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Home My WebLink AboutAIO 024AREA INJECTION ORDER NO. 24 Prudhoe Bay Field Borealis Oil Pool 1) February 10, 2002 BPXA's Letter from Bruce Smith Dual Injector Integrity 2) February 27, 2002 BPXA's Application for Borealis Pool Rules & Area Injector Orders 3) March 4, 2002 Notice of Hearing, Publication, affidavit from newspaper, copy of bulk mailing list 4) N/A Various E-Mails 5) N/A Sign In Sheets for all meetings and hearings 6) April 11, 2002 BPXA's (Revised) Application for Borealis Pool Rules & Area Injector Orders 7) April 5, 11, 2002 & May 2, 2002 Transcripts 8) June, 2004 Backup paperwork for the Administrative Approval AIO 24.001. 9) September 27, 2004 Backup paperwork for the Administrative Approval AIO 24.002. 10) September 27, 2004 AOGCC Proposals to Amend Underground Injection Orders to Incorporate Consistent Language Addressing the Mechanical Integrity of Wells 11) December 15, 2005 BPXA request for Administrative Approval AIO 24.004. 12) January 26, 2005 BPXA request for extension of Admin Approval for wells V-11, L-105 and L-108 AIO 24.003. 13) February 9, 2016 BPXA request to amend AIO 24.004 for continued gas injection into PBU L-105. (AIO 24-004 Cancelled) Corrected 3/8/16. AREA INJECTION ORDER NO. 24 ) , STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7th Avenue, Suite 100 Anchorage Alaska 99501 Re: THE APPLICATION OF BP EXPLORATION (ALASKA) INC. for an order to allow for underground injection of fluids within the Borealis Oil Pool, Prudhoe Bay Field, North Slope, Alaska IT APPEARING THAT: ) Area Inj ection Order No. 24 ) ) Prudhoe Bay Field ) Borealis Oil Pool ) ) ) May 29, 2002 1. By letter dated February 28, 2002, BP Exploration (Alaska), Inc. ("BPXA") in its capacity as Borealis Operator and Unit Operator of the Prudhoe Bay Unit ("PBU") requested an order from the Alaska Oil and Gas Conservation Commission ("Commission") to define a proposed Borealis Oil Pool within the PBU and to prescribe rules governing the development and operation of the pooL Concurrently, BPXA requested authorization for water injection to enhance recovery from the. Borealis Oil Pool. . 2. The Commission published notice of opportunity for public hearing in the Anchorage Daily News on March 4,2002. 3. The Commission held a public hearing April 5, 2002 at 9:00 am, that was continued on April 11,2002 at 9:00 am, and May 2,2002 at 9:15 am, at the Alaska Oil and Gas Conservation Commission at 333 West ih Avenue, Suite 100, Anchorage, Alaska 99501. 4. The Commission received no protests to BPXA's application for the Area Injection Order. 5. 20 AAC 25.460 authorizes the Commission to issue an order permitting the underground injection of fluids on an area basis for wells within the same field, facility site, reservoir, project, or similar area. 6. Concurrent with this Area Injection Order 24 ("AIO 24") the Commission is issuing Conservation Order 471 to govern the development and operation of the Borealis Oil Pool. FINDINGS: 1. BPXA is the operator of the Borealis Oil Pool, in the Prudhoe Bay Field. !IJ~1 2. q 20. O/~1- ,)"~ j\ '~:' Ç..' - Area Injection Order ~ ) May 29, 2002 ) Page 2 2. Project Area and Pool Description: a. Proposed Injection Area: BPXA requested authorization to inject fluids for the purpose of enhanced recovery operations in the Borealis Oil Pool, Prudhoe Bay Field, North Slope Alaska. b. Borealis Oil Pool: The Borealis Oil Pool is defined as the accumulations of hydrocarbons common to and correlating with the interval between 6534' and 6952' measured depth ("MD") in the West Kuparuk State 1 well. 3. Operators/Surface Owners: BPXA provided all operators and surface owners within one-quarter mile of the Borealis Oil Pool with a copy of the application for injection. Those operators are: BPXA, operator of MPU and Prudhoe Bay Unit, Phillips Alaska, Inc., operator of the Kuparuk River Unit, and J. Andrew Bachner. The State of Alaska, Department of Natural Resources is the only affected surface owner. 4. Description of Operation: Two L Pad injectors have been drilled and completed and should be available to begin water injection upon approval of this Area Injection Order. Development plans include drilling a series of production and injection wells beginning at L Pad then moving to V Pad. Between 20-50 production and injection wells are projected. Additional wells may be drilled from Z Pad. Peak water injection is expected to be between 20,000 and 40,000 barrels of water per day ("bwpd"). Produced water from GC-2 will be utilized for injection. Peak annualized production is expected to be between 10,000 and 15,000 barrels of oil per day ("bopd"). 5. Geologic Information: a. Available Data: Seismic data and well records have been used to characterize the Borealis Pool accumulation. b. Stratigraphy: The affected reservoir is the early Cretaceous-aged Kuparuk River Formation ("Kuparuk"), which consists of very fine to medium grained quartz- rich sandstone, interbedded with siltstone and mudstone. Within the Borealis Oil Pool, BPXA divides the Kuparuk into four stratigraphic intervals that are designated, from oldest to youngest, A, B, C and D. The C interval contains the primary reservoir sands of the Borealis Pool, and secondary accumulations occur in the A sands. c. Structure Overview: Within the Borealis Oil Pool, the top of the Kuparuk lies between 6,200 and 6,900 feet true vertical depth subsea ("TVD subsea"). The structure of interest is a northwest-to-southeast trending antiform that is broken by two sets of faults: an older set of northwest-southeast trending faults and a younger set of north-south striking faults. The complexity of faulting within the Borealis Pool suggests the reservoir may be divided into separate compartments. ~;'t Area Injection Order"- ) May 29, 2002 ) Page 3 d. Trapping Mechanism: Hydrocarbons are structurally and stratigraphically trapped within the Borealis Oil Pool. The oil accumulation is bounded to the southwest by northwest and north-south trending faults and the oil/water contact ("OWC"). To the northeast, the accumulation is limited by the down-dip intersection of the top of the reservoir with the OWC and with a series of north- south trending faults. To the southeast, the reservoir is truncated by an intra- formational unconformity and onlap onto the Prudhoe high. To the northeast, the reservoir sand intervals degrade to non-reservoir quality. e. Confining Intervals: Upper confinement for the Kuparuk reservoir sands within the Borealis Pool is provided by the impermeable shales and siltstones of the Kuparuk D interval, the Kalubik Formation, and the HRZ, which have a combined thickness of that exceeds 300 feet. Lower confinement is provided by shale and siltstone of the Miluveach and Kingak Formations. 6. Well Logs: The logs of existing injection wells are on file with the Commission. 7. Mechanical Integrity: Cement bond logs have been run on wells L-115 and L-117; both demonstrate isolation of injected fluids to the Kuparuk. The L-115 and L-117 wells are completed in accordance with 20 AAC 25.412. A state witnessed MIT is required on wells prior to injection startup. In drilling all Borealis injection wells, the casing is pressure tested in accordance with 20 AAC 25.030. Injection well tubing/casing annulus pressures will be monitored and recorded on a regular basis. The Borealis Pool injection wells will be designed to comply with the requirements specified in 20 AAC 25.412. 8. Injection Fluids: Type of Fluid/Source: BPXA is requesting authorization to inject the following fluids in the Borealis Oil Pool within the Prudhoe Bay Field: a. produced water from Borealis or Prudhoe Bay Unit production facilities for the purposes of pressure maintenance and enhanced recovery; b. non-hazardous water collected from Borealis well house cellars and standing ponds; c. source water from a seawater treatment plant. Water Composition and Compatibility with F ormation: Water composition of Borealis and GC-2 waters were provided. Produced water from GC-2 will be used as the primary water source for Borealis injection. Produced water from GC-2 is used in injection programs at Aurora and similar water from GC-l is used for injection programs at Midnight Sun. These Kuparuk developments, though different pools, have had no compatibility issues between source water and injection zones of interest. Core, log and pressure-buildup analyses indicate no significant problems with clay swelling or compatibility with in-situ fluids. BPXA analysis of the NWE 1-01 and L-I0l cores indicates relatively low clay IÍþ 0. 200)ì N Q!J. "¡~t Area Injection Order ¿.., ) May 29, 2002 ) Page 4 content (5 - 35% by volume), primarily in the form of illite. Petrographic analysis indicates that clay volumes in the better quality sand sections (>20 md) are in the range of 3 - 6%. Clay volumes increase to approximately 6 - 12% in rock with permeabilities in the range of 10 - 20 md. Below 10 md, clay volumes increase to a range of 12 - 20%. Most of the identified clay is present as. intergranular matrix, having been intermixed with the sand through burrowing. The overall clay composition is a mixture of roughly equal amounts of kaolinite, illite and mixed layer illite/smectite. No chlorite was reported during petrographic analysis. The presence of iron-bearing minerals suggests that the use of strong acids should be avoided in breakdown treatments, spacers, etc. Water from the seawater treatment plant has been successfully used for injection within the Kuparuk of the Pt. McIntyre Oil Pool. Geochemical modeling indicates that a combination of GC-2 produced water and connate water is likely to form calcium carbonate and barium sulfate scale in the production wells and downstream production equipment. Scale precipitation will be controlled using scale inhibition methods similar to those used at Kuparuk River Unit and Milne Point Unit. The maximum water injection is estimated at 20,000 to 40,000 bwpd. 9. Injection Pressures: The expected average surface water injection pressure for the project is 2300 psig. The estimated maximum surface injection pressure is 2800 psig. The resulting bottom hole pressure will be limited by hydraulic pressure losses in the well tubing, with a maximum expected bottom hole pressure of 5800 psI. 10. Fracture Information: The L-1 0 1 well was fracture stimulated in the Kuparuk C sand at the Borealis Pool, with a formation breakdown pressure of 4290 psi, which calculates to a fracture gradient of 0.65 psi/ft at initial reservoir conditions. This data agrees with data from offset fields containing wells completed in the Kuparuk. The Kalubik and HRZ shales overlie the Kuparuk at the Borealis Pool. The HRZ is a thick shale sequence, which tends to behave as a plastic medium and can be expected to contain significantly higher pressures than sandstones of the Kuparuk. Mechanical properties determined from log and core data for the HRZ and Kalubik intervals indicate a fracture gradient from approximately 0.8 to 0.9 psi/ft. Dipole Sonic evaluations of these strata have measured values equal to or greater than 0.99 psi/ft confining stress. The Kuparuk is underlain by the MiluveachJKingak shale sequence. A leakoff test in the Kingak shale formation demonstrated leakoff at a gradient of approximately 0.85 psi/ft. The expected maximum injection pressure in the Borealis wells will not initiate or propagate fractures through the confining strata, and, therefore, will not allow injection or formation fluid to enter any freshwater strata. There is no evidence of ,~ (- Area Injection Order ~-. ) May 29, 2002 ) Page 5 injection out of zone for similar Kuparuk waterflood operations on the North Slope. Water injection operations at the Borealis Pool are expected to be above the Kuparuk parting pressure to enhance injectivity and improve recovery of oil. Fracture propagation models confirm that injection above the parting pressure will not exceed the integrity of the confining zone. 11. Aquifer Exemption: On July 11, 1986, the Commission approved Aquifer Exemption Order 1 ("AEO-l") for Class II injection activities within the Western Operating Area of the Prudhoe Bay Unit. The Borealis Pool is entirely within the area covered by AEO-1. 12. Hydrocarbon Recovery: Recovery from waterflooding will be in excess of 10% of the original oil in place, relative to primary depletion. Further discussion of hydrocarbon recovery and reservoir information are contained in CO 471 and BPXA's application for pool rules and area injection order. 13. Mechanical Condition of Adjacent Wells: All wells drilled into the Borealis Oil Pool have been drilled in conformance with Commission regulations. Two wells were drilled in 1998 and the remaining wells since 2001. Completion reports that include cement records are on file with the Commission and contain sufficient information to verify the mechanical condition of wells within a one-quarter radius of a proposed injection well. CONCLUSIONS: 1. The application requirements of20 AAC 25.402 have been met. 2. An area injection order is appropriate for the proposed water injection project for the Borealis Pool project under 20 AAC 25.460. 3. Information provided in this application and within the concurrent application for pool rules shows that water injection will significantly improve recovery. 4. The annual surveillance report required by CO 471 will keep the Commission apprised of the performance of the injection project and EOR process evaluation. 5. Injection of enhanced recovery fluids at pressures above fracture gradient may be necessary in order to provide sufficient pressure support. The fracture gradient of the Borealis Oil Pool is significantly below the recorded leakoff pressures of confining shale intervals and as such the water will preferentially stay within zone. 6. Injected fluids will be confined within the appropriate receiving intervals by impermeable lithology, cement isolation of the wellbore and appropriate operating conditions. 7. Reservoir surveillance, operating parameter surveillance and mechanical integrity tests will demonstrate appropriate performance of the enhanced oil recovery project or disclose possible abnormalities. nu; Nî, '! f.:\ 2. n r1.:~ v,; {." ç.ß !.'V'( Area Injection Order~. ) May 29, 2002 J Page 6 8. The Borealis Oil Pool injection wells are designed to comply with the mechanical integrity requirements specified in 20 AAC 25.412. NOW, THEREFORE, IT IS ORDERED that the underground injection of fluids pursuant to the project described in BPXA's application is permitted in the following area, subject to the conditions, limitations, and requirements established in the rules set out below and statewide requirements under 20 AAC 25 (to the extent not superseded by these rules or the Borealis Oil Pool rules): Umiat Meridian TI2N-RI0E: TI2N-RIIE: TIIN-RIIE: TIIN-RI2E: TI2N-RI2E: ADL 25637 Sec 13, 24 ADL 47447 Sec 16 (SW/4 and W/2 NW/4 and W/2 SE/4), 21, 22 SW/4 and W/2 NW/4 and S/2 SE/4 ADL 47446 Sec 17, 18, 19,20 ADL 28238 Sec 26 S/2 and W/2 NW/4 and SE/4 NW/4, 35, 36 ADL 28239 Sec 27, 28, 33, 34 ADL 47449 Sec 29, 30, 32 ADL 28240 Sec 1, 2, 11, 12 ADL 28241 Sec 3, 4, 9, 10 ADL 28245 Sec 13, 14, 24 ADL 28244 Sec 15 ADL 28246 Sec 25 ADL 28261 Sec 9 W/2 ADL 47450 Sec 5 S/2, 6 S/2 and NW/4 and W/2 NE/4, 7, 8 ADL 28263 Sec 16 W/2, 21 W/2 ADL 28262 Sec 17, 18, 19,20 ADL 47452 Sec 28 W/2, 33 W/2 ADL 47453 Sec 29,30,31,32 ADL 28259 Sec 31 W/2 and W/2 SE/4 JjJI\~ ? n 20fL~ ,. ~- Ad ,v ':.1 :. . v't Area Injection Order k, ) May 29, 2002 ) Page 7 Rule 1 Authorized In.iection Strata for Enhanced Recovery Injection of authorized fluids for purposes of pressure maintenance and enhanced recovery is permitted into strata that are common to, and correlate with, the interval between 6534' and 6952' MD in the West Kuparuk State #1 well in the Prudhoe Bay Field. Rule 2 Authorized In.iection Fluids Fluids authorized for injection within the affected area are: a. produced water from Borealis or Prudhoe Bay Unit production facilities for the purposes of pressure maintenance and enhanced recovery; b. non-hazardous water collected from Borealis well house cellars and standing ponds; and c. source water from a seawater treatment plant. Rule 3 Fluid In.iection Wells The underground injection of fluids must be through a well that has been permitted for drilling as a service well for injection in conformance with 20 AAC 25.005, or through a well approved for conversion to a service well for injection in conformance with 20 AAC 25.280 and 20 AAC 25.412. The application to drill or convert a well for injection must be accompanied by sufficient information to verify the mechanical condition of wells within one-quarter mile radius. The information must include cementing records, cement quality log or formation integrity test records. Rule 4 Monitorin2; the Tubin2;-Casin2; Annulus Pressure Variations The tubing-casing annulus pressure and injection rate of each injection well must be checked at least weekly to confirm continued mechanical integrity. Rule 5 Demonstration of Tubin2;-Casin2; Annulus Mechanical Inte2;rity A schedule must be developed and coordinated with the Commission that ensures that the tubing-casing annulus for each injection well is pressure tested prior to initiating injection, following well workovers affecting mechanical integrity, and at least once every four years thereafter. Rule 6 Notification of Improper Class II In.iection Injection of fluids other than those listed in Rule 2 without prior authorization is considered improper Class II injection. Upon discovery of such an event, the operator must immediately notify the Commission, provide details of the operation, and propose actions to prevent recurrence. Additionally, notification requirements of any other State "Þ 0 200!i1 ~" " . ',.'I, c"- <Y- . '~ Area fujection Order~.. } May 29, 2002 Page 8 or Federal agency remain the operator's responsibility. Rule 7 Other conditions a. It is a condition of this authorization that the operator comply with all applicable Commission regulations. b. The Commission may suspend, revoke, or modify this authorization if injected fluids fail to be confined within the designated injection strata. Rule 8 Administrative Action Unless notice and public hearing is otherwise required, the Commission may administratively waive the requirements of any rule stated above or administratively amend any rule as long as the change does not promote waste or jeopardize correlative rights, is based on sound engineering and geoscience principles, and will not result in an increased risk of fluid movement into freshwater. DONE at Anchorage, Alaska and dated May 29,2002. ~ ~rL' ~1(1( C~m~y O~c~li Taylor, Chair ð .... Alaska Oil and Gas Conservation Commission ~~~/ ~~ Daniel T. Seamount, Jr., Commissioner Alaska Oil and Gas Conservation Commission AS 31.05.080 provides that within 20 days after receipt of written notice of the entry of an order, a person affected by it may file with the Commission an application for 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 day period for appeal to Superior Court runs from the date on which the request is deemed denied (i.e., 10th day after the application for rehearing was filed). 'ß fì 2nn1 t~!.) d L' ':,' NY PUBLIC LIBRARY DIV E, GRAND CENTRAL STATION POBOX 2221 NEW YORK, NY 10163-2221 US MIN MGMT SERV, CHIEF OCS STATS & INFO 381 ELDEN ST MS 4022 HERNDON, VA 20170-4817 TECHSYS CORP, BRANDY KERNS PO BOX 8485 GATHERSBURG, MD 20898 SD DEPT OF ENV & NA TRL RESOURCES, OIL & GAS PROGRAM 2050 W MAl N STE #1 J RAPID CITY, SD 57702 LINDA HALL LIBRARY, SERIALS DEPT 5109 CHERRY ST KANSAS CITY, MO 64110-2498 IOGCC, POBOX 53127 OKLAHOMA CITY, OK 73152-3127 BAPIRAJU 335 PINYON LN COPPELL, TX 75019 STANDARD AMERICAN OIL CO, AL GRI FFITH POBOX 370 GRANBURY, TX 76048 H J GRUY, ROBERT RASOR 333 CLAY STREET SUITE 3850 HOUSTON, TX 77002 CHEVRON, PAUL WALKER 1301 MCKI NNEY RM 1750 HOUSTON, TX 77010 ) OFFICE OF THE GOVERNOR, JOHN KATZ STE 518 444 N CAPITOL NW WASHINGTON, DC 20001 LIBRARY OF CONGRESS, STATE DOCUMENT SECTION EXCH & GIFT DIV 10 FIRST ST SE WASHINGTON, DC 20540 US GEOLOGICAL SURVEY, LIBRARY NATIONAL CTR MS 950 RESTON, VA 22092 BP EXPLORATION (ALASKA), INC., LIBRARY/INFO CTR POBOX 87703 CHICAGO,IL 60680-0703 ALFRED JAMES III 107 N MARKET STE 1000 WICHITA, KS 67202-1811 R E MCMILLEN CONSULT GEOL 202 E 16TH ST OWASSO, OK 74055-4905 US DEPT OF ENERGY, ENERGY INFORMATION ADMINISTRATION MIR YOUSUFUDDIN 1999 BRYAN STREET STE 1110 DALLAS, TX 75201-6801 XTO ENERGY, MARY JONES 810 HOUSTON ST STE 2000 FORT WORTH, TX 76102-6298 PURVIN & GERTZ INC, LIBRARY 2150 TEXAS COMMERCE TWR 600 TRAVIS ST HOUSTON, TX 77002-2979 OIL & GAS JOURNAL, BOB WILLIAMS 1700 W LOOP SOUTH STE 1000 HOUSTON, TX 77027 ') ARENT FOX KINTNER PLOTKIN KAHN, LIBRARY WASHINGTON SQ BLDG 1050 CONNECTICUT AV NW WASHINGTON, DC 20036-5339 U S DEPT OF ENERGY, PHYLLIS MARTIN MS EI823 1000 INDEPENDENCE SW WASHINGTON, DC 20585 DPC, DANIEL DONKEL 2121 NORTH BA YSHORE DR #616 MIAMI, FL 33137 ILLINOIS STATE GEOL SURV, LIBRARY 469 NATURAL RESOURCES BLDG 615 E PEABODY DR CHAMPAIGN, IL 61820 UNIV OF ARKANSAS, SERIALS DEPT UNIV LIBRARIES FAYETTEVILLE, AR 72701 OIL & GAS JOURNAL, LAURA BELL POBOX 1260 TULSA, OK 74101 DEGOL YER & MACNAUGHTON, MIDCONTINENT DIVISION ONE ENERGY SQ, STE 400 4925 GREENVILLE AVE DALLAS, TX 75206-4083 SHELL WESTERN E&P INC, G.S. 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SCOTT PFOFF 10333 RICHMOND AVENUE, STE 710 HOUSTON, TX 77042 JUN 2 9 2004 PETRAL CONSULTING CO, DANIEL L LIPPE 9800 RICHMOND STE 505 HOUSTON, TX 77042 MARATHON OIL COMPANY, GEORGE ROTHSCHILD JR RM 2537 PO BOX4813 HOUSTON, TX 77210 EXXON EXPLORATION CO., T E ALFORD PO BOX 4778 HOUSTON, TX 77210-4778 PETR INFO, DAVID PHILLIPS POBOX 1702 HOUSTON, TX 77251-1702 EXXONMOBIL PRODUCTION COMPANY, GARY M ROBERTS RM 3039 POBOX 2180 HOUSTON, TX 77252-2180 CHEVRON CHEM CO, LIBRARY & INFO CTR POBOX 2100 HOUSTON, TX 77252-9987 WATTY STRICKLAND 2803 SANCTUARY CV KATY, TX 77450-8510 INTL OIL SCOUTS, MASON MAP SERV INC PO BOX 338 AUSTIN, TX 78767 ROBERT G GRAVELY 7681 S KIT CARSON DR LITTLETON, CO 80122 US GEOLOGICAL SURVEY, LIBRARY BOX 25046 MS 914 DENVER, CO 80225-0046 ') GAFFNEY, CLINE & ASSOC., INC., LIBRARY 1360 POST OAK BLVD., STE 2500 HOUSTON, TX 77056 UNOCAL, REVENUE ACCOUNTING POBOX 4531 HOUSTON, TX 77210-4531 TEXACO EXPLORATION & PRODUCTION INC, CORRY WOOLlNGTON PO BOX 36366 HOUSTON, TX 77236 PHILLIPS PETROLEUM COMPANY, W ALLEN HUCKABAY PO BOX 1967 HOUSTON, TX 77251-1967 EXXONMOBIL PRODUCTION COMPANY, J W KIKER ROOM 2086 POBOX 2180 HOUSTON, TX 77252-2180 MARATHON OIL COMPANY, NORMA L. CALVERT POBOX 3128, Ste 3915 HOUSTON, TX 77253-3128 TESORO PETR CORP, LOIS DOWNS 300 CONCORD PLAZA DRIVE SAN ANTONIO, TX 78216-6999 XTO ENERGY, DOUG SCHULTZE 3000 N GARFIELD SUITE 175 MIDLAND, TX 79705 DIANE SUCHOMEL 10507D W MAPLEWOOD DR LITTLETON, CO 80127 C & R INDUSTRIES, INC." KURT SAL TSGAVER 7500 W MISSISSIPPI AVE STE C4 LAKEWOOD, CO 80226-4541 ) / MARK ALEXANDER 7502 ALCOMITA HOUSTON, TX 77083 EXXON EXPLOR CO, LAND/REGULATORY AFFAIRS RM 301 POBOX 4778 HOUSTON, TX 77210-4778 CHEVRON USA INC., ALASKA DIVISION ATTN: CORRY WOOLlNGTON POBOX 1635 HOUSTON, TX 77251 WORLD OIL, DONNA WILLIAMS POBOX 2608 HOUSTON, TX 77252 PENNZOIL E&P, WILL D MCCROCKLIN POBOX 2967 HOUSTON, TX 77252-2967 ACE PETROLEUM COMPANY, ANDREW C CLIFFORD PO BOX 79593 HOUSTON, TX 77279-9593 JIM WHITE 4614 BOHILL SAN ANTONIO, TX 78217 BABCOCK & BROWN ENERGY, INC., 350 INTERLOCKEN BLVD STE 290 BROOMFIELD, CO 80021 GEORGE G VAUGHT JR POBOX 13557 DENVER, CO 80201 JERRY HODGDEN GEOL 408 18TH ST GOLDEN, CO 80401 JUN 2 9 2004 NRG ASSOC, RICHARD NEHRING POBOX 1655 COLORADO SPRINGS, CO 1655 80901- PLAYER GAS CO., GARY PLAYER 1671 WEST 546 S CEDER CITY, UT 84720 BABSON & SHEPPARD, JOHN F BERGQUIST POBOX 8279 VIKING STN LONG BEACH, CA 90808-0279 US GEOLOGICAL SURVEY, KEN BIRD 345 MIDDLEFIELD RD MS 999 MENLO PARK, CA 94025 ECONOMIC INSIGHT INC, SAM VAN VACTOR PO BOX 683 PORTLAND, OR 97207 DUSTY RHODES 229 WHITNEY RD ANCHORAGE, AK 99501 FAIRWEATHER, DUANE VAAGEN 715 L STREET STE 7 ANCHORAGE, AK 99501 FOREST OIL, JIM ARLINGTON 310 K STREET STE 700 ANCHORAGE, AK 99501 STATE PIPELINE OFFICE, LIBRARY KATE MUNSON 411 W 4TH AVE, STE 2 ANCHORAGE, AK 99501 DEPT OF REVENUE, DAN DICKINSON, DIRECTOR 550 W 7TH AVE, SUITE 500 ANCHORAGE, AK 99501 ì ) RUBICON PETROLEUM, LLC, BRUCE I CLARDY SIX PINE ROAD COLORADO SPRINGS, CO 80906 US GEOLOGICAL SURVEY, LIBRARY 2255 N GEMINI DR FLAGSTAFF, AZ 86001-1698 ANTONIO MADRID POBOX 94625 PASADENA, CA 91109 SHIELDS LIBRARY, GOVT DOCS DEPT UNIV OF CALIF DAVIS, CA 95616 US EPA REGION 10, THOR CUTLER OW-137 1200 SIXTH AVE SEATTLE, WA 98101 GUESS & RUDD, GEORGE LYLE 510 L ST, STE 700 ANCHORAGE, AK 99501 DEPT OF REVENUE, OIL & GAS AUDIT DENISE HAWES 550 W 7TH A V STE 570 ANCHORAGE, AK 99501 DEPT OF ENVIRON CONSERVATION, DIV OF AIR & WATER QUALITY TOM CHAPPLE 555 CORDOVA STREET ANCHORAGE, AK 99501 DEPT OF ENVIRON CONSERVATION, DIV OF ENVIRONMENTAL HEALTH JANICE ADAIR 555 CORDOVA STREET ANCHORAGE, AK 99501 PRESTON GATES ELLIS LLP, LIBRARY 420 L ST STE 400 ANCHORAGE, AK 99501-1937 ) JOHN A LEVORSEN 200 N 3RD ST #1202 BOISE, ID 83702 MUNGER OIL INFOR SERV INC, POBOX 45738 LOS ANGELES, CA 90045-0738 ORO NEGRO, INC., 9321 MELVIN AVE NORTHRIDGE, CA 91324-2410 H L WANGENHEIM 5430 SAWMILL RD SP 11 PARADISE, CA 95969-5969 MARPLES BUSINESS NEWSLETTER, MICHAEL J PARKS 117 W MERCER ST STE 200 SEATTLE, WA 98119-3960 DEPT OF REVENUE, BEVERLY MARQUART 550 W 7TH A V STE 570 ANCHORAGE, AK 99501 TRUSTEES FOR ALASKA, 1026 W. 4th Ave, Ste 201 ANCHORAGE, AK 99501 AURORA GAS, J. EDWARD JONES 1029 W 3RD AVE, STE 220 ANCHORAGE, AK 99501 DEPT OF REVENUE, CHUCK LOGSTON 550 W 7TH AVE, SUITE 500 ANCHORAGE, AK 99501 ALASKA DEPT OF LAW, ROBERT E MINTZ ASST A TTY GEN 1031 W 4TH AV STE 200 ANCHORAGE, AK 99501-1994 ,JUN 2 ~ 200{~ GAFO,GREENPEACE PAMELA MILLER 125 CHRISTENSEN DR. #2 ANCHORAGE, AK 99501-2101 DEPT OF NATURAL RESOURCES, DIV OF Oil & GAS JULIE HOULE 550 W 7TH AVE, SUITE 800 ANCHORAGE, AK 99501-3560 DEPT OF NATURAL RESOURCES, DIV OF Oil & GAS JIM STOUFFER 550 W 7TH AVE, SUITE 800 ANCHORAGE, AK 99501-3560 AK JOURNAL OF COMMERCE, Oil & INDUSTRY NEWS ROSE RAGSDALE 2000 INTl AIRPORT RD W #A10 ANCHORAGE, AK 99502 HDR ALASKA INC, MARK DALTON 2525 C ST STE 305 ANCHORAGE, AK 99503 ANADARKO, MARK HANLEY 3201 C STREET STE 603 ANCHORAGE, AK 99503 FINK ENVIRONMENTAL CONSULTING, INC., THOMAS FINK, PHD 6359 COLGATE DR. ANCHORAGE, AK 99504-3305 AMERICA/CANADIAN STRATIGRPH CO, RON BROCKWAY 4800 KUPREANOF ANCHORAGE, AK 99507 US BUREAU OF LAND MNGMNT, ANCHORAGE DIST OFC DICK FOLAND 6881 ABBOTT lOOP RD ANCHORAGE, AK 99507 VECO ALASKA INC., CHUCK O'DONNEll 949 EAST 36TH AVENUE ANCHORAGE, AK 99508 DEPT OF NATURAL RESOURCES, DIV OF Oil & GAS TIM RYHERD 550 W 7th AVE STE 800 ANCHORAGE, AK 99501-3510 DNR, DIV OF Oil & GAS JAMES B HAYNES NATURAL RESRCE MGR 550 W 7TH AVE, SUITE 800 ANCHORAGE, AK 99501-3560 DEPT OF NATURAL RESOURCES, DIV Oil & GAS WilLIAM VAN DYKE 550 W 7TH AVE, SUITE 800 ANCHORAGE, AK 99501-3560 BRISTOL ENVIR AND ENG SERVICE, MIKE TORPY 2000 W. INT'l AIRPORT RD #C-1 ANCHORAGE, AK 99502-1116 YUKON PACIFIC CORP, 1400 W BENSON BLVD STE 525 ANCHORAGE, AK 99503 ALASKA Oil & GAS ASSOC, JUDY BRADY 121 W FIREWEED IN STE 207 ANCHORAGE, AK 99503-2035 ARLEN EHM GEOl CONSl TNT 2420 FOXHAll DR ANCHORAGE, AK 99504-3342 US BUREAU OF LAND MNGMNT, ANCHORAGE DIST OFC PETER J DITTON 6881 ABBOTT lOOP ROAD ANCHORAGE, AK 99507 ROSE RAGSDALE 3320 EAST 41ST AVENUE ANCHORAGE, AK 99508 TRADING BAY ENERGY CORP, PAUL CRAIG 5432 NORTHERN LIGHTS BLVD ANCHORAGE, AK 99508 ) / DEPT OF REVENUE, Oil & GAS AUDIT FRANK PARR 550 W 7TH AVE STE 570 ANCHORAGE, AK 99501-3540 DEPT OF NATURAL RESOURCES, DIV OF Oil & GAS BRUCE WEBB 550 W 7TH AVE, SUITE 800 ANCHORAGE, AK 99501-3560 ALASKA JOURNAL OF COMMERCE, ED BENNETT 2000 INTl AIRPORT W #A10 ANCHORAGE, AK 99502 BAKER Oil TOOLS, ALASKA AREA MGR 4710 BUS PK BLVD STE 36 ANCHORAGE, AK 99503 N-I TUBULARS INC, 3301 C Street Ste 209 ANCHORAGE, AK 99503 ANADRI II -SCH lU MBERGER, 3940 ARCTIC BLVD #300 ANCHORAGE, AK 99503-5711 JAMES E EASON 8611 lEEPER CIRCLE ANCHORAGE, AK 99504-4209 BUREAU OF LAND MANAGEMENT, GREG NOBLE 6881 ABBOTT lOOP ROAD ANCHORAGE, AK 99507 UOA/ ANCHORAGE, INST OF SOCIAL & ECON RESEARCH TERESA HUll 3211 PROVIDENCE DR ANCHORAGE, AK 99508 THOMAS R MARSHAll JR 1569 BIRCHWOOD ST ANCHORAGE, AK 99508 US BLM AK DIST OFC, GEOLOGIST ARTHUR BANET 949 EAST 36TH AVE STE 308 ANCHORAGE, AK 99508 US MIN MGMT SERV, RICHARD PRENTKI 949 E 36TH AV ANCHORAGE, AK 99508-4302 US MIN MGMT SERV, AK OCS REGIONAL DIR 949 E 36TH AV RM 110 ANCHORAGE, AK 99508-4302 GORDON J. SEVERSON 3201 WESTMAR CIR ANCHORAGE, AK 99508-4336 US MIN MGMT SERV, LIBRARY 949 E 36TH A V RM 603 ANCHORAGE, AK 99508-4363 US MIN MGMT SERV, FRANK MILLER 949 E 36TH A V STE 603 ANCHORAGE, AK 99508-4363 JOHN MILLER 3445 FORDHAM DR ANCHORAGE, AK 99508-4555 USGS - ALASKA SECTION, LIBRARY 4200 UNIVERSITY DR ANCHORAGE, AK 99508-4667 PHILLIPS ALASKA INC., LAND MANAGER JIM RUUD P.O. BOX 100360 ANCHORAGE, AK 99510 PHILLIPS ALASKA INC., JOANN GRUBER A TO 712 POBOX 100360 ANCHORAGE, AK 99510-0360 PHILLIPS ALASKA INC., STEVE BENZLER ATO 1404 POBOX 100360 ANCHORAGE, AK 99510-0360 PHILLIPS ALASKA INC., MARK MAJOR ATO 1968 POBOX 100360 ANCHORAGE, AK 99510-0360 PETROLEUM INFO CORP, KRISTEN NELSON POBOX 102278 ANCHORAGE, AK 99510-2278 PHILLIPS ALASKA INC., KUP CENTRAL WELLS ST TSTNG WELL ENG TECH NSK 69 POBOX 196105 ANCHORAGE, AK 99510-6105 AL YESKA PIPELINE SERV CO, LEGAL DEPT 1835 S BRAGAW ANCHORAGE, AK 99512-0099 ANCHORAGE DAILY NEWS, EDITORIAL PG EDTR MICHAEL CAREY POBOX 149001 ANCHORAGE, AK 99514 JWL ENGINEERING, JEFF LIPSCOMB 9921 MAIN TREE DR. ANCHORAGE, AK 99516-6510 NORTHERN CONSULTING GROUP, ROBERT BRITCH, P.E. 2454 TELEQUANA DR. ANCHORAGE, AK 99517 DAVID CUSATO 600 W 76TH A V #508 ANCHORAGE, AK 99518 ASRC, CONRAD BAGNE 301 ARCTIC SLOPE A V STE 300 ANCHORAGE, AK 99518 ) US MIN MGMT SERV, RESOURCE STUDIES AK OCS REGN KIRK W SHERWOOD 949 E 36TH A V RM 603 ANCHORAGE, AK 99508-4302 US MIN MGMT SERV, RESOURCE EVAL JIM SCHERR 949 E 36TH A V RM 603 ANCHORAGE, AK 99508-4363 REGIONAL SUPRVISOR, FIELD OPERATION, MMS ALASKA OCS REGION 949 E 36TH A V STE 308 ANCHORAGE, AK 99508-4363 CIRI, LAND DEPT POBOX 93330 ANCHORAGE, AK 99509-3330 PHILLIPS ALASKA INC., LEGAL DEPT MARK P WORCESTER POBOX 100360 ANCHORAGE, AK 99510-0360 PHILLIPS ALASKA INC., LAND DEPT JAMES WINEGARNER POBOX 10036 ANCHORAGE, AK 99510-0360 AL YESKA PIPELINE SERV CO, PERRY A MARKLEY 1835 S BRAGAW - MS 575 ANCHORAGE, AK 99512 DAVID W. JOHNSTON 320 MARINER DR. ANCHORAGE, AK 99515 GERALD GANOPOLE CONSULT GEOL 2536 ARLINGTON ANCHORAGE, AK 99517-1303 ARMAND SPIELMAN 651 HILANDER CIRCLE ANCHORAGE, AK 99518 JUN 2, 92D04 HALLIBURTON ENERGY SERV, MARK WEDMAN 6900 ARCTIC BLVD ANCHORAGE, AK 99518-2146 JACK 0 HAKKILA POBOX 190083 ANCHORAGE, AK 99519-0083 MARATHON OIL COMPANY, LAND BROCK RIDDLE POBOX 196168 ANCHORAGE, AK 99519-6168 EXXONMOBIL PRODUCTION COMPANY, MARK P EVANS PO BOX 196601 ANCHORAGE, AK 99519-6601 BP EXPLORATION (ALASKA) INC, PETE ZSELECZKY LAND MGR POBOX 196612 ANCHORAGE, AK 99519-6612 AMSINALLEE CO INC, WILLIAM 0 VALLEE PRES PO BOX 243086 ANCHORAGE, AK 99524-3086 D A PLATT & ASSOC, 9852 LITTLE DIOMEDE CIR EAGLE RIVER, AK 99577 COOK INLET KEEPER, BOB SHAVELSON PO BOX 3269 HOMER, AK 99603 DOCUMENT SERVICE CO, JOHN PARKER POBOX 1468 KENAI, AK 99611-1468 PENNY VADLA PO BOX 467 NINILCHIK, AK 99639 ') TESORO ALASKA COMPANY, PO BOX 196272 ANCHORAGE, AK 99519 ENSTAR NATURAL GAS CO, PRESIDENT TONY IZZO POBOX 190288 ANCHORAGE, AK 99519-0288 UNOCAL, POBOX 196247 ANCHORAGE, AK 99519-6247 BP EXPLORATION (ALASKA) INC, MR. DAVIS, ESQ POBOX 196612 MB 13-5 ANCHORAGE, AK 99519-6612 BP EXPLORATION (ALASKA) INC, SUE MILLER POBOX 196612 M/S LR2-3 ANCHORAGE, AK 99519-6612 PINNACLE, STEVE TYLER 20231 REVERE CIRCLE EAGLE RIVER, AK 99577 JAMES RODERICK PO BOX 770471 EAGLE RIVER, AK 99577-0471 PHILLIPS PETROLEUM CO, ALASKA OPERATIONS MANAGER J W KONST P 0 DRAWER 66 KENAI, AK 99611 KENAI PENINSULA BOROUGH, ECONOMIC DEVEL DISTR STAN STEADMAN POBOX 3029 KENAI, AK 99611-3029 BELOWICH, MICHAEL A BELOWICH 1125 SNOW HILL AVE WASILLA, AK 99654-5751 ) OPST AD & ASSOC, ERIK A OPSTAD PROF GEOL POBOX 190754 ANCHORAGE, AK 99519 MARATHON OIL COMPANY, OPERATIONS SUPT W.C. BARRON POBOX 196168 ANCHORAGE, AK 99519-6168 UNOCAL, KEVIN TABLER POBOX 196247 ANCHORAGE, AK 99519-6247 BP EXPLORATION (ALASKA) INC, INFO RESOURCE CTR MB 3-2 POBOX 196612 ANCHORAGE, AK 99519-6612 BP EXPLORATION (ALASKA), INC., MARK BERLINGER MB 8-1 PO BOX 196612 ANCHORAGE, AK 99519-6612 L G POST O&G LAND MGMT CONSULT 10510 Constitution Circle EAGLE RIVER, AK 99577 DEPT OF NATURAL RESOURCES, DGGS JOHN REEDER POBOX 772805 EAGLE RIVER, AK 99577-2805 RON DOLCHOK PO BOX 83 KENAI, AK 99611 NANCY LORD PO BOX 558 HOMER, AK 99623 JAMES GIBBS POBOX 1597 SOLDOTNA, AK 99669 JUN 2; ~ 2D04 PACE, SHEILA DICKSON POBOX 2018 SOLDOTNA, AK 99669 AL YESKA PIPELINE SERVICE CO, VALDEZ CORP AFFAIRS SANDY MCCLINTOCK POBOX 300 MS/701 VALDEZ, AK 99686 NICK STEPOVICH 543 2ND AVE FAIRBANKS, AK 99701 RICK WAGNER POBOX 60868 FAIRBANKS, AK 99706 DEPT OF NATURAL RESOURCES, DIV OF LAND REG MGR NORTHERN REGION 3700 AIRPORT WAY FAIRBANKS, AK 99709-4699 RICHARD FINEBERG PO BOX416 ESTER, AK 99725 SENATOR LOREN LEMAN STATE CAPITOL RM 113 JUNEAU, AK 99801-1182 ) ) KENAI NATL WILDLIFE REFUGE, REFUGE MGR POBOX 2139 SOLDOTNA, AK 99669-2139 VALDEZ PIONEER, PO BOX 367 VALDEZ, AK 99686 VALDEZ VANGUARD, EDITOR PO BOX 98 VALDEZ, AK 99686-0098 EVERGREEN WELL SERVICE CO., JOHN TANIGAWA PO BOX 871845 WASILLA, AK 99687 UNIV OF ALASKA FAIRBANKS, PETR DEVEL LAB DR V A KAMATH 427 DUCKERING FAIRBANKS, AK 99701 COOK AND HAUGEBERG, JAMES DIERINGER, JR. 119 NORTH CUSHMAN, STE 300 FAIRBANKS, AK 99701 FAIRBANKS DAILY NEWS-MINER, KATE RIPLEY POBOX 70710 FAIRBANKS, AK 99707 C BURGLlN POBOX 131 FAIRBANKS, AK 99707 K&K RECYCL INC, POBOX 58055 FAIRBANKS, AK 99711 ASRC, BILL THOMAS POBOX 129 BARROW, AK 99723 UNIV OF ALASKA FBX, PETR DEVEL LAB SHIRISH PATIL 437 DICKERING FAIRBANKS, AK 99775 UNIVERSITY OF ALASKA FBKS, PETR DEVEL LAB DR AKANNI LAWAL POBOX 755880 FAIRBANKS, AK 99775-5880 DEPT OF ENVIRON CONSERV SPAR, CHRIS PACE 410 WILLOUGHBY AV STE 105 JUNEAU, AK 99801-1795 ~C;AINNEL¡ JUN 2 9 20D4 ) ) FRANK H. MURKOWSKI, GOVERNOR AItA.SHA. OIL AND GAS CONSERVATION COMMISSION 333 W. "JTH AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 ADMINISTRATIVE APPROVAL CO 471.003 and AIO 24.001 Mr. Gil Beuhler GPB Waterflood Resource Manager BP Exploration (Alaska) Inc. P.O. Box 196612 Anchorage, AK 99519-6612 Dear Mr. Beuhler: By letter dated May 28, 2004, BP Exploration (Alaska), Inc. ("BPXA") requested authorization to conduct a pilot miscible injection (MI) project in Borealis Oil Pool ("BOP") Wells V-100, L-105 and L-108. The Commission approved BOP water injection for enhanced recovery purposes by Conservation Order 471 (CO 471), dated May 29, 2002 and Area Injection Order (AIO 24) dated May 29, 2002. Permission to conduct a pilot miscible injection project in the BOP can be administratively approved provided the pilot does not cause waste, jeopardize correlative rights, is based on sound engineering and geoscience principles and will not result in an increased risk of fluid movement into freshwater. You have advised us that MI injection is planned to start late-June in the subject wells and continue no later than October 1, 2004. Pilot miscible injection for 10-12 weeks is proposed to gain information on the range of injection rates to expect in the BOP and Borealis MI distribution system capacity. The reservoir pressure in the pilot area is above the BOP minimum miscibility pressure ("MMP") of 2150 psi. Average reservoir pressure in the BOP is approximately 2832 psi. Pilot operations for short-term injection may provide valuable information for later long term expansion of the area under MI flood, potentially enhancing recovery. 5CANNED JUN 2 9 2004 L'~fJ.j;dfß/J 1'/ n / J °91> /:':///d ìn t'lAn~ P ff1 . ) CO 471.003 and AIO 24.001 June 29, 2004 Page 2 of2 ') The Commission hereby approves BPXA's request to inject miscible gas into BOP Wells V-100, L-I05 and L-108 subject to the conditions, limitations, and requirements set out below and statewide requirements under 20 AAC 25 (to the extent not otherwise superseded by AIO 24 and Conservation Order 471). . Separate sundry approval for conversion to MI injection service must be obtained. . Miscible gas injection shall be limited to no more than 3 months. . Review of the information obtained during the test period must be presented to the Commission before November 1,2004. atOOJ=ø~ Daniel T. Seamount, Jr. Commissioner 5CP~Nr"ED JUN 2 9 2004. Administrative Approval CO 471.003 and P,_0)24.001 ) Subject: Administrative Approval CO 471.003 and AIO 24.001 From: Jody Colombie <jody - colombie@admin.state.ak.us> Date: Tue, 29 Jun 2004 15:12:17 -0800 To: undisclosed-recipients:; BCC: Robert °:E Mintz <robert _mintz@law .state.ak. us>, Christine Hansen <c.hansen@iogcc.state.ok.us>,Terrie Hubble <hubbletl@bp.com>, Sondra Stewman <StewmaSD@BP.com>, Scott & Cammy Taylor <staylor@alaska.net>, stanekj <stanekj@unocal.com>, ecolaw <ecolaw@trustees.org>, roseragsdale <roseragsdale@gci.net>, tnnjrl <trmjr 1 @aol.com>, jbriddle <jbriddle@marathonoil.com>, rockhill <rockhill@aoga.org>, shaneg <shaneg@evergreengas.com>, jdarlington <jdarlington@forestoi1.com>, nelson <nelson@gci.net>, cboddy <cboddy@usibelli.com>, Mark Dalton <mark.dalton@hdrinc.com>, Shannon Donnelly <shannon.donnelly@conoc.ophillips.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>, tjt <tjr@dnr.state.ak.us>, bbritch <bbritch@alaska.net>, mjnelson <mjnelson@purvingertz.com>, Charles O'Donnell <charles.o'donnell@veco.com>, "Randy L. Skillern" <SkilleRL@BP.com>, "Jeanne H. Dickey" <DickeyJH@BP.com>, "Deborah J. Jones" <JonesD6@BP.com>, "Paul G. Hyatt" <hyattpg@BP.com>, "Steven R. Rossberg" <RossbeRS@BP.com>, Lois <lois@inletkeeper.org>, "Joseph F. Kirchner" <KirchnJF@BP.com>, Gordon Pospisil <PospisG@BP.com>, "Francis S. Sommer" <SommerFS@BP.com>, Mikel Schultz <Mikel.Schultz@BP.com>, "Nick W. Glover" <GloverNW@BP.com>, "Daryl J. Kleppin" <K1eppiDE@BP.com>, "Janet D. Platt" <PlattJD@BP.com>, "Rosanne M. Jacobsen" <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>, bocastwf <bocastwf@bp.com>, Charles Barker <barker@usgs.gov>, doug_schultze <doug_schu]tze@xtoenergy.com>, Hank Alford <hank.alford@exxonmobil.com>, Mark Kovac <yesno 1 @gci.net>, gspfoff <gspfoff@aurorapower.com>, Gregg Nady <gregg.nady@shell.com>, Fred Steece <fted.steece@state.sd.us>, rcrotty <rcrotty@ch2m.com>,jejones <jejones@aurorapower.com>, dapa <dapa@alaska.net>, jroderick <jroderick@gci.net>, eyancy <eyancy@seal-tite.net>, "James M. Ruud" <james.m.ruud@conocophillips.com>, Brit Lively <mapalaska@ak.net>, jah 0 <jah@dnr.state.ak.us>, Kurt E Olson <kurt_olson@legis.state.ak.us>, buonoje <buonoje@bp.com>, Mark Hanley <mark_hanley@anadarko.com>, 10ren_Iernan <loren_Ieman@gov.state.ak.us>, Julie Houle <julie_houle@dnr.state.ak.us>, John W Katz <jwkatz@sso.org>, Suzan J Hill <suzan_hill@dec.state.ak.us>, tablerk <tablerk@unocal.com>, Brady <brady@aoga.org>, Brian H~velock <beh@dnr.state.ak.us>, bpopp <bpopp@borough.kenai.ak.us>, Jim White <jìmwhite@satx.rr.com>, "John S. Haworth" <john.s.haworth@exxonmobiLcom>, marty <marty@rkindustrial.com>, ghammons <ghammons@ao1.com>, rmclean 0 <rmclean@pobox.alaska.net>, James Scherr <james.scherr@mms.gov>, mkm 7200 <mkm7200@aol.com>, Brian Gillespie <ifbmg@uaa.alaska.edu>, David L Boelens <dboelens@aurorapower.com>, Todd Durkee <TDURKEE@KMG.com>, Gary Schultz <gary_schultz@dnr.state.ak.us>, Wayne Rancier <RANCIER@petro-canada.ca>, Bin Miller <Bill- Miller@xtoalaska.com>, Brandon Gagnon <bgagnon@brenalaw.com>,Paul Winslow <pmwinslow@forestoil.com>, Garry Catron <catrongr@bp.com>, Shannaine Copeland <copelasv@bp.com> SCANNE[) JUN 21 9 20D¡~0 lof2 6/29/2004 3: 12 PM Administrative Approval CO 471.003 and Þ.~ 14.001 ) " Content- T~'pe: appl ication/msword C0471.3.doc , Content-Encoding: base64 20f2 6/29/20043:12 PM Administrative Approval for CO 471.003 ar . )1024.001 ) Subject: Administrative Approval for CO 471.003 and AIO 24.001 From: Jody Colombie <jody - colombie@admin.state.ak.us> Date: Tue, 29 Jun 2004 15: 11 :26 -0800 To: Cynthia B Mciver <bren - mciver@admin.state.ak.us> , . .1 Content-Type: application/msword ! C0471.3.doc:¡ : I Content-Encoding: base64 I... ... .... .... ... ..... . .... ............ .......... .. ........ .W.....W.....W....W 1 of 1 6/29/20043: 12 PM ') !Æ FRANK H. MURKOWSKI, GOVERNOR A.I~A.SIiA. OIL AND GAS CONSERVATION COMMISSION 333 W. -rrn AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 ADMINISTRATIVE APPROVAL CO 471.004 and AIO 24.002 Mr. Gil Beuhler GPB Waterflood Resource Manager BP Exploration (Alaska) Inc. P.O. Box 196612 Anchorage, AK 99519-6612 Dear Mr. Beuhler: By letter dated September 27, 2004, BP Exploration (Alaska), Inc. ("BPXA") requested a 120 day extension to the existing authorization to conduct a pilot miscible injection (MI) project in the Borealis Oil Pool ("BOP") in wells V-I 00, L-105 and L~ 108. The Commission approved the MI pilot .through administrative action by Conservation Order 471.003 and Area Injection Order 24.002 dated June 29, 2004. The pilot was scheduled to end on September 30, 2004. You have advised us that a facility maintenance issue limited the data that could be gathered on the pilot. In order to provide the information requested by the Commission, additional time is necessary to conduct the pilot. permission to extend the pilot miscible injection project in the BOP can be administratively approved provided the pilot does not cause waste, jeopardize correlative rights, is based on sound engineering and geoscience principles and will not result in an increased risk of fluid movement into freshwater. The Commission hereby approves a four-month extension to the MI pilot, ending January 31,2005. This approval is subject to the conditions, limitations, and requirements set out by statewide requirements under 20 AAC 25 (to the extent not otherwise superseded by AIO 24 and Conservation Order 471). Injection of MI will be allowed only into wells V- 100, L-105 and L-108. Review of the infonnation obtained during the test period must be presented to the Commission before March 1, 2005. J Chairman Daniel T. Seamount, Jr. Commissioner C04 71 :004 ) Date:.Thu, 07 To: undisclosed-recipients:; BCC: "bren» Cynthia B Mciver" <bren_mciver@admin.state.ak.us>, Robert E Mintz <robert_mintz@law.state.ak.us>, Christine Hansen <c.hansen@iogcc.state.ok.us>, Tenie Hubble <hubbletl@bp.com>, Sondra Stewman <StewmaSD@BP .com>, Scott & Cammy Taylor <staylor@alaska.net>, stanekj <stanekj@unocal.com>, ecolaw <ecolaw@trustees.org>, roseragsdale <roseragsdale@gci.net>, trmjrl <trmjrl@ao1.com>,jbriddle <jbriddle@marathonoil.com>, rockhill <rockhill@aoga.org>, shaneg <shaneg@evergreengas.com>, jdarlington . <jdarlington@forestoi1.com>, nelson <knelson@petroleumnews.com>, cboddy . <cboddy@usibelli.com>, Mark Dalton <mark.dalton@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.alcus>, bbritch <bbritch@alaska.net>, mjnelson <mjnelson@purvingertz.com>, Charles O'Donnell <charles.o'donnell@veco.com>, "Randy L. Skillern" <SkilleRL@BP.com>, "Deborah J. Jones" <JonesD6@BP.com>, "Paul G. Hyatt" <hyattpg@BP.com>, "Steven R. Rossberg" <RossbeRS@BP.com>, Lois <lois@inletkeeper.org>, Dan Bross <kuacnews@kuac.org>, Gordon Pospisil <PospisG@BP.com>, "Francis S. Sommer" <SommerFS@BP.com>, Mikel Schultz <Mikel.Schultz@BP.com>, "Nick W. Glover" <GloverNW@BP.com>, "Daryl!. Kleppin" <KleppiDE@BP.com>, "Janet D. Platt" <PlattJD@BP.com>, "Rosanne M. Jacobsen" <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>, bocastwf <bocastwf@bp.com>, Charles Barker <barker@usgs.gov>, doug_schultze <doug:-schultze@xtoenergy.com>, Hank Alford <hank.alford@exxonmobil.com>, Mark Kovac <yesno 1 @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>, eyancy <eyancy@seal-tite.net>, "James M. Ruud" <james.m.ruud@conocophillips.com>, Brit Lively <mapalaska@ak.net>, jah . <jah@dnr.state.ak.us>, Kurt E Olson <kurt_olson@legis.state.ak.us>, buonoje <buonoje@bp.com>, Mark Hanley <mark_hanley@anadarko.com>, loren_Ieman <loren_Ieman@gov.state.ak.us>, Julie Houle <julie_houle@dnr.state.ak.us>, John W Katz <jwkatz@sso.org>, Suzan J Hill <suzan_hil1@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>, Jim White <jimwhite@satx.rr.com>, "John S. Haworth" <john.s.haworth@exxonmobil.com>, marty <marty@rkindustrial.com>, ghammons <ghammons@aol.com>, rmclean <rmclean@pobox.alaska.net>, mkm7200 <mkm7200@aol.com>, Brian Gillespie <ifbmg@uaa.alaska.edu>, David L Boelens <dboelens@aurorapower.com>, Todd Durkee <TDURKEE@KMG.com>, Gary Schultz <gary_schultz@dnr.state.ak.us>, Wayne Rancier <RANCIER@petro-canada.ca>, Bill Miller <Bill_Miller@xtoalaska.com>, Brandon Gagnon <bgagnon@brenalaw.com>, Paul Winslow <pmwinslow@forestoil.com>, Garry Catron <catrongr@bp.com>, Sharmaine Copeland <copelasv@bp.com>, Suzanne Allexan <sallexan@helmenergy.com>, Kristin Dirks <kristin_dirks@dnr.state.ak.us>, Kaynell Zeman <kjzeman@marathonoil.com>, John Tower <John. Tower@eia.doe.gov>, Bill Fowler <Bill_Fowler@anadarko.COM>, Vaughn Swartz <vaughn.swartz@rbccm.com>, Scott Cranswick 10f2 10/7/20046:44 AM C047 1.004 <scott.cranswick@mms.gov>, Brad McKim <mckimbs@BP.com> ---~. ---- . C04 71.004.doc' Content~Type: application/msword . Content-Encoding: base64 . ~ ~. -- - ~--_. ..-- - .----- ~ - -~,. ~_.__.- - - -------'--'--_._--'~~----'-- . - -" - ----~ 20f2 10/7/20046:44 AM Citgo Petroleum Corporation PO Box 3758 Tulsa, OK 74136 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 Robert Gravely 7681 South Kit Carson Drive Littleton, CO 80122 Jerry Hodgden Hodgden Oil Company 408 18th Street Golden, CO 80401-2433 Richard Neahring NRG Associates President PO Box 1655 Colorado Springs, CO 80901 Kay Munger Munger Oil Information Service, Inc PO Box 45738 Los Angeles, CA 90045-0738 Samuel Van Vactor Economic Insight Inc. 3004 SW First Ave. Portland, OR 97201 Mark Wedman Halliburton 6900 Arctic Blvd. Anchorage, AK 99502 Schlumberger Drilling and Measurements 2525 Gam bell Street #400 Anchorage, AK 99503 Baker Oil Tools 4730 Business Park Blvd., #44 Anchorage, AK 99503 Ciri Land Department PO Box 93330 Anchorage, AK 99503 Gordon Severson 3201 Westmar Cr. Anchorage, AK 99508-4336 Jack Hakkila PO Box 190083 Anchorage, AK 99519 James Gibbs PO Box 1597 Soldotna, AK 99669 Kenai National Wildlife Refuge Refuge Manager PO Box 2139 Soldotna, AK 99669-2139 Richard Wagner PO Box 60868 Fairbanks, AK 99706 Cliff Burglin PO Box 70131 Fairbanks, AK 99707 Williams Thomas Arctic Slope Regional Corporation Land Department PO Box 129 Barrow, AK 99723 North Slope Borough PO Box 69 Barrow, AK 99723 ) J 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 ) ~Tr fÄ\ Trrb rñì ~ ~ n (£ @ ~< r{;: (b!) u Lr-u tJ ¡ L l.blJ if L~ lb lfu èQ) U\D L~ AlfASKA. OIL AND GAS CONSERVATION COMMISSION ¡ / .! I l I / r ! ¡ ! FRANK H. MURKOWSKI, GOVERNOR 333 W. -¡m AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 ADMINISTRATIVE APPROVAL CO 471.005 and AIO 24.003 Re: Request of BP Exploration (Alaska), Inc. to extend pilot miscible injection operations in the Borealis Oil Pool Mr. Oil Beuhler OPB Waterflood Resource Manager BP Exploration (Alaska) Inc. P.O. Box 196612 Anchorage, AK 99519-6612 Dear Mr. Beuhler: By letter dated January 26, 2005, BP Exploration (Alaska), Inc. ("BPXA") has requested a 90- day continuation of pilot miscible injection ("MI") operations in the Borealis Oil Pool ("BOP") for the V-I 00, L-105 and L-1 08 wells. Approval of these operations is currently set to expire on January 31, 2005, pursuant to an extension the Commission granted on October 31,2004. By separate application dated January 12, 2005, BPXA has requested the Commission to modify Area Injection Order 24 ("AIO 24") to allow injection ofMI throughout the oil pool. Pennission to conduct a pilot miscible injection project in the BOP can be administratively approved provided the pilot does not cause waste, jeopardize correlative rights, is based on sound engineering and geoscience principles, and will not result in an increased risk of fluid movement into freshwater. The Commission finds that extension of the current pilot operations is appropriate to allow time for the Commission to review and act upon the BPXA's application to amend AIO 24 to allow large scale EOR injection. The Commission finds that the requested extension will not promote waste or jeopardize correlative rights, is based on sound engineering and geoscience principles, and will not result in an increased risk of fluid movement into freshwater. The Commission approves continuation of MI injection through May 1, 2005 into BOP wells V- 100, L-105 and L-108, subject to the conditions, limitations, and requirements set out in AID 24, CO 471 and statewide regulations under 20 AAC 25 (to the extent not otherwise superseded by AIQ 24 and Conservation Order CO 471). ADMINISTRATIVE APPROVf. _10471.005 and AIO 24.003 February 1,2005 Page 2 of2 Citgo Petroleum Corporation PO Box 3758 Tulsa, OK 74136 ') 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 Mona Dickens Tesoro Refining and Marketing Co. Supply & Distribution 300 Concord Plaza Drive San Antonio, TX 78216 Robert Gravely 7681 South Kit Carson Drive Littleton, CO 80122 George Vaught, Jr. PO Box 13557 Denver, CO 80201-3557 Jerry Hodgden Hodgden Oil Company 408 18th Street Golden, CO 80401-2433 Richard Neahring NRG Associates President PO Box 1655 Colorado Springs, CO 80901 John Levorsen 200 North 3rd Street, #1202 Boise, 10 83702 Kay Munger Munger Oil Information Service, Inc PO Box 45738 Los Angeles, CA 90045-0738 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, W A 98119-3960 Mark Wedman Halliburton 6900 Arctic Blvd. Anchorage, AK 99502 Schlumberger Drilling and Measurements 2525 Gambell Street #400 Anchorage, AK 99503 David Cusato 200 West 34th PMB 411 Anchorage, AK 99503 Baker Oil Tools 4730 Business Park Blvd., #44 Anchorage, AK 99503 Ciri Land Department PO Box 93330 Anchorage, AK 99503 Jill Schneider US Geological Survey 4200 University Dr. Anchorage, AK 99508 Gordon Severson 3201 Westmar Cr. Anchorage, AK 99508-4336 Jack Hakkila PO Box 190083 Anchorage, AK 99519 Darwin Waldsmith PO Box 39309 Ninilchick, AK 99639 James Gibbs PO Box 1597 Soldotna, AK 99669 Kenai National Wildlife Refuge Refuge Manager PO Box 2139 Soldotna, AK 99669-2139 Penny Vadla 399 West Riverview Avenue Soldotna, AK 99669-7714 Richard Wagner PO Box 60868 Fairbanks, AK 99706 Cliff Burglin PO Box 70131 Fairbanks, AK 99707 Bernie Karl K&K Recycling Inc. PO Box 58055 Fairbanks, AK 99711 Williams Thomas Arctic Slope Regional Corporation Land Department PO Box 129 Barrow, AK 99723 North Slope Borough PO Box 69 Barrow, AK 99723 CO 47L005 and AID 2-4.003 ) ') Suttjeei:C0471.00Sand .AIOM.OO3 BI9JB:.Jødy"Colombie<jødy--eoIombie@;vJtnÌn.,".ak.us? Bate: ~ 03 Feb2005 16:07:154)900' J9=1JIUJisdosec.l-reçipients.:; , , " ' BCC:Cyothia B Mciver <bren-- mçÏver@adminstate.ak.US>~ llobert E Mintz <robert~fninll@1~w_.-.e.ak.US>:pCbristine Bansen<c_t.anren@iogcc.state.ok..U5>:pTeaie Hubble '<bubb1et1@bp.com>:p SondmStewman <StewmaSD@BP.com>" Scott ,&Cammy Taylor <stayloI@;t1~ 'net>:p,stanekj, .<stanekj@unocatcom>,ecolaw <eooJaw@tmstees.org>, rosemgsdale <ro~Ie@8ci net>" ttmjrl, <ttmjrl@aolcom>"jbriddle<jbriddl_com>" shaneg <._~~œm>;Jjda1lioglon<jdadi..glOn@foiUloilcom>;Jne1son _leumnews..com>" cboddy <cboddy@usibellicom>,,'Mark Dalton <markdalton@hdrinc~œm>, SbannonDonnelly ~d_~œm>, "MarlrP. Worcesa-er- <maIk.p.worcester@coDOCOphiDips~com>" Bob<bob@in1etkeepel".org>7I wdv <wdv@dnr.state.ak.us>,tjr <tjr@dnr.state.ak.us>,bbritch <bbritcb@aIaskëLnet>" mjne1son <n:gneIso_oom>"Chades 'O'Donnell<cbarles.o'donneU@veco.com>" ~ L. Skillern" <SkilleRL@BP.com>:p "Deborah'J. Jonesll '<.JooesD6@BP.com>:p -Paul G. Hyattll <hyattpg@BP~com>".Steven It. 'R.ossbec-g1ll <RossbeRS@BP.com>" Lois <1ois@inletkeeper.org>" Dan Bross <b1acnews@b'ac.org>:p'Gordon Pospisil <PospisG@BP.œm>" "Francis~~i~ <SommaFS@BP~com>" Mikel Schultz <Mik:eLScbultz@BP~com>" "NìCk W.6lover1l ~),.;."¡~"',..',, '.'.,'".."'",ør".,.,','"',~nu,,"',.,.', .',,'"',,' ',.,,,In\D,'',.'' '",'",."n,.",."".",~',," '., ",' .'," ",",.'..." ~_d,>, " ' '; " ,J 1l1~nfJI <1l1~n.-n'DIñ\UD,," " " ,com>.IIJR...-4: D, " »1_", '""" " '11, ,~~~.JI;"~~.:J"\\.;Ø~,,~.:J. ,. ~ ~~.I." , ~, " CüII;" ~~P.;eöm>" wg,osanne M.,Jacobsenlll <lacobSRM@BP.com>"ddQnkel '~~ß'.þml>"cøm.Mouøt <oo1Iiøs_mount@reveoue.state.akus>,. mçkay ~~~7 Barbara P.FuBmer <barbara.£fùIJmer@conocophiJlips.COID>:p bocastwf _.com>, ChatlesBmer <batker@JI~:JS.gov>, doug~ scb\ìlt7.e ~~oenergy.com>~ Hank Alforo <bankalford@exxonmobiLcom>, Mark K. <YesøØt@gei~ìtet~,"gsptotr~fo~wer~co~~.'Gr.iNadyj.~.~~~, 'íe4.'iS~~.St~t~~$d,~Q$>;(cêqttY.'.~çiot(~~m.co~"iiej~ ."-~11~~" >,. .'..j' '..'.'.'}.."'.. 'd~;"~<d~;.....lh\~få.CdCa'.'.."'.........",;,,'..I~":".;'¥;..M~~~~ ",' ~qo~g~W".ÇQ~,~,~"""",.."...~",.Jf~~~'~~~~~'êP# _titê,:,,~;'i...~if"""~..'i.J.tUQd~..~aîJteS~Ø1.:J"UU~pWltip$;~1!.'Ø.LiveIJ ~1,~~~@it~,.~,jjfti~_~~~j.~~~_å1ê:,.~" Kw1 E Olson <kurt - o1son@Jq;$_~.alÇQ$>, bUon.ojç'~_e@bp.~~,~JffJ~~~~!I.I'UIII"r:kP~çoIll?7,19ren~l~ ~Çtt_J~"._.~t(IJ~,.~ei'JIt111lè,i<:Cjllliê~l1gtJt~.st";It"e.~us?,...fQtirt..W.-8f7. 1~lq~t?-@~iøm*~.$1j7JJft,I..<Ç.cå'~i'Î.....JjiIJ@~.štåf.t:;.,.t(_ì,þ,...~~.'.ç~.~QÇjJ..çølJÎ?>,..'.J3IarJy ~ga..o£g>,Øôaø.lfa¥elock<beh@dnr._.~us>",1mopp.".<bpctpp@Þoi(JJtb;kP.l1êÛ-.,IJS>, ruôWJitÇ_tf~(;I)JIl57."J(}hn'S.HiWorth.... <jOhrLs.portlt@eXXWbßoLitcØø:t?,'JJI8JiY -,'striaLcom>,.d'~mriaons<~ns@aol.com>,nnclœn .' . <mtdean@pobox.absk"_net>,mkm1200<mkm1200@a0lœm>,Brian'6iIlespie <ißmJg@t1aaaltu;1ca,.edu?-.,'David LBoe1eos <dboeIens@wrora¡JOwer~com>., Todd Durkee <TÐ11R.IŒF.@KMG.oom>,Gary Schultz <gary- sdIuIt7.@dnr.state.ak.us>, WayneRancier <RAN_Jlada~ca>, Bill Miller <BiII- MìIIer@Uoala,ka_oom>" Brandon Gagnon <bgagnon@hteualaw.oom>, Paul Wmslow <pmwinsIow@forestoil.œm>76anyCatron <catroogr@bp~com>, SharmaineCopeland <copelasv@bp~com>, Kristin Dids <kristin_dirks@dnr.state.akus>, Kayne1I Zeman_noiI.œm>, John Tower <JoIm..Tower@eûLdoe.gov>, BiU Fowler <BiII- Fowler@;mad~o.COM>7 Vin1g1m Swartz <wugbnswattz@rbœm.œm>1' Scott Cranswick <scott.-.;gov>" Brad McKim <mcIdmbs@BP.com>" Steve Lambe _.oom>,jackneweB <jack.newel1@a~~laska_net>, James Scherr <James.Schen@mms.gov>, david roby 1 'of 2 2/3/20054:07 'PM 'co 47 L005 and AIO 24.003 ) ) <David.Rôby@tDms.gov~~.r.Lawlor<Tim..~J~wIor@ak.blnLgov> ~ Lynnda Kahn <~ýrn'Kfä--~.g()v>~ Jerry Dethlefs <Jeny.C.Detblefs@conocophillips.com>" Jeery ~ sal~17~nœop&ltips.œJD>" crockett@aoga.or&,lvan,GiDiaJn <if)nia~~net> -cÐ411~005..pclfCflÎltelft.T.:r;' ,;,' '.';,.. applicationlpdf Cootent-:Enœdûtg: base64 2 'of 2 2/3/20054:07 PM ) ') ((ù 1",""""'\[,- " ~~,{;'1 ~,"[, '''' ¡ H ~Íi_i (~) :' J1.1 U t!::~1 (mr-~ ' ~I II 1, ~,....:::"i /:\ 1"'1" l~'\ ^ 'iJ !Flllb ~ lP~V,/~' ,P, ~ \ ~, i /t""'¡\ \ . ~_' i!..J ~,..i:\ / ,¡ l ¡.I l I I ,/ I' I l l J FRANK H. MURKOWSKI, GOVERNOR ALASKA OIL AND GAS CONSERVATION COMMISSION 333 W. 7TH AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 ADMINISTRATIVE APPROVAL AIO 24.004 Mr. Steve Rossberg, Wells Manager BP Exploration (Alaska) Inc. 900 East Benson Blvd. P.O. Box 196612 Anchorage, AK 99519-6612 RE: PBU L-1 05 (PTD 202-058) Request for Administrative Approval Dear Mr. Rossberg: In accordance with Rule 8 of Area Injection Order 024.000, the Alaska Oil and Gas Con- servation Commission ("AOGCC" or "Commission") hereby grants BP Exploration (Alaska) Inc. ("BPXA")'s request for administrative approval to inject gas in the subject well. AOGCC finds that BPXA has elected to perform no corrective action at this time on PBU L-105. The Commission further finds that, based upon reported results of BPXA's diag- nostic procedures, PBU L-1 05 exhibits two competent barriers to release of well pressure. Accordingly, the Commission believes that the well's condition does not compromise overall well integrity so as to threaten the environment or human safety. AOGCC's administrative approval to inject gas in PBU L-105 is conditioned upon the following: 1. BPXA shall record wellhead pressures and injection rate daily; 2. BPXA shall submit to the AOGCC a monthly report of well pressures and injec- tion rates; 3. BPXA shall perform an annual MIT - IA to 4000 psi; 4. BPXA shall perform an annual LLR - OA to 3000 psi; 5. BPXA shall immediately shut in the well and notify the AOGCC if there is any change in the well's mechanical condition; and ) Mr. Steve Rossberg January 18,2006 Page 2 of2 6. after well shut in due to a change in the well's mechanical condition, AOGCC ap- proval shall be required to restart injection. As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause, shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing is consid- ered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. A person may not appeal a Commission decision to Superior Court unless rehearing has been requested. DONE at Anchorage, Alaska and dated January 18, 2006. ~¿~ Commissioner Daniel T. Seamount, Jr. Commissioner i " '. '~ Mary Jones XTO Energy, Inc. Cartography 810 Houston Street, Ste 2000 Ft. Worth, TX 76102-6298 George Vaught, Jr. PO Box 13557 Denver, CO 80201-3557 John Levorsen 200 North 3rd Street, #1202 Boise, 10 83702 Michael Parks Marple's Business Newsletter 117 West Mercer St, Ste 200 Seattle, WA 98119-3960 Ciri Land Department PO Box 93330 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 ) David McCaleb IHS Energy Group GEPS 5333 Westheimer, Ste 100 Houston, TX 77056 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 North Slope Borough PO Box 69 Barrow, AK 99723 ) Mona Dickens Tesoro Refining and Marketing Co. Supply & Distribution 300 Concord Plaza Drive San Antonio, TX 78216 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 2525 Gambell Street #400 Anchorage, AK 99503 Ivan Gillian 9649 Musket Bell Cr.#5 Anchorage, AK 99507 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 Williams Thomas Arctic Slope Regional Corporation Land Department PO Box 129 Barrow, AK 99723 \ \ (J au ¡ ~ '~ e, \JÖ AIO 24.004 PBU L-I05 ) ) Subject: AIO 24.004 PBU L-l 05 From: Jody Colombie <jody_colombie@admin.state.ak.us> Date: Thu, 19 J an 2006 15 :28 :22 -0900 T 0: undi~clos~4~re9ipients:; BÇC~ RQþertE:Mint~<robert_ mintzC$lå~.~tG\te.ak.us>;Cl1ri'Sti~eHal1sen ,,',', ',' '". <c.hansen@i~~~c.st~!e.pk.us>, "Terri~ ,l-Iubble<hubblet1c@bp~c()111»" Soµdr(1$ te'Nman <StewmaSD~~:r.cOIl1>" Scoh..& C~myT~ylor <:staylor@älaska.net>, st~eKJ<stanekJ@unocaLcom>, e.colaw <~col~n~@trust~es.or~:>,. trmjr1,',,<trmjr l@aol.c()lTI>,JÞrigdle <jbridCile@marathonoil.com>, shaneg<shGtl1eR@ev~r~re~ngas.coITl?, jdarlingt~n ,,<jdarlington@f~rest?il.e~m~, ,nelson <kr1els?n(@p~tr~leutl1news.com>' cb9dd)'<çbØddy@u.sib~eÜi.collíl~,.'.'I\1arkDalt0n <mark~dalt()~($~c.lrine'90l1l>',. Sh~()n])?nn.~lly<sl1at}non.d?nn'elly@conocopaillips.com>, "Mark p.. WOfcest~r".~111#k.p~~orc,e~ter~~ol}oCQphillìp~.ç0111:>~:B()þ:<bo l?@illletke~per.org~, ",dy <W, "', , "d, Y.@,·"·,.,d11l"'",. ., .~ia, "'~,:,,:,'~,I,:,~ak,,, '., '~.,u" ',',., ê,:fë,.', 'tj r <tj,~r"", @"',ø",nr,.,,..,s,t. a,.', t,e~aK, I., '.,u, ",.,.,s:', '>, l: " b, bn,·t""" ,ç,l:1,',', <",.,b" h",r,itc:,,·,l1,,@.,',' , a' .,·,l,·~" ,s,k, ".', a,', m, ,e.t,·,.,>..,','. ',', ' ,m, " "".,J, ." n,~,ls",',o, . n".,', . . . ~" ,'. "::,.,,," :;:';1'1:' !;I;!II'~I:¡"" "il;,""II.:",'" ,I ' ",:,:',' ,,\,,;", " '" : ",I', ;:';',':' "'~ , ,::','/", ':' ':';,,: I,;,,,:,, "'; 1.1,: ',1.,1, ,," " .' " ", ' ," <mja¢l~qr@~~r~ingþ~g..com*t,.~har~¢~IQ'gØPP~~l~cl1artes.o'PQvn~ll@veç().c~1112>,"Randy .L. Skillern" <Skine~'@ßP.~0m>,,"Debor~1.· Jones":::FJÞne~IJ6@B}>.COtn>, "Steyen~." '~ossberg",' <Rossbe~.~,(@:~J>;901I1~, Lois <lois@irletk~eper'8[g:>, Dan .Brossl.<kua9ne~s@kuac.org?,Gordon Pospisil <2P?sþisÇJ®BP;ç,?~~ ,"Francis~/ 8omm~r"<So111metrS~BP.cotn>, N!ikel ~chultz <Mikel.~cl1µltz@~f ..C011l>',' "Nick}Y .(]lov~r'5Gl()ver~W@~P .co111>,I'Da~l J..Kleppin" <Kleppipp'@~f.C()w?,~"Æ8.rlel Q. Plfitt;' «glatOp@Bp,com>,'~~osan~e¥. Jª,cobsen" ,I <J~cqbs~@~P .c0p1?", cldo~eL<ddo11](el~ffl'1"r.coITl>,.rncl~~~,<me~ay@gci.ne0, ,~arbara F' Fullmer <9arb(lfa;J.fullf11f~~Ç()~?coplíHliB~·cQm~,?o,ca~~\Vf 1bocast\Vf@Þp.c()l11>' Ch~rlesBar~er <barker®µªgs.~?y>, dOlJg~sqhµlt;le. <dO~g__scÞuïtze.~xtoenergy .cqm>,Ha.nk Alford <hank;~lfdr~~e~f'~nmdl)il.çom> ,'¥a~k ,.~ova~'.-SY~~~01,@gc.i~n7t:>, .gspfoff <g~pf()ff@ªMrorapo~er .c()111>-, ,..Gregg Nad)'~g~~gg,:nad~@shrl1~c0In>'" Fred St~eç~ <fred.stee~e@s~åt~..sd.~s>, rc~otty <rcrqttY~9h~m:corn> ,jej one~ .g,ejone~~aurorapower .com>" dapa <dapa@al~ska';ne~,jroderic¥<jr()derick@gci.net>", eyanc)'<ey~cy@seal-tite.net>, "] ames" M.Ruud" <jam~s.m.~ud@col1ocophillip~~com> ,Brit, Lively<mapa!a~ka@ak.net>, j ah <jah@dnr.state.ak.us>, buonoj e «ÐuonoJe@bp.cQm>, Mark Hanley <Il1afK_hanleY@aJ;ladarkû;com>, loren _leman <loren _leman@gov.state~ak: us> , Julie Houle <julie __ houle@çlnr.stat~.ak. us> , John W Katz <jwkatz@sso.org>"SuzanJHill <suzat1~hill@dec.stat~.ak.us>,tablerk <tablerk@unocaLcom>, Brady <brady@aoga.org;>,Brian'Havelock <beh@dnr .state.ak. ~s>, bpc>PP <bpopp@borough.kenai.ak.us>, Jim White <jimwhite@s~tx.rr.com>, "John S. Haworth"<john.s.haworth@exxonmobi1.com>, marty <marty@rkindustria1.com>, ghammons <ghammons@aoLcom>, rmclean <rmclean@pobox.alaska.net>, mkm 7200 <mkm 7200@aol.com>, Brian Gillespie' <ifbmg@uaa.alaska.edu>, David L' Boelens <dboelens@aurorapower.com>, Todd Durkee <TDURKEE@KMG.com>, Gary Schultz <gary_schultz@dnr.state.ak.us>, Wayne Rancier <RANCIER@petro-canada.ca>, Brandon Gagnon <bgagnon@brenalaw.com>, Paul Winslow <pmwinslow@forestoi1.com>, Garry Catron <catrongr@bp.com>, Sharmaine Copeland <copelasv@bp.com>, Kristin Dirks <kristin_dirks@dnr.state.ak.us>, Kaynell Zeman <kjzeman@marathonoi1.com>, John Tower <John.Tower@eia.doe.gov>, Bill Fowler <Bill_Fowler@anadarko.COM>, Scott Cranswick <scott.cranswick@mms.gov>, Brad McKim <mckimbs@BP .com>, Steve Lambe <lambes@unoca1.com>, jack newell <jack.newell@acsalaska.net>, James Scherr <james.scherr@mms.gov>, david roby <David.Roby@mms.gov>, Tim Lawlor <Tim_Lawlor@ak.blm.gov>, Lynnda Kahn <Lynnda_Kahn@fws.gov>, Jerry Dethlefs <J erry. C.Dethlefs@conocophillips.com>, crockett@aoga.org, Tamera Sheffield <sheffield@aoga.org>, Jon Goltz <Jon.Goltz@conocophillips.com>, Roger Belman <roger.belman@conocophillips.com>, Mindy Lewis <mlewis@brenalaw.com>, Kari Moriarty <moriarty@aoga.org>, Patty Alfaro <palfaro@yahoo.com>, Jeff <smetankaj@unocal.com>, Todd Kratz <ToddKratz@chevron.com>, Gary 10f2 1/19/20063:58 PM AIO 24.004 PBU L-l 05 ) ) Rogers.<gary2r?ger~@reyenu~.state.a~.us)., ~rthl1r CopQulqs<Arthur_Copoµlos@dnr.state.ak.us>, Ken <ken@secoJ:p-i~p.ç()p1>, Steve"Lamþet;i <s~la.mbe1i@µnqcaLcom>, J oeNicks <:news@radiokenai.com>, Jerry McCµtcheon <susitnahydr0now@yalio9.com>, Paul Todd <paulto@acsalaska.net>, Bill Walker . <bil1-wwa~aknet> ~IrisMatthews <Ids__Matthews@legis:state.ak. us>, Paul Decker <paul_deck.er@dnr.state.ak;us>,Rob Dragnich <rob.g.dragnich@exxonmobil.com>" Cynthia B Mciver <bren_mciver@admin.state.alcus> I'" ,"..'.., '. . I ,C()ritent~Ty.'..pe:". . ap' Pl,icationlpdf iåiQ24-4. df ','. ':.' ,...,.',' ...> >'. ".," ,,'. :" p, iConten,~ElÌcocl:¡ng:base64 20f2 1/19/2006 3:58 PM THE STATE °fALASKA GOVERNOR BILL WALKER Alaska Oil and Gas Conservation Commission CORRECTED ADMINISTRATIVE APPROVAL AREA INJECTION ORDER NO. 24.004 (Cancelled) AREA INJECTION ORDER NO.24B.005 Mr. Oliver Sternicki Well Integrity Engineer BP Exploration (Alaska), Inc. P.O. Box 196612 Anchorage, AK 99519-6612 333 West Seventh Avenue Anchorage, Alaska 99501-3572 Main: 907.279.1433 Fax: 907.276.7542 www.aogcc.alaska.gov Re: Docket Number: AIO-16-007 Request for administrative approval to amend conditions of AIO 24.004 that allow well L-105 (PTD 2020580) to be online in water alternating gas (WAG) injection service with an outer annulus (OA) repressurization. Prudhoe Bay Unit (PBU) L-105 (PTD 2020580) Prudhoe Bay Field Borealis Oil Pool Dear Mr. Sternicki: By letter dated February 19, 2016, received on February 29, 2016, BP Exploration (Alaska), Inc. (BPXA) requested administrative approval to amend conditions of AIO 24.004 and continue WAG injection in the subject well. In accordance with Rule 9 of Area Injection Order (AIO) 2413.000, the Alaska Oil and Gas Conservation Commission (AOGCC) hereby GRANTS BPXA's request for administrative approval to continue WAG injection in the subject well. AA AIO 24.004 is no longer necessary to the operation of L-105 and is hereby CANCELLED. Injection into PBU L-105 will be governed by provisions of AIO No. 2413.005. AIO No. 24A superseded AIO 24 on April 22, 2005. AIO No. 24B superseded AIO 24A on January 30, 2008. BPXA completed a passing state witnessed Mechanical Integrity Test of the Inner Annulus (MITIA) on January 9, 2016 which indicates that L-105 exhibits at least two competent barriers to the release of well pressure. Accordingly, the AOGCC believes that the well's condition does not compromise overall well integrity so as to threaten human safety or the environment. AIO 24B.005 March 8, 2016 Page 2 of 2 AOGCC's approval to continue WAG injection in PBU L-105 is conditioned upon the following: 1. BPXA shall record wellhead pressures and injection rate daily; 2. BPXA shall submit to the AOGCC a monthly report of well pressures, injection rates, and pressure bleeds for all annuli. Bleeds to be flagged on the report; 3. BPXA shall perform a mechanical integrity test of the inner annulus every two (2) years to 4000 psi; 4. BPXA shall immediately shut in the well and notify the AOGCC if there is any change in the well's mechanical condition; 5. After well shut in due to a change in the well's mechanical condition, AOGCC approval shall be required to restart injection; and 6. The MIT anniversary date is January 9, 2016. ,01L,A , DONE at Anchorage, Alaska and da1pdA4arch 8, 2016. , 40 rt q4� Cathy P Foerster �:�Daniel T. Seamount, Jr.Chair, ommissioner Commissioner'.97, RECONSIDERATION AND APPEAL NOTICE As provided in AS 31.05.080(a), within 20 days after written notice of the entry of this order or decision, or such further time as the AOGCC grants for good cause shown, a person affected by it may file with the AOGCC an application for reconsideration of the matter determined by it. If the notice was mailed, then the period of time shall be 23 days. An application for reconsideration must set out the respect in which the order or decision is believed to be erroneous. The AOGCC shall grant or refuse the application for reconsideration in whole or in part within 10 days after it is filed. Failure to act on it within 10-days is a denial of reconsideration. If the AOGCC denies reconsideration, upon denial, this order or decision and the denial of reconsideration are FINAL and may be appealed to superior court. The appeal MUST be filed within 33 days after the date on which the AOGCC mails, OR 30 days if the AOGCC otherwise distributes, the order or decision denying reconsideration, UNLESS the denial is by inaction, in which case the appeal MUST be filed within 40 days after the date on which the application for reconsideration was filed. If the AOGCC grants an application for reconsideration, this order or decision does not become final. Rather, the order or decision on reconsideration will be the FINAL order or decision of the AOGCC, and it may be appealed to superior court. That appeal MUST be filed within 33 days after the date on which Fne AOGCC mails, OR 30 days if the AOGCC otherwise distributes, the order or decision on reconsideration. In computing a period of time above, the date of the event or default after which the designated period begins to run is not included in the period; the last day of the period is included, unless it falls on a weekend or state holiday, in which event the period runs until 5:00 p.m. on the next day that does not fall on a weekend or state holiday. THE STATE GOVERNOR BILL WALKER CORRECTED ADMINISTRATIVE APPROVAL Alaska Oil and Gas Conservation Commission AREA INJECTION ORDER NO. 24.004 (Cancelled) AREA INJECTION ORDER NO.24B.005 Mr. Oliver Sternicki Well Integrity Engineer BP Exploration (Alaska), Inc. P.O. Box 196612 Anchorage, AK 99519-6612 Re: Docket Number: AIO-16-007 333 West Seventh Avenue Anchorage, Alaska 99501-3572 Main: 907.279.1433 Fax: 907.276.7542 www.aogcc.alaska.gov Request for administrative approval to amend conditions of AIO 24.004 that allow well L-105 (PTD 2020580) to be online in water alternating gas (WAG) injection service with an outer annulus (OA) repressurization. Prudhoe Bay Unit (PBU) L-105 (PTD 2020580) Prudhoe Bay Field Borealis Oil Pool Dear Mr. Sternicki: By letter dated February 19, 2016, received on February 29, 2016, BP Exploration (Alaska), Inc. (BPXA) requested administrative approval to amend conditions of AIO 24.004 and continue WAG injection in the subject well. In accordance with Rule 9 of Area Injection Order (AIO) 2413.000, the Alaska Oil and Gas Conservation Commission (AOGCC) hereby GRANTS BPXA's request for administrative approval to continue WAG injection in the subject well. AA AIO 24.004 is no longer necessary to the operation of L-105 and is hereby CANCELLED. Injection into PBU L-105 will be governed by provisions of AIO No. 2413.005. AIO No. 24A superseded AIO 24 on April 22, 2005. AIO No. 24B superseded AIO 24A on January 30, 2008. BPXA completed a passing state witnessed Mechanical Integrity Test of the Inner Annulus (MITIA) on January 9, 2016 which indicates that L-105 exhibits at least two competent barriers to the release of well pressure. Accordingly, the AOGCC believes that the well's condition does not compromise overall well integrity so as to threaten human safety or the environment. AIO 24B.005 March 8, 2016 Page 2 of 2 AOGCC's approval to continue WAG injection in PBU L-105 is conditioned upon the following: 1. BPXA shall record wellhead pressures and injection rate daily; 2. BPXA shall submit to the AOGCC a monthly report of well pressures, injection rates, and pressure bleeds for all annuli. Bleeds to be flagged on the report; 3. BPXA shall perform a mechanical integrity test of the inner annulus every two (2) years to 4000 psi; 4. BPXA shall immediately shut in the well and notify the AOGCC if there is any change in the well's mechanical condition; 5. After well shut in due to a change in the well's mechanical condition, AOGCC approval shall be required to restart injection; and 6. The MIT anniversary date is January 9, 2016. DONE at Anchorage, Alaska and dated March 8, 2016. Hsignature on fileH //signature on fileH Cathy P. Foerster Daniel T. Seamount, Jr. Chair, Commissioner Commissioner RECONSIDERATION AND APPEAL NOTICE As provided in AS 31.05.080(a), within 20 days after written notice of the entry of this order or decision, or such further time as the AOGCC grants for good cause shown, a person affected by it may file with the AOGCC an application for reconsideration of the matter determined by it. If the notice was mailed, then the period of time shall be 23 days. An application for reconsideration must set out the respect in which the order or decision is believed to be erroneous. The AOGCC shall grant or refuse the application for reconsideration in whole or in part within 10 days after it is filed. Failure to act on it within 10-days is a denial of reconsideration. If the AOGCC denies reconsideration, upon denial, this order or decision and the denial of reconsideration are FINAL and may be appealed to superior court. The appeal MUST be filed within 33 days after the date on which the AOGCC mails, OR 30 days if the AOGCC otherwise distributes, the order or decision denying reconsideration, UNLESS the denial is by inaction, in which case the appeal MUST be filed within 40 days after the date on which the application for reconsideration was filed. If the AOGCC grants an application for reconsideration, this order or decision does not become final. Rather, the order or decision on reconsideration will be the FINAL order or decision of the AOGCC, and it may be appealed to superior court. That appeal MUST be filed within 33 days after the date on which Sue AOGCC mails, OR 30 days if the AOGCC otherwise distributes, the order or decision on reconsideration. In computing a period of time above, the date of the event or default after which the designated period begins to run is not included in the period; the last day of the period is included, unless it falls on a weekend or state holiday, in which event the period runs until 5:00 p.m. on the next day that does not fall on a weekend or state holiday. Singh, Angela K (DOA) From: Carlisle, Samantha J (DOA) Sent: Wednesday, March 09, 2016 3:44 PM To: Ballantine, Tab A (LAW); Bender, Makana K (DOA); Bettis, Patricia K (DOA); Bixby, Brian D (DOA); Brooks, Phoebe L (DOA); Carlisle, Samantha J (DOA); Colombie, Jody J (DOA); Cook, Guy D (DOA); Davies, Stephen F (DOA); Eaton, Loraine E (DOA); Foerster, Catherine P (DOA); Frystacky, Micha) (DOA); Grimaldi, Louis R (DOA); Guhl, Meredith D (DOA); Herrera, Matthew F (DOA); Hill, Johnnie W (DOA); Jones, Jeffery B (DOA); Kair, Michael N (DOA); Link, Liz M (DOA); Loepp, Victoria T (DOA); Mumm, Joseph (DOA sponsored); Noble, Robert C (DOA); Paladijczuk, Tracie L (DOA); Pasqual, Maria (DOA); Quick, Michael J (DOA); Regg, James B (DOA); Roby, David S (DOA); Scheve, Charles M (DOA); Schwartz, Guy L (DOA); Seamount, Dan T (DOA); Singh, Angela K (DOA); Wallace, Chris D (DOA); AKDCWeIIIntegrityCoordinator, Alan Bailey, Alex Demarban; Alexander Bridge; Allen Huckabay; Amanda Tuttle; Andrew Vandedack, Anna Raff; Barbara F Fullmer, bbritch; bbohrer@ap.org; Bob Shavelson; Brian Havelock; Bruce Webb; Burdick, John D (DNR); Caleb Conrad; Cliff Posey, Colleen Miller, Crandall, Krissell; D Lawrence; Dave Harbour, David Boelens; David Duffy; David House; David McCaleb; David Steingreaber; David Tetta; ddonkel@cfl.rr.com; Dean Gallegos; Delbridge, Rena E (LAS); DNROG Units (DNR sponsored); Donna Ambruz; Ed Jones; Elowe, Kristin; Evans, John R (LDZX); Frank Molli; Gary Oskolkosf, George Pollock; Gordon Pospisil; Gregg Nady; gspfoff, Hyun, James J (DNR); Jacki Rose; Jdarlington Oarlington@gmail.com); Jeanne McPherren; Jerry Hodgden; Jerry McCutcheon; Jim Watt; Jim White; Joe Lastufka; Radio Kenai; Easton, John R (DNR); Jon Goltz, Juanita Lovett, Judy Stanek, Houle, Julie (DNR); Julie Little, Karen Thomas; Kari Moriarty, Kazeem Adegbola; Keith Wiles, Kelly Sperback; Gregersen, Laura S (DNR); Leslie Smith; Louisiana Cutler, Luke Keller, Marc Kovak; Dalton, Mark (DOT sponsored); Mark Hanley (mark.hanley@anadarko.com); Mark Landt, Mark Wedman; Kremer, Marguerite C (DNR); Mary Cocklan-Vendl; Mealear Tauch; Michael Calkins; Michael Duncan; Michael Moora; Mike Bill; MJ Loveland; mkm7200; Morones, Mark P (DNR); Munisteri, Islin W M (DNR); knelson@petroleumnews.com; Nichole Saunders; Nick W. Glover, Nikki Martin; NSK Problem Well Supv; Oliver Sternicki; Patty Alfaro; Paul Craig; Decker, Paul L (DNR); Paul Mazzolini; Pike, Kevin W (DNR); Randall Kanady; Randy L. Skillern; Renan Yanish; Richard Cool; Robert Brelsford; Ryan Tunseth; Sara Leverette; Scott Griffith; Shannon Donnelly, Sharmaine Copeland; Sharon Yarawsky, Shellenbaum, Diane P (DNR); Skutca, Joseph E (DNR); Smart Energy Universe; Smith, Kyle S (DNR); Sondra Stewman; Stephanie Klemmer; Stephen Hennigan; Moothart, Steve R (DNR); Suzanne Gibson; sheffield@aoga.org; Tania Ramos; Ted Kramer, Davidson, Temple (DNR); Terence Dalton; Teresa Imm; Thor Cutler, Tim Mayers; Todd Durkee; trmjrl; Tyler Senden; Vicki Irwin; Vinnie Catalano; Aaron Gluzman; Aaron Sorrell; Ajibola Adeyeye; Alan Dennis; Andrew Cater, Anne Hillman; Brian Gross; Bruce Williams; Bruno, Jeff J (DNR); Caroline Bajsarowicz; Casey Sullivan; Diane Richmond; Don Shaw; Donna Vukich; Eric Lidji; Garrett Haag; Smith, Graham O (DNR); Dickenson, Hak K (DNR); Heusser, Heather A (DNR); Holly Pearen; Jason Bergerson; Jim Magill; Joe Longo; John Martineck; Josh Kindred; Kenneth Luckey, King, Kathleen J (DNR); Laney Vazquez; Lois Epstein; Longan, Sara W (DNR); Marc Kuck; Marcia Hobson; Steele, Marie C (DNR); Matt Armstrong; Franger, James M (DNR); Morgan, Kirk A (DNR); Pat Galvin; Pete Dickinson; Peter Contreras; Richard Garrard; Robert Province; Ryan Daniel; Sandra Lemke; Pollard, Susan R (LAW); Talib Syed; Terence Dalton; Tina Grovier (tmgrovier@stoel.com); Todd, Richard J (LAW); Tostevin, Breck C (LAW); Wayne Wooster, William Van Dyke Subject: Area Injection Order 24.004 (Canceled) and 25B.005 (Corrected) (PBU, BPXA) Attachments: aio24-004 canceled.pdf, aio24b-005 corrected.pdf Please see attached. Samantha Carlisle Executive Secretary II1 Alaska Oil and Gas Conservation Commission 333 West 701 Avenue Anchorage, AK 99501 (907) 793-1223 CONFIDENTIALITY NOTICE. This e-mail message, including any attachments, contains information from the Alaska Oil and Gas Conservation Commission (AOGCC), State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information. The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it, without first saving or forwarding it, and, so that the AOGCC is aware of the mistake in sending it to you, contact Samantha Carlisle at (907) 793-1223 or Samantha.CarlisleOalaska.eov. James Gibbs Jack Hakkila Bernie Karl P.O. Box 1597 P.O. Box 190083 K&K Recycling Inc. Soldotna, AK 99669 Anchorage, AK 99519 P.O. Box 58055 Fairbanks, AK 99711 Gordon Severson Penny Vadla George Vaught, Jr. 3201 Westmar Cir. 399 W. Riverview Ave. P.O. Box 13557 Anchorage, AK 99508-4336 Soldotna, AK 99669-7714 Denver, CO 80201-3557 Mr. Oliver Sternicki Richard Wagner Darwin Waldsmith Well Integrity Engineer P.O. Box 60868 P.O. Box 39309 BP Exploration (Alaska), Inc. Fairbanks, AK 99706 Ninilchik, AK 99639 P.O. Box 196612 Anchorage, AK 99519-6612 Angela K. Singh 13 BP Exploration (Alaska) Inc. Oliver Sternicki, BPXA Well Integrity Engineer Post Office Box 196612 Anchorage, Alaska 99519-6612 February 19, 2016 Ms. Cathy P. Foerster Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, Alaska 99501 C,�- E I V E D by FEB 2 9 2015 AOGCC Subject: Prudhoe Bay Unit Well L-105 (PTD #202058) Request for amendment to NO 24.004 Dear Ms. Foerster, BP Exploration (Alaska) Inc. requests an amendment to Administrative Approval A10 24.004 for continued gas injection into PBU L-105 (PTD #202058) Well L-105 was approved for continued gas injection on January 18, 2006 per A10 24.004 due to high OA pressure. BPXA would like to request two amendments to A10 24.004, these are to change the MIT -IA frequency from 12 months to 24 months and eliminate the LLR-OA requirement. The first requested change is to the required condition for BPXA to perform an annual MIT -IA to 4000 psi. L-105 has passed 19 MIT-IAs to 4000 psi since 2006. Competent primary and secondary barriers have been proven over the last 10 years with no evidence of impairment. BPXA requests to change the required MIT -IA frequency to every 24 months. The second requested change is to the required condition that BPX perform an annual LLR-OA to 3000 psi. The purpose of the required LLR test was brought into question in correspondence between BPXA and the AOGCC in January 2014. The AOGCC response was that testing the OA holds no value. The AOGCC recommendation was to revise A10 24.004 to remove this requirement. In summary, BPXA requests to revise conditions 3 and 4 of NO 24.004 for continued gas injection. If you have any questions, please call me at 564-4301 or Whitney Pettus/ Kevin Parks at 659-5102. Sincer Oliver Sternicki BPXA Well Integrity Engineer Attachments: Email Correspondence TIO Injection Plot Wellbore Schematic Cc: Pettus/ Parks GC2 Operations Team Leader James Schrider Ryan Daniel Doug Cismoski L-105 Email Correspondence between BPXA and AOGCC: From: Regg, James B (DOA) [mailto:jim.regg@alaska gov] Sent: Wednesday, February 05, 2014 12:01 PM To: AK, D&C Well Integrity Coordinator; Wallace, Chris D (DOA) Cc: Brooks, Phoebe L (DOA); DOA AOGCC Prudhoe Bay Subject: RE: PBU L-105 (Admin Approval 24.004) Based on your response, I see zero value in the LLRT-OA (no analysis; no criteria; no standardized approach). My recommendation is to revise the Admin Approvals that rely on LLRT's as condition of approval. Specific to PBU L-105 (AIO 24.004), confirming tubing and IA as barriers to injected fluid release should be sufficient justification for continued injection. There is no value in testing the OA when you know it will fail; gas sample analysis is option as required in AIO 3.025. Spreadsheet is attached in Excel and pdf versions. Jim Regg Supervisor, Inspections AOGCC 333 W. 7th Ave, Suite 100 Anchorage, AK 99501 907-793-1236 From: AK, D&C Well Integrity Coordinator[mailto:AKDCWellIntegrityCoordinatorc&bp com] Sent: Wednesday, February 05, 2014 11:11 AM To: Regg, James B (DOA) Cc: Brooks, Phoebe L (DOA); Wallace, Chris D (DOA) Subject: RE: PBU L-105 (Admin Approval 24.004) Good morning Jim, I apologize for the delay. Below is a summary of my findings. A leak rate test is typically done to determine what type of diagnostic/intervention work needs to be done when investigating an anomaly. The purpose of the annual liquid leak rate for L-105 was to ascertain if downhole conditions changed. No criteria was established for what an acceptable rate would be. The rate has changed slightly from year to year due to how small a volume used, temperatures, etc. If there was a change on some order of magnitude, this would not necessarily indicate a deterioration in the wellbore integrity; rather a change in condition of the OA shoe. The annual MIT -IA confirms integrity, not the OA test. 3. There is another WAG well that has an external hydrate source: N-08A (PTD #2000090). For this well AIO 3.025 requires a 2 year MIT -IA and a 2 yr OA gas sample. This would be an alternative method to confirm the OA gas is dissimilar to the injected gas. 4. The spreadsheet you sent has become corrupted — do you mind resending it? Thank you, Laurie Climer (Alternate: Jack Disbrow) BP Alaska - Well Integrity Coordinator G . WIC Office: 907.659.5102 WIC Email: AKDCWelllntelzrityCoordinatorna BP com From: Regg, James B (DOA) [mailto•jim regg@alaska gov] Sent: Tuesday, February 04, 2014 11:21 AM To: AK, D&C Well Integrity Coordinator Cc: Brooks, Phoebe L (DOA); Wallace, Chris D (DOA) Subject: RE: PBU L-105 (Admin Approval 24.004) Any progress addressing my 3 questions? Jim Regg Supervisor, Inspections AOGCC 333 W. 7th Ave, Suite 100 Anchorage, AK 99501 907-793-1236 From: Regg, James B (DOA) Sent: Wednesday, January 15, 2014 10:32 AM To: 'AK, D&C Well Integrity Coordinator' Subject: RE: PBU L-105 (Admin Approval 24.004) Laurie — Thanks for your time investment in gathering this information and for discussing Leak Loss Rate (LLR) tests with me this morning. As noted during our conversation, ultimately I am trying to understand the LLR test in the context of what we are doing with injection well administrative approvals where the conditions of approval establish boundaries for continued operation. Typically we have a pass -fail criteria associated with a test that allow us to determine when conditions warrant further evaluation or suspending injection activities until repairs can be completed. According to our records, there are only 2 wells that have the LLR test as part of an AA condition of approval — PBU L-105 (PTD 2020580; AIO 24.004) and PBU 11-29 (PTD 1940520; Sundry 303-288), so the LLR test is unusual (from the injection waiver standpoint). To reiterate my questions: 1) What is the purpose of a LLR test? 2) Is there any pass -fail criteria for the LLR test? If just used to trend the rate, what deviation from the trend becomes a concern? 3) Is there something else (other than LLR test) that assures us the well has proper integrity to continue injection operations? Also as mentioned, I have attached a simple spreadsheet that calculates the LLR from info presented in the MIT forms and WSR's you provided. Several of the tests calculate differently than reported — these are highlighted. Thanks again for your help. Jim Regg Supervisor, Inspections AOGCC 333 W. 7th Ave, Suite 100 Anchorage, AK 99501 907-793-1236 From: AK, D&C Well Integrity Coordinator[mailto:AKDCWellIntegrityCoordinatorcd)bp com] Sent: Tuesday, January 14, 2014 12:36 PM To: Regg, James B (DOA) Subject: RE: PBU L-105 (Admin Approval 24.004) Jim, Volumes pumped were recorded in the WSR, however were not documented on all of the spreadsheets provided. I have amended the reports that did not include the volume used, and added copies of the WSR for those years. Regards, Laurie Climer (Alternate: Jack Disbrow) BP Alaska - Well Integrity Coordinator WIC Office: 907.659.5102 WIC Email: AKDCWelllntegri!yCoordinatorCa_BP com From: Regg, James B (DOA) [mailto:jim.regg alaska gov] Sent: Tuesday, January 14, 2014 10:11 AM To: AK, D&C Well Integrity Coordinator Subject: RE: PBU L-105 (Admin Approval 24.004) How are you calculating a leak rate without knowing the volumes of fluid pumped? Jim Regg Supervisor, Inspections AOGCC 333 W. 7th Ave, Suite 100 Anchorage, AK 99501 907-793-1236 From: AK, D&C Well Integrity Coordinator [mailto:AKDCWellIntegrityCoordinator(abbp com] Sent: Monday, January 13, 2014 3:48 PM To: Regg, James B (DOA) Cc: Wallace, Chris D (DOA) Subject: RE: PBU L-105 (Admin Approval 24.004) Jim, Attached is a zip file with the OA-LLR forms enclosed. The form for the test performed on 9/23/10 was not in our archives, however I used the Well Service Report (enclosed) to put the data into standard formatting. Regards, Laurie Climer (Alternate: Jack Disbrow) BP Alaska - Well Integrity Coordinator 5 WIC Office: 907.659.5102 WIC Email: AKDCWelllntegrityCoordinator@BP.com From: Regg, James B (DOA) [mailto:jim.regg alaska gov] Sent: Monday, January 13, 2014 2:56 PM To: AK, D&C Well Integrity Coordinator Subject: RE: PBU L-105 (Admin Approval 24.004) Yes, provide the data that substantiates the leak rates. Jim Regg Supervisor, Inspections AOGCC 333 W. 7th Ave, Suite 100 Anchorage, AK 99501 907-793-1236 From: AK, D&C Well Integrity Coordinator [mailto:AKDCWellInteciritvCoordinator@bp.com Sent: Monday, January 13, 2014 2:51 PM To: Regg, James B (DOA) Cc: DOA AOGCC Prudhoe Bay; Wallace, Chris D (DOA) Subject: RE: PBU L-105 (Admin Approval 24.004) Jim, Below are the recorded dates and rates for the requested OA liquid leak rates obtained on Injector L-105 (PTD #2020580) from 2007 onwards. Do you need copies of the report spreadsheets? Date Pressure Notes 1/8/2014 3000 LLR-OA 0.09 gpm, witnessed by Jeff Turkin on 1/27/2013 3000 LLR-OA.4gpm, witnessed by Bob Noble 1/28/2012 3000 LLR-OA .012 gpm, witness waived by C. Schieve 3/3/2011 3000 LLR-OA 0.73 gpm, witnessed by Lou Grimaldi 9/23/2010 3000 LLR-OA 0.46 gpm, witness waived 10/30/2009 3000 LLR — .31 gpm witnessed by Chuck Scheve 10/3/2008 3000 LLR-OA = .60 gpm witnessed by John Cris 11/4/2007 3000 LLR OA = .38 gpm, witness waived by John Cris Regards, Laurie Climer (Alternate: Jack Disbrow) BP Alaska - Well Integrity Coordinator WIC Office: 907.659.5102 WIC Email: AKDCWellIntegrityCoordinator@BP.com From: Regg, James B (DOA) [mailto:jim.regg alaska.gov] Sent: Monday, January 13, 2014 11:54 AM To: AK, D&C Well Integrity Coordinator Cc: DOA AOGCC Prudhoe Bay; Wallace, Chris D (DOA) Subject: PBU L-105 (Admin Approval 24.004) Admin Approval 24.004 (effective 1/18/2006) requires an annual LLR-OA and MITIA. AOGCC records include the results of the required annual MITIAs; the LLR-OA records are incomplete. Please provide data from the LLR tests beginning in 2007. Jim Regg Supervisor, Inspections AOGCC 333 W. 7th Ave, Suite 100 Anchorage, AK 99501 907-793-1236 L-105 TIO Plot L- 105 TIO Plot '1, Dc" - - -- 11 -11 - -1. 1. "., [.Lat.. t LAY-- '5 3&'31 15 1 !'(,! 'I E �, �n2 T 5 L-1051nmection Plot %Is 7P 2C(, 7 XIC Ex, 2X :Ct, ; Dale Stal,'Bd 02/T9/2014 2/192016 i TO Gnd Smt. Cuaor Value x naim15 y 4,506 -41- Tbg IA -BOA OOA 000A On Date Swa/Erd WIS12DU Irl G"d Log Scale cam VAM iVfWilMl 4 y 2M milp 9w —GI On TFIW = A.1118" f%M V%E UJTAD = FM ACRFAMR= _ BAKMC tA1=. BJ?V = 1�% An(ra x 24.9d" 400' 46' � 644E Odum1VD= B�Op SS p=sra"E OONDLICTOF D- L-BD BTG D= 8.83d Minimum 10 3.726- @ 7873" 4-11r HES XN NIPPLE 4-1Y TSG, IZOV. L-80 RA 0152 bp(, D= 3.958' F'E *XMTIONSUANWRY REF LOG: SO fEEZE FEW RE()ORD ANGLEAT TOPPERF: 31' @ WIZ We, Fader b Ftoducbm+ DH for hisbrical pert dale SUE SW NFH2VAl nrSgz 11 SHDT SC?7 411r 6 7700 - 7720 S 107717114 07/1aM, 4-IJT 6 7786 - TBD5 S 0711IM4 07/18/02 33V 6 8012 W32 0 o8law 4-Ire 6 8023 - 8p43 0 07/16102 3-3 W 6 6040 - W74 0 08 law 3-8' 6 $104 - 8110 0 f 3 M07102 7' CSG, 2600, L-80 BTGM, .0383 bpf, D = 8.276" L-105 Schematic SAFM!YLN;OTje�g:3S ArAI FNGS "StAOF t28 PPSL-I05 Ul-OELLREQLNRESASSSVWHENON I IIf'w--I 0-5J8' uu POFZT m 1 ak 112" HEB x MP, D = 3.813" r.AS1 Fr LMLFW is ST AID TVD DEV TYPE VLV I LATCii PORE C14TE 3 3966 3489 41 KBG-2 DW BK 0 OW15114 2 5255 4490 1 42 1 KBCr2 OW BK 0 07r2m 101102 t 7569 6186 37 KBG 2 OW BK p 7635• 41/2 F65 X »P D = 3.813" p _704d' 7" X 4.1fY' BKR Fiji Fi(R, D�3.89' ^ 781T 41i214�XMP.D=3.813" rx4-1r2-eKRS3FiCRo=s.e7s t ^ 7852' 4t/2 Ff?S X PIP G= 3.813' 7lD4' 7' M%M9MJ0W w1 F%TAG FF W 1=a7•MOkRXMJOMw1FtA DATE REV 8Y COMME 5 5I TE REV BY Wbi�B4F5 _._ 07121102 NOM ORGIhML COYPLEFFON 01/17112 Th"JOADOW H2S SAF Err W"M OSM02 D9118r02 R,11h JL.Y'KK %VUFUATE A3 07/3W14 08r17114 J FBLy $ETPLOWTHRUSM(07113114) F{1LL GAUKi� 10/13102 JBOKAK GLV OO OW12N4 JDA' SET CRr VALVE/ FS 04r0B1p3 DRSJfP TV0MV C0R;S-710F45 O9V15114 J M P VZ GLV f13 02115111 MEVJ WD ACDM SSSV SAFM NUTS SOFFALFS llf4T VALE: L-105 AR No: 50-029-2307500 SEC 34, T12R R11F 2416 FSL $ 170T FVk RP ExpkxaWm (Alaska) #12 bp ") ) ) January 26, 2005 0,'· .¡¡,. . ( / ~... [,::, ~ BP Exploration (Alaska) Inc. 900 East Benson Boulevard P.O. Box 196612 Anchorage, Alaska 99519-6612 (907) 561-5111 Jane Williamson n, I"" " n r) 11 0'áck Hartz ,Jf'N Þ ¿ (.l. v Alaska Oil and Gas Cons.ervation CO~:Wi~~~iAq. 333 West ih Avenue, SUIte 100 ' Anchorage, AK 99501 RE: Extension of Administrative Approval of CO 471.003 and Ala 24.001 for Wells V-I00, L-I05 and L-l 08 Dear Ms. Williamson and Mr. Hartz: On June 29,2004 the Commission granted approval for a pilot miscible injection (MI) project in the Borealis Oil Pool for the V-I00, L-I05 and L-I08 Wells. On October 31, 2004 the COlnmission granted an extension to this pilot project which allowed operation until January 31, 2005. BP Exploration (Alaska), Inc., ("BPXA"), on behalf of the Prudhoe Bay Owners, now requests a 90-day extension to the existing authorization to continue the pilot MI project on Wells V-I00, L-I05 and L-I08. This extension will allow for continued pilot operations while the Commission reviews and acts on the BPXA's January 12,2005 request to lllodify AIO No. 24 to encOlllpass the injection ofMI to enhance oil recovery.. The requested extension will help provide extra data required for a prudent evaluation. Please feel free to call either Bruce Smith (564-5093) or n1yselfto discuss this matter further. I Please call if you have any questions. Sincerely, ß~v...~y, '-V A~A Gil Beuhler GPB WEST Manager srQoI C. (~.,eV'+ ß·~I.1~,IQv C , /2 6/ D.Ç CC: Mark Vela (ExxonMobil) Dan Kruse (CPAI) Bradley Brice (Forest Oil) Steve Wright (Chevron-Texaco) Bruce Smith (BPXA) Gary Gustafson (BPXA) Claire Sullivan (BPXA) Leslie Senden (BPXA) Mike Kotowski, DNR #11 ) ) BP Exploration (Alaska) Inc. Steve Rossberg, Wells Manager Post Office Box 196612 Anchorage, Alaska 99519-6612 December 15, 2005 Mr. John Norman, Chairman Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, Alaska 99501 Subject: Prudhoe Bay Unit L-1 05 (PTD 2020580) Request for Administrative Approval to Continue WAG Injection Operations Dear Mr. Norman, BP Exploration (Alaska) Inc. requests approval to continue WAG injection operations into well L-105. Well L-105 has high outer annulus (OA) pressure, which stabilizes between approximately 900 to 1100 psi (consistently higher than IA pressure). An OA gas sample indicates hydrate gas. Based upon sound engineering practice, two competent barriers have been established and thus the well can be safely operated. The barriers have passed pressure tests to 1.2 times the maximum anticipated injection pressure and observed annulus operating pressures do not exceed 45%) of the casing's rated burst pressure. The attached proposed operating and monitoring plan includes frequent monitoring of the competency of the barriers by recording daily pressure and injection data, increasing the frequency of mechanical integrity tests and increased reporting to the AOGCC. These measures will ensure continued safe WAG injection operations. Considering the presence of two competent barriers, physical repairs in this well are not necessary for safe operation. If one of the competent barriers should become compromised, the well will be shut in, the Commission notified and physical corrective options will be evaluated. This request is consistent with Area Injection Order 24 in that sound engineering practices have established two competent barriers and an operating and monitoring plan has been developed to ensure continued safe operations If you require any additional information, please contact me at 564-5637 or Joe Anders / Anna Dube at 659-5102. S, ince:eIY'j ,,J ??~Æ ¡J . Steve Rossberg ~ ') ) Wells Manager Attachments Technical Justification for Administrative Relief Request Well bore Schematic TIG Plot ) ) Prudhoe Bay I Borealis Well L-105 Technical Justification for Administrative Relief Request December 15,2005 Well History and Status Well L-105 (PTD 2020580) outer annulus (OA) pressure stabilizes between approximately 900 to 1100 psi (consistently higher than IA pressure). An OA gas sample indicates the gas source is hydrates. An MIT-IA to 4000 psi passed on 12/28/05, confirming competent primary and secondary well barrier systems preventing release of reservoir fluids. An MIT-OA failed on 10/19/05, losing 1540 psi per 5 minutes. The well has been on MI injection and is currently shut-in. Recent Well Events > 06/14/04: CITOA Passed to 3000 psi, LLR = 0 .75 gpm > 06/17/04: PPPOT-T Passed to 5000 psi, PPPOT-IC Passed to 3200 psi > 10/07/04: OA bled from 1050 to 300 psi, built up to 820 next day. > 10/31/04: Samples taken on IA and OA - OA sample is indicative of hydrates. IA sample behaves as a condensate, differing considerably from OA sample. > 10/19/05: MIT-OA to 3000 psi Failed, > 11/28/05: MIT-IA to 4000 psi Passed, AOGCC witnessed by Chuck Scheve. Barrier and Hazard Evaluation The well has two competent well barrier systems to prevent the atmospheric release of reservoir fluids and to safely operate the well. The primary barrier is the tubing/packer. In the event of a leak, the secondary well barrier system composed of the production casing will contain any pressure. Both of these systems have been pressure tested to 4000 psi to ensure competency. Barrier competency is monitored using wellhead pressure plots (TIO plot) and periodic inner annulus pressure tests. Sustained OA Pressure to Gas Hydrates The well is experiencing sustained OA pressure above 1000 psi. The source of the pressure appears to be gas hydrates. L pad is positioned on a large gas hydrate deposit and gas analysis of the OA gas indicates a composition of 99% methane. The surface casing has been pressure tested to 3000 psi and a slow leak off of 0.75 gpm was noted. Surface casing integrity at the surface will be confirmed through an annual OA leak off test to 3000 psi Proposed Operating and Monitoring Plan 1. Continue WAG injection. 2. Record wellhead pressures and injection rate daily. 3. Submit a report monthly of well pressures and injection rates to the AOGCC. 4. Perform an annual LLR-OA to 3000 psi. ) 5. Perform an annual MIT-IA to 4000 psi. ) 6. Notify the AOGCC if there is any indication of a change in well mechanical condition. OOOA OOA OA IA 4,000 ) TREE = W8...LHEA 0 = A CTUA TOR = KB. ELB/ = BF. ELB/ = Ï<ÒP; Max Ängle = Öi3ti.JrilrVïÖ = ÖaturilTVO= 4-1/16" CIW Ffv1C NA 78.8' 24.94' "4ÖÖ' 46° @6446' 8158' 660Ö¡SS 9-5/8" CSG, 40#, L-80, 10 = 8.835" 1--1 2856' ~ Minimum ID = 3.725" @ 7873' 4-1/2" HES XN NIPPLE 4-1/2" lEG, 12.6#, L-80, .0152 bpf, 10 = 3.958" 1--1 7884' PERFORATION SUMMARY REF LOG: SQUEEZE PERF RECORD ANGLE ATTOP PERF: 34 @ 7700' Note: Refer to Production DB for his torical perf data SIZE SPF INTERVAL Opn/Sqz DATE 4-1/2" 6 7700 - 7722 S 07/17/02 4-1/2" 6 7785 - 7805 S 07/17/02 3-3/8" 6 8012 - 8032 0 08/18/02 4-1/2" 6 8023 - 8043 0 07/17/02 3-3/8" 6 8040 - 8074 0 08/18/02 3-3/8" 6 8104 - 8110 0 08/07/02 1 FBTD H 8267' 1 7" CSG, 26#, L-80, 10 = 6.276" 1-1 8350' DATE 07/20/02 08/05/02 08/18/02 10/13/02 04/08/03 DATE REV BY COMMENTS TWA/KK ORIGINAL COMA..ETION RL/tlh GL V UPOA. TE JLJ/KK ADPffiFS JB/KA K GL V C/O DRS/TP TVD/rv1D CORRECTIONS = ') L-105 SAFETY NOTES: =--1 980' 1-1 9-5/8" TAM PORT COLLAR 1 I I 1 2194' 1--1 4-1/2" HES X NIP, 10 = 3.813" I ~ GAS LIFT MANDRELS L ST MD lVD DEV TYPE VLV LATCH PORT DATE 3 3966 3489 41 KBG-2 DMY BK 0 10/13/02 2 5285 4498 42 KBG-2 DMY BK 0 07/20/02 1 7569 6186 37 KBG-2 DMY BK 0 10/13/02 I 7635' 1-1 4-1/2" HES X NIP, 0 = 3.813" I 7646' H 7" X 4-1/2" BKR PREMIER PKR, 10 = 3.89" I :8: z I . 7817' 1-1 4-1/2" HES X NIP, 0 = 3.813" 1 7828' H 7" X 4-1/2" BKR S-3 A<R, 10 = 3.875" 1 7852' 1-1 4-1/2" HES X NIP, 0 = 3.813" I L 7873' H 4-1/2" HES XN NIP, 10= 3.725" 1 7885' 1-1 4-1/2" WLEG, 10 = 4.00" I :g ~ I~ ~ ~ 7904' H 7" 26# X 20' PUP JT WI RA TAG (ELM) ~ 8045' H 7" 26# X 20' PlP JT WI RA TAG (ELM) ~ REV BY co I'v1v1 ENTS BOREALIS UNIT W8...L: L-105 ÆRMIT No: 2020580 API No: 50-029-23075-00 SEC 34, T12N, R11 E 2415' NSL & 3573' WEL 8P EXploration (Alaska) #10 ) ('ñJ,',i,i: '-,' V'',: .., ',I""r-'!;~',\, , :~':'U'.'" ',.'¡:;] ".,.,',r.ï,!' ',\, :¡:I ,: "\1 ',i ;'1 ~ "<\ ..¡: t.w \ " ',\ W '¡' iJ\j' lb r-', '~..:::J "'U"I ',I'¡ li::"~ :\ j ',I 'JI,i \,0 U r~\ :i";'~'1 i-""\ /"\ '\ ,I ! ¡1 \i !.L.J l D\!¡ / jJ'\, '\<~""" /;""',11 ,j ! ï~\ 'I, ~1 I," :i..) 1...:;\ i~ Li 'w \\,~../ ~1 /1\ /J\ /J!J FRANK H. MURKOWSKI, GOVERNOR A.IIA.SKA OIL AND GAS CONSERVATION COMMISSION 333 W. 7TH AVENUE, SUITE 100 ANCHORAGE. ALASKA 99501-3539 PHONE (907) 279·1433 FAX (907) 276·7542 September 27, 2004 Proposals to Amend Underground Injection Orders to Incorporate Consistent Language Addressing the Mechanical Integrity of Wells The Alaska Oil and Gas Conservation Commission ("Commission"), on its own motion, proposes to amend the rules addressing mechanical integrity of wells in all existing area injection orders, storage injection orders, enhanced recovery injection orders, and disposal injection orders. There are numerous different versions of wording used for each of the rules that create confusion and inconsistent implementation of well integrity requirements for injection wells when pressure communication or leakage is indicated. In several injection orders, there are no rules addressing requirements for notification and well disposition when a well integrity failure is identified. Wording used for the administrative approval rule in injection orders is similarly inconsistent. The Commission proposes these three rules as replacements in all injection orders: Demonstration of Mechanical Integrity The mechanical integrity of an injection well must be demonstrated before injection begins, at least once every four years thereafter (except at least once every two years in the case of a slurry injection well), and before returning a well to service following a workover affecting mechanical integrity. Unless an alternate means is approved by the Commission, mechanical integrity must be demonstrated by a tubing/casing annulus pressure test using a surface pressure of 1500 psi or 0.25 psi/ft multiplied by the vertical depth of the packer, whichever is greater, that shows stabilizing pressure and does not change more than 10 percent during a 30 minute period. The Commission must be notified at least 24 hours in advance to enable a representative to witness mechanical integrity tests. Well Integrity Failure and Confinement Whenever any pressure communication, leakage or lack of injection zone isolation is indicated by injection rate, operating pressure observation, test, survey, log, or other evidence, the operator shall immediately notify the Commission and submit a plan of corrective action on a Form 10-403 for Commission approval. The operator shall immediately shut in the well if continued operation would be unsafe or would threaten contamination of freshwater, or if so directed by the Commission. A monthly report of daily tubing and casing annuli pressures and injection rates must be provided to the Commission for all injection wells indicating well integrity failure or lack of injection zone isolation. Administrative Actions Unless notice and public hearing is otherwise required, the Commission may administratively waive or amend any rule stated above as long as the change does not promote waste or jeopardize correlative rights, is based on sound engineering and geoscience principles, and will not result in fluid movement outside of the authorized injection zone. The following table identifies the specific rules affected by the rewrite. Injection Order "Demonstration of Mechanical Integrity" Affected Rules "Well Integrity Failure and Confinement" " Administrative Action" Area In'; ection Orders AIO 1 - Duck Island Unit AIO 2B - Kuparuk River Unit; Kuparuk River, Tabasco, Ugnu, West Sak Fields AIO 3 - Prudhoe Bay Unit; Western Operating Area AIO 4C - Prudhoe Bay Unit; Eastern Operating Area AID 5 - Trading Bay Unit; McArthur River Field AIO 6 - Granite Point Field; Northern Portion AIO 7 - Middle Ground Shoal; Northern Portion AID 8 - Middle Ground Shoal; Southern Portion AIO 9 - Middle Ground Shoal; Central Portion AIO lOB - Milne Point Unit; Schrader Bluff, Sag River, Kuparuk River Pools AIO 11 - Granite Point Field; Southern Portion AID 12 - Trading Bay Field; Southern Portion AID 13A - Swanson River Unit AID 14A - Prudhoe Bay Unit; Niakuk Oil Pool AID 15 - West McArthur 6 7 9 6 7 9 6 7 9 6 7 9 6 6 9 6 7 9 6 7 9 6 7 9 6 7 9 4 5 8 5 6 8 5 6 8 6 7 9 4 5 8 5 6 9 ) ) Affected Rules "Demonstration of "Well Integrity "Administrati ve Injection Order Mechanical Failure and Action" Integrity" Confinement" River Unit AIO 16 - Kuparuk River 6 7 10 Unit; Tam Oil Pool 6 8 AIO 17 - Badami Unit 5 AIO 18A - Colville River 6 7 11 Unit; Alpine Oil Pool AIO 19 - Duck Island Unit; 5 6 9 Eider Oil Pool AIO 20 - Prudhoe Bay Unit; 5 6 9 Midnight Sun Oil Pool AIO 21 - Kuparuk River 4 No rule 6 Unit; Meltwater Oil Pool AIO 22C - Prudhoe Bay 5 No rule 8 U nit; Aurora Oil Pool 6 9 AIO 23 - Northstar Unit 5 AIO 24 - Prudhoe Bay Unit; 5 No rule 9 Borealis Oil Pool AIO 25 - Prudhoe Bay Unit; 6 8 13 Polaris Oil Pool AIO 26 - Prudhoe Bay Unit; 6 No rule 13 Orion Oil Pool Disposal Injection Orders DIO 1 - Kenai Unit; KU No rule No rule No rule WD-l DIO 2 - Kenai Unit; KU 14- No rule No rule No rule 4 DIO 3 - Beluga River Gas No rule No rule No rule Field; BR \VD-l DIO 4 - Beaver Creek Unit; No rule No rule No rule BC-2 DIO 5 - Barrow Gas Field; No rule No rule No rule South Barrow #5 DIO 6 - Lewis River Gas No rule No rule 3 Field; WD-l DIO 7 - West McArthur 2 3 5 River Unit; Wl\1RU D-l DIO 8 - Beaver Creek Unit; 2 3 5 BC-3 DIO 9 - Kenai Unit; KU 11- 2 3 4 17 D 10 10 - Granite Point 2 3 5 Field; GP 44-11 Injection Order "Demonstration of Mechanical Integrity" DIO 11 - Kenai Unit; KU 24-7 DIO 12 - Badami Unit; WD- 1, WD- 2 DIO 13 - North Trading Bay Unit; S-4 DIO 14 - Houston Gas Field; Well #3 DID 15 - North Trading Bay Unit; S-5 DIO 16 - West McArthur River Unit; WMRU 4D DIO 17 - North Cook Inlet Unit; NCill A-12 010 19 - Granite Point Field; W. Granite Point State 17587 #3 DIO 20 - Pioneer Unit; Well 1702-15DA WDW DIO 21 - Flaxman Island; Alaska State A-2 DIO 22 - Redoubt Unit; RU Dl D 10 23 - Ivan River Unit; IRU 14-31 DIO 24 - Nicolai Creek Unit; NCD #5 DIO 25 - Sterling Unit; SU 43-9 DID 26 - Kustatan Field; KFl Storage Injection Orders SIO 1 - Prudhoe Bay Unit, Point McIntyre Field #6 S10 2A- Swanson River Unit; KGSF #1 S103 - Swanson River Unit; KGSF #2 Enhanced Recovery Inj ection Orders EIO 1 - Prudhoe Bay Unit; Prudhoe Bay Field, Schrader Bluff Formation Well V-IOS 2 2 2 2 2 2 2 3 3 3 3 No rule 3 3 No rule 2 2 No rule Affected Rules "Well Integrity "Administrative Failure and Action" Confinement" 3 4 3 5 3 6 3 5 3 Rule not numbered 3 5 3 6 4 6 4 6 4 7 No rule 6 No rule 6 Order expired 4 7 4 7 No rule No rule No rule 6 No rule 7 No rule 8 Injection Order EIO 2 - Redoubt Unit; RU-6 ) "Demonstration of Mechanical Integrity" 5 ') Affected Rules "Well Integrity Failure and Confinement" 8 "Administrative Action" 9 I 02-902 (Rev. 3/94) Publisher/Original Copies: Department Fiscal, Department, Receiving AO.FRM STATE OF ALASKA ADVERTISING ORDER ~~EBºIT(jNl,.FO~:IÞI"Ç)lC¡:~DØRE~$ NOTICE TO PUBLISHER ADVERTISING ORDER NO. INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO" CERTIFIED AO-02514016 AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COpy OF ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE F R o M AOGCC 333 West ih Avenue, Suite 100 Anchorage,AJ( 99501 907-793-1221 AGENCY CONTACT DATE OF A.O. lady Colombie September 77, 7004 PHONE pCÑ .(907) 793 -] 77] DATES ADVERTISEMENT REQUIRED: T o JournalofComrnerce 301 Arctic Slope Ave #350 Anchorage, AJ( 99518 October 3, 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 Public Notices ) Subject: Public Notices From: Jody Colombie <jody_colombie@admin.state.ak.us> Date: Wed, 29 Sep2004 13:01 :04 -0800 To: undisclosed-recipients:; BC,C:' 'Cynthia B ,Mciver <bren_ mciver@admin.state.ak:.us> ,Angela Webb <angie_webb@admin.state.ak.us>, Robert E Mintz<robert _miritz.@law.state~ak:~us>, Christine Hansen <ç.hansen@iogcc.st~te.ok.us>, Terrie Hubble <hubbled@bp.com>"SondraStewrnan <StewmaSD@BP.com>, Scott &,' Cammy Taylor <staylor@'alaskét.net>"stanekj" ' <stanekj.@unocal.com>, ~colaw <ecolaw@trostees.org>, roseré;igsdale <roseragsdale@gci.net>, tnnjrl <tnnjr 1 @ao1.com> ,jbriddle:<jbriddle@11]arathonoiLcom.>" rockhill <rockhil1@aoga.örg>, shaneg <shaneg@ev~rgreengas~com>, jdarlington <jdarlirigton@forestoitcorri> ,nelSon <knelsòn@petroleumnews.coni>, cboddy <cboddy@usiben~.c()#t~~ ]\'~ark Dalton, , <mark.dalton@hdrinc.com>, Shannon'Dormelly <shani1.on.donneUy@con.ocophillips.com>~. "Mark P. Worcester" <mark.p.worcester@conòcophillìps.com>,"Jerry ç. pethlefs" "': ~ '," <jerry.c.dethlefs@conocophillips.com>,Bob <bob@inletkeepèr~org>, wdv <wdv@dnr.state.ak.us>, tjr <tjr@dnr ~state.ak:. us>, bbritch <þbtitch@a1aska.net>,mjnelson <mjnelson@putvinge~.com>, Charles O'Donnell <charles~o'donnell@veco.com>, "RandyL. Skillern" <SkilleRL@BP.com>, "Deborah J.,Jones" ,<JonesD6@BP.corit>, "Paul G. Hyatt" <hyattpg@BP.com>,,"Steven R. Rossberg" <RossbeRS@BP .com>, Lois <lois@inle~eeper~org>, DaJ1 Bross<kuacnews@kuac.org>, Gordon Pospisil <PospisG@BP.com>, "Francis S. Sommer" <SonimetFS@BP.com>, Mikel Schultz <MikeI.Schultz@BP.com>, ItNick'W. Glover" <GloverNW@BP~com>,,"Dåryl J. Kleppiri" <KleppiDE@BP.com>, "JanetD. Platt" <PlattJD@BP.com>,"Rosánne M. Jaco.bsen" <lacobsRM@BP .com>, ddonkel <ddonkel@cf1.rr.com>, Çollins MOUnt <c()l1ins~ mount@revenue.state.ak.us>, mckay <mckay@gci.net>, BarbaraF Fullmer <barbaraj:,fullmer@conocophil1ips~com>, bocastwf <bocastwf@bp'.com>" Charles Bark~r ~ ' <barker@usgs.gov>",doug_schultze <doug_schultze@xtoenergy.com,>,:Hank Alford ' <hank.alford@exxonmobil.com>, Mark Kovac <yesnûl@gci.'net>, gspfoff. <gspfoff@aurorapower.com>, Gregg Nady <gregg.nady@shell.com>, Fred St~ece , <fred.steece@state.sd.us>, rcrotty <rcrotty@ch2m.com>, j~jones <jejones@aurorapower.com>, dapa <dapa@alask(i.net>, jroderick <jroderick@gci.n~t>, eyancy <ey~cy@seal-tite.n~t>, " lames M. Ruud" <james~m~ruud@conocophinips.c<¡>m>, Brit Lively <ql~Palaska@*.net>,jah <jah@dni-.state.ak.us>, Kurt E Olsö~ <kurt _ olson@legis.state.ak.us>, buoltoje <buonoje@bp.com>, Mark Hanley ~mark _ hanley@anadarko.c~m>, loren _lernan <loren_leinart@gov.state.ak.µs>, Julie Houle <'¡ulie_houle@dnr.state.ak.us>, 10hn W Katz <jwkatz@sso.org>, Su.zan J Hill ' <suzan _ hill@dec.state.ak.us>, tablerk <tablerk@unoca1.com>"Brady <bradY@¡ioga.org>, Brian Havelock <beh@dnr.state.ak.us>, bpopp <bpopp@borough.ken~i.ak.us>, JitnWhite <jimwhite@satx.rr.com>, "lohn S. Haworth" <j()hn.s..~aw~rth@~xxorimobi1.com>, marty <marty@rkindustrial.com>" ghammons <ghammons@ao1.com>" l1l1c1eail <nnclean@pobox.alaska.net>,' mkm 7200 <rnkin7200@~ol~~öm>, Briart 'Gillespie <ifbmg@uaa.alaska.edu>, David L Boelens <dbpeleI1ß@a1:1forapower~com>, 'Todd Durkee <TDURKEE@KMG.com>, GarY Schultz <gary _schu1tz@dhr.state.ak.us>" Wayne'Rancier <~1'f9~~~~~~~rq~ada.,ca> ,Bill Miller <BîIl_ Miller@xto.~as~c~$>~' Brand~n ÇJagnon <b~ª~~~PE~~~~W"~Gom>, Palll Winslow <pmwins~ow@forestoiLcoÏn>, Garry Catron <c",..,a.."·,:í,..E"",,,o,.·,n,',',', :,',~".,..".,',.,;,:,@b".,..."e""·",.,·.c,.,.,.Q,.:.:,,,,m,.,..",.,.":,','.'.',>,',,.",·,~harmaìne C,opeland <copelasv@bp~com, >, Suzc;mne AllexaD. 5~~}~*~~l1èbD:e~~l"gy.com>, Kristin Dirks <kristin...:. dirks@dnr~~~tê.ak. ~>, K~:ynen Zeman <ijžê~a#(@~~~~Ó~oil.cQm>, J6lID Tower <Johri.Tower@eia.:40ë.gov>~ Bill ¡;'~wler' : <i3:Hl_F9wler@é:tIlª(farko.COM>, Vaughn Swartz <vaughn.swartz@rbccm.com>, Scott CranswiqlÇ 1 of 2 9/29/2004 1: 10 PM Public Notices 20f2 <scotLcranswick@mms.gov>, Brad McKim <mckimbs@BP .com> ~t$qSefi~d,thè.attétchedNotice,andAttachmentfortþe.~~9R0Sleci amendment of HDidèrground injecj::ion order::; andtne: Public Notice HappyValTey #10. J6çiy Colombie .,.,... ,". "., "'."."'''.........''''.'''''''.:.......''....'''' ....""."....:'.,.,,,."."::.,":..,,.,..:':.,,...'..,,. , : , :, ',,' ,'. , " '" ',. ,,", ",. , ',,' ,., " " ',.", ",.' ., ','.', iCont~nt-Type: application/msword iMechanlçalll1tegrItyprOpos~d.a9C:.,' ',. ',' " ,,",..,',...,',',', ,',"","'.,",'"....'.,'" ", ',..',.,',...'."',',,., ,...' ,",..,,'" b,',",',·,,'6,,· .4'·"," . " , ',,' ,," ':Content~Encodmg:ase ,.", '_~A"~__""_' ~'..,.'_~......;,_.~~,.~_._'R,...~..._w.;. ~._""V ._>......_., w~ .... ,., ',.'.' ." ..".,' .,.'" " · '1, ,','. ",.'. .. ,'i<> '. ".",','.'.'"....'.',..".",','.',',,"', ","',",".~' . ."...." '. ..',.,'.,.,'"',,,., . " ,','".',"'.' >...." '...'""",¡ContentH'Fyp{;!: applicatipn/msword Mechanlcallntegrlty of Wells Notlce.doc:,', ".'" ' ,'.',' " . ".,'", """",.,,. "".'. ,.,.. ',.,.',".,'."" ", .' ,."" ,1J;. ',',' 64' ! Content-Enco<!ing:' uase "...",."", .",..,.. ,"" """""".. .."".......... .. ".,' ,'..'" ,·i. ".', ,"/ '". ..!Colltent~Typ¢:aþpl,Ìcatìon/mswÖrd HapPYVaneytO:-ßearil1gNotlc~.dQc: ',. ',.', ,", , ,< .,' "",'.,'.. ".þ'" ,'. '6 ' Content~EncºdijIg:' ,,'ase,'. 4 :., ,",' '.,".,'.,.,: ,C' ;, ,'." ,'. .", . ," ',,', "",. . . , '"' . ".. .....~~.. .. .....,.-..,....."....., ._~~".~. ..,-~~ ,.-.~,' ~"~.., ...,..-.... ~"'........".~ '. .." -. ,... "~,_,, .... '_n. ,~..._..,..,.,.. ....._,_.. ,...,_"".~"..... _""..,~' .....",'~ _, ... , ..~ '1"~ _."..~.~_..:, ,.;.._-.;.,__._.._... .___._,'._~,,~ _......;_.:..,...,_......." .".......,.." .,' ,.____ ,.......... _..,'"._..~,.".__ 9/29/2004 1: 10 PM Public Notice ') , Subject: Public Notice From: Jody Colombie <jody _ colombie@admin.state.ak.us> j)ate: Wed, 29 Sep 2004 12:55:26 -0800 To: legal@alaskajöurna1.com Please publish the attached Notice on October 3, 2004. Thank you. Jody Colombie . Content-Type: application/rnsword Mechanical Integrity of Wells Notice.doc: . b 64 ¡Content-EncodIng: ase ..."..."... "., ",........."".. ..."..".,. ............"... Content-Type: application/msword ,Ad Order form.doc Content-Encoding: base64 1 of 1 9/29/2004 1: 10 PM Citgo Petroleum Corporation PO Box 3758 Tulsa, OK 74136 Mary Jones XTO Energy, Inc. Cartography 810 Houston Street, Ste 2000 Ft. Worth, TX 76102-6298 /ljall¿d /ÚÝ(rJ: David McCaleb IHS Energy Group GEPS 5333 Westheimer, Ste 100 Houston, TX 77056 Kelly Valadez Tesoro Refining and Marketing Co. Supply & Distribution 300 Concord Plaza Drive San Antonio, TX 78216 Robert Gravely 7681 South Kit Carson Drive Littleton, CO 80122 George Vaught, Jr. PO Box 13557 Denver, CO 80201-3557 Jerry Hodgden Hodgden Oil Company 408 18th Street Golden, CO 80401-2433 Richard Neahring NRG Associates President PO Box 1655 Colorado Springs, CO 80901 John Levorsen 200 North 3rd Street, #1202 Boise, 10 83702 Kay Munger Munger Oil Information Service, Inc PO Box 45738 Los Angeles, CA 90045-0738 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 Mark Wedman Halliburton 6900 Arctic Blvd. Anchorage, AK 99502 Schlumberger Drilling and Measurements 2525 Gambell Street #400 Anchorage, AK 99503 David Cusato 200 West 34th PMB 411 Anchorage, AK 99503 Baker Oil Tools 4730 Business Park Blvd., #44 Anchorage, AK 99503 Ciri Land Department PO Box 93330 Anchorage, AK 99503 Jill Schneider US Geological Survey 4200 University Dr. Anchorage, AK 99508 Gordon Severson 3201 Westmar Cr. Anchorage, AK 99508-4336 Jack Hakkila PO Box 190083 Anchorage, AK 99519 Darwin Waldsmith PO Box 39309 Ninilchick, AK 99639 James Gibbs PO Box 1597 Soldotna, AK 99669 Kenai National Wildlife Refuge Refuge Manager PO Box 2139 Soldotna, AK 99669-2139 Penny Vadla 399 West Riverview Avenue Soldotna, AK 99669-7714 Richard Wagner PO Box 60868 Fairbanks, AK 99706 Cliff Burglin PO Box 70131 Fairbanks, AK 99707 Bernie Karl K&K Recycling Inc. PO Box 58055 Fairbanks, AK 99711 Williams Thomas Arctic Slope Regional Corporation Land Department PO Box 129 Barrow, AK 99723 North Slope Borough PO Box 69 Barrow, AK 99723 · [Fwd: Re: Consistent Wording for Injectior. )ers - Well Integrity... ) ~ubject:,'[Fwd: Re: 'C9Ð.sist~ntWör4iIJ.~ifºt ~j~cti()!l.,Ord~r~ -Vfêll,Iºt¢gÇif)T;ÇR~vis~q)] Ffom: ,John Norman <j0lu1__ norman@a4miDJ~state~a.lLu~> p~~~:~rh 012st~~04.1I:9?::26~08qØ ',.' ,','... '".,."'..,, ..'.""'...",, ,','.', '.. '..",."..,' .,'.'.', ' ,"..',.' 1'9':,J()ØY<JÇöIQWº~'~,:>j:~ø.Yb¢ql()ipþié@a:~~~~~Ÿa.t~~~~I;lSR''.',., more -------- Original Message -------- Subject:Re: Consistent Wording for Injection Orders - Well Integrity (Revised) Date:Wed, 25 Aug 2004 16:49:40 -0800 From:Rob Mintz <robert mintz@law.state.ak.us> To:jim regg@admin.state.ak.us CC:dan seamount@admin.state.ak.us, john norman@admin.state.ak.us Jim, looks good, but I still think maybe it would be good to include the following sentence or something like it in the well integrity and confinement rule: "The operator shall shut in the well if so directed by the Commission." My thinking is that otherwise, an operator might argue that the Commission can only require the well to be shut in by going through an enforcement action, issuing an order after notice and opportunity for hearing, or meeting the strict requirements for an emergency order under the regulations. The proposed language makes clear that it is a condition of the authorization to inject, that the operator must shut in the well if directed by the Commission after a notification of loss of integrity, etc. »> James Regg <jim regg@admin.state.ak.us> 8/25/2004 3: 15:06 PM »> Rob - Thanks for the review; here's a redraft after considering your comments. I have accepted most of the suggested edits; also attached is response to questions you pose (responses are embedded in the comments, using brackets [JBR - ...J to set apart from your questions). Jim Regg Rob Mintz wrote: Jim, I have some questions abQut the draft language, which are shown as comments on the first document attached. Based on my current guesses about what the answers will be to my questions, I also have some suggested edits, which are shown as redlines on the second document attached. »> James Regg <jim regg~admin.state.ak.us> 8/17/20044:33:52 PM »> Please delete previous version (email sent 8/9/04); I found another inconsistency in the injection orders regarding well integrity that I have integrated into the proposed fix. Attached is a proposal for consistent language in our injection orders addressing 3 rules related to well integrity: - "Demonstration of Tubing/Casing Annulus Mechanical Integrity" - "Well Integrity Failure" - "Administrative Actions". This proposal includes input from all Sr. staff (except Jack). If you agree with the approach, I'll work with Jody to prepare the public notice. Main points - Demonstration of Tubing/Casing Annulus Mechanical Integrity - standardizes the wording used for mechanical integrity demonstrations, and establishes abililty to grant alternate methods (e.g., temp survey, logging, pressure monitoring in lieu of pressure testing 1 of 2 10/2/2004 4:07 PM [Fwd: Re: Consistent Wording for Injection ( ;rs - We \I Integrity... - specific to AIO 2C for Kuparuk, there is wording that is more appropriately included in Well Integrity Failure (i.e., more frequent MITs when communication demonstrated) - establishes more frequent MIT schedule for slurry injection wells (every 2 yrs) which is consistent with our current practice (but not addressed in regulati~)lls) Well Integrity Failure - retitles to "Well Integrity Failure and Confinement"; inserted language regarding injection zone integrity (see DIO 25 and 26) - consistent language regardless of type of injection (disposal, EOR, storage); - eliminates requirement for immediate shut in and secure; allows continued injection until Commission requires shut in if there is no threat to freshwater; - eliminates delay in notifying Commission after detect leakage or communication ("i.e., "immediately notify"); - removes language about notifying "other state and federal" agencies; - requires submittal of corrective action plan via 10-403; - requires monthly report of daily injection rate and pressures (tubing and all casing annuli); this is a requirement we currently impose when notified of leak or pressure communication; - notice and action not restricted to leaks above casing shoe as stated in several DIOs Administrative Actions - adopts "Administrative Actions" title (earlier rules used "Administrative Relief"): - consistent language regardless of type of injection (disposal, EOR, storage); - uses "administratively waive or amend" in lieu of terms like "revise", "reissue", etc.; - adds geoscience to "sound engineering principles"; - language is more generic regarding fluid movement out of zone; existing versions mention varying combinations of protecting "freshwater", "aquifers", "USDWs"; "risk of fluid movement"; "fluid escape from disposal zone" Jim Regg John K. Norman <John Norman@admin.state.us> Commissioner , Alaska Oil & Gas Conservation Commission 2of2 10/2/2004 4:07 PM IFwd: Re: Consistent Wording for Injection I )rs - Well Integrity... ') ~~bject: [Fwd: Re:ConsistentW o¡-dingfor llijéction Or4er~ ~ Wél1IhtegrìtY(R.evis~d)] ~~ºm:, John Nonnan <john._norman@admin.state.ak.µs> D~~~:., ~~~",Ol, ,9c.t,.200~1.1 :g~:.?? "~q~9q,,. ':Í29;.',JHqYJ .,ÖºI(n1;1Þ~~;-Bi,qQ~2C(;)lQt1'1;~ie@~~iº'.~t~t~~:*~lJs> please print all and put in file for me to review just prior to hearing on these amendments. thanx -------- Original Message -------- Subject:Re: Consistent Wording for Injection Orders - Well Integrity (Revised) Date:Thu, 19 Aug 2004 15:46:31 -0800 From:Rob Mintz <robert mintz@law.state.ak.us> To:dan seamount@admin.state.ak.us, Jim regg@admin.state.ak.us, john nonnan@admin.state.ak.us Jim, I have some questions about the draft language, which are shown as comments on the first document attached. Based on my current guesses about what the answers will be to my questions, I also have some suggested edits, which are shown as redlines on the second document attached. »> James Regg <jim regg@admin.state.ak.us> 8/17/20044:33:52 PM »> Please delete previous version (email sent 8/9/04); I found another inconsistency in the injection orders regarding well integrity that I have integrated into the proposed fix. Attached is a proposal for consistent language in our injection orders addressing 3 rules related to well integrity: - "Demonstration of Tubing/Casing Annulus Mechanical Integrity" - "Well Integrity Failure" - "Administrative Actions". This proposal includes input from all Sf. staff (except Jack). If you agree with the approach, I'll work with Jody to prepare the public notice. Main points - Demonstration of Tubing/Casing Annulus Mechanical Integrity - standardizes the wording used for mechanical integrity demonstrations, and establishes abililty to grant alternate methods (e.g., temp survey, logging, pressure monitoring in lieu of pressure testing - specific to AlO 2C for Kuparuk, there is wording that is more appropriately included in Well Integrity Failure (i.e., more frequent MlTs when communication demonstrated) - establishes more frequent MlT schedule for slurry injection wells (every 2 yrs) which is consistent with our current practice (but not addressed in regulations) Well Integrity Failure - retitles to "Well Integrity Failure and Confinement"; inserted language regarding injection zone integrity (see 010 25 and 26) - consistent language regardless of type of injection (disposal, EOR, storage); - eliminates requirement for immediate shut in and secure; allows continued injection until Commission requires shut in if there is no threat to freshwater; - eliminates delay in notifying Commission after detect leakage or communication ("i.e., "immediately notify"); - removes language about notifying "other state and federal" agencies; - requires submittal of corrective action plan via 10-403; - requires monthly report of daily injection rate and pressures (tubing and all casing annuli); this is a requirement we currently impose when notified of leak or pressure communication; - notice and action not restricted to leaks above casing shoe as stated in several DIOs Administrative Actions lof2 10/2/20044:07 PM [Fwd: Re: Consistent Wording for Injection ( rs - Well Integrity... - adopts "Administrative Actions" title (earlier rules used "Administrative Relief"'); - consistent language regardless of type of injection (disposal, EOR, storage); - uses "administratively waive or amend" in lieu of terms like "revise", "reissue", etc.; - adds geoscience to "sound engineering principles"; - language is more generic regarding fluid movement out of zone; existing versions mention varying combinations of protecting "freshwater", "aquifers", "USDWs"; "risk of fluid movement"; "fluid escape from disposal zone" Jim Regg : John K. Norman <John Norman(ã¿admin.state.us> : Commissioner , Alaska Oil & Gas Conservation Commission Content-Type: application/msword Injection Order language - questions.doc Content-Encoding: base64 Content-Type: application/msword Injection Orders language edits. doc Content-Encoding: base64 20f2 10/2/2004 4:07 PM ) ) Standardized Language for Injection Orders Date: August 17, 2004 Author: Jim Regg Demonstration of Tubing/Casing Annulus Mechanical Integrity The mechanical integrity of an injection well must be demonstrated before injection begins, after a workover affecting mechanical integrity, and at least once every 4 years while actively injecting. For slurry injection wells, the tubing/casing annulus must be tested for mechanical integrity every 2 years. The MIT surface pressure must be 1500 psi or 0.25 psi/ft multiplied by the vertical depth, whichever is greater, must show stabilizing pressure and may not change more than 10% during a 30 minute period. Any alternate means of demonstrating mechanical integrity must be approved by the Commission. The Commission must be notified at least 24 hours in advance to enable a representative to witness pressure tests. Well Integrity Failure and Confinement The tubing, casing and packer of an injection well must demonstrate integrity during operation. The operator must immediately notify the Commission and submit a plan of corrective action on Form 10-403 for Commission approval whenever any pressure communication, leakage or lack of injection zone isolation is indicated by injection rate, operating pressure observation, test, survey, or log. If there is no threat to freshwater, injection may continue until the Commission requires the well to be shut in or secured. A monthly report of daily tubing and casing annuli pressures and injection rates must be provided to the Commission for all injection wells indicating pressure communication or leakage. Administrative Actions Unless notice and public hearing is othervvise required, the Commission may administratively waive or amend any rule stated above as long as the change does not promote waste or jeopardize correlative rights, is based on sound engineering and geoscience principles, and will not result in fluid movement outside of the authorized injection zone. Standardized Language for Injection Orders Date: August 17, 2004 Author: Jim Regg Demonstration of Tubing/Casing Annulus Mechanical Integrity The mechanical integrity of an injection well must be demonstrated before injection begins, at least once every four years thereafter (except at least once every two years in the case of a slurry injection \.vcll), and before returning a weIl to service fol1c)\vin.e: affef a workover affecting mechanical integrity. and at least once every <1 year~; while actively injecting. For ~;Iurry injection wells, the tubing/casing annulus Inust be t~skd tor mechanical integrity every 2 years. Unless an alternate rneans is appro\,'ecl bv the COlnn1Íssion. Inechanical integrity ITIUst be demonstrated by a tubin.g pressure test using a ~ MfF-surface pressure of must be 1500 psi or 0.25 psi/ft multiplied by the vertical depth, whichever is greater, that mH-St-show~ stabilizing pressure that doesand lnay not change more than 10Q4¡- percent during a 30 minute period. -Any alternate ll1eans of dClnonstrating 111cchanical integrity rnust be approved by the COlnn1ission. The Commission must be notified at least 24 hours in advance to enable a representative to witness pressure tests. Well Integrity Failure and Confinement Except as othenvise provided in this rule, +!he tubing, casing and packer of an injection well must demonstl-ate Inaintain integrity during operation. \Vhenever any pressure con1ffiunication, leakage or lack of injection zone isolation is indicated by injection rate, operating pressure observation, wst, survey. log. or other evidence. t+he operator fftì±Sf-shall immediately notify the Commission and submit a plan of corrective action on ª-.Form 10-403 for Commission approval.:. v\:henever any pressure COlTIlDUnication, leakage or lack of injection zone isolation is indicated by injection filte. operating pressure observation, test, survey. or log. The operator shall shut in the "veIl if so directed bv the COlTIn1ìssion. The operator shall shut in the well \vithout a\.vaitin,g a response horn the Comlnission if continued operation would be unsafe or would threaten contamination of freshwaterIfthere is no threat to fresl1\vater, injection lnay continue until the COllllnission requires the v:dl to be shut in or secured. Until corrective action is successfully completed, Aª monthly report of daily tubing and casing annuli pressures and injection rates must be provided to the Commission for all injection wells indicating pressure communication or leakage. Administrative Actions Unless notice and public hearing is otherwise required, the Commission may administratively waive or amend any rule stated above as long as the change does not promote waste or jeopardize correlative rights, is based on sound engineering and geoscience principles, and will not result in fluid movement outside of the authorized injection zone. '[Fwd: Re: [Fwd: AOGCC Proposed WI Lan, :ke for Injectors]] ,) Stl~lect: [Fwd: Re: [Fwd: AOGCCProposed WI Language for Injectors]] F'rclrn:WinfonAubert <winto~aubert@adrnin.state.ak~us> ~~~~:,1'hu?,,~,~,' ~8s~'39~~~9:~~:?~.",~?88° ".. ','t,.,",.i, ',"".. ..'. '..,... ."."..,.."'...."'.,,.,',.,,".',', ."'.',.','.... .". ' -r~::'~9:~Y~.Çó;I<?~g~~:.:šj9'gÿG~91~#i~~~~(1~rµit)+~~~t~~'tt1{~Ù~?,', .,,'.,.' ',.', This is part of the record for the Nov. 4 hearing. WGA -------- Original Message -------- Subject: Re: [Fwd: AOGCC Proposed WI Language for Injectors] Date: Thu, 28 Oct 2004 09:41:55 -0800 From: James Regg <jim regg@admin.state.ak.us> Organization: State of Alaska To: Winton Aubert <winton aubert@admin.state.ak.us> References: <41812422.8080604@admin.state.ak.us> These should be provided to Jody as part of public review record Jim Winton Aubert wrote: FYI. -------- Original Message -------- AOGCC Proposed WI Language for Tue, 19 Oct 2004 13:49:33 -0800 Engel, Harry R <EngeIHR@BP.com> winton aubert@admin.state.ak.us Injectors Subject: Date: From: To: Winton... Here are the comments we discussed. Harry *From: * NSU, ADW Well Integrity Engineer *Sent: * Friday, October 15, 2004 10:43 PM *To: * Rossberg, R Steven¡ Engel, Harry Ri Cismoski, Doug Ai NSU, ADW Well Operations Supervisor *Cc: * Mielke, Robert L.i Reeves, Donald F¡ Dube, Anna T¡ NSU, ADW Well Integrity Engineer *Subject: * AOGCC Proposed WI Language for Injectors Hi Guys. John McMullen sent this to us, it's an order proposed by the AOGCC to replace the well integrity related language in the current Area Injection Orders. Listed below are comments, not sure who is coordinating getting these in front of Winton/Jim. Overall, looks okay from an Operations perspective. We do have a few , comments, but could live with the current proposed language. Note the proposed public hearing date is November 4. The following language does not reflect what the slope AOGCC inspectors are currently requiring us to do: liThe mechanical integrity of an injection well must be demonstrated before injection begins, at least once every four years thereafter (except at least once every two years in the case of a slurry injection well), and * before* ** lof3 10/28/2004 11 :09 AM [Fwd: Re: [Fwd: AOGCC Proposed WI Lang for Injectors]] returning a well to service following a workover affecting mechanical integrity." After a workover, the slope AOGCC inspectors want the well warmed up and on stable injection, then we conduct the AOGCC witnessed MITIA. This language requires the AOGCC witnessed MITIA before starting injection, which we are doing on the rig after the tubing is run. Just trying to keep language consistent with the field practice. If "after" was substituted for "before", it would reflect current AOGCC practices. It would be helpful if the following language required reporting by the "next working day" rather than "immediately", due to weekends, holidays, etc. We like to confer with the APE and get a plan finalized, this may prevent us from doing all the investigating we like to do before talking with the AOGCC. "Whenever any pressure communication, leakage or lack of injection zone isolation is indicated by injection rate, operating pressure observation, test, survey, log, or other evidence, the operator shall___* immediately*_** notify the Commission" This section could use some help/wordsmithing: "A monthly report of daily tubing and casing annuli pressures and injection rates must be provided to the Commission for all injection wells indicating well integrity failure or lack of injection zone isolation." Report content requirements are clear, but it's a little unclear what triggers a well to be included on this monthly report. Is it wells that have been reported to the AOGCC, are currently on-line and are going through the Administrative Action process? A proposed re-write would be: "All active injection wells with well integrity failure or lack of injection zone isolation shall have the following information reported monthly to the Commission: daily tubing and casing annuli pressures, daily injection rates." Requirements for the period between when a well failure is reported and when an administrative action is approved are unclear. This document states "the operator shall immediately notify the Commission and submit a plan of corrective action on a Form 10-403". If we don't plan to do any corrective action, but to pursue an AA, does a 10-403 need to be submitted? The AOGCC has stated they don't consider an AA as "corrective action". Let me know if you have any questions. Joe -----Original Message----- From: Kleppin, Daryl J Sent: Wednesday, September 29, 2004 1:37 PM To: Townsend, Monte Ai Digert, Scott A; Denis, John R (ANC); Miller, Mike E; McMullen, John C Subject: FW: Public Notices FYI -----Original Message----- From: Jody Colombie [ mailto:jody colombie@admin.state.ak.us Sent: Wednesday, September 29, 2004 1:01 PM Subject: Public Notices Please find the attached Notice and Attachment for the proposed amendment of underground injection orders and the Public Notice Happy Valley #10. Jody Colombie «Mechanical Integrity proposal. ZIP» «Mechanical Integrity of Wells Notice.doc» 2 of3 10/28/2004 11 :09 AM ::t:t:: \0 BP Exploration (Alaska) Inc. 900 East Benson Boulevard P. O. Box 196612 Anchorage, Alaska 99519-6612 (907) 561-5111 September 27,2004 Jane Williamson Jack Hartz Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 RE: Extension of Administrative Approval CO 471.003 and AIO 24.001 Dear Ms. Williamson and Mr. Hartz: The Commission on June 29, 2004, gave administrative approval for a Borealis EOR Pilot. BP Exploration (Alaska), Inc., ("BPXA") request a 120-day extension to the existing authorization to continue the pilot miscible injection (MI) project on Wells V- 100, L-105 and L-I08. During the pilot period, a facility maintenance issue had a direct impact on the results of the pilot, limiting the amount of data obtained making analysis challenging. It is desired to obtain a full understanding of the field wide injectivity and pressure requirements for the project and allow EOR optimization. The requested extension would provide the extra data required for prudent evaluation. All other issues and proposed planned actions discussed in our original request are still active and on going. Please feel free to call either Bruce Smith (564-5093) or myself to discuss this matter further. Please call if you have any questions. Sincerely, ._-~~ Gil Beuhler GPB Waterflood Manager CC: Mark Vela (ExxonMobil) Dan Kruse (CPA!) Bradley Brice (Forest Oil) Steve Wright (Chevron- Texaco) Bruce Smith (BP) Candace Cambell-Rhodenizer (BP) RECEIVED SEP 2 8 2004 Alaska Oil & Gas Cons. Commission Anchorage ::t:t:: 00 .'. ) BP Exploration (Alaska), Inc. 900 East Benson Boulevard Post Office Box 196612 Anchorage, Alaska 99519-6612 Telephone (907) 564 581 ) bp June 28, 2004 Jane Williamson Bob Crandall Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, 8uite 100 Anchorage, AK 99501 ECEIVED JUN 2 8 2004 Alaska OJ) & G6~ Cons. Commission Am;horage RE: Proposed Borealis Field EOR Pilot Regarding the June 9, 2004 proposal for a Borealis EOR Pilot, the Pilot will help address the following issues. Three injectors are proposed for the Borealis EOR Pilot, V-100, L-105 and L-108. Well ,00~!!~E~~!~!i,~!!CS are given below in comparison to the current Aurora injectors. """,,,,,,,,,,,'>,,,""""'W"""'" Permeability- ¡,,,!,!.~,~I,,, ", ,,;~.~~.Id ""~,~.~..~.~~f!!~,.,,, ,~,~!~~, 1,~J,!:,~~"~,~.""""".."",,.~~~,~,,~~,~,,~!~,.I~j!,~~,~~""" ,~C?~,~..!,~"~"",,, Rate, : Bottomhole Rate, 'pressure, ""'" ~~~,~,,,,,,,JJ~!~~,~~ ~J:>'~."".,,,,,,,.~,,£~,~,,,-,,,,,,,,, """,.,,,J?~,,,,,,,-,,,,,.,..,,,,,-,,,,,,,,,,,,,,,,, "." "," """ ", ''',' " H!h:~* '~~:~~_Lt~~f~§~~~O ~:~~;~~ ,. - ,?,~ 7 ,;"", ,,,,,'., "',.~,!,~~?"._'" , ".,,~~!,:, "*,,,-~!. ~!!_- ,~,~,,,!r,c>,~, P~. ~n~lys;~,~",~ wellhead pressure, . 2400 "":' "'-' ~ "~"'2õ4'8 ~ -,. -" ~tô"-~"bë"'-'"de¡èrmi'nèd~ ~. ,,," ""~,"V-"'''^M~"-,,...,~v-, ,,,,^,,,,<,,"',,,",",'-,.,",,-, '''' "'.M"""," " '" ""''''. " <, ,.",,'", 8900: 2124 , ~'''''''<'''~< ->'" ~'" <, ,- "". ", ^'" ""' 9500 2087 md-ft :s~'1õ'f'."'""Aurõra'" ,'. ...." "'''1";925'' " ;'s=H54'" ''';AÚröra " , ---1; OSÕ LS~'11'Ö" "~'rAû~ro"r~i"~" ,,,~--,,,,,,,.,,,,,,~'-."-"'~"" ,-~., ~^~'~52~f- ~."..^'"""«.".''''',.".~."...~''~...~''_.~.,,,.'''.,.'"'..+...'"'~"".""".~",o".,...~.,...-.«,~.,~....:.-,~. ,.0' , \¡~1ðÕ""'rBorèalis 840 ;'[:105" rSorêaïis'" '" 2382'" I~1Õã""'''Bôrëã¡i's'' ""'''2894 'A.,.,". ., '" '~"""""""""""'"-''~''' -, " 0' " ,- ,,,,- ""''':'''''''''';''0\ ,,,,,~",,,,^,,_,,,,',""',"-'''''''''''' ,~ Injector well 8-110 is currently part of a miscible gas' injection Pilot at Aurora. Interim results indicate low miscible gas injection rate as shown in the table above. Well 8-11 Oi is operating under Aurora Oil Pool pilot miscible gas injection (May 11, 2004 admin approval no 457 A.003 and 22B.00 1). Injector V-100 currently supports two producers, Wells V-Ill and V-lIS and may support Well V-109. Injector V-100 has similar permeability-thickness as 8-110; it is also completed in low permeability rock with a whole core average permeability of 6 millidarcy. Well V-100 exhibited low oil production rates, nominally 320 bopd for 15 months. Poor injection rates are a possibility for Well V-I 00. The Pilot will test well V-100 miscible gas injectivity rates. Proposed MI Pilot injectors L-105 and L-108 are representative of the Borealis MI injection project because they have more typical permeability-thickness. These L-pad injectors will provide information regarding Borealis field wide injectivity and pressure requirements for project planning and EOR optimization. SCl\NNED ,JUN 2 9 2004 ) ) fi''' . As depicted in the Pilot proposal of June 9, Borealis injection pipeline routing is different than the Aurora field pipelines. Available MI injection pressure for Borealis may be significantly different than Aurora due to local flow line pressure drops. Flow line pressure will be measured during the proposed Pilot. The surveillance plan for the pilot period is; each well will be monitored continuously for well head pressure, injection flow rates and well head temperature, the three wells will have injection profiles run during the pilot. Surveillance data will be transmitted at end of test. The reservoir performance data obtained in the Pilot may be used to change and improve the Borealis EOR Project implementation plan, schedule and operation. Early Pilot well data would aide in expediting that analysis. The W AO schedule for the full Project may be affected by Pilot injection rate data. A longer injection Pilot test, e.g. 10 - 12 weeks, would provide well and reservoir response data that may not be seen in a shorter Pilot. Longer MI injection may also affect the next cycle of water injectivity following initial MI injection. Various options may need to be explored to improve well injectivity if the Pilot results so indicate. These options could include well work, operational or facilities modifications. As discussed, these could include well stimulation or analysis and modification of the miscible gas injection distribution system pressure in order to improve injection rates. At this time, none of these are planned items; these will be evaluated depending upon the results of the Pilot test. These results will also be incorporated into a forthcoming Borealis EOR Area Injection Order application. Please feel free to call either myself, Bruce Smith at 564-5093 or FrankPaskvan at 564-5749 to discuss this matter further. Please call if you have any questions. Sincer~,/. I , ,---:£/ ~ Oil Beuhler --- GPB Waterflood Manager CC: Mark Vela (ExxonMobil) Dan Kruse (CPA!) Bradley Brice (Forest Oil) Steve Wright (Chevron-Texaco) Bruce Smith (BP) Frank Paskvan (BP) ) ) .. , . . Analysis of Reservoir Pressure within the proposed Pilot areas A pressure map covering the proposed pilot area wells is shown in Figure 4. Any areas currently above the MMP of 2150 psi are shaded red grading through yellow and green with increasing pressure. The areas affected by the pilot are at or above MMP Figure 4: Reservoir Pressure, BOP, June'04 SCANNED JUN 2, 9 2004 ') ) Figure 3: Borealis Slim Tube Oil Recovery aod MMP Borealis Slim Tube Recovery - MMP I :: ::: ~ 1 G11 ; ç; I ~ I I I 1 I I I 1 I 1 1 1 I I I I I 1 I 1 1 1 1 1 I I I 1 1 I I 1 I I 1 I 1 I I 1 I I I 1 0.8 ---I---I--+-----I--"'-- -----1- -I--+-----1--"'--'"-----1--4--'"-- c: 1 1 I I I 1 I 1 1 I 1 1 I I I 0 1 1 I 1 I I 1 I I I 1 I 1 I ;: 1 1 I 1 1 I 1 I I I I 1 1 ~o 6 ~ - _:- - ~ - - ~ - - - - _: - J - - ~ - - - - _:- - J fvIvP = 2150 psia ~ - - - - _:- - ~ - - ~ -- L&.. - : :: I:: ::: ::: ::: ~ I 1 I 1 1 I I 1 1 I I I I I I .- 1 1 1 I J J 1 1 I I 1 1 I I I = - 1 1 I 1 1 1 I 1 1 I 1 I 1 I I :80.4 - - -1- - ì - - T - - - -1- - ï - - T - - - - -1- - ï - - T - - - - -1- - ì - - T - - - - -1- - ï - - T -- U 1 1 1 I 1 1 1 I 1 I 1 1 1 1 1 U) I 1 I I 1 1 I 1 I I I I 1 1 1 ill I I I 1 1 I' 1 I 1 I 1 1 I 1 I I 1 I 1 1 I I 1 1 I 1 1 0.2 - - -:- - ~ - - ~ - - - - -:- - ~ - - ~ - - - - -:- - ~ - - ~ - - - - -:- - ~ - - ~ - - - - -:- - ~ - - ~ - - - 1 1 I I 1 I 1 1 1 1 I 1 1 I I 1 1 1 1 1 I 1 1 1 1 1 I I 1 I 1 I I I 1 I I 1 1 I I I 1 I 1 I I I I I I I I I I I I I I I 1 0 0 1000 2000 3000 Pressure 4000 5000 Maximum Injected Rate Maximum MI rates and volumes for each well in the pilot are estimated as follows: Pilot Start-Up Cum WI Est. MI Radius of MI Est. days on Inj Date MSTB rate Press> volume MI Well (at SU) MSCFD MMP (ft) MMSCF V-I OOi 6/15/04 41 6,000 500' 120 30 L-105i 6/15/04 4245 15,000 500' 450 30 L-108i 7/15/04 3072 15,000 500' 450 30 Pilot Surveillance Plan Injection rates and pressure response will be closely monitored to assess level of improvement during and after the MI cycle. ~I. 9 ?On/1 ') ') Injection Fluid Type/Source/Compatibility/Pressure/Confinement Refer to AIO 22A application; Borealis Oil Pool parameters are comparable. Figure 2 shows the similarity of Borealis crude composition to Kuparuk Oil Pool composition. Figure 2: Comparison of Borealis and Kuparuk Fluid Composition ... I-~~Iionl ... I3a'ea1is Canpœition ~ :; :0 ih I&. ¡ ~ 2 Ol~, , , , , , , , , ... ... , , , , , , , , , , , , , , , , , , , , 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 Component NI.mber Petroleum Engineer's Certification Component number Name 1 Nitrogen 2 Carbon Dioxide 3 Methane 4 Ethane 5 Propane 6 iso-Butane 7 n-Butane 8 iso-Pentane 9 n-Pentane 10 C6 11 C7 12 C8 13 C9 14 C10 15 C11 16 C12 17 C13 18 C14 19 C15 20 C16 21 C17 22 C18 23 C19 24 C20 25 C21 26 C22 27 C23 28 C24 29 C25 30 C26 31 C27 32 C28 33 C29 Borealis Enhanced Oil Recovery Project The MI source is the WOA IP A Miscible Gas which is richer than is required for Borealis miscibility. Figure 3 shows the Borealis Slim Tube Recovery and defines the MMP as 2150 psia. SC/Ä.NNE[) JUN 2 9 2n[J.(~ ) Figure 1c L-108 TÆE= MLLHEAD= ACTl.JA.lOR = KG. ILEV '" SF. 8.EV = kCfl = MlJI Jlrde = Usumtn)= lJ8umnID = 4-1 /16" CrN 1M:: NA :¡OIU NA aD1 43@4Ø12' ra11f moo ss I 9.fJß" CSG. 401, L.SO. D=8.Bæ' H 2720' ........ lMinimum ID= 2.75" @ 7548' 3-11.2" HES XN NIPPLE I 4.1,'2" THG, 126N. L..I!O, .016'2 bpf, D=3SE8' H 4825' I 3.1/2' TBG. 9.2" L..lD, .oOB7l:pf, D:: 2.992" H 7553' I PE~CRAmN SUMM.QRf R:F LOG: TCP PER= AtG.E AT lOP ÆR=: 40 @ 4æB Ncœ: Rerer to Pnxlu:tian 00 fer '¡slaic-a ¡:ad dllta SIa: SPF IN Il:toIAL Q;¡n,'Sqz UA II: 4-6.9" 6 iSm. 5006 Q 07K12,U2 4&'8" 6 0042 . 508) 0 D7K120U2 4-&'8' 5 ooæ. 5116 Q 01K120U2 4-&'8' 6 61 S1 . 5184 Q D7K12.a! 4-&'8' 6 8236 . 5216 Q D7K12.a! 2.114" 6 æ136.71&1 0 12J14.a! 2-1.'4" 6 111!11 . 1186 0 12.'14.a! 2-114" 6 1174. 7m1 0 12J14.a! 2.114" B 7786. 7191 0 12.'14.a! I Am) H 3194' 17" CSG, 26¥. L.BO, D = 6.216" H 8279' Jþ, II: œ.'31,DI CEaI.a! 07,02.a! OJ"'10.m 07J31.m œ.œ.m 1<a::\I' BY CXJWI:M~ 'tNGN'I.L OOM-\.I: I ~ J[J: ~c:o.tR.ETDN VIR) NTIAl OOt.RETO TA.'th NTIAl OOt.RETO lRJATt: .GKAoK G. V CJO RUItI G. V UkJA II: L..108 ') SAFE1YNOTES: GLM'S ~ STA #I & :1/2 IRE 3.1/2" X 1-1.'2" MM G- W'S MTERFLOODMANDRElS. = ----+ 1018' H 9.fJß'1ÄMFæTCCUAR I I 223T H 4.1J2'IÐXNP.ID=~.ß13"1 --1 ~T UD 5 $II 4 4199 3 &3 GAS UFT MANJFElS 1\1[) DEV TYPE Vtv LATCH ~ DAlE ;1!00 33 KSG.2 [J.tf B(.5 0 01.DW03 38XI :s KSG.2 [J.tf B(.5 0 01.ml02 .œo 43 KBG.2 [J.tf JK.5 0 01.0&'03 WAlERFLOOD MA.NrRELS ISTI MD 11\1[) I DEVI TYPE I VtV I LATCH I~I DAlE I 2 Of 4.i!Bl 41 ... Mß.W I.x.n' RKP 0 07.œ'02 18264.'ß4 40 M MG-W [J.tf RKP 0 01.œ'02 I '4758' H 4.1J2'IÐXNP,ID=~.ß13"1 g: ~ 4162' . 4783' H 4.1J2"MRA RRU TeG R\ 1O-I,ID ::: 3.235" I g ~ 4769' 1-1 7" X4.1J2' BI<R R=U:MIER R(R ID= s.m' I Ii:: Ii:: I-- -::i I I 4825" H 4-"" >3-111' xo. D" '''''1 L ~ K( I 1489' 1500' 1502' 1505' I 152T I 7548' I 7560' H 3.112' IÐX NP,ID =2.ß13"1 H 3.1J2" X4.1,'7'XQ, D::: 2.940"1 H 7' X 4.1.'2' StIR &3 R<R. D::: :I.B1S' I H 4-1J2' X 3~1J7' XO. D: 2.92D" 1 H 3.112" IÐ X NP ,ID ::: 2.ß13" I H 3.1J2" IÐXNNP, D=2.1S' I H 3.1/2' 'M..EG, D = 2.915'1 f---i 162.t H RA 1Ä G I h 8051' H RA TAGI ~ [J\, U: RBI' In' OOMwI:N 1:S 1201.U2 JI:Iw\'1IK ~i: I r.1:H.A ItioIM IIIH~ Iu-I 12."14.U2 CAO,t((AI:Æ~S 12."160U2 ~.1<J( (~..VDQ.TECXHEroN 01.o4.U3 JMKAK GLVOO 04.o8oU3 ~l1P 1V D'W CX)~s BCRrAL5 LtlIT WILL: L-108 R:~IT Nee 2Ct21 CEO API No: 00.029.23(9)-00 SEe 34. "2N, R11 E. 2412' NSL & 35æ' 'M:L BP Explor01tia1 (A1015koj) SCANNED JUN 2 9 2004 .. .. ) ) Attachment 1: Borealis Field Reservoir Pressure Data SwJName Test Date ,U..100' 09/25/02 bJOO 11/30/01 b-101 06/12/03 [-101 04/17/03 , L-t01 09/25/02 , [-102 09/25/02 -[£:102. 04/11/02 li~,t03 ' , 11/09/02 '[.1104 ' 04/21/03 L..104 09/25/02 t~t04' 02/28/02 4",.105 . 09/22/02 , 'l~106 04/20/03 L..106 09/25/02 ,'[..106 04/17/02 l~106 02/10/02 'L~t07 10/01/02 lßtOB ,', 01/04/03 , ,L.;109',' 07/17/02 . ' L;-110 09/25/02 , L..~1't1 ' 09/27/02 L~111. 03/21/02 ,[,-112 02/19/03 Lc114 ' 04/22/03 , L~114 09/25/02 L.; 115 09/27/02 [-1t5' 06/06/02 L-116 02/03/04 [-116 09/25/02 09/26/02 06/08/02 04/20/03 10/01/02 06/19/02 . 04/18/03 09/25/02 03/19/02 03/17/02 04/18/03 01/16/04 08/11/03 L~118 L-119 L-119 L-120 L-120 L-120 L-120 L-121A L-122 L-122 Pres, ..' ' " Pres Datum, ,'SwNàme TestDatè Datum' 2,210V-100' 08/05/03 2,623 3,030 . V~100, 09/25/02 2,715 1,979 V.;100 03/14/02 3,350 1,734 ,V.;101,' 09/25/02 2,137 1,930 "v-tOt ,,05/06/02 3,015 2,654 "V;102' 06/27/02 2,807 3,385 ,\l;~Q3. 01/16/03 3,094 2,268 "'V;;it()4,' 09/23/02 2,583 1,845 'V.;;J05'. 12/01/03 1,913 2,165 ,Xf~JQ5 01/07/03 2,886 3,260 .: ~".4d6 01/12/04 2,117 2,253 ~"~flOß:,~ 09/25/02 2,475 2,109 ,V..106., 05/30/02 3,169 2,060 "V..jD7', 01/25/03 2,994 2,840 'V;"tOá - 12/02/02 3,235 2,707 V~109' 03/24/03 2,779 2,289'V..109', 01/11/03 2,764 , ' . 2,109 ¿M~~4t"" 11/02/03 2,795 2,829 ,'Y;lt3:,' 02/03/03 3,049 2,571 . V~t14A 03/12/04 2,931 2,512 'V8115 05/02/04 2,807 2,952 V.. 117 08/21/03 3,100 3,394 'Z-100 05/18/04 3,269 2,584 Z~100 03/09/04 3,243 2,212 2,509 2,552 3,029 1,898 2,454 2,765 2,688 3,202 3,203 2,050 2,347 3,144 3,194 2,998 3,152 3,140 SC/\NNED ~JUN 2 9 200&J ) ) ....:.'~" {J Appendix 1: Well Log Plots Aurora Wells 8-101, S-104, 8-110. Borealis Wells V-100, L-105, L-108 (,fJ ~ z z m (J {~ c: Z M ~ f'..) c::J c:::;, ~- 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 07/28/01 11/05/01 02/13/02 09/01/02 12/10/02 03/20/03 06/28/03 10/06/03 01/14/04 04/23/04 08/01/04 -+-L-100 --II- L-101 L-102 -*-L-103 ---L-104 . L -105 -+-L-106 -L-107 -L-108 L-109 L-110 L-111 L-112 ~ L-114 . L-115 L-116 -L-117 -L-118 --fr- L-119 L-120 L-121A -*-L-122 ""'Start WF .......--. V -1 00 + V-101 V-102 V-103 . V-104 --II- V-105 -.-V-106 X V-107 ---' ~ ~~(Ù, '\'Iri:\^~\. .iFU" rei' f ~ì ~. . , ~, il! Ii i;- \Ù ~J lJ1 i LS ~) ') m f'llA\ (ê~ ~}r¡ ß\. to, "\<' ,\ [-,¡J ~ /.rìj @ l ù úÛ ") ATtASIiA OIL AND GAS CONSERVATION COMMISSION FRANK H. MURKOWSKI, GOVERNOR 333 W. -rrn AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 June 22, 2004 Mr. Oil Beuhler Manager PBU Western Satellites BPExploration (Alaska), Inc. PO Box 196612 Anchorage, AK 99519-6612 Re: Proposed Borealis Oil Pool EOR Pilot Dear Mr. Beuhler: On June 9, 2004 we received your letter requesting approval to conduct a 4-6 week MI injection pilot in wells V-I00, L-105, and L-108. We additionally received an e-mail from Frank Paskvan on June 17, 2004 further discussing the need for the pilot. It is our understanding that you wish to conduct this pilot to obtain early injectivity data. Pilot MI injection in Aurora 8-110 is less than 1 MM8CFD, and V-lOO is similar in nature. Before we process your application, we need to understand a few items: . What do you expect to learn from a pilot operation of 4-6 weeks that is critical to your application for long-term miscible gas injection? . How will you incorporate the results of the pilot into design of YQur large-scale project? " . Wouldn't the performance under water injection, and the MI at Aurora provide sufficient information concerning injectivity for you to base your decisions on? . Please provide specific characteristics of the analogous Aurora MI injectors (rates, log character, permeability, core data, etc.) and compare these to the proposed Borealis pilot injectors. . What surveillance information are you planning to acquire (injection logs, pressure falloff, etc) during the pilot to allow you to properly design the fully implemented project? . V-100 serves only 1 producer. Why do you consider this injector to be the right one to start the injection program? . The pressure map you provided is unclear to us. Please give us the well-by-well pressures used. Also, please list/compare to the latest pressures taken in the field since waterflood started. SCAf\lNE[) JUN 2 9 2004 ) ) Please provide written answers to the above questions and then meet with us to discuss this further. We will be at BP on June 30 for another meeting. Would 1 :00 - 2:30 PM on that date work for you? In addition to the above questions, attached are items you will be required to address. in your application for long term MI injection. Regards, f2ø.--I<I~ t1:: Williamson, PE Reservoir Engineer cc: AOGCC Commissioners Frank Paskvan, Reservoir Engineer BPXA, PBU, Mail Box 6-5 Leslie Senden, Facility Planning Engineer BPXA, PBU, Box 7-2 4/1.:1# Robert Crandall Sr. Petroleum Geologist SCANNE[~:: JUN 2 ~ 200'~ '" "¡ "t ) ) Borealis - Required information for amendment of pool rules and area injection order . Provide an update of the Borealis Oil Pool with emphasis upon findings of the drilling program and new or reprocessed seismic data. Include new structure, net oil pore foot, and permeability distribution maps. . Provide for Public record a chart of Borealis production and injection history, and a list of all pressures since start of waterflood. While we have this data in our database, to ensure that we don't have confusion, it is best that you submit it. . Provide an overview of surveillance and production history with emphasis upon results of the waterflood and pilot MI. a Do the waterflood or pilot results suggest that any changes are needed? a Show voidage calculations for each major fault block. . How will you be expanding the project? a What future well locations are sanctioned or in the planning stages for the planned MI project area? a What is the maximum MI rate that you plan to inject? . Provide current estimates of OOIP, reserves and projected rate profile for the full development. Show incremental reserves and rate profile for MI. . Explain in detail the evaluation methods and results used to determine appropriate development and MW AG . recovery. a Summary information on model input. a Sensitivities to spacing, pore volume injection. a Information on sweep efficiency (both areal and vertical). Show model saturations over time. a Describe the uncertainties in the analysis and effects. . What will be your management strategy for allocating MI to this project? a Explain in detail, the effect of MI diverted to Borealis upon the Prudhoe Oil Pool. a What is the efficiency (barrel oil recovered per MMscfd MI injected) for the new Borealis wells compared to the Prudhoe wells? a Are there facility/line constraints which would back out MI to the Prudhoe West End? If so, what is the lost barrel oil/MMscfd of the PBU West End wells that will be impacted? . What is the maximum wellhead pressure during injection? . While the regulations only require review of wellbores within ~ mile, since this is a live fluid, please summarize the conditions of the nearest wellbores in each direction from the injectors to provide assurance that are wells are in good mechanical condition and that there is no potential conduit out of the Kuparuk zone. SCJ:\NNE[) JUN 2 9 2004 [Fwd: Re: Borealis MI Injection Pilot] ) ') Subject: [Fwd: Re: Borealis MI Injection Pilot] From: Mary Williamson <jane - williamson@admin.state.ak.us> Date: Fri, 18 Jun 2004 16:11:28 -0800 Tö: JódyJ Colombie<jody - colombie@admin.state.ak.us> Please add to the Borealis MI pilot application. I don't have a response yet - I'll send when I do. Jane -------- Original Message -------- Subject: Re: Borealis MI Injection Pilot Date: Fri, 18 Jun 2004 09:24:24 -0800 From: Mary Williamson <jane williamson@admin.state.ak.us> Organization: State of Alaska To: Paskvan, Frank A <PaskvaFA@BP.com> CC: Robert P Crandall <bob crandall@admin.state.ak.us> References: <C257A22750AOF74AA9950A7C2B4C7FC302B56731@bplancex002.bp1.ad.bp.com> Frank, You also pressure and that Jane stated to me that you are evaluating options to increase injection (increase set point on the compressor) in order to improve injection rates early information would aide that decision/effort. Is this correct? paskvan, Frank A wrote: Regarding the proposed Borealis EOR Pilot (date submitted), some of the issues the Borealis Pilot will help address include the following. Injector well S-110 is currently part of a miscible gas injection pilot. Interim results indicate poor injectivity on miscible gas injection, i.e. 0-1 mmscfpd, variable on daily basis. (S-110i is operating under Aurora Oil Pool pilot miscible gas injection (May 11, 2004 admin approval no 457A.003 and 22B.001) Proposed pilot injector V-100 is similar in some respectf? to the S-110i. It is completed in low permeability rock (whole core interval average permeability is 6md). Well exhibited poor oil production rates. Poor injection rates are a distinct possibility. Would like to analyze well V-100 injectivity and determine miscible gas injection pressure available and requirements for optimal injection in the well. Proposed MI pilot injectors L-105 and L-108 better typify the expectations for the main Borealis MI injection project. These L-pad injectors will provide information regarding Borealis field wide injectivity and pressure requirements for project planning and optimization. Various options will need to be explored to improve injectivity if the results of this Borealis EOR Pilot injection so indicate. These impacts will take some time to understand and implement. Early information from the pilot may significantly improve the ultimate Borealis EOR Project implementation and performance. Please feel free to call me or any member of the Borealis team at any time. Regards, Frank Paskvan 907-564-5749 907-440-8317 cell 907-564-5016 fax SCANNErD JUN 2 9 2004 1 of? 6/21/20048:13 AM '. BP Exploration (Alaska), Inc" ) 900 East Benson Boulevard Post Office Box 196612 Anchorage, Alaska 99519-6612 Telephone (907) 564 581 ) bp May 28, 2004 Jane Williamson Bob Krandall Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 R JUN 091GG4 Mas\<.a Qí\ RE: Proposed Bõfêå.lis\Field EOR Pilot In order to evaluate miscible injection gas rates to improve enhanced oil recovery benefit estimates, a 4 to 6 week pilot is proposed for Borealis injection wells V-I 00, L-105, and L-108. This injection test will also provide operational benefits to the installation and startup of a new miscible gas injection pipeline to V -pad and L-pad. Attached are details and supporting information for the proposed test which will help to further a full EaR implementation for the Borealis field. Please call Bruce Smith, 564-5093, if you have any questions. Sincerely, ~~ Gil Beuhler GPB Satellites Manager Attachments CC: Marc Vela - ExxonMobil Dan Kruse - ConocoPhillips Steve Wright - Chevron Leonard Gurule - Forest Gus Gustafson - BPXA Leslie Senden - BPXA C. Campbell-Rhodenizer - BPXA SC.ANNEC: JUN 2 9 2004 ') ) 2004 Borealis MI Pilot Specific approvals for any new injection wells or conversion of existing wells to injection service will be obtained pursuant to 20 AAC 25.005, 25.280 and 25.507 Description of Operation Water Injection started in Borealis in June of 2002. Miscible Gas WAG implementation is expected to improve oil recovery, similar to the Aurora Oil Pool and the Kuparuk. Oil Pool miscible gas recovery projects. Incremental recovery from the long-standing Kuparuk field EOR project is expected to be 8 to 12% ofOOIP. Early implementation of the secondary and tertiary injection processes allows adequate time for producers to capture mobilized oil and increases recovery as the Miscible Injectant (MI) reduces residual oil saturation around the injection well. In order to determine injection rates and verify operational parameters, the pilot injection of MI is proposed to begin in June 2004 using injection wells V-100, L-105, and L-108. Figure 1 shows a flow diagram for MI distribution. Figure 1: MI Distribution System for Borealis EOR l-Pad 0- MI Pipeline to N-, M- , and S-Pads Z-Pad O. ~ GC-21 V-Pad o. 0 W-Pad SC!~\N~\AED JUN 2 9 20D4 ') ) Geologic Information The geology of the Borealis Oil Pool (BOP) is described in Section I of the Borealis Pool Rules and Area Injection Order application (11-May-2002). Mechanical Integrity of Injection Wells The three wells listed in this application for a pilot study, V-I 00, L-105, and L-108, have been completed in accordance with 20 AAC 25.412, thus satisfying mechanical integrity requirements. No well has penetrated within one-quarter (1/4) mile of any of these wells and as such no issues are present. Figure 1 a, 1 b and 1 c are the most recent schematic diagrams for each well. Mechanical integrity has been established for the subject wells based on calculated cement tops being at an adequate height above the injection zone to prevent fluid that is injected into the BOP from flowing into other zones or to the surface. Cement Evaluation Logs run on each of these wells support the calculated values. Each of the Cement Logs confmns isolation of the injection zones. Static pressure and repeat formation tester data support the conclusion that the completions in offset wells beyond the ~ mile radius are sufficient to contain high pressure fluids, including gas, within the BOP. Although injection pressure will exceed average BOP reservoir pressure, reservoir modeling indicates rapid reservoir pressure fall-off away from the injector during water and MI injection. Reservoir modeling indicates a radius of pressure influence less than 1000 feet from the injector at the end of the MI cycle. SCA.NNEC ? ~ 20 ) ') Figure 1 a {V-100} HE = 4-1J16" 5MCM' 'M:LLHEAD: 11" RoC ACTUAlDR: Kit 9..91 = ElF. ELEV = KOP= MsJ. Arge" ~llI'ßtI) = DsIII'ß WD = 8&1' Sil.39' 3100f 63@ 4616' J941 f 13i600'~ V-100 I SAFETY NOTES: = 2-1 958' HI.5B lAM FORT cx::tl.AR =--1 2021' H1"lIM FORTCQ.LAR I I 2209' /-14 .112' I-ES X NP. ID = 3.813" I - - þ.&ß' CSG, ø L.a) BlC, D = 8.838' H 2735' I----Þ . ItdinimUm D = 2.24" @ 5925"1 ECLIPSE PATCH - .....L GÞ.S L FT ,.. I'IJULS Sl W _lVD I œv E1YÆ~ \lLV ILATæ\ RJRT I 2 fiB16 4 B31 150 YG. 'l1dY HK 0 1 1&16 fl329 14 KBG.2 '!:MY BK 0 "srAIDNi1" 2 =DUVs I-IÞ.VEEXlENŒDPACKN3 DÞ.lE 06,UlIOJ O6Kfl J03 ÆIR)~ lUll &JAMARV' Rs:: WG:.- ,..- -------- -- -.-.- .----_. ANaE AllOPFmF: 11 @ 1944' Näco: ~fer 10 Aodu:la œ Q- hiiloñcill ~ dIII8 SIZE ~- NII:K¥AL q:.n05qz DAII: 2.1Q" 6 1944 .1900 0 œm,m :<'.1 Q" 6 79118 - 1IOØ3 C œ.'12.tfl 2. 711" I) IIO&:! . 1IOBi! C œ.œ.1)l ---.... SG73' HT" Ø- A<ERJT (1/J) Wt ~ TAG I I 589r-S93T H4-1l2'EQ.~ R\lCH. ID = 2.24" (01!oU1,~4) I ~ ~ ~ ~ 17648'-7678' H4-1J2"EQ.~ R\lCH. D= 2.24"(11/01.00) I I 7732' H4-1/Z' IES X I'IF, D = 3.813" I g x----I 7743' HT"X4-1J2"BIiR63 FR<. D=3.815' I I 7767' H4-1121ES x I'IF. D = 3.813" I I 771, 7' H4.1tZ' IESXN NP, D = 3.72&" I 14.112' lBG.12.6M,L.&:! N!lCT. H 779'; I .0052bpf, D= 3.9œ" I I 7800' H4-112' WlB31 I 779B' HELWTTWOOIDOIlJOo'.)11 7979' H1t)POF ~NJI sœg' HT" Ø-A<ERJT(2Ø') WRO. TAG I 0!![]-1 æœ' I 11" CSG. 26M, 1,.80. D= 1.216" H ææ' CAlI: ItiI Y1' (D""'BlI~ OSfJO,'DI CH'TLH ORlGINALCOMPLETlON OMO.ÐI ~m¡(AI:'uH:H-S OJflZ.ul lMM'TlH AIDFmFS OJ020.ul C.fi.t<K ~ANJ W.... 041010'>2 ..BKAK 'tL V co 0",,'6U llHTLH ÆJi= (DRR:Cl'KWS 04.'10.00 DÆmI 'rv11M)~A:CTDtB DI. II: I4:V BY ca.l\1:N I~ OatlW03 .DArn.PGlV CQ "'bS'13'Oj'" DAC,'ILtßtLV æANa:>s 11,tl1J03 C.8.'ll P EQ.~ R\lCHEB 03'11.'04 MJAJIu-n-u..L~1 PA l.H{D3U1/04) øc:ÆAUS LtlIT w:LL: V.1OO PERatrr NIX Xl105£1O AR NIX eD.1J'o!9.23008 SEe 11. T11N. RI1E. 411""5. . 1531'WEL BP Exploration (Alnka) SCANNED JUN 2 9 2004 ') Figure 1 b L-105 TRB: ::; 4-1'16" aN Vd::I..u.EAD ::; FÞ.C AClUATCR = NÞ. KB, ELBf ::; 78.S' 9F.ELEV = 24.~' KOP= 400' MnAruh= 4G'@'446" IÀILlm m ::; auiS' 'l'Rwm 1V D = 6600' sf I 9.S'!!." CSG. 4D.U.I!O. D = 8.835" H 2856' ..-. IMinimum ID =: 3.725" @ 7873'1 4-1/1'" HES XN NIPPLE I 4-112" TBG, 12.B¥, L.æ, .0 152 ¥ ,10 ::; 3.!liS" H PEA==CR,6, TDM SUr&1.11RY ÆF LOG: saU:E2E PE~ ÆCCAJ AN3lE ATlOPPEA==: 34 @ "00 Nœe: R*rto Pn:å.II:Iicn œ fer tisllClicZll pIIrf dItaI SIti:: SPF It. II:t<\fAL Opn'Sqz DA II: 4-1.'2" f¡ 7700 .1TZl S 07111.02 4-112" B 7711). 1805 S D7111.02 3.3.'8" 6 B:I 12 .8)32 0 08.'1Ero2 4-1.'2" 6 B:l23 .8)4) 0 D7.'11.02 3.3.'8" 6 B:l4D . 8)14 0 08.'1Ero2 3.3.'8" 6 61 D1 . 8110 0 08«11.02 I AnD H 8267' 11" CSG. 26i,L...8). D= 6.2:18" H 8350' DAII: U{,'211'U2 08.~6'02 08118'02 10113'02 04.\)8'03 ~v BY 1XMoI:N1;S IWAK~L O;::UIUIIJN R.ih GLV UR:».TE .J.J,KK ADIti4-5 ,SIKAK GLVC,tI [RS' I -I ~),'WCOI+&.;~S L-105 ) I SAFETY Nores: = ;---.( 980' H 9.5'6" TAMPORTOO-LAR I I 2194' H 4.112"H;;SXNP.ID=3.ß13"1 ~ ---A GAS LlFUWIIDR: LS :Sl MJ ND œv TYPE \t1.V LAII,;H PŒlT DAII: S 96 34æ 41 KBG-2 [J,¡f'( BK 0 11)'13'C12 2 6?B5 44æ 42 KBG-2 [J,¡f'( BK 0 O1læ'C12 1 1fi!9 61 æ 31 KBG-2 tft1V BK 0 100'13'C12 2: , 763S' ~ 1646' I . H 4-11:!,'''';SXMJ.D=3.8IJ"I H 7' X 4-1,12' BKR AÐ.ER R<R. ID ::; ~B9' I go ?S I 781T H 4-11:!" "';S X MJ, D = 3.813" I I 782&' H 7' X 4-1,12" BKR 5.:3 FKR,ID ::; UTG" , mt~ I 7BS2' , 7873' \- ---f 7885' l 1---1 7904' l 8---1 8045' [ ~ DAll: ~v 1::fT' (Xn.fd:N l.:s H 4-11:!".ESXMJ,D=3.8I3" H 4-1,'2"I-ES*NP,ID:=.3.1:26" H 4-1.2' WIE G, ID := 4.00' , H raX2D'PIPJTWIRATAGI1=~ H r ax2D' PIP JTWI RA TAG (ElJ.~ BCÆALISUNT WB.L: L.105 ÆRUT No: 2(3)6110 N=tNo: 50.0282301&00 SEC34. T12N. R11E 2415' NSL& :!613 WEL III &pbro!tion (Alilsh) ~C~" ñ\HHE"""'f'"\l HUN. 2 6) 200i~ ~<1J, IJ~~" 0 '~ ~'~ ( c.-J ~JI.. . <r..!I ~J ,. ~1' ::t:t:: -....J ) . . .. 1 2 3 4 5 6 7 8 9 10 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501 PUBLIC HEARING In Re: Application from BP Exploration to establish pool rules for the Borealis oil pool within the Prudhoe Bay Field. TRANSCRIPT OF PROCEEDINGS 11 12 13 COMMISSIONERS: . 14 FOR BP EXPLORATION: 15 . 16 17 18 19 20 21 22 23 24 25 Anchorage, Alaska April 5, 2002 9:00 o'clock a.m. MR. DANIEL T. SEAMOUNT, JR., CHAIR MR. FRANK PASKVAN * * * * * * . MET ROC 0 U R T R E P 0 R TIN G , INC. 745 West 4th Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 JUN 2 9 2004, 8 8 8 J. ) . 1 C E R T I FIe ATE 2 UNITED STATES OF AMERICA 4 ss. 3 STATE OF ALASKA I, Sharon D. Gaunt, Notary Public in and for the State 5 of Alaska, and Reporter for Metro Court Reporting, do hereby 6 certify: 7 That the foregoing Alaska Oil & Gas Conservation 8 Commission Public Hearing was taken before me on the 5th day of 10 offices of the Alaska Oil & Gas Conservation Commission, 333 9 April 2002, commencing at the hour of 9:00 o'clock a.m., at the 11 West Seventh Avenue, Suite 100, Anchorage, Alaska; 12 That the meeting was transcribed by me to the best of 13 my knowledge and ability. 14 IN WITNESS WHEREOF, I have hereto set my hand and 15 affixed my seal this 15th day of April 2002. 16 17 18 19 20 21 22 23 24 25 ~o~ , ~~/OTA-t~~~ CI) ~ ~ ~ I -- I -8- \~9:;t"B\.\tJ ¿~ ' ~OF~~ '- --- s%!d!lr::lJ¡¡;u§' C)~ Notary Public in ~d for Alaska My commission expires: 09/03/04k MET ROC 0 U R T R E P 0 R TIN G , INC. 745 West 4th Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 JUN 2 920Q¿î It 1 2 3 4 5 6 7 . ). ALASKA OIL AND GAS CONSERVATION COMMISSION PUBLIC HEARING ) ) Application by BP Exploration Requesting) Pool Rules and an Area Injection Order) for the Borealis Pool. ) ) In Re: PART I 8 9 10 11 COMMISSIONERS: 12 13 8 14 15 16 17 18 19 20 21 22 23 24 25 8 TRANSCRIPT OF PROCEEDINGS Anchorage, Alaska April 11, 2002 9:00 o'clock a.m. CAMMY OECHSLI TAYLOR, Chairperson DAN SEAMOUNT * * * * * * ?"'¡¡ :'''' 4";' r- i ~ ;> J=' i"'\ ~,( t: l t: ~ \1 t ~) = 5 20D2 AlaslŒ OJ¡ & Cons. LOfHl.1ìíSs\On AnchoraQ8 METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 JUN 2 9 2004 8 I 8 \) .. . 2 1 PROCEED I N GS 2 (On record) 3 CHAIR TAYLOR: Good morning. Today is Thursday, April 4 11th, 2002. The time is approximately 10 minutes after 9:00 5 We're at the AOGCC offices at 333 West Seventh Avenue, a.m. 6 Suite 100. The purpose of this hearing today is with respect 7 to an application by BP Exploration requesting Pool rules and 8 an area injection order for the Borealis Pool in the Prudhoe 9 Bay field. I'd like to introduce, to my right is Dan 10 Seamount, my name is Cammy Taylor, and with us today is 11 Desiree Disotell? Did I pronounce that correctly? Thank you. 12 Our court reporter from Metro Court Reporting. These 13 proceedings are being recorded and transcribed. If you wish 14 to have a copy of that transcript, you can make arrangements 15 directly with Metro Court Reporting. 16 Notice of the public hearing was published in the 17 Anchorage Daily News on March 4th, 2002, and these proceedings 18 today will be conducted in accordance with 20 MC 25.540. We 19 will ask that the applicant present testimony first, and that 20 all persons wishing to testify be sworn, and that each person 21 state their name and who they represent. Each person who 22 wishes to give expert testimony shall state their 23 qualifications on the record and the Commission will rule on 24 with you qualify as an expert. All others wishing to present 25 testimony will be heard next. If a person wishes to make an METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 .. - .'" a ~ (907) 276-3876 ::~C!\NNEt) JUN ¡.¡ 9 200l~ I 8 . ). '. 3 1 oral statement, they will be allowed to do so after the 2 conclusion of the testimony by the applicant. If there are 3 members of the audience who wish to ask questions of people 4 who are testifying, we will ask that you write your question, 5 state your name, and pass it to one of the Commission 6 representatives. In the back of the room we have three 7 people. If you'll just raise your hand, Commission staff. 8 Then if anybody has any questions you can pass a note to them 9 and they will bring it forward to us and we can review it. 10 Who is going to take the lead for BP? 11 MR. BEUHLER: I will. 12 CHAIR TAYLOR: Okay. How about if we have you 13 introduce yourself and then we'll be prepared to proceed. 14 MR. BEUHLER: Thank you. Good morning, my name is Gil 15 Beuhler. I am the greater Prudhoe Bay satellite resource 16 manager for BP Exploration, Alaska. I received a Bachelor of 17 Science degree in petroleum engineering from the University of 18 Kansas in 1983. I've worked in the oil industry for over 19 19 years in various capacities, a variety of experience in the 20 Lower 48 and in Alaska. I have worked in Alaska since 1997 21 and I've worked with BP since 1998. I have worked the -- been 22 working with the greater Prudhoe Bay sat~llites since 1998. I 23 have testified as an expert witness in Texas before the 24 Railroad Commission and in New Mexico before the New Mexico 25 Oil and Gas Conservation Division, and I've also testified METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 ,JUN 2 9 20Q¡~ I 8 8 \ ) . . 4 1 before the Alaska Department of Natural Resources. 2 CHAIR TAYLOR: Mr. Beuhler, are you going Excuse me. 3 to be testifying first, or are you going to give an overview 4 or introduction for people, or do you want to just proceed 5 to..... 6 MR. BEUHLER: I was going to give this, request 7 acknowledgment as an expert witness, and then pass to our 8 other expert witnesses for individual testimony. 9 CHAIR TAYLOR: Okay. So you wish to be sworn as an 10 expert first? 11 MR. BEUHLER: Correct. 12 CHAIR TAYLOR: Why don't you go ahead and raise your 13 right hand, why don't we put you under oath first, and then 14 let you finish. 15 (Oath administered) 16 MR. BEUHLER: I do. 17 CHAIR TAYLOR: I'm sorry for interrupting, go ahead. 18 MR. BEUHLER: Thank you. I have worked greater 19 Prudhoe -- with the greater Prudhoe Bay satellite since 1998, 20 and I have testified within New Mexico and Texas, as I stated 21 before, and also in Alaska before the Department of Natural 22 Resources. And I would like to be acknowledged today as an 23 expert witness. 24 CHAIR TAYLOR: Do you have any questions? 25 COMMISSIONER SEAMOUNT: I have no objections or METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 ,JUN 2 9 200~ ') . ') . 5 I 1 questions. 2 CHAIR TAYLOR: All right, we'll accept you as an 3 expert witness. Please proceed. 4 MR. BEUHLER: Thank you. We have prepared the 5 Borealis Pool Rules and Area Injection Order application 6 submitted on February 27th of this year, 2002, and revised as 7 of this date, April 11th, 2002, and we would ask that the 8 Commission enter in its entirety this application into the 9 record. 10 CHAIR TAYLOR: That's this document? 11 UNIDENTIFIED VOICE: Yes. 12 MR. BEUHLER: Correct. 8 13 CHAIR TAYLOR: Okay. And this is a complete revision 14 of the original application, or does it just revise portions 15 of it? 16 MR. BEUHLER: There's minor modifications, I would say 17 a portion. 18 CHAIR TAYLOR: But this represents the entire 19 application? 20 MR. BEUHLER: Correct. 21 CHAIR TAYLOR: Okay, thank you. 22 UNIDENTIFIED VOICE: Without the exhibits. 23 MR. BEUHLER: For the purposes of this hearing, we 24 offer to present excerpts from that application, if it pleases 25 the Commission. 8 METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 ~JUN 2 92004 I 8 8 ). ) . 6 1 CHAIR TAYLOR: Was your plan just to rely on this 2 document actually' and just then summarize for..... 3 MR. BEUHLER: It will be --..... 4 CHAIR TAYLOR: ... . .the purpose of the record? 5 MR. BEUHLER: .... .it will be excerpt summaries of 6 that. 7 CHAIR TAYLOR: That would be fine. 8 MR. BEUHLER: Thank you. And the first sectionl which 9 is the geology I will be presented by Phillip Cerveny. 10 My name is Philip Cerveny I 11m a senior MR. CERVENY: 11 development geologist with BP Explorationl Ala-..... 12 Excuse mel I don/t want to interruptI CHAIR TAYLOR: 13 but would you like to be sworn as an expert? 14 MR. CERVENY: Yes. 15 CHAIR TAYLOR: Would you like to raise your right 16 handl please? 17 (Oath administered) 18 MR. CERVENY: Yes. 19 CHAIR TAYLOR: You do. For the recordl would you 20 please spell your name? 21 Sure. Philip Cerveny I that/s one LI P- MR. CERVENY: 22 h-i-l-i-pl C-e-r-vl as in Victorl e-n-y. 23 CHAIR TAYLOR: Thank you. Would you please proceed to 24 give us your qualifications then? 25 I'm a senior development geologist with MR. CERVENY: METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 ~JUN 2 92QQ4 It 1 2 3 4 5 6 7 10 11 12 13 8 14 15 16 17 18 19 20 21 22 23 24 25 8 . ). 7 BP Exploration, Alaska. I received a Bachelor of Arts and a Master of Science degree in geology from Dartmouth College, and a Doctor of Philosophy degree in geology from the University of Wyoming. I'm a certified geologist in the State of Alaska, my number is 488. I was employed by Arco Exploration Production Technology in 1990 and worked on a variety of Alas- -- projects in Alaska since 1991. I've been 8 working with the greater Prudhoe Bay satellites team since 9 August of 2000. I -- I would like to be acknowledged today as an expert witness. CHAIR TAYLOR: In the field of geology? MR. CERVENY: Field of geology. CHAIR TAYLOR: Do you have any questions or.. ... COMMISSIONER SEAMOUNT: No questions, no objections. CHAIR TAYLOR: All right. Please proceed, we' II consider your testimony as an expert witness. MR. CERVENY: Greg, could I have the overhead? The area of -- for which the Borealis Pool Rules are proposed is located on Alaska's North Slope, as illustrated in Exhibit 1- 1. Here's the Borealis Pool. The reservoir interval for the Borealis Pool is the Kuparuk River formation. The next slide. The Borealis Pool was discovered in 1969 by the West Kuparuk state number one well, located here. This well is also known as the W Kup 3-11-11. This well logged and tested hydrocarbons in the Borealis Pool. As shown in Exhibit 1-2, METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 ,JUN 2 9 20Q~~ . . 8 ') ) . . 8 1 the top of the Borealis structure crests at 6,200 true 2 vertical depth subsea. That will be in this general area. 3 The deepest interpreted oil-water contact is at 6,725 TVD 4 subsea in the V-100 well located here. 5 Exhibits 1-3A and 1-3B show the location of the 6 proposed area for the Borealis Pool Rules and the Borealis 7 Participating Area, respectively. This is the Pools area and 8 1-3B is the PA area. 9 Stratigraphy. Exhibit 1-4 shows a portion of the 10 open-hole wireline logs from the West Kuparuk state number one 11 well. This type log illustrates stratigraphic definition of 12 the Borealis Pool. The Kuparuk formation of the Borealis 13 Pool, stratigraphic -- is stratigraphically complex and it's 14 characterized by multiple unconformities, changes in thickness 15 and sedimentary facies, and local digenetic cementation. As 16 shown on the type log in Exhibit 1-4, the Kuparuk formation is 17 divided into three stratigraphic intervals from oldest to 18 youngest. The A, B, and Kuparuk C intervals, with the A and 19 the C intervals divided into a number of sub-intervals. 20 Structure, Kuparuk formation structure. Exhibit 1-2 21 is again the top Kuparuk formation structure map with a 22 contour interval of 25 feet. The Kuparuk formation structure 23 containing the proven and potential hydrocarbon accumulations 24 within the proposed Borealis Pool is essentially a northwest 25 to southeast trending antiform created by basement involved METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 JUN 2, 92t3Dt\ It I . ). . 9 1 northwest-southeast trending faults that are intersected by a 2 younger set of north-south striking faults. Both sets of 3 faults are extensional, or normal, and en echelon, resulting 4 in a series of intersecting relay ramps. 5 The southeastern limit of the Kuparuk formation is 6 coincident with the Prudhoe high, a large basement involved 7 structural uplift that underlies the Prudhoe Bay field. 8 Exhibit 1-5 is a northwest to southeast oriented 9 structural cross-section along the axis of the Borealis 10 You can see it in Figure 1-2/ 1-2/ Frank, would structure. 11 show the location. This is the lineup section shown in 12 yellow. The cross-section illustrates the charter of faulting 13 and the southeastern truncation of the Borealis Pool by the 14 LCU, otherwise known as lower cretaceous unconformity, and the 15 C-4B/c-4A unconformities. Exhibit 1-6 is a strike oriented 16 seismic traverse at the same northwest to southeast location 17 as the cross-section. This exhibit shows the overlying and 18 underlying stratigraphy as well as the fault complexity of 19 this area. Exhibit 1-7 is a dip-oriented seismic traverse 20 from southwest to northeast. It shows a cross-sectional view 21 of the structural ridge that forms the Borealis Pool and also 22 illustrates how fault complexity varies at different 23 stratigraphic horizons. 24 Fluid contacts. Exhibit 1-8 shows the interpreted 25 oil-water contacts in the Borealis Pool. Oil-water contacts METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 JUN 2, 920Q4 . ) i . 10 I 1 are expressed as oil-down-to and water-up-to because precise 2 oil-water contacts cannot easily be termin- -- be determined 3 from logs in the Kuparuk interval. Based on modeling, the 4 oil-water contact in the L Pad wells is approximately 6,625 5 TVD subsea, while free water analysis in the V-100 and Z-101 6 wells indicate an oil-water contact at approximately 6,725 TVD 7 subsea. 8 The Borealis development involves extensive collection 9 and utilization of initial static and wireline pressure survey 10 data within individual fault blocks. This will allow 11 monitoring of initial reservoir conditions present in each 12 well and will help to understand potential communication of 18 13 fluids across faults. 14 Pool limits. The trap for oil and gas in the Borealis 15 Pool is created by a combination of structural and 16 stratigraphic features. The accumulation is bounded in the 17 southwest by both a series of northwest and north-south 18 trending faults and the position of the oil-water contact. 19 The faults most likely seal where the reservoir is juxtaposed 20 against impermeable shales of the overlying Kalubik formation 21 and HRZ shale. To the northeast, the pool limit is defined by 22 the down structure intersection of the top of reservoir with 23 the oil-water contact. To the southeast, the reservoir is 24 truncated by the C-4BjC-4A unconformity and onlaps onto the 25 Prudhoe high. To the north-northwest, increasing fines 8 METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 ,JUN 2 92004 8 8 8 ) ) . . 11 1 degrade the primary reservoir sand units to the point of being 2 north -- to being non-reservoir. 3 The boundary of the Borealis -- pardon me. Exhibits 4 I-9A through 1-9E are gross isopach thickness maps of selected 5 subunits of the Borealis Pool, each with a contour interval of 6 five feet. Exhibits I-lOA through 1-10E are net hydrocarbon 7 pore foot maps of the Borealis Pool, with a contour interval 8 of one foot, with the exception of 1-10E that has a contour 9 interval of .5 feet. Wells annotated in blue on the exhibits 10 were drilled after mapping and contouring was completed. 11 In Exhibit 1-10 -- I-lOA, the C-4B NOPF map, net oil 12 pore foot map, is shaded to indicate an area of greater 13 uncertainty around Z Pad due to the presence of a thick, on 14 the order of 25 foot, layer of pore filling siderite in the C- 15 4B interval. Figure I -- figure I-lOB shows that the Borealis 16 PA area is largely defined by the net oil pore foot 17 distribution within the C-4A and C-3B intervals. 18 This concludes the testimony on geology for the ~9 Borealis Pool. The next section, reservoir description and 20 development planning, will be presented by Frank Paskvan. 21 CHAIR TAYLOR: Thank you. Mr. paskvan, would you like 22 to raise your right hand and..... 23 (Oath administered) 24 MR. PASKVAN: I do. 25 CHAIR TAYLOR: Do you wish to be considered an expert METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 29~M I 8 8 ) ) . . 12 1 for purposes of testimony? 2 MR. PASKVAN: Yes, I do. 3 CHAIR TAYLOR: Please go ahead and provide your 4 qualifications. 5 MR. PASKVAN: My name is Frank paskvan, that's P-a-s- 6 k-v, as in Victor, a-no I am a reservoir engineer for BP 7 Exploration, Alaska, Inc. I'm currently working as the 8 reservoir engineer for the Borealis development project. I 9 received a Bachelor of Science degree in petroleum engineering 10 from the University of Alaska Fairbanks in 1985. In that 11 year, I joined Arco Alaska, Inc., which was later acquired by 12 BP. I have worked as a reservoir engineer on a variety of 13 Alaskan projects, including the Prudhoe Bay, Kuparuk, 14 Lisburne, Aurora, and Borealis fields. In 1994 I transferred 15 to Arco Indonesia, Inc., as a reservoir engineering 16 specialist. There I was responsible for training Indonesian 17 reservoir engineers and for appraisal and development planning 18 of the Tongu (ph) gas fields. I have been working with the 19 greater Prudhoe Bay satellites team since November of 1998. 20 And I would like to be acknowledged today as an expert 21 witness. 22 CHAIR TAYLOR: In the area of reservoir engineering? 23 In reservoir engineering. MR. PASKVAN: 24 CHAIR TAYLOR: Do you have any questions? 25 COMMISSIONER SEAMOUNT: No questions, no objections. METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 JUN 2 9 2004 I 8 . ). . 13 1 CHAIR TAYLOR: We'll accept your testimony as an 2 expert witness. 3 MR. PASKVAN: Thank you. I'll start on page 11, 4 section two, reservoir description and development planning. 5 Rock and fluid properties. 6 The reservoir description for the Borealis Pool is 7 developed from the Borealis log model. Core calibration data 8 include porosity, permeability, lithologic descriptions, x-ray 9 diffraction, and point count data. Wells with log or core in 10 the Kuparuk interval in the Borealis area are show in Exhibit 11 2-1. And the legend for which are core and which are logs is 12 shown. 13 Exhibit 2-2 shows the values for porosity and 14 permeability by zone that were used for the reservoir 15 . I simulation. As you can see, we have the C-sand lntervals and 16 the A-5, and the B is considered non-reservoir for purposes of 17 the reservoir evaluation. 18 Net pay was determined from the following criteria. A 19 minimum porosity of 15 percent, clay volume less than 28 20 percent, and glauconite volume less than 40 percent. Exhibit 21 2-3 shows a cross-plot of permeability versus porosity. And 22 on page 12, water saturations for the Borealis reservoir model 23 were characterized using a Leverett J function that resulted 24 in the initial water saturation values as shown in Exhibit 2- 25 2. The relative permeability curves are shown in the next METRQ COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 JUN 2 9 ZOU~} 8 8 8 . . 14 1 Exhibi t, 2 -4 . 2 The initial reservoir pressure is estimated at 3,439 3 PSIA at the reservoir datum of 6,600 feet TVD subsea. The 4 reservoir temperature is 158 degrees Fahrenheit at this datum, 5 and additional reservoir pressure measurement data are shown 6 in Exhibit 2-5. The -- on this I'd l~ke to point out the 1-1 7 C-sand is on the west side of the main setup faulting for the 8 This is the A-sand trend pressures and the C-sand structure. 9 trend pressures representative for the formation. And this is 10 excluded as bad data, we've remeasured it with a static gauge 11 and it shows falls on the C-sand pressure trend. 12 The reservoir fluid PVT studies conducted on Well V- 13 100 crude oil from down-hole MDT samples are considered the 14 most representative for the Borealis Pool. Exhibit 2-6 shows 15 these sample results for other wells and in comparison with 16 the -- with the V-100 well. Initial well tests L Pad wells 17 have shown API oil gravities ranging from 25.6 to 27.5 18 degrees. In Exhibit 2-7 there are details of these well tests 19 and their initial well static pressure data, including oil 20 rate, water rate, gas rate, GOR water cut. There are 21 additional details on the Z-l-l well tests in Exhibit 2-7A. 22 And on page 13 then, Exhibit 2-8 shows a summary of 23 the fluid properties for the Borealis Pool, including a 24 summary of the key fluid components, pressures, temperatures, 25 oil gravities considered representative. METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 ~JUN 2 92.004 . ). 15 It 1 And Exhibit 2-9 is a listing of the PVT properties as 2 they vary as a function of pressure. This was developed after 3 the V-100 down-hole MDT fluid sample. 4 Hydrocarbons in place. The current estimate of 5 original oil in place in the Borealis participating area 6 ranges between 195 million and 277 million stock tank barrels 7 of oil. Associated formation gas in place ranges from 85 to 8 125 billion standard cubic feet, and there are no indications 9 of a free gas column in the Borealis Pool. 10 Well performance. A summary of wells tests is -- in 11 and near to the Borealis Pool Ru7les area is included as 12 Exhibit 2-10, and these are primarily the early wells, I 13 appraisal wells, drilled, and there's a test date shown when 14 these wells were tested, with the exception of a more recent 15 test at the northwest (indiscernible) 1-2, which has since 16 been renamed L-101. 17 In addition to these tests, six development wells have 18 been tested in the Kuparuk formation and the details of those 19 tests were shown in Exhibit 2-7. 20 On page 14, development planning. A reservoir 21 simulation model of the Borealis Pool was constructed to 22 evaluate development options, investigate reservoir management 23 practices, and generate rate profiles. The model area 24 encompasses the proposed Borealis Pool area. 25 On page 15, development options evaluated include 8 METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 q \\\\ ') Q "'Of'¡ f1 \~ d {,} '/;j '" IJ&J.- 8 8 8 . ). 16 1 primary depletion and waterflood with a miscible gas flood 2 also analyzed. The model results indicate that primary 3 depletion would recover approximately 13 percent of the 4 original oil in place, and Exhibit 2-11 shows the production 5 and recovery profiles for primary depletion. 6 Waterflood has been identified as the preferred 7 development option for Borealis. The reservoir simulation of 8 waterflood reached a recovery of 23 percent of the Borealis 9 participating area OOIP with .47 hydrocarbon pore volumes of 10 water injected. And this Exhibit 2-12 shows production and 11 recovery profiles for that Borealis waterflood development. 12 Exhibit 2-13 shows field recovery impacts with 13 deferred water injection startup, and reservoir modeling 14 indicates that Borealis can be produced under primary 15 production for 18 months with pre-production of planned 16 injectors without reducing ultimate field recovery. And in 17 this -- there are two different bubble point fluids used. 18 There's some uncertainty as to the exact reservoir fluid 19 composition bubble point, so we've run sensitivities to each 20 of those and we consider now the 2,750 as the most 21 representative. 22 On page 16, development plan. Borealis development 23 plans include approximately 20 to 50 production and injection 24 wells within the Borealis participating area. Water injection 25 is expected to commence once a series of injectors, the METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 ') f":. ?onJ~ 6J ijJ t;". u't 8 8 8 ). . 17 1 injection pipeline, and manifold construction are completed, 2 and approvals to inject are received. The pattern spacing 3 will be irregular, with well locations determined considering 4 local faulting and reservoir stratigraphy. On page 17, to 5 allow flexibility in developing the Borealis Pool, a minimum 6 well spacing of 40 acres is requested. 7 The objective of reservoir management strategy for the 8 Borealis Pool is to operate in a manner that will achieve the 9 maximum ultimate recovery, consistent with good oil field 10 engineering practices. The reservoir management strategy for 11 the Borealis Pool will continue to be evaluated throughout the 12 reservoir life. 13 This concludes the testimony on reservoir description 14 and development planning. And the next section, facilities, 15 will be presented by Scott Mattison. 16 MR. MATTISON: My name is Scott Mattison, and I'm 17 going to ask to be recognized as an expert witness in 18 facilities today. 19 CHAIR TAYLOR: Would you raise your right hand, 20 please? 21 (Oath administered) 22 MR. MATTISON: I do. 23 CHAIR TAYLOR: Would you please spell your last name 24 for the court reporter and then.. ... 25 MR. MATTISON: My name is Scott, S-c-o-t-t, Mattison, METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 JUN 2; ~ 2004 . ). 18 . 1 M-a-t-t-i-s-o-n. 11m an engineer for BP Explorationl Alaskal 2 Inc.1 currently working asa facility engineer for the 3 Borealis project. I received a Bachelor of Science degree in 4 chemical engineering from Louisiana State University in 19751 5 and joined BP in June of 2002 via the acquisition of Arcol and 6 have worked in Alaska on a variety of projects since 1981. 7 lIve been working with the greater Prudhoe Bay satellite team 8 since July 2001. And I would like to be acknowledged today as 9 an expert witness in the area of facilities. 10 CHAIR TAYLOR: Do you have any questions or..... 11 COMMISSIONER SEAMOUNT: I have no questions I nor do 1 12 object. 13 CHAIR TAYLOR: Your testimony will be considered as an 8 14 expert in facilities engineering. Please proceed. 15 MR. MATTISON: Exhibit 2-4 is an area map showing the 16 locations of the pads and roads and pipelines that we 17 installed for this project. Borealis wells will be drilled 18 from existing LI V and possibly Z pad. Let/s seel L padl V 19 padl Z pad is here (indiscernible). Borealis fluids will be 20 commingled with Prudhoe Bay unit initial participating area 21 fluids on the surface. New pipelines were installed from L 22 pad through VI past ZI and on down to the EWE junctionl where 23 the fluids then flow to GC-2 for processing and delivery to 24 pump station one. Injection water and gas lift lines will be 25 extended from Z pad to L and V pad. They picked up our gas . METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 JUN 2 ~ì 2004 . 18 . . . 19 1 lift and water line from there and brought them on up. 2 Production and injection manifold capable of 3 accommodating up to 24 new Borealis wells has been built, and 4 in place, and is in use on L pad. A similar manifold is being 5 placed at V pad and is expected to be in service in the first 6 quarter of 2002. And in fact, we started it up a week and a 7 half or two weeks ago. And no major modifications to the GC-2 8 production system will be required to process Borealis 9 production. 10 This is L pad. The pipeline comes in here, that's the 11 shutdown valve, the manifold module and test separators sit 12 here. On 15 foot well spacing, existing wells are shown as 13 boxes, future wells are shown as circles. We are pre- 14 producing the injectors through adjacent production slots. I 15 believe that's next. I believe that looks very similar, fewer 16 wells, we'll start drilling there next week. 100 was the 17 initial Borealis well, 201 is (indiscernible). Exactly the 18 same duplicate facilities, except there are no big launchers 19 or receivers at V pad because it is not the end of the line. 20 ' And this concludes testimony on facilities. The next 21 section, well operations, production allocation, the area 22 injection operations, proposed Pool Rules, will be produced by 23 -- presented by Bruce Smith. 24 MR. SMITH: Good morning, I'm Bruce Smith. I'd like 25 to be sworn in as an expert witness..... METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 JON ~!i 9 LDOl} I 18 8 ) . ). 20 1 CHAIR TAYLOR: Good morning. 2 MR. SMITH: .... .in petroleum engineering. 3 CHAIR TAYLOR: In petroleum engineering? Would you 4 raise your right hand, please? 5 (Oath administered) 6 MR. SMITH: I do. 7 CHAIR TAYLOR: Would you please spell your name just 8 for the record? 9 MR. SMITH: It's Bruce, B-r-u-c-e, last name Smith, S- 10 m-i-t-h. My name is Bruce Smith, I'm an engineer with BP 11 Exploration, Alaska, Incorporated, currently working as a 12 petroleum engineer for the Borealis development project. I 13 received a Bachelor of Science degree in petroleum engineering 14 from Colorado School of Mines. I joined Sohio, which was 15 acquired by BP in August 1984, and I've worked in Alaska on 16 various projects since 1984. I have taken postings at Dead 17 Horse; Houston; (indiscernible) Republic of Russia; Bogota, 18 Columbia; Venezuela; and Anchorage. I've been working with 19 the greater Prudhoe Bay development team since September 2000. 20 I would like to be acknowledged as an expert witness. 21 CHAIR TAYLOR: Any questions, any objection? 22 COMMISSIONER SEAMOUNT: What was your year of 23 graduation? 24 MR. SMITH: 1984. 25 COMMISSIONER SEAMOUNT: Okay. Thank you, Mr. Smith. METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 SCANh\!Et) JUN 2 ~ 2004 8 8 8 . . 21 1 I have no more questions, nor do I object. 2 We'll consider you an expert witness in CHAIR TAYLOR: 3 the area of petroleum engineering. 4 MR. SMITH: Well operations, existing wells. Beyond 5 the area of the text itself, a clarification -- well, not a 6 clarification, just additional information. We currently have 7 14 wells that are drilled. Out of that, we have four 8 injectors and the rest are producers. We are pre-producing 9 the injectors. 10 On development well, drilling and development design, 11 Borealis development wells will be directionally drilled 12 utilizing drilling procedures, well designs, casing and 13 cementing programs similar to those currently used qt Prudhoe 14 Bay and other N9rth Slope fields. Surface hole will be 15 drilled no shallower than 1,900 TVD feet. That's where we'll 16 set our surface casing. 17 Well design and completions. Both horizontal and 18 conventional wells may be drilled at Borealis. Horizontal 19 completions would be -- would have perforating casings, 20 slotted liners, barefoot sections, or a combination of those. 21 Conventional wells will have cemented and perforated 22 completions. Fracture stimulations may be necessary to 23 maximize well productivity and injectivity. Tubing sizes will 24 vary between two and three-eighths and five and a half. 25 Currently, we've standardized our production tubing at three METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 JUN 2 9200r1 8 8 8 '\ " . ). 22 1 and a half, with injection strings at four and a half. 2 Borealis producers will be completed in a single zone, 3 Kuparuk formation. Injectors may be single or multi-zoned, 4 Kuparuk, Schrader Bluff, Sag, or Ivishak, utilizing a single 5 string and multiple packers as necessary. These are typical 6 completions. The left-hand side, what we consider and we have 7 a name for is micro-bore. It is a tapered series where this 8 section right here is all run together, as a tapered string, 9 so it ends up effectively becoming a mono-bore (ph). And we 10 have three and a half tubing. The actual tubing string stings 11 into the liner, so we have a uniform ID all the way down which 12 helps in the stimulation process for fracturing. 13 The gas lift design. At the same time we have jewelry 14 in the wells that allow us to install jet pumps. So we have 15 both options available on the producers. 16 On the standard injectors, it's what we consider an 17 ultra-slim hole, what we call an ultra-slim hole. It's a 18 seven by four and a half, with a nine and five-eighths surface 19 string. Again, it's lined up for pre-production or for 20 cleanup purposes, it has a gas lift -- gas lift valves are 21 installed in them. And during the injection process, those 22 are dummied off and pressure tested. 23 Those are the typical schematics there. Additional 24 jewelry has been installed, so in the future if jet pumps are 25 -- can be utilized, providing extra flexibility for artificial METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 ~JUN 2 32004 I . 8 . . 23 1 lift. Injectors will be designed to enable multi-formation 2 injection where appropriate in the Kuparuk, Schrader Bluff, 3 Sag River and Ivishak formations. This is an example of this. 4 It's still listed as an ultra-slim hole, but this is a dual 5 completion. And as such, we have a series of packers. In 6 this area right here, this would be the area that would be 7 perforated in the other zone on the existing wells, Schrader 8 Bluff in particular. The Kuparuk formation would be down 9 here. We have two specialized water injection mandrels. 10 These are not gas lift mandrels, they're actually designed for 11 water injection. They're a beefier design, long life, these 12 are proven technology and they're currently utilized 13 worldwide. 14 Up above, two gas lift mandrels, so pre-production can 15 be done. These are standard gas lift mandrels. It goes from 16 a four and a half -- through this area right in through here, 17 it goes into a three and a half, and it's three and a half to 18 the tailpipe itself. The reason for the three and a half 19 straddle in here is these -- these mandrels are beefy enough 20 that they have to be at three and a half. They carry quite a 21 bit more weight of metal. So two packers provide isolation, 22 and this is a typical design for the multi-formation 23 injection. 24 Production from these wells could be -- could improve 25 their injectivity, pre-production on these, and this is METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 ,JUN 2 92004 8 . . ) . ) . 24 1 something that we learned from our analog fields. So we will 2 pre-produce these anywhere from two weeks to four weeks is 3 what the plan is. And it -- the history, the analog 4 information shows that we actually double our injection rate 5 by pre-production, and then we switch into injection. 6 Open hole electric logs are -- may be run to provide 7 information. These would include gamma ray, resistivity, 8 density, neutron porosity, and other logging tools where 9 wellbore conditions allow their use. To date, all the 10 development wells have been conventional designs that are case 11 cemented and perforated. We have no horizontals currently 12 designed in the Borealis field. And this goes for both the 13 injectors and the producers, they're just strictly on those 14 three basic designs. 15 Surface safety valves. Surface safety valves are 16 included in the wellhead equipment for all Borealis Pool -- 17 all Borealis Pool wells on all wells, producers and injectors. 18 Subsurface safety valves. Subsurface safety valves 19 will be installed on the gas or miscible injection injectors 20 when in service. All well completions will be equipped with a 21 nipple profile at a depth just below the base of the 22 permafrost. 23 Okay, stimulation methods. Formation stimulation has 24 been implemented on all Borealis producers drilled to date, 25 and may be implemented to mitigate formation damage or METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 SCtìb~NED JUN 2 ~ 2004 8 . 8 ). ). 25 1 stimulate future -- to stimulate future Borealis wells. Acid 2 and other forms of stimulation may be performed as needed in 3 the future. 4 Reservoir surveillance program. Reservoir 5 surveillance data will be collected to monitor reservoir 6 performance and define reservoir properties. This will be 7 done on an incremental basis as needed, and on some on regular 8 scheduled. 9 Reservoir performance measurements. An updated isobar 10 map of reservoir pressures will be maintained and reported at 11 a common datum of 6,600 TVD subsea. Initial static reservoir 12 pressure will be measured on each production and injection 13 service well. Bottom hole pressure surveys will be acquired 14 yearly from a number of wells equal to the number of 15 governmental sections with the Borealis Pool which contain 16 active producing wells. A minimum of four surveys will be 17 taken each year in representative areas of the Borealis Pool 18 to ensure representative areal coverage. It is anticipated 19 that the operator will collect more pressure measurements 20 during the initial field development and fewer measurements as 21 development matures. 22 Surveillance logs. Surveillance logs may be 23 periodically run to help determine reservoir performance, such 24 as production profiles and injection profile evaluations. 25 Surveillance logs will be run on multi-zone completions to METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 JUN 2 ~ 20D~~ 8 8 8 . . 26 1 assist in allocation of flow spits -- splits as necessary. 2 Production allocation. Borealis wells will continue 3 using the interim metering and allocation plan based on a 4 minimum of two well tests per montht with linear interpolation 5 and fixed allocation factor of one until the PBUt Western 6 Satellite Production Metering Plan is approved for 7 implementation. With the approval of thé PBU Western 8 Satellite Production Metering Plant Borealis production 9 allocation will be done as follows. Allocation will rely on 10 performance curves to determine the daily theoretical 11 production of each well. The GC-2 allocation factor will be 12 applied for -- to Borealis Production. A minimum of one test 13 per wellt per month will be used to tune the performance 14 curves to verify the system performancet and no NGLs will be 15 allocated to Borealis. 16 Area injection operations. This application requests 17 authorization for water injection to enhance recovery from the 18 Borealis Pool. The proposed area for the area injection 19 operations is shown on Exhibit I-3A. This is the areat and 20 you were shown the PA earliert which consists in an area right 21 in through this area. They are consistent with the Pool Rules 22 themselves. 23 Ownerst surface owners. BP Explorationt Alaskat is 24 the operator of the proposed Borealis participating area. 25 Exhibit 6-1 is an affidavit showing that the operators and METRO COURT REPORTING,./NC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 ,JUN 2 $ 2004 It 8 8 ). ). 27 1 surface owners within a one-quarter mile radius of the area, 2 and within the proposed Borealis participating area, have been 3 provided a copy of this application for injection. 4 Casing information. The completion diagram in 4-1 is 5 representative of the planned injection wells. This is this 6 right here. This is their standard design on any well that is 7 not dual service, as discussed before. Cement bond logs have 8 been run on all injection wells. They demonstrate isolation 9 of the injection fluids to the Kuparuk formation. 10 Types of fluids and source. Produced water from GC-2 11 will be used as the primary water source for Borealis 12 injection. Produced water from GC-2 is used to -- in 13 injection programs in Aurora involving the same Kuparuk 14 formation through different -- though it's a different pool, 15 and they have no compatibility issues between source water and 16 injection zones of interest. 17 The composition of the injected fluid will be produced 18 water from GC-2. The water composition in the Borealis Pool 19 is based on water analysis from V-100. Compositions of both 20 are provided in this exhibit. We've also requested permission 21 for seawater and stimulation fluid, tracer fluid, as part of 22 this. And those are standard production fluids that are 23 involved in those. We've included this as an example for GC-2 24 produced water composition. 25 No significant compatibility issues are anticipated METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 JUN 2 9 2004 ). J. 28 8 1 between formation injected fluids, as shown in here. Scale 2 precipitation will be controlled using scale inhibition 3 methods similar to those used at Kuparuk River Unit and Milne 4 Point Unit. 5 Injection pressures. The expected average surface 6 water injection pressure for the project is 2,300 psi. The 7 estimated maximum surface injection pressure is 2,800 psi. 8 Fracture information. The expected maximum injection 9 pressure for the Borealis well will not initiate or propagate 10 fractures through confining strata, and therefore will not 11 allow injection or formation fluids to enter any freshwater 12 strata. 13 Freshwater strata. The Aquifer Exception Order number . 14 one, dated July 11th, 1986, exempts all portions of the 15 aquifers underneath the Borealis injection order area. 16 Enhanced recovery. Water injection operations at 17 Borealis Pool are expected to be above the Kuparuk formation 18 parting pressure to enhance injectivity and improve recovery 19 of oil. Fracture propagation models confirm that the 20 injection above the parting pressure will not exceed the 21 integrity of the confining stresses. 22 Hydrocarbon recovery. Reservoir simulation studies 23 indicate incremental recovery from waterflooding to be 24 approximately 10 percent of the original oil in place, 25 relative to primary depletion. . METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 c,JUN 2 9 20 Di1. . . . ). . 29 1 Under the Borealis Pool Rulesl BP Explorationl Alaskal 2 in its capacity as Borealis operator and Prudhoe Bay unit 3 operator respectfully requests that the Commission remove the 4 Borealis Pool from Conservation Order 349A and adopt the 5 following pool rules for the Borealis Pool. Under well 6 spacing under these rules I minimum spacing within the pool is 7 requested at 48 acres. 8 Switching over to the proposed Area Injection Order I 9 BP Explorationl Alaskal in its capacity as Borealis operator 10 and unit operator respectfully requests-that the Commission 11 issue an order authorizing the underground injection of class 12 two fluids for enhanced oil recovery in the Borealis Pool. 13 This concludes our prepared testimony. Weld be happy 14 to address any other questions from the Commission. 15 CHAIR TAYLOR: Thank you. I have a sign-in sheet here 16 and it indicates that all persons who signed up wishing to 17 testify have testified. Are there any other members from the 18 audience since signing up who wish to submit any testimonYI 19 either oral or written? Seeing no indication of thatl I will 20 presume that there are no additional persons wishing to 21 provide any testimony. Do you have any questions now or do 22 you want to take a quick recess? 23 COMMISSIONER SEAMOUNT: Let/s take a quick recess and 24 weill be back. 25 CHAIR TAYLOR: All right. Thank you very much for METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 JUN 2 92004 It 11 12 13 8 14 15 16 17 18 19 20 21 22 23 24 25 . . ) . 30 1 your testimony so far. We'll take about a 10 minute break, 2 10, 15 minutes, and then we'll resume. Thank you. 3 (Of f record) 4 (On record) 5 CHAIR TAYLOR: We're back on record, the time is 6 10:38, and the Commission is fast losing credibility on its 7 ability to keep track of time. We apologize for the delay. 8 First of all, we do have a number of questions for 9 youl but we would like to take this time to thank you very 10 much for a great presentationl good information provided to uSI and from what all of our senior staff tell us herel a tremendous response to requests for information that they have made to you. So thank you. And Mr. Seamount has a couple of questions for you first. COMMISSIONER SEAMOUNT: I just have a couple of questions for Mr. Paskvan. I believe that they should be directed to you. As far as your primary and secondary recoverYI could you tell us how these estimates compare with Kuparuk formation analogs elsewhere on the Slope? MR. PASKVAN: I/d be happy to. The primary recovery estimate of 13 percent is -- might be characterized as somewhat low. And the reason that it does appear low is that it represents a partial development of the Borealis participating area regionl the area wherein we have our greater confidence in the reservoir performance. And since METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 JUN 2 92004 I 8 8 '') . . 31 1 it's a ratio, you have a denominator there that is that of the 2 entire participating area, and the area in the region of V-100 3 in this estimate is relatively lesser developed. 4 But with regards to the waterflood recovery of 23 5 percent, one of the things that we did initially was compare 6 our recovery factors estimated by the reservoir simulation 7 model to analogs in the Kuparuk River unit where there's full 8 development of the reservoir there. And in that area, the 9 recovery factors are in the high 30's, low 40's. And if you 10 look at -- extract portions of the field development model, 11 where there is full development, the recovery factors are in 12 line with that, in the low 40's range. So. . . . . 13 COMMISSIONER SEAMOUNT: Okay. So if you were -- are 14 you telling me if you were to develop 100 percent of the area, 15 you'd get recoveries in the 40 percent range? 16 MR.PASKVAN: The area that -- wherein there is full 17 development, in the more northerly portion of the field, those 18 are representative recovery factors. And we do have some 19 questions about the development in the area of the V-lOO well. 20 We have just recently commissioned the V pad production 21 facilities and our first well is starting production there. 22 And -- but in general, I think one can characterize that area 23 as having lower permeability and may be more difficult to 24 establish a -- and I should -- let me quantify that. A 25 permeability on the order of the 10 millidarcys, or slightly METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 ~,$UN 2 9 2DOl~ I 8 8 ) . . 32 1 less, on average. And as a consequence, the productivity of 2 the wells is going to be lower. But there is a question in 3 our minds as to the waterflood performance of that region of 4 the field within the participating area. And so I can't at 5 this time quantify for you what the recovery factors might 6 best be estimated to be in that area. But we'll look into it 7 as the V-100 well tests progress and give us an idea about 8 producability (ph). 9 COMMISSIONER SEAMOUNT: Okay. One more topic. Is it 10 true that your initial -- that the wells' initial production 11 rates are higher now than what you originally expected? And 12 that's -- that refers to -- you estimate that you have 18 13 months on primary completion potential, and is it -- has it -- 14 has that interval of time become less because you're IP's are 15 higher than you expected? 16 MR. PASKVAN: Well, the initial production rates, we 17 have matched those with the reservoir simulator now. The 18 original reservoir simulation estimates were on the order of 19 two to 3,000 barrels a day per producer. And the current 20 estimates -- the initial produc- -- they're currently 21 producing at about that rate, on average between two and 3,000 22 barrels a day. There was a period of initial flush production 23 where the rates were above 4,000, and in some cases 5,000 24 barrels a day, on the initial wells, which is better than we 25 had initially estimated. But it is very much in line with METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 ~jUN 2 ~ LOOi~ ). ) . 33 . 1 Kuparuk CPF-11 C-sand producabilitYI particularly in light of 2 the fracture stimulations which have been placed therel which 3 we estimate a two to 2.2 pool of increase over an unstimulated 4 weIll which is typical of the Kuparuk field. But because the 5 current rates are in line with our two to 3/000 barrel a day 6 estimatel we feel confident that the period of time for 7 production that is estimated to not cause any harm to the 8 ultimate recovery is still representative. 9 COMMISSIONER SEAMOUNT: Okay. Thank you I Mr. Paskvan. 10 I have no other questions. 11 CHAIR TAYLOR: Okay. I actually have two questions 12 and I think they/re both going to be addressed to youl Mr. . 13 Beuhler. If I need to address them to somebody elsel feel 14 free to let me know. The first questionl actuallYI you may 15 need to get some additional information and get back to us I 16 but it concerns the three exhibits that were filed with a 17 request that they be held confidential. It/s Exhibit 2-41 2- 18 3, and 1-8. At least that/s what I have written down. So if 19 I/ve missed anything else that you have requested be held 20 confidential I please let us know. 21 And you may not be prepared to address this todaYI but 22 basically what we would like in the record is what is the 23 basis for the request for confidentiality. There are a number 24 of different ways in which information can be held 25 confidential here at the Commission. One is if it/s 8 METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 2 9 iGß4 . 8 . ) ) . . 34 1 information that is required as a result of the permit to 2 drill, and the statute is 31.05.035(c), and it allows for that 3 information to be kept confidential for a certain period of 4 time. Therefore, the information would be released when that 5 corresponding information that's in the well file gets 6 released. 7 There's also a different provision that allows for 8 commercial information, which is essentially trade secret 9 information or information that has economic value to the 10 company. And that's a different provision. It doesn't have a 11 time line attached to it. But for purposes of our record, 12 we'd like to have that in writing, if you can, just so that 13 the record's clear and our information is tracked and we make 14 sure that it remains confidential. 15 If it is the type of information that you're asking 16 for to be held longer than the 24 months, if you could provide 17 some indication of when you think it would be available for 18 public release. You're not required to do that, but it's 19 helpful only in that then the Commission can revisit that at 20 that time, so that, for purposes of just information 21 management, it makes it a little bit easier because sometimes 22 it's held confidential, but everything else in some other file 23 is made public. So do you have some idea as to how long you 24 think it would take to get a response to us on that? 25 MR. BEUHLER: I think we could respond to that fairly METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 2, 92004 I 8 8 ) . . 35 1 shortly. I think next week we could have that. 2 CHAIR TAYLOR: By Tuesday or Wednesday or -- do you 3 want to pick a date? I just want to make sure I keep the 4 record open long enough to do that. 5 MR. PASKVAN: I think we can get it by Wednesday. 6 MR. BEUHLER: Certainly our desire is to provide it as 7 quickly as possible. I think Wednesday would be a good 8 expectation. 9 CHAIR TAYLOR: Okay. Why don't I keep the record open 10 then until Wednesday of next week at 4:30 to receive that, 11 just to be sure that we can track that information. My second 12 question refers specifically to the rule on the production 13 allocation. All of the proposed rules that you have requested 14 have sufficient information in the record, everybody's very 15 comfortable with issuing those, but this one raises some 16 questions. And I guess specifically our question to you would 17 be why issue this production allocation rule with a factor of 18 one before we see the production metering plan? 19 MR. BEUHLER: Okay. The -- our recommendation and the 20 testimony is that we continue to engage in the interim plan, 21 which states an allocation factor of 1.0, until the Prudhoe 22 Bay western satellite plan is approved by the state. It is 23 our expectation and intent to provide that documentation next 24 week to the Commission, as well as the other state agency. 25 CHAIR TAYLOR: By when of next week? METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 ,JUN 2 ~ 200¿~ I 8 8 . . 36 1 I'm not sure I can..... MR. BEUHLER: 2 CHAIR TAYLOR: You're not sure? Okay. 3 ... ..deliver a more certain time. It MR. BEUHLER: 4 would be our desire to -- we could do it as soon as possible, 5 and we'll certainly attempt to do it by the Wednesday. 6 CHAIR TAYLOR: Part of the difficulty with trying to 7 decide how to proceed with the rest of these rules -- I mean, 8 is it your desire to have the rest of these rules issued prior 9 to a decision on that production metering plan? 10 MR. BEUHLER: Our desire would be to do them 11 concurrently. In other words, to provide the basis for our 12 recommendation in the testimony in the same time we provide 13 this other request. 14 CHAIR TAYLOR: How will that affect you timing-wise? 15 If people haven't had a chance to see that, they may want some 16 opportunity to review that and perhaps even comment on the 17 record. 18 MR. BEUHLER: Maybe suggest that we provide the 19 documentation next week and then provide -- I think there -- 20 as you're saying, I think there's a desire to provide feedback 21 potentially on the record to that. Maybe we can do a check-in 22 at that point to see if the record needs to be held open 23 longer than Wednesday. 24 CHAIR TAYLOR: We're juggling sort of doing something 25 here on the public record versus doing something that we'd METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 SCAN~'\!EC JUN 2 9 2004. . ) . 37 8 1 then have to notice for a subsequent hearing. And 2 unfortunately, the way our regulations are written right now, 3 we're tied into a 30 day notice. If you wish to have these 4 concurrently, one suggestion I may make is that we actually 5 continue this hearing rather than closing it today to a date 6 that would be workable for everybody. And at that point, 7 anybody who had or who wanted to make comments or provide 8 additional testimony could do so at that hearing time. 9 MR. BEUHLER: That would be acceptable. 10 CHAIR TAYLOR: Okay. How much time -- you think this 11 could be submitted by next week? 12 MR. BEUHLER: Yes, the state agencies and the 13 Commission in particular have provided information requests . 14 which we supplied yesterday. And so I think part of this is 15 -- will be an appropriate amount of time for the Commission to 16 review that request and see if -- or that information and see 17 if you need additional time. But in terms of the owners 18 providing documentation of the proposal for the plan, we could 19 do that next week. And we will certainly attempt to do that 20 by Wednesday. 21 CHAIR TAYLOR: Okay. Well, and then I'm going to have 22 to apologize. We'll have to take a quick break just to go 23 check our calendar. I've been out of the office this week, so 24 if you don't mind taking just a few minutes break, we'll run 25 down the hall and check with our special assistant and see if 8 METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 SCÞ~NNE[) ~JUN 2 ~ 20D~, ). . 38 It 1 she can give us a date, say, two weeks after that. 2 MR. BEUHLER: Sure. 3 CHAIR TAYLOR: Okay. 4 (Off record) 5 (On record) 6 CHAIR TAYLOR: We're back on record, it's a few 7 minutes after 11:00., We've just checked the calendar and 8 tried to schedule something for two weeks after the 17th. How 9 would May 2nd, Thursday, May 2nd in the morning work for a 10 continued hearing? 11 MR. BEUHLER: That would be acceptable. 12 CHAIR TAYLOR: We tentatively have something scheduled . 13 right now at 9:00 o'clock. I'm told that it's very unlikely 14 that that hearing would go forward. If you would like, we can 15 just calendar this for 9:15. If you don't want to take the 16 risk that the other hearing might go, we can move it to 10:00 17 o'clock. What would be your preference? 18 MR. BEUHLER: The earlier..... 19 CHAIR TAYLOR: 9:15? 20 MR. BEUHLER: Yeah. 21 CHAIR TAYLOR: Okay. We'll continue this hearing to 22 May 2nd at 9:15 at the Commission office to take any 23 additional comment or testimony and additional information on 24 the production allocation. 25 MR. BEUHLER: Okay. 8 METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 .JUN 2 9 7.0G!~ I . . ). . 39 1 CHAIR TAYLOR: Any other questions? Any other 2 business that we need to take up? Tþank you very much. We'll 3 close this hearing for today and continue -- leaving it open 4 until the 2nd. Thank you very much. 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 5 6 7 8 9 (END OF PROCEEDINGS) * * * * * * METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 tJUN 2 9200l} . ) . 40 8 1 C E R T I F I CAT E 2 SUPERIOR COURT ) ) ss. ) 3 STATE OF ALASKA 4 I, Car i-Ann Ketterling, Notary Public in and for the State of Alaska, do hereby certify: 5 6 THAT the foregoing pages numbered 02 through 39 contain a full, true and correct transcript of the Public Hearing before the Alaska Oil and Gas Conservation Commission, taken by Desiree Disotell and transcribed by Julie o. Gonzales¡ 7 8 THAT the Transcript has been prepared at the request 9 of the Alaska Oil and Gas Conservation Commission, 333 West Seventh Avenue, Anchorage, Alaska. 10 DATED at Anchorage, Alaska this 25th day of April, 11 2002. 12 SIGNED AND CERTIFIED TO BY: ~ . 13 .~\\''''IIII''III!I. S'\'''' . KE " 'III.. ~~ ~,,~ r.,..;!"" , b..\'....... ~.L\~ ~ ... f~. ...7/~ ~ ~ . . ,.., ~ ;¡¡ ,'. . ~-::. I J;: ~ 0 TAR y \ (i) \ 5: 1:.." : S % ".PUBL'C': § ~ . . ~ ~ ~. .;::. "... ... ~ ~~)o).....". £,~ ~'",,;,t::' OF ~~\'\"~ "'I""'ltnn\\'~ 14 15 16 17 18 19 20 21 22 23 24 25 8 METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 5C'~NNEDJUN 21 ~~ 20D4, . . . ) ) . . 1 ALASKA OIL AND GAS CONSERVATION COMMISSION 2 PUBLIC HEARING 3 4 ) ) Application by BP Exploration Requesting) Pool Rules and an Area Injection Order) for the Borealis Pool. ) ) In Re: 5 6 7 PART III 8 TRANSCRIPT OF PROCEEDINGS 9 Anchorage, Alaska May 2, 2002 9:00 o'clock a.m. 10 11 COMMISSIONERS: CAMMY OECHSLI TAYLOR, Chairperson DAN SEAMOUNT 12 * * * * * * 13 14 15 16 17 18 19 20 21 f)F"'p""'FI\frn ir"i:' ,,'" ~ f,~ ~ q ". ~ . ¡¡~:;....~~-L ~ V r L 22 23 f~'1A-'( ~? 0 2:002 24 Alaska OJ! & Gas Cens, l;U¡t¡¡j¡j;)~H.i! Änchora08 25 METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 JUN 2 ~ 20D~~ . . . . . 2 1 PRO C E ED I N G S 2 (On record) 3 CHAIR TAYLOR: Good morning. This is a continuation 4 of the Borealis Pool Rules hearing. Today is, goodness, May 5 2nd, 2002. It's approximately 9:19. We're at the Commission 6 office at 333 West Seventh. And the purpose of the 7 continuation of this hearing today was to follow up with some 8 specific information with respect to metering and allocation 9 factors. I will -- my name is Cammy Taylor, and to my right 10 is Commissioner Dan Seamount, and to my very far right is 11 Julie Gonzales from Metro Court Reporting. These proceedings 12 are being recorded. If you wish to have a transcript, you can 13 make arrangements directly with Metro Court Reporting. 14 For purposes of today's hearing I have the sign in 15 sheet and it looks like, Mr. Beuhler, you are the only person 16 signed up to testify today. 17 Correct, that's our intention. If MR. BEUHLER: 18 there's follow up questions that we need additional folks to 19 testify, then I thought we could that as an incremental 20 decision at the time. 21 CHAIR TAYLOR: All right. I believe that you were 22 actually sworn at the last proceeding? 23 MR. BEUHLER: Yes, I was. 24 CHAIR TAYLOR: We'll just -- if you'll consider 25 yourself still under oath for purposes of this hearing, we'll METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 !~. "-t"'i ¡t \1\\ 2 9 LQU4. sCAt~Nt;.~ vv~~ . . . ) . . 3 1 let you begin. 2 MR. BEUHLER: Okay, thank you. And just for the 3 record, my name is Gilbert Beuhler. I'm the BP greater 4 Prudhoe Bay satellite resource manager, and the first name 5 Gilbert, last name Beuhler, B-e-u-h-I-e-r. So good morning. 6 In previous testimony in the Borealis Pool Rules hearing, we 7 agreed that the operator would provide to the Commission a 8 Prudhoe Bay unit western satellite production metering plan 9 for inclusion in the hearing record, and we have provided that 10 plan in a letter dated April 23rd to the Commission as well as 11 other appropriate state agencies. And today I would like to 12 testify to the key provisions of that plan. And I would also 13 like to enter that letter into the record, if it pleases the 14 Commission. 15 CHAIR TAYLOR: I have what appears to be two documents 16 with the April 23rd letter. One looks about this thick and 17 one looks about that thick. 18 MR. GRAVEN: One is the actual Prudhoe Bay western 19 region plan with attachments and the other is a response to 20 information requests from various state agencies. 21 CHAIR TAYLOR: Okay. Thank you very much. 22 MR. BEUHLER: The Prudhoe Bay western satellite 23 production metering plan is designed to accurately meter and 24 allocate satellite production, optimize use of existing 25 Prudhoe Bay facility infrastructure and allocation process METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 '.", r"l' N' p.r-- ~'", J U N ~ f\ 1)0 0 ~ ~\Vu-''¡.R \ ~'\!t'.L,! ,,' ,!:! (?¥ f.. \'~. . 3 4 5 6 7 8 9 10 11 12 13 . 14 15 16 17 18 19 20 21 22 23 24 25 . . ) . 4 1 where appropriate, use best practice learnings from western 2 operating area and eastern operating area experiences to identify specific improvements to current well testing and production allocation processes, and to promote operational efficiency by handling satellite and IPA wells consistently. The key provisions of the plan are, one, the current western operating area allocation technique for flowing wells will continue to be used. Daily production from the flowing wells will be based on the flowing tubing pressure and modified Vogel curve, or equivalent, developed from well tests. Two, the eastern operating allocation technique for gas lifted wells will be used in place of the current WOA procedure. Daily production from gas lifted wells will be based on empirical well performance curves derived from three phase flow equations and production well test data and will be a function of flowing tubing pressure and gas lift rate. Three, a minimum of one well test per month will be performed on each well. Efforts will be directed towards increasing the availability of well test separators through improved analysis of well stability test data. Four, all wells flowing to a gathering center, GC, will use that GC's well allocation factor for oil, gas, and water. Improvements to the GC bank oil meters are in progress as part of the oil gathering system leak detection process and METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 SCANNEl\,) ~JUN 2 9 2004\ . . . ~) ) . . 5 1 will provide improved allocation factors. 2 Five, all salient oil and water flow meters on GC two 3 well test separators will be upgraded to micromotion meters. 4 Use of these meters should improve both the gross fluid rate 5 and water cut measurement over results obtained using vortex 6 meters and capacitance probes. 7 Six, zero rate tests will be performed on all WOA pads 8 and gathering center test banks once a quarter, every three 9 months. If leak rates are not within acceptable tolerances, 10 corrective measures will be taken. Leak rates from the zero 11 test rate will be used to correct test rates as necessary. 12 And seven, reservoir specific shrinkage factors will 13 be used to correct metered fluids to stock tank barrels. 14 In the metering plan, the operator has recommended 15 this plan be implemented within three months of approval of 16 the Borealis participating area. Implementation by August 1st 17 of this year would also be acceptable. In support of this 18 plan, the operator also provides the following information and 19 recommendations. 20 First, the operator proposes to provide a production 21 metering and allocation policy and procedures document to the 22 Commission by August 1st of this year. This will be a review 23 of Prudhoe Bay unit production metering from pump station one, 24 operated by Alyeska Pipeline Service Company. The allocation 25 meters, also called bank meters, at gathering centers one and METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 -~~" JU1ì>.~ ~ Q ~OD4 SG!.\NNELJ ",'.~\ï tl "" C- ) . ) . 6 . 1 two, and the test separator meters. It will also map the 2 allocation process from the custody transfer volumes at pump 3 station one down to individual wells. Procedures will also be 4 provided on the monitoring and the preventative maintenance to 5 be performed on the meters to ensure long-term accurate 6 measurement. 7 Second, in support of effective communication of 8 implementation and ongoing performance of the plan, the 9 operator recommends performance reviews at four, eight, and 12 10 months after the plan is implemented. These reviews would 11 include plan implementation status, performance results to 12 date, and the opportunity for feedback on plan performance and 13 to clarify any outstanding questions or issues. . 14 Third, the operator proposes the following actions in 15 support of the plan. First, bank meter upgrades. In addition 16 to the bank meter upgrades previously implemented by the 17 operator, we plan to improve bank meter accuracy by providing 18 density measurement on appropriate bank meters. This allows 19 for calibration of the bank meters to variations on all 20 gravities as is expected when different wells or reservoirs 21 are produced through each bank meter. Two, provide for in- 22 flow performance curves based -- in-flow performance curve 23 based process for produced fluid allocation of all gas lifted 24 wells. Gas lifted wells flowing into GC two will be allocated 25 based on these performance curves as opposed to the single . METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 5C/1.N~~ED JUN 2 92004 . 2 3 4 5 6 7 8 9 10 11 12 13 . 14 15 16 17 18 19 20 21 22 23 24 25 . . ) . 7 1 point allocation as was done in the western operating area prior to August of 2001. Allocating based on performance curves should be more accurate, since it accounts for fluctuating wellhead pressure and gas lift rates. Well tests will be used to update the performance curves on an ongoing basis. Well tests will be used -- and this is conceptually the allocation technique that the EOA, the eastern operating area, has historically used, providing an improved and more consistent methodology for gas lift well allocation. Three, completion of micromotion meter upgrades to GC two well test separators. Of the 12 pads flowing to GC two, we have implemented seven, we plan to complete approximately one additional micromotion meter installation per month until the implementation is complete. Four, provide for an interim performance review and process assurance. As noted before, the operator recommends interim performance reviews at four, eight, and 12 months. Process assurance will provide for collecting and archiving appropriate information, including well tests, gas lift rates, wellhead pressures, and allocation methodology. This will be detailed in the policy and procedures documents which we propose to provide to the Commission by August 1st. Five, a process for continuous improvement. On an ongoing basis, the operator will review plan performance and METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 ~^"'«'l" U~u::!-~' ~ut\r ~ ID f)flfì!ì ~;,v \'\1 nH.!.(' t>J, p~ {,J @! 'J,IlJlèJ' . . . ) ) . . 8 1 implement appropriate process improvements to improve metering 2 and allocation effectiveness. Recent development work on a 3 new density calculation method for calibration of the net oil 4 computer, NOC, offers the potential of improving the existing 5 shrinkage factor and density determinations, especially in low 6 pressure wells. This new correlation is currently being 7 tested in the WOA. The short-term plan is to use this method 8 to assist with determining the oil and water densities to be 9 entered into the current NOC system on specific pads. We will 10 be evaluating the potential of utilizing this method to more 11 fully compensate for varying well testing conditions, such as 12 pressure, temperature, and GOR. 13 We are also evaluating other improvements, such as a 14 common well testing and allocation system, which would provide 15 a consistent allocation process for all wells in Prudhoe Bay. 16 We expect that there are additional opportunities to improve 17 metering allocation and we'll be evaluating these on an 18 ongoing basis. And I'll be -- we will be glad to answer any 19 of your questions. 20 CHAIR TAYLOR: I have one question on timing. The 21 implementation date, or the switch date, is looking like 22 August 1st, and that would be a time to set up another review 23 internally. How much lead time before that do you anticipate 24 providing information to folks on our staff so that they can 25 review that before the meeting on the 1st? METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 c({~.!\ ~\Ij~~..~Y"' J~ nM ~ ~ tJOfl i1 ~,~'V#""M '\W~ It:. U U å ~ tJ¡ '3 f... ,/-'" . . 8 ) ) . . 9 1 MR. BEUHLER: I would suggest that we could provide, 2 say, a draft of the procedures and policy document 15 to 30 3 days in advance of that date. 4 CHAIR TAYLOR: Mr. Beuhler, the Commission would like 5 to take a break to come back before we complete any decision 6 on what questions to follow up with. But before we do that, 7 I'd like to ask if there are any other members of the audience. 8 here who are prepared to provide any testimony today? I know 9 on the sign-up sheet it doesn't indicate that there are, but 10 following Mr. Beuhler's testimony I just wanted to check to 11 see if there was anybody else who may wish to provide 12 testimony. I don't see any indication. Anybody who wishes to 13 provide public comment for the record? I don't see any 14 indication that anybody wishes to do that. We'll go off 15 record for a quick break and we'll be right back. 16 (Off record) 17 (On record) 18 CHAIR TAYLOR: The time is approximately 9:35. Mr. 19 Seamount, do you have any questions? 20 COMMISSIONER SEAMOUNT: I have no questions. 21 CHAIR TAYLOR: Mr. Beuhler, I don't have any questions 22 either. We'd like to thank you for providing the additional 23 information to the Commission and for the presentation today. 24 I understand there was quite a bit of information exchanged, 25 so thank you very much. METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 ~'""r\'(~M\ÀB::r~1, J~JM C) ~ 200~ ~~6'~r\i~,\,!!I.;,tv .'~.!'\! ~ wit . . . ) . ) 1 MR. BEUHLER: Thank you. CHAIR TAYLOR: And we will work to get both those 2 . 10 3 orders out as quickly as possible so that you can proceed. 4 MR. BEUHLER: Okay, thank you very much. 5 CHAIR TAYLOR: Thank you, we're off record. 6 (END OF PROCEEDINGS) 7 * * * * * * 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 -, {('- J\ ~~\ D.Ú'ç: r . ~\,A-'~TI '\1 ~.~ i!.- L~- 2 ~ . . . ') ') . . 11 1 C E R T I F I CAT E 2 SUPERIOR COURT ) )ss. ) 3 STATE OF ALASKA 4 I, Car i-Ann Ketterling, Notary Public in and for the State of Alaska, do hereby certify: 5 6 THAT the foregoing pages numbered 02 through 10 contain a full, true and correct transcript of the Public Hearing before the Alaska Oil and Gas Conservation Commission, taken by Julie O. Gonzales and transcribed by Julie O. Gonzales; 7 8 THAT the Transcript has been prepared at the request 9 of the Alaska Oil and Gas Conservation Commission, 333 West Seventh Avenue, Anchorage, Alaska. 10 DATED at Anchorage, Alaska this 20th day of May, 2002. 11 SIGNED AND CERTIFIED TO BY: 12 , 13 14 r Alaska 7-19-04 15 16 17 18 19 20 21 22 23 24 25 METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 5C/\NNED JUN 2 9 200¿~. :t:I:: 0\ ) Borealis Pool Rules and ~ea Injec...ter Application ) . Borealis Pool Rules Area Injection Order Application (Revised) April 11, 2002 6C;f'~\!NEL;; JUN 2 ~ 2DDL1. April II. 2002 1/38 ) Borealis Pool Rules and Area Injec.der Application ) . April 11, 2002 Table of Contents I. <=Jeolo~){ .......................................................................... ~ Introduction... ......... ........... ............. .... ...... ........ ............ .......... ............... ............... ........... 3 S trati graph y ..................................................................................................................... 4 Kuparuk Formation Structure............... ',"""'''''''''''''''''' .................. """"""'''''''''' .......... 7 Fluid Contacts ............... ...................... .............. ............ ......................... ...... ...... ..... ........ 8 P 00 I Limits...................................................................................................................... 9 II. Reservoir Description and Development Plannin~ .....11 Rock and Fluid Properties.. .........................,.............................. ........... ....,......... .......... 11 Hydrocarbons in Place....................... ................... ....... ....... ........ ........... ...... ........ ......... 13 Reservoir Performance.... ....................... ....... .............. .......... ......... ........ ..... ..... ............. 13 Development Planning. .......... ........ .......... ...... ......... ..... ......... ..... .... ....... ................ ........ 14 Development Options.................................................................................................... 15 Development Plan .... .......... ................ ....... ................. ......... ........... ............... ................ 16 Reservoir Management Strategy........ ........... .......... ......................... ......... ........... ......... 17 III. Facilities.................................................................... 18 General Overview. ........................... ..... .................. .... ......... ............ ........ ...................... 18 Drill Pads and Roads .... ....... ................... ........ ................. ........... ....... ............... ...... ....... 18 Pad Facilities and Operations.... ......... ........ ................ ......... ............. ............... '''''''''''''-' .19 Gathering Center ........................................................................................................... 19 IV. Well Operations......................................................... 21 Drilling and Well Design.,......................... ............. ...... ........ ..... ................. ....... ...........21 Reservoir Surveillance Program.. ..... .......... ....... ...... ... .......... ... ..... .... ..... ..... ............. ...... 25 V. Production Allocation .... ................... ......... ........... ...... 27 VI. Area Injection Operations ......................................... 28 VII. Proposed Borealis Pool Rules .................................. ~~ VIII. Proposed Area Injection Order ............................... ~6 IX. List of Exhibits.......................................................... ~ 8 2/38 ~CANNE[)$JUN 2 3 2D04 ) Borealis Pool Rules and Area Injecti.er Application ) . April II, 2002 I. Geology Introduction The area for which the Borealis Pool Rules are proposed is located on Alaska's North Slope, as illustrated in Exhibit 1-1. The reservoir interval for the Borealis Pool is the Kuparuk River Formation. The Kuparuk River Formation within this area has substantial geological similarities, and common drilling and reservoir development issues. Hereafter, this application will refer to the Borealis Pool to include all the hydrocarbon bearing sands within the Kuparuk River Formation within the described area. The Borealis Pool was discovered in 1969 by the West Kuparuk State # 1 well, also identified as the W Kup 3-11-11 (Exhibit 1-2), which logged and tested hydrocarbons in the Borealis Pool. The Borealis Pool overlies the Prudhoe Bay Unit (PBU) Sadlerochit Group reservoirs in the vicinity of L and V Pads. As shown in Exhibit 1-2, the top of the Borealis structure crests at 6200' true vertical depth subsea (tvdss). The deepest interpreted oil-water contact (OWC) is at 6725' (tvdss) in the V-I00 well. Two dedicated appraisal wells, the L-I00 (originally designated as NWE 1-0Ia), and L-I0l (originally designated as NWE 1-02), both drilled in 1998, defined contacts along the western and central portions of the Borealis Pool. The V-I 00 well and the L-116, L-II0, L-114, L-l 07, L-117i and L-115i wells are more recent Kuparuk River Formation penetrations in this area. A number of PBU Sag River/Ivishak development wells also penetrated the overlying Kuparuk River Formation. Exhibits I-3A and I-3B show the location of the proposed area for the Borealis Pool Rules and the Borealis Participating Area (BPA), respectively. As noted above, the proposed Borealis Pool area is intended to encompass any area within the far western part of the Prudhoe Bay Unit with Kuparuk sands development potential. A portion of the proposed Borealis Pool Rules area is currently subject to Conservation Order 98-A and a portion is subject to Conservation Order No. 349A. It will be necessary to remove the area encompassed by the Borealis Pool from the affected areas of these two orders. With regard Conservation Order 98-A, the Borealis Owners support its repeal. The geographic scope of that order has been progressively diminished over the 5C/,NNED ~JUN 2, 9 ZOD,~ 3/38 ). Borealis Pool Rules and Area Injecti er Application . April 11, 2002 31 years since it was issued and statewide rules provide appropriately for any future wells in the area. Stratigraphy The productive interval of the Borealis Pool is the Kuparuk River Formation, informally referred to as the Kuparuk Formation. This formation was deposited during the Early Cretaceous geologic time period, between 120 and 145 million years before present. Exhibit 1-4 shows a portion of the open-hole wireline logs from the West Kuparuk State #1 well. This type log illustrates the stratigraphic definition of the Borealis Pool. The log is scaled in true vertical depth subsea and also has a measured depth (md) track. In the West Kuparuk State #1 well, the top of the Kuparuk Formation occurs at 6466' tvdss (6534' md) and the base occurs at 6882' tvdss (6952' md). The Kuparuk Formation was deposited as mid to lower marine shoreface. sediments, and is composed of very fine to medium grained quartz-rich sandstone, which is. interbedded with siltstone and mudstone. The sandstones typically have higher resistivity (5-50 ohm-meters) than the surrounding lithologic units. The Kuparuk Formation base is bounded by the Early Cretaceous-age ~iluveach Formation and is distinguished by a change in lithology and conventional electric log character. The Miluveach Formation is shale with low resistivity (1 to 3 ohm-meters). The Kuparuk Formation top in the Borealis Pool is defined by its contact with the Early Cretaceous Kalubik Formation. The Kalubik Formatíon is a dark gray shale with a Gamma Ray log signature of 80 to 135 API units, and is distinguished from the Kuparuk River Formation both by a change in lithology and conventional electric log character. The Kuparuk Formation in the Borealis Pool is stratigraphically complex and is characterized by multiple unconformities, changes in thickness and sedimentary facies, and local diagenetic cementation. As shown on the type log in Exhibit 1-4, the Kuparuk Formation is divided into three stratigraphic intervals, from oldest to youngest, the A, B, and C intervals, with the A and C intervals divided into a number of sub-intervals. An overlying unit, called the Kuparuk D Shale, is locally present in some areas of the Borealis Pool. SCANNEu fJDN 2 ~ 2004 4/38 ) Borealis Pool Rules and Ar~ Injec.rder Application . April 11, 2002 Two unconformities affect Kuparuk thickness and stratigraphy at Borealis, the Lower Cretaceous Unconformity (LCU) and the C-4B/C-4A Intra-Formational Unconformity. The LCU has erosional topography and truncates downward and dips to the east where it successively removes the Kuparuk B and Kuparuk A intervals. The C-4B/C-4A Intra- Formational Unconformity also truncates downward to the south and east progressively removing the C-4A, C-3B, C-3A, C-2, and C-1 sub-intervals before merging with the LCU east of Borealis. The Kuparuk A and B units have a distinctly different stratigraphic thickness trend than the Kuparuk C units. The Kuparuk A unit maintains a nearly uniform thickness throughout the proposed Borealis Participating Area, suggesting that its deposition pre- dates significant fault movement. In contrast, the thickness, lithofacies, and diagenesis of the C units are variable and have been influenced by differential erosion and variable diagenetic fluid effects. As a result of these processes, the entire Kuparuk C interval thins south and southeastward and reservoir quality varies laterally and vertically. The lower Kuparuk A interval contains two reservoir quality sub-intervals; the A-4 and A-5 sand units, which are approximately 30' and 20' thick, respectively. In structurally higher portions of the field, where the A sands are above the oil-water contact, the A sand units are potentially oil-bearing and productive. The A-5 sand appears to be higher quality reservoir than the A-4 sand. The overlying Kuparuk B interval is dominated by. siltstone and sandy mudstone with numerous discontinuous thin sandstone lenses up to l' in thickness. The Kuparuk B is considered non-reservoir within the Borealis Pool. The uppermost unit, the Kuparuk C interval, contains the primary reservoir sands of the Borealis Pool. The thickness of the Kuparuk C sands is variable and ranges from 70' at the northern reservoir truncation, to 180' in the area of the West Kuparuk State #1 well in the central portion of the Borealis Reservoir. The Kuparuk C thins to 50' in the Z Pad area, southeast of L Pad, and eventually thins or truncates to zero to the south and east of Z Pad. The lithology of this upper unit is variable, consisting of interbedded very fine- grained to medium-grained sandstone with minor amounts of muddy siltstone and sandy- 5/38 ~'I\ \1.\\' G) Ü 4f}flD4 SC!,NNED Jvn ffJ ¿J {(,.V ). Borealis Pool Rules and Area Injec der Application ) . April 11, 2002 silty mudstone. The Kuparuk C sands are generally very quartzose and moderately sorted. The Kuparuk C interval is intensely bioturbated, contributing to the heterogeneous nature of the reservoir. The Kuparuk C is further subdivided into the following sub-intervals from oldest to youngest: C-l, C-2, C-3A, C-3B, C-4A, and C-4B. The C-l overlies the Lower Cretaceous Unconformity. The Kuparuk C-l and C-4B sub-intervals are coarser grained and contain variable amounts of glauconite and diagenetic siderite. The porosity, permeability, and productivity of the Kuparuk sands are reduced with increases in clay volume, compaction, and cementation. The total clay volume in the Kuparuk C sands is composed of roughly equal amounts of illite, kaolinite and mixed-layer illite/smectite. Of the three clay types present, kaolinite is the most susceptible to formation damage; however, the relatively low volume of kaolinite minimizes the potential for migration of fines. Effective waterftoods have been established in the Kuparuk formation in several analogous fields. The C-l is the coarsest grained sub-interval. It is a well-sorted medium-grained sandstone with occasional coarse and very-coarse grains. The C-l has a fairly uniform thickness of 15' to 20' except to the southeast where it thins due to onlap onto the Prudhoe High. The upper portion of the C-l sub-interval gradationally fines.upward into the C-2 sub-interval. The C-2 sub-interval is the finest grained unit of the Kuparuk C interval and is generally considered non-reservoir. In the western portion of the Borealis Pool, it is dominated by silty mudstone with occasional very fine-grained sand laminations and interbeds. . In the southeastern part of Borealis, the C-2 lithology transitions to very fine-grained muddy- silty sandstone, indicating a lateral facies change from northwest to southeast. The C-2 interval has a somewhat uniform thickness of 25' to 40' in the central part of the field, however it thins to the southeast and is eventually truncated by the C-4B/C-4A Intra- Formational Unconformity in the vicinity of Z Pad. The C-3A sub-interval is composed of coarsening upward sandstone beds interbedded with silty mudstone. The sandstone beds range from l' to 2' thick to 10' thick with silty, 6/38 ~Ç!\ij\'NE[) JUN 2: £ 2004 ') Borealis Pool Rules and Area Inject.der Application . April 11, 2002 very fine-grained sand at the base; thicker intervals tend towards fine-grained sand at the top. The mudstone interbeds display lateral facies variation, similar to the underlying C-2 sub-interval, in that they coarsen into silty very fine-grained sandstone to the south and southeast. The overlying C-3B sub-interval is distinguishable from the underlying C-3A sub-interval as the C-3B sandstones are more amalgamated and the mudstone interbeds are not present. The C-4A sub-interval continues the coarsenIng upward trend from fine-grained sandstone at the base to medium-grained sandstone toward the top. Due to the relatively coarse grain size and low volume of clay matrix, the C-4A sub.,.interval has the highest net to gross and reservoir quality in the Kuparuk Formation in the Borealis Pool area. The C-4A and C-4B sub-intervals are separated by an intra-formational unconformity that marks the end of the coarsening upward trend. The C-4B Unconformity is a disconformity in the northern area of the pool. However, it truncates downward through the stratigraphic section in the southern and.eastem portion of the Borealis Pool, where it eventually merges with the Lower Cretaceous Unconformity. The top portion of the C-4B is a fining upward sequence grading into the overlying Kuparuk D or Kalubik Formation. Total C-4 interval thickness varies due to erosional truncation of the C-4A by theC-4B Unconformity. The interval is thickest in the L Pad area where total C-4 thickness exceeds 50 feet. The C-4A interval thins southeastward and is eventually truncated near the V-tOO well. Kuparuk Formation Structure Exhibit 1-2 is a top Kuparuk Formation structure map with a contour interval of 25 feet. The Kuparuk formation structure containing the proven and potential hydrocarbon accumulations within the proposed Borealis Pool is essentially a northwest-southeast trending antiform, created by basement-involved northwest-southeast trending faults that are intersected by a younger set of north-south striking faults. The northwest trending faults were active during deposition of the lower Kuparuk C (C-t), but do not appear to have been contemporaneous with Upper Kuparuk C (C-2 to C-4) deposition. Both sets of faults are extensional (normal) and en echelon, resulting in a series of intersecting relay ramps. The northwest trending faults that bound the field are not completely exposed at 7/38 SC;/ìNNE[> JUN 2 9 2004 ) Borealis Pool Rules and Area InjeCerder Application . April II, 2002 the top Kuparuk horizon, but are more evident at the LCU and older horizons. The intersection of the fault sets has resulted in a number of potentially isolated compartments within the field. The southeastern limit of the Kuparuk Formation is coincident with the Prudhoe High, a large basement-involved structural uplift that underlies the Prudhoe Bay field (Exhibit 1-2). Early Cretaceous and older sediments, including the Kuparuk Formation, lapped over this structural high, and were later uplifted and subsequently beveled off by unconformities. The erosional truncation is orthogonal to the northwestern orientation of the overall structural ridge. Exhibit 1-5 is a northwest-southeast oriented structural cross-section along the axis of the Borealis structure (see Exhibit 1-2 for location). This cross-section illustrates the character of faulting and the southeastern truncation of the Borealis Pool by the LCU and the C-4B/C-4A unconformities. Exhibit 1-6 is a strike-oriented seismic traverse at the same northwest-southeast location as the cross section (see Exhibit 1-2 for location). This exhibit shows the overlying and underlying stratigraphy as well as the fault complexity of the æ:ea. Exhibit 1-7 is a dip-oriented seismic traverse from southwest to northeast (see Exhibit 1-2 for location). It shows a cross-sectional view of the structural ridge that forms the Borealis Pool and also illustrates how fault complexity varies at different stratigraphic horizons. Fluid Contacts Exhibit 1-8 shows the interpreted oil-water contacts (OWCs) in the Borealis Pool. There is currently no evidence of free gas accumulation in the Borealis Pool. OWCs are expressed as oil-down-to (ODT) and water-up-to (WUT) because precise OWCs cannot be easily determined from logs in the Kuparuk interval. The estimated OWC for the Borealis Pool is 6668' tvdss based on the averages from the ODT and WUT information. Recent work has determined OWCs from free water level (FWL) modeling. Based on modeling, the owe in the L Pad wells is approximately 6625' tvdss, while FWL analyses in the V-lOO and Z-lOl wells indicate an OWC at approximately 6725' tvdss. These data suggest either a 100' range of OWC uncertainty or compartmentalization of the Borealis fault blocks with a southeastward deepening of the OWC across the Borealis 8/38 ~«""!~ Þ.<,.U\! !.~'ï"' ~ b < 'Þ ". F or \,J'~.. <~Ð~I~,~/k:t<! tel y N {.,: 9 2 J4 ) Borealis Pool Rules and Area Injec.der Application . April 11, 2002 area. Production data and OWCs from Milne Point and Kuparuk fields show examples of both sealing and non-sealing (transmissive) faults, with no clear indication of a single major control such as juxtaposition, orientation or direction of current maximum stress. Fault seal studies in Borealis using shale gouge ratio and stratigraphic juxtaposition indicate that faults with throw on the order of 125 ft. or greater have a higher probability of sealing, whereas faults with less than approximately 50 ft. of throw have high potential for transmissivity due to sand-on-sand juxtaposition. Faults within the range of 50 to 150 ft. are more uncertain. Each fault block in Borealis must therefore be evaluated as a separate case using all available data. The Borealis development involves extensive collection and utilization of initial static and wireline pressure survey data within individual fault blocks. This will allow monitoring of initial reservoir conditions present in each well and will help to understand potential communication of fluids across faults. These data will be used in ongoing planning and placement of future injectors and producers. Pool Limits The trap for oil and gas in the Borealis Pool is created by a combination of structural and stratigraphic features. The accumulation is bounded to the southwest by both a series of NW and N-S trending faults and the position of theOWC. The faults most likely seal where the reservoir is juxtaposed against impermeable shales of the overlying Kalubik Formation and HRZ Shale. To the northeast, the pool limit is defined by the down structure intersection of the top of reservoir with the oil-water contact. To the southeast, the reservoir is truncated by the C-4B/C-4A Unconformity and onlap onto the Prudhoe High. To the north-northwest, increasing fines degrade the primary reservoir sand units to the point of being non-reservoir. The boundary of the Borealis PAis within the proposed boundary of the Borealis Pool. Exhibits 1-9A through 1-9E are gross isopach thickness maps of selected sub-units of the Borealis Pool with a contour interval of 5'. Exhibits I-lOA through l-lOE are net hydrocarbon pore foot (NOPF) maps of the Borealis Pool with a contour interval of 1', except for I-I0E that has a contour interval of 0.5' . Wells annotated in blue on the exhibits were drilled after the mapping and contouring was completed. The NOPF maps 9/38 SC/~NNE[" ~jUN 2 9 2DD4 ) . Borealis.Pool Rules and Area Injecti8der Application ,) 8 AprilJ 1, 2002 are generated by limiting the gross sand map at the OWC and multiplying that by the mapped net-to-gross ratio, porosity and oil saturation. These maps are interpretive and are subject to revision as new well data becomes available. The C-4B NOPF map (Exhibit I-lOA) is shaded to indicate an area of greater uncertainty around Z Pad due to the presence of a thick (approximately 25') layer of pore filling siderite in the C-4B interval. The siderite was observed in core from the Z-lOl weIland sidewall cores from the Z-35 well. The presence of siderite is considered to be the reason the Z-lOl did not produce from the Kuparuk C sand, even after being hydraulically fracture stimulated. These well results call into question the net pay criteria used for the Z Pad area, and is yet to be resolved. 10/38 sCtiNNED ~nJN ~ ~p 2004 ) Borealis Pool Rules and Afêa Inje.rder Application . April 11, 2002 II. Reservoir Description and Development Planning Rock and Fluid Properties The reservoir description for the Borealis Pool is developed from the Borealis Log Model. The Geolog Multimin software is used as the porosityllithology solver and is based on density, neutron, and sonic porosity logs or density and neutron logs if a sonic log is not available. Quality control procedures include normalization of the gamma ray, density and neutron logs. The Waxman-Smits correlation is used to model water saturations. Results from the log model are calibrated with core data from wells in the Borealis Pool and the nearby Aurora Pool. Core calibration data include porosity, permeability, lithologic descriptions, X-Ray diffraction and point count data. Supplemental core data were analyzed from wells in the eastern portion of the Kuparuk River Unit (KRU). Wells with logs or core in the Kuparuk interval in. the Borealis area are shown in Exhibit II-I. Porosity and Permeability Porosity and permeability measurements were based upon routine core analysis data (air permeability under net overburden constraining pressure with Klinkenberg liquid permeability correction) from wells with Kuparuk core including S-16, S-04, S-104, Beechey Point State #1, NWE 1-01, L-101 and NWE 2-01. The ratio of vertical to horizontal permeability (kv/kh) was 0.005 per 20' interval, based on the harmonic . average of routine core data in NWE 1-01. Typical single plug kv/kh ratios average 0.5 and range from 0.04 to 1.5. Exhibit 11-2 shows values for porosity and permeability by zone that were used in the reservoir simulation. Net Pay Net pay was determined from the following criteria: mInImum porosity of 15%, Vclay < 28%, and Vglauconite < 40%. If the volume of siderite exceeded 30%, the net pay was discounted by a factor of 50%. Exhibit 11-2 shows gross thickness by zone based on marker picks and net pay based on the Borealis Log Model criteria. The 15% porosity cut off corresponds to approximately 1 md of permeability and what could reasonably be expected to be reservoir. Exhibit II-3 shows a cross plot of permeability vs. porosity. SCANNED JUN 2 9 2004 11/38 ) Borealis Pool Rules and Area InjeCerðer Application ) . April 11, 2002 Water Saturation Water saturations for the Borealis reservoir model were derived using mercury injection capillary pressure analyses from NWE 1-01 and L-101 core plugs. The distribution of the data was characterized using a Leverett J~function. The J-function was then used to initialize the Borealis reservoir model resulting in the initial water saturation values shown in Exhibit ll-2. Relative Permeability Relative permeability curves for Borealis were determined by comparison to analog reservoirs on the North Slope. Pt. McIntyre rock type 8 relative permeability curves were selected on the basis of porosity and permeability similarities. The relative permeability curves employed in the Borealis reservoir model are shown in Exhibit II-4. Initial Pressure & Temperature Based on pressure data from V -100, the initial reservoir pressure is estimated at 3439 psia at the reservoir datum of 6600' tvdss. The reservoir temperature is 158 degrees Fahrenheit at this datum. Additional reservoir pressure measurement data are shown in Exhibit II-5. Fluid PVT Data The reservoir fluid PVT studies conducted on Well V~100 crude oil from down hole MDT samples are considered the most representative for the Borealis Pool. The reservoir pressure was 3442 psia at 6610' tvdss with a temperature of 151 degrees Fahrenheit. The API gravity was 24.10 with a solution gas oil ratio (GaR) of 457 scf/stbo. The formation volume factor was 1.23 RVB/STB and the oil viscosity was 2.97 centipoise at reservoir pressure and temperature. Other PVT samples include L-101 (formerly NWE 1-02) surface samples and L-117 downhole MDT samples. Exhibit ll-6 shows these sample results in comparison with V-l00. The L-I 0 1 surface sample bubble point is not a measured value; it is based on analogy to eastern Kuparuk River Unit oil bubble points correlated with API gravity and GaR. The L-117 sample PVT analysis is not complete. Initial well tests from L Pad wells have shown API Oil gravities ranging from 25.6 to 27.5 degrees. Details of these well tests and initial well pressure data are in Exhibit II-7. 12/38 SCANNED 9 ~ì t)nf'1¿~ e~ft QJ c~ w U ~ ) Borealis Pool Rules and Areá Injecteder Application ) . April 11, 2002 Exhibit II-8 shows a summary of the fluid properties for the Borealis Pool. Exhibit II-9 contains a listing of PVT properties as a function of pressure. Hydrocarbons in Place Estimates of hydrocarbons in place for the Borealis Pool reflect current well control, stratigraphic and structural interpretation, and rock and fluid properties. The current estimate of original oil in place (OOIP) in the Borealis Participating Area ranges between 195 million stbo and 277 million stbo primarily due to uncertainty in the oil-water contact (OW C) and reservoir net pay interval thickness. Associated formation gas in place ranges from 85 to 125 billion scf. There are no indications of a free gas column in the Borealis Pool. Reservoir Performance Well Performance A summary of well tests in and near to the Borealis Pool Rules area is included as Exhibit II-10. The West Kuparuk State #1 well tested the Kuparuk Formation for six hours in January 1970, producing at 2200 bopd with a +3.7 skin in an unstimulated drill stem test with a 2200 psi flowing bottom hole pressure. Testing in the Kuparuk State 7-11-12, So Cal 33-29E, and Texaco Prudhoe 1 wells failed to produce oil from the Kuparuk Formation. In 1998, Well L-101 (former NWE 1-02) with a small (5700#) propped hydraulic frac job in theC-3B and un stimulated C-1 perforations produced 100 to 200 bopd during a 2 day test period. Exhibit II-10 does not include appraisal well V-100 and Z-101 results. Testing of appraisal Well Z-l Olin the C-sands with a 33,000# propped hydraulic frac job failed to produce at a sustained rate. Perforating and testing with the A-sands also open is underway with initial test results shown in Exhibit 11-7 and recent well test results shown in Exhibit 11-7 A. Well V-I 00 should be tested when V Pad facilities are commissioned in the first quarter of 2002. Six development wells have been tested in the Kuparuk Formation: L-1oo, L-101, L-107, L-110, L-114 and L-116 at rates of 3815, 4836, 5135, 5134, 5481, and 5343 bopd, respectively. Additional details of these tests are shown in Exhibit II-7. These are ¡('.' ~¡:\ir-r.' .~ I¡N ") (:ì,cJODf¡ S\;'\n~~~,!l\:,tL) "J VJ! (/;,1 tJ ,-. '7 13/38 ., Borealis Pool Rules and Arê~ InjeC8rðer Application ) . April 11, 2002 S-shaped conventional wells with propped hydraulic fractures. These well locations are shown in Exhibit n -1. Aquüer Influx The aquifer to the northeast of Borealis could provide pressure support during field development. Early production data from the flanks of the field will be evaluated to determine the extent of pressure support. Current modeling efforts both with and without aquifer pore volume do not significantly change injector requirements or location. As production data become available this assessment will continue to be evaluated. Gas Coning I Under-Running There are no indications of a free gas column in the Borealis Pool, so coning or under-run mechanisms are not anticipated. Development Planning A reservoir model of the Borealis Pool was constructed to evaluate development options, investigate reservoir management practices, and generate rate profiles. Reservoir Model Construction A fine scale three-dimensional geolÇ>gic model of Borealis was constructed based on detailed stratigraphic and structural interpretation. This reservoir model is a three- dimensional, three-phase, black oil simulator. The model area encompasses the proposed Borealis Pool area. The model has 400' by 400' (3.7 acre) cells. The reservoir model is defined vertically with six layers with a nominal thickness of 20' and ranging from 6' to 46' thick. Exhibit n-2 shows the correspondence of model layers to geologic zones and summarizes average physical properties for each model layer. Faults and stratigraphic juxtaposition are honored in the model through the use of corner point geometry and non- local grid connections. Water saturations in the reservoir model were established by capillary pressure equilibrium using a Leverett J-Curve based upon Borealis core mercury injection capillary pressure data. The oil-water contact (OWC) in reservoir quality rock is nominally 25' above the free water level (FWL) that is input to initialize the model; a 6650' tvdss FWL in northern L Pad and 6750' tvdss FWL in southern L Pad and V Pad correspond to a 6625' and 6725' OWC, respectively. ~-K' n ~¡¡..~ 9 Ð r)f¡Dl\. SCI\NNt:.L); .J\J)'Ì t" ~.J l:.\J . ¡ 14/38 ) Borealis Pool Rules and Are~/ Injecteder Application. ) . April 11, 2002 Development Options Development options evaluated for the Borealis Participating Area include primary depletion and waterftood with a miscible gas flood also analyzed. Primary Recovery The primary recovery mechanism was a combination of solution gas drive and aquifer support. Model results indicate that primary depletion would recover approximately 13% of the OOIP. Exhibit ll-11 shows production and recovery profiles for primary depletion. Under primary depletion, the Borealis Participating Area experiences a decline in reservoir pressure that falls below 2500 psig by year 2007. Annualized production rate peaks above 15,000 bopd in 2002 and falls to 2,000 bopd by the year 2010. Waterflood Waterflood has been identified as the preferred development option for Borealis. Borealis Participating Area development is anticipated to include between twenty (20) to fifty (50) production and injection wells. The reservoir simulation of waterflood reached a recovery of 23% of the Borealis Participating Area OOIP with 0.47 hydrocarbon pore' volume injected (HCPVI). Exhibit ll-12 shows production and recovery profiles for a . Borealis waterflood development. Annualized production rate peaks at 13,000 bopd in 2002, slightly lower than the primary recovery case because a number of wells are in water injection service, but production remains above 5,000 bopd though the year 2010 with a maximum water injection rate of over 20,000 bwpd: Reservoir modeling indicates that Borealis can be produced under primary production for eighteen months with pre-production of planned injectors without reducing ultimate field recovery. Exhibit ll-13 shows the field recovery impacts with deferred water injection startup. These cases were initialized with different oil bubble point pressures to address the bubble point uncertainty range indicated in Exhibit ll-6 and discussed in the Fluid PVT Data section. Waterflood development has been modeled using 2800-psi surface injection pressure, which shows no breakdown of the confining strata above or below the Kuparuk formation. Facility modifications are underway to increase the deliverability and pressure of the produced water system from GC- 2. The primary work is a letdown 15/38 5t:':ANNED JUN 2 ~ 2D04 ') Borealis Pool Rules and Areâ Injecteder Application ) . April 11, 2002 station in the GC that will boost available pressure and fluid handling efficiency. Enhanced Oil Recovery (EOR) Preliminary analysis indicates the potential for miscible gas flood in the Borealis accumulation. Early screening indicates approximately 5% incremental oil recovery. Further evaluations need to be performed to determine the impact on total recovery. Development Plan Borealis development plans include approximately twenty (20) to fifty (50) production and injection wells within the proposed Borealis Participating Area (BP A). Development drilling commenced July 2, 2001. Production commenced November 6, 2001. Development will take place from L Pad and V Pad. The southernmost Borealis wells may be drilled and produced from Z Pad. L Pad was originally an ice pad used to drill appraisal wells L~100 (formerly NWE 1-01A) and L-I0l (formerly NWE 1-02) in the first half of 1998. Appraisal well V-I00 was drilled in 200 1 from V Pad to evaluate reservoir potential in the eastern and south-central region of. the proposed BP A. These wells will be used as part of the planned development. Appraisal well Z-1 0 1 was drilled in December 2000 to evaluate acreage south of the proposed BP A. Development plans include drilling a series of production and injection wells beginning at L Pad then moving to V Pad. Each producing well may be stimulated, if necessary, with a propped hydraulic fracture. Water injection is expected to commence once a series of injectors, the injection pipeline, and manifold construction are completed, and approvals to inject are received. Development drilling likely will continue for a number of years. Borealis Owners will evaluate optimal well count, the number and the location of producers and injectors as development of the reservoir continues. Well Spacing Pattern spacing will be irregular with well locations determined considering local faulting and reservoir stratigraphy. The Borealis Pool may utilize conventional and horizontal wells nominally spaced at 160 acres per well in irregular patterns. Well spacing may be less than 80 acres per well with wells placed within the same quarter section but on opposite sides of faults. Future infill or peripheral drilling will be evaluated based on 16/38 5cAt~n~ED JUN 2 9 20D,~ ). Borealis Pool Rules and Arêa Inje . . rder Application ) . April 11, 2002 production performance and surveillance data. To allow for flexibility in developing the Borealis Pool, a minimum well spacing of 40 acres is requested. Reservoir Management Strategy Pressure support prior to watertlood start-up will be provided from solution gas drive and aquifer support. Once water injection begins, the voidage replacement ratio (VRR) will exceed 1.0 to restore reservoir. pressure. Once the reservoir pressure has been restored, a balanced VRR will be maintained. The objective of the reservoir management strategy for the Borealis Pool is to operate in a manner that will achieve the maximum ultimate recovery consistent with good oil field engineering practices. To accomplish this objective, reservoir management is approached as a dynamic process. The initial strategy is derived from model studies and limited well test information. Development well results and reservoir surveillance data will increase knowledge and improve predictive capabilities resulting in adjustments to the initial strategy. The reservoir management strategy for the Borealis Pool will continue to be evaluated throughout reservoir life. Reservoir Performance Conclusions Reservoir simulation supports. implementation of a watertlood in the Borealis Pool. Development will take place with the drilling. of producer-injector combinations in irregular patterns determined considering local faulting. Peak annualized production is expected to be between 10,000 and 15,000 bopd. Peak water injection is expected to be between 20,000 and 40,000 bwpd. It is requested that the Operator be allowed to determine the field off-take rate based upon sound reservoir management practices. 17/38 S(;ANNED JUN Z ~ 2004 ) Borealis Pool Rules and Area Inject.der Application ) . April 11, 2002 III. Facilities General Overview Borealis wells will be drilled from existing L, V and possibly Z pads. Borealis fluids will be commingled with Prudhoe Bay Unit Initial Participating Area (IP A) fluids on the surface to maximize use of existing IP A infrastructure, minimize environmental impacts and reduce costs to help maximize recovery. New pipelines (24" Production, 12" water injection, and 8" gas lift) have been installed for development of the Borealis reservoir. L and V Pad production will flow to the Eileen-West End (EWE) junction, joining Z Pad and W Pad production, and then flowing to Gathering Center 2 (GC-2) for processing and delivery to Pump Station 1. Injection water and gas lift gas lines will be extended from Z Pad to L and V Pads. Exhibit llI-l is a drill pad layout diagram of the facilities and wellhead locations at L Pad. Exhibits llI-2 and ill-3 are similar diagrams for V Pad and Z Pad. Exhibit ill-4 is an area map showing locations of the pad facilities, roads, and pipelines. The GC-2 production facilities to be used include separating and processing equipment, inlet manifold and related piping, flare system, and on-site water disposal. IP A field facilities that will be used include a 24"/30" low-pressure large diameter flowline, an 8" gas lift supply line, and a 12" water injection supply line. A miscible injection (M!) supply line could be installed from Z Pad to Land': Pads for future enhanced oil recovery (EOR) applications. The oil sales line from GC-2 to Pump Station 1 and existing power distribution and generation facilities will be utilized. Drill Pads and Roads L and V Pads have been chosen for the surface locations of Borealis Participating Area wells to reach the expected extent of the reservoir while minimizing new gravel placement, minimizing well step out and allowing the use of existing facilities. A Borealis area map showing the drill pads is shown in Exhibit m-4. Roads and access work are complete to L and V Pads. Additional Borealis Pool development could involve drilling from Z Pad and, potentially, a new pad. 18/38 ,JUN 2 9 2004 ".~ Borealis Pool Rules and Nèa Inject.der Application i8 April 11, 2002 Pad Facilities and Operations A production and injection manifold capable of accommodating up to 24 new Borealis wells has been built, placed, and is in use on L Pad. A similar manifold is being placed. at V Pad and is expected to be in service in the first quarter of 2002. Borealis is currently producing from wells on L Pad. Water for waterftood operations will be obtained from the existing 12" water injection supply line near Z Pad that has been extended to L and V Pads. Estimates indicate the line is sufficient to deliver water to Borealis injection wells at a rate of 40,000 bpd and a pressure up to 2800 psig. Should water injection pressures prove insufficient, injection pressure can be boosted locally; an upgrade to the existing power system would be necessary along with the installation of local water injection booster pump(s). Artificial lift gas will be obtained from the Borealis 8" gas lift supply line that is tied-in to the Prudhoe Bay Initial Participating Area (IP A) system near Z Pad. Preliminary estimates indicate that the line is sufficient to deliver gas to Borealis production wells at a rate of 80 mmscfpd and a pressure of approximately 1800 psig. Adjustments to production chokes will be performed manually by a pad operator. The automatic well safety systems and the pad emergency shutdown system can he triggered either manually or automatically. All producers will have actuated divert valves to allow switching from the production to the test header remotely. Gas lift chokes are also actuated to allow remote adjustment of gas lift rate. Production allocation is addressed in Section V. Well pad data gathering will be performed both manually and automatically. The data gathering system (SCADA) will be expanded to accommodate the Borealis wells and drill pad equipment. The SCADA system will continuously monitor the flowing status, pressures, and temperature of the producing wells. These data will be under the well pad operator's supervision through his monitoring station. Gathering Center No modifications to the GC-2 production system will be required to process Borealis 19/38 "'C"'A!\.ME.~-\'~' íU' N (¡) ø ')00.. ..~ S {' s.~~~ ti,~ ~ ... {..J ;¡j ,- . .'ir ). Borealis Pool Rules and Ar~a Injec rder Application . April 11, 2002 production. GC-2 was built to process a nominal oil rate of 400 mbopd, gas rate of 320 mmscfpd (modifications have increased this to 1,200 mmscfpd) and a nominal produced water rate of 280 mbwpd. Production, including that from Borealis, is not expected to exceed existing GC-2 capacity. A water injection pressure control station may be added to GC-2 to maximize the available water injection pressure. 5Çú-\NNED J..~ ~N SJI (, £)00/1 . \iJ~ '" {:!I ø c.' .-1¡ 20/38 ') Borealis Pool Rules and Aréa InjeCerder Application ) . April 11, 2002 IV. Well Operations Existing Wells Over the years, a number of exploration/appraisal wells and Prudhoe Bay Unit wells that targeted the deeper Ivishak production have been drilled and logged the Borealis Kuparuk Formation. However, only the recently-drilled L-100 (formerly NWE l-OlA), L-101 (formerly NWEI-02), L-I07, L-110, L-114, L-116, V-100 and Z-lOl wells and planned injectors L-115i and L-117i are currently completed in the Borealis Pool (as of February 27, 2002). These well locations are shown in Exhibit II-I. The Borealis Pool is currently producing from six L Pad producers (L-IOO, L-IOl, L-I07, L-IIO, L-114, and L-116); recent well test data are shown in Exhibit II-7. Two L Pad injectors have been drilled and completed and should be available to begin water injection upon approval of an Area Injection Order. Well V-100 is on production in the with commissioning of the V Pad facilities. Southeast of the proposed Borealis Participating Area, Well Z-l 0 1 is testing producibility of the Kuparuk Formation C and A sands. Drilling and Well Design Borealis development wells will be directionally drilled utilizing drilling procedures, well designs, and casing and cementing programs similar to those currently used in the. Prudhoe Bay Unit and other North Slope fields. A 16" or 20" conductor casing will be set 80' to 120' below pad level and cemented to surface. Consideration will be given to driving or jetting the 16" or 20" conductor as an alternative setting method. Requirements of 20 AAC 25.035 concerning the use of a diverter system and secondary well control equipment will be met. Surface hole will be drilled no shallower than 1900' tvdss. This setting depth provides sufficient kick tolerance to drill the wells safely and allows the angle-build portions of high departure wells to be cased. No hydrocarbons have been encountered to this depth in previous PBU wells. Cementing and casing requirements similar to other North Slope fields have been adopted for Borealis. The casing head and a blowout-preventer stack will be installed onto the surface casing ~CANNE[> ;JUN Z 9 20D~t 21/38 Borealis Pool Rules and Jlnj~ Applicatiou ) . April 11, 2002 and tested consistent with 20 AAC 25.035. The production hole will be drilled below surface casing to the Kuparuk Formation, allowing sufficient rathole to facilitate logging. Production casing will be set and cemented. Production liners will be used as needed, to achieve specific completion objectives or to provide sufficient contingency in mechanically challenging wells, such as high departure wells. To date, no significant H2S has been detected in the Kuparuk Formation while drilling PBU wells or in any Borealis well drilled to date. However, with planned watertlood operations, there is potential of generating HZS over the life of the field. Consequently, HZS gas drilling practices will be followed, including continuous monitoring for the presence of HZS. A readily available supply of H2S scavenger, such as zinc carbonate, will be maintained to treat the entire mud system. Emergency operating and remedial protective equipment will be kept at the wellpad. All personnel on the rig will be informed of the dangers of H2S, and all rig pad supervisors will be trained for operations in an HZS environment. Well Design and Completions Both horizontal and conventional wells may be drilled at Borealis. The horizontal well completions could be perforated casing, slotted liner,. barefoot section, or a combination. All conventional wells will have cemented and perforated completions. Fracture stimulation may be necessary to maximize well productivity and injectivity. Tubing sizes will vary from Z-3/8" to 5-112" depending upon the estimated production and injection rates. In general, production casing will be sized to accommodate the desired tubing size in the Borealis wells. 22/38 ~CANNED JUN 2 9 2DD4 ") Borealis Pool Rules and Arê~ Injec.rder Application . April 11, 2002 The following table indicates typical casing and tubing sizes for proposed Borealis wells: Surface Inter / Prod Casing Production Production Casing Liner Tubing Conventional 10-3/4" to 7" 7" to 3-1/2" Not Planned 5-1/2" to 2-3/8" Horizontal 10-3/4" to 7" 7" to 4-1/2" 5-1/2" to 2-7/8" 5-1/2" to 2-3/8" Plans are to run L-80 grade casing in the Borealis wells. Tubing strings will be completed with either 13-Chrome or L-80protected with corrosion inhibitor as necessary. Tubing jewelry will be composed of either 13-Cr or 9-CrIlMoly, which is compatible with both L-80 and 13-Cr. Use of 13-super chrome or equivalent is possible on certain completion jewelry. Borealis producers will be completed in a single zone (Kuparuk Formation). Injectors may be single or multi-zone (Kuparuk, Schrader Bluff, Sag and/or Ivishak) utilizing a single string and multiple packers as necessary. As shown in the typical well schematics, Exhibit N-1 for a conventional producer and injector wells and Exhibit N-2 for a multi- zone injector well, the wells have gas lift mandrels to provide flexibility for artificial lift or commingled production and injection. A sufficient number of mandrels will be run to provide flexibility for varying well production volumes, gas lift supply pressure, and water-cut. Additionally, jewelry will be installed so that jet pumps can be utilized providing further flexibility for artificial lift. Any completions which vary from those specified in State regulations will be brought before the Commission on a case by case basis. The Borealis Owners may utilize surplus IP A wells for development provided they meet Borealis needs and contain adequate cement and mechanical integrity. Producers are designed to be S-Shaped allowing lower mechanical and hydraulic energy for fracture stimulation. The injectors will be designed to enable multi-formation injection where appropriate to the Kuparuk, Schrader Bluff, Sag and Ivishak Formations. Injectors may be pre- 23/38 ~(('l\\MIT~E'þ¡ ~PN &) ~,<)on¿t \;;tIV/Ì~Ö \j a '3- i....,;I (,ß W d,' t:t rJ é. '\\"I , ) Borealis Pool Rules and Aiéa Injec.~rder Application . April J 1, 2002 produced prior to converting to permanent injection. Production from these wells could improve their injectivity and be used to evaluate reservoir productivity, connectivity and pressure response, enabling refinement of current reservoir models and depletion plans. Measurement while drilling (MWD) and logging while drilling (L WD) will typically begin after setting the 9-5/8" or 7-5/8" surface casing. Production hole will be drilled to below the Kuparuk Formation and either a 5-Y2" by 3-'12" or 7" long string will be cemented in place across the Kuparuk Formation. MWD will typically include drilling parameters such as weight on bit, rate of penetration, inclination angle, etc. L WD measurements will typically include gamma ray (GR), resistivity and density and neutron porosity throughout the reservoir section. Open hole electric logs may supplement or replace L WD logging, including GR, resistivity, density and neutron porosity and other logging tools when wellbore conditions allow their use. A nine (9) to eleven (11) pound per gallon (ppg) freshwater . low-solids non-dispersed mud system or equivalent will typically be used to drill the production / injection hole down to the 7" casing point. If any horizontal section is drilled, the mud system parameters may be optimized for that hole section. If horizontal wells are incorporated into the development, 7" intermediate casing will typically be set near the top of the Kuparuk Formation, drilled with a 6-1/8" horizontal' production hole and completed with a 4-Yí" or 3-'12" slotted or solid liner run, cemented and perforated as necessary. To date, all the development wells have been conventional designs that are cased, cemented and perforated. Surface Safety Valves Surface safety valves (SSV) are included in the wellhead equipment for the Borealis Pool for all wells (producers and injectors). These devices can be activated by high and low pressure sensing equipment on the flowline and are designed to isolate produced fluids upstream of the SSV if pressure limits are exceeded. Testing of SSVs will be in accordance with AOGCC requirements. Subsurface Safety Valves The characteristics of the Borealis Pool should not require the installation or use of :'. t, Ii;.P' ~F~ n 5P.~ ç:)I (;', 200 ~ ~Ç!¡-1H\1~\,",""U d ur'ii {"ì ~ M .'i 24/38 ) Borealis Pool Rules and AIea InjeC8rder Application ). April 11, 2002 phase fluid conditions), pressure fall-off, pressure buildup, multi-rate tests, drill stem tests, repeat formation test, permanent gauges, or an open hole formation test. An initial static reservoir pressure will be measured on each production or injection service well. Bottom hole pressure surveys will be acquired yearly from a number of wells equal to the number of govemmentalsections within the Borealis Pool that contain active producing wells. A minimum of four surveys will be taken each year in representative areas of the Borealis Pool to insure representative areal coverage. It is anticipated that the operator will collect more than the suggested number of pressure measurements during initial field development to identify potential compartmentalization and fewer measurements as the development matures. Data and results from all relevant reservoir pressure surveys will be reported annually but would be available to the Commission upon request. Surveillance Logs Surveillance logs, which may include flowmeters, temperature logs, or other industry proven downhole diagnostic tools, may be periodically run to help determine reservoir performance (i.e., production profile and injection profile evaluations). Surveillance logs will be run on multi-zone completions to assist in the allocation of flow splits as necessary. ~ÇANNEl; JUN 2 ~ 2DD4 26/38 ) Borealis Pool Rules and Area Inject8rder Application ') . April 11, 2002 V. Production Allocation Borealis wells will continue using the interim metering and allocation plan based on a minimum of two well tests per month with linear interpolation and a fixed allocation factor of 1.0 until the PBU Western Satellite Production Metering Plan is approved for implementation. With approval of the PBU Western Satellite Production Metering Plan, Borealis production allocation will be done as follows: (1) allocation will rely on performance curves to determine the daily theoretical production from each well, (2) the GC-2 allocation factor will be applied to Borealis production, (3) a minimum of one test per well per month will be used to tune the performance curves and to verify system performance, and (4) no NGLs will be allocated to Borealis. To support implementation of this plan, several improvements to the Western Operation Area of the PBU allocation system have been initiated: (1) conversion of all well test separators in the GC-2 area to two-phase operation with a coriolis meter on the liquid leg is expected to be completed in 2002, (2) the test bank meters at GC-1 and GC-2 have been upgraded as part of the leak detection system, and (3) a methodology for generating and checking performance curves for each well has been developed. To facilitate the approval of the metering plan, the Operator will provide the Commission and other State agencies a letter outlining the PBU Western Satellite Production Metering Plan. The Operator is available to meet with the Commission and other State agencies to review and discuss this plan. The Operator will also provide a status update within 12 months of implementation of the plan to the Commission and other state agencies. ~n~~ r;p ~ 2DDr.1 ~J ~J r~ t~~ /J¡!,.. ",' , 27/38 ) Borealis Pool Rules and Area InjeC.der Application ). April II, 2002 VI. Area Injection Operations This application, prepared in accordance with 20 AAC 25.402 (Enhanced Recovery Operations) and 20 AAC 25.460 (Area Injection Orders), requests authorization for water injection to enhance recovery from the Borealis Pool. The proposed area for Area Injection Operations is shown in Exhibit I-3A. This section addresses the specific requirements of 20 AAC 25.402(c). Plat of Project Area 20 AAC 25.402(c)(I) Exhibits 1-2 and II-I show the location of all existing injection wells, production wells, abandoned wells, dry holes, and any other wells within the Borealis Pool, as of November 1, 2001. Specific approvals for any new injection wells or existing wells to be converted to injection service will be obtained pursuant to 20 AAC 25.005, 25.280 and 25.507, or any applicable successor regulation. Operators/Surface Owners 20 AAC 25.402(c)(2) and 20 AAC 25.402(c)(3) BP Exploration (Alaska) Inc. is the operator of the proposed Borealis Participating Area. Pursuant to 20 AAC 25.402(c)(3), Exhibit VI-I is an affidavit showing that the Operators and Surface Owners within a one-quarter mile radius of the area and within the proposed Borealis Participating Area have been provided a copy of this application for injection. Description of Operation 20 AAC 25.402(c)(4) Development plans for the Borealis Pool are described in Section II of this application. Drill pad facilities and operations are described in Section III. Geologic Information 20 AAC 25.402(c)(6) The Geology of the Borealis Pool is described in Section I of this application. Injection Well Casing Information 20 AAC 25.402(c)(8) The L-l15 and L-117 wells were permitted and drilled for injection service for the Borealis Pool enhanced recovery project. The casing program for these wells was permitted and completed in accordance with 20 AAC 25.030. The completion diagram in 28/38 ~C!1N~\!ED tHJN 2 ~ 20D4 ) Borealis Pool Rules and Area Injec.rder Application ). April 11, 2002 Exhibit N -1 is representative for these planned injection service wells. Cement bond logs have been run on all injection wells; they demonstrate isolation of injected fluids to the Kuparuk Formation. Injection wells are completed in accordance with 20 AAC 25.412. The actual casing program is included with the" Application to Drill" for each well and is documented with the AOGCC in the completion record. API injection casing specifications are included on each drilling permit application. All injection casing is cemented and tested in accordance with 20 AAC 25.412 for newly drilled injection wells. All drilling and production operations will follow approved operating practices regarding the presence of H2S in accordance with 20 AAC 25.065. In the future, conversion of wells from production service to injection service will be in accordance with 20 AAC 25.412. Injection Fluids 20 AAC 25.402(c)(9) Type of Fluid/Source Fluids authorized for injection for the Borealis Oil Pool within the Prudhoe Bay Unit are: a. Produced water from Borealis or Prudhoe Bay Unit production facilities for the purposes of pressure maintenance and enhanced recovery; b. source water from a Seawater Treatment Plant; c. fluids injected for purposes of stimulation per 20 AAC 24.280 (2), consistent with other North Slope field practices; d. tracer survey fluid to monitor reservoir perfonnance, consistent with other North Slope field practices; e. source water from the U gnu Formation (compatibility tests are ongoing); f. filtered non-hazardous water collected from Borealis (e.g. well house cellars and standing ponds). Produced water from GC- 2 will be used as the primary water source for Borealis injection. Produced water from GC-2 is used in injection programs at Aurora and similar water from GC-1 is used for injection programs at Midnight Sun. These fields, involving the same Kuparuk Fonnation though different pools, have had no compatibility issues between source water and injection zones of interest. 29/38 ,JON 2 9 2004 ) Borealis Pool Rules and Area Inje.rder Application ). April 11, 2002 Composition The composition of the injected fluid will be produced water from GC2. The water composition in the Borealis Pool is based on water analysis from the V-100 well. Compositions for both are provided in Exhibit VI-2. The composition of Borealis produced water wiIl be a mixture of connate water and injection water. Maximum Injected Rate Maximum water injection requirements at Borealis Pool are estimated at 20,000 to 40,000 BWPD. Compatibility with Formation and Confining Zones Core, log and pressure-buildup analyses indicate no significant problems with clay swelling or compatibility with in-situ fluids. Analysis of the NWE 1-01 and L-101 core indicates relatively low clay content (5-35% by volume), primarily in the form of illite. Petrographic analysis indicates that clay volumes in the better quality sand sections (>20 md) are in the range of 3 - 6%. Clay volumes increase to approximately 6 - 12% in rock with permeabilities in the range of 10 - 20 md. Below 10 md, clay volumes increase to a range of 12 - 20%. Most of the identified clay is present as intergranular matrix, having been intermixed with the sand through burrowing. The overall clay composition is a mixture of roughly equal. amounts of kaolinite, illite and mixed layer illite/smectite. No chlorite was reported during petrographic analysis. No significant compatibility issues are anticipated between the formation and injected fluid shown in Exhibit VI-2. The presence of iron-bearing minerals suggests that the use of strong acids should be avoided in breakdown treatments, spacers, etc. Geochemical modeling results indicate that a combination of GC2 produced water and connate water is likely to form calcium carbonate and barium sulfate scale in the production wells and downstream production equipment. Scale precipitation will be controlled using scale inhibition methods similar to those used at Kuparuk River Unit and Milne Point Unit. QC""f\M},.,~E~-~.-" ~U. ~}..} C) (~FJonJi ~' ð:'''~~~è1~ ,~. ~.) ~J "~!~ ?} QjJ '- U~J- 30/38 ') Borealis Pool Rules and ArealnjeCerder Application ). April 11, 2002 Injection Pressures. 20 AAC 25.402(c)(10) The expected average surface water injection pressure for the project is 2300 psig. The estimated maximum surface injection pressure is 2800 psig. The resulting bottom hole pressure will be limited by hydraulic pressure losses in the well tubing, with a maximum expected bottom hole pressure of 5800 psig. Fracture Information 20 AAC 25.402(c)(11) The expected maximum injection pressure for the Borealis wells will not initiate or propagate fractures through the confining strata, and, therefore, will not allow injection or formation fluid to enter any freshwater strata. There is no evidence of injection out of zone for similar Kuparuk Formation watertlood operations on the North Slope. Dipole Sonic evaluations have measured values equal to or greater than 0.99 psi/ft confining stress. Freshwater Strata Aquifer Exemption Order #1, dated July 11, 1986, exempts all portions of the aquifers beneath the area designated under the Borealis Area Injection order and Western Operating area of Prudhoe Bay Unit. Enhanced Recovery Water injection operations at the Borealis Pool are expected to be above the Kuparuk Formation parting pressure to enhance injectivity and improve recovery of oil. Fracture propagation models confirm that injection above the parting pressure will not exceed the integrity of the confining zone. The Kuparuk Formation at the Borealis Pool is overlain by the Kalubik and HRZ shales, which have a combined thickness of approximately 300 feet. The HRZ is a thick shale sequence, which tends to behave as a plastic medium and can be expected to contain significantly higher pressures than sandstones of the Kuparuk Formation. Mechanical properties determined from log and core data for the HRZ and Kalubik intervals indicate a fracture gradient from approximately 0.8 to 0.9 psi/ft. The L-l 0 1 well was fractured stimulated in the Kuparuk C sand at the Borealis Pool, with SCI~NNEr~ JUN 2 ~ 20D4 31/38 ') Borealis Pool Rules and Area/lnjeC8rder Application ). April II, 2002 a formation breakdown pressure of 4290. psi, which calculates to a fracture gradient of 0.65 psi/ft at initial reservoir conditions. This data agrees with data from offset fields containing wells completed in the Kuparuk Formation. The Kuparuk Formation is underlain by the Miluveach/Kingak shale sequence. A leakoff test in the Kingak shale formation demonstrated leak off at a gradient of approximately 0.85 psi/ft. Although rock mechanics calculations and data from the Prudhoe Bay Oil Pool indicate that sandstone fracture gradients are reduced during waterflooding operations due to reduced in-situ rock stress associated with the injection of water that is colder than the reservoir, produced water from GC2 would have limited impact on the fracture gradient because the water temperature is expected to be close to the Borealis reservoir temperature. Hydrocarbon Recovery 20AAC 25.402(c)(14) Borealis Pool original oil in place is discussed in Section n. Reservoir simulation studies, also discussed in Section n, indicate incremental recovery from waterflooding to be approximately 10% of the original oil in place, relative to primary depletion. C("J\~\~r'~,'\ Jn1l\~ ~ €) {Jonr1 \;S1v5'M"JÞ,:¡C,U 'v~\! (.j fiJ L "'" 32/38 ) . ). Borealis Pool Rules and Area Inject rder Application April 11 , 2002 VII. Proposed Borealis Pool Rules BP Exploration (Alaska) Inc., in its capacity as Borealis Operator and Prudhoe Bay Unit Operator, respectfully requests that the Commission remove the Borealis Pool from Conservation Order 349 A and adopt the following Pool Rules for the Borealis Pool. The following rules apply to the affected area described below: Umiat Meridian TI2N-RI0E: ADL 25637 Sec TI2N-R11E: ADL 47447 Sec TIIN-RIIE: ADL 47446 Sec ADL 28238 Sec ADL 28239 See ADL 47449 Sec ADL 28240 Sec ADL 28241 Sec ADL 28245 Sec ADL 28244 Sec ADL 28246 Sec ADL 28261 Sec ADL 47450 Sec ADL28263 Sec ADL 28262 Sec ADL 47452 Sec ADL 47453 Sec ADL 28259 Sec TIIN-RI2E: TI2N-RI2E: 13,24 16 SW/4 and W/2 NW/4 and W/2 SE/4, 21, 22SW/4 and W/2 NW/4 and S/2 SE/4 17, 18, 19,20 26 S/2 and W/2 NW/4 and SE/4 NW/4, 35, 36 27,28,33,34 29,30,32 1, 2, 11, 12 3,4, 9, 10 13,14,24 15 25 9W/2 5 S/2, 6 S/2 and NW /4 and W /2 NE/4, 7, 8 16 W/2, 21 W/2 17, 18, 19,20 28 W/2, 33 W/2 29,30,31,32 31 W/2 and W/2 SE/4 Rule 1: Field and Pool Name The field is the Prudhoe Bay Field and the pool is the Borealis Pool. The Borealis Pool is classified as an Oil Pool. Rule 2: Pool Definition The Borealis Pool is defined as the accumulations of hydrocarbons common to and correlating with the interval between log measured depths 6534 feet and 6952 feet in the West Kuparuk State 1 well within the area designated above. Rule 3: Well Spacing Minimum spacing within the pool will be 40 acres. The Pool shall not be opened in any well closer than 500' to an external boundary where ownership changes. SI("l\þ.,'~íE~D JON 2 ~ 20D¡í 'i::.¡, Vð'"'tc ,,~~ 33/38 '} Borealis Pool Rules and Area InjeCeder Application ). April 11, 2002 Rule 4: Automatic Shut-In Equipment (a) All producer and injection wells will be equipped with a fail-safe automatic surface safety valve. (b) Surface safety valves will be tested in. accordance with Commission requirements. Rule 5: Common Production Facilities and Surface Commingling (a) The operator shall submit to the Commission for approval the Prudhoe Bay Western Satellite Metering Plan or other plan for allocation of production from the Borealis Pool. The PBU Western Satellite Metering Plan will satisfy the well testing requirements of 20 AAC 25.215, 20 AAC 25.230 and 20 AAC 25.270. (b) Until the Prudhoe Bay Western Satellite Metering Plan is approved and implemented, the operator shall submit monthly reports containing daily allocation and. well test data for agency surveillance and evaluation. During this period, each producing Borealis well will be tested a minimum of two times per month with production allocated by straight-line interpolation between well tests and the Borealis allocation factor will be 1.0. Rule 6: Reservoir Pressure Monitoring (a) The minimum number of bottom hole pressure surveys acquired yearly will equal the number of governmental sections within the Borealis Pool that contain active producing wells, but shall not equal less than four pressure surveys annually. (b) An initial static reservoir pressure will be measured on each regular production or injection service well within 30 days of initial perforation. (c) The reservoir pressure datum will be 6600' true vertical depth subsea. (d) Pressure data may be stabilized. static pressure measurements at bottom-hole or extrapolated from surface (single phase fluid conditions), pressure fall-off, pressure buildup, multi-rate tests, drill stem tests, repeat formation test, permanently installed gauges, or open hole formation test. (e) Data and results from pressure surveys shall be submitted with the annual reservoir surveillance report. All data necessary for analysis of each survey need not be submitted with the report but must be available to the Commission upon request. (f) Results and data from special reservoir pressure monitoring tests shall also be submitted in accordance with part (e) of this rule. Rule 7: Gas-Oil Ratio Exemption Wells producing from the Borealis Pool are exempt from the gas-oil ratio limit set forth in 20 AAC 25.240(b). Rule 8: Pressure Maintenance Project Water injection for pressure maintenance will commence before reservoir pressure drops below 2761 psi at the datum or within twelve months of initial production. ,JUN 2, 2 2DD'" 34/38 ) Borealis Pool Rules and Are~ InjeC8rder Application . April 11, 2002 Rule 9: Reservoir Surveillance Report A surveillance report will be required after one year of regular production and by April 1 of each year thereafter. The report shall include but is not limited to the following: 1. Summary of produced and injected fluids. 2. Summary of reservoir pressure analyses within the pool. 3. Results of well test and allocation results under Rule 5 and any other special monitoring. 4. Future development plan. Rule 10: Administrative Action Upon proper application, the Commission may administratively waive the requirements of any rule stated above or administratively amend any rule as long as the change does not promote waste, jeopardize correlative rights, and is based on sound engineering and geoscience principles. 35/38 ~'~'" J~ ¡?I.~ ~ !L~\ «HìÛ¿~ ~{(-'AW~úE.L.J) Ur~ (¿ (¡j¡ c.\) " \J~d".'t.f\: ð \1 ). ) Borealis Pool Rules and ~ InjeCerder Application April 11. 2002 VIII. Proposed Area Injection Order BP Exploration (Alaska) Inc., in its capacity as Borealis Operator and Unit Operator, respectfully requests that the Commission issue an order authorizing the underground injection of Class IT fluids for enhanced oil recovery in the Borealis Pool and consider the following rules to govern such activity. The Injection Order area is described below. Umiat Meridian TI2N-RI0E: ADL 25637 See TI2N-RI1E: ADL 47447 See TIIN-RIIE: ADL 47446 Sec ADL 28238 Sec ADL 28239 Sec ADL 47449 Sec ADL 28240 Sec ADL 28241 See ADL 28245 Sec ADL 28244 Sec ADL 28246 Sec ADL 28261 See ADL 47450 Sec ADL 28263 Sec ADL 28262 Sec ADL 47452 Sec ADL 47453 Sec ADL 28259 See T11N-RI2E: TI2N-RI2E: 13,24 16 SW/4 and W/2 NW/4 and W/2 SE/4, 21, 22 SW/4 and W/2 NW/4 and S/2 SE/4 17, 18, 19, 20 26 S/2 and W/2 NW/4 and SE/4 NW/4, 35, 36 27,28,33,34 29,30,32 1, 2, 11, 12 3,4, 9, 10 13,14,24 15 25 9W/2 5 S/2, 6 S/2 and NW /4 and W /2 NE/4, 7, 8 16 W/2, 21 W/2 17,18,19,20 28 W/2, 33 W/2 29,30,31,32 31 W/2 and W/2 SE/4 Rule 1: Authorized Injection Strata for Enhanced Recovery Within the affected area, fluids appropriate for enhanced oil recovery may be injected for purposes of pressure maintenance and enhanced recovery into strata that common to, and correlate with, the interval between the True Vertical Depths (subsea) of 6466 feet and 6882 feet in the West Kuparuk State #1 (6534' and 6952' measured depth, respectively). Rule 2: Fluid Injection Wells The underground injection of fluids must be through a well that has been permitted for drilling as a service well for injection in confonnance with 20 AAC 25.005, or through a well approved for conversion to a service well for injection in conformance with 20 AAC 25.280. Rule 3: Monitoring the Tubing-Casing Annulus Pressure Variations The tubing-casing annulus pressure and injection rate of each injection well must be checked at least weekly to ensure there is no leakage and that it does not exceed a pressure that will subject the casing to a hoop stress greater than 70% of the casing's minimum yield strength. ~C¡-\NNED ,JUN 2 S 2004 36/38 ) Borealis Pool Rules and Aré~ InjeCeder Application ) . April 11, 2002 Rule 4: Reporting the Tubing-Casing Annulus Pressure Variations Tubing-casing annulus pressure variations between consecutive observations need not be reported to the Commission unless well integrity failure is indicated as in Rule 6 below. Rule 5: Demonstration of Tubing/Casing Annulus Mechanical Integrity A schedule must be developed and coordinated with the Commission that ensures that the tubing-casing annulus for each injection well is pressure tested prior to initiating injection, following well workovers affecting mechanical integrity, and at least. once every four years thereafter. A test surface pressure of 1500 psi or 0.25 psi/ft. multiplied by the vertical depth of the packer, whichever is greater, but not to exceed a hoop stress greater than 70% of the casing's minimum yield strength will be used. The test pressure must show a stabilizing trend and must not decline J.11ore than 10%. in a thirty-minute period. The Commission must be notified at least twenty-four (24) hours in advance to enable a representative to witness pressure tests. Rule 6: Well Integrity Failure Whenever operating pressure observations, injection rates, or pressure tests indicate pressure communication or leakage of any casing, tubing or packer, the operator must notify the Commission on the first working day following the observation, obtain Commission approval to continue injection and submit a plan of corrective action on Fonn 10-403 for Commission approval. Rule 7: Plugging and Abandonment of Injection Wells An injection well located within the affected area must not be plugged or abandoned unless approved by the Commission in accordance with 20 AAC 25.105. Rule 8: Notification The operator must notify the Commission if it learns of any improper Class n injection. Additionally, notification requirements of any other State of Federal agency remain the Operators' responsibility. Rule 9: Administrative Action Upon proper application, the Commission may administratively waive the requirements of any rule stated above or administratively amend any rule as long as the change does not promote waste, jeopardize correlative rights, is based on sound engineering and geoscience principles, and will not result an increased risk of fluid movement into an underground source of drinking water (USDW). 37/38 ~UN. 2 Ü 200f! d ~- "'J d.'''' ). ) Borealis Pool Rules and Arëå Injecteder Application 1-1 1-2 1-3A 1-3B 1-4 1-5 1-6 1-7 1-8 1-9A-E I-10A-E II-I II-2 II-3 II-4 II-5 II-6 II-7 II-7A II-8 II-9 II-IO II-II II-12 II-I3 ill-I III-2 ill-3 ill-4 IV-I IV-2 VI-l VI-2 April II. 2002 IX. List of Exhibits Borealis Pool Location Map Borealis Top Kuparuk Structure Map Proposed Borealis Pool Rules and Injection Area Proposed Borealis Participating Area Type Log for Borealis Pool Structural Cross Section Seismic Traverse Along Structural Strike Seismic Traverse Along Structural Dip Interpreted Oil-Down- To and W ater-Up- To in Borealis Area Wells Gross Kuparuk Isopach Maps Net Oil Pore Foot Maps Borealis Region Wells with Log or Core Data Borealis Model Layering and Properties Core Permeability vs. Porosity Crossplot Borealis Model Relative Permeability Borealis Reservoir Pressure Data PVT Properties of Borealis samples Borealis Well Test and Initial Static Pressure Data Recent Well Test Data for Well Z-1 0 1 Borealis Typical Fluid Properties PVT Properties as a Function of Pressure Kuparuk Well Tests in the Borealis Region Production and Recovery Profiles for Primary Depletion Production and Recovery Profiles for Water Injection Field Recovery vs. Timing of Injection Drill Pad Layout at L Pad Drill Pad Layout at V Pad Drill Pad Layout at Z Pad Borealis Area Map Typical Producer and Injector Completions Typical Dual Injection Completion Affidavit Composition of Produced Water from GC2 and the Borealis Pool ¡Ç:f-'A. !\\) 1\'1:: c\ 1ïU N cr f"j, 2 0 D\4- '~~a,:!': ¿\&;;,U..J ~)- I.., Z (;J. ., 38/38 Exhibit VI-2: Composition of Produced Water from GC2 and the Borealis Oil Pool Source, ppm V.100 A sand water..MDT GC.2 Produced Water STP Seawater '---- Barium 28.9 2.17 0-3 Bicarbonate 3977 1640 . Calcium 96 247 200-400 Chloride 13400 12600 1 0000-19000 Iron <0.2 4.32 0-3 IiJj Magnesium 32 156 600-1300 .1{) "'" ~ z pH 7.5 6.9 6.8-6.9 z ~ m f":; Potassium ~ 1145 107 . cc:: ~:z ~ Sodium 9195 8080 5000-1 0500 ((;;"t,? f'j ~ Strontium 4.45 26.2 37294.00 c::;¡ cf~ Sulfate 49 560 1400-2800 ::t:t: Vt ) . . STATE OF ALASKA OIL AND GAS CONSERVATION COMMISSION BOREALIS POOL RULES/AIO May 2, 2002 9:00 AM NAME - AFFILIATION ADDRESS/PHONE NUMBER TESTIFY (Yes or No) (PLEASE PRINT) ? Q. 40}( J I ;(ð'k Î -~~; /~/ he U\." ) -( v - ß ¡¡O <';~ V - S- ) <-/ 3 Æ{l/~ WJ4 Rz; - 1/P ~ðð E. !?ðtf~ ,þ}'3 ~7¿;;b4- ~N AI S(.iA4. J,,.. - (j P , " j...YrJrtJ- fluT('/flrJt> a f I( F-MJK -P~M .,ßf 1¡ ~f Úfven y 1/ f:re.,( & Ie" ~ il Ie ,ScJfÍJ,. M~~~ ) I h'-¿Q-L/3¿'2 0 ð.. "V\ ~ " e:t'Z.. e.. Þ{. / s-" 4 - S.3 I 7 ß-vv.q S~: 1\ -- ß{J c:; 64- rsoc:¡ 5 ~~W.ll~;¡: --~~¿ ~:~ ~~~ .;f"'M\f: ~ ~y)ó(jL ç zfxt- 6" g71 ú )-<5 ;Uo NtJ IVo No . /]/,) no /1.)0 NO No ^,Â0 ND ,N 0 SCANNED JUN 2 S 200.4 ) . ) . ALASKA OIL AND GAS CONSERVATION COMMISSION ,. --..-..... ~ ~ ....--- ",-- \~ -/~ À-- /V \ £:-----~~ -- . ~ ~ ~ ~ ... ...." '-"<"-' J'1 '-8...:J '-J ~ ~... '-" '-'..... '-'.... ......,1E T?~7 fu-J-~/ ~LJ~ '\ -~:zr~~ V NAME (PLEASE PRINT) F,. ¿,,{ /f~ lL v .", I?Z¡ c- LJ ~ L'I¡JpA Hl{TCA-tJN-C &1'1 /1e~(/~ \- ~. 'If ,...)01 "L- '4? l4J / [a Vt..-s () "1 5-~íL H~ Do If} nJ S~c. ¡/I'~L 0 h v ~-\.~e <cA:o~s-k~ TcS>\V\. ~0~~ ßy \A~ $MA~-t\ 0 tJ- V\ )b?, :e T z.e- S c- (; -11/J-. - ¡Vt ~;¡j; rrx.J ¡]p þ? IS p-- /J~ AÐ(1~Í - ~CL AP DlJYDo6l~ Þ.()GC<=- . BP ß{/ !3P 'Ç"~ ~r ~. '''-. ì -', ¡ ~., þ...", . .... f ~,( --, r ;'¡ ..~.. ~\ q ~ 2.DD4 s<;ANNE\) JUr~ {.J 1/ /6L ') . . STATE OF ALASKA OIL AND GAS CONSERVATION COMMISSION BOREALIS POOL RULES/AREA INJECTION ORDER APRIL 11,20029:00 AM NAME - AFFILIATION ADDRESS/PHONE NUMBER TESTIFY (Yes or No) (pLEASE PRINT) Ph)lf' Cer Vef1 V ~. if) p qOû E &N;fr\ ßlve:) _L)l;4- 53õG ¡~-ð ~ I r0:",J:, Pc<<r,kvt4, -ßp If S6l(-~No¡ f~ s<-v-rr7i.dííí1~ ø(J acf-tfJl.e2 ~"5 !{V'ist81rzN.ej~()Y7 PNA- ð0{3MCrz~ ;;<fgv36~~ J1t) Nhrqare;r<s (,JðN, ~t-4oh;1 5301 c.sr, 5fA- 311~ NO J¿fr Fc,rr J &XOIJ/JIJ"'¡ ..?ch/CJ~ ~//c ¥C/O J6Lj-s'rI~ M J~S e. t:(;@ ~PJ &4 7Jð (} ~. zt~--t t~ '7 ;Jo 01 ~ / ß eJA~ /-( 'v- 1.5 P ~ 00 I€. ¡]-f. '5 °" ) ~ y- 5"') Y3 le: 5 r-t û. <1 e 0{)¡"fI( Cv",$ù"" A o(V~ (b (J 7 c:¡ 3.:- / 7- 7.& If .. 5J-¿LX-':b(>,J(¿.~ ~c.c 79~ -¡Gze/ ~ (f~L ~v-f¿ Ao~ C" L ( 9 '; '-'l~~2- ({ ß".", ~ I S- t-: ~~ ß P '1<'o~ ßQ...s-ø-", ç~Lj - So9.3 r'~.r 5CANNEC JUN 2 ~ 20D4 '. . STATE OF ALASKA OIL AND GAS CONSERVATION COMMISSION BOREALIS POOL RULES/AREA INJECTION ORDER APRIL 5, 2002 9:00 AM NAME - AFFILIATION ADDRESS/PHONE NUMBER TESTIFY (Yes or No) (PLEASE PRINT) ~t< fJ /fS f<:v;wJ 0/VLtu eo P66?J: J/"~'f 1 6'r,,,u,-e,..; /S'6r-5'7iJ PÁ/((/~ j A-/C-J k~ k )_c,c,-{,2~1 Ye~ .$ ¡V'ò ~ÇANNED JUN 2 9 2004 J. ,) . ALASKA OIL AND GAS CONSERVATION COMMISSION Date: (-:>-/OS! c) I Time C¡: JÖ " MEETING - Subject 'BJ-cfr-eaAJ~ NAME ~ AFFILIATION TELEPHONE (pLEASE PRINT) J-uA i €- l-t e.d'sSê~ d Cr~ß¿ /1 ~ at/! -<. tv,l!r' aa- $'0'"1 ßr~~S~',~\ 0 Cef ve~ (~..,k Vd~kv"-'\ :::r~<- ~~ - s+-€- v-<.- ~'-v t-e,s lqò -11-~j 7Y~-'/Z-S'ð 7f5-)-;J, -¿ ç ç bY $00,3 5'(;'4- ~3D¿ ~. b'1- 51'-1 c:¡ -'9 ~ -l-¿ 3Z;... "79 '~) -- /2, ~¿ Y SCJ1NNED JUN 2 !) 2DO~'~ :t:t:: ..þ.. 9am April 11 for Boreallis ~) . ) .- Subject: 9am April!! for Boreallis Date: Tue, 19 Mar 2002 10:45:18 -0900 From: Jane Williamson <Jane- Williamson@admin.state.ak.us> Organization: Alaska Oil & Gas Conservation Commission To: Camille 0 Taylor <cammy_taylor@admin.state.ak.us>, Daniel T Seamount JR <dan_seamount@admin.state.ak.us>, Jody J Colombie <jody - colombie@admin.state.ak.us> Talked with Borealis folks. Is 9am April 11 ok for continuation of the hearing? If so, Jody, could you please arrange. The April 5 meeting will just be opening/and continuation due to lack of quorem. Jane $Cd~NNED tJUN 2: ~ 2004 1 of 1 3/19/0211:31 AM [Fwd: Borealis SSSV] ) . ) . Subject: [Fwd: Borealis SSSV] Date: Mon, 04 Mar 2002 10:53:37 -0900 From: Jane Williamson <Jane - Williamson@admin.state.ak.us> Organization: Alaska Oil & Gas Conservation Commission To: Jody J Colombie <jody_colombie@admin.state.ak.us> Jody, Please file with the Pool Rules for Borealis in your desk. Jane L_..,........-...-...-....-...................,-......,............-.-....,......-.-.........;..,...................-.....-...,..-,...-.......-..-.--.-.,..-..-..-.-....,----...--...........--.-...-...........-....'..,-......,..........-.........-..-.-.......-.....,-............-.,-...........'-""'''''-''......................' Subject: Re: Borealis SSSV Date: Mon, 04 Mar 2002 10:40:39 -0900 From: Jane Williamson <Jane- Williamson@admin.state.ak.us> Organization: Alaska Oil & Gas Conservation Commission To: "Smith, Bruce W" <SmithBW@BP . com> cc: Camille 0 Taylor <cammy_taylor@admin.state.ak.us>, Daniel T Seamount JR <dan_seamount@admin.state.ak.us>, John D Hartz <jack_hartz@admin.state.ak.us>, Julie M Heusser <julie_heusser@admin.state.ak.us>, Winton GAubert <winton_aubert@admin.state.ak.us>, Thomas E Maunder <tom - maunder@admin.state.ak.us> Bruce, CO 98-A rules have been superseded by C0457, other than the definition of the pool which was renamed the Aurora Oil Pool. Borealis is outside the pool rules area defined in CO 457, and is subject to statewide regulations and not any pool rules. You are not required by these statewide regulations to have SSSV in the wells. Per your Borealis pool rules request, you have stated the following: "Subsurface safety valves (SSSV) will be installed on gas or miscible injectant (MI) injectors when in service. All well completions will be equipped with nipple profile at a depth just below the base permafrost, should the need arise to install a downhole flow control device or pressure operated safety vavles for future MI service or during maintenance operations." We are in technical agreement with this approach. > > Jane Williamson > AOGCC Reservoir Engineer > 793-1226 "Smith, Bruce W" wrote: > Jane, > >From review and new interpretation of the Orders present in the Aurora Pool > Rules (AOGCC Conservation Order 457), the Borealis Field appear to be > covered under Statewide Rules. BP has submitted Pool Rules for Borealis > which are consistent with CO 457, which will require; > Rule 3 (b) " ... a landing nipple at a depth below the permafrost, which is > suitable for the future installation of a downhole flow control device to > control subsurface flow." > SCANNED ~nJN 2 ~p 2004 lof2 3/4/02 1 :18 PM [Fwd: Borealis SSSV] ) . ) . > All wells drilled within the proposed Borealis Pool are equipped with these > nipples. Production wells in the Borealis field currently have SSSV > installed, it is requested to discontinue there use, and continued > installation of subsurface nipples placed below the base of the permafrost. > Under State Rules, proposed Borealis Pool Rules and Analog field Pool rules > from Aurora, Midnigh t Sun, Kuparuk River Uni t and Milne Poin t, these val ves > are not required to be used. Operationally these valves are causing > intermittent well shut-in's which are forcing Slickline interventions and > reduction of daily production. > I would like to me with you if you have any questions. > regards > Bruce > > > > > > > Bruce W. Smith BP Exploration (Alaska) Western New Developments PO Box 196612 MS 6-5 Anchorage AK 99519-6612 907-564-5093 Engineer SCANNED JUN 2 9 20D4 20f2 3/4/02 1:18 PM ::t:I:: w 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-02214027 F AOGCC R 333 W 7th Ave, Ste 100 0 Anchorage, AK 99501 M AGENCY CONTACT lody Colombie PHONE DATE OF A.O. March 1,2002 PCN ¿ Anchorage Daily News POBox 149001 Anchorage, AK 99514 (907) 793 -1 ?? 1 DATES ADVERTISEMENT REQUIRED: March 4, 2002 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRE1Y ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: Type of Advertisement X Legal D Display Account #STOF0330 Advertisement to be published was e-mailed D Classified DOther (Specify) SEE ATTACHED PUBLIC HEARING ';:¡,":~';,>,~~'¡~~fJ~êiJ~~~:t~,~~~~~~JJ~;" REF TYPE 1 VEN 2 ARD 3 4 NUMBER AOGCC, 333 W. 7th Ave., Suite 100 AnchoIëijJ;e, AK 99501 AMOUNT DATE TOTAL OF PAGE 1 OF ALL PAGES$ 2 PAGES COMMENTS 02910 FIN AMOUNT Sy CC PGM LC ACCT FY NMR DIST LlQ 01 02140100 73540 2 3 I 'REQUlSmONED ~ C~~"--~- . DI)'1SION APPROVft ~. L: l\ .. l~, ~r)Á~/ SCANNED JíN 2 9 2004 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 . AD# PO PRICE OTHER OTHER ACCOUNT PER DAY CHARGES CHARGES #2 GRAND TOTAL DATE 330053 03/05/2002 . ,~~l [) 'J.ll t $112.34 STOF0330 $112.34 $0.00 $0.00 $0.00 STATE OF ALASKA THIRD JUDICIAL DISTRICT Lorene SoHvan, being first duly sworn on oath deposes and says that she is an advertising representative of the Anchorage Daily News, a daily newspaper. That said newspaper has been approved by the Third Judicial Court, Anchorage, Alaska, and it now and has been published in the English language continually as a daily newspaper in Anchorage, Alaska, and it is now and during all saia time was printed in an office maintained at the aforesaid f'laceof publication of said newspaper. That the annexed. is a copy of an advertisement as it was puolished in regular issues (and not in supplemental form) of said newspaper on the above dates and that such newspaper was regularly distributed to its subscribers during all of said period. That the full amount of the fee charged for the foregoing publiq!tjon is not in excess of the rate charged private individu~ Signed d [ N:~;:~:~~~~~:~l~g AloSI(O OiLondGos .. ' , ConSerIt'Cltion'CÒn1mi$sjon' , .... Re:B.(re9Hs9Ú:~òèM,; prl!d~9~,E5~Y~iel(~'f'()ot . R Ulesond. AI'!!.olnieCtion ,.. "...,.,,:Order. .,. ..- BPFxpì~ratiÓn(AJa~k¡Ú Inc. -brtetterêjated'Føb: r: u,ary27, ,2002, c~a sa p,;; 1;>,/leqfqra{1 9teainlecc ,tlonorder:gll I'TÜles, ,:~~~~~p-~1~. .,., , ,~~~~t~': lively, to defiOe;and90v~ ern'de ye/qpm,e nfofthe BO':eallsOH'POOI;PÌ"Ud~ hoe BaYFiél-d,:onthe Nort~SlopeofÄlaska'-A ¡ .. portlopo,fthe.proposed !,!orealis' Po.oloreais sub'; lect to Conservation Qr- d~1'349A. . Assuch;-te\ii~ !ò,ontothe area. described In COnservation Ord'er 349A. hasbeellrequested bYBP., ',- ~~ Subscribed and 7~ore this date: Notary Public in and for the State of Alaska. Third Division. Anchorage, Alaska MY COMMISSION EXPIRES: ~ {-:;¡~ í:?Q' '/ ~::z~ ' U~ .:/ \\\l(fC({f((ft: \.\.\\ !»~\:'~~. ðl'~~ ~4:-°" -.w. 0 ..~~ ~ :..OTA~~:.~~ ~: -.. .:: - Þusa. . :::~ . .,.. ::: ':::.z . ~IV . .... -::. ~...tíf. --~: 19;:: - . . iV..~ ~ . ~ Q: 0 . . A. :\' ..., 00 ..o...V'~'\ /..1.1 ea...v:-,,' :lIJ)Ïr¡ffU'\" $0.00 $0.00 $0.00 $112.34 $0.00 $112.34 1~t~t'~~~9f~~~~~~:! , ~9Ør:d!flg,thl~OPPHÞQf¡oii )nO..I~ter ..thoP4~3()prnon !.......'..-.'.~. .,. 1>....1... r.......I.....t...'....5..'.....'...... ...2,.,...°,.'...'..0....'...,.2....,.............t..,...o.........,....,:...'.t.......:,h.'.....,..,.,e..,"....,.....',.. A,...........'.,'O.'......',.S..,....k.... .°..... ;c~~n"çQnservatjon :'7'. ,', n:n .J3;J3-West :!,thAy :Siiitéfoo; ,AI1Clio~o.ge,Alaska 99501. ,I.~ :Od,d Itlon, theComm ¡5- ,s'()n .')O~terytatjve'Y$et a ¡....".:,','p.. ..',U. ,....b"...,..,.'....l.'.C,..."..".,..,:.1'1.'. ....~.....a...:...r......'..',..n...... ,,',9......'.'..,..0.,.,.,:...n,....,'."".A...,..,.."P.,....".,...r.'....,.,i..'...,.5. '.'.. ¡;20~2oJ-~: !>Ocirriaf th~ 5JaskC!. 9.i,/a~q,~~s 'Con- s,erV~l'onComm'S$i'ônot .,j.3,¡3"~/,'M{.:e;st,"-l't,ji,,zA,i'e' '.,ft'i...-' I..'.:..':~, U..~....~y......:.. ';....O.'.~.'."..'....,.:,'.,'.'....~"... ~.e..."...5...:.-..~.>....i~,1.'.J.'.:...,:...'......~.è..A..~.t.....Íï.'-'.:.:.~.:,:.r.;....."....b..r,'...t..~.;. ;.. ~otlve y,sc hed tiled"hear- 'n~ be:held,bY.'f,iHng a \lVnttep:,'r~e,qUestWfth'- the I c~mm'ss,:on. .no.../at.erthan 4.30pmo,nMorèh19 .~()(}2.,.,.."...:" ,..'<","". ' I!fot~~~est f~u"a'heqrin~ ¡.'.... S.., "..°,.. '.t.....,.,.t. .' m'.. ..e, ..,',....Y......... :.J....i.,',I.e. d..,.,".','.t. 1'1 C.omrn:jssionWHF~òn~ slqerth.e issuanc~ Qfon' ¡'.,o.r...d,. e..r.,..'!'. ."..t. t,..h,',O..'..U. J,..;.,:.'O...,......',h.. e.:.o. ri.ng ..T.o I,eo~n )frthe Côm'nïis: ,s.' OR 'WIl,. ;h'o.ldl.he"fen ta- Ihv.e.,...h. e. a. r."o....g.".p..I.e. .Q...s.e... C....O....II. 793"1221: . .... ,.. '.. > ¡']t~b.7d~~6:;tk;so~,~:t~ .. Idlsobi !ity'who ínciY~ee~ I a specIal mOdification.in order to ,comment ,or to otten~ :!l1e pub! iCheoring Pleo~e'contàct Jody Co: lomble at 793-l221 before March 26,2001.' ' ~ÇANNED JUN 2 ~1 2004 . . Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: Borealis Oil Pool, Prudhoe Bay Field - Pool Rules and Area Injection Order BP Exploration (Alaska), Inc. by letter dated February 27, 2002, has applied for an area injection order and pool. rules under 20 AAC 25.460 and 20 AAC 25.520, respectively, to govern development of the Borealis Oil Pool, Prudhoe Bay Field, on the North Slope of Alaska. In addition, since a portion of the proposed Borealis Pool area is subject to existing Conservation Order 349A, the applicant has requested that the area described in Conservation Order 349A be revised to exclude the proposed Borealis Pool. A person may submit written comments regarding this application no later than 4:30 pm on April 5, 2002 to the Alaska Oil and Gas Conservation Commission at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. In addition, the Commission has tentatively set a public hearing on April. 5, 2002 at 9:00 am at the Alaska Oil and Gas Conservation Commission at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. A person may request that the tentatively scheduled hearing be held by filing a written request with the Commission no later than 4:30 pm on March 19,2002. If a request for a hearing is not timely filed, the Commission will consider the issuance of an order without a hearing. To learn if the Commission will hold the tentative hearing, please call 793-1221. 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 March 26, 2001. ÚJ~iDuU' ~-I Cammy déchsli Taylor ~ Chair Published March 4, 2002 ADN AO# 0211427 SCANNE[) î ft 20C1:1 Re: Ad Order ) . . Subject: Re: Ad Order Date: 01 Mar 2002 15:38:54 -0900 From: Lorene Solivan <lsolivan@adn.com> To: Jody Colombie <jody - colombie@admin.state.ak.us> Jody, Since your ad carne over after our Friday deadline, (12: NOON), it will not publish in Mondays paper. If it's ok, it can start on Tuesda Deadlines Mon-Thurs: 2:PM for any ad that you want published the following day 12:00 Noon, for any ad that you want published Saturday, Sunday, or Monday Friday: Thanks, Lorene 257-4296 On Friday, March 1, 2002, Jody Colombie <jody_colombie@adrnin.state.ak.us> wrote: >Lorene: > >Please publish the attached legal notice on 3-4-02. E-mail >confirma tion >of receipt. > >Jody > ~~r'A' ~¡~ur:.:¡r; J~.J.N ~ ffJ..' 2DDh ~\itw1 ð '\!,ð '~~~ "~~ IJ, ~t f).¡f . ,,' ' <, 1 of 1 3/1/023:56 PM STATE OF ALASKA ADVERTISING ORDER ) .. NOTICE TO PUBLISHER. INVOI~UST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COpy OF ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE ADVERTISING ORDER NO. AO-02214027 F AOGCC R 333 West ih Avenue, Suite 100 0 Anchorage,AJe 99501 M ¿ Anchorage Daily News POBox 149001 Anchorage, AJe 99514 AGENCY CONTACT Jociy Colombie PHONE (907) 793 -1 7?1 DATES ADVERTISEMENT REQUIRED: March 4, 2002 DATE OF A.O. Mflrch 1, ?OO? PCN THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: Account #STOF0330 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 2002, and thereafter for - consecutive days, the last publication appearing on the ----.:. day of . 2002, and that the rate charged thereon is not in excess of the rate charged private individuals. Subscribed and sworn to before me This - day of 2002, Notary public for state of My commission expires 02-901 (Rev. 3/94) Page 2 SCl\NNEC 2 9 20011 AO.FRM PUBLISHER NY PUBLIC LIBRARY DIV E, GRAND CENTRAL STATION POBOX 2221 NEW YORK, NY 10163-2221 US MIN MGMT SERV, CHIEF OCS STATS & INFO 381 ELDEN ST MS 4022 HERNDON, VA 20170-4817 TECHSYS CORP, BRANDY KERNS PO BOX 8485 GA THERSBURG, MD 20898 SD DEPT OF ENV & NA TRL RESOURCES, OIL & GAS PROGRAM 2050 W MAIN STE #1 RAPID CITY, SD 57702 LINDA HALL LIBRARY, SERIALS DEPT 5109 CHERRY ST KANSAS CITY, MO 64110-2498 IOGCC, PO BOX 53127 OKLAHOMA CITY, OK 73152-3127 BAPI RAJU 335 PINYON LN COPPELL, TX 75019 STANDARD AMERICAN OIL CO, AL GRIFFITH PO BOX 370 GRANBURY, TX 76048 H J GRUY, ROBERT RASOR 333 CLAY STREET SUITE 3850 HOUSTON, TX 77002 CHEVRON, PAUL WALKER 1301 MCKINNEY RM 1750 HOUSTON, TX 77010 ). . OFFICE OF THE GOVERNOR, JOHN KATZ STE 518 444 N CAPITOL NW WASHINGTON, DC 20001 ARENT FOX KINTNER PLOTKIN KAHN, LIBRARY WASHINGTON SQ BLDG 1050 CONNECTICUT A V NW WASHINGTON, DC 20036-5339 LIBRARY OF CONGRESS, STATE DOCUMENT SECTION EXCH & GIFT DIV 10 FIRST ST SE WASHINGTON, DC 20540 U S DEPT OF ENERGY, PHYLLIS MARTIN MS EI823 1000 INDEPENDENCE SW WASHINGTON, DC 20585 US GEOLOGICAL SURVEY, LIBRARY NATIONAL CTR MS 950 RESTON, VA 22092 DPC, DANIEL DONKEL 2121 NORTH BAYSHORE DR #616 MIAMI, FL 33137 AMOCO CORP 2002A, LIBRARY/INFO CTR POBOX 87703 CHICAGO, IL 60680-0703 ILLINOIS STATE GEOL SURV, LIBRARY 469 NATURAL RESOURCES BLDG 615 E PEABODY DR CHAMPAIGN, IL 61820 ALFRED JAMES III 107 N MARKET STE 1000 WICHITA, KS 67202-1811 UNIV OF ARKANSAS, SERIALS DEPT UNIV LIBRARIES FAYETTEVILLE, AR 72701 R E MCMILLEN CONSULT GEOL 202 E 16TH ST OWASSO, OK 74055-4905 OIL & GAS JOURNAL, LAURA BELL POBOX 1260 TULSA, OK 74101 US DEPT OF ENERGY, ENERGY INFORMATION ADMINISTRATION MIR YOUSUFUDDIN 1999 BRYAN STREET STE 1110 DALLAS, TX 75201-6801 DEGOL YER & MACNAUGHTON, MIDCONTINENT DIVISION ONE ENERGY SQ, STE 400 4925 GREENVILLE AVE DALLAS, TX 75206-4083 XTO ENERGY, MARY JONES 810 HOUSTON ST STE 2000 FORT WORTH, TX 76102-6298 SHELL WESTERN E&P INC, G.S. NADY POBOX 576 HOUSTON, TX 77001-0574 PURVIN & GERTZ INC, LIBRARY 2150 TEXAS COMMERCE TWR 600 TRAVIS ST HOUSTON, TX 77002-2979 RAY TYSON 2016 MAIN #1415 HOUSTON, TX 77002-8844 OIL & GAS JOURNAL, PETRAL CONSULTING CO, BOB WILLIAMS DANIEL L LIPPE 1700 W LOOP SOUTH STE 1000 9800 RICHMOND STE 505 HOUSTON, TX 77027 HOUSTON, TX 77042 I ~F ~¡e""" qUN~ ~ f', 20D4 SC;~g~~~¡;~ ~ì~. ,~ {oJ ~ AURORA GAS, G. SCOTT PFOFF 10333 RICHMOND AVENUE, STE 710 HOUSTON, TX 77042 MARATHON OIL CO, GEORGE ROTHSCHILD JR RM 2537 POBOX 4813 HOUSTON, TX 77210 EXXON EXPLOR CO, LAND/REGULATORY AFFAIRS RM 301 POBOX 4778 HOUSTON, TX 77210-4778 PETR INFO, DAVID PHILLIPS POBOX 1702 HOUSTON, TX 77251-1702 EXXONMOBIL PRODUCTION COMPANY, GARY M ROBERTS RM 3039 POBOX 2180 HOUSTON, TX 77252-2180 CHEVRON CHEM CO, LIBRARY & INFO CTR POBOX 2100 HOUSTON, TX 77252-9987 WATTY STRICKLAND 2803 SANCTUARY CV KA TV, TX 77450-8510 INTL OIL SCOUTS, MASON MAP SERV INC PO BOX 338 AUSTIN, TX 78767 ROBERT G GRAVELY 7681 S KIT CARSON DR LITTLETON, CO 80122 EVERGREEN WELL SERVICE CO., JOHN TAN lGAWA 1401 17TH ST STE 1200 DENVER, CO 80202 ') . GAFFNEY, CLINE & ASSOC., INC., LIBRARY 1360 POST OAK BLVD., STE 2500 HOUSTON, TX 77056 UNOCAL, REVENUE ACCOUNTING POBOX 4531 HOUSTON, TX 77210-4531 TEXACO EXPLORATION & PRODUCTION INC, CORRY WOOLlNGTON PO BOX 36366 HOUSTON, TX 77236 PHILLIPS PETROLEUM COMPANY, W ALLEN HUCKABAY PO BOX 1967 HOUSTON, TX 77251-1967 EXXONMOBIL PRODUCTION COMPANY, J W KIKER ROOM 2086 POBOX 2180 HOUSTON, TX 77252-2180 MARATHON, Ms. Norma L. Calvert POBOX 3128, Ste 3915 HOUSTON, TX 77253-3128 TESORO PETR CORP, LOIS DOWNS 300 CONCORD PLAZA DRIVE SAN ANTONIO, TX 78216-6999 XTO ENERGY, DOUG SCHULTZE 3000 N GARFIELD SUITE 175 MIDLAND, TX 79705 DIANE SUCHOMEL 10507D W MAPLEWOOD DR LITTLETON, CO 80127 US GEOLOGICAL SURVEY, LIBRARY BOX 25046 MS 914 DENVER, CO 80225-0046 ) . MARK ALEXANDER 7502 ALCOMITA HOUSTON, TX 77083 I EXXON EXPLORATION CO., T E ALFORD POBOX 4778 HOUSTON, TX 77210-4778 CHEVRON USA INC., ALASKA DIVISION A TTN: CORRY WOOllNGTON POBOX 1635 HOUSTON, TX 77251 WORLD OIL, DONNA WILLIAMS POBOX 2608 HOUSTON, TX 77252 PENNZOIL E&P, WILL D MCCROCKLIN POBOX 2967 HOUSTON, TX 77252-2967 / ACE PETROLEUM COMPANY, ANDREW C CLIFFORD PO BOX 79593 HOUSTON, TX 77279-9593 JIM WHITE 4614 BOHILL SAN ANTONIO, TX 78217 BABCOCK & BROWN ENERGY, INC., 350 INTERLOCKEN BLVD STE 290 BROOMFIELD, CO 80021 GEORGE G VAUGHT JR POBOX 13557 DENVER, CO 80201 C & R INDUSTRIES, INC." KURT SAL TSGAVER 7500 W MISSISSIPPI AVE STE C4 LAKEWOOD, CO 80226-4541 2 9 20D4 JERRY HODGDEN GEOL 408 18TH ST GOLDEN, CO 80401 JOHN A LEVORSEN 200 N 3RD ST #1202 BOISE, ID 83702 MUNGER OIL INFOR SERV INC, POBOX 45738 LOS ANGELES, CA 90045-0738 ORO NEGRO, INC., 9321 MELVIN AVE NORTHRIDGE, CA 91324-2410 H L WANGENHEIM 5430 SAWMILL RD SP 11 PARADISE, CA 95969-5969 MARPLES BUSINESS NEWSLETTER, MICHAEL J PARKS 117 W MERCER ST STE 200 SEATTLE, WA 98119-3960 DUSTY RHODES 229 WHITNEY RD ANCHORAGE, AK 99501 DEPT OF ENVIRON CONSERVATION, DIV OF AIR & WATER QUALITY TOM CHAPPLE 555 CORDOVA STREET ANCHORAGE, AK 99501 AURORA GAS, J. EDWARD JONES 1029 W 3RD AVE, STE 220 ANCHORAGE, AK 99501 FOREST OIL, JIM ARLINGTON 310 K STREET STE 700 ANCHORAGE, AK 99501 ). NRG ASSOC, RICHARD NEHRING POBOX 1655 COLORADO SPRINGS, CO 80901- 1655 T AHOMA RESOURCES, GARY PLAYER 1671 WEST 546 S CEDER CITY, UT 84720 BABSON & SHEPPARD, JOHN F BERGQUIST POBOX 8279 VIKING STN LONG BEACH, CA 90808-0279 US GEOLOGICAL SURVEY, KEN BIRD 345 MIDDLEFIELD RD MS 999 MENLO PARK, CA 94025 ECONOMIC INSIGHT INC, SAM VAN VACTOR PO BOX 683 PORTLAND, OR 97207 TRUSTEES FOR ALASKA, 1026 W. 4th Ave, Ste 201 ANCHORAGE, AK 99501 GUESS & RUDD, GEORGE LYLE 510 L ST, STE 700 ANCHORAGE, AK 99501 STATE PIPELINE OFFICE, LIBRARY KATE MUNSON 411 W 4TH AVE, STE 2 ANCHORAGE, AK 99501 DEPT OF ENVIRON CONSERVATION, DIV OF ENVIRONMENTAL HEALTH JANICE ADAIR 555 CORDOVA STREET ANCHORAGE, AK 99501 PRESTON GATES ELLIS LLP, LIBRARY 420 L ST STE 400 ANCHORAGE, AK 99501-1937 ) . RUBICON PETROLEUM, LLC, BRUCE I CLARDY SIX PINE ROAD COLORADO SPRINGS, CO 80906 US GEOLOGICAL SURVEY, LIBRARY 2255 N GEMINI DR FLAGSTAFF, AZ 86001-1698 ANTONIO MADRID POBOX 94625 PASADENA, CA 91109 SHIELDS LIBRARY, GOVT DOCS DEPT UNIV OF CALIF DAVIS, CA 95616 US EPA REGION 10, THOR CUTLER OW-137 1200 SIXTH AVE SEATTLE, WA 98101 DEPT OF REVENUE, OIL & GAS AUDIT DENISE HAWES 550 W 7TH A V STE 570 ANCHORAGE, AK99501 DEPT OF REVENUE, BEVERLY MARQUART 550 W 7TH A V STE 570 ANCHORAGE, AK 99501 DEPT OF REVENUE, CHUCK LOGSTON 550 W 7TH AVE, SUITE 500 ANCHORAGE, AK 99501 DEPT OF REVENUE, DAN DICKINSON, DIRECTOR 550 W 7TH AVE, SUITE 500 ANCHORAGE, AK 99501 ALASKA DEPT OF LAW, ROBERT E MINTZ ASST ATTY GEN 1031 W 4TH AV STE 200 ANCHORAGE, AK 99501-1994 'Ji (> 2rl {~~ ,;¡ - L! GAFO,GREENPEACE PAMELA MILLER 125 CHRISTENSEN DR. #2 ANCHORAGE, AK 99501-2101 DEPT OF NATURAL RESOURCES, DIV OF OIL & GAS BRUCE WEBB 550 W 7TH AVE, SUITE 800 ANCHORAGE, AK 99501-3560 DEPT OF NATURAL RESOURCES, PUBLIC INFORMATION CTR 550 W 7TH AVE, SUITE 800 ANCHORAGE, AK 99501-3560 ALASKA JOURNAL OF COMMERCE, ED BENNETT 2000 INTL AIRPORT W #A10 ANCHORAGE, AK 99502 N-I TUBULARS INC, 3301 C Street Ste 209 ANCHORAGE, AK 99503 YUKON PACIFIC CORP, 1400 W BENSON BLVD STE 525 ANCHORAGE, AK 99503 ANADRILL-SCHLUMBERGER, 3940 ARCTIC BLVD #300 ANCHORAGE, AK 99503-5711 . JAMES E EASON 8611 LEEPER CIRCLE ANCHORAGE, AK 99504-4209 AMERICA/CANADIAN STRATIGRPH CO, RON BROCKWAY 4800 KUPREANOF ANCHORAGE, AK 99507 THOMAS R MARSHALL JR 1569 BIRCHWOOD ST ANCHORAGE, AK 99508 ). DEPT OF NATURAL RESOURCES, DIV OF OIL & GAS TIM RYHERD 550 W 7th AVE STE 800 ANCHORAGE, AK 99501-3510 DEPT OF NATURAL RESOURCES, DIV OIL & GAS WILLIAM VAN DYKE 550 W 7TH AVE, SUITE 800 ANCHORAGE, AK 99501-3560 DEPT OF NATURAL RESOURCES, DIV OF OIL & GAS JULIE HOULE 550 W 7TH AVE, SUITE 800 ANCHORAGE, AK 99501-3560 AK JOURNAL OF COMMERCE, OIL & INDUSTRY NEWS ROSE RAGSDALE 2000 INTL AIRPORT RD W #A 10 ANCHORAGE, AK 99502 HDR ALASKA INC, MARK DALTON 2525 C ST STE 305 ANCHORAGE, AK 99503 ANADARKO, MARK HANLEY 3201 C STREET STE 603 ANCHORAGE, AK 99503 FINK ENVIRONMENTAL CONSULTING, INC., THOMAS FINK, PHD 6359 COLGATE DR. ANCHORAGE, AK 99504-3305 US BUREAU OF LAND MNGMNT, ANCHORAGE DIST OFC DICK FOLAND 6881 ABBOTT LOOP RD ANCHORAGE, AK 99507 BUREAU OF LAND MANAGEMENT, GREG NOBLE ~1ABBOTTLOOPROAD ANCHORAGE, AK 99507 UOAl ANCHORAGE, INST OF SOCIAL & ECON RESEARCH TERESA HULL 3211 PROVIDENCE DR ANCHORAGE, AK 99508 ) . DEPT OF REVENUE, OIL & GAS AUDIT FRANK PARR 550 W 7TH AVE STE 570 ANCHORAGE, AK 99501-3540 DEPT OF NATURAL RESOURCES, DIV OF OIL & GAS JIM STOUFFER 550 W 7TH AVE, SUITE 800 ANCHORAGE, AK 99501-3560 DNR, DIV OF OIL & GAS JAMES B HAYNES NATURAL RESRCE MGR 550 W 7TH AVE, SUITE 800 ANCHORAGE, AK 99501-3560 BRISTOL ENVIR AND ENG SERVICE, MIKE TORPY 2000 W. INT'L AIRPORT RD #C-1 ANCHORAGE, AK 99502-1116 BAKER OIL TOOLS, ALASKA AREA MGR 4710 BUS PK BLVD STE 36 ANCHORAGE, AK 99503 ALASKA OIL & GAS ASSOC, JUDY BRADY 121 W FIREWEED LN STE 207 ANCHORAGE, AK 99503-2035 ARLEN EHM GEOL CONSL TNT 2420 FOXHALL DR ANCHORAGE, AK 99504-3342 US BUREAU OF LAND MNGMNT, ANCHORAGE DIST OFC PETER J DITTON 6881 ABBOTT LOOP ROAD ANCHORAGE, AK 99507 US BLM AK DIST OFC, GEOLOGIST ARTHUR BANET 949 EAST 36TH AVE STE 308 ANCHORAGE, AK 99508 VECO ALASKA INC., CHUCK O'DONNELL 949 EAST 36TH AVENUE ANCHORAGE, AK 99508 ~Cf\NNE[:: JUN 2 9 200~~ ). TRADING BAY ENERGY CORP, PAUL CRAIG 5432 NORTHERN LIGHTS BLVD ANCHORAGE, AK 99508 US MIN MGMT SERV, RICHARD PRENTKI 949 E 36TH AV ANCHORAGE, AK 99508-4302 US MIN MGMT SERV, LIBRARY 949 E 36TH A V RM 603 ANCHORAGE, AK 99508-4363 JOHN MILLER 3445 FORDHAM DR ANCHORAGE, AK 99508-4555 PHILLIPS ALASKA, LAND MANAGER JIM RUUD P.O. BOX 100360 ANCHORAGE, AK 99510 PHILLIPS ALASKA, LAND DEPT JAMES WINEGARNER POBOX 10036 ANCHORAGE, AK 99510-0360 PHILLIPS ALASKA, JOANN GRUBER ATO 712 POBOX 100360 ANCHORAGE, AK 99510-0360 AL YESKA PIPELINE SERV CO, PERRY A MARKLEY 1835 S BRAGAW - MS 575 ANCHORAGE, AK 99512 DAVID W. JOHNSTON 320 MARINER DR. ANCHORAGE, AK 99515 GERALD GANOPOLE CONSULT GEOL 2536 ARLINGTON ANCHORAGE, AK 99517-1303 US MIN MGMT SERV, RESOURCE STUDIES AK OCS REGN KIRK W SHERWOOD 949 E 36TH A V RM 603 ANCHORAGE, AK 99508-4302 GORDONJ.SEVERSON 3201 WESTMAR CIR ANCHORAGE, AK 99508-4336 US MIN MGMT SERV, FRANK MILLER 949 E 36TH A V STE 603 ANCHORAGE, AK 99508-4363 USGS - ALASKA SECTION, LIBRARY 4200 UNIVERSITY DR ANCHORAGE, AK 99508-4667 ANCHORAGE TIMES, BERT TARRANT POBOX 100040 ANCHORAGE, AK 99510-0040 PHILLIPS ALASKA, STEVE BENZLER ATO 1404 POBOX 100360 ANCHORAGE, AK 99510-0360 PETROLEUM INFO CORP, KRISTEN NELSON POBOX 102278 ANCHORAGE, AK 99510-2278 AL YESKA PIPELINE SERV CO, LEGAL DEPT 1835 S BRAGAW ANCHORAGE, AK 99512-0099 JWL ENGINEERING, JEFF LIPSCOMB 9921 MAIN TREE DR. ANCHORAGE, AK 99516-6510 DAVID CUSATO 600 W 76TH A V #508 ANCHORAGE, AK 99518 ) . US MIN MGMT SERV, AK OCS REGIONAL DIR 949 E 36TH AV RM 110 ANCHORAGE, AK 99508-4302 US MIN MGMT SERV, RESOURCE EVAL JIM SCHERR 949 E 36TH A V RM 603 ANCHORAGE, AK 99508-4363 REGIONAL SUPRVISOR, FIELD OPERATNS, MMS ALASKA OCS REGION 949 E 36TH A V STE 308 ANCHORAGE, AK 99508-4363 CIRI, LAND DEPT POBOX 93330 ANCHORAGE, AK 99509-3330 PHILLIPS ALASKA, MARK MAJOR A TO 1968 POBOX 100360 ANCHORAGE, AK 99510-0360 PHILLIPS ALASKA, LEGAL DEPT MARK P WORCESTER POBOX 100360 ANCHORAGE, AK 99510-0360 PHILLIPS ALASKA, KUP CENTRAL WELLS ST TSTNG WELL ENG TECH NSK 69 POBOX 196105 ANCHORAGE, AK 99510-6105 ANCHORAGE DAILY NEWS, EDITORIAL PG EDTR MICHAEL CAREY POBOX 149001 ANCHORAGE, AK 99514 NORTHERN CONSULTING GROUP, ROBERT BRITCH, P.E. 2454 TELEQUANA DR. ANCHORAGE, AK 99517 ARMAND SPIELMAN 651 HILANDER CIRCLE ANCHORAGE, AK 99518 ~JUN 2 ~ 2D 04. ASRC, CONRAD BAGNE 301 ARCTIC SLOPE A V STE 300 ANCHORAGE,AK 99518 OPSTAD & ASSOC, ERIK A OPSTAD PROF GEOL POBOX 190754 ANCHORAGE, AK 99519 MARATHON OIL CO, OPERATIONS SUPT W.C. BARRON POBOX 196168 ANCHORAGE, AK 99519-6168 UNOCAL, KEVIN TABLER POBOX 196247 ANCHORAGE, AK 99519-6247 BP EXPLORATION (ALASKA) INC, PETE ZSELECZKY LAND MGR POBOX 196612 ANCHORAGE, AK 99519-6612 BP EXPLORATION (ALASKA) INC, SUE MILLER POBOX 196612 M/S LR2-3 ANCHORAGE, AK 99519-6612 L G POST O&G LAND MGMT CONSULT 10510 Constitution Circle EAGLE RIVER, AK 99577 DEPT OF NATURAL RESOURCES, DGGS JOHN REEDER POBOX 772805 EAGLE RIVER, AK 99577-2805 PHILLIPS PETROLEUM CO, ALASKA OPERATIONS MANAGER J W KONST P 0 DRAWER 66 KENAI, AK 99611 NANCY LORD PO BOX 558 HOMER, AK 99623 . HALLIBURTON ENERGY SERV, MARK WEDMAN 6900 ARCTIC BLVD ANCHORAGE, AK 99518-2146 JACK 0 HAKKILA POBOX 190083 ANCHORAGE, AK 99519-0083 MARATHON OIL CO, LAND BROCK RIDDLE POBOX 196168 ANCHORAGE, AK 99519-6168 EXXONMOBIL PRODUCTION COMPANY, MARK P EVANS PO BOX 196601 ANCHORAGE, AK 99519-6601 BP EXPLORATION (ALASKA) INC, INFO RESOURCE CTR MB 3-2 POBOX 196612 ANCHORAGE, AK 99519-6612 AMSINALLEE CO INC, WILLIAM 0 VALLEE PRES PO BOX 243086 ANCHORAGE, AK 99524-3086 PINNACLE, STEVE TYLER 20231 REVERE CIRCLE EAGLE RIVER, AK 99577 COOK INLET KEEPER, BOB SHA VELSON PO BOX 3269 HOMER, AK 99603 DOCUMENT SERVICE CO, JOHN PARKER POBOX 1468 KENAI, AK 99611-1468 PENNY VADLA PO BOX 467 NINILCHIK, AK 99639 . TESORO ALASKA COMPANY, PO BOX 196272 ANCHORAGE, AK 99519 ENSTAR NATURAL GAS CO, PRESIDENT TONY IZZO POBOX 190288 ANCHORAGE, AK 99519-0288 UNOCAL, POBOX 196247 ANCHORAGE, AK 99519-6247 BP EXPLORATION (ALASKA), INC., MARK BERLINGER MB 8-1 PO BOX 196612 ANCHORAGE, AK 99519-6612 BP EXPLORATION (ALASKA)INC, MR. DAVIS, ESQ POBOX 196612 MB 13-5 ANCHORAGE, AK99519-6612 D A PLA TI & ASSOC, 9852 LlTILE DIOMEDE CIR EAGLE RIVER, AK 99577 JAMES RODERICK PO BOX 770471 EAGLE RIVER, AK 99577-0471 RON DOLCH OK POBOX 83 KENAI, AK 99611 KENAI PENINSULA BOROUGH, ECONOMIC DEVEL DISTR STAN STEADMAN POBOX 3029 KENAI, AK 99611-3029 BELOWICH, MICHAEL A BELOWICH 1125 SNOW HILL AVE WASILLA, AK 99654-5751 '''''.t"' JU' N 9 Q ')OOl~ II:'C. f!. M." ~+.tt,-.) " .-. (,:' .i L. ,", ~ g.t~~r ~!:.""--" \. ' PACE, SHEILA DICKSON POBOX 2018 SOLDOTNA, AK 99669 VALDEZ PIONEER, PO BOX 367 VALDEZ,AK 99686 UNIV OF ALASKA FAIRBANKS, PETR DEVEL LAB DR V A KAMATH 427 DUCKERING FAIRBANKS, AK 99701 RICK WAGNER POBOX 60868 FAIRBANKS, AK 99706 DEPT OF NATURAL RESOURCES, DIV OF LAND REG MGR NORTHERN REGION 3700 AIRPORT WAY FAIRBANKS, AK 99709-4699 RICHARD FINEBERG PO BOX 416 ESTER, AK 99725 SENATOR LOREN LEMAN STATE CAPITOL RM 113 JUNEAU, AK 99801-1182 . JAMES GIBBS POBOX 1597 SOLDOTNA, AK 99669 AL YESKA PIPELINE SERVICE CO, VALDEZ CORP AFFAIRS SANDY MCCLINTOCK POBOX 300 MS1701 VALDEZ, AK 99686 NICK STEPOVICH 543 2ND AVE FAIRBANKS, AK 99701 FAIRBANKS DAILY NEWS-MINER, KATE RIPLEY POBOX 70710 FAIRBANKS, AK 99707 K&K RECYCL INC, POBOX 58055 FAIRBANKS, AK 99711 UNIV OF ALASKA FBX, PETR DEVEL LAB SHIRISH PATIL 437 DICKERING FAIRBANKS, AK 99775 DEPT OF ENVIRON CONSERV SPAR, CHRIS PACE 410 WILLOUGHBY AV STE 105 JUNEAU, AK 99801-1795 . KENAI NATL WILDLIFE REFUGE, REFUGE MGR POBOX 2139 SOLDOTNA, AK 99669-2139 VALDEZ VANGUARD, EDITOR POBOX 98 VALDEZ, AK 99686-0098 COOK AND HAUGEBERG, JAMES DIERINGER, JR. 119 NORTH CUSHMAN, STE 300 FAIRBANKS, AK 99701 C BURGLlN POBOX131 FAIRBANKS, AK 99707 ASRC, BILL THOMAS POBOX 129 BARROW, AK 99723 UNIVERSITY OF ALASKA FBKS, PETR DEVEL LAB DR AKANNILAWAL POBOX 755880 FAIRBANKS, AK 99775-5880 "" " ,""¡.¡. ":" 'r"''i~" .UN"~? C\ 200 ~ SC~\rijNt:.L'" J ," i;.,J :;; -- 'T ::f:t:: N i \ BP Exploration (Ala~"'dlln. 900 East Benson Boulevard' Post Office Box 196612 Anchorage, Alaska 99519-6612 Telephone (907) 564 5111 . bp I February 27,2002 DELIVERED BY HAND Z8. F~t.} r I I Commissioners Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 RE: Borealis Pool Rules And Area Injection Order Application Dear Commissioners: I I. I I Enclosed is the submission of Pool Rules and Area Injection Order Application for the Borealis Oil Pool. We look forward to discussing this with you further. BP Exploration (Alaska) Inc., in its capacity as Borealis Operator and Unit Operator, respectfully requests that a hearing commence as early as possible in order to gain approval of an Area Injection Order. Facilities to begin water flood operations are expected to be available in March 2002. BP requests, as operator, that those certain exhibits labeled "CONFIDENTIAL" be treated as confidential in accordance with the provisions of AS 31.05.035 and 20 AAC 25.537. Please contact me (564-5143) or Frank Paskvan (564-5749) if you have any questions or comments regarding this request. Sincerely, RECE\VED ~~~ I I I I I I Gil Beuhler GPB Satellites Team Leader FES 2 8 ZOOZ Alaska Oil &. Gas CÛl1S. commission Anchorage Attachments CC: R. Smith (BP) J. P. Johnson (PAl) S. Wright (ChevronTexaco) M. M. Vela (ExxonMobil) P. White (Forest Oil) fUN'» ()..; 20[!l~ v (~~1 .JI r ) Borealis Pool Rules and Ar~ Inje8brðer Application ) . February 27. 2002 I Borealis Pool Rules Area Injection Order , Application I t I I I I I February 27, 2002 1/38 ,¡UN ? ~ ?nn'1 I, Borealis Pool Rules and llnj. Order Application . February 27, 2002 ", I Table of Contents I. Geo logy. . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 3 I Introduction .......................................... .................................................... ....................... 3 Stratigraphy............. .....'......... .......................................... ................ ....................... .........4 Ku paruk F ormati on Structure.......................................................................................... 7 Fluid Contacts ........................................................................................................... ...... 8 Pool Limits......... ................ ....... ........... ......... ................. ............... ........... ......... .............. 9 II. Reservoir Description and Development Planning .....11 Rock and. Fluid Properties. ......... ................ ................................................................... 11 Hydrocarbons in Place.................................................................................. ........... ..... 13 Reservoir Performance.................................................................................................. 13 Development Planning ..... ........ ........... ....... ............. ........... ........... ........ ............... ......... 14 Development Options............................................................................... ..................... 15 Development Plan..... ....... ...... ................... ..................... ...... .................... .... ..... ............ 16 Reservoir Management Strategy................................................................................... 17 III. F acili ti es .................................................................... 18 I General Overview......................................................................................................... 18 Drill Pads and Roads.. ............ .......... .............. ............................................................... 18 Pad Facilities and Operations........................................................................................ 19 Gathering Center ................... .................. ................................................. ................. .... 19 IV . Well Operations......................................................... 21 Drilling and Well Design................................................ ....................................... ....... 21 Reservoir Surveillance Program................................................................... ....... .......... 26 V. Production Allocation.... ............................................. 27 VI. Area Injection Operations .........................................28 VII. Proposed Borealis Pool Rules .................................. 33 VIII. Proposed Area Injection Order ............................... 36 IX. List of Exhibits .......................................................... 38 I I / I I I I I I 2/38 I c'~ ."" 200 î JUN t.. ~ JL¡ I I, I ') Borealis Pool Rules and Area Inj8 Order Application ). February 27, 2002 I. Geology Introduction The area for which the Borealis Pool Rules are proposed is located on Alaska's North Slope, as illustrated in Exhibit I-I. The reservoir interval for the Borealis Pool is the Kuparuk River Formation. The Kuparuk River Formation within this area has substantial t I I I I I I I I t I I I I I geological similarities, and common drilling and reservoir development issues. Hereafter, this application will refer to the Borealis Pool to include all the hydrocarbon bearing sands within the Kuparuk River Formation within the described area. The Borealis Pool was discovered in 1969 by the West Kuparuk State #1 well (also identified as the W Kup 3-11-11) that logged and tested hydrocarbons in the Borealis Pool. The Borealis Pool overlies the Prudhoe Bay Unit (PBU) Sadlerochit Group reservoirs in the vicinity of L and V Pads. As shown in Exhibit 1-2, the top of the Borealis structure crests at 6200' true vertical depth subsea (tvdss). The deepest interpreted oil-water contact (OWC) is at 6725' (tvdss) in the V-100 well. Two dedicated appraisal wells, the L-l 00 (originally designated as NWE 1-01 a), and L-101 (originally designated as NWE 1-02), both drilled in 1998, defined contacts along the western and central portions of the Borealis Pool. The V -100 well and the L-116, L-II0, L-114, L-107, L-117i and L-115i wells are more recent Kuparuk River Formation penetrations in this area. A number of PBU Sag River/Ivishak development wells also penetrated the overlying Kuparuk River Formation. Exhibits 1-3A and 1-3B show the location of the proposed area for the Borealis Pool Rules and the Borealis Participating Area (BPA), respectively. As noted above, the proposed Borealis Pool area is intended to encompass any area within the far western part of the Prudhoe Bay Unit with Kuparuk sands development potential. A portion of the proposed Borealis Pool Rules area is currently subject to Conservation Order 98-A and a portion is subject to Conservation Order No. 349A. It will be necessary to remove the area encompassed by the Borealis Pool from the affected areas of these two orders. With regard Conservation Order 98-A, the Borealis Owners support its repeal. The geographic scope of that order has been progressively diminished over the 3/38 ') 0 2GDi1 !,'~ f'tß- I I I I I I I I, , I I I I I I I; I I í ) Borealis Pool Rules and Area Inje80rder Application . February 27, 2002 31 years since it was issued and statewide rules provide appropriately for anyfuture wells in the area. Stratigraphy The productive interval of the Borealis Pool is the Kuparuk River Formation, informally referred to as the Kuparuk Formation. This formation was deposited during the Early Cretaceous geologic time period, between 120 and 145 million years before present. Exhibit 1-4 shows a portion of the open-hole wire line logs from the West Kuparuk State #1 well. This type log illustrates the stratigraphic definition of the Borealis Pool. The log is scaled in true vertical depth subsea and also has a measured depth (md) track. In the West Kuparuk State #1 well, the top of the Kuparuk Formation occurs at 6466' tvdss (6534' md) and the base occurs at6882' tvdss (6952' md). The Kuparuk Formation was deposited as mid to lower marine shoreface sediments, and is composed of very fine to medium grained quartz-rich sandstone, which is interbedded with siltstone and mudstone. The sandstones typically have higher resistivity (5-50 ohm-meters) than the surrounding lithologic units. The Kuparuk Formation base is bounded by the Early Cretaceous-age Miluveach Formation and is distinguished by a change in lithology and conventional electric log character. The Miluveach Formation is shale with low resistivity (1 to 3 ohm-meters). The Kuparuk Formation top in the Borealis Pool is defined by its contact with the Early Cretaceous Kalubik Formation. The Kalubik Formation is a dark gray shale with a Gamma Ray log signature of 80 to 135 API units, and is distinguished from the Kuparuk River Formation both by a change in lithology and conventional electric log character. The Kuparuk Formation in the Borealis Pool is stratigraphically complex and is characterized by multiple unconformities, changes in thickness and sedimentary facies, and local diagenetic cementation. As shown on the type log in Exhibit 1-4, the Kuparuk Formation is divided into three stratigraphic intervals, from oldest to youngest, the A, B, and C intervals, with the A and C intervals divided into a number of sub-intervals. An overlying unit, called the Kuparuk D Shale, is locally present in some areas of the Borealis Pool. 4/38 UN 2CJ ') Borealis Pool Rules and Area Inje80rder Application 8 February 27. 2002 I I Two unconformities affect Kuparuk thickness and stratigraphy at Borealis. The Lower Cretaceous Unconformity (LCU) and the C-4B/C-4A Intra-Formational Unconformity. The LCU has erosional topography and truncates downward and dips to th~ east where it successively removes the Kuparuk Band Kuparuk A intervals. The C-4B/C-4A Intra- Formational Unconformity also truncates downward to the south and east progressively removing the C-4A, C-3B, C-3A, C-2, and C-l sub-intervals before merging with the LCU east of Borealis. I I I I I I, I I I I I I I I, The Kuparuk A and B units have a distinctly different stratigraphic thickness trend than the Kuparuk C units. The Kuparuk A unit maintains a nearly uniform thickness throughout the proposed Borealis Participating Area, suggesting that its deposition pre- dates significant fault movement. In contrast, the thickness, lithofacies, and diagenesis of the C units are variable and have been influenced by differential erosion and variable diagenetic fluid effects. As a result of these processes, the entire Kuparuk C interval thins south and southeastward and reservoir quality varies laterally and vertically. The lower Kuparuk A interval contains two reservoir quality sub-intervals; the A-4 and A-5 sand units, which are approximately 30' and 20' thick, respectively. In structurally higher portions of the field, where the A sands are above the oil-water contact, the A sand units are potentially oil-bearing and productive. The A-5 sand appears to be higher quality reservoir than the A-4 sand. The overlying Kuparuk B interval is dominated by siltstone and sandy mudstone with numerous discontinuous thin sandstone lenses up to l' in thickness. The Kuparuk B is considered non-reservoir within the Borealis Pool. The uppermost unit, the Kuparuk C interval, contains the primary reservoir sands of the Borealis Pool. The thickness of the Kuparuk C sands is variable and ranges from 70' at the northern reservoir truncation, to 185' in the area of the West Kuparuk State #1 well in the central portion of the Borealis Reservoir. The Kuparuk C thins to 50' in the Z Pad area, southeast of L Pad, and eventually thins or truncates to zero to the south and east of Z Pad. The lithology of this upper unit is variable, consisting of interbedded very fine- grained to medium-grained sandstone with minor amounts of muddy siltstone and sandy- 5/38 SCANNEL "', D 2' (I [VI, tc Wi-' ,c.y ~ Borealis Pool Rules and Area Inj.order Application ). February 27. 2002 J silty mudstone. The Kuparuk C sands are generally very quartzose and moderately sorted. The Kuparuk C interval is intensely bioturbated, contributing to the heterogeneous nature of the reservoir. l (, The Kuparuk C is further subdivided into the following sub-intervals from oldest to youngest: C-1, C-2, C-3A, C-3B, C-4A, and C-4B. The C-1 overlies the Lower Cretaceous Unconformity. The Kuparuk C-1 and C-4B sub-intervals are coarser grained I I and contain variable amounts of glauconite and diagenetic siderite. The porosity, permeability, and productivity of the Kuparuk sands are reduced with increases in clay volume, compaction, and cementation. The total clay volume in the Kuparuk C sands is composed of roughly equal amounts of illite, kaolinite and mixed-layer illite/smectite. Of the three clay types present, kaolinite is the most susceptible to formation damage; however, the relatively low volume of kaolinite minimizes the potential for migration of fines. Effective waterfloods have been established in the Kuparuk formation in several analogous fields. The C-l is the coarsest grained sub-interval. It is a well-sorted medium-grained sandstone with occasional coarse and very-coarse grains. The C-l has a fairly uniform -, thickness of 15' to 20' except to the southeast where it thins due to onlap .onto the Prudhoe High. The upper portion of the C-l sub-interval gradationally fines upward into the C-2 sub-interval. I t ~ I I I The C-2 sub-interval is the finest grained unit of the Kuparuk C interval and is generally considered non-reservoir. In the western portion of the Borealis Pool, it is dominated by silty mudstone with occasional very fine-grained sand laminations and interbeds. In the southeastern part of Borealis, the C-2 lithology transitions to very fine-grained muddy- silty sandstone, indicating a lateral facies change from northwest to southeast. The C-2 interval has a somewhat uniform thickness of 25' to 40' in the central part of the field, however it thins to the southeast and is eventually truncated by the C-4B/C-4A Intra- Fonnational Unconformity in the vicinity of Z Pad. The C-3A sub-interval is composed of coarsening upward sandstone beds interbedded with silty mudstone. The sandstone beds range from l' to 2' thick to 10' thick with silty, 6/38 JUN 2 ~ 2004 ) . February 27. 2002 Borealis Pool Rules and Area Inj8 Order Application . J very fine-grained sand at the base; thicker intervals tend towards fine-grained sand at the top. The mudstone interbeds display lateral facies variation, similar to the underlying C-2 sub-interval, in that they coarsen into silty very fine-grained sandstone to the south and southeast. The overlying C-3B sub-interval is distinguishable from the underlying C- 3A sub-interval; as the C-3B sandstones are more amalgamated and the mudstone interbeds are not present. , ' The C-4A sub-interval continues the coarsening upward trend from fine-grained sandstone at the base to medium-grained sandstone toward the top. Due to the relatively coarse grain size and low volume of clay matrix, the C-4A sub-interval has the highest net to gross and reservoir quality in the Kuparuk Formation in the Borealis Pool. area. I I I I I I I I I I I I I The C-4A and C-4B sub-intervals are separated by an intra-formational unconformity that marks the end of the coarsening upward trend. The C-4B Unconformity is a disconformity in the northern area of the pool. However, it truncates downward through the stratigraphic section in the southern and eastern portion of the Borealis Pool, where it eventually merges with the Lower Cretaceous Unconformity. The top portion of the C-4B is a fining upward sequence grading into the overlying Kuparuk D or Kalubik Formation. Total C-4 interval thickness varies due to erosional truncation of the C-4A by the C-4B Unconformity. The interval is thickest in the L Pad area where total C-4 thickness exceeds 50 feet. The C-4A interval thins southeastward and is eventually truncated near the V-I 00 well. Kuparuk Formation Structure Exhibit 1-2 is a top Kuparuk Formation structure map with a contour interval of 25 feet. The Kuparuk formation structure containing the proven and potential hydrocarbon accumulations within the proposed Borealis Pool is essentially a northwest-southeast trending antiform, created by basement-involved northwest-southeast trending faults that are intersected by a younger set of north-south striking faults. The northwest trending faults were active during deposition of the lower Kuparuk C (C-1), but do not appear to have been contemporaneous with Upper Kuparuk C (C-2 to C-4) deposition. Both sets of faults are extensional (normal) and in echelon, resulting in a series of intersecting relay ramps. The northwest trending faults that bound the field are not completely exposed at 7/38 SC!\NNEL! JUN 2 ~ 2D04 Borealis Pool Rules and Area Inje80rder Application ). February 27. 2002 I: I I I r J, I the top Kuparuk horizon, but are more evident at the LCU and older horizons. The intersection of the fault sets has resulted in a number of potentially isolated compartments within the field. The southeastern limit of ~he Kuparuk Formation is coincident with the Prudhoe High, a large basement-involved structural uplift that underlies the Prudhoe Bay field (Exhibit 1-2). Early Cretaceous and older sediments, including the Kuparuk Formation, lapped over this structural high, and were later uplifted and subsequently beveled off by unconformities. The erosional truncation is orthogonal to the northwestern orientation of the overall structural ridge. Exhibit 1-5 is a northwest-southeast oriented structural cross-section along the axis of the Borealis structure (see Exhibit 1-2 for location). This cross-section illustrates the effect of north-south oriented faulting as well as the eastern truncation of the Borealis Pool by the three unconformities. Exhibit 1-6 is a strike-oriented seismic traverse at the same northwest-southeast location as the cross section (see Exhibit 1-2 for location). This exhibit shows the overlying and underlying stratigraphy as well as the fault complexity of -' the area. Exhibit 1-7 is a dip-oriented seismic traverse from southwest to northeast (see Exhibit 1-2 for location). It shows a cross view of the structural ridge that forms the Borealis Pool and also illustrates how fault complexity varies at different stratigraphic J, I I I I I I I horizons. Fluid Contacts Exhibit 1-8 shows the interpreted oil-water contacts (OWCs) in the Borealis Pool. There is currently no evidence of free gas accumulation in Borealis. OWCs are expressed as oil-down-to (ODT) and water-up-to (WUT) because precise OWCs cannot be easily determined from logs in the Kuparuk interval. The estimated OWC for the Borealis Pool is 6668' tvdss based on the averages from the ODT and WUT information. Recent work has determined OWCs from free water level (FWL) modeling. Based on modeling, the OWC in the L Pad wells is approximately 6625' tvdss, while FWL analyses in the V-lOO and Z-lOl wells indicate an OWC at approximately 6725' tvdss. These data suggest either a 100' range of OWC uncertainty or compartmentalization of the Borealis fault blocks with a southeastward deepening of the OWC across the Borealis area. Production ~ ¡,[' -- f\ ~ a r a ~~ - ~vftg~H\Jt:;~.j 8/38 ? 10, 'Jor ¡ £..; ;;]J G. U4 I I I I I, I I I I Borealis Pool Rules and Area Inje&rder Application ). February 27. 2002 data and OWCs from Milne Point and Kuparuk fields show examples of both sealing and non-sealing (transmissive) faults, with no clear indication of a single major control such as juxtaposition, orientation or direction of current maximum stress. Fault seal studies in Borealis using shale gouge ratio and stratigraphic juxtaposition indicate that faults with throw on the order of 125 ft. or greater have a higher probability of sealing, whereas faults with less than approximately 50 ft. of throw have high potential for transmissivity due to sand-on-sand juxtaposition. Faults within the range of 50 to 150 ft. are more uncertain. Each fault block in Borealis must therefore be evaluated as a separate case using all available data. The Borealis development involves extensive collection and utilization of initial static and wireline pressure survey data within individual fault blocks. This will allow monitoring of initial reservoir conditions present in each well and will help to understand potential communication of fluids across faults. These data will be used in ongoing planning and placement of future injectors and producers. Pool Limits The trap for oil and gas in the Borealis Pool is created by a combination of structural and stratigraphic features. The accumulation is bounded to the southwest by both a series of J I I I I I NW and N-S trending faults and the position of the OWC. The faults most likely seal where the reservoir is juxtaposed against impermeable shales of the overlying Kalubik Formation and HRZ Shale. To the northeast, the pool limit is defined by both the down- dip intersection of the top of reservoir with the oil-water contact and a series of N-S faults. To the southeast, the reservoir is truncated by the C-4B Unconformity and onlap onto the Prudhoe High, while to the northeast, increasing fines degrade the primary reservoir sand units to the point of being non-reservoir. The boundary of the Borealis PAis within the proposed boundary of the Borealis Pool. Exhibits 1-9A through 1-9E are gross isopach thickness maps of selected sub-units of the Borealis Pool with a contour interval of 5'. Exhibits I-I0A through I-I0E are net hydrocarbon pore foot (NOPF) maps of the Borealis Pool with a contour interval of 1', except for I-IDE that has a contour interval of 0.5'. Wells annotated in blue on the exhibits were drilled after the mapping and contouring was completed. The NOPF maps 9/38 I ') 1ft; 200lì (\7) qJ, , ~~f f Borealis Pool Rules and Area Injearder Application ). February 27. 2002 t I I I r J, are generated by limiting the gross sand map at the OWC and multiplying that by the mapped net-to-gross ratio, porosity and oil saturation. These maps are interpretive and are subject to revision as new well data becomes available. The C-4B NOPF map (Ex~ibit I-lOA) is shaded to indicate an area of greater uncertainty around Z Pad due to the presence of a thick (approximately 25') layer of pore filling siderite in the C-4B interval. The siderite was observed in core from the Z-lOl well and sidewall cores from the Z-35 well. The presence of siderite is considered to be the reason the Z-101 did not produce from the Kuparuk C sand, even after being hydraulically fracture stimulated. These well results call into question the net pay criteria used for the Z Pad area, and is yet to be resolved. t I- I I I I 5' ~¡, ? n fI./J 10/38 I I I I I I I I I I I I I I I I I I I ') Borealis Pool Rules and Årea Inje80rder Application ) . February 27, 2002 II. Reservoir Description and Development Planning Rock and Fluid Properties The reservoir description for the Borealis Pool is developed from the Borealis Log Model. The Geolog Multimin software is used as the porosity/lithology solver and is based on density, neutron, and sonic porosity logs or density and neutron logs if a sonic log is not available. Quality control procedures include normalization of the gamma ray, density and neutron logs. The Waxman-Smits correlation is used to model water saturations. Results from the log model are calibrated with core data from wells in the Borealis Pool and the nearby Aurora Pool. Core calibration data include porosity, permeability, lithologic descriptions, X-Ray diffraction and point count data. Supplemental core data were analyzed from wells in the eastern portion of the Kuparuk River Unit (KRU). Wells with logs or core in the Kuparuk interval in the Borealis area are shown in Exhibit IT-I. Porosity and Permeability Porosity and permeability measurements were based upon routine core analysis data (air permeability under net overburden constraining pressure with Klinkenberg liquid permeability correction) from wells with Kuparuk core including S-16, S-04, S-104, Beechey Point State #1, NWE 1-01, L-I0l and NWE 2-01. The ratio of vertical to horizontal permeability (kv/kh) was 0.005 per 20' interval, based on the harmonic average of routine core data in NWE 1-01. Typical single plug kv/kh ratios average 0.5 and range from 0.04 to 1.5. Exhibit IT-2 shows values for porosity and permeability by zone that were used in the reservoir simulation. Net Pay Net pay was determined from the following criteria: minimum porosity of 15%, Vclay < 28%, and Vglauconite < 40%. If the volume of siderite exceeded 30%, the net pay was discounted by a factor of 50%. Exhibit II-2 shows gross thickness by zone based on marker picks and net pay based on the Borealis Log Model criteria. The 15% porosity cut off corresponds to approximately 1 md of permeability and what could reasonably be expected to be reservoir. Exhibit II-3 shows a cross plot of permeability vs. porosity. SCANNED J~Jrq '» f,,' 2'0[1,lJ, \" P; (.,} ,':j "il 11/38 Borealis Pool Rules and Area Injearder Application ). February 27. 2002 Water Saturation Water saturations for the Borealis reservoir model were derived using mercury. injection capillary pressure analyses from NWE 1-01 and L-I0l core plugs. The distribution of the data was characterized using a Leverett J-function. The J-function was then used to I I t I, I I I I I I I I I I I initialize the Borealis reservoir model resulting in the initial water saturation values shown in Exhibit ll-2. Relative Permeability Relative permeability curves for Borealis were determined by comparison to analog reservoirs on the North Slope. Pt. McIntyre rock type 8 relative permeability curves were selected on the basis of porosity and permeability similarities. The relative permeability curves employed in the Borealis reservoir model are shown in Exhibit ll-4. Initial Pressure & Temperature Based on pressure data from V-I 00, the initial reservoir pressure is estimated at 3439 psia at the reservoir datum of. 6600' tvdss. The reservoir temperature is 158 degrees Fahrenheit at this datum. Additional reservoir pressure measurement data are shown in Exhibit ll-5. Fluid PVT Data The reservoir fluid PVT studies conducted on Well V-I 00 crude oil from down hole MDT samples are considered the most representative for the Borealis Pool. The reservoir pressure was 3442 psia at 6610' tvdss with a temperature of 151 degrees Fahrenheit. The API gravity was 24.10 with a solution gas oil ratio (GaR) of 457 scf/stbo. The fonnation volume factor was 1.23 RVB/STB and the oil viscosity was 2.97 centipoise at reservoir pressure and temperature. Other PVT samples include L-I01 (formerly NWE 1-02) surface samples and L-117 downhole MDT samples. Exhibit ll-6 shows these sample results in comparison with V-I00. The L-I0 1 surface sample bubble point is not a measured value; it is based on analogy to eastern Kuparuk River Unit oil bubble points cOITelated with API gravity and GOR. The L-117 sample PVT analysis is not complete. Initial well tests from L Pad wells have shown API Oil gravities ranging from 25.6 to 27.5 degrees. Details of these well tests and initial well pressure data are in Exhibit TI-7. 5Ci\NNE[; JUN 2 ~ 20D~7 12/38 I Borealis Pool Rules and Area InjArðer Application ). February 27. 2002 Exhibit II-8 shows a summary of the fluid properties for the Borealis Pool. Exhibit II-9 contains a listing of PVT properties as a function of pressure. I I I, I Hydrocarbons in Place Estimates of hydrocarbons in place for the Borealis Pool reflect current well control, stratigraphic and structural interpretation, and rock and fluid properties. The current estimate of original oil in place (OOIP) in the Borealis Participating Area ranges between 195 million stbo and 277 million stbo primarily due to uncertainty in the oil-water contact (OW C) and reservoir net pay interval thickness. Associated formation gas in place ranges from 85 to 125 billion scf. There are no indications of a free gas column in the Borealis Pool. Reservoir Performance Well Performance A summary of well tests in and near to the Borealis Pool Rules area is included as Exhibit I I I I I I I I I 11-10. The West Kuparuk State #1 well tested the Kuparuk Formation for six hours in January 1970, producing at 2200 bopd with a +3.7 skin in an unstimulated drill stem test with a 2200 psi flowing bottom hole pressure. Testing in the Kuparuk State 7-11-12, So Cal 33-29E, and Texaco Prudhoe 1 wells failed to produce oil from the Kuparuk Formation. In 1998, Well L-101 (former NWE 1-02) with a small (5700#) propped hydraulic frac job in the C-3B and unstimulated C-1 perforations produced 100 to 200 bopd during a 2 day test period. Exhibit II-10 does not include appraisal well V-100 and Z-101 results. Testing of appraisal Well Z-101 in the C-sands with a 33,000# propped hydraulic frac job failed to produce at a sustained rate. Perforating and testing with the A-sands also open is underway with initial test results shown in Exhibit II-7 and recent well test results shown in Exhibit II-7 A. Well V-I 00 should be tested when V Pad facilities are commissioned in the first quarter of 2002. Six development wells have been tested in the Kuparuk Formation: L-100, L-10 1, L-1 07, L-110, L-114 and L-116 at rates of 3815, 4836,5135,5134,5481, and 5343 bopd, respectively. Additional details of these tests are shown in Exhibit II-7. These are 13/38 ,JUN 2 ~ 2004 I ). Borealis Pool Rules and Area Injec rder Application . February 27, 2002 S-shaped conventional wells with propped hydraulic fractures. These well locations are shown in Exhibit ll-l. I Aquifer Influx The aquifer to the northeast of Borealis could provide pressure support during field development. Early production data from the flanks of the field will be evaluated to determine the extent of pressure support.. Current modeling efforts both with and without aquifer pore volume do not significantly change injector requirements or location. As production data become available this assessment will continue to be evaluated. I Gas Coning I Under-Running There are no indications of a free gas column in the Borealis Pool, so coning or under-run mechanisms are not anticipated. Development Planning A reservoir model of the Borealis Pool was constructed to evaluate development options, investigate reservoir management practices, and generate rate profiles. Reservoir Model Construction A fine scale three-dimensional geologic model of Borealis was constructed based on detailed stratigraphic and structural interpretation. This reservoir model is a three- dimensional, three-phase, black oil simulator. The model area encompasses the proposed I I I I J I I Borealis Pool area. The model has 400' by 400' (3.7 acre) cells. The reservoir model is defined vertically with six layers with a nominal thickness of 20' and ranging from 6' to 46' thick. Exhibit ll-2 shows the correspondence of model layers to geologic zones and summarizes average physical properties for each model layer. Faults and stratigraphic juxtaposition are honored in the model through the use of comer point geometry and non- local grid connections. Water saturations in the reservoir model were established by capillary pressure equilibrium using a Leverett J-Curve based upon Borealis core mercury injection capillary pressure data. The oil-water contact (OWC) in reservoir quality rock is nominally 25' above the free water level (FWL) that is input to initialize the model; a 6650' tvdss FWL in northern L Pad and 6750' tvdss FWL in southern L Pad and V Pad correspond to a 6625' and 6725' OWC, respectively. 14/38 SCANNED {, ~ ZODt} I Borealis Pool Rules and Area InjeCarder Application '. February 27. 2002 Development Options Development options evaluated for the Borealis Participating depletion and waterflood with a miscible gas flood also analyzed. Area include prImary I I I I I I I I I I I I I I I Primary Recovery The primary recovery mechanism was a combination of solution gas drive. and aquifer support. Model results indicate that primary depletion would recover approximately 13% of the OOIP. Exhibit 11-11 shows production and recovery profiles for primary depletion. Under primary depletion, the Borealis Participating Area experiences a decline in reservoir pressure that falls below 2500 psig by year 2007. Annualized production rate peaks above 15,000 bopd in 2002 and falls to 2,000 bopd by the year 2010. Waterflood Waterflood has been identified as the preferred development option for Borealis. Borealis Participating Area development is anticipated to include between twenty (20) to fifty (50) production and injection wells. The reservoir simulation of waterflood reached a recovery of 23% of the Borealis Participating Area OOIP with 0.47 hydrocarbon pore volume injected (HCPVI). Exhibit 11-12 shows production and recovery profiles for a Borealis waterflood development. Annualized production rate peaks at 13,000 bopd in 2002, slightly lower than the primary recovery case because a number of wells are in water injection service, but production remains above 5,000 bopd though the year 2010 with a maximum water injection rate of over 20,000 bwpd. Reservoir modeling indicates that Borealis can be produced under primary production for eighteen months with pre-production of planned injectors without reducing ultimate field recovery. Exhibit 11-13 shows the field recovery impacts with deferred water injection startup. These cases were initialized with different oil bubble point pressures to address the bubble point uncertainty range indicated in Exhibit II-6 and discussed in the Fluid PVT Data section. Waterflood development has been modeled using 2800-psi surface injection pressure, which shows no breakdown of the confining strata above or below the Kuparuk fonnation. Facility modifications are underway to increase the deliverability and pressure of the produced water system from GC- 2. The primary work is a letdown 15/38 G>j¡ 8\ (f2nf'L~ r:.s QJ .UU'+ I Borealis Pool Rules and Area Injecarder Application ). February 27. 2002 station in the GC that will boost available pressure and fluid handling efficiency. Enhanced Oil Recovery (EOR) Preliminary analysis indicates the potential for miscible gas flood in the Borealis accumulation. Early screening indicates approximately 5% incremental oil recove~y. Further evaluations need to be performed to determine the impact on total recovery. I I t I Development Plan Borealis development plans include approximately twenty (20) to fifty (50) production and injection wells within the proposed Borealis Participating Area (BP A). Development drilling commenced July 2, 2001. Production commenced November 6, 200l. Development will take place from L Pad and V Pad. The southernmost Borealis wells may be drilled and produced from Z Pad. I L Pad was originally an ice pad used to drill appraisal wells L-100 (formerly NWE 1-01A) and L-101 (formerly NWE 1-02) in the first half of 1998. Appraisal well V-100 was drilled in 2001 from V Pad to evaluate reservoir potential in the eastern and south-central region of the proposed BP A. These wells will be used as part of the planned development. Appraisal well Z-101 was drilled in December 2000 to evaluate acreage south of the proposed BP A. --, t I I I I I I I Development plans include drilling a series of production and injection wells beginning at L Pad then moving to V Pad. Each producing well may be stimulated, if necessary, with a propped hydraulic fracture. Water injection is expected to commence once a series of injectors, the injection pipeline, and manifold construction are completed, and approvals to inject are received. Development drilling likely will continue for a number of years. Borealis Owners will evaluate optimal well count, the number and the location of producers and injectors as development of the reservoir continues. Well Spacing Pattern spacing will be irregular with well locations determined considering local faulting and reservoir stratigraphy. The Borealis Pool may utilize conventional and horizontal wells nominally spaced at 160 acres per well in irregular patterns. Well spacing may be less than 80 acres per well with wells placed within the same quarter section but on opposite sides of faults. Future infill or peripheral drilling will be evaluated based on 16/38 SC{-\NNE~) ,JUN Z 2004. t I ) Borealis Pool Rules and ~~ Inje6rder Application . February 27. 2002 production performance and surveillance data. To allow for flexibility in developing the Borealis Pool, a minimum well spacing of 40 acres is requested. I Reservoir Management Strategy Pressure support prior to waterflood start-up will be provided from solution gas drive and aquifer support. Once water injection begins, the voidage replacement ratio (VRR) will exceed 1.0 to restore reservoir pressure. Once the reservoir pressure has been restored, a balanced VRR will be maintained. I I I I I I I I I I I I I The objective of the reservoir management strategy for the Borealis Pool is to operate in a manner that will achieve the maximum ultimate recovery consistent with good oil field engineering practices. To accomplish this objective, reservoir management is approached as a dynamic process. The initial strategy is derived from model studies and limited well test information. Development well results and reservoir surveillance data will increase knowledge and improve predictive capabilities resulting in adjustments to the initial strategy. The reservoir management strategy for the Borealis Pool will continue to be evaluated throughout reservoir life. Reservoir Performance Conclusions Reservoir simulation supports implementation of a waterflood in the Borealis Pool. Development will take place with the drilling of producer-injector combinations in irregular patterns determined considering local faulting. Peak annualized production is expected to be between 10,000 and 15,000 bopd. Peak water injection is expected to be between 20,000 and 40,000 bwpd. It is requested that the Operator be allowed to determine the field off-take rate based upon sound reservoir management practices. 17/38 2 2004 I I I I I I I I I I I I I I I I I I I Borealis Pool Rules and Area Inje80rder Application . February 27. 2002 III. Facilities General Overview Borealis wells will be drilled from existing L, V and possibly Z pads. Borealis fluids will be commingled with Prudhoe Bay Unit Initial Participating Area (IP A) fluids on the surface to maximize use of existing IP A infrastructure, minimize environmental impacts and reduce costs to help maximize recovery. New pipelines (24" Production, 12" water injection, and 8" gas lift) have been installed for development of the Borealis reservoir. L and V Pad production will flow to the Eileen-West End (EWE) junction, joining Z Pad and W Pad production, then flowing to Gathering Center 2 (GC-2) for processing and delivery to Pump Station 1. Injection water and gas lift gas lines will be extended from Z Pad to L and V Pads. Exhibit llI-l is a drill pad layout diagram of the facilities and wellhead locations at L Pad. ExhibitsllI-2 and 1II-3 are similar diagrams for V Pad and Z Pad. Exhibit IIl-4 is an area map showing locations of the pad facilities, roads, and pipelines. The GC-2 production facilities to be used include separating and processing equipment, inlet manifold and related piping, flare system, and on-site water disposal. IP A field facilities that will be used include a 24"/30" low-pressure large diameter flowline, an 8" gas lift supply line, and a 12" water injection supply line. A miscible injection (MI) supply line could be installed from Z Pad to L and V Pads for future enhanced oil recovery (EOR) applications. The oil sales line from GC-2 to Pump Station 1 and existing power distribution and generation facilities will be utilized. Drill Pads and Roads L and V Pads have been chosen for the surface locations of Borealis Participating Area wells to reach the expected extent of the reservoir while minimizing new gravel placement, minimizing well step out and allowing the use of existing facilities. A Borealis area map showing the drill pads is shown in Exhibit ill-4. Roads and access work are complete to L and V Pads. Additional Borealis Pool development could involve drilling from Z Pad and, potentially, a new pad. SCf\NNEO JUN 2 9 2004 18/38 I I I I I I I I, I I I I I I I I I I I Borealis Pool Rules and Area Inje80rder Application . February 27, 2002 Pad Facilities and Operations A production and injection manifold capable of accommodating up to 24 new Borealis wells has been built, placed, and is in use on L Pad. A similar manifold is being placed at V Pad and is expected to be in service in the first quarter of 2002. Borealis is currently producing from wells on L Pad. Water for watertlood operations will be obtained from the existing 12" water injection supply line near Z Pad that has been extended. to L and V Pads. Estimates indicate the line is sufficient to deliver water to Borealis injection wells at a rate of 40,000 bpd and a pressure up to 2800 psig. Should water injection pressures prove insufficient, injection pressure can be boosted locally; an upgrade to the existing power system would be necessary along with the installation of local water injection booster pump(s). Artificial lift gas will be obtained from the Borealis 8" gas lift supply line that is tied-in to the, Prudhoe Bay Initial Participating Area (IP A) system near Z Pad. Preliminary estimates indicate that the line is sufficient to deliver gas to Borealis production wells at a rate of 80 mmscfpd and a pressure of approximately 1800 psig. Adjustments to production chokes will be performed manually by a pad operator. The automatic well safety systems and the pad emergency shutdown system can be triggered either manually or automatically. All producers will have actuated divert valves to allow switching from the production to the test header remotely. Gas lift chokes are also actuated to allow remote adjustment of gas lift rate. Production allocation is addressed in Section V. Well pad data gathering will be performed both manually and automatically. The data gathering system (SCADA) will be expanded to accommodate the Borealis wells and drill pad equipment. The SCADA system will continuously monitor the flowing status, pressures, and temperature of the producing wells. These data will be under the well pad operator's supervision through his monitoring station. Gathering Center No modifications to the GC-2 production system will be required to process Borealis 19/38 5Ct~NNE[: . Pu N! 9 fH 200,.'1 .,..-4 tel! ~j ... ' ¡'il I Borealis Pool Rules and Area Inje80rder Application ). February 27, 2002 production. GC-2 was built to process a nominal oil rate of 400 mbopd, gas rate of 320 mmscfpd (modifications have increased this to J ,200 mmscfpd) and a nominal produced water rate of 280 mbwpd. Production, including that from Borealis, is not expected to exceed existing GC-2 capacity. I A water injection pressure control station may be added to GC-2 to maximize the available water injection pressure. I I I I I I I I I I I I I I, 2 20/38 " Borealis Pool Rules and ~ InjaOrder Application ). February 27, 2002 I I I t I IV. Well Operations Existing Wells Over the years, a number of exploration/appraisal wells and Prudhoe Bay Unit wells that targeted the deeper Ivishak production have been drilled and logged the Borealis Kuparuk Formation. However, only the recently-drilled L-100 (formerly NWE 1-01A), L-101 (formerly NWE 1-02), L-107, L-110, L-114, L-116, V-100 and Z-101 wells and planned injectors L-115i and L-117i are currently completed in the Borealis Pool. These well locations are shown in Exhibit II-I. The Borealis Pool is currently producing from six L Pad producers (L-100, L-1 01, L-1 07, L-110, L-114, and L-116); recent well test data are shown in Exhibit 11-7. Two L Pad injectors have been drilled and completed and should be available to begin water injection upon approval of an Area Injection Order. Well V-I 00 is expected to begin production in the first quarter of 2002 with commissioning of the V Pad facilities. Southeast of the proposed Borealis Participating Area, Well Z-l 0 1 is testing producibility of the Kuparuk Formation C and A sands. Drilling and Well Design Borealis development wells will be directionally drilled utilizing drilling procedures, well designs, and casing and cementing programs similar to those currently used in the I Prudhoe Bay Unit and other North Slope fields. A 16" or 20" conductor casing will be set 80' to 120' below pad level and cemented to surface. Consideration will be given to driving or jetting the 16" or 20" conductor as an alternative setting method. Requirements of 20 AAC 25.035 concerning the use of a diverter system and secondary well control equipment will be met. I I I I I I Surface hole will be drilled no shallower than 1900' tvdss. This setting depth provides sufficient kick tolerance to drill the wells safely and allows the angle-build portions of high departure wells to be cased. No hydrocarbons have been encountered to this depth in previous PBU wells. Cementing and casing requirements similar to other North Slope fields have been adopted for Borealis. The casing head and a blowout-preventer stack will be installed onto the surface casing 21/38 SCANNED JUN 2 9 2DD~. I I I I I I I I I I I I I I I I I I I ) Borealis Pool Rules and Area Inje80rder Application ). February 27. 2002 and tested consistent with 20 AAC 25.035. The production hole will be drilled below surface casing to the KuparukFormation,allowing sufficient rathole to facilitate logging. Production casing will be set and cemented. Production liners will be used as needed, to achieve specific completion objectives or to provide sufficient contingency in mechanically challenging wells, such as high departure wells. To date, no significant H2S has been detected in the Kuparuk Formation while drilling PBU wells or in any Borealis well drilled to date. However, with planned waterflood operations, there is potential of generating H2S over the life of the field. Consequently, H2S gas drilling practices will be followed, including continuous monitoring for the presence of H2S. A readily available supply of H2S scavenger, such as zinc carbonate, will be maintained to treat the entire mud system. Emergency operating and remedial protective equipment will be kept at the wellpad. All personnel on the rig will be informed of the dangers of H2S, and all rig pad supervisors will be trained for operations in an H2S environment. Well Design and Completions Both horizontal and conventional wells may be drilled at Borealis. The horizontal well completions could be perforated casing, slotted liner, barefoot section, or a combination. All conventional wells will have cemented and perforated completions. Fracture stimulation may be necessary to maximize well productivity and injectivity. Tubing sizes will vary from 2-3/8" to 5-1/2" depending upon the estimated production and. injection rates. In general, production casing will be sized to accommodate the desired tubing size in the Borealis wells. JUN 2 9 200¿~ 22/38 I ) Borealis Pool Rules and Area Inj80rder Application ). February 27. 2002 The following table indicates typical casing and tubing sizes for proposed Borealis wells: Surface Casing Inter / Prod Casing Production Liner Production Tubing Conventional 10-3/4" to 7" 7" to 3-112" Not Planned 5-112" to 2-3/8" Horizontal 10-3/4" to 7" 7" to 4-112" 5-112" to 2-7/8" 5-1/2" to 2-3/8" I I I I I I I I I I I I I I Plans are to run L-80 grade casing in the Borealis wells. Tubing strings will be completed with either 13-Chrome or L-80 protected with corrosion inhibitor as necessary. Tubing jewelry will be composed of either 13-Cr or 9-Cr/lMoly, which is compatible with both L-80 and 13-Cr. Use of 13-super chrome or equivalent is possible on certain completion jewelry. Borealis producers will be completed in a single zone (Kuparuk Formation). Injectors may be single or multi-zone (Kuparuk, Schrader Bluff, Sag and/or Ivishak) utilizing a single string and multiple packers as necessary. As shown in the typical well schematics, Exhibit N -1 for a conventional producer and injector wells and Exhibit N -2 for a multi- zone injector well, the wells have gas lift mandrels to provide flexibility for artificial lift or commingled production and injection. A sufficient number of mandrels will be run to provide flexibility for varying well production volumes, gas lift supply pressure, and water-cut. Additionally, jewelry will be installed so that jet pumps can be utilized providing further flexibility for artificial lift. Any completions which vary from those specified in State regulations will be brought before the Commission on a case by case basis. The Borealis Owners may utilize surplus IP A wells for development provided they meet Borealis needs and contain adequate cement and mechanical integrity. Producers are designed to be S-Shaped allowing lower mechanical and hydraulic energy for fracture stimulation. The injectors will be designed to enable multi-formation injection where appropriate to the Kuparuk, Schrader Bluff, Sag and Ivishak Formations. Injectors may be pre- 23/38 ~JUN 2 3 20D/). " Borealis Pool Rules and Area Inje80rder Application ). February 27, 2002 produced prior to converting to permanent injection. Production from these wells could improve their injectivity and be used to evaluate reservoir productivity, connectivity and pressure response, enabling refinement of current reservoir models and depletion plans. I I I I I I I I I I I I I I I I Measurement while drilli~g (MWD) and logging while drilling (L WD) will typically begin after setting the 9-5/8" or 7-5/8" surface casing. Production hole will be drilled to below the Kuparuk Formation and either a 5-~" by 3-Y2" or 7" long string will be cemented in place across the Kuparuk Formation. MWD will typically include drilling parameters such as weight on bit, rate of penetration, inclination. angle, etc. L WD measurements will typically include gamma ray (OR), resistivity and density and neutron porosity throughout the reservoir section. Open hole electric logs may supplement or replace L WD logging, including OR, resistivity, density and neutron porosity and other logging tools when wellbore conditions allow their use. A nine (9) to eleven (11) pound per gallon (ppg) freshwater low-solids non-dispersed mud system or equivalent will typically be used to drill the production / injection hole down to the 7" casing point. If any horizontal section is drilled, the. mud system parameters may be optimized for that hole section. If horizontal wells are incorporated into the development, 7" intermediate casing will typically be set near the top of the Kuparuk Formation, drilled with a 6-118" horizontal production hole and completed with a 4-Y2" or 3-Y2" slotted or solid liner run, cemented and perforated as necessary. To date, all the development wells have been conventional designs that are cased, cemented and perforated. Surface Safety Valves Surface safety valves (SSV) are included in the wellhead equipment for the Borealis Pool for all wells (producers and injectors). These devices can be activated by high and low pressure sensing equipment on the flowline and are designed to isolate produced fluids upstream of the SSV if pressure limits are exceeded. Testing of SSVs will be in accordance with AOOCC requirements. Subsurface Safety Valves The characteristics of the Borealis Pool should not require the installation or use of 24/38 2 9 2004 Borealis Pool Rules and Area Inje80rder Application ). February 27, 2002 I I I I I I I I I I I I I I I I subsurface safety valves on production wells. Borealis producers are relatively low rate oil wells produced by artificial lift in a water flood development. Subsurface safety valves (SSSV) will be installed on gas or miscible injectant (MI) injectors when in service. All well completions will be equipped with nipple profile at a depth just below the base permafrost, should the need arise to install a downhole flow control. device or pressure operated safety valves for future MI service or during maintenance operations. Subsurface safety valves are not required in Borealis wells under the applicable regulation, 20 AAC 25.265. In light of developments in oil field technology, controls and experience in operating in the arctic environment, the Commission has eliminated SSSV requirements from pool rules for the Prudhoe Oil Pool and the Kuparuk River Oil Pool. See Conservation Orders 363 and 348, respectively. In addition, SSSVs have not been required for .producing wells in recent conservation orders for the nearby Midnight Sun and Aurora Oil Pools, which also occur within the Kuparuk Formation. Part of the Borealis Pool is currently covered by Conservation Order 98A (CO 98A), adopted in 1971, which requires subsurface safety valves. Most of the original area of CO 98A is covered by more recent pool rules, namely the Kuparuk River Oil Pool and Aurora Oil Pool, which as noted, do not contain an SSSV requirement. Therefore, the applicants recommend removal of the Borealis Pool from the scope of CO 98A, and that the Borealis Pool Rules not impose an SSSV requirement on production wells Drilling Fluids Freshwater low solids, non-dispersed fluids will be used to drill the upper and Kuparuk Formation well sections. In the future, water-based KCI mud or other mud may be used in order to minimize skin damage from drilling and enhance performance. Stimulation Methods Stimulation to enhance production or injection capability is an option for Borealis wells. Fracture stimulation has been implemented for all Borealis producers drilled to date and may be implemented to mitigate formation damage and stimulate future Borealis wells. It may also be necessary to stimulate horizontal wells, depending upon well performance. Acid or other forms of stimulation may be performed as needed in the future. 25/38 2 $j 200,i~ ) Borealis Pool Rules and kea InjeOrder Application ). February 27. 2002 I I I I I I I I I' I I I I I I I I I Reservoir Surveillance Program Reservoir surveillance data will be collected to monitor reservoir performance and define reservoir properties. Reservoir Pressure Measurements An updated isobar map of reservoir pressures will be maintained and reported at the common datum elevation of 6,600' tvdss. Pressure data could be stabilized static pressure measurements at bottom-hole or extrapolated from surface (assuming single phase fluid conditions), pressure fall-off, pressure buildup, multi-rate tests, drill stem tests, repeat formation test, permanent gauges, or an open hole formation test. An initial static reservoir pressure will be measured on each regular production or injection service well. Bottom hole pressure surveys will be acquired yearly from a number of wells equal to the number of governmental sections within the Borealis Pool that contain active producing wells. A minimum of four surveys will be taken each year in representative areas of the Borealis Pool to insure representative areal coverage. It is anticipated that the operator will collect more than the suggested number of pressure measurements during initial field development to identify potential compartmentalization and fewer measurements as the development matures. Data and results from all relevant reservoir pressure surveys will be reported annually but would be available to the Commission upon request. Surveillance Logs Surveillance logs, which may include flowmeters, temperature logs, or other industry proven downhole diagnostic tools, may be periodically run to help determine reservoir performance (i.e., production profile and injection profile evaluations). Surveillance logs will be run on multi-zone completions to assist in the allocation of flow splits as necessary. 26/38 ïU' No ~C/!d' ~ 9 200¿i I I I I I I I I, I I I I I I I~ I I I I Borealis Pool Rules and Area Inj.order Application . February 27, 2002 V. Production Allocation Borealis production allocation will be done according to the PBU Western Satellite Production Metering Plan. Allocation will rely on performance curves to determine the daily theoretical producti~n from each well. The GC-2 allocation factor will be applied to adjust the total Borealis production. A minimum of one well test per month will be used to tune the performance curves, and to verify system performance. No NGLs will be allocated to Borealis. To support implementation of this procedure, several improvements to the Western Operation Area of the PBU ("WOA") allocation system have been initiated. Conversion of all well test separators in the GC-2 area to two-phase operation with a coriolis meter on the liquid leg is expected to be completed in 2002. The test bank meters at GC-l and GC-2 have been upgraded as part of the leak detection system and a methodology for generating and checking performance curves for each well has been developed. Until the PBU Western Satellite' Production Metering Plan is approved for implementation, Borealis wells will use an interim metering and allocation plan based on a minimum of two well tests per month with linear interpolation and a fixed allocation factor of 1.0. Commission approval is requested under 20 AAC 25.215(a) that the Borealis metering described above either satisfies the requirement for monthly well tests or is an acceptable alternative. 27/38 JUN 2 9 200,4 Borealis Pool Rules and Area Inj8 Order Application ). February 27. 2002 VI. Area Injection Operations I This application, prepared in accordance with 20 AAC 25.402 (Enhanced Recovery Operations) and 20 AAC 25.460 (Area Injection Orders), requests authorization for water injection to enhance recovery from the Borealis Pool. The proposed area for Area Injection Operations is shown in Exhibit 1-3A. This section addresses the specific requirements of 20 AAC 25.402(c). I ~ Plat of Project Area 20 AAC 25.402(c)(1) r I Exhibits 1-2 and II-I show the location of all existing injection wells, production wells, abandoned wells, dry holes, and any other wells within the Borealis Pool, as of November 1,2001. Specific approvals for any new injection wells or existing wells to be converted to injection service will be obtained pursuant to 20 AAC 25.005, 25.280 and 25.507, or any applicable successor regulation. I Operators/Surface Owners 20 AAC 25.402(c)(2) and 20 AAC 25.402(c)(3) BP Exploration (Alaska) Inc. is the operator of the proposed Borealis Participating Area. Pursuant to 20 AAC 25.402(c)(3), Exhibit VI-1 is an affidavit showing that the Operators , and Surface Owners within a one-quarter mile radius of the area and within the proposed Borealis Participating Area have been provided a copy of this application for injection. ! I I I I I I Description of Operation 20 AAC 25.402(c)(4) Development plans for the Borealis Pool are described in Section II of this application. Drill pad facilities and operations are described in Section III. Geologic Information 20 AAC 25.402(c)(6) The Geology of the Borealis Pool is described in Section I of this application. Injection Well Casing Information 20 AAC 25.402(c)(8) The L-115 and L-117 wells were permitted and drilled for injection service for the Borealis Pool enhanced recovery project. The casing program for these wells was permitted and completed in accordance with 20 AAC 25.030. The completion diagram in 28/38 J1JN (;71 c: 200..~ ~ {,~ ~J ,¡~ I ) Borealis Pool Rules and Area In. Order Application ) . February 27, 2002 I' Exhibit IV -1 is representative for these planned injection service wells. Cement bond logs have been run on wells L-115 and L-117; both demonstrate isolation of injected fluids to the Kuparuk Formation. The L-115 and L-117 wells are completed in accordance with 20 AAC 25.412. ~ " t The actual casing program is included with the" Application to Drill" for each well and is documented with the AOGCC in the completion record. API injection casing specifications are included on each drilling permit application. All injection casing is cemented and tested in accordance with 20 AAC 25.412 for newly drilled injection wells. All drilling and production operations will follow approved operating practices regarding the presence of H2S in accordance with 20 AAC 25.065. In the future, conversion of wells from production service to injection service will be in accordance with 20 AAC Î' 25.412. Injection Fluids 20 AAC 25.402(c)(9) , Type of Fluid/Source Produced water from GC2 will be used as the water source for Borealis injection. Produced water from GC-2 is used in injection programs at Aurora and similar water from GC-1 is used for injection programs at Midnight Sun. These fields, involving the same horizon though different pools, have had no compatibility issues between source j water and injection zones of interest. ) Composition The composition of the injected fluid will be" produced water from GC2. The water composition in the Borealis Pool is based on water analysis from the V -100 well. Compositions for both are provided in Exhibit VI-2. The composition of Borealis produced water will be a mixture of connate water and injection water. I I I I I I Maximum Injected Rate Maximum water injection requirements at Borealis Pool are estimated at 20,000 to 40,000 BWPD. Compatibility with Formation and Confining Zones Core, log and pressure-buildup analyses indicate no significant problems with clay 29/38 2, ~, 2.00;1. ) Borealis Pool Rules and Area lnj.order Application . February 27, 2002 [, swelling or compatibility with in-situ fluids. Analysis of the NWE 1-01 and L-I0l core indicates relatively low clay content (5-35% by volume), primarily in the form of illite. Petrographic analysis indicates that clay volumes in the better quality sand sections (>20 md) are in the range of 3 - 6%. Clay volumes increase to approximately 6 - 12% in rock with permeabilities in the range of 10 - 20 md. Below 10 md, clay volumes increase to a range of 12 - 20%. Most of the identified clay is present as intergranular matrix, having been intermixed with the sand through burrowing. The overall clay composition is a mixture of roughly equal amounts of kaolinite, illite and mixed layer illite/smectite. No chlorite was reported during petrographic analysis. I' I No significant compatibility issues are anticipated between the formation and injected water. \ ì The presence of iron-bearing minerals suggests that the use of strong acids should be avoided in breakdown treatments, spacers, etc. Geochemical modeling results indicate that a combination of GC2 produced water and connate water is likely to form calcium carbonate and barium sulfate scale in the production wells and. downstream production equipment. Scale precipitation will be controlled using scale inhibition methods similar to those used at Kuparuk River Unit and Milne Point Unit. r ì I I I I I Injection Pressures 20 AAC 25.402(c)(10) The expected average surface water injection pressure for the project is 2300 psig. The estimated maximum surface injection pressure is 2800 psig. The resulting bottom hole pressure will be limited by hydraulic pressure losses in the well tubing, with a maximum expected bottom hole pressure of 5800 psig. Fracture Information 20 AAC 25.402(c)(11) The expected maximum injection pressure for the Borealis wells will not initiate or propagate fractures through the confining strata, and, therefore, will not allow injection or formation fluid to enter any freshwater strata. There is no evidence of injection out of zone for similar Kuparuk Formation waterflood operations on the North Slope. Dipole 30/38 SC¡-\N~\!EC JUN 2 9 200L~ [ I, Borealis Pool Rules and Area InjeOrder Application ). February 27, 2002 Sonic evaluations have measured values equal to or greater than 0.99 psi/ft confining stress. Freshwater Strata There are no freshwater strata in the area of issue (see Section N of the Application for Modification to Area Injection Order No.4, dated April 5, 1993). Additionally, calculations of water salinity from open hole resistivity logs acquired in the Prudhoe Bay E-16 well indicate a salinity range of 40,000 to 45,000 ppm for Cretaceous and Tertiary sands above the Kuparuk River Formation. Therefore, even if a fracture were propagated through all confining strata, injection or formation fluid would not come in contact with freshwater strata. I Enhanced Recovery Water injection operations at the Borealis Pool are expected to be above the Kuparuk Formation parting pressure to enhance injectivity and improve recovery of oil. Fracture propagation models confirm that injection above the parting pressure will not exceed the integrity of the confining zone. I f I I I I I. I I The Kuparuk Formation at the Borealis Pool is overlain by the Kalubik and HRZ shales, which have a combined thickness of approximately 300 feet. The HRZ is a thick shale sequence, which tends to behave as a plastic medium and can be expected to contain significantly higher pressures than sandstones of the Kuparuk Formation. Mechanical properties determined from log and core data for the HRZ and Kalubik intervals indicate a fracture gradient from approximately 0.8 to 0.9 psi/ft. The L-101 well was fractured stimulated in the Kuparuk C sand at the Borealis Pool, with a formation breakdown pressure of 4290 psi, which calculates to a fracture gradient of 0.65 psi/ft at initial reservoir conditions. This data agrees with data from offset fields containing wells completed in the Kuparuk Formation. The Kuparuk Formation is underlain by the Miluveach/Kingak shale sequence. A leakoff test in the Kingak shale formation demonstrated leakoff at a gradient of approximately 0.85 psi/ft. Although rock mechanics calculations and data from the Prudhoe Bay Oil Pool indicate 31/38 ') fì ?OO'i~ (,¡ .;¡j - '1' ~ ) ) Borealis Pool Rules and Area Inje.rder Application . February 27. 2002 that sandstone fracture gradients are reduced during waterflooding operations due to reduced in-situ rock stress associated with the injection of water that is colder than the reservoir, produced water from GC2 would have limited impact on the fracture gradient because the water temperature is expected to be close to the Borealis reservoir temperature. " Hydrocarbon Recovery 20 AAC 25.402(c)(14) Borealis Pool original oil in place is discussed in Section II. Reservoir simulation studies, also discussed in Section II, indicate incremental recovery from waterflooding to be approximately 10% of the original oil in place, relative to primary depletion. , t r I I 2 9 2004 32/38 '~ J Borealis Pool Rules and kea Inj+rder Application ~ r ( ). February 27, 2002 VII. Proposed Borealis Pool Rules BP Exploration (Alaska) Inc., in its capacity as Borealis Operator and Prudhoe Bay Unit Operator, respectfully requests that the Commission remove the Borealis Pool from Conservation Order 349A, repeal or remove the Borealis Pool from the scope of Conservation Order 98A, and adopt the following Pool Rules for the Borealis Pool. The following rules apply to the affected area described below: Umiat Meridian T12N-R10E: ADL 25637 Sec T12N-RIIE: ADL 47447 Sec t I f I I I I, I I I t I, I I TI1N-RI1E: ADL 47446 Sec ADL 28238 Sec ADL 28239 Sec ADL 47449 Sec ADL 28240 Sec ADL 28241 Sec ADL 28245 Sec ADL 28244 Sec ADL 28246 Sec ADL 28261 Sec ADL 47450 Sec ADL 28263 Sec ADL 28262 Sec ADL 47452 Sec ADL 47453 Sec ADL 28259 Sec TIIN-RI2E: TI2N-RI2E: 13,24 16 SW/4 and W/2 NW/4 and W/2 SE/4, 21, 22 SW/4 and W/2 NW/4 and S/2 SE/4 17,18,19,20 26 S/2 and W/2 NW/4 and SE/4 NW/4, 35, 36 27,28,33,34 29,30,32 1, 2, 11, 12 3,4,9,10 13,14,24 15 25 9W/2 5 S/2, 6 S/2 and NW /4 and W /2 NE/4, 7, 8 16 W/2, 21 W/2 17, 18, 19,20 28 W/2, 33W/2 29,30,31,32 31 W/2 and W/2 SE/4 Rule 1: Field and Pool Name The field is the Prudhoe Bay Field and the pool is the Borealis Pool. The Borealis Poo! is classified as an Oil Pool. Rule 2: Pool Definition The Borealis Pool is defined as the accumulations of hydrocarbons common to and correlating with the interval between log measured depths 6534 feet and 6952 feet in the West Kuparuk State 1 well within the area designated above. Rule 3: Well Spacing Minimum spacing within the pool will be 40 acres. The Pool shall not be opened in any well closer than 500' to an external boundary where ownership changes. 2 9 20D4, 33/38 ) Borealis Pool Rules and Ar~a Inje.Drder Application ). February 27, 2002 I I I r I I I I I I I I I I I I I I Rule 4: Automatic Shut-In Equipment (a) All producer and injection wells will be equipped with a fail-safe automatic surface safety valve. (b) Surface safety valves will be tested in accordance with Commission requirements. Rule 5: Common Production Facilities and Suñace Commingling (a) The operator shall submit to the Commission for approval the finalized PBU Western Satellite Metering Plan or other plan for allocation of production from the Borealis Pool. The PBU Western Satellite Metering Plan will satisfy the well testing requirements of 20 AAC 25.215, 20 AAC 25.230 and 20 AAC 25.270. (b) Until the approved Prudhoe Bay Unit Western Satellite Metering Plan is implemented, the operator shall submit monthly reports containing daily allocation and well test data for agency surveillance and evaluation. During this period, each producing Borealis well will be tested a minimum of two times per month with production allocated by straight-line interpolation between well tests. The Borealis allocation factor will be 1.0. Rule 6: Reservoir Pressure Monitoring (a) The minimum number of bottom hole pressure surveys acquired yearly will equal the number of governmental sections within the Borealis Pool that contain active producing wells, but shall not equal less than four pressure surveys annually. (b) An initial static reservoir pressure will be measured on each regular production or injection service well within 30 days of initial perforation. (c) The reservoir pressure datum will be 6600' true vertical depth subsea. (d) Pressure data may be stabilized static pressure measurements at bottom-hole or extrapolated from .surface (single phase fluid conditions), pressure fall-off, pressure buildup, multi-rate tests, drill stem tests, repeat formation test, permanently installed gauges, or open hole formation test. (e) Data and results from pressure surveys shall be submitted with the annual reservoir surveillance report. All data necessary for analysis of each survey need not be submitted with the report but must be available to the Commission upon request. (t) Results and data from special reservoir pressure monitoring tests shall also be submitted in accordance with part ( e) of this rule. Rule 7: Gas-Oil Ratio Exemption Wells producing from the Borealis Pool are exempt from the gas-oil ratio limit set forth in 20 AAC 25.240(b). Rule 8: Pressure Maintenance Project Water injection for pressure maintenance will commence before reservoir pressure drops below 2761 psi at the datum or within twelve months of initial production. ,JUN 2, 9 2DDt~ 34/38 I I I r ( I I I: ) Borealis Pool Rules and Aiea Inj.order Application . February 27, 2002 Rule 9: Reservoir Surveillance Report A surveillance report will be required after one year of regular production and by April 1 of each year thereafter. The report shall include but is not limited to the following: 1. Summary of produced and injected fluids. 2. Summary of reservoir pressure analyses within the pool. 3. Results of well test and allocation results under Rule 5 and any other special monitoring. 4. Future development plan. Rule 10: Administrative Action Upon proper application, the Commission may administratively waive the requirements of any rule stated above or administratively amend the order as long as the change does not promote waste, jeopardize correlative rights, and is based on sound engineering principles. I t 35/38 2 9 20G¿~ Borealis Pool Rules and Area Inj.rder Application I I I I I I I I J I' I I I I I I I, I I ). February 27, 2002 VIII. Proposed Area Injection Order BP Exploration (Alaska) Inc., in its capacity as Borealis Operator and Unit Operator, respectfully requests that the Commission issue an order authorizing the underground injection of Class IT fluids for enhanced oil recovery in the Borealis Pool and consider the following rules to govern such activity. The Injection Order area is described below. Umiat Meridian TI2N-RI0E: ADL 25637 Sec TI2N-R11E: ADL 47447 Sec TIIN-RIIE: ADL 47446 Sec ADL 28238 Sec ADL 28239 Sec ADL 47449 Sec ADL 28240 Sec ADL 28241 Sec ADL 28245 Sec ADL 28244 Sec ADL 28246 Sec ADL 28261 Sec ADL 47450 Sec ADL 28263 Sec ADL 28262 Sec ADL 47452 Sec ADL 47453 Sec ADL 28259 Sec TIIN-RI2E: T12N-RI2E: 13,24 16 SW/4 and W/2 NW/4 and W/2 SE/4, 21, 22 SW/4 and W/2 NW/4 and S/2 SE/4 17, 18, 19, 20 26 S/2 and W/2 NW/4 and SE/4 NW/4, 35, 36 27,28,33,34 29,30,32 1,2, 11, 12 3,4,9,10 13,14,24 15 25 9W/2 5 S/2, 6 S/2 and NW/4 and W/2 NE/4, 7,8 16 W/2, 21 W/2 17, 18, 19, 20 28 W/2, 33 W/2 29,30,31,32 31 W/2 and W/2 SE/4 Rule 1: Authorized Injection Strata for Enhanced Recovery Within the affected area, fluids appropriate for enhanced oil recovery may be injected for purposes of pressure maintenance and enhanced recovery into strata that are common to, and correlate with, the interval between the True Vertical Depths (subsea) of 6466 feet and 6882 feet in the West Kuparuk State #1 (6534' and 6952' measured depth, respectively). Rule 2: Fluid Injection Wells . The underground injection of fluids must be through a well that has been permitted for drilling as a service well for injection in conformance with 20 AAC 25.005, or through a well approved for conversion to a service well for injection in conformance with 20 AAC 25.280. Rule 3: Monitoring the Tubing-Casing Annulus Pressure Variations The tubing-casing annulus pressure and injection rate of each injection well must be checked at least weekly to ensure there is no leakage and that it does not exceed a pressure that will subject the casing to a hoop stress greater than 70% of the casing's minimum yield strength. 2 ~\ 2004 36/38 I I I J I I I I I I' I I I I I I I I I ') Borealis Pool Rules and Area Inj. Order Application . February 27, 2002 Rule 4: Reporting the Tubing-Casing Annulus Pressure Variations Tubing-casing annulus pressure variations between consecutive observations need not be reported to the Commission unless well integrity failure is indicated as in Rule 6 below. Rule 5: Demonstration of Tubing/Casing Annulus Mechanical Integrity A schedule must be developed and coordinated with the Commission that ensures that the tubing-casing annulus for each injection well is pressure tested prior to initiating injection, following well workovers affecting mechanical integrity, and at least once every four years thereafter. A test surface pressure of 1500 psi or 0.25 psi/ft. multiplied by the vertical depth of the packer, whichever is greater, but not to exceed a hoop stress greater than 70% of the casing's minimum yield strength will be used. The test pressure must show a stabilizing trend and must not decline more than 10% in a thirty-minute period. The Commission must be notified at least twenty-four (24) hours in advance to enable a representative to witness pressure tests. Rule 6: Well Integrity Failure Whenever operating pressure observations, injection rates, or pressure tests indicate pressure communication or leakage of any casing, tubing or packer, the operator must notify the Commission on the first working day following the observation, obtain Commission approval to continue injection and submit a plan of corrective action on Form 10-403 for Commission approval. Rule 7: Plugging and Abandonment of Injection Wells An injection well located within the affected area must not be plugged or abandoned unless approved by the Commission in accordance with 20 AAC 25.105. Rule 8: Notification The operator must notify the Commission if it learns of any improper Class n injection. Additionally, notification requirements of any other State of Federal agency remain the Operators' responsibility. Rule 9: Administrative Action Upon proper application, the Commission may administratively waive the requirements of any rule stated above or administratively amend any rule as long as the change does not promote waste or jeopardize correlative rights, is based on sound engineering and geoscience principles, and will not result an increased risk of fluid movement into an underground source of drinking water (USDW). SCt\N~~E[} JUN 2 ~ 2004 37/38 I I I I I I I I I I I I I I I I I I I ') ~~ Borealis Pool Rules and Ar~ Inje~rder Application 1-1 1-2 1-3A 1-3B 1-4 1-5 1-6 1-7 1-8 1-9A-E I-I0A-E 11-1 11-2 11-3 11-4 11-5 11-6 11-7 11- 7 A 11-8 11-9 11-10 11-11 11-12 11-13 III -1 111-2 111-3 III -4 N-l IV-2 VI-1 VI-2 ). February 27. 2002 IX. List of Exhibits Borealis Pool Location Map Borealis Top Kuparuk Structure Map Proposed Borealis Pool Rules and Injection Area Proposed Borealis Participating Area Type Log for Borealis Pool Structural Cross Section Seismic Traverse Along Structural. Strike Seismic Traverse Along Structural Dip Interpreted Oil-Down- To and W ater-Up- To in Borealis Area Wells Gross Kuparuk Isopach Maps Net Oil Pore Foot Maps Borealis Region Wells with Log or Core Data Borealis Model Layering and Properties Core Permeability vs. Porosity Crossplot Borealis Model Relative Permeability Borealis Reservoir Pressure Data PVT Properties of Borealis samples Borealis Well Test and Initial Static Pressure Data Recent Well Test Data for Well Z-1 0 1 Borealis Typical Fluid Properties PVT Properties as a Function of Pressure Kuparuk Well Tests. in the Borealis Region Production and Recovery Profiles for Primary Depletion Production and Recovery Profiles for Water Injection Field Recovery vs. Timing of Injection Drill Pad Layout at L Pad Drill Pad Layout at V Pad Drill Pad Layout at Z Pad Borealis Area Map Typical Producer and Injector Completions Typical Dual Injection Completion Affidavit Composition of Produced Water from GC2 and the Borealis Pool 38/38 'J.".."."' 0.~.""". '1 n q,~} C', (~l'; L\:}U -- tj) (:) ?;, z ~ "'L L c: z ~ ~ r'-' <C) «::::) ~~ ---- r--- ., --"- ;~_.I - - - ~ ~ ~ Exhibit 1-1: Borealis Pool Location Map COLVILLE RIVER UNIT " -I ,-..J I ¡ ..-.I "'L \"j ( , / 1 , . ¡ L.. - -...,-: ._--,., .. I - ~"'--""J " -¡ ! L,,,,,,.._.....,..._,-,_..,.,,~..,......,-,-~..._._--_._-,,,, ,.- I" --' ,.J NORTHST AR UNIT MILNE POINT UNIT -,- . fl -,'-' ¡. ~ r- - L.~_\ , F ¡ L1 I '- .L -1 , -L. ~=~ -- .. _1_, L " ~............... "l'.-J I" .'JJ \ r ,. -, DUCK ISLAND UNIT I 1--',---- . I- f'-. "ì )-----"':...."'J~' .......-" ..:J .. .. ~. r --'. '-, ,. ~ . "',,- ') , , '''V_, . . . '----- BOREALIS POOL ") ~"'''\ ~-- - r" I ...J . t r ~:. ,._-- L_d I L"L. .I PRUDHOE SAY UNIT L. ~,~ .. -_J I L, I r'" - ¡ r-' . ~~. L._J r-"~ "J KUPARUK RIVER UNIT I r ...........--, '" ..~.... . N I ! I I~ fj I .~ I I ~ ¡ I I : I ? 5 I 10 I 1)5 Miles I I ! i I ! 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(-- . !'-I t: : ¡ 1 ' ¡ . 0 AL~~RS E~UAL AREA/N:;~;meters --~_-,-L 047:54 1920 AC; °é"\65 ¡ ,,;; " "'''' i ,;;" J ?~::,~_,,6~ "'?""~-i3?;-"'--"~!!'_U;"'.~".".!J ~~~ "! 0,,:~.J;s.6~'!',2~d~ PRUDHOE BAY UNIT BOUNDARY !;¿ " 1F't 1 ~5 ,~, ;"- i <, ~" '7 ',~ ¡ ':: I 14 i ',) '''''.. 17 , : ; 1280 AC: Ii' ¡ 80 TRACT NUMBER , - ~---- . 104 ! 1 ID2 - ----1-A"1-------~ i ~O 026266 ADL NUMBER J-L) - i r LEASE BOUNDARY ?"- __L_~(J_--;" ,: lo~~_~"+::ë 04~~76 19~~ AC 047475 2512 AC ~~"~:~~--->~~~ AC 02~~5 ~~~;L~£..?~330 ~ I~ ~ ~ 7'" ¡ h -,°, ~ ~ 29 2'; -,~ ~ ~ ~-, J') ;" 1 ~6 ¡ ~é 1 07 ~ ~ BPXA Cartography/2-26-2002/lm14534pool.dgn : ---- - ---- - - - ~. - - -.-- - - --- ... -- - .... ....... ..... ~ ~ ..... ...... .-- ~ ~ Exhibit I-3A: Proposed Borealis Pool Rules and Injection Area æ 2 :z ~ ,....-.1, (;f;) ~ ~ . ('.:::;:T- . ¿;....> I I I I 1 1 1 I I 1 I 1 1 1 I I I I I I I I 1 1 I 1 I I I I I I I --------------------------------------------------------------------------------------------------------------~._-------------------_\ - ~ -- ... -- - - ~ - IIIIIII!-' ... - ..... - .... ~ ...... -- ....., Exhibit 1-3B: Proposed Borealis Participating Area (BPA) 13 I ~- 18 16 15 14 13 0 PBU Boundary 1 24 19 / 20 21 22 . 23 24 111 20 - '-' - - - ~ - . 25 . 30 29 2~ 27 2f 25 30 29 17 18 Froposed PA Boundary 19 -;J... 36 31 . !! 33 ~ 35 31 32 49 6 \5 I ¿ 3 ø~ 1 6 5 51 :iO - - ~ W 2 9 l~ 11 ~l 7 8 (t ~ );: - - ~ ~ c.;.a - 18)- ~- '-' 'Z, rrt \ 16 15 14 13 C5 - - . L- C.:: ~'::P -if=-- ~ I e.D ,\24 19 20 21 22 23 24 .0 19 20 r--' c:::> 0 -- . --- I ~~ - - - - - - - f _. - I -_.l:alluu.w.. ..:::-1 iTj f~.... BOREAUS nELD Lea.. Map of Propo..d BO~~~E~~~~ct~~'~01r8CI , .... I ... HIP-- I I I -'----,--- - 11!18' ... - - - ...,... West Kuparuk State #1 (or W Kup 3-11-11 or W Kup St 3-11-11) API: 500292001400 fJ) (j ,~ 2: Z m t:): (= c:: Z Depth SSTVD GR_FDN_S- 1 0 GAP' .;f ..$ 6466 f 6489 t I 2208 sOPO 6503 API 24.40 6526 ;> 6545 { 6591 } 6645 ~ II! 6665 10 Boil/mud 80 B water t~ 6806 6815 6838 tJ:X) N c=; t'.::JI u.f~ 6882 PERM- 1 SSTVD MD MD ILD_ILMEM- 1 DT _BCS_S- 1 1000 150 US/F RHOB_FDN_8- 1 OHMM ILD_DIL_R- 1 150 _1 OHMM 1000 1.65 G/ca 2.65 -: NPHI8_CNT _8- 1 1000 60 PU MSO 6Sno '1, . 6550 - ~~ <.. ......z= ,::;~rn-: ~ ~~J;&.i n~ -' -,--.\ ~- ..~~ . ~-~ ~. -~ -j ~ i ~ ~ .' - , . Ji : ~J~ 6500 .:> <~ - 6SS0 66S0 --=-t- 6600 ~4AC4B/C4A 6700 - - ,~. ~:~ 6750 - . (~ I - 6800 - ~ . ' - 6800. - , -. --------- 6900 - ~ 6850 " ~" '~ 6900 i'>Qc;n -,'f.,' . 7000 - . 6950, . 6600 - .~ Exhibit 1-4: Type Log for Borealis Pool 50~ Kuparuk Stratigraphy Kalubik D C1b C4a C3h C3a C2 - - - . C4B/C4A ~ Unconfomlity C1 LCU LCU~ Unconformity B AG AS A4 Miluveach . - - - ~ ;~' - .... - - ..... ,... ..... - ..... -~",", ..... NW A NWE 2-01 NWE 1-01A W KUP 3-11-11 Z-35 NW Eileen #1 -- 5::,00 ~;t_I"':i;",~;':'-' '~b ~T ,~I'~""'~';-, i '. J~ . ( ;.: -F,CJOO -- .'-- -' ~ -- ~~~ .If: -c.~:;ø(j -- - 7ØØO - --7:~Ø0 - ; , (. " , - c -( l";j (\;...0 r-v c:J c;;::> ~!~ Exhibit 1-5: Structural Cross-Section --- ~ SE A' -- -5SØ0 '-/' - -600\8 - -70130 -' 8 - --7500 - - - - - -- - - - ..,. - - - - ..., .... ...... .... ~ Exhibit 1-6: Seismic Traverse along Structural Strike ~" ''--a c: Z ~ f(J; () >- ;z z [Ð '1) .~ 0:> ~ '" C) C) ~ NW SE . ~ . ~. - ..... :tiN d!G l~lm~ru1S ~uol~ ~Sl~A~ll ~!UIS!~S :L-11!q!qXg: ..... --- .... - - ..... - - - - - - - - - ¿; ~ ('.J Gl'<Þ c-J; Z ? """') DJ """"" 4;:, Z <t: "-) fJ'JJ - - - ¡(J) () ;~ z rr~ ,O~¡ .r-' "--' z ~') j~(~ f'V C) c:J ~:~ - - - - - - -} ~ - ~ - - --- - ~ - ~I Þrudhbet~ II ! I I! I I ! I 1 ¡ I I ! I I ¡ 1-- - - - -- --- - - -..... --... -,- -... --.........'" --.. -... -... - -1- --..... --.............. --... -1-'" --... --- ----............... -,--........... ¡ ¡ <.J FBU ¡Boundary j ¡ ¡ I L' i i î - -- : : : ----- ------u_----_u-l----u-----------~------ --------~-----------------, ¡ i i ¡ ! ! ~EECHEY_pT-sT12. - - i : ! ¡ : : : : ¡ ! BEEC~_PT_ST_ll11! : : : I . e.'-- ; ___m_t:;;;;r--u____m_t-__= I Y : ¡ ~~.! ! ! --r--! !1 roþosed PA Boþndary ¡ ! -- I --- - -- - -- -- --- - -- t -- - -- - - ------ --- ~- - - - - -- --- -- - - - -- - ~-- --- I I , : : : ~ .1.' . : i i ! i ! ¡ I I I i ! i I I I I , ---1-----------------t----------------- I --- ¡ e \ ¡ i' ¡ ! Exhibit I-9A: Gross C4B Isopach Map - - - - - - , -..........-...... Il1O. BOREALIS FIELD GROSS ISOPACH MAP C4B SAND CI ;: 5' KILaRTDI' . . \I~ 1 UI~'" 1 --,,~. ,> .'/1, .I,..~,,~ r OGross Isopach Only .Gross Isopach and Reservoir Properties [)Core in Kupafuk .Ku~aruk SecUon Missing or Faulted Out Post Mapping Wells in Blue With C4 Isopach -1-. ... ,- I 1"'''--1 I I - - - -'"' . - . - ft.f) 0 ?Z ~z m ~=; ,., """~ c:: z ~ ¡;,!~ - - - - - ~ - ..... ~ - r"V c::> c:::¡ <>t::-~ . -Ii ¡ I . -' - - _. -' 1...: au fMJIMA) ... KILIIIÐIIII \ . lilY" J UILIRTIIII ITRTUTI RIU" .. . Y. j .1 .1,1mmm: KILO t BOREALIS FIELD GROSS ISOPACH MAP C4A/C3B SAND éI = 5' OGross Isopach Only .Gross Isopach and Reservoir Propert.ies IJCore in Kupafuk .Ku~aruk Section Missi or Faulted Out -J..~ I- I ¡-II--- I I Post Mapping Wells In Blue With C4A/C3B Gross Isopach - - - - - - - - - - ~ - - rtJJ (j :Þ ~z z rn ¡¡~~l . - ;, Exhibit I-9C: Gross C3A Isopach ! I ~ . ~ L C Z ,~ e,!:J 1'-' c:J c=¡ ~ - - 111M. ITRTUTI ::~~ . .I.~ . ~..K~~ NIW t . ......... UIU8AJ -. OGross Isopach Only .Gross Isopach and Reservoir Properties OCore in Kupafuk -KuIJaruk Section Missing or Faulted Out BOREALIS FIELD GROSS ISOPACH MAP C3A SAND CI = 5' Post Mapping Wells in Blue With C3A Gross Isopach -I- . IWI' l- I "'.1.......1 I I - - - - - - -.. - - - ~ - --- - <[,f) (;:; > Z 2: ~!: 1<,,' _8 , Þrudhbe+ ~I - ;1", j I Exhibit I-9D: Gross Cl Isopach Map ; I -" . -- t' '--' c z ~ Q~ f'.) c;:) ~ - - ¡;'II. ... - .lDr.:-,,¡::. fAU8W ... BOREALIS FIELD GROSS ISOPACH MAP Cl SAND CI = 5' KI..-mII . I~. I.KI..-mII ITIITUTE MILD' 1 :If.} .1 1.8InlTUT£ KIlO t OGross Isopach Only 8Gross Isopach and Reservoir Properties DCore in Kupafuk .KulJaruk SecUon Missing or Faulted Out Post Mapping Wells in Blue With C 1 Gross Isopach -I~.~. ,... I ¡-11-.--18l1I I I - ('J; ~ ~:2: Z úTt v":,, '''--0 c: z ~'i Ç,{:J 1'-' c=> C:=J ~~ - - - - - - - - - - - - - - - - _,I I I ! Þrudhbetl I r¡ I I ¡ I jl I ! ---~--___-~_m_-Lu_--~------~---~--~------~-_u--~------~------_I--__{__~-~- ..... t t I: ~ 1 ; : - ¡ ! :: !: t\ PBU :Boundary! - Exhibit I -9E: Gr~ss AS' Isopa~h Ma~ J___m____-_--__L__- -_-----L--------______l- - ~I------_____--m_r--__-L.m_-------¡---- ---_~____mm_~~- _m_---- --------------- 1 ¡ ~EECHEY_PT_sT12. - - ¡ ¡ ! ¡ ¡! ¡ ¡ I 2-0 : I I I I I - i . ¡! ¡ ¡ BEEC~_PT_ST_1Jj]!- - -I ¡ ----- m______-_! ¡: :: -------+______m______-+--)" - ¡ I ~\ ("") ¡ ¡ ¡ ¡ ! ¡ - ! soc 33-29t!8f l ! L-117! ¡ ¡ ! ! ! N1L""leen...l. ! ~! ! : ! ! ! i L-11\S ! Pro~osed PA Bohndary! ! - : ~ 14: : - 1 : ; : -- : ¡ '. L 1. -----------------t-----_u_--------i-------_u_-------i----- _--in---------------- _n_____----------------------------,----------------- I --n_U I I I " : L-114 ~t Oail I ::: - ¡ ¡ : 13; -! f 1 ! i i ¡ i. !. i : ! i ! I I 'I r-l-01 1 I : I I i i \ i.~~ i i I : ! !; i . \- : ¡ i i ! - : ! . LOIAO : .-if.7 I __-.lm____---_u--__~m__--m----n_+--- '--1------------------r_m__u___m ¡ NWFLl -----~=J1~-~----mu___- ~ --_n _---m--1::,---___m_m ¡ ¡ ¡ : i ! 'L ; i ! i : I I I U .. I I ! ! W_SAlL24£f1 W_Klf_3_1Lll ¡ !!! - I I I I I I I . I I I I I I : :: ::::: .- ..J_----------- -----...1------ ---- ----- -1----------------- ----------------- -----------------+-------- --------1---- ---i-----------------t------- ----------~ -.. -- - : : ~ ::::: I I I f I I , I , I I 'I I I I I I I " I I I :: :;:;: ( -: :: ::,::: I I I . I I I ¡ : ¡ ¡! . KUP _ST- I 12- ¡ : =_1______-----------1.-------------- !----------------- Ii ----____---_m__¡---m__mn_m : -----~~\.J- ----- -- __+_m ---------- ~-_:- - : : :: :: 8: f I - i i . i i j CHEV_18_1b-1 i : : :: :::: -SPO I I I I I I Z 35. I I ) - i I i t- i! -! , : ", - I__m______-------L------------J -~_:=---------L-------__m_- ! I --__~=~_m__¡__" ~~~--" --, --~ - : ¡ ¡ ! !! Z-06. ¡ . ¡ ~ W -2~Q... I I I I t I I I I : : i i ¡ i <I i -030 i i I I I I " I I ~' I I I I I I I I I - I I I I I I I' I - ---J-T-- -T-----r~-----T------r----tT-----T--- ---'--~---ï -----T-----~------ï-----ï--+-ï-----ï-----ï ----ï----ï-----~ï-Z:16Õ--ï ~----I- -----1-- _m t--- - - I''''. ITIITIIU ::=- ~' " .Vl.¡r ~.IKII,;:::n: WILD t ............ CIU8W ... OGross Isopach Only .Gross Isopach and Reservoir Properties CCore in Kuparuk .Ku~aruk Section Missing or Faulted Out Post Mapping Wells in Blue With AS Gross Isopach BOREALIS fIELD GROSS ISOPACH MAP AS SAND CI = 5' I"" I 1""11........1 I I -I..~. - - - -~ . '-" . - - - - - - - - ~ - -- - -"!III - - - (1) - \ ) "¡-... oP. Z :';7 m r: C- c: Z -' - I : I , I , , --L~------~------j------~-----------1----= I: I :----_____--n__- : PBU IBoundary : '-----------, , , , .------ i i \) : -w.. - : I : I I , ' , , i ---1------ --__--+__m__---_m__, t-_m__-__---- i ~-P'UTi'.-- ' , , , I I I I I I , , - ' ": ST JIïI , " ': "'CmOLPT.. - , ' ¡! i j --------\______m___------1---: ' " , " ' " "': --., " "', - - ! NWLILO, ;, ;!; ¡ ¡ ': ¡ i i ¡ --, , "', - :1--------------- ¡ i i PA Ðohnd.ry i m_m_--m_+m -. -; ¡ PrO;'OSed, __m_-------1--- ¡ - ' 33-29~ mUIDeeLI. , r _--_---m_---1m , : ; , L -. " --- ¡ i ; - ; : 1.', ; ¡ ¡ - ~-1------_____m---- i --m__----m_t-___----~~;;-- :: ',~' ___m__-------1---m--- m ---I_____m_--_m_-lu_-_m___--_---+--- - i i L ~'?__+____m_=b--U '~ i ¡ ¡ i " L-,'D ': ': ¡ _Lm____m_-- , l1li s ;; ; m- - ñë_n:ãIi!m- - - : ------..------- : : ....... . ~rll 11~, , V- DO ,- ,m-_-Aj;a or Y Product....". ,-or ;; -""!' - - '-, ;~. ',,--- - ,--u, NOPF an IoUon ."....< ' , : '""', '" , '-- --------1--- . , :, 'In\er¡u-e I log, "1"'-'- -- ; l ''-SAIL.., " ---_--___m---, ' , . b~ .1":": da'a, i ' " ----, '\ 'Û1./ I - ! ! -m-L----------_m- -------- , I' : ! ' , 1&0' . \ j ........ L: ' L_m--m_, '" <¡JP..ST_7_1,1~..... ..'. '.-----------' Lm--___-------- ;; , .. I' " ,: . . I I ; ¡ . . ' . : , ;, . ," :, ~' - ~-: " '¡ '. . , , , '\z 1 ." ,/oPF: eO. I C' ", ' ; ¡; ;. , ' , . , . . . .. :', or: " "-.þ. " " " " ", , " '" 12. " , - , , : ~;, :, ' , , ' , , "¡' ' -~J 'i I! ¡! , . ' :- ' , , " , , ' , I ,I, I I ' "1 , ' , - ----, 'I '.. , , ¡ !',. , : '" - , -..L..----------- " . ," I I -: . I ' ~ ", ',' ¡ I I . -~~- L--m----_---- , ! I I : - , , , I, 2-0" i Z4! '0 I I . : --- : , !: . , ' ".. :, , , II , ~ - : , :: , ----," 'I, J ! ' 11'-" Q. , : '-, , \ d t ~hows 1 . '. . : . : I -1_: .. , New core ill 1 S th6.~-uf. . ~' . : ' " , NOPF, t", , , - ¡ : j _m_¡--____m___----- I ! ~4tB foot. l!.a C¿'IiFOU. <t', H". ¡ - j::::--:::::::J:::::r:::::::::l::::::,::::__-J_m,_m,-J------I----It:~:----ï m,___--,---¡;i-¡SQ 1: T--~---m_,-__----r'" - . i 1 - - ¡ I I ! Þrudhbel~ =i i i / Ex11ibit I-lOA: Net Oil Pore Foot Map C4B -' . -~ ~ 1;.[:> "" C:J {:::¡ ~~ - . -,-aJl..I,all.......... BOREALIS FIELD NET OIL PORE FOOT MAP C4B SAND CI = l' + OGross Isopach Only .Gross bopach and Reservoir Properties OCore in Kupai'uk .Ku~aruk Section Missing or Faulted Out Post Mapping -,.....# MILØCTIIII\ I~ .&aUI~ 8T1ITI/R MIWI . .} - '!f. ./1. ~ .1,11'1I111III MILn Wells in Blue With C4B NOPF l- I "'........., I Î - - - -- - --.:!!I - ;1 Exhibit I-lOB: Net Oil Pore Foot Map C4A+C3B Þn~¡j ! I (J) C} ~ ,~ (2 [[! t ~J I! I I 1 Iii I I ! I I ¡ 1-- ,-- --- -.. ---...... -........... i- - -- ----... -..... --... -- -1- -- -........... -- --- -- -1-"'''''''' -- --... -........""''' -1-"''''''''''' ! ¡ c PBU !Boundary ¡ : : : : ! ~ i -..... ! : : I I I I I I I I I - ¡ ¡ !! i ¡ tJEECHEY_PT_sT12.- ! ¡ ¡! !!! ¡ : NWE 2 01 :: :::: - : - - I : ¡ :: BEECHEY_PT_ST_11i1! ¡ I ! I ¡!!: - ¡ I' ---______m_-- ' ¡ ¡ . ¡ ¡ -------r---___m_----T-m - : sac 33-29. :. I:: ¡ : ! NW_~eeIL1. ! ¡ ¡ ¡ I I I I , I - : ¡ Pro~osed P A BOlmdary! ¡ -- __~n - 0._--- --n--_-- I _0.--_0.0.-- --~---"------------ ' , - - - ---- ----- -- --- t--- ---_0._-_0._-1------------------1----- - :: i L-1 1 : : i ¡ . ¡ ¡ i ¡ ! ¡ I ! ¡ ¡ ! ¡ ¡ ¡ ! ! ! ! ¡ ¡ - : : .._-.¡-----------------,...-----------------+---- -T-------__m_--r------------- ¡ ! I ! -I ¡ UAu1 ¡ ! i : : : ---~---_..__..._-----_..._}-------_..------_.._~--_.. ....-.J--...........--------...........-----..-----.....---...------ ~-_.._------ I I I - - ¡ ¡ ! ¡ ¡ ! I J , I I , ' ¡ ¡ i - i ii- : ~ ~ : : I I I I I I I I I I ~m__hn______-- I : -----------------'f----______m___- ; n___~-ï¡~\~------- -- --+--A---___n-------1---- f: : 111: : : I: :: CHEV_1B_l:1_12- : ¡ ¡ ¡: ¡ ! -2PO :: :: Z-35.: : : f :1 ¡ ¡! ¡ : ¡ - ¡ ¡ ¡ !! Z-OB.! ¡ J ------- - --------- ~- m_____----_mf- m__-___---- - --t----- ------------ I ; i-- n_--______n_-t-_- -Z=-2Q'ö -----------W'::':3~:': I I I I " I ' I . I I Z-06. I I I ! ! ! ¡! ¡ ¡ W-2~Q.. I I I t I I I I ¡ ¡ ¡ ¡ ¡ I ~ ! Z-030 ¡ ¡ - , I I " I, I I t I I I , f I -T- - - - -r i-- - - T-- - 0. T - -- -f "1- - -- uT -- -- -y- t-_-"lm -- i - - -- --t - - -- - - i - ---- -¡---tï- - ---- ï -- - - - ï --- - i -- - - - ï-- - --1¡ - - z:'1šo - -- i - - r - - --,._- - - - -,- - - - - - - f - -- - - - - - - - - - - - - ....þ: ............... CAU8W Il1O. OGross Isopach Only - .Gross Isopach and BOREAL I S F I ELD Reservoir Properties DCore m Kup~ NET OIL PORE FOOT MAP -Kuparuk Section Missing C4A/C3B SAND or Faulted Out C I = l' . . r "-- C Z ~ - - .~ ~o f'.) c::> c::3 ~ - f KILIIIIETDI,. "'.\'" J IKILIlllnØI mrrun "ILEI~ .~..I ~ .L .1,"TRlm "'LEI Post Mapping Wells In Blue with C4ajC3b NOPF -....,.. l- I 1----. I I - - (f',P") ("': "t~ :ž ¿: f:g (~- c= z ~ eíLI;:) f"0 c::J (':::3 ~ - - - - - - - - - - ~t Prudhb11 + I L-~------~------+------~------~--+-~------~-----+----~-------'----F-= - : : :: I: t : - - : ; :: i: ~EECHEY_PT_ST~2. - .... : : ; :::: , NWE-2 0 :: I I , : - ¡ - , : ¡ ! ¡ BEECHEY-PT_ST_lliJ: : : ¡: i::: -8 a--------------- ' '. '- ;; ..-----_ut----_u__uu_-_ut----- ! : i i::: . I tit . I - ! sac 33-29F3J ¡ ! L-117: ¡ ! : ¡ i NW_~ileeIL1. i ~! : ! : ! I I I I - ¡ ¡ LÕ~11¡5 ¡ Pro~osed PA Boindary ¡ ¡ -- -... ~_........................ --......... -I .. --............. --.......... -- ~ -_............... -- --....... -, -~........ --.." --..... -.. --... -~...... -_.... I .... --.............................. t.................... --... --- -1- --............................... -1-"""'. - ¡ ¡ ! Lõ\14 ~!!_oat] i ¡ ¡ ¡ :: :. :. ! . : : : :: : ¡~1: : : : ¡ !! i -. i i ! i : i: ! . - ¡ : i i ! -: - ~- - - - - - - - - - - -- - - - - - ~ - - - - - - - - - -- - - -- _1- 0 ~~ ~ - - - + - - - - - ---- - - - - _.: =ïW.I- -- -- -- - - - - - --- 1- - u - - - - i- - - - - - - - - - - - - - - - -r - -- - - - - - - - - - - - -- -f - -- ¡ ¡! L1~iO e¡ A ¡ ¡ ¡ ! ¡ ¡ ~ ~ j<{ ¡ ¡ ¡ ¡ ¡ lLSAlL24£fJ lump ¡ ! ¡ ¡ :-J., - --- --- --, ------r---------------' 1------ ,- ---------, ----------- ------ ! -'=l-----¡-------- --------1-- ---t------~-----I------------------I--~ i i! ¡: KUP -ST- ,128 i i .--i------------------i--------------- ~-----------_u_--~ ~', -,.,','.-,.',',",',',',',-",,-,-, -------+---- i -----~~J!,\i------- -- ---j---A---------------~---- - ¡ ¡ : ¡ \,.t ~ ¡ CHEV_18_1~_12.! . ¡ ! ¡ 1 12{Q] ¡ ~""",,",:,",:;,.',.,,',;,:,.,..,.,.,",'.'..,:':,',--,'.,'.','',-~",.""." ¡ ¡ Z-35.! ¡ -2~O- ¡ i i -.; ~:.~_:u<~_::,-_:> ¡ i ¡ ! i . , , . ,i/ I I z-oa. I I . --- ----- --- _un__~__----------- - --- t- -_u_____n____-tn- -----_u_-----' ; .:. -----------------t-- - 'Z':'-~qLÕ-_- _u_- ---W':'"3Jjö"::': ! i : :! Z-Oe8 ! : ~ I ! ¡ ! ! ¡ ¡! W-2rQ.. i ¡ i i ! ¡ <1 i Z-030! i - i : : ! ¡ i i:: - : : : : :: : ~ : - - - ~- - T - - - - T - - - - -- r ~ - - - -- T n- -- - Too -- t - r -- - -T--- - - r t -- -T- - - - ï -- --- -~ - - - - - - ï -_u ï--- t - ï - - m - ï --- -- -,- --- - - i -- -- - - ï --- -1 ï - - Z:'\60n - ~ - -¡ - --~- --- ---;- - - --1--- . . KIUlllrrra \ ' - "'r , J UILCIIIEmIS IfIlTUTI "ILEU .;1 ..v .. . .1 .1.U'"TUft .'La t - - .. . 8III'LOIIIIIOII CAU8W Il1O. BOREALIS FIELD NET OIL PORE FOOT MAP C3A SAND CI = l' OGross Isopach Only .Gross Isopach and Reservoir Properties CCore in Kupei'uk .Ku~aruk Section Missintl or Faulted Out Post Mapping Wells in Blue with C3a NOPF -. ...... I- , "'_1 I I - ({J) (';r ~~ Z z, m r:; L C Z '!NT ~~ ~ C'.:) c::¡ ~ - - - - - - - - - - - - - - - - - - ~---_._---------- - ~! I Exhibit I-IOD: Net Oil Pore Foot Map CI , . I I -----_-f-__m__m_m_-l- fEECHEY_PT_ST128 - I I BEEC~Y_PT_ST_1~ ¡ ---- --_of ----- ---- ---------~-- --- f I , , I I , I I I I I I , f I I t I , I I I I I I , I I I I , , I I , I I I , I I 1 , I , I . Pro~osed P A Bo~ndary ¡ ! r f I I - --... --- --........ ---... -1---"'''' --... --............... -1-"'''''''''' --............ -- -- -- -1-"''''''''' i : i , I I ! ¡ i , I I : : : I I I : ; : I I . - - - ~ - - - - - - -- - - - - --- -+ -- - - -- -- -- - - - -- - - -t- - -- I I I , I , , I I , I I I I I I . I I I I I I I I I I , I I I I I , , I I , I I I I I I I , , I I I , ......... ~- --... ---... --.....................}........................................ --...... ~............ I I I I , , I I I I I , I I I I I I I I I I I I : : : - I I , t ! ¡ : : -- --roo--m------] ! ~2~O~ I I , I : : u2õLõ - - -- --- - - _ow =-"3ti"ö:: : ~ ! W-2~Q.. I I I <I ¡ i : I I , I . I : : : - I . I I I I ----ï~---ï-----1 ï-z::'-iijõ---~--r---~---_U_;------f--' ~ Þrudhbe+~ ! ( I i ! J- --__m___-oo---r----_h_------r---- ~" I I I I I I I . 33-29. ¡ ¡ L-117 ! N1L$leen...1. : 0.5 : I '. I ! L-11:S ! : 0: : - - - - - - - - - - -- ---- - t- - -- - - -- - -- - -- - -~-~ - -- - - - - - --- - - -- - -+-- --- -- ¡ Lõ~d 4 ~'_O~ i : .: . : . I . I I i ~O1! ! ,. I I : .; : LOlAO ! -167 ! - -- --- - -~ -- -- - - -- - - - - - _.: ~a:J---- - - - - -- - - - - ---1-- - -- - - - -- - -- L-~10 . I d2 : : , ¡ ! 1L¡rup_3_1Lll ¡ ¡ I i V-100 : 0.6 -----------------t ---- ---- ------ --1----8------- I I I I I i . NWL 1 1111 . - - KILGRTUI\. . II~ J UIIÆITID Imm IIILn, ..1 .\ ./1.1 .1.' lmuTE KiLn t _. -"",..;-...::UU8W-. BOREALIS FIELD NET OIL PORE FOOT MAP Cl SAND CI = I' OGross Isopaoh Only eGrOS8 Isopaoh and Reservoir Properties CCore In Kuparuk -KuJ»aruk Section Missing or Faulted Out Post Mapping Wells in Blue with C 1 NOPF l- I 1-."'-' I I - ~ c z ~.:> ~ I".') oC:) c::.; ~ - - - - - - - - - - - - - - - ------ - - ¡ prudhbel fJ¡ , I I : i I I I - - I .-, i I I I I :1 j I .------___--_n_-l-_m_--_mn-T~m_--;~~~:~~~_nr--- Exhibit I-10E: Net Oil Pore Foot Map AS I i ¡ , c- I I 1 I I f I I - - : : : : . : : : : ! ! ¡ ¡ !! $EECHEY_PT_STJ.Z8 - - I ,. I f I f I I " I I I , - ¡ NWE_JL01 ¡! ¡ ¡ ! ! ¡ , ¡ ¡ ¡! J BEECHfi:Y_PT.-.ST_11i1 ¡ - - -: I: ---_n____mu : :: :: -----__-t_m__--m___--_-t---: - i :- i ! i : i - ¡ sac 33-29E3': ! L -11 7 ¡ ! ! ¡ ! : NW_Eileen-1. : 0: : : : : - : ::.::::: - : ' L-11'5 ' p'. , , ~-~- - -- - --- - ----- ---- -- - ----- --------J---- ----- ---- --~!~l-- ---------------L--n-- ro~~_~~-~--~~-~~r~~~~-------L---- ------ --- --- J---= - -¡: : L-114~1fo'-' : ::: I: : 0 ~"ff- - qrJ : ::: :: :. :.: ::: . I I' I I I I , . I I I I I , I I :: : ~O1: : : : : I I I t I If' 'I I I . . I I :: : .: : : : : -: - ~- - - - - - - - - - - - - - - - - - ¡ - -- - - - - - - - - - -- - L 0 ~~ ~ _u I - - - -- - - - - - -- - --::JÞ Zoo - - - n - - -- - -- -- ~----- - - --- - - - - - - j -- -- -- - - -- - - -- - - -L - - - -- - - - - - m - - - ~ --- I I, I I I : I I ! ! : ""'""l.rm L-h10 e¡ : : ! ¡ : : ! J., nJ:.....IœJ E : i : : : : : : ~ r I : i : : - ¡ ! W_SAIL2~ W_Ktf_3-1Ll1~¡ ¡ ¡ ! ¡ i i i . I : V-100 i ! : - - :.: -1- - ----- - - --- - -----y______n- --- ----t -- -- - ------------ --- ------ --"---- -----------------+-------- ------ --+--~¡;------- n_t-___------------t-____n_- ---- - ----r---- I j i ; i i : i - i ¡: ! i I ~ : : - ¡ : i ¡ i !!: - - i i i ! I !: ---i--______n--------in_----__--n_- ; _nn_nn ---_m~ II _---_m__n____-t-_n__m- -- '! __+_.;_n---_m_----in: - - I: I : I ! ! ; i ! : - i : :! ! i : : it -1~ ! i : : : i i i --- - ------------ -- i------ .._---------~- ------- ---------~--- ---- -------- -- : : i i ¡ : : i ! ! : ! ! ¡ ! : : ' I I : : i : i t i i i i i -r-----r1-----r------ y---- t-r-----y------r-t---T----ï--_mt------¡-----,---tïm_--ï-----, - - KILGItmIII, . IO'Y" 1 IKILe_Tat ITlllUrI! KIW~ :. .f}..~ .I..mmm RI..., t "iii .""::'WMW"- BOREALIS FIELD NET OIL PORE FOOT MAP AS SAND CI = .5' OGross Isopach Only eGross Isopach and Reservoir ProperUes CCore in Kuparuk .~~PF~~e~eö~ïn Iliøsing Post Mapping Wells in Blue with AS NOPF -,-.-' l- I 1-_1 I I - - - . ~ . - ttJ.¡"; () :1"> '2: ~ L (P-- ~ ~ ~ N C) ~ .. - .. - - - - - - -- ... - - - - - - [1 Þrudhbet~ ¡ I I ~m~____---'_m_Jum_~_m_-~---L~------~------L---__'____m~---L~-= - Exhibit II -I: B~reali~ Regiqn W el~s with log or :core d~ta !U ~oundary 1 - -- : ; :! :! i L- i : !! ¡!; - i ! ! i ¡ i ! - - -- - - - - - - -- --- - - -- 4- - - -- ---------- --~ - -- - - -.- - - -- - -- - - ~---- -. -- -- -- -- - - --~ ----- - -- ---- --- -- - - - - - - - - --- - - - - - - .{-- -- -- - - - -- -- - - -- -.:- -- - - -- - - --- - - -~ -- -- - - - -- - - --- - -- ! ! i! ¡ ¡ i ¡ - - ¡ ! !! ! i hEECHEY PT 81128- i i ¡ i ¡!: - - i : :: :::: ! !! ! ¡ BEEeHf:Y_PT_ST_1lïI! - ~ I II __--_m__-:: ~-- ¡ ¡ ; ¡ ¡ --------\-----------------t---- : NW_Efneen...l.:::::: : : 4-1178: : : : : - ! !! ¡ Proposed PA Boimdary ¡ ! -- __1- - - - -- - -- -- -- -- - - -- -.. -.- -- -- - - - -_t - -- -- -- - .1,,:-.1.1 :i_!.t_- --- - --- -- - -- -- _1- -- _n - ' ---- -- -- - -- - _n_- t--u- - - --- -u -- - ~- ----- - -- - - -- -- --- i - ---- i: i; i :: i - :: : ~LOa:tJ: ¡!: ! ¡ ! L-11".L-Q68 ! ! ! ! ! i ! . I i~¡ ! ¡ ¡ ¡ : : \ ! L-01. i i ! ¡ ¡ . I f I , , I : -i- - -- - - - - - - - - - - - - - - t - - - - - -- - - - - - -- - : L 0 ~~ ~- --+ -- - -- -- m~ ~-1-~;- ¡- -- -- - - - - - -- ---- - 1- - - - --- -- -- -- - --1-- _n- - - - - -- ---- +- - -- - - -- - --- - - -- - t- -- : ! ! NWELI 1111 : : ! ! : i ¡ ! ! '\) L-110r i ! ! ! ! ! ! 1LSAlL24lf1 W_KUP_:LILl1::! ¡ ¡ - I I, I I I . , . ¡ :! I ¡ ! :- ¡ ..__J_- -- --.. - ----- ---- ..1---_-_----------1----... ---- -------- --------------- -- -.---------______1______-- ------~------ -- ---J---------- -------t------------_... ----t-- - R -- - ¡ i i ! i : i ¡ - R, :: ::::: : I I::::: - I I: : ~ I t I I ! i ¡ : '! , i ! .! - ¡ ¡ ¡ ¡! - KUP_ST- 11-128 ¡ ! - ¡ ¡! :: I .:- u! : - =_¡--____m______---¡--_____m__m : m-____m_____- ! I' m______--------r--------------- : -~~~t::- -- mrA---------------;---- : : :: :::: -2bo : I :: :: Z-358: : P - i : :1 -1~ ¡ i i i i i - : i : ¡ :: Z-008: i ¡ I I I I. I I . -- - - - - - - - - - - - -- -- -,- -- - - --- - - --- - -- - t - ---- - ------- - --- ~ -- --- - - - - --- -- - - - : --- --- - - ---oo- _n t--- "z=~Q'õ- - - - -- - - - - -W'=-"3t¡õ"::.: I : : ¡ ! ¡ : : : , : I I I I Z-OO. : : I - - : : : ! i i :: W-2~fL : : ! : ! i <l i Z-030 i : - : : i i !: : i i i ! ! i : i ! i i - I I I I . I - . I I I - ---,-- TOO -T ------rim-T-----T-mt-r-----,------rr--.m- --Tm_-t------ïm--ï--Tï-------.-------.- _mïm_-ï----1ï-z':'1ëom~--r---~-------;------r-- - KILCIIIETI18,. tOlr. J UIL111111D18 1 - "~, ., .v ~ .1 ._-,,~ r _. _'1"._. a:1 fMJI8(A) IIIC. OGross Isopach Only eGross Isopach and Reservoir Properties DCore in Kupafuk -Kuparuk Section Missing or Faulted Out Post-Mapping Wells in Blue BOREALIS FIELD HELL DATA OCTOBER 31. 2001 l- I 1-11_-- I I ..... - ~ . .,-,.' . - r{j} <t';i :¡.") Z Z rn r~ ~ ..p.~ :z ;¡;"þ ~(? f'V C) c;¡ ...[..:.:r - - ... - .... ... - - II!IJIIIIIJ .-r - - -- - Exhibit 11-2: Borealis Model Layering and Properties A verage Properties by Simulation Layer Layer Zone Porosity Permeability Gross Net Pay Initial (%) (md) Thickness (ft) Water Sat (ft) (%) (*1) C4B 22 153 29 20 32 2 C4A 22 216 13 13 27 3 C3B 19 5 15 11 48 4 C3A 18 7 29 15 51 5 Cl 18 21 17 10 47 6 A5 19 60 22 11 54 (* I) within interval above the oil-water contact. -- - - '- '_J . . ~ -,- - 3300 6200 3350 6300 ---- )t( 6500 - WKup31111 6600 - 0 > J- 6700 - C/) Cf) ~fJ (-; :J;7 Z z ê, it=> !Ÿ"~ Z 6800.. 6900 - ~ 7000.. ~;:; f"'V 0 <::::) ~;~ 71 00 - '-- - ... - - l-- ~ - ...... - -- ExhibitII-5: Borealis Reservoir Pressure Data (solid symbols typically show data >5 md/cp mobility) 3600 3650 3700 Pressure, PSIA 3400 3500 3550 ~~;;;:WE 1-02) C-Sand, Pass1 and 2,Iooks like BAD gauge. "\.~ n NW[1 - -@'>":';'~'~~~'Y- -- _.,.m.,,' ,-'" _.~ '-- ---- - "-,,' 7200 ._----'"---'''-'-'''---'---''.'''''-'--_.'"-----~---~-_._'--".,,"-,~------_.,-~--~~-,_.._-~~"----_..._--- 3450 L-101 static pressure 0 1-01 C-Sand - 3750 ...-' 18!!1!!18 1111!!111811 ,---- NWE 1-02 2nd pass NWE 1-01 C- sand NWE 1-02 C- sand . NWE 1-01 ~ Sand trendline=.345 psi/ft C-Sand .44 psi/ft A-Sand .44 psi/ft Z-101 RFT .. . -/ . . <> )K WKup3-11-11 0 NWE1 0 V-100AII ~' . V-100 MDT .. sand Good X L-116 - - - - -. V-100 fitline .33 psi/ft ~:. L -116 > 5 md 0 L-117 @ L -117 > 5 md )K Static Data -- Surveys .... {(J) :(j > Z ~ ~-s c: ';Z ~ .~-::> ~ <::j ,,,t"~ - ~ ...- ~ .... .- - ...... ..... ...... - -- - - -- ........ ~ ~ Exhibit 11-6: PVT Properties of Borealis Samples Oil Formation Oil Volume Viscosity at '~.;;¡/ Bubble Bubble Factor at Initial API Oil Point Gas- Point Initial Pressure . Sample Depth Pressure Temperature Gravity Oil Ratio Pressure Pressure tvdss psia of scf/stb pSIa rvb/stb Cp NWE 1-02 Surface 6400 3444 151 24.4 471 2950 (* 1) 1.227 2.30 V-I 00 MDT 1.11 6610 3442 151 24.1 457 2761 1.230 2.97 L-117, MDT 1.08 6479 3411 154 25.1 415 2505 (*2) (*2) (* 1) by analogy, not measured (*2) analysis in progress . ~ (C¡'1 (""1 ~ Z rr~ \~i (~ -- z: ~ :'..t) Ñ C) c::3 .;,~ ...... -- ..- ~,~ ....- ~ ....- ~ ......-- - ~ .......- - - ~ Exhibit 11-7: Borealis Well Test and Initial Static Pressure Data " w . '. 'w.".''''','-v.'',",".'.'...",.-.w.".'.'.".".".w.w... . ,- W.'."'.'.-AW",',',".',".'''.''"',",,W.".'."...W.W.','.".'.".W,",',','",.W."."."''''''"'"'''''"'''W'-W'''W.',"'''''''''."""'.W.'N""".'''.W,W,W,"''''''"''''''''''',',".W''''.".'.','.'''.""''''''''''','",''',W',''',",",''''''.','.'.W...-N.W.",,','',' ,...,...w'.w"''''.''''';''....,..,.W'''''''W'''''w.'.'.".'.".w."..,".'.".....'.w.',','.w.'.w,",",W'"'N.WN-'."."""'.".-,'.....W.'N"''''''''','.."".''''"'',",",',",w"'''.w.-.w"",,,",,,,''.'...w.w.';.'...'...w'''...........,.w.,.",.,.,.,.....,...."""".WN',"',',"'''''',,,,,''''',,,,...".w.'''''Awn.... Well Test Data : Fluid ¡ ¡Water ¡Water; ¡ Wellhead Wellhead ¡Gas Lift 1 'Rate !Oil Rate ¡Rate ¡Gas Rate ¡cut IGOR 1 Pressure Temperature ¡Gas RateOil API Open" ,.'(bp~). "!(~!~p~}.,, ¡(~,!~Pd)""¡,(~~~,tp9!,,,¡~,!~t "^,,,J(~?f~~!~t,¡chOke ,(~~ï.~L,.~.., (~Lh"''''h'hW'''''''''''' 1(~~,~!p~~,J§!~~!X"" ,~,~!,~,~~~~2,,1 IWellDate . , rC=1ÕÖ' :""'1h1í2SJ¿Ob'1 "3875'1"w""3815 60 2027 2%1 ~~~~T'~;~~l~~~'" -'1~~~-'-"-~F-J~~I.'l*'" ¡~:~j~"",~~.!?~~9g~"h"~~~~ "~",,,,.,~:!~~1,, "'h~?~jh'h'hW"h?g~,' "'2% ,"h , 1~-11~;" 11/2~,!?Og1"", 54~,1 i ".,,~~~~J, ..",.."~[.,.,,,,,.g,~Z? "~:^~~hr-::h'^,h'hh"h'" ¡L-116! 11/23/2001: 5343; 53431'h""h""~" hg~~1 '" ~!~L, !'~:,j.,?~,...."."., ....:.....:,~ 2j6/~~Ö 1.:", ,1: ,1'~h~:.j', " ' ,., :~~~,t^:h"h""~~?"_^Whh""""h"g~.Z. ,.,...?Z~;,..,..^.. , .."".., '''''MWM'''''-'W',-,WoW,'::''''''''',,,-,,,-,,,.,,,,,,, h"''''''''''''''''''''''''''''h.,...,.....,,8 'h'h"......,..,..,.",,,.,...,...,......,,g.1.,..,.,.......,..."""...,~.~,:.~ """"""'W"'h~hN,^""^""'"'''' 9~ "h,g] , "u,?~:^" ",,. "n ~"'m"" """""""'h'W~~ ; ,~L, h 27. 1 ^W"".",~"""J 104 OJ 2 . c I "h~:'~:",~:~,~"~~~i:~~I::':":"::~"~":::::::::::,~:[:':::~:~'?,::"""W~h,~"Mhhh"'¡ 101: 01 26.0 c ¡ . . ,. """'''''';'h'' ."'''''''h'Wh",''W..."."."."J""".,../.",,,,,,,,,,.,.,,,.,,, hh"""'hh'W'''"'W"",w~~,Lw'hh'""h~,~ggJ""",^"^,ww^,, ,,~:,,~6~'~,] Initial Well Pressure Data 'r ""F)r~'~sùre 'w Tempe';;äiù're"'iw ! at 6600' t\.dss at 6600' t\.dss . , : Well ; ,(p~i.~), " .' ... (FJ :k100..j. :L~JqJI ' 'L-107 L ;,L.. ~ 1 J ()l L~1~4.J ' :L-1161 .~~1,Q1I.: : 3330 ",'............'.......... 3467 3460 3408 3442 3470 . -,..........,,-,.......... 3386 158.6 .. ........ ,......'" .. 158.3 . .~ ,. H"" "., "M' . . ,,' 156.5 158.0 ,- ,'A',',",'.,".U""""''" 160.0 .. . .,,,,. , 158.2 151.6 ¡Date . .... .....". "'>'A"".W.w._..,._....._.._..W.'A"~ 11/30/2001 ¡ . . ,- u '. '.- ... .......... '.. ... '"'''''' . 10/24/2001 ; > "'''''''''''''-'-'-','-'.'''''.'''''''','-'-','-,','-w....,'",,,'-"."-''': ...~ " . W?9/?991 ¡ : 9/17/2001 ¡ . "'''''-'''''''''''''''''''W_W.'''''''' " . ~(1~(?,QQJ,' : ,JJ.!1.,~!?9QJ, . , ~{12/?'QQ1, j ~ . .~. . -------..- -', ... ~ .... -- - - _1 - ......, ..... r:J? ~j .;;ø ~ ?: ffi l::: L, ;r'-' "'-- Z :N) ~ r" c:J c::) ~ Exhibit II -7 A: Recent Well Test Data for Well Z-lO 1 ~~~ft-p:~~~~¡IT~t*~I£Þ~~~~~áutpct" TGas~~~1~~hÆE~h~~'c' nj~~~~£!É1 Z~101 ; 12/23/2001 810) 109 87 , 91! 1,~OO '",',',' 1,504" 176 64, 31? ,,?~101 . i ,':1!2~j?Õ92"" "98S' ';" ""~,9 ,':',92 ',' '" 'g9'i,"",'"J' ~.:.~:9QQ':," :¡," ',:::',:::'::,u'''':'::':',',:,,,'.':ii~'.'''''"::'i,,.w:,'63"" ""'296'"'''' 18111!!!!!11111 '~ . . ...... (fj'; (/ ~ ¿E:: ¿~ rJ, ~ Æ-- ,'-- :z ~ ~o N c:> C) ~'S'J ...-. ~ ..- --- --- ..-. ~ .-- ............ ......- - - - ~ Exhibit 11-8: Borealis Typical Fluid Properties Initial Reservoir Pressure at 6600' tvdss (datum) Bubble Point Pressure Reservoir Temperature at datum Oil Gravity Reservoir Oil Viscosity Reservoir Water Viscosity Reservoir Gas Viscosity Solution Gas/Oil Ratio (Rs) Oil Formation Volume Factor (Bo) Water Formation Volume Factor (Bw) Gas Formation Volume Factor (B g) - 3439 psia 2500-2950 psia - 158° F 24° - 28° API - 2.3 to 3.0 cp - 0.45 cp - 0.02 cp 375-475 SCF/STB - 1.23 RBL/STB - 1.03 RBL/STB - 0.885 RBLIMSCF - - - . ~, . ------'-- -- -- - '.... - -- - 111!1181 Exhibit 11-9: PVT Properties as a function of pressure (typical, after Well V-IOO analysis) Oil Gas Formation Formation V olume Volume Solution Oil Gas Pressure Factor Factor GOR Viscosity Viscosity (psia) (rvb/stb) (rvb/Msct) (scf/stb) (cp) (cp) 15 1.037 121.603 0 12.44 0.009 300 1.073 8.047 72 8.14 0.010 650 1.111 3.993 153 5.16 0.012 1000 1.140 2.702 220 4.29 0.013 1350 1. 164 2.058 276 3.81 0.014 1700 1.185 1.670 332 3.40 0.015 2050 1.206 1.410 382 3.09 0.016 2400 1.222 1.222 419 2.94 0.018 2761 1.239 1.076 457 2.81 0.019 (*1) 2950 1.236 1.013 457 2.85 0.020 3100 1.234 0.969 457 2.89 0.020 CffJ 3442 1.230 0.885 457 2.97 0.022 ~ --.!:I ¡. :Þ' 'Z Z (* 1 ) V-I 00 bubble point. ffi P""'~~ ',~- ~ c:: z ~ ~? ~ Q 0 '="¡;;::, -- IIIIIIIII!JIIII ...... ~ '-p . '~' . - (J) ö :v '?' L- z fL! L)' t.- ,,..,,.,, ........ ':Z ~ ~ N c::J c:;:::) .þ> .. - Exhibit 11-10: Well Oil Rate, bopd - - ]- ~ Pru!~ L ¡ I I ~...~......~......i-......~......~..t......~;~~~::~~:~;...1:.~.= - K u p ~ru~1 Well I~~.~~..!. ~~.~~~.~~.~..~.~~:~:.~..... .................j.......m........~....I....mL...............~ - API Zone Test! ! ¡ ! Oil Date!!! i I'::. Kuparuk test' - Grav ! ! ¡ } ¡ :: k-':-'- .-'~"':"'-:":--:_:-'~/;>'-:'_.;:.:- c,:':.':_:,: - ."::::-:/---:":":--<-::'-"; :.".-,..::--, -~' ]: ---Ju...",:: as-or' R ¡ : ; i I-'mm.ru."..........r.: - -~ 1969 . ............. N1t'_~ileen.-1. ~L117.! ¡ ! ! ¡. .. .. .......\ ," ¡ Proposed PA Bo~ndary! ¡ - ¡ 17_tU\t.L_------.- (:,. ____h I .-----------------t----------------~------------------1---- 1998 --- -----------------t--------;; ::: ¡ ! ~LO~, !!! : : L-' .481-1~6. . : : ! : I \'.rL~i i I I I - __L______-------- . LO ~~~----~--_u_- ------- ---t---------- -------+------------ ---1-------- ---- ----t-----------------t--- ! L-1078 ¡ ¡ ¡ ¡ ] I u.u~ \>1 NWLl ~ \r~:t=l':l:d ! I I I - r \ I" '. I ! ! !. ¡ ,r - -~ - - - -- - -- - - - --- - - tn- - ---- -- -- - - -- - -- - __n- - - - - - - -- -- - - -- - - - - - -- - - - - t - -- -- - -- -- - -- -~ÐII- ---- -- -- -i- - - --- - - - -- -- -- - -t -- - - ---- - -- - - -- - - t -- = - i i !! i i i :: i i : ! i i - i i ¡ ¡ ! i i :! :! KUP_ST- 128! ! ~. .t.m......... i.:..~:=m.m I [J ...m.mm."l....mm.mÎ:§~t1~:::. .. ."r....m.....~~~ . : ! i ! i Z-oa8 i i ! : " I _u----_u-------+--- ~:'-2ã~-----------W=':31j11:': _ui-----_uu_------t- ----_u_---u_--t-__u___n______- : ¡ ¡:: ¡ ¡ ¡ ! ! Z-008 ! ! 1f-2~Q. : : : i i i i ! ¡ ! ¡ ¡! <I ! Z-030 ¡ ! i i i i i ¡! i - .--r~-----T------ r---f- r----Tuu-r~---T-----i-- ----~------i------i---+ï------ï------i ----i------ï----1i--z:'-iãõ---~--t----;------;-----+-- - - Borealis PA \Vells WKup 2208, 24.4 C4a 3-11-11 (skin +4) C3b NWE 1-2 100-200 24 - C3b 24.4 with frac NWEI ~ bbl 26 C4/C3 2.1 bbl 25 CI water A Ou.side Proposed Borealis r A KupSt 7-11-12 Zero oil (600 water per day) Socal 33-29E Zero rate (reversed- out oil) Prudhoe 1 Zero oil 1300 bwpd 1400+ bwpd Na C4/C3 14 C3/CII 1970 B 1982 C3 a/C 1 A na WSak24 Outside Prudhoe Bay Unit C 368 high skin 24.4 - ... .... - - - - - ~ -- ~ ~ ......., 1969 1970 1982 . J 8IILGIIETÐ18 1 ~.~.~ r I . ........... CAU8W Il1O. OGross Isopach Only .Gross Isopach and Reservo~ Properties OCore in Kupai'uk .Kuparuk Section Missing or Faulted Out Post-Mapping Wells in Blue BOREALIS FIELD WELL DAT1 OCTOBER 31. 2001 l- I 1-11_- I I - - ----- --- ---- ~ ..-. ~ .....- ~ --- - - - --- ..........- --- Exhibit II -11: Production and Recovery Profiles for Primary Depletion ---------._--'~'---"'----------'-_W- Œ PrOOoction 16,(0) -,. 14,(0) - I ~ 12,(0) - 0.. -=8 10,(0) - rJ:J --- E 8,(0)- t'j ~ 6(0)- 6 ;'(XX) - J 2,(0) - 2(0) 2005 2010 2015 2020 2025 2030 Year ------_._----- ~----- Gas Prolrlion 8(0) - /. 7(0) - ifJ; ("~ :> '2: cL @ (ill) - ~ u L, 8 5(0)- c:: --- z 24(0)- ~ t'j ~r;) ~ 3(0) - V) g Õ2(0)- ~~ HXX> - 0- 2ŒX> +- mdìxl - 2<XX) -+- scf7stb -- 1500 ~ ;9 rJ:J ~ U - HID ~ ~ 0 -500 '" 0 2005 2010 2015 2020 2025 2030 Year Water Production 2O,ŒX> ~ :g 15,ŒX> - .£J .£J --- Q.) ~ 10,ŒX> - ~ '-~" ~ Q.) ~ ~ 5,ŒX>- . 8t","","",'llt,t...,...., 2(XX) 2005 2010 2015 2020 2025 2030 Year Œ Recovety '-"/ 25 - .. ~20- ~ --- è' 15 - Q.) ;> 0 u Q.) 10- ~ ....-4 .~ 0 5- 0 2(0) 2005 2010 2015 2020 2025 2030 Year ------ - - - ~ ----'~-"-_._--------._.---~-_.._.._..'--"'-------- . 16,(XX) 14,(XX) - ~ 12,(XX) - 0.- .£ 10,(XX) - t/.) ---- E 8,(XX)-' C!::S ~ 6,(0).. - <5 4(xx)- , 2,(XX) - . ---"--- - - -.- - - --- ...... ..... Exhibit 11-12: Production and Recovery Profiles for Water Injection Oil Prodœtion 2(0) 2005 2010 2015 2020 2025 2030 Year ----- ifj'j (") > :z Z ~ ßVV\ ,- rI~ --- uuvv ,,_:' U Ê 5<XX)- ;;= ---- Z () 4(0) -. ..¡..I N) ~3<XX>- ;~'J t/.) g d 2<XX> - "'~ 1 <XX> - 0 2(00 8<XX> - 7<XX> - ---'---'-~'---'----"---"'---- - GIs Prodœtiæ ..... m;clfrl - 2(xx) -8- scf7stb -- 1500 --.. .£ t/.) (¡:¡ u - 1(xx) ~ ~ 0 500 '" 0 2005 2010 2015 2020 2025 2030 Year ._- "-'-'---"'-----'---'-~---'-'-' ------- --.. ~ 15,(XX) - ..0 ..0 ---- () ~ 10,(XX) - ~ M () ~ ~ 5,<XX>- --.. 20 - ~ ---- ~ 15- () :> 0 u () 10- ~ - . .-4 0 5- 2O,<XX> 25- 0 2(00 Water Prodœtion -,-/ . 2(0) 2005 2010 2015 2020 2025 2030 Year œ Recove1)' ------ 2005 2010 2020 2025 2030 2015 Year - -- - - '- ~ - .... - - ..... - Exhibit 11-13: Field Recovery vs Timing of Injection ---'--"--"--~- 0.50/0 _h.'"h_h_".~__.~".~~-_._.~_~h-'_h'_'~~~~-~ ....~--- è3 0.40/0 CI) 0.3% > 0 u 0.2% CI) 0:: - £l. 0.1% .- 0 - 0 CI) 0 0.0% >E ... co "- E 0 E ?fl. -0.1 % _. ::» e -0.2% _. .- CI) -0.3% en -.- e co -0.4% ~ - 0 -0.5% 0 ,,~~ c: z ~ ~~';) f"V c:.::) <:::) ~~ - _l..':__.._.._-_n_-~l-_n_.- -- ".---"----'._u--.--,-.-------.--------_._-__n_-_--.---- . - - -' - - =,.-==. --"->-_.._- _-=r---.....==-.......-"-~~~_.- .._..---==->-~=~--=~~_.._~.,---_._._- _.. ~.".=~"""==--===.~~~-=~==--==""=="~~~=........".--====- n____-_n_n-5t-------------- - - --'--'--'-'- -.-._-_.__..--~- -'-"---"-'--- ~ -. --_.- --.---'-----"----~"---"-'---- - _..._-----_.._---~----_._--~-------------,---_._._.-_.---------~-'---'----'----"- ):( Pb=2750 )( Pb=2950 'I( /1 ------------_...._._-_._----.__.._-_._._--~ 1- ~ --- -- -.--.----.-.--.-. -,-- _._-----.~._u_._.._._- -- - ~-'--'-~'-'- --.----.-------.-.---.-----...-- --- .. . ------_.._---_.._-_.__._---_..__._~-.._..._---~---_._.._._----~------_._----------_..._._._-_._----~._._---_._..---,--~ --- - ~,------,-,'---'---------~-----'-_._~-'------'-"---~-'-.--- ~ -- - --_..._._--._----_._------~._~-----_.__.-_.__._~-~_._------~'~-----'----'-----~---"~.._..._._-"'-'--'-'-".-.- .-.....-. .---.-.--- --. .--. .~.----_.. ,--.-..--.-----..-...- --. ------...-.-- . . -~, -----------..--'-- ..._..._~---------_._-,--_. _n_._-._'-'--'------"-- - - ---- ---~----'-------'----'------'---"-'-"--------'-'------------------------.----..- ------------_._-~.- 5 10 15 Time to Injection, months 20 ~ ~ ~~/ . . 25 ----- - - - .... - - ~ - - ~ - ~ ~ ~ 111-1 Drill Pad Layout at L-Pad '\ , " ;t /' ¡.;;; // 0;:/ ,./'0 i ¡' ."" .,~" --- '-þ-.-Þ- r:" {,', ~'-þ-.-Þ- '7 ~ ~ ~c,J\4Ø) .-Þ-~\'1O 0 9,(1) 0 0 0 0000 ./ 4'8,u,~ ./ ,.'.'-. ~ F'=' '-- Z ~ f..Ç) f'.-') c:::J ~ \\ \\ ''\ '\ '~ \\ ~/ ';", /---,//---'--/,..,..,// \ '" ~,-_.-- ,~.-'- .-Þ- <6 .,/. ,.-...,.,. :".Jfí ~~: .. ¡ :1::- ~ .. ""~. ..~.."'---~""""'~~"",.-...-._. ....--- ...~........' ~- Well Slots Production Wells Pipeline @ . BP EXPLORATION (ALASKA) INC. PRUDHOE BAY UNIT LPAD DETAIL MAP DATE: February 2002 SCALE: 111 = 150 Feet FIGURE: 4 bs14533.dgn - ¡if; (j ty.",. .Y ~ " ra \\~) ~ c z :N) i!¿::;> f') c::) ~ ">~ BP EXPLORATION (ALASKA) INC. PRUDHOE BAY UNIT V PAD LOCATION MAP - - - -- - ~ - .....- -- -- ~ ......- - - - 111-2 Drill Pad Layout at V-Pad 46.8 47.2 , ~ Q: 0 ~ . 47. Well Slots Production Wells Pipeline @ . DATE: February 2002 SCALE: 111 = 150 Feet ---"""" ¡ . FIGURE: 3 bs14533.dgn - - - - - - - - ..... - - ~ - ---- ---- - - - llI-3 Drill Pad Layout at Z-Pad l------------~-- * rp~----------~-~ y 1 * ~ j i ¡ ¡ I I ! ! ¡~j/' ~ t j ,~- ',~ , .''', ",-r-'",r. -. .- -. , ,', ., i -'Ii I / j ~ ex: ~ ". . -- ~.~/._".,~'--"-"'~-- '-"~"--'-",-" , -".,,:' /,/ ~-~~ì\ /;~~~ \ ¡ l"- /'/ ~ ¡ r;' '" ", --,--- ----,---:)//~~ ! I P..,------,-------,----Ç/ , ( ! ! ! I ' , ¡ ,/ ¡ { ¡ w.s. =49.7 ? W&=~1 . Œ 0 ~ z z m ;~ 54,0 CA)CA) CA)CA)I\) ,I\) f\) I\) I\) f\) 1\)1\) N) r "'.? '9 CA)I\)-",oco(x),~ -...1\)(A:)~U1Q) 0v,.. " i[:1;.".J 8,':1111", ..'.,'. ""'ll' '," -, " , I c:'=---?'_~~L-J"-'l,"--~-'~)' ,"" J~~O~ "---, ---"..~"~:....,..-.-----~", ", i I("J " '-1';:~\ , --\~~ iOu, -50 2 , ','. i", ,iJ~,""',\ W S =509 ,) c::--=~' ,---,,' ,',561B ,< -; .., ¡ .~-, -. - ~ ' ,', , ',' ,L j' j rtrrf I ,( ",\.Ffl" r" '-""."',.','" J,~.,'~, -fl--.""..',. 1"'-"',' '~,.' , .'., ,',' , 'XJ',.','.,'~,'-,,'-~~ -J', ','""."~,.",',l,~.,.,'".,',,",~",' ",', .','.'",',',,~,..',].,'ý,.,',,',,' ,v,', --,',J," -~,..J " """.,.,.,'.'" , ',',' ~~' \I~ 0 . 0 ¡. ~. ¡."lS01A ". iociooJ~loo J/ i CA) CA) (Ä) -"'<O(X)""" O)(1I~(Ä) I\) -... 04. 7 -...-..., , -..." -...,,'-"',' ",-"'"."-"',, -"'-"'1\)"" " '" ",',' /' ! (x)...... (11 O"""I\)(Ä).þOU1o)"""(x)<OO,;~ , ~ j '-'C 2 ',,',' ~ .----/ ' -'---7~-~:;:--~~ '-:-~-iL~-l~'~~i'f~--cT,c-== --",-~~-y ~---/~l/ '" BP EXPLORATION (ALASKA) INC. r -~ì 6 '~ z ~ \_--""-,,,,--~-_._------,¿J J / I ~\ - \. ~ ~.(;, 1"'.') c;:) ~ {} ~.A {:;- ~1_~ -0 PRUDHOE BAY UNIT ZPAD LOCATION MAP Well Slots Production Wells f Pipeline @ . (\ ~)/ )"'J DATE: Decernber2001 SCALE: 111 = 250 Feet FIGURE: 2 bs14533.dgn ----- - - - - - - - - - - - -- - - ~ 111-4 Borealis Area Map \ ' .... 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AD [~ \J , O~ :" ~!~f?,',1',,1'~DI, ~',\\~ 12 , ~" ' ' "I~.",~á}~KU~~,UK<;J,~". {, "~<:) 43 J l> C ' ¡I' P";5 ~-~ ( - ¡~~L~ 0 ¡aa (~~ L~~ tA1l(23-07-11-1~); \ \~~ 'CJ . r'--~~,~-~,~~ \\, \Yt Ö, , Ijf'N~\S'TË B '. f ~.o t:) ð :", ~" ,~ D :., ~ '~9 " r i, ~G °, ' -~, , I ", " } " ~ '\\, D ,"II,.""""),, ' ~, ' , '-" "\ ",,; } <'\ \ ¡PRUDHOe~AY UNIT (~,~ ~ : ~\~": J--f.. ._-" G If1~~~; ()o ..t¡f;~_,_- Q pq-----, r,J ¡ I.)_,_~ " "/-,<cj~C,~,-~ L- \ ,\--~cÊ--[~--l', »'1--, '--~ i,' ' Ij"-- ~v )ob \) :., i\ ¿'l/ ~ 0 ~ \ ---ifJ' J 1\ ~"." ," " SP~E'~OAb . ¡) 0 ' r ) , ' , r, ' " ,'~ ,', \\: ( r. \ C>- fí : (' l?" j (' ~ ~) (); () (, \) \) , , ¡] "', / \'ì q, ~ b6\-, , <] J I <)¡ ð~ r G, : \\ \ (~, ~: CI 'V \) 0 <+. ì,' (-; - C\ ~ / ¿;, '. qì" ¡ ~ ? ~ I\),- ; L1 ~ , ,~ 1'~lo 'j ,n ~,:n , ~'^)~ '8 - J "r-~ì 4,0 0) \)\' GJ. \; ~ 0 l ~ .~ ,\H Q ~\ ~~~~ BP EXPLORATION (ALASKA) INC. , (.J""" r'" ~ 'f15 '-c~, " ,', ,\,,"" D ~1~, ' ~ ~oo~~.,'~ ,,1; , 0 \~ ~ ß',D 8~0 ~ ,~,',',', '~..",,5S ~~ 'D ~' Q~~ P \ ) [\ 7", ,0.'0 !ì 1\1\../ \~' \\~~j / ~ íì - 75 I " ~ç ),\\' c- je' ~ -, 0 u ð I ¡ \ì () w ¡ ¡ ~ \)'\ ~' PRUDHOE BAY UNIT \~'" ': ~iJ {:'J'" n~-i\\.~(,( ~~a~:,-I b ()~ '\ "-\3:i2~ýc~ BOREALIS AREA , 1".":\, CJ~~, f v I.,' ~c1;,~o""~~,, l'J,' \)":,,: ~~, ,~~~~\0rJ""."'.~""Z,, ( """"'.,'" (032,1-11-1~) VICINITY MAP ",J 0 \'j '~Q r J ß ~ CJ~D - QOÖdb \j ~ ì 0/" ~ : (2' t I ~ \ 3:1 " I:\\) I ~D\\ ~4 ! ~,j ~ '19 Q \ 20 ~ " ----------,-----,---------- \;> \", \ " . ~, "--,,) " \ ' DÇ\n " J 11 é,,~/~, -) ,,0? ~í\¡, " \ , )\ ~-- r \1\ \\ \\\J v !\l> 0 ill I W C:::> () (" )ì' ,~G.' \ )/ ~ DATE: SCALE: FIGURE: -J \ '- !, -\ ",è- ,>" _e 0(\ HIG Ncç I ~ ()o (\ ,,(Ie II? \_/'/ ~\) December 2001 l' = 4000 Feet 1 Y '.v! n'" " ~~\ ~ (-" ,0() q ; a:! a: ~ ~~ '~1 ìl \ ó ~Q' ~ Î\ \ I \:J \,,) : \! \\, ì ~ ~ ) .J - / 5~ (fJ) ~¡ ~ 7 c- Z "1 !0 '" ""= C Z i;.,ç:'! po..,) c::J ~ bS14533,dgn - (j) (), þ- ~~ z m (~ Co- C Z - - - - - - - - - - - - - - - - - 7-5/S', 29.7 #/11, L-SO, BTC I 3100'- 4500' I- ~5 i"V t::=) 2 Plug Back Deplh r 7,300' -12,120" 3-1/2',9,3 #/11, L-SO, EUE Srt! AB Mod / 7,400'-12,200' / ~~ Exhibit IV -1: Typical Producer and Injector Completions TREE: 3.118'. 5M cm L.UO WELLHE AD: 11-. 5M FMG G5 Borealis Producers: Proposed Completion Cellar Elevalion = 717' RKB = 177' Date 11/2/00 5-112",17 #ltl, L-SO, BTC- Mod (reduced clearance cplg) Rev By LRC 3.1/2"X' Landing Nipple wnh 2.813" seal bore, I 2200' I 3.1/2- x I" Gas Lnt Mandrels with handling pups installed, L GAS LIFT MANDRELS MD Size Valve Type 1 2 3 4 TBD TBD TBD TBD DV DV DV DV 1" l' 1" 1" L -~ 3.112' 9.3# EUE 8rd AB Mod L-aO, Tubing L . 3.1/2' 'X' Landing Nipple wnh 2.813" seal bore ........ ..- 3.1/2' Seal Asembly ....... 3.1/2' PBA ./' 5.1/2'x3.1/2" XO placed at +/-150' above the Kuparuk Formation . . 3.1/2' 'X' Landing Nipple with 2.813' seal bore J I: 3-1/2' 'XN' Landing Nipple wnh 2,813" seal bore and 2.666" No.Go ID. Comments Borealis WELL: Producer API NO: 50-029-????? Proposed Seal Bore Completion Microbors with 5-1/2"x3.1/2" tapered longstring BP Alaska Drilling & Wells TREE: 4.1/16'. 5M CIW L.80 WELLHEAD: 1 I- . 5M FMC G5 . Borealis Injector: Proposed Completion Cellar Elevation = 777' AKB = 777' 9-5/S", 40 #/11, L-SO, BTC 13100'-4500' ,- Plug Back Depth 17320' -12120' I 7',26 #/It, L-SO, BTC-Mod /7400' -12200' I Date 11/2/00 Rev By LRC 4-1/2' 'X' Landing Nipple wnh 3.813' seal bore. I 2200' I 4.1/2" x I" Gas Lilt Mandrels wnh handling pups installed. GAS LIFT MANDRELS # MD Size Valve Type 1 TBD 1" DV 2 TBD 1" DV 3 TBD l' DV l -~ 4-1/2' 12.6# L.80, Premium Tubing L ,r 4-1/2' 'X' Landing Nipple wnh 3,813" seal bore. 7' x 4-1/2" Baker 'S-3' Production Packer 4.1/2' 'X' Landing Nipple wnh 3.813" seal bore. 4-1/2' 'XN' Landing Nipple wnh 3.813" seal bore and 3.725" No-Go ID. 4-1/2' WireLine Entry Guide set at +/-150' above the Kuparuk Formation Comments Borealis WELL: Injector API NO: 50-029-????? Proposed Completion Ultra-slim hole BP Alaska Drilling & Wells - ---/ . . - (cj) ~~ .J? ',Z Z rr¡ ~~~J - L. C 'Z ~ ~~) ¡....." c::> c:::J "":~~ - - - - - - - - - - - - - Exhibit IV -2: Typical Dual Injection Completion Borealis Dual Completion TREE: 4.1116'.51.1 CIW Carbon WEllHEAD: 11" .51.1 FMC G5 . 4.112' 'X' Landing Nipple with 3.813" seal bore. I -2000'1 9-5/a", 40 #/fI, L-aO, BTC ~ I ~ r 1900-4000' TVDss ---'= L r- .',,,. 'X' L'"""' N'",. ,...,. '0 . ~ .',,,. ",," L''', '"m',m c,""","" T'''"' 7" X 4-1/2" Baker "Premium" -----1IIi3I ~ Production Packer 3.1/2' MMGW Water Flood GLM -- L 3-112' NSCT 9.3 # L-80 Tubing between MMGW GLM's with Injection Valve wi Prem / threads ~ - ---'= 1r 3-1/2' 'X' Landing Nipple 2.813"ID 7" X 4-1/2" Baker "S-3' Packer 3-112' 'X' Landing Nipple 2,813" ID 3-1/2' 'X' Landing Nipple 2.813" ID 3-1/2' WireLlne Entry Guide Plug Back Deplh 7',26 #/11. L-aO, BTC-Mod ... ... Borealis WELL: Typical Dual injector API NO: 50-029-xxxx BP Alaska - - - - '~? . --- . I I I I I I I I I I I I I I I I . Exhibit VI-I . AFFIDA VIT STATE OF ALASKA THIRD JUDICIAL DISTRICT I, Gilbert G. Beuhler, declare and affirm as follows: 1. I am. the Greater Prudhoe Bay Satellites Manager for BP Exploration (Alaska) Inc., the designated operator of the proposed Borealis Participating Area, and as such have responsibility for Borealis operations. 2. On Æb ðt?) J..oC)~ I caused copies of the Borealis Pool Rules and Area Injection Application to be provided to the following surface owners and operators of all land within a quarter mile radius of the proposed injection area: Operators: BP EXPLORATION (ALASKA) INC. ATIENTION: NEIL MCCLEARY P.O. BOX 196612 ANCHORAGE, AK 99519-6612 PHILLIPS ALASKA, INC. ATIENTION: LAND MANAGER PO BOX 100360 ANCHORAGE AK 99510-0360 PHILLIPS ALASKA, INC. ATIENTION: DANP.KRUSE P.O. BOX 100360 ANCHORAGE, AK 99510-0360 J. ANDREW BACHNER RE: ADL 390067 PO BOX 82130 FAIRBANKS AK 99708 Suñace Owners: State of Alaska Department of Natural Resources Attention: Dr. Mark Myers 550 West 7th Avenue: Suite 800 Anchorage, AK 99501-3510 Dated: ~? A.1- ;,~ ~ 10... -~~//~ Gilbert G. Beuhler I ..,...~~..~t'¿~~~ and affinned before me thisdl day of ~ X1Vt6 æ)d, f"'""c(:,'" \'---;.'~;~~"~~~ .~:. ~ ~ 1<u1ih . ~ -" \0:' r,1rd')I.~.. .~ : ~ \ - . \~ '"' ,¡ >.-"'.. F - ~ .: .~ ,~¡ ~-~ ,¿.' :/ iI' . I.~ \:t~J ~.~\ 'ç.7/ i N a:y Pu?li~ in and. for Alaska :.. -'~:).¿" Q F l~'~J'- ./.~' OmmISSIOn expIres: Kj()8/ryf I '. '~.~",...' ~", ". -~" .¡, ~i ' n Q'" i~ -'. ",,~,'" "J~JI\ 2 (j zOO"" '.¡JJ....tIHJ.'.".'.' ' - -- ------------------ Exhibit VI-2: Composition of Produced Water from GC2 and the Borealis Oil Pool SourcE!,ppm Barium : Bicarbonate .., . Calcium Chloride Iron Magnesium V-100 A-sand water--MDT 28. 3,977. 96. 13.400. 32. 7.5 1.145. 195. ¡ 4.45: îIJ (j :> :z ~~-.J ¿:;. m ~~j Potassium Sodium , Strontium Sulfate "'-- c: z ~') i:..D ¡...') c:;) ~ GC2 Produced Water 2.17 1 ,640. 247. 12 ?>~QQ,:>""">",,,", 4.32 156. 6.9 107. 080. 26.2 560. .' '--- . ). Exhibit VI-! ) . AFFIDA VIT STATE OF ALASKA THIRD JUDICIAL DISTRICT I, Gilbert G. Beuhler, declare and affirm as follows: 1. I am the Greater Prudhoe Bay Satellites Manager for BP Exploration (Alaska) Inc., the designated operator of the proposed Borealis Participating Area, and as such have responsibility for Borealis operations. 2. On Æb a 7; '¡oo ~ I caused copies of the Borealis Pool Rules and Area Injection Application to be provided to the following surface owners and operators of all land within a quarter mile radius of the proposed injection area: Operators: BP EXPLORATION (ALASKA) INC. ATTENTION: NEIL MCCLEARY P.O. BOX 196612 ANCHORAGE, AK 99519-6612 PHILLIPS ALASKA, INC. ATTENTION: LAND MANAGER PO BOX 100360 ANCHORAGE" AK 99510-0360 PHILLIPS ALASKA, INC. ATTENTION: DAN P. KRUSE P.O. BOX 100360 ANCHORAGE, AK 99510-0360 J. ANDREW BACHNER RE: ADL 390067 PO BOX 82130 FAIRBANKS AK 99708 RECEIVED Surface Owners: State of Alaska Department of Natural Resources Attention: Dr. Mark Myers 550 West 7th Avenue, Suite 800 Anchorage, AK 99501-3510 Dated: ~?~.;I.. FEB 28 ?f"¡¡r¡ ^'aska Oil & Gas Cons. Commission Anchorage ~~/~ Gilbert G. Beuhler ,,",~eclared and affirmed before me this éfl day of ~ X)~1ð d.YJd, , / ~6Æ() 'rYì. Kuh:u'J N a:y Public in and for Alaska. . . M ommission expires: K)J08/OIt SCANNED JUN 2 9 2004 ::t:I:: Þ---I- .. ¡" bp ... ,\If.''', -.....~ ~~..- ~..- ~..~ .~ F"'-' .'1'.'1'- ". . ) . To: Date: February 1 0, 2002 From: Bruce W. Smith GPB Borealis Development Engineer Subject: Dual Injector Intee:ritv The Borealis Field has been developed in Kuparuk aged hydrocarbon zones, in an area that directly over lays oil discoveries in the Schrader Bluff Pool, which is expected to be called the Orion Field. The Orion field development is in the study and planning stage, with Borealis in the full development stage. Using the planning information currently developed for the Orion field it was determined that many of the same identified injection well locations planned for Borealis were near the planned intersection points needing injection in the Orion horizon. Dual Injectors are planned to be used for certain injector locations. These injectors would be based on a BP design called Ultra-Slim Hole basis. This basis is 9 5/8 inch surface casing set in the SV-1 formation at approximately 2900 TVD. A long string would be placed to TD and cemented to 500 ft above the Schrader Bluff formation. This string would be evaluated using a cement evaluation log such as a US IT, CBl, CPT or other approved devices with the rig on location. Once cement integrity is proven, the Schrader Bluff Formation would be selectively perforated, A straddle completion would be run with packers placed above and below the perforated interval. The straddle would consist a permanent packer (such as a BakerS- 3 style) set approximately 200 feet above the Kuparuk Formation, a second permanent packer (such as a Baker Premium style) would be set approximately 200 feet above the Schrader Bluff perforations. The straddle tubular would be made up of 3 Y2 inch l-80 material standard tubing such as 9.2# L-80 premium thread and 4 Y2" 12.6# l-80 premium thread materials. Flow and integrity control of the straddle would be maintained with two or more Schlumberger (Camco) MMG-W water flood injection mandrels. These mandrels accept injection valves, which are double-checked. Additionally the mandrels each an external check as part of the body. A proposed testing procedure is listed below; this method is split between original installation and future testing procedures. cc: SCPìNNED .JUN 2 9 200L1 ) . ) Dual Injector Integrity . Welllntearitv Testina Mechanicallntearitv Test (MIT) Oriqinal Completion (Ria present) 1. After Well Has been cased and cemented, casing, wellhead and BOP will be pressured tested to meet or exceed the requirements of 20 AAC 25.410. 2. The casing will be evaluated with a cement evaluation log. 3. Once this log has been evaluated and cement is deemed to provide isolation, the rig will perforate using TCP guns to shoot the Schrader Bluff formation at or slightly above balance. 4. The completion will be run and set. 5. The completion will be run with dummy valves in place in the water injection mandrels. 6. The lower injection zone of the Kuparuk will be perforated after the rig moves.off. 7. Pressure Test Tubing for 30 min. 8. Pressure test tubing and annulus 9. Bleed off tubing with pressure on annulus. Prior to placina well on Kuparuk Iniection (Initial AOGCC witnessed MIT) 1. Well on injection and warmed up and stable 2. Pressure test the annulus and hold for 30 min. Usina the same MIT testina schedule as PBU (AOGCC Witnessed normal scheduled testing) 1. Safe out injector . 2. Freeze protect injector 3. Place plug in tubing tail profile' 4. Pressure test tubing to required pressure. This test will prove integrity of tubing, plug in tail pipe, water injection mandrels and dummies in water Injection mandrels. 5. Bleed off pressure 6. Pressure test annulus to required pressure. This test will prove integrity of casing, wellhead, packer and reverse flow to tubing. 7. Bleed off pressure. 8. Pull plug and return well to injection. Intearitv issues durina Iniection (Kuparuk injection only) 1. Water Injection mandrels have external check valves 2. Water Injection valves will be dummied wI pressure test. 3. Annulus, Injection Rate and Pressure will be monitored daily. 4. Normal cycle of AOGCC Witnessed testing (AOGCC MIT) Intearitv Issues durina dual iniection (Kuparuk and Schrader Bluff) ¡IJr,~ '") (,\ 'm ,. ì 1\1 " ," , ~.. . Dual Injector IntegriI) . 4. 5. Water Injection mandrels have external check valves Water Injection valves have two check valves internally An Injection safety valve, (similarly to a Halliburton MC flapper type injection valve) would be installed in the tailpipe. When the injector is shut-in, this flapper would close and prevent cross flow from the Kuparukto the Schrader Bluff. Annulus, Injection Rate and Pressure will be monitored daily. Normal cycle of AOGCC Witnessed testing (AOGCC MIT) 1. 2. 3. Intearitv issues durina Iniection (Schrader Bluff injection only) 1. A plug would be placed in the tailpipe to prevent injection Kuparuk. 2. Water Injection mandrels have external check valves 3. Water Injection valves have dual check valves. 4. Annulus, Injection Rate and Pressure will be monitored daily. 5. Normal cycle of AOGCC Witnessed testing (AOGCC MIT) into the Please call (Bruce Smith 440-8008, hm: 345-2948, office: 564-5093) if there are any questions. SCANNE~) JUN 2 9 2004