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Home My WebLink AboutCO 089 Conservation Order Cover Page XHVZE This page is required for administrative purposes in managing the scanning process. It marks the extent of scanning and identifies certain actions that have been taken. Please insure that it retains it's current location in this file. ~_~? Conservation Order Category Identifier Organizing RESCAN DIGITAL DATA OVERSIZED (Scannable with lame plotter/scanner) [3 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: ROBIN ~ Scanning Preparation TOTALPAGES,, /7 BY; ROBIN ~ Production Scanning Stage 1 PAGE COUNT FROM SCANNED DOCUMENT: / "~ PAGE COUNT MATCHES NUMBER IN SCANNING PREPARATION: ..~___ YES NO Stage 2 IF NO IN STAGE 1, PAGE(S) DISCREPANCIES WERE FOUND: YES NO (SCANNING IS COMPLETE AT THIS POINT UNLESS SPECIAL A~rENTION 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 Oil and Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99504 Re; THE APPLICATION FOR modification ) of Conservation Order No. 62 Rules (a),) (b), and (c) for Pan American Petroleum ) Corporation Middle Ground Shoal 17595 ) Well No. 4 to permit commingling of ) fluids produced from MGS "A" Oil Pool ) with fluids from MGS "E," "F," and "G" ) Oil Pools without downhole check valves ) and to permit semiannual well tests. ) Conservation Order No. 89 Middle Ground Shoal Field MGS "A" Oil Pool MGS "E" Oil Pool MGS "F" Oil Pool MGS "G" Oil Pool April 6, 1970 IT APPEAR I NG THAT: 1. Pan American Petroleum Corporation submitted a petitiondated February 13, 1970, requesting the referenced order. 2. A notice of public hearing was published in the Anchorage Daily News on February 26, 1970, pursuant to Title 11, Alaska Administrative Code, Section 2009, but no protest was received. 3. Conservation Order No. 62 permitted commingling of production from the MGS "A" Oil Pool and the MGS "E," "F," and "G" Oil Pools in the referenced AND ~]FURTHER APPEARING THAT check valves are not necessary to prevent flow between the commingled poo~s unless the well is shut in for an extended period of time. AND IT FURTHER APPEARING THAT semiannual production tests of each pool commingling group are sufficient because water flood operations are. being conducted and the pressures are tending to equalize. NOW, THEREFORE, IT IS ORDERED THAT Pan American Petroleum Corporation be permitted to commingle production from the "A" pool and the "E," "F," and "G" pools in the referenced well provided that: (a) A suitable mechanical device be installed to prevent flow between the pool commingling groups if the well is shut in for an extended period. CONSERVATION ORDER NO. 89 Page 2 April 6, 1970 (b) Prior to removal of the downhole check valve, a 24-hour production test of the "A" pool shall be made and after removal a 24-hour test of the commingled pool groups shall be made and all tests shall be filed with the Committee. (c) A 24-hour production test of the "A" pool and a 24-hour production test of the commingled pool groups shall be made semiannually thereafter and filed with the Committee. IT IS FURTHER ORDERED THAT Conservation Order No. 62 is cancelled. DONE at Anchorage, Alaska, and dated April 6, 1970. Thomas R. Marshall, Jr., Executive ~ecretary Alaska Oil and Gas Conservation Committee Concurrence: Homer L Burrell, Chairman Alaska Oil and Gas Conservation Committee O. K. G i i b'r~th, J r.,- M~m~" .......... Alaska Oil and Gas Conservation Committee 8o2o2 ~s it., lint,~! It s: ,~. PAN AMERICAN PETROI EUM COILOOI ..TION SECURITY LIFE BUILDING DENVER~ COLORADO 80202 TRM ~ ~' OKG KLV ..... ~.-';. ~L i:l LE .... April 10, 1970 File: .~,~R-831-986.511 Re: Application for Modification, by Adm~inistrative Approval, of Conservation Order No. 62, Rules (a), (b) and (c) for Middle Ground Shoal 17595 Well No. 4 to Permit Commingling of Oil and Gas Produced From MGS Oil Pool ~A'~ with Oil and Gas Produced from ~.~GS Oil Pools '~E", and "G' Without the Installation of Downhole Check Valves and to Permit Semi-Annual Rather Than Quarterly Well Tests Mr. Thomas R. Marshall, Jr. Executive Secretary Alaska Oil & Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99504 Dear ?lr. Marshall: It's a bit unusual for me to be tracing a Conservation Committee as to the whereabouts of the captioned Order we requested from you on February 13, 1970, by a~ninistrative approval. Perhaps with the recent postal strike, you did issue the Order but we never received it. I know that with you gentlemen being so efficient there must be a logical answer to my question "Where is it?' Best Regards ~ A !,~f C k! 0 R A G E · .,., · .. ,;;::i'.'.~:L;'~SKA CONSErVATiON SocieTY ..:'.::~ ,':, :~:,.~k..":,,... K E N A i P;~.N,:.~'N., S U L a C h a p t e r . .;...;..: · ..,.- .~. ?" P.O. BOX 563 SOLDOTNA ALASKA 99669 17 March 1970 Secretary, Oil and Gas Conservation Committee 3001 Porcupine .~rive Anchorage, Alaska 99504 RE: File No. 89-?an American Request for"downhole check valves" In a notice dated 26 February. 1970, you indicated that an exception for "downhole~'check valves" had been requested by Pan American. This prompts the following questions: 1. Could you confirm that the locations of the wells in question are in offshore Cook Inlet? 2. Does the requested exemption have to do with any safety devices which would prevent a runaway well in the event of fire, collision, etc? Is the device' in question anything comparable to that which permitted the terrible trouble in the Gulf of Mexico off the Louisiana Coast which has been in the national news so much recently~ 3. With respect to safety, valves or "blowout preventors" or the type of valve that will shut off a well if it starts to flow out of control, how does the State assure that such devices are installed and properly operating? Has the State ever issued any waivers for installation of such safety equipment on off-shore Cook Inlet wells? ~. Does the State have any type of inspection program to assure that safety devices are installed in accordance with its regulations? If it does not have such a program of inspection, why does it not have such a program. Thank you very much for .a~ssistance and answers you may be~a~e to provide~to~ ~h~,. ~/questions. / / y ours Kena~ Peninsula Chapter E, ~ (' ( % ~ (' O Alas ~ Conservation Society ~~ Ce STATE OF ALASKA, ) THIRD JUDICIAL DISTRICT, ) ss. being first duly sworn on oath deposes and says that...i411C ..... the i:e"~'-'al Clc..i*k of the is ....... :,' ........................ 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 publicafio.n of said news- paper. That the annexed is a true copy of a ....~.e..~.~....~{..o..~.~.g..e. 2395 as it was published in regular issues (and not in supplemental form) of said newspaper for. a period of .... ..0..~..~ ...... insertions, commencing on the ..... 2.6..day of ...~.~.~.]0,,~.t~a.,-Cy...;19 ...~ 0, and ending on the .... ~.~ .......... day of of ..:~q.?.?-~-~"~'--Y----: ..... , 19ff--0--., 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 $ '] 3.7~hich amount has been paid in full at the rate of 25¢ per line; Mini- mum charge $7.50. me this --2-6 day of....~l.%~=&~y r Notary Public in anc~ (f6~r the State of Alaska, Third' Division, Anchorage, Alaska .~/ CONV~AIS~ION EXPIRES ,,...7/ 'NOTICE OF PUBLIC HEARING STATE OF ALASKA J DEPARTMENT OF NATURAL , RESOURCES ~ J · D1VISION OF OIL AND GAS. Alaska Oil and Gas Conservation Committee C. ouservation File No. 89 Re: The applie.a~ion' o~ Pan AnlerJ. c;,n Petroleum Corporation for modi[ication o£ Conservation Of der. No. 62, Rules (a), (b), and {c), £or ,Middle Ground Shoal 17595 Well Pool ,"A" with oil and gas produced from'MGS Oil ..J Pools "E," "F," and "G" without , the installation of downhole J check valves and to permit l' semiannual rather than quarter-, i ly well tests. i Notice is hereby given that the' ',Pan ~merican Petroleum Corpora-~ tion has petitiondd the Alaska Oil' ,and Gas Conservation Committee '.£or an order granting an exception: .to Conservation Order No. 62. Pur-$ (suant to Title Il., Alaska Adminis.~ tr~tiVe Code, Section 2009, parties wino may bc aggrieved if the re. quested order is issued are allowed ten days £rom the (late o£ this publ lication in Which to file a protest and request :l!o.r hearing. The place £or filing is 3001 Porcupine Drive, Anchorage, Alaska 99504. If such a protest is 'timely filed,'a hearing on ~h¢ mat;l:er will be. hel~l at; thc abdve 'address at 9:30 a.m., ~arch 9, 1970, at Which t me protestants and oth. ers may b~. heard. If no such pro- test is timely I'ilcd, the Committee will consider the issuance o£ the e,rder withot, t a hearing. ' . , .,, ':['{lomas ]{,, Marshall, Jr.' ]~ Xtt(:U t iVt'~ Secretary ..'' Alaska Oil and Gas'. :' CollscrvatioR Committee ~ ": ~ , : 3001 Porcupine Drive Anci~orage, Alaska 99504 . , .:Publish: ]~ebruary.26, 1970 . . . iL(gal Notice No. 2395 " 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. 89 Re: The application of Pan American Petroleum Corporation for modification of Conservation Order No. 62, Rules (a), (b), and (c), for Middle Ground Shoal 17595 Well No. 4 to permit commingling of oil and gas produced from MGS Oil Pool ~A~ with oil and gas produced from MGS Oil Pools ~E,~ 'F,' and ~'G' without the installation of downhole check valves and to permit semiannual rather than quarterly well tests. Notice is hereby given that the Pan American Petroleum Corporation has petitioned the Alaska Oil and Gas Conservation Committee for an order granting an exception to Conservation Order No. 62. Pursuant to Tit~e 11, Alaska Administrative Code, Section 2009, parties who may be aggrieved if the requested order is issued are allowed ten days from the date~of this publication in which to file a protest and request for hearing. The place for filing is 3001 Porcupine Drive, Anchorage, Alaska 99504. If such a protest is timely filed, a hearing on the matter will be held at the above address at 9:30 a.m., March 9, 1970, at which time protestants and others may be heard. If no such protest is timely filed, the Committee will consider the issuance of the order without a hearing. Thomas R. Marshall, Jr. Executi ve Secretary Alaska Oil and Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99504 .Publish February 26, 1970 SHELL OIL 'COMPANY 430 7th AVENUE ANCHORAGE.. ALASKA 99501 Pan American Petroleum Corporation Security Life Building Denver, Colorado 80202 Attention Mr. W. M. Jones Gent lemen: We have reviewed your application for modification of Conservation Order No. 62, Rules (a), (b) and (c) for Middle Ground Shoal 17595 Well No. 4 to permit comingling of oil and gas produced from MGS pool "A" with oil and gas produced .from MGS oil pools "E", "F" and "G" without the installation of downhole check valves and to permit semi-annual rather than quarterly well tests. Shell, the operator for the SAS Group, has no objection to your proposal. GRG/b t Very truly yours~ R. L. Warden Division Production Manager CC: Standard Oil of California P. O. Box 7-839 · Anchorage, Alaska 99501 STATE OF ALASKA DEPARTMENT OF NATURAL RESOURCES DIVISION OF OIL AND GAS ALASKA OIL AND GAS CONSERVATION COMMITTEE RE: THE APPLICATION OF PAN AMERICAN PETROLEUM CORPORATION FOR MODIFICATION, BY ADMINISTRATIVE APPROVAL, OF CONSERVATION ORDER NO. 62, RULES (a), (b) AND (c) FOR MIDDLE GROUND SHOAL 17595 WELL NOo 4 TO PERMIT COMMINGLING OF OIL AND GAS PRODUCED FROM MGS OIL POOL "A" WITH OIL AND GAS PRODUCED FROM MGS OIL POOLS "E", "F" AND "G" WITHOUT THE INSTALLATION OF DOWNHOLE CHECK VALVES AND TO PERMIT SEMI-ANNUAL RATHER THAN QUARTERLY WELL TESTS APPLICATION COMES NOW, Pan American Petroleum Corporation, on behalf of itself, Phillips Petroleum Company, Atlantic Richfield Company and Skelly Oil Company, (said four companies being the members of the "Chakachatna Group"), and respectfully presents this Application to the Alaska Oil and GaS Conservation Committee and in support thereof states: Conservation Order NOo 62 entered by the Alaska Conser- vation Committee on March 27, 1968, granted Pan American permission to commingle oil and gas produced from MGS Oil Pool "A" with oil and gas produced from MGS Oil Pools "E", "F" and "G" at MGS 17595 Well No. 4 "provided that: (a) Downhole check valves are installed to prevent backflow between the "A" pool and the "E", "F" and "G" commingled pools," and "(b) Prior to initial downhole commingling, a 24-hour production test of the "A" pool be made, a 24- hour test of the "E", "F" and "G" pools be made and a 24-hour test of the Commingled groups be made," and "(c) Well tests as indicated in (b) above be made quarterly until such time as the test require- ments of Rule 1 (b) of Conservation Order No. 56 for the MGS 17595 No. 11 well have been met and after that well tests be made on a semi- annual basis." Applicant herein requests administrative relief from provisions (a), (b) and (c) quoted above of that Conservation Order because: 1o Downhole check valves have become increasingly difficult to remove for required periodical production tests on account of carbonate scale buildup around the check valves during normal production of reservoir fluids at MGS Well NCo 4 between test periods° Operator anticipates future such difficulties could lead to loss of tools or cable downhole during attempts to remove. the check valves for test purposes° Elimination of the check valves from the downhole producing equipment at Well NCo 4 should not allow back- flow between the "A" pool and the "E", "F" and "G" commingled pools unless the well is off production an unreasonable length of time° The anticipated infrequency of such extended downtime in the-future does not justify, in Applicant's opinion, the risk and expense of a major mechanical problem that could result from continued installation of said check valves, particularly since-it is not anticipated by-the operator of the' well, nor would it be to his benefit or the lessors benefit~ that an unreason= able length of downtime will occur which might allow backflow between pools to take place° Applicant is conducting waterflood operations in the referenced MGS pools and recognizes the possibility of backflow under certain conditions~ if the check valves were eliminated from this producing well. Operator would, however, immediately upon noticing any excessive water production in any of the pools at Well No° 4 .DIVISION OF OiL XiqD ANCHOPJ-,C 2 o in its normal course of prudent operations conduct tests to determine whether such backflow is occurring or is likely to occur, and, if necessary, take remedial action in that well to prevent any backflowo A plug or other suitable device would be set between the commingled pools to prevent any backflow during water shut-off remedial operations° This assurance then should remove any cause for concern if the check valves were eliminated from Well NCo 4o For prudent and practical operation of Well No. 4, Applicant, therefore, requests a modification to Conservation Order Nco 62 Which provides- "(a) Downhole check valves need not be installed in'MGS Well No. 4 to prevent backflow between the "A" pool and the "E", "F" and "G" commingled pools provided a suitable mechanical device is installed in the well to prevent backflow any' t~e the well is subject to extended downtime for water shutoff or any other cause of interrupted productiono" Inasmuch as waterflood operations are being conducted in the referenced MGS pooisv the pressures in =h~e pools are tending to equalize as tii~ goe~ oho The need for well tests as frequently as each does not, therefore, exist; sem~i~annual ~ell te~ts would be far more practical and still meet the needs for adeqUate test data at Well No° 4o Reducing the frequency also would reduce the risks associated with downhole test procedures, particularly the manipulation of dog. hole equip= ment to accomplish these tests, besides also ~. '~ i'~ ;'." ~IVISION OF o!L ,~.l'r~ reducing the freq~.~.~nc!~f of inter~ption of the progress and recovery therefrom of oil from the waterflood project° Applicant may take se.qfc- gated well tests at more' frequent times than on a semi-annual basis if such testing is indicated to be necessary or desirable and would, of course~ report these more frequent tests to the State° Past tests have revealed that the "E"t "F" and "G" pools will not produce by themselves o Conse~ quently only tests of the "A" pool by itself and tests of the commingled groups can be made° In this way, the difference,-between the two tests can be assigned to the "E" "F" and "G" pools Applicant, therefore ~ requests a modification to Conser- vation Order No. 62 to provide: "(b) Immediately following removal of the down- hole check valve, a 24-hour production test of the "A" pool be made followed by a 24- hour test of the commingled "A" - "E", "F" and "G" groups° (c) Well tests as indicated in (b) above be made on a semi-annual basis°" Iio Shell Oil Company is the operator for the only other affected parties concerned with this Application° There is attached to this Application a letter from Shell Oil Company~ a~ Operator for itself, Standard Oil Company of California~ and the Atlantic Richfield Company~ indicating that Shell ha~ no objection to the request made in this Application~ WHEREFORE, Applicant respectfully requests that its Application for modification, by administrative approval, of Conservation Order No. 62, Rules (a), (b) and (c) for Middle Ground Shoal 17595 Well No. 4 to permit-commingling of oil and gas produced from MGS oil pool "A" with oil and gas produced ~-D,, '¥ '%F" and "G" without the installation of from MGS oil pools \ downhole check valves and to permit Semi-annual rather than quarterly well tests, be granted. Respectfully submitted, PAN AMERICAN PETROLEUM CORPORATION Its Att'orney DIVISION OF 0~. Security Life Building Denver, Colorado 80202 - 4 - VERIFICATION AND AFFIDAVIT STATE OF COLORADO ) ) COUNTY OF DENVER ) SS R. B. GILES, of lawful age, being first duly sworn on .. his oath, deposes and says: That he is employed by Pan American Petroleum Corporation as an engineering supervisor in its Denver· Colorado office; that Pan American's Application for modification, by administrative approval, of Conservation Order No. 62, Rules (a), (b) and (c) for Middle Ground Shoal 17595 Well No. 4 to permit commingling of oil and gas produced from MGS oil pool "A" with oil and gas produced from MGS oil pools "D" "" "G" · F and without the installation of downhole check valves and to permit semi-annual rather than quarterly well tests, was prepared under'his direction and supervision; that the matters and things therein set forth are true and correct to the best of his knowledge and belief. Subscribed and sworn to before me on,.this~ ~~ day of February, 1970. Notary Public My CommiSsion expires: MAILING LIST Mr. R. Lo Warden Shell Oil Company 430 Seventh Avenue Anchorage, Alaska 99501 Mr. H. W. Patterson Phillips Petroleum Company 1300 Security Life Building Denver, Colorado 80202 Mr. F. Lo Franz Skelly Oil Company 1088 Lincoln Tower Building Denver, Colorado 80202 Mr. Ralph Crews 926 Sixth Avenue Anchorage, Alaska 99501 Mro J. D. Carmichael Standard Oil Company of California 225 Bush Street San Francisco, California 94120 Mr. Ralph F. Cox Atlantic Richfield Company P. O. Box 360 Anchorage, Alaska 99501 Mr° T. J. Files Pan American Petroleum Corporation Security Life Building Denver, Colorado 80202 Mr° F. K. Krebill Pan American Petroleum Corporation Po Oo Box 779 Anchorage, Alaska 99501 DIVISION OF OIL ,iND GAS ANCNOi~,C a PAN AMEmCAN PETI OLEUM COILDOP. ATION SECURITY LIFE BUILDING DENVER., COLORADO 80202 February 13, 1970 File: AMR-224-986. 511 TRM ~ OKG KLV ..... REL ., FILE Re- Application for Modification, by Administrative Approval, of Conservation Order No'~ 62, Rules (a), (b) and (c) for Middle Ground Shoal 17595 Well NO o 4 to Permit Commingling of Oil and Gas Produced From MGS Oil Pool "A" with Oil and Gas Produced from MGS Oil Pools "E" "F" and "G" Without the Installation of Downhole Check Valves and to Permit Semi-Annual Rather Than Quarterly W,e l~.l,., Te,,sts ...... =:- , ............... ................. ~--- Mr. Thomas Ro Marshall, Jr. (3) Executive Secretary Alaska Oil & Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99504 Dear Mr. Marshall: Filed herewith on behalf of the Chakachatna Group of companies is the captioned Application for administrative approval by the Alaska Conservation Committee. Shell is operator for the only other affected parties con~ cerned with this Application. A copy of Shell's letter indicating' no objection is a part of the enclosed Application° Attachments cc: See Attached Mailing List Yours very truly, DIVISION OF OIL ;-%ND O&5 ANCH0~qG~