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Home My WebLink AboutCO 341Conservation Order Cover Purge 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_~ 1/_ 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: (ROBI~) MARIA Scanning Preparation TOTAL PAGES Production Scanning Stage 1 PAGE COUNT FROM SCANNED DOCUMENT: ..'7(~ PAGE COUNT MATCHES NUMBER IN SCANNING PREPARATION: ~ YES ~ NO Stage 2 IF NO IN STAGE 1, PAGE(S) DISCREPANCIES WERE FOUND: ~ YES NO (SCANNING IS COMPLETE AT THIS POINT UNLESS SPECIAL ATrENTION 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 • • INDEX CONSERVATION ORDER NO. 341 1.) August 22, 1986 BP Exploration Alaska, Inc. and ARCO Alaska, Inc. requests For Waiver of GOR Limitation 2.) October 11, 1994 Notice of Public Hearing, Affidavit of Publication October 19, 1994 Conservation Order No. 341 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 3001 Porcupine Drive Anchorage Alaska 99501-3192 Re~ CONSOLIDATION OF ORDERS ) PERTAINING TO THE PRUDHOE ) BAY FIELD, PRUDHOE OIL POOL ) Conservation Order No. 341 Prudhoe Bay Field Prudhoe Oil Pool November 2, 1994 IT APPEARING THAT: By letter dated September 22, 1993, to BP Exploration (Alaska) Inc. and ARCO Alaska Inc., the Alaska Oil and Gas Conservation Commission proposed consolidation of numerous individual conservation orders affecting the Prudhoe Pool into one order. 2. Notice of opportunity of public hearing was published in the Anchorage Daily News on October 11, 1994. 3. No protests were received. FINDINGS: - 1. The following Conservation Orders and associated Administrative Approvals and letter approvals are applicable to the Prudhoe Oil Pool. Conservation Orders 78 83B, 85, 87, 88, 96, 97, 98B, l l7, l l7A, l lB, 130, 137, 138, 139, 140, 141, 143, 145, 145A, 148, 155, 160, 164, 165, 166, 167, 169, 174, 178, 180, 181,183, 184, 185, 186, 188, 189, 192, 194, 195, 195.1, 195.2, 195.4, 197, 199, 200, 204, 208, 213, 214, 219, 220, 223, 224, 238, 258, 259, 279, 290 and 333, and March 20, 1981 and August 22, 1986 letter approvals. 2. Many of the orders modify or add to previous orders which make applying appropriate rules an administrative burden. 3. The hearing records and administrative files for the above listed Conservation Orders remain valid for the Prudhoe Bay Field, Prudhoe Oil Pool. 4. Several modifications to the Prudhoe Bay Unit participating area have occurred since field startup in 1977. Conservation Orde(x· Page 2 .qovember 2,1994 CONCLUSIONS: 1. A consolidated Conservation Order to bring together and organize in one document existing orders and rules applicable to the Prudhoe Oil Pool is appropriate. 2. No substantive change to existing rules are proposed under this consolidation. o Consolidating will contribute to the efficient development of the Prudhoe Oil Pool and improve the administrative function of the commission and the application of those rules and orders. 4. The record for this order should include the hearing record and administrative files related to the Conservation Orders being consolidated. 5. The Prudhoe Oil Pool affected area should be modified to make it consistent with the Initial Participation Area revisions approved by the Department of Natural Resources. 6. This consolidation of Orders will not promote waste, harm ultimate recovery nor jeopardize correlative fights. NOW, THEREFORE, IT IS ORDERED THAT the rules hereinafter set forth apply to the following described area referred to in this order as the affected area: UMIAT MERIDIAN T. 10N., R. 12E., Sections: 1,2,3,4, 10, 11, 12 T. 10N., R. 13E., 1,2,3,4,5,6, 7,8,9, 10, 11, 12, 13, 14, 15, 16,24 T. 10N., R. 14E., 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 36 T. 10N., R. 15E., all T. 10N., R. 16E., 5, 6, 7,8, 17, 18, 19,20,29,30,31 T. llN., R. llE., 1,2, 3, 4, 9, 10, 11, 12, 13, 14, 15, 24, 25 T. llN., R. 12E., all T. l lN., R. 13E., all T. liN., R. 14E., all : T. l lN., R. 15E., all Conservation Orde{~ o~1 Page 3 Aovernber 2,1994 T. llN., R. 16E., 17, 18, 19,30,31,32 T. 12N., R. 10E., 13,24, T. 12N., R. l lE., 15, 16,-.17, 18, 19, 20, 21, 22, 25, 26, 27, 28, 29, 30, 32,33,34,35,36 T. 12N., R. 12E., 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36 T. 12N., R. 13E., 19, 20, 21, 22, 23, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35,36 T. 12N., R. 14E., 25, 26, 27, 28, 29, 31, 32, 33, 34, 35, 36 T. 12N., R. 15E., 25,26,27,28,29,30,31,32,33,34,35,36 (Source: C.O. 145, page 7, expansions/contractions of initial participating area based on November 20, 1987 letter, Wade and Nelson to Eason, Re: Prudhoe Bay Unit Exhibits, Exhibit C, Part I Oil Rim Participating Area and Part II Gas Cap Participating Area.) Rule 1 Pool Definition and Changing the Affected Area (ref. C.O. 145) (a) The Prudhoe Oil Pool is defined as the accumulations of oil that are common to and which correlate with the accumulations found in the Atlantic Richfield - Humble Prudhoe Bay State No. 1 well between the depths of 8,110 feet and 8,680 feet. (Source: C.O. 145, Rule 1) (b) The Commission may adjust the description of the affected area to conform to future changes in the initial participating area by administrative approval. (Source: C.O. 145, Rule 12) Rule 2 Well Spacing (ref. C.O. 145, 174)-' There shall be no restrictions as to well spacing except that no pay shall be opened in a well closer than 500 feet to the boundary of the affected area. (Source: C.O. 174, Rule 2) Rule 3 Casing and Cementing Requirements (ref. C.O. 145,238) (a) Conductor casing shall be set at least 75 feet below the surface and sufficient cement shall be used to fill the annulus behind the pipe to the surface. Rigid high density polyurethane foam may be used as an alternate to cement, upon approval by the Commission. The Commission may also administratively approve other sealing materials upon application and presentation of data which show the alternate is appropriate based on accepted engineering principles. (Source: C.O. 238, Rule 3a) Conservation Orde~ Page 4 November 2,1994 Surface casing to provide proper anchorage for equipment, to prevent uncontrolled flow, to withstand anticipated internal pressure, and to protect the well from the effects of permafrost thaw-subsidence or freeze-back loadings shall be set at least 500 feet, measured depth, below the base of the permafrost but not below 5000 feet true vertical depth. Sufficient cement shall be used to fill the annulus behind the casing to the surface. The surface casing shall have minimum axial strain properties of 0.5% in tension and 0.7% in compression. (Source: C.O. 238, Rule 3b) (c) Alternate casing programs may be administratively approved by the Commission upon application and presentation of data which show the alternatives are appropriate, based upon accepted engineering principles. (Source: C.O. 238, Rule 3c) Rule 4 Blowout Prevention Equipment and Practice (ref. C.O. 145) (a) The use of blowout prevention equipment shall be in accordance with good established practice and all equipment shall be in good operating condition at all times. All blowout prevention equipment shall be adequately protected to ensure reliable operation under the existing weather conditions. All blowout prevention equipment shall be checked for satisfactory operation during each trip. (Source: C.O. 145, Rule 4a) : Co) Before drilling below the conductor string, each well shall have installed at least one remotely controlled annular type blowout preventer and flow diverter system. The annular preventer installed on the conductor casing shall be utilized to permit the diversion of hydrocarbons and other fluids. This low pressure, high capacity diverter system shall be installed to provide at least the equivalent of a 6-inch line with at least two lines venting in different directions to insure downwind diversion and shall be designed to avoid freeze-up. These lines shall be equipped with full-opening butterfly type valves or other valves approved by the Commission. A schematic diagram, list of equipment, and operational procedure for the diverter system shall be submitted with the application Permit to Drill or Deepen (Form 10-401) for approval. The above requirements may be waived for subsequent wells drilled from a multiple drill site. (Source: C.O. 145, Rule 4b) (c) Before drilling below the surface casing all wells shall have three remotely controlled blowout preventers, including one equipped with pipe rams, one with blind rams and one annular type. The blowout preventers and associated equipment shall have 3000 psi working pressure and 6000 psi test pressure. (Source: C.O. 145, Rule 4c) (d) Before drilling into the Prudhoe Oil Pool, the blowout preventers and associated equipment required in (c) above shall have 5000 psi working pressure rating and 10,000 psi test pressure rating. (Source: C.O. 145, Rule 4d) (e) The associated equipment shall include a drilling spool with minimum three-inch side outlets (if not on the blowout preventer body), a minimum three-inch choke manifold, Conservation Orde{x· o~1 Page 5 November 2,1994 or equivalent, and a fill-up line. The drilling string will contain full-opening valves above and immediately below the kelly during all circulating operations with the kelly. Two emergency valves with rotary subs for all connections in use will be conveniently located on the drilling floor. One valve will be an inside blowout preventer of the spring-loaded type. The second valve will be of the manually-operated ball type, or any other type which will perform the same function. (Source: C.O. 145, Rule 4e) (0 All ram-type blowout preventers, kelly valves, emergency valves and choke manifolds shall be tested to required working pressure when installed or changed and at least once each week thereafter. Annular preventers shall be tested to 50% recommended working pressure when installed and once each week thereafter. Test results shall be recorded on written daily records kept at the well. (Source: C.O. 145, Rule 4f) Rule 5 Automatic Shut-in Equipment (ref. C.O. 145,333) (a) Upon completion, each well shall be equipped with: 1. a fail-safe automatic surface safety valve (SSV) capable of preventing uncontrolled flow. . a fail-safe automatic subsurface safety valve (SSSV), unless other types of subsurface valve are approved by the Commission, installed in the tubing string below the base of permafrost and capable of preventing uncontrolled flow. (b) A well that is not capable of unassisted flow of hydrocarbons, as determined by a "no flow" performance test witnessed by a Commission representative, is not required to have a fail-safe automatic SSSV. (c) Subsurface safety valves may be temporarily removed for not more than 30 days as part of routine well operations or repair without specific notice to, or authorization by the Commission. 1. Written notification will be required for those wells that will have SSSV's removed longer than the 30 day period. 2, Wells with SSSV's removed shall:be identified by a clearly visible sign or tag on the wellhead stating that the valve has been removed, reason for removal and the date of removal. . A list of wells with SSSV's removed, removal dates, reasons for removal, and estimated reinstallation dates must be maintained current and available for Commission inspection on request. (d) The Low Pressure Sensor (LPS) systems shall not be deactivated except during repairs to the LPS, while engaged in active well work or well operations. During times when the LPS is deactivated, the pad must be manned at all times or the well shut-in at the Conservation Ord~l"~ Page 6 November 2,1994 wellhead and manifold building. Repairs to the LPS must be completed within 24 hours or the well must be shut-in at the well head and at the manifold building. 1. Wells with a deactivated LPS shall be identified by a clearly visible sign or tag on the safety valve control panel stating the date the LPS was deactivated. 2. A list of wells with the LPS deactivated, the dates and reasons for deactivating, and the estimated re-activation dates must be maintained current and available for Commission inspection on request. (e) The safety valve systems must be maintained in working condition at all times unless the well is shut in and secured, or the well is being operated in conformance with other sections of this rule. (0 Upon proper application or its own motion, the Commission may administratively waive or amend the requirements of this rule as long as the change does not promote waste, jeopardize correlative rights or compromise ultimate recovery, and is based on sound engineering principles. (g) A representative of the Commission will witness performance tests as prescribed by the Commission to confirm that the SSV, SSSV and all associated equipment are in proper working condition. (Source: C.O. 333) Rule 6 Pressure Surveys (reft C.O. 145, 165, 192, 208, 213,220, AA 220.1) · (a) Prior to regular production, a static b~ttom hole or transient pressure survey shall be taken on each well. (Source: C.O. 220, Rule 1) (b) A minimum of 95 and 87 static bottornhole or transient pressure surveys shall be mn annually in the Western Operating Area and Eastern Operating Area, respectively. These surveys are needed to effectively monitor reservoir pressure in the Prudhoe Oil Pool. The surveys required in (a) of this rule may be used to fulfill the minimum requirements. (Source: C.O. 220, Rule 6) (c) Data from the surveys required in (a) and (b) of this rule shall be filed with the Commission by the last day of the month following the month in which each survey is taken. Form 10-412, Reservoir Pressure Report, shall be used to report the data from these surveys. Data submitted shall include rate, pressure, time, depths, temperature and any well condition necessary for the complete analysis of each survey. The datum for the pressure surveys is 8800 feet subsea. Transient pressure surveys obtained by a shut in buildup test, an injection well pressure fall-off test, a multi-rate test or an interference test are acceptable. Other quantitative methods may be administratively approved by the Commission. (Source: C.O. 220, Rule 7) (d) Results and data from any special reservoir pressure monitoring techniques, tests, or surveys shall also be submitted as prescribed in (c) of this rule. (Source: C.O. 220, Rule 8) Conservation Ord~· ~1 Page 7 November 2,1994 By administrative approval the Commission may grant time extensions and waive requirements of this rule, and by administrative order the Commission may require additional pressure surveys in (b) of this rule. (Source: C.O. 220, Rule 5) Rule 7 Gas-Oil Contact Monitoring (ref. C.O. 145, 165, 192, 208, 213, AA 213.39) (a) Prior to initial sustained production, a cased or open hole neutron log shall be run in each well. (Source: C.O. 165, Rule 9a) This requirement is waived for waterflood/EOR areas encompassed by the expanded Prudhoe Bay Miscible Gas Project outlined in C.O. 290, and for those areas not expected to have significant GOC movement or gas encroachment fi.om the gravity drainage area defined by the Commission through Administrative Approval. (Source: AA 213.39, excerpts fi.om paragraph 1) (b) A minimum of 40 repeat cased hole neutron log surveys shall be run annually. (Source: C.O. 208, Rule 4) (c) The neutron logs run on any well and those required in (a) and (b) of this rule shall be filed with the Commission by the last day of the month following the month in which the logs were run. (Source: C.O. 165, Rule 9d) (d) By administrative approval, the Commission may delay, modify or waive the logging requirements of this rule or may require additional wells to be logged. (Source: C.O. 213, Rule 3) Rule 8 Productivity Profiles (ref. C.O. 145, 165, 192, 208,213, AA 213.40) (a) A spinner flow meter or tracer survey shall be run in each well during the first six months the well is on production. (Source: C.O. 165, Rule 1 la) This requirement is waived for wells completed with a single perforated interval, or with perforations in a single reservoir zone including highly deviated (greater than 65 degrees) and horizontal wells. (Source: AA 213.40 paragraph 3) (b) Follow-up surveys shall be performed on a rotating basis so that a new production profile is obtained on each well periodically. Nonscheduled surveys shall be run in wells which experience an abrupt change in water cut, gas-oil ratio, or productivity. (Source: C.O. 165, Rule 1 lb) (c) The complete spinner flow meter or tracer data and results shall be recorded and filed with the Commission by the last day of the month following the month in which each survey is taken. (Source: C.O. 165, Rule 11 c) (d) The Commission may administratively approve alternate methods and time periods in the enforcement of this rule provided that the data obtained is appropriate for monitoring the Prudhoe Oil Pool or may waive the requirements of (a), (b) and (c). By administrative order the Commission may specify additional surveys other than the Conservation Order- ~al Page 8 November 2,1994 surveys submitted under (a), (b) and (c) of this rule. (Sources: C.O. 208, Rule 8 and C.O. 213, Rule 2) Rule 9 Pool Off-Take Rates (ref. C.O. 145,214) The maximum annual average oil offiake rate is 1.5 million barrels per day plus condensate production. The maximum annual average gas offiake rate is 2.7 billion standard cubic feet per day, which contemplates an annual average gas pipeline delivery sales rate of 2.0 billion standard cubic feet per day of pipeline quality gas when treating and transportation facilities are available. Daily offiake rates in excess of these amounts are permitted only as required to sustain these annual average rates. The annual average offlake rates as specified shall not be exceeded without the prior written approval of the Commission. Annual average offtake rates mean the daily average rate calculated by dividing the total volume produced in a calendar year by the number of days in the year. However, in the first calendar year that large gas offtake rates are initiated, following the completion of a large gas sales pipeline, the annual average offtake rate for gas shall be determined by dividing the total volume of gas produced in the calendar year by the number of days remaining in the year following initial delivery to the large gas sales pipeline. Rule 10 Facility Gas Flaring (ref. C. O. 145, 145A, 197, 219) (a) The venting or flaring of gas is prohibited except as may be authorized by the Commission in cases of emergency or operational necessity. However, upon application 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. (Source: C.O. 197) (b) The flaring of gas is approved to maintain safety flares and to permit purging of the gas handling equipment at the rates specified for the following facilities. The daily average rate shall be calculated on a monthly basis. Conservation Orde~x Page 9 November 2,1994 Facility Approved Rate Gathering Center No. 1 Gathering Center No. 2 Gathering Center No. 3 Flow Station No. 1 Flow Station No. 2 Flow Station No. 3 Field Fuel Gas Unit & Central Compressor Plant Central Gas Facility (Source: C.O. 219, Rule 1) 1,100 MCF/D 1,100 MCF/D 1,100 MCF/D 1,000 MCF/D 1,000 MCF/D 1,000 MCF/D 1,000 MCF/D 3,000 MCF/D (c) Atter the commencement of any flaring incident at any facility arising fi.om an emergency or operational necessity, the Operator shall take the following action: . , Initiate appropriate action and procedures so that flaring can be terminated as soon as reasonably possible and the flaring can be minimized during the flaring period. Production shall be curtailed to minimize flaring as soon as reasonably possible. (Source: C.O. 145A, Rule 2) Flaring as a result of an emergency or operational necessity shall not be permitted longer than a total of twelve (12) hours aiter the commencement of each such incident without approval of the Commission or its designated representative. (Source: C.O. 145A, Rule 3) (e) Upon the request of the Operator to flare for more than a total of twelve (12) hours, a member of the Commission or its designated representative may verbally approve the request for a period not to exceed five (5) days beyond the twelve (12) hour period provided for in (d) above. The following information shall be given to the Commission or its designated representative upon request for such approval: (Source: C.O. 145A, Rule 4) 1. The facility at which the flaring is occurring. 2. Description of the flaring incident and cause. 3. Time of commencement. 4. Estimated time of termination. 5. Volume of gas flared. 6. Estimate of gas volume to be flared. Conservation Orde{x Page 10 November 2,1994 7. Action being taken to minimize and eliminate flaring. (f) A request in writing must be submitted by the Operator in order to obtain written administrative approval to flare beyond the period provided in (e) above. (Source: C.O. 145A, Rule 5) (g) On a monthly basis the Operator shall submit a written report to the Commission on all flaring incidents that result from an emergency or operational necessity. The report shall be due by the 20th day of the month following the reporting month. The report shall contain the following information for each flaring incident: 1. The facility at which the flaring occurred. 2. Time of commencement and termination of flaring. 3. Description of the flaring incident and cause. 4. Volume of gas flared. 5. Action taken to eliminate the cause for the flaring incident. (Source: C.O. 145A, Rule 6) (h) Following a ten (10) day notice to the operator of any production facility the Commission may change the volumes of gas allowed to be flared for safety. (Source: C.O. 145A, Rule 7) Rule 11 Annual Surveillance Reporting (ref. C.O. 165, 186, 195, 208, 223,224, 279, AA 279.1) (a) An annual Prudhoe Oil Pool surveillance report will be required by April 1 of each year. The report shall include but is not limited to the following: . Progress of enhanced recovery project(s) implementation and reservoir management summary including engineering and geotechnical parameters. .2 Voidage balance by month of produced fluids, oil, water and gas, and injected fluids, gas, water, low molecular weight hydrocarbons, and any other injected substances (which can be filed in lieu of monthly Forms 10413 for each EOR project). (Source C.O. 279, Rule 7 and AA 279.1 excerpt from paragraph 3) 3. Analysis of reservoir pressure surveys within the field. 4. Results and where appropriate, analysis of production logging surveys, tracer surveys and observation well surveys. Conservation OrdJx- o~1 Page 11 November 2,1994 . Results of gas movement and gas-oil contact surveillance efforts including a summary of wells surveyed and analysis of gas movement within the reservoir. The analysis shall include map(s) and/or tables showing the locations of various documented gas movement mechanisms as appropriate. (Source: C.O. 279, Rule 7) (b) Upon its own motion or upon written request, the Commission may administratively amend this rule so long as the change does not promote waste nor jeopardize correlative fights and is based on sound engineering principles. (Source: C.O. 279, Rule 8) Rule 12 Prudhoe Bay Miscible Gas Project (PBMGP) (ref. C.O. 195,290) (a) Expansion of the PBMGP and infill expansion of miscible gas injection in the NWFB is approved for the 59,740 acre portion of the Prudhoe Oil Pool defined in the record. (Source: C.O. 290, Rule 1, AA 290.1) (b) An annual report must be submitted to the Commission detailing performance of the PBMGP and outlining compositional information for the current miscible injectant (MI) necessary to maintain miscibility under anticipated reservoir conditions. (Source: C.O. 290, Rule 2) (c) The operator will maintain a pressure differential of at least 250 psi between the minimum miscibility pressure (MMP) of the MI and the prevailing reservoir pressure at the time of injection. This differen_tial is based on a projected prevailing reservoir pressure decline of no more than 30 psi/year over the life of the project. (Source: C.O. 290, Rule 4) (d) The operators are directed to continue investigating options to mitigate pressure decline and to provide an annual progress report to the Commission. (Source: C.O. 290, Rule 5) (e) Upon its own motion or upon written request, the Commission may amend this rule by administrative action if the change does not promote waste, violate correlative fights, nor jeopardize ultimate recovery, and is based on sound engineering principles. (Source: C.O. 290, Rule 6) Rule 13 Waiver of GOR Limitation (ref. 8/22/86 letter) The Commission waives the requirements of 20 AAC 25.240(b) for all oil wells in the Prudhoe Oil Pool of the Prudhoe Bay Field so long as the gas from the wells is being returned to the pool, or so long as the additional recovery project is in operation. (Source: Letter 8/22/86, L. Smith to Heinze/Nelson, paragraph 3) Conservation Orde(~ Page 12 November 2,1994 Rule 14 Waiver of "Application for Sundry Approval" Requirement for Workover Operations (ref. C.O. 258) The requirements of 20 AAC 25.280(a) are waived for development wells in the Prudhoe Oil Pool of the Prudhoe Bay Field. (Source: C.O. 258) Rule 15 Waterflooding (ref. 3/20/81 letter Hamilton to Nelson/Norgaard) The commission approves the December, 1980 additional recovery application for water- flooding in the Prudhoe Oil Pool subject to the requirements listed in Rule 11 above. Any proposed changes must be submitted to the Commission for approval. (Source: Letter 3/20/81, Hamilton to Nelson/Norgaard) Rule 16 Orders Revoked The following Conservation Orders and associated Administrative Approvals and letter approvals are hereby revoked. Conservation orders 78, 83B, 85, 87, 88, 96, 97, 98B, 117, l17A, 118, 130, 137, 138, 139, 140, 141, 143, 145, 145A, 148, 155, 160, 164, 165, 166, 167, 169, 174, 178, 180, 181,183, 184, 185, 186, 188, 189, 192, 194, 195, 195.1,195.2, 195.4, 197, 199, 200, 204, 208, 213,214, 219, 220, 223, 224, 238, 258, 259, 279, 290 and 333, and March 20, 1981 and August 22, 1986 letter approvals. The hearing records of these orders are made part of the record for this order. DONE at Anchorage, Alaska~~~~ o l I. David ~n, Chairmlkn -'"' an~ Alaska Oil ion Commission Tuckerman Babcock, Commissioner Alaska Oil and Gas Conservation Commission Russell A. Douglass, Corngffssioner Alaska Oil and Gas Conservation Commission AS 31.05.080 pmvidez that within 20 days at'er receipt of written notice of the entqt of an order, a person affected by it may file with the Commission an application for rehearing. A requea't 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 refi~se an application by not acting on it within the 10-day period. An affected person has 30 days from the date the Commission refuse~ the application or mails (or othetwi,ee di~;tributea) an order upon rehearing, both being the final order ofthe Commission, to appeal the decision to Superior Court. Where a request for reheating is denied by nonaction ofthe Commi~:~ion, the 30 day period for appeal to Superior Court run~ from the date on which the requezt is deemed denied (i.e., lOth day aflter the application for rehearing was filed). .: ~k3594 STOF 0330 A0-02514015 $91.20 AFFIDAVIT OF PUBLICATION STATE OF ALASKA ) THIRD JUDICIAL DISTRICT ) SS. Eva M Kaufmann being first duly sworn on oath deposes and says that she is the Advertising Representative of the Anchorage Daily News, a daily newspaper. That said newspaper has been approved by the Third Judicial Court, Anchorage, Alaska, and it now and has been published in the English language continually as a daily newspaper in Anchorage, Alaska, and it is now and during all said time was printed in an office' maintained at the aforesaid place of publication of said newspaper. That the annexed is a copy of an advertisement as it was published in regular issues (and not in supplemental form) of said newspaper on: October ill ,1994 and that such newspaper was regularly distributed to its subscribers during all of said period. That the full amount of the fee charged for the foregoing publication is not in excess of the rate charged private individuals. s gn a Eva M. Kaufmanr() Classified Advertising Rep. 257-4296 Subscribed and sworn to b~O[~,? me this ...~ay of _.(. ~.(r~'~.& 1994 Third Division Anchorage, Alaska MY COMMISSION EXPIRES: MY CO/V~ISS~ON EXPIR~..~ ........ ~.~. ~.¥..~.,. )..~ ............. 19 ...... Neflce of Public Heari~-g ',' "', STATE OF ALASKA : ",'i,'Ai~skJ Oil ami G~s' · )¢mSer~alion CommiSSion , ,~, · ~. :u~n i~ ~ motion in °r~r ~0r ~h*. ~rUdh~ Oil h~'~n'pr~,r~d ~o .brln~ d~0m~h* ~e'exl~flng. Order~ /"a~$'~ :'*r*~: to m~ '~ con- ~:,~,,',,,, , ,~ ,.:' ,., , ~ ~0 'i~r0v~ 1~ '~dmml~ra- .fion ~ 'ffi~ rule~ ~nd o~der~. o~" ~u~r~ ~n~ .[ik~fl~ ~rov~l~ ~nd le~er fio~';o~.:. ~8,: ~g, 85, .SL 88, ¢$;L¢~/~$-g, llL. 11~, 118, '.1~;':'1~: l~ai 180, 181, 185, 1Sa, 185) ~, 188, 18~, I~Z lea, . .~." ~:~..~,~n.'W~o' .m',y ~e 'l~su~d. may file a wrlffen test prior to 4:~ p.m. October 26, 1~4 with the Alaska Oil' and Gas Conservation Corn-. ~iS~ion (hereinafter the Com~' '..~'l~'Si~.n)Z ..3003' POrcupine Drlve, "'~ Anchbrage, "A:laska ~1, and request a hearing on the .maffer..If ~e protest is tlmely..flled and rai~s a sub- stantial and ma*e'~a~ ~ssc'~ crucial to '~ C3~-~,:" ':dete'rm'Inatic~ d ~e~r-= . N6vember. '15~=: ~4: In:..~o~fo'r~ '.~a'nce'wlth 20 "AAC. ~,~: If a, h'~ar:nq ~s t~"be be!d"'~+erest;: a'.l co~51~er 'Pc SS~,lCe T~O or3L, r * T~C~T O rear rg 'C :~e"~ O' '0 al'{~:"= '"~ PJb; g beari~ cl,'(?~e coq'dr.' D~ana Flec< ~t 21~-1~ I~lor 1hen November D. ,, RuS~ll ~ Douglas~ Coml~'s~'o~er. AIdSka C; F 'STATE OF ALASKA ADVERTISING ORDER A0- ADVERTISING ORDER NO. 02-5-14-021 AOGCC 3001 Porcupine Drive Anchorage, AK 99501 Star Publishing Company~ 16941 N Eagle River Loop Rd Eagle River, AK 99577-7499 AGENCY CONTACT DATE OF A.O. Diana Fleck 10/12/94 PHONE (907) 279-1433 DATES ADVERTISEMENT REQUIRED: 10/19/94 SPECIAL INSTRUCTIONS: AFFIDAVIT OF PUBLICATION UNITED STATES OF AMERICA STATE OF g~R~C~ ss 960-Public Hearing NOTICE.OF PUBLIC HEARING STATE OF ALASKA · ALASKA OIL AND GAS CONSERVATION cOMMISSION BEFORE ME, THE UNDERSIGNED, A NOTARY PUBLIC THIS DAY ~ ~ C',k...,, THAT THE AND STATE OF _. AND ~',,,,~{"~ ~)..,(~"' 1~-]~' AND THEREA F TER FOR ~ CONSECUTIVE DAYS, THE LAST PUBLICATION APPEARING ON THE )q DAYOF (?~,~__~ ~/"~ 19q~AND THAT THE RATE CHARGED THEREON IS NOT IN EXCESS OF THE RATE CHARGEI~PRIVATE INDIVIDUALS. ~ SUBSCRIBED AND SWORN TO BEFORE ME THIS~ DAY OF ~ 19~__.~ NOT~IY PUBLIC FOR STATE OF ~~ MY COMMISSION EXPIRES ~' ,5'"' ~'.-~" 02-901 (Rev. 6-85) · The Alaska Oil and Gas Consewa- ti0n Commission, acting upon its own motion in' accordance with AS 37.05.060,. is .~onsidering ..a. public 'he~iring. 'f~ "~n~0jldate ' conS-er~ati0n Orders governing development of the Prudhoe Oil Pool, Prudhoe Bay Field. A consolidated conservation or- der for the 'Pru(thoe Oil Pool has been prepared to:bring together and Orga- nize in one ~document the existing orders and' rules applicable to the Prudhoe Oil., Pool; The consolidated conservation order also updates the Prudhoe-Oil Pool affected area to make it conform with the Initial Partici- pation Area revisions approved by Department of Natural Resoumes. The Commission's objective is to imProve the administrative function and the application of those rules and orders. It is. not the purpose or intent of this consolidation to amend or supersede'any individual rule or order currently 'in effect, or any action or approval taken pursuant to those rules and orders. · The following ConServation Or- ders and associated Administrative Approvals and letter approvals were reviewed .and the sections currently applicabletothe Prudhoe Oil Pool were incorporated in the proposed consoli- dated conservation order: 78, 83B, 85, 87, 88, 96; 97, 98-B, 117,117A, 118, 130, 137, 138, 139, .140, 141,143, 145, 145A, .t48, 155, 160, 164, 165, 166, 167, 169, 174, 178, 180, 181, 183, 184,' 185, 186, 188, 189, 192, 194, 195, 195.1,195.2, 195.4, 197, 199, 200, 204, 208, 213, 214, 219, 220, 223, 224, 238, 258, 259, 279, 290, and 333. Apemonwho may be harmedifthe requested order is issued may file a written' protest .prior to 4:00 p.m. October 26, 1994 with the Alaska Oil and Gas Conservation Commission (hereinafter the 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 determi- . ,' PUBLISHER 960-Public Hearing nation, a hearing on the matter will be held at the above addrass at 9:00a.m. on November 15,1994 in conformanca with 20 AAC 25.540. If a hearing is to be held, interested parties may con- firm this by calling the Commission's office, (907) 279-1433 after October 26, 1994; if no protest is timely'filed, the Commissionwillconsidertheissu. ance of the order without a hearing. If you ara 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 November 10,1994. RussellA. Douglass, Commissioner Alaska Oil and Gas Conservation Commisssion AO-02-5-14-021 Published: October 19, 1994. Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission The Alaska Oil and Gas Conservation Commission, acting upon its own motion in accordance with AS 31.05.060, is considering a public hearing to consolidate conservation orders governing development of the Prudhoe Oil Pool, Prudhoe Bay Field. A consolidated conservation order for the Prudhoe Oil Pool has been prepared to bring together and organize in one document the existing orders and rules applicable to the Prudhoe Oil Pool. The consolidated conservation order also updates the Prudhoe Oil Pool affected area to make it conform with the Initial Participation Area revisions approved by Department of Natural Resources The Commission's objective is to improve the administrative function and the application of those rules and orders. It is not the purpose or intent of this consolidation to amend or supersede any individual rule or order currently in effect, or any action or approval taken pursuant to those rules and orders. The following Conservation Orders and associated Administrative Approvals and letter approvals were reviewed and the sections currently applicable to the Prudhoe Oil Pool were incorporated in the proposed consolidated conservation order: 78, 83B, 85, 87, 88, 96, 97, 98-B, 117, l17A, 118, 130, 137, 138, 139, 140, 141, 143, 145, 145A, 148, 155, 1.60, 164, 165, 166, 167, 169, 174, 178, 180, 181, 183, 184, 185, 186, 188, 189, 192, 194, 195, 195.1, 195.2, 195.4, 197, 199, 200, 204, 208, 213,214, 219, 220, 223,224, 238, 258, 259, 279, 290, and 333. A person who may be harmed if the requested order is issued may file a written protest prior to 4:00 p.m. October 26, 1994 with the Alaska Oil and Gas Conservation Commission (hereinafter the 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 a.m. on November 15, 1994 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 October 26, 1994. If no protest is timely 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 November 10, 1994. Russell A. Douglass, Alaska Oil and Gas Conservation Commission Published October 11,1994. Memorandum State of Alaska Oil and Gas Conservation Commls~i0n August 29, 1994 To: The Commission Thru: Russ Douglass From: Jack Hartz ~'~ Re: Prudhoe Oil Pool - Consolidated Conservation Order Attached is a final draft of the consolidated Conservation Order. I've made the changes as discussed at our meeting on August 22. The changes are summarized in the last three pages of notes of items to be resolved. I've enclosed the summary of each change in a frame to stand apart from the previous set of notes. I believe the document is ready to be finalized and a meeting can be arranged with the operators prior to publication of a notice if it is still, needed. Notice of Public Hearing STATE OF ALASKA Oil and Gas Conservation Commission The Alaska Oil and Gas Conservation Commission has, acting upon its own motion in accordance with AS 31.05.060, scheduled a public hearing to consider consolidation of conservation orders governing development of the Prudhoe Oil Pool, Prudhoe Bay Field. A consolidated conservation order for the Prudhoe Oil Pool has been prepared in order to bring together and organize in one document the existing orders and rules applicable to the Prudhoe Oil Pool. The consolidated conservation order also updates the Prudhoe Oil Pool affected area to make it consistent with the Initial Participation Area revisions approved by Department of Natural Resources The Commission's objective is to improve the administrative function and the application of those - rules and orders. It is not the purpose or intent of this consolidation to amend or supersede any individual rule or order currently in effect, or any action or approval taken pursuant to those rules and orders. The following Conservation Orders and associated Administrative Approvals and letter approvals were reviewed and the sections currently applicable to the Prudhoe Oil Pool were incorporated in the proposed consolidated conservation order: 78, 83B, 85, 87, 88, 96, 97, 98-B, 117, 117A, 118, 130, 137, 138, 139, 140, 141, 143, 145, 145A, 148, 155, 160, 164, 165, 166, 167, 169, 174, 178, 180, 181, 183, 184, 185, 186, 188, 189, 192, 194, 195, 195.1, 195.2, 195.4, 197, 199, 200, 204, 208, 213,214, 219, 220, 223,224, 238, 258, 259, 279, 290, and 333. A person who may be harmed if the requested order is issued may file a written protest prior to 4:00 PM September ??, 1994 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 heating on the matter will be held at the above address at 9:00 a.m. on October ??, 1994 in conformance with 20 AAC 25.540. If a heating is to be held, interested parties may confirm this by calling the Commission's office, (907) 279-1433 after September ??, 1994. If no protest is timely filed, the Commission will consider the issuance of the order without a hearing. Russell A. Douglass Commissioner Published September 77,1994. DRAFT CONSOLIDATED CONSERVATION ORDER PRUDHOE BAY FIF~LD PRUDHOE OIL POOL Explanatory note: [ 1 ] This Consolidated Conservation Order brings together and organizes in one document existing orders and rules applicable to the Prudhoe Oil Pool. The objectives are to improve the administrative function of the Commission and the application of those rules and orders. The hearing record for this Conservation Order shall include the various Conservation Orders set forth below, and the hearing record and materials related to each such proceeding, which are incorporated by this reference. The following Conservation Orders and associated Administrative Approvals and letter approvals were reviewed and the sections currently applicable to the Prudhoe Oil Pool were incorporated in this Consolidated Conservation Order: 78, 83B, 85, 87, 88, 96, 97, 98-B, 117, l17A, 118~ 130, 137, 138, 139, 140, 141, 143, 145, 145A, 148, 155, 160, 164, 165, 166, 167, 169, 174, 178, 180, 181, 183, 184, 185, 186, 188, 189, 192, 194, 195, 195.1, 195.2, 195.4, 197, 199, 200, 204, 208, 213, 214, 219, 220, 223, 224, 238, 258, 259, 279, 290 and 333. The historical references noted at the beginning of each rule identify orders preceding the current rule. The source of each rule is noted at the end of the rule or paragraph. This Consolidated Conservation Order also updates the Prudhoe Oil Pool affected area to make it consistent with the Initial Participation Area revisions approved by Department of Natural Resources and tabulated in a letter dated November 20, 1987 from Nelson and Wade to James E. Eason, Exhibit C, Part I and Part H. Prudhoe Oil Pool ~ 1 Consolidated Conservation Order August 29, 1994 DRAFT Affected area. (C. O. 145, page 7, expansions/contractions of initial participating area)..[ 2 ] NOW, THEREFORE, IT IS ORDERED THAT the roles hereinafter set forth apply tothe following described area referred to in this order as the affected area: UMIAT MERIDIAN T. 10N., R. 12E., Sections: 1,2, 3, 4, 10, 11, 12 T. 10N., R. 13E., 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 24 T. 10N., R. 14E., 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 36 T. 10N., R. 15E., all T. 10N., R. 16E., T. llN., R. llE., 5, 6, 7, 8, 17, 18, 19,20,29,30,31 1, 2, 3, 4, 9, 10, 11, 12, 13, 14, 15, 24, 25 T. liN., R. 12E., all T. l lN., R. 13E., all T. liN., R. 14E., all T. l lN., R. 15E., all T. liN., R. 16E., T. 12N, R. 10E., T. 12N., R. liE., 17, 18, 19, 30, 31, 32 13, 24, 15, 16, 17, 18, 19, 20, 21, 22, 25, 26, 27, 28, 29, 30, 32, 33, 34, 35, 36 T. 12N., R. 12E., 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36 T. 12N., R. 13E., 19, 20, 21, 22, 23, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36 T. 12N., R. 14E., 25, 26, 27, 28, 29, 31, 32, 33, 34, 35, 36 T. 12N., R. 15E., 25, 26, 27, 28, 29, 30,31,32, 33, 34, 35, 36 (Source: C. O. 145, page 7, expansions/contractions of initial participating area based on 11/20/87 letter, Wade and Nelson to Eason, Re: Prudhoe Bay Unit Exhibits, Exhibit C, Part I Oil Rim Participating Area and Part II Gas Cap Participating Area) Page 2 Prudhoe Oil Pool '"t' Consolidated Conservation Order August 29, 1994 DRAFT Rule 1 Pool Definition and Changing the Affected Area (ref. C.O. 145) , . .-. · .. The Prudhoe Oil Pool is defined as the accumulations of oil that are common to and which correlate with the accumulations found in the Atlantic Richfield - Humble Prudhoe Bay State No. 1 well between the depths of 8,110 and 8,680 feet. (Source: C.O. 145, Rule 1) (b) By administrative approval, the ComrrJttcc Commission may adjust the description of the affected area to conform to future changes in the initial participating area. (Source: C. O. 145, Rule 12) [ 6 ] Rule 2 Well Spacing (ref. C.O. 145, 174) There shall be no restrictions as to well spacing except that no pay shall be opened in a well closer than 500 feet to the boundary of the affected area. (Source: C.O. 174, Rule 2) Rule 3 Casing and Cementing Requirements (ref. C.O. 145, 238) (a) Conductor casing shall be set at least 75 feet below the surface and sufficient cement shall be used to fill the annulus behind the pipe to the surface. Rigid high density polyurethane foam may be used as an alternate to cement, upon approval by the Commission. The Commission may also administratively approve other sealing materials upon application and presentation of data which show the alternate is appropriate based on accepted engineering principles. (Source: C.O. 238, 3a) (b) Surface casing to provide proper anchorage for equipment, to prevent uncontrolled flow, to withstand anticipated internal pressure, and to protect the well from the effects of permafrost thaw-subsidence or freeze-back loadings shall be set at least 500 feet, measured depth, below the base of the permafrost but not below 5000 feet true vertical depth. Sufficient cement shall be used to fill the annulus behind the casing to the surface. The surface casing shall have minimum axial strain properties of 0.5% in tension and 0.7% in compression. (Source: C.O. 238, 3b) (c) Alternate casing programs may be administratively approved by the Commission upon application and presentation of data which show the alternatives are appropriate, based upon accepted engineering principles. (Source: C.O. 238, 3c) Page 3 Prudhoe Oil Pool Consolidated Conservation Order August 29, 1994 DRAFT Rule 4 Blowout Prevention Equipment and Practice (ref. C.O. 145) (a) The use of blowout prevention equipment shall be in accordance with good established practice and all equipment shall be in good operating condition at all times. All blowout prevention equipment shall be adequately protected to ensure reliable operation under the existing weather conditions. All blowout prevention equipment shall be checked for satisfactory operation during each trip. (Source: C.O. 145, Rule 4a) (b) Before drilling below the conductor string, each well shall have installed at least one remotely controlled annular type blowout preventer and flow diverter system. The annular preventer installed on the conductor casing shall be utilized to permit the diversion of hydrocarbons and other fluids. This low pressure, high capacity diverter system shall be installed to provide at least the equivalent of a 6-inch line with at least two lines venting in different directions to insure downwind diversion and shall be designed to avoid freeze-up. These lines shall be equipped with full-opening butterfly type valves or other valves approved by the Com,'nittcc Commission. A schematic diagram, list of equipment, and operational procedure for the diverter system shall be submitted with the application Permit to Drill or Deepen (Form 10- 401) for approval. The above requirements may be waived for subsequent wells drilled from a multiple drill site. (Source: C.O. 145, Rule 4b) (c) Before drilling below the surface casing all wells shall have three remotely controlled blowout preventers, including one equipped with pipe rams, one with blind rams and one annular type. The blowout preventers and associated equipment shall have 3000 psi working pressure and 6000 psi test pressure. (Source: C.O. 145, Rule 4c) (d) Before drilling into the Prudhoe Oil Pool, the blowout preventers and associated equipment required in (c) above shall have 5000 psi working pressure rating and 10,000 psi test pressure rating. (Source: C.O. 145, Rule 4d) (e) The associated equipment shall include a drilling spool with minimum three-inch side outlets (if not on the blowout preventer body), a minimum three-inch choke manifold, or equivalent, and a fill-up line. The drilling string will contain full-opening valves above and immediately below the kelly during all circulating operations with the kelly. Two emergency valves with rotary subs for all connections in use will be conveniently located on the drilling floor. One valve will be an inside blowout preventer of the spring-loaded type. The second valve will be of the manually-operated ball type, or any other type which will perform the same function. (Source: C.O. 145, Rule 4e) Page 4 Prudhoe Oil Pool Consolidated Conservation Order August 29, 1994 DRAFT All ram-type blowout preventers, kelly valves, emergency valves and choke ma.ni'folds shall be tested to required working pressure when installed or changed and at least once each week thereader. Annular preventers shall be tested to 50% recommended working pressure when installed and once each week thereafter. Test results shall be recorded on written daily records kept at the well. (Source: C.O. 145, Rule 4f) Rule 5 Automatic Shut-in Equipment (ref. C.O. 145, 333) a. Upon completion, each well shall be equipped with: i. a fail-safe automatic surface safety valve (SSV) capable of preventing uncontrolled flow. ii. a fail-safe automatic subsurface safety valve (SSSV), unless other types of subsurface valve are approved by the Commission, installed in the tubing string below the base of permafrost and capable of preventing uncontrolled flow. b. A well that is not capable of unassisted flow of hydrocarbons, as determined'by a "no flow" performance test witnessed by a Commission representative, is not required to have a fail-safe automatic SSSV. c. Subsurface safety valves may be temporarily removed for not more than 30 days as part of routine well operations or repair without specific notice to, or authorization by the Commission. i. Written notification will be required for those wells that will have SSSV's removed longer than the 30 day period. ii. Wells with SSSV's removed shall be identified by a clearly visible sign or tag on the wellhead stating that the valve has been removed, reason for removal and the date of removal. iii. A list of wells with SSSV's removed, removal dates, reasons for removal, and estimated reinstallation dates must be maintained current and available for Commission inspection on request. d. The Low Pressure Sensor (LPS) systems shall not be deactivated except during repairs to the LPS, while engaged in active well work or well operations. During times when the LPS is deactivated, the pad must be manned at all times or the well shut-in at the wellhead and manifold building. Repairs to the LPS must be completed within 24 hours or the well must be shut-in at the well head and at the manifold building. Page 5 Prudhoe Oil Pool ~i Consolidated Conservation Order August 29, 1994 DRAFT i. Wells with a deactivated LPS shall be identified by a clearly 'visible sign or ·., tag on the safety valve control panel stating the date the LPS was deactivated. ii. A list of wells with the LPS deactivated, the dates and reasons for deactivating, and the estimated re-activation dates must be maintained current and available for Commission inspection on request. e. The safety valve systems must be maintained in working condition at all times unless the well is shut in and secured, or the well is being operated in conformance with other sections of this rule. Upon proper application or its own motion, the Commission may administratively waive or amend the requirements of this rule as long as the change does not promote waste, jeopardize correlative rights or compromise ultimate recovery, and is based on sound engineering principles. g. A representative of the Commission will witness performance tests as prescribed by the Commission to confirm that the SSV, SSSV and all associ.ated equipment are in proper working condition. (Source: C.O. 333) [ 3 ] Rule 6 Pressure Surveys (ref. C.O. 145, 165, 192, 208, 213,220, A.A. 220.1) (a) Prior to regular production, a static bottom hole or transient pressure survey shall be taken on each well. (Source: C.O. 220, Rule 1) A minimum of 95 and 87 static bottomhole or transient pressure surveys shall be run annually in the Western Operating Area and Eastern Operating Area, respectively. These surveys are needed to effectively monitor reservoir pressure in the Prudhoe Oil Pool. The surveys required in ~'"'"~ I ~"~" ,,,,,,o ,,,.,, ,. (al of this c, rdcr rule may be used to fulfill the minimum requirements. (Source: C.O. 220, Rule 6) Data from the surveys required in Pcalca I and 2 (a) and (b) of this ordcr rule shall be filed with the Commission by the last day of the month following the month in which each survey is taken. Form 10-412, Reservoir Pressure Report, shall be used to report the data from these surveys. Data submitted shall include rate, pressure, time, depths, temperature and any well condition necessary for the complete analysis of each survey. The datum for the pressure surveys is 8800 feet subsea. Transient pressure surveys obtained by a shut in buildup test, an injection well pressure fall-off test, a multi-rate test or an interference test are acceptable. Other quantitative methods may be administratively approved by the Commission. (Source: C.O. 220, Rule 7) Page 6 Prudhoe Oil Pool Consolidated Conservation Order August 29, 1994 DRAFT _t~ (d) Results and data from any special reservoir pressure monitoring techniques; .tests, or surveys shall also be submitted as prescribed in Rulc 7 (c) of this rule ordcr. (Source: C.O. 220, Rule 8) hO (e) By administrative approval the Commission may grant time extensions and waive requirements of this rule,,."~"~,,,,,, and by administrative order the Commission may require additional pressure surveys in r,..,^ 2 (b) of this rule -~^~ (Source: C.O. 220, Rule 5) Rule 9 Gas-Oil Contact Monitoring (ref. C.O. 145, 165, 192, 208, 213, A.A. 213.39) (a) Prior to initial sustained production, a cased or open hole neutron log shall be run in each well. (Source: C.O. 165, Rule 9a) This requirement is waived for waterflood/EOR areas encompassed by the expanded Prudhoe Bay Miscible Gas Project outlined in C.O. 290, and for those areas not expected to have significant GOC movement or gas encroachment from the gravity drainage area defined by the Commission through Administrative approvals. (Source: A.A. 213.39, excerpts from paragraph 1) [ 5 ] (b) A minimum of 40 repeat cased hole neutron log surveys shall be run annually. (Source: C.O. 208, Rule 4) (el-) (c) The neutron logs run on any well and those required in (a) and (b) of this rule shall be filed with the Commission by the last day of the month following the month in which the logs were run. (Source: C.O. 165, Rule 9d) By administrative approval, the Commission may delay, modify or waive the logging requirements of~'''^..,,.~ 9 ,,,^c ,-,,~u.,o,,, ....... v,,,,,,,*:"- r~,~,.,,.,,,,~, XT,.~,,~. l~t:,,, this rule and by administrative order, the Commission may require additional wells to be logged. (Source: C.O. 213, Rule 3) Rule 11 Productivity Profiles (ref. C.O. 145, 165, 192, 208, 213, A.A. 213.40) (a) A spinner flow meter or tracer survey shall be run in each well during the first six months the well is on production. (Source: C.O. 165, Rule 1 la) [ 5 ] Page 7 Prudhoe Oil Pool i: Consolidated Conservation Order August 29, 1994 DRAFT 'T'I.,,,,-,,C .... I.,,, P.-..~,.-~:,,,: ..... *t.,,-,.-~ ....... : ..... .0 D..1,, I I/'''\ This requirement is waived for wells completed with a single perforated interval, or with perforations in a single reservoir zone including highly deviated (greater than 65 degrees) and horizontal wells (Source: A.A. 213.40 paragraph 3) (b) Follow up surveys shall be performed on a rotating basis so that a new production profile is obtained on each well periodically. Nonscheduled surveys shall be run in wells which experience an abrupt change in water cut, gas-oil ratio, or productivity. (Source: C.O. 165, Rule llb) (c) The complete spinner flow meter or tracer data and results shall be recorded and filed with the Commission by the last day of the month following the month in which each survey is taken. (Source: C.O. 165, Rule llc) (d) The...o~.* '~"~ ~:',.,. .,,.~'~ r._~..,,.o r-,~.,,,o,~, ....... v,..,~.':"- Commission may administratively approve alternate methods and time periods in the enforcement of Rulc 11 of~,,,,o,., ........ ~..,~.':~" ,-~...~....,.,, ~,,., xtra,,,. ~,,,..~ this rule provided that the data obtained is appropriate for monitoring the Prudhoe Oil Pool: o_r ~.j ........ o ....... ..vv~,~....~.~ .~.~ ..... oo..~, may waive the requirements of (a). (b) and (c): and [B]y administrative order the Commission may specify additional surveys other than the surveys submitted under (a), (b) and (c) of this rule. (Sources: C.O. 208, Rule 8 and C.O. 213, Rule 2) (Suggest deleting. Covered by the initial explanato~ comment.) [ 7 ] V/~.$~& &l~,~. .~, i, l~t,~.l~, ~-' I ~.~lll(~.lll Ill ~.~11~,.~.~[. (.~ll~.~. ~1.1 ~, (~[,~[,ll~,~IIZ.~.~& (Suggest deleting. Covered by the initial explanato~ comment.) Rule 15 Pool Off-Take Rates (ref. C.O. 145, 214) The maximum annual average oil offiake rate is 1.5 million barrels per day plus condensate production. The maximum annual average gas offiake rate is 2.7 billion standard cubic feet per day, which contemplates an annual average gas pipeline delivery sales rate of 2.0 billion standard cubic feet Page 8 Prudhoe Oi! Poo! Consolidated Conservation Order August 29, 1994 DRAFT per day of pipeline quality gas when treating and transportation facilities are available.~..' .Daily offtake rates in excess of these amounts are permitted only as required to sustain these annual average rates. The annual average offiake rates as specified shall not be exceeded without the prior written approval of the r-^.~._:,,~.~ Commission. Annual average offiake rates mean the daily average rate calculated by dividing the total volume produced in a calendar year by the number of days in the year. However, in the first calendar year that large gas offiake rates are initiated, following the completion of a large gas sales pipeline, the annual average offiake rate for gas shall be determined by dividing the total volume of gas produced in the calendar year by the number of days remaining in the year following initial delivery to the large gas sales pipeline. (Source: C.O. 214) The paragraph is redundant and could be eliminated. Rule ~6 Facility Gas Flaring (ref. C. o. 145,145A, 197, 219) The venting or flaring of gas is prohibited except as may be authorized by the Commission in cases of emergency or operational necessity. However, upon application 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. (Source: C.O. 197) [ 10 ] The flaring of gas is approved to maintain safety flares and to permit purging of the gas handling equipment at the rates specified for the following facilities. The daily average rate shall be calculated on a monthly basis. Facility Approved Rate A. Gathering Center No. 1 1,100 MCF/D B. Gathering Center No. 2 1,100 MCF/D C. Gathering Center No. 3 1,100 MCF/D D. Flow Station No. 1 1,000 MCF/D E. Flow Station No. 2 1,000 MCF/D F. Flow Station No. 3 1,000 MCF/D G. Field Fuel Gas Unit & Central Compressor Plant 1,000 MCF/D H. Central Gas Facility 3,000 MCF/D (Source: C.O. 219, Rule 1) Page 9 Prudhoe Oil Pool i' Consolidated Conservation Order August 29, 1994 DRAFT After the commencement of any flaring incident at any facility arising from .an.emergency or operational necessity, the Operator shall take the following action: Initiate appropriate action and procedures so that flaring can be terminated as soon as reasonably possible and the flaring can be minimized during the flaring period. ~,2~ Production shall be curtailed to minimize flaring as soon as reasonably possible. (Source: C.O. 145A, Rule 2) Flaring as a result of an emergency or operational necessity shall not be permitted longer than a total of twelve (12) hours after the commencement of each such incident without approval of the Cc,~,ktcc Commission or its designated representative. (Source: C.O. 145A, Rule 3) Upon the request of the Operator to flare for more than a total of twelve (12) hours, a member of the Cc~n',~'nittcc Commission or its designated representative may verbally approve the request for a period not to exceed five (5) days beyond the twelve (12) hour period provided for in Rulc 2 {d) above. The following information shall be given to the Cc, n',ar,~ttcc Commission or its designated representative upon request for such approval: G7. The facility at which the flaring is occurring. Description of the flaring incident and cause. Time of commencement. Estimated time of termination. Volume of gas flared. Estimate of gas volume to be flared. Action being taken to minimize and eliminate flaring. (Source: C.O. 145A, Rule 4) A request in writing must be submitted by the Operator in order to obtain written administrative approval to flare beyond the period provided in R-Oe4 (e) above. (Source: C.O. 145A, Rule 5) On a monthly basis the Operator shall submit a written report to the Carr,~i~cc Commission on all flaring incidents that result from an emergency or operational necessity. The report shall be due by the 20th day of the month following the reporting month. The report shall contain the following information for each flaring incident: t)4. The facility at which the flaring occurred. Time of commencement and termination of flaring. Description of the flaring incident and cause. Volume of gas flared. Action taken to eliminate the cause for the flaring incident. (Source: C.O. 145A, Rule 6) Page 10 Prudhoe Oil Pool l' Consolidated Conservation Order August 29, 1994 DRAFT (h) Following a ten (10) day notice to the operator of any production facility the Carr~T.:.ttcc Commission may change the volumes of gas allowed to be flared for safety. (Source: C.O. 145A, Rule 7) Rule 17 Annual Surveillance Reporting (ref. C.O. 165, 186, 195, 208, 223,224, 279, AA 279.1) An annual Prudhoe Oil Pool surveillance report will be required by April 1 of each year. The report shall include but is not limited to the following: Progress of enhanced recovery project(s) implementation and reservoir management summary including engineering and geotechnical parameters. . Voidage balance by month of produced fluids, oil, water and gas, and injected fluids, gas, water, low molecular weight hydrocarbons, and any other injected substances (which can be filed in lieu of monthly Forms 10-413 for each EOR pro.iect).. (Source C.O. 279, Rule 7 and A.A. 279.1 excerpt from paragraph 3) [ 5 ] 3. Analysis of reservoir pressure surveys within the field. . Results and where appropriate, analysis of production logging surveys, tracer surveys and observation well surveys. o Results of gas movement and gas-oil contact surveillance efforts including a summary of wells surveyed and analysis of gas movement within the reservoir. The analysis shall include map(s) and/or tables showing the locations of various documented gas movement mechanisms as appropriate. (Source: C.O. 279, Rule 7) Upon its own motion or upon written request, the Commission may administratively amend this c, rdcr rule so long as the change does not promote waste nor jeopardize correlative fights and is based on sound engineering principles. (Source: C.O. 279, Rule 8) Rule 18 Prudhoe Bay Miscible Gas Pro,iect.(.P. BMGP) (ref. C.O. 195, 290) Expansion of the PBMGP and infill expansion of miscible gas injection in the NWFB is approved for the 58,600 acre portion of the Prudhoe Oil Pool defined in the record. (Source: C.O. 290, Rule 1) An annual report submitted to the Commission detailing performance of the PBMGP and outlining compositional information for the current miscible iniectant [MI~ necessary to maintain miscibility under anticipated reservoir conditions. (Source: C.O. 290, Rule 2) Page 11 Prudhoe Oil Pool Consolidated Conservation Order August 29, 1994 DRAFT The operator will maintain a pressure differential of at least 250 psi between the minimum miseibilit~ pressure ~/IMPI of the MI and the prevailing reservoir pressure at the time of injection. This differential is based on a projected prevailing reservoir pressure decline of no more than 30 psi/year over the life of the project. (Source: C.O. 290, Rule 4) The operators are directed to continue investigating options to mitigate pressure decline and to provide an annual progress report to the Commission. (Source: C.O. 290, Rule 5) Upon its own motion or upon written request, the Commission may amend this ordcr rul._~e by administrative action if the change does not promote waste, violate correlative rights, nor jeopardize ultimate recovery, and is based on sound engineering principles. (Source: C.O. 290, Rule 6) Rule 19 Waiver of GOR Limitation (ref. 8/22/86 letter) ~'~^'^~'~ *"' *~':~ '^++^~ [T]he Commission -,,~,,. .... , ~ ,,.o ........ ...... ~ ......... for ~1 oil wells in the Pmdhoe Oil Pool of the Pmdhoe Bay Field so long as the gas ~om the wells is being returned to the pool, or so long as the additional recove~ prQect is in operation. (Source: Letter 8/22/86, L. Smith to Hei~e~elson, paragraph 3) [ 8 ] Rule 20 Waiver of Application for Sundry Approval Requirement for W0rk0ver Operations (ref. C.O. 258) The requirements of 20 AAC 25.280(a) are waived for those wells in the Prudhoe Oil Pool of the Prudhoe Bay Field. (Source: C.O. 258) Rule 21 Waterfloodin~ (ref. 3/20/81 letter Hamilton to Nelson/Norgaard) The Commission approves you~ the December~ 1980 additional recovery application for waterflooding in the Pmdhoe Oil Pool _.:,u..,,, ,~..,,,,~ c~,,,,~,,,~,,,.,~:_~ ~,,~,,,,,,,,~,,o.~':"'"~': .... subject to the requirements listed in Rule 17 above. Page 12 Prudhoe Oil Pool { Consolidated Conservation Order August 29, 1994 DRAFT Any proposed changes must be submitted to the Commission for approval. (Source: Letter 3/20/81, Hamilton to Nelson/Norgaard, paragraph 3 - 7) [ 8 ] Page 13 Prudhoe Oil Pool ii Consolidated Conservation Order August 29, 1994 DRAFT Field Rule Consolidation Notes on Items to be Resolved: Items appearing in bold underline are wording changes or additions to make the rule read as part of the current document,oe*'~"^L.,,,,, ,t.L,,.,~,~,.o~.~ represent words left out to make the context relevant to the current document or situation. [11 Page 1, Explanatory Note: The wording in this section needs to be finalized, the first paragraph was suggested by Exxon and is acceptable to the ARCO and BP members of the work group. Changes 8/23/94 Reworded paragraph 1, add Conservation Order and number 333 to list in paragraph 2, reword paragraph 3 and add wording about affected area changes in a fourth paragraph of explanatory note. [21 Page 2, Affected Area: The area descriptions listed in Bold reflect the current definition of the Initial Participating Area (based on letter from K. Brown to Nelson and Heinze, 3/21/86, with table attached entitled Prudhoe Bay Unit Oil Rim and Gas Cap Participating Areas as of 12:01 a.m., September 1, 1985), the basis used in C. O. 145 for defining the Affected Area. An action to update the description of the Affected Area could take place at any time, based on the authority in the Rule 12. These changes are listed since this action may take place prior to the consolidation, however if there is no official action, the entries in Bold will be removed. Changes 8/23/94 Updated IPA (Oil and Gas Rim Participating areas) according to letter of 11/20/87, Wade and Nelson to Eason, Re: Prudhoe Bay Unit Exhibits, Exhibit C Part I and Part II. [31 Page 5, Rule 5 Automatic Shut-In Equipment: A formal revision to Rule 5 is expected to be enacted prior to the consolidation. The revised wording will be substituted for this text if/when that action takes place. [Wording from C.O. 333 was inserted into the Consolidated Conservation OrderI [41 Page 6 & 7, Rules 7 and 10: The entire text and scope of these two Rules originally contained in C. O. 145 has been revised and ultimately repealed by later Conservation Orders. References to these Rules have been left in this draft to avoid confusion and to acknowledge the history of these Rules. The work group realizes that there may be some value to maintaining these references, however they add clutter to the document. The ARCO and BP members of the work group recommend that appropriate references be included in the Findings and/or Conclusions sections of a Consolidated Order, but that the actual text not Page 14. Prudhoe Oil Pool Consolidated Conservation Order August 29, 1994 DRAFT contain these sections and the Rules be renumbered to make the document more usable in the future. IS] Pages 7 & 11, Rules 9a, l la and 17a2: These sections contain wording which waive the requirements in each rule in certain specific circumstances and have application to future field operations or to future reporting. These waivers were granted by the AOGCC as Administrative Approvals. The wording was taken fi-om the AA's and is included to make the document more usable for the future by listing all pertinent requirements and exclusions in one place. The ARCO and BP members of the work group recommend that these actions be included in the text of the Consolidated Order and an explanation be included in the Findings and/or Conclusions. Changes 8/23/94 Rule 9 (a) second paragraph changed to generalized wording to account for exclusion areas. Rule 11 (a) - no change. Rule 17 (a) 2. - no change. [61 Page 2, Rule 12 Changing the Affected Area: This rule could be combined with Rule 1 to keep all references to definition of the Pool in one location in the Order. The ARCO and BP members of the work group recommend Rule 12 be combined with Rule 1 to simplify and streamline the document. Changes 8/23/94 Left wording as in last draft dated 5/19/94. [71 Pages 8, Rule 13 Orders Canceled and Rule 14 Approvals Redesignated: These Rules refer to actions surrounding the adoption of C. O. 145. The work group realizes that there may be some value to maintaining these references, however they add clutter to the document. The ARCO and BP members of the work group recommend that appropriate references be included in the Findings and/or Conclusions sections of a Consolidated Order and the specific orders referenced be included in the list on Page 1, but that the actual text not contain these sections. The Rules would then be renumbered. Changes 8/23/94 Left wording as in last draft dated 5/19/94. [81 Page 12, Rules 19 and 21: These sections are included for completeness to acknowledge two actions approved by letter rulings fi-om the AOGCC. The ARCO and BP members of the work group recommend these actions be included in the text of the Consolidated Order and an explanation be included in the Findings and/or Conclusions. Page 15 Prudhoe Oil Pool Consolidated Conservation Order August 9~9, 1994 DRAFT Changes 8/23/94 Rule 19 - Left wording as in last draft dated 5/19/94. Rule 21 - added December, 1980 to paragraph 1. Added "for approval" in first sentence and struck last sentence of paragraph 4. [ 9 ] Page 12, Rule 22: This section was proposed by Exxon. The ARCO and BP members of the work group do not endorse inclusion of this proposed Rule in the consolidation. Changes 8/23/94 Deleted Rule 22 from the Consolidated Conservation Order. [ 10 ] Moved Rule 8 into Rule 16 and made it section (a). Relettered subsequent sections from (a) - (g) to (b) - (h). Changed internal references to reflect section letters. Work Group Members: Jack Hartz, AOGCC Mike Bill, ARCO Randy Frazier, BP Page 16 Tract No. 4./ 5/ 6v 7/` s,/' 10 14 15 16 17 18 19 2O 21 22 23 24 25 26 27 28 29 31 32 EXHIBIT A PRUDHOE BAY UNIT AGREEMENT STATE OF ALASKA MARCH 9,1994 Lease No. Description Acres Base (Umiat Meridian, Alaska) Royalty Lessee of O.R.R. Record Interest ADL 034625 T12N-R15E, Sec. 23 S/2 Sec. 24 SW/4 ADL 034626 T12N-R15E, Sec. 21: SW ADL 034627 T12N-R15E, Secs. 18,19,20:S/2 ADL 034624 T12N-R14E, Secs. 13,14,23,24 ADL 028297 T12N-R14E, Secs. 15,16,21:N/2NE/4 Sec. 22 ADL 047469 T12N-R13E, Secs. 19,20 ADL 047448 T12N-R12E, Secs. 23,24 ADL 047447 T12N-R11E, Secs. 15,16,21,22 ADL 047446 T12N-R11E, Secs. 17,18,19,20 ADL 025637 T12N-R10E, Secs. 13,24 ADL 047449 T12N-R11E, Secs. 29,30,32 ADL 028239 T12N-R11E, Secs. 27,28,33,34 ADL 028238 T12N-R11E, Secs. 25,26,35,36 ADL 028259 T12N-R12E ADL 028258 T12N-R12E ADL 028257 T12N-R12E ADL 028279 T12N-R13E Secs. 29,30,31,32 Secs. 27,28,33,34 Secs. 25,26,35,36 Secs. 29,30,31,32 ADL 028278 T12N-R13E, Secs. 27,28,33,34 ADL 028277 T12N-R13E, Secs. 26,35,36 ADL 028299 T12N-R14E, Secs. 29,31,32 ADL 028300 T12N-R14E, Secs. 27,28,33,34 ADL 028301 T12N-R14E, Secs. 25,26,35,36 ADL 034628 T12N-R15E, Secs. 29,30,31,32 ADL 034629 T12N-R15E, Secs. 27,28,33,34 ADL 034630 T12N-R15E, Secs. 25,26,35,36 ADL 034635 T12N-R16E, Secs. 29,30,31,32 480.00 160.00 1,488.00 2,560.00 2,000.00 1 225.00 1 280.00 2,560.00 2,448.0O 1 28O.OO 1 868.OO 2,560.00 2,560.00 2,459.00 2,560.00 2,56O.OO 2,459.00 2,560.00 1,920.00 1,871.00 2,56O.0O 2,560.00 2,459.00 2,560.00 2,560.00 2,459.00 12.50% BP Exploration 12.50% ARCO & Exxon 12.50% ARCO & Exxon 12.50% ARCO & Exxon 12.50% ARCO & Exxon 12.50% Mobil & Phillips 12.50% Mobil & Phillips 12.50% Mobil & Chevron 12.50% Mobil & Chevron 12.50% ARCO & BP Exploration 12.50% Mobil & Chevron 12.50% ARCO & Exxon 12.50% ARCO & Exxon 12.50% ARCO & Exxon 12.50% ARCO&Exxon 12.50% Mobil & Phillips 12.50% BP Exploration 12.50% BP Exploration 12.50% BP Exploration 12.50% ARCO & Exxon 12.50% ARCO & Exxon 12.50% ARCO & Exxon 12.50% ARCO & Exxon 12.50% ARCO & Exxon 12.50% BP Exploration 12.50% BP Exploration Working Interest Ownership BP Exploration-100% ARCO-50% Exxon-50% ARCO-50% Exxon-50% ARCO-50% Exxon-50% ARCO-50% Exxon-50% Mobil-50% Phillips-50% Mobil-66-2/3% Phillips-33-1/3 Mobil-50% Chevron-50% Mobil-50% Chevron-50% ARCO-50% BP Exploration-50% Mobil-50% Chevron-50% ARCO-50% Exxon-50% ARCO-50% Exxon-50% ARCO-50% Exxon-50% ARCO-50% Exxon-50% Mobil-50% Phillips-50% BP Exploration-100% BP Exploration-100% BP Exploration-100% ARCO-50% Exxon-50% ARCO-50% Exxon-50% ARCO-50% Exxon-50% ARCO-50% Exxon-50% ARCO-50% Exxon-50% BP Exploration-100% BP Exploration-100% Page A-1 Tract No. 33 36 37 38 39 4O 41 42 43 44 45 46 47 48 49 50 51 52 53 54' 54A 55 55A 56 57 58 59 60 EXHIBIT A PRUDHOE BAY UNIT AGREEMENT STATE OF ALASKA MARCH 9,1994 Lease No. Description Acres Base Lessee of O.R.R. (Umiat Meridian, Alaska) Royalty Record Interest ADL 034634 T12N-R16E, ADL 028337 T11N-R16E, ADL 028338 T11N-R16E, ADL 028320 T11N-R15E, ADL 034631 T11N-R15E, Secs. 28,33 SW/4, 1,560.00 W/2NW/4, SW/4SE/4 Sec. 34 Secs. 3,4,9,10 2,560.00 Secs. 5,6,7,8 2,469.00 Secs. 1,2,11,12 2,560.00 Secs. 3,4,9,10 2,560.00 ADL 034632 T11N-R15E, Secs. 5,6,7,8 ADL 028302 T11N-R14E, Secs. 1,2,11,12 ADL 028303 T11N-R14E, Secs. 3,4,9,10 ADL 028304 T11N-R14E, Secs. 5,6,7,8 ADL 028280 T11N-R13E, ADL 028281 T11N-R13E, ADL 028282 T11N-R13E, ADL 028260 T11N-R12E, ADL 028261 T11N-R12E, Secs. 1,2,11,12 Secs. 3,4,9,10 Secs. 5,6,7,8 Secs. 1,2,11,12 Secs. 3,4,9,10 ADL 047450 T11N-R12E, Secs. 5,6,7,8 ADL 028240 T11N-R11E, Secs. 1,2,11,12 ADL 028241 TllN-R11E, Secs. 3,4,9,10 ADL028244 TllN-R11E, Sec. 15 ADL 028245 T11N-R11E, Secs. 13,14,24 ADL 028262 T11N-R12E, Secs. 17,18,19 ADL 028262 T11N-R12E, Sec. 20 ADL 028263 T11N-R12E, Secs. 15,16 ADL 028263 T11N-R12E, Secs. 21,22 ADL 047451 T11N-R12E, Secs. 13,14,23,24 ADL 028283 T11N-R13E, Secs. 17,18,19,20 ADL 028284 T11N-R13E, Secs. 15,16,21,22 ADL 028285 T11N-R13E, Secs. 13,14,23,24 ADL 028305 T11N-R14E, Secs. 17,18,19,20 12.50% BP Exploration 2,469.00 2,560.00 2,560.00 2,469.00 2,560.00 2,560.00 2,469.00 2,560.00 2,560.00 12.50% BP Exploration 12.50% BP Exploration 12.50% BP Exploration 12.50% ARCO & Exxon 12.50% ARCO & Exxon 12.50% ARCO&Exxon 12.50% ARCO & Exxon 2.50% ARCO & Exxon 12.50% BP Exploration 12.50% BP Exploration 12.50% BP Exploration 12.50% BP Exploration 12.50% Mobil & Phillips 2,469.00 12.50% Mobil, Phillips Chevron 2,560.00 12.50% ARCO & Exxon 2,560.00 640.00 1,920.00 1,840.00 640.00 1,280.00 1,280.00 2,560.00 2,480.00 2,560.00 2,560.00 2,480.00 12.50% Mobil & Phillips 12.50% ARC© & Exxon 12.50% ARCO & Exxon 12.50% Chevron 12.50% Mobil, Phillips, Chevron 12.50% Mobil & Phillips 12.50% Mobil, Phillips, Chevron 12.50% Mobil, Phillips, Chevron 12.50% BP Exploration 12.50% BP Exploration 12.50% BP Exploration 12.50% BP Exploration Working Interest Owners_~.~_~hi BP Exploration-100% BP Exploration-100% BP Exploration-100% BP Exploration-100% ARCO-50% Exxon-50% ARCO-50% Exxon-50% ARCO-50% Exxon-50% ARCO-50% Exxon-50% ARCO-50% Exxon-50% BP Exploration-100% BP Exploration-100% BP Exploration-100% BP Exploration-100% Mobil-50% Phillips-50% Mobil-33-1/3% Phillips-33-1/3% Chevron-33-1/3% ARCO-50% Exxon-50% Mobil-50% Phillips-50% ARCO-50% Exxon-50% ARCO-50% Exxon-50% Chevron-100% Mobil-33-1/3% Phillips-33-1/3% Chevron-33-1/3% Mobil-50% Phillips-50% Mobil-33-1/3% Phillips-33-1/3% Chevron-33-1/3% Mobil-33-1/3% Phillips-33-1/3% Chevron-33-1/3% BP Exploration-100% BP Exploration-100% BP Exploration-100% BP Exploration-100% Page A-2 Tract No. 61 62 63 64 65 66 66A 67 67A 69 69A 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 EXHIBIT A i" PRUDHOE BAY UNIT AGREEMENT STATE OF ALASKA MARCH 9,1994 Lease No. Description Acres Base Lessee of O.R.R. (Umiat Meridian, Alaska) Royalty Record Interest ADL 028306 TllN-R14E, Secs. 15,16,21,22 ADL 028307 TllN-R14E Secs. 13,14,23,24 ADL 028321 TllN-R15E, Secs. 17,18,19,20 ADL028322 TllN-R15E Secs. 15,16,21,22 ADL 028323 TllN-R15E, Secs. 13,14,23,24 ADL 028339 T11N-R16E, Secs. 17,18,19 ADL 028339 T11N-R16E, Sec. 20 ADL 028340 TllN-R16E, Secs. 15,16 ADL 028340 TllN-R16E, Sec. 21 ADL 028343 T11N-R16E, Secs. 30,31,32 ADL 028343 T11N-R16E, Sec. 29 ADL 028324 T11N-R15E, Secs. 25,26,35,36 ADL 028325 T11N-R15E, ADL 028326 T11N-R15E ADL 028308 T11N-R14E, ADL 028309 T11N-R14E, ADL 028310 T11N-R14E, ADL 028286 T11N-R13E, ADL 028287 T11N-R13E, ADL 028288 T11N-R13E, Secs. 27,28,33,34 Secs. 29,30,31,32 Secs. 25,26,35,36 Secs. 27,28,33,34 Secs. 29,30,31,32 Secs. 25,26,35,36 Secs. 27,28,33,34 Secs. 29,30,31,32 ADL 028264 T11N-R12E, Secs. 25,26,35,36 ADL 047452 TllN-R12E, Secs. 27,28,33,34 ADL 047453 T11N-R12E, Secs. 29,30,31,32 ADL 028246 T11N-R11E, Sec. 25 ADL 047454 T10N-R12E, Secs. 3,4,10 ADL 028265 T10N-R12E, Secs, 1,2,11,12 ADL 028289 T10N-R13E, Secs. 5,6,7,8 2,560.00 2,560.00 2,480.00 2,560.00 2,560.00 1 840.00 640.00 1 280.00 640.00 1,851.00 640.00 2,560.00 ..2,560.00 2,491.00 2,560.00 2,560.00 2,491.00 2,560.00 2,560.00 2,491.00 2,560.00 2,560.00 2,491.00 640.00 1,920.00 2,560.00 12.50% ARCO & Exxon 12.50% ARCO & Exxon 12.50% ARCO & Exxon 12.50% ARCO & Exxon 12.50% ARCO & Exxon 12.50% BP Exploration 12.50% BP Exploration 12.50% BP Exploration 12.50% BP Exploration 12.50% BP Exploration 12.50% BP Exploration 12.50% ARCO & Exxon 12.50% ARCO & Exxon 12.50% ARCO&Exxon 12.50% ARCO & Exxon 12.50% BP Exploration 12.50% BP Exploration 12.50% BP Exploration 12.50% BP Exploration 12.50% Mobil & Phillips 12.50% ARCO & Exxon 12.50% Mobil, Phillips, Chevron 12.50% Mobil, Phillips, Chevron 12.50% ARCO & Exxon 12.50% Mobil, Phillips, Chevron 12.50% ARCO & Exxon 2,501.00 12.50% Mobil & Phillips Working Interest Ownership ARCO-50% Exxon-50% ARCO-50% Exxon-50% ARCO-50% Exxon-50% ARCO-50% Exxon-50% ARCO-50% Exxon-50% BP Exploration-100% BP Exploration-100% BP Exploration-100% BP Exploration-100% BP Exploration-100% BP Exploration-100% ARCO-50% Exxon-50% ARCO-50% Exxon-50% ARCO-50% Exxon-50% ARCO-50% Exxon-50% BP Exploration-100% BP Exploration-100% BP Exploration-100% BP Exploration-100% Mobil-50% Phillips-50% ARCO-50% Exxon-50% Mobil-33-1/3% Phillips-33-1/3% Chevron-33-1/3% Mobil-33-1/3% Phillips-33-1/3% Chevron-33-1/3% ARCO-50% Exxon-50% Mobil-33-1/3% Phillips-33-1/3% Chevron-33-1/3% ARCO-50% Exxon-50% Mobil-50% Phillips-50% Page A-3 Tract No~ 86 87 88 89 90 91 92 93 94 95 97 98 99 100 101 102 103 104 105 106 107 107A 108 109 109A EXHIBIT A ~" PRUDHOE BAY UNIT AGREEMENT STATE OF ALASKA MARCH 9,1994 Lease No. Description Acres Base Lessee of O.R.R. (Umiat Meridian, Alaska) Royalty Record Interest ADL 047471 T10N-R13E, Secs. 3,4,9,10 ADL 047472 T10N-R13E, Secs. 1,2,11,12 ADL 028313 T10N-R14E, Secs. 5,6,7,8 ADL 028312 T10N-R14E, Secs. 3,4,9,10 ADL 028311 T10N-R14E, Secs. 1,2,11,12 ADL 028329 T10N-R15E, Secs. 5,6,7,8 ADL 028328 T10N-R15E, Secs. 3,4,9,10 ADL 028327 T10N-R15E, Secs. 1,2,11,12 ADL 028345 T10N-R16E, Secs. 5,6,7,8 ADL 028344 T10N-R16E, Sec. 4 ADL 028346 T10N-R16E, Secs. 17,18,19,20 ADL 028332 T10N-R15E, Secs. 13,14,23,24 ADL 028331 T10N-R15E, Secs. 15,16,21,22 ADL 028330 T10N-R15E, Secs. 17,18,19,20 ADL 028315 T10N-R14E, Secs. 13,14,23,24 ADL 028314 T10N-R14E, Secs. 15,16,21,22 ADL 047475 T10N-R14E, Secs. 17,18,19,20 ADL 047476 T10N-R13E, Secs. 13,14,24 ADL 028290 T10N-R131::, Secs. 15,16 ADL 080595 T10N-R14E, Secs. 27,28 ADL 028316 T10N-R14E, Secs. 26,36 ADL 028316 T10N-R14E, Sec. 25 ADL 028335 T10N-R15E, Secs. 29,30,31,32 ADL 028334 T10N-R15E, Secs. 33,34 ADL 028334 T10N-R15E, Secs. 27,28 2,560.00 12.50% 2,560.00 12.50% 2,501.00 12.50% 2,560.00 12.50% 2,560.00 12.50% 2,501.00 12.50% 2,560.00 12.50% 2,560.00 12.50% 2,501.00 12.50% 640.00 12.50% 2,512.00 12.50% 2,560.00 12.50% 2,560.00 12.50% 2,512.00 12.50% 2,560.00 12.50% 2,560.00 12.50% 2,512.00 12.50% 1,920.00 12.50% 1,280.00 '12.50% 1,280.00 12.50% 1,280.00 12.50% 640.00 12.50% 2,523.00 12.50% 1,280.00 12.50% 1,280.00 12.50% Amerada Hess LL&E Shell Texaco Amerada Hess Texaco ARCO & Exxon BP Exploration BP Exploration ARCO & Exxon ARCO & Exxon ARCO & Exxon ARCO & Exxon ARCO & Exxon ARCO & Exxon ARCO & Exxon BP Exploration BP Exploration BP Exploration Mobil & Phillips Amerada Hess Marathon Shell Texaco ARCO & Exxon Mobil & Phillips ARCO & Exxon Chevron Mobil, Phillips, Chevron BP Exploration Mobil & Phillips Mobil, Phillips, Chevron Working Interest Ownership Amerada-27% LL&E-13.25% She11-29.25% Texaco-30.5% Amerada-50% Texaco-50% ARCO-50% Exxon-50% BP Exploration-100% BP Exploration-100% ARCO-50% Exxon-50% ARCO-50% Exxon-50% ARCO-50% Exxon-50% ARCO-50% Exxon-50% ARCO-50% Exxon-50% ARCO-50% Exxon-50% ARCO-50% Exxon-50% BP Exploration-100% BP Exploration-100% BP Exploration-100% Mobil-50% Phillips-50% Amerada-25% Marathon-25% Shell-25% Texaco-25% ARCO-50% Exxon-50% Mobil-50% Phillips-50% ARCO-50% Exxon-50% Chevron- 100% Mobil-33-1/3% Phillips-33-1/3% Chevron-33-1/3% BP Exploration-100% Mobil-50% Phillips-50% Mobil-33-1/3% Phillips-33-1/3% Chevron-33-1/3% Page A-4 Tract No~ 110 111 112 113 114 115./' 116¢ 117J EXHIBIT A PRUDHOE BAY UNIT AGREEMENT STATE OF ALASKA MARCH 9,1994 Lease No. Description Acres Base Lessee of (Umiat Meridian, Alaska) Royalty Record ADL 028333 T10N-R15E, ADL 028349 T10N-R16E, ADL 028275 T12N-R13E, Secs. 25,26,35,36 Secs. 29,30,31 Secs. 21,22 ADL 028276 T12N-R13E, Sec. 23 ADL 028342 T11N-R16E, ADL 028298 T12N-R14E ADL 034622 T12N-R14E, ADL 365548 T12N-R14E T12N-R15E Secs. 28,33 Secs. 17: N/2,N/2SE/4, NE/4SW/4, excluding USS 4044 Secs. 3,4,9,10 Secs. 1,2,11,12 Secs. 6,7 within 3 mile limit Total PBU Unitized Acreage 2,560.00 12.50% BP Exploration 1,883.00 12.50% BP Exploration 1,280.00 12.50% ARCO & Exxon 640.00 12.50% ARCO & Exxon 1,280.00 12.50% BP Exploration 312.00 12.50% ARCO & Exxon 2,560.00 12.50% Exxon 3,601.00 16.67% BP Exploration 240,875.00 O.R.R. Interest Working Interest Ownership BP Exploration-100% BP Exploration-100% ARCO-50% Exxon-50% ARCO-50% Exxon-50% BP Exploration-100% ARCO-50% Exxon-50% Exxon-100% BP Exploration -100% LEGEND: Amerada Hess - Amerada Hess Corporation ARCO - ARCO Alaska, Inc. BP Exploration - BP Exploration (Alaska) Inc. Chevron - Chevron U.S.A., Inc. Exxon - Exxon Corporation LL&E - The Louisiana Land and Exploration Company Marathon - Marathon Oil Company Mobil- Mobil Oil Corporation Phillips - Phillips Petroleum Company Shell - Shell Western E&P Inc. Texaco - Texaco Exploration & Production Inc. Page A-5 Tract No. Lease No. EXHIBIT A i PHUDHOE BAY UNIT AGREEMENT STATE OF ALASKA MARCH 9,1994 Description Acres Base Lessee of O.R.R. (Umiat Meridian, Alaska) Royalty Record Interest Working Interest Ownership_ Page A-6 MEMORANDUM S(". te of Alaska Department of Law TO: Jack Hartz Alaska Oil & Gas Conservation Commission Anchorage DATE: FILE NO.: TEL. NO.: February 23, 1994 661-94-0516 269-5255 FROM: Robert E. Mintz ~~ Assistant Attorney General Oil, Gas, & Mining Section Anchorage SUBJECT: Prudhoe Oil Pool Rules Consolidation CONFIDENTIAL - ATTORNEY CLIENT PRIVILEGE Your memorandum dated January 24, 1994, asked a number of questions about the project to consolidate the various Prudhoe Pool rules and administrative approvals in a single order. Here are my thoughts on this subject. 1. Since previous Commission actions that you wish to reflect in a consolidated document are mostly formal conservation orders, and since the Commission presumably wishes for the new consolidated document to have legal effect -- rather than being merely a sort of index to existing orders -- it makes sense that the consolidated document should be a new conservation order. I believe that conservation orders are invariably issued following public notice and opportunity for hearing, pursuant to AS 31.05.050 and 31.05.060, and that conservation orders establishing pool rules in particular are invariably preceded by a public hearing, pursuant to 25 AAC 25.520. Even if you are not intending to change any of the substance of existing orders and approvals, it would be wise to follow the normal pool rule conservation order procedures in adopting a conservation order consolidating those existing orders and approvals. This would give interested persons the chance, for instance, to point out where they believe the proposed consolidation may inadvertently alter the substantive effect of existing requirements. Assuming that the goal of the current project is only to consolidate existing rules and not to change them, the purpose of the hearing would not be to take testimony on the merits of any of the Prudhoe pool rules or to provide evidentiary support for them, but merely to take testimony on the Commission's success in accurately and completely consolidating the existing rules and approvals in a new single conservation order. 2. Regarding the two letters you provided, which authorized the waterflood project and granted an exception to the GOR limitation, I think that it would be desirable to incorporate these decisions into the consolidated pool rules, given the basic goal of putting all the relevant rules in one place. If it is possible that the Commission may lat~r~%u~m~%~~evoke the GOR Kbt lVCU 03-002 FEB 2 8 1994 Oil & Gas Cons. Commission/x~ printed on recycled paper by,~ Anchoraoe TO: Jack Hartz RE: Alaska Oil Pool Rules Consolidation February 23, 1994 Page -2- exception, perhaps the consolidated order should specify that the exception is subject to revocation if and when the Commission determines that is appropriate. 3. Ideally, each provision of the rule should be followed by a citation to its source or sources in previous Commission actions. In addition, the new order should include a complete list of all of the previous actions that are being consolidated (and superseded -- see below), so that there will be no confusion or uncertainty as to the scope of the consolidation. 4. I don't know why it would be necessary to refer specifically to the old hearing records and applications. The consolidated order should simply state that its sole purpose is to consolidate in one new order all of the currently effective provisions of previous orders and actions establishing or implementing Prudhoe Pool Rules, not to make substantive changes in those provisions, and that the Commission is continuing to rely for purposes of the consolidated order on the original records and data that supported the decisions that are being consolidated. The Commission might also add that either on its own motion or the motion of another person it may consider substantive changes to the pool rules in the future, at which time it would look at new evidence. 5. It might also be good to state in the order that it supersedes the previous orders and actions prospectively as of the effective date of the consolidated order, but that any issues that may arise as to a person's earlier activities, e.g., past compliance with pool rules, will be governed by the orders and actions that were in effect at the time. As pointed out above, the consolidated order needs to list all of the previous orders and actions that are being superseded. REM:ars Bill Sheffield, Governor ALASKA OIL AND GAS CONSERVATION COMMISSION August 22, 1986 3001 PORCUPINE DRIVE ANCHORAGE. ALASKA 99501-3192 TELEPHONE (907) 279-1433 Telecopy No. (907) 276-7542 H. C. Heinze President ARCO Alaska, Inc. P. O. Box 100360 Anchorage, AK 99510-0360 G. N. Nelson Pres ident Standard Alaska Production Company P. O. Box 196612 Anchorage, AK 99519-6612 Re: Uaiver of GOR Limitation Gentlemen: By your letter dated August 12, 1986, ARCO Alaska, Inc. and Standard Alaska Production Company have requested a waiver from- the gas-oil ratio (GOR) regulation, 20 AAC 25.240(b), to allow production of Prudhoe Oil Pool wells with GOR's greater than 100% ,of the solution GOR. It is understood that under pool developmemt plans already approved, you are injecting produced gas into the gas cap, and that an additional recovery project is in operation. Therefore, by this letter the Commission hereby waives the requirements of 20 AAC 25.240(b) of the regulations for all oil wells in the Prudhoe Oil Pool of the Prudhoe Bay Field so long as the gas from the wells is being returned .to the pool, or so long as the additional recovery project is in operation. ~~C .~, ~~~ :.h~.~Sincerely, Commissioner BY ORDER OF THE COMMISSION jo/F.LCS.6 RECEIVED DEC 1 7 1993 A~,ska UII & Gas Cons. Commission Anchorage W. E. Wade, President ARCO Alaska, Inc. P. O. Box 100360 Anchorage, AK 99510-0360 G. N. Nelson, President Standard Alaska Production Co. P. O. Box 196612 Anchorage, AK 99519-6612 HAND DELIVERED November 20, 1987 James E. Eason, Director Division of Oil and Gas Alaska Department of Natural Resources P. O. Box 7034 Anchorage, Alaska 99510-7034 Re: Prudhoe Bay Unit Exhibits Dear Mr. Eason: In accordance with your letter to ARCO Alaska, Inc. of September 24, 1987, approving expansion of the Prudhoe Bay Unit Oil Rim Participating Area to include Tract 106 and in order to update the Prudhoe Bay Unit exhibits to incorporate other approved changes, we are submitting the following exhibits to the Prudhoe Bay Unit Agreement and Unit Operating Agreement: Exhibit A Schedule of Tracts in Unit Area which shows among . other things the ownership of Oil and Gas Rights in each Tract. ..~/The February 1986 version of Exhibit A has been revised to depict the exclusion of Tracts 1, 2, 3, 11, 12, 13, 35, 68, S 1/2 95 and 96, which were excluded from the Unit as of April 1, 1987. The lessee of record for Tracts 86, 87 and 103 has been changed from Getty to Texaco. Exhibit B Map depicting boundary line of the Unit Area and Tracts therein. The February 1986 small version of Exhibit B has been changed to delete from the Unit the excluded Tracts named in Exhibit A above and to show the change from Getty to Texaco. James E. Eason, Director November 20, 1987 Page 2 Exhibit C Schedule of Oil Rim and Gas Cap Participating Areas. Part I, Oil Rim Participating Area, of the November 1985 version of Exhibit C has been revised to depict the~ inclusion of Tract 106 with a Tract Participation of 0.0000019 and the revised Tract Participation for Tract 104 from 0.0028080 to 0.0028061. Exhibit D Two maps (D-1 and D-2) depicting the Oil Rim and Gas Cap Participating Areas. The February 1986 small versions of Exhibits D-1 and D-2 have been revised to depict the deletion from the Unit of the excluded Tracts named in Exhibit A above and to show the change from Getty to Texaco. Exhibit D-1 has been revised to depict the inclusion of Tract 106 in the Oil Rim Participating Area. - Exhibit F Map depicting Reservoir Limits. The February 1986 small version of Exhibit F has been revised to depict the deletion from the Unit of the excluded Tracts named in Exhibit A above and to show the change from Getty to Texaco. (The depiction of the Reservoir Limits in the February 1986 small version reflected a correction of the October and November 1985 large versions to include data concerning minor reservoirs included in the Prudhoe Bay (Permo-Triassic) Reservoir.) Exhibits B, D-i, D-2 and F Composite Map. The February 1986 small version has been revised to incorporate all of the above changes. Exhibit 26A Area Values The February 1986 version has been revised to show the change from Getty to Texaco. Exhibit 26B Tract Values The February 1986 version has been revised to show the change in the Tract 104 Oil Rim Tract Participation and Tract Investment Cost Allocation from 0.0028080 to 0.0028061. Tract 106 has been included with an Oil Rim Tract Participation and Tract Investment Cost Allocation of 0.0000019. James E. Eason, Director November 20, 1987 Page 3 Exhibit 26C Working Interest Values The February 1986 version has been revised to show the change of the Working Interest Owner of Tracts 86, 87 and 103 from Getty to Texaco. The Tract 104 interests of Arco and Exxon have been changed from 0.0014040 for each to 0.0014030 (Arco) and 0.0014031 (Exxon). The Tract 106 interests of Arco and Exxon have been added as 0.0000010 (Arco) and 0.0000009 (Exxon). The litigation among the Working Interest Owners, which was noted in connection with the November 1985 revisions and the revisions related to Tract 106, is continuing. If you have any questions concerning these exhibits or would like additional copies, please contact Douglas V. Johnson, Arco, 265-6540, or Jeanne H. Dickey, Standard, 564-5018. · Sincerely, jhd/1819r Enclosures cc: Judith A. Brady, Commissioner Department of Natural Resources Prudhoe Bay Unit Working Interest Owners PART EXHIBIT C I -- OIL RIM PARTICIPATING AREA PRUDHOE BAY UNIT AGREEMENT STATE OF ALASKA Tract No. 10 14 15 16 17 18 19 20 21 22 23 24 25 26 ADL No. 47469 47448 47447 47446 25637 47449 28239 28238 28259 28258 28257 28279 28278 28277 28299 Descri ption of Tract Secs. 19, 20 T12N, R13E, UM Secs. 23, 24 T12N, R12E, UM Secs. 15, 16, 21, 22 T12N, RllE, UM Secs. 17, 18, 19, 20 T12N, RllE, UM Secs. 13, 24 T12N, R10E, UM Secs. 29, 30, 32 T12N, RllE, UM Secs. 27, 28, 33, 34 T12N, RllE, UM Secs. 25, 26, 35, 36 T12N, RllE, UM Secs. 29, 30, 31, 32 T12N, R12E, UM Secs. 27, 28, 33, 34 T12N, R12E, UM Secs. 25, 26, 35, 36 T12N, R12E, UM Secs. 29, 30, 31, 32 T12N, R13E, UM Secs. 27, 28, 33, 34 T12N, R13E, UM Secs. 26, 35, 36 T12N, R13E, UM Secs. 29, 31, 32 T12N, R14E, UM Tract Participation Percent 0.0307565 0.0010848 0.0049708 0.0099777 0.0046309 0.0064355 0.0614364 0.0163822 0.0076616 0.4599204 1.7767068 1.2989359 1.0400165 0.8421396 0.9307902 C-1 October 1987 Prudhoe Bay Unit Agreement Tract No. ADL No. _ 27 28300 38 28320 39 34631 40 34632 41 28302 42 28303 43 28304 44 28280 45 28281 46 28282 47 28260 48 28261 49 47450 50 28240 51 28241 52 28244 DescriDtion of Trac~ Secs. 27, 28, 33, 34 T12N, R14E, UM Secs. 1, 2, 11, 12 TllN, R15E, UM Secs. 3, ~, 9, 10 TllN, R15E, UM Secs. 5, 6, 7, 8 TllN, R15E, UM Secs. 1, 2, 11, 12 TllN, R14E, UM Secs. 3, 4, 9, 10 TllN, R14E, UM Secs. 5, 6, 7, 8 TllN, R14E, UM Secs. 1, 2, 11, 12 TllN, R13E, UM Secs. 3, 4, 9, 10 TllN, R13E, UM Secs. 5, 6, 7, 8 TllN, R13E, UM Secs. 1, 2, 11, 12 TllN, R12E, UM Secs. 3, 4, 9, 10 TllN,.R12E, UM Secs. 5, 6, 7, 8 TllN, R12E, UM Sec$. 1, 2, 11, 12 TllN, RllE, UM Secs. 3, 4, 9, 10 TllN, RllE, UM Sec. 15 TllN, RllE, UM Tract Pa.~ticipation Percent 1.0365258 0.3566616 0.2490770 0.1146214 0.3106250 1.9447402 3.2449752 3.8981682 3.3705436 3.0429668 1.4815529 0.0888936 0.0468606 0.0913318 0.0486990 0.0000124 C-2 October 1987 Prudhoe Bay Unit Agreement Tract No. ADL No. 53 28245 54 28262 54A 28262 55 28263 55A 28263 56 47451 57 28283 58 28284 59 28285 60 28305 61 28306 62 28307 63 28321 64 28322 65 28323 66 28339 Description of Tract Secs. 13, 14, 24 TllN, RllE, UM Secs. 17, 181 19 TllN, R12E, UM Sec. 20 TllN, R12E, UM Secs. 15, 16 TllN, R12E, UM Secs. 21, 22 TllN, R12E, UM Secs. 13, 14, 23, 24 TllN, R12E, UM Secs. 17, 18, 19, 20 TllN, R13E, UM Secs. 15, 16, 21, 22 TllN, R13E, UM Secs. 13, 14, 23, 24 TllN, R13E, UM Secs. 17, 18, 19, 20 TllN, R14E, UM Secs. 15, 16, 21, 22 TllN, R14E, UM Secs. 13, 14, 23, 24 TllN, R14E, UM Sec$. 17, 18, 19, 20 TllN, R15E, UM Secs. 15, 16, 21, 22 TllN, R15E, UM Secs. 13, 14, 23, 24 TllN, R15E, UM Secs. 17, 18, 19 TllN, R16E, UM Tract.' Participation Percent 0.1486696 0.2968897 0.0772452 0.1338160 0.2071833 0.1902328 1.5634829 3.3026290 3.9964449 3.6765194 2.9343182 1.8596860 1.1125780 1.0995790 0.7714806 0.0001956 C-3 October 1987 Prudhoe Bay Unit Agreement Tract No. ADL No. 69 28343 70 28324 71 28325 72 28326 73 28308 74 28309 75 28310 76 28286 77 28287 78 28288 79 28264 80 47452 81 47453 82 28246 83 47454 84 28265 Description of Tract Secs. 30, 31, 32 TllN, R16E, UM Secs. 25, 26, 35, 36 TllN, R15E, UM Secs. 27, 28, 33, 34 TllN, R15E, UM Secs. 29, 30, 31, 32 TllN, R15E, UM Secs. 25, 26, 35, 36 TllN, R14E, .UM Secs. 27, 28, 33, 34 TllN, R14E, UM Secs. 29, 30, 31, 32 TllN, R14E, UM Secs. 25, 26, 35, 36 TllN, R13E, UM Secs. 27, 28, 33, 34 TllN, R13E, UM Secs. 29, 30, 31, 32 TllN, R13E, UM Secs. 25, 26, 35, 36 TllN, R12E, UM Secs. 27, 28, 33, 34 TllN, R12E, UM Secs. 29, 30, 31, 32 TllN, R12E, UM Sec. 25 TllN, RILE, UM Secs. 3, 4, 10 T10N, R12E, UM Secs. 1, 2, 11, 12 T10N, R12E, UM Tr3ct' Participation Percent 0.1342393 2.0837850 2.7773702 3.1133992 3.9394274 3.8650657 3.9334322 2.6691922 1.2578240 0.3601455 0.1174944 0.2232645 0.1144260 0.0007026 0.0200389 0.0364292 C-4 October 1987 Prudhoe Bay Unit Agreement Tract No. ADL No. 85 28289 86 47471 87 47472 88 28313 89 28312 90 28311 91 28329 92 28328 93 28327 94 28345 97 28346 98 28332 99 28331 100 28330 101 28315 102 28314 Description of Tract Sec$. 5, 6, 7, 8 T10N, R13E, UM Secs. '3, 4, 9, 10 T10N, R13E, UM Secs. 1, 2, 11, 12 T10N, R13E, UM Secs. 5, 6, 7, 8 T10N, R14E, UM Secs. 3, 4, 9, 10 T10N, R14E, UM Secs. 1, 2, 11, 12 T10N, R14E, UM Secs. 5, 6, 7, 8 T10N, R15E, UM Secs. 3, 4, 9, 10 T10N, R15E, UM Secs. 1, 2, 11, 12 T10N, R15E, UM Secs. 5, 6, 7, 8 T10N, R16E, UM Secs. 17, 18, 19, 20 T10N, R16E, UM Secs. 13, 14, 23, 24 T10N, R15E, UM Secs. 15, 16, 21, 22 T10N, R15E, UM Secs. 17, 18, 19, 20 T10N, R15E, UM Secs. 13, 14, 23, 24 T10N, R14E, UM Secs. 15, 16, 21, 22 T10N, R14E, UM Tr~:~.- Participation Percent 0. 1312435 0.3000685 0.8139925 1.5538656 2.8963363 3. 661'9111 4.1555298 4.0900128 2.7730980 0.5812244 0.2982834 1.6240684 1.5486835 1.4812197 1.2192336 0.4588814 C-5 October 1987 Prudhoe Bay Unit Agreement Tract No. ADL No. 103 47475 104 47476 105 28290 106 80595 107 28316 107A 28316 108 28335 109 28334 109A 28334 110 28333 111 28349 112 28275 113 28276 Descri ption of Tract Secs. 17, 18, 19, 20 T10N, R14E, UM Secs. 13, 14; 24 T10N, R13E, UM Secs. 15, 16 T10N, R13E, UM Secs. 27, 28 T10Bm R14E, U.M. Secs. 26, 36 T10N, R14E, UM Sec. 25 T10N, R14E, UM Secs. 29, 30, 31, 32 T10N, R15E, UM Sec$. 33, 34 T10N, R15E, UM Secs. 27, 28 T10N, R15E, UM Secs. 25, 26, 35, 36 T10N, R15E, UM Secs. 29, 30, 31 T10N, R16E, UM Secs. 21, 22 T12N, R13E, UM Sec. 23 T12N, R13E, UM Tract. Par'ticipation Percent 0.1996175 0.0028061 0.0024590 0.0000019 0.0088125 0.0565330 0.0667905 0.0179622 0.1303563 0.0691187 0.0092138 0.0133022 0.0000864 C-6 October 1987 EXHIBIT C PART II -- GAS CAP PARTICIPATING AREA PRUDHOE BAY UNIT AGREEMENT STATE OF ALASKA Tract No. 14 15 16 17 18 19 22 23 24 25 26 27 28 29 30 ADL No. 47447 47446 25637 47449 28239 28238 28257 28279 28278 28277 28299 28300 28301 34628 34629 Descri Secs. T12N, Secs. T12N, Secs. T12N, Secs. T12N, Secs. T12N, Secs. T12N, Sec$. T12N, Secs. T12N, Secs. T12N, Secs. T12N, Secs. T12N, Secs. T12N, Secs. T12N, Secs. T12N, Secs. T12N, ption of Tract 15, 16, 21, 22 RllE, UM 17, 18, 19, 20 RllE, UM 13, 24 R10E, UM 29, 30, 32 RllE, UM 27, 28, 33, 34 RllE, UM 25, 26, 35, 36 RILE, UM 25, 26, 35, 36 R12E, UM 29, 30, 31, 32 R13E, UM 27, 28, 33, 34 R13E, UM 26, 35, 36 R13E, UM 29, 31, 32 R14E~ UM 27, 28, 33, 34 R14E, UM 25, 26, 35, 36 R14E, UM 29, 30, 31, 32 R15E, UM 27, 28, 33, 34 R15E, UM Tract Participation Percent 0.0011970 0.0211926 0.0003024 0.0204696 0.0913424 0.0061712 0. 1101259 0.0190207 0.0331538 0.1111558 0.0668830 2.7462020 5.4070880 4.9026960 2.3763262 C-7 October 1987 Prudhoe Bay Unit Agreement Tract No. 31 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 ADL No. 34630 28320 34631 34632 28302 28303 28304 28280 28281 28282 28260 28261 47450 28240 28241 28244 Desc Seca T12N Sec$. TllN, Seca. TllN, Sec$. TllN, Sec$. TllN, Seca. TllN, Seca. TllN, ription of Tract . 25, 26, 35, 36 , R15E, UM 1, 2, il, 12 R15E, UM 3, 4, 9, 10 R15E, UM 5, 6, 7, 8 R15E, UM 1, 2, 11, 12 R14E, UM 3, 4, 9, 10 R14E, UM 5, 6, 7, 8 R14E, UM Secs. 1, 2, 11, 12 TllN, R13E, UM Seca. TllN, 3, 4, 9, 10 R13E, UM Seca. 5, 6, 7, 8 TllN, R13E, UM Seca. 1, 2, 11, 12 TllN, R12E, UM Secs. TllN, 3, 4, 9, R12E, UM Seca. 5, 6, 7, 8 TllN, R12E, UM 10 Seca. 1, 2, 11, 12 TllN, RllE, UM Secs. 3, 4, 9, 10 TllN, RllE, UM Sec. TllN, 15 RllE, UM Tr ac.t.~ , Part'i'd'ipation Percent 0.0521132 0.3216998 4.4211250 7.9580580 8.5730848 6.130813& 2.9898184 1.7631780 1.1061331 0.4341463 0.0777251 0.0005248 0.0193851 0.0496376 0.0399457 0.0000110 C-8 October 1987 Prudhoe Bay Unit Agreement Tract No. ADL No. Descri 53 28245 Secs. TllN, 54 28262 Secs. TllN, 54A 28262 Sec. TllN, 55 28263 Secs. TllN, 55A 28263 Secs. TllN, 56 47451 .Secs. TllN, 57 28283 Secs. TllN, 58 28284 Secs. TllN, 59 28285 Secs. TllN, 60 28305 Secs. TllN, 61 28306 Secs. TllN, 62 28307 Secs. TllN, 63 28321 Secs. TllN, 64 28322 Secs. TllN, 65 28323 Secs. TllN, 70 28324 Secs. TllN, ption of Tract 13, 14, 24 RllE, UM 17, 18; 19 R12E, tim 20 R12E, %TM 15, 16 R12E, UM 21, 22 R12E, UM 13, 14, 23, R12E, UM 17, 18, 19, R13E, UM 15, 16, 21, R13E, UM 13,.14, 23, R13E, UM 17, 18, 19, R14E, tim 15, 16, 21, R14E, UM 13, 14, 23, R14E, UM .. 17, 18, 19, R15E, UM 15, 16, 21, R15E, tim 13, 14, 23, R15E, tim 25, 26, 35, R15E, UM 24 20 22 24 20 22 24 20 22 24 36 Tract Pa~icipation Percent 0.1805920 0.2995913 0.1111367 0.0511793 0.1539450 0.0042712 0.1013091 0.6687738 1.8633126 3.1854789 5.4649446 7.4776622 7.2610510 4.2486128 0.4529448 0.3609044 C-9 October 19 87 Prudhoe Bay Unit Agreement Tract No. 71 72 73 74 75 76 77 79 80 81 82 "83 84 88 89 90 ADL No. 28325 28326 28308 28309 28310 28286 28287 28264 47452 47453 28246 47454 28265 28313 28312 28311 Descri Secs. TllN, Secs. TllN, Secs. TllN, Secs. TllN, Secs. TllN, Secs. TllN, Secs. TllN, Secs. TllN, Secs. TllN, Secs. TllN, Sec. TllN, Secs. T10N, Secs. T10N, Secs. T10N, Secs. T10N, Secs. T10N, ption of Tract 27, 28, 33, 34 R15E, UM 29, 30, 31, 32 R15E, UM 25, 26, 35, 36 R14E, UM 27, 28, 33, 34 R14E, UM 29, 30, 31, 32 R14E, UM 25, 26, 35; 36 R13E, UM 27, 28, 33, 34 R13E, UM 25, 26, 35, 36 R12E, UM 27, 28, 33, 34 R12E, UM 29, 30, 31, 32 R12E, UM 25 RllE, UM 3, 4, 10 R12E, UM 1, 2, 11, 12 R12E, UM 5, 6, 7, 8 R14E, UM 3, 4, 9, 10 R14E, UM 1, 2, 11, 12 R14E, UM T.r~act Participation Percent 3.3036918 5.0566434 4.1071874 2.2068838 1.1675071 0.2432039 0.0132529 0.0120620 0.1575467 0.0384943 0.0003490 0.0013684 0.0003882 0.0066790 0.1007911 0.3709048 C-10 October 1987 Prudhoe Bay Unit Agreement Tract No. ADL No. 91 28329 92 28328 93 28327 Description of Tract Secs. 5, 6, 7, 8 T10N, R15E, UM Secs. 3, 4, 9, 10 T10N, R15E, UM Secs. 1, 2, 11, 12 T10N, R15E, UM Tr~%.- Partic±pation Percent 0.7143628 0.7489948 0.0132526 C-ii October 1987 ,IAI' ~ HA¥¥0#0, f, OVEIU, IO~ ALASKA OIL A#D GAS CO#S££VATIO# March 20, 1981 Mr. G. N. Nelson Sohio Alaska Petroleum Company Pouch 6-612 Anchorage, Alaska 99501 Mr. P. B. Norgaard ARCO Alaska Inc. P. O. Box 360 Anchorage, Alaska 99510 3001 PORCUPINE DRIVE.ANCHORAGE. AI.,4$KA $950I Gentlemen: Your application for additional recovery by waterflood in the Prudhoe Oil Pool dated December, 1980 was received by the Commission on December 15, 1980. This was supplemented with additional information that was received on March 12, 1981. The Commission understands that your plans at this time will be subject to revisions as more reservoir data are obtained, and we feel that such flexibility is in the best interest of con- servation. The Commission hereby approves your additional recovery application for waterflooding in the Prudhoe Oil Pool with the following stipulations: The Commission will require semi-annual reports on implementation progress and injection well performance as you stated was your intention in your application. Starting with the first report in July, 198l, the reports are to be filed each July and January. The semi-annual reports are to also include pressure data on all pressure observation wells in the Prudhoe Oil Pool, includ- ing the Eileen Area. Any proposed changes must be submitted to the Commission. The Commission will review these proposed changes and will approve those that it feels are appropriate. As the additional recovery program progresses the Commission may find it necessary to impose other stipulations. Sincerely yours, Cha i rrna n .P. B. · . ALASKA OIL AND GAS CONSERVATION COMMISSION November 4, 1993 WALTER J. HICKEL, GOVERNOR 3001 PORCUPINE DRIVE ANCHORAGE, ALASKA 99501-3192 PHONE: (907) 279-1433 TELECOPY: (907) 276-7542 Mr. C.J. Phillips Manager BP Exploration (Alaska), Inc. PB Petroleum Engineering P.O. Box 196612 Anchorage, AK 99519-6612 Mr. D.F. Scheve Manager ARCO Alaska, Inc. PB Operations, Engineering P.O. Box 100360 Anchorage, AK 99510-0360 Re: Consolidation of Pool Rules--Prudhoe Bay Oil Pool Gentlemen: I am requesting ARCO Alaska, Inc. and BP Exploration (Alaska), Inc., as joint .operators, to each designate a representative to work with Commission staff on consolidation of Prudhoe Bay oil pool rules. The Commission believes that overall efficiency will improve for both industry and the Commission if the numerous'conservation orders governing development of Prudhoe Bay are consolidated under one all inclusive order for the pool. I have asked Jack Hartz, Senior Petroleum Engineer, to lead this effort on behalf of the Commission. Please contact Mr. Hartz directly with the name of your representative. CC. Jack,Hartz ~ Exxon Corporation Chevron Phillips Petroleum Mobil Oil Company ~ printed on recycled paper b y C.D, '- r- ! ! ALASK2k OIL AND GAS CONSERVATION CO~I~II$SION September 22, 1993 WALTER 'J. HICKEL, GOVERNOR 3001 PORCUPINE DRIVE ANCHORAGE. ALASKA 99501-3192 PHONE: (907) 2/9-1433 TELECOPY: (907) 27S-7542 Mr. C. J. Phillips Manager PB Petroleum Engineering BP Exploration (Alaska), Inc. P O Box 196612 Anchorage, AK 99519-6612 Gentlemen: Mr. D. F. Scheve Manager PB Operations, Engineering ARCO Alaska, Inc. P O Box 100360 Anchorage, AK 99510-0360 The Commission has received your .August 19, 1993 request to modify Rule 5 of Conservation Order No. 145. While the Commission is supportive of your request, we want to propose making this change as part of a general consolidation and re-write of pool rules for the Prudhoe Bay Oil pool. Over the years, numerous conservation orders have been issued for the pool. All these orders must be reviewed to determine current requirements. We would like to simplify matters by consolidating all Pmdhoe Bay orders under one all inclusive order for the pool. Any future modifications can then be made to that one order, and'an amended order issued. Only one order would exist for the pool, which would include all current requirements. The Commission looks forward to discussing this idea with you. If we agree that the concept has merit, we would propose that the operators put forth a proposed consolidated pool rules order for our review..Until we hear from you, we will delay action on your August 19, 1993 request. : David W. Chairman DEPARTMENT OF NATUI March 21, 1986 Standard Alaska Production Com~ P. O. Box 196612 Anchorage, AK 99519-6612 Attn' Mr. G. N. Nelson President ARCO Alaska, Inc. P. O. Box 100360 Anchorage, AK 99510-0360 Attn: Mr. Harold Heinze President BILL SHEFFIELD, GOVERNOR P.O. BOX 7O34 ORAGF.. AULSKA 99510-7034 Subject: Prudhoe Bay Unit: Amendment to the December ll, 1985 Approval of Oil Rim, Gas Cap, and Tract Cost Allocations Dear Mssrs. Nelson and Heinze- On December 11, 1986, the Department of Natural Resources approved revised production and cost allocations for the tracts within Prudhoe Bay Unit based on arbitration concluding in 1985. Since that time, certain of the Rrudhoe Bay Unit working interest owners have requested that the cost allocation for the init be further revised to be consistent with the formula set forth in the Rrudhoe Bay Unit Operating Agreement Exhibit 26 (the "RSA/RLAGHM allocation), and the effective date of the Participating Areas be made retroactive to September l, 1985. After staff review of these requests, I have determined that the above changes are in the best interest of the State of Alaska. Therefore, I hereby approve the Oil Rim, Gas Cap, and Cost Allocations to the tracts within the Rrudhoe Bay Unit Oil Rim and Gas Cap Participating Areas as set forth in Attachment I to this letter. This approval will be retroactive to September l, 1985. Other approvals granted in my December 1, 1985 approval remain Lnchanged; namely' the expansion of the Prudhoe Bay Unit Oil Rim Participating Area to include Sections 20, 21, 22, and 23 of T12N, R13E, U.M. (Tracts 9A, 112, and 113); Prudhoe Bay Unit Participating Area Revisions March 21, 1986 Page 2 the expansion of the Prudhoe Bay Unit Oil Rim Participating Area to include Sections l~ and 24 of T12N, RiOE, U.M. (Tract 16), and Sections 29, 30, 31, and 32 of Ti2N, R12E, U.M. (Tract 20); the contraction of the Prudhoe Bay Unit Oil Rim Participating Area to exclude Sections 4 and '9 of TiON, R16E, U.M. (Tract 95); the expansion of the Prudhoe Bay Unit Gas Cap Participating Area to include Sections l~ and 24 of T12N, RiOE, U.N. (Tract 16), and Sections 15, 16, 21, and 22 of T12N, RllE, U.M. (Tract 14); the combination of Tracts 9A, 22A, 5lA, and 85A with Tracts 9, 22, 51, and 85, respectively, to form new tracts also namend 9,.22, 51, and 85, which will replace the former Tracts 9, 22, 51, and 85, respectively; and the change in the volu~es of royalty hydrocarbons allocated to Tracts 1~, 20, 95, ll2, and ll3, effective October l, 1985, pursuant to the letter dated August l, 1985 from the Director of the Division of Oil and Gas. Pursuant to 11 AAC 83.371, the final approved allocations of hydrocarbon production and Lnit operating costs for the Rrudhoe Bay Unit Oil Rim and Gas Cap Participating Areas shall be as set forth in Attachment I to this approval. The Department is aware that certain parties to the Prudhoe Bay Unit Agreement may be pursuing litigation to void the arbitration settlement. Should this litigation ultimately be' successful, a new redetermination of the Prudhoe Bay Unit Oil Rim and Gas Cap Participating Areas will be required to be approved by the State. If you have any questions on the above, please contact Ms Catherine Fortney of my staff at (907) 762-4198. ~incerely, Attachment: As Noted 2868A Tract 10 14 15 16 17 18 19 2O 21 22 ADL II 47469 47448 47447 47446 25637 47449 28239 28238 28259 28258 28257 Legal Description T12N, R13E, U.M.; Secs. 19, 20 T12N, R12E, U.M.; Secs. 23, 24 T12N, RilE, U.M.; Secs. 15, 16, 21, 22 T12N, RllE, U.M.; Secs. 17, 18, 19, 20 T12N, RiOE, U.M.; Secs. 13, 24 T12N, RilE, U.M.; Secs. 29, 30, 32 I12N, RilE, U.M.; Secs. 27, 28, 33, 34 I12N, RILE, U.M.; Secs. 25, 26, 35, 36 T12N, R12E, U.M.; Secs. 29, 30, 31, 32 T12N, R12E, U.M.; Secs. 27, 28, 33, 34 I12N, R12E, U.M.; Secs. 25, 26, 35, 36 Acres 1225 1280 2560 2448 1280 1868 2560 2560 2459 2560 2560 PRUDHOE BAY UNIT OIL RIM AND GAS CAP PARTICIPATING AREAS AS OF 12:01 A.M., SEPTEMBER l, 1985 Royalty Tract Partici- Tract Partici- .patio, (0il) '- patio. (Gas) 12.5% 0.0307565 (None) 12.5% 0.0010848 (None) Tract Cost Participation O. 0378328 0.0012178 12.5% 0.0049708 0.0011970 0.0049705 12.5% 0.0099777 O. 0211926 O. 0099770 12 . 5% O. 0046309 O. 0003024 O. 0046882 12.5% 0.0064355 0.0204696 0.0064351 12.5% 0.0614364 0.0913424 0.0622008 12.5% 0.0163822 0.0061712 O. 0165862 12.5% 0.0076616 (None) 12.5% 0.4599204 (None) 0.0069058 O. 5867236 12.5% 1.7767068 0.1101259 1.8074047 ATTACHMENT I Working Interest Mobil 50% Phillips 50% Mobil 66-2/3% Phillips 33-1/3% Mobil 50% Chevron 50% Mobil 50% Chevron 50% ARCO 50% BPAE 37-1/2% Sohio 12-1/2% Mobil 5O% Chevron 50% ARCO 50% Exxon 50% ARCO 50% Exxon 50% ARCO 50% Exxon 50% ARCO 50% Exxon 50% Mobil 50% Phillips 50% -RGiOFg- Tract 23 24 25 26 27 28 29 3O 31 38 39 4O 41 ADL # 28279 18278 28277 28299 28300 28301 34628 3462 9 34630 28320 34631 34632 28302 Legal Description T12N, R13E, U.M.; Secs. 29, 30, 31, 32 T12N, R13E, U.M.; Secs. 27, 28, 33, 34 T12N, R13E, U.M.; Secs. 26, 35, 36 T12N, R14E, U.M.; Secs. 29, 31, '32. T12N, R14E, U.M.; Secs. 27, 28, 33, 34 T12N, R14E, U.M.; Secs. 25, 26, 35, 36 T12N, R15E, U.M.; Secs. 29, 30, 31, 32 T12N, R15E, U.M.; Secs. 27, 28, 33, 34 T12N, R15E, U.M.; Secs. 25, 26, 35, 36 TllN, R15E, U.M.; Secs. 1, 2, 11, 12 TllN, R15E, U.M.; Secs. 3, 4, 9, 10 TllN, R15E, U.M.; Secs. 5, 6, 7, 8 TllN, R14E, U.M.; Secs. 1, 2, 11, 12 Acres 2459 2560 1920 1871 2560 2560 2459 2560 2560 2560 2560 2469 2560 Royalty 12.5% 12.5% 12.5% 12.5% 12.5% 12.5% 12.5% 12.5% 12.5% 12.5% 12.5% 12.5% 12.5% Tract Partici- Tract Partici- , pation (0il) 1.2989359 1.0400165 patim (Gas) .0190207 .0331538 0. 84213 96 0.1111558 0.9307902 0.0668830 1.0365258 2.7462 020 (None) 5.4070880 (None) 4. 9026960 (None) 2.3763262 (None) O. 0521132 0.3566616 0.3216998 0.2490770 4.4211250 0.1146214 7.9580580 0.3106250 8.5730848 Tract Cost Participation 1.3486216 1.1068638 0.8795097 0.8899922 1.0160336 (None) (None) (None) (None) 0.5078745 0.4097098 0.1673330 0.4341544 Working Interest * Sohio 100% * Sohio ].00% * Sohio 100% ARCO 50% Exxm 50% ARCO 50% Exxon 50% ARCO 50% Exxon 50% ARCO 50% Exxon 50% ARCO 50% Exxon 50% * Sohio 100% * Sohio 100% ARCO 50% Exxon 50% ARCO 50% Exxon 50% ARCO 50% Exxon 50% - PG 2 OF 9 - Tract 42 43 44 45 46 47 48 49 5O 51 52 53 54 ADL # 28303 28304 2828O 28281 2 82 82 28260 28261 47450 28240 28241 28244 2 8245 28262 Legal Description TllN, R14E, U.M.; Sees. 3, 4, 9, 10 TllN, R14E, U.M.; Sees. 5, 6, 7, 8 IllN, R13E, U.M.; Sees. 1, 2, 11, 12 IllN, R13E, U.M.; Sees. 3, 4, 9, 10 TllN, R13E, U.M.; Sees. 5, 6, 7, 8 IllN, R12E, U.M.; Sees. 1, 2, 11, 12 IllN, R12E, U.M.; Secs. 3, 4, 9, 10 TllN, R12E, U.bl.; Sees. 5, 6, 7, 8 TllN, RilE, U.M.; Sees. 1, 2, 11, 12 TllN, RilE, U.M.; Sees. 3, 4, 9, 10 TllN, RilE, U.M.; Sec. 15 TllN, RilE, U.M.; Sees. 13, 14, 24 TllN, R12E, U.M.; Sees. 17, 18, 19 Acres 2560 2469 2560 2560 2469 2560 2560 2469 2560 2560 640 1920 1840 Royal,ty 12.5% Tract Partici- Tract Partici- pation (Oil) pation (Gas) Tract Cost Participation 1. 9447402 6.1308138 2. 0149276 12.5% 3.2449752 2. 9898184 3. 0572428 12.5% 3.8981682 1.7631780 3.6018475 12.5% 3.3705436 1.1061331 3.1745609 12.5% 3 . 042 9668 0 . 4341463 2. 8935091 12.5% 1.481552 9 O. 07772 51 1.602 8479 12.5% O. 0888936 O. 00052 48 O. 142 05 98 12.5% 0.0468606 0.0193851 0.0468573 12.5% 0.0913318 0 · 0496376 O. 0924680 12.5% 0.0486990 0.0399457 0.0486957 12.5% 0.0000194 0.0000110 0.0000126 12.5% O. 1486696 O. 1805920 0 . 1505194 Working Interest ARCO 50% Exxon 50% ARCO 50% Exxon 50% * Sohio 100% * Sohio 100% * Sohio 100% * Sohio 100% Mobil 50% Phillips 50% Chevron 33-1/3% Mobil 33-1/3% Phillips 33-1/3% ARCO 50% Exxon 50% Mobil 50% Phillips 50% ARCO 50% Exxon 50% ARCO 50% Exxon 50% 12.5% 0.2968897 0.2995913 0.2968695 Chevron 100% - PG 3 OF 9 - Tract 54A 55 55A 56 57 58 59 6O 61 62 63 64 ADL # 28262 28263 28263 47451 2 82 83 28284 28285 28305 28306 28307 28321 28322 Legal Description TllN, R12E, U.M.; Sec. 20 TllN, R12E, U.M.; Secs. 15, 16 TllN, R12E, U.M.; Secs. 21, 22 TllN, R12E, U.M.; Secs. 13, 14, 23, 24 TllN, R13E, U.M.; Secs. 17, 18, 19, 20 TllN, R13E, U.M.; Secs. 15, 16, 21, 22 TllN, R13E, U.M.; Secs. 13, 14, 23, 24 T11N, R14E, U.M.; Secs. 17, 18, 19, 20 TllN, R14E, U.M.; Secs. 15, 16, 21, 22 TllN, R14E, U.M.; Secs. 13, 14, 23, 24 TllN, R15E, U.M.; Secs. 17, 18, 19, 20 TllN, R15E, U.M.; Secs. 15, 16, 21, 22 Acres 640 1280 1280 2560 2480 2560 2560 2480 2560 2560 2480 2560 Royalty Tract Partici- Tract Partici- pation (0il) pation (gas) Tract Cost Participation 12 . 5% 0 . 0772452 O. 1111367 O. 0772400 12 . 5% O. 1338160 O. 0511793 O. 1338069 12.5% 0.2071833 O. 1539450 0.2071691 12.5% 0 · 190232 8 O. 0042712 O. 2116020 12.5% 1 . 563482 9 O. 1013091 1. 6950216 12.5% 3.3026290 0.6687738 3.1195651 12.5% 3. 9964449 1. 8633126 3. 6814368 12.5% 3.6765194 3.1854789 3.4084422 12.5% 2 . 9343182 5.4649446 2.821392 8 12.5% 1. 8596860 7 . 4776622 1. 9509946 12.5% 1 . 112.5780 7.2610510 1. 3201928 12.5% 1.0995790 4.2486128 1.3264568 Working Interest Chevron 33-1/3% Mobil 33-1/3% Phillips 33-1/3% Mobil 50% Phillips 50% Chevron 33-1/3% Mobil 33-1/3% Phillips 33-1/3% Chevron 33-1/3% Mobil 33-1/3% Phillips 33-1/3% * Sohio 100% * Sohio 100% * Sohio 100% * Sohio 100% ARCO 50% Exxon 50% ARCO 50% Exxon 50% ARCO 50% Exxon 50% ARCO 50% Exxon 50% - PG 4 OF 9 - Tract~ ADL # 65 ~83~3 66 28339 69 28343 70 28324 71 28325 72 28326 73 28308 74 28309 75 28310 76 28286 77 2 82 87 78 28288 79 28264 Legal Description TllN, R15E, U.M.; Secs. 13, 14, 23, 24 TllN, R16E, U.N.; Secs. 17, 18, 19 TllN, R16E, U.M.; Secs. 30, 31, 32 TllN, R15E, U.M.; Secs. 25, 26, 35, 36 TllN, R15E, U.M.; Secs. 27, 28, 33, 34 TllN, R15E, U.M.; Secs. 29, 30, 31, 32 TllN, R14E, U.M.; Secs. 25, 26, 35, 36 TllN, R14E, U.M.; Secs. 27, 28, 33, 34 TllN, R14E, U.M.; Secs. 29, 30, 31, 32 TllN, R13E, U.M.; Secs. 25, 26, 35, 36 TllN, R13E, U.M.; Secs. 27, 28, 33, 34 TllN, R13E, U.M.; Secs. 29, 30, 31, 32 TllN, R12E, U.M.; Secs. 25, 26, 35, 36 Acres 2560 1840 1851 2560 2560 2491 2560 2560 2491 2560 2560 2491 2560 Royalty Tract Partici- Tract Partici- pation (Oil) pation (Gas) Tract Cost Participation 12.5% 0.7714806 0.4529448 O. 9673190 12.5% O. 0001956 (None) 0.0022529 12.5% O. 1342393 (None) 0.2092813 12.5% 2.0837850 O. 3609044 2.1325158 12.5% 2.7773702 3.3036 918 2.6942 830 12.5% 3 . 1133992 5 . 0566434 2. 9543 970 12.5% 3 . 9394274 4.1071874 3. 6354866 12.5% 3.8650657 2.2068838 3.5750486 12.5% 3 . 9334322 1.1675071 3. 6183515 12.5% 2. 6691922 0.2432039 2. 6065946 12.5% 1. 2578240 O. 0132 52 9 1. 4636316 12.5% 0.3601455 (None) 0.5308820 12 . 5% 0 . 1174944 0 . 0120620 0 . 1189562 Working Interest ARCO 50% Exxon 50% * Sohio 100% * Sohio 100% ARCO 50% Exxon 50% ARCO 50% Exxon 50% ARCO 50% Exxon 50% ARCO 50% Exxon 50% * Sohio 100% * Sohio 100% * Sohio 100% * Sohio 100% Mobil 50% Phillips 50% ARCO 50% Exxon 50% -PG5OFg- Tract 81 83 84 85 86 87 88 89 ADL # 47452 47453 28246 47454 28265 2 82 89 4747]. 47472 28313 28312 28311 Legal Description TllN, R12E, U.M.; Secs. 27, 28, 33, 34 TllN, R12E, U.M.; Secs. 29, 30, 31, 32 TllN, RilE, U.M.; Sec. 25 TiON, R12E, U.M.; Secs. 3, fl, 10 TiON, R12E, U.M.; Secs. 1, 2, 11, 12 TiON, R13E, U.M.; Seas. 5, 6, 7, 8 TiON, RIDE, U.M.; Secs. 3, 4, 9, 10 TiON, R13E, U.M.; Secs. 1, 2, 11, 12 TiON, R14E, U.M.; Seas. 5, 6, 7, 8 TiON, R14E, U.M.; Secs. 3, 4, 9, 10 TiON, R14E, U.M.; Secs. 1, 2, 11, 12 Acres 2560 2491 640 1920 2560 2501 2560 2560 2501 2560 2560 Royalty, Tract Partici- Tract Partici- . pation (Oil) pation (Gas) Tract Cost Participation 12 . 5% 0.2232645 O. 1575467 0.2232492 .12.5% O. 1144260 O. 0384943 O. 1144181 12.5% 0.0007026 0.0003490 0.0007114 12.5% 0.0200389 0.0013684 0.0200375 12.5% 0.0364292 0.0003882 0.0368824 12.5% 12.5% O. 1312435 (None) 0.3000685 (None) O. 8139925 (None) 12.5% 0.1651856 0.3000685 O. 813992 5 12.5% 1.5538656 0.0066790 1.6930752 12.5% 2.8963363 0.1007911 2.7905342 12.5% 3.6619111 0.3709048 3.4105186 Workinq Interest Chevron 33-1/3% Mobil 33-1/3% Phillips 33-1/3% Chevron 33-1/3% Mobil 33-1/3% Phillips 33-1/3% ARCO 50% Exxon 50% Chevron 33-1/3% Mobil 33-1/3% Phillips 33-1/3% ARCO 50% Exxon 50% Mobil 5O% Phillips 50% Amerada Hess 27% Getty 30-1/2% LL&E 13-1/4% Shell 29-1/4% Amerada Hess 50% Getty 50% ARCO 50% Exxon 50% * Sohio 100% * Sohio 100% -PG6OF9- Tract 91 93 94 97 98 100 101 102 103 104 ADL # 28329 28328 28327 28345 2 8346 28332 28331 28330 28315 28314 47475 47476 Legal Description TiON, R15E, U.M.; Secs. 5, 6, 7, 8 TiON, R15E, U.M.; Secs. 3, 4, 9, 10 TiON, R15E, U.M.; Secs. 1, 2, 11, 12 TION, R16E, U.M.; Secs. 5, 6, 7, 8 TION, R16E, U.M.; Secs. 17, 18, 19, 20 TiON, R15E, U.M.; Secs. 13, 14, 23, 24 TiON, R15E, U.M.; Secs. 15, 16, 21, 22 TiON, R15E, U.M.; Secs. 17, 18, 19, 20 TiON, R14E, U.M.; Secs. 13, 14, 23, 24 TiON, R14E, U.M.; Secs. 15, 16, 21, 22 TiON, R14E, U.M.; Secs. 17, 18, 19, 20 TiON, R13E, U.M.; Secs. 13, 14, 24 Acres 2501 2560 2560 2501 2512 2560 2560 2512 2560 2560 2512 1920 Royalty Tract Partici- Tract Partici- . pation (Oil) pation (Gas) Tract Cost Participation 12.5% 4.15552 98 0.7143628 3. 8003150 12.5% 4.0900128 0.7489948 3.7574476 12.5% 2.7730980 0.0132526 2.690 8130 12.5% 12.5% O. 5812244 (None) 0.2982834 (None) 1.6240684 (None) 12.5% 12.5% 1.5486835 (None) 12.5% 12.5% 12.5% 12.5% 1.4812197 (None) 1.2192336 (None) 0.4588814 (None) 0.1996175 (None) 0.0008080 (None) 12.5% O. 7978932 0.5168170 1.7601684 1.6992003 1.6329171 1.4134821 0.5415432 0.1996175 0.0008080 Working Interest ARCO 50% Exxon 50% ARCO 50% Exxon 50% ARCO 50% Exxon 50% ARCO 50% Exxon 50% ARCO 50% Exxon 50% ARCO 50% Exxon 50% * Sohio 100% * Sohio 100% * Sohio 100% Mobil 5O% Phillips 50% Amerada Hess 25% Getty 25% Marathom 25% Shell 25% ARCO 50% Exxon 50% -PG70F9- Tract Partici- Tract Partici- Tract Cost lract ADL tt Legal Description Acres RoyaltY pation (Oil) pation (Gas) Participation 105 2 82 90 TiON, R13E, U.N.; 1280 12.5% O. 0024590 (None) O. 0033330 Secs. 15, 16 -. 107 28316 TiON, R14E, U.M.; 1280 12.5% 0.0088125 (None) 0.0103361 Secs. 26, 36 107A 28316 TiON, R14E, U.M.; 640 12.5% 0.0565330 (None) 0.0833500 Sec. 25 108 28335 TiON, R15E, U.M.; 2523 12.5% 0.0667905 (None) 0.1718830 Secs. 29, 30, 31, 32 109 28334 TION, R15E, U.M.; 1280 12.5% 0.0179622 (None) 0.0161648 Secs. 33, 34 109A 28334 TiON, R15E, U.M.; 1280 12.5% 0.1303563 (None) 0.1942198 Secs. 27, 28 Working Interest Mobil 50% Phillips 50% Chevron 100% Chevron 33-1/3% Mobil 33-1/3% Phillips 33-1/3% * Sohio 100% Mobil 50% Phillips 50% Chevron 33-1/3% Mobil 33-1/3% Phillips 33-1/3% 110 28333 TiON, R15E, U.M.; 2560 12.5% 0.0691187 (None) 0.1809493 * Sohio 100% Secs. 25, 26, 35, 36 111 28349 TiON, R16E, U.M.; 1883 12.5% 0.0092138 (None) 0.0548464 * Sohio 100% Secs. 29, 30, 31 112 28275 T12N, R13E, U.M.; 1280 12.5% 0.0133022 (None) 0.0133780 ARCO 50% Secs. 21, 22 Exxon 50% 113 28276 T12N, R13E, U.M.; 640 12.5% 0.0000864 (None) 0.0000700 ARCO 50% Sec. 23 Exxon 50% TOTALS: 83 Tracts 212,266 Acres 100.0000000% 100.0000000% 100.00000000% * BPAE owns an ORR of 75% of all net profits from production between certain levels of oil production from these leases. '2706A -PG8OF9- PRUDHOE BAY UNIT PRODUCTION AND COST ALLOCATION BY WORKING INTEREST OWNER AS OF 12:01 A.M., SEPTEMBER 1, 1985 Working Interest Owner Amerada Hess Corporation ARCO Alaska, Inc. BP Alaska Exploration, Inc. Chevron U.S.A., Inc. Exxon Corporation Getty Oil Company Louisiana Land and Exploration Co. Marathon Oil Company Mobil Oil Corporation Phillips Petroleu~ Company Shell Western E&P Inc. Standard Alaska Production Company 0il Rim Allocation 0.5379191 21.7799635 0.0017373 O. 6717745 21.7776490 0.5484215 0.0397591 0.0499044 1.8915771 1.8805235 O. 1376744 50.6830966 Gas Cap Allocation 42.5649413 0.0001134 0.4830700 42.564 7901 0.2843666 0.2629370 13.8397816 Cost Allocation O. 5379191 21.9509351 0.0017587 0.7106113 21.9485918 0.5484215 0.0397591 0.049~044 2.1176717 2.1065745 0.1376744 49.8501784 100.0000000 100.0000000 100.0000000 -PG9OF9-