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Home My WebLink AboutCO 092 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. -~-7 '~ -Conservation Order Category Identifier Organizing RESCAN DIGITAL DATA OVERSIZED (Scannable with lame plotter/scanner) [] Color items: [] Diskettes, No. [] Maps: [] Grayscale items: [] Other, NofType [] Other items [] Poor Quality Originals: OVERSIZED (Not suitable for [] Other: plotter/scanner, may work with 'log' scanner) [] Logs of various kinds [] Other NOTES: BY: TOTAL PAGES Scanning Preparation BY: ROBIN ~ Production Scanning Stage I PAGE COUNT FROM SCANNED DOCUMENT: PAGE COUNT MATCHES NUMBER IN SCANNING PREPARATION' ,.,X" YES NO Stage 2 IF NO IN STAGE 1, PAGE(S) DISCREPANCIES WERE FOUND: ~ YES ~ NO (SCANNING IS COMPLETE AT THIS POINT UNLESS SPECIAL ATTENTION IS REQUIRED ON AN INDIVIDUAL PAGE BASIS DUE TO QUALITY, GRAYSCALE OR COLOR IMAGES) General Notes or Comments about this Document: 5/21/03 ConservOrdCvrPg.wpd STATE 'OF ALASKA DEPARTMENT OF NATURAL RESOURCES DIVISION OF OIL AND GAS Alaska 0il and Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99504 Re: Emergency Order May 21, 1970 Conservation File No. 92 Union Oil Company of California - Trading Bay Unit State K-20 well The Union Oil Company of California, as operator of the Trading Bay Unit, petitioned the Alaska 0ii and Gas Conservation Committee on May 20, 1970, for an emergency order al lowing exception to il Alaska Adm. Code 2158(b) to permit the escape into the air of gas from the Trading Bay Unit State K-20 well after use for artificial lifting of oil from the McArthur River Hemlock Oil POol. There has been a mechanical failure of one of the two compressors on the King Platform which will result in restricted pro- duction in some wells and the shutting in of others after the five-day permissible period provided for in l l Alasl(a Adm. Code 2158(b) unless gas from the K-20 well is utilized. The Committee has been furnished test data which indicate damage to the reservoir probably would occur surrounding high water-producing wells if these wells were closed in. An emergency order is hereby granted pursuant to and in accordance with l l Alaska Adm. Code 2012 permitting the flaring of gas from the Trading Bay Unit State K-20 well commencing May 21,1970, and expiring on the date that the damaged compressor is again made operational or within 15 days from the date of this emergency order, whichever is first. Thomas R. Marshall, Jr. Executive Secretary FORM SA- I B MEMORANDUM TO: [- Homer Burrell, Director Division of Oil and Gas Anchorage FROM: Dale Wallington Deputy Commissioner State of Alaska DEPARTMENT OF NATURAL RESOURCES DATE : SUBJECT: June 15, 1970 Oil and Gas Conservation Hearing File No. 92, June 26, 1970 With this letter, I appoint Mr. Harry Kugler of the Oil and Gas Division as a temporary member of the Oil and Gas Conservation Committee for the purpose of preparing evidence on Oil and Gas Conservation File No. 92. Mr. Kugler will be replacing Mr. Thomas R. Marshall, Jr., who will be absent from the State at the time of the hearing. FORM SA - I B MEMORANDUM TO: F FROM: State of Alaska D~V~SXn~ OF 01~, AlU ,GAS DATE : SUBJECT: June CANCELLED The public meeting scheduled for 9:30 AM, May 29, 1970, in this building to consider Conservation Order File No. 92 has been cancelled because the Unit operator has withdrawn their application for a hearing. Thomas R. Marshall Executive Secretary Alaska Oil & Gas Conservation Committee CANCELLED Robert T. Anderson District Land Manager Union OiICompan~ fCalifornia 2805 Denali Street, Ar,... lorage, Alaska 99503 Telephone (907) 277-1481 union May 28, 1970 Mr. Homer L. Burrell Director Division of Oil and Gas 3001 Porcupine Drive Anchorage, Alaska 99501 Re: TRADING BAY UNIT STATE OF ALASKA Dear Mr. Burrell- This will confirm our telephone conversation of May' 27 requesting that the hearing scheduled for the use of the gas well gas in D-18 be canceled. It is hoped that this will not be an inconvenience to your organization. RTA/nr Yours very' truly, /?~-~}~e:~ T .//~nc[erson cc' Trading Bay' Unit Participants Form 401 ANC-A (New 7/67) Union Oil and Gas I~'' on: Western Region NLB Union Oil Company of California OKG 2805 Denali Street, Anchorage, Alaska 99503 KLV _. Telephone (907) 277-1481 HWK_ union May 25, 1970 State of Alaska Oil and Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99501 APPLICATION FOR EXCEPTION TO SECTION 2158(b) OIL AND GAS CONSERVATION REGULATIONS TRADING BAY UNIT STATE K-20 Gent 1 emen: The attached Engineering Report confirms information presented verbally to you on May 20, 1970 in support of the application of Union Oil Company of California for an emergency order allowing exception to Section 2158(b) of the Oil and Gas Conser'vation Regulations for the Trading Bay Unit State K-20 well. Very truly yours, UNION OIL COMPANY OF CALIFORNIA Unit Operator By - Robert T.' Ancferson Attorney- i n-Fact Attachment ENGINEERING REPORT IN SUPPORT OF THE APPLICATION FOR EXCEPTION TO SECTION 2158(b) OIL & GAS CONSERVATION REGULATIONS TRADING BAY UNIT STATE K-20 Nay 20, 1970 Two gas compressors on the King Salmon Platform each capable of delivering 10 MM cubic feet of gas perday with a discharge pressure of 1,200 psi, were installed for the purpose of providing gas lift gas to maintain oil production from the oil wells completed on the King Platform. Trading Bay Unit State K-20 is a dry gas well capable of delivering approximately 10 MM cubic feet of gas per day at 1,500 ps.i flowing pressure which has been manifolded and controlled such that it provides a backup source of lift gg'§ in the event of a mechanical failure of the gas compressors. It has been recognized for sometime by the operators in the Cook Inlet that the Hemlock reservoir is very sensitive to formation damage, and as yet none of the operators has discovered a means by which this formation damage can be effectively eliminated. There is evidence that formation damage may occur solely~as the result of shutting in a well and leaving it off production for a period of only a few days. One possible explanation for this is that we know from production profile surveys that crossflow between layers in the formation occurs during shut-in periods. There is also a possibility that particle disturbance in the vicinity of the well bore caused by this crossflow could result in permeability reductions. Recent production and pressure data gathered on Well K-4 on the King Salmon Platform substantiate the l iP, eihood that well bore damage occurs as the result~ of shutting in an oil well for a period of a few days even if the well produces no appreciable quantities of formation water, in January 1970, a production test and pressure survey was run on Well K-4 to analyze the efficiency of the gas lift installation in this well. At that time, the well was producing 1,86] BOPD with no measurable amount of water. Gas lift gas was beir, g injected at the rate of 995 MCFPD to maintain this production rate. From the pressure survey analysis, we determined that the flowing bottom hole pressure at this production rate was 1,874 psi. The static reservoir pressure in the vicinity of Well K-4 at this point in time was calculated to be 2,880 psi resulting in a productivity index for this well of 1.75 barrels of fluid per day per psi drawdown. On March 17, 1970, the well was shut in for a wireline type workover to change out the wireline retrievable gas lift valves. Due to mechanical d. ifficulties, this work was not completed until March 25, 1970, at which time the well was returned to produo-tion with a new gas lift valve design. The well was retested on April 16, approximately 20 days after it was returned to p~oduction. The production rate at this time was 1,728 BOPD with a water cut of approximately one percent. The injected gas volume at this time was 1,136'MCFBD. A pressure analysis survey run after the workover to evaluate the gas lift installation indicated that there had been an improvement in the gas lift operation itse]f. The flowing bottom hole pressure after the workover was measured' at 1,732 psi. The static reservoir pressure in the vicinity of Well K-4 was calculated to be in excess of 2,880 psi at the time of the second survey. The pi calculated for the 1,728 BOPD production rate would be 1.5] BOPD per pound of reservoir pressure drawdown. This compares with the 1.75 pi 'calculated prior to the workover. We believe that the data gathered for this well is strong evidence that well bore damage may result from a shut in lasting for a period of several days. This concern has caused us to 'avoid any unnecessary shut-in time for' the oil producing wells on the King Salmon Platform. - 2 - O'F · ~ STATE OF ALASKA, ) THIRD JUDICIAL DISTRICT, ) ss. being first duly sworn on oath deposes and say8 that .... ~..~..0. .... is the ..... .L...e..g...a..~...?...1..e...z'..l. Cof the Anchorage News, a daily news- paper. That said newspaper has been approved as a legal news- paper by the Third Judicial Court, Anchorage, Alaska, and it is now and has been published in the English language continually as a daily newspaper in Anchorage, Alaska, and it is now and during all of said time was printed in an office maintained at the aforesaid place of publication of said news. paper. That the annexed is a true copy of a ...IJ...e.~..a...1.....~..9..'l?..J:..o..e... as it was published in regular issues (and not in supplemental form) of said newspaper for. a period of ..... .0...~...e ...... insertions, commencing on the ...... .l..9.dny of :....~..~.~ ............... ,'19~..Q..., and ending on the ..... .1..~ ......... day of of May ' , 9 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 $ 11,50 which amount has been paid in full at the rate of 25¢ per line; Mini- mum charge $7.50. · S bscribe,~d sworn to before me this .?l'..cg. day of.},~-~.3r ........... , 19 .... .7.0 Notary Public in and for the State of Alaska, , Third Divhion, Am:horage, Alaska Y CQ~I~ION EXPIRES // .... ........... 2¢0T?:~ O? P~.rBLIO, STATE OF ': ~'E.P~T,~IENT rSF NAT~TKAI', ~, ~,tSOU~CES D~SION OF OIL ,~ GAS' ,, Alaska O.~ ~d Gas Conservation .'. Commlt. t,e · Consen, al]on FIle"No. g~ /t,e: The req,,ost of l;rfilnn Oil Corn. pa_ny Of Cahf6rnla tn flare well gas from 't.h~ Tra~g .Bay TlnJt State D-la and I;bq Trading Bay Unit gtaf~ Ii'.2o weUs. Th~. Dj..[ and Gas Conservatloll Corrumittee has r~jected l;he re- quest of Unic,~ Oil C, ompany et , California for ~ emergency order ~r&ntang an exceptAon to 11 Alaska ,' A~. Code 2158 which would pea- mit the flartn~ of ga~ weU gas used f~r gas ].irt purposes. Union ,, Off Company of Calffor~a subs~ q~e~tly requested that a hearing be h~Id pursuant to 11 ~aska ~,,, A~m. Code ~0~ to eo~ifler the , ~ranting of an extortion to 11 j...~ Al~s~ A~. Code ~1~. The 0/1 and Gas Conservation Committee will h61d a public hear. tn~r on this matter on 1970, J_n bhe Ben Craw£ord Memorial BulJ~ng, Third Avenue and Eagle Street, A.ncho~'age, Alaska. at 9:30 a.m.. at which hme interested and affected p~rties wfl[ be heard. Thomas R. Marshall, Jr, , ,, ExecuB.ve Secretary · ., Cnnse~atibn C~tt~o -'[ 3001 Porcupine Drive ~ehorage, ~aska 99504 YubH~: ~aYhl.9,. 1970. L6g~ N& t ice h"i/i'Y gz · DIVISION OF C';L AND GAS ANCHORAG.~ NOTICE OF PUBLIC HEARING STATE OF ALASKA DEPARTMENT OF NATURAL RESOURCES DIVISION OF OIL AND GAS Alaska Oil and Gas Conservation Committee Conservation File No. 92 Re: The request of Union Oil Company of California to flare gas well gas from the Trading Bay Unit State D-18 and the Trading Bay Unit State K-20 wells. The Oil and Gas Conservation Committee has rejected the request of Union Oil Company of California for an emergency order granting an exception to 11 Alaska Adm. Code 2158 which would permit the flaring of gas well gas used for gas lift purposes. 'Union Oil Company of California subsequently requested that a hearing be held pursuant to 11 Alaska Adm. Code 2009 to consider the granting of an exception to Il,Alaska Adm. Code 2158. The Oil and Gas Conservation Committee will hold a public hearing on this matter on May 29, 1970, in the Ben Crawford Memorial Building, Third Avenue and Eagle Street, Anchorage, Alaska, at 9:30 a.m., at which time interested and affected parties will be hear~ Thomas R. Marshall, Jr. Executive Secretary Alaska Oil and Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99504 Publish May 19, 1970 Union Oil and Gas I~ " Western Region Union Oil Company of California 2805 Denali Street, Anchorage, Alaska 99503 Telephone (907) 277-1481 HL~ May 15, 1970 OK(~ KLV ....... HwK unl, n State of Alaska Oil and Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99504 FILE APPLICATION FOR EXCEPTION TO SECTION 2158(b) OIL AND (;AS CONSERVATION REGULATIONS TRADING BAY UNIT STATE D-18 Gent l emen: Pursuant to the Oil and Gas Conservation Regulations and the applicable statutes of the State of Alaska, Union Oil Company of California, as Unit Operator of the Trading Bay Unit, requests the Alaska Oil and Gas Conservation Committee i~ssue an emergency order and an order al lowing exception to Sect. ion 2158(b) of said Regulations to permit the escape into the air of gas from the Trading Bay Unit State D-18 well after use for the artificial lifting of oil from the HcArthur River Hemlock Oil Pool. This exception is requesteci for the period commenci.ng Hay 16, 1970 through June 30, 1970, The first gas compressor was installed on the Dolly Varden Platform and became operational early in 1969. The installation of the second gas compressor was commenced in the latter part of 1969 and will become operational by June 30, 1970. When this installation is completed the necessity for the use of gas well gas for gas lift purposes on said platform will be eliminated except in cases of operational necessity. In the interim, gas well gas from the TBUS D-18 well has been utilized and is programmed to be used to maintain the current rate of production through gas lift. The second compressor is being installed and will not be operational when revised Section 2158 of the Conservation Regulations becomes effective. It is estimated that without this utilization of gas well gas the production from the Dolly Varden Platform will be curtailed bY 8,000 to 10,000 barrels per day until such time as the second compressor becomes operative. Therefore, your earliest consideration of this request is required. Very truly you rs, UNION OIL COMPANY OF CALIFORNIA Unit Operator B~Y':Robert T. Anderson / Attorney-i n-Fact ~ ., Register , 1970 NATURAL RESOURCES 11AAC 2158. II ARC 2158. GAS UTILIZATION. (a) Gas from a gas well may be used for; (1) Light or fuel. (2) Efficient chemical manufacturing. (3) Injection to increase the ultimate recovery of hydrocarbons, or for storage. (4) The extraction of liquid hydrocarbons therefrom provided the gas is not wasted. (5) The artificial lifting of oil from a pool provided all gas returned to the surface Is used without waste. (b) No gas from a gas well may be permitted to escape Into the air without committee approval except; (1) When required for safety. (2) When required for initial testing. (3) To artificlally lift oil from a pool in cases of operational necessity provided no such escape be for more than five days wlthln any 30 day period. (c) The dispOsition of gas well gas production shall be reported each month on Form G-7. (In effect before 7/28/59; am 6/20/64, Register 16; am 9/30/67, Register 25; am , Register ) Note: Included as il AAC 2162 prior to 9/30/67. i"."]]' Authority: AS 31.05.020 '' AS 31.05.030 .- 11-20 This regulation change was filed with the Secretary of State on April 16, 1970, and-will be effective May 16, 1970. TOTAL GAS WELL PRODUCTION Trading Bay Unit November December January February l~rch November December January February March GraylinK 306,082 214,117 137,360 64,546 137,685 Total Fuel Usage. 136,279 151,624 220,672 114,113 265,861 Dolly Varden ~ng Salmon Total 146,805 282,039 734,926 171,180 308,721 694,018 168,752 249,031 535,143 128,113 190,364 383,023 176,613 138,688 452,986 L.E.X..Total Processed 193,802 394,135 Total Gas Lift 1,000,213 966,448 1,500,151 1,280,677 1,554,069 5/12/70 Grayling Compressor Down Time March 7 2 hours Platform shut down 13 12 hours Compressor bearing 14 24 hours 15 24 hours 16 24 hours " 17 ' 24 hours " 18 16 hours Platform shut down 20 1-1/2 hrs Alignment shut down 21 1-1/2 hrs " 28 12 hours Heat exchanger leak 29 24 hours " 30 24 hours " 31 24 hours " 104 hOurs total down 1 11 hours partia 1 down