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8/24/2004 Orders File Cover Page.doc
(
INDEX CONSERVATION ORDER NO. 534
Beaver Creek Field Waiver of Certain Wellhead Equipment Requirement
1. August 8, 2004 Marathons' Request for Waiver of Certain Wellhead Equipment
Requirement
2. August 26,2004 Notice of Hearing, Affidavit of publication, e-mail
Distribution list, bulk mailing
Conservation Order No. 534
f
STATE OF ALASKA
ALASKA OIL AND GAS CONSERVATION COMMISSION
333 West 7th Avenue, Suite 100
Anchorage Alaska 99501
Re: Application by Marathon Oil Co. for
Waiver of Certain Wellhead Equipment
Requirements of20 AAC 25.200 for.
Beaver Creek Field wells.
)
)
)
)
)
Beaver Creek Field: All Pools
Conservation Order No. 534
October 4, 2004
IT APPEARING THAT:
1. By letter dated August 8, 2004, Marathon Oil Company ("Marathon"), the field
operator, applied to the Alaska Oil and Gas Conservation Commission
("AOGCC" or "Commission") for waiver of certain wellhead equipment
requirements of 20 AAC 25.200 for Beaver Creek Field wells.
2. Notice of opportunity for a public hearing on the application was published in the
Anchorage Daily News on August 6, 2004.
3. No request for a hearing was received.
4. No written comments on the application were received.
FINDINGS
1. 20 AAC 25.200 requires that wellhead equipment include valves and gauges on
tubing and all well annuli.
2. An AOGCC field inspection revealed that a number of Beaver Creek Field
wellheads are not equipped with valves and gauges on all well annuli, and are
thus not in compliance with 20 AAC 25.200.
3. 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.
4. Low pressure in the inner annulus of Beaver Creek Field wells means that there is
little risk of overpressuring the outer annulus.
5. Well tubulars in Beaver Creek Field wells are of sufficient burst pressure rating to
contain the full range of reasonably anticipated well pressures.
Conservation Order 534
October 4, 2004
Page 2 of2
6. The wellheads of many Beaver Creek Field wells were installed in cellars below
ground level, making access to the outer annulus difficult and somewhat
hazardous.
(
CONCLUSIONS
1. Operation of subject Beaver Creek Field wells without valves and gauges will not
compromise well control or safety.
2. Where appropriate, during future well workovers Marathon may retrofit Beaver
Creek Field wells with equipment sufficient to bring the subject wells into
compliance with 20 AAC 25.200.
NOW THEREFORE IT IS ORDERED
1. Pursuant to 20 AAC 25.505, Marathon's application for waiver of 20 AAC
25.200, requiring valves and gauges on all well annuli, is hereby granted. This
waiver applies to the following Beaver Creek Field wells:
BC6
BC9
BC 10
BC 11
BC 13
2. Where appropriate, as part of future well workovers, the Commission may require
Marathon to retrofit the subject wells with valves and gauges so that the wells
comply with 20 AAC 25.200.
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 Wed man
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
David McCaleb
IHS Energy Group
GEPS
5333 Westheimer, Ste 100
Houston, TX 77056
Robert Gravely
7681 South Kit Carson Drive
Littleton, CO 80122
George Vaught, Jr.
PO Box 13557
Denver, CO 80201-3557
Richard Neahring
NRG Associates
President
PO Box 1655
Colorado Springs, CO 80901
John Levorsen
200 North 3rd Street, #1202
Boise,ID 83702
Samuel Van Vactor
Economic Insight Inc.
3004 SW First Ave.
Portland, OR 97201
Michael Parks
Marple's Business Newsletter
117 West Mercer St, Ste 200
Seattle, WA 98119-3960
Schlumberger
Drilling and Measurements
2525 Gam bell Street #400
Anchorage, AK 99503
David Cusato
200 West 34th PMB 411
Anchorage, AK 99503
Ciri
Land Department
PO Box 93330
Anchorage, AK 99503
Jill Schneider
US Geological Survey
4200 University Dr.
Anchorage, AK 99508
Jack Hakkila
PO Box 190083
Anchorage, AK 99519
Darwin Waldsmith
PO Box 39309
Ninilchick, AK 99639
Kenai National Wildlife Refuge
Refuge Manager
PO Box 2139
Soldotna, AK 99669-2139
Penny Vadla
399 West Riverview Avenue
Soldotna, AK 99669-7714
Cliff Burglin
PO Box 70131
Fairbanks, AK 99707
Bernie Karl
K&K Recycling Inc.
PO Box 58055
Fairbanks, AK 99711
North Slope Borough
PO Box 69
Barrow, AK 99723
øæl/e~ / /
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CO Order 533,534,535
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Subject: CO Order 533, 534, 535
From: Jody Colombie <jody - colombie@admin.state.ak.us>
Date: Tue, 05 Oct 2004 11: 15 :28 -0800
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STATE OF ALASKA
ADVERTISING
ORDER
NOTICE TO PUBLISHER (
INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO.. CERTIFIED
AFFIDAVIT OF PUBLICATION (PART2 OF THIS FORM) WITH ATTACHED COpy OF
ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE
(
ADVERTISING ORDER NO.
AO-02514009
F AOGCC
R 333 W 7th Ave, Ste 100
0 Anchorage, AK 99501
AGENCY CONTACT
DATE OF A.O.
Jody Colombie
PHONE
August 24, 2004
PCN
M
(907) 793 -1 ??1
DATES ADVERTISEMENT REQUIRED:
¿ Anchorage Daily News
PO Box 149001
Anchorage,AK99514
August 26, 2004
THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS
ENTIRETY ON THE DATES SHOWN.
SPECIAL INSTRUCTIONS:
Type of Advertisement X Legal
0 Display
Advertisement to be published was e-mailed
D Classified DOther (Specify)
SEE ATTACHED
REF TYPE
1 VEN
2 ARD
3
NUMBER
AOGCC, 333 W. 7th Ave., Suite 100
Anchorage, AK 99501
AMOUNT
DATE
I PAGE 1 OF I TOTAL OF I
2 PAGES ALL PAGES $
COMMENTS
02910
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02140100
73451
DIVISION APPROVAL:
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Consolidated Notice of Public Hearing
STATE OF ALASKA
Alaska Oil and Gas Conservation Commission
Re:
Wells in the Kenai, Beaver Creek, and Sterling Fields
Application for an order waiving the provisions of 20 AAC 25.200 (c)
Marathon Oil Company ("MOC"), by letter dated August 8, 2004 has requested a
waiver from the provisions of 20 AAC 25.200 (c) for a number of wells in the Kenai,
Beaver Creek, and Sterling Fields. 20 AAC 25.200 (c) requires that wellhead equipment
include appropriate gauges and valves on well tubing and all well annuli. A recent
Alaska Oil and Gas Conservation Commission ("Commission") field inspection revealed
that a number of wells in the subject fields do not have valves and gauges on all well
annuli. These wells are therefore not in compliance with 20 AAC 25.200 (c).
The subject wells are located within Sections 6, 7, and 18, Township 4 North,
Range 11 West; Sections 4, 7, 31 and 32, Township 5 North, Range 11 West; Section 34,
Township 7 North, Range 10 West; and Section 9, Township 5 North, Range 10 West.
The Commission has tentatively set a consolidated public hearing on this
application for September 30, 2004 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 consolidated hearing be held by filing a written
request with the Commission no later than 4:30 pm on September 7,2004.
If a request. for a hearing is not timely filed, the Commission will consider the
issuance of an order without a hearing. To learn if the Commission will hold the public
hearing, please call 793-1221.
In addition, a person may submit written comments regarding this application to
the Alaska Oil and Gas Conservation Commission at 333 West 7th Avenue, Suite 100,
Anchorage, Alaska 99501. Written comments must be received no later than 4:30 pm on
September 24, 2004 except that if the Commission decides to hold a public hearing,
written comments must be received no later than 9:00 am on September 30, 2004.
Published Date: August 26, 2004
AD # 02514009
(J
Anchorage Daily News
Affidavit of Publication
1001 Northway Drive, Anchorage. AK 99508
)
8/27(2004
PRICE OTHER OTHER OTHER OTHER OTHER GRAND
AD# DATE PO ACCOUNT PER DAY CHARGES CHARGES#2 CHARGES #3 CHARGES#4 CHARGES #5 TOTAL
270658 08/26/2004 02514009 STOF0330 $192.72
$192.72 $0.00 $0.00 $0.00 $0.00 $0.00 $192.72
STATE OF ALASKA
THIRD JUDICIAL DISTRICT
Teresita Peralta, 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.
Signed
YrJ~4~à
Subscribed and sworn to me before this date:
fJU!JtWl} 3). :1 DOY
Notary Public in and for the State of Alaska.
Third Division. Anchorage, Alaska
MY COMMISSION EXPIRES: °0 y:JiXi 7
U.. h J ;J Aid a \\ttU./..
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LW) (.A~V. , {)M~{)\\~(';1;5::¡.:'Æ.t~",
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02-902 (Rev. 3/94)
Publisher/( ;inal Copies: Department Fiscal, Departme( "'.eceiving
AO.FRM
STATE OF ALASKA
ADVERTISING
ORDER
NOTICE TO PUBLISHER
ADVERTISING ORDER NO.
INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED AO 02 514009
AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COpy OF -
ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE
F AOGCC
R 333 West 7th Avenue, Suite 100
0 Anchorage, AK 99501
M 907-793-1221
AGENCY CONTACT
Jod)' Colombie
PHONE
DATE OF A.O.
AQpUst ?4, ?004
pcrf"'
(907) 793 -1 ??1
DATES ADVERTISEMENT REQUIRED:
¿ Anchorage Daily News
PO Box 149001
Anchorage, AK 99514
August 26, 2004
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
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
2004, and thereafter for - consecutive days, the last
publication appearing on the
day of
. 2004, 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
2004,
Notary public for state of
My commission expires
02-901 (Rev. 3/94)
AO.FRM
RE: Notice
~,
Subject:RE: Notice
From: legalads <legalads@adn.com>
Date: Tue, 24 Aug 200415:37:51 -0800
Hi Jody:
Following is the confirmation information on your legal notice. Please let me know if you have any questions or
need additional information.
Account Number: STOF 0330
Legal Ad Number: 270658
Publication Date( s): August 26, 2004
Your Reference or PO#: 02514009
Cost of Legal Notice: $192.72
Additional Charges
WebUnk:
E-Mail Link:
Bolding:
Total Cost to Place Legal Notice: $192.72
Ad Win Appear on the web: www.adn.com: :xxxx
Ad Win Not Appear on the web: www.adn.com:
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, August 24, 2004 3:21 PM
To: legalads
Subject: Notice
«File: Ad Order form.doc»«File: MaC Valve and GauQe Notice.doc»
Please publish on 8/26/04.
Jody
1 of 1
8/24/20043:39 PM
Notice
~.
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Subject: Notice
From: Jody Colombie <jody - colombie@admin.state.ak.us>
Date: Tue. 24 Aug 2004 15:21:44 -0800
Please publish on 8/26/04.
Jody
. :-...------
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1 of 1
8/24/2004 3 :23 PM
Notice
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Subject: Notice
From: Jody Colombie <jody_colombie@admin.state.ak.us>
Date: Tue,24 Aug2004 15:22:27 -0800
Please publish on the website.
Jody
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1 of 1
8/24/20043:23 PM
Notice
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Subject: Notice
From: Jody Colombie <jody- colombie@admin.state.ak.us>
D~te: Tue, 24 Aug 200415 :23 :08 -0800
lof2
8/24/20043:23 PM
Notice
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20f2
8/24/2004 3 :23 PM
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.
Anchorag~, 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
Anchòrage, 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
//4/ ;¡'c;¿'
7/V ?ds-.ó V
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E ~ rl r-=--\ l~\ ~ ,1'1 r1..
1',\ I, I~. ¡nJlv¡ fA',
ü\ U5¿ß~~) u~LQ~
FRANK H. MURKOWSKI, GOVERNOR
AI.lASIiA. OIL AND GAS
CONSERVATION COMMISSION
333 W. ¡rn AVENUE. SUITE 100
ANCHORAGE, ALASKA 99501-3539
PHONE (907) 279-1433
FAX (907) 276-7542
July 15, 2004
Mr. A. Ben Schoffmann
Operations Superintendent
Marathon Oil Company
P.O. Box 196168
llnchorage,AJ( 99519-6168
Dear Mr. Schoffmann:
The Alaska Oil and Gas Conservation Commission ("AOGCC" or "Commission")
recently completed field inspections of Marathon Oil Company ("MOC") wells in the
Kenai, West Fork, and Beaver Creek Fields. These inspections showed that a number of
MOC wells in the Kenai, West Fork, and Beaver Creek Fields that were completed after
4/13/1980 do not have valves and gauges on all well annuli.
20 AAC 25.200 (c), which became effective on 4/13/1980, requires that wellhead
equipment include appropriate gauges and valves on well tubing and all well annuli. The
wells in question therefore are not in compliance with AOGCC regulations.
If you wish to request a waiver from the provisions of20 AAC 25.200 (c) for these wells,
you may submit, by letter, an application for an order under 20 AAC 25.505 waiving
those provisions. Please submit your application to the Commission no later than August
31, 2004. Please be advised that among the alternatives the Commission may consider in
such an order, if issued, would be a requirement that future MOC workover operations on
individual subject wells include installation of appropriate annulus valves or gauges to
bring the wells into compliance with 20 AAC 25.200 (c).
Very truly yours,
Daniel T. Seamount, Commissioner
'f""""'I
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Alaska Region
Domestic Production
P.O. Box 196168
Anchorage, AK 99519-6168
Telephone 907/561-5311
Fax 907/564-6489
M Marathon
MARATHON Oil Company
August 8, 2004
Winton Aubert
Alaska Oil & Gas Conservation Commission
333 West ih Ave, Suite 100
Anchorage, AK 99501
Reference: Order # 20 MC 25.200 (c)
Dear Mr. Aubert
We would like to request a wavier outlined in the provision on 20 MC 25.200 (c). Underthe
provision 20 MC 25.505 an order requesting a wavier from order 20 MC 25.200 (c) might
be granted. The wells listed on the following page do not have all the valves and gauges
necessary to monitor the pressure on the secondary annuli.
All the wells listed have been drilled or worked over since 1980. The list includes wells from
the Kenai Gas Field, Beaver Creek Production and Cannery Loop Gas Fields.
Marathon is aware that we could be requested, if the requested wavier is granted, that
future wells will be required to have the necessary valve and gauges installed to bring
the well into compliance with 20 MC 25.200 (c).
If you require further information, I can be reached at 907-283-1308 or bye-mail at
wecissell@marathonoil.com.
"
~
W ay~e ¿issell
Engineering Technician
By Certified Mail
Well List:
Kenai Gas Field
KU 34-32
KU 14-32
KU 13-6B
KU 14X6
KBU 23-X6
KBU 31-7RD
KU 31-7X
KBU 24-6
KU 11-17
KU 24-7
KBU 33-7
KBU 11-8
KTU 13-5
KU 24- 5RD
KBU 43-6RD
KTU 32-7
KBU 33-6
KTU 24-6H
KBU 41-7X
KBU 44-6
KTU 32-7H
KBU 43-7X
KBU 33-6X
(
(
Beaver Creek Production Facilitv
BC6
BC9
BC 10
BC 11
BC13
Cannery Loop Gas Field
CLU 1 RD
CLU 3
CLU4
CLU 5
CLU 6
CLU 7
CLU 8
Sterlina Gas Field
SU 41-15
SU 32-9
ì LA- I¿~'l_&\~ he-I J