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Home My WebLink AboutCO 350Conservation Order Cover Page XHVZE This page is required for administrative purposes in managing the scanning process. It marks the extent of scanning and identifies certain actions that have been taken. Please insure that it retains it's current location in this file. ~-~..,~'~. 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: ~ARIA Scanning Preparation TOTAL PAGES /C-~ BY: ,~ARIA Production Scanning Stage I PAGE COUNT FROM SCANNED DOCUMENT: I ~ ! 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 COMPL"~I'E'A'?'¥-HIS POINT UNLESS SPECIAL ATTENTION IS REQUIRED ON AN INDIVIDUAL PAGE BASIS DUE TO QUALITY, GRAYSCALE OR COLOR IMAGES) General Notes or Comments about this Document: 5/21/03 ConservOrdCvrPg.wpd • • INDEX CONSERVATION ORDER N0.350 Trading Bay Unit Sate Well M-32 1.) November 21, 1994 UNOCAL requests administrative approval to commingle 2.) November 30, 1994 Notice of Public Hearing, Affidavit of Publication 3.) December 7, 1994 UNOCAL's filing of 1St addendum to application 4.) December 8, 1998 UNOCAL's filing of 2nd addendum to application Conservation Order No. 350 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 3001 Porcupine Drive Anchorage Alaska 99501-3192 Re: THE APPLICATION OF UNOCAL ) CORPORATION for an order allowing ) downhole commingling of production ) from the McArthur River Field, Trading ) Bay Unit, Middle Kenai "G", Hemlock, ) West Foreland, and undefined Jurassic ) Oil Pools, in conformance with the ) provisions of 20 AAC 25.215(b). ) Conservation Order No. 350 Union Oil Corporation McArthur River Field Trading Bay Unit Middle Kenai "G" Oil Pool Hemlock Oil Pool West Foreland Oil Pool Undefined Jurassic Oil Pool December 23, 1994 IT APPEARING THAT: By correspondence dated November 21, 1994 Union Oil Corporation (Unocal) requested an order allowing downhole commingling of produced fluids from the Middle Kenai "G", Hemlock, West Foreland, and an undefined Jurassic oil pool within the Trading Bay Unit (TBU) M-32 wellbore. Notice of opportunity for public hearing was published in the Anchorage Daily News on November 30, 1994 pursuant to 20 AAC 25.540. 3. The Commission received no protest or request for hearing regarding the petition. FINDINGS: Conservation Order No. 234A permits downhole commingling of production from the Middle Kenai "G", Hemlock, and West Foreland oil pools throughout the McArthur River Field. . Conservation Order No. 284 permits the commingling of produced fluids from the Middle Kenai "G", West Foreland, and undefined Jurassic oil pools within the TBU M-28 wellbore. Unocal plans to drill the TBU M-32 as horizontal well within a Jurassic interval which is stratigraphically equivalent to that encountered in TBU M-28. Unocal expects the reservoir and production characteristics of the Jurassic imerval in TBU M-32 to be similar to TBU M-28. Unocal anticipates a period of high volume unassisted flow followed by a steep production decline in TBU M-32. Unocal will decide to commingle the Jurassic with other oil pools in TBU M-32 based on the well's production history, reservoir characteristics and economic considerations at a future time. Unocal proposes to allocate production from the commingled oil pools through the use of wireline production logging tools. Conservation Order No. ' _ o December 23, 1994 Page 2 CONCLUSIONS: In accordance with regulation 20 AAC 25.215, Commission approval is required for commingling of production within the same well bore from two or more pools. Commingling of Jurassic production with that from the Middle Kenai "G", Hemlock and West Foreland Oil Pools in TBU M-32 is expected to ultimately be required to most efficiently exploit Jurassic reserves. o Commingling of produced fluids from the referenced pools in the TBU M-32 wellbore may result in recovery of otherwise unproducable hydrocarbons. 4. Commingling of these pools will not promote waste. o The commingling of the undefined Jurassic with other oil pools within the TBU M-32 wellbore will have no adverse effect on the correlative rights of any of the interest holders in the well. NOW, THEREFORE, IT IS ORDERED: Commingling of produced fluids from the Middle Kenai "G", Hemlock, West Foreland and undefined Jurassic oil pools within the TBU M-32 wellbore is permitted. DONE at Anchorage, Alaska and~ DA laaVsikda V~'i~hn~S °a~cCo°nn~ emr~S~tli~e ~o mmission Russell A. Douglass, Commissioner~ Alaska Oil and Gas Conservation Commission Tuckerman Babcock, Commissioner Alaska Oil and Gas Conservation Commission AS 31.05.080 provides that within 20 days after receipt of written notice of the entry of an order, a person affected by it may file with the Commission an application for rehearing. A request for rehearing must be received by 4:30 PM on the 23rd day following the date of the order, or ne~ working day ifa holiday or weekend, to be timely filed. The Conanission shall grant or refuse the application in whole or in part within 10 days. The Comanission can refuse an application by not acting on it within the 10-day period. An affected person has 30 days from the date the Comanission refuses the application or mails (or otherwise distributes) an order upon rehearing, both being the final order of the Commission, to appeal the decision to Superior Court. Where a request for rehearing is denied by nonaction of the Commission, the 30-day period for appeal to Superior Court runs from the date on which the request is deemed denied (i.e., 10th day after the application for rehearing was filed). #4 Unocal Energy ReSt, urea' ivision Unocal Corporation 909 West 9th Avenue, RO,'Box 196247 Anchorage, Alaska 99519-6247 Telephone (907) 276-7600 UNOCAL ) December 8, 1994 Alaska Mr. Russell Douglass Alaska Oil and Gas Conservation Commission 3001 Porcupine Drive Anchorage, Alaska 99501-3192 Dear Commissioner: Cook Inlet Area State of Alaska Trading Bay Unit State Well M-32 Second Addendum to Application to Commingle Middle Kenai '"G", Hemlock, West Foreland, and Jurassic Formations As per my conversation this morning with Mr. Bob Crandall of the Alaska Oil and Gas Conservation Commission, Unocal, as operator of the Trading Bay Unit (TBU) and on behalf of the Working Interest Owners, is providing this additional note of clarification to support the commingling application, dated November 21, 1994, concerning the Trading Bay Unit State Well M-32. Initially, the M-32 will test the productivity of the Jurassic Formation and will not be commingled with other producing Oil Pools. The Jurassic is expected to initially be an overpressured reservoir, capable of unassisted flow. The.. decision to commingle the Jurassic with the other Oil Pools will be determined in the future by the Working Interest Owners based on the production and reservoir characteristics of the completion along with economic considerations. Should you have any questions regarding this matter, please contact the undersigned at (907) 263-7675. Hal Martin REEEIVED DEC 1 ?- ~994 0it & Gas Cons. Commission Anch0ra¢ ~k 3 Unocal Energy R our~"°~ 'vision Unocal Corporation 909 West 9th Avenue, RO. Box 196247 Anchorage, Alaska 99519-6247 Telephone (907) 276-7600 UNOCAL December 7, 1994 Alaska Mr. Russell Douglass Alaska Oil and Gas Conservation Commission 3001 Porcupine Drive Anchorage, Alaska 99501-3192 Dear Commissioner: Cook Inlet Area State of Alaska Trading Bay Unit State Well M-32 Addendum to Application to Commingle Middle Kenai "G", Hemlock, West Foreland, and Jurassic Formations Referencing the Trading Bay Unit State Well M-32 commingling application, dated November 21, 1994, and pursuant to the provisions of 20 AAC 25.215(b), UnOcal, as operator of the Trading Bay Unit (TBU) and on behalf of the Working Interest Owners, submits this addendum to the Alaska Oil and Gas Conservation Commission as additional information and justification in support of commingling. The commingling of the Jurassic in Well M-32 with the other Oil Pools will not cause Waste by obviating the eventual economic consideration for abandonment of the Jurassic in favor of potentially higher recompletion rates uphole. Production from the commingled Oil Pools can be properly allocated through the use of wireline production logging tools, except where inaccessible or mechanically impractical. In the event production logging is unjustified, other reasonable methods, such as the measurement and allocation of the incremental response of the well during commingling or reperforating efforts will be used. Currently, commingling of the Middle Kenai "G", Hemlock, and West Foreland Oil Pools is permitted under Conservation Order No. 234A., which allows for effective and economic management of the Oil Pools. The commingling of the Jurassic with the other Oil Pools mentioned above wiJl..:haYeno-adverse affect on the correlative rights of any party. The State of Alaska and th,9,-T~a'~ing Bay Unit participants will benefit by this proposal and therefore it is requested tt'7'at the Committee approve this application. DEC - 9 1994 Alaska Oil & Gas Cons. Commission Mr. Russell Douglass December 7, 1994 Page No 2 Should you have any questions regarding this matter, please contact the undersigned at (907) 263-7675 or Kevin Tablet at (907)263-7600. Sincerely, Hal Martin RECEIVED DEC -9 1994 Alaska Oil & Gas Cons. Commission Anchorage ~2 Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: The application of UNION OIL COMPANY OF CALIFORNIA (Unocal) to commingle production from the McArthur River Field, Trading Bay Unit, Middle Kenai "G", Hemlock, West Foreland, and undefined Jurassic Oil Pools. UNOCAL Corporation by letter dated November 21, 1994 has requested an order to allow downhole commingling of production from the McArthur River Field, Trading Bay Unit, Middle Kenai "G", Hemlock, West Foreland and undefined Jurassic Oil Pools, in conformance to the provisions of 20 AAC 25.215(b). A person who may be harmed if the requested order is issued may file a written protest prior to 4:00 PM December 15, 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 hearing on the matter will be held at the above address at 9:00 am on January 3, 1995 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 December 15, 1994. If no protest is filed, the Commission will consider the issuance of the order without a hearing. If you are a person with a disability who may need a special modification in order to comment or to attend the public hearing, please contact Diana Fleck at 279-1433 no later than December 28, 1994. R ssell A. Douglass, Comrr~sioner Alaska Oil and Gas Conservation Commission Published November 30, 1994 f~9584 STOF 0330 A0-02-5-14-027 $58.90 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: November 30~ ,, , ,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. signed~' Eva M. Kaufmann Classified Advertisi_ng R~. 257-4296 Subscribed and sworn to before me this .Z... day of .~.~2~ 1994 · ~// N°~emry/~bligtate o; ~d %~a~°r Third Division Anchorage, Alaska MY COMMISSION EXPIRES: My CoMmss,oN ~x~ ......... .~.z z~, .~,~ ........... 19 ...... i'-~'Notice of P~ ~1 .' STATE OF ALASKA ,.~ · · AlaSka .Oil and Gas ' II Conservation commission, o,- co;,p:,'i 3; c.'.-"..4 ~ A 'dr'3*'O' ':: ~:}n.,.,., % .1:*~ ,;:::. -.-a:: !-; ';?.~fi. aSsi¢ Oil Pools."2 5, ,i', I' U,NO'(JAL COrporaTion o¥ I if er,' dat~l , ~a's)'requesieg"an: o[Ue.,~'2|~ ~, 'pr0dUc4.ion ~from the .AAcArtnur .Rige6 Field Trad)ng"Bay'Unit, i:~l~Cli&"' K~aI' "G~i~,''I He~!°Ck '"WeSt FOreland and unoetine¢ ~)~rassic. Qil Pools, .n confor- I '~a,,c:((':t~ ttie prov. isions, of :~0 '~ ~ ' ' b ' ' )~ .... AAC ~S.915( ) .... ~':~ · " · n who niai~' be nar'm-1 A perso . '. e'U,if, the.r, equeSte'~.orUer ~s i~s'i4ecl .'may' fl)e"~" written pro- test prior to 4:00 .PM Decem- ber 15, '1994 with the AlasXa Oil and Gas Conservation Com-i missio,; 3001 porcupine Drive, ~ncnO~age, Alaska 99501, ana request a nearing 'on the mat- ter. ~f tl~e protest is timely .fi. ed. and. raises a substantial and'mated'al ssue crucial to the commission's determ ha. tion, a nearing on the matter ..wiU be lield at the above .dress at 9:00 am on january 1995 in conformah6e wire 20 'AA(: ~S.S40. If a nearing is to . be held, .interested parties may · .confirm '.this §Y calling the .Commission's office (907) 279-1433 after- De~:ember 1-% 1~4. ~f no protest is filed, C. bmmi~ssion ·will. consider · .issuance of the orde.r witfiout : hearlng .... ' a ',,~2"71" '""¢ 't"::q ":" ..' ~ .. ::'~.:.'~.....'- ._...,,. at~e~'d the /~q~?~r3 ina," ~e¢em~e~ / '°'?~eus~,~" A. DoU.,~.ass',^...' ' ' ' ' r AlaSKa ~" . commlsslofle , . and Gas Conservahon : c°mmissi~ner 30 1994 i p~.~_L~: Novemoer a~'.J---~-~--'---- ~1 Unocal Energy Re!,"'~j Unocal Corporation ' 909 West 9th Avenue, RO.~.,x 196247 Anchorage, Alaska 99519-6247 Telephone (907) 276-7600 Facsimile 263-7698 UNOr..AL( November 21, 1994 Kevin A. Tabler Land Manager Alaska Commissioner Russell Douglass Alaska Oil & Gas Conservation Commission 3001 Porcupine Drive Anchorage, Alaska 99501 Trading Bay Unit State of Alaska Proposed Commingling of Kenai "G", Hemlock and West Foreland Oil with Undefined Pool in TBU State Well M-32 Dear Commissioner Douglas: Unocal requests Administrative Approval to commingle Jurassic production from Trading Bay Unit State M-32, in the McArthur River Field, with the Middle Kenai "G" (G-zone), Hemlock and West Foreland Pools, through the Committee's authority granted in Conservation Order 80 Rule 5. Production from Well M-32 will be from an undefined Pool (Jurassic) underlying the defined West Foreland Pool. This request is made in anticipation of production from M-32 upon completion of the well. Upon approval of this request, the Middle Kenai "G", Hemlock and West Foreland intervals in Well M-32 could be perforated, produced and commingled with production from the undefined Pool after proper evaluation of the Jurassic potential. The timing and sequence of this commingling effort will be in such a manner as to result in the highest economically obtainable oil rate, while ensuring the conservation of oil and associated gas reserves in each of the Pools. This request for Administrative Approval is based on the history, geology, production and information obtained from the nearby offset Well M-28. In addition, M-32 as a horizontal well bore in the Jurassic, will encounter much more section than that encountered in M- 28. Hence, the initial production rates are likewise expected to be higher than that achieved in M-28. There will be a period of time for evaluation of well performance prior to actual commingling in the well bore. Application for a designated participating area and RECEIVED NOV 2 8 1994 Alaska 0il & Gas Cons. CommOn Anchora~,~ associated pool rules will be made if production from this horizon is deemed to be technically and economically justifiable. GEOLOGY The drilling of Well M-28 resulted in the completion of a stratigraphic interval below the current West Foreland Pool as defined in Conservation Order #80. Conservation Order 80 defines the West Foreland Pool as the stratigraphic equivalent to the drill depths between 10,208 and 11208 feet MD in Well G-7. It has been determined that the perforated interval in Well M-28 is stratigraphically deeper than the base of the West Foreland Pool as defined in Well G-7. This stratigraphically deeper interval has been determined to be Jurassic in age. Well M-28 is the first well to produce from the Jurassic interval found below the productive West Foreland reservoirs in the Trading Bay Unit. The Jurassic interval is an overpressured, volcaniclastic reservoir .that has undergone Iow grade metamorphism. The fluid flow is principally through fractured rock. The various formations within the Jurassic are believed to be the source rock for all the TBU oil reservoirs which includes the Middle Kenai "G", Hemlock and West Foreland. The depositional environment and rock characteristics of the Jurassic are clearly distinct from the principal Tertiary McArthur River reservoirs which are comprised of sandstones, conglomerates, and shales. HISTORY Well M-28 was completed in the undefined Pool in June 1990. Despite efforts to stimulate production through reperforation and stress fracture treatments, analysis of a pressure build up test performed in December 1990 indicated that M-28 was severely damaged. The analysis showed a skin factor of + 100 with a corresponding formation permeability of 6.3 md. In March 1991, an extensive fracture stimulation was conducted on the well. This treatment increased production to 1,500 BOPD from the prefracture stimulation rate of 170 BOPD. In early July 1991, the fluid rate began to drop dramatically while maintaining a stable 35% watercut. A downhole pressure build up survey obtained in the well at this time confirmed completion damage with a skin of +56 and formation permeability of 5.6 md, similar to the values obtained before the fracture stimulation. Well production from the Jurassic stabilized at approximately 160 BOPD at 30% watercut by November, '1991. In January 1992, perforations were added in the G-zone and West Foreland Pools and commingled with Jurassic production. Since that time, allocated production from M-28 in the Jurassic has declined from 160 BOPD to approximately 30 BOPD. COMMINGLING Production from M-28 at 160 BOPD was not economically justified. Attractive uphole targets in the Middle Kenai "G" and West Foreland Pools necessitated either the abandonment of the Jurassic completion or commingling with the other pools. Therefore, RECEIVED NOV 2 8 1994 A~t~ska Oil & Gas Cons. Commission Anchorage the Middle Kenai "G" and West Foreland Pools were perforated and commingled with the undefined Pool production. It is possible similar action will be required in M-32. Commingling the production from the M-28 was the most economical method of completion which avoided waste and will maximize ultimate hydrocarbon recovery. Fluid compatibility tests have been performed with the produced fluids from the current Jurassic Pool, G-zone and West Foreland Pools. The purpose of these tests were to identify any problems which might be encountered with mixing of the produced fluids in the well bore and potentially in the reservoir itself. Test results to date show no incompatibilities between the produced fluids. Reservoir management of the associated Pools will be possible. Allocation of produced fluids can be accomplished in the future with production survey logging. In conclusion, Unocal is requesting Administrative Approval to commingle production from the undefined Jurassic POol in Well M-32 with the Middle Kenai "G", Hemlock and West Foreland Pools penetrated by the well. Your consideration and approval' prior to the completion of the currently drilling well is appreciated. .,.,,~ry truly yours, HOV 28 ~994 Gas Cons. Commission Anch0ra~