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SCANNED JU L 2 2 2004
5/21/03 ConservOrdCvrP9.WPd
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INDEX CONSERVATION ORDER NO. 524
BEAVER CREEK FIELD: ALL POOLS
1. October 30, 2003
Notice of Hearing, Affidavit of publication, e-mail
Distribution list, bulk mailing
Marathon's Request for a hearing
Marathon's Request to Vacate Hearing
Notes from Engineer
2. November 14, 2003
3. December 4,2004
4. November 14,2003
Conservation Order No. 524
..-....
r""'\
STATE OF ALASKA
ALASKA OIL AND GAS CONSERVATION COMMISSION
333 West 7th Avenue, Suite 100
Anchorage Alaska 99501
Re: Proposed Rules Regulating Sustained
Casing Pressures in Development Wells
Within the Beaver Creek Field.
)Conservation Order No. 524
)
)Beaver Creek Field: All Pools
)
)July 20, 2004
)
)
IT APPEARING THAT:
1. On its own motion, the Alaska Oil and Gas Conservation Commission
("Commission" or "AOGCC") proposed to adopt rules regulating sustained annulus
pressures in Beaver Creek Field development wells.
2. Notice of opportunity for a public hearing on the proposal was published in the
Anchorage Daily News on October 30,2003.
3. No request for a hearing was received.
4. The Commission received written comments on the proposal from Beaver Creek
Field operator, Marathon Oil Company ("MOC").
FINDINGS
1. In considering proposed rules regulating sustained casing pressures in Beaver
Creek Field development wells, the Commission reviewed: the Halliburton
Cementing Tables; Commission files for Beaver Creek Field wells; information on
well pressures provided by the operator; written comments by MOC in response to
the October 30, 2003 notice of opportunity for public hearing; and the records of
annular pressure rules for other fields in the state.
2. Unless otherwise specifically authorized by the Commission, AOGCC regulations
require all producing wells capable of unassisted flow to be completed with suitable
tubing and packer that effectively isolate the tubing-casing annulus from fluids being
produced.
3. No current regulation or Commission order for the Beaver Creek Field establishes
annular pressure management requirements for producing wells. However, the
Commission established such requirements for producing wells in other Alaska fields.
~
,...........,
Conservation Order 524
July 20, 2004
Page 2 00
4. Annulus pressure is common in development wells. Pressures may be purposely
imposed, thermally induced or the result of leaks in tubing, casing, packer or other
well components.
5. Excessive annular pressure can develop in wells as a result of thermal effects.
Well startup can involve significant annular pressure increases due to fluid expansion
as a well heats above ambient temperature. Changing produced fluid characteristics
and production mechanisms can also create thermal conditions that affect annular
pressures.
6. Pertinent characteristics of well construction in the Beaver Creek Field are similar
to those in other Alaska fields.
7. The Beaver Creek Field is a mature gas field in which reservoir pressures have
declined substantially since production commenced. Well pressures in the Beaver
Creek Field are now low relative to other Alaska fields, ranging from a minimum
surface pressure of approximately 800 psi to a maximum surface pressure of
approximately 1500 psi.
8. Low pressure in the inner annulus of Beaver Creek Field development wells
means that there is little risk of overpressuring the outer annulus.
9. Beaver Creek Field wells produce primarily natural gas. Annular pressure
increases due to thermally induced fluid expansion are thus expected to be
substantially less than thermally induced annular pressure increases in wells of oil-
producing fields, due to the compressibility of gas and generally lower temperature.
10. Well tubulars in Beaver Creek Field development wells are of sufficient burst
pressure rating to contain the full range of reasonably anticipated well pressures.
11. The wellheads of many Beaver Creek Field development wells were installed in
below-ground cellars, making access to the outer annulus difficult and somewhat
hazardous.
CONCLUSION
1. It is not essential to adopt rules regulating sustained casing pressures for Beaver
Creek Field development wells at this time.
III
III
.'~
.~
Conservation Order 524
July 20, 2004
Page 3 00
NOW THEREFORE IT IS ORDERED that this proceeding is concluded without
amending the Beaver Creek Field pool rules.
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 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-da~ period for appeal to Superior Court runs from the date on which the request is
deemed denied (i.e., lOt day after the application for rehearing was filed).
Citgo Petroleum Corporation
PO Box 3758
Tulsa, OK 74136
Kelly Valadez
Tesoro Refining and Marketing Co.
Supply & Distribution
300 Concord Plaza Drive
San Antonio, TX 78216
Jerry Hodgden
Hodgden Oil Company
408 18th Street
Golden, CO 80401-2433
Kay Munger
Munger Oil Information Service, Inc
PO Box 45738
Los Angeles, CA 90045-0738
Mark Wedman
Halliburton
6900 Arctic Blvd.
Anchorage, AK 99502
Baker Oil Tools
4730 Business Park Blvd., #44
Anchorage, AK 99503
Gordon Severson
3201 Westmar Cr.
Anchorage, AK 99508-4336
James Gibbs
PO Box 1597
Soldotna, AK 99669
Richard Wagner
PO Box 60868
Fairbanks, AK 99706
Williams Thomas
Arctic Slope Regional Corporation
Land Department
PO Box 129
Barrow, AK 99723
,"""""
~
Mary Jones
XTO Energy, Inc.
Cartography
810 Houston Street, Ste 2000
Ft. Worth, TX 76102-6298
Robert Gravely
7681 South Kit Carson Drive
Littleton, CO 80122
Richard Neahring
NRG Associates
President
PO Box 1655
Colorado Springs, CO 80901
Samuel Van Vactor
Economic Insight Inc.
3004 SW First Ave,
Portland, OR 97201
Schlumberger
Drilling and Measurements
3940 Arctic Blvd., Ste 300
Anchorage, AK 99503
Ciri
Land Department
PO Box 93330
Anchorage, AK 99503
Jack Hakkila
PO Box 190083
Anchorage, AK 99519
Kenai National Wildlife Refuge
Refuge Manager
PO Box 2139
Soldotna, AK 99669-2139
Cliff Burglin
PO Box 70131
Fairbanks, AK 99707
North Slope Borough
PO Box 69
Barrow, AK 99723
, "
David McCaleb
IHS Energy Group
GEPS
5333 Westheimer, Ste 100
Houston, TX 77056
George Vaught. Jr.
PO Box 13557
Denver, CO 80201-3557
John Levorsen
200 North 3rd Street, #1202
Boise, ID 83702
Michael Parks
Marple's Business Newsletter
117 West Mercer St, Ste 200
Seattle, WA 98119-3960
David Cusato
200 West 34th PMB 411
Anchorage, AK 99503
Jill Schneider
US Geological Survey
4200 University Dr.
Anchorage, AK 99508
Darwin Waldsmith
PO Box 39309
Ninilchick, AK 99639
Penny Vadla
399 West Riverview Avenue
Soldotna, AK 99669-7714
Bernie Karl
K&K Recycling Inc.
PO Box 58055
Fairbanks, AK 99711
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Alas( mess Unit
P.O. Box 196168
Anchorage, AK 99519-6168
Telephone 907/561-5311
Fax 907/564-6489
c;(,4 - &>"$ ZS
November 14, 2003
Jody Colombie
Alaska Oil & Gas Conservation Commission
333 West 7'h Ave.
Suite 100
Anchorage, AK 99501
NOV 1 4
nit & Gas Com;,
Re: Public Hearing
Dear Ms. Colombie:
Marathon requests that the hearing tentatively scheduled for December 11, 2003 at 9:00
am be held. The topic for the hearing is to discuss governing annular pressures in
development wells in the Kenai Gas, West Fork, Beaver Creek, North Cook Inlet and
Beluga River Fields. The following comments are our concerns with the proposed rules.
I
1. Item #2 - The proposed order makes no distinction between daily monitoring
of active, shut-in, and suspended development wells. Marathon proposes
that the requirement of daily checks for sustained pressure apply only to
(h 1- will I d f (? active development wells. Marathon operates numerous shut-in wells that do
, ) U{ h. , v. iI.. not require daily operator inspection, including some which are somewhat
. l I 't lemote and difficult to access (ex: West Fork field). Instead, Marathon
,. oA ~. \1\ Ul' Ìl1 1[c;..1 (Á .~ 'proposes at least annual measurement of annulus pressure on shut-in and
. tUlA-WlJ.,.., / ~(l $ suspended wells. Casing pressures for these shut-in wells could easily be
incorporated into the Shut In Wells Report that is already being provided to
the AOGCC by March 31 of each year (20 AAC 25.115).
J. WhA/r £;etJ, t;Av-t
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2. Item #3 - Daily monitoring of the inner annulus (IA) is reasonable, but daily
monitoring of the outer annulus (OA) will be costly and difficult. Most ofthe
access valves to the OA are placed significantly below ground level. Many, I
are buried or submerged. Installing piping that would allow year-_round, daily tI - ~
observation of the pressure on the OA will require confined space entry of
one or more people into the well cellar as well as possible excavation work.
In many cases this work is being done on wellheads and valves that are 30 to
40 years old. In addition, Marathon's survey of annulus pressures in
September 2002 indicated that sustained pressures that exceed the
requirements of item #3 were virtually nonexistent. Marathon contends that
the hazard posed by placing personnel in well cellars to provide access to the
OA far exceeds the hazard of operating the wells in their current state.
Realizing that the risk to the OA is insignificant if there is little pressure on the
lA, Marathon proposes to only monitor the IA daily for sustained pressure. If
the IA is found to have sustained pressure that exceeds 1000 psig, then daily I
monitoring of the OA would also be required. Z-oAAC ~S. ZOO(~) .
.r> 1<' \U..., l.avo..! "",,- <:'..9 wiÁ iù (d~ .
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Request for Hearing
November 14, 2003
3. 1t.en1#5 - Clarification: is the intent of this rule that the Operator be
~uired to notify the AOGCC within three working days or notify and take
corrective action within three working days? Marathon contends that it will
not always be possible to initiate the proper corrective action within three
days, but it is reasonable to notify the AOGCC within three days and devise a
mutually acceptable plan and timetable for corrective action following the
notification.
Please let me know if you require any further information in preparation for this hearing.
I can be reached at 907.564.6325 or abschoffmann@marathonoil.com.
Sincerely,
z:::~ ~
A. Ben Schoffmann
Operations Superintendent
bjv
By Courier
c. J. Barnes
J. Gary Eller
Kenai Gas Field
Pad Well
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133/8" CasinQ
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1 ea2" turn valve
1ea 2" turn valve
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20"
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MARATHON WELL INSPECTION DATA
Kenai Gas Field
PAD WELL PTD IA OA STATUS COMMENTS
33-30 BN No guage BN No guage CSEntryto modify
33-30 42-30.. BN No guage BN No guage CS Entry to modify
44-30 BN No guage BN No guage No CS Entry
21X-32. BN guage BN No guage NOL No CS Entry
43-32 21-5 BN No guage BN No guage No CS Entry
33-32. BN No guage BN No guage NOL No CS Entry
34-32 BN guage..{' BN No guage WOps CS' Entry tómodify; Scada IA ,(.
11-6., BN guage BN No guage No CS Entry )
14-32 BN No guage BN guage.~' WOps CS . Entry to modify ~
21-06 RD BN guage BN No guage WOps No CS Entry; Scada IA
34-31 33-1 BN No guage BN No guage NOL No CS Entry
34-31- BN No guage BN guage WOps CSEntry to modify
DU-5 BN guage BN guage WOps CSEntry to modify; Scada IA
DU-6. BN guage BN No guage NOL CSEntry to~
13-6 BN No guage NoBN guage .,-: ¡ WOps No CS Entry(Scada I ',;-
14-6, BN guage NoBN No guage O/S CSEntrytomodify;Scada IA
14-X6 BN guage"" BN No guage WOps CSEntryto mOdify; Scada IA .t','"
21-7' BN No guage BN No guage O/S No CS Entry; Scada IA
23-X6 BN guage" BN No guage O/S' No CS Entry; Scad a IA /'
14-6 23~7, BN guage N/A N/A X-scape; No CS Entry
31-7 RD BN guage"" BN guage"": NOL No CS Entry 0+.
31-7~ BN No guage BN guage ": WOps No CS Entry .?-
24-6 BN No guage N/A N/A O/S" X-scape; No CS Entry "';
43-12' BN No guage BN No guage OIS Long Term S/I; No CS Entry )
DU-1 BN guage BN No guage NOL No CS Entry )
11~17, BN guage.... BN No guage WINJ; CS Entry to modify /.
13-8 BN No guage BN No guage NOL CS Entry to modify
24-7, BN guage /' BN guage"" O/S WINJ; CS Entry to modify /.
41-18
33-7 BN guage" BN No guage WOps CSEntry to modify ,.
"
41-18' BN guage BN No guage No CS Entry
WD-1 BN guage/PR BN No guage INT WINJ; No CS Entry
BN=Block Valve S/I=Shut in NOL=Normally online W Ops=Winter Operation INT=lntermittant
CS=Confined Space O/S=Out of Service I
~I !'S
Kenai Gas Field Cont.
PAD WELL PTD JA ' OA STATUS COMMENTS
11-8 BN I guage"" Frozen Cellar CIS S/I; CS Entry to modify '-,
11-8X BN guage N/A N/A NOL X-scape; No CS Entry
13-5 BN No guage BN guage..e NOL CS Entry to modify /.
24-5 RD BN guage '" BN No guage NOL CS Entry to modify /,
41-7 - BN No guage BN No guage 1 NOL CS Entry to modify
43-6A - BN No guage BN No guage NOL No cellar
43-6 RD BN guage"" BN No guage WOps No CS Entry .I
43-6X RD BN guage '" BN No guage CIS '" No CS Entry /, )
43-7- BN No guage BN No guage O/S Long Term SII; no cellar
41-7 DU-2- BN guage BN No guage NOL No CS Entry
DU-4 RD BN guage BN No guage NOL No CS Entry
32-7- BN guage -: BN No guage NOL No CS Entry ./.
42-7, BN No guage N/A N/A NOL X-scape; No CS Entry /,.
33-6- BN guage /' BN No guage O/S'" No CS Entry /"
24-6H' BN No guage BN No guage NOL No CS Entry ,.( ,
41-7X- BN No guage N/A N/A CIS " Long Term SII; monobore ¿-
44-6' BN guage./ N/A N/A NOL X-scape; No CS Entry -1'
32-7H BN guage /" BN guage"'" NOL No CS Entry "'-
43-7X' BN guage"'" N/A N/A NOL X-scape; No CS Entry -/.
33-6X' BN guage '" N/A N/A NOL X-scape; No CS Entry '"
CLU-1 RD' BN No guage BN No guage CS Entry to modify ,~
CLU-3 Long Term SII /
CLU-4. Lon!;¡ Term SII "
CLU CLU-5 BN guage '" BN No guage CS Entry to modify /, )
CLU-6 BN No guage N/A N/A No CS Entry "'-
CLU-7 BN guage '" N/A N/A CS Entry to modify /:.
CLU-8 BN guage"'" N/A N/A X-scape; CS Entry to modify - -(,
SU 32-9 ' BN guage"'" N/A N/A No CS Entry
;/
-
Sterling Beluga 41-15 BN guage /' BN No guage No CS Entry ./.
SU 43-9 BN guage BN guage WINJ; No CS Entry, Scada JA
BN=Block Valve S/I=Shut in NOl=Normany on line W °ps=Winter Operation INT=lntermittant
CS=Confined Space O/S=Out of Service I g
30
Beaver Creek Unit
PAD WEll PTD IA OA STATUS COMMENTS
BC-1A BN guage BN No guage No CS Entry
BC-2' BN guage BN No guage WINJ; No CS Entry
BC-3' BN guage BN No guage Oil I AL; CS Entry to modify
BC-4' BN guage BN guage Oil I AL; No CS Entry
BC-5 RO, BN guage BN No guage CS Entry to modify; Scada IA
Beaver Creek BC-5. BN guage'" BN No guage CS Entry to modify ""-
BC-? ) BN guage BN guage No CS Entry
BC-9 - BN guage'" BN guage ,.. No CS Entry /
BC-10' BN guage'" N/A N/A Monobore No CS Entry ,/
BC-11- BN guage""" N/A N/A X-scape No CS Entry ,/
BC-13 , BN ç¡uaç¡e./ N/A N/A X-scape No CS Entry ,/
Wolf lake Unit
Wolf lake WL-1 RD' BN No guage No CS Entry
WL-2 ¡ BN No guage No CS Entry
Ninilchik Unit
SD-1 RD. BN No guage No CS Entry; S/I, No Flow line
Susan Dionne SD-3 BN guage No CS Entry;Scada IA press.
Paxton #1 BN guage No CS Entry; S/I, No Flow line
GO-1 ' BN guage No CS Entry, Scada IA press.
GO GO-2' BN guage No CS Entry, Scada IA press.
FC-1 RO' BN No guage CS Entry to modify; Scada IA
Falls Creek FC-3' BN guage No CS Entry;Scada IA press.
FC-4 BN guage No CS Entry
Kasilof South #1 BN guage No CS Entry; S/I, No Flow line
BN=Block Valve SII=Shut in NOl=Normally on line W Ops=Winter Operation
CS=Confined Space O/S=Out of Service I
-¿?-
)
')
INT=lntermittant
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Ala~usiness Unit
P.O. Box 196168
Anchorage, AK 99519-6168
Telephone 907/561-5311
Fax 907/564-6489
December 4, 2003
Ms. Jody Colombie
Alaska Oil & Gas Conservation Commission
333 West ¡th Ave., Suite 100
Anchorage, AK 99501
Re: AOGCC Public Hearing on Cook Inlet Annular Pressures
Dear Ms. Colombie:
In follow-up to our letter of November 14, 2003, regarding AOGCC's proposed
rules governing annular pressures in development wells in the Kenai Gas, West
Fork, Beaver Creek, North Cook Inlet, and Beluga River Fields; I have spoken
with Winton Aubert regarding Marathon's concerns. He has represented that
AOGCC is amenable to addressing those concerns in crafting the final rules. To
that end, Marathon requests that the hearing scheduled for December 11, 2003
be vacated in favor of continued discussions between AOGCC and Marathon to
finalize a mutually acceptable result.
Please let me know if you require any further information. I can be reached at
(907) 564-6325 or abschoffmann@marathonoil.com.
Sincerely,
o~~~
ÁBen Schoffmann
Operations Superintendent
kgh
By certified mail #7002 3150 0001 23293015
c: John Barnes
Jim Thompson - Houston
Environmentally aware for the long run.
2
~~
~
Alaska, 'ness Unit
Marathon
Oil Company
P.O. Box 196168
Anchorage, AK 99519-6168
Telephone 907/561-5311
Fax 907/564-6489
November 14, 2003
Jody Colombie
Alaska Oil & Gas Conservation Commission
333 West th Ave.
Suite 100
Anchorage, AK 99501
NOV 1 4
'.-'
Re: Public Hearing
Dear Ms. Colombie:
Marathon requests that the hearing tentatively scheduled for December 11, 2003 at 9:00
am be held. The topic for the hearing is to discuss governing annular pressures in
development wells in the Kenai Gas, West Fork, Beaver Creek, North Cook Inlet and
Beluga River Fields. The following comments are our concerns with the proposed rules.
1. Item #2 - The proposed order makes no distinction between daily monitoring
of active, shut-in, and suspended development wells. Marathon proposes
that the requirement of daily checks for sustained pressure apply only to
active development wells. Marathon operates numerous shut-in wells that do
not require daily operator inspection, including some which are somewhat
remote and difficult to access (ex: West Fork field). Instead, Marathon
proposes at least annual measurement of annulus pressure on shut-in and
suspended wells. Casing pressures for these shut-in wells could easily be
incorporated into the Shut In Wells Report that is already being provided to
the AOGCC by March 31 of each year (20 MC 25.115).
2. Item #3 - Daily monitoring of the inner annulus (IA) is reasonable, but daily
monitoring of the outer annulus (OA) will be costly and difficult. Most of the
access valves to the OA are placed significantly below ground level. Many
are buried or submerged. Installing piping that would allow year-round, daily
observation of the pressure on the OA will require confined space entry of
one or more people into the well cellar as well as possible excavation work.
In many cases this work is being done on wellheads and valves that are 30 to
40 years old. In addition, Marathon's survey of annulus pressures in
September 2002 indicated that sustained pressures that exceed the
requirements of item #3 were virtually nonexistent. Marathon contends that
the hazard posed by placing personnel in well cellars to provide access to the
OA far exceeds the hazard of operating the wells in their current state.
Realizing that the risk to the OA is insignificant if there is little pressure on the
lA, Marathon proposes to only monitor the IA daily for sustained pressure. If
the IA is found to have sustained pressure that exceeds 1000 psig, then daily
monitoring of the OA would also be required.
"
,--.
".-.
Request for Hearing
November 14, 2003
3. Item #5 - Clarification: is the intent of this rule that the Operator be
required to notify the AOGCC within three working days or notify and take
corrective action within three working days? Marathon contends that it will
not always be possible to initiate the proper corrective action within three
days, but it is reasonable to notify the AOGCC within three days and devise a
mutually acceptable plan and timetable for corrective action following the
notification.
Please let me know if you require any further information in preparation for this hearing.
I can be reached at 907.564.6325 or abschoffmann@marathonoil.com.
Sincerely,
:!:!~ s
A. Ben Schoffmann
Operations Superintendent
bjv
By Courier
c. J. Barnes
J. Gary Eller
1
,~
.---.
STATE OF ALASKA
ADVERTISING
ORDER
NOTICE TO PUBLISHER ADVERTISING ORDER NO.
INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO.. CERTIFIED AO-O2414012
AFFIDAVIT OF PUBLICATION (PART2 OF THIS FORM) WITH ATTACHED COpy OF
ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE
8 AOGCC
333 W 7th Ave, Ste 100
0 Anchorage, AK 99501
M
AGENCY CONTACT
DATE OF A.O.
Jody Colombie
PHONE
October 28, 2003
PCN
(907) 793 -1221
DATES ADVERTISEMENT REQUIRED:
~ Anchorage Daily News
POBox 149001
Anchorage, AK 99514
October 30, 2003
THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS
ENTIRETY ON THE DATES SHOWN.
SPECIAL INSTRUCTIONS:
Type of Advertisement
x
Legal
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SEE ATTACHED
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REF TYPE
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FIN
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NUMBER
AOGCC, 333 W. 7th Ave., Suite 100
Anchorage, AK 99501
AMOUNT DATE
I ITOTALOF I
PAGE 1 OF ALL PAGES$
2 PAGES
COMMENTS
02910
AMOUNT
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PGM
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ACCT
FY -
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LID
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73540
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¡U~lTIrv QcyQ ~
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
PRICE OTHER OTHER OTHER OTHER OTHER GRAND
AD# DATE PO ACCOUNT PER DAY CHARGES CHARGES#2 CHARGES #3 CHARGES #4 CHARGES #5 TOTAL
990566 10/30/2003 02414012 STOF0330 $149.46
$149.46 $0.00 $0.00 $0.00 $0.00 $0.00 $149.46
Siwœd )~11~Wfv ;¿.
Notice of Public Heoring
STATE OF ALASKA
, :AIOSkO Oil Dnd Gas Conservation Commission
,Re: Rules gDverning annular pres'sures in devel-
opment wells in the Kenai Gas, West Fork, Beaver
Creek, North Caok Inlet and Beluga River Fields,
T,~e Alas~a ,OJ,,D~d G~s èanservation Commission
( Co~mlsslon ), on Its own motion, praposes to
establ!sh rules regulating sustained casing"'pres'-
sures"n development wells in all pools within'the
Kenai Gas, West F,ork.., B,eaver Creek, Nor'th Cook
Inlet an~ Beluga River Fields; The proposed rules
:r~~~~s:~:~~~ted at the C,?mmissions offices or on
http://www.slate,ak.us/local/akpages/ADMI NI ogclhomeogc. hIm,
, The Con;¡mission has tentatively set 0 consoli-
doted public hearing on these proposed oct ions for
December 11,2003 at 9:00 am at the Alaska Oil and
Gas Conservation Commission at 333 West 7th Av-
enue, Suite 100, Anchorage, Alaska'99501. A per-
son !T1ay request that the tentativelY scheduled
hearln? b,e held by filing D written réquest with the
~~Tmlsslon no later than 4:30 pm on NDvember 17,
If a re~u~st fDr a hearing is not timely filed, the
C?mmlSSlon ,^,:11I'consider the issuance of orders
without a hearing, To learn if the Commission wiJl
hold the public hearing, please call 793-1221.
In addition, a.person may submit written com-
ments re~ardlng these proposed actions to the
Alaska 011 and ,Gas 'Conservation ,Commission at
333 West 7t~ Avenue, Suite 100, Anchorage, Alaska
99501, Written comments must be received no
later,thDn 4:30 pm on December 1, 2003, except
that .'f the C:ommissjon,dj!c.ides ta hold a public
hearing, written comments, must be received no
later than 9:00 am on December 11, 2003,
STATE OF ALASKA
THIRD JUDICIAL DISTRICT
Kimberly Kirby, 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 Tlùrd 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 foregoing publication is not in excess of the rate charged
private individuals.
Ilyou ?reaperson with D disability who may need
Dspeclal madificationinarder to, commen/orto
atten~ the public hearing,please contact Jody Co-
IDmble at 793-1221 befDre December 1, 2003,
Sarah Palin,ChDir
ADN AO# 02414012
Publish:
Notary Public in and for the State of Alaska.
Third Division. Anchorage, Alask~a ~
MY COMMISSION EXPIRE; t/ 29, ~
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8
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Notice of Public Hearing
STATE OF ALASKA
Alaska Oil and Gas Conservation Commission
Re:
Rules governing annular pressures in development wells in the Kenai Gas, West
Fork, Beaver Creek, North Cook Inlet and Beluga River Fields.
The Alaska Oil and Gas Conservation Commission ("Commission"), on its own
motion, proposes to establish rules regulating sustained casing pressures in development
wells in all pools within the Kenai Gas, West Fork, Beaver Creek, North Cook Inlet and
Beluga River Fields. The proposed rules may be inspected at the Commissions offices or
on its web site at http://www.state.ak.us/local/akpages/ADMIN/ogc/homeogc.htm.
The Commission has tentatively set a consolidated public hearing on these
proposed actions for December 11, 2003 at 9:00 am at the Alaska Oil and Gas
Conservation Commission at 333 West 7'h 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 November 17,2003.
If a request for a hearing is not timely filed, the Commission will consider the
issuance of orders 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 these proposed
actions 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 December 1, 2003, except that if the Commission decides to hold a public
hearing, written comments must be received no later than 9:00 am on December 11,
2003.
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 December 1, 2003. '"
Published Date: October 30, 2003
ADN AO# 02414012
RE: Notice
...-.,
~
Subject: RE: Notice
Date: Wed, 29 Oct 2003 14:04:11 -0900
From: "legalads" <legalads@adn.com>
To: "Jody Colombie" <jody_colombie@admin.state.ak.us>
Hi Jody:
Following is the confirmation information on your legal notice. Pleae let me know if you have any questions or need
any further information.
Account Number: STOF 0330
Legal Ad Number: 990566
Publication Date(s): October 30, 2003
Your Reference orPO#: 02414012
Cost of Legal Notice: $149.46
Additional Charges
Web Link:
E-Mail Link:
Bolding:
Total Cost to Place Legal Notice: $149.46
Add Will Appear on www.adn.com :
Add Will Not Appear on www.adn.com: XXXX
Thank You,
Kim Kirby
Anchorage Daily News
Legal Classified Representative
E-Mail: legalads@adn.com
Phone: (907) 257-4296
Fax: (907) 279-8170
----------
From: Jody Colombie
Sent: Tuesday, October 28, 2003 2:01 PM
To: legalads
Subject: Notice
«File: Kenai Gas West Fork N Cook Inlet Beluga River Annular Pressure.doc»«File: Ad Order
form.doc»«File: jody colombie.vet»
Please publish the attached Notice on 10/30/03.
Jody
1 of 1
10/29/20032:19 PM
STATE OF ALASKA
ADVERTISING
ORDER
, ---- ~ ,
NOTICE TO PUBLISHER ADVERTISING ORDER NO.
INVOICe. ,,¡lUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED AO-O2414012
AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COpy OF
ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE
. AOGCC
333 West ih Avenue, Suite 100
0 Anchorage,AJ( 99501
M 907-793-1221
AGENCY CONTACT
DATE OF A.O.
¿ Anchorage Daily News
POBox 149001
Anchorage, AJ( 99514
lody Colombie October 28, 2003
PHOI\IE peN
(907) 793 -12?1
DATES ADVERTISEMENT REQUIRED:
October 30, 2003
THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS
ENTIRETY ON THE DATES SHOWN.
SPECIAL INSTRUCTIONS:
United states of America
AFFIDAVIT OF PUBLICATION
REMINDER
State of
ss
INVOICE MUST BE IN TRIPLICATE AND MUST REFERENCE
THE ADVERTISING ORDER NUMBER.
A CERTIFIED COpy OF THIS AFFIDAVIT OF PUBLICATION
MUST BE SUBMITTED WITH THE INVOICE.
ATTACH PROOF OF PUBLICATION HERE.
division.
Before me, the undersigned, a notary public this day personally appeared
who, being first duly sworn, according to law, says that
8heisthe
Published at
of
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
2003, and thereafter for - consecutive days, the last
publication appearing on the - day of
, 2003, 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
2003,
Notary public for state of
My commission expires
~
02-901 (Rev. 3/94)
Page 2
AO.FRM
PUBLISHER
Notice's
.
.
.
lof2
,~
".-.... ,
Subject: Notice's
Date: Tue, 28 Oct 2003 14:18:44 -0900
From: Jody Colombie <jody_colombie@admin.state.ak.us>
Organization: Alaska Oil and Gas Conservation Commission
BCC: Robert E Mintz <robert_mintz@law.state.ak.us>,
Christine Hansen <c.hansen@iogcc.state.okus>,
John Tanigawa <JohnT@EvergreenGas.com>, Terrie Hubble <hubblet1@bp.com>,
Sandra Stewman <StewmaSD@BP.com>,
Scott & Cammy Taylor <staylor@alaska.net>, stanekj <stanekj@unocal.com>,
ecolaw <ecolaw@trustees.org>; roseragsdale <roseragsdale@gci.net>,
trmjr 1 <trmjr 1 @aol.com>, jbriddle <jbriddle@marathonoil.com>,
rockhill <rockhill@aoga.org>, shaneg <shaneg@evergreengas.com>,
rosew <rosew@evergreengas.com>, jdarlington <jdarlington@forestoil.com>,
nelson <nelson@gci.net>, cboddy <cboddy@usibelli.com>,
"mark.dalton" <markdalton@hdrinc.com>,
"shannon.donnelly" <shannon.donnelly@conocophillips.com>,
"mark p. worcester" <mark p. worcester@conocophillips.com>,
"jerry.c.dethlefs" <jerry.c.dethlefs@conocophillips.com>, bob <bob@inletkeeper.org>,
wdv <wdv@dnr.state.ak.us>, tjr <tjr@dnr.state.ak.us>, bbritch <bbritch@alaska.net>,
mjnelson <mjnelson@purvingertz.com>, burgin - d <burgin - d@niediak.com>,
"charles. o'donnell" <charles.o'donnell@veco.com>,
"Skillern, Randy L" <SkilleRL@BP.com>, "Dickey, Jeanne H" <DickeyJH@BP.com>,
"Jones, Deborah J" <JonesD6@BP.com>, "Hyatt, Paul G" <hyattpg@BP.com>,
"Rossberg, R Steven" <RossbeRS@BP.com>,
"Shaw, Anne L (BP Alaska)" <ShawAL@BP.com>,
"Kirchner, Joseph F" <KirchnJF@BP.com>, "Pospisil, Gordon" <PospisG@BP.com>,
"Sommer, Francis S" <SommerFS@BP.com>,
"Schultz, Mikel" <Mikel.Schultz@BP.com>,
"Glover, Nick W" <GloverNW@BP.com>, "Kleppin, Daryl J" <KleppiDE@BP.com>,
"Platt, Janet D" <PlattJD@BP.com>, "Jacobsen, Rosanne M" <JacobsRM@BP.com>,
ddonkel <ddonkel@cfl.rr.com>, collins_mount <collins - mount@revenue.state.ak.us>,
mckay <mckay@gci.net>,
"barbara.f.fullmer" <barbara.f.fullmer@conocophillips.com>,
eyancy <eyancy@seal-tite.net>, bocastwf <bocastwf@bp.com>,
cowo <cowo@chevrontexaco.com>, ajiii88 <ajiii88@hotmail.com>,
doug_schultze <doug- schultze@xtoenergy.com>,
"hank.alford" <hank.alford@exxonmobil.com>, yesnol <yesnol@gci.net>,
gspfoff <gspfoff@aurorapower.com>, "gregg.nady" <gregg.nady@shell.com>,
"fred.steece" <fred.steece@state.sd.us>, rcrotty <rcrotty@ch2m.com>,
jejones <jejones@aurorapower.com>, dapa <dapa@alaska.net>,
jroderick <jroderick@gci.net>, eyancey <eyancey@seal-tite.net>,
"james.m.ruud" <james.m.ruud@conocophillips.com>,
Brit Lively <mapalaska@aknet>, jah <jah@dnr.state.ak.us>,
Kurt E Olson <kurt_olson@legis.state.ak.us>, buonoje <buonoje@bp.com>,
"Emeka.C.Ezeaku" <Emeka.c.Ezeaku@spdc.shell.com>,
mark - hanley <mark- hanley@anadarko.com>,
loren _leman <loren _leman@gov.state.ak.us>,
Harry R Bader <harry_bader@dnr.state.akus>,
julie_boule <julie_houle@dnr.state.ak.us>, John W Katz <jwkatz@sso.org>,
10/28/2003 2: 19 PM
Notice's
.
.
8
2 of2
.~
~,
Suzan J Hill <suzan_hill@dec.state.ak.us>, tablerk <tablerk@unoca1.com>,
brady <brady@aoga.org>, Brian Havelock <beh@dnr.state.ak.us>,
bpopp <bpopp@borough.kenai.ak.us>,jimwhite <jimwhite@satx.rr.com>,
Stephanie_Ross <Stephanie ~Ross@thomson.com>,
"john.s.haworth" <john.s.haworth@exxonmobi1.com>, marty <marty@usalaska.biz>,
lois <lois@inletkeepers.org>, rmclean <rmclean@pobox.alaska.net>,
allenhuckabay <allenhuckabay@hotmai1.com>,
"james.scherr" <james.scherr@mms.gov>
Name: KenaiBelugaDetHN.DOC .
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i ~Annulus Pressure Rule South Attach.doc¡ Type: WINWORD File (application/msword)
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Name: Kenai Gas W
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Inlet_Beluga
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~Kenai Gas West Fork N Cook Inlet Beluga River Annular Pressure.doc
Jody Colombie <jodv colombie@admin.state.ak.us>
IO/28/20032:19PM
Notice
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Subject: Notice
Date: Tue, 28 Oct 2003 14:14:36 -0900
From: lody Colombie <jody_colombie@admin.state.ak.us>
Organization: Alaska Oil and Gas Conservation Commission
To: Nancy Norton <Nancy_Norton@admin.state.ak.us>,
Cynthia B Mciver <bren - mciver@admin.state.ak.us>
Please add to web site.
Jody
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Name: Kenai Gas W
Fork N Cook
Inlet_Beluga
River Annular
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~Kenai Gas West Fork N Cook Inlet Beluga River Annular Pressure.doc!
~Annulus Pressure Rule South
Name: Annulus Pressure Rule South Attach.doc:
Type: WINWORD File (applicationlmsword) !
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lody Colombie <jody colombie@admin.state.ak.us>
10/28/2003 2: 19 PM
Notice
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Subject: Notice
Date: Tue, 28 Oct 2003 14:01:01 -0900
From: Jody Colombie <jody - colombie@admin.state.ak.us>
Organization: Alaska Oil and Gas Conservation Commission
To: Legal Ads Anchorage Daily News <legalads@adn.com>
Please publish the attached Notice on 10/30/03.
Jody
~Kenai Gas West Fork N Cook Inlet Beluga River Annular Pressure. doc ,
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i Name: Ad Order form.doc
"~Ad Order form. doc , Type: WINWORD File (applicationlmsword)
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dy Colombie <jody colombie@admin.state.ak.us>
Name: Kenai Gas W
Fork N Cook
Inlet_Beluga
River Annular
Pressure.doc
Type: WINWORD F
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10/28/2003 2: 19 PM
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Notice of Public Hearing
STATE OF ALASKA
Alaska Oil and Gas Conservation Commission
Re:
Rules governing annular pressures in development wells in the Kenai Gas, West
Fork, Beaver Creek, North Cook Inlet and Beluga River Fields.
The Alaska Oil and Gas Conservation Commission ("Commission"), on its own
motion, proposes to establish rules regulating sustained casing pressures in development
wells in all pools within the Kenai Gas, West Fork, Beaver Creek, North Cook Inlet and
Beluga River Fields. The proposed rules may be inspected at the Commissions offices or
on its web site at http://www.state.ak.us/local/akpages/ADMIN/ogc/homeogc.htm.
The Commission has tentatively set a consolidated public hearing on these
proposed actions for December 11, 2003 at 9:00 am at the Alaska Oil and Gas
Conservation Commission at 333 West ih 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 November 17,2003.
.
If a request for a hearing is not timely filed, the Commission will consider the
issuance of orders 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 these proposed
actions 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 December 1, 2003, except that if the Commission decides to hold a public
hearing, written comments must be received no later than 9:00 am on December 11,
2003.
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 December 1, 2003. '"
Pub]ished Date: October 30, 2003
ADN AO# 024]40]2
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Elements of Proposed
Kenai Gas, West Fork, Beaver Creek, N. Cook Inlet, and Beluga River Fields
Annular Pressure Order
October 30, 2003
1.
The operator shall conduct and document a pressure test of tubulars and completion equip-
ment in each development well at the time of installation or replacement that is sufficient to
demonstrate that planned well operations will not result in failure of well integrity, uncon-
trolled release of fluid or pressure, or threat to human safety.
2.
The operator shall monitor each development well daily to check for sustained pressure,'
except if prevented by extreme weather conditions, emergency situations, or similar un-
avoidable circumstances. Monitoring results shall be made available for AOGCC inspec-
tion.
3.
The operator shall notify the AOGCC within three working days after the operator identi-
fies a well as having sustained inner annulus pressure that exceeds 2000 psig, or sustained
outer annulus pressure that exceeds 1000 psig.
4.
The AOGCC may require the operator to submit in an Application for Sundry Approvals
(Form 10-403) a proposal for corrective action or increased surveillance for any develop-
ment well having sustained pressure that exceeds a limit set out in paragraph 3 of this rule.
The AOGCC may approve the operator's proposal or may require other corrective action or
surveillance. The AOGCC may require that corrective action be verified by mechanical in-
tegrity testing or other AOGCC approved diagnostic tests, and that the AOGCC be given
sufficient notice of the testing schedule to allow AOGCC to witness the tests.
5.
If the operator identifies sustained pressure in the inner annulus of a development well that
exceeds 45% of the burst pressure rating of the well's production casing for inner annulus
pressure, or sustained pressure in the outer annulus that exceeds 45% of the burst pressure
rating of the well's surface casing for outer annulus pressure, the operator shall notify the
AOGCC within three working days and take corrective action. Unless well conditions re-
quire the operator to take emergency corrective action before AOGCC approval can be ob-
tained, the operator shall submit in an Application for Sundry Approvals (Form 10-403) a
proposal for corrective action. The AOGCC may approve the operator's proposal or may
require other corrective action. The AOGCC may also require that corrective action be
verified by mechanical integrity testing or other AOGCC approved diagnostic tests, and
that the AOGCC be given sufficient notice of the testing schedule to allow AOGCC to wit-
ness the tests.
6.
Except as othelWise approved by the AOGCC under paragraph 4 or 5 of these rules, before
a shut-in well is placed in service, any annulus pressure must be relieved to a sufficient de-
gree (a) that the inner annulus pressure at operating temperature will be below 2000 psig
and (b) that the outer annulus pressure at operating temperature will be below 1000 psig.
However, a well that is subject to paragraph 3, but not paragraph 5, of these rules may
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reach an annulus pressure at operating temperature that is described in the operator's notifi-
cation to the AOGCC under paragraph 3, unless the AOGCC prescribes a different limit.
7.
For purposes ofthis rule,
"inner annulus" means the space in a well between tubing and production casing;
"outer annulus" means the space in a well between production casing and surface casing;
"sustained pressure" means pressure that (a) is measurable at the casing head of an annulus,
(b) is not caused solely by temperature fluctuations, and (c) is not pressure that has been
applied intentionally.
~,
SD Dept of Env & Natural Resources
bil and Gas Program
2050 West Main, Ste 1
.id City, SD 57702
David McCaleb
IHS Energy Group
GEPS
5333 Westheimer, Ste 100
Houston, TX 77056
Robert Gravely
7681 South Kit Carson Drive
Littleton, CO 80122
Richard Neahring
NRG Associates
President
PO Box 1655
Colorado Springs, CO 80901
Samuel Van Vactor
Economic Insight Inc.
3004 SW First Ave.
Portland, OR 97201
'rk Wedman
Halliburton
6900 Arctic Blvd.
Anchorage, AK 99502
Baker Oil Tools
4730 Business Park Blvd., #44
Anchorage, AK 99503
David Cusato
600 West 76th Ave., #508
Anchorage, AK 99518
Kenai Peninsula Borough
Economic Development Distr
14896 Kenai Spur Hwy #103A
Kenai, AK 99611-7000
.ny Vadla
West Riverview Avenue
Soldotna, AK 99669-7714
Citgo Petroleum Corporation
PO Box 3758
Tulsa, OK 74136
W. Allen Huckabay
ConocoPhillips Petroleum Company
Offshore West Africa Exploration
323 Knipp Forest Street
Houston, TX 77079-1175
George Vaught, Jr.
PO Box 13557
Denver, CO 80201-3557
John Levorsen
200 North 3rd Street, #1202
Boise, ID 83702
Michael Parks
Marple's Business Newsletter
117 West Mercer St, Ste 200
Seattle, WA 98119-3960
Schlumberger
Drilling and Measurements
3940 Arctic Blvd., Ste 300
Anchorage, AK 99503
Jill Schneider
US Geological Survey
4200 University Dr.
Anchorage, AK 99508
Jack Hakkila
PO Box 190083
Anchorage, AK 99519
James Gibbs
PO Box 1597
Soldotna, AK 99669
Richard Wagner
PO Box 60868
Fairbanks, AK 99706
~
Mary Jones
XTO Energy, Inc.
Cartography
810 Houston Street, Ste 2000
Ft. Worth, TX 76102-6298
Kelly Valadez
Tesoro Refining and Marketing Co.
Supply & Distribution
300 Concord Plaza Drive
San Antonio, TX 78216
Jerry Hodgden
Hodgden Oil Company
408 18th Street
Golden, CO 80401-2433
Kay Munger
Munger Oil Information Service, Inc
PO Box 45738
Los Angeles, CA 90045-0738
Trustees for Alaska
1026 West 4th Ave., Ste 201
Anchorage, AK 99501-1980
Ciri
Land Department
PO Box 93330
Anchorage, AK 99503
Gordon Severson
3201 Westmar Cr.
Anchorage, AK 99508-4336
Kevin Tabler
Unocal
PO Box 196247
Anchorage, AK 99519-6247
Kenai National Wildlife Refuge
Refuge Manager
PO Box 2139
Soldotna, AK 99669-2139
Cliff Burglin
PO Box 131
Fairbanks, AK 99707
Bernie Karl
t<&K Recycling Inc.
PO Box 58055
.rbanks, AK 99711
.
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North Slope Borough
PO Box 69
Barrow, AK 99723
Williams Thomas
Arctic Slope Regional Corporation
Land Department
PO Box 129
Barrow, AK 99723