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Home My WebLink AboutCO 284Conservation 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: .... ~MARIA Scanning Preparation DATE: /~/~ ~' ~ TOTAL PAGES ~--~', - Production Scanning Stage 1 PAGE COUNT FROM SCANNED DOCUMENT: '/ PAGE COUNT MATCHES NUMBER IN SCANNING PREPARATION: ~ YES NO BY: Stage 2 IF NO IN STAGE 1, PAGE(S) DISCREPANCIES WERE FOUND: __ YES NO (SCANNING IS COMPLETE AT THIS POINT UNLESS SPECIAL ATTENTION IS REQUIRED ON AN INDIVIDUAL PAGE BASIS DUE TO QUALI'rY, GRAYSCALE OR COLOR IMAGES) General Notes or Comments about this Document: 5/21/03 ConservOrdCvrPg.wpd • INDEX CONSERVATION ORDER N0.284 1) November 14, 1991 UNOCAL requests to commingle production 2) December 4, 1991 Notice of Public Hearing, Affidavit of Publication CONSERVATION ORDER NO. 284 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 3001 Porcupine Drive Anchorage, Alaska 99501-3192 Re: THE REQUEST OF UNOCAL ) Conservation Order No. 284 CORP. to commingle produced ) fluids from the Middle Kenai "G" ) McArthur River Field and West Foreland Oil Pools with ) Trading Bay Unit those from an undefined pool in ) Middle Kenai "G" Oil Pool the TBU State M-28 wellbore ) West Foreland Oil Pool Undefined Oil Pool December 23, 1991 IT APPEARING THAT: I , By correspondence dated November 14, 1991 Unocal North Ameri- can Oil and Gas Division of Unocal Corporation (Unocal) requested an order allowing commingling of produced fluids from the Middle Kenai "G", West Foreland and an undefined oil pool in the well- bore of TBU State M-28. 2~ Notice of public hearing was published in the Anchorage Daily News and the Anchorage Times on December 4, 1991 pursuant to 20 AAC 25.540, and the Alaska Administrative Journal on Decem- ber 9, 1991. 3. No protests were filed with the Commission. Conservation Orde~ No. 284 December 23, 1991 Page 2 FINDINGS: · Conservation Order 234 allows commingling of produced fluids from the Middle Kenai "G" and West Foreland Oil Pools in the McArthur River Field, Trading Bay Unit. TBU State well M-28 has encountered hydrocarbons below the West Foreland Oil Pool. o Measured pressure in the undefined pool has declined from 7000 psi to 6600 psi after 207 Mbbls of withdrawal. · Expected rate from this limited accumulation is inadequate to sup- port continued operation as a single zone completion. 5· Well M-28 is equipped with the ability to mechanically isolate the undefined pool from the Middle Kenai "G" and West Foreland Oil Pools to prevent crossflow. CONCLUSIONS: I · Commingling of produced fluids from the referenced pools in the wellbore of TBU State M-28 may result in recovery of hydro- carbons which otherwise would not be recovered. · Commingling of these pools will not promote waste nor jeopardize correlative rights. Conservation Ordei. No. 284 December 23, 1991 Page 3 NOW, THEREFORE, IT IS ORDERED THAT: Commingling of produced fluids from the Middle Kenai "G" Oil Pool, West Foreland Oil Pool and an undefined oil pool below the West Foreland in the wellbore of TBU State M-28 is permitted. DONE at Anchorage, Alaska, December 23, 1991. David W..Johns~gn, Chairman Alaska Oi' and G s Conservation Commission Lonnie C. Smith(, C~mmissioner Alaska Oil and Gas Conservation Commission Russell A. Doug er Alaska Oil and Gas Conservation Commission #5270 STOF0330 A0-08-5687 AFFIDAVIT OF PUBLICATION STATE OF ALASKA, ) THIRD JUDICIAL DISTRICT, ) SS, Jennifer Gillquist being first duly sworn on oath deposes and says that .... .s..h.e. ........ is the .. Legal...Rep ............. of the Anchorage News, a daily newspa- per. That said newspaper has been approved by the Third Judi- cial Court, Anchorage, Alaska, and it now and has been published in the English language continually as a daily newspaper in Anchor- age, Alaska, and it is now and during all said time was printed in an office maintained at the afore- said place of publication of said newspaper. That the annexed is a true as it was published in regular issues (and not in supplemental form) of said newspaper on and that such newspaper was regularly distributed to its subscri- bers 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 ~~'. _.¢~L-/~. Subscrih,~d ~nd sworn to before me thiS~..d~y~- of.~~~ ......................... · ...... ..,,. ............ . ..... Notary Public In and for the Stere of Aieska. Third Division. Anchorage. Alaska 'MY G MI ......... '¢~; !':'..):~ ~-. :4 ~. :ll~-J .......... ~9 ..... --CLIP-- NOTICE OF' - puBLIC HEARING ' STATE OF.ALASKA . ' AlaSka' Oil i~l' Gas ' Conservation Com'mission , ,,. ~ ,, .,, i,, % ,~. :,.,,, ', Re: The aPplica~mn .of U. noca Corporation to:commingle' pro- dOcflon' ::from' River 'Field ~l~.Clt_e,. 'G'/West' Foremna 'u.' r-~.~ and an Ueclefined '.Oil, PoOl i thel welibOre 'of the Trading Bay Unit state Well M.28. , , , , , unocal. CorpOration' by. letter d~ted November ]4, '199,1 has requested approval .to. com* mingle ProduCed' fluids' in. the wellb0re of 'Trading Bay.state ,WelI M.28::ProdUcing.: h0!'izons oUl i clUde the N~Ai'tt~ur w ,d. ~1. . ...., .... .~ , .River Field ~iddle Kena.i ~i' Oll--pool, .west Forelana Pool and an undefined oil pool underl ting tl~e West Foreland. [ffbn'.'. protest :3ed~rnber 19, a~ka Oil 'alid i' .co~mission ~'i ,'/ic~mmis; :'uP,l'ne Drive~ i~a.,~,,,;~50~..,' ,.and g '.o'n,~,,the i mat- est, is~..,timely Sub.stantlal ~'"', e: ' ,e,r ~' I~earlng Is tc · · "~ee held, ntere~fed parties - ~nay confirm tl~is':bY ~:alling · the commission's offie, (90~) 279-1433 after December · :1991: If: no protest..is', filed,, the' . .';Commission 'wi'Ii;-,c~nsider, tl~e 'issuanCe ':of:the '0r'der.,Wi~thout a. 'hearing...... .,. ,., ,, ~ ",', ,, ,,t ." .:".' i R. uss~H .~..",DoUglass., .'. ..... CommissiOner', . i,' ""' :'.". .Ala:~Ka .Oil" ;& Gas '..,. Conserver on Corem ssion Pub.'".Dec. 4; :~199 : AO-0~¢_-S'~8?'~,.'"' '."': THE ANCHORAGE TIMES P.O. BOX 4O ANCHORAGE, ALASKA 99510-0040 PROOF OF PUBLICATION AO&GC 3001 PORCUPINE DR. ANCHORAGE AK 99501 VICTORIA L EDDY, BEING DULY SWORN, ACCORDING TO THE LAW DECLARES: THAT HE/SHE IS THE LEGAL CLERK OF THE ANCHORAGE TIMES, A DAILY NEWSPAPER PUBLISHED IN THE TOWN OF ANCHORAGE IN THE THIRD JUDICIAL DIVISION, STATE OF ALASKA, AND THAT THE NOTICE OF .......................... A0-08-5688 A COPY OF WHICH IS HERETO ATTACHED, WAS PUBLISHED IN ................... OF THE ANCHORAGE TIMES. BEGINNING ON .... ' ................... ENDING ON .......................... 1 ISSUES 12/04/91 12/04/91 THE SIZE OF THIS AD WAS ............ 66 LINES SIGNED .......... THE PRICE OF THIS AD IS ............ $29.93 THE AD NUMBER IS .................... TF5021050 Notice of PubllO Hearing , ,STATE OF ALASKA . ' Alaska OII and Gas '. Conservation Commission ' Re:'.;The'.a~Pl cation' 'of Up0cal C0rlS.oratl~n .to commingle, pr0r d[iCtlbn from the McArthbr River ,FI.bi'Cl. :Middle''~ Kenai ' "G"/West. 'F~'fbl~n~' O1'1 'PoOls'and,an un-'. d~fifie.d.QII, po0 in the,:~ellb°re .0f the' ~ing"B~Y' Unl't'' State. :We'ii M~28.', ,"~,,: : :,'" ' ...~Uno~al.'COrporatIon: bY letter dated NOvember.' 1,4',':~ 991.;has . re~,ue~ed.., approve ..tO c'om~' "mingl& Produb'ea'flu'id~' in. the. weltbore of Trading Bay State. Well M-28. Producing horizons : would 'nc ude the McArthur' River Field Middle kenai "G" 011 Pool, West Foreland Oil Pool and ah undefined oil pool un- derlying the West Foreland. . .A..~emon~who..msy be..harmed: . If,,[he' ,requested .orde~ .is,Issued ' m~','f i'~" ~'~ t~ pt~test prlOL.J ' '", '."' '"' e¢ '~' 'et, 19' 199~ '.,~e,.,~:~o~p~,D . ~ .~ .......... '~ith'"'{hd' A'I'~ ~t'l' and. GaS. Conaewation uommission (nere- inafter, the Commission), 3001 Porcupine ~rive, 'Anchorage, Alaska 99501, and request a hear ng ~n the matter. If the pro- test is timely f ed and raises a substantial and material Issue crucial to the Commission's de- ter~ nation, a hearing oh the matter will be held at the above address at 9:00 am on January 6, 1992 in conformance with 20 ~C 25.540. If a hearing is to be nterested p~rt es may ,held,,,.' . ..... ....... .... , ..' ,~ con~'thls by Calling the Co~' mls~;.~ice,.(9~) 279-1433 after o~ember,~,~lgg~'~f-no pro~t' ~ fl~{t~b~l°n' will ~r th~.'~ the ':~em~lo~e~ .. ' · ' Alaska O!1 &'Gu · ' ' Conse~ation Commission ', ,,,, P~b: Dec; 4,1991 '. SUBSCRIBED AND SWORN TO BEFORE ME THIS ................... 09 DAY OF DEC, 1991 NOTARY PUBLIC OF THE STATE OF ALASKA MY COMMISSION EXPIRES ............... Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: The application of Unocal Corporation to commingle production from the McArthur River Field Middle Kenai "G"/West Foreland Oil Pools and an undefined Oil Pool in the wellbore of the Trading Bay Unit State Well M-28. Unocal Corporation by letter dated November 14, 1991 has requested approval to commingle produced fluids in the wellb°re of Trading Bay State Well M-28. Producing horizons would include the McArthur River Field Middle Kenai "G" Oil Pool, West Foreland Oil Pool and an undefined oil pool underlying the West Foreland. A person who may be harmed if the requested order is issued may file a written protest prior to 4:00 pm December 19, 1991 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 am on January 6, 1992 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 19, 1991. If no protest is filed, the Commission will consider the issuance of the order without a hearing. Russell A. Douglass Commissioner Alaska Oil and Gas Conservation Commission Published December 4, 1991 .¢ Robert T. Anderson Manager, Lands Alaska Region Unocal North Americ~" Oil & Gas Division ~ Unocal Corporation P.O. Box 190247 Anchorage, Alaska 99519-0247 Telephone (907) 276-7600 UNOCAL November 14, 1991 Commissioner Russell Douglass Alaska Oil & Gas Conservation Commission 3001 Porcupine Drive Anchorage, AK 99501 TRADING BAY UNIT STATE OF ALASKA PROPOSED COMMINGLING OF KENAI "G", WEST FORELAND OIL WITH UNDEFINED POOL TBU STATE WELL #M-28 Dear Commissioner Douglass: Unocal requests administrative approval to commingle current production from Trading Bay Unit State well M-28, in the McArthur River Field, with the Middle Kenai "G" (G-Zone) and West Foreland Pools, through the Committee's authority granted in Conservation Order 80 Rule 5. Current production from Well M-28 is from an undefined Pool underlying the defined West Foreland Pool. Upon approval of this request, the Middle Kenai "G" and West Foreland intervals in Well M-28 will be perforated and produced commingled with current production from the undefined Pool. This will be performed in a manner which will result in the highest economically obtainable oil rate, while ensuring the conservation of oil and associated gas reserves in each of the Pools. In January 1990, Unocal requested approval to drill and complete Trading Bay Unit State Well M-28, McArthur River Field, to the Middle Kenai "G" and West Foreland Oil Pools pursuant to Rule 5, Conservation Order #80. This application for permit to drill was approved by the Commission, and Well M-28 was subsequently drille_d..an_d_co..m~l_ete~d. NOV 't 8 1991 Alaska Oil & Gas Cons. Commissi¢~ Anchorage Commission Russell Douglass November 14, 1991 Page 2 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 11,208 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 oil 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" 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 main- taining 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 M-28 was producing approximately 160 BOPD at a 13% watercut prior to the most recent attempt to fracture stimulate the well on 'September 17, 1991. Due to problems encountered during the fracture treatment and in running the jet pump assembly, the well was not returned to continuous production until September 29, 1991. This well responded with some additional production capacity but has since declined to approximately 160 BOPD at 30% watercut. ,Alaslqa Oil~':' r3as (,o~,~, O~,m~ss~°¢ Commission Russell Douglass November 14, 1991 Page 3 COMMINGLING The well was primarily drilled to target the Middle Kenai "G" and West Foreland Oil Pools, the Jurassic intewal encountered was a seconda~ target to test resewe potential in pre- Te~ia~ intewals. Continued production from Well M-28 at the current rate of 160 BOPD is not economically justified. The high cost to drill another well to separately produce the resewoirs precludes such action. Therefore, upon approval, it is planned to pedorate the Middle Kenai "G" and West Foreland Pools and commingle them with the undefined Pool produ~ion. It is anticipated that the addition of the Middle Kenai "G" and West Foreland production to the undefined Pool production in Well M-28 will increase oil production to about 750 BOPD. Commingling the production from this well is the most economical method of completion and will avoid waste and m~imize ultimate hydrocarbon recover. A static reservoir pressure of 6600 psig at datum was obtained following the recent fracture stimulation. The reservoir pressure of both the Middle Kenai "G" and West Foreland Pools is about 3000 psig. Therefore, the potential exists for inter-pool crossflow during shut-in conditions. However, this potential is minimized due to the relatively Iow PI of the currently completed interval, (approximately 0.15 BFPD per psi drawdown) and the ability to mechanically isolate the Jurassic interval during shut in periods (see wellbore schematic attached). Also, the potential for crossflow will decrease with time as the Jurassic reservoir pressure is depleted. The current reservoir pressure of 6600 psig is down 400 psi from the original reservoir pressure of 7000 psig. This occurred after only 207 MBBLS withdrawal over 15 months, thereby indicating rapid pressure decline and marginal economics of the reservoir. Fluid compatibility tests have been performed with the produced fluids from the current Jurassic Pool and the G-Zone and West Foreland Pools. The purpose of these tests was to identify any problems which might be encountered with mixing of the produced fluids in the wellbore 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. Although the current jet pump installation will not allow production logging, it is planned to convert the Steelhead Platform production wells to gas lift during 1992 and 1993. Upon the conversion of M-28 to gas lift, it will be possible to obtain production surveys for allocation purposes. In conclusion, Unocal is requesting administrative approval to commingle current production from the undefined Jurassic Pool in Well M-28 with the Middle Kenai "G" and West Foreland Pools penetrated by this well. This will result in increased oil production Commission Russell Douglass November 14, 1991 Page 4 of nearly 600 BOPD from the M-28 well. Your expedient consideration of this request is appreciated. RTA:RCW:RAP:RKW:MPH'da Attachment Very truly yours, AGENCY MEETINGS Cont. EDUCATION BOARD The State Board of Education meeting scheduled for Sitka on Decem- ber 5 and 6, 1991, is cancelled. The meeting is res. cheduled for Decem- ber 12 and 13 in Anchorage. A work session is scheduled at 9 a.m. December 12. A regular meeting is scheduled at 9 a.m. December 13. Tentative agenda items include: discussing and approving plans for the alaska 2000 initiative; approving the Department of Education"s ~.,~oposed capital and operating budgets for FY93; approving items relating to policy at Mt. Edgecumbe High.School, and approving an appointment to a partially exempt position. The meetings will be held in the meeting room of the Alpac Corporation, Pepsi Cola Bottling Company, 521 E. 104th Street, Anchorage, located off the Old Seward Hwy. between Dimond and O'Malley. 'For additional information, contact Harry Gamble, Department of Education, 465-2800. FISHERIES BOARD The Alaska Board of Fisheries will hold the Bristol Bay area meeting in Dillingham, beginning January 4, 1992. The meeting is scheduled through January 14, but could conclude earlier. ~e Alaska Board of Fisheries will hold the Arctic-Yukon-Kuskokwim regional meeting in Bethel, beginning February 4, 1992. The meeting is scheduled through February 14, but could conclude earlier. LABOR RELATIONS BOARD Tuesday, December 17. The Alaska Labor Relations Agency Board Members will meet t'~r a work session on regulations on Tuesday, December 17, 19{11 l'r~nl 10:3(la.re. until 1-1}1} p.m., :~ml l'tflh~wing thc AI..4SKA AI)MINIS'I'RA'I'li/I'~ J()iJRN~41. ' I)I.Z'I:'MIiI'iR 9, I~! session will beheld in Room 303, Department of Labor Building, 3301 Eagle Street, Anchorage Alaska. Contact: Jan Hart DeYoung, P.O. Box 107026, Anchorage, Alaska 99510-7026, telephone (907) 264-2587. MUSEUM COLLECTION ADVISORY COMMITTEE The Alaska State Museum would like to announce its biannual meet- ing of the Museum Collection Advisory Committee. The meeting will be held via teleconference on December 20, 1991, from 9 a.m. to 12 noon and 1:30 p.m. to 4:30 p.m., in the conference room at the Alaska State Museum. The museum is located at 395 Whittier Street, Juneau, AK. The public is invited to attend. For further information contact Bruce Karo, Chief Curator, at (907) 465-2901. OIL/GAS CONSERVATION COMMISSION Trading Bay State Well M-28 The application of Unocal Corporation to commingle production from the McArthur River Field Middle Kenai "G"/West Foreland Oil Pools and an undefined Oil Pool in the wellbore of the Trading Bay Unit State Well M-ZS. Unocal Corporation by letter dated November 14,1991, has requested approval to commingle produced fluids in the wellbore of Trading Bay State Well M-28. Producing horizons would include the McArthur River Field Kenai "G" Oil Pool, West Foreland Oil Pool and an undefined oil pool underlying the West Foreland. CON'I'INiIED ON Nb2X'I' PAGE I3 J AGENCY MEETINGS Cont. OII.JGAS CONSERVATION COMMISSION cont. A person who may be harmed if the requested order is issued may file a written protest prior to 4:00 p.m. December 19, 1991, with the Alaska Oil and Gas Conservation Commission (hereinafter the Commission), 3001 Porcupine Drive, Anchorage, Alaska 99501, and request a hear- ing on the matter. If the protest is timely filed and raises a substantial and material issue crucial to the Commission's determination, a hear- on the matter will be held at the above address at 9:00 a.m. on -J'Xnuary 6, 1992 in conformance with 20 AAC 25.540. If a hearing is to be held, interested parties may confirm this by calling the Commis- sion's office, (907) 279-1433 after December 19, 1991. If no protest is filed, the Commission will consider the issuance of the order without a hearing. Russell A. Douglass Commissioner Alaska Oil and Gas Conservation Commission Published: December 4, 1991 OPTOMETRY BOARD merce and Economic Development, Division of Occupational Licens- ing, P.O. Box 110806, Juneau, Alaska 99811-0806, telephone (907) 465-2580 after 10:15 a.m. TOURISM MARKETING COUNCIL The Alaska Tourism Marketing Council (ATMC) will hold the follow- lng meetings at the Westmark Hotel in Anchorage: Tuesday, December 10, 1991 Fall/Winter/Spring 8:30 a.m.- 9:30a.m. Public Relations 9:30 a.m. - 11:00 a.m. Research 11:00 a.m. - 12:{10 p.m. Advertising 12:30 p.m. - 3:00 p.m. Collateral 3:00 p.m. - 5:00 p.m. Planning 5:00 p.m. - 7:00 p.m. Wednesday, December 11, 1991 Full Council 9:00 a.m. - 5:00 p.m. ~_~ Department of Commerce and Economic Development, Division of. Occupational Licensing, Board of Examiners in Optometry, an- nounces a teleconference meeting to be held Friday, November 22, 1991, starting at 3:00 p.m. via the Alascom conference call operator. The sole purpose of this teleconference meeting is to review the memorandum of agreement in the matter of Larry Coon, O.D. Agenda topics to include possible bylaws changes, FY 92 media plan, FY 93 budget and other related matters. ~ All meetings of the ATMC are open to the public. For more informa- tion, please contact Trudy K. Wassel at 563-2289. . Anyone desiring information may contact the l)cpartment of Com- ..'Il .q),'K,4 .41,)MINI.V'i R,..,I 1 I1,'1: J( IIIRN,,,II. DI- ¢ 'I..MItI.R 9. lq)~)l D ' CONTilVIIED BELOW -/.,EFT