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Home My WebLink AboutCO 482Conservation 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. ~i-~~- Conservation Order Category Identifier Organizing RESCAN [] Color items: [] Grayscale items: [] Poor Quality Originals: [] Other: NOTES' DIGITAL DATA [] Diskettes, No. [] Other, No/Type OVERSIZED (Scannable with large plotter/scanner) [] Maps: [] Other items OVERSIZED (Not suitable for plotter/scanner, may work with 'log' scanner) [] Logs of various kinds [] Other BY: -~:~MARIA Scanning Preparation Production Scanning Stage I PAGE COUNT FROM SCANNED DOCUMENT: PAGE COUNT MATCHES NUMBER IN SCANNING PREPARATION: ~ YES NO BY: Stage 2 IF NO IN STAGE 1, PAGE(S) DISCREPANCIES WERE FOUND: ~ YES NO (SCANNING IS COMPLETE AT THIS POINT UNLESS SPECIAL ATTENTION IS REQUIRED ON AN INDIVIDUAL PAGE BASIS DUE TO QUALITY, GRAYSCALE OR COLOR IMAGES) General Notes or Comments about this Document: 5/21/03 ConservOrdCvrPg.wpd INDEX CONSERVATION ORDER NO. 482 SWANSON RIVER FIELD SRU 213-10 1. August 7, 2002 Unocal's request for Tubingless Completions SRU 213-10 2. August 17, 2002 Notice of hearing, Affidavit of publication, bulk mailing list for the Anchorage Daily News 3. September 16, 2002 E-mail from Jim re: Unocal 4. September 19, 2002 Sign in Sheet o September 25, 2002 Unocal's letter to CC's regarding non-participating in the hearing. 6. September 19, 2002 Transcript o December 20, 2002 Letter from CC's to Unocal Denying Request due to unresponsiveness from Operator Unocal Conservation Order 482 Title 43 NATURAL RESOURCES Part XIX. Office of Conservation' General Operations Subpart 11. Statewide Order No. 29-J Chapter 27. Tubingless Completions §2701. Scope This Order provides rules and regulations governing unprotested applications in the use of tubingless completions in the state of Louisiana. AUTHORITY NOTE: Promulgated in accordance with R.S.30:4 et seq. HISTORICAL NOTE: Adopted by the Department of Conservation, March 1, 1961, amended May 1, 1963, amended and promulgated by the Department of Natural Resources, Office of Conservation, LR 19:777 (June 1993). §2703. Definitions Unless the context otherwise requires, the words defined in this Section shall have the following meanings when found in this Order. District Manager, the head of any one of the districts of the state of Louisiana under the Office of Conservation, and, as used, refers specifically to the manager within whose district the field or fields are located. Office. the Office of Conservation of the state of Louisiana. Tubingless Completion' the completion of any well so as to permit the passage of production fi.om one separate underground source through one production casing set in the well. AUTHORITY NOTE: Promulgated in accordance with R.S.30:4 et seq. HISTORICAL NOTE: Adopted by the Department of Conservation, March 1, 1961, amended May 1, 1963, amended and promulgated by the Department of Natural Resources, Office of Conservation, LR 19:777 (June 1993). §2705. Order A. From and after the effective date hereof, permission to complete and produce wells without the use of tubing may be obtained fi.om the district manager without the necessity of a public hearing in the absence of protests, and upon strict compliance with the procedure set forth herein. g. No permission to complete and produce wells without the use of tubing will be granted without a public hearing unless and until the data and information required by the district manager shall have been filed in his office; said filings to be made in duplicate and to include the following information: APPLICATION FOR TUBINGLESS COMPLETION IN THE FIELD. Date: Serial No.: Field Name: Parish: Dept. Dist: Operator: Lease: Well No.: 1. This application is for:a. A proposed well b. A well now being drilled c. A well now drilled to total depth 2. The following facts are submitted: a. Name of reservoir: b. Approximate top of pay section: c. Approximate bottom of pay section: d. Approximate perforations: e. Type of production (oil or gas): f. Reservoir pressure: ~ psig at feet subsea. g. Reservoir pressure gradient: psi per foot (from above). h. Anticipated method of production following initial completion (flowing or artificial lift): 1. Electric Log does not indicate any commercial productive sand above proposed top of cement. 3. The following are attached: a. Diagrammatic sketch of proposed tubingless completion installation. b. Plat showing location of well. 4. Has the district manager of the Office of Conservation granted tubiagless completion in this field prior to this application? __ 5. Does all geological and engineering data now available indicate that this well and/or pool contains limited reserves to the extent that a normal completion is not feasible from the standpoint of economics? 6. List all other operators in the field where this well is located together with correct mailing address of each and evidence that each such operator has approved the tubingless completion applied for: 7. Is the fluid to be produced conducive to corrosion to the extent that any resulting corrosion will destroy the effective seal of the production casing during the producing life of this well'? 71 Louisiana Administrative Code September 1999 NATURAL RESOURCES 8. If the answer to Item 7 above is Yes, what steps are proposed to combat or circumvent this corrosion problem? Date Approved: __ By Operator District Manager CERTIFICATE This is to certify that, to the best of my knowledge and belief, the information contained in this application is true and correct. Signed Title Representing Form-T.C.-1 C. If an applicant for a tubingless completion installation is unable to obtain the approval of all of the other operators in the field then such an applicant must apply for a public hearing following the usual 10-day advertisement period after furnishing a list of all known parties, including operators and royalty owners, affected by the application, all in accordance with Title 30 of the Louisiana Revised Statutes of 1950, as amended. D. All approved applications shall be subject to the applicant's conforming with the following requirements: 1. Conductor Pipe. The use and removal of conductor pipe during the drilling of any oil or gas well shall be at the option of the operator. Conductor pipe is that pipe ordinarily used for the purpose of supporting unconsolidated surface deposits. 2. Surface and Intermediate Casing. All fresh water sands shall be cased off by the surface or first intermediate casing in accordance with provisions of Part XIX, Subpart 1. 3. Producing Oil String a. Producing or oil string is that casing used for the purpose of segregating the horizon from which production is obtained and affording a means of communication between such horizon and the surface. b. The producing string of casing shall consist of new or reconditioned casing tested at mill tent pressure or at 1.25 times the maximum anticipated bottomhole pressure, whichever is greater. The producing string of casing shall be set at a sufficient depth to cut off all gas formations above the oil-saturated horizon in which the well is to be completed. The position of the oil horizon shall be determined by coring, testing or electrical logging, or other satisfactory method, and the producing string of casing shall be bottomed and cemented at a point below the gas/oil contact, if determinable and practicable. The producing string of casing shall be of sufficient size and completed with the proper amount of tension so as to allow the running of conventional bottomhole pressure bombs, temperature survey units and all instruments of similar nature to the depth of the producing horizon. c. Cement shall be by the pump and plug method, or another method approved by the office. Sufficient cement shall be used to fill the calculated annular space behind the casing to such a point as, in the opinion of the district manager, local conditions require to protect the producing formations and all other oil and gas formations occurring above, but in every case, no less cement shall be used than the calculated amount necessary to fill the annular space to a point 500 feet above the top producing zone. The calculated amount of cement required shall be determined by a hole caliper survey or 1.5 times the theoretical volume required to fill this annular area. d. The amount of cement to be left remaining in the casing, until the requirements of §2705.D.3.e below have been met, shall be not less than 20 feet. This shall be accomplished through the use of a float collar or other approved or practicable means, unless a full-hole cementer, or its equivalent, is used. e. Cement shall be allowed to stand a minimum of 12 hours under pressure and a minimum total of 24 hours before initiating test or drilling plug in the producing or oil string. Under pressure is complied with if one or more float valves are employed and are shown to be holding the cement in place, or when other means of holding pressure are used. When an operator elects to perforate and squeeze or to cement around the shoe, he may proceed with such work after 12 hours have elapsed after placing the first cement. fi Before drilling the plug in the producing string of casing in wells drilled to 3,000 feet or less, the casing shall be tested with a pressure equivalent to 1,500 psi surface pressure applied with water in the casing, and in wells drilled deeper than 3,000 feet, the casing shall be tested with a pressure equivalent to 3,000 psi surface pressure applied with water in the casing. If, at the end of 30 minutes, the pressure gauge shows a drop of 10 percent of the test pressure or more, the operator shall be required to take such corrective measures as will insure that the producing string of casing is so set and cemented that it will hold said pressure for 30 minutes without a drop of more than 10 percent of the test pressure on the gauge. g. If the commissioner's agent is not present at the time designated by the operator for inspection of the casing tests of the producing string, the operator shall have such tests witnessed, preferably by an offset operator. An affidavit of the test, on the form prescribed by the Office of Conservation, signed by the operator and witness, shall be furnished to the district office of the Office of Conservation shown that the test conformed satisfactorily to the above mentioned regulations before proceeding with the completion. If test is satisfactory, normal operations may be resumed immediately. h. If the test is unsatisfactory, the operator shall not proceed with the completion of the well until a satisfactory test has been obtained. i. A temperature survey shall be run in the producing string prior to perforating if returns were lost Louisiana Administrative Code September 1999 72 Title 43, Part XIX during cementing or unusual circumstances were noted during the primary cementing operation to assure all interested parties that the cement has been displaced a sufficient height outside the producing casing. j. If a kill string is recommended by the district manager for the prevention of underground waste and the operator does not concur, such requirement pertaining to the installation of a kill string shall be resolved by the conservation commissioner and his staff after due consideration and review. The conservation commissioner and his staff shall also determine the minimum setting depth, size, and quality of the kill string, if required. k. No permit to make a tubingless completion in a corrosive or extreme pressure (gradient in excess of .5 psi per foot of depth or surface tubing pressure in excess of 4,500 psig) field shall be granted unless preventive measures for the corrosion or extreme pressure problems have been resolved and approved by the district manager. E. This Order shall be cumulative of and in addition to all Statewide Orders, rules and regulations affecting the drilling and production of gas and/or liquid hydrocarbons heretofore promulgated, and when anything in this Order is in conflict therewith, then the provisions of this Order shall govern. In case of conflict between this Order and any special orders issued on specific fields, said special orders on specific fields shall govern. AUTHORITY NOTE: Promulgated in accordance with R.S.30:4 et seq. HISTORICAL NOTE: Adopted by the Department of Conservation March 1, 1961, amended May 1, 1963, amended and promulgated by the Department of Natural Resources, Office of Conservation, LR 19:777 (June 1993). 73 Louisiana Administrative Code September 1999 ALASKA OIL AND GAS CONSERVATION COHHISSION FRANK H. MURKOWSKI, GOVERNOR 333 W. 7TM AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Jim Mosley Unocal Alaska Union Oil Company of Califomia P.O. Box 196247 Anchorage, AK 99519-6247 December 20, 2002 Re: Application for Conservation Order allowing tubingless and packerless well completions in the Swanson River Field Dear Mr. Mosley: By letter dated August 7, 2002, unocal Alaska, as operator of the Swanson River Field, requested authorization to complete newly drilled wells without a tubing and packer as required by 20 AAC 25.200(d). On September 16, 2002, the Alaska Oil and Gas Conser- vation Commission ("Commission") requested additional information from Unocal' Alaska in support of the application. Unocal did not appear at the hearing on September 19, 2002, and never responded to the Commission's request for additional information. Based on the absence of information before the Commission, Unocal's August 7, 2002 request is denied, If Unocal chooses to renew this request in the future, please provide the additional information requested by the Commission's September 16, 2002 letter. Sincerely, , Cammy Oechsli Taylor Chair #6 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501 PUBLIC HEARING In Re: ) ) Unocal's application for an order ) allowing completion of newly drilled ) wells without a tubing and packer for ) those wells in the Swanson River Field. ) ) RECEIVED Alaska O~l & G~s Co~$, C~~ Ar~ora:je TRANSCRIPT OF PROCEEDINGS Anchorage, Alaska September 19, 2002 9:05 o'clock a.m. COMMISSIONERS: MS. CAMMY O. TAYLOR, CHAIR MR. DANIEL T. SEAMOUNT METRO COURT REPORTING,INC. 745 West 4th Avenue, Suite 425 Anchorage, Alaska 995021 (907) 276-3876 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 P R O C E E D I N G S (On record) COMMISSIONER TAYLOR: Today is Thursday, September 19th, 2002. The time is approximately 9:05. We're at the offices of the Alaska Oil and Gas Conservation Commission, at 333 West Seventh Avenue. The subject of today's hearing is Unocal's application for an order allowing completion of newly drilled wells without a tubing and packer for those wells in the Swanson River Field. My name is Cammy Taylor, and to my right is Commissioner Dan Seamount. From Metro Court Reporting is Desiree Disotell. Did I pronounce that correctly? COURT REPORTER: That's correct. COMMISSIONER TAYLOR: These proceedings are being recorded and transcribed. And if anybody in the audience would like a copy of the transcript, they can make that request directly of Metro Court Reporting. However, since I'm looking out at the audience, neither the applicant or any other parties outside of the Oil and Gas Conservation Commission are present. There is an e-mail in the record provided to us by Jim Rigg (ph), who contacted the applicant, Jim Mosley, with some additional written questions for this hearing. And when he contacted him he was advised that Mr. Mosley would be on vacation. Unocal has not sent anybody else in his place, and Jim Rigg reflects that they need some additional time to respond to these questions. METRO COURT REPORTING, INC. 745 West 4th Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 So, my recommendation is that we leave the record open for 30 days to allow Unocal to respond to these questions, and then we can issue a written decision if all the answers are provided in writing by Unocal. Do you have any preference or concerns about doing that, leaving it open for 30 days? COMMISSIONER SEAMOUNT: Sounds fine with me. And I will hold any of my questions until I see Unocal's response in the next few weeks. COMMISSIONER TAYLOR: With that, we'll leave the record open for Unocal to respond to the written questions from the Commission for 30 days from today. And we'll close the hearing record -- close the hearing today. (Off record) END OF PROCEEDINGS METRO COURT REPORTING, INC. 745 West 4th Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 C E R T I F I C A T E UNITED STATES OF AMERICA ) ) SS. STATE OF ALASKA ) I, Cari Ann Ketterling, Notary Public in and for the State of Alaska, and Reporter for Metro Court Reporting, do hereby certify: That the foregoing Alaska Oil & Gas Conservation Commission Public Hearing was taken before Desiree Disotell on the 19th day of September 2002, commencing at the hour of 9:05 o'clock a.m., at the offices of the Alaska Oil & Gas Conservation Commission, 333 West Seventh Avenue, Suite 100, Anchorage, Alaska; That the meeting was transcribed by me to the best of my knowledge and ability. IN WITNESS WHEREOF, I have hereto set my hand and affixed my seal this 3rd day of October, 2002. Cari Ann Kette ~s///ka Notary Public in and for .My commission expires: 07/19/04 METRO COURT REPORTING, INC. 745 West 4th Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 #5 Unocal Alaska Union Oil Company of California P.O. Box 196247 Anchorage, AK 99519-6247 Telephone (907) 276-7600 UNOCAL ) " Alaska James R. Harrison Drilling Manager September 25, 2002 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, Alaska 99501 Attn: Commissioner CammyTaylor Re: Swanson River and Soldotna River Unit Tubingless Packer Waiver Hearing Commissioner Taylor: Union Oil Company of California, dba Unocal would like to thank the AOGCC for its cooperation in the review of tubingless and packerless completions for the Swanson River Field and apologize for any miscommunications on our part. Jim Mosley, the Unocal drilling engineer assigned to this project and Jim Harrison the Unocal Drilling Manager are currently out of the country and scheduled to return the first week of October. Upon their return Unocal will address the request for additional information made by Jim Rigg and if necessary reschedule the Public hearing that was originally scheduled for September 19, 2002, If there are any questions, please contact Leo Phelps at 263-7948. We appreciate your help and consideration on this matter (...-" Jim Harris6n Drilling Manager Cc: Jim Harrison Jim Mosley SEP #4 STATE OF ALASKA OIL AND GAS CONSERVATION COMMISSION SWANSON RIVER UNIT AND SOLDOTNA CREEK UNIT TUBINGLESS COMPLETIONS September 19, 2002 at 9:00 am NAME - AFFILIATION (PLEASE~~~PRI~ ADDRESS/PHONE NUMBER TESTIFY (Yes or No) #3 Unocal Request for CO - Tubingless Completions at Swanson River Field Subject: Unocal Rvque4t for CO - Tubingless Completions at swanson River Field Date: M0n, 16 Sep/2fl02 13:06:47-0800 From: Jin~,~mLregg~admin. state.ak.us~ Organization: AOGCE- To: Cammy Taylor <cammy_taylor~admin. state.ak.us>, Dan Seamount <dan_seamount~admin. state.ak.us>, Tom Maunder <tom_maunder~admin. state.ak.us> CC: Winton G Aubert <winton_aubert~admin. state.ak.us> I spoke with Jim Mosely (Unocal) today in regards to their request. Recall from our meeting last week that we had identified additional information needed by the Commission. I sent the attached letter to Mr. Mosely via email today; we briefly discussed the info request. Mr. Mosely indicated that he would be out of town for the next 2 weeks and would prefer to wait until he returns to provide a complete response to our questions. Here's the brief response he gave: 1. Oil or Gas wells? Unocal purposely did not specify since they are hoping for both; immediate interest is gas (and they would limit their focus there as a starting point); also indicated that for Swanson River Field, oil wells would require artificial lift that would likely render oil well tubingless completions impractical 2. Design life - short (whatever that means) 3. Alternate means of assuring long term casing integity (since do not have an annular space for monitoring) - he referred to surface casing as barrier; I tried to focus him toward the lower section of the well where there is a single barrier to the formation; sounds like he is thinking the cement is a barrier (I mentioned the requirements to confine fluids to the wellbore and to prevent fluid migration from one stratum to the next); no comment on testing, etc. 4. Historical evidence of long term integrity in existing wells - said there may be a few wells with annular communication but in general fluids are no problems; fluids are noncorrosive 5. Expected pressures - said they are low since shallow objectives (again, whatever low means). We will need to wait for a formal response to our questions; that will be 2-3 weeks. Do we postpone the hearing tentatively set for Thursday, 9/197 Jim Regg ~tbgless_swanson_co info reqst.doc Name: tbgless_swanson co info_reqst.doc Type: WINWORD File (application/msword) Encoding: base64 Jim Regg <jim_regg~admin.state.ak.us> Petroleum Engineer AOGCC Administration 1 of 2 9/19/2002 8:15 AM Mr. Jim Mosely Unocal Corporation P.O. Box 196247 Anchorage, AK 99501 Dear Mr. Mosely: Your letter dated August 7, 2002, requests the issuance of a Conservation Order for the Swanson River and Soldotna Creek Units (collectively, the Swanson River Field) addressing tubingless completions. A waiver of 20 AAC 25.200(d) would be the basis to be addressed in a CO as requested. The AOGCC continues to review your request, and a hearing has tentatively been scheduled for September 19, 2002, to provide the public with the opportunity to comment regarding your request. A decision whether to hold the hearing has not been made. The following additional information is necessary for our review: 1. Is the request directed at both oil and gas, or just gas wells? 2. What is the expected design life of Swanson River Field wells that would be tubingless completions? 3. Alternate means of assuring barrier integrity throughout the life of the well are necessary for tubingless completions. What tests would be performed by Unocal to confirm there is pressure integrity subsequent to commencing operation? (Our understanding is that there would be a single barrier between the production flow path and the earth below any surface casing). What would be the testing frequency? 4. Provide historical evidence of long-term tubing and casing integrity in existing Swanson River Field wells. That information should conclusively determine that tubingless completions in the Swanson River Field can be designed and operated at an equivalent leVel of safety and protection to the enviroment as a well designed in accordance with , 20 AAC 25.200. Information could include workover history, any annular : communication that exists in Swanson River Field wells; we recognize from your August 7 .le~er that there is "very little or no H2S or CO2 so the risk of internal corrosion will be low." Differences attributable to the well producing oil or gas should be identified. 5. Production pressures for the wells expected to be tubingless completions. Your earliest response would be appreciated. #2 STATE OF ALASKA ! NOTICE TO PUBLISHER N~ ADVERTISING ORDER NO. ADVERTISING ,Nvo, ~ ,.~UST BE ,, TR,PL,0ATE S.OW,.G ^DVERT,S,.G ORDER .. ~RT,F,EDan n~nn 4009 ORDER ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE SEE BOTTOMFORI;IN~OICE ~DRESSl;',, , ..... F AC)C~C AGENCY CONTACT DATE OF A.O. R 333 W 7thAve, Ste 100 Jod¥Colombie August 16,2002 o Anchorage, AK 99501 ~.O~E ~CN ~ - (907~ 793 --1221 I~ATE~ ADVERTISEMENT REQUIRED: T Anchorage Daily News August 17, 2002 o P O Box 149001 TIlE MATERIAL BETWEEN TItE DOUBLE LINES MUST BE PRINTED IN ITS Anchorage, AK 99514 EN~'I~n' O~*UE D^~ES SUOWm. SPECIAL INSTRUCTIONS: Account #STOF0330 Advertisement to be published was e-mailed Type of Advertisement X Legal E] Display E] Classified E~Other (Specify) SEE ATTACHED PUBLIC HEARING i.. I It°Tal°F I ALL I SEND INVOICE__IN TRIPLICATE AOGCC, 333 W. 7th Ave., Suite 100 PAGE 1 Of PAGES$' ' ' ' ".". IU' Anchorage~ AK 99501 2PAGES REF TYPE NUMBER AMOUNT DATE COMMENTS I VEN 2 ARD 02910 3 4 FIN AMOUNT SY CC PGM LC ACCT FY NMR DIST LIQ ~ 03 02140100 73540 2 3 02-902 (Rev. 3/94) Publisher/Original Copies: Department Fiscal, Department, Receiving AO.FRM Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re~ Swanson River Field and Soldotna Creek Unit Unocal Corporation Unocal Corporation by letter dated August 7, 2002, has requested authorization to allow completion of newly drilled gas wells without a tubing and packer as required under 20 AAC 25.200(d) for the Swanson Rover Field which includes the Swanson River Unit and Soldotna Creek Unit. The Commission has tentatively set a public hearing on this application for September 19, 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 September 3, 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 a 1 e a th the Alask Oi and Gas Cons rv tion Commission at 333 West 7' Avenue, Suite 100, Anchorage, Alaska 99501. Written comments must be received no later than 4:30 pm on September 17, 2002 except that if the Commission decides to hold a public hearing, written comments must be received no later than 9:00 am on September 19, 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 September 12, 2002. Cammy O'~chsli Taylor ~ Chair Published Date: August 17, 2002 ADN AO# 02314009 Anchorage Daily News Affidavit of Publication 1001 Noxthway Drive, Anchorage, AK 99508 $/19/2oo2 AD # DATE PO ACCOUNT 532651 08/17/2002 02314009 STOF0330 PRICE OTHER OTHER PER DAY CHARGES CHARGES $131.52 $131.52 $0.00 $0.00 OTHER CHARGES #3 OTHER CHARGES#4 OTHER CHARGES GRAND TOTA~ $0.00 $0.00 $0.00 $131.52 STATE OF ALASKA THIRD JUDICIAL DISTRICT Lorene Solivan, 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 said time was printed in an office maintained at the aforesaid place of publication of said newspaper. That the annexed is a copy of an advertisement as it was published in regular issues (and not in supplemental form) of said newspaper on 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 foregoingpublication is not in excess of the rate charged private individuals. Signed ~ Subscribed and sworn to me before this date: Notary Public in and for the State of Alaska. Third Division. Anchorage, Alaska MY COMMIS EXPIRES: ,,,,,6~t t {./t_ttq'rr. --- Notice of Public Hearing STATE OF ALASKA ' Alaska Oil and Gas ConServation COmmission Re: Swanson River Fieid"and Soldotna. Creek Unit Unocal Corporation ' Unocal corporation by letter dated August 7, 2002, has requested out, horizOtion to allow completion of newly drilled gas wells, without a tubi,ng and packet'as.required under 20 AAC 251200(d) for the Swanson Rover Field which includes the Swanson River Unit and Soldotna creek Unlt,~ The Commission has tentatively set a public hear- ing On this 'appli'ca,tion for.~.,Sentember 19,: 20.02 at 9 00 am at the. Alaska O' and'Gas Conservation ,Commission at 333 West 7th .Avenu'e; Suite 100, An- . chorage, Ala.'.kt. ;~.'.':'. /. r'e-~:.r' "~c;-.-'r3:lue~t that the tentati.ve,,' .~c,": :'.J :.'.: n:,:':- r.:' c.." re d:by~fJ'!ing a' written re~: :.' ..'..; .. '", ",c ','::,.r't' ~;:',:-'.,'. no later than'4:3.0.pm :i:' ~::: :..'"',:::- ':' I:f a. rec~ue'st;f~r a hearing.is not ~imelY"filed, the' commission will consider the JssucJrlce of an order Without'a,..h'earing.. To learn' if the' ~emmiss.lOn will h01d the publia,hearing; please call 793~'.122i.' '.. In''addition, a Per. s°n ma~ subm'It'W~itten.corm': 'ments regarding.this/aPplicatiOn .to t'be Ala'ska Oil . and Gas Conservation .Commisslon. at;333 .West ..7th Avenue, Suite 100, AnChorage,.Alaska 99501.. Writ- ten comments must be received no later than 4':~30 pm On September 17,'.2002 except that'.if the Cor- m ss 'On decides to had a public, hearing, written comments must be.received no later than 9:0O .am on September 19,2002. ...'...' ' If you a?e a person with a 'di~abi'litv'who may need a'sPeCjal modification Jn order to oomment or:to attend the,public hearing, Please. contact .Jody Co- Iombie~at 7934221 before September 12,.2002'.' '.. cammy Oechsli Taylor . ' . ' 'Chair. Publish: AuguSt' 17, 2002 . AO# 02314009 STATE OF ALASKA (r NOTICE TO PUBLISHER ( ^[~V[mTlSl~C DRIVER ~O. ADVERTISING ~NVOIC¥ MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDERN~., ,.,ERTIFIED AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF AO'0231 4009 ORDER ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE :.~ SEE BOTTOM F, OR IN~()ICE :,~DRE~SS. ' ~ i~ i':,~ ~, ~. ~ ~"; i ~, i,. ¥ ~::'.~" ! ~q~ ~ !:?-~i~?~:i?!~:,' !¢,' !:~ ~:" ? ? i'i:!~, ~ .~ :' i'~ F AOGCC AGENCY CONTACT DATE OF A.O. R 333 West 7th Avenue, Suite 100 Jodv Colombie Auto, st 1(5_ 2002 o Anchorage, AK 99501 PHOI~E PCI~ ' M - (907~ 793 - 1221 6ATE~ ADW. RT]SEMENT m~OUI~D: T Anchorage Daily News August 17, 2002 o P O Box 149001 Anchorage, AK 99514 . TUE ~TEmA,. SE~VEEN T.E DOUS,.E ~.I~ES M~ST ~ ~m~TED l~ ITS ENTIRETY ON THE DATES SHOWN. I 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 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 St., Ste 1110 Dallas, TX 75201-6801 Mary Jones XTO Energy, Inc. Cartography 810 Houston St., 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 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 Scott Webb Ocean Energy Resources, Inc. 1670 Broadway, Ste 2800 Denver, CO 80202-4826 Jerry Hodgden Hodgden Oil Company 408 18th St. Golden, CO 80401-2433 John Levorsen 200 North 3rd St., #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 Duane Vaagen Fairweather 715 L St., Ste 7 Anchorage, AK 99501 Julie Houle State of Alaskan DNR Div of Oil & Gas, Resource Eval. 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 Steve E. Mulder Dorsey & Whitney 1031 West 4th Ave., Ste 600 Anchorage, AK 99501 Richard Mount State of Alaska Department of Revenue 500 West 7th Ave., Ste 500 Anchorage, AK 99501 Cammy Taylor 1333 West 11th Ave. Anchorage, AK 99501 Robert Mintz State of Alaska Department of Law 1031 West 4th Ave., Ste 200 Anchorage, AK 99501 Susan Hill State of Alaska, ADEC EH 555 Cordova St. Anchorage, AK 99501 Ed Jones Aurora Gas, LLC Vice President 1029 West 3rd Ave., Ste 220 Anchorage, AK 99501 Tim Ryherd State of Alaska Department of Natural Resources 550 West 7th Ave., Ste 800 Anchorage, AK 99501 Jim Arlington Forest Oil 310 K St., Ste 700 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 Mark Dalton HDR Alaska 2525 C St., Ste 305 Anchorage, AK 99503 Schlumberger Drilling and Measurements 3940 Arctic Blvd., Ste 300 Anchorage, AK 99503 John Harris NI Energy Development Tubular 3301 C St., Ste 208 Anchorage, AK 99503 Ciri Land Department PO Box 93330 Anchorage, AK 99503 Mark Hanley Anadarko 3201 C St, Ste 603 Anchorage, AK 99503 Baker Oil Tools 4730 Business Park Blvd., ~44 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 Jeff Walker US Minerals Management Service Regional Supervisor 949 East 36th Ave., Ste 308 Anchorage, AK 99508 Jill Schneider US Geological Survey 4200 University Dr. Anchorage, AK 99508 Rose Ragsdale Rose Ragsdale & Associates 3320 E. 41st Ave Anchorage, AK 99508 Jim Scherr US Minerals Management Service Resource Evaluation 949 East 36th Ave., Ste 308 Anchorage, AK 99508 Thomas R. Marshall, Jr. 1569 Birchwood Street Anchorage, AK 99508 Chuck O'Donnell Veco Alaska,Inc. 949 East 36th Ave., Ste 500 Anchorage, AK 99508 Richard Prentki US Minerals Management Service 949 East 36th Ave., 3rd Floor Anchorage, AK 99508 Paul L. Craig Trading Bay Energy Corp 5432 East Northern Lights, Ste 610 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 Jeanne Dickey BP Exploration (Alaska), Inc. Legal Department PO Box 196612 Anchorage, AK 99518 David Cusato 600 West 76th Ave., #508 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),lnc. 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 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 James Gibbs PO Box 1597 Soldotna, AK 99669 Penny Vadla Box 467 Ninilchik, 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 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 North Slope Borough PO Box 69 Barrow, AK 99723 Bernie Karl K&K Recycling Inc. PO Box 58055 Fairbanks, AK 99711 Senator Loren Leman State Capitol Rm 113 Juneau, AK 99801-1182 Williams Thomas Arctic Slope Regional Corporation Land Department PO Box 129 Barrow, AK 99723 #1 Unocal Corporation P.O. Box 196247 Anchorage, AK 99501 Telephone (907) 263-7805 UNOCAL ' Alaska August 7, 2002 Commissioner Cammy Taylor Alaska Oil and Gas Conservation Commission 333 W. 7th Ave., Suite 100 Anchorage, AK 99501-3539 RE: Swanson River Unit Conservation Order Application Tubingless Completions Dear Commissioner Taylor: As operator of the Swanson River Field, Unocal respectfully requests the Alaska Oil and Gas Commission to issue a Conservation Order for the Swanson River Field, to include Swanson river Unit (SRU) and Soldotna Creek Unit (SCU), allowing completion of newly drilled wells without a tubing and packer as required under 20 AAC 25.200(d). The reason for this request is to provide a wider array of options for developing reserves within the Swanson River Field. A waiver to the tubing and packer requirement will allow Unocal to use, where appropriate, slim hole drilling techniques and small diameter casings. The slim hole drilling and completion technique significantly lowers well costs, thereby allowing Unocal to increase ultimate recovery by drilling and producing reserves that would not be economical to develop with conventional drilling and completion practices. Based upon prior drilling in the area, targeted reserves would have very little or no H2S or CO2, so the risk of internal corrosion will be Iow. To maintain producibility and mechanical integrity of the new tubingless Wells, Unocal proposes to bring the cement top to the surface as was done on the recent SRU 213-10 well. For wells that do not succeed in having cement return to the surface, Unocal will run a CBL log to demonstrate the cement top is sufficiently inside the surface casing. Unocal proposes to include an "X" nipple in each of the tubingless completions placed above the highest potential perforation interval. The "X" nipple will be used to set a plug so that Unocal can demonstrate mechanical integrity via negative pressure testing on an annual basis. Unocal will monitor annulus pressure daily on wells that do not have cement circulated to the surface and will report results to the Commission annually or as requested. If any pressure readings indicate a failure of mechanical integrity, Unocal will implement corrective action to the satisfaction of the Commission. August7,2002 Swanson River Unit-Conse~ation Order Application Page 2 Anticipated well construction plans would be similar to the recently completed SRU 213- 10 well, as follows: The SRU 213-10 well set 133/8 inch conductor casing driven to about 80 feet, 7 inch L-80 surface casing was run to about 1800 feet TVD and cemented to surface, and a 3¼ inch L-80 production casing was run to TD and cemented to the surface. The 3~ inch production casing was cemented with a lead and a tail cement job consisting of a Iow weight lead slurry and a conventional tail slurry designed to prevent migration of fluids. The 7 inch surface casing was set below the maximum depth of fresh water and just above the targeted hydrocarbon bearing shallow production zones. Future tubingless wells will be designed similarly with surface casing set below the required minimum depth, and production casing set and cemented with the planned top of cement high enough in the surface casing so as to effect a seal in the production casing by surface casing annulus. If you have any questions concerning this request, please contact me at 263-7679. Cc: Jim Harrison John Zager File Sincerely Jim Mosley Sr. Adv. Drilling Engineer