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Home My WebLink AboutCO 432• Index Conservation Order 432 Kuparuk 1.) Mayl 1, 1998 Letter from ARCO, Alaska Inc. requesting to change the number of the bottom hole pressure surveys 2.) May 23, 1998 Notice of Public Hearing, Affidavit of Publication Conservation Order 432 ORIGINAL STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 3001 Porcupine Drive Anchorage, Alaska 99501 THE APPLICATION OF ARCO Alaska, Inc. to change Rules 8 and 9 of Conservation Order 173 regarding pressure and production profile surveys. IT APPEARING THAT: ) Conservation Order No. 432 ) Kuparuk River Field ) Kuparuk River Unit ) Kuparuk River Oil Pool July 22, 1998 1. By letter dated May 11, 1998, ARCO Alaska, Inc. ("AAI") requested changes to the requirements of Rules 8 and 9, Conservation Order 173. AAI requested Rule 8(b) be changed to eliminate a specified number of pressure survey, Rule 8(d) be changed to require pressure survey reports annually rather than quarterly, and Rule 9(c) be changed to require productivity survey reports annually rather than quarterly. 2. The Co~mnission requested clarification of the application on May 21, 1998. 3. The Commission published notice of opportunity for public hearing in the Anchorage Daily News on May 23, 1998. 4. AAI clarified and corrected their original request with a letter dated May 28, 1998. 5. Thc Commission received no protest or request for public hearing. FINDINGS: 1. Various conservation orders and administrative approvals have modified Conservation Order173. 2. Rule 8 of Conservation Order 173 was repealed and reenacted by Conservation Order 230 on May 6, 1987. 3. Conservation Order 230 was amended by Conservation Order 276 on August 6, 1991.. 4. Rule 9 of Conservation Order 173 was amended by Conservation Order 276 on August 6, 1991, although the requirements of Rule 9(c), Conservation Order 173, have not been modified since the rule was adopted on May 6, 1981. 5. Development activity in the Kuparuk River oil pool is mature and data requirements have changed since initial development started in 1981. Conservation Order No. 432 July 22, 1998 Page 2 6. AAI is responsible for reservoir management, development planning and data gathering on behalf of the working interest owners of the Kuparuk River Unit. 7. Since 1978, AAI has conducted approximatelyl,865 pressure surveys in the Kuparuk River oil pool. 8. The number of productivity profile surveys will not change only the reporting frequency will be altered. CONCLUSIONS: 1. Data requirements are best determined by the technical needs of the owners, operators and regulatory bodies responsible for oil and gas development, appraisal and regulation. . A significant number of pressure surveys have been obtained in the Kuparuk River oil pool so that pressure response in the pool is better understood today than when Rule 8(b) was established. Because of the maturity of the Kuparuk River oil pool and the large number of existing pressure surveys, Rule 8(b) can be changed to allow more operator discretion in selecting which wells need pressure surveys and where in the p°ol those data are required without compromising reservoir management. 4. A change to Rule 8(d) will affect only the reporting frequency of Kuparuk Pool pressure surveys from quarterly to annual reports; Commission oversight will not be compromised. 5. Rule 9(c) will change only the reporting frequency of Kuparuk Pool productivity profile surveys from quarterly to annually; Commission oversight will not be compromised. . Amending Rules 8(b), 8(d) and 9(c) to eliminate a specified number of pressure survey and to require pressure and productivity survey reports annually rather than quarterly will not cause waste, jeopardize correlative rights or harm ultimate recovery of hydrocarbon resources. . Consolidating the rules and amendments affecting CO 173 into a new order will eliminate confusion concerning which rules are in effect and lead to more efficient management of the reservoir. A new order consolidating the requirements of Conservation Order 173 and its subsequent modifications will not cause waste, jeopardize correlative rights or harm ultimate recovery of hydrocarbon resources. NOW THEREFORE, IT IS ORDERED the requirements of Conservation Order 173 as modified by Conservation Orders 190, 198, 230, 262, 276 and 348 and related administrative approvals are hereby consolidated and reissued under this order. The findings, conclusions and administrative record for Conservation Orders 173, 190, 198, 230, 262, 276 and 348 are adopted by reference and incorporated in this decision. These rules apply to the area as described in Conservation Order 349, issued December 1.6, 1994. Conservation Order No. 432 July 22, 1998 Page 3 Rule 1. Name of Field (Reft CO 173) The name of the field shall be the Kuparuk River Field. (Source CO 173) Rule 2. Definition of Pool (Reft CO 173) The name of the Pool in the Kuparuk River Field shall be the Kuparuk River oil pool and is defined as the accumulation of oil that is common to and correlates with the accumulation found in the Atlantic Richfield Company West Sak River State No. 1 well between the depths of 6,474 and 6,880 feet. (Source CO 173) Rule 3. Well Spacing (Ref. CO 173, 182, & 198) Not more than one well may be drilled on any governmental quarter section or govenunental lot corresponding to it nor may any well be drilled on a governmental quarter section or governmental lot corresponding to it which contains less than 125 acres, nor may the Pool be opened in a well bore that is closer than 500 feet to any property line nor closer than 1,000 feet to the pool opened to the well bore in another well except that: (Source CO 173) 1,) in the area described in Conservation Order No. 198B, except for those governmental quarter sections adjacent to the Kuparuk River Unit boundary, four wells may be drilled per governmental quarter section (Source CO 198), and 2) in Sections 5, 6, 7, 8, 15, 16, 21, and 22, TI 1N, R10E, U.M., an unrestricted number of wells may be drilled. (Source CO 182) Rule 4. Casing mad Cementing Requirements (Reft CO 1.73 & 190) (a) Casing mad cementing requirements are as specified in 20 AAC 25.030, CASING AND CEMENTING, except as modified below. (Source CO 173) (b) For proper anchorage and to prevent an uncontrolled flow, a conductor casing shall be set at least 75 feet below the surface and sufficient cement shall be used to fill the annulus behind the pipe to the surface. (Source CO 173) (c) For proper anchorage, to prevent an uncontrolled flow, and to protect the well from the effects of permafrost thaw-subsidence and freeze back, a string of surface casing shall be set at least 500 measured feet below the base of the permafrost section but not below 2700 feet true vertical depth. Sufficient cement shall be used to fill the annulus behind the casing to the surface. (Source CO 173) 1) Drill Pad 2Z Kuparuk River oil pool wells may be drilled to a maximum depth of 3250 feet true vertical depth before surface casing is set so long as drilling fluid densities are monitored and maintained at 10.0 pounds per gallon. (Source CO 190, modified by AA 190.01 - 190.15) Conservation Order No. 432 July 22, 1998 Page 4 2) Drill Pad 2X and 2C Kuparuk River oil pool wells may be drilled to a maximum depth of 2975 feet true vertical depth before surface casing is set. (Source CO 190, modified by AA 190.01 - 190.15) 3) In the event that geologic conditions are not as anticipated, the Conunission may change the maximum depth for setting surface casing by administrative action, provided a request, in writing, is timely submitted. (Source CO 190) (d) The surface casing, including connections, shall have minimum post-yield strain properties of 0.9% in tension and 1.26% in compression. (Source CO 173) 1) The only types and grades of casing, with threaded connections, that have been shown to meet the requirements in (d) above and have been approved for use as surface casing are the following: (A) 13 3/8 inch, 72 pounds/foot, L-80, Buttress; (B) 13-3/8 inch, 72 pounds/foot, N-80, Buttress; (C) 10-3/4 inch, 45.5 pounds/foot, K-55, Buttress; 2) The Commission may approve other types and grades of surface casing upon a showing that the proposed casing and connection can meet the post-yield strain requirements in (d) above. This evidence shall consist of one of the following: (A) full scale tensile and compressive tests; (B) finite element model studies; or, (C) other types of axial strain data acceptable to the Commission. (e) Other means for maintaining the integrity of the well from the effects of permafrost thaw- subsidence and freeze back may be approved by the Commission upon application. (Source CO 173) (f) The Commission may approve alternative completion methods (to 20 AAC 25.030(b)(4) and (5)) upon application and presentation of data that shows the alternatives are based on accepted engineering principles. Such alternative designs may include: (Source CO 173) 1) slotted liners, wire wrapped screen liners, or combinations thereof, landed inside of open hole and may be gravel packed; 2) open hole completions provided that the casing is set not more than 200 feet above the productive zone. Rule 5. Automatic Shut-In Equipment (Ref. CO 173 & 348) (a) Each well shall be equipped with a Commission approved fail-safe automatic surface safety valve system (SVS) capable of preventing uncontrolled flow by shutting off flow at the wellhead and shutting down any artificial lif~ system where an over pressure of equipment may occur. (Source CO 348) Conservation Order No. 432 July 22, 1998 Page 5 (b) The safety valve system (SVS) shall not be deactivated except during repairs, while engaged in active well work, or if the pad is manned. If the SVS cannot be returned to service within 24 hours, the well must be shut in at the well head and at the manifold building. (Source CO 348) 1) Wells with a deactivated SVS shall be identified by a sign on the wellhead stating that the SVS has been deactivated and the date it was deactivated. (Source CO 348) 2) A list of wells with the SVS deactivated, the dates and reasons for deactivating, and the estimated re-activation dates must be maintained current and available for Commission inspection on request. (Source CO 348) (c) A representative of the Commission will witness operation and performance tests at intervals and times as prescribed by the Commission to confirm that the SVS is in proper working condition. (Source CO 348) Rule 6. Safety Flares (Ref. CO 173) Repealed by 20 AAC 25.235. Rule 7. Gas-Oil Ratio Tests (Ref. CO 173 & 262) Repealed by Conservation Order 262, dated October 23 1990. Rule 8. Pressure Surveys (Ref. CO 173, 230, 276 & 432) (a) A bottom-hole pressure survey shall be taken on each well prior to initial sustained production. (Source CO 230) (b) The operator shall obtain pressure surveys as needed to effectively manage hydrocarbon recovery processes subject to an annual plan outlined in (d) of this rule. (Source CO 432) (c) Bottom-hole pressures obtained by a static buildup pressure survey, a 24 hour shut-in instantaneous test, a multiple flow rate test or an injection fall-off test will be acceptable. Calculation of bottom-hole pressures from surface data will be permitted for water injection wells. (Source CO 230) (d) Data from the surveys required in this rule shall be filed with the Commission by April 1 of the subsequent year in which the surveys are conducted. Along with the survey submittal, the operator will provide a proposed survey plan for the upcoming year. Reservoir Pressure Report, Form 10-412, shall be utilized for all surveys with attachments for complete additional data. Data submitted shall include, but are not limited to, rate, pressure, time, depths, fluid gradient, temperature, and other well conditions necessary for complete analysis of each survey being conducted. The pool pressure datum plane shall be 6,200 feet subsea. (Source CO 230, 432) (e) Results and data from any special reservoir pressure monitoring techniques, tests, or surveys Conservation Order No. 432 July 22, 1998 Page 6 shall also be submitted as prescribed in (d) of this rule. (Source CO 230) (f) Upon application by the operator, the Commission in its discretion may administratively approve exceptions to this rule. (Source CO 230) Rule 9. Productivity Profiles (Ref. CO 173, 276 & 432) (a) During the first year of production, a production survey shall be run in each well that has multiple sand intervals open to the well bore. (Source CO 173) (b) Subsequent surveys shall be run in wells that exhibit uncharacteristic changes in performance. Subsequent surveys shall also be required in wells which have had remedial work performed to change the production profile unless the remedial work results in only one sand interval being open to thc well bore. (Source CO 173, 276) (c) All completed production surveys taken during a calendar year be filed with the Commission by April 1 of the subsequent year. The Commission may request data be provided in advance of an amaual submittal if required. (Source CO 173, 432) (d) By administrative order, the Commission shall specify additional surveys should it be determined that the surveys submitted under (a) and (b) are inadequate. (Source CO 1.73) DONE at Anchorage, Alaska and dated ~'~-l'~'~>~_~4 David 2hairman~ Camill60echsli, Commissioner AS 31.05.080 provides that within 20 days after receipt of written notice of the entry of an order, a person affected by it may file with the Commission an application for rehearing. A request for rehearing must be received by 4:30 PM on the 23rd day following the date of the order, or next working day ifa 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 rum from the date on which the request is deemed denied (i.e., 10th day after the application for rehearing was filed). ~~ Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: The application of ARCO Alaska, Inc., to change the requirements of Rules 8 (a- f) of Conservation Order 173 (Rule 8 (a}-(f) repealed and reenacted by Conservation Order 230, Rule 8(b) amended by Conservation Order 276); Rule 9 (c) of Conservation Order 173, and Rule 4 of Conservation Order 198. ARCO Alaska, Inc., by application received May 13, 1998, petitioned the AOGCC to change the number of bottom-hole pressure surveys and reduce reporting frequency of Rule 8 CO 173; change the frequency of reporting productivity surveys in Rule 9 (c) CO 173; and change the number of infectivity surveys and reporting frequency of Rule 4 CO 198. A person who may be harmed if the requested order is issued may file a written protest prior to 4:00 PM June 8, 1998, with the Alaska Oil and Gas Conservation Commission, 3001 Porcupine Drive, Anchorage, Alaska 99501, and request a hearing on the matter. If the protest is timely filed and raises a substantial and material issue crucial to the Commission's determination, a hearing on the matter will be held at the above address at 9:00 AM on June 23, 1998, in conformance with 20 AAC 25.540. If a hearing is to be held, interested parties may confirm this by calling the Commission's office, (907) 279-1433 after June 8, 1998. If no protest is filed, the Commission will consider the issuance of the order without a hearing. If you are a person with a disability who may need a special modification in order to comment or to attend the public hearing, please contact Diana Fleck at 279-1433 no later than June 17, 1998. Robert N. Christenson, P.E. Commissioner Published May 23, 1998 ADN AO 02814051 ~~9962 STOF0330 AO-02814051 $78.39 AFFIDAVIT OF PLIBLICAI"ION STATE OF ALASKA, THIRD JUDICIAL DISTRICT Eva P~Z. Kaufmann being first duly sworn on oath deposes and says that he/she is an advertising representative of the Anchorage Daily News, a daily newspaper. That said newspaper has been approved by the Third Judicial Court, Anchorage, Alaska, and it now and has been published in the English language continually as a daily newspaper in Anchorage, Alaska, and it is now and during all said time was printed in an office maintained at the aforesaid place of publication of said newspaper. That the annexed is a copy of an advertisement as it was published in regular issues (and not in supplemental farm) of said newspaper on P•Say 23 , 1998 and that such newspaper was regularly distributed to its subscribers during all of said period. That the full amount of the fee charged for the foregoing publication is not in excess of the rate charged private individuals. Subscribe~d~ajnd sworn t before me this°... ~ day of ... ........ 19~P 1 ......... ~. ..... k~-~ ..... Nota Public in and for / tfie State of Alaska. Thfrd DNision. Anchorage. Alaska MY COMMISSION EXPIRES Notice of Public Negriny aim on Consertrtr?)oa;Cermtrission " Re: the opplkotion of: ARCO AlasJca, 7nc.. to choose j the re4uiremenh of Rules 8. (a-f) of Conservation OrAer 773' (Rule .6 (o).Sll..ritpeofb one l of Con- ~' by oPP4i- Ti _T99$, m ~Cbottom- and quenCY of liGn9e Me w mod.. s..... ~r a~ • ~ 27... -'1 • ~ ~ • DRI / MCGRAW HILL PIRA ENERGY GROUP RANDALL NOTTINGHAM LIBRARY 24 HARTWELL 3 PARK AVENUE (34TH & PARK) LEXINGTON MA 02173 NEW YORK NY 10016 OVERSEAS SHIPHOLDING GRP ECON DEPT 1114 AV OF THE AMERICAS NEW YORK NY 10036 ALASKA OFC OF THE GOVERNOR JOHN KATZ STE 518 444 N CAPITOL NW WASHINGTON DC 20001 ARENT FOX KINTNER PLOTRIN KAHN LIBRARY WASHINGTON SQ BLDG 1050 CONNECTICUT AV NW WASHINGTON DC 20036-5339 LIBRARY OF CONGRESS STATE DOCUMENT SECTION EXCH & GIFT DIV 10 FIRST ST SE WASHINGTON DC 20540 NY PUBLIC LIBRARY DIV E GRAND CENTRAL STATION P O BOX 2221 NEW YORK NY 10163-2221 OIL DAILY CAMP WALSH 1401 NEW YORK AV NW STE 500 WASHINGTON DC 20005 US MIN MGMT SERV CHIEF OCS STATS & INFO 381 ELDEN ST MS 4022 HERNDON VA 20170-4817 U S DEPT OF ENERGY PHYLLIS MARTIN MS E2823 1000 INDEPENDENCE SW WASHINGTON DC 20585 TECHSYS CORP US GEOL SURV BRANDY KERNS LIBRARY PO BOX 8485 NATIONAL CTR MS 950 GATHERSBURG MD 20898 RESTON VA 22092 DPC SD DEPT OF ENV & NATRL RESOURCES DANIEL DONKEL OIL & GAS PROGRAM 1420 NORTH ATLANTIC AVE, STE 204 2050 W MAIN STE #1 DAYTON BEACH FL 32118 RAPID CITY SD 57702 AMOCO CORP 2002A ILLINOIS STATE GEOL SURV LIBRARY/INFO CTR LIBRARY P O BOX 87703 469 NATURAL RESOURCES BLDG CHICAGO IL 60680-0703 615 E PEABODY DR CHAMPAIGN IL 61820 LINDA HALL LIBRARY ALFRED JAMES III SERIALS DEPT 107 N MARKET STE 1000 5109 CHERRY ST WICHITA KS 67202-1811 KANSAS CITY MO 64110-2498 MURPHY E&P CO UNIV OF ARKANSAS ROBERT F SAWYER SERIALS DEPT P 0 BOX 61780 UNIV LIBRARIES NEW ORLEANS LA 70161 FAYETTEVILLE AR 72701 e e CROSS TIMBERS OPERATIONS DWIGHTS ENERGYDATA INC SUSAN LILLY JERLENE A BRIGHT DIRECTOR 210 PARK AVE STS 2350 PO BOX 26304 OKLAHOMA CITY OK 73102-5605 OKLAHOMA CITY OK 73126 IOGCC R E MCMILLEN CONSULT GEOL P O BOX 53127 202 E 16TH ST OKLAHOMA CITY OK 73152-3127 OWASSO OK 74055-4905 OIL & GAS JOURNAL CH2M HILL LAURA BELL J DANIEL ARTHUR PE PROJ MGR P O BOX 1260 502 S MAIN 4TH FLR TULSA OK 74101 TULSA OK 74103-4425 BAPI RAJU MARK S MALINOWSKY 335 PINYON LN 15973 VALLEY VW COPPELL TX 75019 FORNEY TX 75126-5852 US DEPT OF ENERGY DEGOLYER & MACNAUGHTON ENERGY INFORMATION ADMINISTRATION MIDCONTINENT DIVISION MIR YOUSUFUDDIN ONE ENERGY SQ, STE 400 1999 BRYAN STREET STE 1110 4925 GREENVILLE AVE DALLAS TX 75201-6801 DALLAS TX 75206-4083 ~ ~ MOBIL OIL CORP GAFFNEY, CLINE & ASSOC., INC. 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JIM ARLINGTON 310 K STREET STE 700 ANCHORAGE AK 99501 DUSTY RHODES 229 WHITNEY RD ANCHORAGE AK 99501 DEPT OF REVENUE OIL & GAS AUDIT DENISE HAWES 550 W 7TH AV STE 570 ANCHORAGE AK 99501 GUESS & RUDD GEORGE LYLE 510 L ST, STE 700 ANCHORAGE AK 99501 TRUSTEES FOR ALASKA 725 CHRISTENSEN DR STE 4 ANCHORAGE AK 99501 YUKON PACIFIC CORP JOHN HORN VICE CHM 1049 W 5TH AV ANCHORAGE AR 99501-1930 PRESTON GATES ELLIS LLP ALASKA DEPT OF LAW LIBRARY ROBERT E MINTZ ASST ATTY GEN 420 L ST STE 400 1031 W 4TH AV STE 200 ANCHORAGE AK 99501-1937 ANCHORAGE AK 99501-1994 GAFO DEPT OF NATURAL RESOURCES GREENPEACE DIV OF OIL & GAS PAMELA MILLER TIM RYHERD 125 CHRISTENSEN DR. #2 550 W 7TH AVE STE 800 ANCHORAGE AK 99501-2101 ANCHORAGE AK 99501-3510 DEPT OF REVENUE BAKER OIL TOOLS OIL & GAS AUDIT ALASKA AREA MGR FRANK PARR 4710 BUS PK BLVD STE 36 550 W 7TH AVE STE 570 ANCHORAGE AK 99503 ANCHORAGE AK 99501-3540 HDR ALASKA INC KOREAN CONSULATE MARK DALTON OCR JOO KIM CONSUL 2525 C ST STE 305 101 BENSON STE 304 ANCHORAGE AK 99503 ANCHORAGE AK 99503 N-I TUBULARS INC ANADARKO 3301 C STREET STE 209 MARK HANLEY ANCHORAGE AK 99503 3201 C STREET STE 603 ANCHORAGE AK 99503 • ALASKA OIL & GAS ASSOC JUDY BRADY 121 W FIREWEED LN STE 207 ANCHORAGE AK 99503-2035 AK JOURNAL OF COMMERCE OIL & INDUSTRY NEWS ROSE RAGSDALE 4220 B STREET STE #210 ANCHORAGE AK 99503-5911 DEPT OF NATURAL RESOURCES DIV OF OIL & GAS BRUCE WEBB 3601 C ST STE 1380 ANCHORAGE AK 99503-5948 DEPT OF NATURAL RESOURCES DIV OF OIL & GAS JULIE HOULE 3601 C ST STE 1380 ANCHORAGE AK 99503-5948 DEPT OF NATURAL RESOURCES PUBLIC INFORMATION CTR 3601 C STREET STE 200 ANCHORAGE AK 99503-5948 FINK ENVIRONMENTAL CONSULTING, INC THOMAS FINK, PHD 6359 COLGATE DR. ANCHORAGE AK 99504-3305 DEPT OF NATURAL RESOURCES DIV OIL & GAS WILLIAM VAN DYKE 3601 C ST STE 1380 ANCHORAGE AK 99503-5948 DEPT OF NATURAL RESOURCES DIV OF OIL & GAS JAMES B HAYNES NATURAL RESRCE MGR 3601 C ST STE 1380 ANCHORAGE AK 99503-5948 DEPT OF NATURAL RESOURCES DIV OF OIL & GAS JIM STOUFFER 3601 C STREET STE 1380 ANCHORAGE AK 99503-5948 ARLEN EHM GEOL CONSLTNT 2420 FOXHALL DR ANCHORAGE AK 99504-3342 JAMES E EASON RUSSELL DOUGLASS 8611 LEEPER CIRCLE 6750 TESHLAR DR ANCHORAGE AK 99504-4209 ANCHORAGE AK 99507 STU HIRSH US BUREAU OF LAND MNGMNT 9630 BASHER DR. ANCHORAGE DIST OFC ANCHORAGE AK 99507 DICK FOLAND 6881 ABBOTT LOOP RD ANCHORAGE AK 99507 US BLM AK DIST OFC THOMAS R MARSHALL JR RESOURCE EVAL GRP 1569 BIRCHWOOD ST ART BONET ANCHORAGE AK 99508 6881 ABBOTT LOOP RD ANCHORAGE AK 99507-2899 LASS ARIEY UNIVERSITY OF ALASKA ANCHORAGE 3108 WENTWORTH ST INST OF SOCIAL & ECON RESEARCH ANCHORAGE AK 99508 TERESA HULL 3211 PROVIDENCE DR ANCHORAGE AK 99508 TRADING BAY ENERGY CORP US MIN MGMT SERV PAUL CRAIG RICHARD PRENTKI 5432 NORTHERN LIGHTS BLVD 949 E 36TH AV ANCHORAGE AK 99508 ANCHORAGE AK 99508-4302 US MIN MGMT SERV AK OCS REGIONAL DIR 949 E 36TH AV RM 110 ANCHORAGE AK 99508-4302 REGIONAL SUPRVISOR, FIELD OPERATNS MINERALS MANAGEMENT SERVICE ALASKA OCS REGION 949 E 36TH AV STE 308 ANCHORAGE AK 99508-4363 US MIN MGMT SERV RESOURCE EVAL JIM SCHERR 949 E 36TH AV RM 603 ANCHORAGE AK 99508-4363 JOHN MILLER 3445 FORDHAM DR ANCHORAGE AK 99508-4555 CIRI LAND DEPT P O BOX 93330 ANCHORAGE AK 99509-3330 US MIN MGMT SERV RESOURCE STUDIES AK OCS REGN KIRK W SHERWOOD 949 E 36TH AV RM 603 ANCHORAGE AK 99508-4302 US MIN MGMT SERV LIBRARY 949 E 36TH AV RM 603 ANCHORAGE AK 99508-4363 US MIN MGMT SERV FRANK MILLER 949 E 36TH AV STE 603 ANCHORAGE AK 99508-4363 USGS - ALASKA SECTION LIBRARY 4200 UNIVERSITY DR ANCHORAGE AK 99508-4667 ANCHORAGE TIMES BERT TARRANT P O BOX 100040 ANCHORAGE AK 99510-0040 BRISTOL ENVIR SERVICES ARCO ALASKA INC JIM HUNTER JOANN GRUBER ATO 712 P O BOX 100320 P O BOX 100360 ANCHORAGE AK 99510-0320 ANCHORAGE AK 99510-0360 ARCO ALASKA INC ARCO ALASKA INC LEGAL DEPT STEVE BENZLER ATO 1404 MARK P WORCESTER P 0 BOX 100360 P O BOX 100360 ANCHORAGE AK 99510-0360 ANCHORAGE AK 99510-0360 ARCO ALASKA INC ARCO ALASKA INC LIBRARY MARK MAJOR ATO 1968 P O BOX 100360 P O BOX 100360 ANCHORAGE AK 99510-0360 ANCHORAGE AK 99510-0360 ARCO ALASKA INC ARCO ALASKA INC LAND DEPT SAM DENNIS ATO 1388 JAMES WINEGARNER P O BOX 100360 P O BOX 10036 ANCHORAGE AK 99510-0360 ANCHORAGE AK 99510-0360 ARCO ALASKA INC PETROLEUM INFO CORP SHELIA ANDREWS ATO 1130 KRISTEN NELSON PO BOX 100360 P O BOX 102278 ANCHORAGE AK 99510-0360 ~ ANCHORAGE AK 99510-2278 ~ ~ ARCO ALASKA INC ALYESKA PIPELINE SERV CO KUP CENTRAL WELLS ST TSTNG PERRY A MARKLEY WELL ENG TECH NSK 69 1835 S BRAGAW - MS 575 P O BOX 196105 ANCHORAGE AK 99512 ANCHORAGE AK 99510-6105 ALYESKA PIPELINE SERV CO ALYESKA PIPELINE SERV CO CHUCK O'DONNELL ~ LEGAL DEPT 1835 S BRAGAW - MS 530E 1835 S BRAGAW ANCHORAGE AK 99512 ANCHORAGE AK 99512-0099 US BUREAU OF LAND MGMT ANCHORAGE DAILY NEWS OIL & GAS OPRNS (984) EDITORIAL PG EDTR J A DYGAS MICHAEL CAREY 222 W 7TH AV #13 P O BOX 149001 ANCHORAGE AK 99513-7599 ANCHORAGE AK 99514 JWL ENGINEERING NORTHERN CONSULTING GROUP JEFF LIPSCOMB ROBERT BRITCH, P.E. 9921 MAIN TREE DR. 2454 TELEQUANA DR. ANCHORAGE AK 99516-6510 ANCHORAGE AK 99517 GERALD GANOPOLE CONSULT GEOL DAVID CUSATO 2536 ARLINGTON 600 W 76TH AV #508 ANCHORAGE AK 99517-1303 ANCHORAGE AK 99518 ~ ~ ASRC SCHLUMBERGER CONRAD BAGNE DARREN AKLESTAD 301 ARCTIC SLOPE AV STE 300 1111 E 80TH AV ANCHORAGE AK 99518 ANCHORAGE AK 99518 ARMAND SPIELMAN HALLIBURTON ENERGY SERV 651 HILANDER CIRCLE MARK WEDMAN ANCHORAGE AK 99518 6900 ARCTIC BLVD ANCHORAGE AK 99518-2146 OPSTAD & ASSOC JACK O HARKILA ERIK A OPSTAD PROF GEOL P O BOX 190083 P 0 BOX 190754 ANCHORAGE AK 99519-0083 ANCHORAGE AK 99519 ENSTAR NATURAL GAS CO MARATHON OIL CO RICHARD F BARNES PRES OPERATIONS SUPT P O BOX 190288 P O BOX 196168 ANCHORAGE AK 99519-0288 ANCHORAGE AK 99519-6168 MARATHON OIL CO UNOCAL, BRAD PENN P O BOX 196247 P O BOX 196168 ANCHORAGE AK 99519-6247 ANCHORAGE AK 99519-6168 UNOCAL KEVIN TABLER P 0 BOX 196247 ANCHORAGE AK 99519-6247 BP EXPLORATION (ALASKA) INC MR. DAMS, ESQ P O BOX 196612 MB 13-5 ANCHORAGE AK 99519-6612 BP EXPLORATION (ALASKA) INC INFO RESOURCE CTR MB 3-2 P O BOX 196612 ANCHORAGE AK 99519-6612 BP EXPLORATION (ALASKA) INC SUE MILLER P 0 BOX 196612 M/S LR2-3 ANCHORAGE AK 99519-6612 AMERICA/CANADIAN STRATIGRPH CO RON BROCKWAY P O BOX 242781 ANCHORAGE AK 99524-2781 • EXXON COMPANY USA MARK P EVANS PO BOX 196601 ANCHORAGE AK 99519-6601 BP EXPLORATION (ALASKA) INC BOB WILKS MB 5-3 P 0 BOX 196612 ANCHORAGE AK 99519-6612 BP EXPLORATION (ALASKA) INC PETE ZSELECZKY LAND MGR P 0 BOX 196612 ANCHORAGE AK 99519-6612 BP EXPLORATION (ALASKA), INC. MARK BERLINGER MB 8-1 PO BOX 196612 ANCHORAGE AK 99519-6612 AMSI/VALLEE CO INC WILLIAM O VALLEE PRES PO BOX 243086 ANCHORAGE AK 99524-3086 L G POST 0&G LAND MGMT CONSULT DIANA FLECK 10510 CONSTITUTION CIRCLE 18112 MEADOW CRK DR EAGLE RIVER AK 99577 EAGLE RIVER AK 99577 D A PLATT & ASSOC PINNACLE 9852 LITTLE DIOMEDE CIR STEVE TYLER EAGLE RIVER AK 99577 20231 REVERE CIRCLE EAGLE RIVER AK 99577 DEPT OF NATURAL RESOURCES COOK INLET VIGIL DGGS JAMES RODERICK JOHN REEDER P 0 BOX 916 P O BOX 772805 HOMER AK 99603 EAGLE RIVER AK 99577-2805 COOK INLET KEEPER RON DOLCHOK BOB SHAVELSON P O BOX 83 PO BOX 3269 KENAI AK 99611 HOMER AK 99603 DOCUMENT SERVICE CO PHILLIPS PETR JOHN PARKER ALASKA OPERATIONS MANAGER P O BOX 1137 J W KONST KENAI AK 99611 P O DRAWER 66 KENAI AK 99611 ~ ~ KENAI PENINSULA BOROUGH PENNY VADLA ECONOMIC DEVEL DISTR P O BOX 467 STAN STEADMAN NINILCHIK AK 99639 P O BOX 3029 KENAI AK 99611-3029 BELOWICH COAL CONSULTING JAMES GIBBS MICHAEL A BELOWICH P O BOX 1597 HC31 BOX 5157 SOLDOTNA AK 99669 WASILLA AK 99654 PACE KENAI NAIL WILDLIFE REFUGE SHEILA DICKSON REFUGE MGR P O BOX 2018 P O BOX 2139 SOLDOTNA AK 99669 SOLDOTNA AK 99669-2139 ALYESKA PIPELINE SERVICE CO VALDEZ PIONEER VALDEZ CORP AFFAIRS P O BOX 367 SANDY MCCLINTOCR VALDEZ AK 99686 P O BOX 300 MS/701 VALDEZ AK 99686 VALDEZ VANGUARD UNIV OF ALASKA FAIRBANKS EDITOR PETR DEVEL LAB P O BOX 98 DR V A KAMATH VALDEZ AK 99686-0098 427 DUCKERING FAIRBANKS AK 99701 • a NICK STEPOVICH RICK WAGNER 543 2ND AVE P 0 BOX 60868 FAIRBANKS AK 99701 FAIRBANKS AK 99706 JACK HAKKILA C BURGLIN P 0 BOX 61604 P O BOX 131 FAIRBANKS AK 99706-1604 FAIRBANKS AK 99707 FAIRBANKS DAILY NEWS-MINER FRED PRATT KATE RIPLEY P O BOX 72981 P O BOX 70710 FAIRBANKS AK 99707-2981 FAIRBANKS AK 99707 DEPT OF NATURAL RESOURCES K&K RECYCL INC DIV OF LAND P O BOX 58055 REG MGR NORTHERN REGION FAIRBANKS AK 99711 3700 AIRPORT WAY FAIRBANKS AK 99709-4699 ASRC RICHARD FINEBERG BILL THOMAS P O BOX 416 P 0 BOX 129 ESTER AK 99725 BARROW AR 99723 4 , • • UNIV OF ALASKA FBX UNIVERSITY OF ALASKA FBKS PETR DEVEL LAB PETR DEVEL LAB SHIRISH PATIL DR AKANNI LAWAL 437 DICKERING P 0 BOX 755880 FAIRBANKS AK 99775 FAIRBANKS AK 99775-5880 SENATOR LOREN LEMAN DEPT OF ENVIRON CONSERV SPAR STATE CAPITOL RM 113 CHRIS PACE JUNEAU AK 99801-1182 410 WILLOUGHBY AV STE 105 JUNEAU AK 99801-1795 SNEA(P) DISTR FRANCE/EUROPE TOUR ELF CEDEX 45 992078 PARIS LA DEFE DU SUD/AMERIQUE FRANCE ~1 ,~ ARCO Alaska. In~ Post Office box 100360 i anchorage Alaska 99510-0360 7eiephone 907 276 1215 May 11, 1998 Mr. Dave Johnston, Commissioner Alaska Oil and Gas Conservation Commission 3001 Porcupine Drive Anchorage, Alaska 99501 Mr. Johnston; e g ~ b ~M~ ~* ~~o., r a ~"• t .R ARCO Alaska, Inc., like others in industry, as well as governmental agencies, is aggressively looking for appropriate ways to streamline processes, and ensure our efforts are focused on the most leveraging activities. Therefore, we are proposing for your consideration, changes to certain reporting requirements of AOGCC Conservation Orders No. 198, and No. 173. We believe our track record demonstrates a commitment to prudent reservoir management. The following changes would save AAI unnecessary administrative and data gathering costs and still, in our view, provide meaningful data to the State of Alaska. 1. The proposed change to CO 198 Rule 4 "Infectivity Profiles" would eliminate the requirement for a specific number of injection surveys, and make the report submittal annual rather than quarterly: "An injection profile survey will be obtained on each well with A and C sand injection within the first nine months of sustained multiple zone injection. The Operator will obtain subsequent injection profile surveys when: a) the Operator's technical staff determines that additional surveillance is needed for efficient management of the ongoing hydrocarbon recovery processes or b) within nine months following any stimulation or squeeze shut-off that has been done to alter the injection profile. All completed injection surveys taken during a calendar year will be filed with the AOGCC by April 1~` of the subsequent year. Along with the survey submittal, the Operator will also provide a proposed survey plan, which is subject to change based on operating requirements, for the upcoming year. The Commission may request additional surveys as deemed necessary." 2. The proposed change to CO 173 Rule 8 (a through f) "Pressure Surveys" would eliminate the requirement for a specific number of pressure surveys, and make the report submittal annual rather than quarterly: "The Operator will obtain bottom-hole pressure surveys when the Operator's technical staff determines that surveillance is needed for efficient management of the ongoing hydrocarbon recovery processes. Data from such surveys shall be filed with the AOGCC by April 1~` of the subsequent year in which the surveys ARCO Alaska. Inc. is a Subsidiary of Atlantic Richfield Company D ~ p ~ ~ ~I ~ I E ~;i338-cu03-C ~~. ~ r~ ~~ are conducted. Along with the survey submittal, the Operator will also provide a proposed survey plan, which is subject to change based on operating requirements, for the upcoming year. The AOGCC may request additional pressure surveys as deemed necessary." 3. The proposed change to CO 173 Rule 9 paragraph (c) "Productivity Profiles" would change the report submittal requirement to annually: "All completed production surveys taken during a calendar year will be filed with the AOGCC by April 1st of the subsequent year. At any time the AOGCC may request a specific set of data to be provided in advance of the annual submittal" AAI as a prudent operator will gather and report the appropriate amount of production, injection, and pressure data to effectively manage the reservoir. Our hope is that reporting this information to the AOGCC on an annual basis will still effectively address the State of Alaska's needs. K. Dc~iajkowski Beluga/Kuparuk Manager ARCO Alaska, il~ Post Office Box 100360 Anchorage, Alaska 99510-0360 Ken Donajkowski Beluga Asset Manager NSK-45 659-7652 FAX: 659-7861 May 28, 1998 David W. Johnston Chairman Alaska Oil and Gas Conservation Commission 3001 Porcupine Drive Anchorage, AK 99501-3192 Per my correspondence with Jack Hartz of May 27, the following is submitted as a correction to my recent submittal requesting changes to Conservation Orders No. 198, and No. 173. In item number 2 of the submittal reference was made to CO 173 Rule 8 (a through f). The submittal should be corrected to read: The proposed change to CO 173 Rule 8 (b) "Pressure Surveys" would eliminate the requirement for a specific number of pressure surveys: The Operator will obtain bottom-hole pressure surveys when the Operator's technical staff determines that surveillance is needed for efficient management of the ongoing hydrocarbon recovery processes." The proposed change to CO 173 Rule 8 (d) would make the report submittal annual rather than quarterly. The first sentence of 8 (b) would be replaced with: "Data from the surveys required in this rule shall be filed with the AOGCC by April 15i of the subsequent year in which the surveys are conducted. Along with the survey submittal, the Operator will also provide a proposed survey plan, which is subject to change based on operating requirements, for the upcoming year. The AOGCC may request additional pressure surveys as deemed necessary." The remainder of 8 (d) would remain unchanged Please contact me if there are any questions concerning this change. Sin re~r,-~ ~, ~) ~ ~' _ Ke onajka4vski Kuparuk HSET Mane er/Beluga Asset Manager ARCO Alaska, Inc. Is a SubsWWry of AtlantleRlehfleldCompany Author: Jack Hartz at DOA ~CC Date: 5/27/98 4:27 PM -~ Priority: Normal Receipt Requested ,/~L„r rA~ TO: KDONAJKC~mail.aai.arco.com at CC2MHS1 7711`` ` l Subject: Rule Proposal Correction & Publ Hearing Notice Ken, I got your message regarding the correction. A short letter with the same information as the email will suffice for the record. You don't have to go into any lengthy explanation. I had to notice the application because all the requested changes cannot be done by administrative action. I have attached a copy of the notice with the protest period closing date and tentative hearing date ( should there be a substantial protest). Usually, the commission does not call a hearing if there are no protests and/or if a protest is not substantial or relevant. Jack Hartz Alaska Oil & Gas Conservation Commission Main Switchboard 907-279-1433 X 232 Direct Line 907-793-1232 Fax 907-276-7542 email jack_hartzQadmin.state.ak.us Author: KDONAJKQmail.aai.a~o.com (Ken L Donajkowski) at C~S1 Date: 5/27/98 3:52 PM Priority: Normal ~{7 ,( T0: Jack Hartz at DOA-AOGCC ~/~~~C~l~ Subject: Rule Proposal Correction (( o Jack, per my phone message I just left, here is how the proposal should have read: The proposed change to CO 173 Rule 8 (b) would eliminate the requirement for a specific number of pressure surveys., and make the report submittal annual rather than quarterly: "The Operator will obtain bottom-hole pressure surveys when the Operator?s technical staff determines that surveillance is needed for efficient management of the ongoing hydrocarbon recovery processes." The proposed change to CO 173 Rule 8 (d) would make the report submittal annual rather than quarterly: "Data from the surveys required in this rule shall be filed with the AOGCC by April 1st of the subsequent year in which the surveys are conducted. Along with the survey submittal, the Operator will also provide a proposed survey plan, which is subject to change based on operating requirements, for the upcoming year. The AOGCC may request additional pressure surveys as deemed necessary." My apologies for the confusion!! ------------------------- Original message header: >MAIL FROM:<KDONAJKC~mail.aai.arco.com> >RCPT TO:<jack hartzc?admin.state.ak.us> >DATA >Received: from popl.state.ak.us ([146.63.242.13]) by jnumaill.state.ak.us (Nets cape Messaging Server 3.5) with ESMTP id AAA4806 for <Jack_HartzC~admin.state.ak .us>; Wed, 27 May 1998 15:55:31 -0800 >Received: from inetgl.Arco.COM ([130.201.119.253]) by popl.state.ak.us (POSt.Of fice MTA v3.1.2 release (PO205-101c) ID# 0-44072U100L100S0) with ESMTP id AAA91 for <Jack HartzQadmin.state.ak.us>; Wed, 27 May 1998 15:54:54 -0800 >Received: from mail.aai.arco.com ([136.226.206.36]) by inetgl.Arco.COM (8.8.5/8 .8.5) with SMTP id SAA04211 for <Jack Hartzc~admin.state.ak.us>; Wed, 27 May 1998 18:55:26 -0500 (CDT) >Received: by mail.aai.arco.com(Lotus SMTP MTA SMTP MTA v1.1.04 (495.1 10-24-19 97)) id 89256611.0082D2AD Wed, 27 May 1998 15:48:56 -0800 >X-Lotus-FromDomain: ARCO >From: "Ken L Donajkowski"<KDONAJKQmail.aai.arco.com> >To: Jack_HartzQadmin.state.ak.us >Message-ID:<8A256612.00046041.OOQtnail.aai.arco.com> >Date: Wed, 27 May 1998 15:52:44 -0900 >Subject: Rule Proposal Correction >Mime-Version: 1.0 >Content-type: text/plain; charset=US-ASCII ------------------------- End of message header. Author: Jack Hartz at DOA ~CC Date: 5/21/98 8:12 AM Priority: Normal TO: KDONAJKQmail.aai.arco.com (Ken L Donajkowski) at CC2MHS1 ~J~' Subject: Re: Rule Proposal Ken, The proposal is circulating for comment. I'll be working the changes if there are no objections amongst staff. Jack Hartz Reply Separator Subject: Rule Proposal Author: KDONAJKQmail.aai.arco.com (Ken L Donajkowski) at CC2MHS1 Date: 5/20/98 10:23 PM Jack, have you seen the formal submittal yet? Ken ------------------------- Original message header: >MAIL FROM:<KDONAJKQmail.aai.arco.com> >RCPT TO:<jack_hartzQadmin.state.ak.us> >DATA Author: Jack Hartz at DOA ~CC • Date: 5/21/98 1:16 PM Priority: Normal Receipt Requested T0: KDONAJK@mail.aai.arco.com (Ken L Donajkowski) at CC2MHS1 Subject: Re: Rule Proposal - (2nd Response) Ken, On closer reading the proposal dated May 11 requests changes to Rule 8(a)-(f) of CO 173. That is a bit different than the draft you gave me in April where you requested changes to 8(b) and 8(d). Could you clarify whether you are requesting changes to paragraphs b and d only? Thanks Jack Hartz Reply Separator Subject: Rule Proposal Author: KDONAJK@mail.aai.arco.com (Ken L Donajkowski) at CC2MHS1 Date: 5/20/98 10:23 PM Jack, have you seen the formal submittal yet? Ken ------------------------- Original message header: >MAIL FROM:<KDONAJK@mail.aai.arco.com> >RCPT T0:<jack hartz@admin.state.ak.us> >DATA >Received: from popl.state.ak.us ([146.63.242.13]) by jnumaill.state.ak.us (Nets cape Messaging Server 3.5) with ESMTP id AAA4F92 for <Jack_Hartz@admin.state.ak .us>; Wed, 20 May 1998 22:25:28 -0800 >Received: from inetgl.Arco.COM ([130.201.119.253]) by popl.state.ak.us (Post.Of fice MTA v3.1.2 release (PO205-101c) ID# 0-44072U100L100S0) with ESMTP id AAA96 for <Jack Hartz@admin.state.ak.us>; Wed, 20 May 1998 22:24:56 -0800 >Received: from mail.aai.arco.com ([136.226.206.36]) by inetgl.Arco.COM (8.8 .5/8.8.5) with SMTP id BAA17158 for <Jack Hartz@admin.state.ak.us>; Thu, 21 May 1998 01:25:24 -0500 (CDT) >Received: by mail.aai.arco.com(Lotus SMTP MTA SMTP MTA v1.1.04 (495.1 10-24-19 97)) id 8925660B.0022B488 Wed, 20 May 1998 22:19:04 -0800 >X-Lotus-FromDomain: ARCO >From: "Ken L Donajkowski"<KDONAJK@mail.aai.arco.com> >To: Jack_Hartz@admin.state.ak.us >Message-ID:<8A25660B.0028777E.00@mail.aai.arco.com> >Date: Wed, 20 May 1998 22:23:01 -0900 >Subject: Rule Proposal >Mime-Version: 1.0 >Content-type: text/plain; charset=US-ASCII ------------------------- End of message header. Author: Jack Hartz at DOA-~CC Date: 4/15/98 2:49 PM Priority: Normal Receipt Requested T0: KDONAJKOWSKICmail.aai.arco.com at CC2MHS1 Subject: Feedback on Rule Changes to CO 173, CO 198 Ken, The proposal in general is reasonable for our purposes. The reasoning is defendable, that is operators have been moving in the direction of less frequent reporting while still still honoring the commitment to inform the AOGCC regularly. 1. CO 198 Rule 4 - The requirement to resurvey an unspecified number wells is the operators perogative. The operator is best equipped to predict the number of surveys required from a reservoir management perspective. In the past the Commission has given up the specific number of surveys in exchange for filing a plan as part of a surveillance report and allowing the Commission an opportunity to review it and comment if appropriate. The filing deadline of January 31 may be ambitious given yearend activity. Most surveillance reports filed with the AOGCC are required by April 1. Of course they can be filed earlier than the deadline. 2. Rule 8 paragraph (b) - This rule is from CO 173 originally. Rule 8 has been repealed and reenacted by CO 230 Rule 8 (a through f). CO 230 Rule 8 (b) was subsequently ammended by CO 276 Rule 2 which reads: "One bottom-hole pressure survey on a well from each drillsite shall be performed annually. The commission amy require additional surveys as deemed necessary." The same comments In 1. above apply as to reducing the specific number of surveys required on an annual basis. 3. Rule 8 (d) - The rule has the same history as 2. above. Submitting results from surveys annually is a reasonable request. 4. Rule 9(c) - This rule is also from CO 173. Submission of production survey results annually is a reasonable request. If for some reason the Commission needed a set of data before the end of a year could we request a set? To me this makes the annual submission reasonable if on an exceptional basis an intermediate data set can be obtained. As you can see, several of the rules and paragraphs have been ammended by subsequent rules in later CO's. It can be confusing and helps justify the argument for consolidating the effective pool rules into one set of rules. Call if you have any questions regarding my comments. Jack Hartz Alaska Oil & Gas Conservation Commission Main Switchboard 907-279-1433 X 232 Direct Line 907-793-1232 Fax 907-276-7542 email jack hartzQadmin.state.ak.us