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Home My WebLink AboutCO 196Conservation 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. .~?~_¢2 Conservation Order Category Identifier Organizing (done) RESCAN [] Color items: [] Grayscale items: [] Poor Quality Originals: [] Other: NOTES: DIGITAL DATA [] Diskettes, No. [] Other, NofType 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 ~/~1~_ ARIA..~ Scanning Preparation TOTAL PAGES BY: ROBIN ~ Production Scanning Stage I PAGE COUNT FROM SCANNED DOCUMENT: ~ ~ v PAGE COUNT MATCHES NUMBER IN SCANNING PREPARATION: _~YES /si NO BY: Stage 2 ~ MARIA DATE: (..(2-///-~ IF NO IN STAGE 1, PAGE(S) DISCREPANCIES WERE FOUND: ~ YES (ScANNiNG ~S THIS POINT UNLESS SPECIAL ATTENTION IS REQUIRED ON AN INDIVIDUAL PAGE BASIS DUE TO QUALITY~ GRAYSCALE OR COLOR IMAGES) I II I General Notes or Comments about this Document: 5/21/03 ConservOrdCvrPg.wpd STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION CO~ISSION 3001 Porcupine Drive Anchorage, Alaska 99501 Re: THE APPLICATION OF ARCO ) ALASKA, INC. for an excep- ) tion to 20 AAC 25.240. GAS- ) OIL?gTIOS for the purpose ) of conducting a long term ) production test of South ) Point State Well No. 1. ) Conservation Order No. 196 Prudhoe Bay Field .Lisburne Oil Pool February 6, 1984 IT APPEARING THAT: ARCO Alaska, Inc., by correspondence dated, December 16, 1983, requested the Alaska Oil and Gas Conservation Commission to grant an exception to 20 AAC 25.240 for the purpose of conducting a production test of South Point State Well No. 1 over a six months time period. · Notice of a public hearing was published in the Anchorage Times on January 20, 1984. · A letter dated January 31, 1984 was received February 1, 1984 from Exxon Company, U.S.A., co-lessee, in support of the ARCO Alaska, Inc. request. · A public hearing was held on February 2, 1984 at 3001 Porcupine Drive, Anchorage, Alaska. Testimony was presented by the applicant. No other oral or written statements were submitted. No opposition to the application surfaced. · The hearing record was closed, at approximately 9:23 AM February 2, 1984. FINDINGS: · South Point State Well No. 1 is in the Prudhoe Bay Field and is completed in the Lisburne Oil Pool. · Short term flow tests of South Point State Well No. 1 and other pool confirmation wells indicate that Lisburne Oil Pool production characteristics may exceed a gas-oil ratio of 2000 to 1. · There are no facilities available for returning the produced gas to the same pool. · The Lisburne Oil Pool has not been developed or placed on regular production. · A six months production test of South Point State Well No. 1 is necessary to develop a foundation of data Conservation Ord~i' do. 196 Page 2 February 6, 1984 regarding Lisburne Oil Pool production performance to provide necessary design criteria for the sizing of pool production, gas handling, and re-injection faci- lities. · With the exception of a reasonably sized safety flare, all produced gas from South Point State Well No. 1 is expected to be beneficially recovered. · Failure to inject the gas produced during the six months production test into the Lisburne Oil Pool will not affect ulitmate recovery by a measurable amount. NOW, THEREFORE, IT IS ORDERED THAT: Rule 1 Long Term Production Test A six month production test of South Point State Well No. 1 may be conducted. Rule 2 Gas-Oil Ratio During production testing of the well, gas-oil ratios may exceed 2000 to 1. Rule 3 Safety Flare A safety flare not to exceed 100 MCF of gas per day may be utilized. Rule 4 Gas Flared Due to Operation Necessity Ail gas produced shall be metered and any gas flared in excess of that required for a safety flare shall be considered gas produced and subject to AS 43.55.020(e). Rule 5 Administrative Descretion The Commission by Administrative Order, may amend any rule contained in this order. DONE at Anchorage, Alaska and dated February 6, 1984. Lonnie C. Sn~iffh, Commissioner Alaska Oil and Gas Conservation Commission December 19, 1985 A D M I N I S T R A T I V E ~ A P P R 0 V A L NO. 196.2 Re: The request for extension of long-term testing of the ARCO Alaska, Inc. well L2-6 (South Point State Mo. 1). Mr. Ben Kawakami Operations Coodinator Lisburne Operations ARCO Alaska, Inc. P. O. Box 100360 Anchorage, Alaska 99510-0360 Dear Mr. Kawakami: By letter dated December 4, 1985, ARCO Alaska, Inc. requests the Alaska Oil and Gas Conservation Commission to approve the continued testing of the L2-6 well through 1986. Continued testing will provide data needed for efficient field development and maximizationof oil recovery. The Commission is in agreement with the need for more data. ConServation Order No~ 196 and Administrative Approval No. 196.1 were issued to cover the previous testing of this well. Therefore, pursuant to Rule 5 of Conservation Order No. 196, Rule~ 1 of said Conservation Order is amended to read: Rule 1 Long ~erm Production Test A six month production test of South Point State Well Mo. 1 (L2-6) may be conducted. A second long term production test may be conducted during calendar year 1985. Additional long term production tests of well. L2-6 may be conducted throughout calendar year 1986. YoB~s very ~uly, Lonnie C. Smit. h Commissioner BY ORDER OF THE COMMISSION be: 3:AA196 December 11, 1984 ADMINISTRATIVE APPROVAL NO. 196.1 Re: The request for an exception to the 2000:1 gas-oil ratios limitation to permit an additional long term test of the ARCO Alaska, Inc. No. ! South Point State well. Mr. John S. Dayton Regional Engineer ARCO Alaska, Inc. P. O. Box 100360 Anchorage, Alaska 99510-0360 Dear Mr. Dayton: By letter dated November 20, 1984, ARCO Alaska, 'Inc. has informed the Alaska Oil and Gas Conservation Commission of its intention to conduct an addition test of six months or longer on the subject well and requests an exception to the limitation of a 2000-to-one gas-oil ratio during the test. It is stated that more test data is needed to more efficiently develop the field and insure a maximum recovery, The Commission is in agreement with the need for more data. Conservation Order No. 196 was issued to cover the previous testing of this well and, is amendable to provide for the requested exception to the limitation of a 2000-one gas-oil ratio for an additional production test. Therefore, pursuant to Rule 5 of Conservation Order No. 196, Rule 1 of the same Conservation Order is amended to read: Rule ! Long T~....Pr0duction Test A six month production test of South Point State Well No. ! may be conducted. A second long term production test may be conducted during calendar year 1985. Yours very truly, Harry W, Kugler/ Commi s s loner BY ORDER OF THE COMMISSION be:l:AA196 ARCO Alaska, Inc. Post Office BI 0360 Anchorage, AlasKa 99510-0360 Telephone 907 276 1215 ,, November 20, 1984 Mr. C. V. Chatterton State of Alaska Alaska Oil and Gas Conservation Commission 3001 Porcupine Drive Anchorage, Alaska 99501 Dear Mr. Chatterton: Subject: Intent to Commingle Production for Long Term Test at South Point State ARCO Alaska, Inc. gives notice to AOGCC of our intent to commingle hydrocarbon production from the Lisburne formation with similar production from the Sadlerochit formation during a long term production test at South Point State No. 1. This notification is in accordance to Regulation 20 ACC 25.215. The test, which is expected to begin in the first quarter of 1985 and continue for a minimum of six months, will involve surface commingling of Lisburne and Sadlerochit production at Prudhoe Bay Unit Drillsite No. 18. This extended test is th~ same as previously proposed in which permission to flare gas and produce at GORs in excess of 2000 SCF/S~~ w~'"-"-~ranted (Conservation Order No. 196, dated February 6, 1984). After additional analysis, we feel it would be more constructive to commingle the production prior to metering. This configuration will still allow for the procurement of necessary production information while eliminating the need to flare the gas flashed from the oil as it dropped from separator to stock tank conditions. We plan to utilize a flowline between South Point State No. 1 and Drillsite No. 18 to flow Lisburne production into the Sadlerochit facilities (see attached diagram). Production from the well will be measured on a periodic basis to determine the quality and quantity of produced fluids, using equipment and techniques acceptable to the Commission, such as API Standards, Recommended Practices, and Specifications. This procedure adheres to Regulation 20 ACC 25.215 which · states "On the surface, the production from one pool may not be commingled with that from another pool except when the quantities from each source of the production are determined by periodic well tests or other measurements." RECEIVED NOV 2 8 Jg J ARCO Alaska, Inc. la a Subsidiary of AtlantlcRichfleldCompany 2 ll-9jr2 Gas Cons. Commlss ~r, chorage Mr. C. V.f'~ ~tterton November . 1984 Page 2 The well is expected to produce 220,000 STB of oil and an estimated 440 MMCF of gas during the test. The gas-oil ratio is expected to be below 2000 SCF/STB initially but to increase to over 2000 SCF/STB. by the end of the test. As such, the sanctioned waiver of regulation 20 ACC 25.240 which states that "an oil well may not be produced at gas-oil ratios in excess of 2000 SCF/STB without gas reinjection into the reservoir" is still required. The produced Lisburne gas will not be reinJected, however, it will be substituted for Permo-Triassic gas and utilized as fuel within the Prudhoe Bay Unit. As stated in the original letter of request (please find attached), the longest sustained production tests to date in the Lisburne reservoir have been two month-tests performed at several other Lisburne wells. The tests were only long enough to give hints of potential operational and GOR problems. Also, no decline data was obtained during the relatively short tests. While sufficient productivity and reservoir data has been obtained to justify an initial development, additional data is needed to most efficiently develop and maximize recovery from this complex reservoir. A long term test in the 1985 time frame would provide'data which could be incorporated into facility design and reservoir evaluation to allow timely and efficient development of the Lisburne reservoir. ' In summary, ARCO Alaska, Inc. gives notice to the AOGCC of its intent to commingle hydrocarbon production at the surface ~uring an extended Lisburne flow test. Commingling will eliminate the need to flare Lisburne gas; however, the previously granted waiver of the 2000:1 GOR limitation is still required. If you have any questions or comments, please call me at 265-4206. I would be.happy to drop by and discuss this matter with you at your convenience. Sincerely, · Dayton cc: K. Brown, Director of Division of Oil and Gas G. S. Goss, Exxon File: LIE4-2(2), L!E120-1 RECEIVED. 2 ll-9jr2 NOV 2 8 Alaska 011 & Gas Cons. Commission Anchorage I ! i i ~ ~3" LATERAL FLOWLINE INSULATED & HEATRACED SPS #1 WELLHEAD CHOKE 2 MMBTU/HR CRUDE HEATER SOUTH POINT 4" PIPELINE TO DSI8 INSULATED !- DSI8 m-! SOUTH POINT SIMPLIFIED FLOW DIAGRAM SOUTH POINT ST. # I EXTENDED PRODUCTION TEST 3' I I ~4DI32 REV. i Notice of Public Hearing STATE OF ALAS¥~ Alaska Oil and Gas Conservation Commission Re: The application of ARCO ALASKA, INC. for an exception to 20 AAC 25.240 of the regulations for the South Point State No. 1 well. Notice is hereby given that ARCO Alaska, Inc. has requested the Alaska Oil and Gas Conservation Commission to issue an order granting an exception to 20 AAC 25.240 of the regulations for the long term production test of the South Point State No. 1 well where the gas-oil ratio is expected to exceed. 2000:1 SCF/STBD. In support of the request, the company states that the long term production test will provide decline data and gas-oil ratio performance data so that full field development of the Lisburne Reservoir can be evaluated and planned. The hearing will be held at 9:00 AM on Thursday, February 2, 1984 at 3001 Porcupine Drive, Anchorage, Alaska. All interested persons and parties are invited to give testimony. Harry W. Kugler Commi s s ioner Alaska Oil & Gas Conservation Commission E~O N C 0 M PA N'¥i U.S.A. P.O. BOX 5025 ,THOUSAND OAKS, CALIFORNIA 91359-5025 · (805~ 494-2354 PRODUCTION DEPARTMENT WESTERN DIVISION J C BOWEN DIVISION OPERA-I-IONS M ~',,NAGER January 31, 1984 Re: South Point State #1 AO 08-5531 Alaska Oil and Gas Conservation 3001 Porcupine Drive Anchorage, AK 99501 Commission Dear Sirs: As a Co-Lessee of significant Lisburne reservoir acreage, Exxon supports ARCO's request for an exception to 20 AAC 25.240 to allow production of the South Point State #1 well at gas/oil ratios over 2000 Scf/STB. We feel that this test is necessary to establish long-term production characteristics of wells in the Lisburne Reservoir. Sincerely, RAM/kjv 7:013184 A DIVISION OF EXXON CORPORATION STB/D 2000 18oo KEUFFEL & ESSER CO. ~,~A[}F I;~ ~F $ A SOUTH POINT STATE ,~, I - PRODUCTION 46 1320 TEST 16oo 14oo-- 1200 1000 3000 2600 2200 · 1800 1400 1000 26 A i i jlqll, ! ! lllll -iI 30 '3 11 15 19 23 27 I 5 9 13 17 21 25 29 I () 1 /12 0 / 8 4: 0 1, 1 2 CI f 8 4, NOTICE OF PUBLIC HEARING STATE OF:.AL.A'SKA. ~ AlasRa Oi~nd Gas" Conservation'.GommisslOn ' I1~¥~ II'~ I I ~ II ' I I ' ALASKI!~; INC..for an ex. cepflon 'to 20 AAC ;3.240 of . the~ '~,regulatl0n$, for, the Sou.tli;',',l.~P~l~t,:sta'ie No. 1 wel ~',5 'J: "*n' ;i~'~,,,:, ! ~,. , Notice. lb her~l~,.'., given that ARC.O · Alaska,:.:.l~t~.';.,"has re- quesmd .the'Ala~iko ~11 and ~as Conservation COmmission to Issue an order granting. ~ ex- ception to 20 A~C.~,~.~ the regulations ~r, the~ l~g ~:term ~roductlon' tes~ of~,,~th~,"So~th gas-oil 'rat~':"~,~wt6:'~X; cee~ ~:,1,','5~ .~.. vem~mem, ot th,e,:~Ll~n~,,:~ne~, 'e~vo~:can '~..;evmua~.~, .aha; p annea. ,~ ', ': ...." '. =:..,~. , Th~ hearing., wlli ~ ".held :at 9:~ AM on ThU[s~ayCFebru,qry 2, 1~. at"~l"Pb'~umhe ~bnve, Anchorage~ Alaska; All. Inter- i ested Persons and '~leS.are.ln- Vlt~ ~o glvetestlmony; . ' ' ~ , Harry W; Kugler,, ' Commissioner . Alaska OII & Gas Conservation. Comml~lon ' AO~ 5~1 Pub: January20,19~ . $ :1. ,'.4,,. i 0 1, 6 9 9 7 3 ~ January 23, 1984 }-tr. J. S. Dayton Regional Engineer ARCO Alaska, Inc. P. '0. Box 100360 Anchorage, Alaska 99510 Dear l~. Dayton: The Alaska Oil and Gas Conservation Commission has received your request, dated January 17, 1984, to flare gas during an extended test of the Lisburne Reservoir, Prudhoe Bay Unit, in the South Bay State No. 1 well. The referenced well test will provide data needed to evaluate the potential of the Lisburne Reservoir. It is understood that the test will take about two months and that about 72,000 STB of oil and 144 ~{SCF of gas.will be '- produced. It is further understood that the produced oil will be trucked from the well site but it 'will be'necessary to flare the produced gas because there is no flowline in the area, By this.letter, the Alaska Oil and Gas Conservation Commission hereby permits $~C0 Alaska, Inc. to flare.up to 144 }9{SCF of gas during a two month period, the exact dates yet to be determined, in the testing.of the Lisburne Reservoir in. the South Bay State No. ]. well. The' testing will be conducted.in a manner to keep th~ flared volumes at a ~inimum. 'The Commission will be kept advised of the progress.of the test.by adequate reports. The Commission is also deeply interested in the development .potential of this reservoir and we hoPe you have.a very successful and informative operation in the South Bay State No. 1 well. Yours very truly, - ? ..,:" ... ~ 'd ., ]larry W; Kugler Commissioner BY ORDER OF THE CO}~fIgSION be ARCO Alaska, Inc. Post Office Bo[ ~ Anchorage, Ala~,,a 99510 Telephone 907 277 5637 December 16, 1983 Mr. C. V. Chatterton State of Alaska Alaska Oil and Gas Conservation Commission 3001 Porcupine Drive Anchorage, Alaska 99501 Dear Mr. Chatterton: Subject: Flare Request for Long Term Test at South Point State No. 1 AP. CO Alaska, Inc. requests AOGCC permission to flare hydrocarbon gas during a long term production test at South Point State No. 1 and produce du~ing the test period at GOR's in excess of 2000:1 SCF/STBD. The test is expected to begin in the first quarter of 198~6and continue until mid-1985 (approximately 18 months). The test will provide long term production decline data and GOR performance in a timely fashion for "optimizing development planning" of full field development of the Lisburne reservoir. A test facility which was installed for the two-month production test at SPS #1 will be used for the long term test. The facility includes a flowline between SPS #1 and Drill Site No. 18 to allow sending Lisburne production into the Sadlerochit facilities for processing. In order to use the Drill Site No. 18 facilities, the SPS ~1 test separator has to be operated at pressure greater than 300 psi. Under this mode of operation, most of the produced gas is sent to Drill Site No. 18, but a small flare is needed to handle the gas which flashes off of the stock tank oil as it is reduced from separator pressure. For the long term test, this amount is expected to be 60 FR~SCF of gas, or about 4% of the total gas production. The well is expected to produce about 600,000 STB of oil and an estimated 1200 }~SCF Of gas during the test. The gas-oil ratio is expected to be below 2000 SCF/STB initially but increase to over 2000 SCF/STB by the end of the test. Regulation 20 AAC 25.240 states that "an oil well may not be produced at gas-oil ratios in excess of 2000 SCF/STB without gas reinjection into the reservoir". Based on the importance of long term production data in order to properly size major production facilities associated with the development of the Lisburne reservoir, we also request a waiver from the above mentioned regulation. Mr. C. V. Chatterton December 16, 1983 Page Two The longest sustained production tests in the Lisburne reservoir to date have been two month tests performed at West Bay State No. 1 and South Point State No. 1. The tests were only long enough to give hints of potential operational and GOR problems and no decline data at all was obtained during the relatively short tests. Although sufficient productivity and reservoir data has been obtained to justify an initial development, additional data is needed to most efficiently develop and maximize recovery from this complex reservoir. A long term test in the 1984/1985 time frame would provide data which could be incorporated in facility design and reservoir evaluation to allow timely and efficient development of the Lisburne reservoir. If you have any questions or comments, please call me at 263-4206. I would be happy to d~op by and discuss this matter with you at your convenience. Your very truly, J. $. Dayton Reg±onal Eng±neer cc: R. K. Doughty, AT0-1988 S. Hasund, AT0-1826 D. K. Chancey, AT0-1828 RECEIVED NOV 2 8 /~.laska Oil & Gas Cons. Commission Anchorage August 17, 1983 Mr. S. Hasund Senior Area Engineer ARCO Alaska, Inc.. . . P. O. Box 100360 '~ Anchorage, Alaska 99510 Re: Flare Request Pingut State No. 1. Dear ~r. Hasund~ Please refer to your August 12, 1983 subject letter wherein you outlined your plan for conducting a production tes't of Pingut State No. 1 upon its completion. Further you requested Commission approval to flare the. as.sociated gas produced during this initial test .period. . ....~ .... As you know, 20 AAC 25.235(b) is permisSiVe in allowing gas to "escaPe into the air" during the initial' testing 'of a well when' required. However, in view of the anticipated extended time period for conducting the initial .test we believe you appropri- ately have brought the subject to the Commission's attention for review. ,, The Commission is cognizant that wells in reservoirs of 'the Lisburne type may~require extended time periods for initial testing to ascertain, if.a stabilized, sustained production rate can be achieved in order.to.determine the prudency of full scale rese'rvoiT development.,~,~ , . Accordingly, the Commlssi°nherebY aPProves your. request to flare associated, gas at Pingut State No. 1 for an initial test period not to exceed a total of .Sixty 24 hour producing days. be:l:K cc: D. K. Chancey G. D. Scholl ~:ay 11, 19~3 ~r. J. R. ~nepler Regional Engineer ARCO Alaska, Inc. P. O. Box 100360. Anchorage, Alaska 99510 Dear ~:r. Knepler.- The Alaska Oil and Gas Conservation Commission has received your request, dated April 29, 1983, to flare gas during an extended test of the Lisburne Reservoir, .Prudhoe Bay Unit, in the So~_.h~oi~!~_$.t...~.t...e__~N_o_._~11 wel 1. The referenced wel 1 test will provide data needed to evaluate the potential of the Lisburne Reservoir. It iS understood that the test will take about two months and that about 120,000 STB of oil and 240 MMSCF of gas will be produced. It is further understood that'a flowline will be installed bet%~en the well site and Drill Site No. 18 'to handle the gas coming from the test separator which will, by necessity, be operated at pressure above 800 psig. By' thi~ plan, about 40 M~SCF of gas which cannot be put into the flow line will haw'e to be flared. By. this letter., the Alaska Oil and Ga~ Conservation Commission hereby pe.r~ts ARCO Alaska, Inc. to flare up to 40 ~SCF of gas during a two month period, the exact dates yet to be determined, in the testing of the Lisburne Reservoir in the South Poin~ State No. I well. The testing will be conducted in a manner to keep the flared volumes at a minimum.. The Commission Will be kept advised o'f the progress of the test by adequate reports. The Commission is also deeply interested in the develop~.ent potential' of th. is reservoir and we hope you have a very successful and informative operation in the South Point State No. i well. Yours very t ruly, -~ .... /- ..... ~arry W. ~,U.(:~ ler Commissioner BY OP~ER OF TM.~: CO[~.~ISSION /~RCO Alaska, Inc. Post Office B~L Anchorage, AlasKa 99510 Telephone 907 277 5637 April 29, 1983. Mr. C. V. Chatterton State of Alaska Alaska Oil '~nd Gas Conservation Commission 3001 Porcupine Drive Anchorage, Alaska 99501 Subject: Flare Request - South Point State No. 1 Dear Mr. Chatterton: ARCO Alaska, Inc. ,%eq'uests a'permit'to-~'flare.~:hydroCarbon...ga~ during~an extended production~'test~of the Prudhoe Bay .Unit - Lisburne reservoir:~in the South Point State No. 1 well The well is currently being drilled ~nd the testing is expected to take place during the second and third quarters of 1983. The well is located near Drill Site No. '18. The test will provide data needed to evaluate the development potential of · the Lisburne reservoir. The test is expected to take about two months. The purpose of the test is to confirm the well performance seen in the long-term production test of the Lisburne reservoir at West' Bay State No. 1. Sustainable oil rates and GOR performance are of particular.~ concern. The GOR may increase during the testing period but the average GOR should not exceed 2000 SCF/Bbl for the testing period. Total production from the test is expected to be 120,000 STB of oil and 240,000 MSCF of gas. This is based on the well performance seen in the West Bay State No. 1 test. Current plans are to install a temporary flowline between the South Point pad and Drill Site No. 18 to handle the produced gas. Due to temperature/paraffin problems, the oil produced during the test will have to be trucked. In order to use the Drill Site No. 18 facilities, the test separator at South Point will have to be operated at pressures greater than 800 psig. Although most of the produced gas will be sent down the flowline, a small flare will be required to dispose of the "flashed" gas off of the stock tank oil. This volume of gas is expected to be about 40 MMSCF for t'he two-month test. This option' is contingent on approVal from the Sadlerochit oil rim owners to share Sadlerochit facilities. ARCO Ala~k,'L hlc'. is ;~ s,H)sldii~ry ol AtlanllcR,chlieldComl~).'~ny C. V. Chatterton April 29, 1983 Page Two The extensive testing performed at West Bay State No. 1 in 1982 was the first "long-term" production testing done in the Lisburne reservoir. Although.encouraging well performance was seen during the test, many questions remain unanswered. A major concern at this time is the areal contin..uity and homogeneity of the productive intervals tested at West Bay State No. 1. Additional Lisburne wells and tests are needed to confirm the West Bay Test results and determine 'the viability of .full- field Lisburne development. It is hoped that South Point State No. 1, in conjunction with other 1983 Lisburne wells, will provide the data necessary to make this evaluation in a timely fashion. ' If you have any questions or comments, please call me at 265-6193. Very' truly yours, ..Regional Engineer JRK .' JRB :mi ARCO Alaska, Inc. Post Office Bd[' O Anchorage, Ala'.. -~ 99510 Telephone 907 277 5637 March 16, 1983 Mr. C..V. Chatterton State of Alaska Alaska Oil and Gas Conservation Commission 3001 Porcupine Drive Anchorage, Alaska 99501 Subject: Flare Request - South Point State No. 1 DearMr. Chatterton: ARCO Alaska, Inc~ requests a permit to flare hydrocarbon gas during an extended production test of the Prudhoe Bay Unit - Lisburne reservoir in the South Point State No. 1 well. ~he spud date for the well is late March, 1983 with the testing to take place during the second and third quarters of 1983. 5he well will be located near DrillSiteNo. 18. 5he test will provide data needed to evaluate the develoFment potential of the Lisburne reservoir. Tne test is expected to take about two~onths. 5he purpose of the test is to confirm the well performance seen in the long-term pro- duction test of the Lisburne reservoir at West Bay State No. 1. Sustainable oil rates and GOR performance are of particular concern. Tne average oil rate.over the t~x~-month test period is expected to be 2000 BOPD. 5he GOR is expected to increase frcm approximately 1000.'~, SCF/Bbl to 3000 SCF/Bbl, averaging 2000 SCF/Bbl. Total production frcm the test is expected to be 120,000 STBof oil and 240,000 MSCF of gas. 5his is based on the well performance seen in theWest Bay State No. 1 test. Due to the relatively short length of the test, and.considering the extensive testing planned for other 1983 Lisburne wells, installation of a flowline to handle the test production is not economically feasible. Also, from an enviror~nental standpoint, we cannot justify the s%~nmer-time, off-road travel which would be required to install such a line. Current plans are to truck the oil to Flow Station No. 1 and flare the gas, as was done during the west Bay test. Tne extensive testing performed at West Bay State No. 1 in 1982 was the first "long-term" production testing done in the Lisburne reser- voir. Although encouraging well .performance was seen during the test, many questions remain unanswered. A major concern at this time is the areal continuity and homogeneity of the productive intervals tested at West Bay State No. 1..~dditional Lisburne wells and tests are needed to confirm the West Bay Test results and determine the viability of full-field Lisburne development. It is hoped that South Point State No. 1, in conjunction with other 1983 Lisburne wells, will provide the data necessary to make this evaluation in a timely fashion. ~ E [ E ARCO Alaaka, Inc. Ii a ~ubsldlary of AllanlicRIchfleldCompany M,6..;t 1. ? 1983 :, Alaska Oil & Gas Cons. Commission, And~ora.e.e C. V. Chatterton March 4, 1983 Page Two If you have any questions'of comments, please call me.at 265-6193. Very truly yours, J. ~{. Knep±er '~ Reg iona~.~ Engineer JRK:JBR:ml . RECEIYEB MAR 1 z 1983 Alaska Oil & Gas Guns. Commi:;~ior~ AncMrage l~ebruary 10, 19~2 ~.'¥."'J. A. Rochon Disirict Engineer AF, OO Alaska, Inc. P. O. Eox 3C9 Anchora[~,e, Alaska 9951,0 Dear l~r. Roehon: We have received :/our letter of Feb,.vw. ar¥ 1, ],gB2 that the Cot,mission review the limitations placed on tlc flarin?,'. of }*,:a,~ for the test of the l, iabl~.rne ()il Pool tn the West [."aN' State }.,?,o, I t. vell that were set out ir~ our letter dated 1,281. Tb.e Cem:'~;ssio~ has revi,,t.~¢,,"~ tho Conditions of ,',,,,-reval of :~arc~' 1':~ 19~]! and has considered your z'ec~uost of F'ebm]ary' 1, 1982"with re~;ard to ~he same ~,.~'911. The Commission finds it in the best interest of the St~:,te an,:.~ a beneficial use of gas to for~.',;o its. physical co~servation durinf? the test in[...~ of subject ~,,,ell' in etd, er to evaluate the production characterist'ics of this questionable resource. Tt~e flaring of cas produced witt,, the oil[ from the Il'est gay State No. I well during a six month test of tl~e Liaburn,::,, Oil fool' is hereby approved with the f'ollowinff condition:;~: i The approval for the flaring of . ~;,,.,s as stated in the Commission's letter of [.{arch 18, 1981 is hereby rescinded. 2 The flaring!; of f:"as is pe'rn",ittcd when the c,8s ,,,,¢,; ....... ,., cannot b.e saved duo to the common line pressure restrictions. 3 A total voI'ame not . necessary, dl.ll'i,',:r t~.o SiX month test inff period 4, If the oil test is not conclusive after six m, ont}:s d~ration or if further teatinf..f will add si~.:nificant additional beneficial information, the Comr':insion will consider further requests. 5. P.-'."ontbly production forms (Fom_,n 10-4(15 and l?orm 10-422) mu~t be tin~ely submitted and tl~eso product ion data will he released to the public. 6. A monthly recap of the daily [roduction rates and the volumes of gas flared will be t',~ , ~,:.ely ~ut',mi t ted. '"?.. ~,~ithin 9e days after thc completion of the te~tin? operations, a report on the project will }~e submitted. ~"~ ~rcport should include all pressure data, choke nizes, produced volumea and ali other pertinent data. The Com~lission ~"sin wishes to conl);rat~latc ,M]CO A',·a~ka, Inc. for making the time, equip~ent and money available for the testin~.[ of this reservoir. V/e wish. you st,:cces~ irt yottr efforts and hope that, as a rosult of this work, we all t~,ill better understand the I.,isburne reaervcir. Yours very truly, .t.,:arry U. K'uUIer Commi s s i on~ r