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Home My WebLink AboutCO 118Conservation 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. ~ .)_ q~/_ Conservation Order Category Identifier Organizing RESCAN [] Color items: [] Grayscale items: [] Poor Quality Originals: [] Other: NOTES: DIGITAL DATA [] Diskettes, No. m Other, No/Type OVERSIZED (Scannable with large ~3...--"~Maps: [] Other items OVERSIZED (Not suitable for plotter/scanner, may work with 'log' scanner) [] Logs of various kinds [] Other BY: ARIA Scanning Preparation Production Scanning Stage 1 PAGE COUNT FROM SCANNED DOCUMENT: 5 / PAGE COUNT MATCHES NUMBER IN SCANNING PREPARATION: Y' YES NO BY: 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 0II and Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99501 Re: THE APPLICATION OF BP ALASKA, ) INC. for an exception to Title II, ) Alaska Admlnlstratlve Code, Section ) 2159, to permlt production of gas cap) gas associated with the Prudhoe 011 ) Pool at rates In excess of the net ) reservoir volumetric withdrawal rate ) of gas and oil produced from the pool) and to Inject produced fluids into ) the pool. ) Conservatlon Order No. 118 Prudhoe Bay Field Prudhoe 0II Pool March 8, 1973 IT APPEARING THAT: I. BP Alaska Inc. by letter dated January 17, 1973 requested the referenced order. 2. Notice of public hearing was publlshed in the Anchorage Dally News on February I, 1973, pursuant to Title II, Alaska Administrative Code, Section 2009. 3. A publlc hearing was held on February 16, 1973, in the Clty Council Chambers of the Z. J. Loussac Library, 5th Avenue and F Street, Anchorage, Alaska, at which time the applicant was heard. FINDINGS: I. Applicant desires to complete BP Well C-3 (17-11-14) as a gas well In the Prudhoe Bay Field, Prudhoe 0II Pool, and to produce gas for use as fuel for an electric power plant. 2. Electrical power Is required to commission the Prudhoe Bay Fleld pro- ducing and necessary support facilities. 3. Applicant will require approximately five million cubic feet of gas a day under normal operating conditions. Maxlmum requirements will be approximately eight million cubic feet of gas a day. Conservation Order 118 Page 2_ March 8, 1973 4. BP Well C-3 will be recompleted as an oll well when caslnghead gas produced with the oll f.rom other wells is available In sufficient quan- tities to operate the electric power plant. 5. Applicant desires to complete BP Well C-4 (18-11-14) as an Injection well In the Prudhoe Bay Field, Prudhoe 0II Pool, and to Inject approximately 400 barrels per day of flulds produced with the gas from BP Well 6. BP Well 0-4 will be recompleted as an oll well when no longer required for Injection purposes. 7. At anticipated production rates, net reservoir voldage in the referenced pool resulting from production of BP Well C-3 wlll exceed that of the well or wells supplying the ARCO-Exxon topping plant. 8. Durlng the estimated three-year period In which gas cap gas from BP Well C-3 Is utilized to fuel an electric power plant, from three one-hun- dredths to flve one-hundredths of one percent of the recoverable gas cap gas in the referenced pool wi II be consumed.. 9. Affected parties wlthln the referenced pool have been notified of appllcants's request and have not objected. I0. Casinghead gas from the ARCO-Exxon topping plant cannot reasonably be utllized by applicant as fuel because (a) caslnghead gas volumes are Indequate for applicant's purpose and are subject to restriction or termination de- pending upon operatlon of the topping plant; and (b) a long and temporary gas line would be required from the topping plant to applicant's electric power plant. II. Applicant does not anticipate need for a safety flare or to flare or vent produced gas except to clean up BP Well 0-3 or In cases of emergency. CONC LUS IONS: I. The use of gas cap gas associated wlth the referenced pool for fuel for an electrlc power plant is necessary to commission production and camp facilities and constltutes a beneficial use of the gas. 2. Neither productlon from BP Well C-3 nor lnjectlon Into BP Well C-4 at the antlclpated volumes will constitute waste or lmpalr correlative rights. 3. The production and use of the gas cap gas should be permitted only as required to commission the Prudhoe Bay Field producing and necessary support facilities prior to the time caslnghead gas Is available as a fuel. Conservati on Order Page 3 March 8, 1973 NOW, THEREFORE, IT IS ORDERED THAT: I. Applicant, BP Alaska, Inc. Is hereby granted an exception to Title II, Alaska Administrative Code, Section 2159, to permit production of gas cap gas associated with the Prudhoe 0II Pool from BP Well C-3 under the following terms and conditions: (a) The gas cap gas shall be utilized to generate electrical power required to commission the Prudhoe Bay Field pro- ducing and necessary support facilities. (b) The monthly .average of daily volumes produced shall not exceed eight million cubic feet of gas without Committee approval. 2. Applicant, BP Alaska, Inc. ls granted permlsslon to Inject fluids pro- duced wlth the gas from BP Well C-3 Into the referenced pool by means of BP Well C-4. 3. This order, unless extended by the Commlttee, shall expire when casing- head gas Is available as a fuel. DoNE at Anchorage, Alaska, and dated March 8, 1973. Thomas R. Marshall, Executive Secretary 0II and Gas Conservatlon Committee Homer L. Burrell, Chalrman 0II and Gas Conservation Committee '~)]'- K. Gl I b~eth, Mer~ber '~ 0II and Gas Conservatlon Committee ALASKA OIL AND GAS CONSERVATION CObff4ITTEE April 23, 1975 .... ,,,, .,; A D,_ M,,,! ,N .!,, S T'RA.TI:V E A P P R O.V A_L...N O. l~.l Re: ' Application by BP AlaSE~i',!mc, to increase the production of gas cap gas from the Prudhoe Oil Pool for power ,generation and standby fuel gas supply purposes to 20 MM .scl/day. Mr. K. R. Keep Vice President and General Manager BP Alaska Inc. Box 4-137'9 Anchorage, Alaska 99'503 De:ar Mr. Keep: On April 7, 197'5 the referenced application was received which, stated that the referenced request for increase .in the .off, take from the .gas cap is. essential to the development .of the Prudhoe Bay. Oil Field and constitutes a beneficial use of the gas.., The appl Ication 'further sta~d that mechanical problems with Wel 1 C-3, the present gas su:pply 'well, may necessi.~te completion of another gas well on P,a~t C for standby purposes. In support of the application the operator attached copies of l'etters ceived from all members of the Prudhoe :Bay' Pre-Unitization .Steering Commit- tee indicating their consent ~to production of ,the addi'ttonal quantity of gas cap ,gas. Rule I (b) of Conservation Oral,er liS,limits the monthly average of: daily volumes produced, "to not more than eight million cubic feet un l'ess other- wise approved by the 0il and ,,Gas ,Conservation Co~ittee. Pursuant to Rule 1 (b) of' Conservatio.n Order 118, the Oil and Gas Conser- vati, on ~ittee hereby authorizes an increase in the monthly average of daily volumes produced to not ~re than 20 million cubic feet, Completion o,f a standby gas well on I~.d C the gas cap of the Prudhoe Bay Oil Pool is approved and will be: confirmed, as to the specific well by application on a Sundry Notice form:, V,ery~, truly Aours, L,,'w'.t..~ ,' ', z..',w ?, ~ : Thomas R. Marshall, Executive Secretary ~:be BP ALASKA INC. "i P.O. 80X 4-1~¢9 3111 - C - STREET ANCHORAGE, ALASKA 99503 TELEPHONE {907) 279-0644 State of Alaska Department of Natural Resources Division of Oil & Gas Alaska Oil & Gas Conservation Cc~mittee 3001 Porcupine Drive Anchorage, Alaska 99504 Attn: Mr. O. K. Gilbreth, Director RE: Conservation Order No. 118 - Prudhoe Bay Field- Prudhoe Oil Pool On March 8, 1973, in Conservation Order No. Li~;>' you granted .BP Alaska Inc. an exception frcm the requirements of 11 AAC 2159 (now 11 AAC 22.240) to permit the production of gas cap gas associated with the Prudhoe .Oil Pool frcm BP's Well C-3 (Section 19, T!iN, R13 E, U.M.) under the following terms and conditions: "(a) The gas cap gas shad.1 be Utilized to generate, electrical power to ccmmission the Prudhoe Bay field producing and necessary support . facilities. (b) The monthly average of daily volumes Produced shall not exceed 8" million cubic feet of gas without committee approval.." , Subsequent to the hearing before the Ccrauit~ on February 16, 1973 the planned period of need of this source of fuel gas has been extended and revised, estimates of electric power ~ation requirements necessitate that the average of daily gas volumes set by the. Co, tree in Subparagraph (b) above be increased to .a max~ of 20 MMscf/D. ' Also subsequent to the hearing before the ~ttee, mechanical difficulties with Well C-3 have twice required suspension of' prcduction since the initial cc~pletion of the well. This indicates that a continuous fuel gas supply requires the ccmple, ti..0n..0f' an ~~.i...o.~...~.we.. ~.l....on Pad c as a standby gas well. Please consider this letter a request to the Alaska Oil & Gas Conservation Committee for such an increase and a request to oc~plete an additional well on Pad C as as well' .... - ........................... ~ .................... The reasons for the revisions in the power generation requirements, with the resulting .increase in the requirements for gas from Well C-3 are as follows: ~s -2- The maximum connected electrical load to be supplied by power generation at the Central P~r Station to facilities of BP Alaska Inc. and Atlantic Richfield Cc~y is nc~ estimated to be 19 MW frcm January, 1976 until production start-up scheduled for mid-1977. This will re~re a maxiaum gas production rate of 14 MMscf/D. . During the first six months of production the maximum power requirement is estimated as 38 MW. This will. require a max/im/m gas production rate of approximately 20 MMscf/D. This gas would normally be casinghead gas supplied from the ARCo/Exxon fuel gas treatment plant at the central compression plant. However, during the initial six months of production, there may be irre9%llarities in the supply of casinghead gas and we now plan to maintain the fuel gas treatment plant at Drilling Pad C as a standby supply of fuel gas for the Central Power Station. As previously reported to the Division of Oil & Gas, mechanical difficulties encountered in the production of gas from Well C-3 resulted in the formation of hydrates. This was remedied by a workover performed in April,'1974. A leak in the tubing striD, g of Well C-3 was discovered on February 17, 1975 and the well is now shut in with the downhole wire line plug installed in the packer tailpipe. The tubing is filled with kill fluid and the well awaits a workover. "In support of this application are attached copies of letters received from all members of the Prudhoe Bay Pre-Unitization Steering CoEnittee indicating their consent to production of the additional quantities of gas cap gas. Based on our understanding of the regulations of the Alaska Division of Oil & Gas, 11 AAC 22.240, the above gas production requirers could. exceed the allowable gas off-take based on the oil production to the ARCo/Exxon topping Plant. We wish to continue the exception in Conservation Order No. 118 from the requirements of 11 AAC 22.240 to permit production of gas from the gas cap of the Prudhoe Bay Oil Pool independent of any fluctuations in production of oil to 'the ARCo/Exxon topping plant. All gas and fluids produced from Well C-3 will, of course, be metered and reported to the State as recruited by applicable statutes and regulations, as has been done in the past. The ccmpleticn for Wells C-3 and C-4 which is as specified in the program originally attached to the ~y's application dated january 17, 1973 is adequate to allow for the additional production of gas and injection of condensate, and nc~d not be modified. A general program for the. completion of an additional well as a standby well on Pad "C" is attached hereto. At a later date we intend to file a Sundry Notice .requesting approval for completion of a specific well on.Pad "C". -3- The proposed increase in the use of gas is essential to the development of the field and will constitute a beneficial use of the gas for the develo~_nt of the field. Your prc~pt consideration of this proposal would be appreciated. Very truly yours, K. R. Keep Vice President & General Manager Enclosures PROPOSED GAS COMPLETION PROGRAM OUTLINE · . . '' PAD "C" WELL · .t '' ' ~" · """ ";~i,' ' " ' '. ' : · . . .. Nipple up and test 13-5/8" 5000# BOPE, "'..' :-. · . ..... .. , . .',:..' :~ " Displace diesel in 13-3/8" casing to completion .fluid' Rue 9-5/8"" casing i . .-,.:'" ' " and tie back 'from 9-5/8" PBR to surface ..P,l.ace ·oil in 9-5/8" by 13-3/8" ""'"' ':' .. ~ . . ~.. :..; , ~ ,,. ~ .- . ., .. .', ~, ?,..-. ', · casing annulus.. ' . -" .. .: .- ....~:~:..:., ~ . . . i::'.!:.i." ' · :,' ........... ',:'::"'.':':":' .' "~ Run 7" packer on wireline and set approximately 8500' ".TVD..,Run '7 '. circulating,."':',/ .... ',',,i':'.:~i~: ' "~'"' ' ' ' ' ' " ' " ""': "'''? ,,.,,~.~..,........ ?.:...' ,}' 'i/,string to' 5000'MI) and hang off '~n ~.ntermed~.ate cas~.ng head. .Run. 2-7/8 . ...! ,':"'~:",.,,,'.,::""~"" }':.'7' tubing with ball valve at"'2100' and ro6ket' 'sleeve~'at 5000.'~g)' and'hang .off ,"in. .~., " "."' tubinz_"head''. 'The rocket sleeve will. allow, the:injection,,.. :'of, "hydrate'."inhibitor:~?'? "?: i.? or corrosion inhibitor into the 2-7/8" tubing;".'; '"'-.;' . "'. .'.'i! "..'.~ :;, " " Ri'g up Xmas tree and displace 2-7/8" tubing to diesel, 'Well will..be left .. ':' ":'"; ' ready to perforate on. short notice. · :::7 ~ ,. . '"~':"'. ," . ....,,.·.. .', ?. . ., .. - .. · .., ' ':; .' ..:'. '~;'."9., ' . ": ~ · - . i"':'?.t? ". ;i"' '"" ': ' ': ' ~" '"' ': '":: '"' ''''~'' ::": r. 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'," ~'] '.~"" .... .~.'".::,' ';" :' ' ",',~ ,~' , '" ' ' ' ' "' "'",~?:.':,'-;'~ i::'; ' ¥~.~'.' ~:.,,".":F,,'~ ~' ,.,.", ', ,"' '. .",'. :~.,;~ ! ~,.L- ~ ,,,. , ,... ,,.,,:./. . ,~. ,.~., · i~.~.,.,~., :,~., ..... ~..- .. . , .... ~.- . '..:'.'-. ~ '~,¥',;?',.~',:;!:'~,':'~.,.'~:L~'~.'.'",';',h'. .'.'.' .,", ,, ,., ..' %.. ~" ~t "_~.~' ." ' ' ....; ..' -;'..:-I. ~ . - :'. ~.,' ,.,...... ,..,:? . .. ::..... .~.,g.:~t.~:.:~.:.,.:,. :,.: ........ ..-~ :. .._ BP '_ASKA INC.' P' O'~I'1~ ~ 4' I :379 3 ! 1 ~' ' STREET ANCHORAGE' ALASKA 99503 TELEPHONE C907} 279--0644 December 13, 1974 TO: Members, Prudhoe Bay Pre-Unitization Steering Committee Gentlemen: ,.: , As you are aware, fuel gas for the Prudhoe Bay Central Power Station is currently provided by BP'Well C-3 completed, on a temporary basis, in the gas cap. It is estimated that prior to field start-up in mid-1977, power generation capacity will necessarily approach 19 megawatts, requiring a maximum of 14 MMscf/day of fuel gas. In addition, standby fuel gas supply is required up to 18 MMscf/day in the first few months of oil production. Since we are currently limited to a maximum of 8 MMscf/day by Conservation Order Number 118, dated March 8, 1973, we intend requesting an amendment to the order from the Conservation Cormmittee. We are planning to expand the fuel gas treatment facilities to handle up to 20 }~scf/day. We request that you indicate your non objection to increasing off-take from the gas cap of the Prudhoe Oil Pool up to a maximum of 20 MMscf/day by signing the attached copy of this letter and returning it to us. We will then proceed with obtaining approval from the Alaska Oil and Gas Conservation Committee. ,. Very truly yours, RRK:vj p BP ALASKA INC. K, R. Keep Vice President and General Manager for electrical power generation. We have no objection to BP Alaska Inc. increasing the off-take of gas from the gas cap of the Prudhoe Bay Oil Pool up to a maximum of 20 MMscf/day for the purpose of supplying fuel gas --'~ASTFR F!LE Cross F',)': . Action' ..~ ~-f_~f ....... Copie:s: BP _ASKA INC. P.O. B( ~- 1379 3 ! 11 - C - STREET ANCHORAGE. ALASKA 99503 TELEPHONE ~907) 279-0644 December 13, 1974 TO; Members, Prudhoe Bay Pre-Unitization Steering Committee Gentlemen: As you are aware, fuel gas for the Prudhoe Bay Central Power Station is currently provided by BP Well C-3 completed, on a temporary basis, in the gas cap. It is estimated that prior to field start-up in mid-1977, power generation capacity will necessarily approach 19 megawatts, requiring a maximum of 14 MMscf/day of fuel gas. In addition, standby fuel gas supply is required up to 18 MMscf/day in the first few months Qf oil produc.tiono Since we are currently limited to a maximum of 8 MMscf/day by Conservation Order Number 118, dated March 8, 1973, we intend requesting an amendment to the order from the Conservation Committee. We are planning to expand the fuel gas treatment facilities to handle up to 20 b~scf/day. We request that you indicate your non objection to increasing off-take from the gas cap of the Prudhoe 0il Pool up to a maximum of 20 MMscf/day by signing the attached copy of this. letter and returning it to us. We will then proceed with obtaining approval from the Alaska Oil and Gas Conservation Committee. Very truly yours, RRK:vj p BP ALASKA INC. ./ · K. R. Keep Vice President and General Manager We have no objection to BP Alaska Inc. increasing the off-take of gas from the gas cap of the Prudhoe Bay Oil Pool up to a maximum of 20 MMscf/day for the purpose of supplying fuel gas ., for electrical power generation. SIGNED: ~Manager · '. FOR : ~!ARATNON. Oil. COHPANY / ' ASKA INC.' P.O. B 'm ~ ' 1379 31 1 ! ' C ' STREET ANCHORAGE. ALASKA 99503 TELEPHONE (907) 279--0644 December 13, 1974 TO: Members, Prudhoe Bay Pre-Unitization Steering Committee Gentlemen: ',~ As you are aware, fuel gas for tl~e Prudhoe Bay Central Power Station is currently provided by BP'Well C-3 completed, on a temporary basis, in the gas cap. It is estimated that prior' to field start-up in mid-1977, power generation capacity will necessarily approach 19. megawatts, requiring a maximum of 14 MMscf/day of fuel gas. In addition, standby fuel gas supply is required up to 18 MMscf/day in the first few months of oil production. Since we are currently limited to a maximum of 8 MMscf/day by Conservation Order Number 118, dated March 8, 1973, we intend requesting an amandment to the order from the Conservation Committee. We are planning to e~pand the fuel gas treatment facilities to handle up to 20 b~scf/day. We request that you indicate your non objection to increasing off-take from the gas cap of the Prudhoe Oil Pool up to a maximum of 20 MMscf/day by signimg the attached copy of this letter and returning it to us. We will then proceed with obtaining approval from the Alaska Oil and Gas Conservation Committee. . Very truly yours, BP ALASKA INC. RRK: vj p K. R. Keep Vice President and General Manager .,'. FOR We have no objection to BP Alas!m Inc. increasing the off-take of gas from the gas cap of the Prudhoe Bay Oil Pool up to a maximum of 20 MMscf/day for the 'purpose of fuel gas supplying for electrical power generation .... r~ ," ' ...... '" ~C~I ~ ;..~_7 ASKA INC. P.O. E~O× 4- . ,' ' ANCHORAGE. ALASKA 99503 'I'ELEPIIONE |907) 279-06~4 December 13, 1974 TO: Heaib ers, Prudhoe Bay Pre-Unitization Steering Committee Gentlemen: · .,~ , As you are aware, fuel gas for the Prudhoe Bay Central Power Station is currently provided by BP Well C-3 completed, on a temporary basis, in the gas cap. It is estimated that prior to field st.art-up in mid-1977, power generation capacity will necessarily approach 19 megawatts, requiring a maximum of 14 }Discf/day of fuel gas. In addition, standby fuel gas supply {s required up to 18 }~Iscf/daY in the first few months of oil production. Since we are currently limited to a maximum of 8 }R.lscf/day by Conservation Order Number 118, dated March 8, 1973, we intend requesting an amendment to the order from the Conservation Comanittee. We are planning to expand the fuel gas treatment facilities to handle up to 20 1-Mlscf/day. We request that yOu indicate your non objection to increasing off-take from the gas cap of the Prudhoe Oil Pool up to a maximmn of 20 1.R~scf/day by signing the attached copy of this letter and returning it to us. We will then proceed with obtaining approval from the Alaska Oil and Gas Conservation Committee. I Very truly yours (~RRK :vj p. BP AI&SKA INC. K. R.. Keep Vice President and · General I.~nager fo.r electrical power generation. ,, ¢-'~J We have no objection to BP Alaska Inc. increasing the off-take of gas. from the gas cap of the Prudho. e Bay Oil Pool up to a maximum of 20 }Dlscf/aay for the purpose' of supplying fuel gas File ,.: .... / /I Atlantic Richfield Company . FOR .!. DATE ' January 17, 1975 Cro$;; Eof: .... n.,..o'd /- '),¢ Action' ~ BP ALASKA INC.' i ;3 ! ! ! -~-, - STREE"r ANCHOFIAGE. ALASKA 99503 ~ELEPHONE [90~} · . December 13, 1974 TO: Members, . Prudhoe Bay Pre-Unitization Stee~ing Committee · Mh.,qTER F~E: .'/ r,'. -xx_ 7' Cross Ret: Gentlemen:' · . ., As you arc aware~ fuel gas for the Prudhoe Ba.y Central Power' Station is currently provided by BP Well C-3 completed, on temporary basis, in the gas cap. It is estimated that prior to field start-up in mid-1977, power· generation capacity will necessarily approach 19 megawatts, requiring a maximum of 14 Mblscf/day of'fuel gas. In addition, standby fuel gas supply is required up to 18 ~Dlscf/day in the first few months of oil production. Since we are currently limited to a maximum of 8 Mblscf/day by Conservation Order Number 118, dated March 8, 1973, we intend requesting an amendment to the order from the 'Conservation Committee. We are planning to expand the fuel .gas treatment facilities to handi, e-.up to 20.,~.~lscf/day. · We request that you indicate your non objection to increasing off-take from the gas cap of the Prudhoe Oil Pool up to a maximum of 20 'MMscf/day by signing the attached copy of this letter and returning it to us. We will then proceed with obtaining approval from the Al,aska Oil and Gas Conservation Committee. .' ~ ~RRK:vjp o. Ye~y t~uly yours, BP ALASKA iNC. K. R. Keep V. ice President and" General }~nager We have no objection to BP Alaska Inc. increasing the off-take of gas from the gas cap of the Prudhoe Bay Oil Pool up to a maximum of 20 }fl~scf/day for the purpose of supplying fuel gas B'P AEAS KA i N C. P.O. BO~' 379 31 ! ! - C - STREET ANCHORAGE. ALASKA 99503 TELEPHONE 1907) 279-O6Z~4 December 13, 1974 TO: Members, Prudhoe Bay Pre-Unitization Steering Committee Gentlemen: As you are aware, fuel gas for the Prudhoe Bay Central Power Station is currently .provided by BP Well C-3 completed, on a temporary basis, in the gas cap. It is estimated that prior to field start-up in mid-1977, power generation capacity will necessarily approach 19 megawatts, requiring a maximum of 14 ~scf/day of fuel gas. In addition, standby fuel gas supply is required up to 18 MMscf/day in the first few months of oil. production. Since we are currently limited to a maximum of 8 MMscf/day by Conservation Order Number 118, dated March 8, 1973, we intend requesting an amendment to the order from the Conservation Committee. We are planning to expand the fuel gas treatment facilities to handle up to 20 MMscf/day. We request.that you indicate your non objection to increasing off-take from the gas cap of the Prudhoe Oil Pool up to a maximum of 20 MMscf/day by Signing the attached copy of this letter and returning it to us. We will then proceed with obtaining approval from the Alaska Oil and Gas Conservation Committee. ' Very truly yours, ~"RRK: vj p BP ALASKA INC. K. R. Keep Vice President and General Manager We have no objection to BP Alaska Inc. increasing the off-take of gas from the gas cap of the Prudhoe Bay Oil Pool up to a maximum of 20 MMscf/day for the purpose of supplying fuel gas for electrical power generation. ,//~' C.W. Corbet6, Manager, Western Region FOR : Phillips Petroleum Company BP ASKA INC. P.O. i" . 4-1379 3111 - C - STREET ANCHORAGE. ALASKA 99503 TELEPHONE (907) 279-0644 December 13, 1974 TO: Members, Prudhoe Bay Pre-Unitization Steering Committee Gentlemen: ' As you are aware, fuel gas for the Prudhoe Bay Central Power Station is currently provided by BP Well C-3 completed, on a temporary basis, in the gas cap. It is estimated that prior to field start-up in mid-1977, power generation capacity will necessarily approach 19 megawat~s, requiring a maximum of 14 MMscf/day of fuel gas. In addition, standby fuel gas supply is required up to 18 P~scf/day in the first few months of oil production. Since we are currently limited to a maximum of 8 MMscf/day by Conservation Order Number 118, dated March 8, 1973, we intend requesting an amendment to the order from the Conservation Committee. We are planning to expand the fuel gas treatment facilities to handle up to 20 MMscf/day. We request that you.indicate your non objection to increasing off-take from the gas cap of the Prudhoe Oil Pool up to a maximum of 20 MMscf/day by signing the attached copy of this. letter and returning it to us. We will then proceed with obtaining approval from the Alaska Oil and Gas Conservation Committee. ! . Very truly yours, RK:vjp BP ALASKA INC. K. R. Keep Vice President and General Manager We have no objection to BP Alaska Inc. increasing the off-take of gas from the gas cap of the Prudhoe Bay Oil Pool up to a maximum of 20 MMscf/day for the purpose of supplying fuel gas for electrical power generation. SIGNED: '_.~~.'~~..~..',~.~...~~ . FOR : PLACID OIL COMPANY ~ i' BOX 4- $ 3'79 \LASKA INC. ".. ANCHORAGE. ALASKA 99503 TELEPHONE {907) 279-0644 December 13, 1974 TO: Members, Prudhoe Bay Pre-Unitization Steering Committee Gentlemen · MAST~.R Cross Ref:_ , __ Action: Copies: 'As you are aware, fuel gas for the Prudhoe Bay Central Power Station is currently provided by BP Well C-3 completed, on a temporary basis, in the gas cap. It is estimated that prior to field start-up in mid-1977, power generation capacity will necessarily approach 19 megawatts, requiring a maximum of 14 MMscf/day of.fuel gas. In addition, standby fuel gas supply is required up to 18 MMscf/day in the first few months of oil production. Since we are currently limited to a maximum of 8 MMscf/day by Conservation Order Number 118, dated March 8, 1973, we intend requesting an amendment to the order from the Conservation Committee. We are planning to expand the fuel gas treatment facilities to handle up to '20 MMscf/day. We request that you indicate your non objection to increasing off-take from the gas cap of the Prudhoe Oil Pool up to a maximum of 20 MMscf/day by signing the attached copy of this letter and returning it to us. We will then proceed with obtaining approval from the Alaska. Oil and Gas Conservation Committee. · ' Very truly yours, RRK:vjp BP ALASKA INC. ./ K. R. Keep ViCe President and General Manager We have no objection to BP Alaska Inc. increasing the off-take of gas from the gas cap of the Prudhoe Bay Oil Pool up to a maximum of 20 MM~scf/day for t~e purpose of supplying fuel gas for electric~z~pow~r gener~tion. . " SIGNED: ~,., . ,... , / BP ALASKA INC. P.O. B( ,,'1.- ! 3'79 31 ! ! - C - STREET ANCHORAGE. ALASKA 99503 TELEPHONE (907) 2"79-0644 December 13, 1974 TO: Members, Prudhoe Bay Pre-Unitization Steering Committee 'Gentlemen: As you are aware, fuel gas for the Prudhoe Bay Central Power Station is currently provided by BP Well C-3 completed, on a temporary basis, in the gas cap. It is estimated that prior to field start-up in mid-1977, power generation capacity will necessarily approach 19 megawatts,' requiring a maximum of 14 MMscf/day of fuel gas. In addition, standby fuel gas ~upply is required up to 18 MMscf/day in the first few months of oil production. Since we are currently limited to a maximum of 8 MMscf/day by Conservation Order Number 118, dated March 8, 1973, we intend requesting an amendment to the order from the Conservation Committee. We are planning tO expand the fuel gas treatment facilities to handle up to 20 MMscf/day. We request that you indicate your non objection to increasing off-take from the gas cap of the Prudhoe Oil Pool up to a maximum of 20 MMscf/day by signing the attached copy of this letter and returning it to us. We will then proceed with obtaining approval from the Alaska Oil and Gas Conservation Committee. ' Very truly yours, BP ALASKA INC. K. R. Keep Vice President and General Manager We have no objection to BP Alaska Inc. increasing the off-take of gas from the gas cap of the Prudhoe Bay Oil Pool up to a maximum of 20 MMscf/day for tile purpose of supplying fuel gas for electrical power gener~'tion. THE'fOUIS~A~ LAND AND FOR : - EYPT,OR~TION, COMPANY January 10, 1975 STATE OF ALASKA DEPARTMENT OF NATURAL RESOURCES DIVISION OF OIL AND GAS Alaska 011 and Gas Conservation Committee CONSERVATION ORDER 118 Prudhoe Bay Field Prudhoe 011 Pool HEAR I NG February 16, 1973 P R O C E E D I N G S Mr. Burrell: Good mornlng. Thls Is a hearlng of Alaska 0II and Gas Conservation Committee on Conservation fl le #118. I'll relntroduce just In case somebody wasn't here before. I'm Homer Burrell, Chalrman; to my right Is Mr. Tom Marshal I, Executive Secretary of the Committee; to my left Is Mr, O. K. Gllbreth, a member of the Committee; and to his left Is Mr Hamllton who Is a member of the Dlvlslon of 0II and Gas, who Is going to sit In wlth us on this today. Thls is Conservation File #118 which Is the.appllcatlon of BP Alaska inc. for an exception to Title ~1 of the Alaska Admlnlstratlve Code Sectlon 2159 to compl.ete well #C-3 or 17-11-14 in the associated gas cap of the Prudhoe 0ii Pool of the Prudhoe Bay Fleld as a producing gas well and to produce It at rates hlgher than those prescribed by this regulation #2159, The Notl,ce of this Publlc Hearlng was published In the Anchorage Dally News on ., Feb ruary I, 1973. Is the appllcant prepared to put on h I s testl mony? Mr. Fl lnt: Yes Mr. Chairman. My name Is Harlan Flint, Manager of Services for BP Alaska, Inc. In Anchorage, and an attorney representing the appllcan~ here. At the outset t ask the Committee to Include In the record of thls hearing the letter dated January 17, 1973 from BP .Alaska to the Commlttee. together, wlth Exhlblts 'A'v, 'B', 'C' attached thereto. Mr. Burrell: They wl I I be part of the record. Mr. Fllnt: Mr. Chalrman, we have one wltness, Mr. A. K. Howard. I believe you'll want to swear him for the purpose of this hearlng, Mr, Burrell: I'll ask Hr, Marshall to swear hlm, Mr, Marshall: Please raise your right hand, In the manner now at hearing do you swear to tell the ,ruth, the whole tru,h and nothlng bu, the ,ruth so help you God? Mr. Howard: ! do. Mr. Marshall: Thank you. You may be seated. Mr. Burrell: Let' the record reflect that Mr. Howard qualified as an expert witness about one hour. ago. Mr. Howard: I hope that's stl II good. Hr. Butte I I: We have had no evidence ,o ,he con,rary In the l n,ervenlng period. Mr. Howard: Mr. Chalrman. before we proceed wlth ,he ,es,lmony ltd like to comment on one aspect of ,he appllcatlon very briefly. In Exhlblts ~'^~' and wB~' which were a,,ached ,o ,he orlglnal le,,er of appllcatlon ,here were con,alned descrlp,lons of ,he proposed me,hod of comp letlon for well C-3 and C-4 for the subject of ,bls hearing. We wish ,o advise the Comml,,ee that the comple, lon configuration Is s,111 under s,udy i by ,he appllcan,~ and l,s possible I, could change In some de,ail. While the me,hod of comple, lon Is not. as we unders,and I,.~ a par, of ,he purpose of ,his hearlng we do wlsh to point ou, ,he s,a,us of thls ma,ter and of course assure ,he Comm1,te tha, we will be subml,ting flnal plans for ,he de,al Is of ,his completion configura, lon Pti'or ,o ,he lns,allatlon. Mr. Burrell: We' Ii le, ,he record reflect ,ha' your proposed com- pie, Ion technique In wells C-3 and C-4. as a,,ached ,o your application -2- are not considered to be bindlng on you or a part of your appllcatlon but were merely attached for Informative purposes only. Mr. Fllnt: Right. Mr, Burrel I: We wi II revlew your completion technlques at such tlme that you submit them In connectlon with drllllng permlts. Mr. Flint: Thank you sir, Mr. Flint: Will you please for the record state your name and posltlon with BP Alaska. Mr. Howard: I'm A. K. Howard and I'm Manager of Operatlons for BP Alaska Inc. In Anchorage. Mr. Flint: Mr. Chairman, Mr. Howard has his statement prepared In narrative form and as we did In the prevlous hearlng we propose that he read It and then submit himself to questions at that time. Mr. Burrell: That will be acceptable, Mr. Flint. , Mr. Fllnt: You may proceed, Mr. Howard. Mr. Howard: Mr. Chalrman and members of the Alaska 011 and Gas Conservation Committee. It Is our Intention at this hearing to present · testimony In Supporl~ of our request for an exception to Section 2159 of the Alaska 0II and Gas Conservation regulations and statutes. This exceptlon, if granted, would permit BP Alaska to produce gas, without Interruption, from a well In order to Provide fuel to operate an' electric ,,~ power plant.. Reference Is made to the letter on this subject dated· January 17, 1973, from BP Alaska to the DirectOr of the DlVlslon of 011 and Gas, wlth Exhlblts '~A~' "B" and ~'C~' attached thereto. .BP Alaska.Intends to Install and commlssion the flrst stage of a -3- central electric power plant which will ul,lmately provlde po~er for the whole Prudhoe Bay Field opera,los. A, ,he same ,lme. It ls ,he In,es, Ion ,o Install and commlsslon an operations camp In ,he BP Operatlng Area. The camp will be a permanent faclllt~/ and will require a supply of electrlcl,y for I lgh, and hea,. The power sta,lon commlsslonlng will meet this requirement. In addition, the Power Plan, will supply elec,rlcl,y for heat and light ,o gathering centers to permit 1ns,al latlon work ,o be carried out wi,hln ,hem (see Exhibit C for general layout of facll1,1es ,o be supplied with electric power during ,bls Initial stage). Mr. Chairman. we have a slide depicting Exhlblt C. Hr. Butte I I: Thank you. Mr. Howard: A brief explanatlon of this. ,he facllltles In yellow Indicate the facilities ,ha, we propose to supply wl,h ,he alee,tlc power from ,he central power station. They are gathering can,er one. gathering can,er ,wo and gatherlng center three, the power s,atlon Itself. and our operations camp. The remaining facllltles on this map Indicated In red are .In.fact the drill pads. The Alyeska pump station Is not part of the BP facility and on thls map we have deal, only wl,h ,he facilities that will be supplied during this Inl,lal phase In which we are requesting . rue I gas. Hr. Flint: Jus, for the sake of the clarl,y of ,he record again Hr. Howard has been referrlng ,o an Exhibit slide projected on the wall which Is in Its sUbStantlal features Iden, lcal wl'h' Exhibit C and some of the color codes are sllgh,ly d,lfferen, from ,hose deplc,ed on Exhlblt C, I,self. -4- Hr. Burrell: Thank you Hr. Flint. Mr. Howard: Commsslonlng of the first stage of the power plant and the camp complies with the work plan for the orderly development of the fleld prlor to the start of production to the frans-Alaska plpeline. The Commlttee will appreciate the need to commlsslon this power plant, which is a vital part of the Prudhoe Bay development and which wlll enable other lnstal latlon work to proceed as well as permlttlng the commlsslonlng and operation, of the new permanent camp. Once oll production to the plpellne Is established, associated gas will become available and some of thls gas will be used for power plant fuel. In the meantime, it is our Intention, sub,ject to your approval, to obtaln gas to fuel the plant from a well on Pad C, Which is conveniently located nearby. One well, C-.3, will be drllled from Pad C, In fact, Hr. Chairman, It is In the course of belng drilled at thls tlme, for gas supply and another from the same pad, Well C-4, will be uSed for Injection of separated Ilqulds. These wells wlll be drilled and completed In accordance with Prudhoe O11 Pool Rules. The gas supply well, although inltlally completed , In the gas zone, will be deepened and completed as an oli well when gas from thls source Is no longer required. A gas treatment plant will be Installed at Pad C to separate Ilqulds from the stream and prepare the gas for transmission to the power plant. The final process deslgn for thls plant Is currently being prepared and will conform .with State of Alaska regUlatlons and statutes in respect of meterl'ng and other requlrements. The separated Ilqulds will be InJected Into 'the Sadlerochlt oli pool below the gas/oil contact via Well C-4. -5- Our request for an exceptlon to Section 2159 arlses from the need to ensure the continuous operation of the power plant when other factors may dictate an Interruption of the fuel gas supply, Our understanding of the 011 and Gas Conservation regulations and statutes Is that our requlred gas production wlll generally fall wlthln the allowable of,take speclfled In Section 2159, based upon the dally oli productlon to the ARCO/Exxon topplng plant, Our calculations, based on an average day's oli productlon to the topping plant, Indlcate that our expected gas requirements of 5 million SCFD wlth peaks of 8 million SCFD fall within the allowable, but to guard agalns, occaslons when oil production Is ln,errupted or for other reasons, we request the exception so that we may be perml~ed ,o produce ,his gas Independently of oli , produc, lon. To glve...an Idea of the quantl,y of gas represented by thls project we calculate ,that, over the period from ,he start of.~the power plan, opera, ion until associated gas Is avallable from oll..produced, from 3/lOOths to 5/lOOths of I% of the total recoverable gas cap gas will have been produced To conclude, gen, lemen, BP Alaska requests permission ,o produce ', gas from the .. Prudhoe 011 Pool gas cap. The normal production rate wi II : be approxlma,ely 5 mllllon SCFD. which ls the estimated quan, l~/ requlred to operate the firs, s,age Ins,al latlon of the power plan, at the forecast load. On occaslons, particularly durlng win,er months, ,he power plan, load will Increase, requiring up to 8 million SCFD of gas. -6- The duratlon of the requirement for thls gas production Is planned to be from early 1974, until associated gas In sufficient quantities becomes available from oll productlon to the trans-Alaska plpellne -- an estimated 3-year period. We belleve the proposed use of gas Is essential to the develop- ment of the fleld and will constltute a beneficial use of the gas. Your favorable conslderation of this proposal would be appreciated and I wlsh .o thank you for your attention. Mr. Burrel I: Thank you Mr. Howard. Mr. Flint: We have no further wltnesses, Mr. Chairman. Mr. Burrell: Thank you, Mr. Fllnt. Mr. Howard, the sllde you put up, which was similar to Exhibit C or vlrtually Identical therewlth, showed only the BP facilities that would be recelvlng power, Is that correct sir? Mr. Howard: Yes, It Is Mr. Chalrman, Mr, Burrel I: But, yet you testified that this electrical generation plant would be... supplying electricity for the entire field at some later date or some day? Mr. Howard: They are the plans, yes Mr. Chairman. Mr, Burrell: You just dldn't show us all of It on that Exhlblt C~ In other words, you just'showed the BP facl Iltes, Is that correct? Mr. Howard: As far as we know at this tlme, Mr. Chairman we are only proposlng to supply parts of our own facl Iltles. Down the road some where, i.'m not quite sure when thls wi II be, we shall no doubt be required, wel..l~, we shall be requlred to connect this power supply to faci Iltles of Alyeska, and for the ARCO operating area. Mr. Burrell: That's exactly what I wanted to know. I have another '--7-- question here. Is this contingent on unitlzatlon? Hr. Howard: Yes It is, Hr. Chalrman, but then all our plans are contl ngent upon unlti zatlon. Hr. Burrel I: I v I I let someone else ask some questlons. Hr. Harshal I, Mr. Gl Ibreth? Mr. Gl Ibreth: Mr. Howard, ,he proposal that you are making here Is to produce gas from the gas cap. thls, of course, would affect the correlative rlghts of many people wlthln the reservolr. Have you either dlscussed your testlmony or furnished your testimony to other owners of the reservoir, In this case? Mr. Howard: The prepared testlmony presented to you, Mr. Gl lbreth, has been dispatched and received, yes, ' by the o,her patti cl pants I n the proposed Prudhoe Bay Unit. , Mr. Gl Ibreth: Each of those knows then what you were going to testify? Mr. Howard: Yes slr. Mr. Gl Ibreth: Alrlght sir, The production of gas from a gas cap - obviously, if large volumes were produced would cause'the gas/oll comt~aet ,o rise and could concelvably cause oli ,o saturate the drler portions of the reservoir. Have you made any calculatlons as to what amount of gas could be produced to theoretlcally bring the gas cap, gas oli contact, back to Its orlglnal condltlon, conslderlng the oli production; gas production that's already been removed? Mr. Howa.r.d: No slr, we haven't conducted thls calculatlon. We feel that the volumes of gas that we're talking about are so very very , small that it would have no slgnlflcant effect upon the gas/oil contact, particularly.assumlng the transmlsslblllty of gas that we expect In this portlon of the reservoir, -8- Hr. Gllbreth: You mentloned on the C-3 well that the plans were to deepen it at some later date? Mr. Howard: Yes sir. Mr. Gl lbreth: That's right? Mr. Howard: Yes sir. Mr. Gl Ibreth: The plans fha, have been subml,ted provlde only for completing in ,he gas zone. right? Mr. Howard: Yes they do, at thls time. Mr. Gllbreth: And then you will submltt additional plans before ,ha, completlon Is made. Mr. Howard: We wi11 do that, yes. Mr. Gi lbreth: I didn't fully understand. You're planning to use gas for fuel:~to generate power In ,he power p. lan,, what about your plans for standby? Mr. Howard: The firs, s,age of ,he power plan, ,ha, we're proposing at ,he momen,.to ship up ,his summer calls for ,wo i? megawa,ts sets. I understand ,ha, one of these sets will be used to generate the power. the o,her will be on s,and-by. This will supply sufficient for our presen, needs, A, some la,er da,e we shall be sending addl,ional genera, lng sets ,o the Nor,h Slope and I believe the plans at the moment call for an addl,lonal ,wo 25 megawat,s se,s to be sent.up prior to start up of produc, ion. Mr. Gilbreth: Are your plans ,o u,lllze so called caslnghead gas once the field goes on produc, lon. or are you planning ,o u,llize gas cap gas? Mr. Howard: We"re planning ,o use caslnghead gas. Mr. Gl Ibreth: I don', have any o,her ques,lons right now. -9- Hr. Burrell: Mr. Marshall, Mr. Hamilton? Hr. Hamilton: Hr. Howard, you testified I believe that production from this gas well would represent say 300ths to 500ths of I~ of the gas cap volume? Mr. Howard: Yes. Mr. Haml Iton: Is this based on the three year perlod at even, say, a 5 million a day rate? Mr. Howard: Between 5 and 8 million, yes. In fact the gas cap salable gas, which wlll exclude the C02, I ,hlnk has been published and has been quoted as I? trillion cubic feet of gas. With the C02, thls would roughly be something a little over 19 trllllon. Out of 5 m1111on cubic feet of gas per day I ,hlng thls represents somethlng Ilke 5 point someth Ing b I I I I on cub I c feet, wh I ch ca icu I ares at someth Ing s I I ght I y less than 300tbs of I% for.the total volume. Mr. 8urrel.l: Mr. Howard, would you run over one more tlme the need for this, why do you need to have to use' thls fuel now, In other words Is there any ~alternatlve source of fuel avallable between now and the ,lme the caslnghead gas Is available? ,, Mr. Howard: Yes, we've looked at, we have looked a, an alternative and the obvious alternative was to uti I lze gas from, off the topplng , plant. But there are several factors Involved In getting this gas that we feel do not quite meet, sul, our purposes. The varlatlons In the requirements of the topplng plant may not be In phase with the gas require- ments; i__e_,, their requirement for dl'esel'fuel. Thus It would be Inadvisable -I0- to link the t~o requirements to a single producing source. Mr. Burrell: Excuse me, you're saying that the, that It would be an Interruptable source of gas? Mr. Howard: Well I feel that the production to the ARCO topping plant, the production of oli to the ARCO topping plant, could vary If we required an uninterrupted and continuous supply of 5 million cubic feet per day, which we do require, It would necessltate ARCO producing at a rate In order to supply thls amount of gas. And In order to supply gas to the power Station a long and expenslve gas line would have to be lald from the ARCO topping plant to the central power station, This plpellne would...become redundant after associated gas Is available. And the peak gas ~equlrements ob 8 mllllon cublc feet a day would necessltate an oll productl, on rate to the ARCO topplng plant of somethlng over I0,000 barrels per day, probably, and we feel the necessity In this Instance exists thaf we have a supply which Is not predicated on other needs but rather, for the sake of argument, to'put It rather crudely, we need somethlng : where we can ,open an valve and get a gas supply.. We have, I would Ilke to go Into thls perhaps a II~tle blt further and this Is way off of the top of my head. The commlsslonl.ng of this fleld Is not going to be an easy matter, . and It Is In the Interests of the operators in the area and the State .of Alaska to flnlsh wlth the commlsslonlng phase as early as posslble. So, Our company's feeling Is that If we can commlsslon · things and get them bedded down we have one problem out of the way when we come to commlsslon oli productlon and this can only lead to a speed- up when we are commlsslonlng the production plawt. -II- Hr. Butte I I: Would you have any objectlons to an order that put a tlme I lmit on this, on your request? In other words, say six months after the field goes on production or for some fixed period of tlme? Hr. Howard: No slr, I think that would be acceptible to us. Hr. Burrell: I~m thlnklng about some reasonable perlod of time for you to switch the caslnghead gas that's belng produced with the oll In as an alternatlve fuel supply for the gas cap gas. Would sl.x months be reasonable, after the field goes on production? Hr, Howard: I would think at thls tlme that sounds reasonable, I feel that there Is also a posslbllify that we could come back to you if we encounter unforeseen problems to ask for an extension of that order. Hr. Bur~ell: .Everybody always does, Hr. Howard: But off of the top of my. head ! feel that's reasonable. Hr, Burrell: Would It be falr tO:'~..~sa¥..:;.that you need the gas well gas to commission the equipment or to Install and operate the equipment, at least to a large extent as necessary to produce the oll and to Inject the caslnghead gas; In other words you need the gas cap gas now so that you can utlll, ze the caslnghead later? is that a fair statement? .! Hr, Howacd: Yes, it Is sir. We have a chicken and egg problem. Everything relies upon the power from thls power plant. We have to start , somewhere. The power from the power plant will be used first of a lll and thls Is the reason we're asking for this request for an operation's . camp which wl~.ll provide a combination of people who wlll be concerned In the constructlon and the. assembly of the varlous production facllltles that we need to commlssion. It wlll be needed to power the equlpment that Is In those faci Iltles In order that they can COntrol the production from the wel Is in order ,hat we can get hydrocarbons from the wel Is to ge, associated gas back ,o the power statlon.tO'd~l.v~..~tbe~'power statlon. So we feel that this is the starting point. Hr. Burrell: I dontt have any more questions, Hr. Harshall do you have any questions? Hr. Gllbreth? Hr. Gl Ibreth: Hr. Howard, in uslng thls gas for the generatlon of power, you're aware of the order that we now have out for regulating the flaring up there. Is there any reason In any way why any gas should be flared as a result of th!s operation? Hr. Howard: Other than for operatlonal reasons and emergencles, no. ~4r. GI Ibreth: What do you mean by operational? Hr. Howard: CommlSslonlng, getting the thing started, to clean the well up, other than that, no, we don't anticipate f larlng gas. Hr. Burrell: You wlll have a safety flare wlll you not? Hr, Howard: I'm not sure Sir, because the productlon process deslgn Is In the process of being completed, We wanted to get your permission to be able to go thls route, before we went to that side of It. These, thls design wlll be discussed with you, prlor to Its belng settled. , Hr. Gl Ibreth: This gets down to the reason I was asklng tl~e questlon. ,, Just off the top of my head I can't see any reason why you mlght even need a safety flare In a case like thls and I wanted to. verlfy that for th is partl cu I ar operation. Hr. Howard: I don~t antlclpate we do need a safety flare. Hr. Gl lbreth: Alrlght, that's what I wanted to hear. The Commlttee has been concerned In times past with the flaring of gas that occurs as -13- a result of the production over to the topping plant, of ARCO, and as you know we have restricted, or caused restriction In thelr productlon. Would If be posslbe to, for ARCO to operate their plant at some mlnlmum throughput that would furnlsh gas for your operation? Hr. Howard: We've looked at this but again we are faced with qulte a substantial expenditure In getting that gas across from the topping plant to our facllltles which Is quite a long way, and we're also faced with having thls gas shipped across during the time the construction is proceeding, and we feel It Is posslble that this could Interfere wlth our constructlon process and maybe it could lead to some problem assoclated with construction - bulldozers or what not hlttlng this Ilne. We feel that we would like to have gas from this well which is located quite close to this.well. These are minimal quantles and of as I have explained, this would be~the most convenient and most efflclent way of running the plant. = Hr. Harshall: Hr. Howard, do you, could you review what will be the dlsposlt!on of any associated I lqulds here? Hr. Howard: Yes, the condensate wl II be relnjected Into the Sadler- ochlt oil pool below the gas/oil contact. The water from the Ilqulds will be separated .out. There Is minimal quantltles of these and these quantities wlll be disposed of and the disposal of whlch wlll conform with the re- quirements of the Department of Environmental Conservation. Hr. Harshal I: Thls will necessitate some sort of a smal I gasollne stripping type.:plant or liquid strlpplng plant on slte? Hr, Howard: Yes, It will. There wlll be gas dehydratlon plant and there wi I I be separators, etc, Hr. Harshall: There will be a relatively small quanltlty of I lqulds that wlll be relnjected then? -14- Mr. Howard: I think our calculations show these to be something In the order of 400 barrels/day. Mr. Marshall: Thank you. Mr. Burrell: Mr. Howard, I have a couple of polnts here. I'm concerned about - during the start-up you Indicated that for reasons of operatlonal necessity there would be some flaring,. Could you give some Indication of potential volumes, potential period of time? I don't think we should give you a blank check, In other words. Although I know you dldn't ask for It but we're golng to have to get Into thls. Mr, Howard: ! think thls Is really a matter of a few days, In other words I would hope less than a week. We will certainly have to test the well, we wlll.certalnly have to clean up the well to Insure we are not putting slugs of drilling fluld that may have got to the formatlon Into our process Ilne. But ! don't antlclpate thls to be more than a few days, Mr. Burrell: Alrlght, that Is one question. Second Is we talked about puttlng a Ilmlt on thls requested order, slx months after start- up of the field, i wouldn't want to make any prognostications at this stage as to the.exact start-up date, Would you care to glve an e.t'ther/or, whichever ls ~he earliest date? Like, you said someth'ing Ilke, I believe you sald something like three years, from early 74. Would you like to say the summer of 77 or six months after start-up, whichever Is the earlier date? Mr, Howard: I think our company would be, If we had an order from you, whlch was pred!cated on our start-up date of the summer of 74 and al lowing us slx months' after that tlme - tlme Mr, Butte i I: 77 Mr. Howard: 77, and allowing us slx months after that time, I~. ,e~., that we would come back to you and ask for an extenslon to this order at the end of 77. Hr. Burrell: H¥ point was this: That I didn't want to give you an order whlch would al Iow you to continue this for slx mont, hs after start-up, of the line, If the line dldn~t underway until 1982. Hr. Howard: No, I understand that but then Hr. Burrell; Some limit, ls what I had In mlnd. Hr. Howard: I would Imagine, although I could not commit myself to this. that. If by the tlme we are ready to commlsslon this plant, the start-up looks as though it going to be done late, that In fact the tlme at which we commlsslon this plant would likely be, would posslbly be de I ayed. .. ~lr. Burreli: That was my question, ~ ~lr. Howard: Agaln, ~ couldn't commit myself to this. Hr. Burr.e, ll: You would antlclpate that If there was a substantlal further delay In the start-up of the plpellne constructlon that you would probably not ~ant to exercise your rights to use th ls gas cap gas If granted, ri ght? Hr. Howard: That's rlght, sir, ~lr. Burrell: This Is not, Its really none of the business of the OII and Gas Conservation Committee but I dld for the record want to call It to your attention. This gas wlll be used off the lease In which It's produced wi I I~. it not? Hr. Howard: Yes sir. Hr. Burrell: Then without unitlzatlon, royalty, which Is the concern of the State Division of Lands, and production taxes, which are the concern -1(5- an emergency source of gas from. presumably, wells which will be comple,ed as gas lnjec, lon wells. I. e._, from ,he gas cap. Hr. Harshall: A, these tlmes we don~, even want to s,art ,o ,hlnk abou, ,he pipellne ,hroughpu, being lnterrup,ed but i,s bound ,o happen some, lme or other and I~m jus, ,hinklng ,ha, as an al,erna,e unin,errup,lble source ,ha, ,his gas well may have value bo,h to you and possibly ,o ,he Sta,e ,o malntain i,s ,hroughpu, O.~.:?~,,he I lne. Jus, ,hinklng before we. whlle we're throwing ou, ,ha, we may wan, ,o res,tlc, you ,o slx mon,hs al,er the start-up, we may wan, ,o ,hlnk ,ha, over a. II,,le bi, about ~ , it belng an unlnterruptlble source avallable for emergency use. ,hrowlng this out, " Hr. HowaFd: Yes, I think, l,~s a point and It's a point well taken, bu, I equally':',hlnk ,ha, s,udles are proceeding wl,h regard to where ,he injectloni;.~ gas Injec, lon wells wl II be. Thls fac,or mus, be considered in ,he Ilgh, of all ,he equipment and ,he whole plc,Ure, fa,her ,ban jus, as one specific poln,. This area ,hat we~ve go, ,his well, ,he. well Is needed~-as a fu,ure oil produc, lon well. I, Is ioca,ed and In ~ac, un,Il a.~:~ew mon,hs ago was programmed to be an. oil produc, lon well. In o,her words, you've go, a s,ack of cards and If you move one you've go, ,o look a~.,all ,he others as well. Bu, l,~s a good poln, and a point well Hr. BurFell: ,Hr. Gl lbre,h? Does anybody In ,he audlence have any ques,lons of the wi,ness? We don~, have any. Thank you very much Howard, Hr, Flln,, Is,here anybody In ,he audience who cares ,o make a statemen, on..,hls hearing or on ,his ma,,er we're considering? If so wetd Ilke you ,o come on up and do so. If no, we'll adjourn. Thank yOU. TESTIMONY PRESENTED BY A. K. HOWARD, BP ALASKA INC. REQUEST FOR EXCEPTION TO SECTION 2159 ALASKA OIL AND GAS c~NSERVATION REGULATIONS AND STATUTES STATE OF ALASKA HEARING - PRUDHOE BAY FIELD- FEBRUARY 16, 1973 Mr. Chairman and members of the Alaska Oil and Gas Conservation Committee. It is our intention at this hearing to present testimony in support of our request for an exception to Section 2159 of the Alaska Oil and Gas Conservation regulations and statutes. This exception, if granted,'would permit BP Alaska to produce gas, without interruption, from a well in order to provide fuel to operate, an electric power plant. Reference is made to the letter on this subject, dated. January 17, 1973, from BP Alaska ~no. to the Director of the DiviSion of Oi~ and Gas,. with Exhibits A, B and C attached thereto. BP Alaska intends to install and commission the first stage of a central electric power plant'which will ultimately provide power for the whole Prudhoe Bay Field operation. At the same time, it is the intention to install and commission an operations camp in the BP Operating Area. The camp will' be a permanent facility and will require a supplylof electricity for light and heat. The power station commissioning will meet this requirement. .In addition, the Power Plant will supply electricity for heat %nd light to gathering centers to permit installation work to be carried out withinthem (see Exhibit C for general layout of facilities to be supplied with electric power during this initial stage). Commissioning of the first stage of the power plant and the camp complies with the work plan for the orderly development of the field prior to the start of production to the trans-Alaska pipeline. The Committee will appreciate the need to commission this power plant, which is a vital part of the Prudhoe Bay development and which will enable other installation work to proceed as well as permitting the commissioning and operation of the new permanent camp. Once oil production to the pipeline is established, associated gas will become available and some of this gas will..be used for power plant fuel. In the meantime, it is our intention, subject to your approval, to. obtain gas to fuel the plant from a well on Pad C, which is conveniently located nearby. One well, C-3, will be drilled from Pad C for. gas supply and another from .the same pad, Well C-4, will be used~ for injectionof separated liquids. These wells will be drilled and completed in accordance.with Prudhoe Oil Pool Rules. The gas supply well, although initially~ cOmpleted in the gas zone, will be deepened and completed as an oil well when gas from this source is no longer required. A gas treatment plant will be installed at'Pad C to separate liquids from the stream and prepare the gas for transmission to the power plant. The final process design for this plant is currently being prepared and will cOnform with State of Alaska regulations and statutes, in respect of metering and other requirements. The separated liquids will be injected~ into the Sadlerochit oil pool below the gas/oil contact.via the Well C-4, referred to .as the injection well. -2- Our request for an exception to Section 2159 arises from the need to ensure the continuous operation of the power plant when other factors may dictate an interruption of the fuel gas supply. Our understanding of the Oil and Gas Conservation regulations and statutes is that our required gas production will generally fall within.theallowable offtake specified in Section 2159, based upon the daily oil production to the ARCO/Exxon topping plant. Our calculations, based on an average day's oil production to the topping plant, indicate that.our expected gas requirements of 5 million SCFD with peaks of 8 million SCFD fall ~ii'~i.~~ within the allowable, but to guard against occasionswhen oil prOduction is interrupted or for other reasons, we request the exception'~so that we may be permitted to produce this gas independently of oil production. To give an idea of the quantity of gas represented by this project we calculate that, over the period from the start of the power, plant operation until associated gas is available from oil produced, from 3/100tbs to 5/100ths of 1% of the total recoverable gas cap gas will have. been produced. To conclude, gentlemen, BP Alaska requests permission to produce gas from the Prudhoe Oil Pool gas cap. The normal production rate will be approximately 5 million SCFD, which is the estim~d quantity required to operate the first stage installation of the power plant at the forecast 16ad. On occasions, particUlarly dUring the Winter months, the power plant load will increase, requiring up to 8 million SCFD of gas. The duration of the requirement for this gas production is planned to -3- be from early 1974, until associated gas in sufficient quantitites becomes available from oil production to the trans-Alaska pipeline -- an estimated 3-year period. We believe the proposed use of the gas is essential to the development of the field and will constitute a beneficial use of the gas. Your favorable consideration of this proposal would beappreciated and I wish to thank you for your attention. rom~ 10'-- 401 . R.I,~. I-I--71 EX~IIBIT "A" STATE OF ALASKA (Other m~;trurllnn! L OIL AND GAS CONSERVATION COMMITTEE PERMIT TO DRILL OR DEEPEN J&. 't~'l't or WOrK DRILL I). 'rTtl~ or tlrtLL ,.,,.,. I-1 ,,.,L[ DEEPEN [] , ZONI; OTflZJ · BP Alaska Inc. 3. AI)DRES.S Or OI'EILATOB P. O. Box 4-1379, Anchorage, Alaska 99509. 4 LOCATION OF WELL At .~ur lace 879t WEL,' 1316~ SNL, Sec. 19, TllN, R14E, UPM A~ ~ro~osed.rod. ,o~e (Top Sag River) 3367' WEL, 4584' SNL, Sec. 17, TllN, R14E, gPM 13. DISTANCE I.',,I ~%,ILD',S AND DIRECTION I.'T&OM N£AHE>I 'IO'~vN OR £'OST OFFICE* 100 miles ~.E. Um±at G. IJ:ASE DESIGNATION ~I, 28305 3. IF INDIAN. 8 UNIT, FARM Oil I.EA~E V. WELL NO. 1o F'IE:,D AND POOL. (.~, %VII,DCAT Prudhoe Bay~ Prudhoe Oil Poo I1. SEC.. T . iIOLE OBJECTIVE, Sec. 17, TllN, R14E, UPM ,4. ~O.ND l.~'o~.~',o.~ State of Alaska DL-11 TY~r. Blanket s,,~e!,. ~.o~ ~. Federal Insur~ce Co. 8016-77-14 l iS. ~C). OF ACRF~ IN I.EA5~ I.OCATION TO 5'~:~REST 2480 . 15. DIST^NCE FROM i'HOPOSED' 3367' from East PRO,~'~Y O~ I.~:^S~. ,-,X£. ~V. line of BP lease lAIrd to neareRt dr~C tn ' if anv} .. , ~ ...... .'" : _~T 2. R309 18. i)I~TANCE FROM {'~OPOSED LOC,~ BP Well C-1 (42-19-11-~4) 19. PROPOSED I)L'PTH 9670' }~ (8610' TVD) · .~o=_t. $100,000.00 To T-,S WELL 640 ROTARY OR CABLE TOOLS Rotary 21. EI,£VATIONS ~Show whether DF'. RT. CH. etc.~ 22. APPROX. DATE WORK WII,L STAR'r° Estimated KBE 55' AHSL February 15, 1973 23. PROPOSED CASING AND CEMENTIMG PROGRA~M SIZEOP HOLE SIZE OF CASING WEIGIITPER FOoT GRADE J ' RCTTING DEPTH quonlit¥ of cement 24" .Z.8.~" 96',5/1.39 K,55. . 25..0.0 - 2500 '550~3_Cu. ft. P6rmafr0St' ~"' ' 2650 cu, ft. 'Class "O" + 250 17,, ~_3!,, 68 N-80 /~3.5.p - 42.00 ............. ~ Permaf~os, gT, ...... '",,' 8 o0 .... cza . ,,o'7',"+-i$o ,, ft. II Forecast . ....~v'D. ,- BKB_ Top Coal Lower Cretaceous Unconformity Top Sag River Sandstone Top Shublik Formation Top Sadlerochit Formation Se.e Attached Drilling Program Outline. ,'445~' 7705~ 83'7~' . 860.5' 848~' ~ ABf:)~: .~PACI:~ DI~;CRIBE ~ROPOS1~-D PR~R.%~: If ~1 Is to dee~n '~ive ~ on 9~ ~u~lve zone ~d pro~ new p~u~lve zone. lt. p~F)~I Is ~ drill or 0~n d~ion~ly. {lye ~.r~tnent ~' on s~bsu~',~t~ ~d measmd and ~ue p~gram. 've~tca~ alephS. Give blo~u[ preventer' . ft,¸ PermafroSt I! hereby ~.if)I that the Foregoing I" True end Correct OATZ ' ~'e'~ 3'1 1 '~ ' ' ~,'n~: Manager Operations (lhis space for SLate oH,ce SAMPLF-.S AND CORE ~}llPS R~UII~ I MUD ~ ~-~ ~ ~o] ~ vr~ DI~ION~ SURVEY CONDITIONS OF APPRO%'YLL, IP ANY: 13 vm 0 No C] NO A.P.I. NUIVLERICA~ CODEC APPROVED BM',,_ .... 'See In'mvctions On ReverN Side ' ,..' . , . WELL NI2,~BER BP C-3 (17'"!!-_14 )_ PROPOSED DRILLING PROGRAM OUTLINE Dry bu~ke~ BO" hole Go mbo~g 80 f~, b'nlow 8round l~¥el aIld Rem~ ~0" conduct, or to surface using Permafrost II cement· Drill 24" hole to about 2500 ft. and cement 18~" casing to surface using Permafrost II cement. Drill 17" hole under directional conditions to approximately 4200 ft. T.V.D. Cement 13~" casing in stages with Class "G" and Permafrost II cement to approximately 2145 ft. Place residual crude oil behind casing from approximately 2145 ft. to the surface. Drill 12¼" hole under 'directional conditions to T.D. at approximately · o~,, liner at 2100 ft. and cement in stages with 8610 ft. T.V D. llang ~ Class "G" and Permafrost II cement. Suspend ~ell for later completion. Blowout preventer program, is 3000 pipe rams, blind rams and 2000 psi .Hydril from 18~" casing point, and 5000 psi pipe rams, blind rams and Hydril from the 13~" casing point. PROPOSED CO,~fl~LETION PROGRAM OUTLINE The well will be completed as a gas producer at some future date. Displace mud to a completion fluid and set a packer equipped with tail- pipe and receptacle for 2-7/8" tubing in the 9~".casing at approximately 8400 ft. T.V.D. Hang 9~" x 5½" Therm-O-Case in well with shoe above top of 9~" liner. Run 2-7/8" tubing and land in packer. The tubing will have a ball valve nipple at approximately 2000 ft. T.V.D. and facilities for the injection of hydrate inhibitor or corrosion inhibitor at approximately 5000 ft. T.V.D. Perforate'the gas zone and install the.ball valve at approximately 2000 ft. T.V.D. Briefly flow test well and shut-in. Install back pressure valve. Blowout preventer program is 5000 psi pipe rams, bltad' rams and Hydril. 18 L- '1 I ~ 3367' ¢-3 (P~;posed) NE COR. OF PAD ILOC,. THIS SURVEY) I LAT. 70el7' 51.13' LONG. 148~9'~.~" Y · 5~,19~ I SECTIONS ri, 1_8, Lg, 20 SCALE I"= I/Z Mi. PAD i .41.- I$ - II- 14 /7'- //- 14 I/eft. 4~-/I-/4 SUMP SUMP $00' DETAIL CERTIFICATE OF SURVEYOR , hereby certify that lam properly registered and licensed ,o practice land su'~',eyi',g ,, 'the S'fOfe Of that this plot repres.en.tso.locqtion:survey.mode,by, me.ort.~ under my supervisiOn~ ond thai oll dimensions and other details ore correcL ' , Dar e SURVEYOR SPACING BETWEEN C-l-2-3-4 CHANGED FROM I10' TO I00' TO CONFORM 10 FIELD STAKING TOP SAG RIVER LOCATION C-3,C-4 TOP SAG eot'roM HOLE LOC. C-~ .,._~.k.~H_~E~_,~.,.7_,_~ ..... ,'.: OI 25 73 DMB.' ' .', , 01-18~T5 . M. LS. Survoyed for B.P ALASKA INC. - : Ill -- . - T-- III I im!L __ - Imlll :-- ~- '-_ '_ Surveyed by F.[,t. .LINDSEY I~ ASSOC. LANB~I~ HYDROGRAPHIC SURVEYORS 2502 VI~j Norlhorn Llght~ Boultvord Dol 4-081 %. 'N I~rm ~'0'-- 401 . EXHIBIT "B" STATE OF ALASKA OIL AND GAS CONSERVATION COMMITTEE' PERMIT TO DRILL OR DEEPEN DEEPEN At proposed prod. zone DRILL Jk 'I'TP1 Or WeLL 0,. l'l I.l. L~JJ WILl, Bt~ll JONJ NAME OF ()PE~TC)R' ADDR}~ ~ OP~R P. O. Box 4-1379, ~chorage, Alaska 99509 ~'"~'"~ 879' ~L, 1216' SNL, Sec. 19, Ti%N, (Top Sag ~ver) 548' WEL, 2019' S~IL, Sec. 18, TllN, ~4E, 13. DISTANCE IN ,MIl. ES AND DIRECTION FF, C)M .N'EARESF TOWN OK POST OFFICE' 100 miles ]i.E. Umiat 6. I,;:ASE DI~IGNATH)N AND St~tIAI. NO. ~)L 28305 7. IF INDIAN. ~3~E Oil ~BE N~ 8 UNIT, FARM Oil LEA~,I'.' NA.MI:: Fut- I~iver s.-T-W~'L- NO: ............................ 10. }'iEI. D AND POOL. Oil WII.DCAT Prudhoe Bay', Prudnoe Oil II. SEC,. T,, R,, M., liSLE OBJECTIVE~ Sec. 18, TllN, R14E, Ii, I~OND INFORMATION: State of Alaska DL-11 · rw,~ Blanket S~ty,-d'o~ ~'0 Federal Insurance Co. 8016-77-1~ t),s'r.~Ncn fao.,, ~,~:o,,(,s~o' z~i9 :- frdm 'g-dUti~'li~.' N'o. oF ACheS ,:; LEASE LOCATION TO NE,k~(EST line of ;~C0/Eumble ~o,.~,~. o. ,.,.~. ,~,~. ~. ] 2480 ,A,~o ,o .~, ~., ..~, , ~..'~ lease ADL 28304 DISI'ANC'E FROM /'HCPoSED LOCATION' ilS, PRO~S~ D[~TH TO NEAREST WELL DIIII,LING. COMPLETED. j o, a,,Puz~ ~oa. ,~. 3555 ft. from BP 11,005' 1~ (9140' I Well C-3 (17-11-1~) ~o.;,t $100,000.00 .. so Ac. Es ^SS,C;.~.D TO Tins v,'£L.L. 599 ~0. ROTARY OR CABLE TOOLS Rotary Estimated KBE 55' AMSL · I, larch 20, PROPOSED CASING AND CEMENTING PROGRAM SiZE OF HOLE SIZE OF CASING- WEIGHT PER rOOT GRADE SL'TTING ~EPT~ quantity of ce~%nt. . - .............. · Y~' .;',," TVD ,.18~" 13~" , 68/72 ~1-80 2600'-2600' 30~0 e'u~ tr.' Pe~atroaC zz 12~" 9~]" '4'7 ...... i;-SU ~ W~So-;*~bo'Yb; 2~u~ cujic, Cia'ss "G" + ' ................ i5~ e~'. ft. Ye~afr°st ~I - .... ;,,...'. ........ 'ci&'a ' "' , TVD-Ift~ ,- Forecast ..... - - Top Coal Lower Cretaceous Unconformity Top Sag River Sandstone Fop Shublik Formation Top Sadlerochit Formation 4360' 7640' 8 375' 8405' 8 480' .See Attached Drilling Program Outline. IN AI{OVI: SPACE DI:~SCRIBE P'ROPOSET) PROGR.AdV[: If p~l Is to dee~n 'eryc ~ on ~ ~udlve tone ~d p~ new pro~u~we ~ne..if= propel is to Orlll or o~n O~ec~ionaity. live p~rtmen~ ~' on I~bsU~ ~t~ ~d meas~d ~d ~ue 've~tcal d~p~-s, Give bio--ut prevetjter' p~ram. g . hereby centrust the Foregoing Is ~e end Corre~ ~ · (This Space lot Slate ofhce u~) CONDITIONS OF' APPROVAL. IP AN'Y: JAbIPLJlSAND CORE CHIPS R~U~ J MIrD LOG ~ ~Ul~l~: i O Y'~ ~ aG ' ' ........... ,. i m , i P~RMI~ NO_-__. .... A. PPROVAI,, DAT~ ........... APP~tOVI:O BV~ ~- · ,, 'See Inmuctto., On Rev, r,e..$1de .., · .. WELL NL%mER BP C-4 (18-11-14)_ PROPOSED DRILLING PROGRAM OUTLINE Dry bucket 36" hole to about 80 ft. below ground level and cement 30" Drill 18½" hole to about 2600 ft. and cement 13~" casing to surface using Permafrost II cement. Drill 12¼" hole under directional conditions to approximately 8075 ft. T.V.D. and cement 9~" liner to approximately 500 ft. inside 13~" shoe in stages with Class "G" and Permafrost II cement. Drill 8½" hole under directional conditions to T.D. at approximately 9140 ft. T.V.D. Cement 7" liner to approximately 500 ft. inside 9~" shoe with Class "G" cement. Install 7" casing from top of liner to the surface and prepare for flow testing and subsequent injection of condensate from Well C-3 (17-11-14).'. Suspend well for later completion. Blowout preventers program is 5000 psi pipe rams, blind rams and Hydril from the 13~" casing point. LAT. 1'0°17'51.13'* LONG. 148 °39' 54.2~ Y · 5~9~19~ 19 t x ~ ~,e,o ¢-2 SECTIOI~$ ,r/', LS,_lJ, 2o SCALE I"-- I/2 Mi. PAD 18-11-14 17-11-/4 20-11-14 I~rf. SUMP SUMP PAD DET.A. I L SCALE I'=DIDO' CERTIFICATE OF SURVEYOR I hereby certify that lam properly registered and licensed to practice land surveying in the State of..Alaska and ... that this plat represents o location survey made by;me or- under my supervisions and that oll dimensions· and other: details are correct. ' " _tO-.'Z.R- Date · ~.J~ SURVEYOR SPACING BETWEEN C-l-2-3-4 CHANGED FROM IlO' TO lO0' TO CONFORM TO FIELD STAKING OI 25 73 D M B. TOP SAG R~VEH LOCATION C-3,C-4 .'. 01-18-T5 ML.S. TOPSAG RIVER LOCATION C-2 ':' . 01-05--T5 MLS. ..BOTTOM HOLE LOC. C-I, ADb. HOLE 5,6,7,e Io-DD-7"Z M.L.S. D oot d R14~'. Ubllll I, ll'lt ALAIKA Surveyed for I I lltl_ll JL IL ..... ~ _ J t I~ L Y Surveyed by · F:~I. LINDSEY 8~ ASSOC. ' LAI~T'*~ HYDROGRAPHIC suRvEYORS 2502 V~f Nm;thern Ll9hla Doulevord Do~ 4-081 Ancho'~ Alotka AFFII AVIT OF PUBLI 'ATION STATE OF ALASKA, ) THIRD JUDICIAL DISTRICT, ) ss. Mary L Shake being first duly sworn on oath she deposes and says that ................ is the ..... ~.9.E~.]:...~..]:..e.r.~.... 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 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 .... .~..e.g.a..].:...~g..t.~.q.e....~172 as it was published in regular issues (and not in supplemet~tal form) of said newspaper for. a period of ..... .o.b.e. ....... insertions, commencing on the ..... 1 ....... day of ....~:.e.b.~.u~'~ ..... ,1 9 .. ~.3, and ending on the ...........Z.. ...... day of f ....:f-eb~--~aE~' ......... , 1 9.7~..., otb 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 S 13.75 which amount has been paid in full at the rate of 25¢ per line; Mini- mum charge $7.50. .-...?~: ~.~ ~ ~:?' ~." /?.'" ~ ~x ' ,. ': ~: .,?': ~ ,. ~.~.~?~./~.~.~.: ..... ~.. 19 ..... 23 .... ........... ..... ..... the State of Alaska, Third Division, Am:horage, Alaska /~ COAMAISSION EXPIRES /// ..... ....... ZZ .... I · ,,' ;NOTICE:: OF I~L~LIC HEA'RING. 11 '. STAT;. 0~, ,,,U,S~ ' ;[ . DEPAR'FN~E~T OF NAiL RE~URCES Il ' Alask!Otl ~. G. ~nservation. II .Conser~itim .~ile No. 118' It:~:".~':~*~:" ~'''a~li~at~: ~ BP Alaska Il' =:~ In~,~.' for.,' K ':l~e~i~ ":to Title !1, ': ~ .~!''~'!~i'~;: . _ _ ~ "~?~JitM~l~"~;:'~C~dt' S~~ion "~s~ p~c~':~ :~is regulatl~. . · .,....: ........ ~.~..:.. ~ ' · the 7~olrt~M. '~ 'Title II, :~~~:i~m". ~ ~ "~ ..~i~ plant' ~. ~upply wtll, .. [..',~., ,.:.:':.:. ..... . ~.'~,t .~;' I. ''" ':.' -' Council Chambers ~ the Z.J. Library, 5th Avenue an~ F StreW, ,, Anc~,Oraae,,, ,~l,aS~a,::at:~.w~lah, ,. ,d ,a,~fe~fed'', and: i'n~eres~ed'' [,,p~rttes ,will be ~::hea,t,a~ .... ,:,.,,,:: ,, Ex~'Ut'ig~':, .Se~.re~at.~ '.~. 'N. aska 'Oil '.jh~ :~ Ges~': , An~h:0ri,g:e/"',~,~leske 99501 ' , ~;, /, , , Legal 'NOtice N0; 8172 NOTICE OF PUBLIC HEARING STATE OF ALASKA DEPARTMENT OF NATURAL RESOURCES Alaska Oil and Gas Conservation Committee Conservation File No. 118 Re: The application of BP Alaska Inc. for an exception to Title II, Alaska Administrative Code Section 2159 to complete well # C-3 (17-11-14) in the associated gas cap of the Prudhoe Oil Pool, Prudhoe Bay Field, as a producing gas well and to produce It at rates higher than those prescribed by this regulation. Notice ls hereby given that BP Alaska Inc. has applied for an order to exempt well # C-3 (17-11-14) from the requirement of Tltle II, Alaska Admlnistratlve Code Section 2159 in order to produce the well at rates in excess of the net reservoir volumetrlc withdrawal rate of gas and oll produced from the ARCO/EXXON topping plant gas supply well. Fluids produced with the gas from the subject well will be separated and Injected Into the reservoir be Iow the gas/ol I contact through wel I # C-4. The hearlng will be held at 9:00 A.M., February 16, 1973 In the City Council Chambers of the Z.J. Loussac Library, 5th Avenue and F Street, Anchorage, Alaska, at which time the operator and affected and interested · · Thomas R. Marshall, Jr. Executl ye Secretary Alaska 011 and Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99~01 Publish February I, 1973 Bp ALASKA INC. P.O. BOX 4-1379 3111 - C- STREET ANCHORAGE. ALASKA 99EK)3 TELEPHONE (907) 279-0644 January 17, 1973 File: Well Files C-3 and C-4 M-r' H°mer L' Burrell' Direct°:.~ EC E I V E ~ State of Alaska Department of Natural Resourci Division of Oil & Gas 3001 Porcupine Drive ~chorage, Alaska 99504 Dear Mr. Burrell: Prudhoe Bay Field Prudhoe Oil 'Pool:' Wells C-3 and C-4 It is the purpose of this letter to seek your approval to: 1. Complete BP Well C-3 (17-11-14) as a gas producing well under the provisions of Section 2159 of the Oil and Gas Conservation regul- '~'i6~'~~'~ ana 2. Complete BP Well C-4 (18-11-14) as an injection well under the applicable provisions of the Oil and Gas .Conservation regulations and statutes. Wells C-3 and C-4 will be drilled in the manner described in the Applications for Permit to Drill (Form P-l), attached hereto and described as Exhibits "A" and "B", respectively. Both wells shall be drilled and completed in accord- ance with the Pool Rules for the Prudhoe Oil Pool (Conservation Order No. 98-B). Approval of this request will enable BP Alaska Inc. as Operator for BP Oil Corporation, .to obtain a supply of gas which is essential to the dev- elopment of the field prior to the trans-Alaska pipeline becoming operational. Once associated gas becomes available in sufficient quantity to meet the gas utilization requirements as outlined below, Well C-3 will be deepened and completed as an oil well and Well C-4 will be re completed also as an oil well, all in accordance with the applicable regulations and Pool Rules. The gas to be produced from Well C-3 is needed as fuel to operate an electric Power Plant, which will supply power to 'the Permanent BP Operations Camp, and other oil and gas facilities on the Prudhoe Bay leases, owned by BP Oil Corp- oration and operated by BP Alaska, all as shown on the Facilities Map attached hereto and described as Exhibit "C". The gas requirements from Well C-3 will be needed from the time of commissioning of the Power Plant and Operations Camp and continue until such time as associated gas is available from the crude oil produced for delivery to the trans-Alaska Pipeline. Gas requirements from Well C-3 are estimated to be five million cubic feet per day under normal operating conditions. However, on occasion, operational Prudhoe Oil Pool: Wells C-3 and C-4 Page 2 January 17, 1973 requirements and the need to commission and test new facilities may re- quire production and utilization of as much as eight million cubic~' feet per day. Fluids produced with the gas from Well C-3 will be separated and injected into the reservoir below the gas/oil contact through Well C-4. Based upon our understanding of the Alaska Oil and Gas Conservation reg- ulations and statutes, Section 2159, the above gas requirements from our Well C-3 will not require an exception. However, there may be occasions on which the allowable gas offtake, based upon the daily oil production to the ARCO/EXXON topping plant, will be less than the gas requirements from Well C-3. On these occasions, an exception to the Conservation Regulations may be required. All gas and fluids produced from Well C-3 will be metered and reported to the State as required by applicable statutes and regulations. The proposed use of gas is essential to the development of the field and will constitute a beneficial use of the gas. Your prompt consideration of this proposal would be appreciated. hw Encls JAN 9 Very uly yours, .ct Manager