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Home My WebLink AboutCO 174Conservation 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: ROBIN~ Scanning Preparation BY; ROBIN 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 i, PAGE(S) DISCREPANCIES WERE FOUND: ~ YES ~ NO (SCANNING IS COM~HIS 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 ARCO ) ALASKA, INC. and SOHIO ) ALASKA PETROLEUM COMPANY) requesting the amendment) of Rule 2 of Conserva- ) tion Order No. 145, ) which pertains to well ) spacing in the Prudhoe ) Oil Pool, Prudhoe Bay ) Field. ) Conservation Order No. 174 Prudhoe Bay Field Prudhoe Oil Pool July 1, 1981 IT APPEARING THAT: · ARCO Alaska, Inc. and Sohio Alaska Petroleum Company, operators of the Prudhoe Bay Unit, by letter dated June 15, 1981, requested the Alaska Oil and Gas Con- servation Commission to amend Rule 2 of Conservation Order No. 145 which sets out well spacing requirements for the Prudhoe Oil Pool. · Notice of public hearing was published in the Anchorage Times on June 19, 1981. · The notice of public hearing indicated only ARCO Alaska, Inc. to be the applicant when in fact Sohio Alaska Petroleum Company was a joint applicant. 4. There were no protests to the application. FINDINGS: · · · Rule 2 of Conservation Order No. 145 states "In the affected area, no pay shall be opened in a well closer than 2000 feet to any pay opened in another well in the Prudhoe Oil Pool or be nearer than 1000 feet to the boundary of the affected area." The Prudhoe Oil Pool, as defined in Conservation Order No. 145, exists in an area that is part of the Prudhoe , Bay Unit. Based on current data, the Prudhoe Oil Pool is com- pletely within the Prudhoe Bay Unit and correlative rights of all owners are protected. Conservation Ord%~_/ No. 174 Page 2 · · · · · Evidence indicates that a closer spacing of wells could result in increased recoveries in waterflood areas where multiple sand intervals of contrasting perme- ability are separated by shales. Evidence indicates that a closer spacing of wells could also result in increased recoveries in areas which are cut by major faults· Evidence further indicates that a closer spacing of wells in the areas of a thicker oil column could in- crease recoveries. The flexibility to vary well spacing at this stage of pool development will facilitate the best use of rigs by minimizing rig moves. Since statewide rules allows a well to be drilled no closer than 500 feet to a unit boundary, the operators of a unit should have the same minimum distance re- striction at the boundary of the affected area. NOW, THEREFORE, it is ordered that: Rule 2 of Conservation Order No. 145 is hereby amended to read as follows: RULE 2 Well Spacing There shall be no restrictions as to well spacing except that no pay shall be opened in a well closer than 500 feet to the boundary of the affected area. DONE at Anchorage, Alaska and dated July 1, 1981. Alaska Oil and Gas Conservation Commission h~rry W. Kug~r Commissioner Alaska Oil and Gas Conservation Commission · . NOTICE OF PUBLIC HEARING STATE 'OF ALASKA · Alaska Oil and Gas. Conservation Commission Conservation File No.· 174 Re: The appliCation of ARCO·Alaska, Inc., dated June·15, 1981, '.requesting the amendment of Rule 2 of Conservation Order No. 145, .which is concerned· with well spacing in the Prudhoe' Oil Pool, PrudhOe Bay Field. Notice is hereby given that ARCO Alaska, Inc. has reques~'ed the Alaska Oil 'and' Gas Conservation Commission. to· issue an Order am'ending Rule 2 of Conservation Order. No. I45. The request is. tO~ require no min.imum distance between weilboreS '(2000 feet~minimUm.'. diStance between~ .wellb°res' ~now required in C.O. No. 145) ' and. r.equire.'that a well cannot be drilled closer than 500 foot from the'unit boundary (100'0 ~foot minimum'distance no.w applies). Th'~ operator states that a .cloSer 'spacing Of wells in . Waterflood are·as and...areas which are cut .·by,·major ~fault.s. should· increase uitimate recovery and therefore prevent waste. The operator~ further .states that al'lowing t'he drilling· of w..ells'to within 500 feet of the unit. boundary will .be consistent· 'With state-wide reg'ulations ·and' will~ permit ~the operators Within the 'Unit to protect ~ the' co'rrelative rights of the Prudhoe. Oil Pool ·Owners. Parties who may be aggrieved .if 'the'. ref~erenced~ order is issUed are allowed 10 daYs .from the date..of.'.this~, publication in which to file a.protest in writing, stating in detail the 'nature of the aggrievement, and'.a request for a h'earing'. The place of filing 'is· the Alaska 'Oil' and Gas C'.ons·ervati0n commission, 3001 Porcupine Drive, Anchorage, 'Alaska 9'9.501. If .such~a..protest is timely filed, a hearing on the matter will"be held at t.he~ above address:at 9:00 AM on Jul'y 30,.· 1981 at which time' protestants and· others may be heard. If no· such protest is timely ·filed, the' Commission wil~l consider the issuance of the order without a hearing'. Harry W. ~ug~e~r Commissioner ~Alaska Oil and Gas Conservation ·Commission ~NGTICE.~H, ~ . PUBLIC HEARING Re: T~ o~li~tlo~ of ." ~losko, Inc., d~ June 15, . meriT of Rule 2 ~ C~M~a- ~ tl~ Order No. 1~, ~1~ is ~ -~ Pr~h~ BO~ Ple~d:~~ ,','~Noti~ Is hereby given ARCO RIOakP~ ~; l'nC~ quest~ the~ AI~O'II"o~ ~s, ~. ~on~cvatlop :*~. ,com*~ss[~h~ ~ t~ tssue on :oraet omendl0~Ru'm~ z 1Of, Contrarian O~1~. ~ ~um, d~ston~.~ ~t~n ~lsmpc~ ~L~en ~,~Kes ,pow qu)~e.T~pY ~ welt 'c~ ~m~ cm~r than ~,~ ~rom the unit ~undorY minimum distance - ~w' . plieS). The o~rotor s~.~ that ~ ~lose~ ~aciflg of ~lls 'Terfl~a areas and a~ which ore cut by mal6~ ~u~ shbuld incr~se. Ultimate" reco~ry anO therefore .grevent -~. '~e operato~ further' states that al- lowing the ~rllllng ~ ~l'ls to within ~ feet o~ the.u~:~pqd- ory wi, ~ conslsTem wnn staTe- wide ~gulatlons and witl/~mlt the operators within th6'unlt to Parties ~,' w~o, ,,'~,moy,~ grl~ved':'if ,,tb~ ' Fe~en~ quest for o, n~rlng;,, ~[Ihg I~ t~' AI~K'O'gU ,~a~ ~K~ Gifle,.,:Drive',,'? tlmel~ ~, filed, ,'.0 ~heOHa~', on the aaar~ s~ Pt .9: ~'~.:.A.~,.op. '~m~ '~ !98]~ ,,t '~hlCh ~om~ ~lsslqn Will SBam~ e' bf the O'Pder ~lthout: heath ~g'. · ,, ~, ~:' , , , , ,,',:,',,, ,' Conservatl , ~t, ] ~;o-o,,~ ' , , ,' .Pub: Jun~.l.9~ 1981 , !',., ~ ADVERTISING ORDER .az~chcrage Tins 820 %4est Fouz~_h Avenue ~pd~ora~e, Ala~¢a 99501 ~" NOTICE TO PUBLISHER it, INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIEDAFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF ADVERTISE- MENT MUST BE SUBMITTED WITH INVOICE. Alas],~s Oil & Cas Consez%~tion Cc~¢~ission 3001 Forct~..ine ~ive .~.nc_borage, Alas]~. 99501 VENDOR NO. 2. PUBt. ISHER DEPT, NO. A.O. NO. A0- DATE OF A.O. June 16, 1981 DATES ADVERTISEMENT REQUIRED: Jl~ne 19, 1981 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. BILLING ADDRESS: SB!~ AFFIDAVIT-OF-PUBLICATION UNITED STATES OF AMERICA STATE OF ALASKA THIRD DIVISION. BEFORE ME, THE UNDERSIGNED, A NOTARY PUBLIC THIS DAY PERSONALLY APPEARED~AT HANSEN WHO, BEING FIRST DULY SWORN, ACCORDING TO LAW, SAYS THAT HE/SHE IS THE LEGAL CLERK oFANCHOR.AGE TIMES PUBLISHED AT ANCHORAGE , IN SAID DIVISION AND STATE OF. ALASKA AND THAT THE ADVERTISEMENT, OF WHICH THE ANNEXED IS A TRUE COPY, WAS PUBLISHED IN SAID PUBLICATION ONTHE19'th DAY OF JUNE 8 1 .19 "-,AND THEREAFTER FOR. NONE CONSECUTIVE DAYS, THE LAST PUBLICATION APPEARING ON THE 19th _DAY OF JUNE .'19 8__1, AND THAT THE RAT%~~ T~E%~N ~[XT~T~N ~(.C~SoS 0% 7~1~. ¢~TE CHARGED PR IVAT~DIVIDUALS., / ~ , /v ....... SUB~~D AND swo~T¢ BEFORE~E ~'~ ' ,~ ~ ~'., NOTARY PUBLIC FOR ~.E OF .ALAS~,A , MY COMMISSION EXPIRES OCTOBER 20,1984 ..... ,.,~ ARCO Alaska, Inc P.O. Box 360 Anchorage, Alaska 99510 Sohio Alaska Petroleum Company Pouch 6-612 Anchorage, Alaska 99502 June 15, 1981 Mr. Hoyle H. Hamilton Chairman/Commissioner State of Alaska Oil and Gas ConserYation Commission 3001 Roreupine Drive Anchorage, Alaska 99501 APPLICATION FOR AMENDMENT RULE 2 WELL SPACING CONSERVATION ORDER NO. 145 PRUDHOE BAY FIELD PRUDHOE OIL POOL Dear Mr. Hamilton: The Operators of the Rrudhoe Bay Field request that the Alaska Oil and Gas Conservation Commission, in accordance with 20AAC25.520(b), amend Rule 2, Well Spacing, of Conser- vation Order No. 145. We propose two changes in Rule first, that the minimum spacing currently required between wellbores be deleted, and second, that the allowable dis- tance to the Pool boundary be amended to 500 feet. The current rule requires a minimum of 2000 feet between wells and that no well be nearer than 1000 feet from the boundary of the affected area. The proposed Rule 2 is as follows: "No restrictions as to well spacing shall apply except that no pay shall be opened in a well closer than 500 feet from the boundary of the affected area." We believe that this rule is justified because it is consistent with maximizing economic recovery and avoiding waste. Since the Prudhoe Bay Oil Pool is unitized, the correlative rights of the Owners are not affected by well spacing. In the May 5, 1977 Division of Oil and Gas Conservation Hearing, the major owners of the Prudhoe Bay Field presented reservoir model results which showed that reduced spacing could lead to increased recoveries. Since that time, new generations of models have been developed which confirm these earlier results. These models include field-wide 3-D models, as well as more finely gridded models of the North- west Fault Block, the Peripheral Wedge Zone, and the Flow Station 2 area. The models were described in detail at the Prudhoe Oil Pool public hearing on May 7, 1980 (Conservation File 165). Results from model runs using these tools show that reduced well spacing is beneficial in many areas. Mr. Hoyle H. Hamilton Page 2 June 17, 1981 Some examples of areas where reduced well spacing can be beneficial include: (1) WaterFlood areas where multiple sand intervals of contrasting permeability are separated by shales. These areas may benefit by individual injection wells in separate intervals to improve injection control. (2) Areas which are cut by major Faults. Locating additional wells near Faults For either injection or production purposes may result in increased recovery benefits. (3) Model studies have indicated that additional wells may improve recoveries in the thicker oil column and as inFill wells in some portions of the peripheral waterFlood. Based on our studies, we are confident that having the Flexibility to vary well spacing to optimize particular reservoir situations will improve ultimate recovery. For initial planning purposes, several drill sites have been identified as candidates For additional drilling. In order to optimize our rig schedule by minimizing rig moves, we would like to begin drilling some of these wells later this year. The second change requested to Rule 2 reduces the minimum distance of wells From the pool boundary From 1000 to 500 Feet. The proposed revision is consistent with general State-wide regulations. In summary, we believe that the proposed changes in Rule 2 are afpropriate in light, of the development plans for the Prudhoe Bay Unit. The removal of a well spacing requirement will allow the operators to apply appropriate spacing to specific areas of the Field to maximize economic recovery and therefore prevent waste. Since the Prudhoe Bay Oil Pool is unitized, the correlative rights of the owners will not be affected by well spacing. The second amendment which would allow drilling to within 500 feet of the Unit bound- ary, is consistent with general State-wide rules and would therefore protect the correlative rights of the Prudhoe Bay Oil Pool Owners. A~'asKa Oi~ & "' o" .... wac CoDs, (,olDD~SSbD Mr. Hoyle H. HamilLon Page 3 June 15, 1981 Your prompt attention to this matter will be greatly appre- ciated because iL will allow us to proceed with field developmenL in a timely Fashion. Sincerely, P. B. Norgaard ARCO Alaska, Inc. PeLroleum Company