR-2093-986.511 Re: Beneficial Re-Use of Gas Produced MGS and Granite Point Fields Mr. Thomas R. }~rshall, Jr. (3) Executive Secretary Alaska Oil and Gas Conservation Committee 300! Porcupine Drive Anchorage, Alaska 99504 Cc* Dear Mr. Marshall: On behalf of the Chakachatna Group of companies, we hereby request administrative extension of'Conservation Orders 32 and 61 for another 120 day period, starting December 28, 1970. Since our affidavit of JUly 30, 1970, Unit Well No. 2 on South Middle Ground Shoal Platform Dillon was converted to water injection on August 19, 1970. Water injections are satisfactory with favorable response being noted at both Platform Dillon and ~S Platform Baker. Water injections at both of these platforms are ca'using the reservoir pressure to increase which will conserve gas by minimizing produced' gas-oil ratios. Equipment now capable of using casinghead gas. as fuel isles-follows: MGS - Baker MCFD 2 AC Generators.(one 650 HP and one 750 HP) 336 1 Steam Generator 168 1 Gas Lift Compressor 234 1 Glycol Regenerator 5 1 Turbine Pump __=~36 ' 1,079 SMGS - Dillon 8 Waukesha Engines (Kobe) 1 Steam Generator 1 AC Generator (Gas Turbine Driven) 1 Turbine Pump MCFD 346 168 336 336 1,186 Mr. Thomas R. Marshall, Jr. November 25, 1970 Page 2 Note: The one AC generator (gas turbine driven) provides sufficient power to replace 2 AC generators (Waukesha gas driven) previously shown in our affidavits on the Dillon Platform. If lower operating costs result by virtue of this change, additional gas turbine driven generators will be installed on our other operated Cook Inlet platforms. (our last affidavit included the gas turbine driven AC generator with Bruce Platform equipment; how- ever, an equipment failure on Dillon .Platform necessitated the revised installation.) Granite Point - Anna 1 Steam Generator 1 Turbine Compressor 6 Waukesha Engines (Kobe). 2 AC Generators. MCFD 168 336 259 360 1,123 Granite Point - Bruce 1 Steam Generator 5 Waukesha Engines (Kobe) 2 AC Generators Future Granite Point 4 Turbine Pumps 1 Turbine Compressor MCFD 168 216 360 744 2,400 336 2,736 Note: Operation of the turbine compressors is currently alternated between Granite Point Platform Anna and Bruce; therefore, only one unit is in actual operation at a time. After waterflood start-up, however, the second turbine.compressor will be required full. time. East Foreland Treating Facility '1Freewater Knockout ' 1 Treater 2 Glycol Heaters (Winter Only) MCFD 206 206 178 59O Mr. Thomas R. Marshall, Jr. November 25, 1970 Page 3 Water injection pump vibration which has caused the delay in water injection start-up from both Pan American operated platforms in Granite Point Field has been essentially eliminated by the manufacturers. We are now hopeful that water injections will commence during January, 1971, at which time four.gas'fueled turbine driven injection pumps and the additional turbine compressor will go into service. Yours very truly, cc: See Attached Mailing List ~[A IL ING LIST Mr. B. L. Faulk (3) Shell Oil Company 430 7th Avenue Anchorage, Alaska 99501 Mr. F. L. Franz Skelly Oil Company 1088 Lincoln Tower Building Denver, Colorado 80203 Mr. W. G. Christensen Mobil Oil CorpOration P. O. Box 1743 Anchorage, Alaska 99501 Mr. Ralph G. Crews Suite 600 425 "G" Street Anchorage,~ Alaska 99501 Mr. E. F. Griffin (3) Union' Oil Company of California 507 West Northern Lights Boulevard Anchorage, Alaska 99503 Mr. F. K. Krebill Pan American Petroleum Corporation P. Oo Box 779 Anchorage, Alaska 99501 Mr. H. W. Patterson Phillips Petroleum Company 1300 Security Life Building · Denver, Colorado 80202 }~. Howard Slack Atlantic Richfield Company P. O. Box 360 Anchorage,' Alaska 99501 Mr. T. J. Files Pan American. Petroleum Corporation Security Life Building Denver, Colorado 80202 STATE OF COLORADO COUI~fY OF DENVER SS G. J. Ross, being first duly sworn upon oath deposes and says that he is employed as an engineering supervisor by Pan American Petroleum Corporation, that the foregoing Application has been prepared under his supervision and direction, that he is familiar with the information contained in the Application, and that the matters and the things therein set forth are true and correct to the best of his knowledge and belief. G. J. RoSs Subscribed and sworn to before me this 25th day of November, 1,970. commission expires: Notary Public Union Oil and Gas ~' :'-: Western Region ,. Union Oil Company of C'~lifornia 909 W. 9th Avenue, Anchorage, Alask 99501 Telephone: (907) 279-7681 S~a~e Division of Nines & Department of Natural Resources 3001 Porcupine Road ATTN' Mr. Thomas R. Marshall, Jr. CASINGHEAD GAS UTILIZATION COOK INLET, ALASKA The attached sheets (3) describe current and planned utilization of casinghead gas for properties operated by Union Oil Company of California in the Mc Arthur River and Trading Bay Fields. This information is submitted in compliance with Conservation Orders 32 and 61. Very truly yours, Eugene F. Griffin District Operations Manager EFG:mgl Enclosures - 3 A~ Union Oil Co. - Onerator Beneficial Use of Produced Gas Trading Bay Unit GRAYLING PLATFORM Equipment Now Using Gas Glycol boi. lers Solar turbine driven generators Solar turbine driven gas t'ransrni ss ion compressors Solar turbine driven gas lift c'ompressors Deoxygenator 1'owers Solar turbine driven waterflood pumps Solar turbine driven crude oil pump ('5'0% toad) Current Total MCF/D 100 1050 700 1400 400 z, iO0 175 Additions t"o be ~..fade That Will ~ L .... ~. Gas 3 Solar turbine driven.gas lift compresso.rs I Solar turbine driven AC generator I - 3000 HP Solar turbine driven ¢aler,tc)od pump Current Total 1050 350 tO50 2450 DOLLY' VARDEN PLATFO'RH Equipment Now Using Gas Solar' turbine driven generators Gas lift compressor engines - 6000 HP Steam. Glycol boilers Solar- turbines for' waterflood Deoxygenator tower' Cur'rent Total I050 I000 25 2100 2OO Additions to be blade that Wilt Use Gas Solar- turbine driven generator De o x y g e n a 't' o r t ow e r Solar tur'bir, e for' waterftood 200 Current To'f-al[II}:! iC ,.~ ....... I~'."' r,; i!,...?-...~z.".:¢:~.~? !!'9~,~i .... TRADING BAY UNIT (Cont.) A~ KING SALMON PLATFOPd,t Equipment Now Using Gas ! - 5000 HP turbine driven waterflood pump I Deoxygenator'tower 2 - 2000 HP gas lift compressors 2 - 1500 HP turbine driven generators I - I100 HP turbine driven gas transmission compressor'- Current Total ;ICF/D 1500 200 I000 1500 350 4550 Be Additions to be Made That Will Use Gas i Steam generator I Hot water" bo i I er Current Total 120 300 420 'A · WEST FORELAND ONSHORE SITE Equipment Now Usin9 Gas 9 Heater treaters 3 Line heaters 2 Flow splitters 3 Electrical genera't"or units (Standby) I Glycot dehydrator 2 Glycol boilers 2 LACT bui I ding heaters 2 Hea'fers for pump mo?ors 2 CiPL Solar turbines I CIPL Waukesha driven pump (Standby) 2 Skim tank heaters i Ho't wa'her heater Liquid extraction plant' 2 Solar' furbine drivon electrical genera'for (80¢ load) 2 I i O() HP qas cornp ',~'~'r, I Domestic tango Current Tota~ 1200 275 5OO 110 5 5 7O0 I0 5 250 70O /00 Variable 45~5 B~ Addi'f'ic.,r'~s fo bo !'.lade Thai' Wit! L,!se Gas Mona t':"J anr',ed ..],_L,.:.?,..!?;!L.:.,:._r;,!2]L].J&j]L,:~E,., .~. ~ "'~- ers TRADING BAY PLT (Cont.) Equipment Now Using Gas (Cont.) 2 Gas lift compressor engines - $80 HP each 2 Cat DC generators I Deoxygenator tower 2 Solar turbine driven waterflood pumps Current Total MCF/D 300 2OO 200 7OO 1600 B~ Additions 'fo be Made That Will Use Gas t Solar' turbine driven AC generator Current Total 35O 350 RCH: mg I II-25-70 PETROLEUM PRODUCTS November 19, 1970 TEXACO INC. 4-1579 99503 Mr. T. R. Marshall, Jr. Executive Secretary Oil and Gas Conservation Committee Division of Oil and Gas State of Alaska 3001 Porcupine Drive ~ I Anchorage, Alaska 99501 t J~ Dear Mr. Marshall: :/ In compliance with the extension of !ion Orders ~ 32 and # 61 issued October 9, 1970, we wish to advise the Oil and Gas Conservation Committee that subse- quent to our last report, we have installed additional arti- ficial lift equipment which has increased our fuel consumption by approximately 260"~MCF/D. The gas utilization on the Texaco-Superior Trading Bay Platform "A" is at a maximum at the present time, and virtually 100% of our equipment has been converted to operate on produced fuel gas. Yours very truly, TEXACO Inc. ~~ S."":rber Dist. Superintendent FAW: j om : i: · OIL Oc~obez 9, 1970 :Lt.. t~ .~ .'Co,mit.ree'~ opt~to~ ~e ~l~.d vol~ ~'lll eonCtuue ~o decre.as~. p~~C la~ of'a ~C for ~e ~ao bein,~ fla~d. ~t~l ~fid~iti m~ be ~ueet~ du~n~ th~ ex~e~tou Thomas 1~. Harshall, 3=. Cook Inlet Gao l~ro~uceru October 9, ~70 E~eusXou of ~onoervntiou Order Nos. 3:2 nad 6! for au Addit~Lonn~ 120-Day Period I~o~er L.. l~urrell C'~t~nau A~nska o~ and Cnn Conservation Connflttee "O. I. ~llbFeth, Jr. .:. l~nber Alaska 0ti and Gas Connervation CoumiCtee August 13, Mr. Tho'mas It. Marshall, Jr. Executive Se cre tary Alaska Oil and Gas Conservation Committee 3001 Porcupine Dr'ire Anchorage, Alaska 99503 1970 Dear Mr. Marshall' In response to your directive concerning "~,xten. sion of Conservation Orders No. 32 and No. 61 For an Additional 1g0-Day Period," Mobil Oil Corporatio.----~ submits"T~e following infor'mation regarding .the utilization of casing-head gas frol~z the Granite Point platform. Since our affidavit of March 11, 1970, the installation of the ~vater injection plant has been completed and final debugging is in progress. Well 24-13 was returned to an injector on May 1, 1970, andvcells MUC :#I-1 and MUC.#I-2 were converted to vcater injection on June 23, 1970 and June 24, 1970 respectively. Our intent is to convert wells ¢j12-24, f/42-Z3X and ~33-14 to injectors as rapidly as possible, hopefully by the end of this month. When the conversions are complete, equipment on board the platform capable of using casing-head gas is as follovcs: One (1) 800 KW Gas Turbine Generator utilizing about 210 MCF/D One (1) 1550 HP Gas Lift Compressor utilizing about 220 MCF/D One (1) 350 HP Gas Lift Compressor utilizing about 60 MCF/D Two (2) 1450 HP Gas Turbine-Injection Pumps utilizing about 900 MCF/D One (1) Deaerating Column utilizing about 100 MCt~/D iVir;. Thomas t{. Marshall, Jr. _ 2_ August 13, 1970 In addition to the above, Mobil has two treaters in operation'at the Granite Point Shoresite which utilize about 50 MCi~/D when in operation. Further, Mobil furnished fuel gas for the two (2) 500 HP gas engine driven shipping pumps installed at Granite Point which will utilize about ZOO MCF/D umder full load continuous duty operations. We are continuing in our efforts to utilize casing-head gas in every ~eneficial ~vay possible and respectfully request extension of Con'servation Orders No. 32 and No. 61 comrnencing September 1, i970. Very truly yours, C. C. Woodruff Division Engineer Alaska Division AVB-skn STATE OF ALASKA THIRD JUDICIAL DISTRICT This certifies that on this 14th day of August, 1970, before me, the undersigned, a Notary Public in and for the State of Alaska, per- sonally appeared W. G. Sole, to me known and known to me to be the person described in and who executed the foregoing inStrument, and acknowledged before me that he executed the same in the name and on behalf of said Mobil Oil Gorporation, freely and voluntarily for the uses and. purposes therein mentioned. Witness my hand and official seal the day and year to this certificate first above written. 'Ro(berta Zurn dj- Notary Public for Alaska My commission expires 12-15-73 PAN AMERICAN PETROLEUM CORI P. ATION SECURITY LIFE BUILDING DENVER: COLORADO 80202 July· 30~ 1·970 File: AMR-1410-986o.511 Re: Beneficial Re-Use of Gas Produced MGS'and 'Gra~i'tePoi~t Fields''' Mro Thomas Ro Marshall, Jro .(3) Executive Secretary Alaska Oil and Gas Conservation Committee 3001, Porcupine Drive Anch°rage~ Alaska 99504 Dear Mro Marshall: On behalf of the Chakachatna Group of companies, we hereby request administrative extension .of ,-Conservation Orders, 32 and 61 for another 120 day period, starting August, 30, 19700 Since our affidavit of March. 23, 1970~ Unit Well No. 12 on South Middle Ground Shoal Platform Dillon was converted tO water injection on April 9, 1970o In addition, a fourth injector~ Unit Well Noo. 2, is ~cheduled for conversion during August~ 197~o Water injections are satisfactory with favorable' response being noted at both Platform Dillon and MGS Platform Baker° Water injections at both of these platforms eventually can be expected to increase reservoir pressure which will conserve gas by mini- mizing' produced, gas-oil ratios° Equipment now capable of using casinghead' gas as fuel is as follows: MGS-Baker ---~~erators (one 650 HP and one 750 HP) 336 1 Steam Generator 168 1 Gas Lift Compressor 234 1 Glycol Regenerator 5 1 Turbine Pump 336 SMGS-Dillon :--~ WaUke-Sha Engines (Kobe 1 Steam Generator 2 AC Generators 1 Turbine Pump MCFD McFD · 346 168' 336 336 Mr o Thoma~ .R~ Marshall~ Jr o July 30~ 1970 Page 2 G'ran~ =e Point - Anna 1 Steam Generator 1 Turbine Compress'or 6 Wauke~ha Engines (Kobe) 2 AC Generators MCFD 336 259 3'60 · Granite Point - Bruce 1 Steam Generator 5 Waukesha Engines (Kobe) 1 AC Generator (Gas Turbine Driven) 168 216 336 Note= The one AC generator (gas turbine driven) provides sufficient power to replace 2 AC generators (Wa~kesha gas driven)'previously shown in our affidavits on the Bruce Platform° If lower operating costs result by virtue of this change, additional gas turbine driven generators will be installed'on our other operated Cook Inlet platformSo Future Granite Point 1 Turbine Compressor MCFD Note.~ Operation of the 'turbine'~ compres~so'rs' is currently alternated between Granite Point Platforms Anna and Bruce.~ therefOre~ only one 'unit is in actual operation at a time o After waterflood Startup, however~ the second turbine compressor will be required full timeo East Forelan__d_Tre_ating~. Facility 1 Freewater Kno6kou~ - ~ 1 Tr~a~r 2 Glycol Heaters (Winter Only) ,MCFD 20'6 178 We remain hopeful of starting' up water injections from both Pan American operated platforms in Granite Point in September, 1970, at which time four gas fueled turbine driven injection pumps and the additional turbine' compressor will go into service° See' Attached Mailing List Yours~~ver~.truly~~ STATE OF COLORADO COUNTY OF DENVER SS Ro Bo GILES being first duly sworn upon 'oath .deposes and says that he is.'employed as an engineering supervis'or by Pan American Petroleum Corporation~ that the foregoing. Application has been prepared under his supervision and directions that he is familiar with the information containedin the Application and that the matters and the things therein set forth are true and correct to the best of his know,ledge~ and belief° Subscribed~and sworn to before' me this, 30th day of July~ 1970o Notary PubliC My CommiSsion expires: / M~I~ING ]~rST Mr o Bo Lo Faulk (3) Shell Oil Company 43.0 7th Avenue Anchorage, Alaska 99.501 Mro Fo Lo Franz Skelly Oil Company 1088 Lincoln Tower Building Denver, Colorado 80203 Mr° Wo Go Christensen Mobil Oil Corporation Po Oo Box 1743 Anchorage' Alaska 99501 Mr° Ralph Go Crews Suite 600 425 "G" Street Anchorage, Alaska 99501 Mr o Eo Fo Griffin (3) Mr o Fo K0 Krebill Union Oil Company of California Pan American Petroleum Corporation 507~,West Northern Lights Boulevard' Po Co Box 779 Anchorage, Alaska 99503 Anchorage~ Alaska 99501 Mr o Ho W o Patterson Phillips Petroleum Company t300 Security Life Building Den~er ~ Colorado 802,02 Mr o To Jo Files Pan American Petroleum Corporation 'Security Life Building Denver~ COlOrado 80202 Mr° Howard Slack Atlantic Richfield Company Po Oo Box. 360 Anchorage' Alaska 99501 2 GE'CL 3 GEOL ..... ,~F_.V DRAFT- lC. GEOL i ENG 2 3 ENG ..... 4 r: ,,-- '5 ENG 1 GEOL "~ ......... $E£ ' .................... ....... Union Oil and Gas Di,. ~.:n: Western Region Union Oii Con;pany of C" TM ' ~' 507 W. ~',,or'mer~ Liczn~s ~vd., Anchorage, A~asaa ~uouo Telephone (907) 279-4511 ~'~ I 0 State Division of,,.,'~ines and Minerals Department of Natural Resources · S00i Porcupine Road Anchorage, Alaska .-~...:)u, Attn' ~..'i~.. Thomas ti. :X',a. rs,,a,:-. * 1, Jr. CASINGHEAD GAS UTi'~zYZATION COOK INLET, ALASiO\ The attaclr~ed ...... ~'' aa~a sneers (2) describe current and ptanncd utilization of casinEhead gas ~: ~ ~ . .. .,~o. pro~)erties operated by Union Oil Company of Caiifornia~ the ~'..'Ic Arthur River and Trading Bay Fields. This information is submitted in compiian, ce w.t~n Conservation Orders 32 and 61. truly,~/og/;{s, ~ /1 EFG :mgl Enclosures - 2 il ',~ 0 O ~ -"" ,:~,,_ 4o ~,!O' DIVISION OF O',','..,'.iND GAS /':.~ i',, C ;', © ;:~ AG ~ Union Oil Co. - Onerator Beneficial Use of Produced Gas Tradine ~ . ~y Unit Ae Equipment Now Using Gas 2 Glycol boilers S Solar turbine driven generators 2 Solar turbine driven gas transmission compressors 4 Solar turbine driven gas lift compressors 2 D¢oxygenator towers 6 Solar turbine driven waterflood pumps 1 Solar turbine driven crude oil pump (S0% load) Current Total Additions to be Made That Will Use Gas 3 Solar turbine driven gas lift compressors 1 Solar turbine driven AC generator Current Total MCF/D I00 1050 700 1400 40O 2100 17S 592S 1050 350 1400 A~ B. A~ DOLLY VARDEN PLATFOI~ Equipment Now Using Gas Solar turbine driven generators Gas lift compressors'engines - 6000 HP Steam boiler Glycol heaters Solar turbines for waterflood Deoxygcnator tower , Current ~otal 1050 1000 '25 275 1400 200 2980 Additions to be Made that Will Use Gas 2 Solar turbines for waterflood KING SALMON ~!E',,:clT,:'D-:e:at No? Usin% Gas Current Total i - SO00 HP turbine driven waterflood pump 2 2,5i3'0 i,:' ,as lift compressors 2 iSO0 !i2 turbine driven generators Current Total 700 700 DIVISION OF OiL AND GAS ANCHORAG~ iSO0 200 1000 1SO0 4200 TRADING BAY UNIT (Cont.) B. Additions to be Made That Will Use Gas Steam generator Hot water boiler 1100 HP Solar turbine driven gas compressor Current Total MC F / D 120 $00 $30 77O Ae B~ ~'~,:,,:.~z FORELAND ONSHORE SITE Equipment Now Using Gas 8 Heater treaters 3 Line heaters 2 Flow splitters 3 Electrical generator units (Standby) 1 Glycol dehydrator 2 Glycol boilers 2 LACT building heaters 2 Heaters for pump motors 2 CiPL Solar turbines 1CIPL Waukesha driven pump (Standby) 2 Skim tank heaters I Hot water heater Liquid extraction plant i Solar turbine driven electrical generator (80% toad) 2 t100 HP gas compressors 1 Domestic range Current Total Additions to be Made That ~{i!l Use Gas 1 Solar turbine driven generator Current Total 1000 275 S00 -- 55 i10 S S 700 -- 10 S 25O 260 7OO Variable .5875 35O 350 Al TRADING BAY PLATFORM Equipment Nc':.: Using Gas 2 Glycol boi'ers DlWS~ON OS O:tXN~ OAS i00 1 Cat¢,,~ ..... ~ ......... ,~ i00 2 Gas iif~ compressor engines - 880 HP each 300 2 Cat DC generators 200 I Deoxygena~or tower 200 Current Total 900 B. Aduz,.zons to be Made That ?/il! Use Gas 2 Solar turbine driven waterflood pumps Current Total RCH:mgl 7-25-70 7OO 7OO PI~I'IRO ~ .B:~JM PIROD/JC'I~ July 7, 1970 Mr. T.' R. Marshall, Jr. Executive Secretary Oil and Gas Conservation Committee Division of Oil and 'Gas State of Alaska 3001 Porcupine Drive Anchorage, Alaska 99501 Dear Mr. Marshall: TEXACO ZNC. P. O. BOX 4-1579 ANCHORAGE, ALASKA 99503 In compliance with the extension of Conservation Orders % 32 and.% 61 dated May 1, 1970, we wish to advise you that there have been no changes in the gas utilization on the TexacO-Superior Trading Bay'Platform "A" from the status indicated in our'letter of March 16, 1970. Very truly yours, TEXACO Inc. S. ~arber Dist. Superintendent FAW ..- j om RECFJVFD JUL 10 lC3/u DIVISION OF OIL AND GAS ANCHORAGB union Union Oil and Gas I~ ,~" Western Region Union Oil Company of California 507 W. Northern Lights Blvd., Anchorage, Alaska 99503 Telephone (907) 279-4511 'TRM ~ OKG ~---~/,/~' _ KLV _~ .... June I, 1970 FILE State Division of Mines & Minerals Department of Natural Resources 3001 Porcupine Road Anchorage, Alaska 99504 Attn- Mr. Thomas R. Marshall, Jr. CASINGHEAD GAS UTILIZATION COOK INLET, ALASKA The attached data sheets (2) describe current and planned utilization of casinghead gas for properties operated by Union Oil Company of California in the Mc Arthur River and Trading Bay Fields. This information is submitted in compliance with Conservation Orders 32 and 61. Gu ~.' ~ri f'f i n Distri(c Man :t ~erations EFG:mgl Enclosures - 2 Union Oi I Co. '"" -, - ,,,'Doral-of E.~eno'f ici a f Use o~ r.--,-, · ,--, Tradinfl. Bay L!nil' GRAYI f liO PL/'-'c''~r A, Eauipme, n't,' Now Using Gas. Glycol boiler's Solar -i'ur'bir'~e dr"iven gener'ators Solar 1'urbine driven oas -transrniqsion compressors Solar turbine driven fi~s l i~'t' compr'essors Deoxy gar'~a1-'o f towers Solar turbine dr'iven wa%rflood pumps I Solar tur"bir~e dr'iven crude oil pump (50¢ load) Out'rent ToTal MCF/D 100 1050 700 1400 ~00 2100 175 5¢25 - A~ B~ DOLLY VARDEH PLA't'FORf4 Equipment liow Lising Gas 2 Solar" turbine driven generators t Gas lift compressor engine - 3000 HP I Steam boiler 2 Glycol hea?ors 4 Solar turbines ~6r waterflood I Deoxygenator tower Addi?ions to be blade Tha~t Wilt Use Gas 2 Solar turbines for wa1'erflood ! Gas lift compressor engine - 3000 HP I Sol ar turbine driven .qener'a?or Current Tot'a 1 Curren'k Total 700 500 25 275 1280 200 2980 1400 503 320 2zz. 0 Re t,(IHG SAL. HOhl PLA'f'FORH Equiprnenl' 14ow Usinfl Gas I -- 5000 kiP turbine driven waterfiood purnp 1 Deoxv.qenator tower 2 - 2000 HP gas I tft cornpressors 2 - 1500 HP l"urbine drivan generators Current Totat 1500 2OO 1000 1500 ,¢200 Be A~ B~ TRADING BAY I.II'.iIT (Cont.) Additions !'o be.. i.'iade Thai' ?.,'ill Use Gas I Steam 9ono, rator I t. lot watel' boiler t-ii00 HP,Solar turbine dri.ven gas compressor Current Total WEST F. OF~,ELAND Oi,'SHORE SITE Equipment Now Usi n.o, Gas .~ Heater trea-!-erq 3 Line heal~ers 2 Flow splitters 3 Electrical generatc~r unil's (Sffandby) I Glycol dehydr'ator 2 Glycol boilers 2 LAC'[ bui Iding heater's 2 Heaters for ~)ump mo,c.r's 2 CIPL Solar' turbines I CIPL Waukesha driven pump (St~ndby) 2 Skim tank heaters .. . . , i Hot water heater Liquid extraction plant' I Turbine driven electrical generator unit (80% load) 2 - I100 ~fP gas compressors I Domestic range , Current Total Additions to be Made That Will Use Gas I Solar turbine driven generator 120 3OO 350 770 i000 275 500 55 I10 5 5 '700 5 25O 260 700 Vari ,.-.qb le 3875 350 A~ B~ TRADING BAY PLAIFO,-,~'4 Equipment Now Usinq Gas 2 Glycol boilers t Cat AC generator 2 Gas lift compressor engines - 880 HP eacih 2 Cat DC 9ener'ators I Deoxygena?or tower Current Total Additions to be I,.'lade T,h~t Will Use Gas 2 Solar 1'urbine driven w81"er'flood Dumps I00 I00 1500 2O0 200 90O 700 [:iCH 'mq 6-1-70 KEITN H. I~llLIER, GOVE£#OR PORCUPINE ORIVE-ANCHORAGE 9,9504 OlVI$10N OF OIL AND GAS ALASKA Ol L AHI~ GAS CON~;I~RVATION CO~ilTTEI~ May I, 1970 TO: COOK INLET GAS PRODUCERS Subject: Extension of Conservation Order Nos. 32 and 61 for an Additional 120-Day Period The Alaska Oil and Gas Conservation Committee has .reviewed the affidavits and statements submitted pursuant to Conservation Order Nos. 32 and 61 and directive dated July 15, 1968. The Alaska Oil and Gas Conservation Committee has reviewed the record of the testimony before the Alaska Senate Resources Committee in Juneau, Alaska, on March 20, 1970, and members of the Oil and Gas Conservation Committee have discussed the possibilities of gas utili- zation with Cook Inlet operators, consultants employed by the Executive and Legislative branches of state government, and with representatives of different segments of l-t~e oil and gas industry. Section 2158 of Title 11, Alaska Administrative Code has been. amended to strictly limit the production of gas well gas which is not beneficially utilized. Virtually all of the equipment on the thirteen oil-producing platforms in 'i'he Cook Inlet has been converted to use casinghead gas as fuel, and equipment to be installed in the near future will like- wise be fueled by casinghead gas. Subsequent to the Januao/ 2, 1970, extension of Conservation Order Nos. 32 and 61 a low temperature liquid extraction plant, designed to process approximately 40 million cubic feet of casinghead gas per day and to recover approximately 2,500. barrels per day of liquids, went on stream at West Foreland. There is no evidence that a market presentlY exists for the gas being flaredo A substantial decrease in the volume of gas being flared has occurred and it is the Committee's opinion the flared volume will continue to decrease. MAILING LIST Letter to Cook Inlet gas producers dated May i, 1970 Subject: Extension of Conservation Order Nos. 32 and 61 for an Additional 120-Day Period Mr. Robert T. Anderson Union Oil Company of California 2805 Dena li Street Anchorage, Alaska 99503 Mr. F. K. Krebill Pan American Petroleum Corporation P. O. Box 779 Anchorage, Alaska 99501 Mr. Claude H. Brown Texaco inc. P. O. Box 664 Anchorage, Alaska 99501 Mr. Morris L. Lowman Marathon Oil Company P. O. Box 2380 Anchorage, Alaska 99501 Mr. Tom Fi~es, Division Attorney Mr. William Faulk Pan American Petroleum Corporation Shell Oil Company Security Life Building 430 Seventh Avenue Denver, Colorado 80202 Anchorage, Alaska 99501 Mr. R. B. Giles ' Mr. E. J. Wentworth Pan American Petroleum Corporation Superior Oil Company Security Life Building 3301Brundage Lane Denver, Colorado 80202 Bakersfield, California 93309 Mr. Robert Hartig Assistant A~'todney General 360 K Street, Suite Anchorage, Alaska 99501 Mr. L. E. Wilson At~antic Richfield Gompany P. o. Box 360 Anchorage, Alaska 9950 Mr. Thomas E. Kelly, Commissioner Department of Natural Resources Pouch M Juneau, Alaska . 99801 Mr. W. G. Ch ristensen Mobil Oil Corporation P.'.. O. Box -..~ 734 Anchorage', AlaSka 9950 Cook Inlet Gas Producers Page 2 May i, 1970 Decision It is the Committee's decision that the operators are benefi- cially utilizing the casinghead gas to a substantial extent in view of the present lack of a market for the gas being flared. Direct i ve Conservation Order Nos. 32 and 61 are extended for an additional 120-day period, from May I, 1970 or through August 29, 1970. Affidavits from Cook Inlet gas producers showing further efforts made to utilize casinghead gas will be due at least 30 days prior to the expiration of the 120-day extension period or by July 30, 1970. Additional affidavits may be requested during this extension period. Thomas R. Marshall, Jr. Executive Secretary Alaska Oil and Gas Conservation Committee her L. Burreil Ch a i rman A~aska Oil and Gas Conservation Committee ...A laska Oi.i....and'"Gas'' Conservati on Commi tree HAl LtNO LIST Letter to Cook Inlet gas producers, dated May I, 1970 Subject: Extens. lca of" Conservation Order Nos. 32 and 61 for aa Additi~al 120-Day Period Nr. Robert T. Anderson Union 011 ~c~any of California 2805 Denal i Street Anchorage, ^laska g9503 ~..~. F. K. ~reb i I t :Pan Amerl~n Petroleu~ Corporation P.. O. ~ox 779 Anch,oraDe, A, taska 99~t~:1 ~:r. Claude H. Brown Texaco ln¢- P. O. Box 664 Anch.or~3e, A lask~ 99501 Tom :Flies,, Divlsto~ Attorney t~r. William Fautk ~curt tv LIfe ,Dui i dl ng 4,~ ,~venth Avm~ue ~ver, Colorado ~202 ~:~orage~ A:.l~:ka 9'9501 Nr. R. D. Gl les .~r. £ J. ~/ent~orth Pan A~rican Petroleum Co~oratlon Superior Oi t C~pany Security Life [~.1 i;dlng 3~1, Drun~,~e La~ ~nver, ~l~do ~202 BAe~ftet~, hlifomta 9~9 ~4r. Robert Hartl§ Asst stent Attorney C~neral ~0, K St~et,~ Suite t05 Anchorage, Al.~ka 995OI ALASKA O I L /~'4D GAS CONSERVAT I ON CO),~ I TTEE ~4ay I, t970 TO: COOK 'IN, Ifl[T GAS Subject; Extension of C~nservat.lon Order Nos. ~2 and 61 for an The Al'aska Ot I and Us. ~nservatton Ce~.l'tfee has reviewed the Nos.. }2 ~d 6t ~d di m~l~ dated July 15, 1968.. T~ ~laska Ol I .a~ Gas Ccaservatio~ C~tttee has reviewed the ~'~ of the tesft~ny ~fom ?he Alike ~e ~soarms ~l??ee J~ Ju~u~ Alike, ~ ~ar~ 20, l~70, ~.d ~mbers of the 0tt ~d Gas Conse~atl.~ ~lttee ha~ .dlsc~sed t:he pmstbt l lties of gas uti li- z~ i on ~i th C~k i n tel .~er~om, ~sut t~s e~ loye~ by ~e Executive and Legl. slatjve ;branc~s of s~a~e gove.m~nt, and ~l~h mpm.sent~tlves of different seg~nts of t~ olI and .g~ i~ndustry. .Sect:ica ~ 158 o.f Tit let 1, A las.ka .Admi .a~nded to strtct'l'y limit the pr~tion of ¥trt~a.I ly el I o.f the equip~.~n¢ ca the thirteen ol l-productn§ ple~fo~s t~ the C~k lnl:e~ has b~en c~ve~ed '?o ~e c~inghead gas ~ fuel, and equipment to be installed in '[he near fufure ~:t I 1 like~ ~:tse be: fueled :by casing~ad Bas. Subsequen* to ~he J.:a~ua.~ 2,. i970, .ex,emsi ca of Co~servett ca. Or~r N~.. 32 an~ 61 a: la te~erat'uro liquid e.x,r~J.m.p..l~t, .designe~ fO 'p.r~ss; ~pmx:tmately ~ mi t I tm ~bic f~t of casinghead g.~ per day ~d ~.o .Fe~er ~p~lmately 2,500 barrels per day of liquids, There Is no evidence that ama. rke, presently exists for. the gas be i n~t: f t a, red. A subsfantta'l decrease in tho. volume of gas being fJa're(~; h~ occur'::~d and: t't i S the C~i'tfee '~ s o:p i ~i ~ t.~ flared vo I ~ ~ i I 1 ,cmti:mie to de,c~ase, Cook In let Gas Producers Page 2 ~,.~y i, 1970 It is the. Cca~lttee~s decision that the operators are clalty utlllzln9 the c~In~ad g~ to a $~st~ttal ~tent In view of the p~nt lack of a m=~ for the g~ ~Ing fla~d. Dt met t .Conservaflo~ Order i~os. 52 and 61 are e×tende~.for an tZO-ay period, from Nay t, 1970 or through Affidavits fro~ Cook l~let p produo~rs sh(r,i~ further .errors exptrattm of the 1'20-day ex~.nsl~ perf~ or by July ~, 1970. Addltl'~at affidavits ~y be reques~:~ during this extension period, 'Thoeas R. ~rsha.'l I, Jr. Execuft ye Secretary Alaska. OII and Gas :Co~rvation Cce~:t?tee ~r L. ~ur~l t ~se rwti ~ Co~ t tree .0. K. Gl :tbreth, DTVI$1ON CF O;L AND GAS ANCHO~a, GI~ SECURITY LIFE BUILDING DENVER, COLORADO 80202 March 23, 1970 File: AMR-716-986. 511 FILE Re: Beneficial Re-U~e'of Gas Produced, MGS and Granite Point Fields Il Ill I I I In I I II I Illll Ill I J I I I I I , I , I Mr. Thomas Ro Marshall, Jr. (3) Executive Secretary Alaska Oil and Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99504 Dear Mr. Marshall: On behalf of the Chakachatna Group of companies, we hereby request administrative, extension of Conservation Orders. 32 and 61 for another 120 day period, starting May 1, 1970. Since our affidavit of December 18, 1969, the last of two generators on South Middle Ground Shoal Platform Dillon has.been converted to gas fuel. Also, on Platform Dillon two.wells, Unit Wells No. 7 and No. 11, began injecting water on December 21, 1969. A third injector, Unit Well No. 12, is scheduled for conversion this month, on Platform Baker, water injections are.continuing in a satisfactory manner. Water injections at both of these Platforms eventually can be expected to increase reservoir pressure which will conserve gas by minimizing produced gas- oil ratios. Equipment now capable of using casinghead gas as fuel is as follows: MGS-Baker 2 AC Generators (one 650 HP and one 750 HP) 1 Steam Generator ~' 1 Gas Lift Compressor 1 Glycol Regenerator 1 Turbine Pump MCFD 336 168 234 5 336 Z",'0r79' SMGS-Dillon '' '8 wa~ke'sha Engines (Kobe) 1 Steam Generator 2 AC Generators 1 Turbine Pump MCFD .... 346 168 336 336 1'186 Mr. Thomas R. Marshall, Jr. March 23, 1970 Page 2 Granite Point - Anna ' 1 Steam Geherator 1 Turbine Compressor (See Note) 6 Waukesha Engines (Kobe) 2 AC Generators MCFD 336 259 360 1 ,'1'2 Granite Point - Bruce 1 Steam' G'ener'ator 5 Waukesha Engines (Kobe) 2 AC Generators 168 216 360 Note: Operation.. of the turbine.compressors is. alter- nated between Granite Point Platforms Anna and Bruce; therefore, only one unit is in actual operation at a time. Future Granite Point '"4 Tu'rb'i'ne' 'P~ps' 2,400 East Foreland Treating Facility 1 Freewater KnockoUt 1 Treater 2 'Glycol Heaters (Winter Only) 20'6 206 178 Delays in delivery dates for water filtering equipment and some high pressure fittings will postpone startup of water injec- tions from both Pan American operated.platforms in Granite Point from July until September, 1970, at which time four gas fueled turbine driven injection pumps will go into service. Yours very truly, cc: See Attached Mailing List STATE OF COLORADO ) ) COUNTY OF DENVER ) SS R. B. GILES being first duly sworn upon oath deposes and says that he is employed as an engineering supervisor by Pan American Petroleum Corporation, that the foregoing Application has been prepared under his suPervision and direction, that he is familiar with the information contained in the Application and that the matters and the things therein set forth are true and correct to the best of his knowledge and belief. Subscribed and sworn to before me this 23rd day of March, 1970. - ~/ --Notary PUbli% My Commission expires July 26, 1970o MAILING LIST Mr. R. L. Warden .(3) Shall Oil Company 430 7 th Avenue Anchorage, Alaska 99501 Mr o F. L. Franz Skelly Oil Company 1088 Lincoln.Tower Building Denver, Colorado 80203 Mr. W. G. Christensen Mobil Oil Corporation P. O. Box 1743 Anchorage, Alaska 99501 Mr° Ralph G. Crews Suite 600 425 "G" Street Anchorage, Alaska 99501 Mr. E. Fo Griffin .(3) Mr. F. Ko Krebill Union Oil Company of California Pan American Petroleum Corporation 507 West Northern Lights Boulevard Po O. Box 779 Anchorage, Alaska 99503 Anchorage, Alaska 9950.1 Mr. H. W. Patterson Phillips Petroleum Company 1300 Security Life Building Denver, Colorado 80202 Mr. T. J. Fil..es Pan American Petroleum 'Corporation Security Life Building Denver, Colorado 80202 ' Mr. Ralph Cox Atlantic Richfield Company P. O. Box 360 Anchorage, Alaska 99501 ,! Union Oil and Gas~[{'' , ~ion:Western Region Union Oil Company of California 507 W. Northern Lights Blvd., Anchorage, Alaska 99503 Telephone (907) 279-4511 union March 20, 1970 FILE Mr. Thomas R. Marshall, Jr. State Petroleum Supervisor Division of Oil & Gas 3001 Porcupine Drive Anchorage, Alaska 99504 Dear Mr. Marshall- Attached is an amended tabulation of equipment utilizing casinghead gas produced from the Mc Arthur River and Trading Bay Field's in Cook Inlet. As requested in your letter of March 4, 1970, this tabulation includes estimated daily fuel gas consumption for the equipment listed. Please advise if any further information or clarification is required. Very truly_ )/ours, R. M. Horton Acting District Production Supt. RMH:mgl · 'Union Oil Co. - Operator 'Beneficial Use of Produced Gas. .. ' - TRADING BAY UNIT ,o . ' · GRAYL lNG PLATFORM / Equipment Now Using Gas ~ 4 I100 HP turbine driven gas lift compressors 3 I100 HP turbine driven generators 2 .11,00 HP turbine driven waterflood pumps I I100 HP turbine driven gas transmission compressor I Oxygen stri2ping't6wer ' ' ._ -.- - I I100 HP turbine driven crude oil pump (50% load) · 2 I00 HP glycol boilers Current Total Additions to be Made That Will Use Gas 4 I100 HP turblne driven waterflood pumps · I I100 HP turbine driven gas transmission compressor ': i Oxygen 'stri ppi ng tower . -"1 I100 HP turbine dr'Tven crude oil pump (100% load) MC'F/D 1400 ' 1050 7O0 350 , 200 . 175 I00 3975 1400 350 200 175 DOLLY VARDEN PLATFORM Equipment Now Using Gas 4 I100 HP turbine driven water injection pumps 1280 I 3000 HP gas lift compressor 500 I I100 HP turbine driven generator 320 2 Glycol heaters 275 ! Deaerator - 50,000 BPD rate 150 I Steam boi ier 25 Current Total 2550 Additions to be Made That Will Use Gas ,, 2 I100 HP turbine driven wa?er injection pumps' · 1 3000 HP gas I'ift compressor 2 I100 HP turbine driven generators ~ Deaerator throughput increased to 80,000 BPD ... : . · 640 500 450 Be TRADING BAY UN I T (Cont.) KING SALMON PLATFORM Equipment Now Using Gas 1-5000 HP turbine driven waterflood pump 2-1500 HP turbine driven genera;~3rs 2-2000 HP gas lift compressors I Oxygen stripping tower I Hot water boiler "'" .. "'"'Current Total Additions to be Made That Will use Gas I !100 HP turbine driven ga§ compressor " I 'Steam generator MCF/D 1500 1500 I000 500 30O 4800 350 120 AJ Be RMH:mgl ~- I q-Tn WEST FORELAND ONSHORE SITE ~uipment Now Using Gas 8 Heater treaters ' 3 Line heaters 2 Flow splitters · 2 Gas compressors 2 I100 HP turbine driven pipeline pumps (50% load) I I100 HP turbine driven generat~r(80% load) Liquld Extraction Plant 2 Glycol hollers I Glycol dehydrator 2 Skim tank heaters 2 LACT building heaters 2 Heaters for pump motors I Hot water heater 2 Fire water tank heaters (winter only) I Waukesha driven pipeline pump (standby) 3 Electrical generator units (standby) I Gas compressor (standby) Current Total I000 275 500 440 320 260 250 I10 55 I0 5 5 5 2 · , 3237 Equ 1 pment Now us i n9, Gas TRADING BAY PLATFORM 2-900'HP gas lift compressors --3-675 HP DC'generators · 1 Oxygen stripping tower ...... 2-100 HP glycol boilers Additions to be Made That Will Use Gas I-I100 HP turblne driven water flood pump 300 I00 ............. : ...... I00 Current Total 800 Mobil Oil Corporation 700 "G" STREET ANCHORAGE, ALASKA 99501 Alaska Division P. O. Box 1734 Anchorage, Alaska 99501 March 11, 1970 Mr. Thomas R. Marshall, Jr. ~-~[~ ~'/~, g i -r~. Executive Secretary -- Alaska Oil & Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99503 Dear Mr. Marshall: In response to your directive concerning "Extension of Conservation Orders No. 32 and No. 61 For an Additional 120-Day Period," Mobil Oil Corporation submits the following information regarding the utili- zation of casinghead gas from the Granite Point Platform. As we have previously mentioned we have installed the following equipment on the platform: One (1) 800 KW Turbine Powered Generator utilizing about 210 MCF/D. One (1) 1550 HP Compressor utilizing about 220 MCF/D. One (1) 350 HP Compressor utilizing about 60 MCF/D. One (1) temporary water injection pump driven by a 266~}~P Waukesha gas engine utilizing about 72 MCF/D, the operation of which has now been suspended. Plans to install a full scale waterflood system are in progress. Portions of the equipment are now being tested and start-up is scheduled for April, 1970. The system when complete will utilize approximately 1000 MCF/D for deaerating equipment and two (2) 1450'HP gas turbine powered injection pumps. The Granite Point Shoresite has two (2) 500 HP gas engine driven shipping pumps which utilize about 200 MCF/D. In addition, the treaters at the shoresite utilize about 50 MCF/D when in operation. We .are continuing in our efforts to utilize casinghead gas in every beneficial way possible and respectfully request extension of Conservation Orders No. 32 and No. 61 commencing May 1, 1970. AVBarne tt / rp Very truly yours, C. . W~odruff Division Engineer STATE OF ALASKA ) ) 3rd Iudicial District) This certifies that on this 18th day of March, 1970, before me, the undersigned, a Notary Public in and for the State of Alaska, personally appeared C. C. Woodruff, to me known and known to me to be the per- son named and acknowledged to me that he executed the attached freely and voluntarily for the uses and purposes therein mentioned. Witness my hand and official seal the day and year in this certificate first above written. PETROLEUM PRODUCTS March 16, 1970 TEXACO INC. P. O. BOX 4-1579 ANCHORAGE, ALASKA 99503 Mr. T. R. Marshall, Jr. Executive Secretary Oil and Gas Conservation Committee Division of Oil and Gas State of Alaska 3001 Porcupine Drive Anchorage, Alaska 99 501 C6. Dear Mr. Marshall: In compliance with the directive issued under Conservation Orders ~ 32 and ~ 61 of January 2, 1970, we wish to advise you that there have been no changes in the gas utili- zation on the Texaco-Superior Trading Bay Platform "A" from the status indicated previously. We anticipate the addition of artificial lift equipment within the next few months. This equipment will increase our fuel consumption, thus increasing our gas utilization. Very truly yours, TEXACO Inc. //J. S. Bar'ber ' Dist. Superintendent FAW: jom iAR 1 ?i.,, AI~SKA Oil. AND GAS COItSEIt.VATION ~tarch 4, 19'70 ~is~ric~ Operatiot~ ~~r Oil C~y of ~liforala a~chora~, a~ 99503 ~ ha~ ,~ece~ved ~'he ~ata sheet.~ .to~ 'prope~ties opera,ed by ~n~ Oil C~p~y Fie.~s in c~Iiauce ~ia Couserva.tion O.~er No.. 61. ~u encl~,e~ ~:th 'the req~t that they be ~i~.t'alled .tq'ui~ut ~ll co~e becaule of Th~ ii. l~arshall., Jr, Union Oil and Gas ;ion' Western Region Union Oil Company of California 507 W. Northern Lights Blvd., Anchorage, Alaska 99503 Telephone (907) 279-4511 union March I, 1970 State Division of Mines & Minerals Department of Natural Resources 3001 Porcupine Road Anchorage, Alaska 99504 ATTN: Mr. Thomas R. Marshall, Jr. CASINGHEAD GAS UTILIZATION COOK INLET, ALASKA The attached data sheets (2) describe current and planned utilization of casinghead gas for properties operated by Union Oil Company of California in the Mc Arthur River and Trading Bay Fields. This information is submitted in compliance wlth Conservation Orders 32 and 61. EFO:mgl Ve~~~ ruly yo~~ ~ D I str~2~ Operat i ons~/M Enclosures - 2 RECEIVED Union Oil Co. - Operator_ Beneficial Use of Produced Gas TRADING BAY UN IT GRAYL._I NG- I~LATFO. I:~Jvl Be Equipment Now Using Gas 2 Glycol boilers 3 Solar turbine driven generators I Solar turbine driven gas transmission compressor 4 Solar turbine driven gas lift compressors i Deoxygenator tower 2 Solar turbine driven waterfiood pumps I Solar turbine driven crude oil pump Additions to be Made Th:at Will Use Gas I Solar turbine driven gas transmission compressor .4 Solar turbine driven waterflood pumpS A~ DOLLY VARDEN PLATFORM Equ[ pme. n?_ No_w: ~!_s i n_9 Gas Solar turbine driven generator Gas lift compressor engine -3000 HP Steam boiler Glycol heaters Solar turbines for waterflood Deoxygenator tower Additions to be Made Tiaat Will Use Gas 4 Solar turbines for waterflood I Gas lift compressor engine - 3000 HP 2 Solar turbine driven generators A~ KING SALMON PLATFORM E~u.i~ment Now LJsing Gas . i-5000 HP turbine'driven water, flood pump I Deoxygenator tower ,. 2-2000 HP gas lift compressors 2-1500 HP turbine driven generators TP~,DING BAY UNIT (Cont.) Be Additions to be Made That Will Use Gas I Steam generator I Ho~ water boiler I-I100 HP Solar turbine driven gas compressor~ A~ WEST FORELAND ONSHORE SITE Equ, ipment ..Now. Us,i n9 .Gas 8 Heater treaters 3 Line heaters 2 Flow splitters 3 Electrical generator units I Glycol dehydrator 2 Glycol boilers 2 LACT building heaters 2 Heaters for pump motors 2 CIPL Solar turbines I CIPL Waukesha driven pump I Skin tank heater 1-750 HP gas compressor I Hot water heater Liquid extraction plant I Turbine driven electrical generator unit '2-1100 HP gas compressors A~ TRADING BAY PLATFORM E_quipment Now Hs i_ng _Gas Glycol boilers Cat AC generator Gas lift compressor engines - 880 HP each Cat DC generators Deoxygenator tower B. Additions to be Made That Will Use Gas ! Steam generator RCH :mg I 3-1-70 MARATHON OIL COMPANY PRODUCTION -UNITI=D STATI=S AND CANADA February 25, 1970 Mr. O. K. Gilbreth Department of Natural Resources State of Alaska 3001 Porcupine Drive Anchorage, Alaska Re: Estimated Gas Production, Consumption, and Disposition - Trading Bay Production Facility West Foreland, Alaska Dear Mr. Gilbreth: The purpose of this letter is to provide the State information related to the production and consumption of casing head gas on the three Trading Bay Unit platforms (Dolly Varden, Grayling, and King Salmon), the Monopod, and the onshore Trading Bay Production Facility. As indicated, these volumes represent oUr best estimate of conditions for June 1970, and the attached table'entitled "Estimated Daily Casing Head Gas Production and Disposition--June 1970" contains estimates of gas production predicated on the given oil producing rates. On completion of drilling from all platforms essentially all fuel requirements will be satisfied with natural gas. The oil must be artificially lifted and pressure maintenance is required, causing the energy requirements associated with the operation of the Hemlock pool to be substantial. Gas fired equipment on the Dolly Varden platform will include two 3000 HP integral gas compressors, six 1100 HP turbines for water injection service, three 1100 HP turbines for AC power generation, and three boilers required for comfort heating and steam cleaning. In addition to this, natural gas is used in the process of removing dissolved oxygen from injection water and a small flare must be maintained at all times for safety reasons. We estimate maximum gas demand in the vicinity of 3.8 million cubic feet per day, and an average consumption of 3.3 million cubic feet per day. Produced gas in excess of fuel gas requirements will be delivered to the onshore production facility as feed to the liquid extraction unit. This volume from the Dolly Varden platform is estimated to be 10.2 million cubic feet per day. Gas fired equipment on the Grayling platform will include five llO0 HP turbines driving gas compressors, eight llO0 liP turbines driving water injection pumps, one llO0 HP turbine driving a crude oil shipping pump, three 1100 HP turbines driving AC generating equipment, and boilers for comfort heating and steam Mr. O. K. Gilbreth -2- February 25, 1970 cleaning. The gas demand will approach 6.5 million cubic feet per day with a probable consumption in the order of 6 million cubic feet per day. Produced gas exceeding this rate will be delivered to the onshore facility for processing. It is estimated that this rate will be 9 million cubic feet per day. Gas fired equipment at the King Salmon platform includes two 2000 HP integral compressors, one 1100 HP turbine driven compressor, one 5000 HP turbine driven water injection pump, and two 1500 HP turbines driving AC generators. Boilers are required for comfort heating and steam cleaning. Natural gas is also used in the process of removing dissolved oxygen from the injection water. The natural gas demand is estimated to be 4.7 million cubic feet per day with a probable consumption of 4 million cubic feet per day. Gas production in excess of this volume will be transported to shore for processing. This volume is estimated to be 5 million cubic feet per day. Gas fired equipment on the Monopod platform will include two 922 HP gas compressors, three 850 HP generators, and two boilers required for comfort heating and steam cleaning. It is anticipated that an additional 850 HP generator will be placed on board by mid-1970 as a part of the proposed expansion of water injection facilities. The estimated fuel gas consumption rate is 1.0 million cubic feet per day. The compressors aboard the Monopod are capable of delivering 12 million cubic feet of gas per day to shore for processing, leaving 7.0 million cubic feet per day to be flared from the platform. The volume being flared will be reduced when water injection has become effective and the current workover program has been completed. As shown on the attached table 36.2 million cubic feet of gas per day reaches shore and is available for processing. In addition to this volume some 5 million cubic feet per day of crude flash vapors are gathered from the flow splitters, treaters, and stock tanks. This results in a total of 41.2 million cubic feet per day of feed to the liquid extraction unit. Product shrinkage will amount to approximately 2.8 million cubic feet per day and the total onshore fuel require- ment is estimated to be 4.4 million cubic feet per day. The remainder of 34.0 million cubic feet per day will be flared. The estimated production from the liquid extraction unit is estimated to be 2300 barrels per day. k I would like to apologize for the delay in furnishing you this report. I hope this has not caused you any great inconvenience. Very truly yours, B. G. Howard District Operations Manager BGH: nm Attachment cc: E. F. Griffin Union Oil Co. of Calif. Production - Oil, BPD Gas, MCFD ESTIMATED DAILY CASING HEAD GAS PRODUCTION AND DISPOSITION - JUNE 1970 Dol_ly Varden Gr. ayling King Salmon Mon,opod Total 45,000 50,000 30,000 12,000 137,000 13,500 15,000 9,000 20,000 57,500 Platform Disposition - MCFD Fuel 3,300 6,000 4,000 1,000 14,300 Flare -0- -0- -0- 7,000 7,000 Transported to Shore 10,200 9,000 5,000 12,000 36,200 Tota 1 13,500 15,000 9,000 20,000 57,500 Onshore Source and Disposition - MCFD Solution Gas from Platform Crude Flash Vapors Total LEX Feed *LEX Product (Shrinkage) Total Onshore Fuel Total Onshore Flare * LEX Production Estimated at 2300 BPD 10,200 9,000 5,000 8,000 36,200 5,000 41,200 2,800 4,400 34,000 Eugene F. Griffin District Operations Manager Anchorage District Union Oil and Gas 1~ 'sion: Western Region Union Oil Company of California 507 W. Northern Lights Blvd., Anchorage, Alaska 99503 Telephone (907) 279-4511 February 18, 1970 unlen State of Alaska Dept. of Natural Resources Division of Oil and Gas 3001 Porcupine Drive Anchorage, Alaska Attention Mr. Homer L. Burrell, Director Since our recent discussion on gas usage from the Trading Bay Unit, we have gained one additional month of data. The month of January continues to show the trend of more efficient gas usage and a. definite decrease in gas well production. As 'you will see b'y the attached information, the Grayling Platform is primarily respon- sible for the lower gas well usage. We now have our four Solar com- pressors operating on a continuous basis and hope the future months will see gas well usage limited to those periods when mechanical problems require the gas well to sustain oil production. The King Salmon and Dolly Varden platforms Will soon have their addi- tional compression operating and a similar decrease will also be noted. E FG: nnb Attachments- 2 OBSERVATIONS OF TBU NATURAL GAS PRODUCTION AND BENEFICIAL USAGE HLB -, TRM (~ OKG ___ KLV _. HWK ~ REL FILE I · · · During the months of November, 1969, through January, 1970, the Gas Production from Gas Wells declined from 734,926 MCF to 555t143 MCF. During the same months the beneficial usage of total Natural Gas Produced increased from 1,136,492 MCF .in November to 1,720,823 MCF in January. This includes the Lease Usage and Gas Lift used in Operations from both Oil and Gas Wells· During the months of November through Janua.ry, the GOR for total Oil Wells declined from .313 to .280. During the sa. me period the GOR for total Gas Produced compared to Oil Produc- tion declined from . 544 to .441. Both reductions indicate the efforts being made to produce less Natural Gas and yet increase the Oil Production· 2/18/7 0 J~l¥1$10N OF OIL AND 64,$ TO TAL GAS 'WE LL PROD UC TIO N November December January Grayling 306,082 214,117 137,360 Dolly Varden 146,805 171,180 168,752 King Salmon 282,039 308,721 249,031 Tota 1 734,926 694,018 535,143 November December January Total Fuel Usage 136,279 151,624 220,672 Total Ga s Lift 1,000,213 966,448 1,500,151 2/18/70 UNITED STATES OF AMERICA STATE OF ALASKA SS L. E. WILSON, being first duly sworn upon oath, deposes and says that he is employed by ATLANTIC RICHFIELD COMPANY; that the foregoing Applica- tion has been prepared under his supervision and direction; that he is familiar with the information contained in the Application, and that the matters and the things therein set forth are true and correct to the best of his knowledge and belief. L. E. Wilson SUBSCRIBED AND SWORN TO BEFORE ME this day of January, 1970. Notary Public Atl,a'nticRichfieldCompany North Amu~ ,n Producing Division Alaska District Post Office Box 360 Anchorage, Alaska 99501 Telephone 907 277-5637 January 16, 1970 FILE ¥' ~ ....... Mr. Thomas R. Marshall, Jr. Executive Secretary Alaska Oil and Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99504 Re: Beneficial Use of Gas Produced Trading Bay Northeast Oil Pool Dear Mr. Marshall: In accordance with your directive of October 31, 1969, we submit our affidavit detailing efforts toward gas utilization from the Trading Bay Northeast Oil Pool on our Spark Platform. We a~o request administrative extension of Conservation Orders No..~.,~and 61 for another 120-day period starting January 2, 1970. All fossil fuel powered equipment on the Spark Platform is currently connected to and being supplied by natural gas. This equipment consists of two Nordberg turbine units which are driving AC generators and two boilers. In addition, pro- duced gas is being used for artificial lift in our gas lift system. Very truly yours, L. E. Wilson District Production and Drilling Superintendent ja PAN AMERICAN PETnOLEUM C0P. POE ION SECURITY LIFE BUILDING DENVER~ COLORADO 80202 December 18, 1969 File: AMR-2530-986.511 Re: Beneficial Re-Use of Gas Produced, MGS and Granite Point Fields Mr. Thomas R. Marshall, Jr. (3) Executive Secretary Alaska Oil and~Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99504 Dear Mr. Marshall: While it appears through an oversight that we never received approval of our last 120 day extension request dated Aujust 4, 1969, my recent conversation with Homer Burrell indicates that another affidavit would be appropriate for sub- mittal at this time. On behalf of the Chakachatna Group of companies, we hereby request administrative extension of Conservation Orders 32 and 61 for another 120 day period starting, I assume, on January 2, 1970. For the period.since our affidavit of August 4, 1969, equipment conver- sions to gas fuel and conservation measures have been: 1. The first 750 HP AC generator of two generators on South Middle Ground Shoal Platform Dillon. 2. The gas fueled turbine to drive the water injection pump at Dillon° Also, on Platform Dillon two wells, Unit Wells No. 7 and No. 11, have been modified for water injection service. Injection start-up in August was unsuccessful due to pump and filter problems° We currently anticipate start-up by the end of this month. On Platform Baker, one additional well, MGS 17595 Well No. 14, has been converted to water injection to complete our scheduled end-to-end flood pattern. Water injections at both of these Platforms eventually' will increase reservoir pressure which will conserve gas by minimizing produced gas-oil ratios. Equipment now capable of using casinghead gas as fuel is as follows: MGS-Baker MCFD 2 AC Generators (one 650 HP & one 750 HP) 336 1 Steam Generator 168 1 Gas Lift Compressor 234 1 Glycol Regenerator 5 1 Turbine Pump 336 1,079 File: AMR-2530-986.511 - 2 - December 18, 1969 So. MGS-Dillon 8 Waukesha Engines (Kobe) 1 Steam Generator 1 AC Generator 1 Turbine Pump MCFD 346 168 180 336 1,030 Future (lst Quarter~ 1970) 1 AC Generator (650 HP) 156 Granite Point - Anna 1 Stea~n Generator 1 Turbine Compressor (See Note) 6 Waukesha Engines (Kobe) 2 AC Generators 168 336 259 360 1,123 Granite Point , Bruce 1 Steam Generator 5 Waukesha Engines (Kobe) 2 AC Generators 168 216 360 744 Note: Operation of the turbi'ne compressors is alternated between Granite Point Platforms Anna and Bruce; therefore, only one unit is in actual operation at a time. Future Granite Point 4 Turbine Pumps 2,400 East Foreland Treating Facility 1 Freewater Knockout 1 Treater 2 Glycol Heater's (Winter only) 206 206 1'78 590 Although there has been some extension to deli'very dates for certain items of equipment, we still expect to commence water injections from both Pan American operated platforms in Granite Point during July, 1970, at which time four.gas fueled turbine driven injection pumps will go into service. cc: See Attached Mailing List ~'Yours very~~Atruly', MAILING LiST Mro R. Lo Warden (3) Shell Oil Company 430 - 7th Avenue Anchorage, Alaska 99501 Mr. F~ L~ ~'~'anz Skelly Oil Company 1088 Lincoln Tower' Building Denver, Colorado 80203 Mr. W. G. Christensen Mobil Oil Corporation P. O. Box 1743 Anchorage, .Alaska 99501 Mro Ralph Go Crews Suite 600 425 "G" Street Anchorage, Alaska 99501 Mr~ E~ Fo Griffin (3) Union Oil Company of California 507 West Northern Lights Boulevard Ancho'rage, Alaska 99503 Mr. F~ K~ Krebill Pan ~rLerican Petroleum Corporation P. O~ Box 779 Anchorage, AlaSka 99501 Mro H. W. Patterson Phillips Petroleum Company 1300 Security Life Building Denver, Colorado 80202 Mro T~ J. Files Pan ~nerican Petrole~n Corporation Security Life Building Denver, Colorado 80202 Mr. Ralph Cox Atlantic Richfield Company P. ~0~ Box 360 Anchorage, Alaska 99501 STATE OF COLORADO ) ) SS COUNTY OF DENVER R. B. GILES being first duly sworn upon oath deposes and says that he is employed as an engineering supervisor by Pan American Petroleum Corporation, that the foregoing Application has been prepared under his supervision and direc- tion, that he is familiar with the information contained in the Application and that the matters and the things therein set forth are true and correct to the best of his knowledge and beliefs. Subscribed and sworn to before me this 18th day of December, 1969o Notary Public My commission expires ~'-~ "7~-~. ALASKA OIL AND GAS CONSERVATION COMMITTEE Dee. ember I7, 1969 Mr. B. L. Warden Shell 0~1 Compan~ An.~o,rage,, Alaska 99501 Dear Mr. Wa~e~: We have ~ece~ved y'oU~ a~'fidavit on Shell Oil Company's efforts tow~ds ua:singhead g,~ u~iliza$ion in the Middle G,~und Shoal ]?tetd. that no spe~fl'c ~:nts of gas c,onsump,%,ion have been ~;e_ tailed for ~h,,e var,i,~ pie.ees of e~uIpw~ent, listed. We January '2, 1970 ex~IratIon of ~h,ia O~d.e~. Thom~ R. Marshall, Execu:,ive Secretary OiL AND GAS CON~.-,VA~I,3N CO~I,.I~TE;:. December 17, 1'969 ~r. Eugene F. Griffin Unli. O~% Oil C~pany o,f California 507 Northern Lights Dlvd. Anchorage, Alask~ 99503 Dea.~ :Mr. Griffin: Ve nave. reeeived the data sheets describing current a~d planned utilization of .casinghead gas for the proD. erties ope'~ated by Union Oil Company of California in the Mc.~rthur River amd Trading Bay Fields,. purs. u~t to ~he requirements Conse~?'vation O'rd:er ~61. A, ~eview of the data shee~s~ indicates =ha= specif'.Ic amo~n~ of ~,as which a~e now be~m~ used,, o~ that, will be prior to the January 2., I970 expi~atf, on ,of this o~der ~ Mobil Oil Corporation Mr. Thomas R. Marshall, Jr. Executive Secretary Alaska Oil & Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99503 700 "G" STREET ANCHORAGE, ALASKA 99501 / Northwest Producing Area P. O. Box 1734 ?R,~ -- .. Anchorage, Alaska 99501 h~OK©LV ..... /~:~"" November 26, 1969 ;!~.. ._~%~' ..... FILE Dear Mr. Marshall: In response to your directive concerning "Extension of Conservation Orders No. 32 and No. 61 For An Additional 120-Day Period," Mobil Oil Corporation submits the following information regarding the utili- zation of casinghead gas from the Granite Point Platform. As we have previously mentioned we have installed the following equipment on the platform: One (1) 800 KW Turbine Powered Generator utilizing about 210 MCF/D. One (1) 1550 HP Compressor utilizing about. 220 MCF/D. One (1) 350 ~IP Compressor utilizing about 60 MCF/D. One (1) temporary water injection pump driven by a 266 HP Waukesha gas engine utilizing about 72 MCF/D, the operation of which has now been suspended. Plans to install a full scale waterflood system are in progress. The instal- lation is now in progress and start-up is scheduled for February 1970. The system when complete will utilize approximately 1000 MCF/D for deaerating equipment and two (2)1450 HP gas turbine powered injection pumps. The Granite Point Shoresite has two (2) 500 HP gas engine driven shipping pumps which utilize about 200 MCF/D. In addition, the treaters at the shoresite utilize about 50 MCF/D when in operation. We are continuing in our efforts to utilize casinghead gas in every beneficial way possible and respectfully request extension of Conservation Orders No. 32 and No. 61 commencing May 7, 1969. AV BARNETT/rp Very truly yours, Division Engineer ACKNOWLEDGMENT United States of America ) State of Alaska ~ ss. ....C.,.....C.:.....W...o...o..d..~...~..../.. ................................................................. appeared before me on the .................... 2...6..t...h ............. day of ...~...o...v..e.~b...e.~ ...................... , 19...6...9.., at Anchorage, ~, Atlaska. I know .....H.i...m. ......... to be the person~ described i~l and who executed the above instrument ...... He ............ said .......... ..H.e ..................... knew the contents thereof and acknowledge,d~ame to,~.,~.. ~.s. ................ act. Notary Public for Alaska My commission expires: ............ .6..-..1...4..-.7..Q ............................ David A. Wells CORPORATE ACKNOWLEDGEMENT United States of America ] State of Alaska~ ss. appeared before me on the ............ day of ........................ .......................................... ,19 ........ , at Anchorage, Palmer, Alaska. I know ................ to be the ...................................... and .................................................... of .................................... a corporation ................................. said that ........................ knew the co~tents of the above and foregoing Deed of Trust and acknowledged the same to be the act of said corporation, done by authority of 'its Board of Directors. Notary Public for Alaska My commission expires: ...................................................... PET1AOLEUM PI:t, OD UCTS November 10, 1969 Mr. T. R. Marshall, Jr. Executive Secretary Oil & Gas Conservation Committee Division of Oil & Gas State of Alaska 3001 Porcupine Drive Anchorage, Alaska 99501 TEXACO INC. P. O. BOX 4-1'579 ANCHORAGE, ALASKA 99503 HLB .~~ .... TRM ~ ,. In compliance with the directive issued under Orders No. 32 and No. 61 of October 31, 1969, we wish to advise that since our .last report we have begun using produced gas exclusively for all platform fuel require- ments on the Texaco-Superior Trading Bay Platform "A". Due to declining production our deve.lopmental drilling to date this year has not resulted in increased gas production since our last report was filed. It is anticipated that we will add artificial lift and/or secondary recovery equipment to the platform within the next year. This additional equipment will approximately double our present fuel gas requirements, thus increasing our gas utilization. Yours very truly, TEXACO Inc. S. Barber District Superintendent FAW:bw DIVISION OF OIL AND ........ ANCtlOIIAGI~ ~1! ii ~ ~ KEITH H. MILLER, GOVERNOR DEPT IITMENT OF NT TIII L RESOUltCF S / 3001 Porcupine Drive DIVISION OF OIL AND GAS / ANCHORAGE 99504 October 31, 1969 TO: COOK INLET GAS PRODUCERS Subject: Extension of Conservation Orders No. 32 and No. 61 for an Additional 120-Day Period Decision A review by the Oil and Gas Conservation Committee of the materials submitted in accordance with stipulations contained in Conservation Orders No. 32 and No. 61, as detailed by our original directive of July 15, 1968, has been made. It is the Committee's decision that the operators are actively pursuing a program to beneficially utilize the gas which is being f lar ed. Directive Conservation Orders No. 32 and No. 61 are extended for an additional 120-day period from September 4, 1969 or until January 2, 1970. , Affidavits from Cook Inlet gas producers showing further efforts made to utilize casinghead gas will be due at 'least 30 days prior to the expiration of the 120-day extension period, or by ~ecembe~r 3, 1969. Additional affidavits may be requested during this '~'extens~ion ~i'e~iod. ~mas R. Marshall, jr. Executive Secretary Alaska Oil and Gas Conservation Committee union Union Oil and Gas D[M~..i,~n: Western Region / Union Oil Company of Lalifornia ' 507 W. Northern Lights Blvd., Anchorage, Alaska Telephone (907) 279-4511 HLB =_~:~/~1 TRM .,, ,..-: OKG KLV _ / HVtK REL October 14, 1969 FILE State Division of Mines & Minerals Department of Natural Resources 5001 Porcupine Road Anchorage, Alaska 99504 ATTN' Mr. Thomas R. Harshall, Jr. CASINGHEAD GAS UTILIZATION COOK INLET, ALASKA The attached data sheets (2) describe current and planned utilization of casinghead gas for properties operated by Union Oil Company of California in the Hc Arthur River and Trading Bay Fields. This information is submitted in compliance with Conservation Orders 32 and 61. Very truly yours, Eugene F. Griffin EFG-mgl Enclosures 1 ' 1969 DIVISION OF OIL AND GA5 ANCHORAGE /~tlan{icRichfieldCompan¥ North Americf"~ Producing Division Alaska Distr(, Post Office Box 360 Anchorage, Alaska 99501 Telephone 907 279 1411 August 21, 1969 Mr. Thomas R. Marshall, Jr. Executive Secretary Alaska Oil and Gas Conservation Committee S001 Porcupine Drive Anchorage, Alaska 99504 Re: Beneficial Use of Gas Produced Trading Bay Northeast Oil Pool Dear Mr. Marshall: In accordance with your directive of May 7, 1969, we submit our affidavit detailing efforts toward gas utilization from the Trading Bay Northeast Oil Pool on our Spark Platform. We also request administrative extension of Conservation Orders No. 32 and 61 for another 120-day period starting September 4, 1969. Ail fossil fuel powered equipment on the Spark Platform is currently connected to and being supplied by natural gas. This equipment consists of two Nordberg turbine units which are driving AC generators and two boilers. In addition, pro- duced gas is being used for artificial lift in our gas lift system. Currently 70% of produced gas is being consumed as fuel, with the July figures showing 43,790 MCF of produced gas consumed as fuel from a total of 62,090 MCF of produced gas. We anticipate this 70% value to increase with time as the fuel requirements remain constant and the produced gas goes into a decline. Very truly yours, ~L,~i'' ~. E. ~lso~ D±str±ct Production Drilling Superintendent ja UNITED STATES OF AMERICA STATE OF ALASKA SS L. E. WILSON, being first duly sworn upon oath, deposes and says that he is employed by ATLANTIC RICHFIELD COMPANY, that the foregoing Applica- tion has been prepared under his supervision and direction, that he is familiar with the information contained in the Application, and that the matters and the things therein set forth are true and correct to the best of his knowledge and belief. L. E. Wilson 1969. SUBSCRIBED AND SWORN TO BEFORE ME this,~/~i'.~.~.~.'-day of , Union Oil Co. - Operator Beneficial Use of Produced Gas TRADING BAY UNIT GRAYLING PLATFO~,I A. Equipment Now Using Gas 2 Glycol boilers 2 Solar turbine driven generators 1 Solar turbine driven gas transmission compressor 4 Solar turbine driven gas lift compressors 1Deoxygenator tower 2.Solar turbine driven waterflood pumps Additions to be Made That Will !!se Cas 1 Solar turbine driven gas transmission compressor 1 Steam generator 4 Solar turbine driven water flood pumps 1 Solar turbine driven crude oil pump Al B, DOLLY VARDEN PLATFOR~ Equipment Now Using Gas 1So'~ar turbine driven generator 1 Gas lift compressor engine - 5000 HP 1 Steam boiler 2 Glycol'heaters 2 Solar tUrbines for water flood 1Deoxygenator tower Additions to be Made That Will lJse Gas 2 Solar turbines for water{lood 1 Gas lift compressor engine - 3000 A. KING SAL~4ON PLATFO~{ Equipment Now Using Gas 1 SO00 HP turbine driven waterflood pump '1 Deoxygenator tower B. TRADING BAY UNIT (Cont.) Additions to be ~.lade That Will Use Gas 1 Steam generator 1 Hot water boiler 2 - 2000 HP gas lift compressors 2 - 1500 HP turbine driven electrical'generators A. B, WEST FORELAND ONSHORE SITE Equipment Now Using Gas. Heater treaters Line heaters Flow splitters" Electrical generator units Glycol dehydrator Glycol boilers LACT building heaters Heaters for pump motors CIPL Solar turbines CIPL Waukesha driven pump Skin tank heater - 750 HP'gas compressor Hot water heater Additions to be Made That Will Use Gas Liquid extraction plant 1 Turbine driven electrical generator unit 2 - 1100 HP gas compressors Ae B~ TRADING BAY PLATFORS~ Equipment Now Using Gas 2 Glycol boilers 1 Cat AC generator 2 Gas lift compressor engines - 880 HP each 2 Cat DC generators Additions to be Hade That Will Use Gas Steam Generator Deoxygenator tower RCH:mgl 10-14-69 PAN A mCAN PETROLEUM CORP01Z ION SECURITY LIFE bUILDING DENVER.. COLORADO 80202 August 4, 1969 File: AMR-1591-986. 511 Re: Beneficial .R.e...-....U.....s.e....0f Gas 1Drodu. ced, MGS and Granite 7Point Fields Mr. Thomas R. Marshall, Jr. (3) Executive Secretary Alaska Oil and Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99504 Dear Mr. Marshall: In accordance with your directive of May 7, 1969, we submit our affidavit detailing efforts toward further gas utilization in Middle Ground Shoal and Granite Point Fields. On behalf of the Chakachatna Group of companies, we here'by request administrative extension of Conservation Orders 32 and. 61 for another lZ0 day period, starting September 4, 1969. For the period since our affidavit of April 1, 1969, equipment con- versions to gas fuel and conservation measures have been: 1. Conversion of the second AC generator on Middle Ground Shoal Platform Baker to gas fuel has been completed. Water injection into the lease line well and one additional well on Platform Baker has commenced in an attempt to .maintain and eventually increase reservoir pressure. This will conserve gas by minimizing .produced gas-oil ratios. 3. With the start-up of water injections at MGS Baker, one gas fueled turbine to drive the injection .pump has been pl. aced in service. Equipment now using casinghead gas as fuel is as follows: MGS- Bake r MCFD 2 AG Generators 1 Steam Generator l. Gas Lift Compressor 1 Glycol Regenerator 1 Turbine Pump 312 168 234 5 336 1, 055 Mr; Thomas R. Marshall, Jr. -2- AMR-1591-986.511 So. MGS-Dillon 8 Waukesha Engines (Kobe) 1 Steam Generator MCFD 346 168 514 Future Turbine Pump 336 AC Generators 348 684 Granite Point - Anna 1 Steam Generator 168 1 Turbine Compressor (See Note) " 336 6 Waukesha Engines (Kobe) 259. 2 AC Generators 360 1,123 Granite Point - Bruce Steam Generator Wauke sba Engines (Kobe) AC Generators 168 216 360 744 Note: Operation of the turbine compressors is alternated, between Granite Point PlatfOrms Anna and ]Bruce; therefore, only one unit is in actual operation at a time. Future Granite Point 4 Turbine Pumps 2,400 East Foreland Treating Facility 1 Freewater Knockout 206 1 Treater 206 2 Glycol Heaters (Winter only) -- 412 The above tabulation also includes our anticipated future equipment conversion to gas fuel. We expect water injections to commence from Middle Ground Shoal Platform Dillon during August which will require use of the turbine driven injection pump. We also plan to convert on the Dillon Platform the two AC generators to gas fuel. during the 4th quarter, 1969. For the Granite Point platforms, all equipment has been converted to gas use. Water injections are planned to commence from both Pan Americar~ operated platforms during July', 1970, at which time 4 gas .fueled turbine driven injection pumps will go into service. cc: See Attached Mailing List Yours very truly, ~,... , ,'..3 MAILING LIST Mr. R. L. Warden (3) Shell Oil Company 430 - 7th Avenue Anchorage, Alaska 99501 Mr. W. G. Christensen Mobil Oil Corporation P. O. Box 1743 Anchorage, Alaska 99501 Mr. E. F. Griffin (3) Union Oil ComPany of California 50'7 W. Northern Lights Blvd. Anchorage, Alaska 99503 Mr. }{. W. Patterson Phillips Petroleum Company 1300 Security Life Building Denver, Colorado 80202 1/ir. H. C. Jamison Atlantic Richfield Company P. O. Box 360 Anchorage, Alaska 99501 Mr. F. L. Franz Skelly Oil Company 1088 Lincoln Tower Building Denver, Colorado 80203 Mr. Ralph G. Crews Suite 600 425 "G" Street Anchorage, Alaska 99501 Mr. F. K. Krebill Pan American'Petroleum Corporation O. BoX' 779 Anchorage, Alaska 99.501 Mr. T. J. Files Pan American Petroleum Corporation Security Life Building Denver, Colorado 80202 STATE OF COLORADO COUNTY OF DENVER ) ) ss ) R. B. GILES being first duly sworn upon oath deposes and says that he is employed.by Pan American Petroleum Cor.poration, that the foregoing Application has been prepared under his supervision and direction, that he is familiar with the information contained in the Ap.plication and that the matters and the things therein set forth are true and correct to the best of his knowledge and belief. Subscribed and sworn to before me this fourth day of August, 1969. Notary Public R. W. Yarbrough District Operations Manager Alaska union Union Oil Company' Oalifornia 507 W. Northern Lights Blvd., Anchorage, Alaska 99503 Telephone (907) 277-1401 April 2, 1969 HLB ~ TRM ~ OK~ ~'L_- KLV ....... HWK ~ REL State Division of Mines & Mineral~L Department of Ntural Resources 3 001 Porcupine Road Anchorage, Alaska 99504 Attention Mr. Thomas R. Marshall, Jr. CASINGHEAD GAS UTILIZATION COOK INLET, ALASKA The attached data sheets (2) describe current and planned utilization of casinghead gas for properties operated by Union Oil Company of California in the McArthur River and Trading Bay Fields. This information is submitted in compliance with Conservation Orders 32 and 61. Attach. RCH :nnb Very truly yours, RECEIVED APR 4 1969 Union Oil Co Beneficial rise of Produced Gas TRADING BAY LNII G RAY L I :st, P LATFOP,.51 A. g. ,. Equi,n~ncnt Now rising Gas 2 Glycol. boilers 2 Solar turbine driven gencrators 1 Solar turbine driven gas compressor Additions to be Made That ;'.Jill Use Gas St ¢:am generator Solar turl.~i, ne driven water flood pumps Solar turbine driven crude oil pump Solar turbine driveno-°as lift compressors A. B, DOLLY VARDEN PI,ATFOR¢,I . Solar turbine dri. ven generator Gas lift comr~ressor engine - 3000 Steam boiler Glycol heaters Solar turbines for watGr., flood.. Deoxygenator tower ~dditio:~s to be :'.lade That Uill Use C;as ............................................................................... Solar turbines for waterFlood Gas lift compressor engine - A. KING S:\L~iON PLATFORM Eouioment Not,, I.lsine C, as 700 t!P gas lift compressor enoi, ne i $000 lIP turbi~lo ' ' c~r].ven waterflood pump ..... : ..~.,.t'.or tower RECEIVED APR 4 1969 TRADING BAY UNIT (Cont. Be Additions to be :lade That Will tJse Gas .. 1 Steam fienera~or 1 ~Iot water boiler 2 - 2000 I~P zas lJ.£t compressors 2 - 1S00 lIP turbine driven eleatrical zenerators A~ B, WEST FOt~,EI,,\ND OXSIIORE SITE Equipmc:nt Not.: Using Gas 8 Heater treaters 3 Line heaters 2 Flow s?litters · 3 Electrical generator units 1 Glycol dehydrator 2 Glycol. boilers 2 LACT building heaters 2 lIeaters For pump motors 2 CIPL Solar turbines 1 CIPL Waukesha driven pump 1 Skim tank heater 1 - 750 }IP gas conpre, ssor Additions to be .',!adc That Will Use Gas Liquid extraction plant 1 Electrical generator unit 2 - 11.00 lip gas com~resso~s TRADING BAY PI,.-\TFOR!.t Equipment Now Using Gas 2 Glycol boilers 1 Cat AC generator Additions to be ~4acle That Will Use Gas_ 1 Steam generator 2 Gas lift compressor engines - 880 tip each 1 Deoxygenator tower 1 Cat DC generator RECEIVED / PR 4 1969 ~~~~L ~A~ RCH: mg 1 4-2-69 PAN AMERICAN PETROLEUM COI PORATION SECURITY LIFE BUILDING DENVER,. COLORADO 80202 April 1, 1969 File: AMR-864-986 o 511 Re: Mr o Thomas R. Marshall, Jro (3) Execut:ive Secretary Alaska Oil and Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99504 Dea'r Mro Marshall: Beneficial Use of Gas Produced As A Result of Crude Oil Producing Operations~ MGS and Granite Point.) HWK REL ,. FILE In accordance with your directive of January 6, 1969, we submit an affidavit detailing efforts toward further gas utilization in Middle Ground Shoal and Granite Point Fields. On behalf of all members of the Chakachatna Group~ 'we hereby request administrative extension of Conservation Orders 32 and 61 without hearing for another 120 day period, starting May 7, 1969. Our present gas utilization and planned future conversions are detailed on. the attached tabulation. Our secondary recovery plans in both fields continue to move ahead in a satisfactory manner° Water injection facility equipment is currently being installed on Middle Ground Shoal Plat:form Baker° We anticipate start~up of water injection by approximately April 15, 1969o All equipment for 'the waterflood facility at Middle Ground Shoal Platform Dillon is scheduled for shipment during April, which should allow for water injection start-up by June 1, 1969. Reservoir simulation computer model studies are currently being evaluated for secondary recovery plans for the Granite Point Field. We are hopeful that all questions can be.resolved to allow ordering of waterflood equipment during April, 1969~ Informat. ion relative to a possible gas market has been supplied to requesting companies° As yet, no market has been found for the remaining gas 'not be'i.ng 'used for.' 'fuelo The planned waterfloods, however, will provide the added conservation effect of minimizing gas~oil ratios in the production of crude oil from these fields. Yours very truly, At t achmen t cc: See Attached Mailing List RECEIVED APR 3 1969 DIVISION OF OIL AND GA~ AN¢~E STATE OF COLORADO ) ) SS COUNTer OF DENVER ) R. B. GI~S being first duly sworn upon oath deposes and says that he is employed by Pan ~erican Petroleum Corporation, that the ~regoing Application has been prepared under his supe~ision and direction, that he is f~iliar with the info~ation contained in the Application and that the matters and the things therein set forth are true and correct to the best of his knowledge and belief. Subscribed and sworn to before me this First day of April, 1969. My Commission Expires May 6, 1969. RECEIVED APR 1969 D~VI$10N OF OIL AND G.~ MAILING LIST Mr. R. L0 Warden (3) Shell Oil Company 430 ~ 7th Avenue Anchorage, Alaska 99501 Mro W~ Go Christensen Mobil Oil Corporation Po O~ Box 1743 Anchorage, Alaska 99501 Mr. Ro Wo Yarbrough (3) Union Oil Company of California 2805 Denali Street Anchorage, Alaska 99503 Mr. Co Lo Cox Sinclair Oil & Gas Company 501 Lincoln Tower Building Denver, Colorado 80203 Mro Ho Wo Patterson Phillips Petroleum Company 1300 Security Life Building Denver, Colorado 80202 Mr. F. L. Franz Skelly Oil Company 1088 Lincoln Tower Building Denver, Colorado 80203 Mro Wo Po Whitmore Skelly Oil Company P~ Oo Box 1650 Tulsa, Oklahoma 74102 Mr~ Ralph G~ Crews Suite 600 425 "G" Street Anchorage, Alaska 99501 Mr° F. Ko Krebill Pan American Petroleum Corporation Po Oo Box 779 Anchorage, Alaska 99501 Mr° T. Jo Files Pan American Petroleum Corporation Security. Life' Building Denver, Colorado 80202 Cook Inlet- Gas Utilization - page 2 GRANITE POINT PLATFORM ANNA Unit 2 Steam Generators (4) 1 Turbine Compressor (5) 6 Waukesh~ Engines (Kobe) 2 AC Gener&t~s GRANITE POINT PLATFORM BRUCE Unit I Turbine Compressor (5) 2 Steam Generators (4) 5 Waukesha Engine-s (Kobe) 2 AC Generators EAST FORELAND TREATING FACILITY Unit 2 Freewater Knockouts 2 Treaters 2 Glycol Heaters Ho r s e powe r. 175/ea. 1,100 180/ea. 750/ea. Av~. CFPH 7,000/ea. 14,000 1,800/ea. 7,500/ea. Total 1,100 175/ea. 180/ea. ?50/ea. 14,000 7,000/ea. 1,800/ea. 7,500/ea. Total Firetube Rating BTU/Hour 12,000,000/ea. 12,000,000/ea. 2,500,000/ea. Av~. CFPH 8,600/ea. 8,600/ea. 3,750/ea. Total Avg. MCF/Month 5,075 5,000 7,775 10, 8OO 28,650 MCF 5,000 5,075 6,475 10,800 27,350 MCF Avg. MCF/Montk .... - 12,300 12,300 5,400 30,000 MCF COOK INLET - GAS UTILIZATION MIDDLE GROUND SHOAL PLATFORM BAKER Unit 2 AC Generators (1) (4-15-69) 1 Steam Generator I Gas Lift Compressor 1 Glycol Regenerator HorSepower Avg. CFPH A. v[~. MCF/Month 650/ea. 6,500/ea. 4,800 (6) 175 7,000 5,075 975 9,750 7, ZOO ZOO 8OO 6OO Present Total 17,675 MCF Planned Conversion 1 Turbine Pump (P-) (4-15-69) SOUTH MIDDLE GROUND SHOAL PLATFORM DILLON , 1,100 14,000 5,000 ~ ,, Unit 8 Waukesha Engines (Kobe) 1 Steam Generator 180/ea. 1,800/ea. 10,000 175 7,000 5,075 Present Total ,. 15,075 MCF Planned Convers ions 1 AC Generator (3) ) (1) (6-1-69) ( I AC Generator (3) ) ( 1 Turbine Pump (2) (6-1-69) 650 6,500 750 7,500 1,100 14,000 4,800 5,400 5,000 Cook Inlet- Gas Utilization - page GRANITE POINT PLATFORM ANNA Unit Steam Generators (4) Turbine Compressor (5) Waukesha Engines (Kobe) AC Generators Horsepower 175/ea. 1,100 180/ea. 750/ea. Av~. CFPH 7,000/ea. 14,000 1,800/ea. 7,500/ea. Avg..... MCF/Month 5,075 5,000 7,775 10,800 GRANITE POINT PLATFORM BRUCE -- Unit 1 Turbine Compressor (5) 2 Steam Generators (4) 5 Waukesha Engine-s (Kobe) 2 AC Generators EAST FORELAND TREATING FACILITY Unit 2 Freewater Knockouts 2 Treaters 2 Glycol Heaters Total 1,100 175/ea. 180/ea. 750/ea. 14,000 7,000/ea. 1,800/ea. 7,500/ea. Total Firetube Rating BTU/Hour 12,000,000/ea. 12,000,000/ea. 2,500,000/ea. Avt. CFPH 8,600 / ea. 8,600/ea. 3, 750/ea. 28,650 MCF 5,000 5,075 6,475 10,800 27,350 MCF Avg. MCF t Montini' 12,300 12,300 5,400 30,000 MCF ~C;ooo Cook Inlet - Gas Utilization - page (1) (2) Presently only one unit is in operation at a time - both will be in continuous operation by the indicated date. Unit is to be in operation by the indicated date. (3) Conversion is to be made upon availability of adequate supply of dry gas. (4) (5) Only one of these units is in operation at a time with the other unit on standby. Operation of these compressors is alternated between Granite Point Platforms Anna and Bruce, thereby only one unit is in operation at a time. (6) The average monthly MCF of gas indicated will double when both units are placed into continuous operation. UN~iTED STATES OF AMERICA STATE OF ALASKA On this before me personally appeared 1st day of April A.D., 19 W. G. Chr~i~-~nsen 69 .- to me known to be the identical individual(s) described in and' who executed the foregoing instrument, and he acknowledged to me that executed the same freely and voluntarily for the uses and purposes therein mentioned. he My commisSion expires: IN WITNESS THEREOF, I have hereunto set my hand and affixed my official seal the day and year first above written~ . -~a~ Publicz~in and f~r the State o~Bs~a residing at PI~I~OL~ UM PR OD UC'I~ March 28, 1969 TEXACO INC. P. O. BOX 664 ANCHOI:~GE. ALASKA 99501 l~Ir. T. R. Marshall, Jr. Ezecutive Secretary State of Alaska Oil and. Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99501 ~LB TRM ~ OKG ~ RE.L ~ Dear I~Ir. Marshall: In compliance wit].] the directive issued under Conservation Orders No. 32 and No~..~_l.....,..,.of January 6, 1969, we wis'h to advise you that there have been no changes in the gas utilization on the ?exaco-Superior Tr~alng Bay Platform "A from the status ind. icated previously, it is anticipated, this status will not change until additional development drilling occults. JGC: spc Very truly yours, TE}LACO Inc. S. Barber District Superintendent ~'--,, ...'4 .,...~ '7'~ ": .t -, .:. ~JC ,1 DIVISION Oi: CiL AND OAS AN.::t :...3E Mobil Oil Corporation Mr. Thomas R. Marshall, Jr. Executive Secretary Alaska Oil & Gas Conservation Commission 3001 Porcupine Drive Anchorage, Alaska 99503 612 SOUTH FLOWER STREET LOS ANGELES, CALIFORNIA 90054 Northwest Producing Area P. O. Box 1734 Anchorage, Alaska 99501 z~ /.~ ~, March 28, 1969 HtB ~ OKG ~" ~,' _ KLV HWK REL ---------- FILE ~ Dear Mr. Marshall: In response to your directive concerning "Extension of Conservation Orders No. 32 and No. 61 for an additional 120-day Period", Mobil Oil Corporation submits the following information regarding the utilization of casinghead gas on the Granite Point Platform. As stated in our letter to you of December 6, 1968, we have installed the following equipment on the platform: One (1) 800 KW gas turbine powered generator utilizing about 300 ~c~/~. ~One (1) 1550 HP and one (1) 350 HP compressor utilizing about 300 MCF/D and~60 MCF/D respectively. As of January 1, 1969, the management of Mobil has approved the instal- lation of a full scale water flood system which will utilize approximately 1180 MCF/D for deaerating equipment and two (2) 1450 HP gas turbine powered injection pumps. Installation of the plant will begin during October 1969 and it is expected to be operational by February 1970. The Granite Point Shoresite has two (2)~500 HP gas engine~driven shipping pumps which utilize about 200 MCF/D. In addition, the treaters at the shoresite utilize about 50 MCF/D when in operation. We are continuing in our efforts to utilize casinghead gas in every beneficial way possible and respectfully request extension of Conservation Orders No. 32 and No. 61 commencing May 7, 1969. AVBarnett/JJBraze/cg P c IWo IIPR 3 196. Very t=uly yo. urs, . ,, / / ~,' .~. ,.. .......~7 - W. G. Christensen Area Superintendent SHELL OIL COMPANY 430 7TH AVENUE ANCHORAGE. ALASKA 99501 Mr. Thomas R. Marshall, Jr. Executive Secretary Alaska Oil and Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99504 Dear Mr. Marshall: Attached in accordance with your directive dated January 6, 1969, is an affidavit detailing Shell Oil Company's efforts toward gas utilization at Middle Ground Shoal field made in the period following our previous affidavit of December 3, 1968. We request administrative extension of Conservation Order No. 32 without hearing for another 120 day period to be effective starting May 7, 1969. RDA: m Very truly yours, R. T,, ~arde~ D±~±s±o~ ?rod~et±o~ Manager cc: w/attachment - Atlantic Richfield Company Standard Oil Company of California Pan American Petroleum Corp., Denver (4) Z)IVi$ION OF OiZ A PETROLEUM PRODUCTS January 22, 1969 TEXACO INC. P. O. BOX 664 ANCHORAGE, ALASKA 99501 CONSERVATION ORDER NO. 61 Mr. T. R. Marshall, Jr. Executive Secretary State of Alaska Oil & Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99501 JP, N 2 !9 9 DIVISION OF OIL AND GAS ANCHOJ~A'3E Dear Mr. Marshall: Please refer to our letter of December 23, 1968 on the above subject. Upon further consideration we feel that there is not sufficient data available to forecast future gas production from the Texaco-Superior Trading Bay Platform "A", and we feel that the forecast data previously supplied could .be in error. Accordingly, we are requesting that information supplied with our letter be replaced, with the following statement: "We are currently producing some 1000 Mcf per day and utilizing some 125 Mcf per day as fuel. Since only 4 wells have 'been completed, it is quite impossible to predict future gas producing rates with any degree of accuracy. Such predictions are further clouded by lack of information on the type of reservoir energy and the degree to which reservoir pressure will be maintained by the injection of gas and/or water. Based on the low producing gas-oil ratios noted to date, it is postulated that practically all casinghead gas will be used beneficially." Very truly yours, TEXACO Inc. ~A~L~tBana~'b~ruperintendent FAW: j m TO: F FROM: DATE : SUBJECT: 3amu,.~y 2I~ 1959 ., ,,~, ,.: v E ,IORANDUM TO: j--Thomas R. Marshall Chief Petroleum Geologist THRU: Homer L. Burrell, Director ~/~ Division of Oil and Gas FROM: Dale Wal 1 i ngton ~ Deputy Commi ss ione~'-~ of Alaska DEPARTMENT OF NATURAL RESOURCES DATE : January 16, 1969 SUBJECT: Extension of Conservation Orders No. 32 and 61 We concur for another 120 day extension to the above Orders. However, it should be noted that once the vapor extraction plant is in operation, all flared gas will be charged for at an equitable rate based on price paid by plant operators. The Commissioner thinks it would be appropriate to notify the operators of this situation. The operators would then have time to work out an agreement with Marathon and Union for disposal of the flare gas from their operations. Since the make-up of the Oil and Gas Commission is now composed of personnel from the Anchorage area, I feel that it would be a waste of the State's money for me to attend the hearing on January 23, 1969. O~ OF O~L A~D GAS TO:J--Harry W. Kugler, Member Oil & Gas Conservation Committee .i A. Williams, Chairman FROM: James Oil & Gas Conservation Comm~,~e' ' DIVISION OF MINES AND GEOLOGY DATE : January 8, 1969 SUBJECT: Conf|nuation of Conservation Orders 32 & 61 I l~ave reviewed the correspondence attached to your memo of January 6. It is apparent to me that the companies have continued bona fide attempts to make the best practical beneficial use of the gas they are necessarJly producing with the cr6deo I recommend that Conservation Orders 32 & 61 be continued by administrative action for another 120-day period. JAW/rah J AN n 19r q DIVISION OF OIL AJ'~D GAS KEITH H. MILLER, Governor D~P~%RTMENT OF NATURAL RESOURCES DIVISION OF 0IL AND GAS ~~~~-~ PORCUPINE DRIVE-ANCHORAGE 99504 January 6, 1969 TO: COOK INLET GAS PRODUCERS ., Subject: Extension of Conservation Orders No. 32 and No. 61 for an Additional 120-Day Period Decision A review by the Oil and Gas Conservation Committee of the materials submitted~in,,,accordance'"with' stipulations contained in Conservation Orders?,N~i' 32and~No..~6~l';l~'!as detailed by our original directive of J ' 58'~"~.has.been..made, i~'"'".'.,,.~,,'~ It is .,.deciS.~on~,~,tha,t,~,the.Operators,~ _ '"..~''r., ~ are actively pursuing a./programl'tO:~.beneficia!:ly u.til~ize'"'~the'gas, which is being Directive Conservation~Orders No. 32 and No. 61 will be extended fo~ an 'additional 120-day period from this date or until May 7, 1969. Affidavits from Cook Inlet gas producers showing further efforts made to utilize casinghead gas will be due at least 30 days prior to the expiration of the 120-day extension period or by April 7, 1969. / · .... ~..~7/ / //-/' ~., ,~, .. ,.. ,. / ./"'. ~,. /..~....~...,. ;,.., y.(..,' ./..'~ Thomas R. Marshall ,.- Jr. ..... Executi ye Secret~ry Alaska 0il and Gas Conserwtion Co~it~ee ,.. ., KEITH H. MILLER, Governor DEP~%RTMENT OF NATURAL RESOURCES DIVISION OF OIL AND GAS 3001 PORCUPINE DRIVE-ANCHORAGE 99504 January 6, 1969 TO' COOK INLET GAS PRODUCERS Subject' Extension of Conservation Orders No. 32 and No. 61 for an Additional 120-Day Period Decision A review by the Oil and Gas Conservation Committee of the materials submitted in accordance with stipulations contained in Conservation Orders,,,NO~ 32 and No. 61, as detailed by our original directive of July,15, 1968, has been made. It is the.Com ~ttee s decision that the operators are actively pursuing a program to beneficially utilize the gas which is being flared. Directive Conservation Orders No. 32 and No. 61 will be extended for an additional 120-day period from this date or until May 7, 1969. Affidavits from Cook Inlet gas producers showing further efforts made to utilize casinghead gas will be due at least 30 days prior to the expiration of the 120-day extension period or by April 7, 1969. / . ,4 / Thomas R. Marshall, Jr. Executive Secretary Alaska Oil and Gas Conservation Committee MAILING LIST Letter to Cook Inlet Gas Producers dated January 6, 1969 Subject: Extension of Conservation Orders No. 32 and No. 61 for an Additional 120-Day Period Mr. R. D. Allen Shell Oil Company 430 Seventh Avenue Anchorage, Alaska 99501 Mr. Dale Wallington, Deputy Commissioner Department of Natural Resources Pouch M Juneau, Alaska 99801 Mr. Robert T. Anderson Union Oil Company of California 2805 Denal i Street Anchorage, Alaska 99501 Mr. E. J. Wentworth Superior Oil Company 3301 Brundage Lane Bakersfield, California 93309 Mr. Claude H. Brown Texaco Inc. P. O. BOx 664 Anchorage, Alaska 995O1 Mr. James A. Williams, Director Division of Mines and Geology Box 5- 300 College, Alaska 99701 Mr. W. G. Christensen Mobil Oil Corporation P. O. Box 1734 Anchorage, Alaska 99501 Mr. Tom Files, Division Attorney Pan American Petroleum Corporation Security Life Building Denver, Colorado 80202 Mr. Robert Hartig Assistant Attorney General 360 K Street., Suite 105 Anchorage, Alaska 99501 Mr. H. C. Jamison Atlantic Richfield Company P. O. Box 360 Anchorage, Alaska 99501 Mr. Thomas E. Kelly, Commissioner Department of Natural ReSourCes Pouch M Juneau, Alaska 99801 Mr. F. K. Krebill Pan American Petroleum Corporation P. O. Box 779 Anchorage, Alaska 99501 Mr. Morris L. Lowman Marathon Oil Company P. O. Box 2380 Anchorage, Alaska 99501 MEMORANDUM TO: ~ FRO//,: State of "Alaska DATE : J~IttaL'~ &, 1969 SUBJECTt · he aC~ corresponde~c~ co=;r~tuCea Cha enti~. '~p~ ~ 'ha~ ~t~d f~ ~e ~ok ~1~ ~eraco~ affecc~ by ,~ ~n~atton Orde~ ~,. 32 ~ ~. 61 ~r~ng to the ~r~g o[ P~ue r~t~ a~ no~'fy ~ u Co vheCher or nec you ~~~ o; C~a~o~ O~e~ ~.. 32 a~ ~, 6I. MEMORANDUM State of" Alaska OIL ~ GAS CONSERVATION FROM: DATE : JaauaL~ &, 1969 SUBJECT~ Union Oil Company'"'"'"' .,alifornia 507 W. Northern Lights Blvd., Anchorage, Alaska 99503 Telephone (907) 277-1401 December 27, 1968 Mr. Robert Larson Division of Mines & Minerals 3001 Porcupine Drive Anchorage, Alaska 99504 Dear Mr. Larson: This is to confirm the gas usage volumes as per our telephone conversation of December 26, 1968. Gas usage for the various items of equipment is estimated as follows: Equipm .ent Consumption/Unit 1100 HP Solar Turbine 100 HP Boilers 50 HP Boilers Deoxygenator Towers Compressors Heater Treaters Line Heaters Generator Sets @ Onshore Site Flow Splitters Steam Generators 250-350 MCF/D 100-120 MCF/D 50-60 MCF/D 150 MCF/D 2-1/2 SCF/HP hr 5@ 130 MCF/D 3@ 530-535 MCF/D 395 MCF/D 90 MCF/D 655-660 MCF/D 100 MCF/D Should you have any questions, please adviV. ~ / · Ver~ truly/yours, f; /~.. R.C. Hartmann District ?roduction Super±ntendent RCH/dp DE O ,3 0°. DIVISION OF OIL AND GAg ANCMORAGE P. O. Box 779 Anchorage, Alaska 99501 December 18, I968 File- Re- FKK-I304-986.51i Gas Utilization, Middle Ground Shoal and Granite Point Fields Mr. Thomas R. Marshall, Jr. Division of Oil and Gas Alask~ Department of Natural Resources 3001 Porcupine Drive Anchorage, Alaska 99504 Dear Mr. Marshall: Attached is a tabulation of fuel gas utilization by individual units in our Cook Inlet operations. Please attach this tabulation to the letter of November 27, I968, File: AMR-2851-986.511, from Mr. R. B. Giles of our Denver Division office. As indicated in the attachment, this information was sub- mitted to Mr. Bob Larson of your office by telephone on December I9, I968. Yours very truly, F. K. Krebill Area Superintendent Attachment DEC 2 0 196 DIVISION OF OIL AND GAS ,ANCHOP. AGE COOK INLET - GAS UTILIZATION Following is a tabulation of the gas usage per item of equipment, based on December, 1968 projected operations. This information is being added to R. B. Giles' letter of November 27, 1968, File: AMR-2851-986.511, per his telecon with J. C. Schillereff on December 17, 1968. This data was given to Mr. Bob garson of the Alaska Oil and Gas Conservation Committee, Oil and Gas Division, by telephone on December 19, 1968, and a copy is to be mailed to Mr. Thomas R. Marshall, Jr. Middle Ground Shoal Platform Baker Unit Horsepower Avg. CFPH AC Generators (1) 650/ea. Steam Generator 1 75 Gas Lift Compressor 975 Glycol Regenerator 200 Avg. MCF/Montk 6,500/ea. 4,800 7,000 5,075 9,750 7,200 8O0 60O South Middle Ground Shoal Platform Dillon Unit Horsepower Avg. CFPH 8 Waukesha Engines (Kobe) 180/ea. 1 Steam Generator 1 75 Total 1 7,675 MCF 1,, 800/ea. 7,000 Avg. MCF/Month 10,000 5, O75 Granite Point Platform Anna Unit Horsepower 2 Steam Generators (1.) 1 Turbine Compressor (2) 6 Waukesha Engines (Kobe) 2 AC Generators 175/ea. 1,100 iS0/ea. 750/ea. Total Avg. CFPH 7,000/ea. 14,000 1,800/ea. 7,500/ea. Total 15,075 MCF Avg. MCF 5,075 5,000 7,775 10, 800 28,650 Month [CF Cc>ok Inlet - Gas Utilization- Page 2 Granite Point Platform Bruce Unit Horsepower 1 Turbine Compressor (2) 2 Steam Generators (1) 5 Waukesha Engines (Kobe) 2 AC Generators 1,100 175/ea. 180/ea. 750/ea. Avg. CFPH Avg. MC[F/Month 14,000 5,000 7,000/ea. 5,075 1,800/ea. 6,475 7,500/ea. 10,800 East [Foreland Treating [Facility Unit Firetube Rating- Avg. C[FPH Btu/Hour Total 27,350 MCF Avg. MCF/Month 2 Freewater Knockouts 12,000,000/ea. 8,600/ea. 12,300 2 Treaters 12, 0'00,000/ea. 8,600/ea. 12,300 2 Glycol Heaters 2,500,000/ea. 3,750/ea. 5,400 Total 30,000 MCF (1) Only one of these units are in operation .at a time with the other unit on standby. (z) Operation of these compressors is alternated between Granite Point Platforms A and B, thereby only one unit is in operation at a time. PETROLEU~i PRODUCTS Decenfoer 23, 1968 TEXACO INC. P. O. BOX 664 ANCHORAGE, ALASKA 99501 CONSERVATION ORDER NO. 61 Mr. T. R. Marshall, Jr. Executive Secretary State of Alaska Oil & Gas Conservation Con~ittee 3001 Porcupine Drive Anchorage, Alaska 99504 Dear Mr. Marshall: The attached graph entitled "Casinghead Gas Utilization on the Texaco-Superior Trading Bay State ADL 17597 Lease" is sub- mitted in response to'your letter on the above subject dated December 11, 1968. The graph presents the requested information. Our present mechanical arrangement is such that casinghead gas is our .primary fuel source. We use diesel oil only as a standby source .of fuel. In the summer of 1970 we anticipate the addition of a 4,000 h.p. gas lift corapressor, a heater treater and a free water knockout which will boost our fuel requirement from the present 800 Mcr per day to 2600 Mcr per day. The graphical presentation of gas utilization does not incorporate the effects of seCondary recovery on the lease. As is evident, after 1981 with conventional operations there will 'be a deficit of fuel gas. We fully intend to use some type of second- ary recovery on the lease to maximize recovery,, however, at this_ time we are unable to reflect this on the gas utilization curve. We are giving serious consideration to gas injection for pressur~ maintenance in addition to water flooding as a form of secondary recovery. If we elect to use gas injection, there will'be a gas deficit throughout the life of the project,, · Very truly yours, TEXACO Inc. ~ ~ ' ,,,"3 · /~ ./~,.,? '" 1968 ///3. S. rber ~ Assistant Superintendent FAW: j m Attachment 5 0 ~' ~ ......... ~ ...... ' _~.i .............................. -~ .......... ~ [ ............ ~ ............... ~'" ~ .......................... ~" m ,,, , . , I ] 19 .85.-. [ ].9..~ t i9_87' '1, ~-~ '78 . ~979 ....~9_8_0 ....~...81 ....]9._.8.2 ...... ~9.83 ....... I~9''-~'''6' I , .... ALAS,~CA OIL AI~D GAS CONSERVATION CO~,'IMITTEE ~)ecember II, 1968 Re: Conservation Order No. 6t Granite Point, McArtJ~ur River, and Trading Bay Fields ~lr. J. S. Barber Assistant Dlserict Superintendent Texaco Inc. P. O. Box 664 Anchorage,. Alaska 99501 Dear Sir: Subsequent to May lO, 1968, the effective date of Conservation Order 'lto. 61, Texaco Inc., as .operator for itself .and the Superior Oil Company, commenced production from the Trading Bay Field. 5y letter dated ~September 9, 1968., to other Cook Inlet gas producers, the 0il and Gas Conser~atio~ Cm~)mittee required affidavits showt~g further efforts .~ade to utilize, casinghead gas. A copy of that letter is enclosed. Since Texaco has .~)o't been called upon to present any i'~.formatio)~ ~ith respect to its production of casimghead gas, ~e would appreciate receiving the followi~ info.m~)etion ~ith respect to Texaco's operations in. the Trading ~ay Field: 1. the m~Ount of d~ily production of castnghead gas; 2. the amount of casi~ghead gas being be~)eficially utilized, such as 'for motor fuel and for heating; a~d 3. a graph showing projected production of castnghead gas and the amount which may be beneficially utilized. '~e would appreciate receivin§ this infomation prior 'to January 6, 1969. 'TRM:HLB:may F-,~:~closute' very truly yours., '"Thomas R. ~ars~all, Jr. ~ecutive Secretary cc: E. J. Wentworth Superior Oil Cm'~pany Corporc ion December 6, 1968 700 "G" STREET ANCHORAGE, ALASKA 99501 Mr. Thomas R. Marshall, Jr. Executive Secretary Alaska Oil & Gas Conservation Commission 3001 Porcupine Drive Anchorage, Alaska DIVISION OF OIL AND GAS Gentlemen: In response to your directive extending Conservation Order~g'~Tdated September 9, 1968, Mobil Oil Corporation as operator at the Granite Point Platform respectfully submits the following: On the Mobil Oil operated Granite Point Platform, we have installed the following equipment: One 800 IIW gas turbine powered generator utilizing about 300 MCF/D fuel. One 1550 HP and one 350 HP compressor utilizing about 300 MCF/D and 60 MCF/D respectively. Ail this equipment is presently in operation. At present, pursuant to injectivity tests, we are preparing a recommendation to the management of Mobil Oil Corporation to purchase'and install a full scale water flood system which will utilize the following gas fueled equip- ment: ~CF/D Gas deaeration equipment 120 2-1450 HP gas turbine powered injection pumps 530 (each) This will be an additional 1180 MCF/D of gas used as fuel. The proposed installation date of this equipment is October, 1969. At the Granite Point Shoresite, the two 500 HP gas engine driven shipping pumps have been installed and are in operati?n. _~? utilize about i00 MCF/D / The foregoing information updates our previous letter of August 7, 1968 and is in line with our testimony presented in hearings before the Cpnservation ~Committee on February 7, 1968 and May 8, 1968. We are continuing in our efforts to utilize casing head to every beneficial use possible and respectfully request your administrative approval tp extend Conservation Order #61 for an additional 120 day period beginning January 6, 1969. CAChampion:cg Very truly yours, W. G. Christensen Area Superintendent '",'' Personally appeared ~n~ above.-.r-.~m~d W.G. Christensen known or proved to ma to ba the smue person who e~ccuted the foregoing instrmme~b.~ and ackmowledEed to me that ha executed the same as his frae act and deed~ WITNESS my siguature~ offS.cia! designation~ and sealo .. .~.-"'?, / \ /'~ ~.'~' ~ (IMPP, ES$ S~tL HERg) }Dated at Anchorage,, Alaska (Official designation) i~','~Ls 9th day of DecemSer __y19 68 My com:~ssion exp~-'es 7__2? · _ :: . ,19 7~o._ DE C .q DIVISION OF'~311. AND GAS ANCHOP,,AG E Union Oil Company . .~alifornia 507 W. Northern 'Lights Blvd., Anchorage, Alaska 99503 Telephone (907) 277-1401 December 6, 1968 R. W. Yarbrough District Operations Manager Alaska .State Division of Mines & Minerals Department of Natural Resources 3001 Porcupine Road Anchorage, Alaska 99504 Attention Mr. Thomas R. Marshall, Jr. CASINGHEAD GAS UTILIZATION COOK INLET, ALASICA The attached data sheets (2) describe current and planned utilization of casinghead gas for properties operated by Union Oil Company of Californ'ia 'in the 1V~cArthur River and Trading Bay Fields. This information is submitted in compliance with Conservation Order 61. Very truly 'yours, Attach. RWY:nnb OiL AND GAS Union Oil Co. - Operator Beneficial Use of Produced Gas TRADING BAY UNIT Grayling Platform A. E_quipment Now Using Gas 2 Glycol boilers 1 Solar turbine driven generator B. Additions to be Made That Will Use Gas 1 Steam generator ~' 2 Solar turbine driven water flood pumps ~5"'~ 1 Solar turbine driven crude oil pump- % 1 Solar turbine driven ~as compressor 4 Solar turbine driven gas lift compressors m~ m. me B~ Dolly Varden Platform Equioment Now Usin~ Gas 1 Solar turbine driven generator 1 Gas lift compressor engine - $000 HP 1 Steam boiler 2 Glycol heaters , Additions to be Made That Will Use Gas 2 Solar turbines for water flood 1 Deoxygenator tower .,. / ~qO /~'(Z. ~Z King Salmon Platform Eq,u, ipment Now Using Gas · · ~A~'~,~ i',.,:,,~ ~,, ~,~, 700 HP gas lift compressor engine / ~ ~ Additions to be blade That Will Use Gas DlYlSlON O~ OIL AND OAS 1 5000 HP turbine driven water flood pump 1 Steam generator ' 1 Hot water boiler 1 Deoxygenerator tower -~:~Y 1~ 1 5000 HP gas lift compressor ,~'",:;~' .. TRADING BAY UNIT (cont.) Ao Be A, WEST FORELAND ONSHORE SITE Equipment Now Usin~ Gas 8 Heater treaters - J-'/r~ S Line heaters ~ 3 Electrical generator units 2 Glycol boilers ~'~ 2 LACT building heaters 2 Heaters for pump motors 3 CIPL Solar turbines ~,:~,'~,~ Additions to be ~ade That ~iI! Use Cas Liquid extraction plant TRADING BAY PLATFORM Equipment Now Usin~ Gas 2 Glycol boilers ~.. 1 Cat AC generator /,2,¢ ' B. Additions to be Made That Will Use Gas 1 Steam generator 1 Gas lift compressor engine / 1 Deoxygenator tower /.~,"~ ~;',~ ii,,,' ~., ¥ I o ~ ~, ? ~.~ ~,~ ii~, ,~ . v ~'o DIVISION OF Of L AND GAS ANCHO~,J,~E PANAMEP. ICAN PETnOI EUM COI POP. ATION SECURITY LIFE BUILDING DENVER, COLORADO 80202 November 27, 1968 File: AMR-2851-986o 511 I ECENED DE04 1968 DIVISION OF OIL AND GAS ANCHOEAGE Ret Showing of Efforts Made to Utilize Casinghead Gas, Middle Ground Shoal and Granite Point Fields Mr0 Thomas Ro Marshall, Jro (3) Executive Secretary Alaska Oil and Gas Conservation' Committee Oil and Gas Division 3001 Porcupine Drive Anchorage, Alaska 9950~+ Dear Mr 0 Marshall Conservation Orders N°, 32, Middle Ground Shoal Field, and No0 61, Granite Point~ McArthur River and Trading Bay Fields, as extended by your directive of September @, 1968, will remain in effect until January 6, 1969, and may he exten- ded in successive 120 day periods 'upon a showing by each Operator to the satis- faction of the Committee that the Operator is actively pursuing a program to beneficially utilize the gas which is being flared. By your directive of September @th~ Operators have been asked to submit an affidavit before December 9, 1968~ detailing their recent efforts in order to lay claim for an extension of these Orders for an additional 120-day period° Pan American, an Operator in. the Middle GrOund Shoal and Granite Point Fields, on behalf of its partners in the Chakachatna Group, Phillips Petroleum Company, Skelly Oil Company and Sinclair Oil & .Gas Company, herewith submits the requested affidavit and makes Application for an extension of Conservation Orders NCo 32 and $1, administratively without a hearing,, for another 120-day period° In support~ Pan American states that it continues to pursue a program which will provide as many additional beneficial uses of the gas, which has been beneficially used to produce the most valuable product, the crude oil itself, as is feasible° By platforms in~ Middle Ground Shoal and in Granite Point Fields, we list the equipment .that has been converted to gas and those items which ulti- mately will be converted to produced gas for fuel: Completed Middle Ground Shoal Platform Baker AC GeneratOrs DC Generators Steam Generator Gas Lift Compressor Glycol Regenerator ~r0 Thomas Re Marshall, ~overmber 27, 1968 Page 2 Sou'ch Middle_ Gro~u,n~d_ _Shoal_ P!_a'cfor!u_ Dillon Waukesha E~fines (Kobe) $~eam ~e~era~or Granite ?o iht Platform Anna RECEIVED 1968 DIVISION OF OIL AND GAS ANCHOr, AGE Steam Generators Turbine Waukesha Eng£nes (Kobe) AC Generators 2 1 6 2 Turbine Steam Genera~ors Waukesha Engines (Kobe) AC Generators Ul~lm'a~e AC GeneratOrS ,, Gas Lift Compressor. Waukesha Engines (Ko~) S~e, am Generators Gas Turbines Glycol Regenerator Wa~erflood Equipmsn~s (Gao,Turbines) 8 6 1 1 , 19 19 Our Eas~ Foreland shore faclli.~ies are now making use of p~oduced gas for ~qulycol hea~ ~racing Of ~he facility piping systems and ~o~ all o~her ~shore i~emen~s as neede,d~, ~as engines will po~r wa~e~flood pumps on bo~h M~$ pla~- fo~s. and ou~ ~ani~e:Poin~ p~forma when ins~alle, d in ~h.e futures "' As ~ime goes on':~ expeC~ we will. have occasion ~o ~ke certain adjustments ~o ea~lie~ lndica~ed pla~o concern.ins our platform ope~a~ionso Even so, we'believe Ou~ gao ~a~e forecasts ~ha~ ~ere presented as evidence a~' ~he p~ltc hearings.on ~he. se four pla~fo~s earlier ~hio yea~......remain ~aS~ably:'valido Cer~ainly no' m.o~. gas ~han had been p~dic~Od will be p~oduced...~d..qui~e likely a' lesser ~:... volume of gas ul~ima~olY, will .~. p~oduCed .from ~he ~W° fields, " ,~ , :, , ,,, ,, :/, ~,,, ,,: :, :' ' ~,"":~ . our secondary ~c0ve~y.'plans a~ound ~he. pla~fo~$~ in ~hese ~wo fields con~inue~ ~o move ahead in a' sa~isfac~ory manner, The ~Otnt (Ch~acha~na-SAS G~U.p) lease .line 'water in, ecg!on :well=, "..~GS 17595 Well Moo ';":12',. ;~.. ts tn ~he fits.aZ s~ageS.'°f:c~ple~ion P'~pa~a~o~y...~.o...$~a~'~g in~ec~ions, ~ater- flood plans a~ P~fo~.Dil~on./a~e in ~he. ~inal.'::.s~ages' ~d considerable equipment already iS ~ order~ ~...The Gr~!~e ~otn~.,'B" .187~2..N.o,.:.6. ~11 con~inues ~o receive wa~er, in, scSi, ns ~o~aling 226~ooo..bar~ls so fa~ :..:The,' tn~ec~ton ra~e has been abou~ 1800' B~PD a~ ~50 psi, .a.'..lt~le be.~e~. ~han...:when in:~ec~ions firs~ co~enced bU~ s~tll lo~r ~han we desi~ F~loff.. ~es~s.~o .evaLuate cu~en~ in~ec~ton.,, ~esu;!~s will ~ condu.c~ed .soon~: Thereafter, .we.:Plan...~.~.~o. Paise. in~ection preSSUre ~o ~:he 5500-6000 psi .:~anse in ~ effo~ tp lmproVe..:..~he::'tn~ec~ton ra~eo Cooperative in~.ec~ton agreements ,am, ns ~he: ope~a~o~s ~ve been....d~a~ 'up in ~eadine.ss sider pu~tng full sgale':wate~floods tn~o effe~t.."tn""bO~h' fields. :, ' ,/ ', , : , ,,, , ,, .,, ,, ~ L:" ' " -" ": ~' ':'''i' :", :" :~' ' Mr~ Thomas R. Marshall~ November 27~ 1968 Page 3 We still hope that a market can be found for the remaining produced gas which is not being used for fuelo We remain alert for any possible change in the market outlook° Unless the situation changes markedly, however, we continue to foresee no immediate solution to this problem° The best resolution at this time that would depress future gas production rates seems to be the anticipated expansion of water injection operations at Middle Ground Shoal in early 1969 and successful completion of injectivity tests at Granite Point so that it will be feasible to conduct full scale waterfloods in both Middle Ground Shoal and Granite Point .Fields~ We feel real progress is being made towards full scale waterflooding in both fields, We respectfully request your administrative approval to extend the captioned Conservation Orders for another 120-day period beyond January 6, 19690 cc~ Mro Homer Burrell , Director~ Oil and Gas Division Department of Natural Resources 3001 Porcupine Drive Anchorage ~ Alaska 9950q Yours very t~ruly, DIVISION OF OIL AND GAS RECBVED DEC 1968 ANCHOtlAGE See Attached Mailing List STATE OF COLORADO ) ~ SS COUNTY OF DENVER ) R0 Bo GILES being first duly sworn upon .oath deposes and says that he is Engineering Group Supervisor~ employed by Pan American Petrole~m'Co.~pOratlon', that the foregoing Application has been prepared under his supervision..and , direction, that he is familiar with the information contained in'~the '~pPlication and that the matters and the thinEs therein set forth are true and correct to the best of' his knowledge and belief. ' .............. 7 ..... : 7 ..... 7 ~ - : I ,,,, ,, ,,J,.,~,,?_,,,,?, ,,, ,J,,, Subscribed and swo~n to before me this. 27th day of November, 1968o ' ' /" -Notary.. Public Ir ' , My Commission expires July 26, 1970. MAILING LIST Mu,, A o A,, Wiun (3) Shell Oil Company 430 7~h Avenue Anchorage~ Alaska 99501 Mro Wo Go Chris~ensen Mobil Oil Co~pora~ion Po Oo Box 1743 An~horage~ Alaska 99501 ~r~ Ro Wo Yarbrough (3) Union Oil Company of California 2805 Denali $=ree~ Anchorage, Alaska 99503 Mro Co Lo Cox Sin=lai~ Oil & Gas C~pany 501 Linooln Towe~ Building Denver~ Colorado 80203 Mro Ho Wo Pa=~ers,on Phillips Pe=moleum Company 1300 Security Life Building Denve~, Colorado 80202, Skelly Oil Company 1088 Ltnooln Tower Building Denver, Colorado 80203 ~ro Wo Po Whi~more Skelly Oil Company .P,~ 0o Box 1650 Tulsa~ Oklahoma 7V102 , M~ Ralph Go C~ews Suite 600~ ~25 "G" Anoho~agem Alaska 99501 ~o Fo Ko ~'bill Pan Ame~iu,~ Pe=~ole~ Co~po~a~ion Po Oo Box 779 Anchoma~e~ Alaska 99501 ,, M~ To Jo Files Pan ~e~ioan Pe~moleum Co~po~a~ion Secu~i~ Life Buildin~ Denve~ Colorado 80202 RECEWE DIVISION OF 01[ AND ANCHORAGE GAS Pm AM nlCm P ?UOL VM CORPOP. ATION SECURITY LIFE BUILDING DENVER, COLORADO 80202 November 27, 1968 File: AMR-2851-986o511 Re: Showing of Efforts Made to Utilize Casinghead Gas, Middle Ground Shoal and Granite Point Fields ............................... · ' ......... ItU RECE, ¥EI DEC 196; DIVISION OF OIL AND OAS ANCHORAGE J ,,f Mro Thomas Ro Marshall, Jr° (8) Executive Secretary Alaska Oil and Gas Conservation' Committee Oil and Gas Division 3001 Porcupine Drive Anchorage~ Alaska 9950~ Dear Mr~ Marshall: Conservation Orders N°, 32, Middle Gz'oun, d Shoal Field, and Nco 61, Granite Point, McArthu~ River and Trading Bay Fields, as extended by your directive of Septembe~ 9, 1968, will remain in effect until January 6, 1.969, and may be exten- ded in successive 120 day periods upon a showing by each Operator to the satis- faction of the Committee that the Operator is actively pursuing a program to beneficially utilize the gas which is being flared° By your directive of September 9th, Operators have been asked to submit an affidavit before December 9, 19684 detailing their recent efforts in order to lay claim for an extension of these Orders for an additional 120-day period. .,. Pan American, an Operator in the Middle GrOund Shoal and Granite Point Fields, on behalf of its partners in the Chakachatna Group, Phillips Petroleum Company, Skelly Oil Company and Sinclair 0il & .Gas Company, herewith submits the ~equested affidavit and makes Application for an extension of Conservation Orders NCo 32 and 61, administratively without a hearing,, for another 120-day period° In support, Pan American states that it continues to pursue a program which will provide as many additional beneficial uses of the gas, which has been beneficially used to produce the most valuable product, the crude oil itself, as is feasible° By platfozlns in Middle Ground Shoal and in Granite Point Fields, we list the equipment 'that has been converted to gas and those items which ulti- mately will be converted to produced gas for fuel: Completed: , ~_i_d._d~!~'., ~9~nd_ $.ho.a!, P!a,~ f.9.rm.,.. B_ake r. AC Generators DC Generators Steam Generator Gas Lift Compressor Glycol Regenerator M~o Thomas Ko Marshall, Jro November 27, 1968 Page 2 Waukesha Engines (Kobe) Steam Generator Granite Point Platform Anna Steam Generators Turbine Waukesha Engines (Kobe) AC Generators Granite Point Platform Bruce DIVISION OF OIL AND GAS ANCHORAGE Turbine Steam Generators Waukesha Engines (Kobe) AC Generators Ultimate Com,ple_ted_ AC GeneratOrs Gas Lift Compressor Wauk.esha Engines (Kobp,) Steam Generators Gas Turbines Glycol Regenerator Waterflood Equipment: (Gas Turbines) 8 6 1 1 19 19 6 6 2 2 1 1 Our East Foreland shore facilities are now making use of produced gas for glycol heat tracing of the facility piping systems and for all other onshore re- quirements as neede.d~. Gas engines will .power waterflood pumps on both MGS plat- forms and our Granite'Point platforms when installed in the future° ~ As. time goes on, we expect we willhaveoccasion to make certain adjustments to earlier indicated plans concerning Our platform operations. Even so, we.believe Our gas rate forecaststhat were presented as evidence at the public hearings on these four platforms earlier this year...remain reasonablyvalid, Certainly no more gas than had .been predicted will be producedand.quite likely a lesser.. volume of gas ultimatelywill.be, produced.from .the two fields, . Action towards inltiattng our secondary reC°verY plans around the. platforms in these two fields continues to move ahead in a' satisfactory manner, The joint ('Chakachatna-$AS GrouP) lease lane water injection .;well~,".MGS 1759'5 Well No. '.":i2~.. As in the final stages of completion Preparatory to..starting injections° Water- .flood. plans at Platform Dillon?are in. the finat '.' stages' and considerable equipment already is on order° ..The Granite ~oint "B" 18742.1NOo ..6, Well continues to receive water, injections totaling 226!,000..barrels So faro. /The injection rate has been.~ about 1800' BWPD at 4~50 psi, a little better, than. when injections first commenced but still lower than we. desire, Falloff tests to evaluate current injection results will be con. duoted soon, Thereafter, .we plan.~...to, raise injection pressure to the 5500-6000 psi .:range in an effort t~ improved:the 'injection rate° Cooperative injection, agreements .among the. operators have been :.d~a.wn up in readiness to con- sider putting full sCale"waterfloods into effect in'bO~'h fieldso :,,' , :,,, ' ,, :, , , ,, Mr~ Thomas Ro Marshallg Jr0 November 27, 1968 Page 3 We still hope that a market can be found for the remaining produced gas which is not being used for fuel. We remain alert for any possible change in the market outlooko Unless the situation changes markedly, however, we continue to foresee no immediate solution to this problem. The best resolution at this time that would depress future gas production rates seems to be the anticipated expansion of water injection operations at Middle Ground Shoal in early 1969 and successful completion of injectivity tests at Granite Point so that it will be feasible to conduct full scale waterfloods in both Middle Ground Shoal and Granite Point .Fields° We feel real progress is being made towards full scale waterflooding in both fields° We respectfully request your administrative approval to extend the captioned Conservation Orders for another 120-day period beyond January 6, 1969o cc~ Mr~ Homer Burrell Directore Oil and Gas Division Department of Natural Resources 3001 Porcupine Drive Anchorage, Alaska 99504 Yours very t_ruly, DIVISION OF O1~ AND GAS ANCHORAGE See Attached Mailing List STATE OF COLORADO ) ~ SS COUNTY OF DENVER ) R0 Bo GILES being first duly swo~n upon .oath deposes and says that he is . ,,~,~ ~, , ,~., , ~ngineering Group Supervisor~ employed by Pan American Petroleum'gorp'Orat~on, that the foregoin~ Application has been prepared under his supervision,,and direction, that he is familiar with the infor~ation contained in'the '~pPlication and that the matters and the things therein set forth are true and cOrrect to the best of' his knowledge and belief. ' ,,,,,,,,,,,m, ~z ,J ,,,, , · Subscribed and sworn to before me this 27th day of November, 1968o ' -Notary ubl~c = My Commission expires July 26, 1970. MAILING LIST , Mr0 Ao Ao W~nn (3) Shell Oil Company 430 7th Avenue Anchorage~ Alaska 99501 Mro Wo Go Christensen Mobil 0il Co~poration Po Oo Box 1743 Anchorage, Alaska 99501 Mr0 Ro Wo Yarbrough (3) Union, Oil Company of California 2805 Denali Street Anchorage, Alaska 99503 M~o Co Lo COX Sinclair Oil $ Gas Company 501 Lin=oln Tower Building Denver~ Colorado 80203 ,~. Mro Ho Wo Patterson Phillips Pe~role,um Company 1300 Security Life Building Denver~ Colorado 80202 Mro Fo Lo Franz Skelly Oil Company 1088 Lincoln Tower Building Denvere Colorado 80203 M~o Wo Po Whitmore Skelly Oil Company .P~ O~ BOx 1650 Tulsa~ Oklahoma 7~02 ,, ~ Ralph G~ C~ews Ancho~age~ Alaska 9950~ ~o Fo Ko ~e'bill Pan Americ~ Petroleum Corpora%ion Po Oo Box 779 Anuh~age~ Alaska 99501 Mro To Jo Files Pan American Petroleum Corpora~ion $e=urity Life Buildin~ Denver~ Colorado 80202 DE DIVISION OF O1~ AND GAS ANCH~AGE SHELL OIL COMPANY 430 7TFi AVENUE ANCHORAGE. ALASKA 99501 December 3, 1968 Mr. Thomas R. Marshall, Jr. Executive Secretary Alaska Oil and Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99504 Dear Mr. Marshall: Attached in accordance with your directive dated September 9, 1968, is an affidavit detailing Shell Oil Company's'efforts toward gas utilization at Middle Ground Shoal field made in the period following our previous affidavit of July 31, 1968. We request adminis- trative extension of F.,.g..D.a.a~..~i.9~~.~ without hearing for another 120 day period to be effective starting January 6, 1969. Very truly yours, Division Production Manager cc w/attachment: Atlantic Richfield Company Standard Oil Company of California Pan'American Petroleum Corporation, Denver (4) OiL AND OAS STATE OF ALASKA DEPARTMENT OF NATURAL RESOURCES Alaska Oil and Gas Conservation Committee Re: The beneficial use of gas produced as) a result of crude oil producing operations) in the Middle Ground Shoal Oil Field ) AFFIDAVIT OF SHELL OIL COMPANY REGARDING UTILIZATION OF CASINGHEAD GAS State of Alaska ) .) ss Third Judicial District ) and says: Conservation Order #32 Middle Ground Shoal Oil Field. May 10, 1968 ~s~ON O~ O~'L AND OAS Comes now A. A. Winn, being first duly sworn, and deposes 1. That he is Division Production Manager of Shell Oil Company, operator for a joint venture composed of Shell Oil Company, Standard Oil Company of California, and Atlantic Richfield Company; and that he makes this affidavit for the purpose of complying with Conservation Order #32 dated May 10, 1968. 2'. That in the ~period following our previous affidavit dated July 31, 1968, the following steps with regard to utilization of casing- head gas have been taken: (a) One additional gas fueled 1100 HP gas compressor was~placed in service on Platform C. (b) Two li00 HP gas fueled turbines to drive waterflo d injection pumps and an oxygen stripping tower using gas to remove oxygen from injection water are being installed/on equipment using gas as fuel, the waterflood will have he added conservation feature of minimizing gas-oil ratio~ in E, F and G pool production. -2- (c) One additional 700 HP A.C. Enginator on Platform A is being converted from diesel fuel to casinghead gas fuel. (d) Information relative to possible gas market has been supplied to requesting companies; however, no market has yet been found for the remaining gas not being used for fuel. (e) Waterflood equipment utilizing gas as fuel or as a stripping agent have been ordered for the Platform C water- flood as follows: Two 1100 HP gas fueled turbines, one oxygen stripping tower. (f) The following schedule summarizes equipment on Platforms A and C using casinghead gas as fuel: Platform A Steam Generators (converted from diesel fuel) 700 HP AC Enginators (converted from diesel fuel) 440 HP Gas Lift Compressor 1100 HP Gas Lift Compressors Platform C DIVISION OF OIL AND GAS ANCHORAGE 1968. 1 Steam Generators.(converted from diesel fuel) ~. 950 HP AC Enginators (converted from diesel fuel) 660 HP Gas Lift Compressor ll00 HP Gas Lift Compressor FURTHER AFFIANT sayeth not. ,j? /O° - SUBSCRIBED AND SWORN TO before me this · -- day of y,~/.~z>4~/, Notary Public in and for ~Z'~[a . August 30, 1971 .,; / 3001 PORCUPII~E DRIVE--I~N£HOI~E 99504 September 9, 1968 TO: COOK INLET GAS PRODUCERS Subject: Extension of Conservation Orders ,~32 and fi'61 for an Additional 120-Da~? Period Decision A rev: .... Conse'rva~ of the materials submitted in~'.acdordance with stioula~iOns contained in Conservation.i Orders f~32 and ~!'61~- as det~ii~d.iby our directive of ~u:Ly 1~, It .~'s' E~ie Conm~i. teee" s' dec~is'ion'' that" ~B.~. :6perators are activel~ utilize the gas which is being/flared. Directive Conservation. Orders :~32 and ~'6! will be extended for an additional i20-day oeriod from this date or until January 6, 1969. . .. Affidavits from Cook Inlet gas oroducers showing further efforts made to utilize casinghead gas will be due at least 30 days prior to the expiration of the 120-day extension period or by December 9, 1968. Thomas R. Marshall, Jr. Executive Secreta~-y. . Alaska Oil and Gas Conservation Committee Union Oil Company ~.r' ;alifornia 507 W. Northern Lights Blvd., Anchorage, Alaska 99503 Telephone (907) 277-1401 August 8, 1968 union R. W. Yarbrough District Operations Manager Alaska State Division of Mines & Minerals Department of Natural Resources 3001 Porcupire Road Anchorage, Alaska 99504 Attention Mr. Thomas R. Marshall, Ir. CASINGHEAD GAS UTILIZATION COOK INLET, ALASKA The attached data sheets (2) describe current and planned utilization of casinghead gas for properties operated by Union Oil Company of California in the McArthur River and Trading Bay Fields. This information is submitted in compliance with Conservation Order 61. Very truly yours, R. W. Ya~rough Attach. RWY:nnb RECEIVED DIVI~/ON OF ~/Nss & o. Union Oil Co, - Operator Benefic!al Use of Produced Gas ~ , . TRADING BAY UNIT Grayling Platform A. ~uipment Now Using Gas 2 Glycol boilers 1 Solar turbine driven generator B. Additions to be Made That Will Use Gas 1 Steam generator 2 Solar turbine driven' water flood pumps 1 Solar turbine driven crude oil pump 1 Solar turbine driven gas compressor 1 Gas lift compressor engine p01_l~ __Varden Plat form A. £_~ipment Now Using Gas None B. Additions to be Hade That Will Use Gas 3 Solar turbines (2 - for water flood, 1 - for generator) I Gas lift compressor engine , '1 Steam boiler ,2 Glycol heaters 1 Deoxygenator tower Kin___g Salmon Platform A. ~_qu.ipment Now Using Gas 700 }{P gas lift compressor engine B. Additions to be Made That ~;ili Use Gas · , 1 5000 HP turbin6 driven water flood pump 1 Steam generator 1 Hot water boiler 1Deoxygenator tower RECEIVED Di¥1$1ON' OF MINES & MINERALS ANCHORAGE · TRADING BAY UNIT (cont.) WEST FORELAND ONSHORE SITE A. ~uipment Now Using Gas S Heater treaters 3 Heaters 2 Generator units 2 Glycol boilers 4 CIPL pumps 2 tACT building heaters 2 Heaters ~or pump.motors Heat for construction camp B. Additions {o be Made That Will Use Gas 3 Heater treaters 2 Flow spli.tters 1 Generator unit 1 Glycol dehydrator 3 CIPL Solar turbines 2 Skim tank heaters' TRADING BAY PLATFORM A. Equioment NOw Using Gas 2 Glycol boilers 1Ca~ AC generator · B. Additions to be Made That Will Use Gas 1 Steam generator 1 Gas lift compressor engine R'EC'EIVED DIVI3ION OF MINES & MINERAL8 ANCHORAGE Mobil Oil Corporation August 7, 1968 700 "G" STREET ANCHORAGE, ALASKA 99501 Mr. Thomas R. Marshall, Jr. Executive Secretary Alaska Oil & Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99504 Gentlemen: In respOnse 'to Conservation Order #61, and your request in a letter dated July 15, 1968, Mobil Oil Corporation as Operator at the Granite Point Platform respectfully submits the following data. On the Mobil operated Granite Point Platform we are now installing one 800 KW gas turbine powered generator set which will utilize about 300 MCF/D fuel. The startup date of this generator will be in September 1968. Two compressors, one 1550 H.P. and one 350 H.P. with fuel require- ments of 300 MCF/D and 60 MCF/D respectively, have been purchased and are enroute to Granite Point at the present time. They will be placed on the platform in August and put in operation in September-October, 1968. Pilot waterflood tests are being conducted. If successful, we will purchase approximately 4-1100 H.P. gas turbine powered water injection pumps in late 1968 or early 1969 for a full scale waterflood program to be initiated in late 1969. At the Granite Point Shoresite two 500 H.P. gas engine driven shipping pumps utilizing 200 MCF/D were ordered in May, 1968 and will be in operation in September, 1968. The foregoing is in line with our testimony presented in hearings before the Conservation Committee on February 7, 1968 and May 8, 1968. However, the compressor horsepower being utilized is less than anticipated because of a higher-than-expected decline in oil and consequently, gas production. Very trulY yours, W. G. Christensen Area Superintendent CAChampion:cg RECEIVED DIVISION OF: MINES & MINERALS AN£.'.HO P..AGE SHELL OIL COMPANY 430 7th AVENUE ANCHORAGE. ALASKA 99501 JUL 3 1 196~ Mr. Thomas R. Marshall, Jr. Executive Secretary Alaska Oil and Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99504 Dear Mr. Marshall: Attached herewith in compliance with your directive dated July 15, 1968, is an affidavit detailing Shell Oil C'ompany's efforts made in the period following issuance of Conservation Order No. 32, Middle Ground Shoal Field. We request administrative extension of Conservation Order No. 32 without hearing for another 120 day period. Very truly yours, A. A. W inn Division Production Manager Attachment STATE OF ALASKA DEPARTMENT OF NATURAL RESOURCES Alaska Oil and Gas Conservation Committee Re: The beneficial use of gas produced as) a result of crude oil producing operations) in the Middle Ground Shoal Oil Field ) Conservation Order #32 Middle Ground Shoal Oil Field. May 10, 1968 AFFIDAVIT OF S~IELL OIL COMPANY REGARDING UTILIZATION OF CASINGHEAD GAS State of Alaska ) ) ss Third Judicial District ) Comes now A. A. Winn, being first duly sworn, and deposes and says: 1. That he is Division Production Manager of Shell Oil Company, operator for a joint venture composed of Shell Oil Company, Standard Oil Company of California, and Atlantic Richfield Company; and that he makes this affidavit for the purpose of complying with Conservation Order #32 dated May 10, 1968. 2. That in the period following the May 8, 1968 hearing the following steps with regard to utilization of casinghead gas have been taken: (a) One additional 1100 HP gas lift compressor using casinghead gas for fuel was placed in service on Platform A. (b) Two 950 HP AC Enginators on Platform C were converted from diesel fuel to casinghead gas fuel. (c) One additional gas fueled 1100 HP gas compressor is in the process of being installed on Platform C. (d) Plans are completed to install two 1100 HP gas turbines in operation before the end of 1968 on Platform A to drive waterflood injection pumps. D~V~S~O~ OF' M~NES & MINE. RAb~ ANCHORAGE: (e) Plans are completed to start shipping casinghead gas to shore to replace purchased fuel gas at our onshore treating facilities. (f) All produced gas is now being circulated in gas lift operations. (g) No market has yet been found for the remaining produced gas not being used for fuel. (h) The following schedule summarizes equipment on Platforms A and C using casinghead gas as fuel: Platform A 2 Steam Generators (converted from diesel fuel) 2 700 HP AC Enginators (converted from diesel fuel) 1 440 HP Gas Lift Compressor 2 llO0 HP Gas Lift Compressors Platform C 2 Steam Generators 2 950 HP AC Enginators (converted from diesel fuel) 1 660 HP Gas Lift Compressor 1 ll00 HP Gas Lift Compressor (not in service yet) FURTHER AFFIANT sayeth not. 1968. SUBSCRIBED AND SWORN TO before me this day of ~g~/ . RE, CEIVED DIVISION OF MINES & MINERALS ANCHORAGE PAN AMEI CAN PETROLEUM CO I TION SECURITY LIFE BUILDING DENVER,. COLORADO 80202 July 24, 1968 File: AMR-1916-986oSll Re: Showing of Efforts Made to Utilize Casinghead Gas, Middle Ground Shoal and G~anite Point Fields Mro Thomas Ro Marshall, Jro (3) Executive Secretary Alaska Oil and Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99504 Dear Mr~ Marshall~ Conservation 0vder No' 32,. Middle Ground Shoal Field, and Conservation Order No~ 61, Granite Point, McArthur River.and Trading 'Bay Fields, each dated May 10~ 1968, "will be effective for 120 days (or until September 9, 1968) and may be extended in successive 120 day periods upon a showing by each Operator to the satisfaction of the Committee that the Operator is actively pursuing a program to beneficially utilize the gas which is being flaredon By your direc- tive dated July 15, 1968, operators have been asked to submit an affidavit before August 9~ 1@68~ detailing thei~~ effo~s and results. Pan American~ an Operator in the Middle Ground Shoal and Granite Point Fields, on behalf of its par%~ers in the Chakachatna Group, Phillips Petroleum Company~ Skelly Oil Company and Sinclair Oil and Gas Company, herewith submits the requested affidavit and makes AppliCation for Conservation Orders Noo 32 and 61 to be extended administratively .without a hearing for another 120 day . period~ As support of the affidavit and Applicant's request for a 120 day extension of the Orders, Pan American states that it continues to pursue a program which will provide as'many additional beneficial uses .of the gas, which has been beneficially used to produce the most valuable prOdUct, the crude oil itself, as is feasible: At MGS Platform Baker, we have converted two AC and two DC power generators to gas and also a steam generator, The gas lif~ com- pressor and a glycol ~egenera~or (not included in earlie~ forecasts) use produced gas for fuelo Nine Kobe triplex gas engines (no~ eight as we had forecast at the January 16, 1968, hearing) have been in- stalled at Platform Dillon. A steam generator and ~wo AC generators will be converted in the nea~ future at Dillon° The drilling program at Dillon is very near completion so i~ is not practical ~o conver~ the DC generators which power the drilling rig° , File ~ AMR~1916=986 o 51i July 2q~ 1968 Page 2 DIVISION OF M~NES & MINERALS ANCHORAGE Plans are underway to make use of produced gas at our East Foreland facilities for glycol heat tracing of 'the facility piping systems and all other fuel requirements will be supplied where practical° Gas engines will power waterflood pumps on both MGS platforms when installed in the futureo At Granite Point Platforms Anna and Bruce, conversions of the power generators ~hat were to be completed by the February 7, 1968, hearing were not accomplished at that time because Line "B" to shore became plugged with ice which required that we revamp our timing of' these conversions~ After Line "B" became thawed, the Line was found parted° Repairs have been completed and the platform generators necessary to serve future producing operations and the small drilling rigs will be converted to fuel gas° (Plans are under consideration to remove the big drilling rigs from the Chakachatna platforms in both fields in the near future when platform well drilling programs are completed)° At ou.~ Granite Point platforms, two gas turbines use produced gas for fuel and one steam generator has been converted to gas° Another steam gen- erator will be converted soon~ .Since ~ne February 7 hearing, we have installed two Kobe tmiplex gas powered engines and plan ten more such engine installations° Although as time goes on we find the need to make certain adjustments to earlier indicated plans concerning our platform operations~ we believe our gas rate forecasts that were presented as evidence .at the hearings on ~hese foum platforms eamlier ~his year remain reasonably valido Certainly no more gas than had been predicted will be produced and quite likely a lesser volume of gas ultimately will be produced from the two fields° Action towards initiating our secondary recovery plans around the plat~ forms in Zhese two fields is moving, , forward at satisfactory rates° The join't (ChakachaZna~SAS Group) lease line wa~em injection well~ MGS 17595 Well N'o~ 12~ is drilling below 7000 feet~ Management approvals are now b,,~i,ng solicited covering waterflood plans at Platform Dillon° The Granite Point "B" 187~2 No0 ~ well continues to receive water, injections totalin,~ 89~0 barrels as of mid-July0 The injection mate has been about' 1300 BWPD a,t ~,000 psi,, a lowe,r rate than we desire° ?mofilm work indicate~ no~ a.~l sand members are accepting watero An expense, ye workover is underway to improve the in. jec~£on profile and rate° Cooperative tnjec- "tion agreements aeons the opeTatoTs a~e bein~ finalized to put full scale wa~erfloods in~o effe=~ in bo~h fteld~0 We s~ill hope ~ha~ a ma~ke~ can be found for =he ~emainin~ 9~oduced gas which is not being used for fuel and we will continue out efforts in ~hts '~egard0 However, unless the situation changes maTkedly, we foresee no immediate solution to ~his problem.° The progress we are making toward wa%erflood opera~ions in Middle G~ound Shoal Field will, on the otheT hand, depress future gas production rates by reason of the operators having repressu~ed ~he reservoirs in %his field° We are evaluatin~ wa'terflood operations at Granite Point and, if the ~ests a~e successful in =ha~ field, we will accomplish the same obj.e.c~lve of depressing future" gas ,p~oduct ion File~ AMR~lg16-985 o 511 July 24, 1968 Page 3 We ~espectfully request youn administrative approval to extend the captioned Conservation O~ders for another 120 day periodo Mro James Ac Williams, Director Division of Mines and Minerals Box 5~300 College, Alaska 99701 See Attached Mailing List STATE OF COLORADO ) : SS COUNTY OF DENVER ) Yours very truly, R C, E I V ,F_. D DIVISION OF MINES & MINERALS ANCHORAGE R0 B0 GILES being first duly sworn upon oath deposes and says that he is Engineering Group Supervisor, employed by Pan ,American Petroleum Corp°ration, that the fonegoing Application, has been prepared under his supervislon and direction, that he is familiar with the information contained in the Appii-, cation and that the matters and the things therein set forth are true, and correct to the best of his knowledge and belief° Subscribed,and sworn to before me this 24th day of July~ 19680 Notary Public My Commission expires July 26, 19700 MAILING LIST Mro Ao Ao Winn (3) Shell Oil Company ~30 7th Avenue Anchorage, Alaska 99501 Mr° Wo Go Christensen Mobil Oil Corporation Po Oo Box 173q Anchorage, Alaska 99501 Mro R~ W0 Yarbrough (3) Union Oil Company of California 2805 Denali Street Anchorage, Alaska g9503 Mro Co Lo Cox Sinclair Oil and Gas Company 501 Lincoln Tower Building Denver~ Colorado 80205 Mro Ho W~ Patterson Phillips Petroleum Company 1300 Security Life Building Denver, Colorado 80202 Mr,o Fo Lo F~anz Skelly Oil Company 1088 Lincoln Tower Building Denver, Colorado 80203 Mro W0 Po Whltmo~e Skelly Oil Company Po Oo Box 1650 Tulsa, Oklahoma 7~102 Mr° Ralph G~ C~ews Suite 600~ ~25 "$" S,t~eet Anchorage ~ Alaska ' 99501 Mro Fo K0 Krebill Pan American Petroleum Corporation Po Oo Box 779 Anchorage, Alaska 99501 ANCHORAGE Mr° To Jo Files, Pan American Pe~,roleum Corporation Security Life Building Denver~ Colorado 80202 OIVISIO# Of &~I~ES AND A~INE£ALS V/ALTER J. HICKEL, GL~VERIVOR 3001 PO£CUPINE D£1VE--ANCHO£ASE 9~$04 July 15, 1968 TO: COOK INLET GAS PRODUCERS Showing of Efforts Made to Utilize Casinghead Gas The following procedure will be used by the Oil and Gas Conservation Committee to check on the ree. uiremant for a.i:'/'~showing by the operators of the Middle Ground Shoal, Granite Point= Trading Bay and McArthur River Fields that ~/ satisfac'cory effort is.~ilbe'ing ~ade to seek benefi- cial utilization of~, the casinghead gas noW':b~ing flared: operators ~bmit at to'the ex~ Conservat ion Order ~ s , "~f.~f idav. i'C/~.'~de :ling~ orcs and resu ~?:' ?' ?:?:~ :':.~"~' ~ ~ ........... ~hese O=de:s were:effective~ on ~ay lO, ~968, 'Che~efo~e , an affidavit wil~ bY...Augusc. 9,: 1968. .:crulY yours, Thomas R, ~rshall, Jr. Executive Secretary Alaska Oil and Gas Conservation Co~i~tee Letter dated July 15, 1968, to Cook Inlet Gas Producers - Subject: Showing of Efforts Made to Utilize Casinghead Gas - sent to the following: b~o W. G. Christensen Mobil Oil Corp. P. O. Box 1734 Anchorage, Alaska 99501 Mr. Robert' T. Anderson Union Oil Co. of California 2805 Denali St. Anchorage, Alaska 99503 Mr. Robert Hartig Assistant Attorney General 360 K St., Suite 105 Anchorage, Alaska 99501 Mr. R. D. Allen Shell Oil Company 430 7th Avenue Anchorage, Alaska 99501 Mr. Tom Files, Division Attorney Pan American Petroleum Corp. Security Life Bldg. Denver, Colorado 80202 Mr. Floyd K. Krebill Pan American PetroleumCorp. Box 779 Anchorage, Alaska 99501 STATE OF ALASKA DEPARTMENT OF NATURAL RESOURCES Alaska Oil and Gas Conservation Committee Re: The beneficial use of gas produced as a result of crude oil producing operations in the Middle Ground Shoal Oil Field ) Conservation Order #32 ) Middle Ground Shoal ) Oil Field. May 10, 1968 AFFIDAVIT OF SHELL OIL COMPANY REGARDING UTILIZATION OF CASINGHEAD GAS State of Alaska ) ) ss Third Judicial District ) and says: Comes now R. L. Warden, being first duly sworn, and deposes DIVISION OF OI/.AND GAS 1. That he is Division Production Manager of Shell Oil Company, operator for a joint venture composed of Shell Oil Company, Standard Oil Company of California, and Atlantic Richfield Company; and that he makes this affidavit for the purpose of complying with Conservation Order #32 dated May 10, 1968. 2. That in the period following our previous affidavit dated December 3, 1968, the following steps with regard to conservation and utilization of casinghead gas have been taken: ~'(a) Two ll00 HP gas fueled turbines to drive waterflood injection pumps and an oxygen stripping tower using gas to remove oxygen from injection water have been placed in service on Platform A. (b) Water injection has been started in two additional wells (total three) on Platform A. Combined injection rate exceeds Platform A reservoir withdrawals; thus assuring reservoir pressures above saturation pressure for the E, F and G pool. This has the conservation effect of minimizing produced gas-oil ratios from this pool. -2- 1969. (c) One 700 HP A.C. Enginator on Platform A has been converted from diesel fuel to casinghead gas fuel. (d) Twoll00 HP gas fueled turbines and an oxygen stripping tower are being installed on Platform C for waterflood service. (e) The following schedule summarizes equipment on Platforms A and C using casinghead gas as fuel: Platform A Platform C ~2 vl 1 Steam Generators (converted from diesel fuel) 700 HP AC Enginators (converted from diesel fuel) 440 HP Gas Lift Compressor ll00 HP Gas Lift Compressors 1100 HP Turbines Oxygen Stripping Tower ~ Steam Generators ,(converted 'from diesel fuel) 950 HP AC Enginators (converted from diesel fuel) 660 HP.Gas Lift Compressor 1100 HP Gas Lift Compressor FURTHER AFFIANT sayeth not. SUBSCRIBED AND SWORN TO before me this day of ~ MAR 2 ]969 DIVISION OF OU. AND GA~ ANCHORAGE Notary Public in and for Alaska Cornrnisslon Explr~' August 30, 197l 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 Div. of~ ,, ALASKA OIL AND C,&S CO}~ISSION H~ARING, FILE No. 61 Anchorage, Alaska May 8, 1968 R & R COURT REPORTERS eSS WEST I~IGHTH AVENUE -- SUITE B 277-4713 ANCHORAGE, ALAgKA ,e 10 11 12 14 15 16 17 18 2o 21 22 23 24 25 PROCEEDINGS We will call this hearing to order;" it's 10:30. I~IR. WILLIAHS: /This is a continuation of the hearing on Conservation File No. 61, relative to the use of gas resulting from oil production at Granite Point, McArthur and Trading Bay Fields. Legal notice of this continuation was published April 10 1968, Interested parties were properly notified and advised. We have the same full Committee here; myself, Hr. Marshall, Hr. Kugle:, Hr. Vonder Ahe, Hr. Wallington, and technical advisor Hr. Gilbreth and legal advisor, Hr. Hartig. As in. the preceding hearing nesses will identify themselves and be qualified if necessary, ' and so forth. Will you please proceed? HR. ANDERSON: Hr. Chairman, memb.ers of the Committee and advisors, I am Robert Anderson, Alaska District Land Manager for Union Oil Company of California. Union Oil ComPany is unit operator for the Trading Bay Unit for Union, Marathon, Atlantic, Pan Am, Phillips, Sinclair, Skelly, and'Standard, under which 'the McArthur'' .' River [teld is being developed; and is operator for , Marathon, TeXaco and Superior of the Trading Bay F£eld has no additional testimony to present at this hearing. In previous testimony on February ?th'this year, a schedule of facility conversions for additional utilization of otlwell gas was presented for both the McArthur River and the Trading Bay Fields. These conversions are being made as presented There has been no change in the reserves or the development plan indicated in the previous testimony. Union is endeavoring to R COURT REPORTERS WIEST "rI~HTH AVENUi~ ,--. ~UITI~ · 277-4715 ANCHORAGE, A~S~ 10 11 12 14 15 16 17 18 19 2O 21 22 23 24 25 maximize the utilization and' the marketability of oilwell gas produced in the Cook Inlet. We are evaluating extraction and exportation of liquified products, and are currently explorin§ avenues for the disposition of these products fromthe West side of the Inlet. We have completed an ex~. ensive engineering study. confirmed by an independent consultant~ that concludes an oilwell gas gathering system for the Cook Inlet which would deliver oil- welI gas to the East side cannot be JUstified at the present time with the available oilwell gas supply. Union has tendered a firm Proposal for the d~sposition of oilwell.§as produced to the Easti side of the Inlet; ~although our proposal provides for no immediate compe, nsation, in the event of a third-party sale can be consummated,, the producers wil1 re- ceive two cents per mcr plus further remuneration. If this §as is processed, additional revenue will be generated and paid' to the producers. This proposal is' currently under~.con~.~deration by th'e respective producers. Testimony has previously been given to the effect that the oilwell gas 'is beneficially used to produce oil from the for- mation int° and up the well bore. We, in conjunction with other members of the industry~ 'are currently in search of additional utilization and markets for this oilWell gas. ~hank you. I would like to take this opportunity to introd~ce Mobil ts'witness for the south portion of the Granite Point Field, Mr.' Charles Champion. He has'been preV~o'uSl¥ '~'.~ qualified as a wit- R COURT REPORTERS WE~T EIGHTH AVENUE -- SUITE,lB 277-4713 ANCHORAGE, AL.ABICA 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 I have a very brief statement to make. ~'Our testimony at the previOus hearing on Februar~ 7th, 1968, Mobil Oil Corporation as operator for itself and Union Oil ..... Company of California stated that we were making some secondary use' of the produced gas as fuel, and ~ould increase the utilization Of the produced gas. We are proceeding with these plans. We have ordered the fol- lowing equipment which should be in operation by July of 1968: a 750 KW §enerator set; a 350 h.p. reciprocal compressor; and in addition we have ordered just this week a 1550 h.p. reciprocating compressor which is scheduled to be in operation in September, 1968. The prime movers for all this equipment will utilize pro- duced gas as fuel. ~e feel that our testimony at the previous hearing adequately covered our position re- garding gas usage in th~ Granite Point Field, and we have nothing further to add at this time. MR, CREWS: As in the previous hearing this mo~nin§. -- I'm Ralph Crews, a local Anchorage attorney appearing on behalf of Pan American. Mr. Oscar Swan wt~.~Zesen~ Pan American's portion of this hearing. MR. SWAN: Gentlemen, we have the same witness, Mr. ness at the hearing on February 7th. Mr. Champion. CHARLES CHAMPION having been first duly sworn, testified as follows: A ~=~J~_ Div'. of M & Mnrls ~~ , -- i i i i - , , R GOURT REPORTERS WEBT EIGHTH AVENUE -- BUITE B 277.471:~ ANCHORAGE, At. ASKA 1 2 3 4 5 6 7 8 9 lO 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Giles, who testified at the previous hearing on this matter,, and he has also this morning, as you know, testified in another matter If his testimony in that hearing can be considered a part of the record in this, we have very little to add. .- I do have one thing that perhaps we overlooked in the previous hearing that I would like' to inquire about but that's all. May his testimony at the previou...~....hea~ing this morning be made part of the record here? MR. WILLIAMS: 'r If there are no .objections we will accep Mr. Giles' testimony, in the previous hearing this morning as part of the proceedings in this hearing. MR. SWAN:. Mr. Giles,' in the previous hearing with respect to Middle Ground Shoal ,you teStified that -- MR. WILLIAMS: Just a minute, Mr. swan. i MR. SWAN: in this one, is he? · , Oh, e xcu se me, that ' s right. BART GILES Hels not sworn having first been duly sworn, testified as follows on examinatiOn BY MR. SWAN: .. ', In the. previous "hearing t Mr.. Giles, you testified that ' piPelineS were available', i believe, to 'get all of the produced gas./to 'the shore and compressor facilities installed to get ,a substantial quantity of the gas both I at Middle ,Ground and at Granite Point to shore, Over- looking or ignoring for a minute the' investment in pipelines, compressors, and so forth' is there an addi- ., R COURT REPORTERS WEST EIGHTH AVENUE ~ BUITE 8 277-4713 ANCHORAGE, ALASKA · 10 11 12 14 15 16 17 ¸18 19 20 21 22 23 24 25 A -6 - tional operating cost merely to operate the compressors and pipelines and .get this gas to shore? Yes, there is, and of course we have no firm feeling Q as to what these costs would be, but would estimate them to be several cents per mcr for the operation and maintenance of the compression equipment to put this gas to shore. Now I'll ask you the same question I asked you. in the Middle Ground Shoal hearing.. Is there anything else A you feel should be added, to your preVious testimony? No, sir, I do' not believe there is. t 'MR. SWAN: Well, chat concludes o.ur case. Our witness- es are availa.ble'"'""'for any questions the Committee might have MR. WILLIAMS: ,Any questions from the Committee? I" At this time? Mr. Gilbreth? MR.. GILBRETH: . I'd like to ask Mr. Anderson, Mr l Cham- pion and Mr. Giles the question that the estimates of future gas production and volumes to be flared that were presented in the prior portion of this hearing, do yOu see any teas'on~ at this stage to change any of those estimates?Any of the companies? : MR. ANDERSON: This is Bob Anderson with Union. No, we see no reason to change those prior estimates' at all. MR. GILES: Bart Giles for Pan American. We s~e no' Div'. of'M& Mnrls ~.-,-~-' '.' reason to alter our Previous' estimates'. ' · MR. ¢ItAI~ION: Charles Cii~pion with Mobil Oil. · , R & R', COURT REPORTERS' 82B WECBT I~I(~HTH AVENUI~ ~ BUITI~ B ~-,77-47 ! 3 . , ANCHORAGE. ALASKA , ~ I thin' 10 11 12 13 14 15 16 17 18 19 22 23 24 25 we '11 go alon§ with that. We see no reason to alter our previous estimates. -7- there -- at this ti.me to MR. GILBRETH: I'd like to -- I'm sorry, Mr. Giles, s on point I didn't fully understand. Does Pan American now have a compressor installed such that it could push all the excess gas to shore if a market developed? MR. GILES: Yes, we're in that position. Of course, technically today we're not because we have a line that's not thawed yet on the floor Of the Inlet, but we expect this to thaw by natural means soon, and then we would be .in a position to do just what you asked, . MR. C!LBRETH:. I see, and Mr. Ch.ampion, does Mobil. have facilities that 'the excess produced gas' now could be sent to. ~hore if a market developed? ; , , , MR. CHAMPION: With the equipment that we are now in' stalling we will have the capacity in September. MR. GILBRETH: That's all i have, Mr. Williams. MR. WILLIAMS: Thank you. .Any further' questions?from the Committee? (.Pause) Are there any questions or statements , . from the audience? (Pause) Do you have a closing statement? MR. SWAN: Yes, sir. oscar swan Of pan American, Gentlemen, we feel that --,now .i'm directing my remarks to the Granite' Point.Field. We feel that the operators in that field I have shown you that they are now making the maximum beneficial use of the produced gas, and th'at'all, of ,the gas' produced is necessary R & R COURT REPORTERS BiB WEBT EIGHTH AVENUE -- BUIT~ B ~277-4713 ANCHORAGE, ALASKA . 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 to the production of oil, and that we are continuing diligent efforts to use as much of the gas as possible and to develop a market for that part that can't be used; and we fee! that. the Committee should enter an Order here, just as we requested in Middle Ground Shoal,finding that beneficial use is being made to the fullest extent now possible, and that,any gas over and above that which is flared is a necessary incident to efficient produc- tion of oil from this reservoir. MR. WILLIAMS: I think we'll recess for just a moment. (At 10:45 a.m. proceedings were recessed briefly.)' (ON THE REGORD) MR.WILLIAMS: Back on the record now. The Committee has nothing further. If a continuatiOn is deemed necessary we'll certainly notify you at the earliest date. We will come out with an Order if it's deeme~ advisable and necessary. We request that again, as Jn the other hearing, that the Committee be kept closely informed on developments, marketing negotiations, relative to the problem at hand.. The hearing is adjourned. , ---',END OF PROCEEDINGS --- R COURT REPORTERS W~,~T I~IG~HTH AVENUE. -- BUITE. B ANCHORAGE, ALASKA NOTICE OF ~'~ ...... ,vt .... ~ o~ uo:,ll.,u~.,o~ O?.uBLIC HEARING STAT£ OF ALASPL!\ DEP2~RTi'[EXT OF 'XATUi~h\L DIVIS!OX OF .".JIb'ES AND i'ilNEP~iLS Alaska Oil and Gas Conservation Committee Conservation File Re: l{eneficiai use of gas produced as the result of crude oil producing operations at the Granite Point, ~'fcArthur River, and Trading Bay Fields. The Oil and Gas Conservation Committee has been advised of certain marketing developments which warrant a further continuance of this hearing. Therefore, the public hearing scheduled for April 10, 1968, has been cancelled and will be reconvened on May 8, 1968, at 10:30 a.m. in the Z. J. Loussac Library, Fifth Avenue and F Street, Anchorage, Alaska. ' Thomas :. ~{arshall~ Jr. Executive Secretary Alaska Oil and Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99504 Publish April 10, 1968 ['riPRA~15 KAS~4 ERSI5Y RX''' PDB WUX BARTLESVlLL'E Of<LA I 45DP CST THO,~AS R MARSHALL JFi EXECUTIVE SECRETARY ALASKA OIL AND GAS CONSERVATION COMMITTEE ~[.!iU<~' ~i!! 50~1 PRRCUPINE DRIVE ANCHORAGE ALASKA OUR STUDIES ON U]TiLIZAI!ON OF MIDDLE GROUND SHOAL AND GRANITE POINT OIL WELL GAS HAVE NOT REVEALED ANY o,-,n , a,~FI'fABLE BASIS FOR PHILLIPS IO PURCHASE SAID GAS . UNDER OUR NOS% FAVORABLE CASE~ WE COULD.HAVE UIILIZED ALL '~HE GAS UNIIL SOMETIME DURING THE SECOND HALF OF 19~. UNION OFFER PROMISES AN EARLY PURCHASE OF THE GAS SINCE ONLY PIPELINtNG AND COPRESSION ARE REQUIRED '"'1 W E i E AND USES FOR THE GAS WILL SE IMMEDIATa_Y AVAILBLE. APPRECiA LE ROY CULBERTSON'PHiLLIPS PEIROLEUM COANPNY. YOUR INTEREST IN OUR S'][UDIES AND YOUR CONSIDERATION DURING 'file TINE REQUIRED )70 ANALYZE 'flS-SITIUIA~O~ ~ ~..~,,,,~.~_ ,,.~. ~. RECEIVED APR 2 DIVISION OF MINES & MINEP. A~ FORM SA- I B 125.5M 8/67 M~EMORANDUM TO: l'- FROM: State of Alaska DATE : SUBJECT: 1968 The 8trJehed trmerl4,t :to, betua mt: to you m~ ~ '~, :p~e ~va~ file. 1968 FINDING AND NOTICE OF CONTINUANCE OF PUBLIC HEARING STATE OF ALASKA DEPARTMENT OF NATURAL RESOURCES DIVISION OF MINES AND MINERALS Alaska Oil and Gas Conservation Committee March 7, 1968 Conservation File #61 Re: Beneficial use of gas produced as the result of crude oil producing operations at the Granite Point, McArthur River, and Trading Bay Fields. Tes'timony at the February 7, 1968, hearing and from a previous hearing indicated that marketing studies would be completed during March, 1968, after which negotiation for purchase of gas in the Granite Point Field would begin. The testimony at the February 7, 1968, hearing also indicated that Union Oil Company of California was continuing the investigation into the gathering and use of gas from the Trading Bay and McArthur River Fields. In order for the Con~nittee to benefit from these studies, without which it appears that a fair and equitable decision on this hearing may not be rendered, and to benefit from any other studies or testimony which may have a bearing on this matter, the hearings on Conservation File #61 are hereby continued and will be reconvened on April 10, 1968, at 10:30 a.m. in the Z. J. Loussac Library, Fifth Avenue and F Street, Anchorage, Alaska. Thomas R. Marshall, Jr. Executive Secretary Alaska Oil and Gas Conservation Committee 3001 PorcupineDrive Anchorage, Alaska 99504 Publish March 11, 1968 FI~XTDING A~ NOTICE OF CONTIknJANCE OF PUBLIC HEARING STATE OF ALASI<_A DEPARTMEb!T OF NATUPIAL RESOURCES DIVISION OF MINES AND MINERALS Alaska Oil and Gas Conservation Committee March 7, 1968 Conservation File f/61 Re: Beneficial use of gas produced as the result of crude oil producing operations at the Granite Point, McArthur River, and Trading Bay Fields. Testimony at the February 7, 1968, hearing and from a previous hearing indicated that marketing studies would be completed during March, 1968, after which negotiation for purchase of gas in the Granite Point Field would begin.. The testimony at the February 7, 1968, hearing also indicated that Union Oil Company of California was continuing the investigation into the gathering and use of gas from the Trading Bay and McArthur River Fields. In order for the Comnittee to benefit from these studies, without which it appears that a fair and equitable decision on this hearing may not be rendered, and to benefit from any other studies or testimony which'may have a bearing on this matter, the hearings on Conservation File #61 are hereby continued and will be reconvened on April 10, 1968, at 10:30 a.m. in the Z. J. Loussac Library, Fifth Avenue and F Street, Anchorage, Alaska. Publish March 11, 1968 Thomas R; Marshall, Jr. Executive Secretary Alaska Oil and Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99504 STATE OF AI~kSKA DEP,~,X~,~NT OF NATUILLL RESOURCES DIVISION OF I,'[[NES A~-D MINE?~,LS Alaska Oil and Gas Conservation Committee March 7, 1968 Conservation File WAIVER OF PERSONAL SEPJ~ICE The undersigned waives personal service of the notice appearing above under Section 31.05.050 of the Alaska Statutes. For (Company) RECEIVED hlAR ~ ~ 1968 DIVISION OF I~INE$ & MINERAI~ ANCHORAGE Wilson Laird - 2 - February 28, i968 r~u~y not have close parallels to those in the State of North Dakota, but I would certainly appreciate any help you could give us. Be assured that your help is very important to our S~ate. With personal regards, ~ · .~,.. ~.~ / Thomas Ri Marshall, Jr. Petroleum Supervisor TP~.~: may I~r. Ja~aes L. Car!ton~ Jr~ State 011 ~nd C-.aG Su'~a!~Tisor . ESC Building Casper., ~Yo~hg 82691 .... Dear Jim:' Our Stzta is ccncaz~nad a3oout thc =.! ..... g of casinghead~=~',- in cur offshore Cook Vn!et oil '?~ ~- _. f z=~a~. The total volume flared from all p!atfoz~s is p=esent!y 5~000~000-" cubic f~at of g~s~ - par day and rai~'~,'ly. ~e estimate that 177 h, zl!mon cubic faa~ ~.i!! u!_~m.~e_y flared' from our presently discovered fields if a ~rket is not found. W,a have held several ~-~a~t-~ina=n,~" = "~'~' ~" ....... l~'~'~so and a~'e. currently ~.,:aiting for ~om~ promised mar?a~:~-.~, d~,t~ to dr=ve!cp before arriving a~ a decision a's to ~liether or not to order the flaring to cease. Our legal=~d'~_~c_~ .... has provided us ~;ith legal revig?~s ~o2 court cases c.~--~'~ litigation on ,"e~ta'~r Texas Ra'~'~'~oad Commission decisions and also ,aha !itiga~o~ ,over flaring in the %hr-zla~y Field in Colorado. .... ne_pun! in determining the .... ==~,~.,.a~$oz~y~u~,~'' ~',o~icv~,_ ~ undar the circmustancas ~.a face offshora Cook I~et %~g'ters ~here gransportation costs are ~treme!y ~"~ the domastic gas ~zhet nceds ara completely filled: ~d Spacifica!!y~ I w~uld graatl7 appreciate any opinions yon may care to make on your ~,~.~ ~'~,'~?~-'~ traat:m~mt of flared gas in remote areas For inst~lce~ ho%~; do you lhand!e the .flaring of casinghead gas from a 'ne~g!y discovered field having a ,gas-oil ratio in the .range of 500-1 ~nere the gas ~nas are r~nny miles a~ay and reset;es ara not defined? %Xnis is not the first ti~e i have bou~barded you ~ith questions. aid you have rendered in past years has been valuable. Som~ situations i'.':r,, Ca~Iton --2- ..... u~d cartai,~!v aoprecia,.ta any "e~, you cc. xl,i kivc us. ~:a aosured i look foz~:~z'.rd to visitins ~-~ith you a{~,ain thc; next l,:yoning. (- (- Co ~,~.issiomer i~eme fee -2- February 29, !D62 This is not. the first time I have. bombarded you with questions. The aid you have rendered i~ past years [las been valuate. Some situations ~ay not have close parallels to those in the State of Loutstana~ but I would certainly appreciate gnI! help you could give us. Be assured that your help is very important to our State. With personal regards, Thomas R. Marshall, Jr; Petroleum Supervisor ~.~r. Rm~sey -2- February 29, 1968 This is not the first time I have bon-barded your organization with questions. The aid rendered in past years has been valuable. Some situations may not have close parallels to those in the ~tate of Texas, but I wo~ld certainly .pppr~eiata any h~lp you could ~ive us. Be assured that your help is very important to our State. Very truly yours, ..'i. f .,' Thomas R, ~Marshal!, Jr. Petroleum Supervisor T~M:may _. FOR~ 49'7 5- 65 SECURITY LIFE BUILDING DENVER~ COLORADO 80202 February 14, i968 File: AMR-468-986.511 Re: Granite Point Gas Disposition Hearing Mr. Thomas R. Marshall, Jr. Petroleum Supervisor Alaska Oil & Gas Conservation Committee 3001,~Porcupine Drive Anchorage, Alaska 99504 Dear Tom: You ~equested during the gas disposition hearing in Anchorage a week ago today that each operator furnish you a typical analysis of the produced gas from its oil producing properties that were the subject of that hearing.' Enclosed is the requested analysis for our Granite Point producing properties. We consider this gas. analysis most typical of our operations at Granite Point because it is a composite of the gas from all of our Granite Point wells as received from the underwater pipeline at the East Foreland onshore facility. Yours very truly, Attachment RECEIVED FEB 1 ~ ~'-""~ ANCHORAGE L i' 0 A,q~RiCA~; P~TR~LEbY C~R?C TiON' R~SEA?,CH DE P.~.R T,q E NT GAS CH?,OM~TCGRAPHY ANALYSIS CG)!PAbI~/ PAN AMERICAN CCLLECTED FRO~ PIPELINE AT SHOR. E .. · -.'. L.' ~,,': ~ELL NGo '"';":" "-'.~;..-..'-:' .'.i CG. URT'Y KE,NA [ BOROUGH COhTAI,NER NG, SS'ZO - '",:':'~... - .......?":'. ....STR~TUi~, YIELDING SAMPLE "' ;~ESSbRE 24 IEP, PERATURE .52 DEG F . . CCLL~C[6~ ~ J.G. MAY DATE COLLECTEO 09-16-67 TR~S,V ITT EE BY F.K K~' ' .... · ~EBILL .... :"':'"::':'"' .... .... DATE TRANS,~ITTED 0~26-67 ' "'-': .... '"' L~ ~C. F-I773~ ' '."::"-:"' '""-:' .FILE.NO, 'FKK-1255-220.2 ...-.'.'.':.~.';.:. 8~TE RECEIVED 10'i8'"67' '' ' '' '' '' ': ~ '' '' ''''' ' ' '':''/:'' :'''':''': ' '~' .... DATE REPORTED' 10-1~67 '" ~E~PA~S ~ETERRIRE CC~PGSITION O~ GAS AT EA'ST FCRELAND FAC.~lg,5 MI.FROM WELLS . . .: ,:.. ~'.<'.:.~':.?::.:...., ....:-.:: -...::.~.~.:..',.:?.~:::..-.f.'.':;-,-.:~.T.:)~:.?%,')';"; -:'::?::~;~:~F::~:.:':-':~::'":;:~::):::,:~T~::.:-.%;.::':?:]:?:.~ .......... .- - ~:..?:,- ~-.: . -- .~. "'":""~'""":"~":'"'~:~?'~':'~:'?'???'~:':?" '"~ ...... ":'~ :V'~L'6' E~C".E"~T X'~"~AE~?. ~.~:~:~]~:~:,:..~:~ ~.~::.:~';~:~ O.~ CARSON DIOXIDE ' ' OCT ~5 19~7 · .- :.?L:.::r=w.-.:..%?.:.~:/:' ~ ?:::-;,:.???::?:.~':??:~:??.:.;.:::?~ .,?:. o, o o · ~ Y D ~ OG ER S U L F I D E .... .? . '.::.:.:.O.Z~p- HEPT,-,NES'AhD.H~ VIE '.. :.: .,:..:.::'; ..:...:..,..,,. :....'.:;"::.',:: :..,.:.:. . .', .'..'.'.':'.'..' ::.'.:: .;"i:: :.: .::.'i.:...":¢ :.',::i :': :":.!::.. !;:;.[:::':?;.<i.'.:~ .! .'.:,~. .. ' 0 - ' 0.8096 GRAVITY lAIR = 1.0) ........ . .~i .... · ~.~. :.:: ,.,..--..:: ¥..'.:-":'. '.',.. ,.:-,..., .'.. '. :: :' ..-~ "..': ': ": ': ':' ,, ..::v:' 7,:i. ' "': '::: ,' "" '?-::" 'i' ": '.,":': ':' ~:i ::::,:':: ': ':i:? :.-.' ":'!i. O . - ~E~c~'r,~ 'SULFU~ ~AZ~S./~O0 CU.F-r. - NGAA TOTAL SULFUR~ ~EIGHT PERCENT : '-'"": ...i-..' 0 124~. mAI'R~FAEE BTU/CU.F'T. ~ NET . . , . ~' .... :`~:~`.`~?~`:`:?~.~;:~:~`.:.;~??~.~:..~.:.~:.~`~`~:~`.~:~¥:~..~ 5Z.6o PERCENT' ~F AVAILABLE ~AL' 0 O.O0.PERC~i~T GF AVAILA6LE ISOBUTANE . ~ 2.10 G .P .M. ']OF BUT AN ES AND HEA V I E R :'~:: ..... ~;..;:....`~`/.:?~;~?;..?.~.).~?~:~.~.~:~.~.~.]:~:.~..?:(.. 0.76 G,P.N, OF PENTANES ARO HEAVIER -'.- '...'.'~'-?~=.-. ','. ::'-.:~'-- : .... ~:~..'.:'~:':?..':.;.:-'~::./.I03.0".ESTIi'4ATED'NOL: ~EIGHT 'OF HEPTANES AND 'HEAVIER :' ' '-.:. .......... '..'.'.. · '.~...~ .......... - ............. ' .... '-..~..:'r' ...... :~.'-."~'::' ' :,,~ ~,', .... .,,, '~ .... : ..... ."::'"'"~ :"" ' .......... · - ~:.~,. :~. t. ~ V.E.D.., ......... ~'":'":"?':: ........... :'"'"':"'~ .............. '" ................... :' :"' '.. ..' ..-....-... .... ' ' ...... -..' .,...' ....... ............. ~..' ~. ~so~''~'' ..',/:,::.?::.::~,:~::.??~/:;:::.,::.?:,:~.%~?:~:; ,,,:..~.:., ,...,,..- · . ~?~:?~:~``:.~.~:...::`..:~:.:.`:?~.~:~...:~.?.::.....~.~.~;...:..:`::.:.~ ~..;'.: .~'. ~' ~. ' ~e~'- ~ ' ::' · :':' ~ '':''.::':'; .:... r=~,~..:~.::...,.:...]./.~.:.~.,;?.:?..:.~.?:.?... ' .'. DIVISION' "OF' M~N~S & 'MINE~..' ' ""'~'"'":?:;'~"~:"...-~.:. ................ ~~:~/' ......: .............. ~ '~' ' ' '~ ' ~:~ ', 5 6' 10 11 12 ALASKA .OIL AND GAS CONSERVATION COMMITTEE HEARING, BENEFICIAL II'SE OF GAS - TRADING BAY UI~IT. TRADING BAY FIELD & GRANITE POINT FIELD. Conservation File #61 Anchorage, Alaska February 7, 1968 13 14 15 16 17 18 19 2O 21 22 '23 25 .... from PetrOleum This document il acquired by Publication, Inc. with the under'standing that it may be reproduced for inter.company use only. & R COURT R~'PORT£R$ WEST EIGHTH AVENUE -- SUITE 5 277-4713 ANCiHORAG~, Ai. ASKA l0 15 16 17 19 20 21 22 23 25 - 2- PROCEEDINGS 1~,. I~RSI~I.,I.,: Good morning, gentlemen. It's 9:30. The Alaska Oil and Gas Conservation Committee will commence a hearin~ , to consider the issu~ll¢of an Order requiring the benefic'ial use , ~ of gas produced as a result of crude oil prOducing operations in Trading Bay, Granite Point and McArthur River Fields. Public notice of.this hearing was published January 11, 1968, in the Anchorage Daily News. Waivers of personal service were-received from' all affected parties. Sitting for the .Oil 'and Gas Conserva- tion Committee tOday are Harry Kugler and Carl Vonder Ahe,and my- self acting..as Chairman; our advisors are O. K. Gilbreth and Bob Lars°n; BOb 'Hartig is our legal counsel. I,d like to say at this time that it* helps 'the girls making a transcript if everybody · ,. registers their name at the rear of the council chambers. We will' have ia -- very likely have an intermission, and I wish. everybody .at that 'time would check and see that' their name is on the 'register. Bob Anderson, are you ready to ~commence your presentation? MR. ANDERSON: Yes, sir. Mr. Chairman,. members of the Committee, gentlemen, I'm RObert Anderson, DistriCt Land Manager for the Alaska Disitr'ict, Pacific Goast DiviSion of the Union Oil Company of California, and I would like to ask .your permission at this' time inasmuch .as three fields are. involved in this hearing, that I be .able to :set the format of the testimony todaY zn SUch .a manner that the' presentation will be from the south Thil dacum~t I PublIcItiOfl'~ Iflc. with It~ und~stiKiding thlt Ii m.¥ ~, rmproduc%~l for Imtm'-coml~fly U. oflly. I R 8¢ R COURT REPORTERS 825 WEST EIGHTH AVENUE -- SUITE 5 277-4713' ANCHORAGE, ALASKA l0 12 14 18 19 2O 21 22 23 24 25 end, the most southerly field, the McArthur River Field, operated under the Trading Bay Unit agreement; moving north to the Trading Bay Field; and then moving further north .to the south end of the Granite Point Field, Mobil operator; then on to the north end of the Granite Point Field with Pan American operator.. This will be followed by a discussion .by Mr. W. L. Bradford of our gas department, .who has been directly involved in the industry study of gas in Alaska. I would further like to ask if you would, tQ hold your questions after each individual testimony, so that the entire presentation can be made, and I'm 'sure that many questions that arise out of one testimony will be answered in sUbsequent testi- ,, mony. MR. MARSHALL: That seems like a very orderly way. We have no objection, Bob. MR. ANDERSON: Thank you. Well, at this time I'd like to introduce the witnesses who will' make presentations today and i'f you'd like to swear them at this time, I think this would be in order. We'll stuart with Mr. Murray Todd, Marathon Oil Company; Mr. Mack CHo. rtonl;" Juan Pe'dre~ti ; W. L.Bradford, Union Oil'.Company of Califo. rnia; Mr. Hoyle H. Hamilton;. Mr. Charles A. Champion, Mobil Oil Corporation; and Mr. R. B. Giles, Pan America petroleum Corporatio.n. (At th,is point in the proceedings all the witnesses .were sworn in by Mr. Vonder Ahe.) This docum~! Is ~Clulrod from Petroleum Publk~tlons inc. wt~h the understanding thlt it rnly b~ mproduc~ for Inter-company use only. R & R COURT REPORTERS 825 WEBT EIGHTH AVENUE ~ SUITE 5 277.4713 ANCHORAGE, ALASKA 10 11 9.1 29. 9.4 9.5 -4- MR. ANDERSON: At this time I'd like to introduce Mr. Murray Todd and give you his qualifications. Murray B. Todd graduated from the University of'Saskatchewan, Canada, with a distinguished degree in petroleum engineering in 1957. He has attended a reservoir engineering school since his graduation conducted by the petroleum engineering staff, Texas A & M, and by Marathon Oil Company Reserach Center. He is a registered professional engineer in the Province of Saskatchewan, and a member of the Engineering Institute of Canada. He spent seven years 'as .a Field and District Engineer invol.Ved in the drilling, production and reservoir engineering operations of the fields in southwestern Saskatchewan. He spent some time as a production advisor of the operations manager of Marathon Oil Company's SaskatChewan project, and was chief.engineer for that operation for two years. He was appointed project engineer 'for the design and construction of the Dolly Varden platform in the fall of 1966, and worked with the project until May, 1967, at'which time he took over the duties as Chairman of the Trading Bay Unit engineering and planning group. Mr, Todd is currently district engineer for Marathon Oil Company's Alaska District. Mr. Todd. MR. TODD: *Thank you, Bob. In this testimony I will. refer to the McArthur River Field usually as the Trading Bay Unit The Trading Bay Unit is outlined in black on Exhibit 1.~ It's located approximately 60 miles southwest of Anchorage, and it's entirely submerged under the waters .of the' Cook Inlet. The unit * See Reference insert No. 1 at end of transcript.. R & R COURT REPORTERS 825 WEST EIGHTH AVENUE -- SUITE ~i ' . 277-4713 ANCHORAGE, AI.ASKA 1 2 3 4 5 6 7 8 9 .... ., ,, -%, 2~ 25 MR. ANDERSON: At this time I'd like to introduce Mr. Murray Todd and give you his qualifications. Murray B. Todd graduated from the University of Saskatchewan, Canada, with a distinguished degree in petroleum engineering in 1957. He has attended a reservoir engineering school~since his graduation conducted by the petroleum engineering staff, Texas A & M, and oy Marathon Oil Company Reserach Center. He is a registered professional engineer in the Province of Saskatchewan, and a member of the Engineering Institute of Canada. He spent se.ven years as ~a Field and District Engineer involved in the drilling, production and reservoir ' engineering operations of the fields in southwestern Saskatchewan. He spent some time as a production advisor of the operations manager of Marathon.Oil Company's Saskatchewan project, and was chief engineer for that operation for two years° He Was appointed 'project engineer for the design and construction of the Dolly Varden platform.in the fall of 1966, and worked with the project until May, 1967, at which time he took over the duties as Chairman of the Trading Bay Unit engineering and planning group. Mr. Todd is c~urrently district engineer for Marathon Oil comPany's Alaska District. Mr. Todd. MRo .TODD: Thank you, Bob. In this testimony I will refer to the McArthur River Field usually as the Trading Bay Unit The Trading Bay Unit' is outlined in black on Fxhibit 1. It's located approximately 60 miles southwest of Anchorage, and it's entirely submerged under the waters of the Cook Inlet. The unic , Thll document is ~cqulr~cl by from Petroleum Publlcaflo~ Inc. with Ih~ un~rst~ndlng l~t it mey Ix~ reproduced for In~'-compnny u# only. , R 8: R COURT REPORTERS WEST EIGHTH AVENUE --SUITE 277-4713 ANCHORAGE, ALASKA ,, 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 covers approximately 40,000 acres wh'ich are under lease to several oil companies. The field was discovered and roughly outlined .through twelve exploratory wells which were drilled in 1965 and 1966. The several participating companies in this area agreed that the reservoirs could best 'be developed on a unitized basis, and a uni~ was formed and became effective on February · 27~of last year. i, The Trading Bay Unit is situated i~ the Cook Inlet Tert~arY Basin. The sediments in this area. are comprised of a thick sequence of nonmarine Tertiary sands, conglomerates and shales, referred to as the Kenai Group, and'these uncomformably overlie Jurassic volcanics. Our oil production to date is from sands and .conglomerates in the lower an~ middle parts of the Kenai Group. The principal producing formation that has been d eve.loped at this time is the Hemlock. Of the twelve exploratory wells that were drilled, · five were tested'at commercial rates. Three platforms, shown as blue dots on that map, were erected during the summer and fall of ,1967, and drilling commenced on all three of these platforms late last year. At the present time three wells are on produc- tion. Concurrent with the erection of these platforms, onshore facilities to handle the crude oil were constructed on the. west side of Cook Inlet, and submarine pipelines, twin lines · from each platform, were laid from 'the platformsto the onshore This docum~t is ec:qulred *by from Petroleom J Publications Inc. with the urtdm'stlmdlng that it may be mproduoKI fo~ Inter-company use only. R & R COURT REPORTERS 825 WEST EIGHTH AVENUE -- SUITE 5 277-4713 ANCHORAG£, Ai.,A~KA -6 - lo ll 12 13 15 18 lg 2o 21 22 23 24 site. I'd 'like to present a brief explanation on the reservoir mechanics that are associated mot only with the Trading Bay Unit but really with all the fields in the Cook Inlet Basin. I will use a few exhibits, illustrated exhibits, which are not really presented as part of the testimony but merely as illustrative aids. This picture illustrates a typical oil trap, more or less a textbook example of an oil trap, but really quite similar to the trapping mechanism that we encountered in the COok Inlet. Of course, all the lands are submerged and are being 'developed by permanent platforms. The oil is accumulated in what we call an anticline° There are of course other methods by which it can be trapped but the trap requires some impervious layers at the top, and something at the bottom to keep it from escaping and going on up to some higher zone.. The oil is present in our case in both sands and conglomerates, and is situated in the pores between the sand g=~ainso There is a considerable amount of salt water .associated with the oil in 'the rock, the salt water being next to the sand grains, and the watek or ,the~oil in between. It's particularly important relative to this hearing that there is no gas cap at the top of the trap~~ in the Cook Inlet Basin. The entire reservoir rock is saturated with oil and water · and .there's no free gas. It's also apparent, we think, that there is no much water underneath of the oil. The ~mbination of these two ~factors controls the producing mechanism of these Inc. with Ihe unde~tendlng ttmt It mey be reproduced for Inte~-comFeny .R 8~ R (:OURT REPORTERS 82B 1NE$'r EiQHTH AVENUE ~ BUITE · 277.4713 ANCHORAGE, ALASKA 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 . · fields. If we did have a gas cap we could rely on the energy of expanding -to fo~rce:- ,. oil from the extremities of the reser- voir towards the wells, or if we had a very large aquifer attached to the reservoir we could rely on expansion of the ware to force oil from the extremities of the reservoir towards the wells. Not being that fortunate however, all we have to rely on at the present time is expansion of the rock, expansion of the fluids themselves, tq~ force oil towards the wells. This means that to maximize recovery in this reservoir we will likely be forced into some type of secondary recovery or pressure main- tenance operation. We could, for example, inject water into a ~11 such as this one to supplement the natural energy and help to force the oil through the rock toward the wells. In the Trading Bay Unit itself, being barely explored, we of course don't know very much about it at the present time, but we do have fluid analyses which gives us a consdierable insight into how the Field will perform. My written testimony will have 'attached to it three exhibits which illustrate what we call the PVT characteristics of the reservoir fluid. I have' one of ~these exhibits prepared on a larger scale. This exhibit il- lustrates ~he relationship in the Trading Bay Unit oil between the gas that's in solution and the reservoir pressure. At the present time the reservoir pressure in the Trading Bay Unit is about 4300 pounds., right over here. Now the fluid analysis that .we have from'one of the 'wildcat' wells indicated that there was · , j*' " ' ~ from Petroleum. , Thil documem II acquired by; ,;; , ,; "?. '. ' ' Inter-coml~ny u~e o~ly.~ I Pub/Ic4tlon~ Inc. with the um~erltlf~lrKI thet it rely be reproduced for R 8¢ R COURT RE:PORTE:RS 825 WE:ST E:IGHTH AVE:NUE:- sUITE: 5 277-4713 ANCHORAGE, ALASKA 10 11 12 14 15 .16 17 18 lg 2O 21 22 23 25 · ~::.,'; L ,,':: ,", from Petroleum Publlc~tiom 'Inc. with the undertl~ndlng ttmt I! m~¥ be reprOduced for Intef-compeny u~e only. 300.-- about 306 cubic feet of .gas dissolved in each barrel of oil. The laboratory work performed on the fluid sample indicate~ that at this pressure oil was capable of having dissolved in it considerably more gas than this. Now we refer to this as under- satur,ated, and this is the condition not only'.in the Trading Bay Unit Reservoir but in others in the Cook Inlet Basin too, and this 'is why there is no free gas cap on the reservoir, As the. reservoir pressure is lowered in the Trading Bay Unit, the produced gas/oil ratio will remain constant until we get to a pressure of 1782 psi at which time the oil will be saturated with gas, and the excess gas will come out of solution, and this ,,curve describes the number of cubic feet per barrel that the oil will hold at pressures less than what is referred to as the bubble point pressure. we also have an analysis of the TradingBay Unit gas which is included i'n the writtem testimony as Exhibit .5. I pre- sent this to show mainly that this gas has a very high nitrogen content 'which is somewhat unusual, and when consideming using casing head gas for certain secondary purposes, this nitrogen content can become quite ..a critical thing. We also notice that there are not very many heavier hydrocarbons in the gas which means that w.e can't get readily very many liquids 'from it. The primary use of the gas that is dissolved in the ,. . , oil in reservoirs such as we have in the Trading Bay uni~.4in the , R & R COURT REPORTERS 825 WEST EIOHTH AVENUE -- ~UITE 5 277-4713 ANCHORAGE. ALASKA 10 1! 12 ,15 17 18 2O 21 23 Hemlock is to provide energy to assist in lifting the oil from the bottom of the wells to the surface. As I mentioned previous !Y, we cannot rely on the gas for moving oil from the extremities of the reservoir toward the wells. Even-the amount of gas being so small isn't even enough to provide satisfactory production rates in the unit. For example, a well which would flow 4200 barrels a day with a gas/oil ratio of 300 cubic feet per barrel, which C~s about what we have, and a reservoir pressure of 4300 psi, woul~ flow 5500 barrels a day if the gas/oil ratio was 600 cubic feet per barrel. This same well would barely flow at all if the gas/oil ratio was less than 100 cubic feet per barrel. Because .of the water that we have.belo~.theoil and because of the fact that we will very likely water flood this reservoir, large volumes of water will eventually be produced with the oil so that the produced gas fluid~ ratio will be even less than 300 cubic feet per barrel and the production rates wilI be correspondingiy lower under flowin conditions~. 'We feel that ;we will have to artificially lift es~en~ ~ally all of the wells eventually in the Trading Bay .Unit so that hhey can be produced at satisfactory productions rates. Going into the utilization of gas, again since we know so little ~about the Hemlock reservoir at this time, we can only state in generalities. However there are some forms of gas utilization which we can predict. I have said that pressure maintenance will be require . This ciocum~t it iccluired b~ from Petroleum Publlcltloni Inc. with th~ und~.tt, ndlng tt~t I! m.y be mproduc~cl for Int~-cornpafiy uN orlly. & R C~OURT REPORTERS WEST EIGHTH AVENUE M SUITES 277-4713 ANCHORAGE, ALASKA l0 11 12 14 17 18 2O 22 23 24 25 - 10- There's a good possibility that we will construct wat~r inject plant's on each of the three' unit platforms ~to inject water -- assuming that we use Cook Inlet water, the water has to be' lifted from' the Inlet; it would have to be conditioned; the silt, sand, bacteria removed, oxygen removed. We anticipate injection pres- sures in the neighborhood of 3000 psi so that a considerable amount o'f energy Will be required to supply water at the necessar pressure to the injection wellS. .We anticipate artificial lifting the wells either through gas lifting' or cent~rifugal pumps. We know that this is going to require a large amount of energy. In addition to this, each platform requires fuel for comfort heating and~ for the genera- tion of electrical power. This artist's sketch indicates in' this block the uses that casing head gas will be put to on the plat- fo rms. The .onshore site has further energy demands. It is necessary to heat all of the fluid which is produced fmom the well so that we can remove the water and undesirable sediments from the oil. The oil has to be pumped from the storage tanks to the Drift River pipeline terminal, and at the onshore site we have a fairly large demand for electrical power and for comfort h'eating. We have attempted to estimate the rate of gas pro- duction during the next several years, and the rate of gas con- sumption during the next 'several years. The rate of gas produc- This document is acquired by . ' "' ' ' '''~ ''~' "'~ from Petroleum /Publications inc. with the understending ttmt it mey be reproduced for inter-company ute only. R ~ R (~OURT REPORTERS 82.5WEST EIGHTH AVENUE -- SUITE S 277.471;3 ANCHORAGE, ALASKA tion will be directly proportional to the 'rate of oil production so ,long as we,produce the reservoir at a pressure above the' bubble point, since all of the gas that is produced is that gas that's dissolved in the oil; there's no free gas flowing within the reservoir. This curve is level up here since the fact that we're .putting well.s on production and at the same time taking wells off production and putting them on injection has a leveling 8 tredd on the usual rate curve which goes up to some peak and then falls off. 10 The gas consumption rate 'will gradually increase from 11 12 13 its current level of approximately 3000 MCFper day to almo-~t 18,000 ~4CF in 1971. The gas consumption rate will ~remain fairly constant or perhaps even increase throughout this period of time; 14 15 since we will continue to inject water at a high rate, we will continue to lift a large amount Of oil and water from 'the wells at a high rate, our needs for heating and electrical power will~ continue° 18 The rate of oil production however will decrease;as 19 2O the percentage of water production increases ini~the well~ the gas 'will decrease 'with it, and eventually we will not have enough 21 22 23 · produced gas to. meet our energy requirements. By this time we will need additional gas or some other 'form of fuel to supply our energy. We.prediCt'that this deficit period will be reached 24¸ 25 'in approximately ten years° During this period of time, from ,, here to' here, oUr gas production Will exceed' our gas consumption /-' '"" : '.! 'from Petroleum, This document is lecquired by Pubilcetiona Inc. with the understanding thet if may be reproduced for Intm',company uSe only., ., 'R & R COURT REPORTERS 82~ WEBT EIGHTH AVENUE ~ SUITE 5 277.4713 ANCHORAGE:, ALASKA ., , 10 11 12 14 15 17 18 19 2O 21 22 ¸ 23 24 25 - 12 - by approximately 66,000,000 MCF. Satisfactory subsurface storage reservoirs ~for this excess production are not available in the Trading Bay Unit area as far as we know at this time. Subsurface storage would usually be accomplished by injecting.gas into a dep!.eted reservoir, a depleted -- if this were the gas reservoir and the gas had been produced from it, you could 'inject gas into it and use that for Storage'; this is the usual practice. ~Or one could inject gas into some sort of a cavern, a natural cavern or a man-made solu~" tion cavern, but we don't have ~these things available' in the Trading Bay Unit··area. There are some shallOw sands that are. saturated with water, some of them are saturated with gas, but at the present time these reservoirs exist in a stable condition. If we were to inject into them they would become over-preSsured and they would cr. eate serious problems during development dril- ling within the unit ~itself, since we 'would have to penetrate ~hese sandS with our development wells. Also, there is a strong poss~bility~ . that gas injected particularly into a water sand would be lost and it' might never be recovered. In considering various secondary types of gas utiliza- tion, we must keep in mind that an excess supply of gas from the Trading Bay Unit is available for only a short peridd of time, and that 'during this period of time the amount of gas that is available is decreasing. It's also very important to note that all of the .gas produced in the Trading Bay Unit is collected at This docume~! Is acquired b . ' ..... ~ .' %1 ?'..' ~' from Petroleum Publlc~tlofl,~ inc. with the underlte~dlng ~h~t' I~ ~y be 'm~xJ~sc~'for ;nter-~omp~ny use only.· & R COURT REPORTERS, WEST EIQHTH AVENUE ~ SUITE 5 277-4713 ANCHORAGE, ALASKA 10 11 12 13 14 15 16 17 18 19 2O 21 22 25 the onshore site on the west side of Cook Inlet, and this gas would not be available for markets on the east side without an ~zenormous investment in pipeline facilities. The high nitrogen content of the gas as I mentioned previously may render it undesirable for any use other than heating. 'The =e-injection of casing head gas into the Hemlock res~ervoir, say,. into' a well like this, may be feasible. However, the small' volume of gas that we are going tO produce is not sufficient to have· any appreciable pressure maintenance effect in the reservoir. A full-scale gas injection project would quire many, many times the volume of gas that.is contained in solution in the Hem,lock reservoir. Furthermore, the cost of injecting gas is. extremely high since the pressure~ has to be increased to approximately 6000 psi befQre it. can be injected. Another possible consideration 'is the removal of the liquifiable heavier hydrocarbons from the gas ~ through a gasoline · extr~action plant. We cannot evaluate the feasibility of this type .of a plant until we know more about the reservoir. In summary·, it is apparent that the Trading Bay Unit gas problem cannot be resolved until more is known about the reservoirs within the nnit area. Information at ·the present time indicates that the amount of gas associated with the oil in the Hemlock is relatively small, and that large volumes of gas will be required 'to provide fuel for equipment used in the exploita- tion of the oil field. There Will be a period, of time during This documen! I~ acquired by · from Petroleum with Publicetione Inc. ~he underatendlng that It may be reproduced far Inter-company uee only. & R COURT RE:PORTERS WEST EIGHTH AVENUE ~ SUITE t 277-4713 ANCHORAGE:, ALASKA 10 1! 15 .16 17 18 19 2O 21 22 23 24 __ 25 which gas Production exceeds gas consumption. However, this period of time is relatively short and the difference between the two numbers decreases after only a few years of field opera- tion. Utilization of this excess gas can only be studied accu- rately after more is known about the unit and after the method of developing the reservoirs has been determined. That concludes my testimony, Mr. Chairman, unless the Board has some questions which I can answer now or after the other witnesses have testi- fied. MR. MARSHALL: We would prefer to hold our questions until the final conclusion. MR. ANDERSON: Mr. Chairman, at this time we will move north to the Trading Bay Field. Testimony at this hearing will be presented by Mr. J. P. Pedret~i, who has been qualified by your Committee as an expert witness in several previous hearings. I'd like now to present Mr. Pedretti. (Mr. Pedretti reads from a prepared statement attached at the end of the transcript, numbered 2.) I MR. ANDERSON: I would like to qualify Mr. Horton for testimony here today. Mr. Horton graduated from the University of California at Berkely with a Bachelor of Science degree in Geological Engineering. Upon graduation he joined the Mobil Oil · Corporation and worked as a production engineer in Southern Cali- fornia oil producing provinces.. While with Mobil he was con- cerned with the engineering, design, installation, and operation IThis document is acquired by ['"'~, !fi ............. ~/ ~"~ from Petroleum Publicatlon,~ Inc. with the underiter~llng ~thet 4t ~.y be. mproduced"for .Inter-company u~e R & R COURT Ri~PORTI:'R$ 825 WEST EIGHTH AVENUE ~ SUITE 5 277-4713 ANCHORAGE, AL.ASKA 9 1! 12 14 15 16 17 18 19 2O ,21 22 23 - 15 - of equipment and facilities to implement primary production, well stimulatinn, crude oil treating 'and secondary recovery in various fields. In May, 1966, he joined Union Oil Company of California and began work on the design of onshore treating facilities to handle crude oil production in the Trading Bay and the McArthur River 'Fields in the Cook Inlet. .Since the start of drilling~ operations in the Trading Bay Field he has functioned as a Combinat~°n construction-production engineer concerned with the installation'and operation of production facilities and · support, systems on Union's Trading Bay monopod platform. Mr. Hortoni , .~ .MR. MARSHALL: For the record we'll accept Mr. Horton's qualifications. (Mr. Horton reads further from the prepared statement attached at the end of the transcript, ~/2.) MR. ANDERSON: Mr. Chairman, at this time I'd like to turn to Mr. Russ Holland who will introduce the witnesses for Mobil on the south end of the Granite Point Field. MR. HOLLAND: For the record, Mr. Chairman, I'm Russ Holland, attorne,y for the Mobil Oil Corporation. The Mobil Oil Corporation. is owner of the Mobil-Union State leases ADL 18761~ and ADL 18765, which are commonly referred 'to as Granite Point lease,'and the Tower lease respectively. Presently Mobil and Union own and are producing oil and its associated gas from one platform located on the Granite Point leaSe. Mobil Will now This documenl is acquired by "~ ..... - ' from Petroleum Publications Inc. with ~ne understanding that it m-y be reproduced for nter*company use only, R & R COURT R£PORT£RS 825 WEST EIGHTH AVENUE -- SUITE 277-4713 ANCHORAGE, ALASKA 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 present testimony on behalf of itself and Union Oil. We intend to present our basic testimony through two witnesses who are seated at my left. In the course of our testimony we will pre three~hibits. Members of the Committee have copies of these exhibits, or will have as soon as I hand them up. I believe we .have 'enough copies for everyone, Mr.. Chairman. These exhibits have been. marked 10, ~11 and 12 t° follow in sequence from the exhibits that have previously been presented. Our first expert witness is Mr. Hoyle H. Hamilton, He has previously been sworn and has been qualified by the' Committee at previous hearings. I will give a brief summary of his experience and qualifications if you wish. MR. MARSHALL: That will not be necessary, Mr. Holland. . 'MR. HOLLAND: Thank you, Mr. Chairman.. At this time I would then p'resent Mr. Hamilton. (At this point Mr. Hamilton reads from a prepared state- ment attached 'to this transCript and numbered 3.) MR, HOLLAND: Mr. Champion has the following qualifica- tions, which I would present t° the Committee at .this time° He's a graduate of the Colorado SchOol of Mines with~a degree in Qeo- logical Engineering° He has Obtained a Master of Science degree in PetrOleum Engineering from the University of Southern Califor- nia. He has worked 'with the Richfield Oil Corporation as a petro. leum engineer for a period of seven and one-half years, and has been employed by Mobil Oil corporation for the past five and a . , . ·· ,: . · '~' This document is ~,qulred by from Petroleum PMMlrJflonl Inc. with lhe unclM'stnndln~ ~ I1' miy'tse, ripr°duc~d for Inlef-coml:)~ny ule only. R 8= R COURT REPORTERS 82S WEST EIGHTH AVENUE -- SUITE 5 .,. 277-4713 ANCHORAGE, ALASKA ! 3 5 6 ? 8 9 , 16 19 20 2! 22 23 25 half years. He's been employed by Mobil in various engineering capacities. Presently. he is with the Northwest Area Operations as its engineer. He's responsible, for the mechanical, production and process engineering and other related engineering matters. Mr. Champion has work. ed on the Granite Point project, of Mobil Oil Corporation since its inception in July, 1965. Mr. Champion is a registered profeSsional' engineer in the State of California, and is a member of various industry societies and technical com- mittees. MR.. MARSHALL: If there are no objections from the Com- mittee we'll accept his qualifications as an expert witness. MR. HOLLAND: Thank you, Mr. Chairman. I'll present Mr. Champion' at this time° (At this point Mr. Champion reads from the prepared statement, ~/3, attached to this transcript ) MR. HOLLAND: At this time, Mr. Chairman, I would turn the further presentation over to the representatives of Pan American Petroleum who will continue with their witnesses. MR. SWAN: Mr. Chairman, .I'm Oscar Swan, attorney for Pan American. I have one witness, Mr. R. B. Giles, but before we proceed we're about halfway to the noon hour, and I wonder if this wouldn't be a good point at which to take a break. MR.'MARSHALL: We had intended,Mr. Swan, to have all .the witnesses and then. have a break in order for the Committee and~ any other members 'interested to' examine the exhibits. If you R & R COURT REPORTERS '825 WEST EIGHTH AVENUE -- SUITE ~ 277-4713 ANCHORAGE, AI.ASKA I Publlrmtlons Inc. wi~h ,the uncle~st~nding ~t ,, m-y be r~oduccd for ,ntm'-compeny .... it'./ ' 10 11 12 -- 13 14 15 16 17 18 19 2O ,21 have some compelling reason -- otherwise -- MR, SWAN: No. I thought you were gettingtired of sitting. (Laughter) In preparing our case we have attempted to eliminate as far as possible any duplication of the previous witnesses' testimOny. A great deal of what's been said about the other fields and the other platforms applies equally to Granite Point and to our two platforms. However, we can't avoid a little duplication. In addition to that, the Committee has previously held'a hearing similar to this on gas utilization at Middle Ground Shoal, and in that hearing some of the discussion and some of the problems overlapped into Granite Point, because Middle Ground Shoal does go to the east side of the Inlet and our two platforms at Granite Point go to the east.?Side of the Inlet. Here again, I ask that the Committee consider what we did say a~ Middle Ground; we'll try to avoid duplicating as far as possible. If you think we've left something out after we've concluded all the testimony, why, please ask'us about it. Mr. Giles has pre- viously testified before this Committee a number, of times. His qualifications as an expert witness have been admittedi' May they be admitted at ttiis time without any further elaboration? MR.. MARSHALL: Yes, we will accept Bart Giles as an exper 22 witness. 23' MR. SWAN: Mt.Giles, you've heard my opening statement 24 here. With particular reference to the fact that some of the 25 problems and some of the possible solutions for gas utilization This documenl II icqulred by ' ':'' ' ~: r from Petroleum PublIcntlons Inc. with the undmstendlng ttmt it m,y r~ ~ for Inte~-company um only. & R COURT REPORTERS WEST EIGHTH AVENUE ~ SUITF.. g 277-4713 · ANCHORAGE, ALASKA 10 11 12 '13 14 15 16 18 19 2O 21 22 23 24 '25 on the Granite Point platform are tied into the Middle Ground shoal Field, how does the present stage of development on Pan American's two.platforms at ~Granite Point compare with the Middle Ground Shoal Field? MR. GILES: At this time we're a~.step behind Middle Ground Shoal development drilling. We have a pretty good idea ., of the' size of the Middle 'Kenai. oil reservoir at Granite Point, and'we can mak'e reasonable forecasts of~ future rates, but per- haps not with the accuracy that we have at Middle Ground Shoal because we know a'little less'ab°ut the reservoir limits at Granite Point. (By Mr. 'Swan) Do yoU haVe an exhibit which shows the present stage of development in the Granite Point Fiel'd? 'Yes, Exhibit '13. This is a str. ucture map, contoured on . a State sand marker .unit that lies within the Middle Kenai 0il reservoir. The map ~is contoured for Chakachat- na.acreage under its. two platforms, Bruce and Anna, and by.color code, red for the development from the Bruce platform, we have shown those wells that have been drille and have been.'completed/or are being drilled and complete at this time. With the' blue color Code we haVe shown the · development at the present time from platform Anna, and. we also shOw On'Exhibit 13 the development that has taken place from MoSil's Granite Point platform to the south. This map also shows in yel'low the twin 8-inch. lines be- 'R & R COURT REPORTERS . ~ 82S WEBT EIGHTH AVENUE ~ BUITE 5 , , , ,277-4713 ~ I ~, . ANCHORAGE, ALASKA This documeflt il aoqulred by ' '.. .... ', L. :'from Petroleum. . .~ · Public~tiom~ Ine. with the uflde~'stancling that it may be mproducecl for Inter-~ompany use only,-J .' A 10 11 12 13 14 15 16 17 19 A 2O 21 Q 22 23 A 24 25 tween Platforms Anna and Bruce, the twin 10-inch lines to the 'East Foreland facility, and an orange-colored code the twin 8-inch lines that Mobil has going to the west side of Cook Inlet. We have a pretty good idea of the major thrust fault 'on the west side of the Middle Kenai oil reservoi] having intersected it some six wells,' the most westerly . wells. Development on the north end' is fairly well de- .fined, although we may have another location or two on the north end. It's on the east flank that we lack , I definitive knowledge of the reservoir limits. Our No. well just east of Platform Bruce is drilling at this time. It will go a long ways 'towards telling us the story on the east side. But even though we lack defini- tive knowledge of the reservoir limits at this time we have a good idea of the reservoir fluid and a good idea as. to what the primary producing mechanism is. Well, what is the primary producing mechanism? Dissolved gas drive which we in the industry more com- monly refer to as solution gas drive. Does this gas then .that is in solution actually help produce the oil in the reservoir? It most assuredly does. It serves its most beneficial use in providing the energy under reservoir pressure to produce the more valuable product, the' crude oil .... ' ~ ~'"" '~ ! "!," from Petroleum f,.~ a ,~,, This docummlt I~ acquired'by '" , .... '; ~ ~'' ;' !; Public~tlon~ Inc. with the under,trending flint it may be reproduced for Inter-company u~o only. R & R COURT REPORTERS 825 WEST EIQHTH AVENUE -- SUITE 5 277-4713 ANCHORAGE:, ALASKA , .itself to the surface, for market. At Granite Point one barrel of crude oil will evolve about 950 standard cubic feet of gas at the surface. At Subsurface pressures in excess of. 2500 pounds the gas acts to swell the oil by only 1 icubic foot per barrel. Now the ability of the gas to expand from that one cubic foot per barrel to 950 'cubic feet per barrel is the work energy that forces the oil from the' reservoir .rock toward the .well bore, a Poinl ., of lower pressure, and then continues to provide work 10 11 12' 13 14 energy in lifting the Oil by .natural ,gas lift up the well bore to the gurface. The oil is lightened in the well 'bore by, the presence' of the gas' and this allows a · lower pressure to prevail at the formation ~aCe that is exposed to the bottom of the wells, and this in turn 15 16 allows the oil to feed into the bottom of' the well from the reservoir rock. 17 18 19 Now when the gas' has fully expanded in its ap- .proximate 10,000 feet of vertical. travel from the bottom .of the well to the surface,.the gas pressure energy .has 2O 21 been fully and .beneficially used in the manner devised by Mother Nature, and without.the gas energy put there 22 23 bY Mother 'Nature there would be no °il production at .. Granite Point. BeCause We have no indication at Granite Point that there is any .other source of reservoir energy available for the production of oil by natural means. , Thin document is acquired b~, ,', ,. , from Petroleum Publications Inc. with the ut~l~t"r~lihg'-tl~It it'maybe reproduced for Inter.company use only. · & R COURT REPORTERS WEST EIGHTH AVENUE ~ SUITE '~ 277.4713 ' ANCHORAGE:, AI.ASKA 10 11 12 13 14 15 16 Q 18 19 ~0 A Q 22 23 24 25 A There is no excessive 'or improper use of this gas energy being made at Granite Point. Our operations should re- sult in the maximum economic recovery of oil from the oil Middle Kenai/=eservoir in this field. Despite Mother Nature's help oil recovery' by ~olution gas drive will be low, something on the order of 157. of oil in place. Additional recovery can only be obtained by extraneously tnjectihg fluid to effectively sweep more oil out of the reservoir, rock. This is why, gentlemen, we place.' so much emphasis at the 80-acre spacing hearing on Granite Point held in December on gi.ving first..priority to the initia- tion of water injectivity tests to determine whether water Can be injected in the Middle Kenai oil reservoir in this field and at what injection rates, so we could then. proceed to properlY.design a full-scale injection project. . , , , You then do agree with all 'the previous witnesses that water injection offers ~he best possibility for secon- ' . dary recovery in this field.a.s well as the other fields? Well, yes', and. I will explain in more detail why later. Now that yoU've got this gas to the surface and it's produced the oil what additional beneficial uses are possible for the gas? This is with particular reference to these two platforms.' now, Anna and Bruce. . That's correct. 'Exhibit 14 shows current the equipment Thin document i~ acquired by '"' from Petroleum Publlc~tlons 'inc. wifh the undm'~tanding that It may b¢~ reproduced for inter-company u~e only. R & R COURT REPORTERS 825 WEST EIGHTH AVENUE -- SUITE 5 277-4713 ANCHORAGE, ALASKA 10 11 12. 13 14 15 16 17 18 19 2O 21 22 23 24 25 .that has been converted to gas or is being converted at. this tim~ to gas utilization on the Platforms Anna and Bruce, and it itemiZes it and shows how much each group of equipment is using in the way of MCF per day of gas on the platform. The equipment that has or is being converted at this time represents all of the equipment on those two' platforms that is available there for con- version to gas at this time, and we' show that just sligh ly more than three million cubic feet 'per day of produce gas is being used beneficially, once again, to, run this equipment. And we're looking at additional probably future gas usage. We expect water injection pumps and auxili'arie~ such as 'feed and supply pumps, centrifuge or backflush 'pumps as the situation requires, that .this equipment wil~ consume slightly more than:a million cubic feet per day. We expect to use some 1450.~mcf per day for artificial. · lift, probably through use of gas lift compressors, .al- though, we do expect to run a Kobe pump .in the nature of an experiment soon. Finally, we anticipate about 720 MC? per day for emulsion treating. Now this estimate, cf course, will de pend upon the water volumes' produced by the water flood operations as well as the. tightness of the .produced emulsion. At this time we .produce only a trace of water This document is ecqulrod by from Petroleum ] Publication,, Inc. with the unde~stending thet it me¥ be reproduced for Inter-company u~e only. I R & R COURT REiPORTEiRS 82.5WEST EIGHTH AVENUE --, SUITE IS 277-4713 ANCHORAGE, ALASKA ~ 4 9 11 12 13 14 Q 15 16 A 17 18 19 2o 21 22 23 24 less than 27. with our crude oil. There's no need on shore to treat the water out of the oil as the oil is merchantible for shipment as received.. So at this time there's no real present use we can make of the produced gas at our East Foreland facility except for glycol heating for heat trace of the facility piping systems, and this is a nominal' amount, some 70 MCF per day. Statistically then we anticipate eventually using some. 6200 MCF per day on the two platforms,, but as the asterisks show that following completion of drilling operations our fuel requirements will drop down to ap- prosimately 5400 MCF a day when some of the larger generators are taken out of service. Do you have a forecast of gas .production and consumption for fuel use for these two .platforms? Yes. Exhibit 15 is a forecast of 'expected produced gas and total fuel gas consumption on Platforms Anna and B=uce. I might mention at this point that the forecast of produced gas 'has been drawn as a smooth curve because the actual calculated rate came out quite sawtoothed in appearance. The calculated rates for a projection into the future of this type is .not within the limits of accuracy that we would want to portray from an exhibit of fit this type, sb the smooth curve/in our opinion represents a much more reasonable 'forecast. This document is acquired by from Petroleum Publkafions Inc. with the undm'stending ttmt It may be reproduce~ for inter-company ule only. R & R COURT REPORTERS 825 WEST EIGHTH AVENUE -- SUITE · 277-4713 ANCHORAGE, ALASKA 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 25 Nbw there'some key timing assumptions that go into the makeup of Exhibit 15,. the forecast produced rate. We expect pilot water injectivity tests to get under way the middle part of this year. We expect to finish de~ velopment drilling in the second half of 1969, and we very definitely expect that full scale water injection: will be in full sWing the second half of 1970. On the fuel gas con. sumption curve you'll notice a slight dip in 1970, and this is because the larger generators will hay been taken oUt of service earlier 'than that because de- velopment drilling will have been completed, and then yOu'll .notice the curve levels off in the range of 5400 MCF per 'day consistent with the figure~~ that was'. shown · at the ~bottom of Exhibit 1~.~ The produced gas and fuel gas consumption curves conwer'ge quite rapidly within five years from now and they eventually cross in 1979 to, where for the remaining nine years thereafter, we're in. 'a deficit condition. where things now' stand we would probably get makeup gas from our nearest source which would be the onshore, Kaloa gas well. Overall we will use from this point on in time about 407. of the produced gas for fuel, even though right now we're only using 'the order of 13~4 ofI the produced, gas for fuel on the .platforms. 'Explaining it a little differently, the area ,, under the fuel gas cOnSumption curve represents 40"4 of This document Is acquired I~ ' i ' ' ' for Inter.company use only. Publications Inc. with the unclm'ltanding that It may be reproduced R COURT REPORTERS WE~T EIGHTH AVENUE ~ SUITE · ANCHORAGE, A~SKA 1 2 3 4 5 6 ? 8 Q A .' Q 10 11 12 13 14 15 16 ¸17 ,18 19 21 22 23 24 25 This clocun~nl is .cqulred 'by "' ~ ', . ' from Petroleum Publications Inc. with the understanding that it may b~ mproduc~l for Inter-compa~y u~ only. the area under the produced, gas curve. The volume .of produced gas over and above the fuel gas needs that is and will be available from now until the deficit ditions occurs in 1979 is 34,000,000 mcf. Now to put Exhibit 15 in its proper context we estimate roughly eighty billion cubic feet will br pro- duced from the reservoir under our two platforms through out the field life. This is only 67..of the North Cook Inlet Field gas reserve, and the bulk of' this produced 'gas is available for just the next five years. These reasons above all others explain why no market" fo~ the excess produced gas has. become available. Mr. Giles, again with particular reference to these two platforms, would it be possible or practical in your opinion to inject thel: produced gas 'into any formation'? No. We feel that the, produced gas for injection into the Middle Kenai oil'..~eservoir remains as a possibility. but our reservoir' studies .indicate to us that water in- jection will recover more oil at Granite Point than gas injection. .~ .. Is there a sufficient, supply, of gas to have any appre- ciabl'e effect as a secondary recovery or pressure main- tenance -- or for, excuse me -- for secondary recOvery or pressure maintenance? Well, if there were enougk gas available, a high pzessur , , R & R COURT R~'PORTER$ 62[$WEST EIGHTI~I AVENUE SUITE 277-4713 ANCHORAGE, ALA~SKA 10 11 12 13 14 15 16 17 18 19 2o 21 23 24 25 miscible gas injection project might match oil recovery bywater floO. ding, but there just isn't that much gas available. Now if we just consider Chakachatna's needs Granite Point we would need something like .sixty million cubic feet per day for a'high pressure miscible gas injection project, .but there just~isn't that much available. ClOse by.. ~ Now looking toward, the more conventional.~gas in- jection project whereby you inject the gas. at moderate Pressures, in the neighborhood of 3000 pounds, this will not perform as well aS water'~injection and there's a reason. It's because the mobility ratio of g~s through oil is 1.8, 'quite unfavorable for effectively sweeping the °il out of the reservoir rock. On the other hand. , ~ the mobility ratio of,water to oil is ,08, which is favorable .for effectiVely sweeping the oil.~ Mobility ratio is. a primary criteria for' predicting future per- ~fOrmance of an injection project because it provides a measure of the relative"e, ase with which 'thei, njected water can displace the oil~ in the reservoir. ?.Now a pre- requisite to form ~. secondary recovery plan. ag Granite Point is to run water injectivity tests to determine whether water .can be injected at sufficient rates to not only main:ain reservoir pressure but hopefully to rePres' the reservoir to a higher degree. The injectivity.test This document is acquired by . from Petroleum Publications Inc. wl~'h the unde~st,ndlng ttmt it m~y be reproduced for inter-company use only. & R COURT REPORT£R$ WEST EIQHTH AVENUEi,--., SUITE ~77-4713 ANCHORAGE, ALASKA results at Granite Point will permit proper design of a field cooperative injection pr.oject with Mobil. Now if water can be successfully injected the pro- gram will prevent an increase in produced gas volumes, and it. will make the .most efficient use of the remaining gas as reservoir energy, At Granite Point ADL 18742,. well No. 12 eaSt of Platform Bruce is the well we've selecte~ for these water~.~jectivity tests. We under- stand that Mobil plans to' run injectivity tests in its 10 11 12 13. Q 14 15 A 16 17 well .11' 24; Now some.:delay has been experienced in our rupning these tests because .a fish downhole, in. well 12 has had to be sidetracked in 'drilling the well. At,the'se two platforms would it be possible to., store thi excess gas ~ for later use? ~ 'N°!~. It WOuldn't be felasib!~e to do it. Let me explain wt As:iMobil indicated, there are no shallow gas zones · Granite. Point. Now there are some very small Water~ 18 sands, relatively shallow, 3000 feet, and there is some 19 2o 21 larger water zones at 6000 feet, all of which .occur above the oil producing horizons. Now we've, considered the water zones at 6000 feet as possible sources of 22 supply for the water flood, but we've .questioned whether 23 these sands could indeed support a full scale fieldwide 24 25 water flood program. They're not extensive enough. The sands -- and this is true ef all the Tertiary age =ock Thit document is acquired by from Petroleum Publicationl Inc. with the underlfending that it mly b~ reproduced for inter<Ompany ulo only. R & R COURT REPORTERS 825 WEST EIGHTH AVENUE ~ SUITE ~ 277-4713 ANCHORAGE, ALASKA' .y. '1 in the Inlet, are -- were deposited in a -non-marine continental environment. They're generally lenticular in nature and they can't be recharged at their out- crops, as would be the case of a blanket continuous sand. Ail of the. Tertiary age rock sands at Granite Point are geologically very young. They're not com- petent well cemented rocks. They were deposited only yesterday as far as geologic time is concerned, and compaction of the sediment is still going on. If we 10 were to attempt to store gas in one .or more of,,these 11 14 15 16 weak lenticular sands which are now. filled with water', the amount of gas we could store in them would depend upon two things. First,the ability to'compress the, water in the zone to make room for the gas; and secondly thq strength of the sand and the'overlying tap,rock, shale cap rock to withstand the increased pressure i', 17 applied to it by virtue of the storage of addi~'ion~1 18 mat,erial in an already filled container. Now, as we all know, the water is very uncompres~sible so in ~rder' to .2O 21 store substantial volu~.es of gas in an already ,,filled , water container it's necessary the container be very 9.3 9,4 9.5 lar, ge so that the compressive forces can be transmitted to .the many millions of barrels of water, or that the rock be strong enough if the container's small ..to with- stand the increasing pressures which would occur when Thia documem Is acquired by ~ frgm Petroleum Publicatlont. Inc. with the undecstanding that It may be reproduced for inter-company use only. R & R COURT REPORTERS 825 WEST EIGH~rH AVENUE ~ SUITE · 277-4713 ANC:HORAGE, ALASKA ,, , the gas. is injected. An extensive aquifer or a very strong container are not characteristics we could assign to the Tertiary water sands 'at Granite Point. There's another factor that has to be considered in aquifer gas. storage. This is the amount of gas which will be lost or unrecoverable due to trapping of ~the gas in the water saturated pores of the rock. This could 10 amount to thirty or forty percent of the gas injected , 'into a water sand. Now to produce this gas back econo- mically will also constitute a problem as varying 11 amounts of water will~ be p~oduced throughout the pro- 12 13 '14 duction cycle. Let's look at it this way. If there were several cycles of injection and production which is u~ually the 15 16 case in a true gas storage project, that is, the.gas is stored in the summer and is withdrawn in the winter to~ , '17 meet peak demands, the problems of gas loss oT trapping 18 w~th the initial injection, cycles and water produc~.tion 19 2o in the initial production cycle would be minimized in subsequent storage and injection and productipn phases. 21 N~w at Granite Point We'.re ~alking about storing the gat 22 23 once during the higher GOR phase of oil productions, and attempting to take it~ out of storage once later on when 24 25 fuel gas is needed for our field operations. I', This is a lot different than the' short timewise .cyclic' gas storage ',~ ~ ,' ? ?~.,~ from Petroleum This document is acquired by ~':',~ ~,.~ ii, ' ' ~ ' ' ,~ . ~ Publications Inc. with Iho undmstanding fh~f 'it re'ay be re~:Jbcecl 'f6r inter-company ule only. & R COURT REPORTERS WEST EIGHTH AVENUE ~ SUITE 15 277-4713 ANCHORAGE, ALASKA 10 13 14 15 16 17 19 2O 21 22 23 24 25 A - 31 ~and production phases of the conventional storage pzojec . There's a final consideration. The storage of produced gas in these water sands could create drilling problems such as the need to use higher than normal mud ~ights while drilling, the possibility of a blowout or lost circulation if we were to have to go' to a high pressure to put the gas away into the water sands. We forecast we,ll be through development drilling in the last half of 1969,*~ but in reality we never truly fimish drilling wells during~ .the life of a field. There is always a need to drill anogher one or two wells for in- jection or production, as ghe case may be dictated by the ~ese=voir performance Pfa water flood. ~, What possibilities, might become' available for disposing of the remainder of this p~oduced gas that you 'haven't been able to figure o~t a use for up to this point? Well, the Chakachatna,~ group for its Granite POint holdin s and the Chakachatna gr~.oup and the' SAS group fqr 'their respective holdings~at Middle Ground Shoal ha~e entered into certain preliminary n~gotiations with Un~on 0il Company for disPositipn of i~ gas to Union. One ~problem among several that se~ves ~s a deterrent to this~ poss di~sposition is the shprt ~d~ration of available produced gas; short because iti'~will, only last for another five years at Granite Poin~ Nevertheless our sea,ch fo= a This document is acquired by from Petroleum Public~tiont Inc. with the understanding that it may be reproduced for inter~compeny u~e'0~J R. & R COURT REPORTERS $2~ WEST EIGHTH AVENUE ~ SUITE B ~.~'~.,~ *. ANCHORAGE,, ALASKA , , . - 32 - suitable market continues' in tan'dem with our evaluation · of Union's offer. Phillips Petroelum Company has in- formed us they .have an interest in making an offer for the available produced gas for their plant. Phillips expects their studissto be completed, sometime this month,. whereupon they'll.be ready to enter, into negotiation for and possible purchase of this gas at Granite Point/Middle Ground, and to complete a purchase contract if mutually 10 satisfactory terms and conditions can be worked out, but I have to stress, once again as I did some three 11 12 13 weeks ago at the Middle Ground Shoal gas disposition hearing, that the prospects for the disposition of pro- duced gas to these of~,erors is not glowing. And this is 17 because of the short periof of time in which the produce gas would be available, the low pressure of this gas which would require cgstly compression;i and ghe c0mpo- sitbn of the produced~.~gas which, unlike the usual dry 18 gas well gas would reguire some treating first. Now let me add that, like Mobil, on the%r platform~ 2O 21 we on our platforms recover those liquids thaT drop out of the gas as a by-product of having ccmpressgd the wet 9.2 produced gas, cooled This gas and dehydrated i,t to remov. 9.3 9.4 the water vapor, for ~hen subsequent shipment ~of the' gas to our East Foreland facilities; that's for Shipmen~ of 25 the gas when our line~-isn't frozen like it is-right now. This documen! is Publlc~tionl Inc. with the un~lf~lir~g' th'et it'~ne~'"~ reproduced 'for inter-company use only. & R COURT REPORTERS WEST EIGH~[-I AVENUE ~ SUITE I~i 277-4713 ANCHORAGE, ALASKA ~,, 10 12 13 15 ,16 '17 18 21 22 23 24 25 A m. - 33- Mr. Giles, at this time from these two platforms, Anna and Bruce, is any gas either escaping into the open air or being burned'as a flare from any of these wells on the platform which is in excess of the amount which is reasonably necessary in the efficient production of the wells from the platform? Would you summarize just brieflY what your. testimony has 'been with respect .to gas production and utilization here? ,, ~,, , We'!l, once again the. most benefiCial'use of the solution gas is to -- the use 9f the. 'energy provided by this ga,~s under pressure, to produce the 'oil. Additi,onally we(i use some of the prgduced gas as power fUel on our platforms. The remainder of the produced gas may be. used if and when suitable markets develop. We will start pilQt water inj~ctiom, this year just as soon as we~ can,~ and hope to get fUll-scale by 1970. By the time we.~ get fill up with the water flood which we Would estimate some three yo~ars later, 1973, the ga~ productio fa.re will ha~e declined to,.the point where it ~will .do little more than just Meet our needs for platfOrm fuel · and then beyond 1979 ~t won't even do that; we're in a de.~icit condition. N~w disposition of the available produced gas during t:he next: fiver'years must: be looked & R C:OURT REPORTERS WEST EIGHTH'~AVENUE ~ SUITE 5 27'/-47 IB : ' - ANCHORAGE, ALASKA , ,, J This documenl is acquired by , : .. '` ,' ......... '"": from Petroleum / ,ub,~.,,o.n. ,~..,~h ,h. un~..,.~,~o ,~., ,, m., ,...~,o~ '0' ,:,..<o~.~, ..... ,,. upon with guarded optimism. Again this is becaUse of.th~ short 'period .of time in which this gas is available, plu~ the compression and treating costs that are attendamt with putting the gas in suitable shape for a possible buyer. Even, so, we remain continually alert' in our market search for any suitable profitable means of dis- posing of the produced gas. The upsho~ of what we're saying is that steps we're taking, right now toward conducting a full-scale wa~ter flood at Granite Point hold the key to putting out the flare in the ~earlyi 1970's, and if the water flood works, and we hMve a.~l the reasons to believe it will, then both the ~g~as-oil ratio and the gas,oil :~ p~.oducing rate will gp down sharply by having repressure, th.e reservoir rock. MR.. SWAN: GentIemen,~ that concludes Pan American's' testimony, and I turn it back. ~o Mr,.Anderson at this time. ~, MR. ANDERSON: Mr. ChHirman, I'd like to introduce.~ our next witness, Mr. Bzadford, an~d giv,e you a resume of h.is qualifi cations. Mt.Bradford graduate,~d from the University of Southern California. in 1952 with a Bachelor of Science Degree. Upon~.~.. graduation he was employed by pnion Oil Company of California as production~engineer. He has h,,eld v~.arious engineering posit~ons. ~ith Union, ~including District Production Superintendent, District Engineer, ~nd Supervisor of gas' operations. Currently Mr.~ Brad- 10 11 14 15 17 18 2o 21 R & R COURT R~PORTER$ ~.. 82~ WE~T EIGH'~H AVENUE ~ SUITE " I~77-4713 ~ 1 ANCHORAGE. ALASKA This d~um~l i~ e~uir~ by . ~rom Petroleum ~ ~ Publi~tions I~, with t~ und~tending that It may ~ ~r~uc~ ~or Inter~o~peny use only. 10 11 14 17 18 2O 21 This nlocumen! it. acquired by ford is manager of engineering and facilities in Gas and Gas Liquids Department of the Union Oil Company of California. Mr. Bradford. MR., BRADFORD: Thank you. I'm W. L. Bradford.~ Gentleme~ this discussion will be of necessity informal. I have no typed.. .what el, se iS, possible in any way to get the last bit tak~en care of. I might~, explain the function of the Gas Department ~rious ,.companies. We are purposefully relieved of any ~esponsi- bility in t~e daily stress of drilling and producingand ~quipm~nt install'atioq. We pay particular attention to this utilizati~m and dis, posit~ion of natural gas and any ~associated products. .~We ful to discuss with you what we've been doing towards the maxi- mization of the gas under Cook Inlet. Now, one point of departur~ that we might mention here, when we speak of it from ou~ stand- point,~the Gas Department, we think of the utilization pf getting the last squeal out-of, the pig. We keep talking about ways are trying ~o d~e~mtop to..u~tlize thisLgas.. It casts no shadpw that this ga, s is not being utilized very beneficially now. B~t we are kind ,of the Blue sky department to go over and ~find 9ut from Petroleum Publications Inc. with the undm'ltandlng that it may be reproduced for inter-company use only. enter the pictur, e early, often performing preliminary plans ~efor, , d~velopmen~ drilling is commenced. We then continue to e~valuate any information developed, and add or eliminate possible rives. We imitiate discussions with other departments in L & R COURT REPORTERS WEST EIGHTH AVENUE'~ SUITE ~ 277-'47~3 ANCHORAGE. ALA$1~A testimony to pass out. Actually in reviewing the various testi- mony to be presented yesterday, it developed that it may be help- 10 11 12 ·17 23 - 36 o respective companies, and also betweem companies, in ways of gas handling. Now let me go back and elaborate' what our activities have been in this particular·area. Back in the summer of 1967 we directed our attention to what we could do if gas was develope · from the platforms being installed on the west side of Cook Inlet That's particularly over on this 'side. The platforms were being instali~ed that summer, and the lead lines were' tied into the west side'~ I think when I go a little further on you'll understand why there was no consideration really given to going the other way. The first altern.ative appeared to b~ the installa- tion' of a line across the Inle~ to.where the potential for ultimal use we think was considerably greater. Our first thought was to get ac'ross ~the Inlet, even dir^ectly from the platforms across thi way. Over here there is existSng whar£s for shipping, warehouses, towns, exis~ting gas use a~s ~.i~¢~tly from this area. The Plant complexes are over here. So i~ just seemed more logical to.go .to · the east width the gas.~ Now in starting to evaluate that, f±rst"~thing we ran up into is there's a tremendous trench doWn the middle of the Cook Inlet.' These platforms are actually..~just to the west side of quite a cliff. ~hey go down to 60, 65 f~thoms NoW with pr~esent pipeline technology, we considered~'about 170 fee which ,.is, oh, 25 to 26 fathoms~plus ~he normal tide variance, as being .the maximum lay depth. ~$o there was jus~ no way,. across thi~ ..... ' ..... from Petroleum Thi~ documm~! is ecquired by ~' " ........... r Inler-~'omp~r¥ use only. J Public~tion*~ Inc. with the understanding that it me¥ be reproduced for & R C:OURT REPORTERS WEST EIG~H'P'H AVENUE ~ BUITE B ANC;HORAGE, ALASKA ~e - 37 This document i, acquired by · ' ',i'~ from Petroleum . Publications ,Inet with the undm, stending lhat it may be reproduced for inter-company use only. 11 have .to.~ be l~id up to the north ~ almoSt over to the Granite Pqint 12 13 final recommendation was' to begin at the platforms, go all the way around .the trench, and this took us almost up to this point, because the trench essentially initiates here, goes down between these two sets of platforms, actually broadens out, the space is~ fairly.., deep~' even going. On thrpugh ~the Forelands. The line would Field,'. and ~then go down the sake .ro'qte as the Pan Am line, down to this are~. Now by the time ~they gathered all the gas being c.onsidered,'.:; and considering 'th9 Wet,~nature of' the gas, the %~iquid 15 droPout, they also had to cons%der %ay. ing along with that line;. ~hat'$ for that 'volume fqr. that distance. Now ag this point 1? ~ coul~ see that we were really get~ing into a general 18 gas ga~:heri!~g situation. So w~ reoriented our thinking:, from 'looking ae~ fr:om the ~nd~v~d~ai. p~oblem sgandpo~ne go ehae of g0 one of ehe ~hole. ~nduSery s~andpoin~ ~e're geee~ng ~neo p~ox~m~l W~eh Gran~e~ 'Point where boeh ~he Chakachaena and ehe Mobil ~groups are op~rae~gg; we are also ~n prox~m~ey w~eh ehe HG8 groups .down here, gnd We're getting close ~o , several small dry gas fields , that were up in the a~ea. So it looked like the time might .be r~pe e9 hav~ a get-eoge'ther of ?a~ the operaeors ~n ehis area, and & R COURT REPORTERS WEST Ei(~HT~I AVEINU~: ,r--- SUITE · 27~7-47I~' ~T ANCHORAGE, ALASKA i, find a rout~ through the trench, but were unsuccessful. So thei~ under present technology or even what could be looked into. Now, on June 15th we hired Br~own and Root to study the feasibility of getting from the west-side over to ~he east side. How could we do it? We got some pretty elaborate bathymetric$ and tried to 10 11 12 14 15 16 17 18 19 2O 21 22 25 commonly discuss the situation to see if we could make two and · two equal more than 'four. So in early August we contacted Pan American con- cerning, their interest: in pursuing an overall study of Cook Inlet gas gathering processing. Now incidentally, at this point in time we had not yet' spudded our first well off these platforms. I only throw that in to impress you that we do try to get into these things as. early as possible. Now Pan American's. response was both affirmative and enthusiastic. Pan American at this time had coq~nenc~d a study to evaluate the feasibility of a proce~ssing -plant on the so-called east side gas. They were acting on behalf of the Chakachatna group at Granite Point and Middle Gro~und Shoal and the SAS~lgroup at Middle GrQund Shoal. It's for this reason our initial-contact was with that company,, and why their name is mentioned,~.in this discussion mor. e often'. A week later we sen~ our preliminary economics to the companies in these 'groups by way of Pan Am~ NoV incidentally 'the Gompanies involved are Ma~rathon, Atlantic-Richfield, Union, Mobil, Pan Am, .Phillips, Sinclair, Skelly? Standard Oil Company, and Shell. So you can se? you~ had a whole gro.up of major and wei!~ advised oil companies. ~ · NoW due to the i~interest developed, a meeting o~f the management of each of these affe~cted .companies was set for early ~ptember. You must realize at this time that the information thal , w~ sent out was one company's best estimate of the gas volumes, composigions, etcetera, of the qther companies and .operators.~ Thin document Is acquired by from Petroleum Publications Inc, with the under'standing that it may be reproduced for Infer-company use only. R & R COURT REPORTERS 825 WEST EIGHTH AVENUE --SUITE 5 277-4713 ' ANCHORAGE, ALASKA Now at this meeti.ng the management 'of each company agreed to . supply any information necessary with respect to a more detailed study, union Oil Company was selected to gather this data and perform the definitive engineering to evaluate project feasibilit, from 'the best information then obtainable. The raw tabUlated data. was distributed in late November, and a meeting set in Decem. bet to discuss entering engineering .phase. This meeting was postponed at that time due to the east side plant· study being. completed at. that time. It was also in timing with the first 10 hearing' coming'up in early janu~ary, and further' develop~ed data 11 in the fiel.~, on 'predicted gas volume's was already indicatingi the 1~. peaking of this gas; whereas the initial information indicated 13 14 the volume of gas considered wa.s maintained for many ye~ars, '.the information,available now shows, this gas is principallY~ concen- 15 trated-in the initial years, and actually is deficient anywh~,ere 16 from 1974 .to 1979 17 The difficulty of~ this situation is two-fpld. 18 Now before ~I point out some departure, I might mention what 19 2O 21 22 23 25 initial plam we had. Going beyond the idea of laying this line all water all the way around here, when we went and tal~ed to Pan Am and the other groups, the idea was that we'd have our.lead lines into this west shore anyway. We'd install the oil lines . but we could use one line as g~s.to bring gas to shore. Then follow the route of the Cook Inlet .oil pipeline, stay on the land and even though it's much further it's much more dependable and O1 Publications Inc, with the underltandlng that It may be reproduced for Inter-company use only. R &: R COURT REPORTERS 277-4713 ANCHORAGE, ALASKA 10 11 12 " 14 15 17 19 2o 21 22 23 25 is actually less expensive than trying to ~go across the inlet itself. Now at this point t:he gas wbuld have~ to be gathered at low~ pressure. We'd have to put in a sizable compressor plant, boost the'gas to, say., 600 pounds of pressure, transport it down this .line to where it would join with Mobil gas coming from Granit, Point under, the' same lead line situation 'as back at Trading Bay and McArthur River and the Trading Bay fields. It would require a new line t:o be laid from the Pan Am platforms over to the shore' , and tied into this gas at this point:. Now the reason that this gas had to?~come in, another compressor station would b..e req~uired , at this point to literally .st:uff the gas down tkroughPaniAm's.~10-inch. line.. So we take it up, t:he Icommon gas from all of these plat- forms, in t:he range of 1100~ poBnds, ,which was the timit~ing pres- sure .on t:he~ 'pipeline. Then gq back .tO Pan Am's platform an~d down the 10-inch line to a common~ Point over here on the West 'Forelands, ~the thought being that we would at that poi~nt be'~i able , to design and build a large processing plant for the tptal gas. ~ ~ Now one thing that enhanced looking~ at t:.,his C011ec tively is the fact that' t:here' ' . ~!s no .~question individual%y pl.,ant : econo,mics ~.re very little and :.i.n mqst cases not there at all. Now w, t:hoUght: if we can gat:her all, th~ gas together w~e m±g~t: get: 'to the point: t:o where t:he prop, ant fr. ac~:ion would, be ec.onomically recovered for export. .The on/~.y wa7 out: t:hat: we could ,see with liqUi~ products are to find aqd gather, together in exportable volumes. "There's .'no .sufficien..,t' market: for propane and! none.' that ~ R coURT R~O~T~R$ WEST EIGHTH AVENUE -- SUITE · ~ ANCHORAGE, ALASKA ,, ' This documem is acquir~ by Publications inc. with the understanding that it may be reproduced for inter-company use only, - 41 o we could see in the general Alaska area. MR. MARSHALL: I wonder if I could interrupt your testimony. I believe that Mr. Swan had a pretty good idea. I ~dn't calculated that time was going to run just like it is, and I don't believe that there will be time for the committee's ques- Sons before the noon recess. I wonder if we could impose on. you 9 ? to declare a ten minUte break now?. 8 MR. BRADFORD: I think that's a g°od idea. MR. MARSHALL: Fine. We'll have a ten minute break. (At 11:30 a.m. proceedings' were recessed until 11:40 a.m. (ON THE . 12 MR..MARSHALL: Our meeting will resume, Larry, we thank 13 you for letting us~ break ' into .your testimony. 14 MR.' BRADFORD: Getting back on. track' here , we're giving 15 you a little idea of trying to put a project together on paper, 16 and again before we'd ever even drilled m W'~ll over here on the~/ 17 platforms; this was back in August and the first well here didn't 18 spUd until.late August; but the 'idea of.collecting all of this 19 gas, how it looked and how we -- we. gave it a good show, and what 20 our plans were at the time, and I think we felt that by putting 21 O~mpressor plants, in here to push the gas up to this point, Putting 22 in a large installation here to ShOve 'the gas down through the *23 24 Pan Am .lines to this area. Then in succeeding meetings~ we wound up getting to the point where we're just about now. · Now. the .difficulty· that developed~ in this~ situation · ~' from Petroleum Thi~ d°Cument Publicntion$ .linc. with the undmstending lh~t il mny be r~produced for Inter-company use only. & R COURT REPORTERS WEST Ei(~HTH AVENUE -- SUITE IS 277.4713 . ANCHORAGE, ALASKA 1 2 3 4 5 6 ? 8 9 10 11 17 18 2o ~.1 23 - 42 - is two-fold. The capacity of the Pan Am 10-inch line is inadequa during the time that the bulk of this gas is available, and there is not a sufficient continuing supply of this gas on which to' base the construction of a chemical plant or other facilities , which could pOssibly purchase the gas for feed stock. One point I want to discuss again~ in going through this review of 'some 'of our work to date is to establish the assur- · anCe' that the operating companies in-the Cook Inlet are exerting a strenuous and continuing effort to find ways for the greatest utilization of' casing head gas. MarketS are being sought even' is before full field' information .is available.. That fact/eVidenced by.'this; the operators have already done .an outstanding job, I think, in developing markets for the great bulk. of the' Alaskan gas; an example' is here on the wall, Kenai gas line, City of Anchorage, general heating in the area, gas use in .the Kenai Field for -- in the lng plant, gas in the North Cook' Inlet being brough~ into the lng plant, gas from Kenai going into the ammonia plant, gas from Beluga generating:.power, eVen go so far as to heat hot- houses down there. So things are to the point now to where We have' to take another 'look at putting together some economics based on the volume of gas predicted now and also at it's rate versus time and · Volume. And we can already see that this has changed the plans that brought Us together with some hope originally. The volume for a Very short period of ·time' is too great~ to bring a~und this WI:'ST ~IGH'I"H AVENUE: ~ SUITE: 277-4713 ANCHORAG~o Ai~ASKA ,, This documen! is acquired by ..... from Petroleum Publlcation~ Inc. with the understanding that It may be reproduce,~ for Inter-company use only· 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 - 43 - way to have any hope ·that this line would handle actually much more than has been generated .out of this field itself. Now look- lng perspectively, looking again at the possibilities of treating this gas on this side, and the economics do not look good foz doing much more than taking the heavier end off. We Also.asked Brown and Root to take a look if there was any possibility of bringing gas quite a ways south and getting around below the trench. Now even' going off the bottom of the scale of your map here we're still in' forty fathoms of water which gets us up to 265-.foot laying depths; your'equipment is red-lined at about' 170 feet..' But they're going to see if there's any way by utilizing extra high tensile pipe,what' length they can go to string' it, if there '.s . any possib~lity of getting over it. Now I don't think we can leave these things set. I think we have to at least take a look at' them. BUt I don't want · , i tm misguide you' that the'answer is only getting over. .here , because even'if it becomes feasible to get to this side as an alternative there still exists no ready market for this gas, considering the cost. of taking this low pressure'wet gas over to this-area. When . . you start t° add uP the cost of' doing any of these plans, and for examPle:, the plan to get around this way,if'it could have been dOne -- and again you have to go back in time just a little bit -- if, 'it could have been done at that time, in excess of $25,000,000.00 Well, you see if you were 'talking about a hundred billion feet, you divide $25,000,000.00 .by a hundred billion feet, that's 25¢ This document is acquired by '''': ''~'' '~: ' . ." from Petroleum Publications Inc. with the unders, tanding i'hat it may be, reproduced for intc~r-comp~sny use only. & R COURT REPORTi:'RS WEST EIGHTH AVENUEi-~' SUITE ANCHORAGE,' ALASKA. 10 1! 12 13 14 15 .16 17 18 19 2o 21 22 23 25 - 44 - an mCf to deliver this gas at this point still untreated. Now. that by itself is not in ~ good position to compete with other supplies -- I don't mean just in Alaska -- I mean supplies attract plant investment in other areas, in the South 48 or in other countries. Gas at that price, is just not attractive to bringing in plant investment. So where we are now is trying in whatever way we can to establish -- first of all, if we can get over here in some way, if we can', to establish the minimum cost that we can get over there, then' with'~his thought as a point of departure,, to see whether the market that could be available can , stand that charge on the gas. of course, .it has other dry gas in the area that's still aVailable. I think we.'ve reviewed and. brought you up to date on 'how we followed the progress of this in the initial stages.. We're continually talking ~'together, we're continuing to~ eValuate any. plan that's presented, and as 6f this time ~there is no concrete way of getting that gas to a market place~'~with a market that's known. But we. will' continue to find any use that can be~. generated to establish a market~ for the gas. That con- cludes the testimony. MR. MARSHALL: Thank you, Mr. BradfOrd. At this time I'd like to recognize the .presence. of ~r. Thomas E Kelly, Commissioner of the~. Department 'of Natural Resources, in the audience, and I would like ..to depart from the usual, procedure slightly,, in view of Mr. Kelly's pressing schedule this;.afternoon, and ask him if~ This document i, acquired by, "i:'' ';. ..... : ,', ' '"'! Publications Inc, with the from Petroleum undm'standlng that it may be reproduc~.d for inter-company use only. & R COURT REPORTERS WEST EIGHTiH AVENUE ~ SUITE 5 27'7-4713 ' I 10 11 12 13 14 15 ,16 17 18 19 2O 21 23 - 45 - he would like to ask any questions or make any statements at this time. Mr. Kelly? MiR. KELLY: Mr. Chairman', I just want to make a few comments. I want to commend especially the members of me indus- try for their well organized and very excellent presentation this morning which certainly gave me an opportunity to hear first-hand some of'the situations and the problems th~.they're now confronted with on .the use of the gas that~ we now have in the offshore Cook , Inlet Fields. I'm sure that the Oil and Gas Conservation Com- mittee'will work with all diligence and dispatch in arriving at a reasonable .and"equitable and fair decision to be handled in this , matter. I~want to reiterate ~ne thing,that the State Department of Natural Resources is vitally concerned on this matter; that is 'on the. util.ization .of casing head gas, the flaring of gas that's now going on in the Inlet; and that we stand ready also to help in any.way we possibly can through any means that are at our disposal to encourage, to assist in~.other means for utilization · of this gas... I would like to emPhasize one point that I think needs to be brought out. The' Statutes~ tha~ provide for the use,~ the ben.efici~l use of gas, were written a number of years ago be- fore it was anticipated that'a situation would arise that you are now faced with out in ~the middle of .the Inlet. And althougk it defines~ in very broad terms what is beneficial use of gas, tke situation has changed considerably~ 'thaC is, from the times when there was no.~ operation whatsoever in the middle of the Inlet. So Thi~ documen! is acquired by 'f',~ .... '~ ~; ~'[~', ,''~''''~ !~'~' from Petroleum Publications Inc. with the undm'standing that it may be reproduced for inter-company use only. 10 1I 12 13 14 15 16 17 18 19 2O 21 - 46 - O1 This document is acquired by from Petroleum Publications inc. with the und~tanding that it may be reproduced for inlet-company use only. R & R COURT REPORTERS 825 WEST EIGHTH AVENUE ~ SUITE ~ 277-47~3 ANCHORAGE, ALASKA i just point this out that this Statute that was implemented .and put into effect a number of years ago -- not to say that it would be arbitrarily changed, but it can be looked at and very closely scrutinized. Finally I would like to take special note and commend both Union and Phillips for their .attitude.. This is the approach that we like to see, a positive approach, towards seeing if there's not some reasonable means to collect all of the gas 'that's being flared, or at least all of the gas in excess of what is actually', needed for heaing and other uses on the platforms and . on the onshore facilities, and to .find some means of disposing of this 'gas other~ than the means :hat's currently being used or that will be in the future, even' during, this period of peak gas production. This. approach we really appreciate, and we hope that all t~e other members of the industry will cooperate to the fullest with both Union and Phillips or whoever else it. may be who's attempting through the best means, the..technological 'means that they have, to decide whether or not it's economically feaSib] to transport this gas to a point of sale or disposition; and will work with them with a complete, open mind and a. positive approach. . I think this is the thing, this is the type of demonstratiom of collective effort and coordination that we all like to see and helps our position as far as the State government~ is.con- cerned, and we hope that certainly before tOo long some rea$onabl~ and justifiable solution will be arrived at. In any event, I 8 ,10 11 12 13 14 15 16 17 19 2O 21 23 - 47 - really appreciate the opportunity to be able to sit: in this mor- ning and hear all sides concerned, and i'm sure t:he Commit~tee will act with all haste in coming up with a very reasonable de- cision -- at least, one that we can all live with. Thank you, Mr. Chairman. MARSHALL : Thank you very much. MR. HOLLAND: Mr., Chairman, I did.have on closing state- ment: that: I would like to make. It shouldn't get: us more than a minut:e or so Past t:welVe o'clock,. 'if we could complete it at this time.. ..... ~< MR,.MARSHALL: Fine. ..Let's have it, Mr. Holland, and we will save the' Committee's questions ~.for after. MR.. HOLLAND: Thank you.. (Mr. Holland reads the' prepared closing statement attached to this t:ranscript:.) There's one further housekeeping matter and that: is the formal ,, presentation of~ the exhibits. There are fifteen in number., I ~be- lieve,, and I would ask tha~::r, hey';.~ made. a part: of t:he record. ~ . , MR.,. MARSHALL: If I hear no objections from the Committe~ or its advisors we will accopt: all' fifteen exhibits into the record MR. ANDERSON: Mr' Chairman, I would..'like t:o ask one , other .,thing.: or ~wq~'~o~her things. .To set the record straight, I , 'don't believe' you accepted the .qual!fications for Mr. Murray Todd or Mr. Larry Bradford, and 'the second point is that t:he testimony given was a joint: t:est:imony by. Union and Marathon in tho Trading , Bay Field. O1 This docum~l il ecquired by ~ '~' Publicetion~ Inc. with the undm'st'~ndlng thet ii m~y be reproduced for inter.compeny use only. R COURT REPORTERS WEST EIGHTH AVENUEI~-~ SUITE fi , ~ ANCHORAGE, ALASKA i . 10 11 12 13 14 I5 16 17 18 19. 21 22 23 24 - 48 - MR. MARSIiALL: The Committee will accept Murray Todd 'as an expert witness. You, I believe, did not give us the qualifi- cations of Mr. Bradford; at least, at the time we felt that they ~ren't in sufficient detail. I wonder if when we conclude our meeting after lunch at 1:30 if you would review those qualifica- tionS? MR. ANDERSON: Certainly. .MR.' MARSHALL: Thank you. .The meeting is adjourned. '(At' 12:00 noon proceedings were recessed until .1:30 p.m.) MR, MARS PL~LL: Meeting will please come to order. R, the hearing.:~hich was initiated at 9:.30 this morning, at this'time I woUld like to' state.that the Committee will accept the, qualifi- cations of all witnesses ~hat testified this ,morning. The Corn- , mittee will ,ask its,,questions to, each of the witnesses in the order that t, heY were presented ,this morning and' progress in the order that .ghey 'were presented., Murray Todd was the first witness I'd like to~;~hear questions from the.Committee and its ,advisors of Mr. Todd. Q A This document is acquired by Publications Inc. with the undm'~tnnding thst (By Mr. Gilbreth) Mr... Todd, you mentioned, made a state ment in your testimony that' t:he nitrogen content: of the ,, .gas was critical 'towards .secondary purposes. 'Did you mean this in terms of'secondary recovery? the No, I.,was referring to/utilization of gas for extraction of chemicals, chemical products, or for liquifying ghe from Petroleum rosy be reproduced for inter-company use only. & R COURT REPORTERS WEST EIGHTH AVENUE -- SUITE ~ 27'7-471~ ANCHORAGE, ALASK~ methane itself. Nitrogen presents a problem in either case. in the Trading Bay Field what type of a gas fluid ratio do you feel would represent an efficient lifting ratio. MR. MARSHALL': You'mean the Trading Bay Unit? Trading Bay Unit, 'Pardon me. I'.m not sure that I completely understand the question. You mean from the point of view of artificial lift? 10, 11 Yes. "You testified that. you had a GOR of approximately .306. cubic' feet per barrel.. How many cubic feet per barrel.of gas would you'conSider to be an efficient 12 13 14 15 16 A lifting volume ? 'say If we were to relate this to artificial lift,/through a gas. lift.mechanism we would artificially increase the .gas/oil ratio by injecting.gas down the annulus of the well and we would be' looking at a total gas-liquid ratio 17 ~8 Q 19 2o 22¸ 23 A ¸25 of., perhaps 800 cubic feet per barrel. You mentioned that sometime in the future you're going ., to,have, t° have some additional gas.. I believe your gas usage requirements would exceed that available from pro- duction, and that you would have to have some additional gas. Correct. That's correct. Have you made any studies to determine if this addigiona] gap would cost you more'than storing the gas now in the. This~ documenl is ecqulred by,, i'. : "" ," ,' ' , '; :,, ',,? :,:i',~'~: from Petroleum Publications Inc. with the understanding th;~t il m.y be reproduced 'f~r inter-comp.ny use only. , . R & R cOuRT REPORTERS :i 825 WEST EIGHTH AVENUE i---- SUITE 5 277-4713 ANCHORAGE,' ALASKA 10 11 19.¸ 13 14 15 16 18 19 20 21 9.4 A Q A A A Q present oil zone? We have not made any studies with regard but--as I ~nen- tioned in my testimony, 'we do not feel at this time that it's feasible to store gas in some shallow zone. No, in your present oil-producing zone. We really couldn't consider storing gas in the oil reset voit itself and then withdrawing it don't believe, since much of the gas that we would injec would go into solution dUe to the. fact that the oil is so undersaturated. But it would ..Still be .aVailable. produced with..';the oil at a later date, would it not? At a much, much later. date. ,. Each barrel though that came out would have some in solu. tion, would it not? Each barrel 'of oil .Pr..oduced will always have some gas in s01ution, that's correct. MR. GILBRETH: That' s. all' I have. ; (By Mr..Marshall)I Murray, I'd like to ask you, do you · know of any other. Cook inlet gas that has as high a percentage of nitrogen as .the gas in the Trading Bay Unit Field, McArthur River Field? I' do not', Is this high nitrogen content gas suitable for. motor fue Yes, it would be ..... This docurnenl is acquired by " from Petrolebm Publications Inc. with the understanding that it may be reproduced for inter-company use only. R & R COURT REPORTERS 825 WEST EIGHTH AVENUE ~ SUITE ~5 277-4713 ANCHORAGE, ALASKA 10 12 13 14 15 16 17 18 19 20 21 22¸ 23 ~24 25 FLR. MJkRSHALL: That concludes our questions of F~. Todd. \' We'll go on to Fir. Pedretti. Does the Commit~tee have questions of Mr. Pedretti? · (By ¥~r. Kugler) Mr. Pedretti, did you present or talk about Exhibit f/9, or was that Mr. H0rton? Q Well, I did calculate the productivity of the gas, yes. A I see, is. your -- shaded in red, is that casing head gas exclusively? Yes, sir. A perhaps ~you said thisbe, and. I missed it. What is the GOR in. your Hemlock in the Trading Bay Field? :.. '~&ll, in the Hemlock is -- what I' mentioned before, was Q A Q, me'see.- 242 cu~bic, feet per barrel. And in the Middle Kenai? In' the Middle Kenai *it's 268. ,, And you expect to get..~up to 18,000,000' cubic feet a day? Yes,~ sir. %/%is .is proVided that we'll have the productic that is forecast, to have 'withi. the water:injection project. BY Mr. ~KUgler) That is all? B~ Mr. Marshall) I have a question. Mr. Ped~retti, you made the Statement 'that gas injected int© the producing horizon would result in an uncontrolled migragion Of the .gas in the,~ reservoir. Would.~ you kindly ·amplify ~ that state me n t ? ,At,this time we're .sti~l in .the process to learn the ., geology of the Trading'Bay Field, and it won'~ be advisa- ·, A Q A & R COURT REPORTERS WEST EIGHTH AVENUEI~ SUITE 277-4713 ANCHORAGE. ,ALASKA PubJjcatlon~, Iflc, with the understanding that it may be ~Iep~'°'C:luc~CI for Jniter-company use only. 10 11 19. 13 14 15 ¸16 17 18 19 20 21 9.9. A b!e to inject any gas'in a. formation until y~u do have a definite idea of your structural positions in the field, or the structure. The only problem is the fact that we have so much lenticularity in the field, we will lose a little bit of the control where the'gas 'would go, and number two, the fact that we still don't know if those faults are barriers, We don't know if the gas will be confined to that particular block. So that's what i mean when I talk about uncontrollable migration of gas. MR. MARSHALL: Thank you. Are there any other,., questions . of Mr. Pedretti? We'll then go on .~o Mr. Horton. Mr. iGilbreth? Q (By Mr. Giibreth) Mr. Horton, did I understand you to say that there were 20.,000,000 mcf of gas :available, in thee five-year period in the Trading Bay Fields? That's correct. That ~represents the portion of this cu~rve that's doagonals are. cross-hatched in 'red. That is th~at 20,000,000 mcf. Q Th~s would all really be surplus gas then? A Prior to the time tha~ we would require an additinnal source of supply as indicated by the greem thalt' s,correc Q. Do you have any information on what ~he LPG conten~ of this surplus gas would be? .Total B'a~'rels?. , I Believe it is included as part of the attachments A an, B ~.~o Mr. Pedretti's testimony, end'we did not prepare'an exhibit to be shown here, such as could be shown om a similar .type setup~ but on Exhibit 8 attached we have a R & R COURT REPORTERS' 8215 WEST EIGHTH AVENUE -- SUITE I~ · 277-4713 ANCHORAGE, ALASKA This document is acquired by I from Petroleum Publications Inc. with the understanding that it may be reproduced for inter-company use only. _ 10 11 12 13 14 i15 16 17 18 119¸ 21 23 methane con~ent of 88.5% and e~hane of 2.46, amd this is in the Middle Kenai zone now, and you gentlemen will all receive a ,copy of this so that you'll have this informa- tion available. And propane of 1.59, and the GPM appar- ently there exists -- and please correct me if I'm wrong Juan -- propane 0.94 -- and is that gallons per million cubic feet? GPM? Or what 'does that refer to? '~ MR. PEDRETTI: The total condensation of the ii'quid will be 1..!.655' gallons per mcf. . MR~ GILBRETH': Thank you. .That MiR. MARSHALL: Are .there any further question from the m~mbers of the Committee or its ;advisors? Are there any questions from'~any members of the audien~.e of the witness? Fine.: We'll go on .then to Mr. HamiltOn. Are there any questions of the committee or its adVisors on te~tiknonY o~;~ ~r.. Hamilton ? ~ir. Oilbreth ? . (B~ Mr. Gilbreth) You indicated in.your testi.,mony that A sometime down the' road it.will be necessary for your comPany ~o acquire makeup gas. Have you or..yo~ur, company made st:udies to determine t:he economics of buying makeup gas~ 'l.ater as compared .,to a~temp~ing some method of storing or reinjection at t:~his time? We ,have, as I bel'ieve we mene~oned ghe poss~b~l~gy o~ s~or~ng and means of seor~ng eh~s';gas. How aboug from the standpoing of reinjec~ion oil zone? ,~r~-~.~ ........ '""'"" ...... from Petrolebrn This document is acquired by ~ ...... ~ , " . Publications Inc. with the undid;la'nd ~g that"it may be reproduced fdr inter-company use only. . WEsT EIGHTH AVENUE T-' SUITE 277-4713 i ANCHORAGE:, ALASKA 10 11 12 13 14 15 16 17 18 19 2O 21 23 A A Well, we're ,still contemplating which type of secondary recovery mechanis~ will be used~ here, and our plat form is limited in the amount of equipment we can place on it and if for instance we decide water flood is the way to go, we cannot -- we would not haVe room to have gas injection equipment available on the platform. If the water flooding .does not prove feasible at this time, is it your opinion that you probably will, inject gas or attempt some form of gas inj~ection? There is a good possibilitY, we .have not ruled out gas injection as yet. MR. GiLBRETH: That' s ~,,all I~ have. MR. MARSHALL: Are there any further questions from the Committee? . Mr. Larson? .... Q (By Mr. Larson) Does ~is gas produced have a very high nitrogen content? A The nitrogen content is much lower than, theTrading Bay Unit. The exact figuye was -'- MR. CAMPION: One and,.,a half percent. A ---one and a half percent. 5~ 1.. % nitrogen? A Um-hm. Q Do you have available gas analyses? A Yes, we do. Do you have -- MR. C~iON: I have gas analyses. This document is acquired by ' from Petroleum I Publlcation~ Inc. with the understanding that it, may be reproduced for inter.company use only. ... R & R COUr~T REPORTERS 825 WEST EIGHTH AVENUE -- SUITE !~ 27~-4713 ANCHORAGE, ALASKA 10 11 12 13 14 15 16 17 18 19 20 21 23 24 - 55- Ail right, fine..We'i! get to them ~ater then. That's about all I have right now 'except would this 1.5% of A nitrogen .content have an adverse effect on pr0dnci~g liquids or iiquified methane or chemicals from this gas? I personally don"t feel qualified answering the pro- cessing end of the gas, but it would be my opinion that it would not, but I would call one of our other wit- nesses here to answer that question, if you'd like. YR{ !XLARSHALL: perhaps We can hold that question for Mr. L~rson' Thank you, that s all I hmve. Bradford./ I would 'like to ask. of all the representatiyes,of all the witnesses, that is, a copy~ of the gas analysis -- a typical gas analYsi~s -- of .the fields which, you have been discussing. I believe th~s 'would be good bac~kgrou~nd data~ for the~ Committed,and 'in 'one of our exhibits I know for sure we have such~ an anakysiS; , ~I woUld ,very much appreciate if the other representatives would furnish the committee with these, analyses, if. there are no fur- ther questiOns from the Committee or its advisors, are there~any , questions '0f the audience of this witness? we~il proceed then to Mr. G%les. i~m sorry. Mr. Champion, we byPassed you. That's perfectlY all right. (Laughter) ' M~. C~L~MPION:'/i wasn~ t~ going to s~y anything~.:if , · , didn' t. ' ~' ~ ~,. MR. MARSHALL: Are there an3. questions of Mr. champion? Q '(B~y Mr. Gilbreth) I',d like to ask Mr.Champion what volume of LpG~s are being flared each day in ghe g,,as 'and w~at would the total volume be in the surplus gas chat O1 ' ' from Petroleum This document is acquired by Publications Inc. with the understanding that it may be reproduced for inter-company use onty. ' & R COURT REPORTERS WEST EIGH~rH AVENUE ~ SUITE ~ i 2")7-4713 ANCHORAGE. ALASKA .1 10 11 12 13 14 16 17 18 19 2o 21 22' 23 24 25 Thi~ documenl is acquired by A A Q - 56- you have shown in your exhibi-a? Well, I do~t. have the figure offhand but according to our GPM content we have 4.25 gallons per mcf, and I think by simple mathematics it could be multiplied out. MR. GILBRETH- That's all i have. MR'. ~tRSHALL: Are there any other questions? ~Xir. Kugler (By Mr. Kugier) One question. You said 36,000,000 cubic feet of gas would, be flared at the Granite Point plat- form? Mobil's? That's correct. Over ~the next~i:t~enty-year life of the field. I may have given the impression that i~ .was. from the time that we become in a deficit' position,, but 'that is.for the next twenty..years. We anticipate 36,000,,000 mcf being flared and we'll utilize 35,000,000. The tota is 71,000,000 mcr. ;, That's not twenty yea=s, it's -- you.reach.a'deficit point before the twent~y years? ; We' reach a deficit point in eleven years, in mid,year 1979, but the 71,000,000,000'figure refers., to the next twenty years. Until .the time we reach a defici~ I think' it's what? 53,000,000 mcf we intend to produce and.we'll use 19,000,000 of that. ,.; Now I'm not clear. Over the period of the next twenty years that we can , project the life of this project, we anticipate producin from Petrolebm Publicationl. Inc. with the understanding lhat It may be reproduced for inter-company use only, R & R COURT REPORTERS 8215WEST EIGHTH' AVENUE -- SUITE ~ 277-4713 ANCHORAGE, ALASKA 10 11 12 13 14 15 17 18 19 20 21 23 25 A A, A - 57 - 71,000,000 mcf of gas' Of this 71,000,000 we anticipate using 35,000,000 for fuel and other uses immediately to our platform. and shore site. Therefore, 36,000,000 will be flared. (By z~ir. Larson) In other words then, you will be flaring this 36,000,000 in the next 'nine years, ten years, ~some.- thing' iike tha~? EsSentially,yes. . (By F~. Marshall).Mr. Champion, when.you use the word 36,000,000 you*re speaking about 36,000,000 mcf? Me£, that~s correct:..:.'..!t~s~:.3fi,O00,O00,O00 cubic £eet of gas. 36,000,000,000 cubic .feet. i believe you mentioned that ,. at. a certain point ini: time:: you would .be.purChasing· or yqu will be looking tp purchase 42,000,000 cubic feet of gas per. day. Could you refresh my memory on when this need would arise? Well, this need woUld arise if we instigate a-gas Sn- jectiOn project.' N°w?~ this woUld be necessari.ly makeup~ gas to rePressure the. reservoir, and. in all lSkelibood we~ probably wilI not be going to a gas if water flood ,, proves ~Dbe' ecOnomic as it.appears right now that ~i.t p~obably ,~i~::i, 2i be economic, or we"re very hopeful that ,. iT will be. We will n.ot. require a preSsure m~ainteDance o~ gas injection project, but if we do, we would r~quire This documen! i~ acquired oy Publicationa inc. wii'h the undmstnnding that it may be 'reproduced for n er-company use on y. & R COURT REPORTERS WEST EIGHTH AVENUE ~---- SUITE ~ 277-471{3 ANCHORAGE, ALASKA 10 11 14 15 16 17 18 19 20 9.¸1 9.2 23 - 58 - t~.e early 1970 s the 42,000,000 mcf of o=s. some'time in F~R. MARSI-LALL: Are there any further questions of Mr. Champion? Are there any questions of the audience of Mr. Champior If not, we'll proceed with. Mzr. Giles, Questions for Mr. Giles? Q. A Q (By ¥~r. Kugler) Mt.Giles, how many cubic feet of gas will the flared or Vented from your two platforms in Granite Point in the next -- by 1979 you have that you will be at the break.even point. Deficit condition. Yes. i gave the figure of 34,000,000 mcf. 'A 34', 000,000. . .. Q Which is 34,000,000,00.0 cubic feet A Mr ~ Giles, what would the eighty billon cuft figure of eighty billion. What was that? -- you gave a Q That was the area Under the'produced gas curVe for the A life of the field. MR. MARSHALi.~:' ~Are there any further question o.f Mr. Giles. .Mr. Larson) You made ghe remark that the eighty billion cubic feet that you will produce from the Gzanit~ , Po'int Field Will compr~ise but 6% of the North Cook Inlet gas. Does this include gas field gas as well as pro.duce~ caping head. gas? i · This is'the--.the 6% is the casing head gas, produced gas, Under that curve on E=R~ibit' 15, divided by the esgimated 'reserves of ~..dry. gas well gas in North Cook O1 This document is acquired by ,,'"~"' ' :, , ',' frdm Petrolebm Publi~tion& Inc. with the und~t"hding 'that it may be reprodU¢~.d fo'r inter-company use only. R.& ~ C:OURT R~PORTERS 82S WEST EIGHTH AVENUE ~ SUITE ^NCHO~^~. ^~^$~A 10 11 13 14 15 16 17 lB 2O 21 22 24 A Inlet Field. . T~,~t clarifies ~"' ~'~ Thank .you ~ ~n~ point. - 59 - (By Mr. Marshall) Mr. Giles, has your company made any preliminary investigations into the feasibility of injecting gas for additional recovery purposes? · yes. In the Granite Point Field? ) ·., Very definitely. Would yoa care to' give us an insight on how this might lq.0k?' The feasibility? Ye:s, I am 'surprised bY your question because i thought i had covered that pret,ty elaborately in the testimony, but let's go through..~it again. The main prob~lem is the m~bility ratio. The.~obility ratio of gas to oil is quite poor compared to the mobility ratio of water to oil, so the gas wo.uid[ just'j .channel through the more per- meable streaks and not give Us the recovery .efficiency, the sweep' efficiency .~that We would get with w~ater.' Water is a good deal Cheape? than a gas injection Project. There are a number of teas. on why we much pz'ef~r water if i g will in fact work~.~i and ~.:this is why we want:~ to first start witl~.water injelctivity tests, to see. ' ~: The feasibilitY hing~<s .on .the adaptibility of the .for- mation to take water, which we do not know yet at this t~me?' , ~ · O1 Publications Inc, wilh the undaeltanding th.t il m~y be reproduce,5 for inter-company use only, R & R E:OU~T ~EPO~TE~S 825 WEST EIgHtH AVENUE'-- SUITE 277-47~3 ANCHORAGE, ALASKA 1 A That is 'correct. We~ve go-a to field prove it. We've done the technical work. l~ow we ve got to =ppiy it in the field to see if the ~- ,~ - . te~,n~=ai data is well supported MR.' MARSHALL: Karl -- Karl Vonder Ahe (By Fzc. Vonder Abe) Mr.Gi!es~ if you injected gas into the formation, producing fotmation~ now when you :.have no gas cap, couldn't that gas .just simply go back into 7 ether than channe'. solution and just repressure as such, r ~. W~ll, this requires a complicated answer so you'll have t.o'.bear with me. Quite frankly we know that'..within reaso~ 10 we~'re going ~o be. be!Pw th~ bubble point by mid-year in 11 our field. . 12 13 14 15 Q Of. this year? · Of this year. And a ~ittie trapped gas saturation~ befor we, get into .the .full .~wing~ of the water flood~,is g~o~, in our opininn.' It will help swell the oil to~some,,~.de- 16 17 19 20 21¸ 22 23 24 25 .g~ee and block the mo~e permeable channels so ~the vater will have to go and. cgntac~ more of the reservoir ~ock. This ..should improve t~%e sweep efficiency of recovering the, oil out of the reservoir rock. But if we,put ~xtra g~s down in there the mobility ratio' is so poor with the gas that we'll jus,t be cycling~*as through'the .more per.- m~able streaks and it~: coui~ impair our later water ~ood effort. And we also would have .the same problem of compressor space if we were going, to'go'injection of gas now and come along later with~', water. ,, '"' '~ , from Petroleum Publication~ Inc. with the undecstanding that it may be reproduced for inter.company use only. R & R COURT iREPORTERS 825 WEST EIGHT. H AVENUE ~ SUITE 2'~7-4713 ~'I ANCHORAGE. ALASKA 10 11 12 14 15 16 17 18 19 2O 21 22. 9,5 ~ ¥~%RS~ALL'. Are there any further questions of Mr. Giles? Are there any questions of the audience of Mr. Giles? Thank you, Bart.~ Mr. Bradford. · Any questions of Mr. Bradford? ¥~. Gilbreth? A (By ¥~. Gilbreth) Mr. ~=~e~o~a~ you talked in~generali- ties here.about the possibilities of a p~ann on the east side of the Inlet and ~o ~=orth~ and the.field having A short life so fa= as deliverability to a plant is con- ce=ned ._ Yes, sir. ~' :. i~i -- is there any rule qf thumb that's necessary,: for de- liVerability for 'plant life,? Well,~'can use, as I say, as a basis of departure, the tw9 existing plants that are being'built now in the F0~eland. .Speaking fQr the Collier plant, it has a 45~ billion foot backing of gas over twentY years, and this was considered n~cessary to establish the economics of.the plant and the market. I can't speak directly but from what I~ve heard, the lng plant is in the range of .. a trillion foot, cubic,, feet, in its reserve backing~ for th,e plant; that's· over a'i'~period of fiteen years, which is-the minimal contract that they could negotiate with the Japanese. Something in the order of-fifteen or twenty years is de- sirable from the standpoint.-- . This documenl ,s ecctulced by from Petroleum Public~t;on~, In¢. with the understnnding thnt it may be reproduce. Ct for inter-company us? only, WE~T EIGHTH AVENUE ~ SUITE 277-4713 ANCHORAGE. ALASKA 1 A 3 5 10 11 12 13 14 15 16 17 Q 15 19 20 A ¸21 22 123 24 25 Yes. Yes, and we also have another precedent in nego- tiating with pipelines. A pipeline will devaluate your reserve over twenty years. Pretty standard. Is there any minimum amount o-F gas that's needed to justify a plant in a range like this? in my estimation -- If there's a market, of course. If you're ta~iking of a plant to justify the market, the conversion bf the fuel to use, it's in the range of. fiYe hundred million c;ubic feet. In other words, Collie: is considered a rather~ D~'eak even plant, considering that th? primary disposition of the markets goes back to -- t.o export to the ~south 48, or to Japan, you se~e, an~d they have to recover the increased expense of market- ing back. by an inexpensive feed stoCk and a considerable reserve which is more pointed toward your question. Do you have any information on what a -- well, have you made studies on possi'qiiities of stripping the gas ~and sc forth? On the 'east side? ~ We have done our own individual studies and we are .gather ing data collectively ~to see if this will add any advan- tages to that we don~t see ..individually. Now individual we!ye looked at the ggs coming in from the Granite Point ' o and do not see that a an~ the Middle Ground ~Sno~t area, ~ plant can be built. Now ~ooin. g back to testimony of ;ii ",. ;' from PetrOle'urn This documen! is acquired by Publications Inc, with Ihe understanding that it may be reproduced for inter-company use only. r & R COU~T ~EPORTERS 27¥.4713 ': ANCHORAGE, ALASKA 17 10 11 13 14 15 16 17 18 19 2O 21 A lo ~n, ~n~ ~ their gr ouo January ~:-' Pan American stated studied this; they found the same thing. And then would you say as it looks right now that there' .just not enough in it to jus~gify a plant to process this gas? it strikes me -- this may be rather impulsive, but one has -- for example, the gas coming down from the Granite Point area, that's already been refrigerated -- if. you want to sPeak of it this way -- to thirty degrees, so the bult% of the marke~tabie product .has been recovered, and it's recovered ask condensate 'right at the shore and re, mixed with the oil ~o its capacity and Big p~ress...u, re limitations to handle this., 'Now it's really enly ~he propane, itself' that is left over. Well, will the conditions .~'~--~'is there any sit~uation wherl tbe conditions can ~improve~ beyond what they are right , now where it would be~. feasible to process this gas? I:~wish I could say i knew ~what they were I can only a~sure'you that We're....: looking. One other problem ~hat · w~ run into, i.remember that t. prefaced it with tw.9 things and only followed through with one, is~ the fact that when 'you finally decide that maybe a plant is~· feasible-- let's use.~ this as a point of departure -- , i.t's still two and a half years before your plant is .built and on' stream~ ~and .looking at cUrves~like this, This documenl is acquired by from Petrolebm Publications Inc. with the understanding that It may be reproduced for inter-company use only. r & R COURt REPORTERS 82S WEST EIGH~IH AVENUE~ SUITE 5 277-4713 ANCHORAGE, ALASKA - 64 - from the time that we actually have enough reservoir · data to substantiate cap~.tal coming in and utilizing this, you're over in the miacl= of this curve and then two and a ~=zz years later before you~ on stream the big x "~ ' ouz~ has gone by. And this is why I~m asking, is it ever going to be possible to process casing head gas in Alaska? On present thought? 9' A Well, on any significant, scale I~m at the 10w point of 10 one of these sine waves that you do in any project ..like this. For a while yo~ see some things and you star~ 12 working on them, and then you -- more information comes 13 at~ong and it's all ofi~~ the wrong side and you get dg~n to 14 15 the low. point. ! can 'only say that as we see it right now we're on a low point but we're looking to see what 16 po,ssibi!ities we can generate to get back on a high' 17 po%nt again. But particularly looking at the east side 18 19 gas, because they"re in a state of development whe=e at least· you can begin ~o ga.ther some feel for wh'at it's 2O 21 going to be down the line. Looking at that -, anti.this is. where you can do mpre specific engineering.; see the recovery of propane as really what we~ ~... re t~iking about being in the cards. .Now you talk about,the market Alaska, because i think we qualified the fact that unless you get up into tremendous volumes, fiv~e, si~x O1 This document is ~cquired by' !,,L.,.j from Patrolc~urn Publications Inc. with the undorstendlng ti~.t it mey I~e reoroduccd for inter-compeny use only, iR & R COURT r~EPORTERS a25 WEST EIGH'I?H AVENUE--- SUITE 2~'7-47 ~3 ANCHORAGE, ALASKA 10 11 12 14 15 17 18 19 20 21 q A A - 65 - thousand barrels a day, you can~- ~ export. You require a full ship hauling to export propane anywhere. I under- stand -- this is "~''~ =o=l,~ only by talking around -- that Standard Oil is putting in/depropanizer, i think the market up in this general area is about a hundred barrel, a day. The depropanizer capacity is something, like four hundred barrels a day. So you can see the market that you're talking about here locally is essentially well ., taken care of. An~ ~o get a foreign marke~ you've got to have a large deliverability over a ilong .,period of time. ~,~ YeS, you do. Very definitely. This is the first ques- , .tipn usually. .. ~' /, Well, it would be almost true tl~en to say that. the out- logk for selling or plocessing or stripping Alaskan casing head gas then is almost nil~ isn't As.we can see the basic economics at this timeI, yes'. MR. GILBRETH- That's all i have. (By Mr. Marshall) Mr.~ Bradford, would you care to corn- ^ . merit on the compositional requirements for the feed gas for an LNG plant? Or ~could the members of your gr0~p there give' ~s a little insight on'the'requirements gas- wise for the LNG -- I~,~m speaking of the compositional analysis. ,. ~ Yes. O1 ~rorn Potrolebrn This documenl is acquired by Public~t,ons Inc. with the und~stnncling that it miry ~ rooroduccd for inter-company use only. R & R COURT REPORTERS 82S WEST EIGHTH AVENUE ~ SUITE S 277-4713 ANCHORAGe, ALASKA 10 11 12 13 15 16 17 15 19 20 21 24 A A - 66 - How critical,for instance~ is a certain amount of nitro- gen or components that would ~ i~uify at rather temperatures? i can't speak for the ~ ~'~ ~' ~' - ~ P~±~ps-~..,ar=n~on group because we're not part of that and haven't really discussed that plant -'~ -~ s a confirmed fact and backed w~i~ them since · up by .reserves; they're com~nitted to it. i only remembe~ from doing some work on this previously when we Were' t_ . the Kenai gas itself is involved in the project ~a~ le,ss than a half percent nitrogen, not subject, to qhange That is the compositio_n, and that's the compositioq that will be essentially guaranteed for the life of the plant. Our Consideration ac the time -- now t~his was preliminary engineeriqg~ we were just discussing things- wa.~ designing a plant with a limit of one percent. · it. gets considerably expe. nsive to go beyond one p. ercent ~in a %iquid methane p!an~ because it recycles so much ,of your methane that the~.~expense of a..-.pignt'~.,for designing ov~er one percent goes:~up c~nsiderab!y, and sin~ce the gas does not in the foreseeable future exceed even a half a pe~rcent, my guess ~ouid ~ ~ '~ o= ~a~ ,Marathon and Phillips are fotlowi.,ng the sama ~ trend, but I don't know ~ha, t. What about percentages of ethane, for instance., in LNG process gas? Well,. you're still a littfe.~ out of my realm in talk~ing R & ~ C:OU~T ~EPO~TE~S 825 WEST EIGHTH AVENUE -- SUITE 27,7-47~3 ANCHORAGE, ALASKA O1 Thi~ document i~ ~scqulr~ Publicntions lnc, with t.e understanding thet it, tony b~ reproduce,5 for inter-compeny u~e only. 10 12 13 14 15 16 17 18 19' 20 21 about -~o o] t, ~= LNG pr ec because i haven't really been -67 - associated with it for years, an~ n~en only on an eco- · nomic planning basis, but not with any of the design ~nat s been going One,om. MR. ~RSi-P, LL: Are there any other questions of Mr. Bradford? Mr. Larson? '. Q '(By Mr. Larson)' I wonder if in your studies you've · into consideration the possibilities tha~ 'we haven~,t found all the oil we're going to find in the CoOk.Inlet area~or in the Alaskan area -- Yes, sir. . in your planning? ~Wetl~ let' A s say, not so much in the planning but in our th,inking because agai~ you're talking to one of the guys in, the Blue Sky Department, and that's kind of our job to. look ahead and see --~weil, what Will happen tolWhat we,~!re thinking about if development goes one w~ay or. the or,her, and the answers i'.ve gotten to that are,n~t t~,oo ex~ci'ting. .The signif%cant, development is evidently mU~ch further South than this North CoOk Inlet area. if additional gas is found, it .would be the best to tie it in-.to, the east' side~ 'i~f you're over on that side'.' But i 'd°n~t know of any geologic, structures nor can;our people :' tell us of any g'eoiog.ic structure tna~ are imminent. It would be presumed~ of course, that if something,was , This document i~: acquired by ,L.i[, ',] ,'.' , ] i ': ' :"i , ,: from ?etrolobm Publications Inc. wilh the understanding that it may be reproduced for inter-company use only, R & R COURT iR~PORTERS 821~ WEST EIGHT~ AVENUE ~-- SUITE 277-4713 ANCHORAGE, ALASKA - 68 - found, say, on the other s~= of the Alasxa Peninsula .l 10 11 ¸12 13 14 15 16 17 18 21 A A in the Bristol Bay area, why, then this would become another province of its own? ~viR. LARSON: That's all i ~av=. (By Mr. Giibreth) I'd.like to ask Mr. Giles, if i may, . in the Middle..Ground Shoals hearing'you mentioned that Phillips had contacted your company regarding possibili- ties of discussion some.thing toward a gas sale or con- tra~ct. Is there any f~urther progress on that,~Mr. ~iles (By Mr. Giles) Only that ', ~.: 'their studies of'i.what.~ kind of-,~an offer they could make~ should be completed this 'month, and then they will begin negotiations to try and~ work out a contract mqtua!%.y satisfactory to all parties A4R~ ~ARSHALL- Karl Vonder Aide. (By Mr.Vonder Ahe) I ilguess i should ask this of you, Mr.' Giles, just for th~ sake of comparison could yo~u tel us 'what the nitrogen content .is 'of the North Cook I~nlet gas that Phillips wil! be using? Karl, I don't remembers, that figure now. ., Perhaps there's sogebody in the room h~re that does remember that. I don't. I hadn't expected that kind of a question in thi~ he aring, so that -- .~ Well, it's mentioned that Kenai ~a~ is only one percent, and i was wondering hdw it compared to that (By Mr. Marshall) This document is ~scc. uirecl by'" ~" from Petroleum Publications Inc, with tho undm'~.t~nding m~ it mey be reproduced for inter-comp,'my use only. sort of hesitate to ask thisquesnz~' R & R COURT REPORTERS 82t~WEST EIGHTH AVENUE ~ SUITE 5 277-47~3 ANCHORAGE. ALASKA 10 11 12 '13 14 15 16 17 18 19 20 21 22 23 24 25 A 69 - Mr Bradford, because i know for a io~,s time it of a blackn~m=~ o, '-~,':~-~,,~.. it is one possible u~-e~ of gas which probably -- or. undoubtedly is more beneficial ~"~ ~.,~ just burning it. Could you, give the Committee any background on the requirements, oh, iet~s say, voiumewise, feed b~c~< ins ~laa~on. voiumewise, for a carbon '~ ~ ' ~-~ '~; ~ No, sir. I belong to one of these so-called integrated companies and we refer questions like that to Collier Carbon and. Chemical.. i can get that anSwer for yo~, but i couldn't supply it here because i really don't kn. oW.. MR. MARSHALL' Thank y. ou. We would, appreciate it if thi. , =- this would be .gOod information for us to have in the back of our heads... . :; A ford? .I' know that Collier has looked at this. MR'. MARSHALL- i beg your pardon? Collier has put this into~their .system of engi. neers, too MR... MARSHALL: Are there any other questions of Mi~+. Brad Q (By Mr'. Kugter) I haye' on~ question. In your ~,stu. dy~, wha was the total volume 9. f gas you were considering oyer th~ next' five to seven years? i believe you mentioned -- A in our original study -- Q --~ something like -- ~ Yes, we were actually>looking at eigh~ymiiiion feet a Q · Eighty million a day...- O1 This ciocumenl is acquired by ,..- ' . ~ from Petroleum Publicntlons Inc. with the understanding that it rney be reproduced for inter-company use only. R & R COURT REPORTERS 825 WEST EIGHTH AVENUE -- SUITE .5 277-4713 ANCHORAGE;, ALASKA i0 I1 12 13 14 15 16 17 18 19 20 21 ,22 25 A A .A Oyez twenty years. %~enty years. Knowing that there were peaks and valleys. But at that time the s.ta~e of development was not where it is now and it was still boded that the'se thin~s would come in in sequence, but that there'Would be through this period of time.a plateau at that level, it hasn't developed that way. Based on the evidence that was presented today, the cur. yes and everything, did i hear you mention about a hundred billion that you thought would, be the volume of gas you could congd'~ in your studies? Wei,1, I got that by listening to the testiony, adding up the surplus gas cross hatch that these fellows had. It came out about a hundred billion,on the west si~de. ~R. MARSF~LL: Are there any fuz-ther questions?from~, the Committee of its advisors? Are there any questions of the audien~ of Mr. Bradford? Mr. Gilbreth?-~ (By ~Xir. Gilbr.eth) I~d like., to ask Mr. Bradfdrd one more question. Mr. Bradfor~d, based on your work width --..work and analyses with the gas there, do you have any idea of the composite GPM cont~ent? It",s about 'two and a h~!f o~allons of proDane and less thegn one gallon of bUt~ane and heavier. Actual~y ~most of..that is butane 'T~.. re is very little pentane in O1 This documenl is acciuired by :!,.; (,,,', .~ i,. ,'~'' ,' ,~ ;,',, .;~' .. ,,,': from Petrole'um Publications inc. with the understanding that it may be reproduc¢cl for inter-company uso only, :r & F~ COU~:T REPORTERS 825 WEST EIGHTH AVENUE ~ SUITE 5 277:47~[3 ANCHORAGE, ALASKA 10 11 12 14 15 16 17 18 19 2O 21 O1 q. - 71- heavier, i think there was about ten to zzz'~een percent pentane and heavier Now ~,,~s was in the raw gas. Most of that will come out before it ever 'goes to a plant actually. (By Mr. Marshall) This pzobiem leads me to ask the question has there been any formal ~roup established in the industry of Alaskan oil operators to jointly look at the problem of utilizinz Cook Inlet gas? That is, in addition to the stoup that more or less was formed by ou~ callin~ this hearine. Is there any other ~ivis{on of~the responsibilit¥'amonz the companies that~.iooks at the overall problem? A I could say yes but not formally. You couldn't hardly.. ca%l this a formal conm~ittee, but we have what.!~ we were disCussin~ before-- We~Ve .gathered the manaaers of ail. the affected comp'anies at the top level in the~ ~as ~rouD accompanied by produCtion peopie~ and have commonly: dis- cu~sed this problem and tried in some way to :~ge~aerat~e ideas among us that.W0Did be beneficial, and t~ese ~re th'e several meetings that we're discussing, and we will , have ~more. MR~ NL!RSI~JILL: Thank ~ou. If there are no further , , questions f.,~om the audience, wq have concluded ours. Do you~ care to make any ~ closing statements%. MRs. ANDERSON:~ Mr. Ch~irman~ we have no closing sta~temen~ ~ '' ii" fr6m Petrolourn This docurneni is acquired by Publications Inc. with the understanding 'that il may be reproduc¢d fo'r inlet.company use only. WEST EIGHTH AVENUE -- SUITE 277147 ~ 3 ANCHORAGE, ALASKA ,i 9 11 12 13 ¸15 17 18 19 20 21¸ '23 i think the industry ~hu members of -' -- the induatr¥ represented here today have put forth their best foot, trvinz to ~ive vou an insio~ht into the problems that we kava and understand the prob!em:~I that you have ' '~' ~ - '~ ' '~ n~s well illustrated ~-' ~'~ . Mr. Dr~dford~ I ~nzn!~ ~ ~ things are being done. We're zoolizna for ideas, and we nope we can come up with something. · F~.RSHAL~:. mn=nm you very much. i'd like to ask, ar there any statements by anyone in the audience?' Oscar, did you raise your finger? ~ FfR. SWAN- No. i was~goi~lg to add to it that 3~e h~ve no closing 'statement either ' A l~w,yer '~ ~ . . :n=~es to say that he ha~n't , . got anything to say. (Lau~h'ter) MR,~ MARSI~kLL: In 'that event We~il declare the meetinz -- END OF HL&RING -- cl.osed This document is acquired bye,; ":,~. ~":, L', ..,,, ,!.,:, :, ,: ,,. ,, - ir~m pc,:;'c,ejrr, Publications Inc. wilh the understanding that it may be reproduced ~or inter-campeny use only. & R COURT REPORTERS WEST EIGHTH AVENUE -- SUITE 5 277-4713 ANCHORAGE, ALASKA TESTIMONY FOR HEARING BEFORE OIL AND GAS CONSERVATION COMMITTEE February 7, 1968 on , B~,~EFICIAL USE OF GAS TRADING BAY UNIT The Trading Bay Unit is located approximately 60 miles southwest of Anchorage in the Cook Inlet. The unit area covers approximately 40,000 acres . of submerged lands under lease to several oil companies. The drilling of twelve exploratory wells in 1965 and 1966 outlined a large accumulation of oil within the unit area. The participating companies in this area agreed that the reservoirs could best be developed on a unitized basis, and a unit became effective February 27, 196,7. ~ The Trading Bay Unit is situated in the Cook Inlet Tertiary Basin. The sediments in this area are comprised of a thick sequence of nonmarine Tertiary sands, conglomerates and shales, referred to as the Kenai Group, which uncon- formably overlies marine sediments and volcanics of Jurassic age. Oil produc- tion in this basin is from conglomerates and sands of the lower and~'middle parts of the Kenai Group. The principal producing formation is the Hemlock. Of the twelve exploratory wells drilled, five tested at commerCial rates. Three platforms were erected within the unit area during the summer of 1967 and drilling commenced on all three.platforms before the end of that year. Development of the field will take approximately three years, with continuous drilling from all platforms. ConcUrrent with erection of the platforms, onshore facilities were constructed at the West FOrelands. These facilities are connected to the platforms with sub- marine pipelines. The onshore site has facilities for processing the oil and transferring it to the pipeline which carries the oil to the Drift River Terminal from where it is shipped to market by tanker. Reservoir Characteri sti cs Due to the limited Hemlock development in the Trading Bay Unit at this time, the reservoir characteristics are not well defined and it is difficult to forecast accurately the production performance of this reservoir. A considerable amount of drilling will be required before the reservoirs can be outlined and thoroughly evaluated. However, with the data that has been collected to date, it is possible to produce some estimates " as to how the Hemlock reservoir will , perform. Fluid samples collected from'one of the exploratory wells indicated that the oil in the Trading Bay Unit Hemlock reservoir exists in a highly unsaturated state. The fluid characteristics of the Hemlock reservoir as determined from a fluid sample are illustrated on the attached Exhibits 2, 3 and 4. Exhibit 5 is a hydrocarbon analysis of the gas, indicating its composition. The fact that the oil in the Hemlock reservoir is undersaturated means that at the existing reservoir conditions the oil is capable of having more gas dissolved in it than it currently contains° At the initial reservoir pressure of 4300 psi there was 306 cubic feet of gas dissolved in each barrel of oil. This ratio has been confirmed through recent production tests. At .this pressure the crude is capable of having dissolved in it approximately three times this volume of gas. This means that no free gas exists in~ the.reservoir at the present time° The reser- voir pressure would have to be reduced to approximate)Y 1782 psi before the oil would be saturated and gas would come out of solution° Since the oil in the reservoir is undersaturated, the major form of natural energy which will move fluids through the reservoir will be expansion of fluids and rock. This type of recovery mechanism is usually relatively inefficient and will likely necessitate supplemental energy supplied from the surface. Various forms of pressure maintenance projects are currently being, studied. Without / , pressure maintenance the reservoir pressure would decline rapidly and could reach the level where free gas breaks out of solution, which could result in a large increase in producing gas/oil ratios. The primary use of the gas dissolved in the oil in a reservoir such as the Hemlock is to provide energy to assist in lifting the oil from the bottom of the wells to the surface. As mentioned previously, there is insufficient energy for the gas to be relied on alone for moving the oil from the extremities of the reservoir towards the wells. The amount of gas dissolved in the oil is even insufficient to flow the wells at their maximum capacity. For example, a well which would 'flow 4200 barrels per day with a gas/oil ratio of 300 cubic feet per. barrel and a reservoir pressure of 4300 psi, would flow 5500 barrels per day if the gas/oil ratio was 600 cubic feet per barrel. This well would barely flow at all if the gas/oil ratio was less than 100 cubic feet per barrel. Many of the wells in the Hemlock reservoir will produce water with the oil, particularly if water flooding is used as a pressure maintenance system. This will mean that in many wells the gas to total fluid ratio will be even less than 300, so that as well as pmoviding surface energy to maintain the pressure in the reservoir, it will be necessary to provide additional energy to assist in Produc- ing the wel 1 s themselves. Gas Utilization Since so .little is known about the Hemlock reservoir at the present time, it is possible to speak only in generalities when considering gas utilization. There are, however, some forms of gas utilization which we can predict at this ~timeo Some form of pressure maintenance will likely be required to insure maximum recovery of oil from the Hemlock reservoir. If the injection of water is used for this purpose it will be necessary to cons'truct huge water plants on each of the three unit platforms. A considerable amount of fuel gas will be required to pro- vide energy for producing the water, conditioning it for injection, and for increasing the pressure to a sufficient level so that it can be injected. Some form of artificial lifting will be required to insure satisfactory producing rates from the individual wells. One form of artificial lifting is referred to as gas lifting. With this process, gas is pumped down the well to increase the gas/oil ratio in the produced fluid. Whether this form of artificial lifting is used, or whether some other form is used, a considerable amount of gas will be required for fuel. In addition to this, each platform requires fuel gas' for comfort heating and for .the generation of electrical power. The onshore facilities have another energy demand. It is necessary to heat all of the fluids which are produced, from the reservoir so that water and undesir- .. able sediments can be removed from the flow stream. In a water flooding operation., the total heat demand is an ever increasing item since more and more water is produced as time.go~es' Ono' Also, on the onshore site it is necessary to provide electrical energy, heating for quarters and other buildings, and to provide fuel for the prime movers used by the pipeline pumps to transfer the oil to the shipping' terminal. =1 ,, The amount of gas required for fuel at the platforms and at the onshore facilities will increase from the current level of consumption of approximately , 3 mmcf/d to almost 18 mmcf/d in 1971o At this time each platform will be consuming over 4 mmcf/d and the onshore facilities will be consuming over 5 mmcf/do This level of consumption will then remain essentially constant for several years. The rate of gas production, being directly proportional to the rate of oil production., will decline as oil is removed from the.' reservoir. Eventually, the rate of gas .production will not be sufficient to supply the huge energy demands and gas will be , · required from some external source. Current estimates indicate that this will take place in approximately ten years. The cumulative' gas production will exceed the cumulative gas consumption during the next ten years by approximately 66 million mcf. Exhibit 6 illustrates the estimated rate of gas production along with the estimated' rate of gas consumption during the next several years. Satisfactory sub-surface storage reservoirs for excess casing head gas are not available in the Trading Bay Unit area. Sub-surface storage would usually be accomplished by injecting into a depleted reservoir or into some type of cavern. There are some shallow gas and water sands within the unit area; however, they are currently under stable conditions and injection into them would cause over-pressuring. This would cause serious problems during field development since penetration of over-pressured zones is a hazardous operation. Also, much of the 'gas injected could be lost in the reservoir into which it was injected and might never be recovered. In considering secondary types of gas utilization, it must be recognized that excess gas would be available for secondary purposes for a period of approxi- mately ten years, and that even during this period of time the supply of gas that would be available will decrease since the production rate will decrease and fuel demands will increase. Of further consideration is the location of the collected gas~ Trading Bay Unit gas, being available only on the west side of the Cook Inlet, will not be available for use on the east side without an enormous investment in pipeline facilities. The volume of excess gas which may be.available for use outside the unit will have a declining rate which precludes the possibility of making a long term committment. It should also be noted that the high nitrogen content of the Hemlock gas may render it undesirable for any use other than heating. The re-injection of casing head gas into the Hemlock'reservoir may be feasible; however, the volume of gas is not sufficient to have any appreciable pressure maintenance effect, and the cost of re-injecting gas will be extremely high. Another possible consideration is the removal of the heavier l iquifiable hydrocarbons in the gas through an extraction plant. Again, the feasibility of this type of plant cannot be determined until more is known about the reservoir. Summary In summary it is apparent that the Trading Bay Unit gas problem cannot be resolved until more is known about the reservoirs within the unit area. Informa- tion at the present time indicates that the amount of gas associated with the oil in the Hemlock zone is relatively small and that large volumes of gas will be required to provide fuel for equipment used in the exploitation of the oil field. There will be a period of time during which gas production, exceeds gas consumption; however, this period of time is relatively short and the difference between the · two numbers decreases within only a few years of field operation. Utilization of this excess, gas can only be studied accurately after mOre is known about the unit reservoirs and after the method of developing the reservoirs has been determined. EXHIBIT HYDROCARBON ANALYSIS OF SEPARATOR GAS SAMPLE Component MOL Per Cent GPM Hydrogen Sulfide Carbon Dioxide 0.13 Nitrogen 13.40 Methane 70.32 Ethane 8.61 Propane 5.16 iso-Butane 0.73 n-Butane 0.95 iso-Pentane 0.15 n-Pentane 0.12 Hexanes 0.2.l Heptanes plus 0.32 lO0.O0 1.42o' 0.239 0.299 0.055 0.043 0.045 0.147 2,2~ Calculated gas gravity (air = 1.000) = 0.744 Calculated gross heating value = lO81 BTU per cubic foot of dry gas at 14.696 psia at 60° F. COllected at 150 psig and 60° F. in the laboratory. Reservoir fluid saturated at 1767 psig and 180° F. !~: ':::::'i:".'i::"i::.:i :.i:!:!i,:i::~ :!:;;.!i!]':!~:~.i;!::::::::!! .... ~ .. : . . .... ' ..... : ..... ' - '. ' .... :.;.'--~..:; ...... '.. '.".~." I::.~';" '1 .... t ......... I .... I... , ........... ' .... :-::': :'.'", .... ; .... I"" ' ;...:". .... ".' .:::~'.':! .: .!::: ;I '.;: ~' " ~;:' : : · ' I'; i -~- .:.;-..~.-'=_ -.L~.: ......~J__ ~;..' .'.; ;J_ '.~.' :.,~J.-' ~ '..'- .". 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', .... · ....... , ',i '-'...... ! , ,,"',,'. ," , .O10 1 500 1000 1500 2000 2500 3000 , 3500. 4000 RESERVOIR PRESSURE -- PSIA EXHIBIT 10 HYDROCARBON ANALYSIS OF SEPARATOR GAS SAMPLE Component MOL Per Cent G P M Hydrogen Sulfide Carbon Dioxide O. 13 Nitrogen 13.40 Methane 70.32 Ethane 8.61 Propane 5.16 i s o- Butane 0.73 n-Butane O. 95 iso-Pentane 0.15 n-Pentane 0.12 Hexanes O.11 Heptanes plus O. 52 100.00 1.42o' o.239 0.299 o.055 0.043 o.045 0.147 Calculated gas gravity (air = 1.O00) = 0.744 Calculated gross heating value = 1081 BTU per cubic foot of dry gas at 14.696 psia at 60° F. COllected at 150 psig and 60° F. in the laboratory. Reservoir fluid saturated at 1767 psig and 180° 7O '7 X IO INCHE:S #AO£ IH . . . · KE:UFFEl &' E$SE:R CO. 6O ,~ 5O , 40 3O 2O 10 0 1967 1968 196;9 1970 1971 1972 1973 1974 1975 1976; 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 TIME, years TESTI.X!ONY FOP, :\LASK..\ Oil, FEI~RLb\P,Y 7 1905 ,gENF, FICI:\L USE OF GAS '['R:\DI:~,, BAY FIELD The Trading Bay Field was discovered in .June, 1.o5 The :'.!onopod platform was erected during the st~;r~mer of 1906 and development drillin2~ com~aenced October of that year; the eleventh well is being completed. Oil production has been developed from the Ife:ntock and ~.liddle Kenat For- ~:~ations. These formations have been faulted, fo!ded and truncated creating a complex geologic structure. The p'rincipal use of ;las recovered from oil production is to provide the necessary ener1;y to move the oil from the formation and up the we1.1 boro. This energy results from th.e gas in solution with the of. 1 expandinfg by di. Fferen,.].al pressure toward the well bo're and t'ubing to 'the surface. The Ifom].oak and bIiddle Kenai oil reservoirs are undersatur:~ted. PVT analysis of t.Iemlock production indicates the oil to be 1123 pounds unders~Z,~a, ted at ori.~!inal reservoir ~)ressure of 27z15 and 136°F. Dur:inf~ differential pressure depletion the fiuid evotv~d 318 standard cu,~ic feet of~as z'~er, barrel of oil . Middle Kenai .oil. is ;°4~. pounds undcrsaturated at reservoir will evolve 268 standard cubic feet of gas per barrel. Exhibfts 7 and 8, attached to our wrJ. tten testi, mony, are tabulation of Fluid analysis for the Middle Kena. i and tlemlock format, ions. The source of energy to produce oil from the Trading Bay reservoi, rs from orig'fnal pressure to the bubble point is expansion of reservoir Fluids and rocks. When the reservoir reaches the bubble poi. hr, Further oii product.1, on is derived by normal solution .gas depletion. The durati, on of energy available at>o...'e the bubble point pressure is a function of the size of the reservoir. The cor~plicgted Trading Bay structure, with undersaturated oil reservoirs, requires earl}' artificia] lift and reservoir pressure naintenance to maxinize oil recovery. . The Alaska Oil and Gas Committee has recently granted 40 acre .spacing for this field to provide a well density compatible with its geologic co~'plexities. Reservoir pressure maintenance studies will continue the additional data to be developed. Present studies indicate no shallow reservoirs to be available For gas storable These sands have exhit~ited a . ~ · very linited extent and therefore capacity, and are at nom'nal hydrostatic pressure. Any operation which would overnressure ~hese sands would c'i'ea~:e an unsafe envi. ronTnent for dril!i~, al wells , ~j. addition . Further injection produced gas into the oil producing sands is not practicable due to the uncontrolled migratiOn of gas tM'ough the oil within the reservoir. This injection would also be uncontrol, l~d because of the co~'nplex stratigraphy which has not been adequately defined by dril!ing at this tin'~e. The Trading Bay field is producing from undersaturated oil reservoirs in a very complex geol. ogic structure. The primary use of gas is to provide the required energy for 6il production. The secondary bene- ficial uses for th.ts associ, ate4 gas will be described by ~..'Ir. i Ia. OK tlorton. In order to have a better understanding of the rel. ationship between the .associated produced natural gas from the Trading Bay Field and the prospective secondary utilization of this gas, reference is made'to Exhibit 9 attached. This plot shows predic'ced gas production rates a. ssuning a successful secondary recovery project, as compared with projected fuel gas require:nents over a period of 20 years from the st:.art of initial production. (2) To date, secondary utilization of a<soctat~d t, roduced o-~s bas been limited to providing a fuel supply for our onshore treating and S h i ' '~ o . ~ ' , PP~,.o facility on the West 'Foreland. This facility presently consumes a total of approximately 250 ~qCF/D for electrical p.ower generation, crude oil treati, n~ and general heatinz ~or oil stor~-,c,~ - '. tan~,s equipment buildino~ and personnel living quarters. Similar gas fired equipment could not be original]y installed on the Tradi. ng Bay 5~onopod Platform due to the obvious need for platform operation prior to the completion of the first, producing well which could furnish~ a fuel ~=a~_ supply. However, with a reliable supply., of'sas.~ now becOming available, plans are to install gas fired production equipment as . tabulated on Exhibit. 9 in accordance with the time ~,'dul. e,~.~,~ shown. Conversion of diesel Fired hot water boilers to fuel ~ oas operation should be completed by July of this year, and similar conversion of diesel powered electric ~ene'ratin~l .... , . _. se~s is scheduled for January Purchase and installation of a ~,as turbine driven electric gene'rat~n~ set is planned for m~d-!969 to provide additional, e]ec~.rica! power for crude oil pumpi.~,,~ faci!ities on the platform. During t]~i.s period of peaking production, an increase in oil . treatino and shipping requirements will demand increased fuel consumption rates at the onshore treating faci].i'cy reaching an estimated maxi. mum of 850 ~,~CF/D by early 1970. A water injection system to ini. t:zate secondary' recovery within portions of the reservoir should be in operation by Jam. tory, 1970. The prime movers For this waterftood oumping equipment are planned to be oas turbine e~.~,~nes~f' 'and/o.r electrSc motors, requirl, ng electric power to be generated by gas turb'''~ In order to maintain production at antici~ated levels and accel, .... o,ia~.~ the increase in field water production, a gas lift compressor should be installed by July, 1970, M~ich will provide needed artificial lift as the reservoir pressure is depleted. After reaching a maxi:~u:~ fuel requirement of 3200 ?CF/D or ~approxima~elv 17~ of the total associated predicted o-as durin~ 1971, the fuel gas.requirements will diminish but at a lesser rate than the decline of crude oil and associa~ed~ natural gas. By la7o.., ,, .secondary utilization of associated produced gas will be 25% and by 197~,. will be S5% of the total gas available. As the field production continues to decline, the gas turbine electric generati:~g.~, set will be remow~d from the p].atFor'~n. Removal of this equipment coupled with the gradual reduction in fuel gas requirements for oil treating and shiop'~n~ on the onshore site will reduce the total fuel-gas demand to approximately 1650 ~ICF/D by 1974. }lowever, by this time all of the associ~ted gas produced with the oil will be consumed as fuel and a need will arise ~o develop an additional source of natural gas to fulfill the total Fuel gas requirement. As can be observed from the p!o~ shown on Exhibit 9,'the associated produced, gas which cannot be utilized as Fuel rises to a maximum ove~ a t~.~'o-year period and then dec'rcases rapidly as the field moves into a secondary recovery stage of operation. The total amou~t of associated gas not projected for secondary util: ~.zation at the present time amounts to a total of ap~roxi- mate!y 20 million ~,~CF over a fiw~-year peri. od. There presently exists no prospective market for this gas on the west side of the Cook Inlet. . . throt~g}~ot~t tl~e life of the Trading Bay Field ever>' effort xvii. 1 be m~de to dc-velop maxi~nz~:~, secondary utilizatioi~ of tile natt.~ral gas associat, ed ~,,ith crude oil production in a ma~nncr co:~s;~s'tent ~.:i. th econo~ic and prt~dent, pzodt~cing practices. (.~) RESERVOi[:~ FLUID STUDY UNION-}!.IRA!':!ON O!I, C(}I.[PANY COOK iNLET, ALAS~UI P ~.. z,~'-:z~.l !,)~,, bAND Well No. Crude Oi.!. gravity, °API Well l)ept:h, Ft. S,S, Temperature, °F 112 Orig, Reservoir Pressure PS!G 2163 Sa. turation Pressure, PSIG 1921. l.)iffarentia]. (;Oi1, CF/B 268 Origillai Pressure. FV!;'~ Saturation Pressure FVF, Oil Viscosity {~ S.P., cps 3.97 SeParator Gas Gravity, ~ 150 PSi~ 60~F Calculated Gross I~.eating Value Separator Gas 14,696, 60~?', t~TU/CF 1029 TBS-A7 25.6 -45 ~" 1,113 1. 114 0.646 31.]. -5935 136 2745 (talc) 1622 318 1.17i 1.1S! 1.65 0.669 1089 ' EX h I }3 ! i 8 - TAt;T., ~'i ti RIiSERVOiK GAS S!UbY FOR U N'I 0 :x.-X.~: !:'fAT i 10':, Oil. Ti.'.AblNC i!AY F!L;LD COOK iNLET, ALAS}2A FORHAItON SAND HID!)LE Ki£NAI Well No. TBS - A7 TBS - A2 Calc. ulated Gas Cravity (air =-' 1.0) 0.655 P~-iinary Separator, PSI 7O 75 Pr:[mary Separator- °F GPN 0.432 0..!.67 0.107 0.047 O.O25 0.037 0.095 Hydrogen Sulfide - Carbon bi. oxide 4..10 Nitrogen 1.99 Net bane 88.51 E t ha~:~ e 2.4 6 Propane 1.59 I so-Bu tane O, 51 n--I~u tane O. 34 I so-!:' en tane 0.13 n-Pentane 0.07 iiexanes 0.09 Heptanes Plus 0.2i O. 91.0 2-Io 1 ,% 0.22 5.7Z: 84.24 ~I, ·.~{' '~" 3.42 0.66 C). 81 O. 2J., 0.14 0.09 0.17 ,100. O0 100.00 0.669 150 6O 0.941 0.2].6 O.255 O. 077 0.051. ~'~ '7 0.078 1..655 i 6, O0 .q I E lit ! B" T 9 Instal ]at iou Sc?~edule fo-,' fias Fi red I'ro4uczlon Enl~]p;:~.e~:- 7-1-68 1-1-69 7-!.-69 1-!-70 7-t -70 Convert Dies~.., Fi.r~,d Convert Diesel E'n~ine Electr~c~ ., Install Gas Turbine Ifater Injection Pump Inst'all f;as Lift 4, ~, 060 LEGENI] Ass.acia.~ed Produced Cas Fuel Gas {ltilizat. ion f:uei r;as Deficiency 1966 70 7'2 74 76 . 78 TI!'IE IN Yh.'\,~S 80. 8° 8,t.' c ~. _ .f~.CONSERVATION FILE No. 61 REF. insert No. 3 Testimony by Hoyle H. Hamilton and Charles A. Champion' Mobil Oil Corporation. Testimony for He~ing on Conservation File '~ - . o. 6 1 R~feri~nce Insert #3 MOBIL OIL CORPORATION TESTIMONY FOR GAS HEARING BEFORE OIL AND GAS CONSERVATION COMMITTEE FEBRUARY 7, 1968, INTRODUCTION ' My name is H. Russel Holland, attorney for MobiI Oil Corporation. Mobil Oil Corporation is the operator of the Mobil-Union State Leases ADL 18761 and ADL 18765, which we commonly refe~ to as the Granite Point Lease and the Tower Lease,'respectively. Presently, Mobil and Union own and are producing oil and its associated gas from one platform located on the Granite Point Lease. Mobil will now present testimony on behalf of itself and Union. , We intend to present our basic testimony through two expert witnesses. In the course of our testimony we will present three exhibits. Members of the Committee have been given copies of each of.these exhibits, and I request that they be duly accepted by the Committee and designated Exhibits 9,' 10 and 11. Our first expert witness is Mr. Hoyle H. Hamilton, He has previously been qualified before this Committee. I will'give you a brief summary of his experience and qualifications, if such be the wish'of the. COmmittee. I (Read H. H. Hamilton qualif~cations, if necessary,) .- :. , Our second.experc'witness is Mr. Charles A. Champion, (Read C. A. Champion's qualifications.) and CAC sworn in.) ,© H. H.,. HAMILTON ,TE. STIMONY RESERVOIR , , , , ,, · To illustrate the scope of Mobil's producing operations we offer Exhibit 9. ~%is exhibit is a'map of the Granite Point Field area. The. structure of the field is depicted with contours on top of the Middle Kenal Oil Pool. The location of Mobil's platform and lines to shore are also shown. The lines are twin 8 5/8'0 O.D. lines, one of which is used ~or transporting oil and.the other for transporting gas. ' The oil in the Middle Keuai Oil Po01 is undersaturated and has no free gas. All of the gas in place is in solution in the oil at a ratio of approxi- mately 970 cu. ft. per barrel of oil. The producing mechanism is the ex- pansion Of .otl~ water and rock. To produce the oil one must produce 'the · . gas which i~ contains. Presently~ only the .gas that is dissolved in the oil is' being produced. The primary beneficial, use of the gas is in lifting the oil to the surface.' At the present time the produced gas has no market or utility value except for a limited amount which is used as fuel at our shoresite. For some time we have been exploring various types of additional usage of the gas, and some of these will be discussed later° Even if the gas which is excess gas . had a market value, at best it would be an extremely'small percentage of the , value of the oil with which it is produced. Fluid injection is .beir~ planned' for the reservoir to increase the reservoir energy, In this manner the reservoir pressure· decline can be arrested and I oil recoveries increased. This will also reduce the amount of gas produced. Presently water injection appears more feasible than gas injection. A field water injection test will be conducted soon, and we hope this will lea~ to full scale water injection. At the present time, however, gas injection still remains as a possibility in the event water injection is not feasible, , Estimate of Gas Production and Usa~e~ Mobil-Union Platform Exhibit 10 'shows the estimated gas production for the next twenty years under a water injection program, An estimate of the gas usage during this , period is also shown and will be discussed later. The gas production fore- cast represents our best estimate at this time. Well performance analysis and reservoir simulator model studies were utilized in making this prediction, Bear in mind~ however, that the estimate of future gas production likely will be revised as more data is obtained, Our first well was completed in May, 1967; therefore, we have only 9 months of production history, The field limits have not been defined.' Other Possible Disposition of Produced Gas Ao Injection into an existing gas reservoir, is not.practical ,for'the following reasons: 1. D~ere are no gas reservoirs available in the Granite Point Field. Injection into an undepleted gas reservoir in some other field remote from Granite Point would not be practical in that it would create abnormal pressures in the reservoir. Abnormally high · pressure would make drilling hazardous. Such an operation would Il clocunx. I II Icqulmd b~ from Pttrol~m ] :llaltk~t inc. wllh tt~ und~tln~llng It~t # ~ b~ rlproclucl~l fo~ Inbr-COml~n~, ull one/. I -. Paae 4 - not only be hazardous; it would also involve considerable risk of another type. Fracturing to adjacent water zones or driving gas into the water leg Of the gas zone could result in an appreciable volume of gas being made unrecoverable, Even without these problems there is no assurance that all of the injected gas could be recovered. 3. The cost would be prohibitive and consequently would ~ecome'a 'severe economic burden on the otl development, · B, Injection into the Middle Kenai oil reservoir does nri.~ 'appear practical at this time. Presently water, injection appears more favorable than gas injection. We do not believe it is economically feasible to inject both water and gas into this reservoir for the following reasons:. 1. T~e cost of the wells and equipment for ,injection of both fluids · would be prohibitive. 2. The overall recovery would be reduced by gas injection if water was being injected at the same time. 3°. Even if economic considerations could be disregarded~ there is not enough space on our platform for-both wa~er and gas injection 1. equipment. C. A. CHAMPION TESTIMONY. Gas Usage In estimating future use for Grahite Point produced gas, consideration must · be given'to future operating plans for the field. Mr. Hamilton'stated previously that, in all probability, we will initiate some form of secondary recovery 'program. By secondary recovery we mean the injection.of fluid in order to augment original reservoir energy. There are two alternatives being considered for fluid injection. They are water flooding and gas injection. Since the utilization of produced gas is different for each case, they will be discussed separately. It should be pointed out here that, regardless of future operations~ every effort is being made to more fully utilize the gas energy beyond its primary use as a form of energy with which we produce oil. As far as practical, all new equipment installed will use gas as fuel', and some existing .equipment will be converted to use gas fuel, W~aCer. Flooding (Injection) The first method of recovery we would l'ike to discuss is water flooding. If we ultimately decide to inject water as a means of augmenting original reservoir energy and cOntrolling gas-oil ratios we will use produced gas mainly for engine fuel. I would like to refer again to Exhibit 10, the plot Of gas production and usage rs, times and also.to gxhtbit ll,.the gas usage .. ,. backup data,. "' - ..... According to our present knowledge, by early 1971 our total produced gas usage will be approximately 6000 MCF/D. Of th~s, about 5000 MCF/D will be used as fuel, 120 MCF/D will be used for gas deaeration of injection water, and the remaining 900 MGF/D will be for makeup of losses incurred in the gas lift process of producing the wells.. During the next twenty years we anticipate producing 71 million MCF. Of this, 35 million MCF will be utilized in platform and onshore operations as discussed. There- fore, about 50% of the total gas produced will be fully utilized. As shown on Exhibit 10, produced gas is in excess of fuel and other re- quirements until midyear 1979. Subsequent to that Cime,'.'makeup gas will be required for the remainin§ life of the project. Gas Injection If water flood does not appear feasible, an alternative possibility is gas injection. .Assuming that gas injection is our choice for secondary recovery, produced gas Will be inadequate to supply required injection volumes, and makeup gas from an outside source will be required. I~ is anticipated that we would commence injection about January l, 1970, and would probably increase injection volumes to a maximum of 57,000 MCF/D in order to repressure the reservoir. Of ~his volume 42,000 MCF/D would have to be purchased from another source as makeup gas, Possible Sales Possible sales for surplus gas, that is, gas produced beyond our fuel and · other requirements are currently being investigated and have been the subject of investigation for some time. One possibility is the sale to : other oil operators as platform or shoresite fuel. We are also cooperating with the industry feasibility study for the collecting and processing of the total available produced gas in the Coo~ Inlet area. This will be dis- cussed in more detail by Mr. Bradford later in the hearing. In addition, the Committee is already aware that Phillips Petroleum Company soon will COmplete a study which may lead to a gas purchase proposal, but the details are not known as yet. The extent to which this might lead to a market for gas on the west side of Cook Inlet is somewhat qqestionable. To elaborate, the area on the west side of Cook Inlet presents formidable problems in the supply and distribution of gas to any available market. We feel these problems are even harder to overcome than those posed fo~ platforms which are connected by pipelines to the east side of Cook Inlet. %t can be further stated Chat, were a market to develop in this area, the sake of Granite Point gas would be questionable not only because it is still early to know the. exact nature of future operations but also because the- sales period would be short and the sales volume relatively small. For example, if gas injection is determined economically feasible, no surplus gas will be available for sale--in fact, large volumes of additional makeup gas will be required. If we conduc~ a water flood, we will produce a surplus of gas over fuel and ocher requirements 'for a period of only eleven years, which would limt~ ~he contrac~ period for any gas sales° · , . . .. . . . . ~llcifk~ns Iflf~ Wllh If~ ~lng ~ If rely be Mprocluced for InWr~oml~ny ute only, , Further complications arise in the sale of gas produced from a Cook Inlet platfom~. First, the supply is interruptible because of the periodic need to shut in the oil wells. Second, problems inherent with long under- water.;lines in the severe environment existing in Cook Inlet could neces- sitate the shutting off of gas to shore for indefinite periods. Other complications are involved because of the low pressure and wet nature of the gas. ~is gas would require expensive processing. Any gas sales contract made under these circumstances would necessarily have to be limited to such an extent that it would prove quite unattractive from a purchaser's stand- point, particularly a utility company.' In addition, this less at~ractive wet gas must compete for sale with the several high pressure drygas fields ,. in ~he immediate West Cook Inle~ area which are shut in awaiting an available market. Recovery o_f_ _Gap Liquids- We have also investigated the feasibility of installing equipment necessary to recover gas liquids from the produced gas. The majority of natural gas' produced in associa~i0n with crude oil contains water vapor and varying amounts of condensible gas liquids and is thus generally referred to as wet gas, The gas produced at Gramite Point is .considered in the wet gas category. Analysis of the produced gas indicates a gross' heating value of 1350 BTU's per cubic foot~ with a propane content of 2.41 gallons per ttCF (GPM) and an isobutane and heavier content of , .. 1.84 GPM. This gas liquid content is possibly not as high as.generally .~. encountered in oil field wet gasses; howe~er, this gas would require some processing prior to its use as an industrial fuel. Due to the lack of storage and pipeline facilities to handle the high vapor pressure gas liquids, commonly referred to as LPG, there is not at. present a market for these products in the Granite Point area. However, in order to ship the produced gas to shore, the gas must be compressed and dehydrated to minimize the pressure drop. In the process of wet gas pres- surizafion and cooling, a .portion of the entrained heavier gas liquids will be removed as a byproduct. The process we plan to use at our platform is as follows: The produced wet gas will be compressed atsthe platform to a pressure in excess of 300 psi and will then be cooled to remove the afore- mentioned heavier gas liquids. After the removal of these liquids, the gas will be dehydrated to remove the water vapor, A portion-of the gas will then be used at the platform as fuel, and the remainder of the gas will be transported to the shoresite ~n an existing subsea line, The liquids which are remc'.-, d from the gas will be conserved by combining ~hem with the pro- duced crude, .. SUMMATION In summation, Mobil Oil Corporation wishes to stress the following points: 1. The primary beneficial use of gas is and wtll remain to be its use to lift the oil to the surface. 2. Under present conditions in the Cook Inlet area, it is not believed that! , . ~ ~ls c~l Im acquired by ' '.' . from Pef~oleum LJbl~tl~li IH~. ~.iJh fh~ t~J~t~i~EIIngl that If mit b~ ~uce~ fi~ Inter~m:nl~iny use · , the present flaring of gas constitutes economic waste. Only that amount of gas which is necessary in the efficient production of the , · wells is being produced, which by definition in the Alaska Statutes, , does not constitute waste. 3. Development of the Granite Point field is not complete. Until the boundaries of the productive area are known, the volume of.gas in the reservoir will not be known. Similarly, because it is still very early in the life of the field, it will be Some time before it is possible to accurately determine the magnitude of future gas require- merits for secondary usage, whether for fuel, gas lift or gas injections · 4. Although the Mobil-Union Granite Point platform has only been on pr6- duction nine months, the operator is making some secondary use of produced gas ,s fuel and will increase the utilization of produced gas.; .5. The feasibility of gas injection i~tO dry gas fields on shore is presently very questionable. 6. Gas injection into the Middle Kenai oil zone would not be compatible with plans to inject water. ,. 7. Liquid extraction, on anything but a very. limited basis, does not appear economic for the Mobil-Union platform by itself. Studies of the feasi- bility of industry-wide gas gathering and processing facilities .are going forward but, at the present time, cannot be said to assure an economic means of'disposing of that gas which cannot be utilized in the operation of the platform and onshore facilities. The fact that the gas from the Mobil-Union platform moves to shore on the west side of Cook Inlet makes the prospects, for liquid extraction ,. , , i and sale of gas even less attractive than it is for platforms which are connected by pipelines to the east side of Co~ Inlet. 9. Mobil stands ready and willing to enter into a contract for the sale of that produced gas which is in excess of secondary uses but, having studied the prospects for such sale~ has found that there are no pros- pects for sale at the present time or in the immediate future. This gas~ therefore, has no present market value. 10. We are in the business of producing and marketing energy. We are dedi- cated to the principles and practices of resource conservation through- out our operations in Alaska as well as elsewhere. This has been true for many years. In view of the facts which have been outlined in our testimony, we believe all reasonable measures are being taken and will be taken to conserve all hydrocarbons and secure maximum economic recovery thereof. Further, we believe the Oil and Gas Conservation , Committee sh~lld reach the decision :that proper a~d efficient use of _ the produced gas from the Granite Point Oil 'Field is 'being made by employing ~he present method of operations, ,, , · his doc:umefl! is ,scquIred ~ " fl"o~ Petroleum · / COXSERVATION REGULATIONS AND ST__A_T~_TE__ We refer now to Sec. 31.05.170 of Alaska Statutes. This sec~ion contains definitions. Specifically referring to the definition of 'Waste", and quoting pertinent sub paragraphs, we note that (11) 'Waste" means, in addition to its ordinary meaning, "physical . waste" and includes (A) the inefficient, excessive, or improper use of, or unneces- , sary dissipation of~ reservoir energy; . . . . . o (C) producing oil or gas in a manner causing unnecessary water channeling or coning; (D). the operation of an oil well with an inefficient gas-oil ratio; (H) the escape into the open air, from a well producing oil or gas, of gas in excess of the amount which is reasonably necessary in the efficient production of.the well. We believe that present producing methods in the Oil fields which are the subject of this hearing are not causing waste of gas, by definition. The reservoir energy is being used efficiently and properly. Gas.-oil ratios are not inefficient. The entire amount of gas which is being produced is reasonably necessary to the efficient production of the wells, and only that portion of the produced gas which cannot be utilized is being flared. As mentioned in our previous .testimony, we intend tO make investments in the near future which will make'" it possible ~o utilize additio~al amounts of ~e Department of Natural Resources has issued its Rule 2159, which is a general statewide rule governing gas-oil ratios. ~at rule states, in part, '~ny oil well producing with a gas-oil ratio in excess of 2,000 cubic feet of gas per barrel of oil produced shall be allowad to produce daily only t'hat volume of gas obtained by multiplying its no~nal unpeualized daily oil production by 2,000 'cubic feet," We believe this rule is adequate and recognizes the primary beneficial use of gas as being that of supplying the energy necessary to produce such oil, ' ! · . EXHIBIT #1 AREA MAP OF OIL FIELDS This exhibit is filed in a separate file. STATE O? ALASK_~I D~"o"~ .... '~"~'~N~'' OF XLT'~iIAL RESOURCES DIViSiON O? :xi!>YES ff!~D >iiE'ERALS Alaska Oil and Cas Conservation Committee Conservation File #61 The Alaska Oil and Gas Conse?vation Co~:r. mittee will hold a hearing pursuant to Section 2009 of the Alaska Oil and Gas Conserva:-ion Regulations to consider the issuance of an order requiring the bene- ficial use of gas p.oauced as the result of crude oil producing . operations at the Granite Point, McArthur Riwa? and Trading Bay Fields. The hearing will be held in the City Council Cha~nbers in the basement of the Z. j. Loussac Library~ Fifth Avenue and F Strect~ Anchorage, Alaska, at 9:30 a.m. February 7, 1968~ at ~¢hich time protestants and others may be heard. Publish January 11~ 1968 Thomas Ro Marshall, Jr. Executive Secretary' Alaska Oil and Gas Conservation 3001 Po:~cupine Drive Anchorage, Alaska 99504 WAIVER OF PERSONAL SERVICE The undersigned waives persom'~l service of the notice appearing above under Section 31.05.050 of the Alaska Statutes. For (Company)/ RECEIVED JAN 22 ~I¥1,SION OF MINES, & MINERALB ANCI"IO~OE THE SUPERIOR OIL COMPANY P. o. BOX 1521 HOUSTON, TEXAS 77001 January 18, 1968 Mr. Thomas R. Marshall, Jr. Executive Secretary Alaska Oil and Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99504 Dear Mr. Marshall: Re: Notice of Public Hearing February 7, 1968 Granite Point, McArthur River & Trading Bay Fields Cook Inlet, Alaska Please find enclosed Waiver of Personal Service executed by Murray Christian, Secretary, The Superior Oil Company, in regard to your Conservation File #61. Very truly yours, THE SUPERIOR OIL COMPANY JHC:mm cc: Mr. E. J. Wentworth The Superior Oil Company Casper, Wyoming RECEIVED JAN 22 !c,., BI¥1$1ON Of: MINES & MINE .RAI,,8, NOTICE OF PUZL!C .~iEJ~!~,TG DiVISiON O? ,xfIXES AND >iiNERALS Alaslca Oil and Gas Conservation Committee Conservation "~- 5 i~ #61 The Alaska Oil and Gas Conservation Comnittee will hol.l a hearing pursuant to Section 2009 of the Alaska Oil and Gas Conservagion Kegutations to consider the issuance of an order requiring the bene- ficial use of gas produced as the result of crude oil producing operations at the Granite Point, McArthur River and Trading Bay Fields. The hearing wil! be bald in the City Council Chambers in the basement of the Z. J. Loussac Library~ Fifth Avenue and F Street, Anchorage, A!aska, at 9:30 a.m. February 7~ 1968~ at which time protestants and others may be heard. ,,/,,/, ~["')? , ,'[,~ ., / /' ,/',// . ' Thomas R. Marshall, Jr. Executive Secretary Alaska Oil and Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99504 Publish January 11~ 1968 WAIVER OF PERSONAL SERVICE The m~dersigned waives personal service of the notice appearing above under Section 31.05.050 of the Alaska Statutes. sIGNED ~~~~~~ ,, . ~ Se~~ ry~ For (Company) THE SUPERIOR OIL COMPA~ pate 1/17/68 RECEIVED JAN 2 ! Illl$1~ OF MINES, & FORM 1397 1-66 PAN AMEIHCAN PETROLEUM COILD0~ION PRODUCING DEPARTMENT H. T. HUNTER DIVISION P~ODVCT~ON MANAGER SECURITY LIFE BUILDING DENVER, COLORADO 80202 DISTRICT SUPERINTENDENTS W. M. JONES A. E. PIPER T. M. CURTIS JOINT INTEREST SUPI~RINTENDENT S. B. RICHARDS January 19, 1968 File: AMR-161-986.511 Re; Conservation File No. 61 Waiver of Personal Service Beneficial Use of Gas Mr. Thomas R. Marshall, Jr. Executive Secretary Alaska Oil and Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99504 Dear Mr. Marshall: Enclosed herewith is one copy of. an executed waiver of personal service which was made a part of your notice of publication of a hearing on the beneficial use of gas in the Granite Point, McArthur River, and Trading Bay Fields. ., Yours very truly, Attachment RE CE i V ED 'DiVISiON OF MINES · STATE OF AL:L£!Ck DEPA~Iril. iENT OF >,~A'iUiL%L 5IE£OU!ICES Alaska Oil and Gas Consc~'-vation Committee Conservation Fiia ~:.;'61 The A!,~ska Oil and Gas Conservation Co'~.'mittea will hol.] a hearing pursuant to Section 2009 of the Alaska Oil and Gas Conservation Regulations to consider the issuance of an order requiring '~h.a bene- ficial use of gas produced as the result of crude oil producing cparations at the Granite Point~ ~IcArthur River and Trading Bay Fields. The hearing will be held in the City Council Chambers in th.a basement of the Z. J. Loussac Library, Fifth Avenue and F Street, Anchorage, Alaska, at 9:30 a.m. February 7~ 1968~ at which time protestants and others may be heard. .,' "/ ,,"'/~/~ . , , Thomas R. Marshall, Jr. Executiw% Secretary A!a~J~a Oil and Gas Conservation C o~u'~i t t ~ ~ 300i Porcupine Drive Anchorage, Alaska 99504 Publish January 11, i968 ~itVER OF PERSONAL SERVICE The undersigned waives personal service of the notice appearing above under Section 31.05.050 of the Alaska Statutes. RECEIVED DIVISION OF MINES & tN~INEP,~ .~,z:wo~ ', ,, r__,,.~.- .... .',:~'." OF X~:i'"UiC~L RESOURCES DIViSiON O? Alaska Oil and Gas Conservation Committee Conservation ~ .... _ The Aloska Oil and Gas Conservation Committee will ho!i a hearing pursuant to Section 2009 of the Alaska Oil and Gas Conservation Regulations to consider the issuance of an order requiring 'the bane- ficial use of gas produced as the result of crude oil producing operations c,.t the Grani~ce Point, McArthur River and Trading Bay Fields,, Th.a hearing will ba haid in the City Council. Chambers in th~ basement of the Z. J. Loussac Library, Fifth Avenue and F Street~ Anchorage, Alaska, at 9:30 a.m. February 7, 1965~ at which time protesu, ants and others may be heard. Publish January 1i, 1968 ,;;,, ,?'./' / ? // ,?~ ,,i ",\, ;.",,.'v' :' t ,//~'"'"" Thomas R. Marshall, Jr. Executive Secretary Alaska Oil and Gas Conservanion C ommi't t e e 3001 Porcupine Drive Anchorage, Alaska 99504 WAIVER OF PERSONAL SEPC~!CE The undersigned waiw~.,s personal service of the notice appearing above under Section 31.05.050 of the Alaska Sta"cutes. DiVISiON OF M1N[5$ & MIN,ER/-,~,t:!~ . ANCH,;7'RAGIi!! Union Oil Company oi~' -~lifornia 2805 Denali Street, Anchorage, Alaska 99503 Telephone (907) 277-1481 union Robert T. Anderson District Land Manager ~anuary 16, · 1968 Thomas R. Marshall, ~r. Executive Secretary Alaska Oil and Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99504 Re: CONSERVATION FILE f~61 GRANITE POINT McARTHUR RIVER TRADING BAY FIELDS Dear Sir: Returned herewith, is an executed copy of Notice of Hearing and "Waiver of Personal Service on issuance of order requiring the beneficial use of gas on behalf of Union Oil Company of California as requested in your letter of Ianuary ll, 19 68. Yours very truly, Robert T. Anderson RTA/nr enclosure Form 401 ANC-A (New 7/67) Alaska Oil and Cas Conservation Committee The Alaska Oil and Ga:: Conservation Commit'tee ~,:,itl I':o'(.! a hearing pursuant to Section 2009 of the Alaska Oil and .Gas Conservation Regulations to consider the izsuance of an order requiring the bene- ficial use of gas produced as the result of crude oil producing ... operations at the Granite Point~ McArthur River and Trading Bay Fields, The hearing will be held in the City Council Chambers in th,'~ basement of the Z~ J, Loussac V ib~"~,z'~.~ ,~ y~ Fifth Avenue and F Street~ Anchorage~ A!aska~ at 9:30 a.m. February 7~ 1968, at ~hich time protestants and others may be heard. .'~ " :. / / ,/., //' ii, ,/'~ , Thomas R. Marshait~ Jr. Execut:ive Secz'etary Alaska Oil and Gas ConservaUion ]001. ~ozcupin~ Drive AndhoraSe, Alaska 99504 ~ubtish January 11, 19~8 NAiVE~ OF PERSONAL SERVICE The undersigned waives personal service of zhe notice appearing abov~ under S~c:ion ]1.0~.050 of the Alaska Statutes. For (Company) Rrcc[,IVED jAN ? ":""'""'" ANCH©RAGE: , ,, NOTICE OF PUCLiC STATE OF ALASi%4. DEPART}iENT OF NATureiL ~IESOURCES DIVISION OF ~I:xs~ .... Alaska Oil and Gas Conservation Committee Conservation Fiia #61 The Alaska Oil and Gas Conservation Committee will hold a hearing pursuant to Section 2009 of the Alaska Oil and Gas Conservation Regulations to consider the issuance of an order requiring the bene- ficial use of gas produced as the result of crude oil. producing operations at the Granite Point, }{cArthur River and Trading Bay Fields. The hearing will be held in ~he. City Council Chambers in the basement of ~the Z. J. Loussac Library, Fifth Avenue and F Street, Anchorage, Alaska, at 9:30 a.m. February 7, 1968, at which time protestants and others may be heard. Publish January 11, 1968 ~ .~ Ma~shalt, rhode.as R .... Jr. Executive Secretary Alaska Oil and Gas Conservation Co'~t t se 3001 Porcupine Drive Anchorage, Alaska 99504 WAIVER OF PERSONAL SERVICE The undersigned waives personal service of the notice appearing above under Section 31.05.050 of the Alaska Statutes. For (Company) RECEIVED J f-\N ! O, ^NcHORAGE )EOT.iCE 0"'~ ?Ui~LTC STATE DiViSION OF >iilfES A~aska" Oil ~.~d'~ Cas Cons e~-vauion' Ccmmi'atea The Alaska Oil and Gas Conservation Committee will boll a hearing pursusnt to Section 2009 of the Alaska Oil and Gas Conservation tlegu!ations to consider the issuance o'f an order requiring the bene- ficial use of gas produced as the result of crude oil produaing . operations at the Granite Point~ McArthur River and Trading Bay The hearing will be held in the City Council Cha~fbers in th.~ basemenn of the Z. J. Loussac Library, Fifth Avenue and F Street~ =.~n._aoz~' ~ '"age Alaska, at 9:30 a.m. February 7, 1968, at whic'h time protesaants and others may be heard ~ t' //q;""~'~'" ~,,,, ,/'"'~. , Thomas R. Plarshall, Jr. Executive Secretary Alaska Oil and Gas Conservation Co'mr~it tee 3001 Porcupine Drive Anchorage, Alaska 99504 Publish January 11, 1968 WAIVER OF PERSONAL SERVICE The u'ndersigned waives personal service of the notice appea.ring above under Section 31.05.050 of the Alaska Statutes. ANCHORAGE · NOT:C: 0'':~ PUi:L:C S?ATS O? Dr_ .~ .....:~.. OF ..... RESOURCES DIVISION OF H'r,'lZS _,-%ND Alaska Oil and Gas Conservation Co:::ittae Conservation: File ::-"61 The Alaska Oil and Gas Conservatkon Co::::::ittea will hold a pursuant to Section 208? of nh:: Alaska Oil. and Gas Conservation Ragu!ations to consider the issuance of an order requiring the bene- ficial use of gas produced as the rcsu!t of crude oil producing operations at the Granite Point, McArth~:r Riw:r and Trading Bay Fields. Ths hearing :.:il! ba held in the City Council Cl':a:nbe:s' in th~ basement of the Z. J. Lovssac Library, Fifth Avenue and F Street, Anchorage, Alaska, at 9:30 a.m. February 7, 1968, at which tima protestants and others may be heard. .// '" ~":{ ~ / '/'//./ ' , : :'.:...: ' ,/ ', >'"<. ". ". ., Thomas R, Marshall, Jr. Executive Secretary Alaska Oil and Gas Conservation Committee 3001 Porcupine Drive Ancho:'age, Alaska 99504 Publish January 11~ 19"62 WAIVER OF PERSONAL sERVICE The undersigned waives personal service of the notice appearing above under Section 31.05.050 of the Alaska Statutes. SIGNED , ~~_~~----~_~ ___ Date For (Company) ~~,,~._~ ,,~,. DiViSiON OF M~N~..S ~ ANCHORAGE DEPAi[LP, iENT OF N..TUP~kL RESOUXCES DIVESEON O? I, iENES AND i,'~ii'[EPulLS Alaska Oil ~ Gas ' -~ ~.~ ~.,o~:~ a"£vat ion Committee Conservation Fils ~6! The Alaska Oil and Gag Conse~-vation Committee will hol.'I a hear-lng pursuant to Section 2009 of the Alaska Oil and Gas Conservation Regu!aUions to consider the issuance of an order requiring the bene- ficial use of gas produc, ed as the result of crude oil produ~:ing o~erations at the Granite Point, McArthu,z River and Trading Bay Fields. The hearing will be held in the City Council Chambers in ~gha basement of the Z. J. Loussac Libzary~ Fifth Avenue and F Street~ Anchorage, Alaska, a.t 9:30 a.m. Febz'u, az'y 7, 1968~ at which time protestants and others may be heard. // ,,' .,' /' , / ,,,' ,,, Thomas R. Mars'hall, Jr. Executive Secretary Alaska Oil and Gas Conservation '~ OIf:Ta !, t t 3001 Porcupine Drive Anchorage, Alaska 99504 Publish January it~ 1968 WAIVER OF PERSONAL SERVICE The m,,dersigned waives parson, al service of the notice appearing above under Section 31.05.050 of the Alaska Statutes. S~C~N~ ~~~_ ~ For (Company) ,, , ATOMIC RIC~I~LD ~0~A~ Date January 12~ 1968 RECE[VEO DIVISION OF MINES & MINE.R. AL.,~ ANCHORAGE : KOTiCE O? PU'ZLZC RE2liiNG STATE OF DIVISION OF MINES AND i-[iNEi?~iLS Alaska Oil and Gas Conservation Committee Conservation Pile i:J6! The Alaska Oil and Oas Conservation Committee will holi a hearing pursuant to Section 2C09 of the Alaska Oil and Gas Conservation Regulations to consider the issuance of an order requiring the ben.a- fi.aial usa of gas produced as the result of crude oil producing el;orations at the Granite Point, McArthur River and Trading Bay Fields. The hearing will be held in the City Council Chambers in the basement of the Z. J. Loussac Library, Fifth Avenue and F Street, Anchorage, Aiaska~ at 9:30 a.m. February 7~ 1968~ at which time protestants and others may be heard. Publish January 11, 1963 Thomas R. Marshall~ Jr. Executive Secretary Alaska Oil and Gas Conservation Committee 3001 Porcupine Drive Anchorage~ Alaska 99504 WAIVER OF PERSONAL SERVICE The undersigned waives personal service of the notice appearing above under Section 31.05.050 of the Alaska Statutes. OF MINf~5 & MINERAL8 ANCHORAGE , f , . K BRA I24 RX PD''' WUX BARTLESViLLE OKLA I5 45ZP CT THOMAS R HARSHALL JR, EXECUtiVE SECREiARY OiL AND GAS CO[~VERSA~IO~ 00320 _ PHILLIPS PETROLEUM COHPANY ON' JANUARY 9, I968 SE~I~.THE FOLLOWi~G WIRE ~0 PRODUCERS I~'~ Iag r4tb~g GROUND SHOAL FIELD SOON AS STUDi. c ~,~ . .. ,~uW IN PROGRESS AA~ COMPLETED (¢~ ~ .'¢ BETWEEN 3~ A~D 45 DAYS) PHILLIPS WILL BE READY TO BEG~'~ NEGOTIATIONS . FOR THE PURCHASE OF GAS IN THE MIDDLE GROU~D SHOAL AND GRANITE PO IdT FIELDS AdD 'i'0 COFtPLETE PURCHASE GO~TAAGTS IF MUTUALLY SATISFACTORY TERMS AND Co[~DIYIONS CAN BE WORKED OUT WE WILL KEEP YOU ADVISED OF THE PROGRESS OF OUi~ STUDIES iT WOULD APPRECIATED IF YOU WOULD PASS THIS WiRE TO YOUR PRODUCTION -- -- ' q" W P~OPLE i40 A~h. iNVOLVED WITH THE UP CONI~4G HEARINGS O[~ GAS UTILIZA'~ION L~RO'f_.,- ,.,'~ULBERTSON PHiLLtPc PETROLEUM CO" DIVISION OF MINES ANCHORAGE THIS IS TO ADVISE THE OIL ~ ~' ~- A~D GAo CONVERSATION CONHiTTEE THAI THZ SUBJECT STUDIES ARE BEING A HIGH PRIORITY iN A GOOD FAITH EFFORT TO DEVELOP AN ADDiTiONAL BE-~EFiGIAL USE FOR THE G ,'.c PE a~-PHILLIPS IROLEUH COMPANY HaS HEREIOFORE SOUGHT AND W b~a~, [,'iAR~aio FOi~ ALASKAN [';ATURAL GAS wa U;-~u THAT YOUR 60[',IHITTEE TAKE NO ACTION TO RESTRICT PRODUCTiO~ UNTIL PHILLIPS AND POSSIBLY OTHER PRODUCERS HAVE ADEQUATE TIME TO EVALUATE THIS IMPORTANT BUT COMPLEX PROBLEM AND TO CARRY OUT . THE NECESSARY FURTHER NEGOTIATI'ONS WE SUGGEST THAT THIS. WOULD .f BE IN THE BEST INTEREST OF THE STATE OF ALASKA A~D;~RODUCERS i'~CT!'CE CF PUi~L2C !-iE.:~IIXG STATE OF DiVISZO'.{ O".f ~!!~iES .'!ZD >iIXE~k',.LS Alaska Oil and Gas Co:',.s~:rvation Committee Cons~arvation File ~.~6! The Alaska Oil and Gas Conservation Committee ~.zil! hoi~ a heari'r._g pursuant to Section 2009 of fha Alaska Oil and Gas Conservation Regulations to consider the issuance of an order requiring the bene- ficial usa of gas produced as the resu!~c 'of crude oil produ.aing oi~arations at the Granite Point, ~{cAzthur ]~iv,ar a~d Trading Bay Fields. The hearing will ba held in the. City Council Charfbers in the basement of the Z. J. Loussac Library~ Fifth Avenue and F Street, Anchorage, Alaska, at 9:30 a.m. February 7~ 1968, at which time protestants and others may be heard. ".' /, ,.,,}?., Alaska Oil and Gas Conservation Co'remit t~e 3001 Porcupine Drive Anchorage, Alaska 99504 Publish January 11, 1965 W~IV~.~ OF PT. RSONAL SERVICE The u'~dersigned waives personal service of the notice appearing above under Section 31.05.050 of the Alaska Statutes. For (Company) Sinclair Oil & (;as ComPa. nY' Date A NC~-/OFOqGE M/lktEk~AL.,~ · ,, , i~[OTtCE OF ?UgL','C EEL~!?-[G ST/'.TE OF ALASiU'~ DiVISiON Alaska Oii and Gas ~o.~sarvgtion Comnit:~e Conservation="-'-" "'-z.:..,,: ~P61 Tka Alaska Oil and C,'a'~s Consarvanion Commi'guee will hol:t a i'~aaring pursuan'c to Section 2009 of the Alaska Oil and Gas Conservation Regulations to consider :ha issuance of an order requiring 'the bane- ficial usa of gas ' ~ proaucea as the result of crude oil producing operations at the Granitc~ Point, McAr'~:huz Ri'var and Trading Bay Fields. T'ha hearing will be held in the City Council Chambers in the basement of the Z. J. Loussac Library, Fifth Avenue and F Streat~ Anchorage, Alaska, at 9:30 a.m. February 7, 1968, at which time protestants and o'~ners may be heard. Tho'::~.~a,s R. Marshall, Jr. Executive Secretary Alaska Oil and Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99504 Publish January 11, 1968. WAIVER OF PERSONAL SERVICE The m'tdersigned waives personal service of the notice appearing above under Section 31.05.050 of the Alaska Statutes. SIGNED i "-'"'"'" ~ ...... ~ ~'------ Date AN, CH,.'DRAGE AFFIDAVIT OF PUBLI( ATION STATE OF ALASKA, ) THIRD JUDICIAL DISTRICT, ) ss. being first duly sworn on oath deposes and says that ...... ~...1~..... is the...~J~l...c~ ...... of the Anchorage News, a daily news- paper.- That said newspaper has been approved as a legal news- paper by the Third Judicial Court, Anchorage, Alaska, and Jt Js 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 Jn an office maintained at the aforesaid place of publication of said news- paper. That the annexed is a true copy of a .._...~..I~i~.~.....~..~..~-.?SS as it was published in regular issues (and not in supplemet~tal . form) of said newspaper for. a period of :',OJiac .........insertions, commencing on the ~L[~hday of ..J...a~..~t..a.3?~_ ......... ,'19 6.~.., and ending on the ...... ~.~t~ ....day of of ..~:.a.~.:.~.~.. ............ , 19...~.!~., both dates inclusive, and that such newspaper was regularly distributed to its subscribers dur- ing all of sa,id period. That the full amount of the fee charged for the foregoing publication is. the sum of $ ~L0,2S which amount has been paid in full at the rate of 25¢ per line; Mini- mum charge· $7.5.0. Subscribed 8~ sworn to before me this ..~.~,y// NotarY Publi~ in and fox the ~ta.te. of Al~.ska, Third Division, ,, And~orage, AJ,aska MY COk~V~ISSION TICE .' OF' PUBLIC HEARING ' ,~ . '..' ~',c~,~,~'~¥~0:..,.~ e.~. tion Commtttee"Xvil'I~f~ld a hear~ pursuant" to' SeCtion 2009 of the 'Alaska :O~..and Gas.. Con~rvation Be~ulat~,n~(~o~slEer:, the issuance 'o[ ah oltje~t'~i~'.i~'~ beneficial use of .~as ~ced~as. the result ~.~lzz.:.h~~;'t~e city, counci~ ~ ~ :l~a.. .' .. · . ~m .~s.-'l~Tt~?[}ase~ent.. o~ the a~ F. gtr.eei, .~ori~-; Alaska. at f~i~ '~-:~ ...... . .~ ., t ~e-:prdi~st{n~nd d,~hers, miy b h~ri T" ."~:." "· ...... -~' . ' ' · 'l,m ' .4 .', '.. ~ '.J~;'~ i!?: C" """"'" ...... ; .... . :.". .. %." '..~001. ~upin6'. D~iv'~'"~' .; ' ...', ·..'Ancho~. 'alaSka "" G,;,~4,,f,, , ,:,', ,',,, ,,,., ,, ...... : 1968 99~1 Jmmiz"y 11,, 196~ Hr. a, V. rJ.l'l~ $~udard 'Oil Co. of ~tfornf, a ~ ii, 1968 ~atv~r of Personal Service 'Oil A~chorase., ~ 99501,' 1968 · GonoeEvaCton Ftle ~61 ~ta~ver of l~eroonal Service ]~eue,£tcial Use of Cas ~mr Sir: C:ouserva~ion File ~atver of Personal Set.ce Beneftc~L8! ~se of ],968 ConaervaC~ou File ~'leaa~ find encleaed '~eo copies o£ ~ba not,ce e~ publ~ca,t~an ~vwr:, aud..Trna Bay uhteh ~a made pat~, of~ the no~ic'eo P~e e,~euce and return mae :eopy Chis office at your' ear:L~es~, convenience. Denvar',, Cago 80202 Conserva~ion File .lanuary I1, 3.968 Conservaciou F~le f61 ~aiver of Personal Service Be~[~cial Use of Cas ~lobtl Oil Ce~poraCto~ Anchor~, Alaoh 995,01 is ~e ~ ,of C~ ~~,, ~e ~uC~, ~ re~, ~e ~py '~ Chis Tal~:may Tezaco, P. O. Boa An~horetpe, C, onservatt~)u File ~iver of Peril Servir. e Beu~fi.~tal Use of hfs Casper., upmln8, 82io2 De~ SLr: your :~lies~ ~enee,. NOTICE OF PUBLIC HEARING STATE OF ALASKA DEPARTMENT OF NATURAL RESOURCES DIVISION OF MINES AND MINERALS Alaska Oil and Gas Conservation Committee Conservation File #61 The Alaska Oil and Gas Conservation Committee will hold a hearing pursuant to Section 2009 of the Alaska Oil and Gas Conservation Regulations to consider the issuance of an order requiring the bene- ficial use of gas.produced as the result of crude oil producing operations at the Granite Point, McArthur River and Trading Bay Fields. The hearing will be held in the. City Council Chambers in the basement of the Z. J. Loussac Library, Fifth Avenue and F Street, Anchorage, Alaska, at 9:30 a.m. February 7, 1968, at which time protestants and others may be heard. ? ~ Thomas R. Marshall, Jr. Executive Secretary Alaska Oil and Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99504 Publish JanUary 11, 1968 WAIVER OF PERSONAL SERVICE The undersigned waives personal service of the notice appearing above under Section 31.05.050 of the Alaska Statutes. SIGNED Date For (Company) STA~E OF ALAEIC:~ DiViSiO.Y 0'? !,~i~ES Ai~D >~iNEiL!LS Alaska Oil and Gas Co'ns.~:'v'ation Committee Conservaticn Fi!a #61 The Alaska Oil and Gas Conservaticn Committee will hoi.~ a hearing pursuant to Section 2009 of the Alaska Oil and Gas Conservation Regulations to consider the issuance of an order requiring the bene- ficial use of gas produced as the result of crude oil producing operations at the Granite Point, ~{cArthur River and Trading Bay Fields. The hearing will be ha!d in the City Council Chambers in the basement of the Z. J. Loussac Library, Fifth Avenue and F Street, Anchorage, Alaska, at 9:30 a.m. February 7, 1968, at which time protestants and others may be heard. Publish January 11, 1968 Thomas R. Marshall, Jr. Executive Secretary Alaska Oil and Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99504 WAIVER OF PERSONAL SERVICE The undersigned waiwaJ personal service of the notice appearing above under Section 31.05.050 of the Alaska Statutes. SIGNED Date For (Company) NOTICE OF PUBLIC HEARING STATE OF ALASKA DEPARTMENT OF NATUP~IL RESOURCES DIVISION OF MINES AND MINERALS Alaska Oil and Gas Conservation Committee Conservation File #61 The Alaska Oil and Gas Conservation Committee will hold a hearing pursuant to Section 2009 of the Alaska Oil and Gas Conservation Regulations to consider the issuance of an Order requiring the bene- ficial use of gas produced as the result of crude oil producing operations at the Granite Point, McArthur River and Trading Bay Fields. The hearing will be held in the. City Council Chambers in the basement · of the Z. J. Loussac Library,. Fifth Avenue and F Street, Anchorage, Alaska, at 9:30 a.m. February 7, 1968, at which time protestants and others may be heard. ,/,"'" Thomas R. Marshall, Jr. Executive Secretary Alaska Oil and Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99504 Publish JanUary 11, 1968
