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Home My WebLink AboutCO 163Conservation Order Cover Page XHVZE This page is required for administrative purposes in managing the scanning process. It marks the extent of scanning and identifies certain actions that have been taken. Please insure that it retains it's current location in this file. Conservation Order Category Identifier Organizing RESCAN [] Color items: [] Grayscale items: [] Poor Quality Originals: [] Other: NOTES: DIGITAL DATA [] Diskettes, No. [] Other, No/Type OVERSIZED (Scannable with large plotter/scanner) [] Maps: [] Other items OVERSIZED (Not suitable for plotter/scanner, may work with 'log' scanner) [] Logs of various kinds [] Other BY: MARIA Scanning Preparation TOTAL PAGES Production Scanning Stage I PAGE COUNT FROM SCANNED DOCUMENT: /~ PAGE COUNT MATCHES NUMBER IN SCANNING PREPARATION: ~. YES ~ NO Stage 2 IF NO IN STAGE 1, PAGE(S) DISCREPANCIES WERE FOUND: YES NO (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 ALASKA OIL AND GAS CONSERVATION COMMISSION 3001 Porcupine Drive Anchorage, Alaska 99501 Re: THE APPLICATION OF SHELL OIL) COMPANY for an order ) granting an exception to ) Title 11, Alaska Administra-) tive Code, Section 22.240 ) for the Middle Ground Shoal ) No. A-14A-01 well. ) Conservation Order No. 163 Middle Ground Shoal Field MGS Oil Pool A February 28, 1980 IT APPEARING THAT: · Shell Oil Company submitted an application dated January 23, 1980 requesting an~exception to' Title 11, Alaska Administrative Code, Section 22.240, which deals with gas-oil ratios and wells producing gas from an oil pool, for the Middle Ground Shoal No. A-14A-01 well and for all wells which may be completed or recompleted in the MGS Oil Pool A in the future. · The MGS Oil Pool A was defined on August 4, 1966 in Conservation Order No. 26. · Production from the MGS Oil Pool A began in September, 1967, a total of 1,842,643 barrels of oil, 4,162,317 MCF of. gas and 1,104,244 barrels of water were produced and there has been no production since September, 1974. · The Middle Ground Shoal No.. A-14A-01 well was completed and shut-in in August, 1969 after production tests indicated it would produce only gas. · The Middle Ground Shoal No. A-14A-01 well is probably completed in a gas-bearing sand lense that is not con- nected with the oil-bearing sands, based on evidence presented at public hearings, structural position and recovered hydrocarbons. · There has been no oil production from the southern portion of the MGS Oil Pool A where the referenced well is located. · Oil and gas production is declining in the Middle Ground Shoal Field and Shell Oil Company will require additional gas supplies in the near future for Plat- forms A and C, which are operated by Shell Oil Company. Conservation Orde~'~ ,~'~o. 163 · . 10. Notice of the application was published in the Anchorage Daily News on February 14, 1980· There were no protests to the application. Amoco Production Company, the only other operator in the field, supported the application with a letter of non-objection. FINDINGS: · · · · · There has been no oil production from the MGS Oil Pool A for 5.5 years and there may be no oil production in the future. There is the capability of producing gas from the referenced well .but the gas-oil ratio regulation will not permit this. If the gas is not produced before oil production ceases, it will not be economic to produce. The evidence is not sufficient to exempt all recompletions and future completions from the gas-oil ratio, regulation. In the near future, additional gas supplies will be required for fuel and gas lift requirements on the pro- ducing platforms in the Middle Ground Shoal Field. CONCLUSIONS: The requested exception will provide for a gas supply for platforms in the Middle Ground Shoal Field. Blanket exception for the MGS Oil Pool A is not warranted at this time. Gas produc- tion should take place now to prevent waste. The correlative rights of the two operators in the field will be protected. NOW, THEREFORE, it is ordered that: The Middle Ground Shoal No. A-14A-01 well is exempted from the requirements of Title 11, Alaska Administrative. Code, Section 22.240 for the producing life of the well. -2- Conservation Orde{ No. 163 DONE at Anchorage, Alaska and dated February 28, 1980. Chairman/Commi s s ioner Alaska Oil and Gas Conservation Commission Lohnie C S miter' Commi s s ioner Alaska Oil and Gas Conservation Commission Harry W.~ Kugler / CommiSsioner Alaska Oil and Gas Conservation Commission A. M. Roney Division Production Manager February 11, 1980 State of Alaska Alaska Oil and Gas Conservation Commission 3001 Porcupine Drive Anchorage, AK 99510 Amoco Production Comp?~, Denver Region ' J'~-I-2'E~~ Security Life Building J , ~ ~, % -.~ Denver, Colorado 80202 Western Division ~.-~j- -4' 5 :XJ ~ ...... 303- 820-4040 ,~--~ __. ~_[ STAT - File: RJB-109-986.51 Gentlemen: Exception to GOR Rule Reference is made to Shell Oil Company's letter of January 23, 1980, requesting an exception to the Gas-Oil Ratio Rule as stated in Section 11, AAC 22.240 Oil and Gas.Conservation Rules of the Alaska Administrative Code. This is to advise that we have no objection to granting Shell's request. Very truly W~P/mlm cc: Anchorage District Office ZI836 ADVERTISING ORDER NOTICE TO PUBLISHER INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIEDAFFIDAVlT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF ADVERTISE- MENT MUST BE SUBMITTED WITH INVOICE. chorage .Daily t~e%.~ 0 Potter Road Pouch 6616 I i ~chorage, glas~ 99502 ~laska Oil & Gas Conservation Ccn%~ssion ~001 Porcupine Drive ~chorage~ klaskia 99501 VENDOR NO. 2. PUBLISHER DEPT, NO. A.O, NO. 4038 DATE OF ~.o. Fekruary. ll,1980 DATES ADVERTISEMENT REQUIRED: 1980 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. BILLING ADDRESS: AFFIDAVIT-OF-PUBLICATION UNITED STATES OF AMERICA STATE 0 F ~/"~(~ _~ ~¢'-¢/,...., NOfl(;e;o , , ' ' PublicHea,¢lng . STAT E O1~ ~Ti~A~,~A , COn~rvafloR~iSSlon' coqse,~v~tlo~,F~ile NO,.' :.4,..".' ' . ~/.,~:.~:. ':: .,'. ] 'NOtice Is. here~y Jrven that I .S~ell Oil Compan~.':n~s I' e~':' ~he..AlaSka 011: .and /' SUe~,,.i'n'. or,er, grantl~g.:~n except. / ~en~s'",., of'. 'the . reterenc~'a ~ ~Vl'ation for".t~,: / ~ound Shoal No.' 1-14A:01 well ~ DIVISION. ~ .... BEFORE ME, THE UNDERSI~D, A NO~;PUBLIC THIS DAY PERSONALLY A P P E A R E D~',,~~~/,..LL,~. WHO, BE,NG FIRST DULY SW~RN'-~ ACCORD/~ING TO LAf?SAYS THAT .~S T. _~_c?.57~/L/~_.~ _OF/--~ ~~../.~~..}O~ PUB LISHED AT _(~~/(-~ (N SAID%IVlSlON ~ANDSTATE OF ~~~~ AND THAT THE WAS PUBLISHED IN SAID PUBLICATION ON THE / VY'~DAY OF /~~ 19~,AND THEREAFTER FOR (') CONSECUTIVE DAYS, THE LAST PUBLICATION APPEARING ON THE/~'~.DAY OF¢-.~(~ .19~_, AND THAT THE RATE CHARGED THEREON IS NOT IN EXCESS OF THE RATE CHARGED PRIVATE INDIVIDUALS. SUBSCRIBED AND SW.ORN TO BEFORE ME THI~-2~ DAY O~"~~'~F ,19 ~,. NOTARY PUBLIC FOR" ~ATE OF MY COMMISSION EXPIRES Whicll is completed in the Mid- dle Ground Shoal "A" OII Pool In"? the 'Middle, GrOUnd.'' 'Shoal. F eld..The operato~ states'thaT fhi%~ublect well :wa~ ~ompleted in .A~g~ist,, Of 1969,. that. prodUc- .tlei~J~t-es.ts have. Indlc. ated., the. WelJ,; tooe ,a: gas, proa,ucer ano t.h~:; th'e well,.'has bee!~ shUt-In .slil~'e."Com. p!eflon, Th· op.erat.or 'tUrther' sti~tes.: th.at .due. ;o .aa- c'l.til, ing~ oll prodUcti0n~, and. In~ Cl'e'~sed, wa.ter, produc, tion, there, .Will be.:'ln the.' near tuture . a', Stl0~tage 'of. gas.., f~r:,' ':gas,'llff and" fuel requirements, for the Shell 'A" and ."C" platforms. The operator further states that there has.been no oil produc- tlon..from the Middle' Ground Shoal "A' OII Pool since 1974 and.that the piitentlal for future oll p.i'oductlon from the "A" oool Is very Ilmlteo. Partle,i who may be aggrieved If the referenced order Is Issued are allowed 10 days from the date of this publication In which to file a pfotest, stating/ In detail the nature of their[ agg~ievement and their request[ for a. hearing..The place filing ~s the AlasKa Oil and Gasi Conservation Commission, Porcupine Drive, Anchorage,/ Alaska 99501. If such a protest~ is timely filed, a hearing on the[ matter will be held at the1 atove .address at 9:00 AM, on ',.F.~ ibruarY' 26,'1980. a't .which time . 'm 0testants and .others' may be I ,ard; ,if no sUCh protest is[ ~elY filed, the.. Comm'isslon I cbnslder': the ssua'nce of ::il" .'Orderwlthouta.hearing~" ":' ..... ' ' "- HarryW.'Kugier ' ' commissioner ' Alaska 011 & Gas ' ..... Conservation ... commission AO 10-4038 " REMINDER- ATTACH INVOICES AND PROOF OF PUBLICATION. ADVERTISING ORDER NOTICE TO PUBLISHER INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF ADVERTISE- MENT MUST BE SUBMITTED WITH INVOICE. Ieg u ~z~'age 3ailz I c EO0 Pof..~_r i F ~~ Oil & Gas ~m~~on C~sion l ~ ~c~age,Alas~, 99501 VENDOR NO. 3. RECEIVING COPY DEPT. NO. A.O. NO. A0- 10 4038 DATE OF A.O. Fek~,~ !1,198 0 DATES ADVERTISEMENT REQUIRED: Februa~r 14, 1980 THE MATE,~AL SETWEEN THE DOUSLE UNES MeT SE "raNTED ~N ITS ENTIRETY ON THE DATES SHOWN. BILLING ADDRESS: ADVERTISE ME NT STATE OFALASKA ~btice of Public Hearing STATE, OF ALASKA Alaska Oil and C~s Conservation Ccmmissi~n Conservation File No. 163 Pc: I~ a~.~lication of Shell Oil Cc~ny, dated January 23, 1980, fo.r an oIder grant' inc~ an e~ception to Title I1, Alas~ Ac~',~is'trati~n~ Code, Section 22.240 for tt~ .F.'~ddle Ground Shoal No. A-14A-01 ~11. Notice is he_reby give~% that Shell Oil Cc~pany has rec~. '~ested tbs Alas~ Oil an~ Gas Consez~ation Co~ssion to issue an, order granting an e~ception to the g~s-oil ratio ra.~uir~nts of the refers%ced ra4~ulation for the P~iddle ~rou~] Shoal ~b. A-14A-01 which is c~,)leted in ~ MJ~dle ".Ground Shoal "A" Oil Pool in ~ Middle Ground Shoal Field. 'I~e. operator states t/~t. t~ sul~ject well was c~znpleted in Auc~st of l~CD, t2~at production tests jo3dicat~, t~m ~,~1t to b9 a gas prc~Jucer ar~l ~.%at the '~.11 bas keen shat-in s~tc%~ cc~pletion. The operator ~]rtJ~_r states that due to declinin[j oil duction a~,x~ increased ~ter ~roduction, ~ ~are will ~m ~]. the near ~ztu~m a s?Drtag~ of for gas lift and fuel require~nt~ fx~r tt~ Shell "A" and "C" platforc~s. '~'m; opera'tor furt~ states that th~_re has kx~e.n no oil p~eduction from the ~iddle C~ounct Shoal "A" Oil R~ol since 1974 an~ that the. ~t~%tial for ft~ture oil .~oduction f~oa t~ "A" ,pool is ve~f limited. Parties %J~) may lm aggrieved if the...referenced or, er is issued, are e~llow~9 10 ?lays the date of this ~%sblica%ion Jo% w~i%ch to file a ~otest, stating in detail the natssre of their aggri~ent and t~ir rec~st for a h~.~ing. The place of filing is the Alaska Oil and C~gs Cc~mer~ration C~~sion, 3001 Porcupine Drive, Anct'~)rage, Alas]~a 99501. If such a protest is t~ly filed, a l'~aring on t~ matter %~11 be, held at th9 akx)ve address at 9:00 AM on Fe.br~z 26, 1980 at which time. [~rotestants ~ others ~y ~e heard. If no such protest is timely fil~,, the Cc~mission will consider t~ issuance of the order %,n[thout a ha~ng. TO BE CO'~PLETED"BY ORDERING DEPARTMENT ' TOTAL ALL TRANS. DEPT. DIV. &FUNC- SUB PAGE NO. OF PAGES PAGESJ$ PROG. TION FUNC- OBJECT HWY. PROJECT PrR CENT OR ITEM NO. --- I 1 '['IONRECEIPTFUNCT., LEDGER I HEREBY CERTIFY THAT THE UN- ""f./,,~¢.. . , :' ,/~,/,'.~ ENCUMBERED BALANCE IN THE ~ Z; '~"""~,-- w APPROPRIATION CITED HEREON .~ .... SUFFICIENT TO COVER THIS PUR- = REQUISIT'~ON CHASE AND THAT THIS PURCHASE tS AUTHORIZED HEREUNDER. ~ DIVISIONAi~ APPROVAL / CERTIFYING OFFICER DATE ENTERED VOUCHER NUMBER . ,_ , DALLY N POUCH 6616 ANCHORAGE, ALASKA 99502 '- dv180 J 2/1 4/~0' 1 dv180 907 AK OIL OAS COI',ISERV COMM AO 10 40:3E.~ 3001 PORCUPINE DRIVE ANCHORAOE ALASKA '.;'9501 ,, . . 5 ; - ; FIRST W(')R[),S. ~' ' ' , 4 .',~"', ""' ' ,i, - I', ~..t.".r.' .' ,'"."' "'-'";':..-, Notice of Public Hear. in~ q 5 ...... ' AMOUNTS : , AMOUNT ~-:= .... ,. . ,,, ·. -- .,.,-,~' , ' :: PAYABLE UPON PRESENTATIO~ 'DETACH AND REfURN THISSTUB WITH YOUR REMITTANCEF " , ~, :he,: .... .. , ~-~-~ ,~ . '¢' ";,..."":' ", ' .~ ." .:...', "" ,'"' ~.' ,' ' ' ' · ~ '- . ; . ..., '. ,, , , . · , , . . , .... :' : January 23, 1980 .", '/?,, - ~, Shell Oil Company State of Alaska Alaska Oil and Gas Conservation Commission 3001 Porcupine Drive Anchorage, Alaska 99510 Gentlemen' 1200 Milam P,O Box 527 Houston, Texas COMM 7:. ?" ' ] I 2 ENG '7ot¥ 3 EN~- I ~ ,, L? GEOL j STAT TE~-- ~STAT'TEC'-- CONFER: -FT[F: .... Due to an anticipated shortage of produced gas for use as fuel and for gas lift, we are requesting an exception to the Gas-Oil Ratio Rule as stated in Section 11, AAC 22.240 Oil and Gas Conservation Rules of the Alaksa Administrative Code. If approved, the exception would allow us to produce gas for consumption or sale, at rates consistent with the productive potential of the well involved. The exception would apply to well A-14A-O1, Middle Ground Shoal Field, State Lease ADL 18754 and to other wells which maY be completed or recompleted in the State A pool in' the future. Well A-14A-O1 was completed in the State A pool in August, 1969. Production testing established that the well was a gas producer, and it was subsequently shut in. It has remained shut in until the present time. Efficient operation of our Platforms A and C in the Middle Ground Shoal Field require that we. obtain additional gas supplies in the near future. Presently our gas production is. sufficient to' Offset consumption and allow a slight excess. However, as oil. production declines, and water cuts increase, less gas becomes available, while requirements for fuel and gas lift remain constant or increase. In the near future, approximately six months .to one year, gas production will fall below consumption requirements and another source of gas will have to be found, or gas consumption decreased. Well A-14A-O1 would provide the needed extr~ gas for use on the Middle Ground Shoal platforms. The St.ate A pool is not now, and never has been, oil pro- ductive on the ADL 18754 lease. The only oil production from the A pool has come from farther north, from wells located on Platform RAKER, operated by 'Amoco. None of these wells have produced any oil from the A pool since 1974. The future oil. productive potential of the A pool is very. limited, and appears to be non-existent in the area near well A-14A-O1. There are several possible, solutions to the anticipated gas shortfall. One solution is to decrease requirements by halting production of marginal wells, thereby releasing more gas for use in lifting the more economically attractive wells. This solution would result in lower ultimate oil recovery from the 'field. Another possible solution is to purchase gas from onshore utilities. This gas would be much more expensive, resulting in a shorter economic life for the wells..Again the result will be decreased ultimate oil recovery. State of Alaska The most logical source of additional gas is well A-14A-O1. It can provide make up gas at low cost, which will result in maximum economic life for the indi- vidual wells and for the field in general. Ultimate hydrocarbon recovery, both oil and gas, will be maximized. An additional reason for producing A-14A-O1 is the producing behavior of the Hemlock Reservoir of the State G pool. This reservoir is the major producing interval of the Middle Ground Shoal Field. It is a multi-layered waterflooded reservoir. When producing wells are shut in, crossflow between zones occurs and often results in permanent production impairment of the producing well due to fluid and fines migration. If high pressure gas is available from well A-14A-O1 for gas lift purposes, well shut-ins can be minimized even when gas lift com- pressors are down for repair or maintenance. Fewer shut-ins will result in minimum well impairment and maximum oil production. For the above-stated reasons, we request that an exception to the Gas-Oil Ratio Rule, 11 AAC 22.240, be granted for Middle Ground Shoal well A-14A-O1, and'that the exception also apply to any future wells which may be completed in the Middle Ground Shoal State A pool. If additional information is required, or we can be of any other assistance, please contact us. Also, by copy of this letter, we are nOtifying Amoco of our request for an exception to the Gas-Oil Ratio Rule. Yours very truly, C. W. Volek Division. Engineering Manager Pacific DiviSion Production REH/EDS: zmd cc: Amoco Production Company ATTN: Mr. 'G. J. Ross Security Life Building Denver, Colorado 80202 Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Conservation File No. 163 Re: The application of Shell Oil Company, dated January 23, 1980, for an order granting an exception to Title 11, Alaska Administrative Code, Section 22.240 for the Middle Ground Shoal No. A-14A-01 well. Notice is hereby given that Shell Oil Company has requested the Alaska Oil and Gas Conservation Commission to issue an order granting an exception to the gas-oil ratio requirements of the referenced regulation for the Middle Ground Shoal No. A-14A-01 well which is completed in the Middle ~Ground Shoal "A" Oil Pool in the Middle Ground Shoal Field. The operator states that the subject well was completed in August of 1969, that production tests indicated the well to be ~a gas producer and that the well has been shut-in since completion. The operator further states that due to declining oil production and increased water produc- tion, there will be in the near future a shortage of gas for gas lift and fuel requirements for the Shell "A" and "C" platforms. The operator further states that there has been no oil production from the Middle Ground Shoal "A" Oil Pool since 1974 and that the potential for future oil production from the "A" pool is very 1 imited. Parties who may be aggrieved if the referenced order is issued are allowed 10 days from the date of this publication in which to file a protest, stating, in detail the nature of their~ aggrievement and their request for a hearing. The place of filing is the Alaska Oil and Gas Conservation Commission, 3001 Porcupine Drive, Anchorage, Alaska 99501... If such a protest is timely filed, a hearing on the matter will be held at the above address at 9:00 AM on February 26, 1980 at which time protestants and others may be heard. If no such protest is timely filed, the Commission will consider the issuance of the order without a hearing. Harry W. Kugler~ .. Commis s ioner Alaska Oil & Gas Conservation Commission