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HomeMy WebLinkAboutCO 458 AConservation 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. 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: Scanning Preparation TOTAL PAGES Production Scanning Stage I PAGE COUNT FROM SCANNED DOCUMENT: ~'"! ~ PAGE COUNT MATCHES NUMBER IN SCANNING PREPARATION: "V' YES NO 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 QUALITY, GRAYSCALE OR COLOR IMAGES) General Notes or Comments about this Document: IIII 5/21/03 ConservOrdCvrPg.v,/pd INDEX CONSERVATION ORDER NO. 458A NORTHSTAR OIL POOL 1. September 30, 2002 BP's Northstar SSSV Setting Depth 2. October 5, 2002 Notice of Hearing, Publication, affidavit from newspaper, copy of bulk mailing list and certificates of service 3. October 20, 2002 Request for a hearing 4. November 7, 2002 e -mail 5. November 7, 2002 Transcript 6. October 2003 Public Records Request Conservation Order 458A STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501 Re: THE APPLICATION OF BP ) EXPLORATION (ALASKA) INC. ) for a variance from the subsurface ) safety valve (SSSV) setting depth ) requirements of 20 AAC 25.265(a)(2) ) in the Northstar Oil Pool, Northstar ) Field, Beaufort Sea, Alaska Conservation Order No. 458A Northstar Field Northstar Oil Pool November 20, 2002 IT APPEARING THAT: By letter dated September 30, 2002, BP Exploration (Alaska) Inc. ("BPXA") requested a variance from the setting depth requirements of 20 AAC 25.265(a)(2) for subsurface safety valves ("SSSV"), in order to allow a SSSV setting depth to 500' in Northstar wells. 2. Notice of opportunity for public hearing was published in the Anchorage Daily News on October 5, 2002. 3. The Commission received a request for hearing on October 20, 2002. . A hearing concerning BPXA's request was convened in conformance with 20 AAC 25.540 at the Commission's offices, 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501 on November 7, 2002. FINDINGS: 1. BPXA is the designated operator of the Northstar Unit. 2. The Commission issued Conservation Order 458, dated October 9, 2001, to govern development of the Northstar Oil Pool on the North Slope of Alaska. o 20 AAC 25.265(a)(2) requires wells with offshore locations that are capable of unassisted flow of hydrocarbons, be equipped with Commission approved fail-safe automatic surface-controlled subsurface safety valves (SSSV) placed in the tubing string and located below the permafrost. 4. Continuous permafrost exists below the Northstar development from approximately 1100 feet (') to 1600' below surface. 5. Wireline conveyed SSSVs require packing to provide a seal in their landing nipples. Packing leaks necessitate SSSV retrieval, repair and replacement. Conservation Order No? November 20, 2002 oA Page 2 o , . . 10. 11. 12. Tubing conveyed SSSVs have the same inside diameter as tubing so valve retrieval is unnecessary during well interventions such as perforating and production logging, thus reducing the number of valve retrievals and replacement operations. An SSSV setting depth shallower than the base of permafrost is necessary to ensure operation of tubing conveyed SSSVs over the full range of expected conditions. Northstar production casing is designed and pressure tested to withstand full shut in tubing pressure. Annular fluid in inner annulus and outer annulus is diesel to below the base of permafrost. Diesel will not freeze, expand and detrimentally affect adjacent casing or tubing. If a tubing conveyed SSSV fails, a wireline conveyed insert valve can be set inside the tubing conveyed SSSV after the SSSV is locked open. Installation of tubing conveyed SSSVs in nine Northstar wells is expected to decrease by one per year the number of necessary well interventions. The minimum SSSV opening pressure in the worst case late field life exceeds the surface hydraulic system operating pressure of 6000 psi. Current North Slope practice, including in the Northstar Field, is to use cement formulated for permafrost conditions, appropriate casing grades and annular fluids to alleviate concerns regarding casing failures in permafrost. (See Conservation Order 173,348). CONCLUSIONS 1. Experience, proper well design and cementing have reduced any danger to casing integrity from freeze-back or thaw subsidence effects within permafrost. 2. A 500' setting depth for tubing conveyed SSSVs at Northstar reduces the number of well interventions and hence, reduces the risk of releases associated with work-over operations. 3. A minimum 500' setting depth for SSSVs is adequate to prevent an uncontrolled flOW. NOW THEREFORE IT IS ORDERED that 1. Conservation Order 458 is amended to provide for a variance from the SSSV setting depth requirements of 20 AAC 25.265(a)(2). 2. Conservation 458A supersedes Conservation Order 458 dated October 9, 2001. 3. The findings, conclusions and administrative record for Conservation Orders 458 are adopted by reference and incorporated in this decision. 4. The following rules, in addition to statewide requirements under 20 AAC 25 (to the extent not superseded by these rules), apply to the affected area encompassing all of Conservation Order No.} November 20, 2002 .,A Page 3 State Oil and Gas Leases ADL 312798, ADL 312799 and ADL 312808, portions of State Oil and Gas Leases ADL 312809 and ADL 355001, and all of Federal Oil and Gas Leases OCS-Y-1645, OCS-Y-0179 and OCS-Y-0181 to the extent such leases are located within the lands described below: Umiat Meridian STATE LEASES Township Range Sections T14N R13E 30 through 35: All State lands T13N R13E 2 through 18, 20 through 24: All State lands T13N R14E 17 through 20, 29 and 30: AllStatelands The affected area is more particularly described as follows: ADL 312798 Consists of Tract C30-46 (BF-46), a portion of Blocks 470 and 514 as shown on the "Leasing and Nomination Map" for the Federal/State Beaufort Sea Oil and Gas Lease Sale, dated 1/30/79, more particularly described as follows: Those lands located easterly of the west boundary of T. 13N, R. 13E, and T.14N, R. 13E, Umiat Meridian, Alaska, being the north-south line intersecting the north and south boundary of Block 470, within the offshore three-mile arc lines listed as State area of Block 470 "Supplemental Official O.C.S. Block Diagram" approved 10/4/79, and those lands in Block 514 easterly of the west boundary of T. 13N., R. 13E., Umiat Meridian, Alaska (being identical with line 1-2 of Block 514) and lying northerly of the south boundary of Sections 7 and 8, T.13N., R. 13.E, Umiat Meridian, Alaska (being identical with line 2-3 of Block 514) and that portion of Section 16, T. 13N., R. 13E., Umiat Meridian, Alaska, within the N1/2 S1/2 (being easterly of line 3-4 of Block 514), being a portion of the listed State area of Block 514 on the "Supplemental Official O.C.S. Block Diagram" approved 12/9/79. ADL 312799 Consists of Tract C30-47 (BF-47), a portion of Blocks 471 and 515 as shown on the "Leasing and Nomination map" for the Federal/State Beaufort Sea Oil and Gas Lease Sale, dated 1/30/79, more particularly described as follows: Those lands located in Block 471 within the offshore three-mile arc lines, listed as State area on the "Supplemental Official O.C.S. Block Diagram", approved 10/4/79, and those lands in N1/2, N1/2 S1/2 of Block 515 within the offshore three-mile arc lines being a portion of the listed State area on the "Supplemental Official O.C.S. Block Diagram" approved 10/4/79. ,,' Conservation Order Noli November 20, 2002 oA Page 4 ADL 312808 Consists of Tract C30-56 (BF-56), a portion of Blocks 514, 515, 558, and 559 as shown on the "Leasing and Nomination Map" for the federal/state Beaufort Sea Oil and Gas Lease Sale, dated 1/30/79, more particularly described as follows: Those lands located in the S1/2 S1/2 of Block 514, within Section 16 and 21 of T. 13N., R. 13E.; Umiat Meridian, Alaska, (being those lands lying easterly of line 3-4 on Block 514), a portion of the state area on the "Supplemental Official O.C.S. Block Diagram" approved 12/9/79, and those lands in S 1/2 S1/2 of Block 515, being a portion of the State area on the "Supplemental Official O.C.S. Block Diagram" approved 10/4/79, and those lands within Block 558 located in Section 21, T. 13N., R. 13E.; Umiat Meridian, Alaska, (being the portion easterly of line 1-2 and northerly of line 2-3 block 558), listed as State area on the "Supplemental Official O.C.S. Block Diagram" approved 12/9/79, and those lands in Block 559 lying northerly of the south boundary of Sections 21, 22, 23, and 24, T.13N., R. 13E.; Umiat Meridian, Alaska, (being the northerly portion of Block 559), listed as State area on the "Supplemental Official O.C.S. Block Diagram" approved 10/4/79. ADL 312809 Consists of Tract C30-57 (BF-57), a portion of Block 516 and 560 as shown on the "Leasing and Nomination Map" for the Federal/State Beaufort Sea Oil and Gas Lease Sale, dated 1/30/79, more particularly described as follows: Those lands located in Block 516 within the offshore three-mile arc lines, listed as State area on the "Supplemental Official O.C.S. Block Diagram" approved 10/4/79, containing 227.02 hectares, and those lands in Block 560 located within Section 24, T. 13N., R. 13E., Umiat Meridian, Alaska, and those lands in Block 560 located within Sections 19, 20, 29 and 30 of T13N, R14E, Umiat Meridian, Alaska, within the offshore three-mile arc lines, listed as State area on the "Supplemental Official O.C.S. Block Diagram" approved 12/9/79. ADL 355001 That portion of Blocks 514 and 558 as shown on the "Leasing and Nomination Map" for the federal/state Beaufort Sea Oil and Gas Lease Sale, dated 1/30/79, more particularly described as follows: Those lands in Block 514 lying located within Sections 17, 18, and 20 ofT. 13N., R. 13E., Umiat Meridian, Alaska, and those lands located in Block 558 within Section 20, T. 13N., R. 13E., Umiat Meridian, Alaska. FEDERAL LEASES Lease Number Description OCS-Y-1645 All Federal lands OCS-Y-0179 All Federal lands OCS-Y-0181 All Federal lands Conservation Order No?._ oA November 20, 2002 Page 5 The affected area is more particularly described as follows: OCS-Y-1645 That portion of Block 6510, OCS Official Protraction Diagram NR06-03, Beechey Point, approved February 01, 1996, shown as Federal 8(g) Area C on OCS Composite Block Diagram dated April 24, 1996. OCS-Y-0179 That portion of Block 470 lying east of the line marking the western boundary of parcel "1" and between two lines bisecting Block 470, identified as parcel "1", containing approximately 94.30 hectares, and parcel "2", containing approximately 15.27 hectares, as shown on the Supplemental Official OCS Block Diagram, dated 10/4/79, based on Official Protraction Diagram NR 6-3, Beechey Point, approved April 29, 1975; and that area lying between the two lines bisecting Block 471, containing approximately 611.95 hectares, as shown on the Supplemental Official OCS Block Diagram, dated 10/4/79, based on Official Protraction Diagram NR 6-3, Beechey Point, approved April 29, 1975; and that area lying northeasterly of the line bisecting Block 515, containing approximately 189.83 hectares, as shown on the Supplemental Official OCS Block Diagram, dated 10/4/79, based on Official Protraction Diagram NR 6-3, Beechey Point, approved April 29, 1975. OCS-Y-0181 That area lying northeasterly of the line bisecting Block 516, containing approximately 2076.98 hectares, as shown on the Supplemental Official OCS Block Diagram, dated 10/4/79, based on Official Protraction Diagram NR 6-3, Beechey Point, approved April 29, 1975; and that area lying northeasterly of the line bisecting Block 560, located in the northeast comer of Block 560, containing approximately 44.65 hectares, as shown on the Supplemental Official OCS Block Diagram, revised and dated 12/9/79 based on Official Protraction Diagram NR 6-3, Beechey Point, approved April 29, 1975. Pool Name~ Definition~ and Classification The Northstar Oil Pool is defined as the accumulation of hydrocarbons common to and correlating with the interval between measured depths of 12,418 feet and 13,044 feet the Seal A-01 well. The Northstar Oil Pool is classified as an oil pool. Rule 1: Field Name The field overlying the Northstar Oil Pool is the Northstar Oil Field. Rule 2: Well Spacing Minimum spacing within the pool is 40 acres. The pool shall not be opened in any well closer than 500 feet to an external unit boundary where ownership changes. Conservation Order No.{ November 20, 2002 oA Page 6 Rule 3: Drilling and Completion Practices Alternative completions will be authorized on a case by case basis so long as the requirements of 20 AAC 25.030(a) are met. Rule 4: Safety Valve System Equipment and Performance Testing Requirements 1. With the exception of the Class I disposal well, each well must be equipped with a Commission approved fail-safe automatic SSV system capable of preventing an uncontrolled flow and fail-safe automatic surface controlled SSSV system capable of preventing an uncontrolled flow, unless another type of subsurface valve with that capability is approved by the Commission. 2. The SSV and SSSV systems and the individual components of the SSV and SSSV systems must be maintained in proper working condition at all times unless the well is shut in and secured. 3. Operation and performance tests must be conducted at intervals and times as prescribed by the Commission to confirm that the SSV system, SSSV system, and associated equipment are in proper working condition. At least 24 hours notice must be given prior to the performance of a test to allow a representative of the Commission to witness the test. 4. The minimum setting depth for tubing conveyed SSSVs is 500 feet. Rule 5: ReservOir Pressure Management and Monitoring 1. Prior to placing each well on regular production or injection, an initial pressure survey must be obtained. 2. Bottom-hole pressure surveys must be acquired in at least one-half the active wells each year. Bottom-hole surveys in paragraph (a) may fulfill the minimum requirement. 3. The reservoir pressure datum will be 11,100 feet TVDss. 4. Pressure surveys may be stabilized static pressure measurements at bottom-hole or extrapolated from surface (single phase fluid conditions), pressure fall-off, pressure buildup, multi-rate tests, drill stem tests, and open-hole formation tests. 5. Data and results from all relevant reservoir pressure surveys must be reported quarterly on Form 10-412, Reservoir Pressure Report. All data necessary for analysis of each survey need not be submitted with the Form 10-412, but must be available to the Commission upon request. 6. Results and data from special reservoir pressure monitoring tests or surveys must also be submitted in accordance with paragraph (e) of this rule. Rule 6: Gas-Oil Ratio Exemption Wells producing from the Northstar Oil Pool are exempt from the gas-oil-ratio limits of Conservation Order November 20, 2002 oA Page 7 20 AAC 25.240(a) so long as requirements of 20 AAC 25.240(b) are met. Rule 7: Annual Reservoir Performance Report The first operations and reservoir performance report will be due April 1, 2002 and annually thereafter. The report shall include, but is not limited to, the following: a. Progress of enhanced recovery project implementation and reservoir management summary including results of reservoir simulation techniques. b. Voidage balance by month of produced fluids and injected fluids and cumulative status for each producing interval. c. Summary and analysis of reservoir pressure surveys within the pool. d. Results and, where appropriate, analysis of production and injection log surveys, tracer surveys, observation well surveys, and any other special monitoring. e. Review of pool production allocation factors and issues over the prior year. f. Future development plans. g. Review of Annual Plan of Operations and Development. Rule 8: Administrative Action Unless notice and public hearing is otherwise required, the Commission may administratively waive the requirements of any rule stated above or administratively amend any rule as long as the change does not promote waste or jeopardize correlative rights, is based on sound engineering and geoscience principles and will not result in an increased risk of fluid movement into freshwater. DONE at Anchorage, Alaska and dated November 20, 2002. Daniel T. Seamount, Jr., Commissioner Alaska Oil and Gas Conservation Commission Michael L. Bill, 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 reheating. A request for rehearing must be received by 4:30 PM on the 23rd day following the date of the order, or next working day if a holiday or weekend, to be timely filed. The Commission shall grant or refuse the application in whole or in part within 10 days. The Commission can refuse an application by not acting on it within the 10-day period. An affected person has 30 days from the date the Commission 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., l0th day after the application for rehearing was filed). John Katz State of Alaska Alaska Governor's Office 444 North Capitol St., NW, Ste 336 Washington, DC 20001 Daniel Donkel 2121 North Bayshore Drive, Ste 1219 Miami, FL 33137 SD Dept of Env & Natural Resources Oil and Gas Program 2050 West Main, Ste 1 Rapid City, SD 57702 Alfred James 107 North Market Street, Ste 1000 Wichita, KS 67202-1822 Christine Hansen Interstate Oil & Gas Compact Comm Excutive Director PO Box 53127 Oklahoma City, OK 73152 Citgo Petroleum Corporation PO Box 3758 Tulsa, OK 74136 Conoco Inc. PO Box 1267 Ponca City, OK 74602-1267 Mir Yousufuddin US Department of Energy Energy Information Administration 1999 Bryan Street, Ste 1110 Dallas, TX 75201-6801 Mary Jones XTO Energy, Inc. Cartography 810 Houston Street, Ste 2000 Ft. Worth, TX 76102-6298 Gregg Nady Shell E&P Company Onshore Exploration & Development PO Box 576 Houston, TX 77001-0576 Michael Nelson Purvin Gertz, Inc. Library 600 Travis, Ste 2150 Houston, TX 77002 Paul Walker Chevron 1301 McKinney, Rm 1750 Houston, TX 77010 G. Scott Pfoff Aurora Gas, LLC 10333 Richmond Ave, Ste 710 Houston, TX 77042 G. Havran Gaffney, Cline & Associations Library 1360 Post Oak Blvd., Ste 2500 Houston, TX 77056 David McCaleb IHS Energy Group GEPS 5333 Westheimer, Ste 100 Houston, TX 77056 William Holton, Jr. Marathon Oil Company Law Department 5555 San Fecipe St. Houston, TX 77056-2799 T.E. Alford ExxonMobil Exploration Company PO Box 4778 Houston, TX 77210-4778 Texico Exploration & Production PO Box 36366 Houston, TX 77236 Corry Woolington ChevronTexaco Land-Alaska PO Box 36366 Houston, TX 77236 W. Allen Huckabay Phillips Petroleum Company Exploration Department PO Box 1967 Houston, TX 77251 Chevron USA Alaska Division PO Box 1635 Houston, TX 77251 Donna Williams World Oil Statistics Editor PO Box 2608 Houston, TX 77252 Chevron Chemical Company Library PO Box 2100 Houston, TX 77252-9987 Shelia McNulty Financial Times PO Box 25089 Houston, TX 77265-5089 Shawn Sutherland Unocal Revenue Accounting 14141 Southwest Freeway Sugar Land, TX 77478 Kelly Valadez Tesoro Refining and Marketing Co. Supply & Distribution 300 Concord Plaza Drive San Antonio, TX 78216 James White Intrepid Prod. Co./Alaskan Crude 4614 Bohill SanAntonio, TX 78217 Doug Schultze XTO Energy Inc. 3000 North Garfield, Ste 175 Midland, TX 79705 Robert Gravely 7681 South Kit Carson Drive Littleton, CO 80122 George Vaught, Jr. PO Box 13557 Denver, CO 80201-3557 Jerry Hodgden Hodgden Oil Company 408 18th Street Golden, CO 80401-2433 Richard Neahdng NRG Associates President PO Box 1655 Colorado Springs, CO 80901 John F. Bergquist Babson and Sheppard PO Box 8279 Long Beach, CA 90808-0279 John Levorsen 200 North 3~ Street, #1202 Boise, ID 83702 Samuel Van Vac~r Economiclnsightlnc. 3004 SWFirst Ave. Portland, OR 97201 Kay Munger Munger Oilln~rmation Se~ice, lnc PO Box 45738 Los Angeles, CA 90045-0738 Thor Cutler OW-137 US EPA egion 10 1200 Sixth Ave. Seattle, WA 98101 Michael Parks Marple's Business Newsletter 117 West Mercer St, Ste 200 Seattle, WA 98119-3960 Jim Arlington Forest Oil 310 K Street, Ste 700 Anchorage, AK 99501 Julie Houle State of Alaskan DNR Div of Oil & Gas, Resource Eval. 550 West 7th Ave., Ste 800 Anchorage, AK 99501 Susan Hill State of Alaska, ADEC EH 555 Cordova Street Anchorage, AK 99501 Mark Wedman Halliburton 6900 Arctic Blvd. Anchorage, AK 99502 Rob Crotty C/O CH2M HILL 301 West Nothern Lights Blvd Anchorage, AK 99503 Tim Ryherd State of Alaska Department of Natural Resources 550 West 7th Ave., Ste 800 Anchorage, AK 99501 Duane Vaagen Fairweather 715 L Street, Ste 7 Anchorage, AK 99501 Cammy Taylor 1333 West 11th Ave. Anchorage, AK 99501 Ed Jones Aurora Gas, LLC Vice President 1029 West 3rd Ave., Ste 220 Anchorage, AK 99501 John Harris NI Energy Development Tubular 3301 C Street, Ste 208 Anchorage, AK 99503 Schlumberger Drilling and Measurements 3940 Arctic Blvd., Ste 300 Anchorage, AK 99503 Richard Mount State of Alaska Department of Revenue 500 West 7th Ave., Ste 500 Anchorage, AK 99501 Williams VanDyke State of Alaska Department of Natural Resources 550 West 7th Ave., Ste 800 Anchorage, AK 99501 Robert Mintz State of Alaska Department of Law 1031 West 4th Ave., Ste 200 Anchorage, AK 99501 Trustees for Alaska 1026 West 4th Ave., Ste 201 Anchorage, AK 99501-1980 Ciri Land Department PO Box 93330 Anchorage, AK 99503 Mark Dalton HDR Alaska 2525 C Street, Ste 305 Anchorage, AK 99503 Jack Laasch Natchiq Vice President Government Affairs 3900 C Street, Ste 701 Anchorage, AK 99503 Baker Oil Tools 4730 Business Park Blvd., #44 Anchorage, AK 99503 Mark Hanley Anadarko 3201C Street, Ste 603 Anchorage, AK 99503 Judy Brady Alaska Oil & Gas Associates 121 West Fireweed Lane, Ste 207 Anchorage, AK 99503-2035 Aden Ehm 2420 Foxhall Dr. Anchorage, AK 99504-3342 Greg Noble Bureau of Land Management Energy and Minerals 6881 Abbott Loop Rd Anchorage, AK 99507 Rose Ragsdale Rose Ragsdale & Associates 3320 E. 41st Ave Anchorage, AK 99508 Thomas R. Marshall, Jr. 1569 Birchwood Street Anchorage, AK 99508 Jeff Walker US Minerals Management Service Regional Supervisor 949 East 36th Ave., Ste 308 Anchorage, AK 99508 Paul L. Craig Trading Bay Energy Corp 5432 East Northern Lights, Ste 610 Anchorage, AK 99508 Jill Schneider US Geological Survey 4200 University Dr. Anchorage, AK 99508 Jim Scherr US Minerals Management Service Resource Evaluation 949 East 36th Ave., Ste 308 Anchorage, AK 99508 Richard Prentki US Minerals Management Service 949 East 36th Ave., 3rd Floor Anchorage, AK 99508 Chuck O'Donnell Veco Alaska,Inc. 949 East 36th Ave., Ste 500 Anchorage, AK 99508 Gordon Severson 3201 Westmar Cr. Anchorage, AK 99508-4336 Jim Ruud Phillips Alaska, Inc. Land Department PO Box 100360 Anchorage, AK 99510 Kristen Nelson IHS Energy PO Box 102278 Anchorage, AK 99510-2278 Perry Markley Alyeska Pipeline Service Company Oil Movements Department 1835 So. Bragaw- MS 575 Anchorage, AK 99515 Jordan Jacobsen Alyeska Pipeline Service Company Law Department 1835 So. Bragaw Anchorage, AK 99515 Robert Britch, PE Northern Consulting Group 2454 Telequana Dr. Anchorage, AK 99517 David Cusato 600 West 76th Ave., #508 Anchorage, AK 99518 Jeanne Dickey BP Exploration (Alaska), Inc. Legal Department PO Box 196612 Anchorage, AK 99518 Tesoro Alaska Company PO Box 196272 Anchorage, AK 99519 J. Brock Riddle Marathon Oil Company Land Department PO Box 196168 Anchorage, AK 99519-6168 Kevin Tabler Unocal PO Box 196247 Anchorage, AK 99519-6247 Sue Miller BP Exploration (Alaska), Inc. PO Box 196612 Anchorage, AK 99519-6612 BP Exploration (Alaska), Inc. Land Manager PO Box 196612 Anchorage, AK 99519-6612 Dudley Platt D.A. Platt & Associates 9852 Little Diomede Cr. Eagle River, AK 99577 Bob Shavelson Cook Inlet Keeper PO Box 3269 Homer, AK 99603 Shannon Donnelly Phillips Alaska, Inc. HEST-Enviromental PO Box 66 Kenai, AK 99611 Peter McKay 55441 Chinook Rd Kenai, AK 99611 Kenai Peninsula Borough Economic Development Distr 14896 Kenai Spur Hwy #103A Kenai, AK 99611-7000 Penny Vadla Box 467 Ninilchik, AK 99639 James Gibbs PO Box 1597 Soldotna, AK 99669 Claire Caldes US Fish & Wildlife Service Kenai Refuge PO Box 2139 Soldotna, AK 99669 Kenai National Wildlife Refuge Refuge Manager PO Box 2139 Soldotna, AK 99669-2139 John Tanigawa Evergreen Well Service Company PO Box 871845 Wasilla, AK 99687 Charles Boddy Usibelli Coal Mine, Inc. 100 Cushman Street, Suite 210 Fairbanks, AK 99701-4659 Richard Wagner PO Box 60868 Fairbanks, AK 99706 Cliff Burglin PO Box 131 Fairbanks, AK 99707 Harry Bader State of Alaska Department of Natural Resources 3700 Airport Way Fairbanks, AK 99709 Bernie Karl K&K Recycling lnc. PO Box 58055 Fairbanks, AK 99711 North Slope Borough PO Box 69 Barrow, AK 99723 Williams Thomas Arctic Slope Regional Corporation Land Department PO Box 129 Barrow, AK 99723 Senator Loren Leman State Capitol Rm 113 Juneau, AK 99801-1182 • • STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7 Avenue, Suite 100 Anchorage, Alaska 99501 Re: AN ORDER rescinding those rules within ) Docket Number: CO -10 -21 existing Conservation Orders relating to ) Other Order No. 66 well safety valve systems. ) ) Statewide, Alaska ) January 11, 2011 IT APPEARING THAT: 1. On October 13, 2010 the Alaska Oil and Gas Conservation Commission ( AOGCC or Commission) formally adopted new regulations relating to well safety valve systems, at 20 AAC 25.265. 2. The newly adopted well safety valve system regulations underwent final review by the Regulations Section of the Alaska Attorney General's Office and were forwarded to the Alaska Lieutenant Governor's Office on October 28, 2010. 3. The new regulations were signed by the Lieutenant Governor and took legal effect on December 3, 2010. 4. To ensure consistency with the new regulations, the AOGCC, on its own motion, proposed to rescind part or all of the outdated rules within existing Commission Orders relating to well safety valve systems. 5. On November 4, 2010, pursuant to 20 AAC 25.540, the Commission published in the Alaska Daily News notice of opportunity for public hearing on December 6, 2010. 6. The Commission received written comments in response to its public notice, and held a public hearing on December 7, 2010. 7. Oral testimony and written comments were provided at the December 7, 2010 hearing. FINDINGS: 1. Well safety valve systems are regulated under newly- adopted 20 AAC 25.265, which consolidates the requirements previously established in legacy documents, policies, and statewide guidelines relating to safety valve systems. 2. Thirty -four existing Commission Orders contain rules governing well safety valve systems. Twenty of those Orders contain broad regulatory requirements for safety valve systems that are now covered by the newly- adopted regulations. The remaining fourteen Orders include field- or pool- specific safety valve system requirements. Other Order 66 • 0 Page 2 Statewide, AK January 11, 2011 existing Commission rules unrelated to well safety valve 3. Within e sti n Co Orders are u es e y g systems; these rules will continue in effect, unmodified. Y > 4. Existing Commission Orders containing individual rules relating to well safety valve systems are enumerated in the attached Table. CONCLUSIONS: 1. Eliminating redundant requirements and standardizing wording for those field - and pool- specific safety valve system requirements deemed appropriate to retain will improve regulatory clarity. 2. Twenty existing Commission Orders that include rules relating to well safety valve systems are rendered unnecessary, and can be replaced by newly- adopted 20 AAC 25.265. As more fully set forth in the attached Table, those Orders are Conservation Orders 98A, 207A, 300, 311B, 317B, 329A, 341E, 345, 402B, 432D, 452, 457B, 471, 477, 484A, 505B, 553, 559, 570, and a Commission unnumbered Order signed March 30, 1994 (policy dictating SVS performance testing requirements). 3. Fourteen existing Commission Orders include field- or pool - specific safety valve system requirements that the Commission considers appropriate for retention. Wording for the same safety valve system requirements existing in different Commission Orders has been standardized. As more fully set forth in the attached Table, those Orders are Conservation Orders 406B, 423, 430A, 435A, 443B, 449, 456A, 458A, 562, 563, 569, 596, 597, and 605. NOW, THEREFORE, IT IS ORDERED THAT individual rules in thirty-four existing Commission Orders that relate to well safety valve systems are hereby rescinded or revised as enumerated in the Table. Remaining rules unrelated to safety valve systems within affected Commission Orders remain in effect, unmodified. DONE at Anchorage, Alaska, and dated ail .- ary 11, 2011 1 ■110111 111111111 Aye ,. Daniel T. Se. .- o , r., Commissioner, Chair . • it . • :. s Conservation Commission 111110k " / s i� rman, Co er 7 0 - .� a Oi , • • . a Conserva ion Commission .?. 4 1' : `.. � �` ' Cat y P.: oerst r, Comm Alaska • it and Gas Conservation Commission • Other Order 66 • • Page 3 Statewide, AK January 11, 2011 RECONSIDERATION AND APPEAL NOTICE As provided in AS 31.05.080(a), within 20 days after written notice of the entry of this order or decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for reconsideration of the matter determined by it. If the notice was mailed, then the period of time shall be 23 days. An application for reconsideration must set out the respect in which the order or decision is believed to be erroneous. The Commission shall grant or refuse the application for reconsideration in whole or in part within 10 days after it is filed. Failure to act on it within 10 -days is a denial of reconsideration. If the Commission denies reconsideration, upon denial, this order or decision and the denial of reconsideration are FINAL and may be appealed to superior court. The appeal MUST be filed within 33 days after the date on which the Commission mails, OR 30 days if the Commission otherwise distributes, the order or decision denying reconsideration, UNLESS the denial is by inaction, in which case the appeal MUST be filed within 40 days after the date on which the application for reconsideration was filed. If the Commission grants an application for reconsideration, this order or decision does not become final. Rather, the order or decision on reconsideration will be the FINAL order or decision of the Commission, and it may be appealed to superior court. That appeal MUST be filed within 33 days after the date on which the Commission mails, OR 30 days if the Commission otherwise distributes, the order or decision on reconsideration. As provided in AS 31.05.080(b), "[t]he questions reviewed on appeal are limited to the questions presented to the Commission by the application for reconsideration." In computing a period of time above, the date of the event or default after which the designated period begins to run is not included in the period; the last day of the period is included, unless it falls on a weekend or state holiday, in which event the period runs until 5:00 p.m. on the next day that does not fall on a weekend or state holiday. Fisher, Samantha J (DOA) From: Fisher, Samantha J (DOA) Sent: Tuesday, January 11, 2011 4:08 PM To: Ballantine, Tab A (LAW); '(foms2 @mtaonline.net)'; '( michael .j.nelson @conocophillips.com)'; '(Von.L .Hutchins @conocophillips.com)'; 'AKDCWelllntegrityCoordinator; 'Alan Dennis'; 'alaska @petrocalc.com'; 'Anna Raff; 'Barbara F Fullmer; 'bbritch'; 'Becky Bohrer; 'Bill Penrose'; 'Bill Walker; 'Bowen Roberts'; 'Brad McKim'; 'Brady, Jerry L'; 'Brandon Gagnon'; 'Brandow, Cande (ASRC Energy Services)'; 'Brian Havelock'; 'Bruce Webb'; 'carol smyth'; 'caunderwood'; 'Chris Gay; 'Cliff Posey; 'Crandall, Krissell'; 'D Lawrence'; 'dapa'; 'Daryl J. Kleppin'; 'Dave Matthews'; 'David Boelens'; 'David House'; 'David Steingreaber; 'ddonkel @cfl.rr.com'; 'Deborah J. Jones'; Delbridge, Rena E (LAA); 'Dennis Steffy'; 'Elowe, Kristin'; 'Erika Denman'; 'eyancy'; 'Francis S. Sommer; 'Fred Steece'; 'Gary Laughlin'; 'Gary Rogers'; 'Gary Schultz'; 'ghammons'; 'Gordon Pospisil'; 'Gorney, David L.'; 'Greg Duggin'; 'Gregg Nady'; 'gspfoff; 'Harry Engel'; 'Jdarlington (jarlington @gmail.com)'; 'Jeanne McPherren'; 'Jeff Jones'; 'Jerry McCutcheon'; 'Jill Womack'; 'Jim White'; 'Jim Winegarner; 'Joe Nicks'; 'John Garing'; 'John Katz'; 'John S. Haworth'; 'John Spain'; 'John Tower'; 'Jon Goltz'; 'Judy Stanek'; 'Julie Houle'; 'Kari Moriarty'; 'Kaynell Zeman'; 'Keith Wiles'; 'Kelly Sperback'; 'Kim Cunningham'; 'Larry Ostrovsky'; 'Laura Silliphant'; 'Marilyn Crockett; 'Mark Dalton'; 'Mark Hanley (mark.hanley @anadarko.com)'; 'Mark Kovac'; 'Mark P. Worcester; 'Marguerite kremer'; 'Michael Dammeyer'; 'Michael Jacobs'; 'Mike Bill'; 'Mike Mason'; 'Mikel Schultz'; 'Mindy Lewis'; 'MJ Loveland'; 'mjnelson'; 'mkm7200'; 'nelson'; 'Nick W. Glover'; 'NSK Problem Well Supv'; 'Patty Alfaro'; 'Paul Decker (paul.decker @alaska.gov)'; 'Paul Figel'; 'PORHOLA, STAN T'; 'Randall Kanady'; 'Randy L. Skillern'; ' rob.g.dragnich @exxonmobil.com'; 'Robert Brelsford'; 'Robert Campbell'; 'Ryan Tunseth'; 'Scott Cranswick'; 'Scott Griffith'; Scott, David (LAA); 'Shannon Donnelly'; 'Sharmaine Copeland'; Shellenbaum, Diane P (DNR); Slemons, Jonne D (DNR); 'Sondra Stewman'; 'Steve Lambet; 'Steve Moothat; 'Steven R. Rossberg'; 'Suzanne Gibson'; 'tablerk'; 'Tamera Sheffield'; Taylor, Cammy 0 (DNR); 'Temple Davidson'; 'Teresa Imm'; 'Terrie Hubble'; 'Thor Cutler; 'Tina Grovier; 'Todd Durkee'; 'Tony Hopfinger; 'trmjrl'; 'Valenzuela, Mariam '; 'Vicki Irwin'; 'Walter Featherly'; 'Will Chinn'; Williamson, Mary J (DNR); 'Yereth Rosen'; 'Aaron Gluzman'; Bettis, Patricia K (DNR); rwood marathonoil.com; 'Dale Hoffman'; 'David Lenig'; 'Gary Orr'; 'Jason Ber erson'; caunde @ g, ry 9 , 'Joe Longo'; 'Lara Coates'; 'Marc Kuck'; 'Mary Aschoff; 'Matt Gill'; 'Maurizio Grandi'; Ostrovsky, Larry Z (DNR); 'Richard Garrard'; 'Sandra Lemke'; 'Talib Syed'; 'Tiffany Stebbins'; 'Wayne Wooster; 'William Van Dyke'; Woolf, Wendy C (DNR); Aubert, Winton G (DOA) (winton.aubert@alaska.gov); Brooks, Phoebe L (DOA) (phoebe.brooks @alaska.gov); Colombie, Jody J (DOA) (jody.colombie @alaska.gov); Crisp, John H (DOA) (john.crisp @alaska.gov); Davies, Stephen F (DOA) (steve.davies @alaska.gov); Foerster, Catherine P (DOA) (cathy.foerster @ alaska.gov); Grimaldi, Louis R (DOA) (lou.grimaldi @alaska.gov); Johnson, Elaine M (DOA) (elaine.johnson @alaska.gov); Jones, Jeffery B (DOA) (jeff.jones @alaska.gov); Laasch, Linda K (DOA) (linda.laasch @alaska.gov); Maunder, Thomas E (DOA) (tom.maunder @alaska.gov); McIver, Bren (DOA) (bren.mciver @alaska.gov); McMains, Stephen E (DOA) (steve.mcmains @alaska.gov); Mumm, Joseph (DOA sponsored); Noble, Robert C (DOA) (bob.noble @alaska.gov); Norman, John K (DOA) (john.norman @alaska.gov); Okland, Howard D (DOA) (howard.okiand @alaska.gov); Paladijczuk, Tracie L (DOA) (tracie.paladijczuk @alaska.gov); Pasqual, Maria (DOA) (maria.pasqual @alaska.gov); Regg, James B (DOA) (jim.regg @alaska.gov); Roby, David S (DOA) (dave.roby @alaska.gov); Saltmarsh, Arthur C (DOA) (art.saltmarsh @alaska.gov); Scheve, Charles M (DOA) (chuck.scheve @alaska.gov); Schwartz, Guy L (DOA) (guy.schwartz @alaska.gov); Seamount, Dan T (DOA) (dan.seamount @alaska.gov); Shartzer, Christine R (DOA) Subject: Other 66 Safety Valve Systems Attachments: other66.pdf Sa-►i,a41.,tha/ Fi4,,hex Co -vis-e-s vc urvv C aviuvt,i4-s-iaw (907)793 -1223 (907)276-7542 (roux) • • Mary Jones David McCaleb XTO Energy, Inc. IHS Energy Group George Vaught, Jr. Cartography GEPS P.O. Box 13557 810 Houston Street, Ste 200 5333 Westheimer, Suite 100 Denver, CO 80201 -3557 Ft. Worth, TX 76102 -6298 Houston, TX 77056 Jerry Hodgden Richard Neahring Mark Wedman NRG Associates Hodgden Oil Company Halliburton President 408 18 Street 6900 Arctic Blvd. Golden, CO 80401 -2433 P.O. Box 1655 Anchorage, AK 99502 Colorado Springs, CO 80901 Bernie Karl CIRI 95 Oil K &K Recycling Inc. Land Department E. h 7 P.O. Box 58055 P.O. Box 93330 795 E. 94 Ct. Anchorage, AK 99515 -4295 Fairbanks, AK 99711 Anchorage, AK 99503 North Slope Borough Jill Schneider Gordon Severson P.O. Box 69 US Geological Survey 3201 Westmar Circle Barrow, AK 99723 4200 University Drive Anchorage, AK 99508 -4336 Anchorage, AK 99508 Jack Hakkila Darwin Waldsmith James Gibbs P.O. Box 190083 P.O. Box 39309 P.O. Box 1597 Anchorage, AK 99519 Ninilchick, AK 99639 Soldotna, AK 99669 Kenai National Wildlife Refuge Penny Vadla Cliff Burglin Refuge Manager 399 West Riverview Avenue 319 Charles Street P.O. Box 2139 Soldotna, AK 99669 -7714 Fairbanks, AK 99701 Soldotna, AK 99669 -2139 Richard Wagner P.O. Box 60868 Fairbanks, AK 99706 �pO Orders Establishing Requirements for Well Safety Valve Systems 1/7/2011 Conservation New Regulation Provisions Unit/Field Pool Order (1) Rule Rescind Rule? Existing Order Requirement Addressing Reqts from Order Revised Rule - "Well safety valve systems" (2) Comment fail -safe auto SSV and SCSSV; injection wells (except disposal) require "Injection wells (excluding disposal injectors) must be equipped with(i) a double check valve 25.265(a); 25.265(b); 25.265(d)(2)(H); Check valve requirements for injectors are not covered by Colville River Unit Qannik 605 5 no (i) double check valve, or (ii) single check valve and SSV; injection 25.265(h)(5) arrangement or (ii) a single check valve and a SSV. A subsurface - controlled injection valve or readopted regulation valve satisfies single check valve requirement; test every 6 months SCSSV satisfies the requirements of a single check valve." fail -safe auto SSV and SCSSV; injection wells (except disposal) require 25.265(a); 25.2659(b); 25.265(d)(1); "Injection wells (excludin disposal injectors) must be equipped with(i) a double check valve Check valve requirements for injectors are not covered by Oooguruk Oooguruk - Nuiqsut 597 6 no (i) double check valve, or (ii) single check valve and SSV; injection 25.265(h)(5) arrangement or (ii) a single check valve and a SSV. A subsurface - controlled injection valve or readopted regulation valve satisfies single check valve requirement; test every 6 months SCSSV satisfies the requirements of a single check valve." fail -safe auto SSV and SCSSV; injection wells (except disposal) require 25.265(a); 25.265(b); 25.265(d)(1); "Injection wells (excludin disposal injectors) must be equipped with(i) a double check valve Check valve requirements for injectors are not covered by Oooguruk Oooguruk - Kuparuk 596 6 no (i) double check valve, or (ii) single check valve and SSV; injection . arrangement or (ii) a single check valve and a SSV. A subsurface - controlled injection valve or 25.265(h)(5) readopted regulation valve satisfies single check valve requirement; test every 6 months ( )( 5 ) SCSSV satisfies the requirements of a single check valve." fail -safe auto SSV and SCSSV; maintain list of wells w/ removed or 25.265(a); 25.265(b); 25.265(d)(2)(F); Requirement to maintain a wellhead sign and list of wells with Prudhoe Bay Unit Raven 570 5 yes r N/A deactivated SVS was replaced with requirement to maintain a deactivated SVS; sign on wellhead 25.265(m) tag on well when not manned fail -safe auto SSV and SCSSV; injection wells (except disposal) require 25.265(a); "I njec ti on we ll s (exc disposal injectors) must be equipped with(i) a double check valve (a); 25 25 Check valve requirements for injectors are not covered by Colville River Unit Fiord 569 5 no (I) double check valve, or (ii) single check valve and SSV; injection 25.265(h)(5) arrangement or (ii) a single check valve and a SSV. A subsurface - controlled injection valve or readopted regulation valve satisfies single check valve requirement; test every 6 months SCSSV satisfies the requirements of a single check valve." fail -safe auto SSV and SCSSV; injection wells (except disposal) require wells (excluding disposal injectors) must be equipped with(i) a double check valve 25.265(a); 25.265(b); 25.265(d)( Check valve requirements for injectors are not covered by Colville River Unit Nanuq - Kuparuk 563 6 no (1) double check valve, or (ii) single check valve and SSV; injection 25.265(h)(5) arrangement or (ii) a single check valve and a SSV. A subsurface - controlled injection valve or readopted regulation valve satisfies single check valve requirement; test every 6 months SCSSV satisfies the requirements of a single check valve." fail -safe auto SSV and SCSSV; injection wells (except disposal) require wells (excluding disposal injectors) must be equipped with(i) a double check valve 25.265(a); 25.265(b); 25.265(d)(2)(H); Check valve requirements for injectors are not covered by Colville River Unit Nanuq 562 6 no (i) double check valve, or (ii) single check valve and SSV; injection 25.265(h)(5) arrangement or (ii) a single check valve and a SSV. A subsurface - controlled injection valve or readopted regulation valve satisfies single check valve requirement; test every 6 months SCSSV satisfies the requirements of a single check valve" Prudhoe Ba Unit Put River 559 3 yes fail -safe auto SSV; SSSV landing nipple below permafrost; test as 25.265(a); 25.265(b); 25.265(d); N/A Readopted 25.265(d) dictates which wells require SSSV; Y prescribed by Commission 25.265(h)(5) replaces SSSV nipple requirement for all wells Deep Creek Unit Happy Valley 553 3 yes SSV or SSSV 25.265(a) N/A Prudhoe Bay Unit Orion 505B 3 yes fail -safe auto SSV; SSSV landing nipple below permafrost; test as 25.265(a); 25.265(b); 25.265(d); N/A Readopted 25.265(d) dictates which wells require SSSV; prescribed by Commission 25.265(h)(5) replaces SSSV nipple requirement for all wells Prudhoe Ba Unit Polaris 484A 3 yes fail -safe auto SSV; SSSV landing nipple below permafrost; test as 25.265(a); 25.265(b); 25.265(d); N/A Readopted 25.265(d) dictates which wells require SSSV; Y prescribed by Commission 25.265(h)(5) replaces SSSV nipple requirement for at wells fail -safe auto SSV; SSSV landing nipple below permafrost; gas /MI 25.265(a); 25.265 b 25.265 d Readopted 25.265(d) dictates which wells require SSSV; Milne Point Unit Milne Point ( )' ( )' 477 5 yes injection well require SSSV or injection valve below permafrost test N/A Schrader Bluff y 25.265(h)(5) replaces SSSV nipple requirement for all wells every 6 months Prudhoe 68 Unit Borealis 471 3 yes fail -safe auto SSV; SSSV landing nipple below permafrost; gas/MI 25.265(8); 25.265(b); 25.265(d); N/A Readopted 25.265(d) dictates which wells require SSSV; Y Y injection well require SSSV below permafrost; test every 6 months 25.265(h)(5) replaces SSSV nipple requirement for all wells Northstar Northstar 458A 4 no fail -safe auto SSV and SCSSV; test as prescribed by Commission; 500• 25.265(a); 25.265(b); 25.265(d)(1) "The minimum setting depth for a tubing conveyed subsurface safety valve is 500 feet." Existing pool rule established a minimum setting depth for the ft minimum setting depth for SSSV SSSV Prudhoe Ba Unit Aurora 457B 3 yes fail -safe auto SSV; SSSV landing nipple below permafrost; test every 6 25.265(a); 25.265(b); 25.265(d); Readopted 25.265(d) dictates which wells require SSSV; Y months 25.265(h)(5) N/A replaces SSSV nipple requirement for all wells fail -safe auto SSV; gas /MI injectors require SSV and single check 25.265(a); 25.265(b); 25.265(d); "Injection wells (excluding disposal injectors) must be equipped with(i) a double check valve Check valve requirements for injectors are not covered by Kuparuk River Unit Meltwater 456A 5 no valve and SSSV landing nipple; water injection wells require (1) double arrangement or (ii) a single check valve and a SSV. A subsurface-controlled injection valve or readopted regulation; readopted 25.265(d)(5) does not include check valve, or (ii) single check valve and SSV; test every 6 months 25 SCSSV satisfies the requirements of a single check valve." SSSV requirement for MI injectors Prudhoe Bay Unit Midnight Sun 452 6 yes fail -safe auto SSV (all injectors and producers capable of unassisted 25.265(a); 25.265(b); 25.265(d); N/A Readopted 25.265(d) dictates which wells require SSSV; flow to surface); test every 6 months 25.265(h)(5) replaces SSSV nipple requirement for all wells fail -safe auto SSV and SCSSV; SSSV may be installed above or below 25.265(a); 25.265(b); 25.265(d)(1); "The setting depth of a required subsurface safety valve must be located in the tubing either Existing pool rule established alternate SSSV setting depth; Duck Island Unit Eider 449 7 no permafrost; injection wells require double check valve; LPS trip above or below permafrost. Injection wells must be equipped with a double check valve check valve requirements for injectors are not covered by pressure; test every 6 months 25 arrangement." readopted regulation fail -safe auto SSV and SCSSV (producers and gas injectors); water "Injection wells (excluding disposal injectors) must be equipped with(i) a double check valve Check valve requirements for injectors are not covered by Colville River Unit Alpine 443B 5 no injection wells require (i) double check valve, or (ii) single check valve 25.265(a); 25.265(b); 25.265(d)(2)(H) arrangement or (ii) a single check valve and a SSV. A subsurface - controlled injection valve or readopted regulation and SSV SCSSV satisfies the requirements of a single check valve." fail -safe auto SSV; gas /MI injectors require SSV and single check 25.265(a); 25.265(b); 25.265(d); "Injection wells (excluding disposal injectors) must be equipped with(i) a double check valve Check valve requirements for injectors are not covered by Kuparuk River Unit Tabasco 435A 6 no valve and SSSV landing nipple; water injection wells require (i) double arrangement or (ii) a single check valve and a SSV. A subsurface controlled injection valve or readopted regulation; readopted 25.265(d)(5) does not include check valve, or (ii) single check valve and SSV; test every 6 months 25 SCSSV satisfies the requirements of a single check valve." SSSV requirement for MI injectors fail -safe auto SSV (S /D well and artificial lift); sign on well if SVS Requirement to maintain a wellhead sign and list of wells with deactivated; maintain list of wells w /deactivated SVS; test as 25.265(a); b 25.265(h)(5); deactivated SVS was replaced with requirement to maintain a 25.265 Ku aruk River Unit; 25 . 265 (b); p Kuparuk 432D 5 yes prescribed by Commission; CO 432D.009 modifies Rule 5(b) - LPP 265 m N/A tag on well when not manned; administrative approval CO 25 . Milne Point Unit may be defeated on W. Sak injectors w /surface pressure <500psi w/ ( ) 432D.009 remains effective [re:defeating the LPS when surface notice when defeated and placed back in service injection pressure for West Sak water injector is <500psi] Page 1 of 2 Orders Establishing Requirements for Well Safety Valve Systems 1/7/2011 Conservation New Regulation Provisions Revised Rule - "Well safety valves stems' (2) Comment UnitlField Pool Order (1) Rule Rescind Rule? Existing Order Requirement Addressing Reqts from Order y systems" ( ) fail -safe auto SSV; gas /MI injectors require SSV and single check 25.265(x); 25.265(b); 25.265(d); "Injection wells (excluding disposal injectors) must be equipped with(i) a double check valve Check valve requirements for injectors are not covered by Kuparuk River Unit Tarn 430A 6 no valve and SSSV landing nipple; water injection wells require (t) double arrangement or (ii) a single check valve and a SSV. A subsurface - controlled injection valve or readopted regulation; readopted 25.265(d)(5) does not include check valve, or (ii) single check valve and SSV; test every 6 months 25 SCSSV satisfies the requirements of a single check valve" SSSV requirement for MI injectors Milne Point - Sag 423 7 no fail -safe auto SSV; injection wells require double check valve; test Pp arrangement." valve requirements for injectors are not covered by Milne Point Unit every 6 months 25.265 ( a ) ; 25.265(b); b ) 25.265 ( h )( 5 ) "Injection wells must bee equipped ed with a double check valve arran ement" readopted regulation River fail -safe auto SSV; gas /MI injectors require SSV and single check Check valve requirements for injectors are not covered by valve and SSSV landing nipple; water injection wells require (i) double "Injection wells (excluding disposal injectors) must be equipped with(i) a double check valve readopted regulation; readopted 25.265(d)(5) does not include Kuparuk River Unit Kuparuk -West Sak 406B 6 n check valve, or (ii) single check valve and SSV; test every 6 months; 25.265(x); 25.265(b); 25.265(d); arrangement or (ii) a single check valve and a SSV. Asubsurface- controlled injection valve or SSSV requirement for MI injectors; administrative approval CO p P CO 4068.001 modifies Rule 6(e) - LPP may be defeated on W. Sak 25.265(h)(5) SCSSV satisfies the requirements of a single check valve. The Low Pressure Pilot may be injectors w /surface pressure <500psi w/ notice when defeated and defeated on West Sak water injectors with surface injection pressure less than 500psi." 4066.001 remains effective [re:defeating the LPS when surface injection pressure for West Sak water injector is <500psi] placed back in service fail -safe auto SSV and SCSSV; LPS trip pressure; readily accessible Badami Badami 402B 6 yes control unit; SSSV below permafrost; NTE 210days between tests; 25.265(a); 25.265(b); 25.265(h); N/A submit test results electronically within 14days; SVS defeated /removed 25.265(m) only if well SI or pad continuously manned fail -safe auto SSV (S /D well and artificial lift); sign on well if SVS 25.265(a); 25.265(b); 25.265(h)(5); Requirement to maintain a wellhead sign and list of wells with Prudhoe Bay Unit North Prudhoe 345 4 yes deactivated; maintain list of wells w /deactivated SVS; test as 25.265(m) N/A deactivated SVS was replaced with requirement to maintain a prescribed by Commission tag on well when not manned fail -safe auto SSV (S /D well and artificial lift); if SSSV installed it must be maintained and tested as part of SVS; sign on well if SVS 25.265(a); 25.265(b); 25.265(d); N/A Readopted 25.265(d) dictates which wells require SSSV; Prudhoe Bay Unit Prudhoe 341E 5 yes deactivated; maintain list of wells w /deactivated SVS; test as 25.265(h)(5) replaces SSSV nipple requirement for all wells prescribed by Commission fail -safe auto SSV and SCSSV; maintain list of wells w/ removed or 25.265(a); 25.265(b); 25.265(d); N/A Readopted 25.265(d) dictates which wells require SSSV; Prudhoe Bay Unit Niakuk 329A 5 yes deactivated SVS; sign on wellhead 25.265(h)(5); 25.265(m) replaces SSSV nipple requirement for all wells fail -safe auto SSV and SCSSV; SSSV may be rermoved as part of 25.265(a); 25.265(b); 25.265(d); N/A Readopted 25.265(d) dictates which wells require SSSV; Prudhoe Bay Unit Pt. McIntyre 3178 8 yes routine well ops w/o notice 25.265(j); 25.265(m) replaces SSSV nipple requirement for all wets fail -safe auto SSV; sign on well if SVS deactivated; maintain list of wells 25.265(a); 25.265(b); 25.265(d); N/A Readopted 25.265(d) dictates which wells require SSSV; Prudhoe Bay Unit West Beach 311B 6 yes w /deactivated SVS; test as prescribed by Commission 25.265(h)(5); 25.265(m) replaces SSSV nipple requirement for all wells West Fork West Fork (Sterling 300 5 yes fail -safe auto SVS on each production tubing 25.265(a); 25.265(b) N/A A &B) fail -safe auto SSV; sign on well if SVS deactivated; maintain list of wells 25.265(a); 25.265(b); 25.265(h)(5); Requirement to maintain a wellhead sign and list of wells with N/A Prudhoe Bay Unit Lisburne 207A 7 yes w /deactivated SVS; test as prescribed by Commission 25.265(m) deactivated SVS was replaced with requirement to maintain a tag on well when not manned suitable automatic safety valve installed below base of permafrost to 25.265 d N/A Readopted 25.265(d) dictates which wells require SSSV; Prudhoe Bay Unit Prudhoe - Kuparuk 98A 5 yes prevent uncontrolled flow () replaces SSSV nipple requirement for all wells AOGCC Policy - SVS Failures; issued by order of the Commission policy dictating SVS performance testing 25.265(h); 25.265(n); 25.265 ( o ) N/A Commission 3/30/1994 (signed by Commission Chairman Statewide N/A N/A N/A yes requirements Dave Johnson) Footnotes (1) No SVS rules found in Injection Orders (2) New title for Revised Rule; "N /A" means entire pool rule to be rescinded I Page 2 of 2 • . Public Hearing Record And Backup Information available in Other 66 if 6 Requested documents 41/ • { Subject: Requested documents Date: Wed, 15 Oct 2003 13:52:50 -0800 From: Jody Colombie <jody colombie @admin.state.ak.us> Organization: Alaska Oil and Gas Conservation Commission To: kbird @usgs.gov Mr. Bird: I was given your request yesterday and have completed the copying. I will mail the documents to you tomorrow. The Commission's standard charge for copies is $.25 per page. The total cost of your request is $20.75. I will enclose an invoice with the copies for payment. Thank you for your patience. In the future if you need documents from conservation orders, please e-mail me direct. Jody Colombie Special Staff Assistant Jody Colombie <jody colombie @admin.state.ak.us> 1 of 1 10/15/2003 2:04 PM lot Iow up • N - Subject: follow up Date: Fri, 10 Oct 2003 12:18:10 -0700 From: Ken Bird <kbird @usgs.gov> To: Howard_Okland@admin.state.ak.us Howard, In mid - August, I sent you an inquiry about figures submitted by BP for the Eider pool as follows: "The Exhibits F, G, H, and 'I for the Eider pool rules and injection order application dated April 17, 2000 were held confidential at BP's request until February 2001. We would like to get copies of these documents." Could you tell me the status of this request? I also would like to get a copy of the August 13, 2001 BPXA document entitled "Application to AOGCC for Approval of Pool Rules and Area Injection Order (for Northstar Field), Public Information Copy Regards, Ken Ken Bird U.S. Geological Survey 345 Middlefield Road, MS 969 Menlo Park, CA 94025 email: kbird @usgs.gov phone: 650 - 329 -4907 fax: 650 - 329 -4975 35 I • 1 ALASKA OIL AND GAS CONSERVATION COMMISSION 2 PUBLIC HEARING 3 ) In Re: ) 4 ) NORTHSTAR DEVELOPMENT WELLS, ) 5 NORTHSTAR FIELD. ) 6 TRANSCRIPT OF PROCEEDINGS 7 Anchorage, Alaska 8 November 7, 2002 9:02 o'clock a.m. 9 APPEARANCES: 10 Commissioners: MR. DAN SEAMOUNT, JR., CHAIRPERSON 11 MR. MIKE BILL 12 For Applicant 13 BP Exploration: MR. JEFF CONRAD • MR. MIKE FRANCIS 14 15 16 * * * * * 17 18 19 20 21 22 RECEIVED 23 NOV la 2002 24 Alaska OH & Gas Cons. Commission 25 Anchorage • METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276 -3876 • • 1 TABLE OF CONTENTS 2 WITNESSES: PAGE: 3 For the Applicant: 4 Mike Francis 6 5 EXHIBITS: ADMITTED: 6 Wellbore schematic 8 7 E -mail questions /answers 9 8 * * * * * 9 10 11 12 13 • 14 15 16 17 18 19 20 21 22 23 24 25 • METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276 -3876 ii • • • 1 P R O C E E D I N G S 2 (On record - 9:02 a.m.) 3 THE CHAIRPERSON: Call this hearing to order. 4 Thank you all for showing up, attending. The date is Thursday, 5 November 7, 2002. The time is 9:02. We're at the offices of 6 the AOGCC, Alaska Oil and Gas Conservation Commission. We're 7 located at 333 West Seventh Avenue, Anchorage, Alaska, and 8 those are our -- the AOGCC's office. I'd like to introduce us 9 at the front here. To my left is Commissioner Michael Bill. 10 My name is Dan Seamount. Cammy Taylor, the third commissioner, 11 has a scheduling conflict and she's attending to other 12 Commission business at this time. Laura Ferro is on my right. 13 She's with Metro Court Reporting. She's making a transcript of • 14 the proceedings. You can get a copy from Metro Court 15 Reporting. 16 The purpose of this hearing is to consider a request 17 from BP Exploration Alaska to be granted a variance from a 18 portion of AOGCC Regulation 20 AAC 25.265(a)(2), and that 19 states a completed well with an offshore surface location and 20 is capable of unassisted flow of hydrocarbons to the surface 21 must be equipped with a Commission - approved fail -safe automatic 22 subsurface safety valve system, capable of preventing an 23 uncontrolled flow unless another type of subsurface valve with 24 that capability is approved by the Commission. This valve must 25 be in a tubing string and located below the mud line datum, or • METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276 -3876 3 1 if permafrost is present, below the permafrost. That portion 2 that BP requests to be waived is a requirement that subsurface 3 safety valve be placed below the permafrost. Specifically, BP 4 wants to set the subsurface safety valve at 500 feet. 5 Notice of the hearing was published on October 5, 2002. 6 We -- the Commission received a request for the hearing dated 7 October 20, 2002. This was received on October , 2002, from 8 a Ms. Nancy Wainwright. Proceedings will be held in accordance 9 with 20 -- with regulation 20 AAC 25.540. These are 10 regulations governing public hearings. The hearing will be 11 recorded. 12 Is -- could I see the sign -in sheet, please? Okay. I 13 see that we have a few people that will provide testimony if • 14 needed. Do you -- does BP wish to provide oral testimony 15 today? 16 MR. CONRAD: We're here to answer questions if 17 the Commission has them, and we have some handouts that we'd 18 like to enter into the record. 19 THE CHAIRPERSON: Okay. Then I take it that 20 you probably should provide some testimony. Okay. We provide 21 that we consider sworn testimony or unsworn statements. We 22 give greater weight to sworn. Let's see, today, if you wish to 23 be considered an expert, you have to state your qualifications, 24 and the Commission will rule whether to consider you an expert. 25 Where did that sign -in sheet go? We're going to hear from BP METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276 -3876 4 +1 • 1 first. If anyone else wants to make an oral statement, they 2 will be allowed to do so at the end of the testimony. A person 3 may not ask questions of the witness directly, but to have a 4 question directed to the witness, you need to write the 5 question down, forward the question to the designated 6 Commission representative, which is Winton Aubert in the 7 audience there, then he will forward the designated -- he will 8 forward the question to the Commission. The Commission will 9 ask questions that -- ask the question if they deem that it's 10 relevant to the hearing. 11 Is there anyone else in the room that would like to 12 testify? I see from the sign -in sheet, no. It looks like the 13 Applicant will be the only one testifying today. Okay. We 410 14 invite the Applicant to introduce themselves. 15 MR. CONRAD: First of all, Mister 16 COURT REPORTER: Excuse me. Could you clip a 17 microphone on, please? Thank you. 18 THE CHAIRPERSON: Before making your 19 statements, could you give us your name? 20 MR. CONRAD: I'd like to introduce myself as 21 Jeff Conrad with BP. 22 THE CHAIRPERSON: Are you giving sworn 23 testimony? 24 MR. CONRAD: I am not giving sworn testimony 25 today. And with me is Mike Francis. He is a petroleum METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276 -3876 5 . 411 111 • 1 engineer at BP, and we will consider -- request the Commission 2 consider his testimony as expert testimony. 3 THE CHAIRPERSON: Okay. Are you giving sworn 4 testimony? 5 MR. FRANCIS: Right, okay. Are we ready? 6 THE CHAIRPERSON: Please raise your right hand. 7 (Oath administered) 8 MR. FRANCIS: Yes. 9 MIKE FRANCIS 10 called as a witness on behalf of the Applicant, testified as 11 follows: 12 THE CHAIRPERSON: State your name, please? 13 MR. FRANCIS: Okay. My name is Mike Francis. • 14 I'm the petroleum engineer for the Northstar Field. I received 15 a Bachelor of Science degree in petroleum engineering from 16 Texas A &M University in 1981. I have 21 years of petroleum 17 engineering experience with Arco, Vastar, and BP. I've worked 18 on fields located in Texas, the Gulf of Mexico, Indonesia, and 19 Alaska. I've been a licensed professional engineer in the 20 State of Alaska since 1990. I've worked on Northstar since 21 June 2001. 22 THE CHAIRPERSON: And do you -- who do you 23 represent? 24 MR. FRANCIS: BP. 25 THE CHAIRPERSON: Okay. Commissioner Bill, do • METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276 -3876 6 • 1 you have any questions concerning the witness' qualifications? 2 COMMISSIONER BILL: None. 3 THE CHAIRPERSON: Okay, Mr. Francis, you are 4 being accepted as an expert witness. 5 MR. FRANCIS: BP would like to switch the -- 6 switch to a tubing- conveyed subsurface controlled subsurface 7 safe -- or surface - controlled subsurface safety valve in our 8 future producing wells at Northstar. The tubing- conveyed 9 valves that we would like to use, they are the industry 10 standard. They require less well intervention activity than 11 the wireline- retrievable valves that are utilized in the 12 current Northstar wells. In order to use this type of tubing - 13 conveyed valve, which would be an improvement, the setting • 14 depth needs to be higher than the base of the permafrost as 15 required in the rules. This is necessary because the shallower 16 setting depth is to -- necessary to ensure that the valve will 17 operate properly across the full range of anticipated operating 18 conditions. 19 THE CHAIRPERSON: Okay. Do you wish to submit 20 any evidence into the record at this point? 21 MR. FRANCIS: Just a -- to demonstrate what 22 we're speaking about, I've got just a simple wellbore 23 schematic. 24 THE CHAIRPERSON: And you wish to have this 25 admitted into evidence? • METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276 -3876 7 i • • 1 MR. FRANCIS: Yes, sir. 2 THE CHAIRPERSON: Okay. We will admit a 3 wellbore schematic submitted November 7, 2002. It is two 4 pages. 5 (Exhibit of wellbore schematic admitted) 6 THE CHAIRPERSON: Could you describe it now? 7 MR. FRANCIS: What has been admitted into 8 evidence is a wellbore schematic for a typical producing well 9 at Northstar. This is one of the current wells. This shows a 10 safety valve landing nipple at 2,032 feet, measured depth. 11 This is below the base of the permafrost. The rule exception 12 that's being asked for would allow us to move that depth up to 13 as high as 500 feet to allow us to use a different type of 410 14 valve. This current wellbore that's shown has a wireline- 15 retrievable type valve whereas there's a setting -- there's a 16 landing nipple here that the valve is running on wireline. The 17 future wells, if the exception was granted, would have a tubing 18 retrievable type valve set at a shallower depth. This would 19 eliminate the need for the packing material that holds the 20 wireline- retrievable valve in place and reduce the amount of 21 intervention necessary to maintain proper operation of the 22 valve. 23 The second schematic is -- just shows what a tubing 24 retrievable subsurface safety valve looks like. 25 THE CHAIRPERSON: Okay. Before I ask • METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276 -3876 8 • • • 1 Commissioner Bill if he has any questions, you also submitted I 2 believe via e -mail today, November 7th, answers to 13 questions 3 that had been asked you by the Commission. 4 MR. FRANCIS: Yes, sir. 5 THE CHAIRPERSON: We're going to admit that 6 into evidence also, the 13 questions with answers -- the 7 questions from the Commission with BP's response in red. 8 (Exhibit of e-mail questions /answers admitted) 9 THE CHAIRPERSON: Commissioner Bill, do you 10 have any questions of the Applicant? 11 COMMISSIONER BILL: Regarding your diagram 12 on -- of the tubing - retrievable valve, will that be controlled 13 using control and balance lines? • 14 MR. FRANCIS: This type of valve is a single 15 control line valve. 16 COMMISSIONER BILL: All right. And those will 17 be strapped to the tubing? 18 MR. FRANCIS: Yes, sir. 19 COMMISSIONER BILL: Okay. It will be strapped 20 to the tubing, okay. Now I understand from the information 21 that you provided in answer to the questions that this setting 22 depth is used elsewhere on the North Slope? 23 MR. FRANCIS: It's my understanding it is used 24 at Milne Point. 25 COMMISSIONER BILL: Without operational • METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276 -3876 9 • • 1 problem? 2 MR. FRANCIS: Correct. 3 COMMISSIONER BILL: I think you had mentioned 4 as you introduced the exhibit that you intend to set the valve 5 as high as 500 feet. There's indication that you might be 6 using a deeper depth on -- in some installations. 7 MR. FRANCIS: The request was for a shallowest 8 500 feet. Our plan is to actually set them at 1,000 feet. 9 COMMISSIONER BILL: And would that be for both 10 producers and injectors? 11 MR. FRANCIS: No, sir. That would just be for 12 the future producing wells. In the injection wells, we'll 13 continue to use the current valve we're using, which is a 410 14 wireline- retrievable valve set at 2,000 feet and dual control 15 line valve. 16 COMMISSIONER BILL: What is it about the design 17 of the valve that makes 2,000 feet impractical or the -- or 18 your system that makes 2,000 feet impracticable for the 19 producing wells? 20 MR. FRANCIS: The valves as you know are 21 operated by a surface hydraulic system. Ours is rated up to 22 6,000 pounds. With 6,000 pounds, we cannot attain an opening 23 pressure at the conditions anticipated late in the life of the 24 field. 25 COMMISSIONER BILL: So current installations METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276 -3876 10 • • 1 would not have an operational problem? 2 MR. FRANCIS: It would not be a problem in the 3 near term future but we could have operational problems with 4 the valves late in the life of the field. 5 COMMISSIONER BILL: What would you do with 6 valves that are on completions that are already on existing 7 wells? 8 MR. FRANCIS: Well, the current wells that have 9 their valves at 2,000 feet, they'll utilize a different type of 10 valve that will be okay late in the life of the field, but with 11 the single control line tubing- retrievable valves, that's where 12 we run into the problem, or we could potentially run into the 13 problem late in the life of the field with the valves set at • 14 2,000 feet. 15 COMMISSIONER BILL: And all of the valves that 16 you intend to use are standard industry rated valves? 17 MR. FRANCIS: Yes, sir. They're Schlumberger 18 TRM -4 valves widely used elsewhere in the world. 19 COMMISSIONER BILL: Okay, thank you. 20 THE CHAIRPERSON: As I said before, it doesn't 21 look like any -- there is anyone else wishing to testify. I 22 want to make one last time to question whether anybody else 23 wants to testify. Okay, looks like there will be no more 24 testimony. At this time I'd like to take just a very short 25 five minute recess and we'll be right back. Off the record. • METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276 -3876 11 s • • 1 (Off record - 9:17 a.m.) 2 (On record - 9:23 a.m.) 3 THE CHAIRPERSON: On record. All of our 4 questions have been answered. It's now appropriate to close 5 the meeting. I'd like to thank you for your time, and a 6 decision will be forthcoming. Thank you. Off the record. 7 (Off record - 9:23 a.m.) 8 END OF PROCEEDINGS 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276 -3876 12 • • 1 C E R T I F I C A T E 2 UNITED STATES OF AMERICA) ) ss. 3 STATE OF ALASKA 4 I, Laura C. Ferro, Notary Public in and for the State 5 of Alaska, and Reporter for Metro Court Reporting, do hereby 6 certify: 7 That the foregoing Alaska Oil & Gas Conservation 8 Commission Public Hearing was taken before myself on the 7th 9 day of November 2002, commencing at the hour of 9:02 o'clock 10 a.m., at the offices of the Alaska Oil & Gas Conservation 11 Commission, 333 West Seventh Avenue, Suite 100, Anchorage, 12 Alaska; 13 That the public hearing was transcribed by myself to 14 the best of my knowledge and ability. 15 IN WITNESS WHEREOF, I have hereto set my hand and 16 affixed my seal this llth day of November 2002. 17 %14.(■ut,C, \ \ \Illllllil / / / / / ?-e/t-t-0 18 � "' F F'9 q �� Laura C. Ferro Notary Public in and for Alaska 19 • NOTAR Y = My P 06 03 commission ex ires: 05 _ / / 20 PUBLIC #! /! 1! I I I I I I\ \\ \`\\ 22 23 24 25 M E T R O COURT R E P O R T I N G , I N C . 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276 -3876 13 STATE OF ALASKA OIL AND GAS CONSERVATION COMMISSION NORTHSTAR SSV HEARING November 7, 2002 at 9:00 am NAME - AFFILIATION ADDRESS/PHONE NUMBER TESTIFY (Yes or No) (PLEASE PRINT) ,r M tc1Nat,1 . a . r rartc, P 5Co4 -4Z4CC t nt,edle.44 d i CarereA 3 8P/ 5 -sew s- via I1-Qt_ A 64 /Q'°Uc -c- / 1f5- 1151 (� - 6 7'73 - rZ3 /\/a ` 1o / M r c I C 1 ' 'S - \ . }∎ A/Y 4)6A I t 345 - 5- q5 ,n c) / o 22 / /tdicrf 3,c.c ,4oGcc 71 3 -/ z • BPXA request for SSSV setting depth at 500' at North Star Questions for BPXA 1. What is the lateral and vertical variability of the permafrost section(s)? It has not been logged in all of the wells. 2. Is the permafrost continuous within the main permafrost interval (1130' to 1630' in Seal #1 Well)? Yes 3. A primary reason for setting SSSV's below the base of the permafrost is to place the SSSV's below any potential detrimental effects within the permafrost section. What well designs (cementing practices, casing grades, annular fluids, etc.) at North Star mitigate that risk? The production casing is designed and pressure tested to withstand the full shut in tubing pressure. The annular fluid in both the IA and OA down below the base of permafrost is diesel. This diesel precludes the possibility of annular fluid freezing/expansion and the detrimental effects that may have adjacent casing or tubing. 4. Please describe the current safety valve system ( "SVS ") at North Star. The system consists of SCSSSVs, surface safety valves (actuated master valves) and actuated wing valves. These valves are designed to shut when the system is triggered and the hydraulic pressure is released. 5. What are the roblems associated with setting tubing conveyed SSSV's at 2000'? p g g co Y The minimum opening pressure in the worst -case late life field conditions exceeds the surface hydraulic system operating pressure of 6000 psi. 6. What does the MMS require for sub - surface safety valve ( "SSSV ") setting depth at North Star? They have the same requirements as the AOGCC, but have indicated they will follow the states lead and allow a shallower setting depth if the AOGCC approves this request. 7. What are the advantages of using tubing conveyed SSSV's? • The elimination of the packing required to seal wireline conveyed SSSVs in their landing nipples. Packing leaks that require that these wireline retrievable valves be pulled and replaced are common. • Tubing conveyed valves have the same ID as the tubing so they do not need to be pulled during well intervention activities such as perforating and production logging. 8. Why was the proposed 500' setting depth chosen? A setting depth shallower than the base of the permafrost is needed to ensure operation of the tubing retrievable SCSSSVs over the full range of expected conditions. An allowable setting depth request of 500' was based on the setting depth used at Milne Point. 9. Does BPXA plan any modifications to the SVS if the request is approved? A relief valve setting will be changed to allow the hydraulic supply pressure to increase from 5000 to 6000 psi. This is within parameters of the existing equipment. RECEIVED Nov 0 7 2002 (--) , Alaska Oit•& Gas Cons. Commission Anchorage • 10. Does BPXA plan any modifications (e.g. pulling tubing) to existing well completions? There are no plans to pull tubing in the current producers. The Halliburton dual control line BBE ball type SSSVs are being replaced with Schlumberger WRDP single control line flapper valves. 11. If tubing conveyed SSSV's are utilized, what are BPXA's plans if an SSSV fails? An insert valve like the wireline conveyed valves being used in the current producers can be set inside the proposed tubing conveyed SSSVs after the tubing conveyed SSSV is locked in the open position using wireline tools. 12. What would be the impact on the number of well interventions? Based on SSSV performance to date, we would expect to reduce the number of interventions in these new wells by one intervention per year in the nine wells that will use the tubing conveyed SSSVs. 13. What other types of SSSV's might be used at North Star in the future? The plan is as follows: • Tubing conveyed, single control line SCSSSVs set at 1000' in the nine future producers • Wireline retrievable, dual control line SCSSSVs set at 2000' in future injection wells (the same as the current injection wells) • If control line integrity is lost in a producing well, an insert subsurface controlled SSSV (SSCSSSV) will be run (i.e. a storm choke type valve). • If control line integrity is lost in an injectionwell, an insert SSCSSSV will be run (i.e. an injection valve). ALASKA OIL, GAS CONSERVATION IJMMISSION FAX 907- 276 -7542 PHONE 907- 279 -1433 FACSIMILE TRANSMITTAL SHEET TO: FROM: al COMPANY: DATE: FAX NUMBER: � �y L./ TOTAL NO OF PAGES INCLUDI COVER: / f PHONE NUMBER: SENDER'S REFERENCE NUMBER: RE: YOUR REFERENCE NUMBER: ❑ URGENT ❑ FOR REVIEW ❑ PLEASE COMMENT ❑ PLEASE REPLY ❑ PLEASE RECYCLE NOTES /COMMENTS: AOGCC 333 WEST 7TH AVENUE, SUITE 100 ANCHORAGE, AK 99501 -3935 �� Re: Nov 7th Hearing • Subject: Re: Nov 7th Hearing Date: Tue, 05 Nov 2002 12:20:02 -0900 From: Cammy Oechsli Taylor <Cammy_Taylor@admin.state.ak.us> Organization: DOA -AOGCC To: Jody Colombie <jody colombie @admin.state.ak.us> CC: Daniel T Seamount JR <dan_seamount @admin.state.ak.us >, Michael L Bill <mike bill @admin.state.ak.us> I didn't realize we had Northstar scheduled for the 7th - if she formally requested the hearing (and her request was timely) we must have a hearing. Who is the lead on this? Have all the issues been identified and has BP provided the commission with all the information to support a decision? Jody Colombie wrote: > Nancy Wainwright called today and was inquiring if we will be a hearing > on Northstar Setting SSV on November 7th. She has formally requested a > hearing. After I receive your answer I will call her back at 345 -5595. > Jody Cammy Oechsli Taylor <cammy taylor(aiadmin.state.ak.us> Commissioner Alaska Oil and Gas Conservation Commisison Department of Administration 1 of 1 11/5/2002 1:19 PM Northstar -SSSV Setting Depth • • Subject: Northstar - SSSV Setting Depth Date: Mon, 30 Sep 2002 11:32:01 -0500 From: "Francis, Michael J" <Michael.Francis @BP.com> To: "Winton Aubert (E- mail)" < wnton aubert@admin.state.ak.us> «SSSV setting depth - letter to AOGCC 09-30-2002.doc» Winton, Here is an unsigned copy for your reference. The signed letterhead copy is on the way. Regards, Mike Michael J. Francis, P.E. SP Exploration Alaska, Inc. RECEIVED Senior Petroleum Engineer Phone: (907) 564 -4240 Cell: (907) 529 -8678 Fax: (907) 564 -5200 e -mail: Michael.Francis @bp.com NOV N 7 0 t 2002 P.O. Box 196612 Anchorage, AK 99519-6612 Alaska Clf•& Gas Gons. Commissior Anchorage .._. � _ ..... . e: SSSV setting depth - letter to AOGCC SSSV setting depth - letter to AOGCC 09- 30- 2002.doc 09- 30- 2002.doc Type: WINWORD File (application/msword) Encoding: base64 Permafrost and SSSV Setting Depth • • Subject: Permafrost and SSSV Setting Depth Date: Thu, 19 Sep 2002 18:23:33 -0500 From: "Francis, Michael J" <Michael.Francis @BP.com> To: "Tom Maunder (E- mail)" <tom_maunder @admin.state.ak.us>, "Winton Aubert (E- mail)" <winton_aubert@admin.state.ak.us> CC: "NSU, ADW WL & Completion Supervisor" < NSUADWWL &CompletionSupervisor @BP.com >, "NSU, ADW Well Operations Supervisor" < NSUADWWellOperationsSupervisor @BP.com >, "NSU, ADW Well Integrity Engineer" < NSUADWWe1lIntegrityEngineer @BP.com >, "Hernandez, Floyd" <HernanF 1 @BP.com>, "Schultz, Mikel" <Mikel.Schultz @BP.com> Tom /Winton, BP is exploring the potential benefits of reducing the setting depth of the SSSVs of future Northstar wells. A reduced setting depth would eliminate the need to use a SSSV with a balance line. It would also allow the use of a tubing conveyed valve. Additionally, it would ensure that valves are not set in a deviated hole section. As you are aware, AOGCC regulation 20 AAC 25.265 states that "fail -safe automatic surface - controlled subsurface safety valve (SSSV) system capable of preventing an uncontrolled flow, unless another type of subsurface valve with that capability is approved by the commission; this valve must be in the tubing string and located below the mudline datum or, if permafrost is present, below the permafrost." The Permafrost at Northstar, as logged in the Seal A -01 well, exists between 1130' and 1630' subsea. Additionally, there is a slush zone that exists between 240' and 340' subsea. Would and under what conditions would the AOGCC entertain an exception to the "below the permafrost" clause? It is my understanding that there is a precedent already set Milne Pointe where the valves are set at 500'. Regards Mike Michael J. Francis, P.E. BP Exploration Alaska, Inc. Senior Petroleum Engineer Phone: (907) 564 -4240 Cell: (907) 529 -8678 RECEIVED Fax: (907) 564 -5200 e -mail: Michael.Francis@bp.com P.O. Box 196612 NOV 0 7 2002 Anchorage, AK 99519 -6612 Alaska OM Gas Cons. Commission Anchorage -4 1 a LAW OFFICES OF NANCY S. WAINWRIGHT 13030 Back Road, Suite 555 Anchorage , Alaska 99515 -3538 (907) 345 -5595 (telephone) (907) 345 -3629 (facsimile) nsw @Alaska.com (e -mail) October 20, 2002 Alaska Oil and Gas Conservation Commission RECEIVED 333 W. 7th Ave #100 Anchorage, Alaska, 99501 -3539 OCT 2 2 2002 4v'2i, Re: Request for Hearing A$S tI GdB0011S. BPXA Exemption to Allow the Setting of Subsurface Safety Valves in MOWS the Northstar Development Dear Commissioners: This request for hearing is submitted in response to the public notice which stated that "a person may request that a tentatively scheduled hearing be held by filing a written request with the Commission no later than 4:30 pm on October 22, 2002" for the BPXA request for an exemption under 20 AAC 35.265(a)(2). I request that the Commission hold the hearing tentatively set for November 7, 2002. Thank you for your consideration of this request. Sincerely, A'i 11,0 „Ii/U ' 1, t Nancy S Wainw ig it NSW:ne #2 STATE OF ALASKA NOTICE TO PUBLISHER ~" ADVERTISING ORDER NO. ADVERTISING INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED AFFIDAVIT OF PUBLICATION (PART2 OF THIS FORM)WITH Ag-rACHED COPY OF AO-0231401 8 ORDER ADVERTISEMENT MUST BE SUBMI'I-rED WITH INVOICE SEE BOTTOM FOR INVOICE ADDRESS F ' AOGCC AGENCY CONTACT DATE OF A.D. R 333 W 7th Ave, Ste 100 Jody Colombie October 3, 2002, o Anchorage, AK 99501 PHONE PCN M - (907~ 793-1221 T Anchorage Daily News October 5, 2002 o P O Box 149001 Anchorage, AK 99514 T.E MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: Account #STOF0330 Advertisement to be published was e-mailed Type of Advertisement X Legal J__J Display J__J Classified J~Other (Specify) SEE ATTACHED PUBLIC HEARING I IT°TAL°F I ::::SEND INVOiCE. iN'..~RIPlqCATE.::I AOGCC, 333 W. 7th Ave., Suite 100 PAGE 1 OF ALL PAGES$I ;.:?'i'.!'!i'! :' :]':':?::' :':.'::".':' '. ':.':.: ;;':.':.:'. :""' ';:: T~"]:' :::::::::::::::::::::::::::::::::::':(..'"::.':'!' ;:':":'.::' ::..!:::':. :."::i::':.:":::::..':~I A n ch nra.~e. A K c)0s 01 2 PAGES REF TYPE NUMBER AMOUNT DATE COMMENTS '1 VEN 2 ARD 02910 Plkl &Mt"tl IHT .~V ~1~. D~M m r. ~.~.T c¥ NMR OlST Lin t 03 02140100 73540 2 3 R;QUISITIONED BY: ,/~ ~ /r ',~ j / ,,// /,.. ..,,,.~.....,.,~ 02-902 (Rev. 3/94) Publisher/Original Copies: Department Fiscal, Department, Receiving AO.FRM Anchorage Daily News Affidavit of Publication 1001 Northway Drive, Anchorage. AK 99508 10/8/2002 AD # DATE PO ACCOUNT 593675 10/05/2002 02314018 STOF0330 PRICE OTHER OTHER PER DAY .CHARGES CHARGES $134.26 $134.26 $0.00 $0.00 OTHER OTHER OTHER GRAND CHARGES #3 CHARGES ~4 CHARGES #5 TOTAL $0.00 $0.00 $0.00 $134.26 STATE OF ALASKA THIRD JUDICIAL DISTRICT Amy Heath, being first duly sworn on oath deposes and says that she is an advertising representative of the Anchorage Daily News, a daily newspaper. That said newspaper has been approved by the Third Judicial Court, Anchorage, Alaska, and it now and has been published in the English language continually as a daily newspaper in Anchorage, Alaska, and it is now and during all saidtime was printed in an office maintained at the aforesaid place of publication of said newspaper. That the annexed is a copy of an advertisement as it was published in regular issues (and not in supplemental form) of said newspaper on the above dates and that such newspaper was regularly distributed to its subscribers during all of said period. That the full amount of the fee charged for the foregoing publication is not in excess of the rate charged private individuals. Subscribed and sworn to me before this date: Notice of Public Hearing STATE OF ALASKA . AlasRa Oil and OaS Conservation Commission Re: Northstar Development Wells, NOrthstar Field BP Exploration (Alaska), Inc. by letter dated September 30, 2002, has applied for an exemption Under 20 AAC 25.265(a)(2) to allOW the setting'of subsurface safety valves in Northstar develop- ment wells at a depth of approximately 500 feet TVD. ' ' The Commission has te~ntatlvely set a public hearing on this application for November 7, 2002 at. 9:00 am at the Alaska O11 and GaS Cbnservation Commission at 333 West 7th Avenue, Suite 100, An- 'chorage~ Alaska 99501. A person m.a¥.request that the tentatively schedul'ed hearing be held by filing a written request with the Commission no later :than 4:.30 ~pm on. October 22, 2002. , If a request for a hearing is not timely filed, ;r'he Commission will Consider the issuance, of an order without a hearing. To learn if the Commis- sion will hold 'the Public hearing, please call 793-1221.. . .. . In addition, a person may submit written comments regarding this application to the Alaska Oil and Gas Conservation Commission at 333 West 7th A~enue, Suite'100, 'Anchorage, Alaska 99501. ,Wi"itten comments must be received :no later than 4:30 pm on November 6, 2002 except that if the Commission decides to hold a public hearing, writ- .ten comments must be received no later than 9:00 am on November 7~ 2002. , 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 Jody C01ombie at 793-1221. before November 1, 2002. · 'D~'niel T, seamount, Jr. Commissioner Publish: October 5, 2002' ' Notary Public in and for the State of Alaska. Third Division. Anchorage, Alaska MY COMMISSION EXPIRES: STATE OF ALASKA [. NOTICE TO PUBLISHER '~' ADVERTISING ORDER NO. ADVERTISING INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED AFF,DAV,T OF PUBL,CAT,ON (P^RT 2 Or T.,S FO..) W,TH A~AOHED COP~ OF A O-0231 401 8 ORDER ADVERTISEMENT MUST BE SUBMIq-~ED WITH INVOICE SEE BOTTOM FOR INVOICE ADDRESS FAOGCC AGENCY CONTACT DATE OFA.O. R 333 West 7th Avenue. Suite 100 Jodv Colombie October 3_ 2002 O Ar~c']nc~rac~. A~' QQ~(]I PHONE PCN M - (9073 793-1221 DATES ADVERTISEMENT REQUIRED: T Anchorage Daily News October 5, 2002 o ? O Box 149001 Anchorage, AK 99514 ~.N~v oN T,~ ~nT~S S~OW~. SPECIAL INSTRUCTIONS: Account #STOF0330 AFFIDAVIT OF PUBLICATION United states of America REMINDER State of ss INVOICE MUST BE IN TRIPLICATE AND MUST REFERENCE THE ADVERTISING ORDER NUMBER. division. A CERTIFIED COPY OF THIS AFFIDAVIT OF PUBLICATION MUST BE SUBMITTED WITH THE INVOICE. Before me, the undersigned, a notary public this day personally appeared ATTACH PROOF OF PUBLICATION HERE. who, being first duly sworn, according to law, says that he/she is the of Published at in said division and state of and that the advertisement, of which the annexed is a true copy, was published in said publication on the __ day of 2002, and thereafter fOr consecutive days, the last publication appearing on the __ day of ,2002, and that the rate charged thereon is not in excess of the rate charged private individuals. Subscribed and sworn to before me This ~ day of 2002, Notary public for state of My commission expires 02-901 (Rev. 3/94) AO.FRM Page 2 PUBLISHER Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: Northstar Development Wells, Northstar Field BP Exploration (Alaska), Inc. by letter dated September 30, 2002, has applied for an exemption under 20 AAC 25.265(a)(2) to allow the setting of subsurface safety valves in Northstar development wells at a depth of approximately 500 feet TVD. The Commission has tentatively set a public hearing on this application for November 7, 2002 at 9:00 am at the Alaska Oil and Gas Conservation Commission at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. A person may request that the tentatively scheduled hearing be held by filing a written request with the Commission no later than 4:30 pm on October 22, 2002. If a request for a hearing is not timely filed, the Commission will consider the issuance of an order without a hearing. To learn if the Commission will hold the public hearing, please call 793-1221. In addition, a person may submit written comments regarding this application to the Alaska Oil and Gas Conservation Commission at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. Written comments must be received no later than 4:30 pm on November 6, 2002 except that if the Commission decides to hold a public hearing, written comments must be received no later than 9:00 am on November 7, 2002. 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 Jody Colombie at 793-1221 before November 1, 2002. ~I~~~~ Daniel T. S~amount, Jr. Commissioner Published Date: October 5, 2002 ADN AO# 02314018 John Katz State of Alaska Alaska Governor's Office 444 North Capitol St., NW, Ste 336 Washington, DC 20001 Daniel Donkel 2121 North Bayshore Drive, Ste 1219 Miami, FL 33137 SD Dept of Env & Natural Resources Oil and Gas Program 2050 West Main, Ste 1 Rapid City, SD 57702 Alfred James 107 North Market Street, Ste 1000 Wichita, KS 67202-1822 Christine Hansen Interstate Oil & Gas Compact Comm Excutive Director PO Box 53127 Oklahoma City, OK 73152 Citgo Petroleum Corporation PO Box 3758 Tulsa, OK 74136 Conoco Inc. PO Box 1267 Ponca City, OK 74602-1267 Mir Yousufuddin US Department of Energy Energy Information Administration 1999 Bryan Street, Ste 1110 Dallas, TX 75201-6801 Mary Jones XTO Energy, Inc. Cartography 810 Houston Street, Ste 2000 Ft. Worth, TX 76102-6298 Gregg Nady Shell E&P Company Onshore Exploration & Development PO Box 576 Houston, TX 77001-0576 Michael Nelson Purvin Gertz, Inc. Library 600 Travis, Ste 2150 Houston, TX 77002 Paul Walker Chevron 1301 McKinney, Rm 1750 Houston, TX 77010 G. Scott Pfoff Aurora Gas, LLC 10333 Richmond Ave, Ste 710 Houston, TX 77042 David McCaleb IHS Energy Group GEPS 5333 Westheimer, Ste 100 Houston, TX 77056 G. Havran Gaffney, Cline & Associations Library 1360 Post Oak Blvd., Ste 2500 Houston, TX 77056 William Holton, Jr. Marathon Oil Company Law Department 5555 San Fecipe St. Houston, TX 77056-2799 T.E. Alford ExxonMobil Exploration Company PO Box 4778 Houston, TX 77210-4778 Texico Exploration & Production PO Box 36366 Houston, TX 77236 Corry Woolington ChevronTexaco Land-Alaska PO Box 36366 Houston, TX 77236 Chevron USA Alaska Division PO Box 1635 Houston, TX 77251 W. Allen Huckabay Phillips Petroleum Company Exploration Department PO Box 1967 Houston, TX 77251 Donna Williams World Oil Statistics Editor PO Box 2608 Houston, TX 77252 Chevron Chemical Company Library PO Box 2100 Houston, TX 77252-9987 Shawn Sutherland Unocal Revenue Accounting 14141 Southwest Freeway Sugar Land, TX 77478 Kelly Valadez Tesoro Refining and Marketing Co. Supply & Distribution 300 Concord Plaza Drive San Antonio, TX 78216 James White Intrepid Prod. Co./Alaskan Crude 4614 Bohill SanAntonio, TX 78217 Doug Schultze XTO Energy Inc. 3000 North Garfield, Ste 175 Midland, TX 79705 Robert Gravely 7681 South Kit Carson Drive Littleton, CO 80122 George Vaught, Jr. PO Box 13557 Denver, CO 80201-3557 Jerry Hodgden Hodgden Oil Company 408 18th Street Golden, CO 80401-2433 John Levorsen 200 North 3rd Street, #1202 Boise, ID 83702 Kay Munger Munger Oil Information Service, Inc PO Box 45738 Los Angeles, CA 90045-0738 John F. Bergquist Babson and Sheppard PO Box 8279 Long Beach, CA 90808-0279 Samuel Van Vactor Economic Insight Inc. 3004 SW First Ave. Portland, OR 97201 Thor Cutler OW-137 US EPA egion 10 1200 Sixth Ave. Seattle, WA 98101 Michael Parks Marple's Business Newsletter 117 West Mercer St, Ste 200 Seattle, WA 98119-3960 Richard Mount State of Alaska Department of Revenue 500 West 7th Ave., Ste 500 Anchorage, AK 99501 Tim Ryherd State of Alaska Department of Natural Resources 550 West 7th Ave., Ste 800 Anchorage, AK 99501 Williams VanDyke State of Alaska Department of Natural Resources 550 West 7th Ave., Ste 800 Anchorage, AK 99501 Cammy Taylor 1333 West 11th Ave. Anchorage, AK 99501 Ed Jones Aurora Gas, LLC Vice President 1029 West 3rd Ave., Ste 220 Anchorage, AK 99501 Jim Arlington Forest Oil 310 K Street, Ste 700 Anchorage, AK 99501 Duane Vaagen Fairweather 715 L Street, Ste 7 Anchorage, AK 99501 Robert Mintz State of Alaska Department of Law 1031 West 4th Ave., Ste 200 Anchorage, AK 99501 Julie Houle State of Alaskan DNR Div of Oil & Gas, Resource Eval. 550 West 7th Ave., Ste 800 Anchorage, AK 99501 Susan Hill State of Alaska, ADEC EH 555 Cordova Street Anchorage, AK 99501 Trustees for Alaska 1026 West 4th Ave., Ste 201 Anchorage, AK 99501-1980 Mark Wedman Halliburton 6900 Arctic Blvd. Anchorage, AK 99502 John Harris NI Energy Development Tubular 3301 C Street, Ste 208 Anchorage, AK 99503 Ciri Land Department PO Box 93330 Anchorage, AK 99503 Schlumberger Drilling and Measurements 3940 Arctic Blvd., Ste 300 Anchorage, AK 99503 Baker Oil Tools 4730 Business Park Blvd., #44 Anchorage, AK 99503 Rob Crotty C/O CH2M HILL 301 West Nothern Lights Blvd Anchorage, AK 99503 Jack Laasch Natchiq Vice President Government Affairs 3900 C Street, Ste 701 Anchorage, AK 99503 Mark Hanley Anadarko 3201 C Street, Ste 603 Anchorage, AK 99503 Mark Dalton HDR Alaska 2525 C Street, Ste 305 Anchorage, AK 99503 Judy Brady Alaska Oil & Gas Associates 121 West Fireweed Lane, Ste 207 Anchorage, AK 99503-2035 Arlen Ehm 2420 Foxhall Dr. Anchorage, AK 99504-3342 Greg Noble Bureau of Land Management Energy and Minerals 6881 Abbott Loop Rd Anchorage, AK 99507 Rose Ragsdale Rose Ragsdale & Associates 3320 E. 41st Ave Anchorage, AK 99508 Paul L. Craig Trading Bay Energy Corp 5432 East Northern Lights, Ste 610 Anchorage, AK 99508 Richard Prentki US Minerals Management Service 949 East 36th Ave., 3rd Floor Anchorage, AK 99508 Thomas R. Marshall, Jr. 1569 Birchwood Street Anchorage, AK 99508 Jill Schneider US Geological Survey 4200 University Dr. Anchorage, AK 99508 Jim Scherr US Minerals Management Service Resource Evaluation 949 East 36th Ave., Ste 308 Anchorage, AK 99508 Jeff Walker US Minerals Management Service Regional Supervisor 949 East 36th Ave., Ste 308 Anchorage, AK 99508 Chuck O'Donnell Veco Alaska,Inc. 949 East 36th Ave., Ste 500 Anchorage, AK 99508 Gordon Severson 3201 Westmar Cr. Anchorage, AK 99508-4336 Jim Ruud Phillips Alaska, Inc. Land Department PO Box 100360 Anchorage, AK 99510 Kristen Nelson IHS Energy PO Box 102278 Anchorage, AK 99510-2278 Perry Markley Alyeska Pipeline Service Company Oil Movements Department 1835 So. Bragaw- MS 575 Anchorage, AK 99515 Jordan Jacobsen Alyeska Pipeline Service Company Law Department 1835 So. Bragaw Anchorage, AK 99515 Robert Britch, PE Northern Consulting Group 2454 Telequana Dr. Anchorage, AK 99517 David Cusato 600 West 76th Ave., #508 Anchorage, AK 99518 Jeanne Dickey BP Exploration (Alaska), Inc. Legal Department PO Box 196612 Anchorage, AK 99518 Peter McKay BP Exploration (Alaska), Inc. BP P7 PO Box 196193 Anchorage, AK 99519 Tesoro Alaska Company PO Box 196272 Anchorage, AK 99519 J. Brock Riddle Marathon Oil Company Land Department PO Box 196168 Anchorage, AK 99519-6168 Kevin Tabler Unocal PO Box 196247 Anchorage, AK 99519-6247 Sue Miller BP Exploration (Alaska), Inc. PO Box 196612 Anchorage, AK 99519-6612 BP Exploration(Alaska),lnc. Land Manager PO Box 196612 Anchorage, AK 99519-6612 Dudley Platt D.A. Platt & Associates 9852 Little Diomede Cr. Eagle River, AK 99577 Bob Shavelson Cooklnlet Keeper PO Box 3269 Homer, AK '99603 Shannon Donnelly Phillips Alaska, Inc. HEST-Enviromental PO Box 66 Kenai, AK 99611 Kenai Peninsula Borough Economic Development Distr PO Box 3029 Kenai, AK 99611 Penny Vadla Box 467 Ninilchik, AK 99639 Claire Caldes US Fish &Wildli~ Service Kenai Refuge PO Box 2139 Soldotna, AK 99669 James Gibbs PO Box 1597 Soldotna, AK 99669 Kenai National Wildlife Refuge Refuge Manager PO Box 2139 Soldotna, AK 99669-2139 John Tanigawa Evergreen Well Service Company PO Box 871845 Wasilla, AK 99687 Richard Wagner PO Box 60868 Fairbanks, AK 99706 Cliff Burglin PO Box 131 Fairbanks, AK 99707 Harry Bader State of Alaska Department of Natural Resources 3700 Airport Way Fairbanks, AK 99709 Bernie Kad K&K Recycling Inc. PO Box 58055 Fairbanks, AK 99711 North Slope Borough PO Box 69 Barrow, AK 99723 Williams Thomas Arctic Slope Regional Corporation Land Department PO Box 129 Barrow, AK 99723 Senator Loren Leman State Capitol Rm 113 Juneau, AK 99801-1182 Re: Amended Notice of Public Hearing Subject: Re: Amended Notice of Public Hearing Date: 03 Oct 2002 14:26:23 -0800 From: Amy Heath <aheath~adn.com> To: <j ody_colombie@admin.state.ak.us> __ Account Number: STOF0330 Legal Ad Number: 593675 (amended public notice) Run Dates: October 5, 2002 Total Amount: $134.26 Thanks Jody! :) Amy L. Heath Legal Customer Service Representative Phone: (907) 257-4296 Fax: (907) 279-8170 Office Hours 8:00am - 5:00pm aheath@adn.com On Thursday, October 3, 2002, jody_colombie@admin.state.ak.us wrote: >Amy: > >Please toss the last public notice I sent you and replace it >wi th this >one. Jody 1 of 1 10/3/2002 2:57 PM #1 bp Michael J. Francis, P.E. Senior Petroleum Engineer Northstar BP Exploration (Alaska) Inc. 900 East Benson Boulevard P.O. Box 196612 Anchorage, Alaska 99519-6612 (907) 561-5111 September 30, 2002 Winton Aubert Alaska Oil & Gas Conservation Commission 333 West 7th Avenue Suite 100 Anchorage, AK 99501 Phone: (907) 564-4240 Fax: (907) 564-5200 Email Michael. Francis@bp.corn Web: www.bp.com RE: Northstar SSSV Setting Depth Dear Winton: BP Exploration (Alaska)Inc. seeks an exemption to a portion of AOGCC regulation 20 AAC 25.265 (a)(2). This regulation states that "A completed well with an offshore surface location and that is capable of unassisted flow of hydrocarbons to the surface, must be equipped with a commission approved fail-safe automatic surface-controlled subsurface safety valve (SSSV) system capable of preventing an uncontrolled flow, unless another type of subsurface valve with that capability is approved by the commission; this valve must be in the tubing string and located below the mudline datum or, if permafrost is present, below the permafrost." BP seeks permission to set SSSVs above the base of the permafrost. The Permafrost at Northstar, as logged in the Seal A-01 well, exists between 1130' and 1630' subsea. Additionally, there is a slush zone that exists between 240' and 340' subsea. The current wells at Northstar have the SSSVs set at 2000' TVD, below the permafrost.. The combination of this setting depth and the available hydraulic system pressure limits the types of SSSVs that can be used at Northstar and precludes the use of tubing conveyed SSSVs. Tubing conveyed SSSVs are the industry standard and are not prone to the packing leaks common to wireline retrievable valves such as those in the current Northstar wells. Packing leaks and other problems with the SSSVs at Northstar have necessitated extensive well intervention activity. RECEIVED SEP 3o, 2002 Alaska Off,& Gas (:Ions. Commlssio[~ Anchorage Winton Aubert Northstar SSSV Setting Depth September 30, 2002 BP proposes to raise the allowable SSSV setting depth to 500' TVD. This depth will allow for the use of tubing retrievable SSSVs. This type of valve should provide greater reliability and reduce well interventions in future Northstar wells. Sincerely, Senior PCt, foleum Engineer CC: John Garing Mikel Schultz Floyd Hernandez Steve Rossberg John Smart/Gary McBride Doug Cismoski/Jerry Middendorf File