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Home My WebLink AboutCO 198 BConservation 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. L~_~ _~ Conservation Order Category Identifier Organizing RESCA~t/ DIGITAL DATA OVERSIZED (Scannable with large plotter/scanner) ~" Color items: [] Diskettes, No. [] Maps: [] Grayscale items: [] Other, No/Type [] Other items [] Poor Quality Originals: OVERSIZED (Not suitable for [] Other: plotter/scanner, may work with 'log' scanner) [] Logs of various kinds [] Other NOTES: BY: TOTAL PAGES ~~ / Scanning Preparation Production Scanning Stage t PAGE COUNT FROM SCANNED DOCUMENT: pA~~T~iO PAGE COUNT MATCHES NUMBER IN SCANNING PRE N' X YES NO BY: Stage 2 IF NO IN STAGE 1, PAGE(S) DISCREPANCIES WERE FOUND: ~ YES ~ NO ROBIN MARIA DATE: ~ ~//--~ /S~~ (SCANNING 1S 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 JRIG!NAL STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 3001 Porcupine Drive Anchorage, Alaska 99501-3192 . Re: THE APPLICATION OF ARCO ALASKA INC. to change Conservation Order 198A Rule 4 regarding injection profile surveys. IT APPEARING THAT: I. ) Conservation Order No. 198B ) Kuparuk River Field ) Kuparuk River Unit ) Kuparuk River Oil Pool July 22, 1998 By letter dated May 11, 1998, ARCO Alaska, Inc. ("AAI") requested changes to Rule 4, Conservation Order 198A, to eliminate a specified number of injection surveys and change the reporting frequency from quarterly to annually. 2. The Commission requested clarification of the application on May 21, 1998. 3. The Commission published notice of opportunity for public hearing in the Anchorage Daily News on May 23, 1998. 4. AAI clarified and corrected its original request by letter dated May 28, 1998. 5. The Commission received no protest or a request for public hearing. FINDINGS: 1. Conservation Order 198, as amended, governs enhanced recovery operations in the Kupamk River oil pool. Conservation Order 198 was amended and reissued as Conservation Order 198A on September 8, 1995. 2. Rule 4, Conservation Order 198A states: "An injection profile survey will be obtained on each well with A and C sand injection within the first nine months of sustained multiple zone injection. One third of all multiple zone injectors will be surveyed each calendar year. The completed injection surveys will be filed with the Commission within 90 days after perfomfing the survey." 3. Injectivity profiles are required initially in wells that are completed in "A" and "C" sands. 4. Injectivity profiles are not likely to change unless well stimulation, perforating or squeeze shut-offs have been done in the well to alter the profile. 5. AAI is capable of determining the need for injectivity profiles in order to efficiently manage hydrocarbon recovery processes. 6. AAI has a proven track record of engaging in proper reservoir management practices in the Kuparuk River oil pool. 7. Enhance oil recovery processes and injectivity in the Kuparuk River oil pool are better understood today than when Rule 4 was originally established. 8. Changing the report frequency from quarterly to amaually will not reduce the quality of data available to manage the Kuparuk River oil pool enhanced recovery project. Conservation Order 198~b July 22, 1998 Page 2 CONCLUSION: 1. Injectivity profiles will still be run in wells having completions open to the "A" and "C" sands, both initially and 'as necessary duringthe productive life of the well. 2. An annual report of injectivity survey results will save time and effort required with more frequent reporting for both the operator and the Commission. 3. Interim data may be acquired from the operator if required prior to a report submission. 4. Amending Rule 4 to reduce the number of surveys and reporting frequency will not cause waste, jeopardize correlative rights or diminish ultimate recovery of hydrocarbon resources. 5. Reissuing C.O. 198 in its entirety as a result of amending Rule 4 will maintain continuity in the administrative record and reduce confusion concerning which orders and rules are effective. NOW, THEREFORE, IT IS ORDERED THAT Rule 4 is amended and Conservation Order 198A is reissued as Conservation Order 198B to maintain continuity of the original order. The findings, conclusions and administrative record for Conservation Orders 198 and 198A are adopted by reference and incorporated in this decision Rule 1. Well Spacing. (Ref. C.O. 198 and 198A) Within the area affected by this order, four wells may be drilled per governmental quarter section except for governmental quarter sections adjacent to the Kuparuk River Unit boundary where one well may be drilled per quarter section. The pool may not be opened to a well bore within 500 feet from the Kuparuk River Unit boundary nor closer that 1000 feet to the pool opened to the well bore in another well. (Source C.O. 198A) Rule 2. Administrative Action. (Ref. C.O. 198 and 198A) Upon its own motion or upon a written request, the Conunission may achmnistratively amend these rules to enhance the efficiency of EOR projects so long as the change does not promote waste nor jeopardize correlative rights and is based on sound engineering principles. (Source C.O. 198A) Rule 3. Kuparuk River Unit Reservoir Surveillance Program. (Ref. C.O. 198 and 198A) The Unit Operator will submit an annual report to the Commission on the Kuparuk River oil pool development and enhanced recovery operations. The report will be submitted by April 1 of each year for the period ending December 31 and will include but is not limited to the following information. (Source C.O. 198A) (a) Progress of enhanced recovery project(s) implememation and reservoir mmaagement summary including engineering and performance paranaeters. (b) Voidage balance by month of produced fluids, oil, water and gas, and injected fluids, gas, water, low molecular weight hydrocarbons, and any other injected substance which may be filed in lieu of monthly Forms 10-413 for each EOR project. (c) Analysis of reservoir pressure survey with the field. (d) Resuks and where appropriate, analysis of production logging surveys, injection surveys, tracer surveys mad observation well surveys. Conservation Order 19~.~ July 22, 1998 (c) (f) Results of MI surveillance efforts including a summary and analysis of returned MI, representative or periodic composition of MI and an estimate of MMP. Current and future LSEOR project scope, timetable and utilization of NGL for MI. (Paragraphs (a) through (f), Source C.O. 198A) Page 3 Rule 4. Injectivity Profiles. (Ref. C.O. 198, AA 198.4, 198A, and C.O. 198B) An injection profile survey will be obtained on each injection well with A and C sand injection within the first nine months of sustained multiple zone injection. The operator will obtain subsequent injection profile surveys when: a) required to efficiently manage hydrocarbon recovery processes or b) within nine months following stimulation or squeeze shut off done for profile modification. (Source C.O. 198A and 198B) All completed injection surveys taken during a calendar year will be filed with the Commission by April 1 of the subsequent year. Along with the survey submittal, the Operator will provide a proposed survey plan for the upcoming year. The Cormmssion may require additional surveys as deemed necessary. (Source C.O. 198B) Rule 5 Approval of Expansion of the KRU Miscible Gas Injection Project. (Ref. C.O. 198A) Expansion of the KRU Miscible Gas Injection Project is approved for the area of the Kuparuk River oil pool within the Kuparuk River Unit. (Source C.O. 198A) DONE at Anchorage, Alaska and dated July 22, 19~ -- Camill60echsli, Cormnissioner AS 31..05.080 provides that within 20 days after receipt of written notice of the entry of an order, a person affected by it may file with the Connnission an application for rehearing. A request for rehearing must be received by 4:30 PM on the 23rd day following the date of the order, or next working day ifa holiday or weekend, to be timely filed. The Commission shall grant or refuse the application in whole or in part within 10 days. The Commission can refuse an application by not acting on it within the 10-day period. An affected person has 30 days fi.om the date the Commission refuses the application or mails (or otherwise distributes) an order upon rehearing, both being the final order of the Cotmnission, t.o appeal the decision to Superior Court. Where a request fbr rehearing is denied by nonaction of the Commission, the 30 day period for appeal to Superior Court runs fi.om the date on which the request is deemed denied (i.e., 10th day after the application for rehearing was filed). TONY KNOWLES, GOVERNOR March 9, 2000 ALASKA OIL AND GAS CONSERVATION CO~IlSSION 3001 PORCUPINE DRIVE ANCHORAGE, ALASKA 99501-3192 PHONE: (907) 279-1433 FAX: (907) 276-7542 ADMINISTRATIVE APPROVAL NO. 198B-02 Re~ ARCO Alaska, Inc. Permit to Drill Application for the Kuparuk Unit I R-03A Injection Well - exemption to modify Rule 1, Conservation Order 198B. Bruce E. Smith, P.E. AAI Coil Tubing Drilling Supervisor ARCO Alaska, Inc. P. O. Box 100360 Anchorage, AK 99510-0360 Dear Mr. Smith: The Commission has completed its review of your February 23, 2000 Permit to Drill Application for the Kuparuk Unit 1R-03A injection well and supplemental information presented by ARCO Alaska, Inc. (AAI) representatives at a meeting with Commission representatives on March 2, 2000. Rule 1, Conservation Order 198B (CO 198B) specifies "The pool may not be opened to a well bore within 500 feet from the Kuparuk River Unit boundary nor closer than 1000 feet to the pool opened to the well bore in another well." Rule 2, CO 198B specifies that the Commission may administratively amend these rules to enhance the efficiency of EOR projects so long as the change does not promote waste nor jeopardize correlative rights and is based on sound engineering principles. Increasing water throughput in the compartmentalized Kuparuk reservoir by placing I lR-03A at AAi's proposed location will potentially accelerate recovery of reserves from existing and planned offset production wells. Placing the well outside of the I000 foot close approach limit to the existing 1R-04 injection well could jeopardize the well due to geologic considerations. Based on information presented and responses to questions during the March 2, 2000 meeting, AAI's proposed placement of the IR-03 A well bore is based on sound geoscience and engineering principles. The Commission concludes that granting exemption to Rule 1 of CO 198B for the 1.R-03A injection well will not promote waste nor jeopardize correlative rights. The Commission authorizes the drilling and completion of the Kuparuk Unit 1R-03A well. Robert N. Christenson, P.E. Cammy Oechsl Chair Commissioner aylor Daniel T. Seamount, Jr. Commissioner BY ORDER OF THE COMMISSION TONY KNOWLES, GOVERNOR ALASKA OIL AND GAS CONSERVATION COMMISSION ADMINISTRATIVE APPROVAL 198B-01 3001 PORCt~hNE DRI~'E ANCI IORAGE. ALASKA 99501-3192 PltONE: (907)279-1433 TELECOPY: (907)276-7542 Re: The application of ARCO Alaska. Inc. to modifi,' Rule 6. Conservation Order 198B. Janet Weiss Kupamk Reservoir Optimization Supervisor ARCO Alaska. Inc. P.O. Box 100360 Anchorage, AK 99510-0360 Dear Ms. Weiss: The Commission has completed its review of your March 24, 1999 application requesting that Rule 6, Consel~'ation Order 198B~ be modified to allow an increase in NGL import rate from 30,000 to 40,000 barrels per day (annual average) for use in the Kupamk River Unit (KRU) Large Scale Enhanced Oil Recovery. (LSEOR) project. The Commission published notice of an opportunity for public hearing on May 15, 1999. Because no protests or comments were filed, the Commission is issuing this decision without a hearing. Increasing the NGL import rate will allow the KRU to maximize the manufacture of MI. This will allow for better facility utilization and gas production management in the KRU, as well as the ability to expand the EOR processes to new MWAG wells and to accelerate EOR recovery. Under the proposal, the KRU will be able to increase MI production by approximately 35 - 40 MMCFD and to cease IWAG injection. The IWAG process, in its mature stage, now recycles between 70 and 80 percent of the daily lean gas injected, and constrains oil production in the KRU. Converting IWAG wells to MWAG wells was anticipated under the LSEOR project, and is expected to improve ultimate recovery from those drill sites by an additional 4 - 10 percent of OOIP. Importing the additional NGL volume from the Prudhoe Bay Unit will cause a loss of MI production of between 10 to 15 MMSCFD at Prudhoe. This loss, however, will be offset with the startup of the Miscible Gas Expansion (MIX) Project in 4th Quarter 1999, which should increase MI production by 80 - 100 MMSCFD over current rates. The Commission concludes that increasing the NGL import rate will prevent waste, protect correlative rights and improve ultimate recovery. The Commission approves your application and amends Rule 6, Conservation Order 198B, as follows: Rule 6. Importation of PBU NGL. The Commission approves, but does not require, importing up to 40,000 BPD (annual average) of PBU NGLs for use in the KRU Miscible Gas Injection Project. (Source C.O. 198A) l)ONF,,.ia,~nCho~e. Alaska this day August 11, Robert N. Christenson, P.E. David W."J~ston Chairman Commissioner BY ORDER OF THE COMMISSION ARCO Alaska, Inc. ir' Post Office Box 100360 Anchorage, Alaska 99510-0360 Telephone: (907) 276-1215 Janet Weiss Supervisor Kuparuk Reservoir Planning ATO 1228 Phone 263-4914 Fax 265-1158 July, 23, 1999 Mr. Jack Hartz State of Alaska Oil and Gas Conservation Commission 3001 Porcupine Drive Anchorage, Alaska Dear Mr. Hartz: RECEIVED JUL, £ t99° Alaska 0ii & Gas Cons. C0~tnissi0~l, Anchorage The following information is in response to questions submitted by the Oil and Gas Conservation Commission regarding the Arco Alaska Inc. application to increase export of NGLs from the Prudhoe Bay Unit to the Kuparuk River Unit. Question 1) What are the estimated benefits from the increase in MWAG resulting from the increased use of NGL for MI manufacture ? Benefits associated with increased MWAG include' Optimizing facility utilization for MI manufacture. The request to increase NGL imports at rates up to 40000 BPD will enable maximum manufacture of MI by utilizing the full gas compression and NGL pump capacities. Given sufficient NGLs, it will be possible to increase MI manufacture rates by approximately 35-40 MMSCFD. The lean gas used to make this MI will be available from former IWAG injection wells. It is anticipated that IWAG injection will cease with the exception of operational necessity. Increase flexibility in field reservoir management The immiscible water alternating gas (IWAG) secondary recovery process has been widely used in the Kuparuk field with the primary purposes of enhanced oil recovery (EOR) and for efficient gas storage in the absence of a gas cap. ARCO Alaska, Inc. is a Subsidiary of AtlanticRichfieldCompany Mr. Jack Hartz July 23, 1999 Page 2 of 5 IWAG EOR benefits from field performance are in the range of I to 4 % of OOIP with an average benefit of 2% OOIP. This has been documented in SPE technical paper # 28602. Gas storage benefits of IWAG range from storing essentially all of the gas injection volume at the start of the process to storing only 20-30% of gas injection volumes as the project area matures. In other words, in mature stages, the IWAG process recycles 70-80% of daily IWAG gas injected. This gas must be processed through Kuparuk facilities that have a fixed gas processing capacity. When field gas production rates exceed processing capacity, wells (and oil rate) are shut in to balance gas production rate with processing capacity. Therefore field gas production management is a significant aspect to maximizing the oil-producing rate from the field. The MWAG process offers an alternative to recycling injection gas in a mature IWAG process. From a gas storage/recycle perspective, it is more optimal to utilize MI at MWAG Drillsites where gas recycle rate is typically lower and the EOR rate benefits are higher that what could be expected at a maturing IWAG DS. The EOR recovery benefits of MWAG are expected to range from 4% to 10% of OOIP as stated in the LSEOR Project application. Accelerate EOR oil recovery. The ability to maximize manufacture of MI, by increasing the NGL import rate, not only allows for better facility utilization and gas production management, but also allows for the ability to expand the EOR process to new MWAG wells quicker and thus accelerate EOR oil recovery. The combined benefits of increased MWAG are estimated to be an acceleration of approximately 3000 BOPD to the Kuparuk LSEOR Project during the next 5 years. See question 3 for rate profile detail. Additional benefits are present when considering potential EOR expansion opportunities beyond the LSEOR Project Area. For example, expansion of the Project Area to remaining CPF-1 Drill-sites as well as selected Drill-sites at CPF-3 could increase the acceleration benefit to approximately 4000 BOPD during the next 8 years. Question 2) What are the impacts, if any, of ceasing IWAG on ultimate recovery. Were these impacts anticipated when the LSEOR project was permitted in 19957 There are no adverse impacts to ultimate recovery due to ceasing IWAG. The LSEOR Project was based on the conversion of IWAG drill sites to MWAG with the anticipated ultimate recovery benefits of an additional 4-10% of OOIP. Mr. Jack Hartz July 23, 1999 Page 3 of 5 Question 3) Can you provide data on the anticipated rate acceleration? How does it impact the production profile of the Kuparuk pool over time? A production profile would be appropriate to illustrate the effects. The following profiles illustrate the anticipated rate acceleration benefit due to increased MI manufacture and the requisite NGL import requirements. The benefit is defined by considering production forecasts with a base case of 30,000 BPD NGL import rate and a production forecast based on importing sufficient NGLs to maximize the manufacture of MI for MWAG recovery. Figure 1. shows the anticipated annual NGL import rate with increased NGL imports above 30,000 BPD over the near term but with no increase in total NGL volume required over the project life. Figure 2. shows the resultant accelerated oil rate benefit from the LSEOR Project Area to be approximately 3000 BOPD over the near term. These forecasts represent an anticipated NGL import rate and oil benefit. While the annual average NGL import rate does not peak at 40 MBD, additional consideration is given to full utilization of NGL pump capacity, the uncertainty range of forecasting field produced NGLs available to make MI, and EOR optimization flexibility. With this in mind, Arco Alaska Inc. has requested approval to import PBU NGLs at rates up to 40,000 BPD consistent with existing Owner agreements and subject to owner take-in kind limitations. Question 4) How is PBU MI supply impacted by increasing KRU NGL imports by 10,000 BPD? The testimony in 1995 suggested that KRU WlO's would supply NGL's to LSEOR project on an in-kind basis. There was no mention of potential impacts on MI supplies for the PBU. Can you explain these impacts more fully and does PBU plan to make up the shortfall later? Increasing the maximum allowable NGL import rate, from Prudhoe Bay to the Kuparuk LSEOR project, from 30MBPD to 40MBPD will increase the manufacture of NGL from the Prudhoe Bay Central Gas Facility by 3,500 to 4,000 BPD. Additionally, it will result in minor near term losses in MI production of 10 to 15 MMSCFD at Prudhoe. However, with the start up of the Miscible Injection Expansion project (MIX) by 4Q 99, MI supply to the Prudhoe Bay Miscible Gas Project will increase 80 to 100 MMSCFD over current production rates. NGL rate increases at Prudhoe are a direct result of diverting increased volumes of Prudhoe NGL to Kuparuk LSEOR. Diversion of Prudhoe NGL volumes from TAPS lowers crude oil volatility below delivery limits. This allows Prudhoe to manufacture additional NGL volumes. NGL rates are increased such that the blended Prudhoe Separator Liquids and NGL stream to TAPS meets oil volatility limits once again. Consequently as backfill vOlumes of NGL increase, MI supply rate at Prudhoe will decrease. Operations at the CGF are adjusted in such a manner as to divert components, which would have ended Mr. Jack Hartz July 23, 1999 Page 4 of 5 up in the MI stream, into the NGL stream. Thereby, increasing NGL rates and lowering MI rates. During the 1995 testimony, it was the intention of the owners with interests in both Prudhoe Bay NGLs and Kuparuk River Unit LSEOR Project to take their respective NGL volume manufactured at Prudhoe Bay in-kind and deliver it to Kuparuk to supply their solvent supply obligation for the Kuparuk LSEOR project. This is what has been done since startup of the KRU LSEOR project, and what is still currently practiced. What was not envisioned during the time of the 1995 testimony was the ability to increase Prudhoe NGL rates to TAPS to fill the vapor pressure void created from the diversion of Prudhoe NGLs to Kuparuk, a practice known as backfilling. At the time of the 1995 testimony, agreements in place at Prudhoe Bay did not allow for increase in NGL volumes due to backfill. Consequently, no reductions in Prudhoe MI supply were anticipated since there was no expected increase in the total manufacture of Prudhoe NGLs. Question 5) Have the PBU owners agreed to increasing export NGL to KRU? Is there a ballot or agreement document? On September 1, 1996, the Prudhoe Bay Unit Owners signed a ballot to allow for manufacture of backfill NGL volumes at Prudhoe. Backfill volumes resulting from the diversion of up to 40 MBPD from Prudhoe Bay to the Kuparuk LSEOR project are accounted for under this established agreement. It is the intention of the PBU Owners to blend NGL volumes to the maximum extent allowed by TAPS vapor pressure limits as mandated by the amendments to Conservation Order 360. Question 6) What effect will this have on the high-pressure areas (high pressure fault blocks) within the field? What are the drilling operations doing to safely drill into the high-pressure areas? The increased MI manufacture and use of 35-40 MMSCF/D will have no adverse impacts on high-pressure areas within the field. This is mainly because the areas anticipated to receive this MI are not within the current high-pressure areas. Reservoir pressure is a function of both offtake and injection. Management of water injection and MI injection are the primary controls for managing reservoir pressure. To manage reservoir pressure effects of this additional MI, total fluid injection rates will be managed to achieve target reservoir pressures such that increased MI rates will be offset, as needed, by an equivalent reduction in water injection rates. When drilling is scheduled in high-pressure areas, a pressure reduction strategy is implemented prior to drilling commencement. The strategy is to reduce reservoir pressure, by decreasing injection over time. The resultant Mr. Jack Hartz July 23, 1999 Page 5 of 5 reservoir pressure reduction is intended to allow the Kuparuk reservoir interval to be penetrated without first having to set intermediate casing above the Kuparuk and then increase drilling mud weight for pressure control through the Kuparuk. If the pressure reduction strategy is successful, well costs are lowered and the potential for oil productivity impairment is reduced. During drilling operations and prior to penetrating the Kuparuk reservoir with a particular hole section, an open hole formation integrity test (FIT) is performed to ensure the exposed hole section will be capable of withstanding the mud weights required to safely penetrate the sands. If the FIT indicates the exposed formation will be unable to safely contain the required mud weight an intermediate casing string will be run and cemented top setting the Kuparuk reservoir. The Kuparuk sands will then be drilled to TD with the required mud weight and a liner will be run and cemented. The well will then be completed for service. If you require additional information, please contact me at (907) 263-4914 Sincerel~ (~~ , Kuparuk Reservoir Planning Supervisor Figure 1. 40000 Kuparuk Sanctioned EOR PBU NGL Import Project NGL Import limited to 30 MBD NGL Import Maximize MI __ 35000 Q. 30000 250OO 2OOOO (.9 1 5OOO Z m 10000 50OO 0 1 998 2002 2006 2010 2014 201 8 2022 2026 Figure 2 5OOO Kuparuk Sanctioned EOR Project Incremental Oil Benefit at NGL Imports > 30 MBD 4OOO 3OOO 2OOO IOO0 -1000 -2000 -3000 -4000 1998 2002 I 2OO6 I 2010 I 2014 I 2018 I 2022 2O26 Ad # Run Dates ED Affidavit of Publication Po # Price per Account day 69008 05/1 5/99 DN 0291 4026 $77.50 STOF0330 STOF0330 $77.50 STATE OF ALASKA THIRD JUDICIAL DISTRICT Eva Kaufmann, being first duly sworn on oath deposes and says that she is an advertiSing rePresentative of the Anchorage Daily News, a daily newspaper. That said newspaper has been approved by the Third Judicial Court, Anchorage, Alaska, and it now and has been published in the English language continually as a daily newspaper in Anchorage, Alaska, and it is now and during all said time was printed in an office maintained at the aforesaid place of publication of said newspaper. That the annexed is a copy of an advertisement as it was published in regular issues (and not in supplemental form) of said newspaper on the above dates and that such newspaper was regularly distributed to its subscribers during all of said period. That the full amount of the fee charged for the foregoing publication is not in excess of the rate charged private individuals. Legal Clerk~~ Subscribed and sworn to me~l:ore this date: ..... Notary Public in and for the State of Alaska ...... Third Division. Anchorage, Alaska MY COMMISSION EXPIRES: I . · Notice of I: Public Hearing ~. STATE OF. ALASKA !1 Alaska Oil and Gas ill. ,Conservatian 'Commission ', R.e: .Kuparuk River Oil i' Poo ' ~ 'ARCO: AloSk°', Inc'. by i opplicotio'n, received March .26, 1979; requested ' on dmendment't0 Rule 6, Con- servotion Order.. 196B to :increas'e the maximum [ol owoble?PBU NGL import rote 'to '40'¢000 .barrels per , d~Y :for.. "the purpose'. Of. ', incr. easing...1 'miscible .. !' i n~l.~.'~i~,i~?F,.~ ~f e.,':'.,. ~',i n."-'f?i e' KUporuk River Oil Pool. ,): A .pe~son"'who moy. be' 'hOrmed '"ff: ::~he .requested order, is isS.ued moy. file a · w?,t-.-m'~fe.~,* .~-i.~- ~0 4:00 c.,. '."a, .i' '"q'; .'. th, the · '..=~k= C t~.'c ',.~.'.', :.ohser'-. -'.=-cu~,"e ~°;..:'. ..-¥Chor. :.~.c,., ,.,".:~.~ ~': ."' and r~c.....,.~- '~ ,,,,:"-r" [' ;'1 this ' mat?er. If' :tne .pro~est .is ~f. Jrl~l~JI ~j ~l. and raises'a substantial .and'. material · :s'J'el, m, ucial?f6 'tl~e commis- on'.s 'deter. roi.nation, a :aring On the/matter, will :,' held. 'a.t :.:.,the ',: above idress at 9:00' A~on June 5,' 19~9; i.n ;.conformance ~l'th 20 AAC 25!540; If no' pi'creSt '~is. filed~, fhe 'Com- mission: will ..consider the, i{suance .of the' order with- outCt;.he~r.i.~g..' , ,,:: ,. , ',' If you ore a PersonWith a disability who may need a !sPeCial modifi~:ation in order to comment Or to attend the public hearing, r~leose contact Diana' Fleck at 793-1221.'before' June 8, 1999. '. 'S'~\;id ':.' .; 3~ r (.; ,'- ...... ~ ,,,~ .:; - ;; · Pub,': May 15, ]999 DRI / MCGRAW HILL ~A_LL NOTTINGH3LM 24 HA_RTWELL LEXINGTON MA 02173 PIRA ENERGY GROUP LIBRARY 3 PARK AVENUE (34TH & PARK) NEW YORK NY 10016 OVERSEAS SHIPHOLDING GRP ECON DEPT 1114 AV OF THE AMERICAS NEW YORK NY 10036 NY PUBLIC LIBRARY DIVE GR/LN'D CENTP~kL STATION P O BOX 2221 NEW YORK NY 10163-2221 ALASY~A OFC OF THE GOVERNOR JOHN KATZ STE 518 444 N CAPITOL NW WASHINGTON DC 20001 OIL DAILY CAMP WALSH 1401 NEW YORK AV NW STE 500 WASHINGTON DC 20005 ARENT FOX KINTNER PLOTKIN KAR/~ LIBRARY WASHINGTON SQ BLDG 1050 CONNECTICUT AV NW WASHINGTON DC 20036-5339 US MIN MGMT SERV CHIEF OCS STATS & INFO 381 ELDEN ST MS 4022 HERNDON VA 20170-4817 LIBR3LRY OF CONGRESS STATE DOCUMENT SECTION EXCH & GIFT DIV 10 FIRST ST SE WASHINGTON DC 20540 U S DEPT OF ENERGY PHYLLIS MARTIN MS EI823 1000 INDEPENDENCE SW WASHINGTON DC 20585 TECHSYS CORP BR3LNDY KERNS PO BOX 8485 GATHERSBURG MD 20898 US GEOL SURV LIBR3LRY NATIONAL CTR MS 950 RESTON VA 22092 DPC DANIEL DONKEL 1420 NORTH ATLANTIC AVE, STE 204 DAYTON BEACH FL 32118 SD DEPT OF ENV & NATRL RESOURCES OIL & GAS PROGRAM 2050 W MAIN STE #1 RAPID CITY SD 57702 AMOCO CORP 2002A LIBR3~RY/INFO CTR P O BOX 87703 CHICAGO IL 60680-0703 ILLINOIS STATE GEOL SURV LIBRARY 469 NATURAL RESOURCES BLDG 615 E PEABODY DR CHAMPAIGN IL 61820 LINDA F. 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EOR operations include enhanced recovery waterflood, immiscible water alternating gas (IWAG) and miscible water alternating gas (MWAG) projects in the Kuparuk River Oil Pool (KROP). Conservation Order 198A approved expansion of the KRU Miscible Gas Injection Project to include 18 new drillsites covering 59000 acres as the Large Scale EOR Project (LSEOR). The LSEOR plan of development anticipates importing 100 million barrels of PBU NGLs for MI manufacture in the LSEOR project area. Incremental EOR oil recovery within the project area is estimated to be 200 MMBO. This conservation order also approves but does not require, importing up to 30,000 BPD of PBU NGLs for use in the KRU Miscible Gas Injection Project. The KRU facilities presently produce an annual average of 270 MMSCF/D of MI for miscible WAG injection (MWAG) and 30 MMSCF/D for immiscible WAG injection (IWAG). NGLs to manufacture MI come from KRU indigenous NGLs and the current PBU NGL import rate of 30,000 BPD. Given the incremental oil rate and recovery associated with the miscible WAG process, it is desirable to maximize MI production for MWAG injection. Currently MI production rate is limited by NGL pump capacity and NGL availability. The KRU has the opportunity to increase the PBU NGL import rate based on a planned increase in NGL pump capacity (+12,000 BPD) in mid March. Given sufficient NGLs, it will be possible to increase MI production by approximately 35 - 40 MMCFD and to cease IWAG iniection. ARCO Alaska, Inc. is a Subsidiary of AtlanticRichfieldCompany' Chairman Christ~,..sen March 24, 1999 Page 2 of 2 To capitalize on this LSEOR Project enhancement opportunity, Arco Alaska, Inc., requests approval to increase the maximum allowable PBU NGL import rate to 40,000 BPD. Specifically, Arco requests that Rule 6. Of Conservation Orders 198A and 198B be amended to provide as follows: Rule 6. Importation of PBU NGL The Commission approves, but does not require, importing up to 40,000 BPD of PBU NGLs for use in the KRU Miscible Gas Injection Project. This request is made pursuant to Rule 2 of Conservation Order 198A and 198B. KRU benefits include increased MI injection rate of 35-40 MMSCFD, acceleration of EOR oil rate, and increased flexibility in field reservoir management. The expected total PBU NGL volume requirement and incremental EOR oil recovery for the LSEOR Project remain at 100 MMB NGL and 200 MMB Oil respectively. Increasing the maximum allowable NGL import rate, from Prudhoe Bay to the Kuparuk LSEOR project, from 30 MBPD to 40 MBPD will increase the manufacture of NGLs from the Prudhoe Bay Central Gas Facility by up to 4,000 BPD and result in minor near term losses in MI production of 10 to 15 MMSCFD at Prudhoe. However, with the start up of the Miscible Injection Expansion project (MIX) by 4Q 99, MI supply to the Prudhoe Bay Miscible Gas Project will increase 80 to 100 MMSCFD over current'production rates. If you require additional information, please contact me at (907) 263- 4914. Sincerely, Janet Weiss Kuparuk Reservoir Optimization Supervisor JW/cjf Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: Kuparuk River Oil Pool ARCO Alaska, Inc. by application received March 26, 1999, requested an amendment to Rule 6, Conservation Order 198B to increase the maximum allowable PBU NGL import rate to 40,000 barrels per day for the purpose of increasing miscible gas injection rate in the Kuparuk River Oil Pool. A person who may be harmed if the requested order is issued may file a written protest prior to 4:00 PM May 31,1999 with the Alaska Oil and Gas Conservation Commission, 3001 Porcupine Drive, Anchorage, Alaska 99501 and request a hearing on the matter. If the protest is timely filed and raises a substantial and material issue crucial to the Commission's determination, a hearing on the matter will be held at the above address at 9:00 AM on June 15, 1999 in conformance with 20 AAC 25.540. If a hearing is to be held, interested parties may confirm this by calling the Commission's office, (907) 279-1433 at~er May 31, 1999. If no protest is filed, the Commission will consider the issuance of the order without a hearing. If you are a person with a disability who may need a special modification in order to comment or to attend the public hearing, please contact Diana Fleck at 279-1433 no later than June 8, 1999. Commissioner ~ Published May 15, 1999 ADN AO 02914026 ARCO Alaska, In{' Post Offic~ ~ox 100360 Anchorage, Alaska 99510-0360 Ken Donajkowski Beluga Asset Manager NSK-45 659-7652 FAX: 659-7861 May 28, 1998 David W. Johnston Chairman Alaska Oil and Gas Conservation Commission 3001 Porcupine Drive Anchorage, AK 99501-3192 coM COMM ,~/~~ COMM ~'~ RES ENG ~ SE ENG ~ NRO ~ . IGE~ASSY./ STAT ~. ~,TECH Per my correspondence with Jack Hartz of May 27, the following is submitted as a correction to my recent submittal requesting changes to Conservation Orders No. 198, and No. 173. In item number 2 of the submittal reference was made to CO 173 Rule 8 (a through f). The submittal should be corrected to read: The proposed change to CO 173 Rule 8 (b) "Pressure Surveys" would eliminate the requirement for a specific number of pressure surveys: "The Operator will obtain bottom-hole pressure surveys when the Operator's technical staff determines that surveillance is needed for efficient management of the ongoing hydrocarbon recovery processes." The proposed change to CO 173 Rule 8 (d) would make the report submittal annual rather than quarterly. The first sentence of 8 (b) would be replaced with: "Data from the surveys required in this rule shall be filed with the AOGCC by April 1st of the subsequent year in which the surveys are conducted. Along with the survey submittal, the Operator will also provide a proposed survey plan, which is subject to change based on operating requirements, for the upcoming year. The AOGCC may request additional pressure surveys as deemed necessary." The remainder of 8 (d) would remain unchanged. Please contact me if there are any questions concerning this change. K6rl~Snaj~ski -X Kuparuk HSET Man~a,~er/Beluga Asset Manager ARCO Alaska, Inc. Is a Subsidiary of AtlantlcRIchfleldCompany Author: Jack Hartz at DOA-AOGCC Date: 5/27/98 4:27 PM Priority: Normal Receipt Requested TO: KDONAJK@mail.aai.arco.com at CC2MHS1 Subject: Rule Proposal Correction & Publ Hearing Notice Ken, i got your message regarding the correction. A short letter with the same information as the email will suffice for the record. You don't have to go into any lengthy explanation. i had to notice the application because all the requested changes cannot be done by administrative action. I have attached a copy of the notice with the protest period closing date and tentative hearing date ( should there be a substantial protest). Usually, the commission does not call a hearing if there are no protests and/or if a protest is not substantial or relevant. Jack Hartz Alaska Oil & Gas Conservation Commission Main Switchboard 907-279-1433 X 232 Direct Line 907-793-1232 Fax 907-276-7542 email jack_hartz@admin.state.ak.us Author: KDONAJK@mail.aai.arco.com {Ken L Donajkowski) an CC2N~S! Date: 5/27/98 3:52 PH Prioriny: Normal ~0: Jack Hartz at DOA-AOGCC Subject: Rule Proposal Correction Jack, per my phone message I just left, here is how the proposal should have read: The proposed change no CO 173 Rule 8 (b) would eliminate the requirement for a specific number of pressure surveys., and make nhe report submittal annual rather than quarterly: "The Operator will obtain bottom-hole pressure surveys when the Operator?s technical staff determines that surveillance is needed for efficient management of the ongoing hydrocarbon recovery processes." The proposed change to CO 173 Rule 8 (d) would make the report submittal annual rather than quarterly: "Data from the surveys required in this rule shall be filed with the AOGCC by April ist of the subsequent year in which the surveys are conducted. Along with the survey submittal, the Operator will also provide a proposed survey plan, which is subject to change based on operating requirements, for the upcoming year. The AOGCC may request additional pressure surveys as deemed necessary." My apologies for the confusion!! ......................... Original message header: >MAIL FROH:<KDONAJK@mail.aai.arco.com> >RCPT TO:<jack_hartz@aclmin.state.ak.us> >DATA >Received: from popl.state.ak.us ([146.63.242.13]) by jnumaill.state.ak.us (Nets cape Messaging Server 3.5) with ESMTP id AAA4806 for <Jack_Hartz@admin.state.ak .us>; Wed, 27 May 1998 15:55:31 -0800 >Received: from inetgl.Arco. COH ([130.201.119.253]) by popl.state.ak.us (Post.Of fice HTA v3.1.2 release (PO205-101c) ID# 0-44072U100L100S0) with ESHTP id AAAgl for <Jack_Hartzeadmin.state.ak.us>; Wed, 27 Hay 1998 15:54:54 -0800 >Received: from mail.aai.arco.com ([136.226.206.36]) by inetgl.Arco. COM (8.8.5/8 .8.5) with SHTP id SAA04211 for <Jack_Hartz@admin.state.ak.us>; Wed, 27 Hay 1998 18:55:26 -0500 (CDT) >Received: by mail.aai.arco.com(Lotus SHTP HTA SHTP MTA vl.l.04 (495.1 10-24-19 97)) id 89256611.0082D2AD ; Wed, 27 May 1998 15:48:56 -0800 >X-Lotus-FromDomain: ARCO >From: "Ken L Donajkowski"<KDONAJKemail.aai.arco.com> >To: Jack_Hartzeadmin.state.ak.us >Message-ID:<8A256612.00046041.00@mail.aai.arco.com> >Date: Wed, 27 May 1998 15:52:44 -0900 >Subject: Rule Proposal Correction >Mime-Version: 1.0 >Content-type: text/plain; charset=US-ASCII ......................... End of message header. Aunhor: Jack Hartz an DOA-AOGCC Dane: 5/21/98 8:12 AM Priori%y: Normal 20: RDONAJK@mai!.aai.arco.com (Ken L Donajkowski) at CC2~vzHS1 Subject: Re: Rule Proposal Ken, ?he proposal is circulating for comment. I'll be working nh@ changes 2f there are no objections amongst staff. /ack Hartz Reply Separator Subjec%: Rule Proposal Author: KDONAJK@mail.aai.arco.com (Ken L Donajkowski) at CC2MHSi Date: 5/20/98 10:23 PM Jack, have you seen the formal submittal yet? Ken ......................... Original message header: >MAIL FROM:<KDONAJK@mail.aai.arco.com> >RCPT TO:<jack_hartz@admin.state.ak.us> >DATA Author: Jack Hartz at DOA-AOGCC Date: 5/21/98 1:16 PM Priority: Normal - Receipt Requested TO: KDONAJK@maii.aai.arco.com (Ken L Donajkowski) at CC2MHS! Subject: Re: Rule Proposal (2nd Response) Ken, On closer reading the proposal dated May i1 requests changes to Rule 8(a)- (f) of CO 173. That is a bit different than the draft you gave me in April where you requested changes ~o 8(b) and 8(d) . Could you clarify whether you are requesting changes to paragraphs b and d only? Thanks Jack Hartz Reply Separator Subject: Rule Proposal Author: KDONAJK@mail.aai.arco.com (Ken L Donajkowski) at CC2MHS1 Date: 5/20/98 10:23 PM Jack, have you seen the formal submittal yet? Ken ......................... Original message header: >MAIL FROM:<KDONAJK@mail.aai.arco.com> >RCPT TO:<jack_hartz@admin.state.ak.us> >DATA >Received: from popl.state.ak.us ([146.63.242.13]) by jnumaill.state.ak.us (Nets cape Messaging Server 3.5) with ESMTP id AAA4F92 for <Jack_Hartz@admin.state.ak .us>; Wed, 20 May 1998 22:25:28 -0800 >Received: from inetgl.Arco. COM ([130.201.119.253]) by popt.state.ak.us (Post. Of fice MTA v3.1.2 release (P0205-101c) ID~ 0-44072U100L100S0) with ESMTP id AAA96 for <Jack_Hartz@admin.state.ak.us>; Wed, 20 May 1998 22:24:56 -0800 >Received: from mail.aai.arco.com ([136.226.206.36]) by inetgl.Arco. COM (8.8 .5/8.8.5) with SMTP id BAA17158 for <Jack_Hartz@admin.state.ak.us>; Thu, 21 May 1998 01:25:24 -0500 (CDT) >Received: by mail.aai.arco.com(Lotus SMTP MTA SMTP MTA vl.l.04 (495.1 10-24-19 97)) id 8925660B.0022B488 ; Wed, 20 May 1998 22:19:04 -0800 >X-Lotus-FromDomain: ARCO >From: "Ken L Donajkowski"<KDONAJK@mail.aai.arco.com> >To: Jack_Hartz@admin.state.ak.us >Message-ID:<8A25660B.0028777E.00@mail.aai.arco.com> >Date: Wed, 20 May 1998 22:23:01 -0900 >Subject: Rule Proposal >Mime-Version: 1.0 >Content-type: text/plain; charset=US-ASCII ......................... End of message header. ARCO Alaska, Inc. i' Post Office Bo~.[ ,00360 Anchorage Alaska 99510-0360 Telephone 907 276 1215 ORIGINAL Mr. Dave Johnston, Commissioner Alaska Oil and Gas Conservation Commission ~ ~ C [~V E D 3001 Porcupine Drive · · Anchorage, Alaska 99501 May 11, 1998 Mr. Johnston; Alask-~ 0il & Gas Cons. Commission Anchorage ARCO Alaska, Inc., like others in industry, as well as governmental agencies, is aggressively looking for appropriate ways to streamline processes, and ensure our efforts are focused on the most leveraging activities. Therefore, we are proposing for your consideration, changes to certain reporting requirements of AOGCC Conservation Orders No. 198, and No. 173. We believe our track record demonstrates a commitment to prudent reservoir management. The following changes would save AAI unnecessary administrative and data gathering costs and still, in our view, provide meaningful data to the State of Alaska. . The proposed change to CO 198 Rule 4 "Injectivity ProfileS" would eliminate the requirement for a specific number of injection surveys, and make the report submittal annual rather than quarterly: "An injection profile survey will be obtained on each Well with A and C sand injection within the first nine months of sustained multiple zone injection. The Operator will obtain subsequent injection profile surveys when: a) the Operator's technical staff determines that additional surveillance is needed for efficient management of the ongoing hydrocarbon recovery processes or b) within nine months following any stimulation or squeeze shut-off that has been done to alter the injection profile. All completed injection surveys taken during a calendar year will be filed with the AOGCC by April 1st of the subsequent year. Along with the survey submittal, the Operator will also provide a proposed survey plan, which is subject to change based on operating requirements, for the upcoming year. The Commission may request additional surveys as deemed necessary." . The proposed change to CO 173 .Rule 8 (a through f) "Pressure Surveys" would eliminate the requirement for a specific number of pressure surveys, and make the report submittal annual rather than quarterly: "The Operator will obtain bottom-hole pressure surveys when the Operator's technical staff determines that surveillance is needed for efficient management of the ongoing hydrocarbon recovery processes. Data from such surveys shall be filed with the AOGCC by April 1st of the subsequent year in which the surveys ARCO Alaska, Inc. is a Subsidiary of Atlantic Richfield Company AFISB-6003-C are conducted. Along with the survey submittal, the Operator will also provide a proposed survey plan, which is subject to change based on operating requirements, for the upcoming year. The AOGCC may request additional pressure surveys as deemed necessary." o The proposed change to CO 173 Rule 9 paragraph (c) "Productivity Profiles" would change the report submittal requirement to annually: "All completed production surveys taken during a calendar year will be filed with the AOGCC by April 1st of the subsequent year. At any time the AOGCC may request a specific set of data to be provided in advance of the annual submittal" AAI as a prudent operator will gather and report the appropriate amount of production, injection, and pressure data to effectively manage the reservoir. Our hope is that reporting this information to the AOGCC on an annual basis will still effectively address the State of Alaska's needs. BK~ ~u?a~k~r~ ~$I~ff Manag er Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re~ The application of ARCO Alaska, Inc., to change the requirements of Rules 8 (a- f) of Conservation Order 173 (Rule 8 (a)-(f) repealed and reenacted by Conservation Order 230, Rule 8(b) amended by Conservation Order 276); Rule 9 (c) of Conservation Order 173, and Rule 4 of Conservation Order 198. ARCO Alaska, Inc., by application received May 13, 1998, petitioned the AOGCC to change the number of bottom-hole pressure surveys and reduce reporting frequency of Rule 8 CO 173; change the frequency of reporting productivity surveys in Rule 9 (c) CO 173; and change the number of injectivity surveys and reporting frequency of Rule 4 CO 198. A person who may be harmed if the requested order is issued may file a written protest prior to 4:00 PM June 8, 1998, with the Alaska Oil and Gas Conservation Commission, 3001 Porcupine Drive, Anchorage, Alaska 99501, and request a hearing on the matter. If the protest is timely filed and raises a substantial and material issue crucial to the Commission's determination, a hearing on the matter will be held at the above address at 9:00 AM on June 23, 1998, in conformance with 20 AAC 25.540. If a hearing is to be held, interested parties may confirm this by calling' the Commission's office, (907) 279-1433 after June 8, 1998. If no protest is filed, the Commission will consider the issuance of the order without a hearing. If you are a person with a disabilitY who may need a special modification in order to comment or to attend the public hearing, please contact Diana Fleck at 279-1433 no later than June 17, 1998. Robert N. Christenson, P.E. Commissioner Published May 23, 1998 ADN AO 02814051 ORIGINAL #9962 STOF0330 A0-02814051 $78.39 AFFiDAViT OF PUBLICATION STATE OF ALASKA, ) THIRD JUDICIAL DISTRICT. ) Eva M. Kaufmann being first duly sworn on oath deposes and says that he/she is an advertising representative of the Anchorage Daily News, a daily newspaper. That said newspaper has been approved by the Third Judicial Court, Anchorage, Alaska, and it now and has been published in the English language continually as a daily newspaper in Anchorage, Alaska, and it is now and during all said time was printed in an office maintained at the aforesaid place of publication of said newspaper. That the annexed is a copy of an advertisement as it was published in regular issues (and not in supplemental form) of said newspaper on May 23, 1998 and that such newspaper was regularly distributed to its subscribers during all of said period. That the full amount of the fee charged for the foregoing publication is not in excess of the rate charged private individuals. Subscribed and sworn/~t~re Notal~ Public In and for the State of Alaska. Third Division. Anchorage, Alaska MY COMMISSION EXPIRES ........ .......... Notice of Public Hearing ,STATE OF ALASKA Alaska Oil and Gas ' conservation Commission Re: The application of ARCO Alaska, Inc., to change the requirements of Rules 8 .(a-f) of Conservation Order 173 Rule ,,8, (a)-(,iJ ,re, lad ant ' ~nacted"b¥,'Cbn~atiOn ' 3rder 230, Rule e{b) omende( by' Consa'rvqtlon Order 276)~; Rul6 9 'i{c)Oft he Conservatl0~ Order !73i' and .Rule 4 of con. Jservation Order 198. ' ' ,",, J ARCO Alaska, Inc., by apPli- Icatio.n'~received May 13, 1998; Ipetitioned *the AOGCC to · Jchange th~ number of bottom,' Ihole preSsure sUrveys and Ireduce, reporting ' frequency of ,Rule~'~8~' CO 173; ct~ange thel ' Ifrequet~Y' of reporting produc: J Jti~vlt¥ ~brveys in R~.le.9(c) coJ 1.173; and Change th~":number of J linlec'tigitY surveys and report, I J ng~,'frec~uehcy, o~,~' Rule 4 .'COJ .'.,1198:..'..,.'.' ,.i,., .'.'.'~i!,~.. i:....', '"J" "~;.~j3~f~6n :Wh0 ma.v, be',h'arrfl:l · lo8 7'If" the rei~uested order IsJ · '~su~d~ maY' file a wrlften testl'.prlor to 4:00.1PM June 8, J l~98.'.w]th the Alaska .011. andJ 'Gbs Conservation. :Commlssion,I 3001"PorCupine" Dr ye,'. Anchor. J age, Alaska 99501,' and request/ a hearing on the matter. If theJ protest Is timely .fled ahd/ tat*es a substantial 6nd... :- J ~ate'rial' ·issue c'rucidl., to: thel Co'mmls~loner's '~ .-de. termino-' Yl'~n;" cJ"-hea~lng ~p"'th'~ matter. ~vlll be held at the.c~bove =dd.ress.af 9...,00~'~./~. 6.~ June 22~~ I~98, in., .¢oBtormance. with. AAC 25.540.' .If a'hearlng"b th' he held, Interestecl. parties! may .confirm. ·this by calling th'e 'C0J~/tllss'lon"s-'office, (907): 279-1433. after June 18, 1998. If no protest is filed, the mlsslon Will consider tl~e' issu- once of the order Wthout a hearing. If you are ~ person with al disability .who may need a special, modification In orderl to 'comment or to atten~ the: public hearing, plebse contact! Drano Fleck at 279-1433' no later *hah June 17, 1998. /~/Robert N. Christenson J P,E., Commissioner I AO 02814051 j Pub.: May 23, 1998 I Author: Jack Hartz at DO~ _~OGCC Date: 4/15/98 2:49 PM Priority: Normal Receipt Requested TO: KDONAJKOWSKI@mail.aai.arco.com at CC2MHS1 Subject: Feedback on Rule Changes to CO 173, CO 198 Ken, The proposal in general is reasonable for our purposes. The reasoning is defendable, that is , operators have been moving in the direction of less frequent reporting while still still honoring the commitment to inform the AOGCC regularly. 1. CO 198 Rule 4 - The requirement to resurvey an unspecified number wells is the operators perogative. The operator is best equipped to predict the number of surveys required from a reservoir management perspective. In the past the Commission has given up the specific number of surveys in exchange for filing a plan as part of a surveillance report and allowing the Commission an opportunity to review it and comment if appropriate. The filing deadline of January 31 may be ambitious given yearend activity. Most surveillance reports filed with the AOGCC are required by April 1. Of course they can be filed earlier than the deadline. 2. Rule 8 paragraph (b) - This rule is from CO 173 originally. Rule 8 has been repealed and reenacted by CO 230 Rule 8 (a through f). CO 230 Rule 8 (b) was subsequently ammended by CO 276 Rule 2 which reads: "One bottom-hole pressure survey on a well from each drillsite shall be performed annually. The commission amy require additional surveys as deemed necessary." The same comments In 1. above apply as to reducing the specific number of surveys required on an annual basis. 3. Rule 8 (d) - The rule has the same history as 2. a~ove. Submitting results from surveys annually is a reasonable request. 4. Rule 9(c) - This rule is also from CO 173. Submission of production survey results annually is a reasonable request. If for some reason the Commission needed a set of data before the end of a year could we request a set? To me this makes the annual submission reasonable if on an exceptional basis an intermediate data set can be obtained. As you can see, several of the rules and paragraphs have been ammended by subsequent rules in later CO's. It can be confusing and helps justify the argument for consolidating the effective pool rules into one set of rules. Call if you have any questions regarding my comments. Jack Hartz Alaska Oil & Gas Conservation Commission Main Switchboard 907-279-1433 X 232 Direct Line 907-793-1232 Fax 907-276-7542 email jack hartz@admin.state.ak.us