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Home My WebLink AboutCO 225Conservation 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' s~ ~~ko~ of various kinds [] Other BY: ARIA Scanning Preparation TOTAL PAGES Production Scanning Stage COUNT FROM SCANNED DOCUMENT: I PAGE PAGE COUNT MATCHES NUMBER IN SCANNING PREPARATION: X YES NO Stage 2 IF NO IN STAGE 1, PAGE(S) DISCREPANCIES WERE FOUND: YES NO (SCANNING IS COMPLETE AT THIS POINT UNLESS SPECIAL A'I-rENTION IS REQUIRED ON AN INDIVIDUAL PAGE BASIS DUE TO QUALITY, GRAYSCALE OR COLOR IMAGES) General Notes or Comments about this Document: 5/21/03 ConservOrdCvrPg,wpd STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 3001 Porcupine Drive Anchorage, Alaska 99501-3192 Re: THE APPLICATION OF MARATHON) OIL COMPANY regarding ) commingling of production ) in Trading Bay Field and ) definition of the Trading ) Bay West Foreland NE Oil ) Pool. ) Conservation Order No. 225 Trading Bay Field Trading Bay "G" NE Oil Pool Trading Bay Hemlock NE Oil Pool Trading Bay West Foreland NE Oil Pool January 16, ].987 IT APPEARING THAT: i · Marathon Oil Company submitted an application dated November 20, 1986 requesting a Conservation Order allowing commingling of produced fluids in the North Trading Bay Unit No. S-8 well. Marathon proposes to commingle produced fluids from the Trading Bay "G" NE and Trading Bay Hemlock NE oil pools with fluids from the Trading Bay West Foreland NE oil pool in said well. 2. Marathon Oil Company submitted Supplement A to the subject application dated November 26, 1986 requesting an order defining the Trading Bay West Foreland NE oil pool. · Notice was published in the Anchorage Daily News on November 27, 1986 of an opportunity for a public hearing on January 7, 1987. · Neither a protest nor a request for a public hearing was timely filed. Accordingly, the Commission will in its discretion, issue an order without a public hearing. FINDINGS: 1. Static reservoir pressure is approximately 3100 psi in the commingled Trading Bay "G" and Hemlock oil pools and approximately 6000 psi in the West Foreland oil pool. The draw-down bottom hole pressures estimated for well S-8 approximate 1500 psi for the "G"/Hemlock and 1700 psi for the West Foreland under planned producing rates. Conservation Order No. 225 January 16, 1987 Page 2 · Engineering analysis indicates that under the proposed commingling conditions approximately 35 BOPD can be produced from the West Foreland pool by well S-8. · Production from the "G" /Hemlock pools was commingled and reported as a single pool in 1971 and thereafter as part of a pressure maintenance project permitted by Conservation Order No. 108. · Commingling of production from the West Foreland oil pool with production from the "G"/Hemlock oil pools within the wellbore will allow depletion of the marginally economic West Foreland Pool while increasing the recovery efficiency from the "G" /Hemlock pools. · Inasmuch as Marathon Oil Company has 100% interest in the S-8 wellbore drainage area and royalty interests in the "G"/Hemlock and West Foreland pools are owned 100% by the State of Alaska, correlative rights will not be adversely affected by commingling of production from these pools in the S-8 wellbore. CONCLUSIONS: Commingling of the production from the referenced pools in the wellbore of the S-8 well may result in recovery of hydrocarbons which otherwise would not be recovered and can be accomplished without inducing waste and without adversely affecting protection of correlative rights. · Initial allocation of 35 BOPD to the referenced well from the West Foreland pool appears reasonable; but should be confirmed by testing after start up of commingled production. NOW, THEREFORE, IT IS ORDERED THAT: RULE 1 Definition of the Trading Bay West Foreland NE Oil Pool The Trading Bay West Foreland NE Oil Pool is defined as the accumulation of oil common to, and which correlates with, the interval 10,758 feet to 11,750 feet in the Atlantic Richfield North Trading Bay Unit No. S-8 well. RULE 2 Commingling Commingling of production from the Trading Bay "G" NE, Trading Bay Hemlock NE and West Foreland NE oil pools is permitted in the wellbore of the Atlantic Richfield North Trading Bay Unit No. S-8 well. Conservation Order No. 225 January 16, 1987 Page 3 RULE 3 Allocation of Production Initially the first 35 BOPD of production from the com- mingled well is allocated to the West Foreland oil pool, and the remainder of the production to the Trading Bay Middle Kenai "G" NE and Hemlock oil pools. The production rates from the West Foreland and "G"/Hemlock pools must be determined within three months from the start of sustained production in a manner satisfactory to the Commission. DONE at Anchorage, Alaska, and dated January 16, 1987. ~ia~{ac~t ~%d~G~Co~in~g~ation Commis s ion Lonn±e C. sm±th,. Comm±ss±oner Alaska 0±1 and Gas Conservat±on Comm±ss±on W. W. Barnwell, Commissioner Alaska Oil and Gas Conservation Commission Production~ aager Alaskan Production United States Marathon Oil Company P.O. Box 102380 Anchorage, Alaska 99510 Telephone 907/561-5311 April 15, 1987 State of Alaska Oil and Gas Conservation Committee 3001 Porcupine Drive Anchorage, AK 99501 Gentlemen: Conservation Order No. 225 Trading Bay Field Trading Bay "G" NE Oil Pool Trading Bay Hemlock NE Oil Pool Trading Bay West Foreland NE Oil Pool Marathon Oil Company~ in accordance with Conservation Order No. 225, rule 2, has recompleted North Trading Bay Unit Well S-8 for commingled produc- tion from the pools referenced above. Production began on January 24, 1987 at a stabilized, initial production of 372 BOPD, 1396 BWPD, 76 MCFD. In accordance with rule 3, concerning allocation of production, Marathon proposes an allocation of 25 BOPD to the West Foreland Oil Pool and the remainder of the production to the Trading Bay "G" NE and Hemlock Oil Pools. This allocation is based on an engineering analysis of the enclosed sub- surface production logging survey and a subsurface pressure survey. The pressure survey indicated a bottom-hole flowing pressure of 2700 psi in the West Foreland Oil Pool. This is higher than the anticipated bottom- hole flowing pressure of 1700 psi, resulting in a lower than expected West Foreland production rate. Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: Application of Marathon Oil Company to allow commingling of production from the Middle Kenai "G" and Hemlock Oil Pools with Undefined West Foreland Oil Pool in the wellbore of Well S-8. Marathon Oil Company by letter dated November 20, 1986, has requested commingling of produced fluids in the North Trading Bay Unit (NTBU)'well S-8. Marathon proposes to commingle fluids from the NTBU Middle Kenai "G" and Hemlock Oil Pool with those from the West Foreland Oil Pool in said well.. A person who may be harmed if the requested order is issued may file a written protest with the Alaska Oil and Gas Conserva- tion Commission, 3001 Porcupine Drive, Anchorage, Alaska 99501 and request a hearing on the matter. If the protest is filed timely and raises a substantial and material issue crucial to the Commission's determination, a hearing on the matter will be hel'd at the above address at 1:00 p.m. on January 7, 1987 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 12, 1986. If no proper protest is filed, the Commission will consider the issuance of the order without a hearing. Commissioner Alaska Oil & Gas Conservation Commission Published November 27, 1986 mens NS ENGINES ', ;.: I big cam,' Mt, Engine S & '4 I1' van; S 1 gito.'$4,0(]00BO.. iT TRAILERS,'3 ramp, TpIP Along, DUMP' TRUCK !~ m0 OBO. 1972 KEN- tRACTOR : ID OBO. good ; OR Mike !'FTO0, 16' MISSIONS OF AK eli-Mil IUILT T NEW ' custom, double ~nowmachlne' trailer, 7'XI PU- BOX;~ I~ Wired. ~ Hauls TRAILER~ .S' Oll ,- Gis Con,rvotlon public / Patti Servia isonahle rates. 276-0072. - . 8e.lce Se.Ici".i':r~;'~;:~:::"890' Notlcei.~'~:.';l,~. 900 . EPAIRs : I;ARGKS~"StQCK Of new 0.,.~. .TIRES (,) new portiee.mIy Con. llr.m thl.l.by ~ Iteel whfllI in AK. Domee.flc & 'alia t75.7S RI3, ill ~ ',ceiling th~ (:ommluIml_'a gill. ce, · · · .12, I~M. If no Such prmest ii . 'medill. Tune.: .i,..mJ~llCxU~ll~l~ll, Ill,i:; lis, white ~ $i ,.ffOT) 3rF1433, oilier Duc.emoor · :timely filed, IlO Commission will cemldor I1~ Issuance of In · ~&-~171 MON-FRI I-I //TIRES, 4, new, -.~ '...: LIMITID OFPER , . ardor will, ut n bearlnI. ~ EngMe rubulldlng Iw If I~S. rlma . ' ::~ - II,O00 mile werranW. Cmll ,F..i._] ; · Commissioner ~ '- ": :~ """ your repair fltq<l~. 6al-~ ' ., I~S-lS, fll Ea- Alasko Oil L Gan Comervetlon t~12 LINX ~arts for ,ale. Inter- Commission ostod~ Call Joanno, homo Coronndlx, '77. Good ; .?.. ,. i ~I4-MS4, work ~4~700~ ' ~ trans, needl work. $300 pub:November ~/, I~ ' ~ Ix~ for .~. ~ TRANSMISSIONS OF AK ' ~ ..,,.~ ,.;.. . .. ~VISA S&1-S433 : MC ' " lr/7 CHEV PU ~lth new engine, front end. dam.age: 1~86 Chevy CMa El Camlno 43(4 running gear, heads, many CHEVY 4~0 lower end, needs new CHEVY, Suburban ~lole, 41law Radial mounted.. &,, b PARTS PARTS PLU =XCHANGE ~'dtS & REPAIR ~':: EIDE STREET VW, Ifa' .'?'~ '~ ':':'. '~ Ifil [trenomllllOll' i IMIIIION' CON-.: RTI for I~1~ Ford ~ Engi~, ~-4711 ~. ~iDTO IUY~ . -' e ~ ~1 Cimi~ ~111, :RH 'SHOWPL~- :'.~. :~..., ...~,~ ~-1411. ' ~ ....... ~ ? ' ~'13 Mlzdl PU, roy~, pu, iIi~; '~ ~iiNI, I7~; '~ El-: u ~,~Toyoti, ~.. ~ . / rich Ri~iI~ ,mouth for MIKES ' .."- lOgY & ohs starting hr. · 27~!.~t7:! · MUST SELLs Wre~ked euick, 4~' Rebuilt engine &trana. many extras. A~ la. $S.~ OBO.__~_-6~)4 "~ r ~ · ' NEW ,~;:; Fenders - D~rs ~'u~s-Bumpe~s-ETC.*~ ' Speclol Fram $19S ~ Rebulldi Nationwide'Warranty Available · Free OH Anchorage Towing , RV's, For., Dom.,Clufches ~ $~ OFF Rea. Price _ ':'~-~ VW EXCHANGE ,· : ~:' ~ VW PARTS & REPAIR '~':', I MUSTANG ' ~4" '. -.' ) 243-11~1 :.~./~:~ 2~i0 EIDE STREET, --::~.' · - : :;~',-.'. lt561-6~16, . '~'::'=' 'C.::L':.'. :, VW, It71' ...'; '~" . '( ' Rabbit '~)ortl (tranlmllllOn 17o) ~4-~w.. ' ' ' WkNTEDs EMISSION CON-. tOL PARTS for 19~ Ford irler 1K0 E Ina WANTED TO BUYs . Chevelle or El Camlno grill, Datsun B2'10 pass. door., I~-~dWPLOW ,. ua0. -,. .... ..~'~,~ Mazda PU, $1100; 'e3 F)U, $11001 '80 Peug~t, CMl parts;. 4-12.50xl6.S -: -: BF Goodrich Radlall.'AII tm' .. I:Notlca M Public Hearing · :';~!:'~"/sTATE' OF ALASKA ":..'."' Alaska OII and Gas ' .' ~ Co~seryatlo~ Commission , Re:"ApplJcetlon Of Marathon ail'Company to allow com- mingling of pr~uctlon from the Middle Kenal "G" end Hemlock Oil pools with Unde- fined West Foreland OII Pool In Ihe wollbore of Well S-I. . ' . ., , ,~.! 'A~I'~)II cimpen~ by let- · has requested c g preduced"fluIds In the North Trading Bay Unit (NTBU) well S-,.'Marathon proposes to com- mingle fluids from 1he NTBU Middle Kensl "G' and Hem' lock OII pool with those from the West Fofoland OII Pool In laid well... .. , perk)n"who may. be. he. rm~ I~lhe requested oraer Is lesueo, may file I wrltlen protest with the Alaska OII and Gas Conser- vation Commission, 3001 Porcu- no Drive, Anchorage, Alaska S01 end 'request a hearing the matter. If the protest Iliad timely and raises a sub- stantlal end material Issue cru- elm to the commlsslon'e deter. ruination, a hearing on the matter will be held 11 the.. above ncldress at I:0~ p.m. January ~, Itl/, In cantor- ' mince with 24 AAC ~.MO. If o hearing la to be held, Interested Commission, i Drive, Ancl~n ~01 and'request a the matter. Il the filed Ilmely and p. entlel and mate cwl te lhe nlllOn~ · will be nddress al h com- wilh Unde- Oii Pool in dl S-I. lng M in the North (NTBU) well Io corn- 1ho NTBU and Hem- those from OII Pool in bi' hlrmed Is Issued, with C~nler- Porcu- klaskl sub- pill.les m calling the (~i7} 27~-1433, after I1, lIM. II ~e proge{ timely filed, 11~ C will conllder order wltheul , · ,~ :: · .- ...'.. ,ncnorage ':-i' ',.,- .,- Ir '" · - - - ii .= i ' will be :kid at the sddrm It January 1, 1tl7, In cofifor- mince with 24 AAC ~S.S40. If · bearing Is to be held, interested · porfles may confirm this by calling the Commlsslon'o office, (~07} 27~-1433, after Docemher: I:i, 1~. I! no IUCb grofest Is . 'timely filial, the Commission ~: ~:. will conlidor the iiluence QI In ; '~ '.-¢'. order Wflhout & hearing. . . iiiii,': .,: ,. . . . ..~, T'-.. -: II/LMmll C, SmlIIl:~3 ,. ' :/.-.~ 'Commissioner .,~-.':' ~ '. :' : '~:- :~ Alaska Oil & Oa~ Coq~ervetion ?, ".': Commission .... a. ~ ' P, ~ .? ':L' P.~=' November D, ~,~: ', NOTIC,~ OF PU~BLIC Public ,::,. '.~.'.(/.,.~:;.:, "Noticea"~.~;i~%:'~.'.' 900; '- '~l'otice of Public Hearing ~:'i .. ;. ~ :)1. ;r~:"i.".k. STATE OF XLASKA',,'.": .'./;:,.:- · Alaska Oil end Gas ', Conservation Commission- '~a: Th." dpplicalion of ARCO · Alaska, Inc. for a change In 1he ;minimum strain, propertlet' of :surface coslng'.ueed In th{ Prudhoe Bay Field. · , ...,,- . '~,; :l..;~."..",'.,' 'The ~ll~ka OII lad Gel Conser-': vision Commission hen been. requested, by letter dated No- vimber 1, I~M, lo Issue,. an. order to amend"RulI 3(cJ Conservation Order No. 14S to change the.minimum etril~ re- qulremenls for the iurtace cas. the Alalka OII and '(}el Conser. : Vallon Commlallon, 3001 Pm'cu-'. Idne Drive, Ancl~rege, Alaska .;.301 and reque$l a heorlng :ilhe metier. If tM profed II 'filed timely end raises a sub- staflllal and material clll lo lhe Commission's defer- mlnallon, a henrtng MI lbo :metier will be held at the , abevo addrm al t=N AM ..dlnuary ~ I~1~, In cantor- monte with 24 AAC ~5.14~. If bearing IS fo be held, Inleresfed partJe$ may confirm this by calling the Commission's office, · (~Q7) 279-1433, after December I~, 1986. II no proper pried Is. ": timely filed, the CommisslMI f. ' Will consider the Issuance of In order without .I hemrlng. )~ ..: . '/i/L(~mlo;C.' Smith ~!':.~.?,':k' . ,. CommlsslMm' "~'~":-;" <' "· Alaska OII & Git CMlla~'votlon' ' · ~ Commff41on Publ Nov;mber 2/, Im ,,: ~ '. ' ,i ~ . = · AO-OI-~T/S :! ~..' '.,; :':' ." ~. ~; · ' Notice of Public Hearing · ,. ?-'~ ~'STATE OF ALASKA ~ .' . : ~ [, AlesKa OIl and Ga$ :'~.~ '. ;~'Conservatlon Commission ':,'?' .'~.~';.... , .' . · , . ,, ... Ro:-.'The application of 'ARCO' ' · Alaska, Ir~c. for n change In the j minimum slrain pr°POrtia~ of' surface casing used In the Ku- · paruk River Field.. . .. : Zh~ Ai~n o1'1 ,nd Oil cMI"r- vatlon Commission hal been requested, by letter deled No- vember 7, 19M, to Issue an order to imend Rule 4(d) of Coflsorvelion Order Ho. 173 to change the minimum attain re-. quirements for the surfaco cee- If the requested order Is IssUea, . may file I writlen protest, prl- ~' lO DKimber 12, 19M_, with the AIIIKI OII and Gas conser- vation Commission, 3Q01 Porcu- pine Drlye, Aec .hora~, A. leskl ~501 one reques~ i nearing on the matter. If tho protest is flied'timely and ralsos a sub- stantial and material issue cru- cial lo the commission's deter- mlnation:l~l heorlng on the -F STATE OF ALASKA ADVERTISING ,ORDER A0- ADVERTISING ORDER NO. Anchorage Daily News P. O. Box 149001 Bnchorage, AlasP~ 99514-9001 Alasl~ Oil & Cas Coms~tion Cccmission 3001 Porcupine Drive Anchorage, Alaska 99501 AGENCY CONTACT Galyn PHONE (907) 279-1433 DATES ADVERTISEMENT REQUIRED: 08-5575 DATE OF A.D. ~er 25, 1986 ~vember 27, 1986 SPECIAL INSTRUCTIONS: AFFIDAVIT OF PUBLICATION UNITED STATES OF AMERICA STATE OF ~ ~ DIVISION. SS BEFORE ME, THE UNDERSIGNED, A NOTARY PUBLIC THIS DAY PERSONALLY APPEARED ~WHO, BEING FIRST DULY SWORN, ACCORDING TO LAW, SAYS THAT HE/SHEISTHE ~~ ADVERTISEMENT, OF WHICH THE ANNEXED IS A TRUE COPY, WAS CONSECUTIVE ~CATION APPEARING ON THE c~~AY OF 19~_~_, AND THAT THE RATE CHARGED THEREON IS NOT IN EXCESS OF THE RATE SUBSCRIBED AND SWORN TO BEFORE ME THIS '~ DAY OF ~"% NOTARY PUBEIC FOR'STATE OF MY COMMISSION EXPIRES RECE Alaska 0ii & Gas Ancl REMINDER-- INVOICE MUST BE IN TRIPLICATE AND MUST REFERENCE THE ADVERTISING ORDER NUMBER. A CERTIFIED COPY OF THIS AFFIDAVIT OF PUBLICATION MUST BE SUBMITTED WITH THE INVOICE. ATTACH PROOF OF PUBLICATION HERE. NotiCe, of PUblic Hearing'., :STATE'OF ALAS'KA ' Alaska 011 and Gas , ', conser'¥atlon comm'l~ion~ ~ to' ,alloW ,, com~/ production fro,m [ Kenal" ,,G", and t IVED Cons. Commissior~ forage ,,, ' . 'C0mml~Sloner :: ' Alaska Oii &' Gas Conservation com,m~ss~on , ,, ., Pub: November 27; 1986 , 02-901 (Rev. 6-85) PUBLISHER Marathon Oil Company November 26, 1986 State of Alaska Oil and Gas Conservation Committee 3001 Porcupine Drive Anchorage AK, 99501 Doyle~ )ones Product,on Manager 1~©~',i!~.~,--- .~_~._~_~ Alaskan District Production United States P.O. Box 102380 Anchorage, Alaska 99510 ~;;~.~ _ ...... ~.~ Telephone 907/561-5311 NOV2 8 ]986 .-~laska Oil & Gas Cons. Commission Anchorage Gentlemen: ~p.p.lic~tion for an Order. Allowing the Commingling of Production from the Trading Bay "G" NE Oil Pool and Trading Bay Hemlock NE Oil Pool with Production from the Trading Bay West Foreland NE Oil Pool in the Wellbore of Well S-8 to Allow the Allocation of the First 35 BOPD of Production from the Commingled Well to the West Foreland Oil Pool Without Periodic Testing; and to Allow Required Separate Interval Testing to be Conducted by the Use of Subsurface Production Logging Devices; North Trading Bay Unit, Trading Bay Field, Cook Inlet, Alaska. Supplement A: Application for Definition of the Trading Bay West Foreland NE Oil Pool. Pursuant to the Oil and Gas Conservation Commission Regulations and Applicable Statutes of the State of Alaska, Marathon Oil Company, as Operator of the North Trading Bay Unit, presents Supplement A to the application referenced above to the Alaska Oil and Gas Conservation Committee (AOGCC) for an order defining the Trading Bay West Foreland NE Oil Pool as follows: The Trading Bay West Foreland NE Oil Pool is defined as the accumulations of oil and gas occurring in the interval which correlates with the interval 10,758' to 11,750', dual induction log depth in North Trading Bay Unit State Well S-8. Exhibit 1-A is a dual induction log for Well S-8 showing the proposed West Foreland Oil Pool. The West Foreland Oil Pool has been defined as extend- ing from the base of the Hemlock Formation to the top of the Jurassic Era formations. Mr. Russ Douglass, AOGCC, requested additional information on the North Trading Bay Unit pool names and for pressure information on the commingled "G" and Hemlock Oil Pools and the West Foreland Oil Pool. These subjects are discussed below. In the initial order application to the AOGCC, dated November 20, 1986, the existing oil pools in the North Trading Bay Unit were referred to as AOGCC November 26, 1986 Page 2 the North Trading Bay Unit Middle Kenai "G" and Hemlock Oil Pools. To be consistent with Conservation Order No. 69, these pools should have been referred to as the Trading Bay "G" NE Oil Pool and the Trading Bay Hemlock NE Oil Pool. At the present time, Well S-8 is completed as an oil producer in the West Foreland Formation. West Foreland reservoir pressure is approximately 6,000 psi (-10,300'SS), calculated from wellhead pressures after perforating and DST data from wells Trading Bay State #1 and North Trading Bay State Well S-2DPN. Reservoir pressure in the commingled Trading Bay "G" and Hemlock NE Oil Pools, as measured in Well S-1RD, is approximately 3,100 psi (-9,800'SS). The completion of Well S-8 is being designed for a flowing bottomhole pressure of about 1,500 psi on the "G" and Hemlock and about 1,700 psi on the West Foreland, thus ensuring drawdown on both zones. Please refer any further questions on this application to Brian Rothkopf. Sincerely, DLJ:BWR:RE8-30mh Enclosures ECEIVED MOV 2 8 $86 Alaska Oil & (~as Co,Is. Anchorage Marathon Oil Company November 20, 1986 State of Alaska Oil and Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99501 Gentlemen: Doyle L.¢('' les Production ~vlanager Alaskan District Production United States PO. Box 102380 Anchorage, Alaska 99510 Telephone 907/561-5311 Application for an Order Allowing the Commingling of Production from the McArthur River, North Tradin~ Bay Unit, Middle Kenai "G" and Hemlock Oil Pool with Production from the North Tradin~ Bay Undefined West Foreland Oil Pool in the Wellbore of Well S-8 to allow the Allocation of the First 35 BOPD of Production from the Commingled Well to the West Foreland Oil Pool Without Periodic Testing; and to allow Required Separate Interval Testin~ to be Conducted by the Use of Subsurface Production Lo~in~ Devices; North Tradin.8 Bay Unit, Cook Inlet, Alaska. Pursuant to the Oil and Gas Conservation Regulation 20 ACC 25.215(b) and applicable statues of the State of Alaska, Marathon Oil Company, as Operator of the North Trading Bay Unit Agreement, presents its application to the Alaska Oil and Gas Conservation Committee for an order concerning the North Trading Bay Unit State Well No. S-8 to allow the following: The commingling of production from the North Trading Bay Unit Middle Kenai "G" and Hemlock Oil Pool with production from the North Trading Bay West Foreland Oil Pool in the wellbore of Well S-8. · The allocation of the first 35 BOPD of production from the commingled well to the West Foreland Oil Pool and the remainder of the production to the Middle Kenai "G" and Hemlock Oil Pool without a requirement for periodic testing of separate intervals except as may be requested by the Commission or deemed necessary by the operator. Be The testing of the separate intervals in Well S-8 that may be required or necessary to be conducted by the use of subsurface production logging devices in common usage by the industry for this type of data gathering. At the present time, Well S-8 is completed as an oil producer in the West Foreland Pool. Due to poor West Foreland reservoir rock quality, this well is marginally economic to produce in its present status. The ability to commingle production from the West Foreland Pool with production from the Middle Kenai "G" and Hemlock Pools within the wellbore will allow the most efficient recovery. State of Alaska November 20, 1986 Page 2 Therefore, the applicant requests that this application for the issuance of an order allowing the items stated above be set for hearing and that notice of the hearing of said application be given as required by Alaska law and the Alaska Oil and Gas Conservation Regulations. S~cerely, Doyle L...Ion DLJ/BWR/lb RE7/32 COMMINGLING OF WELL S-8 T e s t imony The following testimony is presented in support of the request to allow commingling of production from the North Trading Bay Unit Middle Kenai "G" and Hemlock Oil Pool with production from the North Trading Bay Field West Foreland Oil Pool in the wellbore of Well S-8; to allow the allocation of the first 35 BOPD of production from the commingled well to the West Foreland Oil Pool and the remainder of the production to the Middle Kenai "G" and Hemlock Oil Poo_~__._~l ~it~o~t~a requirement for perio--~ic-te-~ting of the separate intervals except as may be requested by the Commission or deemed necessary by the operatoK; and to allow the testing of the separate interval in the well that may be required or necessary to be conducted by the use of subsurface production logging devices in common usage by the industry for this type of data gathering. This request is similar to other Cook Inlet Oil Pool commingling exemptions granted by the Commissione An example, allowing the commingling of the "G" Oil Pool with the Hemlock Oil Pool in Well K-10, McArthur River Field, Trading Bay Unit, is attached as Exhibit 1. The location of Well S-8 is shown on Exhibit 2 which is a structure map of the North Trading Bay Field drawn on the top of the Hemlock and West Foreland for- mations. The well was initially completed in April, 1972 as an oil producer in the G/Hemlock Oil Pool. The Atlantic Richfield Company, then operator of the North Trading Bay Unit, was granted an exception to Conservation Order No. 69 and to Title 11 of the Alaska Administrative Code, Section 2061 (b) to permit the drilling and dual completion of the well in the West Foreland and G/Hemlock Oil Pools (Exhibit 3). The well was completed as a single G/Hemlock Oil Pool producer and produced a cumulative volume of 2,229,930 STBO until May 1985 when Marathon Oil Company abandoned the G/Hemlock Oil Pool and completed the well on · . July 25, 1985 as a single West Foreland producing oil well. Exhibit 4 is a per- formance curve of the S-8 West Foreland completion. Performance has been disappointing because of poor reservoir rock quality. Several attempts to stim- ulate production by acidizing and reperforating have been unsuccessful. It is estimated that a G/Hemlock completion in Well S-8 could produce 200 BOPD. The ability to commingle production from the West Foreland Oil Pool with the G/Hemlock Oil Pool within the wellbore will allow Marathon Oil Company to de- plete the marginally economic West Foreland Pool while increasing the recovery efficiency in the G/Hemlock Pool. The correlative rights of all affected parties will be protected if production from the G/Hemlock and West Foreland Pools are commingled in the wellbore of S-8. Marathon Oil Company has 100% interest the S-8 wellbore. Mobil Oil Corporation and Texaco, Inc. have relinquished all rights to future production from existing wellbore completions from the Spark Platform. Royalty interests in the G/Hemlock and West Foreland Zones are owned 100% by the State of Alaska. The S-8 well will be completed as shown on Exhibit 5. A packer will be set at the top of the G/Hemlock Oil Pool and the G/Hemlock and West Foreland Pools will be commingled within the wellbore. Recent production tests on S-8 have shown the West Foreland Fool has a productive capacity of approximately 50 BOPD. Res__~erv~ineering a~es a production rat.e of 35 BO~D can be _~expect'ed under commingled operation for an extended period of time. This is due to the high crestal structural position, high ~-e'servoir pressur~e, and the: Commingling Well S-8 Testimony Page 2 absence of any other West Foreland drainage points in the field. Since the West Foreland Pool production rate is expected to decline slowly throughout the life of the commingled operation, it is proposed that any future sub-surface produc- tion logging sur~used to ~alldcate production. The tools used for this purpose would be of a type in service on an industry-wide basis. The propor- tionate amount of fluid being produced from each zone would be measured during actual commingled production. Readings would be made in the total commingled flow stream above both zones. The data would be obtained and interpreted by one of several service companies which are specialists in this field. This method of testing has several advantages. The test is conducted under actual operating conditions and is, therefore, a better representation of true distribution of production; there is no interruption of production from either zone while test- ing operations are being conducted so deferral of production is minimized; and wireline operations required for this type of test are less likely to result in down-hole difficulties ultimately requiring a workover in which the well has to be killed in order to pull tubing. ~E?/~? Exhibit 1 STATE OF ALASKA DEPARTMENT OF NATURAL RESOURCES DIVISION OF OIL AND GAS Alaska Oil and Gas Conservation Committee 3001 Porcupine Drive MARATHON OIL COMPANY ANCHORAGE, ALASKA M. L. Lo vm n 2g Anchorage, Alaska 99504 Re: THE APPLICATION OF UNION OIL ) COMPANY OF CALIFORNIA for an order ) allowing the commingling of produc- ) tion from the McArthur River Middle ) Kenai "G" Oil Pool and the McArthur ) River Hemlock Oil Pool in the well ) bore of the Trading Bay Unit State ) Well No. K-10. ) Conservation Order No. 107 ~ McArthur River Field Middle Kenai "G" Oil Pool Hemlock Oil Pool September 14, 1971 IT .APPEARING THAT: 1. The Oil'~ and Gas Conservation Committee published a notice of public hearing in the Anchorage Daily News on August 14, 1971, pursuant to Title 11, Alaska Administrative Code, Section 2009. 2. A public hearing was held August 25, 1971 at the~ above address, at which time .the applicant and affected parties were heard. . .' FINDINGS: 1. The Hemlock Oil Pool perforated interval in the referenced well will not flow but is capable Of producing approximately 200 barrels of oil per day (BOPD) by artificial lift; however, this production cannot be sustained due to paraffin deposition. , 2. Commingling the production of the Hemlock Oil Pool and the Middle Kenai "G" Oil Pool will reduce paraffin deposition by minimizing downhole cooling and should result in greater ultimate recovery. 3. Initial allocation of 200 BOPD to the'Hemlock Oil Pool appears reasonable when considering the low Permeability in the vicinity of the referenced well, the .reduction in paraffin deposition and that a pressure maintenance project is now in operation. 4. Due to the high angle deviated hole and mechanical problems, conventional production testing of each zone is not advisable but adequate tests for produc- tion allocation can be obtained by wireline subsurface production logging devices. 5. Periodic testing of the production from the separate pools will indicate possible production problems which may affect con~ningling and may indicate that changes in production allocation are necessary. Conservation Order N~"i i:," 4-, Page 2 September 14, 1971 CON CLUS I ON: 1. Commingling of the production from the referenced pools in the referenced well may result in increased recovery of hydrocarbons. 2. Initial allocation of 200 BOPD to the referenced well from the Hemlock Oil Pool appears reasonable. . ..... NOW, THEREFORE, IT IS ORDERED THAT: ~, ' ..... 1. Union Oil Company of California be permitted to commingle production, from the referenced pools in the referenced well ..... .' '. .,. ' 2. For each day produced, all production-from the referenced well up to and including 200 BOPD shall be allocated to the Hemlock Oil Pool and all produc- tion in excess of 200 BOPD shall be allocated to the Middle Kenai "G" Oil Pool. 3. Within six months after initial commingling,, the operator shall run a sub- surface production logging device in the...referenced well to determime the'. amount of production from each pool and furnish copies of the results to the Commit, tee within 15 days. 4. Additional tests for production allocation may be required by the Committee at not more than six-month intervals. 5. Allocation provided for in rule 2 may be changed by the Committee if tests required in rules 3 and 4 indicate the allocation is not representative. .6. The Committee may require that a suitable mechanical device be installed to prevent flow between the commingled pools if the well is shut in for, an extended period or should the Middle Kenai "G" Pool commence producing appreciable amounts of water· .,- , , DONE at Anchorage, Alaska and dated September 14, 1971. · ,., , 'Thomas R. Marshall, Jr., Executive Secretary. Alaska Oil and Gas Conservation Committee Concurren ce: Alaska Oil and Gas Conservation' Committee' · K. Gilb~e-~h, Jr. ,' Membe~ - Alaska Oil and GaS Conservation Committee Re: NOTICE OF PUBLIC HEARING STATE OF ALASKA MARAT,.4C1N ...'q, tLC~Mp/''''NY ANC~L0 R A(.-'~ E, AL. ASKA DEPARTMENT OF NATURAL RESOURCES Alaska Oil and Gas Conservation Committee Conservation File No. 107 Application of Union Oil Company of California for an order allowing the commingling of production from the McArthur River Middle Kenai "G" Oil Pool with the production from the McArthur River Hemlock Oil Pool in the well bore of the Trading Bay Unit State Well No, K-10. Notice is hereby given that the Union Oil Company of California has petitioned the Alaska Oil and Gas Conservation Committee for an order allow- ing commingling of production in the well bore in the referenced well. Pursuant to Title 11, Alaska Administrative Code, Section 2009, parties who · may be aggrieved if the requested order is issued are allowed ten days from the date of this publication in which to file a protest and request for hearing. The place for filing is 3001 Porcupine Drive, Anchorage, Alaska 99504. If such a protest is timely filed, a hearing on the matter will be held at the. above address at 9:30 a.m., August 25, 1971, at which time protestants and others may be heard. If no such protest is timely filed, the Committee will consider the issuance of the order without a hearing. Thomas R. Marshall, Jr. Executive Secretary Alaska Oil and Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99504 Publish August 14, 1971 }-3CH ~" i RM OWA File Union Oil and-,,l.[' Oivision' Western Region Union Oil Company of California 909 W. 9th Avenue, Anchorage, Alaska 99501 Telephone: (907) 279-7681 August 13, 1971 State of Alaska Oil and Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99501 Re: Application for an Order Allowing the Commingling of Production from the McArthur River Middle Kenai "G" Oil Pool with Production from the McArthur River Hemlock Oil Pool in the Well Bore of Well K-10; to allow the Allocation of the First 200 BOPD of Production from the Commingled Well to the Hemlock Oil Pool Without Periodic Testing; and to allow Required Separate Interval Testing t6 be Conducted by the Use of Subsurface Production Logging Devices; Trading Bay Unit, Cook Inlet, Alaska. Gentlemen: Pursuant to the Oil and Gas Conservation Regulations and applicable 'statutes of the State of Alaska, Union Oil Company of California, as Operator of the Trading .Bay Unit Agreement, presents its applicati°n to the Alaska Oil and Gas Conserva- tion Committee fo~ an order concerning the Trading Bay Unit State Well No. K-10 which will allow the following: .. .1. The commingling of production from the McArthur River Middle Kenai "G" Oil Pool with production from the McArthur River Hemlock Oil Pool in the well bore of Well K-10. · The allocation of the first 200 BOPD of production from the commingled well to the Hemlock Oil Pool and the remainder of the production to the Middle Kenai "G" Oil Pool without a requirement for periodic testing of separate intervals except as may be requested by the Committee or deemed necessary by the operator. RECEIVED AUG 1 6 1971 MARATHON OiL CO. Division Opergtions Mg¢, . Anchoraae, Alnska State of Alaska -2- Oil and Gas Gonservation Committee Application for an Order Allowing ComminglinO Trading Bay Unit, Cook Inlet, Alaska August 13, 1971 . The testing of the separate intervals in well K-10 that may be required or necessary to be conducted by the use of subsurface production logging devices in common usage by the industry for this type of data gathering. At the present time, well K-10 is completed as an oil producer in the Hemlock Pool. Due to poor reservoir rock quality in the vicinity of the K-10 well bore, this well is not economic to produce in its present status. The ability to commingle production from the Hemlock Pool with production from the Middle Kenai "G" Pool within the well bore will allow the most efficient recovery of oil from both formations. Therefore, the applicant requests that this application for the issuance of an order allowing the items stated above be set for hearing and that notice of the hearing of said application be given as required by Alaska law and the Alaska Oil and Gas Conservation Regulations. Alaska District EXhibit 2 LEGEND ®' PRODUCER ~' SHUT-IN PRODUCER )K SHUT-IN INJECTOR -~- ABANDONED ALASKAN DISTRICT NORTH TRADING BAY FIELD NORTH TRADING BAY UNIT COOK INLET, ALASKA TOP OF HEMLOCK C.I. : 100' 0 : 1500 i I Feet -150 I ALASKA AREA SHOWN TYPE LOG S-8 SP POROSITY -75 0 30 20 10 t I t , , TOP OF G-ZONE - OIL TOP OF HEMLOCK WEST FORELAND -9300' -9400' -9500' -9600' -9700' -9800' -10,300' -10,400' I I I I I I ! · i I I ! I ! ! I I TEXACO i I I I I I I SPARK I I I I I I I I ! I ! I I I ! I I I I ! ! I ! I ! ! ! ! I T 10 N 4/86 STATE OF ALASKA DEPARTHENT OF NATURAL RESOURCES DIVISION OF OIL AND GAS Alaska Oil and Gas Conservation Committee Exhibit 3 MARAT~©N OIL COMPANY ANC~CRAGE, ALASKA 6 197 3001 Porcupine Drive Anchorage, Alaska 99504 Re: TtlE APPLICATION OF ATLANTIC RICH- ) FIELD COI1PANY for exception to Conser- ) vation Order No. 69 and to Title ll, ) Alaska Administrative Code, Section ) 2061 (b) to permit tile drilling and ) dual completion of the North Trading ) Bay Unit No. S-8 well in the Trading ) Bay Field. ) FIIJ= ~ i)~=~TP.O¥ .... ~, Conservation Order No. llO ~/~2 Trading Bay Fi eld Trading Bay "G" NE Oil Pool Trading Bay Hemlock NE Oil POol November 30, 1971 IT APPEARING THAT' 1. 'Atlantic Richfield Company, as operator of the North Trading Bay Unit, submitted an application dated November 5, 1971 for exception to Rule 3 of Conservation Order No. 69 which permits a maximum of two completed oil wells per governmental quarter section in the referenced pools and for exception to Title ll, Alaska Administrative Code, Section 2061 (b) which, among other requirements, stipulates a minimum distance of 1000 feet between wells producing from the same pool, for the North Trading Bay Unit Ilo. S-8 well. For the same well, tile Atlantic Richfield Company anticipates a second completion in the West Foreland Formation, which is not unitized and not a de- fined oil pool,' requiring an exception to Title ll, Alaska Administrative Code, Sec- tion 2061 (b) which, among other requirements, stipulates a minimum dist'ance of '500 feet to a property line where ownership changes. 2. The North Trading Bay Unit No. S-8 directional well will penetrate the referenced unitized pools near the southwest corner of Section 26, T. l0 N., R. 13 W., S.M. and the West Foreland Formation in the northeast corner of Section 34, T. l0 FI., R. 13 W., S.M. 3. Notice of the hearing was published in the Anchorage Daily News on November 17, 1971. A typographical error resulted in the notice reading "Section 2961" in the fourth line instead of the correct "Section 2061." There were no protests to the notice. FINDINGS' 1. All of the production from the Trading Bay "G" NE and T~ading Bay Hemlock NE Oil Pools has been unitized within the area of the North Trading Bay Unit and the correla- tive rights of all affected parties are protected. 2. A pressure maintenance project has been approved for the referenced pools within the North Trading Bay Unit. 3. The completion in the defined pools will be at an optimum structural poSition and should increase the ultimate recovery of oil. ~'~ ~'~;, ~"-" ~' '~i~.~ ~. ,.~ ii!{,' ''! Conservation Order r~o. llO Page 2 November 30, 1971 4. The operator anticipates a second completion in the West Foreland Formation at an optimum structural position which maydevelop additional primary reserves. 5. The referenced well should intersect the ~.~est Foreland Formation on lease ADL 17597, jointly owned by Texaco Inc. and tile Superior Oil Company, and adequate provi- sions for the protection of correlative rights are required. CONCLUSION: The increase in ultimate recovery from the referenced pools and the possible de- velopment of additional primary reserves are adequate for exceptions to permit the drilling of this well, and a completion in the ~,lest Foreland Formation should be al- lowed if the correlative rights of all affected parties are adequately protected.. NOW, THEREFORE, IT IS ORDERED T~AT: 1. The Atlantic Richfield Company be permitted to drill the North Trading Bay Unit No. S-8 well to a bottom hole location near the northeast corner of Section 34, T. lO N., R. 13 W., S.M. and to complete the well ,in the defined pools. 2. The completion of the North Trading Bay Unit No. S-8 well in the ~,~est Foreland Formation is' approved, subject to receipt of evidence that the correlative rights of all affected parties will be protected. DONE at Anchorage, Alaska and dated November 30, 1971. ~~. Marshall, 'Jr , 'E×ecut~ve S'ecretary Alaska Oil and Gas Conservation Committee Concurrence: Alaska Oil and Gas Conservation Committee O. K. Gilbre~, Jr., Member~'~ -' Alaska Oil and Gas Conservation Con~nittee ,~,;as:~s Oi! & Gss C:"' Exhibit ~ S~URCE-MR?I~ FIELD RESERVOIR LERSE NELL - NOIR THTBFIOINO BRY - FORE Fl FOIRELFtNO POOL SP - N. TBIqOING BRY-SPRRK PLRTFOBM - S 8 OIL / DRY 85 86 87 88 89 90 Z SPA .RK pLATFORM., Well S-8 (proposed) + 300' TRBV -- 2046' 13 3/8" 61~ csg 3%" 9.3# Tbg Exhibit 5 9900' pkr 9957' 7" liner Top 9990' Tbg Tail Perforations (DIL) 10,220' - 10,275' G-2 10,295' - 10,312' G_3 10,330' - 10,365' G-4 , 10,376' - 10,396' G-5 10,418' - 10,450' H-1 10,492' - 10,526' H-2 4-------- 10,706' ' 10,758' H'4 ~ 10,775' 7" Tieback 4-------10,892' 9 5/8" 47# csg --10,998' Baker FB-1 pkr Perforations (DIL) · 11,198' - 11,230' West Foreland 11,243' - 11,300' West Foreland 11,310' - 11,320' WestForeland 4~11,323' fill' (Top 11,323')" ll,360'EZ BP ~-----11,740' PBT~ 11,829' '7" 29#