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Home My WebLink AboutCO 197Conservation 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. Lq 7- 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 TOTAL PAGES BY: ROBIN ~ Production Scanning Stage 1 PAGE COUNT FROM SCANNED DOCUMENT: (~ PAGE COUNT MATCHES NUMBER IN SCANNING PREPARATION: yYES NO Stage 2 IF NO IN STAGE '!, 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 COM/~ISSION 3001 Porcupine Drive Anchorage, Alaska 99501-3192 Re: THE APPLICATION of ARCO ) ALASKA, INC. and SOHIO ) ALASKA PETROLE~ COMPANY ) requesting amendment of Rule) 8 of Conservation Order No. ) 145. ) Conservation Order No. 197 Prudhoe Bay Field Prudhoe Oil Pool February 14, 1984 IT APPEARING THAT: ARCO Alaska, Inc. and Sohio Alaska Petroleum Company submitted an application, dated January 27, 1984, requesting that Rule 8 of Conservation Order No. 145 be amended to provide for Commission approval upon application to vent or flare gas when testing Prudhoe Oil Pool wells when access to pool gas gathering center is not prudent. · Notice of the application, time, and place for a public hearing was published in the Anchorage Times on January 31, 1984. 3. There are no protests to the application. FINDINGS: · The West End (Eileen) area is a portion of the Prudhoe Oil Pool which has major differences in reservoir properties from the main field area. · The West End (Eileen) area has not been developed or placed on regular production. , The Prudhoe Bay Unit Working Interest owners have agreed to develop the West End area of the Prudhoe Oil Pool with projected production to commence in 1988. · Development decisions for determination of the location, size, and number of pads, well spacing, pipelines, and design or facilities are contingent upon well tests of sufficient duration to establish initial productivity, sustainable production characteristics and long-term decline rate of this area. · There is no prud. ent access to pool gas gathering facilities. Conservation Ord,/' No. 197 Page 2 February 14, 1984 · Failure to inject into the Prudhoe Oil Pool the gas produced during the Commission approved well tests will not affect ultimate recovery by a measurable amount. NOW, THEREFORE, IT IS ORDERED THAT: Rule 8 of Conservation Order No. 145 is amended to read as fo llows: Rule 8 Venting or Flaring The venting or flaring of gas is prohibited except as may be authorized by the Commission in cases of emer- gency or operational necessity. However, upon applica- tion by the operators, the venting or flaring of gas may be authorized by the Commission to permit testing of wells in areas of the pool where access to pool gas gathering facilities is not prudent. DONE at Anchorage, Alaska and dated February 14, 1984. ,, , Alaska Oil and Gas Conservation Commission ~%~% gilS~n~ Gas C~nZ%eS.~v°%~_on Commission May 23, 1984 P. J. Martin Vice President Operations and Engineering Sohio Alaska Petroleum Company Pouch 6-612 Anchorage, Alaska 99502 L. E. Tate Vice President Engineering and Extension Exploration ARCO Alaska, Inc. P.O. Box 100360 Anchorage, Alaska 99510 Re: ~Conservation Order No. 197 Dear Sirs: Thank you for ~our May 11 subject letter clarifying the Working Interest Owner s (WIO) understanding of our January 26, 1984 work session discussion of West End (Etleen Are~) development and whether that discussion provided an appropziate foundation for Finding No. 3 of Conservation Order No. !97 issued February 14, 1984. As you will recall, those discussions served as justification for the Commission to amend Rule No. 8 of Conservation Order No. 145 in conformance with AS 31.05.050(b) thus providing the Commission with latitude to administratively address and subsequently authorize the flaring of gas during a long term production, test of West End Test Well 21-11'12. You' will further recall from the January 26, 1984 work session that production testing of West End Test Well 21-11-12 appears Justifiable because test results will provide data required by the WIO to effectively optimize development drilling, production. facilities aped depletion management plans for exploitation of the West End (Eileen Area)portion. of the Prudhoe Bay (Permo-Triassic) Reservoir. The Commission does not choose to debate the apparent issue of whether or not our January 26, 1984 discussion served as an adequate basis for Finding No. 3 of Conservation Order No. 197. Rather what now appears to be of s~ostance, stems from a portion of the last senter~ce of the penultimate paragraph in your May 11, 1984 letter which in part. reads:" ,in an ~ffort to maintain viable options, including that of a 1987 production start up, Yes, we do believe clarification of these phrases is i~qportant. Specifically does the maintenance of option refer to a date of start up, or start up at all? }~. !iartin and ~' May 23, 1984 Page 2 · Tate Based on our interpretation of the Prudhoe Bay Unit Agreement effective April 1, 1977, the WIO do not have the option of "start up at all." in fact by virtue of that agreement, we believe the WIO are contractually bound to develop and produce marketable hydrocarbons occurring within the Prudhoe Bay Reservoir, as delineated on Exhibit F of the agreement. In fact, not to do so with diligence, would in our judgement constitute a breach of contract. If you were referring in your May 11, 1984 letter to an option of timing for production start up of the West End (Eileen Area), we more readily understand your concern with Finding No. 3 of Conservation Order No. 197. And timing of start up for the West End (Eiieen Area) is also an ongoing concern of the Commission. We know that a free gas cap or caps occur within the West End (Eileen Area) substructure of the Prudhoe Bay (Permo-Triassic) Reservoir. We know that the West End originally contained somewhat more than 200,000,000 barrels of crude in place. We know that West End reservoir energy (pressure) is being depleted as a result of withdrawals from the Main .Area of the Prudhoe Bay Reservoir. We ~know that theoretically, the continuation of pressure decline in the West End will liberate free gas, expand original gas caps and nega- tively affect ultimate recovery thus creating underground waste. From a practical standpoint the Commission recognizes that the delay' thus far in production start up has not reduced ultimate recovery from the West End by any quantifiable amount, if any at all.. However, we have .great concern that ultimate recovery will be decreased and measurable waste will occur if West End start up is .delayed beyond 1988. Your co~nents on our views will be appreciated. Perhaps an informal discussion of the subject will serve as the more appro- priate · means of arriving at a mutual understanding of intent with regard. Please advise. --C. V. Chattert6n Chairman D~h:Vlyept. of Natural Resources - Division of Oil & Gas For your consideration in approving PBU for annual Plans of Development and Operation· May 11, 1984 Mr. C.V. Chatterton, Chairman Oil and Gas Conservation Commission State of Alaska 3001 Porcupine Drive Anchorage, AK 99501 Conservation Order No. 197 Dear Mr. Chatterton: The purpose of this letter is to clarify Working Interest Owner understanding of the discussions pertaining to West End development during our meeting of January 26, 1984, and to Finding No. 3 of Conservation Order No. 197 issued on February 14, 1984. While the Working Interest Owners are develOPing plans to enable West End Production to commence in the 1987-1988 timeframe, the actual development scenario is still contingent upon well test results, reservoir performance projections and additional reservoir structural definition resulting from current field activities. The Working Interest Owners, in an effort to maintain viable options, including that of a 1987 production start-up, are proceeding with planning, feasibility testing, and facilities activities, while the reservoir evaluation is underway. In an effort to define the most efficient development strategy, the WIOs have devoted considerable resources to the West End Project. This commitment of resources will continue until ~~ development decisions are made. It should be emphasized none of the Owners have, as yet, financially committed to this project. Regards, P. J. Martin Vice President Operations and Engineering Sohio Alaska Petroleum Company Pouch 6-612 Anchorage, AK 99502 L. E. Tate Vice President Engineering and Extension Exploration ARCo Alaska, Inc. P.O. Box 100360 Anchorage, AK 99510 ....., ..... .... O MAY © :L 1984 k~aska Oit & F3~3 C,[ns. Oommissi All,, k, ~.~e Letter to C. V. Chatterton Oil & Gas Conservation Commission May 10, 1984 bcc: B. E. Davies D. M. Creveling, Jr. V. B. Verma K. M. Hostler D. R. Watkins A. E. Leske (SAPC) R. W. Watkins (PSC) ,SWORN,. ACCtJR b J,,,!G PUBLISHED 1N THE I'~i~D Jt, JDiCIAL [)iVISIC, r,:, S T A T g O F A L :~ O T 1 C g L,~ E'. ......................... THE PRICF4 0 T HE A D ,N U t','! ~5 ,E R 'Ill t"~' 'i $ A 0 I ,$ ............. 553? 0]./.,3 1 1'8.~ 0 1,/3 1, f '8 .~'1 S 2 0.1, 0 1 7 0 6 5 5 4 I' STATE OF: ALASKA ' ' :NOTICE OF PUBLIC HEARING STATE OF ALASKA, , AlaskaOIl& Gas , , Conservation Corn ,mission Ref ".The; ,Plicatlon of ARCO ALASKA, ~C. and' SOHIO 'ALASKA TROLE.UM, COM- ~AN~,onl ~lf~ t~e Prudh~ Bay~ unif,~ klng,'lme~Sf, Own~ e~ ~r;'ah:.i tend~entto Rules ot~in~rvt ~nOrder No:' 1~;' ' a~ tl'c~'",l ~reby eixen'..th~ ~AR 0:,~ 'A~ 'A,. INC.' ~,..ana ',~P'~./,~7~,'.,A ~ve'~',,req~'~s~ var, ;n.',,'c~ ~16n...to.': amen~ Rule 8 ef ~n~vatlon Order No. 145 ~ that an exceatlon may be ~ ant~ where condi- tion= would make It ~ru~ent. AmendS' Rule 8 would read follows: "The venting or flaring of gas Is. grehlblted except as may ~ ~f~lzed .by the COM- ~I.TTEE '~mls$lon In cpses m emerae~y or operatlonm ne- ceslty. HeWever upon tlon ~v the'e~emtors, the vent- lng er flaring ~ ga~ may be euthorlzd ~ the Commission to ~mlt-~'.ef well~ In .areas ea~ eatherme mcillte~ prueent~" ''~ ' Pa~tl~s '~ .. ~m.' ma~ grieved If' t~Forder. Is Issues g~antlng thin,aced request are allowe~0 d=w .from the date of this~BIlCatla6. I~ which to file a ara~t; In'WH.t~g, stat- ina In detM~fb~'~bture:of their aggrlevem~a~d' their' 'rea~st for a hear~,~.lace.e.f fUIne Is t~e Ala~a..UU.'.~hdTGd~ con- ~rvatl9n ~A~lbn~:. ' Porcuame~D~Ve~?: An'c~orage, Alaska ~S~¢,lt'aee~ a.a~otest mstams a~.,"omers, may oe heard. If ~,suCh'::.~ro~st .mew gommls~lO~l~ · *. Alasko Conservatl~q :Cammlsslon ~,'....;' AO-08 55~ , ,,,,:, ', . ,' , ARCO Alaska, Inc. P. O. Box 360 Anchorage, AK 99510-0360 Sohio Alaska Petroleum Company Pouch 6-612 Anchorage, AK 99502-0612 January 27, 1984 C. V. Chatterton, Chairman Oil and Gas Conservation Commission State of Alaska 3001 Porcupine Drive Anchorage, AK 99501 Re: Amendment of RUle 8, Conservation Order No. 145 Dear Mr. Chatterton: Please consider this letter a joint request by Sohio Alaska Petroleum Company and ARCO Alaska, Inc., as Operators of the Prudhoe Bay Unit, for an amendment to Rule 8, Conservation Order No. 145, Prudhoe Oil Pool. The amendment would add an additional sentence to Rule 8 as follows: "Upon application of the operators, the venting or flaring of gas may be authorized by the Commission to permit testing of wells in areas of~ the pool where access to pool gas gathering facilities is not prudent." The purpose of the amendment would be to permit the Operators, upon proper application, to initiate production tests in areas of the field where access to gas gathering facilities is not prudent. The letter of December 9, 1983, from Sohio Alaska Petroleum Company concerning the production well test in the Prudhoe Bay Unit West End is an example. Upon approval of this amendment by the Commi ss ion, please consider this letter also to be a request that the December 9, 1983, proposal be cons idered under such an amendment. Alaska Oil & Gas Cons.Comrmssion' Anchora.q. e C. V. Chatterton Page 2 January 27, 1984 This amendment is supported by the materials which were prepared in support of the West End test, and which were delivered to the Commission at meetings held on January 26 and 27, 1984. Sincerely, ARCO Alaska, Inc. Sohio Alaska Petroleum Company VP Engineering & Extension Exploration JAR/wp P. J. M~rtin VP Operations & Engineering