Department of Commerce, Community, and Economic Development
Alaska Oil and Gas Conservation
Commission
HOME
EVENTS
DATA
Data List
Drilling
Production
Orders
Data Miner
Document Search
REPORTS
Reports and Charts
Pool Statistics
FORMS
LINKS
Links
Test Notification
Data Requests
Regulations
Industry Guidance Bulletins
How to Apply
ABOUT US
History
Staff
HELP
Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
SIO 002 A
INDEX STORAGE INJECTION ORDER NO. 2A 1. March 30, 2004 Unocal Application for Amended Injection Order for Gas Storage for KGSF #1 with attachments 2. May 7, 2004 Notice of Public Hearing, Affidavit of publication, e-mail Distribution list, Copy of bulk mailing List 3. August 11, 2004 Unocal's request to amend 2A to Add KGSF #7A Kenai Gas Storage Facility #1 Swanson River Field 4. September 27, 2004 Public Notice and mailing 5. August 15, 2007 E-mail correspondence with AOGCC and Operator re: reporting requirements 6. ----------------------- Chevron's Annual Material Balance Calculations of Production and Injection Volumes for KGSF #1 Facility 7. August 13, 2010 Chevron's 2010 Annual Material Balance Calculations of Production and Injection Volumes: KGSF#1, SRU 8. August 12, 2011 Unocal 2011 Annual Material Balance Calculations of Production and Injection Volumes: KGSF#1, SRU 9. ---------------------- Monthly reports requiring pressure monitoring 10. April 1, 2019 Hilcorp's request to amend Rule 4 11. October 13, 2020 Authorize the proposed Kenai Gas Storage Field #IA (PTD 220-063) well to replace the Kenai Gas storage Field #1 (PTD 161-008) for storage operations. (sio2A.003) ) ) STATE OF ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7th Avenue Anchorage, Alaska 99501 Re: THE APPLICATION OF UNION OIL COMP ANY OF CALIFORNIA for an order amending Storage Injection Order #2 for underground storage of hydrocarbons by injection into the existing well Kenai Gas Storage Facility #1 ) Storage Injection Order No. 2A ) ) Swanson River Field ) Swanson River Unit ) Kenai Gas Storage Facility #1 ) ) June 25, 2004 IT APPEARING THAT: 1. By application dated March 30, 2004, Union Oil Company of California ("Unocal") requested revision to Storage Injection Order No.2 issued June 15, 2001 to revise the maximum wellhead injection pressure specified in Rule 3 of Storage Injection Order No.2 from 2,850 psig to 3,584 psig. Unocal also requested that the Commission add an additional rule to Storage Injection Order No.2, providing for administrative approval of future modifications to operational constraints specified in the order; 2. Notice of opportunity for public hearing was duly published in the Anchorage Daily News Anchorage Daily News on May 7, 2004 in accordance with 20 AAC 25.540; and 3. The Commission received no comments concerning the application or requests for a public hearing. FINDINGS: 1. Storage operations were authorized in Kenai Gas Storage Facility #1 ("KGSF #1") (previously named SRU #43-28) on June 15, 2001 by Commission Storage Injection Order No.2 ("SIO 2"). 2. The findings ofSIO 2 are incorporated herein by reference. 3. Leak off tests in well penetrations KGSF #2 and SRU 213-10 show the fracture gradient to range from .8 psi/ft at 2,000 feet true vertical depth (TVD) to .83 psi/ft at 6,100 feet TVD. 4. Unocal intends to maintain wellhead injection below a gradient of .65 psi/ft at target mid-perf reservoir depth of 6,395 feet TVD, which corresponds to a maximum wellhead pressure of 3,584 psig during gas injection operations. 5~ANNED JUN 2 9 20ü4 Storage Injection Order 1'<v.1A June 25, 2004 ) /' Page 2 5. Unocal proposed a change in SIO 2 to allow administrative approval to facilitate the administration of future changes. CONCLUSIONS: 1. The proposed increase in wellhead injection pressure in the KGSF #1 well will not propagate fractures through the confining zones and will not cause movement of hydrocarbons into sources of freshwater so long as the injection pressure is maintained below fracture gradient. 2. A rule to allow administrative approval of future changes in SIO 2 will facilitate the administration of future changes. 3. The proposed operation of KGSF #1 well for the purpose of storage will not cause waste, jeopardize correlative rights, endanger freshwater, or impair ultimate recovery. NOW, THEREFORE, IT IS ORDERED that Storage Injection Order No.2 is hereby amended to revise the maximum pressure requirement of Rule 3 and to add a new Rule 6. This Storage Injection Order No. 2A supersedes and replaces Storage Injection Order No. 2. The following rules, in addition to statewide requirements under 20 AAC 25, apply to the underground storage of hydrocarbons by injection in the KGSF #1 well. RULEl. STORAGE INJECTION The Commission approves the injection for storage of natural gas into the 64-5 sand of the Tyonek Formation, between the measured depths of 6375 and 6443 feet in SRU #43- 28 (KGSF #1). The Operator shall report disposition of production and injection as required by 20 AAC 25.228, 20 AAC 25.230, and 20 AAC 25.234. RULE 2. CONTINUED MECHANICAL INTEGRITY This approval is conditioned on the operator's demonstrating the continued mechanical integrity ofSRU #43-28 in accordance with 20 AAC 25.252 (d), (e) and (t). RULE 3. MAXIMUM INJECTION PRESSURE The maximum wellhead injection pressure shall be limited to 3,584 psig. RULE 4. ANNUAL MATERIAL BALANCE The operator shall annually provide to the Commission material balance calculations of the gas production and injection volumes to provide assurance of continued reservoir confmement of the gas storage volumes. This information shall be submitted no later than 60 days after each anniversary date of this Order for the 12-month period ending on that anniversary date SCANNED JUN 2 9 20D,-} Storage Injection Order },,,.~A June 25, 2004 Page 3 RULE 5. EXPIRATION OF APPROVAL As provided in 20 AAC 25.252(j), if storage operations are not begun within 24 months after the date of this order, this injection approval will expire unless an application for extension has been approved by the Commission. RULE 6. ADMINISTRATIVE ACTION Unless notice and public hearing are otherwise required, the Commission may administratively waive the requirements of any rule herein 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. By Order of the Commission ~~,~Anchor 0~ 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 (Le., 10th day after the application for rehearing was filed). SCANNED jUN 2 ~ 2DD4 AIO #22C and 810 #2A ) ) Subject: AIO #22C and SIO #2A From: Jody Colombie <jody_colombie@admin.state.ak.us> Date: Fri, 25 Jun 2004 15:07:15 -0800 To: undisclosed-recipients:; AlO #22C and SIO #2A ') ') , Content-Type: applicationlmsword SI02A.doc: : Content-Encoding: base64 ¡ Content-Type: applicationlmsword . i ¡ AI022C.doc I Content-Encoding: base64 . i .uu,....u,..u.uu,................................,.....,.....u............,...................................,..u......"u...,....,.u....,........,........................................u.........,........uu.u.....:..::...::...:....:.:...:..:..:.::.:.,:,.,:,.uJ SCANNED ~JUN 2 9: 2004 2of2 6/25/2004 3 :07 PM Website Subject: Website From: J ody Colombie <jody - colombie@admin.state.ak. us> Date: Fri, 25 Jun 2004 15:05:36 -0800 To: Cynthia B Mciver <bren- mciver@admin.state.ak.us> 2 orders to add to website. Cheers Jody -- --.-.-----. ; , Content-Type: applicationlmsword : SI02A.doc: ¡ ¡Content-Encoding: base64 r::,~,~:,':,~:::::::,',':,',~:::::,','::::::::::::::::::::::::::::,',':::::::,':::::,~:::::::::::::::::""""'"""''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''"""',.",......'....".",.,...... ................,-...................-.........-........................................... ....,.......................-..................... .....................,............................,-.,. Content-Type: applicationlmsword AI022C.doc Content-Encoding: base64 ~ '1i "2DOt¡ .......", C' 1\ ~~MFr' JUN (,-, J .., b r\ß~,~,~""\.-' 1 of 1 6/25/20043:07 PM Citgo Petroleum Corporation PO Box 3758 Tulsa, OK 74136 Kelly Valadez Tesoro Refining and Marketing Co. Supply & Distribution 300 Concord Plaza Drive San Antonio, TX 78216 Jerry Hodgden Hodgden Oil Company 408 18th Street Golden, CO 80401-2433 Kay Munger Munger Oil Information Service, Inc PO Box 45738 Los Angeles, CA 90045-0738 Mark Wedman Halliburton 6900 Arctic Blvd. Anchorage, AK 99502 Baker Oil Tools 4730 Business Park Blvd., #44 Anchorage, AK 99503 Gordon Severson 3201 Westmar Cr. Anchorage, AK 99508-4336 James Gibbs PO Box 1597 Soldotna, AK 99669 Richard Wagner PO Box 60868 Fairbanks, AK 99706 Williams Thomas Arctic Slope Regional Corporation Land Department PO Box 129 Barrow, AK 99723 ) Mary Jones XTO Energy, Inc. Cartography 810 Houston Street, Ste 2000 Ft. Worth, TX 76102-6298 Robert Gravely 7681 South Kit Carson Drive Littleton, CO 80122 Richard Neahring NRG Associates President PO Box 1655 Colorado Springs, CO 80901 Samuel Van Vactor Economic Insight Inc. 3004 SW First Ave. Portland, OR 97201 Schlumberger Drilling and Measurements 3940 Arctic Blvd., Ste 300 Anchorage, AK 99503 Ciri Land Department PO Box 93330 Anchorage, AK 99503 Jack Hakkila PO Box 190083 Anchorage, AK 99519 Kenai National Wildlife Refuge Refuge Manager PO Box 2139 Soldotna, AK 99669-2139 Cliff Burglin PO Box 70131 Fairbanks, AK 99707 North Slope Borough PO Box 69 Barrow, AK 99723 ') David McCaleb IHS Energy Group GEPS 5333 Westheimer, Ste 100 Houston, TX 77056 George Vaught, Jr. PO Box 13557 Denver, CO 80201-3557 John Levorsen 200 North 3rd Street, #1202 Boise,lD 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 !I\.NEr~' .UNj 2 n 2001 SCÞu~~, U J .. ",' ~J J L, >f\, \1 'I C\\\QC~ ..' " \Q ~ aL- I ) ) FRANK H. MURKOWSK/, GOVERNOR A.,ASIiA. OIL AND GAS CONSERVATION COMMISSION 333 W. pH AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 ADMINISTRATIVE APPROVAL NO. SIO 2A.OOl Samuel Atta-Darkwah, P .E. U nocal Alaska 909 West 9th Avenue, P.O. Box 196247 Anchorage, Ak 99519-6247 Re: The application of Unocal Alaska ("Unocal") to expand the Kenai Gas Storage Facility ("KGSF") to include well KGSF No.7 A Dear Mr. Atta- Darkwah: Per Rule 6. of Storage Injection Order ("SIO") 2A, the Alaska Oil and Gas Conservation Commission ("AOGCC" or "Commission") hereby administratively approves Unocal's application to expand the KGSF to include well KGSF No. 7A. By correspondence dated August 11, 2004, Unocal states that KGSF No.7 A will be completed exclusively in the Tyonek 64-5 reservoir, as is well KGSF No.1, and that gas storage will be limited to these two wells. Openhole logs from KGSF No.7 A were submitted to the Commission. Well casing was cemented in accordance with 20 AAC 25.252 and tested in accordance with 20 AAC 25.030. A cement bond log confirmed adequate cement bond and appropriate isolation of the proposed gas storage interval. KGSF No.7 A was tested for mechanical integrity using the testing methods and evaluation criteria specified in 20 AAC 25.412. Daily injection rates and pressures will be continuously monitored and the AOGCC will be notified the next working day if rates and pressures indicate pressure communication or leakage in any casing, tubing, or packer. Injection rate and pressure data will be reported to the Commission on a monthly basis. The injectant will be dry methane with a specific gravity of 0.57. The estimated maximum volume of gas to be injected daily is 30 mmcfd. Wellhead injection pressure will be limited to 3571 psig at 0 mmcfd injection rate, limiting the pressure gradient within the wellbore, at the estimated Tyonek 64-5 reservoir midpoint depth, to 0.65 psi/ft. The Commission finds that gas storage in KGSF No.7 A will not result in fracture propagation through reservoir confining zones nor cause movement of hydrocarbons into sources of fresh water as long as the injection pressure is maintained below fracture SIO 2A.00l October 6, 2004 Page 2 of2 ) ) gradient. AOGCC further finds that operation of the subject well will not cause waste, jeopardize correlative rights, endanger fresh water, or impair ultimate recovery. Accordingly, Unocal's application for gas storage through well KGSF No.7 A is approved. Any further expansion of the Kenai Gas Storage Facility will require definition of an affected area corresponding to the areal extent of the Tyonek 64-5 reservoir and a well spacing rule for gas storage wells. Daniel T. Seamount, Jr. ommlSSloner Various Orders Subject: Various Orders From: Jody Colombie <jody - colombie@admin.state.ak.us> Date: Sun, 10 Oct 2004 14:52:32 -0800 To: undisclosed-recipients:; Various Orders Content- Tvpe: applicationhnsword I .C0443A.doc ~ I Content-Encoding: base64 . Content- Tvpe: application/msword ' ~AI018B.doc ~ Content-Encoding: base64 ,-, Content-Type: application/msword AEOIO.doc . Content-Encoding: base64 SIO 2A.OO1.doc Content-Type: application/n1sword Content-Encoding: base64 20f2 10/1 0/2004 2:52 PM Citgo Petroleum Corporation PO Box 3758 Tulsa, OK 74136 Kelly Valadez Tesoro Refining and Marketing Co. Supply & Distribution 300 Concord Plaza Drive San Antonio, TX 78216 Jerry Hodgden Hodgden Oil Company 408 18th Street Golden, CO 80401-2433 Kay Munger Munger Oil Information Service, Inc PO Box 45738 Los Angeles, CA 90045-0738 Mark Wedman Halliburton 6900 Arctic Blvd. Anchorage, AK 99502 Baker Oil Tools 4730 Business Park Blvd., #44 Anchorage, AK 99503 Gordon Severson 3201 Westmar Cr. Anchorage, AK 99508-4336 James Gibbs PO Box 1597 Soldotna, AK 99669 Richard Wagner PO Box 60868 Fairbanks, AK 99706 Williams Thomas Arctic Slope Regional Corporation Land Department PO Box 129 Barrow, AK 99723 ) Mary Jones XTO Energy, Inc. Cartography 810 Houston Street, Ste 2000 Ft. Worth, TX 76102-6298 Robert Gravely 7681 South Kit Carson Drive Littleton, CO 80122 Richard Neahring NRG Associates President PO Box 1655 Colorado Springs, CO 80901 Samuel Van Vactor Economic Insight Inc. 3004 SW First Ave. Portland, OR 97201 Schlumberger Drilling and Measurements 2525 Gambell Street #400 Anchorage, AK 99503 Ciri Land Department PO Box 93330 Anchorage, AK 99503 Jack Hakkila PO Box 190083 Anchorage, AK 99519 Kenai National Wildlife Refuge Refuge Manager PO Box 2139 Soldotna, AK 99669-2139 Cliff Burglin PO Box 70131 Fairbanks, AK 99707 North Slope Borough PO Box 69 Barrow, AK 99723 ) David McCaleb IHS Energy Group GEPS 5333 Westheimer, Ste 100 Houston, TX 77056 George Vaught, Jr. PO Box 13557 Denver, CO 80201-3557 John Levorsen 200 North 3rd Street, #1202 Boise,ID 83702 Michael Parks Marple's Business Newsletter 117 West Mercer St, Ste 200 Seattle, WA 98119-3960 David Cusato 200 West 34th PMB 411 Anchorage, AK 99503 Jill Schneider US Geological Survey 4200 University Dr. Anchorage, AK 99508 Darwin Waldsmith PO Box 39309 Ninilchick, AK 99639 Penny Vadla 399 West Riverview Avenue Soldotna, AK 99669-7714 Bernie Karl K&K Recycling Inc. PO Box 58055 Fairbanks, AK 99711 THE STATE 01ALASKA GOVERNOR MIKE DUNLEAVY Alaska Oil and Gas Conservation Commission ADMINISTRATIVE APPROVAL STORAGE INJECTION ORDER NO. 2A.002 Mr. Anthony McConkey Reservoir Engineer Hilcorp Alaska, LLC PO Box 99524-4027 Anchorage, AK 99524 Re: Docket Number: SIO -19-001 333 West Seventh Avenue Anchorage, Alaska 99501-3572 Main: 907.279.1433 Fax: 907.276.7542 ww .aogcc.alaska.gov Request for administrative approval to amend Rule 4 of Storage Injection Order No. 2A to revise the reporting date for the annual material balance report For the Kenai Gas Storage Facility #1 and #7A wells. Swanson River Field Swanson River Unit Dear Mr. McConkey: By letter dated April 1, 2019, Hilcorp Alaska, LLC (Hilcorp), requested an administrative approval to revise the reporting period and reporting due date for the Annual Material Balance report required by Rule 4 of Storage Injection Order No. 2A (SIO 2A) to be consistent with other fields for which Hilcorp has to prepare annual reports. In accordance with Rule 6 of SIO 2A, the Alaska Oil and Gas Conservation Commission (AOGCC) hereby GRANTS Hilcorp's request SIO 2A was issued on June 25, 2004, and Rule 4 states: "The operator shall annually provide to the Commission material balance calculations of the gas production and injection volumes to provide assurance of continued reservoir confinement of the gas storage volumes. This information shall be submitted no later than 60 days after each anniversary date of this Order for the 12 -month period ending on that anniversary date." The reporting due date for these reports is August 23`d of each year and the reporting period is June 26" through June 25th. Hilcorp has to supply many annual reports for its operations. All other such reports are due on or before April I" of each year and cover the period of January 151 through December 3151 of the previous year. Revising the reporting due date and reporting period for SIO 2A to be consistent with Hilcorp's other operations will make regulatory compliance easier. Rule 6 of SIO 2A allows the AOGCC to amend any rule in the order so long as hearing is not otherwise required, the change does not promote waste or jeopardize correlative rights, is based on sound engineering and geosciences principles, and will not result in an increased risk of fluid SIO 2A.002 May 21, 2019 Page 2 of 2 movement into freshwater. Hilcorp's request complies with all of these conditions because it is strictly a paperwork filing issue. NOW THEREFORE IT IS ORDERED, Rule 4 of SIO 2A is revised to read as follows: RULE 4. ANNUAL MATERIAL BALANCE The operator shall annually provide to the Commission material balance calculations of the gas production and injection volumes to provide assurance of continued reservoir confinement of the gas storage volumes. This information shall be submitted no later than April list of each year and shall cover the period of operations from January 1St through December 31 St of the previous year. DONE at Anchorage, Alaska and dated May 21, 2019. Danier1eamo.t, Jr. J ie L. Chmielowski Commissioner 06mmissioner 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 the 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 ran 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 "ALASKA GOVERNOR MICHAEL, J. DUNLE.AVY Alaska Oil and Gas Conservation Commission 333 West Seventh Avenue Anchorage, Alaska 99501-3572 Main: 907.279.1433 ADMINISTRATIVE APPROVAL Fax: 907.276.7542 STORAGE INJECTION ORDER NO. 2A.002 www.aogcc.alaska.gov Mr. Anthony McConkey Reservoir Engineer Hilcorp Alaska, LLC PO Box 99524-4027 Anchorage, AK 99524 Re: Docket Number: SIO -19-001 Request for administrative approval to amend Rule 4 of Storage Injection Order No. 2A to revise the reporting date for the annual material balance report For the Kenai Gas Storage Facility #1 and #7A wells. Swanson River Field Swanson River Unit Dear Mr. McConkey: By letter dated April 1, 2019, Hilcorp Alaska, LLC (Hilcorp), requested an administrative approval to revise the reporting period and reporting due date for the Annual Material Balance report required by Rule 4 of Storage Injection Order No. 2A (SIO 2A) to be consistent with other fields for which Hilcorp has to prepare annual reports. In accordance with Rule 6 of SIO 2A, the Alaska Oil and Gas Conservation Commission (AOGCC) hereby GRANTS Hilcorp's request SIO 2A was issued on June 25, 2004, and Rule 4 states: "The operator shall annually provide to the Commission material balance calculations of the gas production and injection volumes to provide assurance of continued reservoir confinement of the gas storage volumes. This information shall be submitted no later than 60 days after each anniversary date of this Order for the 12 -month period ending on that anniversary date." The reporting due date for these reports is August 231 of each year and the reporting period is June 26th through June 25`". Hilcorp has to supply many annual reports for its operations. All other such reports are due on or before April 1st of each year and cover the period of January I' through December 3151 of the previous year. Revising the reporting due date and reporting period for SIO 2A to be consistent with Hilcorp's other operations will make regulatory compliance easier. Rule 6 of SIO 2A allows the AOGCC to amend any rule in the order so long as hearing is not otherwise required, the change does not promote waste or jeopardize correlative rights, is based on sound engineering and geosciences principles, and will not result in an increased risk of fluid SIO 2A.002 May 21, 2019 Page 2 of 2 movement into freshwater. Hilcorp's request complies with all of these conditions because it is strictly a paperwork filing issue. NOW THEREFORE IT IS ORDERED, Rule 4 of SIO 2A is revised to read as follows: RULE 4. ANNUAL MATERIAL BALANCE The operator shall annually provide to the Commission material balance calculations of the gas production and injection volumes to provide assurance of continued reservoir confinement of the gas storage volumes. This information shall be submitted no later than April I' of each year and shall cover the period of operations from January I' through December 31 at of the previous year. DONE at Anchorage, Alaska and dated May 21, 2019. //signature on file// Daniel T. Seamount, Jr Commissioner //signature on file// Jessie L. Chmielowski Commissioner AND APPEAL 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 the 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. Bernie Karl K&K Recycling Inc. Gordon Severson Penny Vadla P.O. Box 58055 3201 Westmar Cir. 399 W. Riverview Ave. Fairbanks, AK 99711 Anchorage, AK 99508-4336 Soldotna, AK 99669-7714 George Vaught, Jr. P.O. Box 13557 Denver, CO 80201-3557 Darwin Waldsmith P.O. Box 39309 Ninilchik, AK 99639 Richard Wagner P.O. Box 60868 Fairbanks, AK 99706 FHE STATE Alaska Oil and Gas ALASKA. Conservation Commission r,M I:HNOR A11K1.IWNLEAV, 333 west Seventh Avenue Anchorage, Alaska 99501-3572 Main: 907.279.1433 ADMINISTRATIVE APPROVAL Fox: 907.276.7542 STORAGE INJECTION ORDER NO. 2A.003 www.00gcc.claska.gov Mr. Monty M. Myers Drilling Manager Hilcorp Alaska, LLC 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Re: Docket Number: SIO -20-003 Amending Storage Injection Order No. 2A to authorize the proposed Kenai Gas Storage Field #lA (PTD 220-063) well to replace the Kenai Gas Storage Field #1 (PTD 161-008) for storage operations. Tyonek 64-5 Gas Storage Sand Swanson River Field Swanson River Unit Dear Mr. Myers: On its own motion the Alaska Oil and Gas Conservation Commission (AOGCC) is amending Storage Injection Order No. 2A (SIO 2A) to replace the currently authorized Kenai Gas Storage Field (KGSF) #1 well with the recently permitted KGSF #IA well. SIO 2A was issued on June 25, 2004 and authorized using the KGSF #1 well for storage injection/production operations in the Tyonek 64-5 Sand. On October 6, 2004, the AOGCC issued SIO 2A.001, which administratively amended SIO 2A to add the KGSF #7A (PTD 204-163) to be used for gas storage operations in the Tyonek 64-5 Sand. SIO 2A.001 also required that if the operator wished to add additional storage wells in the Tyonek 64-5 Sand it would have to formally define a gas storage pool first. On August 21, 2020, Hilcorp Alaska, LLC (HAK) submitted a permit to drill application to redrill the existing KGSF #1 well as the KGSF #IA well and use this well for gas storage operations in the Tyonek 64-5 Sand. HAK stated that in February 2020, the KGSF #1 well sanded in, was not usable as a gas storage well, and workover operations were not practical. HAK proposed plugging the existing wellbore and redrilling it to a new bottomhole location in the Tyonek 64-5 Sand. Although the KGSF #1 A well will be a new well in the Tyonek 64-5 Sand its purpose is not to add to the existing number of wells completed in the sand for gas storage purposes but to replace a previously authorized well that failed and is no longer usable. As such, HAK's proposed well does not trigger the requirement in SIO 2A.001 to formally define a gas storage pool if additional storage wells are drilled in the Tyonek 64-5 Sand. However, SIO 2A does need to be amended to authorize the new replacement well. SIO 2A.003 October 13, 2020 Page 2 of 2 NOW THEREFORE IT IS ORDERED, SIO 2A is amended to authorize the KGSF #lA well to replace the KGSF #1 well for gas storage operations in the Tyonek 64-5 Sand. DONE at Anchorage, Alaska and dated October 13, 2020. JerennM. Daniel T. ore�uib.snm 4 a.1WT. Jessie L. Price '""`"""""'" Seannount,Jr. m'°"""": Chmielowski Jeremy M. Price Daniel T. Seamount, Jr. Jessie L. Chmielowski Chair, Commissioner Commissioner Commissioner 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 w 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 the 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. Bernie Karl K&K Recycling Inc. P.O. Box 58055 Fairbanks, AK 99711 George Vaught, Jr. P.O. Box 13557 Denver, CO 80201-3557 Gordon Severson 3201 Westmar Cir. Anchorage, AK 99508-4336 Darwin Waldsmith P.O. Box 39309 Ninilchik, AK 99639 Richard Wagner P.O. Box 60868 Fairbanks, AK 99706 10 Hilcorp Alaska, LLC 11 April 1, 2019 Chris Wallace, Senior Petroleum Engineer Alaska Oil & Gas Conservation Commission 333 W. 7th Avenue, Suite 100 Anchorage, Alaska 99501-3539 Re: Kenai Gas Storage Facilty #1 SIO #7, Rule #4 Amendment Dear Mr. Wallace: Post Office Box 244027 Anchorage, AK 99524-4027 3800 Centerpoint Drive Suite 1400 Anchorage, AK 99503 RECEIVED APR 01 2019 AOGCC Per Rule #4 of Storage Injection Order 42A, Hilcorp is required to submit annual material balance calculations of gas and production volumes to provide assurance of continued reservoir confinement of the gas and storage volumes no later than 60 days after each anniversary date of the Order for the 12 month period ending that anniversary date. As the Order is dated June 15tH 2001, Hilcorp's current due date for this particular report is August 15th of each consecutive year. This is the only due date required in any of Hilcorp's SIO's that does not follow a calendar year of January 1St to December 31St In order to increase efficiencies in the annual reporting schedule, Hilcorp would like to request to amend Rule #4 of SIO #2A to require annual material balance calculations of production and injection volumes submissions for the prior calendar year to be filed on or before April 1St Please find the enclosed annual material balance calculations as described in Rule #4 of SIO #2A for January 1, 2018 to December 31, 2018. Should you have questions, please contact Anthony McConkey at 777-8460 or Holly Tipton at 777-8330. Sincerely, �ry7. Anthony McConkey Reservoir Engineer I 0? Regg, James B (DOA) From: Larry Greenstein [Igreenstein@hilcorp.com] r off P/l31 Sent: Thursday, August 09, 2012 3:04 PM l To: Regg, James B (DOA); Schwartz, Guy L (DOA); Wallace, Chris D (DOA) Cc: Chet Starkel; Chris Kanyer Subject: 2012 Julys SRF Tyonek 64 -5 Sand Storage Well Monitoring Report Attachments: Master Well List TIO Report 2012 08 01.xis Hi Jim, Guy & Chris, Here is July's monthly report for the wells requiring pressure monitoring for the SRF Tyonek 64 -5 Sand Gas Storage ✓ reservoir. As this storage reservoir doesn't have any monitoring wells within a'/ mile radius, this report is provided as a means of monitoring the storage wells themselves. There wasn't much going on this month in the 64 -5 sand, although there was a little injection at the end of the month. Both wells' pressures appear to be stable. Larry 1 Plot Pressure & Rate vs Time - Well KGSF #1 - .S'iift.7. , ,Zel �9 5/8" 7000 2500 - - - - - -- -- -- - --__. Tubing Ill Vol Inj Vol Prod 6000 2000 - _. I i , ∎' II - 5000 'II . 1 400 300 — I I I _ - _ - --- ----- - - -_._ -- - - - --- ---- - - - - -- -- -- 2000 500 I II I 1000 I I 07 ^'` ' 0 N N N N N N O O m 7 E O ,7 M M N N M M O N n r n n n n n c, Date bing Vol lnj Vol TIO Report 07/31/12 2112 0 07/30/12 2098 0 Data Sheet 07/29/12 2106 0 30 07/28/12 2096 0 0 07/27/12 2078 159 166 KGSF #1 07/26/12 i 2069 0 0 07/25/12 2078 07/24/12 2078 FLOWING 07/23/12 2084 0 0 07/22/12 2084 0 0 07/21/12 2089 0 0 Permit # 1610080 07/20/12 i 2097 0 0 07/19/12 2109 0 0 07/18/12 2098 0 0 API # 50 - 133 - 10160 - 07/17/12 2083 0 0 07/16/12 2040 0 0 07/15/12 2041 0 0 01/31/2012 to 08/01/2012 07/14/12 2083 0 0 07/13/12 2041 0 0 07/12/12 2083 0 0 07/11/12 2083 0 0 07/10/12 2060 0 0 07/09/12 2083 0 0 07/08/12 2074 0 0 07/07/12 2051 0 0 07/06/12 2051 0 0 07/05/12 2083 0 0 07/04/12 2083 0 0 07/03/12 2060 0 0 07/02/12 2072 0 0 07/01/12 2067 0 0 06/30/12 2083 1 0 06/29/12 2091 0 0 06/28/12 2087 2 2 06/27/12 2055 641 753 06/26/12 2055 0 0 8/13/2012 9:32 AM - TIO Reports 7e.xls 11 Dolan Master Well List TIO Report 2012 08 01 KGSF #1 • • 5 2,4 • Plot Pressure & Rate vs Time - Well KGSF #7A 10000 2500 ......9 8000 Tubing 2000 ____._._- - -_... --- --- - - - - -- " -- - . - ---- ....■•Vol Prod Vol Inj E 1500 _ - ....1 -- 6000 LL u a L , - -.._ _.. 4 )[ ... ..-- -- - --- --- _..... - --._... _.._ 1000 _._.. -- it ---..... _ -- 4000 tk 500 - - I _...- I - - - - -- — - - -_. - .�_. -_ —_ 2000 II lilt ii i� i i ►` . i u , i .i 0 0 N N N N N N N 0 o m am M p M ,- M N N M V o 0 C O O O O O O Date ubing TIO Report 07/31/12 2111 0 07/30/12 2125 0 Data Sheet 07/29/12 2052 0 07/28/12 2034 0 07/27/12 2031 0 KGSF #7A 07/26/12 2023 0 0 07/25/12 2033 07/24/12 2033 0 0 FLOWING 07/23/12 2050 0 0 07/22/12 2036 0 0 07/21/12 2046 0 0 Permit # 2041630 07/20/12 2040 0 0 07/19/12 2042 0 0 07/18/12 2042 0 0 API # 50 133 - 20538 - 01 07/17/12 2063 0 0 07/16/12 2020 0 0 07/15/12 2026 0 0 01/31/2012 to 08/01/2012 07/14/12 2063 0 0 07/13/12 2026 0 0 07/12/12 2063 0 0 07/11/12 2063 0 0 07/10/12 2020 0 0 07/09/12 2063 0 0 07/08/12 2030 0 0 07/07/12 2023 0 0 07/06/12 2023 0 0 07/05/12 2063 0 0 07/04/12 2033 0 0 07/03/12 2029 0 0 07/02/12 2030 0 0 07/01/12 2032 0 0 06/30/12 2063 0 0 06/29/12 2104 0 0 06/28/12 2081 0 0 06/27/12 2070 1 905 06/26/12 i 2070 0 2665 8/13/2012 9:32 AM - TIO Reports 7e.xls 11 Dolan Master Well List TIO Report 2012 08 01 KGSF #7A • • Regg, James B (DOA) ZAP From: Larry Greenstein [Ireenstein @hilcorp.com] Sent: Monday, July 09, 2012 2:52 PM To: Regg, James B (DOA); Schwartz, Guy L (DOA) Cc: Chet Starkel; Chris Kanyer Subject: 2012 June's SRF Tyonek 64 -5 Sand Storage Well Monitoring Report Attachments: Master Well List TIO Report 2012 06 30.xls Hi Jim & Guy, Here is June's monthly report for the wells requiring pressure monitoring for the SRF Tvonek 64 -5 Sand Gas Storage reservoir. As this storage reservoir doesn't have any monitoring wells within a'/ mile radius, this report is provided as a means of monitoring the storage wells themselves. The summer refill has begun. There was very little production and mostly injection into this storage reservoir this last month. Both wells' pressures appear to be responding as expected. Larry 1 Plot Pressure & Rate vs Time - Well KGSFt 7 „ —.9 5 / 8 " t 8000 Tubing 2500 Vol Inj Vol Prod 7000 2000 - . _.__.._ . -' 11 ' 6000 11 I 50 1500 -._ n - -- - - -- - -. _ __ _ � LL ' v y 4000 1000 T - - I I - ------ -- ._._ - -- - -_. _ 3000 IN 2000 500 1 - I I - - - -- I I I I I 1000 0 , 1- fl - N N N N N N M N co N N N N CO n n o o n Date TIO Report 06/30/12 06/29/12 Data Sheet 06/28/12 06/27/12 06/26/12 KGSF #1 06/25/12 06/24/12 06/23/12 FLOWING / 06/22/12 06/21/12 06/20/12 Permit # 1610080 06/19/12 06/18/12 06/17/12 API # 50- 133 - 10160 -00 06/16/12 06/15/12 06/14/12 12/30/2011 to 06/30/2012 06/13/12 06/12/12 06/11/12 06/10/12 06/09/12 i 06/08/12 06/07/12 06/06/12 06/05/12 06/04/12 06/03/12 06/02/12 06/01/12 05/31/12 05/30/12 05/29/12 05/28/12 05/27/12 05/26/12 7/17/2012 12:22 PM - TIO Reports 7e.xls 11 Dolan Master Well List TIO Report 2012 06 30 KGSF #1 SSj c 2,A 1111/ 4110 • Plot Pressure & Rate vs Time - Well KGSF #7A 12000 2500 . __.... _.._._ ._.._.- - --- - - -__- __ - ----- I Ill I� ! - 10000 2000 ______._____ •95/8" • — Tubing — Vollnj 8000 —Vol Prod 2 1500 I — — N V u. T ' I -6000 2 O. 1000 �t— ( 1 _ ----- ._...---- ..___t i, I I I I 4000 500 - -_ _. _.— __ —__. I I 2000 Lai t N N N N N n c M N N ry c, N n Date 95/8" Tubing Vollnj Volp TIO Report 06/30/12 175 115 2063 0 06/29/12 175'. 110 2104 0 0 Data Sheet 06/28/12 175; 115 2081 0 0 06/27/12 175 2070 905 1 06/26/12 2070 2665 0 KGSF #7A 06/25/12 2080 3413 0 06/24/12 2104 4125 0 06/23/12 2096 4280 o FLOWING 06/22/12 2046 4348 0 06/21/12 2056 5242 0 06/20/12 2026 3836 o Permit # 2041630 06/19/12 1991 3478 0 06/18/12 2021 3352 0 06/17/12 2013 4073 o API # 50- 133 - 20538 -01 06/16/12 1967 3881 0 06/15/12 1944 2458 0 06/14/12 1918 1301 0 12/30/2011 to 06/30/2012 06/13/12 1917 0 0 06/12/12 1879 0 701 06/11/12 1912 0 0 06/10/12 1912 0 0 06/09/12 1917 0 256 06/08/12 1880 0 1564 06/07/12 1927 0 0 06/06/12 1924 0 0 06/05/12 1935 0 0 06/04/12 1967 1542 0 06/03/12 1962 2240 0 06/02/12 1941 2436 0 06/01/12 1936 1663 0 05/31/12 ' 1938 183 0 05/30/12 1938 2349 0 05/29/12 1934 3061 0 05/28/12 1926 3655 0 05/27/12 1898 2884 0 05/26/12 33 3088 0 7/17/2012 12:22 PM - TIO Reports 7e.xls i 1 Dolan Master Well List TIO Report 2012 06 30 KGSF #7A ` • S.Zp Regg, James B (DOA) From: Larry Greenstein [Ireenstein @hilcorp.com] Sent: Friday, June 15, 2012 2:59 PM To: Regg, James B (DOA); Schwartz, Guy L (DOA)C Cc: Chet Starkel; Chris Kanyer Subject: 2012 May's SRF Tyonek 64 -5 Sand Storage Well Monitoring Report Attachments: Master Well List TIO Report 2012 06 01.xIs Hi Jim & Guy, Here is May's monthly report for the wells requiring pressure monitoring for the SRF Tyonek 64 -5 Sand Gas Storage reservoir. As this storage reservoir doesn't have any monitoring wells within a'/ mile radius, this report is provided as a means of monitoring the storage wells themselves. There was mostly production from these wells last month although, by the end of the month, some injection had occurred. Both wells' pressures appear to be responding as expected. Larry 1 • • za Plot Pressure & Rate vs Time - Well KGSF #7A 1 12000 3000 — - - - - --_ .. - - -___ ∎95/8 Tubing ..Vol Inj Vol Prod - 2500 - - -- -- ._._..-- --- - -- - 10000 2000 - - - -__ - _..... r 8000 I 2 3 LL d 1500. _. - -. -_ __- - _ __. - - - --- - - -_ '_ _ -.. __ _ 6000 1 1000 __. .. 1 \--- -� - - ___ --._ - - -- - i I I/ f __ 4000 500 -_ - _... I -. -..._ -.- -_ - _..-- -. p 2000 MO ill. 1111 � I • I I 0 i`��-• 1� ��17�, � • ♦ ■�n►� ` 1 •ii1i�, =11�IIR, 0 N „ N N N m o-, o M M N co N N n Date jibing Vol Inj Vol Prod TIO Report 06/01/12 1936 1663 0 05/31/12 1938 183 0 Data Sheet 05/30/12 1938 2349 0 05/29/12 1934 3061 0 05/28/12 1926 3655 0 KGSF #7A 05/27/12 1898 2884 0 05/26/12 1933 3088 0 05/25/12 1964 544 o FLOWING 05/24/12 1964 1616 0 05/23/12 1876 788 0 05/22/12 1845 0 721 Permit # 2041630 05/21/12 1803 0 4727 05/20/12 1803 0 4854 • 05/19/12 1797 4538 API # 50 - 133 - 20538 - 05/18/12 1818 0 2885 05/17/12 2005 1813 0 05/16/12 1902 1610 0 12/01/2011 to 06/01/2012 05/15/12 1861 25 5337 05/14/12 1861 0 5048 05/13/12 50 1886 0 3566 05/12/12 f50 1961 0 0 05/11/12 , 138 1961 0 650 05/10/12 -138 1961 0 0 05/09/12 - -: 138 1961 0 0 05/08/12 150 140 1966 0 0 05/07/12 50 140 1957 0 0 05/06/12 a50 140 1963 0 0 05/05/12 ;50 140 1961 0 0 05/04/12 750 140 1954 0 0 05/03/12 50 140 1953 0 0 05/02/12 150 140 1875 0 3733 05/01/12 150 - 140 1869 4175 04/30/12 100- ” 100 1940 0 3602 04/29/12 '140 1984 0 343 04/28/12 100i 1996 0 2272 04/27/12 100 1994 0 0 6/18/2012 12:11 PM - TIO Reports 7e.xls 11 Dolan Master Well List TIO Report 2012 06 01 KGSF #7A • • 55-6) ZA Plot Pressure & Rate vs Time - Well KGSF #1 3000 — •95/8" __ __ _._ 10000 — Tubing Vol Inj ) \ Vol Prod 2500 .._. _._ ._... ___. _ _ ...._.. _...... _.._ ._.. ..._. ..__ 8000 2000._ _..._... ____.... i iii_ 6000 LL a 1500 - -__- _._._ k ' 4000 I -111k 1000 - .� - - - -- -- - --+-- --- -- - 1 ___. .... ----- - -- - -- I 2000 500 _.... _. _ — — _.... .__. __..... I IKL 0 . n 0 N N N N N m O N N N O C M N 1- n n n n n Date ubing Vol Inj Vol TIO Report 06/01/12 1919 0 05/31/12 1920 0 Data Sheet 05/30/12 1920 0 05/29/12 1913 0 05/28/12 s 1897 0 0 KGSF #1 05/27/12 1886 0 0 05/26/12 1874 0 0 05/25/12 1864 0 0 FLOWING 05/24/12 1864 0 0 05/23/12 1851 0 0 05/22/12 1845 0 o Permit # 1610080 05/21/12 1858 0 1732 05/20/12 1858 0 0 05/19/12 - 1870 0 0 API # 50 - 133 - 10160 - 05/18/12 1. 0 1882 0 388 05/17/12 1897 0 3431 05/16/12 1791 0 2446 12/01/2011 to 06/01/2012 05/15/12 1785 0 5463 05/14/12 1785 0 5760 05/13/12 1842 0 3350 05/12/12 1960 0 0 05/11/12 1960 0 0 05/10/12 b 1960 0 0 05/09/12 0 1963 0 0 05/08/12 '.,, 1962 0 0 05/07/12 1961 0 0 05/06/12 1960 0 0 05/05/12 50' 0 1960 0 0 05/04/12 0 1958 0 0 05/03/12 r .0 1954 92 0 05/02/12 1895 0 1494 05/01/12 1957 0 0 04/30/12 0 1994 0 0 04/29/12 " 1990 0 0 04/28/12 2000 0 0 04/27/12 2000 0 0 6/18/2012 12:11 PM - TIO Reports 7e.xls 1.1 Dolan Master Well List TIO Report 2012 06 01 KGSF #1 ZA Regg, James B (DOA) From: Larry Greenstein [Ireenstein @hilcorp.com] Sent: Tuesday, May 08, 2012 3:20 PM � 51?(/ To: Regg, James B (DOA); Schwartz, Guy L (DOA) Cc: Chet Starkel; Luke Saugier; Chris Kanyer Subject: 2012 April's SRF Tyonek 64 -5 Sand Storage Well Monitoring Report Attachments: Master Well List TIO Report 2012 05 01.xis Hi Jim & Guy, Here is April's monthly report for the wells requiring pressure monitoring for the SRF Tyonek 64 -5 Sand Gas Storage reservoir. As this storage reservoir doesn't have any monitoring wells within a'/ mile radius, this report is provided as a means of monitoring the storage wells themselves. There was mostly production from these wells last month. This will be changing as the spring unfolds and injection into the storage reservoir begins in earnest. Both wells' pressures appear to be responding as expected. Larry 1 Plot Pressure & Rate vs Time - Well KGSF #1 7 .. 3000 — ••■•■9 5/8" - -- _ , 10000 Tubing .......VoI Inj —Vol Prod -- — _ -- 2500 - -- • . / I -- A 1 8000 -- - -- -- - - - I 1 2000 .i. .__ • IF 6000 i u a` 1500 .. ....__ - -__._ ..-- _._._... I _ . - -- _ i._. -- ------ --- -.. .-- .- ..- - -- 4000 1000 — - ...._._._...___ -. _ i , 4 41 1 �� r �� � � 2000 500 — 1 I - - -_ .. -.. ... - -- - - - - . - ,_. _r_r_ 0, l , . .0 N N N N ;._ ..= O O m 7 N N M M M N N N M 0 Date 7" bing Vol In) Vol Prod TIO Report 05/01/12 50 1 1957 04/30/12 1994 0 0 Data Sheet 04/29/12 1990 0 0 04/28/12 2000 0 0 04/27/12 2000 0 0 KGSF #1 04/26/12 2001 0 0 04/25/12 2003 0 0 04/24/12 2005 0 0 FLOWING 04/23/12 2005 0 0 04/22/12 2001 0 0 04/21/12 2001 0 0 Permit # 1610080 04/20/12 2079 5054 04/19/12 2116 5475 04/18/12 1997 1684 API # 50- 133 - 10160 -00 04/17/12 1990 0 0 04/16/12 1979 0 0 04/15/12 1960 0 0 10/31/2011 to 05/01/2012 04/14/12 1940 0 0 04/13/12 1911 0 0 04/12/12 1893 0 0 04/11/12 1889 0 0 04/10/12 1898 0 0 04/09/12 1799 0 3480 04/08/12 1933 0 0 04/07/12 1941 0 0 04/06/12 1943 0 1756 04/05/12 1, 1821 0 4913 04/04/12 1850 3591 04/03/12 1852 4089 04/02/12 1866 3576 04/01/12 2025 0 0 03/31/12 1982 1565 03/30/12 1869 4312 03/29/12 1913 3738 03/28/12 1925 2784 03/27/12 2041 0 0 5/9/2012 3:13 PM - TIO Reports 7e.xls 11 Dolan Master Well List TIO Report 2012 05 01 (2) KGSF #1 Plot Pressure & Rate vs Time - Well KGSF #7A 3000 ■■■9 5/8" J 12000 • Tubing m■VoI Inj ▪ Vol Prod 2500 ...‘11N.s...1(.141444..4"\\P‘At 10000 2000 - I U ♦ _ 8000 d 3 i ' u. N a 1500 1 t 6000 / 1000 I I , P 4000 \ iii \j ai i I 1 11 500 I I 2000 1 la - kg A A , 1 Ammmig . 1 i N N N N O M M N A N a N o n Date 7" 9 Tubing Vol Inj Vol Prod TIO Report 05/01/12 140 1869 04/30/12 100 1940 3602 Data Sheet 04/29/12 + 102 1984 0 343 04/28/12 100 100 1996 0 2272 04/27/12 100 100 1994 0 0 KGSF #7A 04/26/12 125 100 1996 0 742 04/25/12 100 101 1954 1801 04/24/12 110 110 2003 0 0 FLOWING 04/23/12 110 110 2000 0 0 04/22/12 110 110 1997 0 0 04/21/12 110 110 2005 0 1119 Permit # 2041630 04/20/12 160 110 2018 0 04/19/12 110 110 2013 0 04/18/12 110 110 2011 1409 API # 50- 133 - 20538 -01 04/17/12 110 110 2005 4030 0 04/16/12 110 112 2050 5288 0 04/15/12 120 110 2064 5953 10/31/2011 to 05/01/2012 04/14/12 150 110 1970 4571 04/13/12 50 110 1938 3684 0 04/12/12 190 104 1818 75 595 04/11/12 190 104 1850 0 3557 04/10/12 150 100 1875 0 3809 04/09/12 150 100 1864 4926 04/08/12 150 100 1893 4567 04/07/12 150 100 1922 3212 04/06/12 150 100 1908 3596 04/05/12 150 100 1951 1109 04/04/12 e 150 102 1932 4262 04/03/12 r 150 102 1971 4070 04/02/12 50 100 1986 3145 04/01/12 100 -- 100 2023 0 0 03/31/12 100 2015 0 0 03/30/12 9 2016 0 0 03/29/12 2030 0 0 03/28/12 1996 2613 03/27/12 2019 5492 5/9/2012 3:12 PM - TIO Reports 7e.xls .11 Dolan Master Well List TIO Report 2012 05 01 (2) KGSF #7A • • • EA- Regg, James B (DOA) From: Larry Greenstein [Ireenstein @hilcorp.com] J Sent: Wednesday, April 11, 2012 9:45 AM Z '1 /4 v To: Regg, James B (DOA); Schwartz, Guy L (DOA) Cc: Chet Starkel; Luke Saugier; Chris Kanyer Subject: 2012 March's SRF Tyonek 64 -5 Sand Storage Well Monitoring Report Attachments: Master Well List TIO Report 2012 04 01.xis Hi Jim & Guy, Here is March's monthly report for the wells requiring pressure monitoring for the SRF Tyonek 64 -5 Sand Gas Storage reservoir. As this storage reservoir doesn't have any monitoring wells within a'/ mile radius, this report is provided as a means of monitoring the storage wells themselves. There wasn't any injection into these wells last month, only production. That could easily change this month as the i weather warms. '-- Both wells' pressures appear to be responding as expected. Larry 1 4 • S Plot Pressure & Rate vs Time - Well KGSF #1 3000 — _._- ---- ..._— _-- ...._ - - -- -- -- --- ----- ------- - - - - -- — .- 10000 I -- Y 2500 7 1 • ••••••.9 5/8" 8000 Tubing •••■••••Vollnj j Vol Prod 2000 — — — I J — ' 6000 w h V 1 cu 1500 — � _ ,...._., j 2000 500 I I Iv I � II I N N N r. O O m co m O M M M N N O O a N CO n n n • • Plot Pressure & Rate vs Time - Well KGSF #7A • 3000 — — -- _ - - -- - - -- -- -- 1 000 i , 2500 , - 10000 •9 5/8" Tubing • Vol Inj Vol Prod 2000 1 ' — — — — 8000 LTLT A • L _�A N v 1 500 a �. - - - -- -_ -- I � 6000 , I \ 1000 - , 4000 V l'' 500 I „ ,_ f IIIIIIMIII/IMIIIIIIIIk/EIRIMIIIIIIIIIIIIIIIMIMMIIMIUMIMIii riiiiiiiiiiiiiiii . o 2000 N N N 0 z. O ZZ N= M M M Cr, N p cn —O N N , n 51 ZA- Regg, James B (DOA) From: Larry Greenstein [Ireenstein @hilcorp.com] Sent: Friday, March 09, 2012 9:55 AM jI t3 w To: Regg, James B (DOA); Schwartz, Guy L (DOA) Il Cc: Chet Starkel; Luke Saugier; Chris Kanyer Subject: 2012 February's SRF Tyonek 64 -5 Sand Storage Well Monitoring Report Attachments: Master Well List TIO Report 2012 03 01.xls Hi Jim & Guy, Here is February's monthly report for the wells requiring pressure monitoring for the SRF Tyonek 64 -5 Sand Gas Storage reservoir. As this storage reservoir doesn't have any monitoring wells within a % mile radius, this report is provided as a means of monitoring the storage wells themselves. There was less demand on the gas storage wells in February and we were able to get some gas into the ground early in the month. Both wells responded as expected to the swings in usage from injection to production. Both wells appear to be performing as expected so far this winter. Larry 1 3 '-.0 ZA- `'' Z l 1 Z Plot Pressure & Rate vs Time - Well KGSF #1 3000 - — � 10000 J 1 2500. ____.___ , I _ . II I , • _ hi •9 5 / 8 • 8000 ∎Tubing ■•••■• Vot Inj -V---- „._ _ Vol Prod 2000 — — -- CV I -- -- - - - – - -- - -� 6000 t ' v v E 1500 - filt r� 4000 1000 --- 1 -__ ,___L__ 1 il 500 – _ 'I f / i i� 2000 0, " t _ / 1 I ._ ,_ N N 0 - a7 09 CO m M N N N N n N r, n DSc) Z4 3 `g llz_ Plot Pressure & Rate vs Time - Well KGSF #7A - 12000 3000 10000 2500 k" - - -.. i - - - --- -- -- , 1 -- V 2000 - -- 9 5/8" 8000 al■TUbing ''Vol Inj v -Vol Prod LL 1 . 6000 1500 1- 1 � I it 1 1000 - - -- - I I I .�. y 40OO 500 I 2000 Ili A — 111 I ! ru. 11/1 r..,� 1M r 0. 0 N N z. O O 8 m c M co co N N N N • • 510 Z.4 Regg, James B (DOA) From: Larry Greenstein [Igreenstein©hilcorp.com] {, Sent: Friday, February 03, 2012 10:08 AM�� 21h (Iv To: Regg, James B (DOA); Schwartz, Guy L (DOA) C Cc: Chet Starkel; Luke Saugier; Chris Kanyer Subject: 2012 Januarys SRF Tyonek 64 -5 Sand Storage Well Monitoring Report Attachments: Master Well List TIO Report 2012 01 31.xis Hi Jim & Guy, Here is January's monthly report for the wells requiring pressure monitoring for the SRF Tyonek 64 -5 Sand Gas Storage reservoir. As this storage reservoir doesn't have any monitoring wells within a 1 /2 mile radius, this report is provided as a means of monitoring the storage wells themselves. With the January we had, there was a high demand on the storage wells and they responded with no surprises. Very little injection was possible this last month due to the cold weather. Both wells appear to be performing as expected so far this winter. Larry 1 • • Plot Pressure & Rate vs Time - Well KGSF #1 3000 — 1 10000 kil J — 1 2500 lkir ....w itil AA..\\V\l‘V- V -- \lk 8000 2000 —9 5/8 �Tubing —vol 1 ill 1 Inj 6000 N m –.....Vol Prod a 1500 4000 kAA\ 1000 + ' - T I 500 i _ I - — 0 _ If 1 1 / 4 0 , , 0 . 0 N 7 7 .7 O m 00 OD r M N N N N N c-, n n 1 . • • Plot Pressure & Rate vs Time - Well KGSF #7A 12000 3000 -- - - — 10000 2500 _ .___ _ -- ____ -. - -- , 1 -- - -. -- 4 —. 2000 — 5/8" ..... Tubing Vol Inj 1.1.j. —Vol Prod 3 LL 0 V H U1 a` 1500 — — — 1111- ' I 6000 1000 i I 1 4000 ti I — — I [ 1 1 ! I 500 — I 2000 110 11 i I -0 _ N M N N N CO N N co a, o n n n i III CO ir � • • Chevron Chantal R Walsh Union Oil Company of California %101 Petroleum Engineer, P.E. 3800 Centerpoint Dr., Suite 100 Anchorage, AK 99503 Tel: 907-263-7627 Email walshc@chevron.com Email ` V I > r•• August 12, 2011 RECEIVED AUG 17ZO11 Mr. Dan Seamount, Chairman Dhaka & Gib Cos. Gemini* Alaska Oil and Gas Conservation Commission Attila 333 W. 7' Avenue, Suite 100 Anchorage, AK 99501 -3539 RE: 2011 Annual Material Balance Calculations of Production and Infection Volumes: Kenai Gas Storage Facility #1 (KGSF #1), Swanson River Field Dear Commissioner Seamount: Attached for Alaska Oil and Gas Conservation Commission (AOGCC) review is the 2011 annual material balance calculation of production and injection volumes for the Kenai Gas Storage Facility #1 (KGSF #1), as required per Storage Injection Order #2A. This material balance includes all primary production from the Tyonek 64 -5 reservoir (via the SRU 43 -28 wellbore), as well as all storage operations from the two gas storage wells, KGSF #1 and KGSF #7A. Primary production occurred from December 1998 through May 2001 and storage operations are on -going since June 2001. Attachment #1 is a table of monthly gas production and injection volumes for KGSF #1 (formerly SRU 43 -28) and KGSF #7A, from the commencement of primary production, through August 12, 2011. Pressures from the Tyonek 64 -5 reservoir have been measured /estimated from both downhole pressure buildups and from surface shut -in tubing pressures. The surface readings were then converted to downhole pressures at a common datum of 6,395 ft TVD. These data points are tabulated in Attachment #2 and plotted versus the net cumulative production (production less injection) on the standard P over Z plot, shown in Attachment #3. As noted in previous Annual Material Balance reports, Attachment #3 shows that the early injection cycle pressures deviated above the straight line path established by the primary depletion pressure points. Following the primary production and injection cycle, the next two or three cycles (production & injection) show a consistent trend of the pressure /cumulative production data points migrating further left of the straight line path established by the primary depletion pressure points. Over the last four years, cycles from 2007 — 2010, were fairly consistent, indicating continued reservoir confinement of the gas storage volume. The last injection /production season, 2010 — 2011, showed a deviation from the previous years' trends. At the end of the production cycle the KGSF #1 well had water in the well bore which was not MidContinent /Alaska /Chevron North America Exploration and Production www.chevron.com • • present in the KGSF #7A well. This led us to suspect a mechanical issue with KGSF #1. We are currently working over this well, and hope to resolve the issues. If you or your staff has any questions regarding this annual report, please contact me at 263- 7627. Sincerely, lilt —� Chantal Walsh Petroleum Engineer, P.E. Attachments: 1. KGSF #1 Facility Monthly production and injection volumes 2. Tyonek 64 -5 Sand POZ Data 3. KGSF #1 Facility (Tyonek 64 -5 Sand) - P/Z vs Cumulative Production Plot CC: Whitacre, Dave KGSF #1 Well File KGSF #7 Well File MidContinent/Alaska /Chevron North America Exploration and Production http: / /www.chevron.com • • ATTACHMENT #1 KENAI GAS STORAGE FACILITY #1 (KGSF #1) MONTHLY PRODUCTION AND INJECTION VOLUMES • AMENDED - 08/18111 ' SRU 43 -28 / KGSF #1 1 ______KGSF #7A 1 I Tyonek 64 -5 Sand Totals 1 Monthly Monthly Monthly Monthly Net Voidage Total Gas Gas Gas Gas Gas (Prod - Inj) Inventory Inj. Prod. Inj. Prod. Cum for POZ (Gas -In- Place) Month MCF MCF MCF MCF MCF MCF 1,544,000 Dec -98 0 55,137 55,137 1,488,863 Jan -99 0 79,404 134,541 1,409,459 Feb -99 0 64,367 198,908 1,345,092 Mar -99 0 73,920 272,828 1,271,172 Apr -99 0 62,180 335,008 1,208,992 May -99 0 76,912 411,920 1,132,080 Jun -99 0 76,903 488,823 1 ,055,177 Jul -99 0 72,268 561,091 982,909 Aug -99 0 60,311 621,402 922,598 Sep -99 0 48,667 670,069 873,931 Oct -99 0 42,056 712,125 831,875 Nov -99 0 39,385 751,510 792,490 Dec -99 0 33,783 785,293 758,707 Jan -00 0 39,890 825,183 718,817 Feb -00 0 20,895 846,078 697,922 Mar -00 0 38,219 884,297 659,703 Apr -00 0 35,729 920,026 623,974 May -00 0 22,502 942,528 601,472 Jun -00 0 8,627 951,155 592,845 Jul-00 0 30,397 981,552 562,448 Aug -00 0 56,660 1 ,038,212 505,788 Sep -00 0 30,505 1,068,717 475,283 Oct -00 0 29,330 1,098,047 445,953 Nov -00 0 48,633 1,146,680 397,320 Dec -00 0 29,741 1,176,421 367,579 Jan -01 0 46,236 1,222,657 321,343 Feb -01 0 47,777 1,270,434 273,566 Mar -01 0 37,213 1,307,647 236,353 Apr -01 0 24,719 1,332,366 211,634 May -01 0 6,196 1,338,562 205,438 Jun -01 106,800 0 1,231,762 312,238 Jul-01 219,660 0 1,012,102 531,898 1 Aug -01 226,151 0 785,951 758,049 1 Sep -01 197,762 1,331 589,520 954,480 Oct -01 44,964 60,382 604,938 939,062 Nov -01 73,130 142,418 674,226 869,774 Dec -01 28,281 159,046 804,991 739,009 Jan -02 134,429 47,741 718,303 825,697 Feb -02 102,768 65,400 680,935 863,065 Mar -02 250,716 4,507 434,726 1,109,274 Apr -02 107,164 51,031 378,593 1,165,407 May -02 89,218 16,147 305,522 1,238,478 Jun -02 106,081 3,868 203,309 1,340,691 O:\NAU MCBU Alaska\Depts\AssetDev \CIGas \Gas CF'ROpenmind \Swanson\Swanson RiverUnit1KGSF #1\SurveystPressures'A0GCC AMB Rpt\2010 \KGSF #1 #7 8-12-11 xis • • ATTACHMENT #1 KENAI GAS STORAGE FACILITY #1 (KGSF #1) MONTHLY PRODUCTION AND INJECTION VOLUMES I AMENDED - 08/18/11 1 SRU 43 -28 / KGSF #1 I r" #7A I I Tyonek 64-5 Sand Totals f Monthly Monthly Monthly Monthly Net Voidage Total Gas Gas Gas Gas Gas (Prod - Inj) Inventory Inj. Prod. Inj. Prod. Cum for POZ (Gas -in- Place) Month MCF MCF MCF MCF MCF MCF Jul -02 66,737 18,479 155,051 1,388,949 Aug -02 19,263 140,660 276,448 1,267,552 Sep-02 73,737 60,587 263,298 1,280,702 Oct -02 0 272,859 536,157 1,007,843 Nov -02 0 193,970 730,127 813,873 Dec -02 701 149,810 879,236 664,764 Jan -03 0 125,601 1,004,837 539,163 Feb -03 0 77,767 1 ,082,604 461 ,396 Mar -03 0 58,978 1,141,582 402,418 Apr -03 0 40,867 1,182,449 361,551 May -03 0 31,252 1,213,701 330,299 Jun -03 0 23,977 1,237,678 306,322 Jul-03 0 17,937 1,255,615 288,385 Aug -03 0 9,611 1,265,226 278,774 Sep-03 173,513 0 1,091,713 452,287 Oct -03 298,780 0 792,933 751,067 Nov -03 287,672 0 505,261 1,038,739 Dec -03 264,137 1,456 242,580 1,301,420 Jan -04 30,651 56,710 268,639 1,275,361 Feb -04 42,508 56,096 282,227 1,261,773 Mar -04 18,083 153,053 417,197 1,126,803 Apr -04 46,661 49,678 420,214 1,123,786 May -04 173,756 1,811 248,269 1,295,731 Jun -04 117,522 0 130,747 1,413,253 Jul -04 3,936 0 126,811 1,417,189 Aug -04 0 0 126,811 1,417,189 Sep -04 83,061 0 43,750 1,500,250 Oct -04 20,297 37,277 0 38,408 99,138 1,444,862 Nov-04 100,085 46,394 114,424 0 - 68,977 1,612,977 Dec -04 1,372 5,222 1,523 3,687 - 62,963 1,606,963 Jan -05 35,347 66,988 771 60,345 28,252 1,515,748 Feb -05 31,778 82,231 3,217 114,252 189,740 1,354,260 Mar -05 43,588 55,099 1,211 78,836 278,876 1,265,124 Apr -05 28,607 35,501 8,081 19,522 297,211 1,246,789 May -05 32,140 88,209 18,126 101,966 437,120 1,106,880 Jun -05 116,349 2,892 60,975 2,436 265,124 1,278,876 Jul -05 79,421 4,803 96,626 740 94,620 1,449,380 Aug -05 56,470 60,228 61,086 25,369 62,661 1,481,339 Sep -05 75,912 16,301 8,356 11,394 6,088 1,537,912 Oct -05 44,207 68,184 13,635 94,247 110,677 1,433,323 Nov -05 68,267 45,043 65,065 62,387 84,775 1,459,225 Dec -05 68,931 29,178 97,297 20,153 - 32,122 1,576,122 Jan -06 24,400 1 54,713 21 ,678 176,620 253,133 1 ,290,867 Feb -06 123,934 83,744 191,098 99,388 121,233 1,422,767 0:\ NAU\ MCBU\AIaska \Depts\AssetDev\CIGas \Gas CFT\Openrnind \Swanson \Swanson RiverUnit \KGSF #1 \Surveys\Pressures\AOGCC AMS Rpt\20101KGSF #1 #7 8- 12- 11.xls • • • ATTACHMENT #1 KENAI GAS STORAGE FACILITY #1 (KGSF#1) MONTHLY PRODUCTION AND INJECTION VOLUMES AMENDED - 08/18/11 SRU 43 -281 KGSF #1 I I KGSF #7A I 1 Tyonek 64 -5 Sand Totals I Monthly Monthly Monthly Monthly Net Voidage Total Gas Gas Gas Gas Gas (Prod - Inj) Inventory Inj. Prod. Inj. Prod. Cum for POZ (Gas -In- Place) Month MCF MCF VICF MCF MCF MCF Mar -06 54,898 145,807 35,421 147,941 324,662 1,219,338 Apr -06 131,597 34,604 85,982 19,989 161,676 1,382,324 May -06 106,658 4,759 110,253 26,840 - 23,636 1,567,636 Jun -06 50,042 675 14,923 482 - 87,444 1,631,444 Jul -06 0 79,130 0 36,777 28,463 1,515,537 Aug -06 63,182 130 16,045 0 - 50,634 1,594,634 Sep -06 45,366 0 18,939 0 - 114,939 1,658,939 Oct -06 18,013 58,243 42,099 7,334 - 109,474 1,653,474 Nov -06 30,592 82,779 24,730 98,430 16,413 1,527,587 Dec -06 55,743 17,160 102,029 14,959 - 109,240 1,653,240 Jan -07 21,586 59,415 34,936 91,755 - 14,592 1,558,592 Feb -07 7,025 59,181 41,275 106,823 103,112 1,440,888 Mar -07 15,008 58,203 83,830 92,486 154,963 1,389,037 Apr -07 75,784 6,866 185,316 8,751 - 90,520 1,634,520 May -07 8,872 23,772 32,655 55,100 - 53,175 1,597,175 Jun -07 11,714 0 740 134 - 65,495 1,609,495 Jul -07 7,350 0 0 0 - 72,845 1,616,845 Aug -07 1,767 891 230 0 - 73,951 1,617,951 Sep -07 0 253 0 240 - 73,458 1,617,458 Oct -07 9,706 18,077 11,553 6,168 - 70,472 1,614,472 Nov -07 13,638 40,135 7,563 8,237 - 43,301 1,587,301 Dec -07 8,443 61,237 3,820 132,338 138,011 1,405,989 Jan -08 20,892 75,223 751 88,161 279,752 1,264,248 Feb -08 8,162 54,785 8,134 83,015 401,256 1,142,744 Mar -08 94 1,014 0 4,872 407,048 1,136,952 Apr -08 46,111 3,360 11,372 0 352,925 1,191,075 May -08 88,929 12,687 218,106 12,037 70,614 1,473,386 Jun -08 20,487 4,309 32,741 0 21,695 1,522,305 Jul -08 8,057 0 2,181 0 11,457 1,532,543 Aug -08 19,270 484 0 0 -7,329 1,551,329 Sep -08 5,064 1,530 0 820 - 10,043 1,554,043 Oct -08 15,323 46,294 2,459 5,913 24,382 1,519,618 Nov -08 3,361 95,514 0 82,213 198,748 1,345,252 Dec -08 10,856 92,077 7,285 162,128 434,812 1,109,188 Jan -09 25,898 54,278 31,732 114,632 546,092 997,908 Feb -09 26,994 50,408 42,968 76,145 602,683 941,317 Mar -09 25,801 14,995 10,298 22,451 604,030 939,970 Apr -09 158,105 989 236,991 608 210,531 1,333,469 May -09 36,786 103 134,138 27 39,737 1,504,263 Jun -09 43,429 519 103,093 299 - 105,967 1,649,967 Jul -09 0 0 0 274 - 105,693 1,649,693 Aug -09 0 39,305 45,129 228 - 111,289 1,655,289 Sep -09 0 25,743 24,073 146 - 109,473 1,653,473 Oct -09 0 0 28,450 271 - 137,652 1,681,652 O1 NAUI MCBU\ Aiaska\Depts\AssetDevlC3GaslGas CFT\Openmind\Swanson\Swanson RiverUnit \KGSF #1 \Surveys\Pressures\AOGCC AMB Rpt120101KGSF #1 #7 8- 12- 11.xis • • ATTACHMENT #1 KENAI GAS STORAGE FACILITY #1 (KGSF#1) MONTHLY PRODUCTION AND INJECTION VOLUMES AMENDED - 08118/11 SRU 43 -28 / KGSF #1 I KGSF #7A I I Tyonek 64 -5 Sand Totals I Monthly Monthly Monthly Monthly Net Voidage Total Gas Gas Gas Gas Gas (Prod - Inj) Inventory Inj, Prod, Inj. Prod. Cum for POZ (Gas -In- Place) Month MCF MCF MCF MCF MCF MCF Nov -09 550 15,175 34,114 33,063 - 124,078 1,668,078 Dec-09 137 8,539 11,074 66,621 - 60,129 1,604,129 Jan -10 10,556 36,797 0 12,397 - 21,491 1,565,491 Feb -10 0 48,589 17 2,232 29,313 1,514,687 Mar -10 0 64,473 0 54,969 148,755 1,395,245 Apr -10 0 13,709 135 19,853 182,182 1,361,818 May -10 0 15,589 10,554 27,926 215,143 1,328,857 Jun -10 384 4,530 189 7,769 226,869 1,317,131 Jul -10 1,616 0 0 490 225,743 1,318,257 Aug -10 101,371 0 100,659 0 23,713 1,520,287 Sep -10 139,173 100 164,053 86 - 279,327 1,823,327 Oct -10 55197 12608 45,549 8,241 - 359,224 1,903,224 Nov -10 56236 46322 46,917 40,527 - 375,528 1,919,528 Dec -10 15497 137723 25,327 165,640 - 112,989 1,656,989 Jan -11 3983 187449 7,665 194,272 257,084 1,286,916 Feb -11 0 113321 0 158,649 529,054 1,014,946 Mar -11 0 20680 0 92,628 642,362 901,638 Apr -11 6736 1922 0 502 638,050 905,950 May -11 0 0 52,265 0 585,785 958,215 Jun -11 0 0 444,594 0 141,191 1,402,809 l O:\NAU \MCBU AIaska\Depts\AssetDev \CIGas \Gas CFT\Openrnind \Swanson \Swanson RiverUnit \KGSF #1 \Surveys \Pressures\AOGCC AMB Rpt\2010\KGSF #1 #7 8- 12- 11.xis T • ATTACHMENT #2 • Tyonek 64 -5 Sand POZ DATA Kenai Gas Storage Facility #1 (KGSF #1) Wells: KGSF #1 & KGSF #7A (Date ITYpe Test I Gauge Depth, ft I Cum, bcf I TbgP, psia I Res P, psia I Z I P/Z [Comments PRIMARY PRODUCTION 12/5/1998 SITP 0 0 2850 3306 0 8782 3764 SITP 7/27/1999 SITP 6395 0 561 1775 2059 0 8586 2398 SITP 9/9/2000 BHP buildup 6395 1 069 882 1100 0 9017 1220 PBU w/ Gauges FL - 6195' 2/20/2001 SITP 0 1.270 540 626 0 9396 667 SITP 6/9/2001 SITP 0 1.339 380 441 0 9566 461 SITP 2001 INJECTION CYCLE 6/9/2001 SITP 0 1339 380 441 0.9566 461 SITP 7/11/2001 SITP 0 1.148 875 1015 0.9078 1118 21 hr SITP after 618 hr injection 9/18/2001 SITP 0 0 673 1820 2111 0.8578 2461 4 hr SITP pnor to flow due to SHP ESD 9/20/2001 SITP 0 0.678 1810 2099 0 8580 2447 24 hr SITP after 1 day of flow on 9/19 at 5.5 mmcfd 10/9/2001 SITP 0 0 572 1980 2297 0 8562 2682 8 day SITP dunng C12 restaging 2002 INJECTION CYCLE 10/9/2001 SITP 0 0.572 1980 2297 0.8562 2682 8 day SITP dunng C12 restaging 4/5/2002 SITP 0 0 400 2280 2645 0 8584 3081 15 hour SIT? 7/12/2002 SIT? 0 0 190 2620 3039 0 8680 3501 SITP 7/26/2002 SITP 0 0 200 2630 3050 0 8684 3513 SITP 2002/2003 PRODUCTION CYCLE 7/26/2002 SITP 0 0.200 2630 3050 0.8684 3513 SITP 12/5/2002 SITP 0 0 740 1415 1641 0.8709 1884 SITP (65 hr SI) 7/25/2003 SITP 0 1 252 224 260 0 9739 267 SITP from surf PBU 2003 INJECTION CYCLE I 7/25/2003 SITP 0 1.252 224 260 0.9739 267 SITP from surf PBU 12/29/2003 SITP 0 0 254 2440 2829 0 8620 3282 SI duration = 19 hrs At shut m = 2 hrs; 2440 psig SITP; Ignores FL 2003/2004 PRODUCTION CYCLE I 12/29/2003 SITP 0 0.254 , 2440 2829 0.8620 3282 SI duration = 19 hrs At shut in = 2 hrs, 2440 psig SITP, Ignores FL 4/28/2004 SITP 0 0.445 2075 2406 0 8562 2810 SITP - 24 hr 2004 INJECTION CYCLE 4/28/2004 SITP 0 0 445 2075 2406 0 8562 2810 SITP - 24 hr 7/14/2004 SITP 0 0 153 2565 2974 0.8660 3435 SITP - 12 day 12/5/2004 SITP 0 -0 082 2865 3322 0 8789 3780 SITP- 4day • 2004/2005 PRODUCTION CYCLE I 12/5/2004 SITP 0 -0 082 2865 3322 0 8789 3780 SITP- 4day 6/8/2005 SITP 0 0 396 2080 2412 0 8562 2817 SITP - 6 hr 2005 INJECTION CYCLE 6/8/2005 SITP 0 0 396 2080 2412 0 8562 2817 SITP - 6 hr 8/8/2005 SITP 0 0 022 2828 3279 0 8771 3739 SIT? - 1 hr 12/30/2005 0 -0 044 2786 3231 _ 0 8751 _ 3692 SITP - 3 days 2005/2006 PRODUCTION CYCLE I 12/30/2005 0 -0 044 2786 3231 0 8751 3692 SITP - 3 days 3/22/2006 SITP 0 0.396 1905 2209 0.8567 2579 SITP - < 1 day (KGSF 47a) 2006 INJECTION CYCLE 3/22/2006 SITP 0 0 396 1905 2209 0 8567 2579 SITP - < 1 day (KGSF #7a) 7/10/2006 SITP 0 -0 100 2815 3264 0 8764 3725 SITP - 10 days 8/14/2006 SITP 0 -0.023 2687 3116 0.8707 3579 SITP -19 days (KGSF #7a) 9/30/2006 SITP 0 -0 127 2815 3264 0.8764 3725 SITP -12 day (KGSF #1) i 2006/2007 PRODUCTION CYCLE 9/30/2006 SITP 0 -0 127 2815 3264 0 8764 3725 SITP -12 day (KGSF #1) 12/4/2006 SIT? 0 -0 049 2665 3090 0.8698 3553 SITP -18 5 hrs (KGSF #7a) 1/10/2007 SITP 0 -0.003 2450 2841 0 8623 3295 SITP -9 hrs (KGSF #1) 3/26/2007 SITP 0 0.167 2231 2587 0.8576 3017 SITP -4 day (KGSF #1) 2007 INJECTION CYCLE 3/26/2007 SITP 0 0.167 2231 2587 0.8576 3017 SITP -4 day (KGSF #1) 4/27/2007 SITP 0 -0 117 2828 3279 0.8771 3739 SITP -8 day (KGSF #1) 6/4/2007 SITP 0 -0 065 2711 3144 0.8717 3606 SITP -5 day (KGSF #1) 9/11/2007 SITP 0 -0 088 2717 3151 0 8720 3598 SITP -27 day (KGSF #1) 2007/2008 PRODUCTION CYCLE 9/11/2007 SITP 0 -0 088 2717 3151 0 8720 3598 SITP -27 day (KGSF #1) 12/2/2007 SITP 0 -0 043 2604 3005 0.8669 3466 SITP - 6 days (KGSF #7A) - PMW 1/17/2008 SITP 0 0 243 2078 2397 0.8562 2800 SITP - 8 days (KGSF #7A) 4/8/2008 SITP 0 0.407 1760 2026 0 8592 2358 _SITP - 37 days (KGSF #7A) 2008 INJECTION CYCLE 4/8/2008 SITP 0 0.407 1760 2026 0.8592 2358 SITP - 37 days (KGSF #7A) 5/2/2008 SITP 0 0.353 1925 2218 0.8566 2567 SITP - -2 months (KGSF 47A) 7/1/2008 SITP 0 0.022 2643 3049 0.8684 3494 SITP - 22 day (KGSF #1) 7/28/2008 SITP 0 0 015 2648 3055 0 8686 3517 SITP - 22 days (KGSF #1) 9/16/2008 SITP 0 -0 005 2664 3073 0 8692 3535 SITP - 22 days (KGSF #1) 9/30/2008 SIT? 0 -0 010 2670 3080 0 8694 3543 SITP - 5 days (KGSF 41) • 8/15/201112 PMO \ NAU\ MCBU Alaska \Depts \AssetDev \CIGas \Gas CFTIOpenmmd\ Swanson \Swanson RrverUnit \KGSF #1 \Surveys\Pressures\AOGCC AMB Rpt\201 t\KGSF #1 & 47A 64 -5 Sd ALL POZ 7-11- 11 ,s1s64 -5 POZ Data • • ATTACHMENT #2 Tyonek 64 -5 Sand POZ DATA Kenai Gas Storage Facility #1 (KGSF #1) Wells: KGSF #1 & KGSF #7A IDate ITYPe Test I Gauge Depth, ft I Cum, bcf I ThgP, psa I Res P, psia I Z I P/Z IComments 2008/2009 PRODUCTION CYCLE 9/30/2008 SITP 0 -0.010 2670 3080 0.8694 3543 SITP - 5 days (KGSF #1) 1/16/2009 SITP 0 0 576 1392 1599 0 8728 1832 SITP - 2 5 days (KGSF #1) 2/19/2009 SITP 0 0.626 1376 1579 0.8737 1807 SITP - 24 hr SI (KGSF 61 & #7A) 2009 INJECTION CYCLE 2/19/2009 SITP 0 0 626 1376 1579 0 8737 1807 SITP - 24 hr SI (KGSF 61 & #7A) 6/14/2009 SITE 0 -0 065 2781 3209 0.8742 3671 SITP - 10 days SI (KGSF # I ) 7/13/2009 SITE 0 -0.106 2850 3287 0 8774 3746 SITP - 14 days SI (KGSF #1) 8/10/2009 SITE 0 _ -0.106 2828 3262 0 8764 3722 SITP - 42 days SI (KGSF #7A) 2009/2010 PRODUCTION CYCLE 10/12/2009 SITP 0 -0 109 2774 3218 0 8746 3680 SITP - 23days (KGSF 47A) 1/24/2010 SITP 0 -0 012 2630 3036 0 8679 3498 SITP - 4 days (KGSF 41) 3/8/2010 SITP 0 0.035 2528 2919 0 8644 3377 SITP - 4 day SI (KGSF 61 & 67A) 5/13/2010 SITP 0 0 181 2231 2576 0.8575 3004 SITP - 24 hrs SI (KGSF 61) 2010 INJECTION CYCLE 5/13/2010 SITP 0 0 181 2231 2576 0 8575 3004 SITP - 24 hrs SI (KGSF #1) 8/11/2010 SITE 0 0 176 2313 2671 0.8588 3110 SITP - 14 days SI (KGSF 41) 10/20/2010 SITE 0 -0.359 3134 3626 09042 4009 2010/2011 PRODUCTION CYCLE — 10/20/2010 SITP 0 -0 359 3134 3626 08842 4009 12/8/2010 SITP 0 -0349 3021 3500 0 8775 3895 SITP - 24 hours 12/21/2010 SITP 0 -0.200 2727 3176 0,8626 3577 I day SI 3/1/2011 SITP 0 0 533 1123 1310 0 8799 1472 48 hr SI 3/21/2011 Guuge PBU 5300 0 643 1171 0.8895 1316 2011 INJECTION CYCLE 3/21/2011 Guape PBU 5300 _ 0 643 1171 0 8895 1316 7/4/2011 Gaage PBU 5300 0 092 2720 0 8628 3152 72 hour shut in 7/31/2011 WI4P 0 0,092 2395 2796 0.8644 3235 3 weeks shut to 8/15/201112.54 PMOAN AUVNCBU \Alaska\Depts\AssetDev \CIGas \Gas CFT\Openmmd\ Swanson \Swanson erUn t\KGSF #I\ Surveys \Pressures\AOGCC AMB Rpt\2011\KGSF #1 & 67A 64 -5 Sd ALL POZ 7-11 - I I.x1s64 -5 POZ Data c ATTACHMENT #3 KGSF #1 FACILITY (Tyonek 64 -5 Sand) - P/Z vs Cumulative Production Plot 4500 - - Primary 4000 -- - — - -- —6 —'01 Inj cycle -- - ■03 Prod Cycle 3500 � F ♦_ - /- •••003 Inj Cycle • t 08 Prod Cycle • 3000 — ---- . --- _.._ .. __— ------- . - -. —. - —6 -08 Inj Cycle 2500 — - j� - - - -- --•-- 09 Prod Cycle 09 Inj Cycle ca o 2000 N‘. N _ w — Prod Cycle ``� — ._..._. — — 10Inj Cycle 1500 - -- — - -- - -- — _ \` ` ... -4-11 Prod/Inj Cycle 1000 - - - 50 -- - — - -- ♦. _ 0 , , I , U _i__ , , I ` -0.4 -0.2 0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 Cumulative Gas Produced (Bct) O:\ NAU\ MCBU \Alaska\Depts\AssetDev \CIGas \Gas CFT\Openmind\ Swanson \Swanson RiverUnit\KGSF #1 \Surveys\Pressures\AOGCC AMB Rpt\2011 \KGSF #1 & #7A 64 -5 Sd ALL POZ 7- 11- 11.xls � 7 E 0 Chevron August 13, 2010 Chantal R Walsh Petroleum Engineer, P.E. Union Oil Company of California 3800 Centerpoint Dr., Suite 100 Anchorage, AK 99503 Tel: 907-263-7627 Email walshc@chevron.com E C EllVE:D Mr. Dan Seamount, Chairman Alaska M tj @9s C"a rgfr►nis�hlfl Alaska Oil and Gas Conservation Commission",, sClr err 333 W. 7th Avenue, Suite 100 Anchorage, AK 99501-3539 RE: 2010 Annual Material Balance Calculations of Production and Infection Volumes: Kenai Gas Storage Facility #1 (KGSF#1). Swanson River Field Dear Commissioner Seamount: Attached for Alaska Oil and Gas Conservation Commission (AOGCC) review is the 2010 annual material balance calculation of production and injection volumes for the Kenai Gas Storage Facility #1 (KGSF#1), as required per Storage Injection Order #2A. This material balance includes all primary production from the Tyonek 64-5 reservoir (via the SRU 43-28 wellbore), as well as all storage operations from the two gas storage wells, KGSF #1 and KGSF VA. Primary production occurred from December 1998 through May 2001 and storage operations are on -going since June 2001. Attachment #1 is a table of monthly gas production and injection volumes for KGSF #1 (formerly SRU 43-28) and KGSF VA, from the commencement of primary production, through August 12, 2010. Pressures from the Tyonek 64-5 reservoir have been measured/estimated from both downhole pressure buildups and from surface shut-in tubing pressures. The surface readings were then converted to downhole pressures at a common datum of 6,395 ft TVD. These data points are tabulated in Attachment #2 and plotted versus the net cumulative production (production less injection) on the standard P over Z plot, shown in Attachment #3. As noted in previous Annual Material Balance reports, Attachment #3 shows that the early injection cycle pressures deviated above the straight line path established by the primary depletion pressure points. Following the primary production and injection cycle, the next two or three cycles (production & injection) show a consistent trend of the pressure/cumulative production data points migrating further left of the straight line path established by the primary depletion pressure points. The last two or three cycles (2007 — 2010) have been fairly consistent, indicating continued reservoir confinement of the gas storage volumes. MidContinent/Alaska/Chevron North America Exploration and Production www.chevron.com 0 0 Note that due to very little gas drawn out of storage in the 2009/2010 winter season, the injection cycle for 2010 has limited data points, as we just started refilling the reservoir in July. Additionally, the final 2008/2009 pressure/cumulative production data point (taken 2/19/09), was corrected in the spreadsheet and the corrected value is reflected in this year's plot. If you or your staff has any questions regarding this annual report, please contact Chantal Walsh at 263-7627. Sincerely, Chantal Walsh Petroleum Engineer, P.E. Attachments: 1. KGSF #1 Facility Monthly production and injection volumes 2. Tyonek 64-5 Sand POZ Data 3. KGSF #1 Facility (Tyonek 64-5 Sand) - P/Z vs Cumulative Production Plot CC: Whitacre, Dave KGSF #1 Well File KGSF #7 Well File MidContinent/Alaska/Chevron North America Exploration and Production http://www.chevron.com ATTACHMENT #1 0 KENAI GAS STORAGE FACILITY #1 (KGSF#1) MONTHLY PRODUCTION AND INJECTION VOLUMES SRU 43-28 I KGSF #1 KGSF VA I r Tyonek 64-5 Sand Totals Month Monthly Gas Inj. MCF Monthly Gas Prod. MCF Monthly Monthly Gas Gas Inj. Prod. MCF MCF Net Voidage (Prod - Inj) Cum for POZ MCF Total Gas Inventory (Gas -In -Place) MCF 1,544,000 Dec-98 0 55,137 55,137 1,488, 863 Jan-99 0 79,404 134,541 1,409,459 Feb-99 0 64,367 198,908 1,345,092 Mar-99 0 73,920 272,828 1,271,172 Apr-99 0 62,180 335,008 1,208,992 May-99 0 76,912 411,920 1,132,080 Jun-99 0 76,903 488,823 1,055,177 Jul-99 0 72,268 561,091 982,909 Aug-99 0 60,311 621,402 922,598 Sep-99 0 48,667 670,069 873,931 Oct-99 0 42,056 712,125 831,875 Nov-99 0 39,385 751,510 792,490 Dec-99 0 33,783 785,293 758,707 Jan-00 0 39,890 825,183 718,817 Feb-00 0 20,895 846,078 697,922 Mar-00 0 38,219 884,297 659,703 Apr-00 0 35,729 920,026 623,974 May-00 0 22,502 942,528 601,472 Jun-00 0 8,627 951,155 592,845 Jul-00 0 30,397 981,552 562,448 Aug-00 0 56,660 1,038,212 505,788 Sep-00 0 30,505 1,068,717 475,283 Oct-00 0 29,330 1,098,047 445,953 Nov-00 0 48,633 1,146,680 397,320 Dec-00 0 29,741 1,176,421 367,579 Jan-01 0 46,236 1,222,657 321,343 Feb-01 0 47,777 1,270,434 273,566 Mar-01 0 37,213 1,307,647 236,353 Apr-01 0 24,719 1,332,366 211,634 May-01 0 6,196 1,338,562 205,438 Jun-01 106,800 0 1,231,762 312,238 Jul-01 219,660 0 1,012,102 531,898 Aug-01 226,151 0 785,951 758,049 Sep-01 197,762 1,331 589,520 954,480 Oct-01 44,964 60,382 604,938 939,062 Nov-01 73,130 142,418 674,226 869,774 Dec-01 28,281 159,046 804,991 739,009 Jan-02 134,429 47,741 718,303 825,697 Feb-02 102,768 65,400 680,935 863,065 Mar-02 250,716 4,507 434,726 1,109,274 Apr-02 107,164 51,031 378,593 1,165,407 May-02 89,218 16,147 305,522 1,238,478 Jun-02 106,081 3,868 203,309 1,340,691 CAUsers\walshc\Desktop\KGSF #1 #7 Production Data 8-11-10.x1s 9 ATTACHMENT #1 10 KENAI GAS STORAGE FACILITY #1 (KGSF#1) MONTHLY PRODUCTION AND INJECTION VOLUMES SRU 43-28 / KGSF #1 r KGSF VA Tyonek 64-5 Sand Totals Monthly Monthly Monthly Monthly Net Voidage Total Gas Gas Gas Gas Gas (Prod - Inj) Inventory Inj. Prod. Inj. Prod. Cum for POZ (Gas -In -Place) Month MCF MCF MCF MCF MCF MCF Jul-02 66,737 18,479 155,051 1,388,949 Aug-02 19,263 140,660 276,448 1,267,552 Sep-02 73,737 60,587 263,298 1,280,702 Oct-02 0 272,859 536,157 1,007,843 Nov-02 0 193,970 730,127 813,873 Dec-02 701 149,810 879,236 664,764 Jan-03 0 125,601 1,004,837 539,163 Feb-03 0 77,767 1,082,604 461,396 Mar-03 0 58,978 1,141,582 402,418 Apr-03 0 40,867 1,182,449 361,551 May-03 0 31,252 1,213,701 330,299 Jun-03 0 23,977 1,237,678 306,322 Jul-03 0 17,937 1,255,615 288,385 Aug-03 0 9,611 1,265,226 278,774 Sep-03 173,513 0 1,091,713 452,287 Oct-03 298,780 0 792,933 751,067 Nov-03 287,672 0 505,261 1,038,739 Dec-03 264,137 1,456 242,580 1,301,420 Jan-04 30,651 56,710 268,639 1,275,361 Feb-04 42,508 56,096 282,227 1,261,773 Mar-04 18,083 153,053 417,197 1,126,803 Apr-04 46,661 49,678 420,214 1,123,786 May-04 173,756 1,811 248,269 1,295,731 Jun-04 117,522 0 130,747 1,413,253 Jul-04 3,936 0 126,811 1,417,189 Aug-04 0 0 126,811 1,417,189 Sep-04 83,061 0 43,750 1,500,250 Oct-04 20,297 37,277 0 38,408 99,138 1,444,862 Nov-04 100,085 46,394 114,424 0 -68,977 1,612,977 Dec-04 1,372 5,222 1,523 3,687 -62,963 1,606,963 Jan-05 35,347 66,988 771 60,345 28,252 1,515,748 Feb-05 31,778 82,231 3,217 114,252 189,740 1,354,260 Mar-05 43,588 55,099 1,211 78,836 278,876 1,265,124 Apr-05 28,607 35,501 8,081 19,522 297,211 1,246,789 May-05 32,140 88,209 18,126 101,966 437,120 1,106,880 Jun-05 116,349 2,892 60,975 2,436 265,124 1,278;876 Jul-05 79,421 4,803 96,626 740 94,620 1,449,380 Aug-05 56,470 60,228 61,086 25,369 62,661 1,481,339 Sep-05 75,912 16,301 8,356 11,394 6,088 1,537,912 Oct-05 44,207 68,184 13,635 94,247 110,677 1,433,323 Nov-05 68,267 45,043 65,065 62,387 84,775 1,459,225 Dec-05 68,931 29,178 97,297 20,153 -32,122 1,576,122 Jan-06 24,400 154,713 21,678 176,620 253,133 1,290,867 Feb-06 123,934 83,744 191,098 99,388 121,233 1,422,767 CAUsers\walshc\Desktop\KGSF #1 #7 Production Data 8-11-10.x1s i ATTACHMENT #1 0 KENAI GAS STORAGE FACILITY #1 (KGSF#1) MONTHLY PRODUCTION AND INJECTION VOLUMES SRU 43-28 / KGSF #1 r KGSF VA E77onelk 64-5 Sand Totals Monthly Monthly Monthly Monthly Net Voidage Total Gas Gas Gas Gas Gas (Prod - Inj) Inventory Inj. Prod. Inj. Prod. Cum for POZ (Gas -In -Place) Month MCF MCF MCF MCF MCF MCF Mar-06 54,898 145,807 35,421 147,941 324,662 1,219,338 Apr-06 131,597 34,604 85,982 19,989 161,676 1,382,324 May-06 106,658 4,759 110,253 26,840 -23,636 1,567,636. Jun-06 50,042 675 14,923 482 -87,444 1,631,444 Jul-06 0 79,130 0 36,777 28,463 1,515,537 Aug-06 63,182 130 16,045 0 -50,634 1,594,634 Sep-06 45,366 0 18,939 0 -114,939 1,658,939 Oct-06 18,013 58,243 42,099 7,334 -109,474 1,653,474 Nov-06 30,592 82,779 24,730 98,430 16,413 1,527,587 Dec-06 55,743 17,160 102,029 14,959 -109,240 1,653,240 Jan-07 21,586 59,415 34,936 91,755 -14,592 1,558,592 Feb-07 7,025 59,181 41,275 106,823 103,112 1,440,888 Mar-07 15,008 58,203 83,830 92,486 154,963 1,389,037 Apr-07 75,784 6,866 185,316 8,751 -90,520 1,634,520 May-07 8,872 23,772 32,655 55,100 -53,175 1,597,175 Jun-07 11,714 0 740 134 -65,495 1,609,495 Jul-07 7,350 0 0 0 -72,845 1,616,845 Aug-07 1,767 891 230 0 -73,951 1,617,951 Sep-07 0 253 0 240 -73,458 1,617,458 Oct-07 9,706 18,077 11,553 6,168 -70,472 1,614,472 Nov-07 13,638 40,135 7,563 8,237 -43,301 1,587,301 Dec-07 8,443 61,237 3,820 132,338 138,011 1,405,989 Jan-08 20,892 75,223 751 88,161 279,752 1,264,248 Feb-08 8,162 54,785 8,134 83,015 401,256 1,142,744 Mar-08 94 1,014 0 4,872 407,048 1,136,952 Apr-08 46,111 3,360 11,372 0 352,925 1,191, 075 May-08 88,929 12,687 218,106 12,037 70,614 1,473,386 Jun-08 20,487 4,309 32,741 0 21,695 1,522,305 Jul-08 8,057 0 2,181 0 11,457 1,532,543 Aug-08 19,270 484 0 0 -7,329 1,551,329 Sep-08 5,064 1,530 0 820 -10,043 1,554,043 Oct-08 15,323 46,294 2,459 5,913 24,382 1,519,618 Nov-08 3,361 95,514 0 82,213 198,748 1,345,252 Dec-08 10,856 92,077 7,285 162,128 434,812 1,109,188 Jan-09 25,898 54,278 31,732 114,632 546,092 997,908 Feb-09 26,994 50,408 42,968 76,145 602,683 941,317 Mar-09 25,801 14,995 10,298 22,451 604,030 939,970 Apr-09 158,105 989 236,991 608 210,531 1,333,469 May-09 36,786 103 134,138 27 39,737 1,504,263 Jun-09 43,429 519 103,093 299 -105,967 1,649,967 Jul-09 0 0 0 0 -105,967 1,649,967 Aug-09 0 39,305 45,129 228 -111,563 1,655,563 Sep-09 0 25,743 24,073 146 -109,747 1,653,747 Oct-09 0 0 28,450 271 -137,926 1,681,926 C:\Users\walshc\Desktop\KGSF #1 #7 Production Data 8-11-10.xls ATTACHMENT #1 0 KENAI GAS STORAGE FACILITY #1 (KGSF#1) MONTHLY PRODUCTION AND INJECTION VOLUMES SRU 43-281 KG SF #1 KGSF VA j r Tyonek 64-5 Sand Totals Monthly Monthly Monthly Monthly Net Voidage Total Gas Gas Gas Gas Gas (Prod - Inj) Inventory Inj. Prod. Inj. Prod. Cum for POZ (Gas -in -Place) Month MCF MCF MCF MCF MCF MCF Nov-09 550 15,175 34,114 33,063 -124,352 1,668,352 Dec-09 137 8,539 11,074 66,621 -60,403 1,604,403 Jan-10 10,556 36,797 0 12,397 -21,765 1,565,765 Feb-10 0 48,589 17 2,232 29,039 1,514,961 Mar-10 0 64,473 0 54,969 148,481 1,395,519 Apr-10 0 13,709 135 19,853 181,908 1,362,092 May-10 0 15,589 10,554 27,926 214,869 1,329,131 Jun-10 370 4,517 189 7,769 226,596 1,317,404 Jul-10 1,616 0 0 490 225,470 1,318,530 C:\Users\walshc\Desktop\KGSF #1 #7 Production Data 8-11-10.x1s ATTACHMENT #2 Tyonek 64-5 Sand POZ DATA Kenai Gas Storage Facility #1 (KGSF #1) Wells: KGSF #1 & KGSF #7A Date IType Test I Gauge Depth, ft I Cum, bcf I ThgP, psia I Res. P, psia I Z I P/Z Comments ➢RTT.rdRv PRODUCTION ON v12/5/1998 SITP 0 0 2850 3306 0.8782 3764 SITP 7/27/1999 SITP 6395 0.561 1775 2059 0.8586 2398 SITP 9/9/2000 BHP buildu 6395 1.069 882 1100 0.9017 1220 PBU w/ Gauges FL - 6195' 2/20/2001 SITP 0 L270 540 626 0.9396 667 SITP 6/9/2001 SITP 0 1.339 380 441 0.9566 461 SITP I I I 2nn1 rm rFrTrnm rvrT F 6/9/2001 SITP 0 1.339 380 441 0.9566 1 461 SITP 7/11/2001 SITP 0 1.148 875 1015 0.9078 1118 21 hr SITP after 618 hr injection 9/18/2001 SITP 0 0.673 1820 2111 0.8578 2461 4 hr SM prior to flow due to SEP ESD 9/20/2001 SITP 0 0.678 1810 2099 0.8580 2447 24 hr SITP after 1 day of flow on 9/19 at 5.5 rnmcfd 10/9/2001 SITP 0 0.572 1980 2297 0.8562 2682 8 day Sn? during C12 restaging inm mmr-rrnm rvrr F 10/9/2001 S1;1 0 0.572 1980 2297 0.8562 2682 8 da STIP duringC12 restaging 4/5/2002 SITP 0 0.400 2280 2645 0.8584 3081 15 hour SITP 7/12/2002 SITP 1 0 1 0.190 1 2620 1 3039 1 0.8680 1 3501 ISITT, 7/26/2002 1 SITP 1 0 1 0.200 1 2630 1 3050 1 0.8684 1 3513 1 SITP 0 good mrpm mN rvrr F 0.8620 267 !SITP from surf PBU " r 1Ti 0.8620 3282 SI duration = 19 hrs. At shut in = 2 hrs; 2440 psig SITP; Ignores FL `•����Nj�X� {\N 0 R620 42R2 ST dnratinn = 19 hrs. At shut in = 2 hrs 2440 nsie SITP � Ignores FL .�� �% (ni 4/28/2004 1 SITP 1 0 1 0.445 1 2075 1 2406 1 0.8562 1 2810 1 SITP - 24 hr 7/14/2004 1 SITP 1 0 1 0.153 1 2565 1 2974 0.8660 3435 1 SITP - 12 day 12/5/2004 1 SfrP 1 0 1 -0.082 1 2865 1 3322 0.8789 3780 1 SITP-4day 6/8/2005 SITP 1 0 1 0.396 1 2080 1 2412 1 0.8562 1 2817 1 SITP - 6 hr 8/8/2005 SLIP 1 0 1 0.022 1 2828 1 3279 1 0.8771 1 3739]SITP - 1 hr 12/30/2005 0 1 -0.044 1 2786 1 3231 1 0.8751 1 3692 1 SITP - 3 days 2005/2006 PRODUCTION CYCLE 11/30/2005 0 -0.044 2786 3231 0.8751 3692 SITP - 3 days 3/22/2006 SITP1 0 1 0.396 1 1905 1 2209 1 0.8567 ji 2579 SIT? - < 1 day (KGSF47a) mm im TFr nnN rvrT F 2/2006 SITP 0 0.396 1905 2209 0.8567 2579 SIT? - < t da GSF#7a0/2006 SIT? 0 -0.10028153264 0.8764 3725 SIT? - 10 da s 4/2006 B SITP 0 0.023 2687 3116 0.8707 3579 SITP-19 da s GSF#70/2006 SIT? 0 -0.127 2815 1 3264 1 0.8764 1 3725 Isrrp-12 day GSF#1 ?M&OnM ➢RnnT TVTTnN rvrr F 9/30/2006 SITP 0 -0.127 2815 3264 1 0.8764 1 3725 SIT?-12 day GSF#] 12/4/2006 STI'P 0 -0.049 2665 3090 0.8698 3553 STTP-18.5 hrs GSF47a 1/10/2007 SITP 0 -0.003 2450 2841 0.8623 3295 SITP-9 firs GSF#1 3/26/2007 SITP 0 0.167 1 2231 1 2587 1 0.8576 1 3017 SIT?-4 day GSF#1 7nn7 rN mr-rmv rvrT F 3/26/2007 SITP 1 0 1 0.167 1 2231 1 2587 1 0.8576 1 3017 ISITP-4 day GSF#1 4/27/2007 SIT? 0 -0.117 2828 3279 0.8771 1 3739 ISITP -8 day GSF#1 6/4/2007 SITP 0 -0.065 2711 3144 1 0.8717 1 3606 ISITP -5 day GSF#1 9/11/2007 SITP 0 -0.088 2717 3151 1 0.8720 1 3598 ISITP -27 day GSF#1 �nn'Innn4 ➢R nnr TrTrnN rvrr R 9/11/2007 SIT? 0 -0.088 2717 3151 0.8720 3598 SITP-27 day GSF#1 12/2/2007 SITP 0 -0.043 2604 3005 0.8669 3466 STIP - 6 da s(KGSF #7A - PMW 1/17/2008 SITP 0 0.243 2078 2397 0.8562 2800 SITP - 8 days(KGSF #7A 4/8/2008 SITP 0 0A07 1760 2026 0.8592 2358 SITP - 37 days(KGSF #7A inm rmmrTTnm rvrT F 4/8/2008 Sup 0 0.407 1760 2026 0.8592 2358 Sn? - 37 days(KGSF #7A 5/2/2008 SIT? 0 0.353 1925 2218 0.8566 2567 SIT? --2 months(KGSF 97A 7/12008 Sri? 0 0.022 2643 3049 0.8684 3494 SITP - 22 day GSF#1 728/2008 SIT? 0 0.015 2648 3055 0.8686 3517 SITP - 22 days GSF #1 9/162008 SIT? 0 -0.005 2664 3073 0.8692 3535 SITP - 22 days(KGSF #1 9/30/2008 SIT? 0 -0.010 2670 3080 0.8694 3543 SIT? - 5 days (KGSF #1) wck, pS� 8/1320102:26 PM\\Anc380ntdfsl.mc380.chevrontexa.nedchare\NAU\MCBUWaska\Depts\AssetDev\CIGas\Gas CFAOpenmind\Swanson\Swanson RivaUnit\KGSF#1\Surveys\Pre swr \AOGCC Annual Mat Bal Rpt\2010\KGSF#1 & #7A 64-5 Sd POZ 8-11-10.As64-5 POZ Data ATTACHMENT #2 Tyonek 64-5 Sand POZ DATA Kenai Gas Storage Facility #1 (KGSF #1) Wells: KGSF #1 & KGSF #7A Date IType Test I Gauge Depth, ft I Cum, bcf I ThgP, psia I Res. P, psia Z P/Z Comments 20082009 PRODUCTION CYCLE 9/30/2008 SIT? 0 1 -0.010 1 2670 1 3080 1 0.8694 1 3543 1 SPIT - 5 da s(KGSF #1 1/16/2009 SITP 0 1 0.576 1 1392 1 1599 1 0.8728 1 1832 1 SITP - 2.5 days(KGSF #] 2/19/2009 SIP? 0 1 0.626 1 1376 1 1579 1 0.8737 1 1807 1 SITP - 24 hr SI (KGSF #1 & #7A) 2009 INJECTION CYCLE 2/19/2009 SIT? 0 0.626 1376 1579 0.8737 1807 SITP - 24 hr SI (KGSF #1 & 47A) 6/14/2009 SITP 0 -0.065 2781 3209 0.8742 3671 SITP - 10 days SI(KGSF #1 7/13/2009 SITP 0 -0.106 2850 3287 0.8774 3746 SIT? - 14 days SI(KGSF #1 8/10/2009 SITP 0 -0.106 2828 3262 0.8764 3722 SITP - 42 days SI (KGSF #7A) 2009/2010 PROM JMON CYCJ.E 10/12/2009 SIT? 0 9 2774 3218 0.8746 3680 SITP - 23da s (KGSF #7A I/242010 SIT? 0 2 2630 3036 0.8679 3498 SITP - 4 days (KGSF 91 3/8/2010 SIT? 0 E0.035 2528 2919 0.8644 3377 SITP - 4 da SI GSF #1 & VA5/13/2010 SITP 0 1 2231 2576 0.8575 3004 1 SITP - 24 hm SI (KGSF #1) 2010 INJECTION CYCi R 5/132010 SITP 1 0 1 0.181 1 2231 1 2576 1 0.8575 1 3004 SPIT - 24 hrs SI(KGSF 41 8/11/2010 SITP 0 1 0.176 1 2313 1 2671 1 0.8588 1 3110 SITP - 14 days SI KGSF #1 8/13/2010226 PM\\Anc380ntdfsl.anc380.chevmntexa .net\share\NAU\MCBUWaska\Depts\AssetDev\CIGw\Gas CFT\Openmind\Swanson\Swanson RivefUnit\KGSF#1\Surveys\Pressures\AOGCC Annual Mat Bal Rpt\2010\KGSF#1 & 47A 64-5 Sd POZ 8-11-10.xls64-5 POZ Data ATTACHMENT #3 KGSF #1 FACILITY (Tyonek 64-5 Sand) - P/Z vs Cumulative Production Plot 4000 0 Primary 3'01 Inj cycle --0—'02 Inj cycle 3500 — 0 '02 Prod cycle —es '03 Inj Cycle 04 Prod Cycle 3000 - \ 04Inj Cycle 2010 Injection 0 05 Prod Cycle data very limited - 6- 05 Inj Cycle 2500 -- -0— 06 Prod Cycle —� 06 Inj Cycle 07 Prod Cycle ,., 2000 —� 07 Inj Cycle 08 Prod Cycle N p & 08Inj Cycle 1500 ` —0-- 09 Prod Cycle —& 09Inj Cycle ` 10 Prod Cycle 1000 ` 0 10Inj Cycle 500 0 -0.2 0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 Cumulative Gas Produced (Bcf) \\Anc380ntdfsl.anc380.chevrontexaco.net\share\NAU\MCBU\Alaska\Depts\AssetDev\CIGas\Gas CFT\Openmind\Swanson\Swanson RiverUnit\KGSF#1\Surveys\Pressures\AOGCC Annual Mat Bal Rpt\20IO\KGSF#1 & #7A 64-5 Sd POZ 8-11-10.x1s • • 0 rage i or L Maunder, Thomas E (DOA) From: Walsh, Chantal [Petrotechnical Resources of Alaska (PRA)] [WalshC@chevron.com] Sent: Monday, September 27, 2010 10:27 AM To: Maunder, Thomas E (DOA) Cc: Whitacre, Dave S; Greenstein, Larry P Subject: RE: KGSF Annual Report Attachments: KGSF 2010 Revised POZ.pdf; KFSF #1 #7 9-27-10.pdf Tom, Thank you for your patience. The data differences that you noted are the daily numbers not corrected to the official monthly values for the months of June and July 2010. 1 have included a new copy of the production volumes corrected for this data (KGSF #1 #7 9-27-10.pdf). The additional production data value that you questioned, the November 2004 KGSF #1, was originally submitted with the volume of 99404, and then a revision was issued by Unocal to the corrected value of 100085. 1 have a copy of the submitted letter should you not be able to find it in your records. The P/Z plot has been reconstructed to show the last 4 cycles plus the original cycle (KGSF 2010 Revised POZ.pdf). Please find attached. Let me know if you have any further questions. Chantal From: Maunder, Thomas E (DOA) [mailto:tom.maunder@alaska.gov] Sent: Friday, September 24, 2010 3:02 PM To: Walsh, Chantal [Petrotechnical Resources of Alaska (PRA)] Subject: RE: KGSF Annual Report Hi Chantal, Have you had an opportunity to look into the KGSF stuff? Tom From: Maunder, Thomas E (DOA) Sent: Thursday, August 19, 2010 9:39 AM To: Walsh, Chantal [Petrotechnical Resources of Alaska (PRA)] Cc: Greenstein, Larry P; Whitacre, Dave S Subject: RE: KGSF Annual Report Not a problem on time to look. I like your idea about the cycles. I think having a new "4 +1" plot would be helpful if you can provide it. Electronic is fine. Tom From: Walsh, Chantal [Petrotechnical Resources of Alaska (PRA)] [mailto:WalshC@chevron.com] Sent: Thursday, August 19, 2010 9:23 AM To: Maunder, Thomas E (DOA) Cc: Greenstein, Larry P; Whitacre, Dave S 9/30/2010 rage /- of Subject: RE: KGSF Annual Report Tom, I was thinking the same thing with the limiting of the cycles. I think the original cycle should stay on the plot, and then plot the last 4 cycles. I played around with the plot for internal purposes and that seemed to capture the sense of how the current year cycle was responding to historical trends. Let me know if you want that plot for this year or I will place this note in the file so next year the plot is limited. I will dig into the data and see why we are not matching on the exact values for production. Because we watch this data daily, the June 2010 data is likely due to not updating the daily values with the official monthly numbers. But give me a little time to address, these especially the November 2004 data. Chantal From: Maunder, Thomas E (DOA) [mailto:tom.maunder@alaska.gov] Sent: Thursday, August 19, 2010 9:08 AM To: Walsh, Chantal [Petrotechnical Resources of Alaska (PRA)] Subject: KGSF Annual Report Chantal, I have been reviewing the submitted report and have some questions. 1. 1 did a comparison of the volumes in and out for both wells and identified some differences with the "official" numbers for KGSF #1 that we have in our data base. Here are a listing of the discrepancies, not a lot of volume however there is a difference. KGSF #1 (161-008) June 2010 Production Chevron # 4517 AOGCC # 4530 delta = 13 KGSF #1 (161-008) June 2010 Injection Chevron # 370 AOGCC # 384 delta = 14 KGSF #1 (161-008) November 2004 Injection Chevron # 100085 AOGCC # 99404 delta = 681 Could you check what information you might have regarding the numbers? 2. The P/Z plot is getting very busy. I would like to propose limiting the number of cycles shown on a given plot so it "reads easier". I'm not sure what the number should be. Does having no more than 4 or 5 cycles on a plot with the latest data shown against the last 4 or 5 years make sense? Let me know your thoughts. Call or message with any questions. I look forward to your reply. Tom Maunder, PE AOGCC 9/30/2010 4000 3500 3000 2500 2000 p" 1500 1000 500 0 -0.2 ATTACHMENT #3 (revised 9/20/10) KGSF #1 FACILITY (Tyonek 64-5 Sand) - P/Z vs Cumulative Production Plot .Primary � I '01 Inj cycle - --? 0 0.2 0.4 0.6 0.8 1 Cumulative Gas Produced (Bcf) 1.2 \\Anc380ntdfsl.anc380.chevrontexaco.net\share\NALI\MCBU\Alaska\Depts\AssetDev\CIGas\Gas CF11Openmind\Swanson\Swanson RiverUnit\KGSF#I\Surveys\Pressures\AOGCC Annual Mat Bal Rpt\2010\KGSF#1 & VA 64-5 Sd POZ 8-11-10.xis 07 Prod Cycle 07 Inj Cycle 08 Prod Cycle i 09Inj Cycle i I 09 Prod Cycle 091nj Cycle 10 Prod Cycle 10 Inj Cycle 9 ATTACHMENT #1 0 KENAI GAS STORAGE FACILITY #1 (KGSF#1) MONTHLY PRODUCTION AND INJECTION VOLUMES [-SRRUU 4.'3- 81 KGSF #1 KGSF #7A�-1 7 anek 64-5 Sand Totals Monthly Monthly Monthly Monthly Net Voidage Total Gas Gas Gas Gas Gas (Prod - Inj) Inventory Inj. Prod. Inj. Prod. Cum for POZ (Gas -In -Place) Month MCF MCF MCF MCF MCF MCF 1,544,000 Dec-98 0 55,137 55,137 1,488, 863 Jan-99 0 79,404 134,541 1,409,459 Feb-99 0 64,367 198,908 1,345,092 Mar-99 0 73,920 272,828 1,271,172 Apr-99 0 62,180 335,008 1,208,992 May-99 0 76,912 411,920 1,132,080 Jun-99 0 76,903 488,823 1,055,177 Jul-99 0 72,268 561,091 982,909 Aug-99 0 60,311 621,402 922,598 Sep-99 0 48,667 670,069 873,931 Oct-99 0 42,056 712,125 831,875 Nov-99 0 39,385 751,510 792,490 Dec-99 0 33,783 785,293 758,707 Jan-00 0 39,890 825,183 718,817 Feb-00 0 20,895 846,078 697,922 Mar-00 0 38,219 884,297 659,703 Apr-00 0 35,729 920,026 623,974 May-00 0 22,502 942,528 601,472 Jun-00 0 8,627 951,155 592,845 Jul-00 0 30,397 981,552 562,448 Aug-00 0 56,660 1,038,212 505,788 Sep-00 0 30,505 1,068,717 475,283 Oct-00 0 29,330 1,098,047 445,953 Nov-00 0 48,633 1,146,680 397,320 Dec-00 0 29,741 1,176,421 367,579 Jan-01 0 46,236 1,222,657 321,343 Feb-01 0 47,777 1,270,434 273,566 Mar-01 0 37,213 1,307,647 236,353 Apr-01 0 24,719 1,332,366 211,634 May-01 0 6,196 1,338,562 205,438 Jun-01 106,800 0 1,231,762 312,238 Jul-01 219,660 0 1,012,102 531,898 Aug-01 226,151 0 785,951 758,049 Sep-01 197,762 1,331 589,520 954,480 Oct-01 44,964 60,382 604,938 939,062 Nov-01 73,130 142,418 674,226 869,774 Dec-01 28,281 159,046 804,991 739,009 Jan-02 134,429 47,741 718,303 825,697 Feb-02 102,768 65,400 680,935 863,065 Mar-02 250,716 4,507 434,726 1,109,274 Apr-02 107,164 51,031 378,593 1,165,407 May-02 89,218 16,147 305,522 1,238,478 Jun-02 106,081 3,868 203,309 1,340,691 1Wnc380ntdfsi.anc380.chevrontexaco.netlshareWAUNCBUWlaskMDepts\AssetDev\ClGas\Gas CF7l0penmind\Swanson\Swanson RlverUnitV(GSF#11Surveys\PressureslAOGCC Annual Mat Bal Rpt120t000GSF #1 #7 9-27-10.xis 0 ATTACHMENT #1 KENAI GAS STORAGE FACILITY #1 (KGSF#1) MONTHLY PRODUCTION AND INJECTION VOLUMES SRU_1IKG#1 1 rKGSF_#7A T onek 64.5 Sand Totals Monthly Monthly Monthly Monthly Net Voidage Total Gas Gas Gas Gas Gas (Prod - Inj) Inventory Inj. Prod. Inj. Prod. Cum for POZ (Gas -In -Place) Month MCF MCF MCF MCF MCF MCF Jul-02 66,737 18,479 1�111 �IYII-��� �111��I�11�1111111�� 155,051 1,388,949 Aug-02 19,263 140,660 276,448 1,267,552 Sep-02 73,737 60,587 263,298 1,280,702 Oct-02 0 272,859 536,157 1,007,843 Nov-02 0 193,970 730,127 813,873 Dec-02 701 149,810 879,236 664,764 Jan-03 0 125,601 1,004,837 539,163 Feb-03 0 77,767 1,082,604 461,396 Mar-03 0 58,978 1,141.582 402,418 Apr-03 0 40,867 1,182,449 361,551 May-03 0 31,252 1,213,701 330,299 Jun-03 0 23,977 1,237,678 306,322 Jul-03 0 17,937 1,256,615 288,385 Aug-03 0 9,611 1,266,226 278,774 Sep-03 173,513 0 1,091,713 452,287 Oct-03 298,780 0 792,933 751,067 Nov-03 287,672 0 505,261 1,038,739 Dec-03 264,137 1,456 242,580 1,301,420 Jan-04 30,651 56,710 268,639 1,275,361 Feb-04 42,508 56,096 282,227 1,261,773 Mar-04 18,083 153,053 417,197 1,126,803 Apr-04 46,661 49,678 420,214 1,123,786 May-04 173,756 1,811 248,269 1,295,731 Jun-04 117,522 0 130,747 1,413,253 Jul-04 3,936 0 126,811 1,417,189 Aug-04 0 0 126,811 1,417,189 Sep-04 83,061 0 43,750 1,500,250 Oct-04 20,297 37,277 0 38,408 99,138 1,444,862 Nov-04 100,085 46,394 114,424 0 -68,977 1,612,977 Dec-04 1,372 5,222 1,523 3,687 -62,963 1,606,963 Jan-05 35,347 66,988 771 60,345 28,252 1,515,748 Feb-05 31,778 82,231 3,217 114,252 189,740 1,354,260 Mar-05 43,588 55,099 1,211 78,836 278,876 1,266,124 Apr-05 28,607 35,501 8,081 19,522 297,211 1,246,789 May-05 32,140 88,209 18,126 101,966 437,120 1,106,880 Jun-05 116,349 2,892 60,975 2,436 265,124 1,278,876 Jul-05 79,421 4,803 96,626 740 94,620 1,449,380 Aug-05 56,470 60,228 61,086 25,369 62,661 1,481,339 Sep-05 75,912 16,301 8,356 11,394 6,088 1,537,912 Oct-05 44,207 68,184 13,635 94,247 110,677 1,433,323 Nov-05 68,267 45,043 65,065 62,387 84,775 1,459,225 Dec-05 68,931 29,178 97,297 20,153 -32,122 1,576,122 Jan-06 24,400 154,713 21,678 176,620 253,133 1,290,867 Feb-06 123,934 83,744 191,098 99,388 121,233 1,422,767 k\Anc380ntdfsl.anc380.chevrontexaco.nettshareWAUWCBUlAlaska\DeptslAssetD&ACIGaslGas CFT10penmind%SlwansontSwans0n RiverUnit\KGSF#11SurveystPressures#AOGCC Annual Mat Sal RpM0101KGSF #1 #7 9-27-10.xls 0 • ATTACHMENT #1 KENAI GAS STORAGE FACILITY #1 (KGSF#1) MONTHLY PRODUCTION AND INJECTION VOLUMES rSRU 43-281 KGSF #1 1 r -KGB SF #7A "-"-1 r Tyonek 64.5 Sand Totals Monthly Monthly Monthly Monthly Net Voidage Total Gas Gas Gas Gas Gas (Prod - Inj) Inventory Inj, Prod. Inj. Prod. Cum for POZ (Gas -In -Place) Month MCF MCF MCF MCF MCF MCF Mar-06 54,898 145,807 35,421 l 147,941 324,662 1,219,338 Apr-06 131,697 34,604 85,982 19,989 161,676 1,382,324 May-06 106,658 4,759 110,253 26,840 -23,636 1,567,636 Jun-06 50,042 675 14,923 482 -87,444 1,631,444 Jul-06 0 79,130 0 36,777 28,463 1,515,537 Aug-06 63,182 130 16,045 0 -50,634 1,594,634 Sep-06 45,366 0 18,939 0 -114,939 1,658,939 Oct-06 18,013 58,243 42,099 7,334 -109,474 1,653,474 Nov-06 30,592 82,779 24,730 98,430 16,413 1,527,587 Dec-06 55,743 17,160 102,029 14,959 -109,240 1,653,240 Jan-07 21,586 59,415 34,936 91,755 -14,592 1,558,592 Feb-07 7,025 59,181 41,275 106,823 103,112 1,440,888 Mar-07 15,008 58,203 83,830 92,486 154,963 1,389,037 Apr-07 75,784 6,866 185,316 8,751 -90,520 1,634,520 May-07 8,872 23,772 32,655 55,100 -53,175 1,697,175 Jun-07 11,714 0 740 134 -65,495 1,609,495 Jul-07 7,350 0 0 0 -72,845 1,616,845 Aug-07 1,767 891 230 0 -73,951 1,617,951 Sep-07 0 253 0 240 -73,458 1,617,458 Oct-07 9,706 18,077 11,553 6,168 -70,472 1,614,472 Nov-07 13,638 40,135 7,563 8,237 -43,301 1,587,301 Dec-07 8,443 61,237 3,820 132,338 138,011 1,405,989 Jan-08 20,892 75,223 751 88,161 279,752 1,264,248 Feb-08 8,162 54,785 8,134 83,015 401,256 1,142, 744 Mar-08 94 1,014 0 4,872 407,048 1,136,952 Apr-08 46,111 3,360 11,372 0 352,925 1,191,075 May-08 88,929 12,687 218,106 12,037 70,614 1,473,386 Jun-08 20,487 4,309 32,741 0 21,695 1,522,305 Jul-08 8,057 0 2,181 0 11,457 1,532,543 Aug-08 19,270 484 0 0 -7,329 1,551,329 Sep-08 5,064 1,530 0 820 -10,043 1,554,043 Oct-08 15,323 46,294 2,459 5,913 24,382 1,519,618 Nov-08 3,361 95,514 0 82,213 198,748 1,345,252 Dec-08 10,856 92,077 7,285 162,128 434,812 1,109,188 Jan-09 25,898 54,278 31,732 114,632 546,092 997,908 Feb-09 26,994 50,408 42,968 76,145 602,683 941,317 Mar-09 25,801 14,995 10,298 22,451 604,030 939,970 Apr-09 158,105 989 236,991 608 210,531 1,333,469 May-09 36,786 103 134,138 27 39,737 1,504,263 Jun-09 43,429 519 103,093 299 -105,967 1,649,967 Jul-09 0 0 0 0 -105,967 1,649,967 Aug-09 0 39,305 45,129 228 -111,563 1,655,563 Sep-09 0 25,743 24,073 146 -109,747 1,653,747 Oct-09 0 0 28,460 271 -137,926 1,681,926 1\Anc380ntdfs1.anc380.chevrontexaco.netlshareWAU\MCBU`AEaska\DeptslAssetDev\ClGas\Gas Cs I\0penmind%SwansoMSwanson RiverUnit\KGSF#11SurveyslPressuresWflGCC Annual Mat Bal Rpt120101KGSF 01 #7 9-27-10.xis C s ATTACHMENT #1 KENAI GAS STORAGE FACILITY #1 (KGSF#1) MONTHLY PRODUCTION AND INJECTION VOLUMES SRU 43-28 K/ GSF #1 �--KGSF WA Tyon� k 6" SandTotals Monthly Monthly Monthly Monthly Net Voidage Total Gas Gas Gas Gas Gas (Prod - Inj) Inventory Month lnj. MCF Prod. MCF lnj. Prod. Cum for POZ (Gas -in -Place) Nov-09 550 15,175 MCF 34,114 MCF 33,063 MCF -124,352 MCF 1,668,352 Dee 09 Jan-10 137 10,556 8,539 36,797 11,074 66,621 -60,403 1,604,403 Feb-10 0 48,589 0 17 12,397 2,232 -21,765 29,039 1,565,765 1,514,961 Mar-10 Apr-10 0 0 64,473 13,709 0 54,969 148,481 1,395,519 May-10 0 15,589 135 10,554 19,853 27,926 181,908 214,869 1,362,092 1,329,131 Jun-10 Jul-10 384 1,616 4,530 189 7,769 226,695 1,317,405 0 0 490 225,469 1,318,531 11Anc380ntdfsl.anc380.chevrontexaco.netistrareWAUNCBuvuaske�Depts%SwDevlClGastGas CM0penmind%Swan son4Swanson Rivert/nit\KGSF#11SunreyslPressuresWOGCC Annual Mat Bal Rpt120101KGSF #1 #7 9-27-1 o.xls ~~ Mr Hilcorp Alaska, LLC August 3, 2017 Post Office Box 244027 Anchorage, AK 99524-4027 3800 Centerpoint Drive Suite 100 Anchorage, AK 99503 Phone: 907/777-8300 Fax: 907/777-8301 Mrs. Cathy Foerster, Chair Alaska Oil and Gas Conservation Commission EC E V E D 333 W. 71h Avenue, Suite 100 Anchorage, AK 99501-3539 AUG 0 3 2017 AOGCC RE: 2016 Annual Material Balance Calculations of Production and Infection Volumes: Kenai Gas Storage Facility #1 (KGSF#1) Swanson River Field Dear Commissioner Foerster: Attached for Alaska Oil and Gas Conservation Commission (AOGCC) review is the 2016 annual material balance calculation of production and injection volumes for the Kenai Gas Storage Facility #1(KGSF#1), as required per Storage Injection Order #2A. This material balance includes all primary production from the Tyonek 64-5 reservoir (via the SRU 43-28 wellbore), as well as all storage operations from the two gas storage wells, KGSF #1 and KGSF #7A. Primary production occurred from December 1998through May 2001 and storage operations are on-going since June 2001. Gas storage production and injection volumes for KGSF #1 (formerly SRU 43-28) and KGSF #7A have been reported on a monthly basis to the state through Aug 2, 2017. Pressures from the Tyonek 64-5 reservoir have been measured/estimated from both downhole pressure buildups and from surface shut-in tubing pressures. The surface readings were then converted to downhole pressures at a common datum of 6,369 ft TVD. These data points are tabulated in Attachment #1 and plotted versus the net cumulative production (production less injection) on the standard P over Z plot, shown in Attachment #2. The P over Z plot, Attachment #2, shows that the 2016-2017 production and injection cycle followed the primary production profile as expected. This storage reservoir continues to show that the gas is contained within zone and is an important resource in helping meet peak gas requirements during the winter season. If you or your staff has any questions regarding this annual report, please contact meat 907-777- 8319. Sincerely, Daniel Taylor Petroleum Engineer Attachments: 1. Tyonek 64-5 Sand POZ Data 2. KGSF #1 Facility (Tyonek 64-5 Sand) - P/Z vs Cumulative Production Plot ATTACHMENT #1 -- KGSF POZ DATA (64-5 Sand) Parameter Value Units Gas Gravity 0.563 3306 Bench Datum 6369 ft (tvd) Datum Temp. 122 °F Avg Temp. 102 -F 12/05/98 SITP 0 Test Gauge 3306 0.0000 Datum 07/27/99 SITP Wellname Date Test Type Duratio Measured Pressure at Z Factor Pressure es ure, Cum Gas, bcf P/Z, Psi. 1 0.8954 1100 1.0690 (hm) Test Depth MTD, psia 0 Psia 0.9353 626 1.2700 669 06/09/01 SITP MTD ft 380 0.9533 441 1.3390 463 12/05/98 SITP 0 2850 1 0.8781 1 3306 0.0000 3765 07/27/99 SITP 0 1775 0.8529 2059 0.5610 2414 09/09/00 BHP buildup 6395 882 1 0.8954 1100 1.0690 1229 02/20/01 SITP 0 540 0.9353 626 1.2700 669 06/09/01 SITP 0 380 0.9533 441 1.3390 463 f_4Pl I/4RU� I r l [=IN I G] I lA[N fd 07/11/01 SITP 21 0 875 0.9018 1015 1.1480 1126 09/18/01 SITP 4 0 1820 0.8522 2111 0.6730 2477 09/20/01 SITP 24 0 1810 0.8524 2099 0.6780 2463 10/09/01 SITP 8 0 1980 0.8514 2297 0.5720 2698 04/05/02 SITP 15 0 2280 0.8551 2645 0.4000 3093 07/12/02 SITP 0 2620 0.8666 3039 0.1900 3507 07/26/02 SITP 18.5 0 2630 0.8671 3050 0.2000 3518 112/29/03 1SITP 19 1 0 j 2440 0.8596 1 2829 1 02540 3291 2003/2004 Production Cycle 04/28/04 1SITP 24 1 0 1 2075 1 0.8518 1 2406 1 0.4450--T--2825 12/05/02 SITP 65 1 0 1 1415 0.8643 1641 1 0.7400 1899 SITP1 07/25/03 SITP 1 96 1 0 224 0.9719 260 1.2520 268 112/29/03 1SITP 19 1 0 j 2440 0.8596 1 2829 1 02540 3291 2003/2004 Production Cycle 04/28/04 1SITP 24 1 0 1 2075 1 0.8518 1 2406 1 0.4450--T--2825 cuuvicuw rroaualon t,yae 06/08/05 SITP 6 0 2080 0.8518 2412 0.3960 2832 20051niection Cvcle 07/14/04SITP SITP 12 0 2565 0.8643 2974 0.1530 3441 SITP1 12/05/04 SITP 1 96 1 0 2865 0.8788 3322 -0.0820 1 3780 cuuvicuw rroaualon t,yae 06/08/05 SITP 6 0 2080 0.8518 2412 0.3960 2832 20051niection Cvcle nuuucuun IU3/221uti 08/08/05 SITP 1 0 2828 0.8768 3279 0.0220 3740 2594 12/30/05 SITP1 72 1 0 1 2786 1 0.8746 1 3231 1 -0.0440 3694 nuuucuun IU3/221uti ISIIP 1 24 1 0 1 1905 0.8515 2209 04208 2594 2006 Injection Cycle 07/10/06 SITP 240 0 2815 0.8761 3264 -0.0482 3726 08/14/06 SITP 456 0 2687 0.8697 3116 0.0303 3583 09/30/06 ISITP 288 0 2815 0.8761 3264 -0.0678 3726 2006/2007 Production Cycle 12/04/06 SITP 18.5 0 2665 0.8686 3090 0.0329 3557 01/10/07 SITP 9 1 0 2450 0.8600 2841 0.0763 3304 03/26/07 ISITP 96 1 0 1 2231 0.8540 2587 0.2442 3029 2007 Injection Cycle 04/27/07 SITP 192 0 2828 0.8768 3279 -0.0314 3740 06/04/07 SITP 120 0 2711 0.8708 3144 0.0206 3610 09/11/07 ISITP 648 0 2717 0.8711 3151 -0.0028 1 3617 4VU114000 nuuulillun l Yule 12/02/07 ISITP 1 144 1 0 1 2604 1 0.8654 1 3005 1 0.0284 1 3473 Page 1 ATTACHMENT 91 -- KGSF POZ DATA (64-5 Sand) Parameter Value Units Gas Gravity 0.563 0.8515 Bench Datum 6369 it (tvd) Datum Temp. 122 OF Avg Temp. 102 OF 20081niection Cycle 1760 05/02/08 ISITP 1320 Test Gauge 0.8515 2218 Dturn 2605 07/01/08 Wellname Date Test Type Duration Measured Pressure at Z Factor Pressure, Cum Gas, bcf P/Z, Psia 528 0 2648 (hrs) Test Depth MTD, psia 3523 Pais SITP 528 0 2664 0.8679 3073 MTD it 3541 09/30/08 ISITP 120 0 1 2670 01/17/08 SITP 192 0 2078 0.8517 2397 0.3056 2814 KGSF#1 04/08/08 SITP 888 0 1760 0.8534 2026 0.4748 2374 20081niection Cycle 1760 05/02/08 ISITP 1320 0 1925 0.8515 2218 0.4086 2605 07/01/08 SITP 528 0 2643 0.8670 3049 0.0799 3517 07/28/08 SITP 528 0 2648 0.8673 3055 0.0728 3523 09/16/08 SITP 528 0 2664 0.8679 3073 0.0526 3541 09/30/08 ISITP 120 0 1 2670 0.8682 3080 0.0482 3547 2008/2009 Production Cycle 2009 Injection Cycle 06/14/09 01/16/09 1SITP 1 60 0 1 1392 0.8661 1599 0.6279 1846 07/13/09 02/19/09 SITP 24 0 1376 0.8782 1361 0.6830 1550 2009 Injection Cycle 06/14/09 SITP 1 240 1 0 2781 0.8736 3209 0.0388 3673 07/13/09 SITP 1008 0 2850 0.8772 1 3287 1 -0.0492 3747 08/10/09 ISITP 1 552 1 0 1 2828 1 0.8760 1 3262 1 -0.0489 1 3724 2009/2010 Production Cycle 10/12/09 SITP 96 0 2630 0.8740 3218 -0.0552 3682 01/24/10 SITP 96 0 2528 0.8665 3036 0.0191 3504 03/08/10 ISITP 24 0 1 2231 1 0.8624 1 2919 1 0.0842 3385 08/11/10 ISITP 1 336 1 0 1 2313 1 0.8556 1 2671 1 0.2266 1 3122 2010 Injection Cycle 10/20/10 ISITP 1 168 1 0 1 3134 1 0.8948 1 3626 1 -0.3103 1 4052 2010/2011 Production Cycle 12/08/10 SITP 20 0 3021 0.8879 3500 -0.2949 3942 12/21/10 SITP 20 0 2727 0.8722 3176 -0.1455 3641 03/01/11 ISITP 24 0 1123 0.8813 1310 0.5776 1486 KGSF#7A 03/21/11 IP13U 48 1 5300 1 775 1 0.8904 1 1035 1 0.6857 1162 201112012 Injection and Production Cycle KGSF#1 05/20/11 PBU 528 1 6650 1119 0.8735 1445 0.6857 1654 KGSF#1 06/27/11 PBU 20 6376 2345 0.8588 2802 0.2062 3263 KGSF#1 07/04/11 PBU 72 5300 0.8567 2720 0.1768 3175 KGSF#1 07/31/11 SITP 576 0 2395 0.8582 2777 0.1515 3236 KGSF#1 09/23/11 SITP 48 0 2596 0.8656 3010 0.0584 3478 KGSF#1 10/04/11 SITP 312 0 2585 0.8651 2998 0.0586 3465 KGSF#1 11/01/11 SITP 288 0 2758 0.8731 3198 -0.0417 3663 KGSF #1 12/20/11 SITP 2869 0.8942 3266 -0.0666 3652 KGSF #1 02/01/12 SITP 0 2185 0.8735 2491 0.2474 2852 KGSF #1 03/04/12 SITP 0 2358 0.8764 2688 0.1799 3067 KGSF #1 04/24/12 SITP 0 2004 0.8724 2284 0.3638 2618 KGSF #1 05/10/12 SITP 0 1963 0.8724 2237 0.3819 2564 KGSF#7A 05/31/12 PBU 24 6385 1917 0.8555 2247 0.4181 2627 KGSF #1 06/07/12 SITP 0 1934 0.8725 2204 0.4103 2526 2 01 212 01 3 Injection and Production Cycle KGSF #107/25/12 SITP 0 2057 0.8725 2345 0.3677 2688 KGSF #1 07/27/12 PBU 696 0 2043 0.8516 2375 0.3679 2789 Page 2 ATTACHMENT #1 -- KGSF POZ DATA (64-5 Sand) Parameter Value BHP Gas Gravity 0.563 0.8938 Bench Datum 6369 J-F Datum Temp. 122 Test Type AvgTemp. 102 2n13/2n1A Warfinn and Pmdurtinn Cvcle KGSF#1 07/13/13 BHP Test Gauge 3311 0.8938 Dat 0.0080 3702 Wellname Date Test Type Duration Measured Test Depth Pressure at MTD, psia Z Factor Pressure, Cum Gas, bcf P/Z, Psia KGSF#1 10/11/13 SITP (hrs) (MTDI. ft 2,775 0.8918 Psis 0.0294 3652 KGSF#1 10/29/12 SITP 0 2856 0.8937 3252 -0.0348 3639 KGSF #1 12/17/12 SITP 0 2193 0.8736 2500 0.2702 2862 KGSF#1 01/17/13 SITP 0 2523 0.8805 2950 0.1700 3351 KGSF #1 02/18/13 SITP 0 2394 0.8763 2801 0.2204 3196 KGSF #1 04/17/13 SITP 0 2892 0.8965 3372 -0.0034 3761 SITP 05/11/13 SITP 0 2854 0.8946 3329 0.0020 3721 OKGSF#1 KGSF #1 07/13/13 BHP 6385 3311 0.8938 3309 0.0080 3702 2n13/2n1A Warfinn and Pmdurtinn Cvcle KGSF#1 07/13/13 BHP 6385 3311 0.8938 3309 0.0080 3702 KGSF #1 08/20/13 SITP 0 2,815 0.8939 3303 0.0080 3695 KGSF#1 10/11/13 SITP 0 2,775 0.8918 3257 0.0294 3652 KGSF #1 12/12/13 SITP 0 2,429 0.8783 2859 0.1983 3255 KGSF#1 04/18/14 SITP 0 3,117 0.9131 3647 -0.0878 3994 KGSF #1 05/05/14 SITP 0 2,917 0.8997 3419 -0.0109 3800 KGSF #1 06/30/14 SITP 0 2,902 0.8988 3402 -0.0088 3785 4 6384 3,103 0.8857 3102 0.1559 3503 KGSF #N/A #DIV/01 SITP 0 2,595 Test Gauge 3050 0.1911 3451 KGSF#1 Wellname Date Test Type Duration Measured Test Depth Pressure at MTD, psia Z Factor P eDals ure, Cum Gas, bcf PlZ, Psia #1 04/27/15 SITP (hrs) MTD ftLL 2,224 0.8746 Psia 0.3545 2997 201412015 Injection and Production Cycle KGSF #1 06/30/14 SITP 0 2,902 0.8988 3402 -0.0088 3785 KGSF #1 10/14/14 SITP 0 2,656 0.8863 3120 0.0996 3520 KGSF#1 10/29/14 SITP 0 2,640 0.8857 3102 0.1285 3502 KGSF#1 KGSF#1 11/14/14 SITP 0 2,605 0.8843 3062 0.1537 3462 KGSF #1 12/04/14 SITP 0 2,628 0.8852 3088 0.1548 3489 KGSF#1 KGSF#1 12/31/14 SITP 0 2,649 0.8860 3112 0.1553 3513 KGSF#1 KGSF#1 01/09/15 BHP 4 6384 3,103 0.8857 3102 0.1559 3503 KGSF #1 02/22/15 SITP 0 2,595 0.8839 3050 0.1911 3451 KGSF#1 04/01/15 SITP 0 2,557 0.8825 3006 0.2237 3407 KGSF #1 04/27/15 SITP 0 2,224 0.8746 2621 0.3545 2997 KGSF#1 05/14/15 SITP 0 2,112 0.8737 2491 0.4098 2851 KGSF#1 05/16/15 BHP 6 6369 2,474 0.8737 2474 0.4098 2832 KGSF#1 05/30/15 SITP 0 2,175 0.8741 2565 0.3826 2934 KGSF#1 06/15/15 SITP 0 2,172 0.8741 2561 0.3880 2930 KGSF#1 07/02/15 SITP 0 2,184 0.8742 2575 0.3886 2946 KGS F#1 07/15/15 SITP 0 2,120 0.8738 2501 0.4095 2862 2n15/2n1fi Iniartion and Production Cvcle KGSF#1 08/03/15 SITP 0 1,998 0.8738 2358 0.4627 2699 KGSF#1 08/16/15 SITP 0 1,942 0.8742 2293 0.5008 2623 KGSF#1 08/25/15 BHP 1 6371 2,238 0.8747 2238 0.5435 2559 KGSF#1 09/03/15 SITP 0 1,611 0.8812 1904 0.5755 2160 KGSF#1 09/14/15 SITP 0 1,755 0.8771 2073 0.5635 2364 KGSF#1 09/28/15 SITP 0 1,755 0.8771 2073 0.5909 2364 KGSF#1 10/08/15 SITP 0 1,719 0.8780 2031 0.6022 2313 Page 3 ATTACHMENT #1 -- KGSF POZ DATA (64-5 Sand) Parameter Value Units Gas Gravity 0.563 Pressure at MTD, psia Bench Datum 6369 ft (tvd) Datum Temp. 122 °F Avg Temp. 102 -F Wellname Date Test Type Test Duration (hrs) Gauge Massured est Test Depth MTD ft Pressure at MTD, psia Factor Datum Pressure, Psia Cum Gas, bcf P/Z, Psis KGSF#1 11/13/15 SITP 0 2,198 0.8743 2591 0.4528 2964 KGSF#1 11/18/15 SITP 0 2,081 0.8736 2455 0.4604 2810 KGSF#1 12/08/15 SITP 0 2,640 0.8857 3102 0.2585 3503 KGSF#1 01/19/16 SITP 0 2,832 0.8949 3322 0.1280 3712 KGSF#1 02/01/16 SITP 0 2,812 0.8938 3299 0.1297 3691 KGSF#1 02/23/16 SITP 0 2,765 0.8914 3246 0.1412 3641 KGSF#1 03/04/16 BHP 14 3,140 0.8871 3140 0.1783 3540 KGSF#1 04/18/16 SITP 0 2,642 0.8858 3105 0.2023 3505 KGSF #1 07/08/16 SITP 0 2,978 0.9036 3489 0.0205 3861 KGSF #1 07/16/16 SITP 0 2,945 0.9015 3451 0.0190 3828 KGSF #1 07/22/16 SITP 0 2,966 0.9029 3475 0.0085 3849 KGSF#1 07/31/16 SITP 0 2,943 0.9014 3449 0.0085 3826 Page 4 I r - - ♦ Primary Production — --- --E 2010 Injection Cycle ----- -- 42010/2011 Production Cycle +2011/2012 Injection and Production Cycle -- 02012/2013 Injection and Production Cycle --- • 2013/2014 Injection Cycle X2014/2015 Injection and Production Cycle •2016/2017 Injection and Production Cycle i 1 I 1 _ - - — 7 -.- — _.. I - - - 0.0 0.2 04 0.6 0.8 Cum Gas Produced (BCF) r - - ♦ Primary Production — --- --E 2010 Injection Cycle ----- -- 42010/2011 Production Cycle +2011/2012 Injection and Production Cycle -- 02012/2013 Injection and Production Cycle --- • 2013/2014 Injection Cycle X2014/2015 Injection and Production Cycle •2016/2017 Injection and Production Cycle i 1 I 1 _ - - — 7 -.- — _.. I - - - 0.0 0.2 04 0.6 0.8 Cum Gas Produced (BCF) Chevron August 12, 2009 Paul M. Winslow Petroleum Engineer Advisor Mr. Dan Seamount, Chairman Alaska Oil and Gas Conservation Commission 333 W. 7i" Avenue, Suite 100 Anchorage, AK 99501-3539 ~J Union ~i Company of Carifomia 3800 Centerpoi»t Dr., Suite 100 Anchorage, AK 99503 Tel: 9p7-263-7629 Email pwi»slow~chevro».com RE: 2009 Annual Material Balance Calculations of Production and Injection Volumes: Kenai Gas Storas~e Facility #1 (KGSF#1). Swanson River Field Dear Commissioner Seamount: Attached for Alaska Oil and Gas Conservation Commission (AOGCC) review is the 2009 annual material balance calculation of production and injection volumes for the Kenai Gas Storage Facility #1 (KGSF#1), as required per Storage Injection Order #ZA, This material balance includes all primary production from the Tyonek 64-5 reservoir (via the SRU 43-28 wellbvre), as well as all storage operations from the two gas storage wells, KGSF #1 and KGSF #7A. Primary production occurred from December 1998 through May 2001 and storage operations are on-going since June 2001. Attachment #1 is a table of mon#hly gas production and injection volumes for KGSF #1 (formerly SRU 43-28) and KGSF #7A, from the commencement of primary production, through August 10, 2009. Pressures from the Tyonek 64-5 reservoir have been measured/estimated from both downhole pressure buildups and from surface shut-in tubing pressures. The surface readings were then converted to downhole pressures at a common datum of 6,395 ft TVD. These data points are tabulated in Attachment #2 and plotted versus the net cumulative production (production less injection) on the standard P over Z plot, shown in Attachment #3. As noted in previous Annual Material Balance reports, Attachment #3 shows that the early injection cycle pressures deviated above the straight line path established by the primary depletion pressure points. Following the primary production and injection cycle, the next two or three cycles (production & injection) show a consistent trend of the pressure/cumulative production data points migrating further left of the straight fine path established by the primary depletion pressure points. The last two or three cycles (2006 - 2009) have been fairly consistent, indicating continued reservoir confinement of the gas storage volumes. MidContinent/Alaska/Chevron North America Exploration and Production vrww.chevron.com KGSF#1 2009 Annual Report August 12, 2009 Page 2 Note that the final 2008/2009 pressurelcumulative production data point (taken ?J19/09), was taken after a very short shut-in period (only 24 hrs). The reservoir pressure had not yet stabilized, thus it plots low on the P/Z vs. cumulative plat. !f the reservoir pressure had been allowed to stabilize, the pressure would have most likely fallen on the same trend as seen in the past two ar three production/injection cycles. If you or your staff has any questions regarding this annual report, please contact Paul Winslow at 263-7629. Sincerely, t~~~~~ Paul M. Winslow Petroleum Engineer Advisor Attachments: Mi~'ontineerc/AlaskalChevron North America Explorab~ end Prodtrretion http:/lwww.chevrar.cam ! • ATTACHMENT #1 KENAI GAS STORAGE FAGILITY #1 (KGSF#1) MONTHLY PRODUCTION AND INJECTION VOLUMES rSRU 43-281 KGSF #1 1 KGSF #7A Tyonek 64-5 Sand Tatals Monthly Monthly Monthly Monthly Net Voidage Total Gas Gas Gas Gas Gas (Prod -Inj) Inventory Inj. Prod. Inj. Prod. Cum for POZ (Gas-In-Place) Month MCF MCF MGF MCF MCF MCF 1,544,000 Dec-98 0 55,137 55,'137 1,488,863 Jan-99 0 79,404 134,541 1,409,459 Feb-99 0 64,367 198,908 1,345,092 Mar-99 0 73,920 272,828 1,271,172 Apr-99 0 62,180 335,008 1,208,992 May-99 0 76,912 411,920 1,132,080 Jun-99 0 76,903 488,823 1,055,177 Jul-99 0 72,268 561,091 982,909 Aug-99 0 60,311 621,402 922,598 Sep-99 0 48,667 670,069 873,931 Oct-99 0 42,056 712,125 831,875 Nov-99 0 39,385 751,510 792,490 Dec-99 0 33,783 785,293 758,707 Jan-00 0 39,890 825,183 718,817 Feb-00 0 20,895 846,078 697,922 Mar-00 0 38,219 884,297 659,703 Apr-00 0 35,729 920,026 623,974 May-00 0 22,502 942,528 601,472 Jun-00 0 8,627 951,155 592,845 Jul-00 0 30,397 981,552 562,448 Aug-00 0 56,660 1,038,212 505,788 Sep-00 0 30,505 1,068,717 475,283 Oct-00 0 29,330 1,098,047 445,953 Nov-00 0 48,633 1,146,680 397,320 Dec-00 0 29,741 1,176,421 367,579 Jan-01 0 46,236 1,222,657 321,343 Feb-01 0 47,777 1,270,434 273.,566 Mar-01 0 37,213 1,307,647 236,353 Apr-01 0 24,719 1,332,366 211,634 May-01 0 6,196 1,338,562 205,438 Jun-01 106,800 0 1,231,762 312,238 Jul-01 219,660 0 1,012,102 531,898 Aug-01 226,151 0 785,951 758,049 Sep-01 197,762 1,331 589,520 954,480 Oct-01 44,964 60,382 604,938 939,062 Nov-01 73,130 142,41$ 674,226 $69,774 Dec-01 28,281 159,046 804,991 739,009 Jan-02 134,429 47,741 718,303 825,697 Feb-02 102,768 65,400 680,935 863,065 Mar-02 250,716 4,507 434,726 1,109,274 Apr-02 107,164 51, 031 378, 593 1,165,407 May-02 89,21$ 16,147 305,522 1,238,478 Jun-02 106,081 3,868 203,309 1,340,691 0:1NAUiMCBUTAIaskalDeptslAssetDev\CIGas\Gas CFTiOpenmind\Swanson\Swanson RiverUnikIKGSF#11SunreyslPressureslAOGCC Annual Mat Bal Rpt\2008\KGSF #1 #7A Production Data 5-11-09.x1s ATTACHMENT #1 KENAI GAS STORAGE FACILITY #1 (KGSF#1) MONTHLY PRODUCTION AND INJECTION VOLUMES SRU 43-28 /KGSF #1 Monthly Monthly Gas Gas Inj. Prod. Month MCF MCF KGSF #7A ~ Monthly Monthly Gas Gas Inj. Prod. MCF MCF Tyonek 64-5 Sand Totals Net Voidage Total Gas {prod - lnj) Inventory Cum for POZ {Gas-In•Place) MCF MCF Jul-02 66,737 18,479 155,051 .1,388,949 Aug-02 19,263 140,660 276,448 1,267,552 Sep-02 73,737 60,587 263,298 1,280,702 Oct-02 0 272,859 536,157 1,007,843 Nov-02 0 193,970 730,127 813,873 Dec-02 701 149,810 879,236 664,764 Jan-03 0 125,601 1,004,837 539,163 Feb-03 0 77,767 1,fl82,604 461,396 Mar-03 0 58,978 1,141,582 402,418 Apr-03 0 40,867 1,182,449 361,551 May-03 0 31,252 1,213,701 330,299 Jun-03 0 23,977 1,237,678 306,322 Jul-03 0 17,937 1,255,615 288,385 Aug•03 0 9,611 1,265,226 27$,774 Sep-03 173,513 0 1,091,713 452,287 Oct-03 298,780 0 792,933 751,067 Nov-03 287,672 0 .505,261 1,038,739 Dec-03 264,137 1,456 242, 580 1, 301,420 Jan-04 30,651 56,710 268,639 1,275,361 Feb•04 42,508 56,096 282,227 1,261,773 Mar-04 18,083 153,053 417,197 1,126,803 Apr-04 46,661 49,678 420,214 1,123,786 May-04 173,756 1,811 248,269 1,295,731 Jun-04 117,522 0 130,747 1,413,253 Jul-04 3,936 0 126,811 1,417,189 Aug-04 0 0 126,811 1,417,189 Sep-04 83,061 0 43,750 1,500,250 Oct•04 20,297 37,277 0 38,408 99,138 1,444,862 Nov-04 100,085 46,394 114,424 0 -681977 1,612,977 Dec-04 1,372 5,222 1,523 3,687 -62,963 1,606,963 Jan-05 35,347 66,988 771 60,345 28,252 1,515,748 Feb-05 31,778 82,231 3,217 114,252 189,740 1,354,260 Mar-05 43,588 55,099 1,211 78,836 278,876 1,265,124 Apr-05 28,607 35,501 8,.081 19,522 297,211 1,246,789 May-05 32,140 88,209 18,126 101, 966 437,120 1,106,$80 Jun-05 116,349 2,892 60,975 2,436 265,124 1,278,876 Jul-05 79,421 4,803 96,626 740 94,620 1,449,380 Aug-05 56,470 60,228 61,086 25,369 62,661 1,4$1,339 Sep-05 75,912 16,301 8,356 11,394 6,088 1,537,912 Oct-05 44,207 68,184 13,635 94,247 110,677 1,433,323 Nov-05 68,267 45,043 65,065 62,387 84,775 1,459,225 Dec-05 68,931 29,178 97,297 20,153 -32,122 1,576,122 Jan-06 24,400 154,713 21,678 176,620 253,133 1,290,867 Feb-06 123,934 83,744 191,098 99,388 121,233 1,422,767 p:\NAU\MCBUTAIaskaiDeptsWssetQevlClGas\Gas CFROpenmind\Swanson\Swanson RiverUnitUCGSF#1\Sunreys\PressuresWOGCC Annual Mat Bat Rpt\2009\KGSF #1 #7A Production Data 8-11-09.x15 ATTACHMENT #1 KENAI GAS STORAGE FACILITY #1 (KGSF#'# ) MONTHLY PRODUCTION AND INJEGTION VOLUMES SRU 43-281 KGSF #1 Monthly Monthly Gas Gas Inj. Prod. Month MCF MCF r KGSF #7A , Monthly Monthly Gas Gas Inj. Prod. MCF MCF Tyonek 64-5 Sand Totals Net Voidage Total Gas {Prod -Inj) Inventory Cum far POZ {Gas-in-Place) MCF MCF Mar-O6 54,898 145,807 35,421 147,941 324,662 1,219,338 Apr-06 131,597 34,604 85,982 19,989 161,676 1,382,324 May-06 106,658 4,759 110,253 26,840 -23,636 1,567,636 Jun-O6 50,042 675 14,923 482 -87,444 1,631,444 Jul-06 0 79,130 0 36,777 28,463 1,5'15,537 Aug-06 63,182 t 30 16,045 0 -50,634 1,594,634 Sep-06 45,366 0 18,939 0 -114,939 1,658,939 Oct-06 18,013 58,243 42,099 7,334 -109,474 1,653,474 Nov-06 30,592 82,779 24,730 98,430 16,413 1,527,587 Dec-06 55,743 17,160 102,029 14,959 -109,240 1,653,240 Jan-07 21,586 59,415 34,936 91,755 -14,592 1,558,592 Feb-07 7,025 59,181 41,275 106,823 103,112 1,440,888 Mar-07 15,008 58,203 83,830 92,486 154,963 1,389,037 Apr-07 75,784 6,866 185,316 $,751 -90,520 1,634,520 May-07 8,872 23,772 32,655 55,100 -53,175 1,597,175 Jun-07 11,714 0 740 134 -65,495 1,609,495 Jul-07 7,350 0 0 0 -72,845 1,616,845 Aug-07 1,767 891 230 0 -73,951 1,617,951 Sep-07 0 253 0 240 -73,458 1,617,458 Oct-07 9,706 18,077 11,553 6,168 -70,472 1,614,472 Nov-07 13,638 40,135 7,563 8,237 -43,301 1,587,301 Dec-07 8,443 61,237 3,820 132,338 138,011 1,405,989 Jan-08 20,892 75,223 751 88,161 279,752 1,264,248 Feb-08 8,162 54,785 8,134 83,015 401,258 1,142,744 Mar-0B 94 1,014 0 4,872 407,048 1,136,952 Apr-08 46,111 3,360 11,372 0 352,925 1,191,075 May-0$ 88,929 12,687 218,106 12,037 70,614 1,473,386 Jun-08 20,487 4,309 32,741 0 21,695 1,522,305 Jul-08 8,057 0 2,181 0 11,457 1,532,543 Aug-08 19,270 484 0 0 -7,329 1,551,329 Sep-0$ 5,064 1,530 0 820 -10,043 1,554,043 Oct-0B 15,323 46,294 2,459 5,913 24,382 1,519,618 Nov-08 3,361 95,514 0 82,213 198,748 1,345,252 Dec-08 10,856 92,077 7,285 162,128 434,812 1,109,188 Jan-09 25,898 54,278 31,732 114,632 546,092 997,908 Feb-09 26,994 50,408 42,968 76,145 602,683 941,317 Mar-09 25,801 14,995 10,298 22,451 604,030 939,970 Apr-09 158,105 989 236,991 608 210,531 1,333,469 May-09 36,7$6 103 134,138 27 39,737 1,504,263 Jun-09 43,429 519 103,093 299 -105,967 1,649,967 Jul-09 0 0 0 0 -105,96? 1,649,967 Aug-09 0 0 0 0 -105,967 1,649,967 O:WAUIMCBUWIaskalDeptsWssetOev\CIGaslGas CFTiOpenmindlSwanson\Swanson RiverUn~tKGSF#1\Surveys\PressureslAOGCC Annual Mat Bal Rpt120091KGSF #1 #7A Production Data 8-11-09.x3s i ,~ ATTACHMENT #2. Tyoaek 64-5 Sand POZ DATA Kenai Gas Storage Facility #1 (KGSF #1) Wells: KGSF #I &KGSF #7A Date T c Test Gau c U tU, fl Cara, bef Tb P, is Res- P, ial. P(L Comments DQM a4Y DD nTitr"rT(tt~] 12151!998 5(17' D 0 2850 330b 0.8782 37W Sl7P 74711999 Sf1P 6395 O.i61 1775 - 2D39 0.8585 2348 S[7P 9/44000 AFIPbuild .6395 1.449 882 11D0 0.90!7 1220 PBUwI FL-6193' 2401300E SIl'P 0 1.270 540 626 0.9396 667 St7P bN400i SI77' 0 1.339 380 441 0.9564 461 SITP ~nnt run:rnnu rvrt >± 6H4001 SITP 0 1..334 384 44] 0.9566 46t SIIP 7111!200! SI7P 0 1.148 87i 1D73 0.9078 1118 21 ht S1TP alto 6t8hr irs ettipn 9118200[ $ffP 0 0.673 1820 21 I 1 0.8578 2061 4 !v SITP priw to fbw due m SHP FSU 9402001 ST'fP 0 0.b78 1814 2099 0.8580 2447 24 hr SITP after 1 of flaw on 9119 at 5.5 mnxfd 10/94401 SffP 0 0.572 1980 2297 0.8562 2682 8d SITP durbtgCl2 rtstagin pmt rutarnnx curt >: 14/94001 5177' 0 0.572 1980 2297 0.8562 2b82 Sd. SffP Cit. "a 4;34tb2 SffP 0 0.400 2280 2645 0.8584 3081 lStgtrrSl'fP T1124002 S17P 4 0.190 2420 3039 0.8680 3501 SITP 7464002 517-0 0 0.200 2630 3050 0.8484 3513 SITP 20024003 z44311,urt'no x CYC1.s 7454003 5177' 0 1.1s2 224 260 0.9739 267 SI77'fromsurfPAU i 2,!'194003 STCP 0 0.254 2440 2829 0.8420 3282 Sl atat g 19 ivs. At shut ur ~ 2 lvs; 2440 PsiB SIiP; Korea FL 2443400-0 PRODUCTION CYC1E 12494003 S[I7' 0 0.254 2440 2829 0.8620 3282 Sl duration = i9 hrs. At shut et =2 hrs; 2440 SIfP; I es FL 4128!2004 STFP 4 0.445 2075 2406 0.8362 2810 SCIP-Ahr 2004 tlvJ[sCTIOx CYC3.E 20044005 PRODUC7ION CYCLE Ib'S2004 Sf1T G -0.082 2865 3322 0.8789 3780 S1TP-4 6!84003 SfIP 0 0.396 2080 2412 U.HS62 2817 SITP-6}a 20054004 PRODL'C77ON CYCLE 121304005 0 -0.044 278b 3231 0.8751 3692 Sl'fP • 3 3424006 SffP D 0.3% 1995 2209 0.8567 2579 S -K 1 day (IiGSFN7a) t~ rnnrcrnnu curt u 34212006 7i10t2004 Slip 5RP D 4 0.3% •0.100 1905 2813 2204 3244 0.8547 0.8764 2579 3723 SITP-<1 KGSF#la 5174-10 87144044 SITP 0 AA23 2687 3116 0.8707 3579 St77'-19 GSFa7a 9!3012006 S171' 0 -0.127 2815 3244 0.8764 3725 5174-12 KGSF#1) 346P1tm7 SR"P ~ 4 0.147 2231 2587 0.8574 3017 SITP-4 KGSFtiI 4274007 SI77' 0 -0,117 2828 3279 0.8771 3739 S11Y-8 GSFOI 6/4/2007 S1SP 0 -0.ObS 2711 314+1 0.8717 3606 31TP-5 GSFbf 9/114007 S1TP D -0.086 2717 3131 D.8720 3598 STIP-27 (KGSF#p 91114007 IZT2/20p7 S17T SITP 0 0 -4.08$ -0.043 2717 2604 3151 3005 Q8T20 D.84b9 3398 3466 S7TP•27da KGSFIii S1TP-6 GSFd7A -P,~4W 1!174008 SITP 0 8.243 2078 2397 O.85b2 2800 Siff-$ GSF417A 4/84008 SffP 0 4,407 1760 2026 0.8392 2358 S17P- 3? (KGSF b7A. 4!84008 5rTN D OA07 1760 2024 0.8392 2358 S17P - 37 da KGSF B7A 312,+2008 517'4 0 0.333 1923 2218 D.8566 2567 3174--2 months GSFR7Ay 7114008 S17Y 0 0.022 2643 3044 0.8b84 3494 SPfP-22 KGSFtiI) 7482468 Sl7P 0 D.015 2b4$ 3053 0.868b 3517 SI1P-22 GSF BI 91164408 SCIY 0 -0.005 2664 3073 0.8492 3373 Sl7P • 22 GSF NI 9!304008 SITP 0 -0.410 2670 3080 4.8694 3343 Sl7P - 3 days (KGSF 81} 811344091:32 PYIO:WALAMCA1JWukalDepts~4ssetbeJ+CIGas1USF32S1PMN~1Gas StoragelSwanson RiveNCGSFJlt B: 1t7A 64.5 Sd POZ 8-10.O9.uls4t-5 PO7. Data ATTACNMIrNT #2 Tyonek b4-5 Sand PQL RATA Kenai Gas Storage Facility #I (KGSF #l) Wells: KGSF #1 &KGSF #7A Dace T Test Ga+ e D th, fl Cum, bcf 'Ib is Res. Y. , is Z P2 Cwnmaus ~nnanmo t+>:nnt rrrtnna rvrt c 9!1013008 Sfl'P 0 -O.OI O 2670 3080 0.8494 3543 SIYP - 5 da GSF #1) 1,`Id/2004 STCP 0 0.57b 1392 }594 0.8728 I83I SLIP-25 s GSFd!1 211 912 0 0 9 S]TP 0 O.d26 1376 1361 0.8649 1538 SiTP - 24 hr S1 {KGSF #i ~ #7A) ~(tAQ TU7FfTinN ('V('i F 7J192004 SIiP 0 0.626 1376 13d1 0,6849 1538 SL'I'P • 24 hr SI (KGSF t71 d: Ii7A 6II412004 5CCP 0 -O.OdS 2781 3209 0.8742 3b71 SIl'P-IOd SF GSFftI 711311009 SiIP 0 -O.IOd 2830 3287 0.6774 3744 SIII' • 14 da 51 GSF Mly 871012004 STT'P 0 -0. l Od 2628 3242 0.6764 3722 Sm" - 42 days SI (KGSF #7A) Br 91120091 32 PMO:lNAU1MCBUvVaskalOep[ivlsselDed~~ClGasICJSFRSU'MWiGu SroragelSwmuon RiverIKGSFHI 8c Y7A b4-5 Sd PO7. 8-10-09::c1ab4.5 PO2 Data ATTACHMENT #3 KGSF #1 FACILITY (Tyonek 64-5 Sand) - P/Z vs Cumulative Production Plot 4oao - 3500 3000 2500 „ 2aoo .~ ...~ '~ lsoo 1000 soa ~~. _-__ __ ~-Primary --~-'O1 Inj cycle --o--'02 Inj cycle -+---'02 Prod cycle -~--'03 Inj Cycle II i 04 Prod Cycle 041nj Cycle I t OS Prod Cycle ~ t --~-OS Inj Cycle -~--06 Prod Cycle -a-06 Inj Cycle -~ 07 Prod Cycle ~-071nj Cycle -+~- 08 Prod Cycle -~-08 Inj Cycle - 09 Prod Cycle ~- 091nj Cycle -0.2 0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 1.8 2 Cumulative Gas Produced (Bcf) O:\NAU\MCBU\Alaska\Depts\AssetDev\CIGaslGas CF"I~OpenmindlSwansonlSwanson RiverUnit\KGSF#I\Surveys\Pressures~AOGCC Annual Mat Bal RpN20091KGSF#1 & #7A 64-5 Sd POZ 8-10-09.x1s Page 1 of 2 Maunder, Thomas E (DOA) From: Winslow, Paul M [PWinslow@chevron.com] Sent: Tuesday, December 15, 2009 8:43 AM To: Maunder, Thomas E (DOA) Cc: Ayer, Phil M Subject: RE: 2009 SIO 2A Reports Attachments: KGSF#1 2009 Annual Mat Bal Rpt.pdf Tom, Attached is a copy of the 2009 Annual Material Balance report for the Kenai Gas Storage Facility #1 (KGSF#1 ), which was delivered to the AOGCC on 8/12/09. Phil and I are still looking for the 2004 and 2008 reports, and will forward them to you when they are located. Note that all of the data presented in the 2004 and 2008 annual reports are included in the 2009 report. Attachments 1 - 3 would be truncated at the appropriate date/year and the cover letter would reflect the storage status up to those dates. Once again, we will endeavor to find the missing copies and forward them your way. Best regards, Paul Paul Winslow Chevron North American Exploration & Production MidContinent /Alaska Business Unit 3800 Centerpoint Dr., Suite 100, Anchorage, AK 99503 Tel: 907-263-7629 Cell: 907-382-3813 Fax 907-263-7828 pwinslow@chevron.com From: Ayer, Phil M Sent: Monday, December 14, 2009 8:07 PM To: Maunder, Thomas E (DOA) Cc: Winslow, Paul M Subject: RE: SIO 2A Reports Hello Tom, Since 2008, Paul Winslow is the contact for submitting the annual reports for KGSF storage facility governed by SIO 2A (wells KGSF#1 and KGSF#7a). I will forward your request to him. I think he will be able to send copies of the annual reports. Phil Phil Ayer MidContinent/Alaska Business Unit Chevron North American Exploration and Production Company 3800 Centerpoint Dr., Suite 100, Anchorage, AK 99503 907-263-7620 (work) 907-250-2711 (cell) 907-263-7828 (fax) 1/11/2010 Page 2 of 2 From: Maunder, Thomas E (DOA) [mailto:tom.maunder@alaska.gov] Sent: Monday, December 14, 2009 3:32 PM To: Ayer, Phil M Subject: SIO 2A Reports Phil, Are you responsible for the annual reports for storage in the KGSF storage facility governed by SIO 2A? I am looking through the SIO and well files and I have not been able to find reports for 2004, 2008 or 2009. I did find the 2005 report in the KGSF #1 well file. Can you provide additional copies? Email is fine. Thanks in advance, Tom Maunder, PE AOGCC 1/11/2010 Chevron North American Exploration and Production Company P.O.Box196247 909 West 9th Avenue Anchorage, AK 99519-6247 Tel 907 263 7620 ~ \ C ~E~V~D September 15, 2007 Mr. John Norman Mr. Dan Seamount Alaska Oil and Gas Conservation Commission 333 W. 7th Avenue, Suite 100 Anchorage, AK 99501-3539 Alaska p • SEP 1 ~ ~~~7 rl ~ has Co ~~~h~~a~'~ ~°mm~ssion RE: ANNUAL MATERIAL BALANCE CALCULATIONS OF PRODUCTION AND INJECTION VOLUMES FOR KGSF#1 FACILITY, SWANSON RIVER FIELD Dear Commissioners: Attached for your review is the annual material balance calculation of production and injection volumes for the KGSF#1, as required per Storage. Injection order #2A. This material balance covers the primary production period, as well as the June 15, 2001 through September 11, 2007 storage operation period. Attachment #1 is a table of gas production and injection volumes for the KGSF#1 (formerly SRU 43-28) and KGSF#7a wells beginning with the commencement of primary production and ending with the data for September 11, 2007. Note that the August and September data are estimated from daily metered values. Reservoir pressure estimates were obtained through surface shut in tubing pressure readings which were converted to bottomhole pressures. In addition a surface pressure transient test was conducted in July 2003 and downhole gauges were run to mid-perforation to confirm the surface recorded pressure. These data points are tabulated in attachment #2 and plotted vs. cum production on the standard POZ plot in attachment # 3. Note in attachment # 3 that for the most part the early injection cycle pressures deviate above the straight line path established with the primary depletion points and the production volumes deviate below the path, as expected. The 8/8/05 injection cycle data point and the 3/22/06 producing cycle data point did not have sufi'ICient shut in time. Overall, the plot demonstrates continued reservoir confinement of the gas storage volumes. Please contact Phil Ayer at 263-7620 if you have any questions. Sincerely, j,lr /~~ Philip .Ayer Petroleum Enga7~ieer Attachments • ATTACHMENT #1 -KGSF FACILITY PRODUCTION AND INJECTION~UMES 43-281KGSF#1 KGSF#7a Mon thly Mo nthly Monthly Monfhly Gas Gas Gas Gas Date Inj Prod Inj Prod MCF Mcf MCF Mcf Dec-98 0 55137 Jan-99 0 79404 Feb-99 0 64367 Mar-99 0 73920 Apr-99 0 62180 May-99 0 76912 Jun-99 0 76903 Jul-99 0 72268 Aug-99 0 60311 Sep-99 0 48687 Oct-99 0 42056 Now98 0 39385 Dec-99 0 33783 Jan-00 0 39890 Feb-00 0 20895 Mar-00 0 38219 Apr-00 0 35729 May-00 0 22502 Jun-00 0 8627 Jul-00 0 30397 Aug-00 0 56880 Sep-00 0 30505 Oct-00 0 29330 Now00 0 48633 Dec-00 0 29741 Jan-01 0 46236 Feb01 0 47777 Mar-01 0 37213 Apr-01 0 24719 May-01 0 8196 Jun-01 108800 0 Jul-01 219860 0 Aug-01 228151 0 Sep-01 197762 1331 Oct-Oi 44964 60382 Now01 73130 142418 Dec-01 28281 159048 Jan-02 134429 47741 Feb-02 102788 65400 Mar-02 250718 4507 Apr-02 107184 51031 May-02 89218 16147 Jun-02 108081 3888 Jul-02 88737 18479 Aug-02 19263 140680 Sep-02 73737 60587 Oct-02 0 272859 Now02 0 193970 Dec-02 701 149810 Jan-03 0 125801 Feb-03 0 77767 Mar-03 0 58978 Apr-03 0 40887 May-03 0 31252 Jun-03 0 23977 Jul-03 0 17937 Aug-03 0 9611 Sep-03 173513 0 Oct-03 298780 0 Now03 287872 0 Dec-03 240881 1458 Jan-04 27908 58710 Fab-04 42508 58096 Mar-04 18083 153053 Apr-04 48881 49876 May-04 173756 1811 Jun-04 117522 0 Jul-04 3936. 0 Aug-04 0. 0 Sep-04 83061. 0 Oc[-04 20297. 37277 Now04 99404. 46394 114424. 0 Deo-04 1372. 5222 1523. 3687 Jan-OS 35347. 86988 771. 60345 Feb-O5 31778. 82231 3217. 114252 Mar-05 43588 55099. 1211 78838. Apr-05 28807 35501. 8081 19522. May-05 32140 88209. 18126 101986. Jun-OS 118349 2892 60975 2436 Jul-OS 79421 4803 96828 740 Aug-OS 58470 60228 81088 25369 Sep-OS 75912 16301 8358 11394 Oct-OS 44207 68184 13635 94247 Now05 88267 45043 65065 62387 Dec-05 68931 29178 97297 20153 Jan-O6 24400 154713 21878 178620 Feb-O6 123934 83744 191098 99386 Mar-O6 54698 145807 35421 147941 Apr-OB 131597 34604 85982 19989 May-OB 106658 4759 110253 26840 Jun-OB 50042 875 14823 482 Jul-OB 0 79130 0 38777 Aug-O6 83182 130 16045 0 Sep-O6 45366 0 18939 0 Oct-OB 18013 58243 42099 7334 Now06 30592 82779 24730 98430 Dec-O6 55743 17160 102029 14959 Jan-07 21586 59415 34936 91755 Feb-07 7025 59161 41275 106823 Mar-07 15008 58203 83830 92486 Apr-07 75764 6866 185318 8751 May-07 8872 23772 32655 55100 Jun-07 11714 0 740 134 Jul-07 7350 0 0 0 Aug-67 417: zs7 ear o <.e:,t. s1.2ncrr o 0 9 2aa Auyusa an,:i S..pt>xiber;!rs Poam+.asi i[arn daily tr:etered (gates Tvonek 64-5 Sand Totals (Prod-Inj) Total Gas Cum for POZ Gas plotting Inventory MCF MCF 55,137 134,541 198,908 272,828 335,008 411,920 488,823 581,091 621,402 670,089 712,125 751,510 785,293 825,183 846,078 884,297 920,026 942,528 951,155 981,552 1,038,212 1,068,717 1,098,047 1,148,680 1,176,421 1,222,657 1,270,434 1,307,647 1,332,366 1,338,562 1,231,762 1,012,102 785,951 589,520 604,938 674,226 804,991 718,303 880,935 434,726 378,593 305,522 203,309 155,051 276,448 263,298 536,157 730,127 879,236 1,004,837 1,082,604 1,141,582 1,182,449 1,213,701 1,237,676 1,255,815 1,265,228 1,091,713 792,933 505,281 285,856 294,660 308,248 443,216 448,235 274,290 156,768 152,832 152,832 89,771 88,751 (80,883) (74,889) 18,548 178,034 267,170 285,505 425,414 253,418 82,914 50,955 (5,818) 98,971 73,069 (43,828) 241,427 109,527 312,956 149,970 (35,342) (99,150) 18,757 (62,340) (128,845) (121,160) 4,707 (120,948) (26,298) 91,408 143,257 (102,226) (84,881) (77,201) (84,551) (88,671) (88,431) ...................... 1,338,562 1,283,425 1,204,021 1,139,654 1,065,734 1,003,554 926,642 849,739 777,471 717,160 888,493 828,437 587,052 553,269 513,379 492,484 454,265 418,536 396,034 387,407 357,010 300,350 269,845 240,515 191,882 162,141 115,905 68,128 30,915 6,196 108,800 328,460 552,811 749,042 733,824 684,338 533,571 820,259 857,827 903,836 959,989 1,033,040 1,135,253 1,183,511 1,082,114 1,075,264 802,405 608,435 459,328 333,725 255,958 196,980 156,113 124,881 100,884 82,947 73,336 246,849 545,829 833,301 1,072,708 1,043,902 1,030,314 895,344 892,327 1,084,272 1,181,794 1,185,730 1,185,730 1,268,791 1,251,811 1,419,245 1,413,231 1,322,016 1,180,528 1,071,392 1,053,057 913,148 1,085,144 1,255,648 1,287,607 1,344,180 1,239,591 1,285,493 1,382,390 1,097,135 1,229,035 1,025,808 1,188,592 1,373,904 1,437,712 1,321,805 1,400,902 1,485,207 1,459,742 1,333,655 1,459,508 1,384,860 1,247,158 1,195,305 1,440,788 1,403,443 1,415,763 1,423,113 1,427,233 1,428,993 ~~ 9/15/2007 11:55 AM O:\Gas CFT\Openmind\Swanson\Swanson RiverUnitUCGSF#1\Sunreys\PressuresWOGCC Annual Mat Bal Rpt\2007\KGSF #1 #7a prod inj updated 070911.x1s 84-5 sd GS totals for AOGCC ATTACHMENT #2 -- KGSF #1 POZ DATA (Tyonek 64-5 Sand) Data SG 0.56 Datum R 6395 Tem F 122 Temp, °R 582 Z Guess 0.88 Tb .ID,inches 1.992 PRIMARY PRODUCTION Date T e Test Gau e De th ft Cum bcf Tb P sia Res. P si Z P/Z Comments 12/5/1998 SITP 0 0 2850 3306 0.8812 3751 SITP 7/27/1999 SITP 6395 0.561 1775 2059 0.8664 2376 SITP 9/9/2000 BHP buildu 6395 1.069 882 1100 0.9082 1211 PBU w/Gau es FL _ 6195' 2/20/2001 SITP 0 1.27 540 626 0.9432 664 SITP 6/9/2001 SITP 0 1.33856 380 441 0.9535 462 SITP ?nn1 TNIReTTONCVnT.E 7/11/2001 SITP 0 1.148 875 1015 0.9140 1110 21 hr SITP after 618 hr in'ection 9/18YL001 SITP 0 0.673 1820 2111 0.8655 2439 4 hr SITP prior to flow due to SHP ESD 9/20/2001 SITP 0 0.678 1810 2099 0.8656 2425 24 hr SITP after 1 da of flow on 9/19 at 5.5 mmcfd 10/9/2001 SITP 0 0.572 1980 2297 0.8634 2660 8 da SITP during C 12 resta in 2002 IN.TF,CTION CYCLE 4/5/2002 SITP 0 0.400 2280 2645 0.8644 3059 15 how SITP 7/12/2002 SITP 0 0.190 2620 3039 0.8723 3484 SITP 7/26/2002 SITP 0 0.200 2630 3050 0.8726 3496 SITP 2002 PRODUCTION CYCLE 12/5/2002 SITP 0 0.740 1415 1641 0.8789 1867 SITP 65 hr SI 7/25Y2003 SITP 1 .62 224 260 0.9757 266 SITP from surf PBU 2003 INJECTION CYCLE 2004 PRODUCTION CYCLE 4/28/2004 SITP 0.445 2075 2406 0.8631 2788 SITP-24 hr 2004 INJECTION CYCLE 7/14/2004 SITP 0.153 2565 2974 0.8705 3417 SITP - 12 da 12/5/2004 SITP -0.082 2865 3322 0.8818 3768 SITP-4day 2005 PRODUCTION CYCLE 6/8/2005 SITP 0.396 2i8C 2412 0.8631 2795 SITP-6 hr 2005 INJECTION CYCLE 8/8/2005 SITP 0.022 2828 3279 0.8802 3726 SITP-1 hr 12/30/2005 -0.044 2786 3231 0.8784 3678 SITP - 3 days 2006 PRODUCTION CYCLE 3/22/2006 SITP 0.396 1905 2209 0.8641 2556 SITP - < 1 day (KGSF#7a) 7/10/2006 SITP -0.100 2815 3264 0.8796 3711 SITP-10 days oinni~nnFCTTP -0.127 2815 3264 0.8796 3711 STTP-12 day (KGSF#1) 2007 I 12/4/2006 SITP -0.049 2665 3090 0.8738 3537 SITP-18.5 hrs(KGSF#7a) I 3/26/2007 SITP 0.167 2231 2587 0.8638 2995 SITP -4 day (KGSF#1) 2006 INJECTION CYCLE I 6/4/2007 SITP -0.065 2711 3144 0.8755 3591 SITP-5 day(KGSF#1) 9/11/2007 SITP -0.088 2717 3151 0.8757 3598 SITP-27 day(KGSF#1) 9/15/200712:03 PMO:\Gas CFT\Openntind~SwansonlSwanson RiverUnit\43-28\Surveys\PressweUCGSF#l~oz 070915.xIsPOZ Data unadj (091507) ATTACHMENT #3 -- KGSF #1 FACILITY P/Z vs Cumulative Production Plot (Tyonek 64-5 Sand) • Primary ^'O1 Inj cycle •'02 Inj cycle O'02 Prod cycle •'03 Inj Cycle ~ 04Prod Cycle • 04 Inj Cycle O OS Prod Cycle ^ OS Inj Cycle ~- 06 Prod Cycle - 06 Inj Cycle D 07 Prod Cycle X 07 Inj Cycle 4000 3500 3000 2500 2000 0 a 1500 1000 500 0 - ~~ -----------------a- ---- - ---- - ------------------------- - ------- -- - ------------------------------- ~ ~ _ ~ ------------------------------------------------------ _ ~ _ ~ _ ~ ~ ~ - . ^ I ~ -0.2 0.3 0.8 1.3 Cum Gas Produced, bcf 1.8 i ~ ~I ~ ~~ •I 9/15/2007 12:05 PM O:\Gas CFT\Openmind\Swanson\Swanson RiverUnit\43-28\Surveys\Pressure\KGSF#l~oz 070915.x1s Storage POZ plot (091507unadj) Chevron Philip M. Ayer Union Oil Company of California Petroleum Engineer P.O. Box 196247 Anchorage, AK 99519-6247 Tel 907 263 7620 Fax 907 263 7847 Email pmayer@chevron.com September 14, Zoos ~ EC E IVE D sEp r $ zoos Mr. John Norman Mr. Dan Seamount Alaska Oil & Gas Cons. Commission Alaska Oth and Gas Conservation Commission Anchorage 333 W. 7 Avenue, Suite 100 Anchorage, AK 99501-3539 RE: ANNUAL MATERIAL BALANCE CALCULATIONS OF PRODUCTION AND INJECTION VOLUMES FOR KGSF#1 FACILITY, SWANSON RIVER FIELD Dear Commissioners: Attached for your review is the annual material balance calculation of production and injection volumes for the KGSF#1, as required per Storage Injection order #2A. This material balance covers the primary production period, as well as the June 15, 2001 through August 22, 2006 storage operation period. Attachment #1 is a table of gas production and injection volumes for the KGSF#1 (formerly SRU 43-28) and KGSF#7a wells beginning with the commencement of primary production and ending with the data for August 22, 2006. Note that the July and August data are estimated from daily metered values. Reservoir pressure estimates were obtained through surface shut in tubing pressure readings which were converted to bottomhole pressures. In addition a surface pressure transient test was conducted in July 2003 and downhole gauges were run to mid-perforation to confirm the surface recorded pressure. These data points are tabulated in attachment #2 and plotted vs. cum production on the standard POZ plot in attachment # 3. Note in attachment # 3 that for the most part the early injection cycle pressures deviate above the straight line path established with the primary depletion points and the production volumes deviate below the path, as expected. The 8/8/05 injection cycle data point and the 3/22/06 producing cycle data point did not have sufficient shut in time. Overall, the plot demonstrates continued reservoir confinement of the gas storage volumes. Please contact Phil Ayer at 263-7620 if you have any questions. Sincerely, ,., i,~ ~ ~~ Philip M. Ayer v Petroleum Engineer Attachments Union Oil Company of California / A Chevron Company http://www.chevron.com ATTACHMENT #1 -KGSF FACILITY PRODUCTION AND IN~ N VOLUMES 43-28/KGSF#1 KGSF #7a Tvonek 648 Sand Totals (Prod-Inj) Total Gas Mon thly Monthly Monthly Monthy Cum for POZ Gas Gas Gas Gas Gas plotting Inventory Dale Inj Prod Inj Prod MCF Mcf MCF Mcf MCF MCF 1,338,562 Dec-98 D 55137 55,137 1,283,425 Jan-99 0 79404 134,541 1,204,021 Feb-99 0 64367 198,908 1,139,654 Mar-99 0 73920 272,828 1,065,734 Apr-99 0 62180 335,008 1,003,554 May-99 0 76912 411,920 926,642 Jun-99 0 76903 488,823 849,739 Jul-99 0 72268 561,091 777,471 Aug-99 0 60311 621,402 717,160 Sep-99 0 48667 670,069 668,493 Ocl-99 0 42056 712,125 626,437 Nov-99 0 39385 751,510 587,052 Deo99 0 33783 785,293 553,269 Jan-00 0 39890 825,183 513,379 Feb-00 0 20895 846,078 492,464 Mar-00 0 38219 884,297 454,265 Apr-00 0 35729 920,026 418,536 May-00 0 22502 942,528 396,034 Jun-00 0 8627 951,155 387,407 Jul-00 0 30397 981,552 357,010 Aug-00 0 56660 1,038,212 300,350 Sep-00 0 30505 1,068,717 269,845 Ocf-00 0 29330 1,098,047 240,515 Nov-00 0 48633 1,146,680 191,882 Dec-00 0 29741 1,176,421 162,141 Jan-01 0 46236 1,222,657 115,905 Feb-01 0 47777 1,270,434 68,128 Mar-01 0 37213 1,307,647 30,915 Apr-01 0 24719 1,332,366 6,196 May-01 0 6196 1,338,562 - Jun-01 106800 0 1,231,762 106,800 Jul-01 219660 0 1,012,102 326,460 Aug-01 226151 0 785,951 552,611 Sep-01 197762 1331 589,520 749,042 Oct-01 44964 60382 604,938 733,624 Nov-01 73130 142418 674,226 664,336 Dec-01 28281 159046 804,991 533,571 Jan-02 134429 47741 718,303 620,259 Feb-02 102768 65400 680,935 657,627 Mar-02 250716 4507 434,726 903,836 Apr-02 107164 51031 378,593 959,969 May-02 89218 .16147 305,522 1,033,040 Jun-02 106081 3868 203,309 i,i35,253 Jul-02 66737 18479 155,051 1,183,511 Aug-02 19263 140660 276,448 1,062,114 Sep-02 73737 60587 263,298 1,075,264 Oct-02 0 272859 536,157 802,405 Nov-02 0 193970 730,127 608,435 Deo02 701 149810 879,236 459,326 Jan-03 0 125601 1,004,837 333,725 Feb-03 0 77767 1,082,604 255,958 Mar-03 0 58978 1,141,562 196,980 Apr-03 0 40867 1,182,449 156,113 May-03 0 31252 1,213,701 124,861 Jun-03 0 23977 1,237,678 100,884 Jul-03 0 17937 1,255,615 82,947 Aug-03 0 9611 1,265,226 73,336 Sep-03 173513 0 1,091,713 246,849 Oct-03 298780 0 792,933 545,629 Nov-03 287672 0 505,261 833,301 Dec-03 240861 1456 265,856 1,072,706 Jan-04 27906 56710 294,660 1,043,902 Feb-04 42508 56096 308,248 1,030,314 Mar-04 18083 153053 443,218 895,344 Apr-04 46661 49678 446,235 892,327 May-04 173756 1811 274,290 1,064,272 Jun-04 117522 0 156,768 1,181,794 Jul-04 3936. 0 152,832 1,185,730 Aug-04 0. 0 152,832 1,185,730 Sep-04 83061. 0 69,771 1,268,791 Oct-04 20297. 37277 86,751 1,251,811 Nov-04 99404. 46394 114424. 0 (80,683) 1,419,245 Deo-04 1372. 5222 1523. 3687 (74,669) 1,413,231 Jan-OS 35347. 66988 771. 60345 16,546 1,322,016 Feb-OS 31778. 82231 3217. 114252 178,034 1,160,528 Mar-OS 43588 55099. 1211 78836. 267,170 1,071,392 Apr-OS 28607 35501. 8081 19522. 285,505 1,053,057 May-05 32140 88209. 18126 101966. 425,414 913,148 Jun-05 116349 2892 60975 2436 253,418 1,085,144 Jul-OS 79421 4803 96626 740 82,914 1,255,648 Aug-05 56470 60228 61086 25369 50,955 1,287,607 Sep-05 75912 16301 8356 11394 (5,618) 1,344,180 Oct-OS 44207 68184 13635 94247 98,971 1,239,591 Nov-05 68267 45043 65065 62387 73,069 1,265,493 Dec-OS 68931 29178 97297 20153 (43,828) 1,382,390 Jan-O6 24400 154713 21678 176620 241,427 1,097,135 Felr06 123934 83744 191098 99388 109,527 1,229,035 Mar-O6 54898 145807 35421 147941 312,956 1,025,606 Apr-06 131597 34604 85982 19989 149,970 1,188,592 May-O6 106658 4759 110253 26840 (35,342) 1,373,904 Jun-06 50~a? 675 14923 482 (99,150) 1,437,712 Jul-06 79094 0 37228 17,172 1,321,390 August 22, 2006 43 ~~'~. 130 4512 0 (30,277) 1,368,839 July and August are forecast from daily metered figures July and August are forecast from daily metered figures 9/15/2006 12:28 AM O:\Gas CFT\Openmind\SwansonlSwanson RiverUnit\KGSF#1\Surveys\Pressures\AOGCC Annual Mat BalRpt\2006\KGSF #1 #7a prod inj updated 060823.x1s 64-5 sd GS totals for AOGCC ATTACHMENT #2 -- KGSF #1 POZ DATA (Tyonek 64-5 Sand) para. SG 0.56 Datum, fr 6395 Tem ,F 122 Temp,°R 582 Z Guess 0.88 Tbg.ID,inches 1.992 PR TT~Td R V PR nTIT T('.TTnN Date T e Test Gau e De th, ft Cum, bcf Tb P, # Res. P, # Z P/Z Comments 12/5/1998 SITP 0 0 2850 3306 0.8812 3751 SITP 7/27/1999 SITP 6395 0.561 1775 2059 0.8664 2376 SITP 9/9/2000 BHP buildu 6395 1.069 882 1100 0.9082 1211 PBU w/ Gau es FL - 6195' 2/20/2001 SITP 0 1.27 540 626 0.9432 664 SITP 6/9/2001 SITP 0 1.33856 380 441 0.9535 462 SITP ~nnT rr.Trr~rTrnT.T rvrr r~ 7/11/2001 SITP 0 1.148 875 1015 0.9140 1110 21 hr SITP afrer 618 hr in'ection 9/18/2001 SITP 0 0.673 1820 2111 0.8655 2439 4 hr SITP prior to flow due to SHP ESD 9/20/2001 SITP 0 0.678 1810 2099 0.8656 2425 24 hr SITP afrer 1 da of flow on 9/19 at 5.5 mmcfd 10/9/2001 SITP 0 0.572 1980 2297 0.8634 2660 8 day SITP during C12 restaging I I ~nm TT.rTFrTTnrT rvrT.r 4/5/2002 SITP 0 0.400 2280 2645 0.8644 3059 15 hour SITP 7/12/2002 SITP 0 0.190 2620 3039 0.8723 3484 SITP 7/26/2002 SITP 0 0.200 2630 3050 0.8726 3496 SITP 2002 PRODUCTION CYCLE 12/5/2002 SITP 0 0.740 1415 1641 0.8789 1867 SITP 65 hr SI 7/25/2003 SITP 1.252 224 260 0.9757 266 SITP from surf PBU 2003 INJECTION CYCLE SI duration = 19 hrs. At shut in = 2 hrs; 2440 psTg SITP; 12/29/2003 SITP 0.254 2440 2829 0.8672 3263 Ignores FL 2004 PRODUCTION CYCLE 4/28/2004 SITP 0.445 2075 2406 0.8631 2788 SITP - 24 hr 2004 INJECTION CYCLE 7/14/2004 SITP 0.153 2565 2974 0.8705 3417 SITP-12 da 12/5/2004 SITP -0.082 2865 3322 0.8818 3768 SITP-4day 2005 PRODUCTION CYCLE 6/8/2005 SITP ~ ~ 0.396 ~ 2080 ~ 2412 ~ 0.8631 ~ 2795 ~ SITP - 6 hr 2005 INJECTION CYCLE 8/8/2005 SITP 0.022 2828 3279 0.8802 3726 SITP - 1 hr 12/30/2005 -0.044 2786 3231 0.8784 3678 SITP - 3 days 2006 PRODUCTION CYCLE 3/22/2006 SITP ~ 0.396 ~ 1905 ~ 2209 ~ 0.8641 ~ 2556 ~ SITP - < 1 day (KGSF#7a) 2006 INJECTION CYCLE 7/10/2006 SITP -0.099 2815 3264 0.8796 3711 SITP - 10 days 8/14/2006 SITP -0.020 2687 3116 0.8746 3563 SITP -19 days (KGSF#7a) C' 9/15/20061:52 AMO:\Gas CFT\Openmind\Swanson\Swanson RiverUnit\43-28\Surveys\Pressure\KGSF#l~oz 060814.x1sPOZ Data unadj (081406) ATTACHMENT #3 -- KGSF #1 FACILITY P/Z vs Cumulative Production Plot (Tyonek 64-5 Sand) Primary ^'O1 Inj cycle ,x.'02 Inj cycle O'02 Prod cycle •'03 Inj Cycle 04Prod Cycle • 04 Inj Cycle OS Prod Cycle ^ OS Inj Cycle + 06 Prod Cycle - 06 Inj Cycle 4000 3500 3000 2500 .~ N 2000 O a 1500 1000 500 0 ~.. ~~ I ~ -0.1 0.4 0.9 1.4 1.9 Cum Gas Produced, bcf 9/15/2006 1:51 AM O:\Gas CFT\Openmind\Swanson\Swanson RiverUnit\43-28\Surveys\Pressure\KGSF#1_poz 060814.x1s Storage POZ plot (081406 unadj) ,• Unocal Alaska Resourc~ Unocal Corporation 909 West 9th Avenue, P.O. Box 196247 Anchorage, Alaska 99519-6247 Telephone (907) 276-7600 ~~~ UNOCAL 76 ~~~ r ~0G5 l~~k~ ~1 ~~ ~rrl~ ~l~~r~~lssi:a>t August 15, 2005 ~ ~.~,~~~ Mr. John Norman Mr. Dan Seamount Alaska Oil and Gas Conservation Commission 333 W. 7th Avenue, Suite 100 Anchorage, AK 99501-3539 RE: ANNUAL MATERIAL BALANCE CALCULATIONS OF PRODUCTION AND INJECTION VOLUMES FOR KGSF#1 FACILITY, SWANSON RIVER FIELD Dear Commissioners: Attached for your review is the annual material balance calculation of production and injection volumes for KGSF#1, as required per Storage Injection order #2A. This material balance covers the primary production period, as well as the June 15, 2001 through August 8, 2005 storage operation period. Attachment #1 is a table of gas production and injection volumes for the KGSF#1 (formerly SRU 43-28) and KGSF#7a wells beginning with the commencement of primary production and ending with the data for August 8, 2005. Note that the July and August data are estimated from daily metered values. Reservoir pressure estimates were obtained through surface shut in tubing pressure readings which were converted to bottomhole pressures. In addition a surface pressure transient test was conducted in July 2003 and downhole gauges were run to mid-perforation to confirm the surface recorded pressure. These data points are tabulated in attachment #2 and plotted vs. cum production on the standard POZ plot in attachment # 3. Note in attachment # 3 that for the most part the injection cycle pressures deviate above the straight line path established with the primary depletion points and the production volumes deviate below the path, as expected. The plot demonstrates continued reservoir confinement of the gas storage volumes. Please contact Phil Ayer at 263-7620 if you have any questions. Sincerely, Philip M. Ayer Petroleum Engineer Attachments ATTACHMENT #1 -KGSF FACILITY PRODUCTION AND INJECTION VOLUMES 43-28/KGSF#1 KGSF #7a Tvonek 54-5 Sand Totals (Prod-Inj) Total Gas Monthly Monthly Monthly Monthly Cum for POZ Gas Gas Gas Gas Gas plotting Inventory Date Inj Prod Inj Prod MCF Mcf MCF Mcf MCF MCF .................... ........................ 1,338,562 Dec-98 0 55137 55,137 1,283,425 Jan-99 0 79404 134,541 1,204,021 Feb-99 0 64367 198,908 1,139,654 Mar-99 0 73920 272,828 1,065,734 Apr-99 0 62180 335,008 1,003,554 May-99 0 76912 411,920 926,642 Jun-99 0 76903 488,823 849,739 Jul-99 0 72268 561,091 777,471 Aug-99 0 60311 621,402 717,160 Sep-99 0 48667 670,069 668,493 Oct-99 0 42056 712,125 626,437 Nov-99 0 39385 751,510 587,052 Dec-99 0 33783 785,293 553,269 Jan-00 0 39890 825,163 513,379 Feb-00 0 20895 846,078 492,484 Mar-00 0 38219 884,297 454,265 Apr-00 0 35729 920,026 418,536 May-00 0 22502 942,528 396,034 Jun-00 0 8627 951,155 387,407 Jul-00 0 30397 981,552 357,010 Aug-00 0 56660 1,038,212 300,350 Sep-00 0 30505 1,068,717 269,845 Oct-00 0 29330 1,098,047 240,515 Nov-00 0 48633 1,146,680 191,882 Dec-00 0 29741 1,176,421 162,141 Jan-01 0 46236 1,222,657 115,905 Feb-01 0 47777 1,270,434 68,128 Mar-01 0 37213 1,307,647 30,915 Apr-01 0 24719 1,332,366 6,196 May-01 0 6196 1,336,562 - Jun-01 106800 0 1,231,762 106,800 Jul-01 219660 0 1,012,102 326,460 Aug-01 226151 0 785,951 552,611 Sep-01 197762 1331 589,520 749,042 Oct-01 44964 60382 604,938 733,624 Nov-01 73130 142418 674,226 664,336 Dec-O1 28281 159046 804,991 533,571 Jan-02 134429 47741 718,303 620,259 Feb-02 102768 65400 680,935 657,627 Mar-02 250716 4507 434,726 903,836 Apr-02 107164 51031 378,593 959,969 May-02 89218 16147 305,522 1,033,040 Jun-02 106081 3868 203,309 1,135,253 Jul-02 66737 18479 155,051 1,183,511 Aug-02 19263 140660 276,448 1,062,114 Sep-02 73737 60587 263,298 1,075,264 Oct-02 0 272859 536,157 802,405 Nov-02 0 193970 730,127 608,435 Dec-02 701 149810 879,236 459,326 Jan-03 0 125601 1,004,837 333,725 Feb-03 0 77767 1,082,604 255,958 Mar-03 0 58978 1,141,582 196,980 Apr-03 0 40867 1,182,449 156,113 May-03 0 31252 1,213,701 124,861 Jun-03 0 23977 1,237,678 100,884 Jul-03 0 17937 1,255,615 82,947 Aug-03 0 9611 1,265,226 73,336 Sep-03 173513 0 1,091,713 246,849 Oct-03 298780 0 792,933 545,629 Nov-03 287672 0 505,261 833,301 Dec-03 240861 1456 265,856 1,072,706 Jan-04 27906 56710 294,660 1,043,902 Feb-04 42508 56096 308,248 1,030,314 Mar-04 18083 153053 443,218 895,344 Apr-04 46661 49678 446,235 892,327 May-04 173756 1811 274,290 1,064,272 Jun-04 117522 0 156,768 1,181,794 Jul-04 3936. 0 152,832 1,185,730 Aug-04 0. 0 152,832 1,185,730 Sep-04 83061. 0 69,771 1,268,791 Oct-04 20297. 37277 86,751 1,251,811 Nov-04 99404. 46394 114424. 0 (80,683) 1,419,245 Dec-04 1372. 5222 1523. 3687 (74,669) 1,413,231 Jan-05 35347. 66988 771. 60345 16,546 1,322,016 Feb-O5 31778. 82231 3217. 114252 178,034 1,160,528 Mar-05 43588 55099. 1211 78836. 267,170 1,071,392 Apr-O5 28607 35501. 8081 19522. 285,505 1,053,057 May-05 32140 88209. 18126 101966. 425,414 913,148 Jun-OS 116349 2892. 60975 2436. 253,418 1,085,144 Jul-05 79,400 4803 96600. 740 82,961 1,255,601 August 8, 2005 27,764 234 34094 291 21,628 1,316,934 July and August are forecast from daily metered figures July and August are forecast from daily metered figures • 8/15/2005 3:59 PM O:\Gas CFT\Openmind\Swanson\Swanson River Field\KGSF#1\Surveys\PressuresWOGCC Annual Mat Bal Rpt\2005\KGSF #1 #7a prod inj updated 050808.x1s 64-5 sd GS totals (2) ATTACHMENT #2 -- KGSF #1 POZ DATA (Tyonek 64-5 Sand) Data SG 0.56 Datum, fl 6395 Tem , F 122 Temp, °R 582 Z Guess 0.88 Tbg. ID, inches 1.992 PRIMARY PRODUCTION Date Ty e Test Gau e De th, ft Cum, bcf Tb P, # Res. P, # Z P/Z Comments 12/5/1998 SITP 0 0 2850 3306 0.8812 3751 SITP 7/27/1999 SITP 6395 0.561 1775 2059 0.8664 2376 SITP 9/9/2000 BHP buildu 6395 1.069 882 1100 0.9082 121 I PBU w/ Gau es FL _ 6195' 2/20/2001 SITP 0 1.27 540 626 0.9432 664 SITP 6/9/2001 SITP 0 1.33856 380 441 0.9535 462 SITP 2001 INJECTION CYCLE 7/11/2001 SITP 0 1.148 875 1015 0.9140 1110 21 hr SITP after 618 hr in'ection 9/18/2001 SITP 0 0.673 1820 2111 0.8655 2439 4 hr SITP rior to flow due to SHP ESD 9/20/2001 SITP 0 0.678 1810 2099 0.8656 2425 24 hr SITP after 1 da of flow on 9/19 at 5.5 mmcfd 10/9/2001 SITP 0 0.572 1980 2297 0.8634 2660 8 day SITP during C12 restaging 2002 INJECTION CYCLE 4/5/2002 SITP 0 0.400 2280 2645 0.8644 3059 15 hour SITP 7/12/2002 SITP 0 0.190 2620 3039 0.8723 3484 SITP 7/26/2002 SITP 0 0.200 2630 3050 0.8726 3496 SITP 2002 PRODUCTION CYCLE 12/5/2002 SITP 0 0.740 1415 1641 0.8789 1867 SITP 65 hr SI 7/25/2003 SITP 1.252 224 260 0.9757 266 SITP from surf PBU 2003 INJECTION CYCLE SI duration = 19 hrs. At shut in = 2 hrs; 2440 psig SITP; 12/29/2003 SITP 0.254 2440 2829 0.8672 3263 Ignores FL 2004 PRODUCTION CYCLE 4/28/2004 SITP 0.445 2075 2406 0.8631 2788 SITP - 24 hr 2004 INJECTION CYCLE 7/14/2004 SITP 0.153 2565 2974 0.8705 3417 SITP - 12 day 12/5/2004 SITP -0.082 2865 3322 0.8818 3768 SITP- 4day 2005 PRODUCTION CYCLE 6/8/2005 SITP 0.396 2065 2395 0.8631 2775 SITP - 6 hr 2005 INJECTION CYCLE 8/8/2005 SITP 0.022 2828 3279 0.8802 3726 SITP - 1 hr • • 8/16/20054:05 PMO:\Gas CFT\Openmind\Swanson\Swanson River Field\43-28\Surveys\Pressure\KGSF#l~oz 050808.x1sPOZ Data unadj (080805) ATTACHMENT #3 -- KGSF #1 FACILITY P/Z vs Cumulative Production Plot (Tyonek 64-5 Sand) • Primary ^'O1 Inj cycle •'02 Inj cycle O'02 Prod cycle •'03 Inj Cycle ~ 04Prod Cycle • 04 Inj Cycle O OS Prod Cycle OS Inj Cycle 4000 3500 3000 2500 a 2000 0 a 1500 1000 500 0 ----------------- -- ------------------------------------- --- - - ---------------------------------------------------------------------------------------------------------------------------------------------------------------- ~ ^ ~~ ^ -- -- I ` ~ -`~ ~ -0.1 0.4 0.9 1.4 Cum Gas Produced, bcf 1.9 i 8/16/2005 4:40 PM O:\Gas CFT\Openmind\Swanson\Swanson River Field\43-28\Surveys\Pressure\KGSF#l~oz 050808.x1s Storage POZ plot (080805 unadj) ~5 RE: Commencement of Inject~erations -Swanson River Field Tyonek 77-3 Sand St... Page 1 of 1 .~ Maunder, Thomas E {DOA) From: Regg, James B (DOA) Sent: Wednesday, August 15, 2007 10:56 AM To: pmayer@chevron.com Cc: Roby, David S (DOA), Maunder, Thomas E (DOA) Subject: FW: Annum Mat Bal Calc - SIO 2A, Rule 4 requires an annual material balance calculation within 60 days of the anniversary date of the Order. SIO 2A was signed June 25, 2004 which makes the material balance calculation due August 23. An extension until September 15 is granted for the 2007 report. Jim Regg AOGCC 333 W.7th Avenue, Suite 100 Anchorage, AK 99501 phone: 907-793-1236 fax: 907-276-7542 From: Maunder, Thomas E (DOA) Sent: Wednesday, August 15, 2007 9:57 AM To: Regg, James B (DOA) Subject: FW: Annual Mat Bal Cale -KGSF#1 Facility (Injection Order #2a) This is probably best for you. From: Ayer, Phil M [mailto:pmayer@chevron.com] Sent: Wednesday, August 15, 2007 9:02 AM To: Maunder, Thomas E (DOA) Subject: Annual Mat Bal Cale -KGSF#1 Facility (Injection Order #2a) Tom, As per our discussion today, a one month extension (to 9!15/07) is requested in submitting the annual material balance calculation as required per Storage injection order #2a. Due to the current level of work activity I need additional time to finalize. Phil Phil Ayer MidContinent/Alaska Business Unit Chevron North American Exploration and Production Company 909 West 9th Avenue, Anchorage, AK 99501 907-263-7620 (work) 907-250-2711 (cel{) 907-263-7847 (fax) 8/15/2007 :J1::4 . . 1 r~~ ¡~ l :1 .L::;:¡ FRANK H. MURKOWSKI, GOVERNOR AI,ASIiA. OILAlVD GAS CONSERVATION COltDllSSION 333 W. 7'" 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 Integritv 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 Inte2fitv 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. · e 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. Affected Rules Injection Order "Demonstration of "Well Integrity "Administrative Mechanical Failure and Action" Integrity" Confinement" Area In.iection Orders AIO 1 - Duck Island Unit 6 7 9 AIO 2B - Kuparuk River Unit; Kuparuk River, 6 7 9 Tabasco, Ugnu, West Sak Fields AIO 3 - Prudhoe Bay Unit; 6 7 9 Western Operating Area AIO 4C - Prudhoe Bay Unit; 6 7 9 Eastern Operating Area AIO 5 - Trading Bay Unit; 6 6 9 McArthur River Field AIO 6 - Granite Point Field; 6 7 9 Northern Portion AIO 7 - Middle Ground 6 7 9 Shoal; Northern Portion AIO 8 - Middle Ground 6 7 9 Shoal; Southern Portion AIO 9 - Middle Ground 6 7 9 Shoal; Central Portion AIO 1 DB - Milne Point Unit; Schrader Bluff, Sag River, 4 5 8 Kuparuk River Pools AIO 11 - Granite Point 5 6 8 Field; Southern Portion AIO 12 - Trading Bay Field; 5 6 8 Southern Portion AIO 13A - Swanson River 6 7 9 Unit AIO 14A - Prudhoe Bay 4 5 8 Unit; Niakuk Oil Pool AIO 15 - West McArthur 5 6 9 . . Affected Rules "Demonstration of "Well Integrity "Administrative Injection Order Mechanical Failure and Action" Integrity" Confinement" River Unit AIO 16 - Kuparuk River 6 7 10 Unit; Tarn 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 Unit; 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 In.iection 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 WD-I 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; WMRU D-l DIO 8 - Beaver Creek Unit; 2 3 5 BC-3 DIO 9 - Kenai Unit; KU 11- 2 3 4 17 DIO 10- Granite Point 2 3 5 Field; GP 44-11 . . Affected Rules "Demonstration of "Well Integrity "Administrative Injection Order Mechanical Failure and Action" Integrity" Confinement" DIO 11 - Kenai Unit; KU 2 3 4 24-7 DIO 12 - Badami Unit; WD- 2 3 5 1, WD-2 DIO 13 - North Trading Bay 2 3 6 Unit; S-4 DIO 14 - Houston Gas 2 3 5 Field; Well #3 DIO 15 - North Trading Bay 2 3 Rule not numbered Unit; S-5 DIO 16 - West McArthur 2 3 5 River Unit; WMRU 4D DIO 17 - North Cook Inlet 2 3 6 Unit; NCill A-12 DIO 19 - Granite Point 6 Field; W. Granite Point State 3 4 17587 #3 DIO 20 - Pioneer Unit; Well 3 4 6 1702-15DA WDW DIO 21 - Flaxman Island; 3 4 7 Alaska State A - 2 DIO 22 - Redoubt Unit; RU 3 No rule 6 Dl DIO 23 - Ivan River Unit; No rule No rule 6 IRU 14-31 DIO 24 - Nicolai Creek Order expired Unit; NCU #5 DIO 25 - Sterling Unit; SU 3 4 7 43-9 DIO 26 - Kustatan Field; 3 4 7 KFl Storage Injection Orders SIO 1 - Prudhoe Bay Unit, No rule No rule No rule Point McIntyre Field #6 SIO 2A- Swanson River 2 No rule 6 Unit; KGSF #1 SIO 3 - Swanson River Unit; 2 No rule 7 KGSF #2 Enhanced Recovery In.iection Orders EIO 1 - Prudhoe Bay Unit; No rule 8 Prudhoe Bay Field, Schrader No rule Bluff Formation Well V-105 . . Affected Rules Injection Order "Demonstration of "Well Integrity "Administrative Mechanical Failure and Action" Integrity" Confinement" EIO 2 - Redoubt Unit; RU-6 5 8 9 · . 'I I 02-902 (Rev. 3/94) Publisher/Original Copies: Department Fiscal, Department, Receiving AOFRM STATE OF ALASKA ADVERTISING ORDER 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 AGENCY CONTACT DATE OF A.O. AOGCC 333 West ih Avenue, Suite 100 o Anchorage,AJ( 99501 M 907-793-1221 R PHONE PC T o Journal of Commerce 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 lof2 9/29/2004 I: 10 PM Public Notices 20f2 . . 9/29/2004 I: 10 PM Public Notice . e Subject: Public Notice From: Jody Colombie <jody _ colombie@admin.state.ak.us> Date: Wed, 29 Sep 2004 12:55:26 -0800 Please publish the attached Notice on October 3, 2004. Thank you. Jody Colombie Content-Type: applicationlmsword Mechanical Integrity of Wells Notice.doc Content-Encoding: base64 Content-Type: applicationlmsword Ad Order form.doc Content-Encoding: base64 I of I 9/29/2004 I: 10 PM Citgo Petroleum Corporation PO Box 3758 Tulsa, OK 74136 Kelly Valadez Tesoro Refining and Marketing Co. Supply & Distribution 300 Concord Plaza Drive San Antonio. TX 78216 Jerry Hodgden Hodgden Oil Company 408 18th Street Golden, CO 80401-2433 Kay Munger Munger Oil Information Service, Inc PO Box 45738 Los Angeles, CA 90045-0738 Mark Wedman Halliburton 6900 Arctic Blvd. Anchorage. AK 99502 Baker Oil Tools 4730 Business Park Blvd., #44 Anchorage. AK 99503 Gordon Severson 3201 Westmar Cr. Anchorage, AK 99508-4336 James Gibbs PO Box 1597 Soldotna, AK 99669 Richard Wagner PO Box 60868 Fairbanks, AK 99706 Williams Thomas Arctic Slope Regional Corporation Land Department PO Box 129 Barrow, AK 99723 . . Mary Jones XTO Energy, Inc. Cartography 810 Houston Street, Ste 2000 Ft. Worth, TX 76102-6298 Robert Gravely 7681 South Kit Carson Drive Littleton, CO 80122 Richard Neahring NRG Associates President PO Box 1655 Colorado Springs, CO 80901 Samuel Van Vactor Economic Insight Inc. 3004 SW First Ave. Portland, OR 97201 Schlumberger Drilling and Measurements 2525 Gambell Street #400 Anchorage. AK 99503 Ciri Land Department PO Box 93330 Anchorage, AK 99503 Jack Hakkila PO Box 190083 Anchorage, AK 99519 Kenai National Wildlife Refuge Refuge Manager PO Box 2139 Soldotna, AK 99669-2139 Cliff Burglin PO Box 70131 Fairbanks, AK 99707 North Slope Borough PO Box 69 Barrow, AK 99723 /i}t:Zlkd It'/;k" 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 . ,,[Fwd: Re: Consistent Wording for Injection ers - Well Integrity ... . ~ubject:. [Fwd: Re: ·CQnsistetltWorciìrlg'fdrIr1j~ctìQI10rdët!; -..WéU Ir1tégrity(R~vis~ci)] F~om: John Norman<john=norman@acimin.state.ak.us?" Date: Fri, 01 Oct 200411:09:26-0800 more -------- Original Message -------- Subject:Re: Consistent Wording for Injection Orders - Well Integrity (Revised) Date:Wed, 25 Aug 200416:49:40 -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(a}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 othelWise, 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 <¡im 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 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 <j ¡m 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 10f2 10/2/2004 4:07 PM [Fwd: Re: Consistent Wording for Injectioeers - Well 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 sluny 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 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 DrOs 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", "USDW s"; "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 20f2 10/2/20044:07 PM . . [Fwd: Re: Consistent Wording for Injection .s - Well Integrity,.. . Sflbject: [Fwd: Re: Consistent Wording for IIljection Orciers "'. WèllIIItegrity (R,evised)] F~ODl: John Nonnan <john_r1orrnan@admiIl.sta.te.ak.us> I>ate: Fri, 01 Oct 2004 11:08:55 ~0800 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 200415:46:31 -0800 F~om:Rob Mintz <robert mintz(ã¿law.state.ak.us> To:dan seamount(ã¿admin.state.ak.us, ¡im regg(ã¿admin.state.ak.us, john nonnan(ã¿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 <¡im regg@admin.state.ak.us> 811712004 4:33:52 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 - 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 regulations) 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 lof2 10/2/2004 4:07 PM [Fwd: Re: Consistent Wording for Injectioeers - 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. Nonnan <John Norman@jadmin.state.us> Commissioner Alaska Oil & Gas Conservation Commission Content-Type: applicationlmsword Injection Order language - questions.doc Content-Encoding: base64 Orders language Content-Type: applicationlmsword Content-Encoding: base64 20f2 10/2/20044:07 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 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. . . . 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 vears in the case of a slurry iniection well), and before returning a well to service following aftef a workoyer affecting mechanical integrity, and at leœ;t once e\'cry '1 year~; while acti'/cly injecting. For slurry injection "yells, the tubing/casing annulus must be tested for mechanical integrity every 2 years. Unless an alternate means is approved by the Commission. mechanical integrity must be demonstrated by a tubinf! pressure test using a +fle MI+-surface pressure of must be 1500 psi or 0.25 psi/ft multiplied by the vertical depth, whichever is greater, that fB-t:tSt-showâ stabilizing pressure that doesand may not change more than 10-%- percent during a 30 minute period. -Any alternate means of demonstrating mechanical integrity mUGt 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 Except as othenvise provided in this rule, +!he tubing, casing and packer of an injection well must demonstrate maintain integrity during operation. 'Wheneyer any pressure communication, leakage or lack of iniection zone isolation is indicated by iniection rate. operating pressure observation, test, survey, log, or other evidence, t+he operator ffiHSt-shall immediately notify the Commission and submit a plan of corrective action on a Form 10-403 for Commission approval~ whenever an v pressure communication. leakage or lack of injection zone isolation is indicated bv ~ , " ~ .... injection rate. operating pressure observation, test, survey, or log. The operator shall shut in the well if so directed by the Commission. The operator shall shut in the weU without awaiting a response from the Commission if continued operation would be unsafe or would threaten contamination of freshwaterIf there is no threat to freshv;ater, injection may continue until the Commission requires the '.';ell to be shut in or secured. Until corrective action is successfully comp1eted. ^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 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 Lane for Injectors]] . ~tlbJect: [Fwd: Re: [Fwd: AOGCCProposed WI Language for Injectors]] F'r())j[:Winton Aubert <winton:..ßubert@admin.state.ak.us> Date: T u, 28 Oct 200409:48:53 -0800 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.¡ 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: "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* ** 10f3 10/28/200411:09 AM [Fwd: Re: [Fwd: AOGCC Proposed WI Laee for Injectors)] . , returnj_ng 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 helpjwordsmithing: "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 A; 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 10/28/200411:09 AM .~ ::t:t:: w ~ Unocal Alaska " Union Oil Company of Cal. .JJia 909 West 9th Avenue, P.O. Box 196247 Anchorage, Alaska 99519-6247 Telephone (907) 276-7600 UNOCAL8 Samuel Atta-Darkwah, P.E. Reservoir Engineer Aug ust 11, 2004 ~ECEIV~ SEP i27 2004 .a Oil & Gas Cons. Corh. AJ1Chorage Commissioner John Norman Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, Alaska 99501 STORAGE INJECTION ORDER #2A AMEND TO ADD SECOND WELL (KGSF #7A) KENAI GAS STORAGE FACILITY #1 SWANSON RIVER FIELD Dear Commissioner Norman: The attached information adds to Unocal's 08/11/04 request to the Commission to utilize Rule #6 (Administrative Approval) to amend the current Injection Order #2A to allow a second well in the Tyonek 64-5 sand. This request was submitted while KGSF #7 (concurrently with KGSK #7 A) was being drilled and is included here as ATTACHMENT 1. In late August of 2004, we received a call from the commission's engineer, Bob Crandall that he would prefer to process the Injection Order after the well was completed, not before. To aid in this review, please find a summarized description below of our intended operation of KGSF #7 A which supplements the existing supportive information and findings in Injection orders #2 and 2A. Description of Operation Unocal proposes using a second well, KGSF #7 A, to conduct gas storage operation in the Tyonek 64-5 reservoir. KGSF #1, the existing, and currently the only gas storage well in the Swanson River Field, also uses the Tyonek 64-5 reservoir for gas storage operations. The gas will be injected during the summer months and produced back in the winter months for sales. Commissioner John Normal) September 23, 2004 Page 2 ) Well Logs All open hole logs from wells in the Swanson River Unit are sent to the Commission as the logs are completed. Openhole logs from KGSF #7 A well have already been sent to the commission. Copies of Platform Express Log, PEX, (08/30/04) and Cement Bond Log, CBL (09/01/04) across the section of interest are included as ATTACHMENT 2. Mechanicallnteqritv The KGSF #7 A well was tested for mechanical integrity using the standard 30 minute annulus test as per 20 AAC 25.412. To confirm continued mechanical integrity, Unocal will monitor daily the injection rates and pressures and notify commission the next working day if the rates and pressures indicate pressure communication or leakage in any casing, tubing, or packer. The rate and pressure data will also be reported to the Commission on a monthly basis. Casing Information ATTACHMENT 3 is the final wellbore schematic for the KGSF #7A. The casing was cemented in accordance with 20 ACC 25.252(b) and tested in accordance with 20 AAC 25.030(g). ATTACHMENT 4 is the set of drilling morning reports while drilling KGSF #7 A. Iniection Fluid The type of fluid for proposed injection is gas. The fluid composition for the proposed injection is dry natural gas with a specific gravity of 0.57. Gas from the Swanson River Field will be injected and stored in KGSF #7 A during summer months and redelivered during winter months. The estimated maximum amount of gas to be injected daily is 30 mmcfd. Since this zone previously contained dry methane gas and was produced without any signs of formation damage, the injection gas should be fully compatible with the Tyonek 64-5 formation. Iniection Pressure Compression will be used for gas injection and production operations. Wellhead injection pressures will be maintained such that a gradient of 0.65 psi/ft at the target midperf reservoir depth of an estimated 6,383' TVD is not exceeded. This reservoir gradient limitation corresponds to the wellhead injection pressure of 3571 psig at 0 mmcfd injection rate. Any injection rate at or below 3,582 psig wellhead injection pressure will result in a downhole pressure gradient below 0.65 psi/ft. Maintaining a wellhead injection pressure such that a 0.65 psi/ft gradient at the target mid perf reservoir depth is not exceeded is consistent with finding # 4 in Injection Order# 2a. Wells Within Area As shown in ATTACHMENT 5, only the existing KGSF #1 gas storage well has penetrated the injection zone within a one-quarter mile radius of the proposed injection well, KGSF #7 A. ') Commissioner John Norma, ) September 23, 2004 Page 3 If you have any questions regarding this transmittal, please contact Mr. Samuel Atta-Darkwah at 263- 7864, Mr. Phil Ayer at 263-7620 or Mr. Kevin Tabler at 263-7600. We look forward to your response. SA:dma Attachments Attachment 1: Attachment 2: Attachment 3: Attachment 4: Attachment 5: Sin..cereIY' - Q I~~ Saml el Atta-Darkwah, P.E. 08/11/04 Letter to AOGCC to add 2nd well in 10 #2A CBL and PEX across Tyonek 62-5 in KGSF #7 A Final Schematic for KGSF #7 A Drilling Morning Reports for KGSF #7 A Plat showing wells within % mile of KGSF #7 A 'Ii: . .. ) Unocal Alaska Un/on 0/1 Company of Car 'a 909 West 9th Avenue, P.O. _Ix 196247 Anchorage, Alaska 99519-6247 Telephone (907) 276-7600 ! 1Ív<-~ - 4dIì!/Æ. (/ I ( {;"c:, l;.1:1': ~ e!I/!Ot( v UNOCAL8 Samuel Atta-Darkwah, P .E. Reservoir Engineer August 11, 2004 Commissioner John Norman Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, Alaska 99501 . STORAGE INJECTION ORDER #2A AMEND TO ADD SECOND WELL (KGSF #1) KENAI GAS STORAGE FACILITY #1 SWANSON RIVER FIELD Dear Commissioner Norman: Storage Injection Order #2 (Attachment 1), dated June 15, 2001 and Injection Order #2A (Attachment 2), dated June 25, 2004, provide for the subsurface storage of gas in the Tyonek 64-5 sand reservoir within the Swanson River Field. Currently, Unocal is utilizing SRU 43-28 (KGSF #1) for gas storage and will continue to utilize this well, but would like to access a second delivery point in same sand. This second well is identified as KGSF Well #7. A Spacing Exemption (Attachment 3) for this well was approved on 7120/04 by the AOGCC to allow the drilling and gas storage operation (production and injection). A Plat (Attachment 4) depicting the twin storage wells is also endosed for yQur review. Unocal plans to commence production and injedion of gas into KGSF #7 in late summer 2004. Unocal requests the Commission to utilize Rule #6 (Administrative Approval) to amend the current Injection Order #2A to allow a second well in the Tyonek 64-5 sand reservoir and is incorporating by reference the supportive infonnation and findings in existing Injection Orders #2 and #2A No other modification to the existing Injection Order #2A is required since the proposed second well targets the same injection zone as the first A .summary of our plans follows and, as previously mentioned, supplements the existing supportive information and findings in Injection orders #2 and #2A Description of Operation Unocal proposes using a second well, KGSF #7, to conduct gas storage operation in the Tyonek 64-5 reservoir. The existing, and currently the only gas storage well in the Swanson River Field, KGSF #1, also uses the Tyonek 64-5 reservoir for gas storage operations. The gas will be injected during the summer months and produced back in the winter months for sales. ATTACHMENT 1 , " Commissioner John Norma,) August 11, 2004' Page 2 ) Well Logs All openhole logs from wells in the Swanson River Unit are sent to the Commission as the logs are completed. 0 pen hole logs from KGSF#7 well will be sent to the Commission as they become available. Mechanical Integrity The KGSF #7 well will be tested for mechanical integrity using the standard 30 minute annulus test as per 20 AAC 25.412. To confirm continued mechanical integrity, Unocal will monitor daily the injection rates and pressures and notify the AOGCC the next working day if the rates and pressures indicate pressure communication or leakage in any casing, tubing, or packer. The rate and pressure data will also be reported to the Commission on a monthly basis. Casing Information A we II bore schematic for the KGSF #7 well will be sent to the Commission after the well is drilled. The casing will be cemented in accordance with 20 ACC 25.252(b) and tested in accordance with 20 AAC 25.030(g) when completed. The KGSF #7 well will be completed with casing strings and cemented in accordance with standard industry practices. Bond log will be run to confirm good cement bond in the proposed gas storage interval. Injection Fluid The type of fluid for proposed injection, is gas. The fluid composition for the proposed injection is dry natural gas with a specific gravity of 0.57. Gas from the Swanson River Field and other fields in the Cook Inlet will be injected and stored in Kenai Gas Storage Facility wells during the summer months and redelivered during the winter months. The estimated maximum amount of gas to be injected daily is 35 mmcfd. Since this zone previously contained dry methane gas and was produced without any signs of formation damage, the injection gas should be fully compatible with the Tyonek 64-5 formation. In¡ection Pressure Compression will be used for gas injection and production operatio'ns. Wellhead injection pressures will be maintained. such that a gradient of 0.65 psVft at the target midperf reservoir depth of an estimated 6,369' TVD is not exceeded. This reservoir gradient limitation corresponds to the wellhead injection pressure of 3571 psig at 0 mmcfd injection rate. Any injection rate at or below 3571 psig wellhead injection pressure will result in a downhole pressure gradient below 0.65 psVft. Maintaining a wellhead injection pressure such that a 0.65 psi/ft gradient at the target midperf reservoir depth is not exceeded is consistent with finding #4 In Injection Order #2A. ,,' I Commissioner John Normal, ) August 11, 2004 Page 3 ) Wells Within Area Only the existing KGSF #1 gas storage well has. penetrated the injection zone within a one- quarter mile radius of the proposed injection well. If you have any questions regarding this transmittal, please contact Mr. Samuel Atta-Darkwah at 263- 7864, Mr. Phil Ayer at 263-7620 or Mr. Kevin Tabler at 263-7600. We look forward to your response. Sincerely, /~~ Samuel Atta-Darkwah, P.E. SA:dma Attachments Attachment 1: AOGCC Approval of Storage Injection Order No.2 Attachment 2: AOGCC Approval of Storage Injection Order No. 2A Attachment 3: Spacing Exception Conservation Order No. 520 for KGSF #7 Attachment 4: Plat Showing Twin Storage Wells c,c.. ~ StM t1-. ~ K\lÙœ'h Phi I A:1er ]).;we Wt:.~(/ye Te.p. )~~ ~l1 K~v'~ T ~(~ý Iv ~K ß~ M e~ I4-tw¡e-r- b~ ~W\ti-S pOvYe .S~(\t\J(,\~ ø . W~(( ç:~ le.s ( À. ~'p~ ) . '" .. " .) ) . , ~ " : STATE QF ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7th Avenue Anohorage, Alaska 99501 ,. , Re: THB APPLICATION OF UNION OIL COMPANY OF CALIFORNIA ("UnocaJ") for an order authorizing the underground storage of hydrocarbons by kûection into the Tyonekreservoir in . existing weD Swanson River Unit #43-28. ) Storage IDjeet10n .Order No.2 ) ) Swanson River Pield ) Swanson River Unit Wen #43.28 ) , ) ) . lune 15, 2001 IT APPEARlNGTBAT: 1. . By application dáted May 2, 2001, Union on Company of Califomia ("Unoca1") requested an Older ftom the Â1flS1é~ on .and Gas ConserVation Commission ("Commiøsion") autboriziDg the !1Ddergfound storage of hydrocatbons by Í1\Î~on into the Tyonek Formation of the SwausoD River UDit (SRU) #43.28 wen, which is located in SeCtion 28, Township 8 North, Ranp 9 West, seward Meridian. Unocal proposes to iqfeot gas .for stoœge during the summer months and produce dte gas for sales during tVmter months. '. . . 2. Notice of opportunity for public hearing ~ pubUshed ~ the ~rage Daily News ADchomae Dai1yNews on May S.'2001.JJ! acconfance with 20 AAC 25.540. 3. Cook Met R~. Inc. ("CIRr),. a royalty owner in the SW8D8OD lUver Pield, . indicated support for the ... storase project in co.uupondmce dated May 9, 2001, but raised. quest!.œs ~ to the 1'0- enð o:"''(MU,tÎt'f oblteafloJ\s of the Opèrator. 1hë'Co"u,,¡-ma infoJmed CJRI that those questioøs were outside the. c.",unissfon's 'rep1atoiy jurisdiction, and in &DY event Unoca1 iDfÓnDed ,the' C9tnmløon that CIRr. concems have been flftttsfied.. " . .. 4. The Ccmm1ission received no other comments. concen1Ïng. the appHcation or requests for a public heariDg. PlNDINGS: ' 1. ' Unoca1 .is the operator of the Swanson River Field There are no other operators within a one-quart« mUe ødius of the existint SRU 143-28 we11, the weD bore to be ùti1ized for the proposed for stomp Jøjection progranL 2. Unoca1 has given notice of its appHcation by certified mail to the surface owners within a one-quarternille radius of the SRU #43.28 wen. .' '. ... :A ~.' "'.ÄC4M~NT1"'~.".'~," .. .. .1 ). Storage lDJection Order No.2 lunelS,2001 Pap 2 . .. ) .~ 3. Unoca1 proposes to conduct dry gas storage Íl\fection within the existing SRU'#43. 28 weU, between the measured depths of6375 and 6443 feet in the 64-5 sand of the Tyonek Fonnation. . 4. There are currently ~o other, welts within one-quarter mile radius of the existing SRU #43.28 vertical well. 51 40 CPR 147.102(b) provides that aquifers below 1700 feet 1Ì"om the surface and within a ~ mUe of the Swanson River Field are' exempted in accordance with 40 . CPR 144.7(b) and 40 CPR 146.4. 6. Impermeable siltstone 107 feet thick, claystone and coal overly and provide upper confinement ftom adjacent Tyonek Fonnatio~ sandstone for the 64-5 sand in the SRU #43-28 welL In addition, over 680 feet of shale confine the pro~8ed storage injection interval fi:om ~e base of the D~n-exerupted aquifers in ,&e S~U #43.28 wen. Lower confinement is provided by over 290 feet of imPemieable slltstone, . claystone and coal. ' 7. Offset weU control indicates the 64-5 ,sand is of limited lateral extent, such that injected ps wiD. be coø.fined. to the pool into ~ch it is iqJected. Pour weDs penetrate the ~ in the proposed gas storage area: SRU i#43-28, SRU #41-28, SRU ##34-28 and SRU #41-33. Of these, ODIy the SRU 143-28 penetmtes. the 64-5 sand in the ps columD, and this wen established the ps-water contact at ipptO.Aim8toly '390 feet measured dØ- 8. . Catcu1Rter1 porosity for the 64-5 ,sand in the SRU 1143-28 wen nmges . fiom l00A to 36%. Average water saturation is estimated as between 51 % and 55%. 9. The SRU #143-28 weD was .R<'-9111pJetecI in December of 1998 to test the 64-5 _ct The we11 Was þCl.fotated ftom 6380 to Sl8 feet m.æ8U!'ed depth and pIOCb't'«J dry ¡as . an ftdtiIt qde of ~.O mmcfd. Cumutative prodrdion 1tQm the 64-5 and in SR.Utl43-28 was 1.31 bcffbroushMaœhof2001. - . . . , 10. Mateda1 batance 8D81ysfs ofhistorica1 prodúction and Jqj. indicate an ;"'¡"..at ps in p1ace of 1.55' bel in the 64-5 - œu-œ.POJ1dial to 85% JeCOVery 88 of 2fl8I01.. 'Ibis m8tftjal bl1tmœ aaalysfs supports the COD.Ctusion tbat the interval proposed for ps storage is isolated fiom other strata. . ~ ti. The SRU #43-28 weD is coøipleted with 1 inch casiDgnm and cemented to 10875 feet measured depth, with a stage con.-located at 7114 feet measured depth. ~ 12. A cement bond log was run on 1u1y 21, 1961, and it indicates the tops for the. first and second stage cement at 9100 and 3675 feet measured depth, respective1y. This log indicates JOOd cement bond across the proposed gas 'storase interval and isolation betWeen the iqjection strata and the rem-.inder of the weD bore. v t/ 13. SRU #43.28 meets the casirig, cementing, and tubing criteria of20 AAC 25.412. - -~ - 4 ... .-- 4.. .. . . . . . . Stomp Jq ectiœ Order )..) 2 luø.elS.2001 . . )" Pap 3 ~ 14. The mechanical integrity of SRU #43.28 was demons1rated i>D May 15, 2001 in . accordance with 20 AAC 25.412. 15. The fluid proposed for injection is predominantly methane produced tom a liquid extracdon plant for produced ,as ftom the Hem1ock'Ponnadon in the Swanson River Field. Specific gravity of the injected gas is expected to range &om about 0.61 to 0.59 (air -1.0). v 16. Bstimated maximum daily qection volume is 10 mmcfd, and expected wellhead injection pressure Ii 2400-2600 psi. Proposed maximwn iJúection pressureS will be maintained Jess than the original wellhead pressure of 2850 psi. . 17. If the maximum jqjection pressure is limited to the original we11head pressure of 2850 psi, 1tactures will not be propagated in the conflninf ..., as the sandface iqjection p-esSUle Will be less dum the original rese¡yoir pressure of 3300 psi for the 64-5 sand in the SR.U #143-28 'well. ." . : ' v" CONCLUSIONS: 1.. The proposed ilVection of natural gas into the SRU #43-28 well for the pwpose of storage wiD Dot ~e movement ofhydrocarbous into sources offteshwater. 2.. The proposed . storage of natural gås in SRU #43-28 will 'Dot cause fJuids ~ move behind casing beyond the app.t\>ved storåge zone. - .. .... --..........,.- 3. The proposed storage of natural ~ in well SRU #43-28 wm not propagate ftactures GIrough the confinÎ1tf zones. . 4. The proposed ÚÚeotion of natural ps Into the SRU #43-28 well' for the pwpose of ItOr8ge will DOt cause waste. jeopardize coneIatiVe rJshts, ~ fi'eshwater, or . impaIruJtltnat~ recovery. t f<'i' "F ~î{ i;"j: (;j :.,';:~}:.e "".i-~: ~'~-.~~: '(-'~~..;~: : .:\.~1;;.,:, -~. ~-~-¡.t (f\'~:~~ rr~:,~~::f:'~.:~.~1J; .'. NOW, t1l&KEPORE, . in addjtion.to .bdeN1de ~ui«ä1eats unda.: -20 AAC 2S apply to the unda¡kound ~ of hydrocatboøs by húection,in the SllU #1433-28 weD. . ~ STOtAQJt IlfJECTJON The Commission approves the iqjectÎon for storage of natural ps into tho' 64-S sand of the Tyonek Pormation, between the measured depths of6375 and 6443 feet in SRU #43- , 28. The ~ shall report disposition ofproduction and injection as œquired by of20 AAC 2S.228, 20.AAC 25.230, and. 20 MC 25.234. . ~ CONTINUED~CAL~ This apploval is conditioned on die operatoñ demonstnlting the co~tiüued mer.bftnica1 integrity of SRU #43-28 in accordance with 20 MC 25.252 (d)¡ (e) aòd (t). , '11 Stonp lIIJection Order 1'1".. l\1De IS. 2001 .. " t.. )i8 Pap 4 ~MVMIN~fJN.PJtESSVAE Tbe maximum wellhead injection pressure shall be limited to 2850 psi. ~~AL~~ALBALANÇE. The operator shall annually provide to the Commission material balance calculations of the ¡IS production and injection volumes to provide assurance of øontinued reservoir confinement of the ,as storage volumes. This information shall be ._~-~.u__.... ......._...4"I88Ia~A~~taw~',~ . ~:'W¡~...~v.,.. t"i'uuug¡~:1 ! ::~)ëÉb,UŠ'~'.';i "'.'.i\¿ .,;¡ .';å:}.:.: ~~.RATlONO'~PROVAL , . . As provided in 20 AAC 25.252(j), if storage óperatioDS are not begun within 24 months after the date of this order, the iqJection approval will expire \U1Iess an íppJication for extension ~ ¥þroved þy the ~m1ssioii. DONE at Anchorage, ~aska and dated June 15,2001. . ~ M~~ . Julie M. Heusser, OxmIinioø.er . . . . AI jJM.aìò""""_20..'....ftIOIIpI""'-.odøeof...--Gt......~..... ..,.fa..,...... .' , ... e"~ 'fir.. ...1~Jttøa"_I--'~ A...,........., -.. 'ec~'" "'4:30 JIM."" ..,.~.. Me fI.. ..... «... ...... .,......,........ 81 .. ....., filed. 118 Q~T-~ ...... ....... WlluCl. .. .... . .. .. ....... -...,.. .. (\ r 'rt. - ... .. ........ - .. .... JIll . ...... 6e ..." ..... ...... ~.....,... """"Ou." ¡'rr1. ...... ",ID"IIII8."'''''''' MI"'). ....... ...... Wa","'''' enlerfll.. e Iß n 'DI'~""'" the ~ to..,...,c:.t. .........., ...... II""" 818'" oItIae CaIIL~'lta, tile..,"''''''''' to .,....Coad..... die...... ...... ........... cIeøIed OA.IOdulay""tIe.Jløll~Ø] .......... ØIéd). . , ,. . . ~a::.:.-¿'~~. "- ffI lit ~ (./. oaw . -- ~ 81 IIIIr lit.. . J-'.,/..¿.n de a t-... d . . .. ". . . .. ') ) ¡.. STATE or ALASKA , OIL AND GAS CONSERVATION COMMISSION 333 We.t 7Ch Avenue. Anchorage, Alaska 99501 Re: TBB APPUCATION OF UNION OIL COMPANY OF CALJFORNIA for an order amending Storage ltùection Order #2 for undersround storage of hydrocadxms by JqJeotion into the.existing weD Kenai Gas Storage Pacility #1 ) Storage !Weedon Order No. 2A ) ) Swanson River Pield . ) Swanson River Unit. ) Kenai Gas Storage Pacility ,. 1 ) ) June 25, 2004 . . IT APPEARING THAT: 1. By application dated Maroh 30, 2004, Union on Company of Catifo111Îa ("Ùnoca1tt) requested revision to Storap Iqjection Order No.2 issued lune IS, 2001 to revise the maximum weUhead injection pre8swe specified in Rule 3 of Storap Iqfeotion Order No.2 from 2,850 psig to 3,584 psig. Unoca1 also requested that the eolJl111iMion add an additional nde to Storage lJVection Order No.2, providiDg for . Mn'ain1itrative 4.PþJ:vva1 of future modifications to operational coDStraints specified ' m~~ ' 2. Notice of opportuDity for public heørine was duly published in ~e Anchoœge Daily News Anchorage Dai1yNewson May', 2004 in accordance with 20 AAC'2S.S40; aud 3. The Conunfnion œceived no comments ~nceming the 8.P.PHcation orrequests for a pubUc hearitag. .. nNDINGS: , 1. Storase opcntioDs weœ authorlzed in Kenai Gas Storage PacDity'l ("K.GSP fll ") (previously D8D1ed SRU #143-28) on lune IS, 2001 .by Conimission Storase Jqjection Otder No. 2 ~IO 2").' 2. ~e findings of SIO 2 are inoo1pOrated herein þy reference. . , . 3. Leak off tests in well penetrations KOSF ##2 and SItU 213.10 sþo\y the ftaoture ¡radient to rai1¡e from .8 psi/A at 2,000 feet true vertical depth (TVD) to .83 psilft at 6,100 feet TVÌ>. . 4. Unocat hitends to maintain we11head injection.below a ¡radient of .65 psi/ft at target . mlct.perf reservoir depth of 6,395 feet TVD, which conwponds to a maximum we1lh~ pressure of 3,584 psig CI\ttÎ1ig gas iqJection ~at1ODB. . . A 0;'", "'AC' .'M""N- 2 ,0 :, ,~_: "t- "," , :. ) -. , . ) Storage Injection Order No. 2A 1une 25, 2004 ) Page 2 . ~ùr\ß~~ ~ '4"1\J1 S. UndCal proposed a change in SIO 2 to allow administrative approval to facilitate the administration of future changes. ~ :.;~. Ô ',. ,',:" CONCLUSIONS: 1. The proposed increase in wellhead injection. pressure in the KGSF #1 well will not propagate fractures through the confming zones and w~l not cause movement of hydrocarbons into sources of fteshwater so long as the injection pressUre ís maintained below ftacture gradient. 2. A rule to allow administrative approval of future changes in SIO 2 will facilitate, the administration offuture changes. 3. The proposed operation of KOSF #1 well for the pwpose of storage will not cause waste, jeopardize correlative rights, endanger freshwater, or impair ultimate recovery. . . . NOW, THEREFO:QE, IT IS ORDERED- that Storage Injection Order No.2 is hereby , ameñded to revise ~e maximum pressure requirement of Rule 3 and to add a new Rule 6. This Storage ~eciion Order No" 2A supersedes and replaces Storage Injection Order No. 2. The fonowing rules, in addition to statewide requirem~ under 20 M.C 25" apply to the underground storage ofhydroc8r.þons by injection in the KGSF #1 well., ~ i- ~ RULE 1. STORAGE INJECI10N .. . The Q)rn~¡$.9ión approves the injection for storage of natural gas into the 64-5 sånd of . - the Tyonek Fonnation, between themeasured depths of 6375 and 6443 feet in SRU #43- . . 28 (KGSF' #1). The Operator shå1l report disposition of p~uct.ion a:nd injection as tequired by 20 A.A.C 25.228, 20 AAC 25.230, aqd 20 AAC 25.234. ' . RULE 2. CONTINUED.MECBANICAL INTEGRITY This approval is conditioned on the operato~s demonstrating the continued mechanical .. . . -.. integrity ofSRU #43-28 in accordance with 20 AAC 25.252 (d), (e) and (f). RULE 3. MAXIMUM INJECTION PRESSURE, The maximum wellhead injection pressure shall be limited to 3,584 psig. . RULE 4. ANNUAL MATERIAL BALANCE . '. The operator .shall annually provide to the Commission.material balance calculations of th~ gas production and injection volumes to provide -assurance of continued reservoir èonfinement of the gas storage volumes. This information shall be'submitted no later than 60 days after each anniversary date of this Order for the 12-month peri04. ending on 1bat ~versary date . " '4 .. ~ .. ~ ,." . ., ) Storap laijeotion Order No. 2A 1t11e 2S, 2004 Pap 3 . ., Itvt~ 5. E1'PIR4nOt; 0' APfROYAL As provided in 20 AAC 25.2520), if st~rage operations are not begun within 24 months . after the date of this order, this iqJection approval will expire unless an application for extension has been approved by the Commission. R~E (i. ~l\fINISTRA1'IYEA.CI10N , Unless notice and pubHc hearing are otherwise required, the Commission may admll1istrativoly waive the requirements of any rule herein or øðmiqi8tratively ameq.d any . rule as long as the change ~ Dot promote waste or jeopardize comJative rJshtø, is based on sound engineering and geoscience principles, and will not result in an increased risk offluid movement into fteshwater. ~ ~ . . AS J1M.G80 l'loJ"ldet.................r,tflwriClelllÔCÍœoftllO..,or.GIder,.,.. .... Iry" .,tIe..... .. c,..~ '}]. rflll. ........ lit""" A""""''''''''''''''''''' 4:30 PM. ... ad'" raD41- tile .... .,....... .... ........ ., .. .....,. .lIr1, to be ....., flied. tile CaJlß"'" .. .. .. .... tile , ~.. wIaoIe.... fill'" 10"" fto c.,~..".. CIII ..... """".111"'" .,...... .. ....., ,.w. A8..... ~....... ......tIIe ~..... "'-øøc.'~n." (.........".......). . ....... "urtfa& ...... ..,...... .... "tile (\411d¡faw., to ..... 60..... tø"""" Court. ............ RII.u.., It""'''''''''' ft(...~P '-II.. "''''pedocI tàr..... to 8uperi«Coad.. ha ...-. wIaIo1a tie .... IIcIoemed 4eaIed ø.... JOda.,8fter...~ .~W18 fIIed). .- It , ) ) STATE OF ALASKA ALASKA OIL AND, GAS CONSERVATION COMMISSIØN" 333 West Seventh Avenue, Suite 100 . Anchorage Alaska 99501 Re: THE APPLICATION OF Union ) . . Oil Company of California ) Conservation Order No. 520 (''UNOCAL'') for an order granting ,) an exception to the spacing requirements of) Swanson River Unit KGSF No.7 20 AAC 25.055(a)(2) to provide for the ) Drilling and Production drilling and production of the Swanson ) River Unit KGSF No.7 gas st~rage well. ) July 20, 2004 IT APPEARING THAT: 1. Union Oil Company of California (UNOCAL) submitted.an application dated May 10, 2004 requesting exception to the well spacing provisions of Title 20 AAC 25.055(aX2) to allow drilling the Swanson River Unit (SRU) KOSF No.7, gas storage well to a location which is within 1500 feet of a prop~ line between two landowners; 2. Notice of opportunity for public hearing was published in the An~horage Daily News on May 14, 2004, with a co1Tection published on May 20, .2004 p~t to 20 AAC 25.540; and 3. No protests to the applicatiop or requests for hearing w~ received. .. . FINDINGS: The SRU KGSF No.1 gas storage well is proposed to be deyiated with a. surface location 425 feet ftom the east tine and 1999 feet froni the south line of Section 28, T8N R9W, Seward Meridian (SM) and a bottoinhole location 61 feet 'ftom the e~ line and 3192 feet ftom the south line of.Section 28, T8N R9W,SM ' . 2. The proposed bottom hole location of the SRU KGSF No.7. well .would be located QD lease A-028399 with the Bureau of Land Management as landowner and 61 feet from its boundary with lease A-028406 with. Cook Inlet Region, Inc. as landowner. 1. . . 3. Offset landowners, owp.ers and operators 'within 3,000 feet of the anticipated storage interval of tñe SRU KGSF No.7 well have all been notified., A-~AC' ..M. .-'--N- 3 .. .' -..',..~. ' ..... ) ) 4. The location of the,:SRU K~SF No.7 well was selected as a favorable structural position for recovery of stored' gas reserves. . 5. An exception to the well spacing provisions of Title 20 AAC 25.055 (a)(2) is necessary to allow the drilling of the SRU KGSF No.7 gas storage well. CONCLUSION: . ? Granting a spacing exception to allow drilling and production of the SRU KGSF No.7 gas storage well will not result in waste or jeopardize the correlative rights of adjoining or nearby owners, landowners and operators. NOW, THEREFORE, IT IS ORDERED: UNOCAL's application for exception to the well spacing provision of 20 AAC 25.055(a)(2) for the purpose of drilling and producing the SRU KGSFNo. 7 gas storage well is approved. . AS 31.05.080 provides that within 20 days after receipt of written notice of the entry of an on:Jer, 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 23n1 day following " the date of the order, or next working day if a holiday or weekend, to. be timely filed. The Commission sbaD ¡rant or refuse the . application in whole or in part within 10 days.' The Commission can iefuse an application by not acting on it within the 10000y period. AD 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 nms from the date on which . the requeSt is deemed denied (i.e., 10111 day after the application for rehearing was filed). . Conservation Order No. 520 Page 2of2 Effective July,20, 2004 KGSF #7 target at 64-5 sane' SRU-B~-22 With % mile RADIUS arounc target (black circle). Two wells within % mile at 64-5 sand: Blue +) :~_RU 43-28 and SRU 314-27 RHI only t)f KG~F #? ~nd #~( in 62-5 sand). These do not penetrate 64-5SR"L. ( \~ , '-"" KGSF-~~7 » --t '-f ,» 0 J: 3: 'm' 'Z "-f .þ. ,SRU-s431-2B' \, +. ,/' .28 -28 SRU-eS34- 28 + SRU-6211-27 + .' ~ \ / Ii ~~6~ Y .';. r-; Lr SRU~ ~I 3ìRV ~~~ SRU 14-27 (j ~ ~ ~ '^ 'Ð X 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 - ~ ~ D::' ~ J I . . ! . I I . I I I I , I I I I " I I I I I I ) f I - . c I , I I ,. '- - . I I I I - I I . . , I . J I , . I . I t t , I t , I . t t . '"' . I I t (' I I . t I ' . , t t : " '. . ~L : <--- : ) I I t , - I t$L Mh~ (t.ß?,) \. \ '1 " "t' » ,..:.::;;'" ":.-.... *'.,. ,.J", ~C ~L..~~ "> t:::- ~ ,\ .. " : :- f)--J () ...... " ..-. ,;.,., .. , -......., ~ . '''..., <.",":'" .... \II!'..; , ,> , ,~..... .-' ..-.::.:.-: - .. -. .". --..-_w . , I Jt'D 0 . Q , , F I I I ( , I . , . . "" ~ " , it" ~ / ~\ / ? / ) . ~ ---' c.., I ;> ~ r-- ~f(..:[- '~:... -~-i".. ........ ..."" ~.... "'''..... , , ~ . -- .. ...... .__r""....."""'" , ~. . ..'..'....~. ell <:. ........~/ '''''.. ~ B/: r'" K .." , ~ : ~:;1Li.,~\ :..&. ,_.:".~~, 16:~~, ~/~~\~ ~ ~~O~"\::)f\~ I ¿,.L::... ~..... \J ~ ¿( ~b q~ 'J f "'.';;"..".-"""''' ~ J~ ~ ( ':'::.... .:--... , "' -..' :~jJ.' < , ,,' ,~..... .. ".. , -' ".. . , Ill" . '" ( I , , , I I , I I I t I , .' " I I , . I ,) ñ : C~J 1,..- \ I)Y þ ~\Y ,ý !Y \~ '. 63(0 , I ,,," _....." '.. "..- ..,," ,," , "... ...... --.. , ..' ~ 64(0 ' ( , '.. ''', .. I .;.... ...." . . ~.:.:~.:.::::::~ .. .. \... -. , t" .. ~ ",... -"... , ,:' '. ....::~" ---1/1 ,,' I I I I , , I . . , . " ( . , , , ~ . . - , ; '" " ..,. " I . I I j..., '1-S~~ /'ð~ ;.. - '-- ",.,¿I- I ,. ...".\ .:~:~::~: - , , " .. .. . . i . 1 t J I . " ," , , , . ") J . " ~ . . --_._-,.~-- ATTACHMENT 2 . . . . . . , , . . .:-. ~ . . . . . . . , . . . . . . . . . u... , . t5 } - I {)-- ) ~; '~1 ~ ( (' \1' , L~ ,-f ~ I f , III l I . \Ií. J i,J, I:\, I: \ h { r~) I? " ( '-, y ;t 1:t \~ ~ \:; ~ j--' ø ~ 'Q' CV\ --..... . C>c' Q ~~ >< ~ '. I I I ~ \ .~ It ) r¡ f ) :1 ' 'I - .--.-1 I') I ( I \ '. P:i'~, ;. , ';~\ ) ! ~ ~~~' . ~ . b6 .~,..,,- : ~. ~~.6 :2 " " ~,-'~,~ - /'7 - (( ~ \ ~>, ,~~..~......-- , f 'q'~- I " ",-~ ....." ... ;Jt- ...T ~-, t. ...."'::, 64uu ~~, / ,,, . -.;a.~--.:=æ- r. ~ ~--. ~~- . ~1 , ''h ~ ~r ;.+, . . . . . , . . . . . , )\ . . ~r-rn~- . . J . . , , \ I - : r : I \. I '''''l I', \ , ...- ... - . -, ?~~~-~ - ~ : f' !:t . ~) ( t. ( ~ t-H~f,11 ~ /ð ! , ' ',( " }: ~ :r ~-'- ~ ".. -~- - J . ,r'- - ~ " ,.-=- .. -- ..... rr ,~~k : - - - !!LSIze (l}S) - - - . ~retch . AlT-H ,10 Inchfnve81Ígatlon (AHF10) 6 (IN) . 16 (STlT) 1 (OHMM) 100 Õ ë 0 (f)50 . ~ ~ . Drag,.. .~T :I:'.~. !~~Þ. !~Y!Þ!'!~!C?!'. {~~~l.. c 150 from STlA 1 (OHMM) . 100 -0 . ~ ATTACHMENT 2 0 Gamma Ray (GR) (GAP I) ,... III" . 6500 - TD-- IV!::::: "....... IV ~:::t . ,~ - -__n__, ~~'!JAH!:.~ -..J 100 1.~ UNOCAL8 ) ) Swanson River Field KGSF #7 A Final Completion Schematic RKB to GL = 24.74' L1 ~ 1 Jewelry Detail 4 1. 41' 16" Drive Shoe 2. 1,950' 9-5/8" Surface Casing 3. 6,522' 7" Production Casing 4. 2,497' Chemical Injection Mandrell 5. 6,113' 4-1/2" Tubing 6. 6,077' Baker Primier Packer 7" - 26# 7. 6,097' BX Nipple 8. 6,112' WLEG i ¿¡ ~ Bit Sizes: 12-1/4", and 8-1/2" 2 9-5/8" Cemented to surface - Existing 7" Cemented to 1950' CASING DETAIL SIZE WT GRADE CONN TOP BOTTOM 16 " 68 K-55 BTC 0' 41' 9-5/8" 40 L-80 BTC 0' 1,950' 7" 26 L-80 BTC 0' 6,522' ~ 5 I 6Fi TUBING DETAIL SIZE WT GRADE CONN TOP BOTTOM 7 4-1/2" 12.6 L-80 IBTC (AB Mod) 0' 6,113' / 8" Intended Perforations (Tyonek 62-5 Sand) Date 08/30/04 09/01/04 LOG TYPE PEX CBL TOP 6,379' 6,375' BOTTOM 6,387' 6,383' Straiaht Hole: MD = TVD ¿] ~ 3 TD = 6,530' MD /6,530' TVD PBTD = 6,478' TVD / 6,478' TVD KGSF #7A FINAL RFVT~FT): 09/23/04 DRAWN BY: SAM ATTACHMENT 3 WELL TYPE FIELD/PROSPECT WELL LEASE AND NO. RIG NAME AND TYPE PROPOSEDMDITVD ~, -, Uþ OCAL- Ala~kaDrilling DAILY -DRtLL.ING1WORKOVER ¡COMPLETION REPORT Gas Storage Swanson River Unit Swanson River AFE NO. UOCO INT I CASING PROGRAM I SIZE TYPE SHOE TEST AFE AMOUNT $ 162678 ----____J,392,703 WC KGSF #7 /.." 7A T.O.L.ISHOE MD COND 6,746' Location lat/long OBJECTIVE I Pad Construction, Drill and Complete KGSF #7 WTRDEPTH CURRENT MUDWEIGIiT REPORT NO. DATE 8/25/04 PRESENT OPERATiON (OSOO) Drilling Ahead 8.5 hole @ 2,350' Remarks BIT NUMBER SIZE (IN) Pilot 1 1 8.500 , J 1 Motor Reamer. Slzej (Yes/No) ¡DAILY HYDRAULICIHNFQRMATIONI Status PUMP MAKE MODEL On P1 Ellis Williams On P2 TSM 1000 Off S1 Off S2 From To 0:00 0:30 0.5 0:30 1:30 1.0 1 :30 4:30 3.0 4:30 6:30 2.0 6:30 16:00 9.5 16:00 17:00 1.0 17:00 21 :30 4.5 21 :30 23:00 1,5 23:00 23:30 0.5 23:30 0:00 0.5 I COSTS 1 MUD PROPERTIES ¡SOLIDS CONTROL EqUIP SHAKER #1 SHAKE.R #2 1150/100/100 184/80/50 OTHER 1 ¡BIT INFORMATION IDAILY DRILL S.TRINGINFO BHA LENGTH A::;E~~~S 1223,56' 15,000 1 DAILY HOLE CONDITI()NS AVERAGE BACKGRD GAS MAX DRILLED GAS MAXTRIP GAS 95/8" 40 L-80 1985' A -_.. ---.--- -- ---- -----------. RT.MSL BullsEye BOP L. FLEX JT --- __'0__- - RT.ML RT .HNGR æJ MUD TYPE I WBM I ------- ------- . -. -- ~ 29 I bays on well 29.0 I I Daynince spud 27.0 I Total Deptþ ~--r- 0.5 -----~~------_._- IMObeDayS FOOTAGE DRILLED I Rig Up Days HOURS DRILLING AVERAGE ROP 2,113' 12.0'/hr 6' PBTDITOF ------------ -~---------'----~-_._'-----_.---"-- --------- - --- Hours TOOH F 11630' T 11540' --~- ---- -- - - - PI U Circulating Jt. Break down & Rig up to circ, Circulate 196 BBls no cement returns, Start R/U_\'.'e~therford to UD 2718 TBG. UD 2 7/8 tbg. RID tbg tongs. Change elevators, Cut drill line, ~----- -- - - - - Test BOPE to 250/3,500 psL Changed out 3-1/2" x 5" VBR to 4" pipe rams. Tested same tQ~Q@,_~QOpsL RIH w/10 stds to displace mud. POOH w/same. Checked out casing @ +1-65' due to scared -~Q~,--- PU BHI BHA #5. T/1224' Oriented MWD tool. Tested same, ----.---.--..--..----. --- - TIH W/4" DP F/1224' T/1854' Kelly Up Wash to top of Cement @ slow pump rate. Top Of Cemer¡t@21QI' Circ. And Clean Out hole, Perform Flow sensor check, Set all parameters, Drill (Slide) F/2107' - T 12113' Kick off -------..-----.-- ~-~---------- -----~---_._.__. --- Note: BOPE test witness waived by Mr. Lou Gamaldi wi AOGCC. ---------- - -. . Note: Received verbal approval from ML Winston Aubert w/BLM to proceed with drilling SRlUS.C3~E._#7Aon8/25/04 @16:15hrs --------.--------.-- ---------- ._--_._------~.~--~.- 24.0 TOTAL HRS. CUMULATIVE MUD COST DAILY MUD COST $ $ DAILY ..INT AfII.GIBLE D,I\IL YTANGIS!.E $ $ COST-TO-DATE -$, - 1,402,7~~- DAILY COST .J - - 56 ~! YESTERDAY'S TOTAL _L_-----_____~45,873 56,908 83,535 2,168 MW EXCESS LIME FILTERCAKE HTI:IP OIWR E.S. YP 3RPM 9,8 WTR 1,0 23 Clorides-24000 -~---~----- -- SHAKER #3 SHAKERI/4 SHAKER #5 SHAKER #6 SHAKER 1fT SHAKER #8 I 1 I I I I I I ¡-J F~--=--=-=~J OTHER OTHER 2 3 SERIAL TFA NUMBER (INSQ) MX-C1 6018847 I 0,67 Y 1 Motor Bend I Date pulled STRK LINER SPM 10.00" 4-5" 88 9,00" 4.5" 99 DEPTH (FT) DIST TOTAL-HRS . FROM TO' (FT) O,B.T. DRLG ROP(FPH) 2,107 2,1131 6 1.0 0.5 I 12.0 SlidingROP (FPH) ####### Bit Revs (1,000) CONDITION B G 0 WOB RPM (KIPS) MTIRTY I 1--r ----r- --- -n R EFF BBLI PUMP GPM DCAV DPAV ~ PRESS 97% 0,0 355 120 120 97% 0.0 BIT PRESS DROP 170 JET VEL 170 HHP 35 ----_.~.~---- IMP FORCE 306 -----"-,-~-~--+._"-"------ FTOLB TORQUE HOURS ON JARS ADDITIONAL INFORMATION BHA WGT BELOW JARS 32,906 WOB 1000LB 1-Jan Kick off @ 2!~?'__--- - _I HRS SINCE INsPECTION ONBTM OFF BTM ROTARY RPM 0.5 ~EMAN___- - . .- Sta!il'l~_- --- Theall - -' ----.---- -----"~.~ ._"--"-~ units units 0 units 0 units PICKUP WGT ROTATING I/IfGT SLACK OFFWGT ------._-- ~(1000LB) ~(1000LB) ~ (1000 LB) CONN GAS SIT.GAS units ----------'---'--"-,-- -- MIDNIGHT TOOSOO.HRSTIME BREAKDQWN From To Hours Remarks 3:30 3.5 Drill (slide total 34') F I 2113' - T I 2141' 5:00 1.5 Drill F 12141' - T 12350' APIG 139'per hL with out kick off slide 209' Total ft -----_._--~ ---~-"--- - ----~._----------_..----~~-~. -.,--.--.---.-.--.J Revision7 11.19.03 ATTACHMENT 4 WELL TYPE FIELD/PROSPECT WELL LEASE AND NO. RIG NAME AND TYPE PROPOSED MD/TVD ,,-.. .~ UNOCAL - Alaska Drilling DAILY-DRILLING I WORKOVER I COMPLETION REPORT Gas Storage Swanson River Unit Swanson River AFENO. UOCO.lNT ICASING PROGAAM SIZE TYPE SHOE TEST AFE AMOUNT $ 162678 2,392,703 wc KGSF #7 A T.O.LJSHOE MD COND 6,746' --------------- Locatio" tat/tong OBJECTIVE I Pad Construction, Drill and Complete KGSF #7 WTR DEPTH CURRENT MUD WEIGHT 95/8" 40 L-80 1985' A --~--~~ -~-~._-~ RT -MSL BullsEye BOP L.. FLEX JT ---~------_.- RT.ML RT -HNGR -~.~._~.- ~ ---~--~ MUD TYPE I WBM ---~~-_.- -~--------- DATE DaYSOnWell 30.0 J Dayss¡nçeSPlld 28.0 I Total 8/26/04 Deþth 3,811' PBTDITOF 1,703' REPORT NO. 30 Mobe D¡¡ys FOOTA(õE DRILLED 2.0J 15.3 111.3'/hr I Rig Up Days HOURS DRILUNG AVERAGE ROP From To PRESENT OPERATION (0500l Drill Ahead 81/2" hole Depth @ 05;00hrs 4,063' 0:00 3:30 3.5 3:30 9:30 6.0 9:30 10:30 1.0 10:30 17:30 7.0 17:30 18:30 1.0 18:30 19:00 0.5 19:00 22:00 3.0 22:00 23:00 1.0 23:00 0:00 1.0 ¡COSTS IMUDPROPERTIES I SOLIDS CONTROL EQUIP SHAKER #1 SHAKER #2 1150/100/100 1150/100/100 OTHER 1 I BiT INFQRMATION ~~~-- --~--------~----~--- Hours Remarks Drill (slide total 34' ) F /2113' - T /2141' Drill F / 2,141' - T / 2,900' 126' APIG per hr. with out kick off slide 759' Rig # 2 Mud pump down Circ, & Recipacate -------------- - -- --- Drill ahead F/2,900' - T /3,401' at reduced pump rate of 475 GPM, Control Drill While Rig works on #2 pump. 71.57' APIG per hr. Change all Seats in #2 pump. Drill Ahead F /3,401' - T /3,447' MWD lost Pulse @ 17;30 Work on getting MWD Pulse back Drill Ahead F /3,447 - T /3,715' Drill Ahead F / 3,715 - T / 3,758' #1 pump lost swab Drill ahead @ slower rate Drill Ahead F /3,715' - T /3,811' Total APIG - 87.89' Per hr 19hrs ~ -----~-------.-._~-----_._- ----~'----------~--- -------- ~----------- ~---~------'-'---~..- ---- --- ~,-~~- ~----~-------~-------- ----~~--~------ ---~'--'-~"------- --------->----~------------> ----~~- ~------_._--- - ---.-- - ------ --~-~----- -~--------- ------.-- Note: Received verbal approval from Mr. Tom Maunder w/AOGCC to drill to 4,300' without MWD operational. ---------- ----<-------.--- ~---~-------'---_'_~----'---"---~'-----._------- ---- 24.0 TOTAL HRS. CUMULATIVE MUD COST DAILY MUD COST $ 92,918 $ 9,383 DAILY JNTAI\IGIBLE DAILYTAN~IBLE $ $ $ $ $ 1,461,906 __~25 1,402,781 59,125 COST.TO-DATE DAILY COST YESTERDAY'S TOTAL MW OIWR FILTRATE HTHPê 250 3RPM EXCESS UME FILTERCAKE HTHP GELS .1OSEC WPS E.S. YP 9.8 WTR 6 Clorides - 28000 8 1,0 26 SHAKER #3 SHAKERt14 SHAKER tIS I I I I I I OTHER <t SHAKER #6 SHAKER tf7 SHAKER #6 -1 I I I I I I OTHER 3 SIT NUMSER SIZE (IN) Pilot) I 8.500 . ., ¡ I Mot!¡r Reamer. Size (YesINo) DAILY HYDRAUI.ICSINFORrMTION Status PUMP MAKE.MODEL MX-C1 Y I Motor I3end SERIAl TFA DEPTH (FT) DIST TOTAL - HRS WOS RPM NUMBER (INSQ.) FROM TO (FT) 0.6;T. DRLG ROP (FPH) (KIPS) MT/RTY I 6018847 I 0,67 2,107 3,811' 1,704 1.0 15,3 I 111-4 5-9 I 100 I OatePulled Sliding ROP(FPH) 10 Bit Revs (1,000) 251621 CONQITION 0 D L B G 0 R _o_-~.~~_._---- STRK 10.00" LINER sPM EFF BBLI PUMP GPM DCAV DPAV JET VEL HHP ~ PRESS 4.5" 81 97% 0,0 2050 488 166 166 234 91 5.5" 121 97% 0.1 BIT PRESS DROP IMP FORCe 321 579 On P1 Ellis Williams On P2 TSM 1000 Off $1 - Off S2 DAILY DRILI.Si~INGINFO BHALENGTH A:~~~S 1223.56 ' 15,000 I DAII;. Y HOLE CONDITIONS AVERAGE BACKGRD GAS MAX DRILLED GAS MAX TRIP GAS 9.00" FT*LB TORQUE HOURS ON JARS ADDITIONAL INFORMATION SHA WGT BELOW JARS 32,906 WOB 1000 L.B 15 Kick off @ 2107' HRS SINCE INSPECTION ON BTM 4-5 OFF BTM 2-3 FOREMAN Stagner Theall ROTARy RPM 100 0.5 ---~~ 80 units CONN GAS ~ units 286 units ,SIT GAS 0 units ----"---------- ~ (1000 LB) ~ (1000 LB) ~ (1000 LB) --~~,--- units PICK UP WGT ROTATIN(3WGT SLAC.K OFF WGT - ---------~-~-"--------_..._---- -- -_.~------------- ._--~ -,- --------- --- MIDNIGHT TO 0500HRS TIME BREAKDOWN From To Hours Remarks 3:30 3,5 Drill Ahead F / 3,811' - T /4,003' APIG 82' ft per hr. 22.5 hrs. 4:30 1.0 Drill Ahead F /4,003' - T /4,050' #2 pump Down (SWAB) Drill ahead With #1 pump Drill Ahead F /4,050' - T /4,063' -~~--~- - -~-~-------~-.~- ~--'--~-------'--------~--- --~-----~----.---------- ------ Revision 7 11-19-03 WELL TYPE FIELQ/PROSPECT WELL LEASE AND NO. RIG NAME AN.D TYPE PROPOSED MD/TVD ~ .~, UNQCAL -AI.-skaDrilling DAILY -.. Df\ILLlNG rWORKOVERI COMPLETION REPORT Gas Storage Swanson River Unit Swanson River AFE NO. uoeo INT I CASING PROGRAM I $IZE TYPE KGSF #7 A 6,746' Location .Iatllong OBJECTIVE I Pad Construction, Drill and Complete KGSF #7 WTR DEPTH CURRENT MUD WEIGHT 95/8" 40 L-80 RT-MSL RT. ML BUIIs!:ye BOP L; FLEX JT 162678 AFE AMOUNT $ ~92,70! RT:oHNGR ŒU MUD TYPE I WBM I -- WC T.O.WSHOE MD eOND SHOE TEST --~-.-~------ 1985' A ~-_. --~~-_._~- -- ----'--~------- -- ---------~ ----------------.-- ~~------------ -- ---~------ ------.--------------- ----------- REPORT NO. 31 DaYSonwell 31.0 I Dayss'n~ spud 29.0 I I MolÍe. Dåys I Rig Up Days 2.0 I Total FOOTAGE HOURS AVERAGE DATE 8/27/04 Depth 4,254' PBTDITOF DRILLED 443' DRILLING 6.2 ROP -- From To PRESENTOPERATI()N(0600) Drill Ahead 81/2" hole Depth @ 05;00hrs 4,800' Hours 0:00 3:30 3.5 3:30 4:30 1.0 4:30 6:00 1.5 6:00 6:30 0.5 6:30 13:30 7.0 13:30 15:30 2,0 15:30 17:30 2.0 17:30 18:00 0.5 18:00 18:30 0.5 18:30 22:00 3.5 22:00 0:00 2.0 I COSTS IMUD PROPERTIES MW Remarks Drill Ahead F 13,811' - T 14,003' APIG 82' fi per hr. 22.5 hrs. Drill Ahead F 14,003' - T 14,050' #2 pump Down (SWAB) Drill ahead With #1 pump Drill Ahead F I 4,050' - T I 4,115'. Pumped sweep. C&C mud. POOH. Changed out MWD tool and bit. Oriented MWD tool. TIH wlsame to 1950'. Tested MWD tool. Serviced rig. Repairing hydraulic leak on grabbers. TIH from 1,950' to 4,115'. Stop and survey @ 3,800' Drill Ahead from 4,115' - 4,254' APIG 69.5 Ftlhr 24.0 TOTAL HRS; I)A!LY INTANGIBLE DAILY TANGIBLE $ $ ,OIW.R GELS10$EC FILTRATE HTHP0260 FILTERCAKE HTHP WPS 9.8 WTR 7 1.0 laOLIDS CONTROL EQUIP SHAKER ttI SHAKER #2 1150/100/100 1150/100/100 J OTHER 1 BIT NUMBER SIZE (IN) Pilot r I 8.500 . , J I Motor Reamer SIze! (Yes/No) I DAILY HYDRAULICS INFORMATION I Status PUMP MAK~ MODEL 1223.56' 15,000 I DAILY HOLE CONDITíONS I AVERAGE BACKGRD.GAS 46 unils CONN GAS 0 units MAX DRILLED GAS 230 units SITGAS ~ units MAX TRIP GAS 238 units MIDNIGHT TO. 0600 HRS TIME BREAKDOWN From To Hours Remarks 0:00 5:00 M Drill Ahead from 4,254' - 4,800' APIG 97' Ftlhr 5:00 total fig. 685' new bit Hrs 7 I BIT INFORMATION On P1 On P2 Off S 1 Off S2 I DAILY DRILL STRIN<,1.INI=O' BHA LENCõTH ~~~~S Page 1 SHAKER #3 SHAKER #5 SHAKER #6 SHAKER IIf4 I I 1 , 1 OTHER 2 OTHER 3 MX-C1 Y I Motor Bend SERIAL TFA NUMBER ( IN SO ) 1 6018847 I 0,67 I Datø PuUed DEPTH (FT) DIST FROM TO (FT) 2,107 4,1151 2,008 08/27/04 Slidin( ROP (FPH) 10 TOTAL - HRS O,B-T. 3.1 Ellis Williams STRK LINER SPM EFF BBLI PUMP ~ PRESS 10.00. 4.5" 90 97% 0.0 2150 - - - 9,00" 5.5" 120 97% 0.1 TSM 1000 FT*LBTORQUI; BHA WGT BELOW.JARS WOB 10QOLB 6-8 ROTARY RPM 100 ON BTM 4-5 HRS SINCE INSPECTION 32,906 PICK UP WGT ROTATING WaT S.LACK OFF WGr ~(1QOOLB) ~(1000 LB) ~(1000LB) 71.S'/hr -------~----~'- -------~~ - ~--~---------~---~- -~~~---_. - ---------- ~---------_..._~--------- - - ---._--~-~ ----_.__.-~-------- - -----'---~----'----~--- - ------ ----- ------ ---~---------~ - ---~----_._---------- -" ._.~---- ----- - - . ---~-------~_._----------_.~~--_.- - ---- ------..-.. --"----- ---.-.- ~--- ---- ---------------- ._-------_.~-_.- --_.-~ ----_.- -~-~_.----'-------~ - ---~-----' 96,107 13,000 COST-TO-DATE ~ ~ 571,013 DAILY COST ~-------- 109,107 YESTERDAY'S TOTAL $ _1,461,906 E.S. YP EXCESS UME 3RPM 21 _Clorides-27,500- 5 SHAKER 17 SHAKER .. -j , I ¡ I WOB RPM DRLG ROP (FPH) (KIPS) MTIRTY 19.7 I 101.9 5-9 I 100 Bit Revs (1,000) 348.2 CONDITION 0 0 L ~~--~--_!!_---- 2 wr All E 1/16 NO DTF -~-- --------- ----~-~---------------- GPM DC A V DPAV 504 462 261 BIT PRESS DROP 342 JET VEL 241 HHP 100 IMP FORCE 616 ------- OFF 6TM 2-3 I FOREMAN Stagner Theall HOURS ON JARS ADDITIONAL INFORMATION 19,7 Kick off @ 21~_____---------- I -------- ----- ------ -----.---- ---- ~---- '- --.--- -- ----~-'._---._-- ~._¥_-------~.-_.._---------- ~----. -- '--------.- - -.. -. --~-- ---~--~~------ .-- n_~~<._~..... -- - ~------ -~_.-._-- - --. - ---- -_.._--~ ~---~ Revision 7 11-19-03 WEll TYPE Gas Storage FIELD/PROSPECT Swanson River Unit WEll lEASE AND NO. Swanson River RIG NAME AND TYPE PROPOSED. MDITVD Location lat/long OBJECTIVE I Pad Construction, Drill and Complete KGSF #7 6,746' WTR DEPTH RT"MSL RT-ML CURRENT MUD WEIGHT L!Q] ~ ,~ ONaCJU':'. AIIsKI'DrilUhg DAilY. DRILLING! WORKOVER I COMPLETION REPORT KGSF #7 A AFE NO. UOCO INT ICASING PROGRAM SIZE SHOE TEST 162678 AFEAMOUNT $ 2,392,703 WC T.O.LJSHOE MD TYPE COND ---~- --~---~_.~._----- 95/8" 40 L-80 1985' A -~---~------ ~---~------ ~~~._---~._-- .RT -HNGR BullsEye BOP L. FLEX JT ----~_._---~- ~-~--~----~_.---- MUDTYPJ!I WBM I --------~--'--~-- -~~--._------ -- ----'---_.----~ DATE 8/28/04 Total Depth 6,200' IDIIYS on well 32.0 I I Days Since spud 30.0 I PBTDITOF MObeDayS FOOTA~E DRILLED -----~-- REPORT NO. 32 I Rig Up Days HOURS DRILLING 2.0 I 16.7 AVERAGE ROP 1,946' 116.5'/hr ~---- PRESENT OPERATION (0500) T.D- 8 1/2" Hole 6,530' Circulate hole clean F / From Hours To ~---'--'--_._---"-'-~------'--~'-- ~------~------~---_.__._-'~ 0:00 8:00 8.0 8:00 8:30 0.5 8:30 0:00 15.5 Remarks Drill Ahead from 4,254' - 5145'. Bad swab in pump #2. APIG - 89' / HR (891' IN 10 HRS) Drilled ahead with pump #1 from 5,145' - 5,173'. Drilled ahead F/ 5,173' to T /6,200' APIG 80.19' per hr. Total ft - 2,085' Total Hrs'- 26hrs --~.~- - 24.0 TOTAL HRS. ¡COSTS CUMULATIVE MUD COST DAILY MUD COST MUDPROPERTIES MW OIWR 10 WTR ISOllDS CONTROL EQUIP SHAKER#1' SHAKER#2 1150/100/100 1150/100/100 OTHER 1 I I I err INFORMATION BIT NUMBER SIZE. (IN) Pilot I I 8.500 . .1 I Motor Reamer Size (Yes/NO) 1 DAILY HYI)RAULlCS INFORMA TIONI Status PUMP MAKE MODEL Hyc PDC Y I MotorBend On P1 Ellis Williams On P2 TSM 1000 Off S1 Off S2 I dAILY DRILl,. STRING INFO BHA LENGTH ~~~~~S 1223.56' 15,000 QAILY HOLE CONDITiONS AVERAGE BACKGRP GAS MAX DRILLED GAS MAX TRIP GAS BHA WGT BELOW JARS 32,906 I 52 units 293 units units ~~--~----._--.~ ~----------~ - ~---~------~_.- - ---~--~---------- ~-~._-----~ --- - --------~---- _.-~-- - ~----~._- - ---.--- -~-----~------- -~------_._- ---~~--_._------. ---.-- - ------- --~--~- ~-~----~ --~---_._.-- _._-----------_.~--~~..--~----'~----~ $ 154,514 $ 18,446 DAILY INTANGIBLE DAILY. TANGIBLE $ $ COST-TO.l)ATE --.!_--~-- 1,642,205 DAilY COST -L-----______71,191 YESTERDAY'STOTAL $ ____~,571,O13 71,191 WPS GELS.105EC FILTRATE HTHP@26O E.5. FILTERCAKE HTHP YP 3RPM EXCESS LIME 7 _,___£hlorides-28,000 -- 1.0 21 SHAKER 113 SHAKER tI4 SHAKER #5 SHAKER 016 SHAKER t1 SHAKER .. j I -1 I I I I I I II OTHER 2 OTHER 3 $ERIAL TFA NUMBER ( INSQ) 206364 I 0.66 I Date Pulled DEPTH (FT) DIST FROM TO (FT) 4,115 6,200 I 2,085 Sliding ROP (FPH) TOTAL.HRS O.B,T, CONDITION 0 D L B ~~---~- woe RPM DRLG ROP (FPH) (KIPS) MTIRTY 18,5 I 112.7 8-12 1100/185 Bit Revs (1.000) 297,6 I ------~--._~---- ------ ~~---_._-~---~~- STRK 10.00. LINER SPM EFF BBLI PUMP GPM DCAV DPAV JET VEL HHP ~ PRESS 4.5" 90 97% 0.0 2700 504 462 261 244 103 5.5" 120 97% 0.1 BIT PRESS DROP IMP FORCE 352 635 9.00" FT*LB TORQUE HOURS ON JARS ADDITIONAL INFORMATION HRSSINCE INSPECTION WOB 1000 LB 6-8 Kick off @ 2~. -.-J ON BTM 4-5 OFF BTM 2-3 I FOREMAN ROTARY RPM 100 38.2 -----~_._~-~._---- CONN GAS SIT GAS 0 units 0 units MR. TROY THEALL Stagner ~ (1000 LB) ~(10ooLB) ~(10ooLB) PICK UP WGT ROTATING WGT SLACK OFF WGT --~_._-----_. -'~---_.- ._~~~ ----~~-----~-_._-~-~----~ MIDNIGHT TO 0500 HRS TIME BR~DOWN From To Hours Remarks 0:00 5:00 5,0 Drilling Ahead F /6,200' - T.D. @ 6,530' (Swab out #2 pump Drill with one Pump F /6,503' - T /6,520') 5:00 Survey, Drop Carbide, Dry Run Test, Pump Sweep. Circ Hole Clean Total APIG 77' per hr total ft 2,415' # 2 bit Page 1 -~~--~-~-~--~~-- ---~---~-~ --~._--.,-~-_._-~----~-~~-~--- Revision 7 11-19-03 WTR DEPTH CURRENT MUD WEIGHT REPORT NO. DATE 8/29/04 PRESENT OPERATlON (050Q) RU Schlumberger to run open hole logs. Remarks -- From To Hours 0:00 6:30 6.5 6:30 9:30 3.0 9:30 12:00 2.5 12:00 14:00 2,0 14:00 14:30 0.5 14:30 17:30 3.0 17:30 18:30 1.0 18:30 0:00 5.5 COSTS I MUD PROPERTIES ¡SOLIDS CONTROL E~UIP SHAKER tit SHAKER #2 1150/100/100 L:°0/100 OTHER 1 IBIT INFORMATION ".-.. ~. UNOCAL - Alaska Drilling DAILY - DRILLING! WORKOVER I COMPLETION REPORT ---~~--~~--~----~ -- . - - - --- Drilling Ahead F /6,200' - T.D. @ 6,530' (Swab out #2 pump Drill with one Pump F /6,503' - T /6,520') Survey, Drop Carbide, Dry Run Test, Pump Sweep, Circ Hole Clean Total APIG 77' per hr total ft 2,415' # 2 bit ---- -_._~_. POOH from 6,530' to 5,127'. Backreamed from 5,127' to 4,770'. (Tight from 5,127' to 5,007'). Pumped out of hole from 4,770' to 4,100'. Pumped hi-vis sweep and C&C mud. TIH from 4,100' to 6,530'. Circulated walnut plug for flagging hole (5 bbls over calculated). C&C mud. Max Gas - 339 units. POOH from 6,530' to 1,927'. (Tight spots from 4,068' to 3,808'). ~~- KGSF #7 A 6,746' RT -MSL BUllsEye BOP L. FLEX JT WELL TYPE Gas Storage FIELD/PROSPECT Swanson River Unit WELL LEASE AND NO. Swanson River RIG NAME AND TYPE PROPOSED MDIlVD Location lat/long OBJE.CTIVE I Pad Construction, Drill and Complete KGSF #7 RT - ML RT -HNGR L!Q:] MUD TYPE I WBM I 33 DaYSOn well 33~ DaysSince!lPUd 31.0 Total Depth 6,530' PBTDITOF 24.0 TOTAL HRS. CUMuLATIVE MUD COST ....!... 157,33~ DAILVMUDCOST $ 2,816 MW OIWR WPS GI'LS 10SEC 10 WTR -- 6/15/23 -- ~- SHAKER #3 SHAKER 114 IL II OTHER 2 BIT NUMBI'R SIZE (IN) Pilot I I 8,500 , j Motor Reamer Slzej (Yes/No) I DAILY HV.DRAULICS INFORMATION I Status PUMP MAKE MODEL Hyc PDC Y I Motor Bend SER.IAL TFA NUMBER (IN SQ) 206364 I 0.66 I. Date Pulled On P1 Ellis Williams On P2 TSM 1000 Off S1 Off S2 IDAILV DRILL. STRiNG INFO BHA LENGTH ~:~;J.S 1223,56' 15,000 I DAILY HOLE CONDITIONS AVERAGE BACKGRDGAS MAX DRILLED GAS MAX TRIP GAS STRK LINER 4.5" 10,00" 9.00" 5,5" BHA WGT BELOW JARS 32,906 HRS ~NCE iNSPECTiON I 76 units 457 units CONN GAS SIT GAS 0 units 0 units units MIDNIGHT TO 0500 HRS TIME BREAKDOWN From To Hours Remarks 0:00 4:00 4.0 POOH & LD BHA. Cleaned off rig floor. 4:00 5:00 1,0 RU Schlumberger EL. 5:00 AFE NO. UOCO INT ICASING PROGRAM SIZE TYPE AFE AMOUNT $ -- 2,392,703 162678 WC COND SHOE TEST T.O.LJSHOE MD --------...-- ~~-~----~---~--- 95/8" 40 L-80 1985' A ~ -~----_._._----- ~--~~_.~~.._- --~~-~~-~---- -------_.~--- -- ~-~'.-------~ ~~----~-----~-,_._--~- -~-.~--~------~- ~---~---~-----~- Mobe Days FOOTAGE DRILLED I RigUp Days 2.0 AVERAGE ROP HOURS DRILLING 110.0'/hr 330' 3 ---------~-----~- ~-~-_._~---~->_.._-~- --------- -----~~ -_.-,--------- k.~ --~ - ~.--'-'--- --_.-._-- -~--- ---- ---------~-.---- - -----------.------- -~---- - ._-------~-------- - -----~---~~ -----~'-------'---'- DAILV INTANGIBLE DAILY TANGIBLE $ $ COST-TO-DATE ~_._-_..____'!r.~97,212 DAILY COST L___..._------.. 55,OO~ YESTERDAY'S TOTAL $ ---- 1,642,205 55,008 FILTRATE HTHP@250 FILTERCAKE HTHP 3RPM EXCESS LIME E.S. YP 4.8 25 ___~hlorideS_:.~9,OOO .-- ~- -- SHAKER tIS SHAKER 111 SHAKER #8 -l SHAKER #8 I I I I I I I I OTHER 3 DEPTH (FT) OIST' TOTAL - HRS WOB RPM CONDITION FROM TO (FT) O.e.T, DRLG ROP (FPH) (KIPS) MT/RTY I 0 D L B G 0 R .= ~:wi~: " .::.L::; ~':..I j". 2~.,,~:~;~~~~~-~T~~~:- SPM 90 EFF BBU PUMP GPM DCAV DPAV JET VEL HHP ~ PRESS 97% 0-0 3050 504 462 261 244 103 - 97% 0.1 BIT PRESS DROP IMP FORCE 352 635 120 FT*LB TORQUE HOURS ON JARS ADDITIONAL INFORMATION WOB 1000 LB 8-12 ON BTM 4-5 OFF BTM 2-3 I FOREMAN ROTARY RPM 100 41.2 Kick off @ 2107' _.._----~_..-------- PICK UP WGT ROTATING WGT SLACK OFF WGT ~ (1000 LB) _(1000LB) ~ (1000 LB) ---------- ------------- -~--'--.- -------.-- - Theall Stagner ~~--------_.- ~----'--'-~+._-----~+' ~ -- ----,,--- -- -, --- ._------ . ------------- --~- -~--~- ---_.----------'-_.__.,--~._----.---- Revision 7 11-19-03 WELL TYPE FIELD/PROSPECT WELL LEASE AND NO. RIG NAME AND TYPE PROPOSED MDITVO ~, .~ UNQCAl. AI~~k~'.DrilUng DAilY. DRIL.LlNG IWORKOVER {COMPLETION REPORT Gas Storage Swanson River Unit Swanson River AFE NO. UOCO INT I CASING PROGRAM I SIZE TYPE SHOE TEST AFE AMOUNT $ 162678 2,392,703 WC KGSF #7 A T.O.LJSHOE MD COND 6,746' --------p-- LocatIon lat/long OBJECTIVE I Pad Construction, Drill and Complete KGSF #7 WTR DEPTH CURRENT MUD WEIGHT REPORT NO. DATE 8/30/04 PRESENT OPERATION (O500) Cementing 7" casing ----~---~----- From 0:00 3:30 5:00 7:30 8:00 9:00 11:30 12:00 13:00 16:00 To Hours 3:30 3.5 5:00 1.5 7:30 2.5 8:00 0.5 9:00 1.0 11:30 2.5 12:00 0.5 13:00 1.0 16:00 3.0 0:00 8.0 ¡COSTS ¡MUD PROPERTIES MW I SOLIDS CONTROL EQUIP SHAKER #1 SHAKER #2 I'S0/00/00 l I'S0/00/00 OTHER 1 I BIT INFORMATION 9 5/8" 40 L-80 1985' A --------~--------- ----------- ---~---~----~,--~--- RT -MSL BullsEye BOP L.j::LEX JT --~._--~---- RT.ML RT-HNGR -- ----~~------_. [lQJ ~--~---- MUD TYPE WBM , ---------------------- 34 DaYSOnWell 34.0' DaysSinCnpud 32.0' I Mobe Days FOOTAGE DRILLED I Rig Up Days HOURS DRILLING 2.0 I AVERAGE ROP Total Depth 6,530' pBTD/TOF -- --~--~--_.- -----------_._---~---_._--- Remarks POOH & LD BHA. Cleaned off rig floor. RU Schlumberger EL. ~-~---~----- - Ran Triple Combo Platform Express log from 6,510' - 3,530'. ----------- --------" POOH & RD Schlumberger.' -----~~---- .--" Pulled wear bushing. Made dummy run with Vetco Gray hanger and landing jt ------------- - -- ---- - ~-- - --- RU Weatherford tools while waiting on Weatherford personnel. PU shoe & float jt. ------~------------ . . --- Serviced rig -----------~- -. ----_._---~--_._- Changed out tongs due to improper heads. Changed out swivel on powerpack. Held PJSM with Weatherford.__--__-------------,--- Ran 7", 26#, L-80 BTC casing to 1,950'. CBU @ shoe. Ran 7" casing from 1,950' to 5,950'. Had to change out Weatherford tongs @ 3,487'. ~-~--<--~- --~-,-~- ----_._-----~---_._._-- ---- --~.._~-------~.-------~---- ~---~-~---_.-.~_.~ ~-~---_.~~- -_.~-~._~-~ ~--~--- ._--~--c-------~ ~------~ .-- --------_.--~_._-- --- ~----~--~- - ~ -~ -------.--..---- ~~_._--_..- ----- ---- - _._------~ ~~----~------------ - --- ~- ._----_..----~ - -~-------- 24.0 TOTAL HRS. ----------- CUMULATIVE MUD. COST DAILY MUD COST $ 162,080 $ 4,750 DAII. Y INTANGIi:tLE DAlL YTANGIBLE $ $ COST.TO.oATE -L-------- 1,886,808 DAILY COST ~--- - 189,596 YESTERDAY'STOTAL $ 1,697,212 93,941 95,655 OIWR FILT~TE HTHP@ 260 FILTERCAKE HTHP YP GELS10SEC 3RPM EXCESS LIME WPS E.S. 10 WTR 6/14/23 4] 25 -- -- --~------- SHAKER #3 SHAKER III SHAKER #8 --I JF~ ~ SHAKER#8 SHAKER #6 I l II I I I I OTHER 2 OTHER 3 BIT NUMBER SIZE (IN) Pilot I I 8,500 ReamerSlze I (Y~:~~) ¡DAILY HYDRAULICS INFORMATION Status PUMP MAKE MODEL Hyc PDC Y I MotorBend SERlALTFA NUMBER ( IN sa ) 206364 I 0,66 I Date Pulled DEPTH(FT) DIST TOTAL~ HRS WOB RPM CONDITION FROM TO (FT) O,S-T, DRLG ROP (FPH) (KIPS) MTlRTY I 0 D B G 0 R 6,200 6,530 I 330 8.6 3.0 I 110.0 8-12 1100/170 2. 5 wr A X I --~;----~~--"--'- 08/30/04 Sliding ROP (FPH) Bit Revs (1,OOO) 346 1 - - --- -' -- On P1 On P2 Off S1 Off $2 I DAILY DRILL STRING INFO BHALENGTH ~~~;~S 1223.56' 15,000 I DAILY HOLE CON )ITIONS A VERAèE BACKGRD. GAS MAX DRILLED GAS MAX TRIP GAS Ellis Williams STRK LINER SPM EFF BBlI PUMP GPM DCAV DPAV JET VEL ~ PRESS 10,00" 4,S" 90 97% 0.0 3050 S04 462 261 244 9.00" S.S" 120 97% 0.1 BIT PRESS DROP 3S2 IMP FORCE 63S HHP 103 -~ -+_.- TSM 1000 FT'LB TORQUE HOURS ON JARS ADDITIONAL INFORMATION BHA WGT BELOW JARS 32,906 WOB 1000LE¡ 8-12 Kick off @ 2107' HRSSINCE INSPECTION ON BTM 4-5 OFF BTM 2-3 ¡FOREMAN ROTARYRPM 100 41.2 ---- 0 units 0 units ~unils 0 unils 0 units - (fOOO LB) ~ (1000 LB) ~ (1000 LB) CONN GAS SIT GAS PICK UP WQT ROTATING WGT SLACK OFF WGT -----.-_. - -- -- >--- Theall Stagner -----'--------- ------------~----- MIDNIGHT TO. 0600 HRS TIME I"REAKDOWN From To Hours Remarks 0:00 2:30 2,5 Ran 7" casing from 5,950' to 6,512'. PU jt #158. Washed to 6,530'. LD jt #158 2:30 5:00 2,5 MU hanger and landing jt. Landed same & CBU. RU cement lines. Held PJSM. 5:00 -~~---~------ ---.~------~-- ---- -~._- + Page 1 ------~-'--'-'----'._-o-~-'-------- ~.-------~--- ---._~_._- Revision 7 11-19-03 WELL TYPE Gas Storage FIELD/PROSPECT Swanson River Unit WELL LEASE AND NO. Swanson River RIG NAME AND TYPE PROPOSED MDITVD. 6,746' ,,-., ~, UNOCAL - Alaska Drtlling DAilY. DRilliNG) WORKOVER ¡COMPLETION REPORT KGSF #7 A AFE NO. UOCO INT I CASING PROGRAM I SIZE TYPE COND SHOE TEST AFE AMOUNT $ ----__~~~~703- 162678 WC T.O.LJSHOE MD -~--~- L~cation lat/long OBJECTIVE I Pad Construction, Drill and Complete KGSF #7 WTR DEPTH CURRENT MUD WEIGfiT REPORT NO. DATE 8/31/04 PRESENT OPERATION (0500) From To 0:00 2:30 2:30 6:00 6:00 7:00 1.0 7:00 8:00 1.0 8:00 9:30 1.5 9:30 13:00 3.5 13:00 13:30 0.5 13:30 14:00 0,5 14:00 19:00 5.0 19:00 19:30 0,5 19:30 21:00 1.5 21 :00 22:30 1.5 22:30 0:00 1.5 ¡COSTS ¡MUD ~RO~ERTlES ISOLIDS CONTROL EQUIP SHAKER #1 SHAKER #2 1150/100/100 1150/100/100 OTHER 1 IBIT INFORMATION RT ~MSL RT -ML [JQ] 35 ID~YSOnWell 35.0 I Total Pep~h Hours 2.5 3.5 Remarks 95/8" 1985' -~_._---- A 40 L-80 --_._._-~------ - RT -HNGR BullsEye BOP L. FLEX JT MUD TYPE I WBM I ----- I Days since spud 2~Õ_~ ---~---~--~_.-~-------~---_._- 33,0 I I Mobe Days FOOTAGE DRILLED ¡Rig Up Days HOURS DRILLING AVERAGE ROP PBTP/TOF --- -~_.>------,"------'~-------------------' ._~------_._--- ---_._----<----~-- -- - -_.._-----._~~--~ ~- --..-------- . ---- -- ~-------- Ran 7" casing from 5,950' to 6,512': PU jt #158. Washed to 6,530'. Circ, CBU~_UO jt #158___- - M/U hanger and landing jt Landed same & CBU. RU cement lines, Held PJSM. Flush lines with 3 BBL water PT lines to 4000 PSI. With rig pumped 25 BBL Mudpush XL, shut down and batch up 12.8 PPG cement, Pump 111 BBLS Lead Cement Slurry @ 12.8 PPG, followed by 29 BBL5 Tail Cement Slurry @ 15.8 PPG, Shut down, wash lines and drop plug. Pump 5 BBLS mix water followed by 243 BBLS mud pumped by rig Bumped plug at 05:47 HRS ----------- - Pressured up after bumping plug to 3500 PSI held for 30 minutes bled pressure off and clle~_~~dufloiltst1¡:¡datotalof 3 BBL return RO Cement head, LO landing joint, clean floor. ------- --- Install 7" casing packoff and test to 5000 PSI held for 10 minutes, and install short wear ring__- LO 5" HWOP, Had to PU DO tongs to break out in mouse hole very tight. RO DO tongs, RO Horizon crown sensor, Brk out drive sub XO from 7" landing joint PU Bit, 7" casing scraper, Bit sub and XO ----~---------------- RIH with scrapper assembly -----, --- ---- --- - Tag up at 6463' Kelly Up and rotate to 6475' Initially very hard had to set down 8-9K On bit and drilled off very slowly (1800-2100 Torque) broke through and drilled relatively easy from there. At or near BU from initial har~~~l~_ad-,"-LJl:>.~E3!uc::()rneélc::~oss shaker screen. CBU, finish cleaning pits, and flush lines ----- -- -- - . PJSM with all parties involved in fluid change over, Test casing to 3500 PSI for 10 minutes with no pressure loss. Pump 75 BBL H2O followed by 50 BBL of dirt magnet chased by 150 NBBL of H2O followed by 50 BBL of KCL, chased by 65 BBL of H2O, taking returns to slop tank and centrifuge tanks. Water cleared up greatly after dirt magnet came back. KCL spotte~t~~()t!C>.~()fllolE3' POOH LO OP --------~ --~ Lead Cement 317.9 sack of G 0907 Tail Cement Slurry 141-1 Sacks of G 0907 Chemicals used C359, 0046, 0047, 0065, 0079, 0110, 0167, 0600g, 0800 24.0 TOTAL fiRS. CUMULATIVE MUD COST D~IL YMUP COST MW OIWR 10 WTR II BIT NUMBER SIZE (IN) Pilo~ I I 8,500 L J I Motor Reamer slze¡ (Ye$/No) DAIL Y HYDRAULICSINFORMATlON Slatus PUMP MAKE MODEL On P1 Ellis Williams On P2 TSM 1000 Off 51 Off S2 D~IL YDRILL STRING INFO BHA LENGTH A:~~E~~~S 1223.56' 15,000 DAILY HOLE CONDITIONS AVERAGE BACKGRD GAS MAX DRILLED GAS MAX TRIP GAS Hyc PDC Y I Motor Bend BHAWGT BELOW JARS 32,906 0 unils 0 unils 0 units MIDNIGHT TO 0500 HRS TIME BREAKDOWN From To Hours Remarks 0:00 5:00 5.0 POOH LO OP 5:00 Page 1 ~--~-~--~ ~---~--~-~---~--- --_.~.- - -- _._---------_._~----~-._~----~--'-~ $ 164,740 $ 2,660 DAILYIN.TANGIBLE DAILY TANGIBLE $ 102,635 $ 2,100 COST-TO-DATE --'--- --. - J 991 ~~, DAILY COST -,.$ . 104 .7~ YESTERDAY'S TOTAL ~---------____Jß86,~Q.!! WPS FILTRATE HTHP@ 260 FIL TERCAKE HTIiP YP 3RPM EXCESS UME E.S, GEL:S10SEC 6/14/23 25 4.7 --- -.-------------. --_..__.--"-- SHAKER #3 SHAKER#4 SHAKER#5 SHAKER #7 SHAKER #8 I 1-1 E~~~-------j SHAKER tI6 1.1 I I I I OTHER 2 OTHER 3 SERIAL TFA NUMBER (IN SQ) 206364 I 0,66 I Date Pulled DEPTH{FT) TOTAL - HRS R TO WOB RPM DRLG ROP (FPH) (KIPS) MT/R'IY I 3.0 I 110.0 8~2¡~OO~170 r; Bit Revs (1,000) --346L -II DIST FROM TO (FT) O.B.Te 6,200 6,530 I 330 8.6 08/30/04 Sliding ROP (FPH) STRK EFF BBU PUMP ~ PRESS 97% M 3050 97% 0,1 IMP FORCE 635 LINER 4,5" SPM 90 JET VEL 244 HHP 103 GPM DCAV DPAV 504 462 261 BIT PRESS DROP 352 10,00" 9.00" ---~--~----_._-~_.- ----- 120 5.5" ------ ---_.._~--,----- --,----------- HOLB TORQUE HRS SINCE INSPECTION WOB 1000LB 8-12 HOURS ON OFF BTM JARS 2-3 41.2 IFOREMA~_- ~c~off_~_~10i'- J ADDITIONAL INFORMATION ON BTM 4-5 ROTARY RPM 100 CONN GAS SIT GAS 0 units 0 unils Lawrence -------..--- ----~ Stagner PICK UPWGT ~ROTA TINGWGT ( SLACK OFF WGT - (1000 LB) _(1000LB) _(1000LB) -----~- -- ~--_.~------------ -"------- -------~,---- ~_~__M_-'-~___~---_.. --- --- ----_._~--~_.----- Revision 7 11-19-03 WELL TYPE FIELD/P.ROSPECT WELL LEASEAIIIP .1110. RIGIIIAME Allie TYPE PROPOSEP MDITVD /-- -, UNOCAL-AlaskaDrilling DAILY - DRILLING IWORKOVER I COMPLETION REPORT Gas Storage Swanson River Unit Swanson River AFE NO. UOCO INT ICASIIIIGPROG~M I SIZE TYPE SHOE TEST 162678 AFE AMOUNT $ 2,392,703 WC KGSF #7 A COND ---- -~-----'----~ 6,746' Loçatioolatllong OBJECTIVE I Pad Construction, Drill and Complete KGSF #7 WTR DEPTH CURRENT MUD. WEIGHT 95/8" 40 L-80 1985' A --------- ~- ----_..~-_._-- -_._----~_._._~- RT-MSL BullsEye BOP l, FLEXJT -----~ -~ RT~MI. RT-HNGR --~_._-.-- -~ ~ uu MUD TYPE I WBM I RigUP Days REPORT NO. 36 DaY50nWeU 36.0 I I Days since spud 34,0 I I Mobe. pays Total FOOTAGE DATE 9/1/04 Depth 6,530' PBTD/TOF DRILLED 2.0 j HOURS DRILLING AVERAGE ROP ---~-_..__._----_._._~-- From To PRESENT.OPERATION(0500) Testing 4 1/2" Tubing Hanger ----------- BIT NUMBER SIZE (IN) Pilot I I 8.500 R¡¡amer sizej I (Y~:~o) I DAIL '(HYORA\)LIC~ INFORMATIONJ Status Pl;JMP MAKE MODEL 0:00 5:00 5:00 6:00 6:00 7:00 7:00 12:30 12:30 13:00 0,5 13:00 14:30 1,5 14:30 15:30 1.0 15:30 18:30 3.0 18:30 18:45 0.25 18:45 21:00 225 21 :00 22:00 1.0 22:00 0:00 2.0 ¡COSTS I MUD PROPERTIES P,lW ISO~IDSCONTROLEQUIP J S.HAKER #1 SHAKER #2 1150/100/100 1150/100/100 OTHER I BITINFORI\1ATION -_._--~-~--_._-------~ Hours 5.0 1,0 1.0 5,5 Remarks POOH LD DP Clean floor, Pull wear ring -------- RU Schlumberger E-line______-- - - - Run CBL, had to pull back out of hole at 5700' due to short in line. Rehead run back in well 6474' pressure casing to 1500 PSI and log out to 1925'. Top of cement appears to be at 2200', drop back down to 2400' and log back u£.!2_J_~_5~J<:>_\,~!ifyJOC RD SWS Change out lower rams to 4.5", body test 250 PSI low and 3500 PSI high RU WOTCO to run 4.5" tubing, hold PJSM prior to running pipe RIH to 1611' had power pack problems Change out power pack RIH to 3609' ~_.~-~-~- - - - - MU Chemical injection line, hang control line shieve, and install chemica~ction l!!l~res~~uplil1et()1000 PSI RIH with 4-5" tubing, strapping 1/4" control line to tubing. RIH to~' t-----~---~_. {. 11:3 -- ._---~------ ~- ---"- ------ ~-_..--.--~----- - -----"----<- -- BOP test waiver today at 16:38 by Wenton Aubert with AOGCC. Test originally due today. ~-------- ------- Up 70M, DN 69M ---- X-Nipple loaded with RHC Plug -~____.m_~--__- --~--~--_._- --~'~---'_'_-'---'---->- 24.0 TOTALHRS. DAILY..INTANGIBLI: - $ DAILY TANGIBLE $ ~ ~ --- COST-TO-DATE --1.--- ~- 2..o4~J~~- DAilY COST _t~- - - - - . 5Q,68~ YESTERDAY'S TOTAL $ ---__-t~...h542 50,688 FILTERCAKE HTHP OIWR \VPS GI;LS 10SEC. YP 3RPM EXCESSUME E.S. 10 WTR 4.7 25 6/14/23 -~--~~---~--~---...,...- SHAKE.R tI3 SHAKER #4. SHAKER #5 I~ SHAKER 1/6 SHAKERt18 -~~ E~=~~~-==J SHAKER 1fT I 1 II II I I OTHER 2 OTHER 3 SERIAL TFA NUMBER (INSQ') Hyc PDC 206364 I 0.66 Y I Motor Bend I D~te Pulled STRK liNER SPM 10.00" 4.5" 90 9.00" 5.5" 120 DEPTH (FT) WOB RPM DRLG ROP (FPH) (KIPS) MT/RTY I 3,0 I 110.0 _-8-1:J~0;1-ro--2 - Bit Revs (1,000) 346 I TOTAL - HRS DIST FROM TO (FT) O,RT. 6,200 6,530 I 330 8.6 08/30/04 Sliding ROP (FPH) 0 5 WT A X I CT TD On P1 Ellis Williams On P2 TSM 1000 Off S1 Off S2 I:FF BBU PUMP GPM DCAV DPAV JET VEL HHP ~ PRESS 97% 0.0 3050 504 462 261 244 103 --~~-~...----~-> 97% 0,1 BIT PRESS DROP IMP FORCE 352 635 I DAIL YDRII.L STRING INFO BHA lENGTH A:~~~~~S 1223.56' 15,000 - I DAIi. '(HOLE ÇONDITIONS J AVERAI3E BACKGRDGAS MAX DRILLED GAS MAX TRIP GAS FT*LB TORQUE HOURS ON JARS ADDITIONAL INFORMATION BHA WGT BELOW JARS WOB 1ooo:tB 8-12 Kick off @ 210~__, HRSSINCE INSPEt>TlON ON BTM 4-5 OFF BTM 2-3 I FOREM~_N__, ROTARYRPM 100 32,906 41.2 -----~.-"-~-~--- 0 units 0 units 0 units 0 units O.units Lawrence ------- Stagner ----.1Q. (1000 La) ~ (1000lB) ~ (1000 La) CONN GAS SIT GAS PICK UPWGT ROTATING WGT SLACKOFFWGT ------ --- -----~--------~----~---_..,~-- ------ ---- -- ------- -_._~------ MID.NIGHT TO.0500 HRS TIMEBREA!<DOWN From To Hours Remarks 0:00 1:30 1.5 Continue to RIH 1 :30 4:00 2.5 Install tubing hanger, and landing joint, MU Chemical injection line, drain BOP, land hanger and veritY correct setting in tubing spool, PU hanger 4', RD WOTCO tongs, MU Safety vave, head pin, and HP hose Circulate inhibited packer fluid, and diesel for freeze protection 4:00 5:00 Page 1 ~-----~------ -----~~ --~--- - 1.0 ---~---~_._--._--~_._..~---~ - Revision 7 11-19,03 ~. .~ UNOCAI..>.Ala~ka Drilling DAILY.DRILLING1WORKOVERI COMPLETION REPORT WE;LLTYPE Gas Storage ----- FIELD/PROSPECT Swanson River Unit WELL LEASE AtIID tIIO. Swanson River RI.G tIIAME AND TYPE PROPOSE;D MD/TVD KGSF #7 A AFE NO. UOCO IIIIT ICASING PROGRÀM ¡ SIZE TYPE SHOE TEST 162678 AFEAMOUNT $ ------_-1_!.~~~lO3- --- WC T.O.L.lSHOE MD COND ~~~~~~~ --- 6.74~- Location .Iat/long OBJECTIVE; rd Construction, Drill and Complete KGSF #7 WTR DEPTH CURRENT MUD WEIG.HT REPORT NO. DATE 9/2/04 PRESENT OPERATIQNI0500) Cleaning rig --_._----~--------- From To Hours 0:00 1:30 1.5 1:30 4:00 2.5 4:00 5:00 1,0 5:00 6:00 1.0 6:00 7:30 1.5 7:30 8:30 1,0 8:30 13:30 5.0 13:30 18:30 5.0 18:30 21 :00 2.5 21 :00 23:00 2.0 23:00 0:00 1,0 ¡COSTS I MUD PROPERTIES ¡SOLIDS CO~TROLEQUIP SHAKERI#1 SHAKER#2 150/100/1Y 1150/100/100 OTHER 1 I QIT INFORMATION 95/8" 40 L-80 1985' A ~~-- -----_.'"--~ - --- _.~~-~ -~------- ~~ RT-MSL RT-HNGR E3ullsEye BQP L. FLEX JT RT -ML -- ~~ L1Q] n_- ~~ MUD TYPE I WBM I -~-- ---~-----_._- n_- 37 IDaYSOnwel~] ~sinçeSPUd~ Total Depth -- ~-----~-~---_.~------- 2.0 J I Mobe Days FOOTAGE DRILLED Rig Up Days HOURS DRILLING AVERAGE ROP PBTDITOF -- ._~---~-_.-~-_.~-,-> -'~---_._-'-------------"----~-~._'------"'- ~~~--~--------------- Remarks Continue to RIH _~-__n- -- - -- Install tubing hanger. and landing joint, MU Chemical injection line. drain BOP. land hanger and verify correct setting in tubing spool. Close bag and pressure up to 700 PSI to verify hanger body seals intact, bleed off pressure. PU hanger 4', RD WOTCO tongs, MU Safety vave, head pin, and HP hose ~-------------- Circulate inhibited packer fluid, and diesel for freeze protection __~nu_____--- . . Drop bar wait 15 minutes, pump aprox 7.5 bbl to pressure up. Ran pressure up to 2500 PSI and let sit for a couple of minutes, pressured up to 3500 PSI and waited a couple of minutes. could not get pump to roll over with this much pressure, bled pressure back to 500 PSI and ran pump up to 4200 PSI and pop off blew. Repinned valve and proceded to pressure up again to 4000 PSI shut in and after 1 minute sitting the off duty pump pop off blew (Pump not isolated). Isolated pump and pressured up to 400 PSI and let sit for 10 minutes. Bled presssure off. Note all pumping was done with annulus valve open, (Packer setting) -------------u- . Run 2" HP hose to cellar and connect to annulus. With TIW open pressure annulus to 2500 PSI and hold for 30 minutes, had aproximately 20 PSI drop in pressure during test. Bled pressure off. -- Break out TIW and head pin, lay down landing joint and install 4" Type H BPL._____-- - - . Remove catch can and tarp. washdown BOP. open doors and remova all rams. N P bell I1if>f>~~.n(jfL()\,'J line,. pull rotary table Clean and remove Koomey lines. remove choke and kill lines. NP BOP -~----~ - . . . . NU dry hole tree,Test 11" 5M tubing head adapter to 5000 PSI, Pull 4" Type H BPV and install 4" Type H TWC and attempt to test tree to 5000 PSI. was not able to hold pressure. removed TWC and redresed. installed same and tested again to 5000 PSI held good. Removed TWC and installed BPV and secured well. Released rig at 21 :00 HRS ~_n______- Pumped packing in 16" x 9 5/8" void area of wellhead untill solid. PT to 300Q PSI heldJ()_~Q.D"1Ï11u!~s Peak loading trailers and readying equipment for demobe . -~-~-~------- -- --- -_._~~_. -~------_._..._----- NOTE: Landing thread on tubing hanger is a 4.909 Acme thread, 6 threads per inch ----~-~----- 24.0 TOTAL HRS. YP 3 RPM EXCESS UME CUMULATIVE MUD COST DAILY MUD COST DAlLYJNTÞ,N.GIBI,.E ~ 59.325 DAILY TANGIBLE $ 114.700 COST-TO-DATE n_~- - .2~216 83~ DAILY COST -'- ~74 .o~~- YESTERDAY'S TOTAL ~-----------__.~~Q42. 812 MW FILTRATE HTHP@!250 FILTERCAKE HTHP OIWR E.S. 10 WTR 6/14/23 4.7 25 -- ----- -.,.._-_.--~-------, ._-----~.- -- I ¡'""'''"'¡ F'"-"--¡ ~"'~.] ("'''. -l [""""1 Ë~:=j OTHER 2 OTHER. 3 BIT NUMBER SIZE (IN) ~ 2 I 6.500 ~ I. Motor Reamer SiZe]. ~O) I DAILY HYDRAULICS INFORMA TïõN] Status PUMP MAKE MODEL Hyc PDC Y ¡ Motor Bend SERIAL TFA . DEPTH(FT) DIST TOTAL -HRS WOB RPM NUMBER HNSQ ) FROM TO (FT) O.B,T, DRLG ROP (FPH) (KIPS) MT/RTY 206364 I 0,66 6,200. 6,530 I 330 6.6 3.0 I 110,0 6-12 r;ooí;;~ - ¡..Date Pulled 06/30/04 Sliding ROP (FPH) Bit Revs (1,000) - 3;;; --I --_.~-'-------------'-- On P1 Ellis Williams On P2 TSM 1000 Off S1 ~- Off S2 I DAILY DRILL STRING .INFO ~ B.HA LENGTH A:~~~~~S 1223.56' 15,0QQ... I DAILY HO.LECONDITIONS.--J AVERAGE BACKGRD ~AS M~DRILLED GAS MAX TRIP GAS CONDITION IODLE3GO ;-15- ~I' wr[ ~ _11 'x ¡. .. II. CT nUl .. - __LJ__- R TO STRK EFF BBll PUMP GPM DCAV DPAV ~ PRESS 97% 0-0 3050 504 462 261 97% 0,1 BIT PRESS DROP 352 IMP FORCE 635 LINER SPM 4.5" 90 - 5.5" 120 JET VEL 244 HHP 103 10.00" 9.00" ---------~~-------- ~._--_._~- ~- F,..LB TORQUE HOURS ON JARS ADDITIONAL INFORMATION BHA WGT BELOW JARS WOB 100o-LB ROTARY RPM HR$.SINCE INSPECTION ONBTM 4-5 OFF BTM 2-3 ~~ Kick ~!!_~~~7'_____- - . uu.- ~EMAfI _n___- -- J -~'-~-'-'~- 0 units 0 units 0 units Lawrence ------ Stagner -----.LC>.(1000 LB) ~~ (1000 LB) -- (1000LB) ----._-- --_._-~---~----- - MIDNIGHT TO 0500HRSTIME E\RSAKDOWN From' To H~Remarks ~~ 0:00 5:00 5,0 Peak loading trailers and readying equipment for demobe 5:00 U~-~------------ Page 1 ~-~------ -- -- - ~----_._-- -~-------_._---o~ - ----~--- - - ---~--'---'-~- - - ~--- ~~- ---_..-, _.~-- Revision 7 11.19.03 :~ .~, . UNOCAL. Ala~ka Drilling DAILY. "DRILLING1WORKOVER/COMPLETION REPORT WELL TYP!: FIELDIPRO~PECT WELL LEASE AND NO. RIG NAME AND TYP!: PROPOSED MDlTVD KGSF #7 A AFE NO. UQCO INT I CASING PROGRAM I SIZE TYPE 162678 AFEAMOUNT ~_____~92J:.~ Gas Storage Swanson River Unit Swanson River --- WC T.O.L.lSHOE MD COND SHOE TEST ~-~~-~~ -~ -- ~--~..- ~ ---- 6,746' -- LQcatiQn ¡at/long O~JECTIVE I Pad Construction, Drill and Complete KGSF~ ßullsEye BOP I.. FLEXJT 95/8" 7 -~ 41/2" 40 L-80 -- 26#1-80 12.6# 1985' 6521 6120 A ---~-,._-_._~- A -------- ----- A 16.2 -~ __._~n----~ - ~.~- . ~-- WTR DEPTH RT oMSL RT -ML RT -HNGR ~-~----- CURReNT MUD WEIGHT ŒJ MUI>TYpe WBM I -- RepORT NO. 38 IDayS on well~J ~sincesPud 36.~ IMObeDayS Total 6,530' FOOTAGe DA.TE 9/3/04 Depth PBTDJTOF DRILLeD 1 ftig Up Days HOURS DRILLING --- 2.0 AVeAAGE ROP -_.--_.,~--_.._._-~~..._- PfteSeNTOpeRATION.(0500) Rig Down Kuukpik Rig --_._->--~--'----_._--- --------'-____-'M_-~- ~~-~- -----------.--- To Hours Remarks 18:00 18.0 18:00 0.0 0:00 6.0 Peak loading trailers and equipment for demobe Rig crews Cleaning rig. Cleaning Derrick ancL§LlI:J. All Cleaning Was labor only Finished @ 18:00hrs. ____n__- Rig Downó --------------- ----~.---- --~------'- -~-_._----_.~_._- ---- ---_u_~-- -- ------------~----~ - -~--- - -~-~--~-" ---.----~- ------------ -~-~------"~. ~.._--~-------- ~-~-----_._~-~--_.._-----_.----_.._----~,--, 24.0 TOTAL HRS. 1 COSTS CUMULATIVe MUD COST $ 142,615 DAILYMUPCOST ~- DAilY INTANGIBle DAilY TANGIBLE $ $ 38,456 COST-TO-DATe -j" 2,25,5,~~~ DAILY COST ,~.. - 38,~§_~- YESTeRDAY'S TOTAL _:t_____n___~__,,~,2!?,836 ¡MUD PROPERTIES MW OIWR WPS GELS.10SEC FILTRATE t!THP~2$O FII-TERCAKE H~HP E.S. YP 3 RPM EXCESS UME -- --~---~-- ----.--'------ -"-<-- ---- ~ .-------- ¡SOLIDS CqNTROlEQUIP ~ SHAKER #1 SHAKER #2 1150/100/100 I 150/100/100¡ OTHER ëR~ J (AKER~ SHAKER tIS 1 [ SHAKER #6 SHAKER 1fT SHAKER Itð J '~-1 E-=~~,-'=J 1 1 OTHER 2 OTHER 3 IBIT INFORMATION BIT NUMBER SIZE (IN) Pilot I I I Reamer sizej I (Y~~~~) I- I DAll YHYDAAULlCSINFORMA TlqNI Status PUMP MAKe MODEL SERIAL NUMBER TFA DEPTH (FT) ( IN sa ) FROM TO I DIST (FT) TOTAL - HRS WOB RPM Q,B.T. DRLG ROP (FPH) (KIPS) MT/RTY I -'-~---I ~-I[ Bit Revs (1.000) R I Motor Bend I Date Pulled Sliding ROP(FPH) STRK LINER SPM EFF BBL/ PUMP GPM DCAV DPAV ~ PRESS 4-5" 90 97% 0.0 504 #DIVlOI #DIV/OI 5.5" 120 97% 0.1 BIT PRESS DROP #DIV/OI JET VeL #DIVlOI HHP On P1 Ellis Williams -- On P2 TSM 1000 Off S1 -- Off. S2 -- 10.00" 9,00" #DIV/OI ------~-~" "--~-~ IMP FORCe #DIV/OI ~---'-----_. -----~- I DAILY DRILL STRING INFO 6HA LENGTH A:~~~~~S FT.I.B TORQUE BHA WGT BELOW JARS HRSSINCE INSPECTI.ON WOB 1000.LB ROTARYRPM ON.BTM OFF BTM HOURS ON JARS ADDITIONAL INFORMATION --'- -------------_._---~---'-~-'-+ . -_._~---------..- IDAIL YHOLE CONDITIÖNS AVERAGE BACKGRD. GAS MAX DRfLLEÖ GAS MAX TRIP GAS ~ l!:<2.~~AN ---. --- 0 uoits 0 units 0 units CONN GAS ~ units SIT GAS 0 units PICK UPWGT ROTATINGWGT SLACK OFF WGT --- (1000 LB) - (1000 LB) _(1000L6) ------ ------- Stagner --------- -- - -----""--'---..--------.--- - -.-- MII>NIGHTTO 0500 HRS TIMe BReAKDOWN From To Hours Remarks 0:00 -~- -~--~--------- -----~----- -------.----- -~-~_. -----------~ ---- page 1 ~----~~~_._-- ~ -----~--._- ------------- Revision 7 11-19-03 ;---- ~ UNOCAL -Alaska DriUing DAILY. -DRILLINGIWORKOVER/COMPLETION REPORT Wf;LL TYPf; FIf;L,DIPROSPECT WELL I.I:ASE AND NO.. RlGNAMf; AND TYPf; PRo.POSf;D MDITVD --- AfE NO.. UOCo. INT ICASING PROGRAM I .SIZE TYPE 162678 --- AFE AMOUNT ~----____~~2.703 Gas Storage Swanson River Unit - -- Swanson River we KGSF #7/+ T.o..LJSHo.E MD Co.ND SHo.E TEST -- ~,746' Location lat/long OBJECTIVE I Pad Construction, Drill and Complete KGSF #7 95/8" 7 -~ 41/2" 40 L-80 ~-- 26#1-80 12.6# 1985' -~-- 6521 ----~~ 6120 ~-~- A A 16.2 ~__n__- -------- A ----------- - - WTR DEPTH RT~SL RT -ML RT -HNGR BullsEye Bo.P L. FLEXJT --- CURRENT MUD WEIGHT u=J --- ~~--- ~---- REPo.RT NO.. 39 I Days oowell 39IJ IDaYS$inCe S )ucJ Total DATE 9/4/04 De )th 6,530' PBTDlTo.F IMObeDays Fo.o.TAGE DRILLED ~ ¡Rig U ) Days 2-:0 I Ho.URS DRILLING -,_.'-'~'--~.~_¥--'~-~----~- AVERAGE Ro.P ----------~¥_-'----'-- -.-' PRESENTOPERATlo.N (0500) Rig Down & De-Mobe Out --- -----.---~-----.------,--,-'-- ----..--..-,-- ----- ------- ------ -------- From To Hours Remarks ------,------ 0:00 18:00 18.0 18:00 0:00 6.0 Rig Move Rig Move Derrick Down @ 18;00hrs -----_.~. - - -~-_._---- - ~_._-~--_.----- - - - --~--~----~- -~~~----- ____.n ---- ---- _.._~~,----~_.------ - ~-----,----- -- -------~-"-- .- -----~-~---- ~~---~--~~ -----~----~---- -----------_._---~~--~.--~..---- 24.0 To.TAL HRS, ¡Co.STS I MUD PROPERTIES 142,615 DAIL Y.INTANßIBLE DAILYTA~GIBLE $ 192,832 $ Co.ST.To.-DATE -,t 2,448,~~~ DAILYCo.ST --$ . _19~!..1!~~ YESTERDAY'S To.TAL ~--------_.__~,25~_~ MW FILTERCAKE HTHP E.S. YP 3RPM EXCESS UME -~-- '._--'--~-~--'---"~~----"-~- ¡So.LIDS CONTRo.L EQUIP SHAKER #1 SHAKER .#~ F 0011 00 I 115011001100==1 OTHER 1 SHAKER #3 SHAKER'" SHAKERt/5 ~-~ r---lr--l r SHAKERII6 SHAKER #7 SHAKER 118 I 1---==1 r~=~.-~,~~-~-._] OTHER 2 OTHER 3 ¡BIT INFo.RMATION BIT NUMBER SIZE (IN) Pilot I I . J I MOlor Reamer slze¡ (Yes/No) I DAILY HYD~ULIC::S INFo.RMATlo.N Status PUMP MAKE MODEL SER.IAL. TFA NUMBER - (IN SQ) I I Date Pulled DEPTH(F1) DIST TOTAL - HRS WOB RPM FROM TO (FT) O,B;T. DRLG ROP (FPH) (KIPS) MTlRTY I I~-I--~-.-I--_u--- Sliding ROP (FPH) Bit Revs (1,000) -- ----- r-c- . . 0 D CONDITION B G 0 R I Motor Bend On P1 Ellis Williams On P2 TSM 1000 Off 51 Off 52 STRK 10.00" #DIVIO! 9.00" EFF BBU PUMP GPM DCAV DPAV STK- PRESS 97% 0.0 504 #DIVlO! #DIVIOI 5.5" 120 97% 0,1 BIT PRESS DROP #DIVIOI JET VEL #DIVIOI HHP _._~._--------------- IMP FORCE #DIVIOI ------------ "~~- --",------ I DAIL YDRI.LL STRINGINF.o. BHA LENGTH A:~:i~~S FT*LBTORQUE WO.B 10ooL8- ROTARY RPM ON BTM OFF BTM HOURS ON JARS ADDITIONAL INFORMATION --..----..--- --"-------- ----------..---- ---,------ DAILY HOLEc::o.NDITlo.NS AVERAGEBACKGRD GAS MAX DRILLED. GAS MAX TRIP GAS MIDNIGHT TO. 0500 HRSTIME BREAKDo.WN ------ From To Hours Remarks 0:00 5:00 5.0 Rig Demobe 5:00 -- (1000 LB) -- (1000 L8) - (1000 LB) FORE'-1~N__. --- §~~. 1- ~._--------'. --- -..-- . ---~--~---- ------,------- ------- ----_.~-----_. ----- Page 1 -~-----..----___~._M__- -~---_._-----_~_.__N~ Revision 711-19-03 f~ .~ UNOCAL .. Alaska [)rilling DAIL.Y ...DRILLING1WQRKOVER ¡COMPLETION REPORT WELL TYPE FIELD/PROSPECT WE .;L LEASE ANDN9. RIG .NAME AND TYPE PROPO$EDMDfTVD Gas Storage Swanson River Unit Swanson River KGSF #7 II AFE NO. UOCO INT ICASING PROGRAM I SIZE TYPE WC -- 6,746' Lo~ation lat/long OØJECTIVE I Pad Construction, Drill and Complete KGSF #7 95/8" 7 4 1/2" -- WTR DEPTH RT -MSL Bull~EY~ BOP L. FLEX JT RT. ML RT~HNGR. -- CURRENT MUD WEIGHT CiJ MUD TYPEI WBM ¡ REPORT NO. 40 I.Days ol!well 40.0 I Pays. since spud 38.0 I IMObeDayS Total 6,530' FOOTAGE DATE 9/5/04 Depth PBTPITOF DRILLIj:D PRESENT OPERA nON .(0500) From Hours 6.0 7,5 2.0 2.5 Remarks Rig Down I Rig off well and power unit broke down Load Out Rig I Clean Up location Load Out Rig I Start P/U Liner I Install Tree And Test T/5,OOOpsi. Load Out Rig & P/U Liner & Work on pad Rig crews Shut Down till Tuesday. To 6:00 13:30 15:30 18:00 0:00 6:00 13:30 15:30 18.0 rOTAI.HRS. ¡COSTS CUMULATIVEMUDCOST - $ 142~ DAILY MUD COST $ SHA~ER #6 OTHER 2 I BITINFORMATION BIT NUMBER SIZE (IN) Pilot r I , j I Motor Reamer SI;zej (YeslNo) I DAILY HYDRAULICS INFORMATI~ statu~ PUMP MAKe: MOPEL SERIAL NUMBER TFA DEPTH (FT) ( IN SO ) FROM TO I I Motor Bend I Date Pulled Sliding ROP (FpH) 162678 ~- AFEAMOUNT -.!._-------------~.~~1,70~ T.O.L.ISHOE MD COND SHOE TEST -- 40 L-80 26#1-80 -- 12,6# 1985' 6521 6120 A A A ----~._-"_.- 16.2 -~ -- -~ J I Rig Up Days HOURS DRILLING 2.0__r-- -- ---_.'--'-'-~--'-~ AVERAGE ROP ----~-~~---------->~-_..- --~-~--'---'--~----~-"--'---"-'~ ----.--------- ----~-~ - ------ ---.---------------- - --._~---_.._~ - ~'--- ------------- -~--------- ~ -.--.--- ---- - ----.. ~--'-------'----- --~-~----_..-- ---------~-- -_.~~-------~-- ~_._~~...-------- --------~ -----------~.- - - -- ~------~-----'-'------ -. --'-- - -----'._-----.- $ $ CO:~~::::: ~t--- . 2~~5;~~~~~ YESTERDAY'S TOTAL $ --~-----,~~-~~~~, 1:2~ 7,548 FIL TERCAKE HTHP 3RPM EXCESS UME E.S. YP -- ---~'_._'-- ~--~-._--~..~~- SHAKER't/6 SHAKER #7 '¡iF SHAKER IIð l F-=-=--==~~~~I OTHER . 3 DIST (FT) TOTAL" HRS O.B.T, DRLG ROP (FPH) I-I I Bit Rev~ (1,000) CONDITION B G 0 WOB RPM (KIPS) MTIRTY I --r---l- ~- -Tl 5> D R STRK 10.00" LINER SpM 4.5" 90 5.5" 120 EFF BBU PUMP GPM DCAV DpAV ~ PRESS 97% 0.0 504 #DIV/O! #DIV/O! 97% 0.1 BIT PRESS DROP #DIV/O! -----.----.-.- On P1 EIIi~ Williams ~- On P2 TSM 1000 Off $1 Off S2 9.00" ~- ¡DAILY DRILL STRINÓINFO BHA LENGTH ~:~;~S ROTARYRPM I DAILY HOLE CONDITIPNS AVERAGE BACKGRD. GAS MAX DRILLe:D GAS MAX TRIP GAS 0 units 0 units 0 unit~ MIQNIGHT. T005()OHRSTIMEBREAKPOWN From To Hours Remarks 0:00 Page 1 JET VEL HHp #DIV/O! #DIV/O! IMP FORCE #DIV/OI .~---,-~-_.__._~- FT*LB TORQUE HOURS ON JARS ADDJTlONAL INFORMATION ON BTM OF.F BTM -- --.---------------- --~._---------_..- -- (1000LB) -- (1000LB) - (1000 LB) ¡FOREMAN ------- Stag.ner -- -- ----------- --------~--~--~-_.- ----_._-~- -"--~'-'''---+---- --------- . -- --- _.-~~----- ~--~--~~ ---~-~---_._------------_._-------- Revision7 11-19-03 ~, UNOCAL Tubular Information: Casing 7", L-80 BTC Well: Swan9)n River KGSF Well No.7A Field: KGSF Platform: Foreman: Rig: Mud Weight (PPG): Mud Type: Wellhead Make: Current Rig KB Elevation: Original Rig KB Elevation: Stagner I Theall Kuukpik 5 10.0 WBM Vetco Gray 23.5 24.7 .-, Casing Tally AFE Number: 162859 , Start Date: 18/30/2004 Start Time: 11300 hrs Date Landed: 18/31/2004 Time Landed: 105;45 Up-Weight: 1 121,000 Ibs ¡ Slack-off: I 115,0001bs Weight set on SlipslHGR: ! 95,000 Ibs Item Jt Description ID" OD" LENGTH TOP BTM. (in) (in) (ft) (ft) (ft) Rat Hole 8.00 6,521.68 6,530.00 Guide shoe 1.20 6,520.48 6,521.68 cent 1 7" L-80 26# Casing BTC Mod 6.276 7.000 41.51 6,478.97 6,520.48 Float collar 7.000 0.92 6,478.05 6,478.97 cent 27" L-80 26# Casing BTC Mod 6.276 7.000 41 .49 6,436.56 6,478.05 cent 3 7" L-80 26# Casing BTC Mod 6.276 7.000 41.35 6,395.21 6,436.56 4 7" L-80 26# Casing BTC Mod 6.276 7.000 41.04 6,354.17 6,395.21 5 7" L-80 26# Casing BTC Mod 6.276 7.000 41.76 6,312.41 6,354.17 6 7" L-80 26# Casing BTC Mod 6.276 7.000 41.74 6,270.67 6,312.41 7 7" L-80 26# Casing BTC Mod 6.276 7.000 41.90 6,228.77 6,270.67 20' pup (7" casing) 6.276 7.000 19.64 6,209.13 6,228.77 cent 87" L-80 26# Casing BTC Mod 6.276 7.000 41.60 6,167.53 6,209.13 97" L-80 26# Casing BTC Mod 6.276 7.000 41.51 6,126.02 6,167.53 107" L-80 26# Casing BTC Mod 6.276 7.000 41.15 6,084.87 6,126.02 11 7" L-80 26# Casing BTC Mod 6.276 7.000 41.31 6,043.56 6,084.87 12 7" L-80 26# Casing BTC Mod 6.276 7.000 40.92 6,002.64 6,043.56 cent 13 7" L-80 26# Casing BTC Mod 6.276 7.000 40.22 5,962.42 6,002.64 147" L-80 26# Casing BTC Mod 6.276 7.000 41.60 5,920.82 5,962.42 15 7" L-80 26# Casing BTC Mod 6.276 7.000 39.17 5,881.65 5,920.82 167" L-80 26# Casing BTC Mod 6.276 7.000 40.28 5,841.37 5,881.65 177" L-80 26# Casing BTC Mod 6.276 7.000 41.56 5,799.81 5,841.37 cent 187" L-80 26# Casing BTC Mod 6.276 7.000 41.58 5,758.23 5,799.81 19 7" L-80 26# Casing BTC Mod 6.276 7.000 41.58 5,716.65 5,758.23 20 7" L-80 26# Casing BTC Mod 6.276 7.000 41.55 5,675.10 5,716.65 21 7" L-80 26# Casing BTC Mod 6.276 7.000 41.78 5,633.32 5,675.10 22 7" L-80 26# Casing BTC Mod 6.276 7.000 41.60 5,591.72 5,633.32 cent 23 7" L-80 26# Casing BTC Mod 6.276 7.000 41.47 5,550.25 5,591.72 24 7" L-80 26# Casing BTC Mod 6.276 7.000 41.24 5,509.01 5,550.25 25 7" L-80 26# Casing BTC Mod 6.276 7.000 41.65 5,467.36 5,509.01 267" L-80 26# Casing BTC Mod 6.276 7.000 41.10 5,426.26 5,467.36 27 7" L-80 26# Casing BTC Mod 6.276 7.000 40.14 5,386.12 5,426.26 cent 287" L-80 26# Casing BTC Mod 6.276 7.000 41.59 5,344.53 5,386.12 29 7" L-80 26# Casing BTC Mod 6.276 7.000 41.59 5,302.94 5,344.53 307" L-80 26# Casing BTC Mod 6.276 7.000 41.10 5,261.84 5,302.94 31 7" L-8026# Casing BTC Mod 6.276 7.000 40.93 5,220.91 5,261.84 32 7" L-80 26# Casing BTC Mod 6.276 7.000 41.13 5,179.78 5,220.91 cent 337" L-80 26# Casing BTC Mod 6.276 7.000 41.06 5,138.72 5,179.78 347" L-80 26# Casing BTC Mod 6.276 7.000 40.97 5,097.75 5,138.72 35 7" L-80 26# Casing BTC Mod 6.276 7.000 41.58 5,056.17 5,097.75 36 7" L-80 26# Casing BTC Mod 6.276 7.000 41.30 5,014.87 5,056.17 37 7" L-80 26# Casing BTC Mod 6.276 7.000 39.75 4,975.12 5,014.87 cent 38 7" L-80 26# Casing BTC Mod 6.276 7.000 41.30 4,933.82 4,975.12 397" L-80 26# Casing BTC Mod 6.276 7.000 41.54 4,892.28 4,933.82 40 7" L-80 26# Casing BTC Mod 6.276 7.000 41.66 4,850.62 4,892.28 41 7" L-80 26# Casing BTC Mod 6.276 7.000 41.25 4,809.37 4,850.62 42 7" L-80 26# Casing BTC Mod 6.276 7.000 40.96 4,768.41 4,809.37 cent 43 7" L-80 26# Casing BTC Mod 6.276 7.000 41.43 4,726.98 4,768.41 KGSF #7a 7casinQ Page 1 of 3 ]9/23/2004--1 :57 PM /~ -- Item Jt Descì al'tion ID" OD" LENGTH TOP BTM. (in) (in) (ft) (ft) (ft) 447" L-80 26# Casing BTC Mod 6.276 7.000 39.08 4,687.90 4,726.98 45 7" L-80 26# Casing BTC Mod 6.276 7.000 41.58 4,646.32 4,687.90 46 7" L-80 26# Casing BTC Mod 6.276 7.000 40.44 4,605.88 4,646.32 477" L-80 26# Casing BTC Mod 6.276 7.000 40.44 4,565.44 4,605.88 cent 48 7" L-80 26# Casing BTC Mod 6.276 7.000 41.62 4,523.82 4,565.44 49 7" L-80 26# Casing BTC Mod 6.276 7.000 41.26 4,482.56 4,523.82 50 7" L-80 26# Casing BTC Mod 6.276 7.000 41.26 4,441.30 4,482.56 51 7" L-80 26# Casing BTC Mod 6.276 7.000 41.62 4,399.68 4,441.30 52 7" L-80 26# Casing BTC Mod 6.276 7.000 41.57 4,358.11 4,399.68 cent 537" L-80 26# Casing BTC Mod 6.276 7.000 41.68 4,316.43 4,358.11 54 7" L-80 26# Casing BTC Mod 6.276 7.000 41.00 4,275.43 4,316.43 55 7" L-80 26# Casing BTC Mod 6.276 7.000 41.38 4,234.05 4,275.43 56 7" L-80 26# Casing BTC Mod 6.276 7.000 41.71 4,192.34 4,234.05 57 7" L-80 26# Casing BTC Mod 6.276 7.000 41.64 4,150.70 4,192.34 cent 58 7" L-80 26# Casing BTC Mod 6.276 7.000 41.58 4,109.12 4,150.70 59 7" L-80 26# Casing BTC Mod 6.276 7.000 41.57 4,067.55 4,109.12 60 7" L-80 26# Casing BTC Mod 6.276 7.000 41.50 4,026.05 4,067.55 61 7" L-80 26# Casing BTC Mod 6.276 7.000 41.56 3,984.49 4,026.05 62 7" L-80 26# Casing BTC Mod 6.276 7.000 41.60 3,942.89 3,984.49 cent 63 7" L-80 26# Casing BTC Mod 6.276 7.000 41.27 3,901.62 3,942.89 64 7" L-80 26# Casing BTC Mod 6.276 7.000 41.58 3,860.04 3,901.62 657" L-80 26# Casing BTC Mod 6.276 7.000 41.43 3,818.61 3,860.04 667" L-80 26# Casing BTC Mod 6.276 7.000 41.63 3,776.98 3,818.61 67 7" L-80 26# Casing BTC Mod 41.58 "" 3,735.40 3,776.98 6.276 7 .000 cent 687" L-80 26# Casing BTC Mod 6.276 7.000 41.58 3,693.82 3,735.40 69 7" L-80 26# Casing BTC Mod 6.276 7.000 41.31 3,652.51 3,693.82 70 7" L-80 26# Casing BTC Mod 6.276 7.000 41.58 3,610.93 ' 3,652.51 71 7" L-80 26# Casing BTC Mod 6.276 7.000 41.20 3,569.73 3,610.93 72 7" L-80 26# Casing BTC Mod 6.276 7.000 41.14 3,528.59 3,569.73 cent 73 7" L-80 26# Casing BTC Mod 6.276 7.000 41.55 3,487.04 3,528.59 747" L-80 26# Casing BTC Mod 6.276 7.000 41.57 3,445.47 3,487.04 75 7" L-80 26# Casing BTC Mod 6.276 7.000 41.30 3,404.17 3,445.47 76 7" L-80 26# Casing BTC Mod 6.276 7.000 41. 60 3,362.57 3,404.17 77 7" L-80 26# Casing BTC Mod 6.276 7.000 41.54 3,321.03 3,362.57 cent 78 7" L-80 26# Casing BTC Mod 6.276 7.000 41.62 3,279.41 3,321.03 79 7" L-80 26# Casing BTC Mod 6.276 7.000 41.59 3,237.82 3,279.41 80 7" L-80 26# Casing BTC Mod 6.276 7.000 41.65 3,196.17 3,237.82 81 7" L-80 26# Casing BTC Mod 6.276 7.000 41.30 3,154.87 3,196.17 82 7" L-80 26# Casing BTC Mod 6.276 7.000 41.16 3,113.71 3,154.87 cent 83 7" L-80 26# Casing BTC Mod 6.276 7.000 41.61 3,072.10 3,113.71 847" L-80 26# Casing BTC Mod 6.276 7.000 41.41 3,030.69 3,072.10 85 7" L-80 26# Casing BTC Mod 6.276 7.000 41.36 2,989.33 3,030.69 86 7" L-80 26# Casing BTC Mod 6.276 7.000 41.58 2,947.75 2,989.33 87 7" L-80 26# Casing BTC Mod 6.276 7.000 41.60 2,906.15 2,947.75 cent 88 7" L-80 26# Casing BTC Mod 6.276 7.000 41.57 2,864.58 2,906.15 89 7" L-80 26# Casing BTC Mod 6.276 7.000 40.97 2,823.61 2,864.58 90 7" L-80 26# Casing BTC Mod 6.276 7.000 41.58 2,782.03 2,823.61 91 7" L-80 26# Casing BTC Mod 6.276 7.000 41.62 2,740.41 2,782.03 92 7" L-80 26# Casing BTC Mod 6.276 7.000 41.62 2,698.79 2,740.41 cent 93 7" L-80 26# Casing BTC Mod 6.276 7.000 41.58 2,657.21 2,698.79 94 7" L-80 26# Casing BTC Mod 6.276 7.000 41.58 2,615.63 2,657.21 95 7" L-80 26# Casing BTC Mod 6.276 7.000 41.87 2,573.76 2,615.63 96 7" L-80 26# Casing BTC Mod 6.276 7.000 41.15 2,532.61 2,573.76 97 7" L-80 26# Casing BTC Mod 6.276 7.000 41.48 2,491.13 2,532.61 cent 98 7" L-80 26# Casing BTC Mod 6.276 7.000 41.60 2,449.53 2,491.13 99 7" L-80 26# Casing BTC Mod 6.276 7.000 41.66 2,407.87 2,449.53 1007" L-80 26# Casing BTC Mod 6.276 7.000 41.38 2,366.49 2,407.87 101 7" L-80 26# Casing BTC Mod 6.276 7.000 41.34 2,325.15 2,366.49 102 7" L-80 26# Casing BTC Mod 6.276 7.000 38.55 2,286.60 2,325.15 cent 103 7" L-80 26# Casing BTC Mod 6.276 7.000 41.58 2,245.02 2,286.60 1047" L-80 26# Casing BTC Mod 6.276 7.000 41.57 2,203.45 2,245.02 105 7" L-80 26# Casing BTC Mod 6.276 7.000 41.38 2,162.07 2,203.45 1067" L-80 26# Casing BTC Mod 6.276 7.000 40.96 2,121.11 2,162.07 107 7" L-80 26# Casing BTC Mod 6.276 7.000 41.55 2,079.56 2,121.11 cent 1087" L-80 26# Casing BTC Mod 6.276 7.000 41.59 2,037.97 2,079.56 109 7" L-80 26# Casing BTC Mod 6.276 7.000 41.55 1,996.42 2,037.97 5' pup (7" casing) 6.276 7.000 5.00 1,991.42 1,996.42 K'~~F :tt7::\ 7~::\~inn Paqe 2 of 3 ]9/23/2004--1 :57 PM .~ Item Jt DesCl....tion ID" OD" LENGTH TOP BTM. (in) (in) (ft) (ft) (ft) 1107" L-80 26# Casing BTC Mod 6.276 7.000 41.55 1,949.87 1,991.42 111 7" L-80 26# Casing BTC Mod 6.276 7.000 41.55 1,908.32 1,949.87 1127" L-80 26# Casing BTC Mod 6.276 7.000 40.26 1,868.06 1,908.32 cent 113 7" L-80 26# Casing BTC Mod 6.276 7.000 40.80 1,827.26 1,868.06 1147" L-80 26# Casing BTC Mod 6.276 7.000 41.26 1,786.00 1,827.26 115 7" L-80 26# Casing BTC Mod 6.276 7.000 41.25 1,744.75 1,786.00 1167" L-80 26# Casing BTC Mod 6.276 7.000 41.06 1,703.69 1,744.75 117 7" L-80 26# Casing BTC Mod 6.276 7.000 40.60 1,663.09 1,703.69 1187" L-80 26# Casing BTC Mod 6.276 7.000 39.89 1,623.20 1,663.09 119 7" L-80 26# Casing BTC Mod 6.276 7.000 40.90 1,582.30 1,623.20 120 7" L-80 26# Casing BTC Mod 6.276 7.000 40.63 1,541.67 1,582.30 121 7" L-80 26# Casing BTC Mod 6.276 7.000 40.45 1,501.22 1,541.67 122 7" L-80 26# Casing BTC Mod 6.276 7.000 41.26 1,459.96 1,501.22 123 7" L-80 26# Casing BTC Mod 6.276 7.000 41.11 1,418.85 1,459.96 124 7" L-80 26# Casing BTC Mod 6.276 7.000 41.27 1,377.58 1,418.85 125 7" L-80 26# Casing BTC Mod 6.276 7.000 41.18 1,336.40 1,377.58 126 7" L-80 26# Casing BTC Mod 6.276 7.000 39.58 1,296.82 1,336.40 127 7" L-80 26# Casing BTC Mod 6.276 7.000 41.26 1,255.56 1,296.82 128 7" L-80 26# Casing BTC Mod 6.276 7.000 40.04 1,215.52 1,255.56 129 7" L-80 26# Casing BTC Mod 6.276 7.000 40.50 1,175.02 1,215.52 1307" L-80 26# Casing. BTC Mod 6.276 7.000 41.28 1,133.74 1,175.02 131 7" L-80 26# Casing BTC Mod 6.276 7.000 40.95 1,092.79 1,133.74 132 7" L-80 26# Casing BTC Mod 6.276 7.000 40.40 1,052.39 1,092.79 133 7" L-80 26# Casing BTC Mod 6.276 7.000 41.24 1,011.15 1,052.39 134 7" L-80 26# Casing BTC Mod 6.276 7.000 41.27 969.88 1,011.15 1357" L-80 26# Casing BTC Mod 6.276 7.000 41.26 928.62 969.88 1367" L-80 26# Casing BTC Mod 6.276 7.000 41.32 887.30 928.62 137 7" L-80 26# Casing BTC Mod 6.276 7.000 41.24 846.06 887.30 1387" L-80 26# Casing BTC Mod 6.276 7.000 41.28 804.78 846.06 139 7" L-80 26# Casing BTC Mod 6.276 7.000 41.17 763.61 804.78 140 7" L-80 26# Casing BTC Mod 6.276 7.000 40.37 723.24 763.61 141 7" L-80 26# Casing BTC Mod 6.276 7.000 41.26 681.98 723.24 1427" L-80 26# Casing BTC Mod 6.276 7.000 41.21 640.77 681.98 1437" L-80 26# Casing BTC Mod 6.276 7.000 40.52 600.25 640.77 144 7" L-80 26# Casing BTC Mod 6.276 7.000 41.27 558.98 600.25 1457" L-80 26# Casing BTC Mod 6.276 7.000 41.26 517.72 558.98 1467" L-80 26# Casing BTC Mod 6.276 7.000 40.40 477.32 517.72 1477" L-80 26# Casing BTC Mod 6.276 7.000 40.32 437.00 477.32 1487" L-80 26# Casing BTC Mod 6.276 7.000 41.28 395.72 437.00 149 7" L-80 26# Casing BTC Mod 6.276 7.000 40.34 355.38 395.72 1507" L-80 26# Casing BTC Mod 6.276 7.000 41.29 314.09 355.38 151 7" L-80 26# Casing BTC Mod 6.276 7.000 41.26 272.83 314.09 1527" L-80 26# Casing BTC Mod 6.276 7.000 41.24 231.59 272.83 153 7" L-80 26# Casing BTC Mod 6.276 7.000 41.17 190.42 231.59 154 7" L-80 26# Casing BTC Mod 6.276 7.000 40.97 149.45 190.42 155 7" L-80 26# Casing BTC Mod 6.276 7.000 38.27 111.18 149.45 1567" L-80 26# Casing BTC Mod 6.276 7.000 40.98 70.20 111.18 157 7" L-80 26# Casing BTC Mod 6.276 7.000 41.00 29.20 70.20 Pup jt below hanger 6.276 7.000 4.03 25.17 29.20 Hangr 0.43 24.74 25.17 RKB 24.74 (0.00) 24.74 X = Centralizers Placment (0.00) (0.00) Ran 25 Consentric Centralizers Notes: Pumped 25 bbls Mudpush XL Pumped 111 bbls Lead cement @# 12.8 ppg. Pumped 29 bbls Tail cement @ 15.8 ppg. Displaced and bumped plug with 3,600 psi. Tested for 30 minutes. And Test O.K. Witnessed By ; Tim Lawlor BLM. Hanger Tested T I 3,500psi. O.K. KGSF #7a 7casing Page 3 of 3 ]9/23/2004--1 :57 PM 345,,001 317.001 349,,001 ---Y¡~mile~adius around ~F IIi A [ëI~-injector- KGSF #7 A - straight hole Well SRU 43-28 within 1hFmne~ -KSSF #7 on edge of Y4 rriifeJ 21-27 -All wells posted at top 64-5 S"anc (injection target) + - » -I N N ~ ... .... -I t-Þ SRU 12-27 ~ -..J SRU 212-27 » G::I 0 ... KGSF7 ... G::I + 0 () G::I / <:::) ......>- ~ I Section 5RU 314:-27 Sec~ion s: + 2B 2-7 m ( SRU 43-28 Z K G~ F 7 R -I N + N . ~ .J::¡ ~ CJ1 m ~ co ~ .~ (S) 0 is) Ð ....... ~ 34S.ØP1 "34--1 Gß1 34S OØ1 =+t:: N STATE OF ALASKA ADVERTISING ORDER . SEEï:¡~TrqM F~RINVOICE ADDRESS F AOGCC R 333 W 7th Ave, Ste 100 0 Anchorage, AK 99501 )" NOTICE TO PUBLISHER \ INVOI .. ST BE IN TRIPLICATE SHOWING ADVERTISING ORDER N'1:TIFIED AFFIDAvIT OF PUBLICATION (PART2 OF THIS FORM) WITH ATTACHEu 00PY OF ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE ADVERTISING ORDER NO. AO-02414034 AGENCY CONTACT Jody Colombie PHONE DATE OF A.O. May 6, 2004 PCN M (907) 793 -1 ?? 1 DATES ADVERTISEMENT REQUIRED: ¿ Anchorage Daily News POBox 149001 Anchorage, AK 99514 May 7, 2004 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: Type of Advertisement X Legal D Display STOF0330 Advertisement to be published was e-mailed D Classified DOther (Specify) SEE ATTACHED SEND INVOICE IN 'TRIPLICATE AOGCC, 333 W. 7th Ave., Suite 100 . TO' . Anchorage, AK 99501 REF TYPE NUMBER AMOUNT 1 VEN DATE TOTAL OF PAGE 1 OF ALL PAGES$ 2 PAGES COMMENTS 2 ARD 3 4 02910 FIN AMOUNT SY CC PGM LC ACCT FY NMR DIST UQ 04 02140100 73540 2 3 4 REQUISITIONED BY: eyJlli\WV- \J DIVISION APPROVAL: 02-902 (Rev. 3/94) . ..,IL"', Jq F.:J '1 (', ''ilìf1.~ SC..,'\N'rìlE;.U ,llJr~ ,;.¿ iJ Lvu" Publisher/Original Copies: Department Fiscal, Department, Receiving AO.FRM ') ) Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: The application of Union Oil of California ("UNOCAL") for two revisions to Storage Injection Order No.2, which regulates the storage of methane in Swanson River Field Well KGSF #1 UNOCAL by letter dated March 30, 2004 and received by the Alaska Oil and Gas Conservation Commission ("Commission") on April 1, 2004, has requested the Commission to revise the maximum wellhead injection pressure specified in Rule Three of Storage Injection Order No.2 from 2850 psi to 3584 psig. Unocal also requested the Commission add an additional rule to Storage Injection Order No.2, providing for administrative approval of future modifications to operational constraints specified in the order. The subject well is located within Section 28, Township 8 North, Range 9 West, Seward Meridian and is used for the underground storage of gas into the Tyonek Formation within the Swanson River Unit. The Commission has tentatively set a public hearing on this application for June 17, 2004 at 9:00 am at the Alaska Oil and Gas Conservation Commission at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. A person may request that the tentatively scheduled hearing be held by filing a written request with the Commission no later than 4:30 pm on May 25, 2004. If a request for a hearing is not timely filed, the Commission may consider the issuance of an order without a hearing. To learn if the Commission will hold the public hearing, please call (907) 793-1221. In addition, a person may submit written comments regarding this application to the Alaska Oil and Gas Conservation Commission at 333 West ih Avenue, Suite 100, Anchorage, Alaska 99501 Written protests or comments must be received no later than June 8, 2004 except that if the Commission decides to hold a public hearing, written protests or comments must be received no later than the conclusion of the June 17, 2004 hearing. If you are a person with a d~. s~ ho may need special accommodations in order to comment or to a~ub'k ng, please C7ntact J y Colombie at (907) 793-1221 no laterthanM\~, (,4 . Jdm T. l~rman~ A~a Oil)¡(d Gas Conservation Commis.s.iQl1 Published: May 7, 2004 ADN: AO 02414034 t , : ") (, ) Anchorage Daily News Affidavit of Publication 1001 Northway Drive, Anchorage, AK 99508 ) PRICE OTHER OTHER OTHER OTHER OTHER GRAND AD#. DATE PO ACCOUNT PERDA Y CHARGES CHARGES #2 CHARGES #3 CHARGES #4 CHARGES #5 TOTAL 152257 05/07/2004 02414034 STOF0330 $189.80 $189.80 $0.00 $0.00 $0.00 $0.00 $0.00 $189.80 STATE OF ALASKA THIRD JUDICIAL DISTRICT Teresita Peralta, being first duly sworn on oath deposes and says that she is an advertising representative of the Anchorage Daily News, a daily newspaper. That said newspaper has been approved by the Third Judicial Court, Anchorage, Alaska, and it now and has been published in the English language continually as a daily newspaper in Anchorage, Alaska, and it is now and during all said time was printed in an office maintained at the aforesaid place of publication of said newspaper, That the armexed is a copy of an advertisement as it was published in regular issues (and not in supplemental form) of said newspaper on the above dates and that such newspaper was regularly distributed to its subscribers during all of said period. That the full amount of the fee charged for the foregoing publication is not in excess of the rate charged private individuals. Signed ~/1~f~ Subscribed and sworn to me before this date: m{!l 71 a DC) Ý Notary Public in and for the State of Alaska. Third Division. Anchorage, Alaska MY COMMISSION EXPIRES: J!u~¡J 11 /l \lU(({({((t: \\\ ~F.LV -4 I"I"~ :;4, \.\<.t..'0~ , . '. . ~ 'l L.U t/ ~~:.., h_",~~ ~ ~. ~Ooe~~;:.~~ , -' ÞtJ .- . :::~: tP fBL\C : ~ ~6 '. ~ "'''''''' #:.:~;:: -' :\'~" . ~ ~' ~:(:~ .."t .," ~:. ~ A~ . . ~':\' ~~.ì~~:~,...,"\ IIJ))J)J);))\' Notice of Public Hearing STATE OF ALASKA Ä.laskaOII and Gos Conservotion Commission I Re: The application of U "ion Oi (òfCalifOrn'ia . ("UNOCAL'" for two revision!; to Storage Iniection Order No.2, wnich regulates the storage of methane in Swanson River Field, Well KGSF n1 U N OÇALbylett~~dqt~d Mqn:h 30, 2004(]l)d re~ ce.ivedbY th~ Alaska Oil and Gas c.on~erVqti.9n I CommIssion ( "Ç9mmissio\1") on Apri I 1, 2004, has . requested the Commi!.sion to revise- Ihe maximum wellhead inie-ction pre-!.sure specified Ir1 Rule Three of Storoge Injection Order No.2 trom 2850 PSI to 358.1 PS,g. unocal olso requested the Commission (Add on ada; lionol rule to Storage I niection Order NO.2. providing for administrative opproval ot fu- .\Iure- fT1odifiC(ltlon!. to operotional constraints speci- fleet in Ine- order Th~ sûbiect well is located withinSection~.8, Township 8 North. Range 9 West, Se-word Mend- i(,n ond is used for tne Linderground Sloroge afgas inlo tne TyonE'k Formal,on wllhin the- Swo(1~oì'1 River Unit. Th~ C¿nõ,,-,i;;i,:",rih(1) t"Î;tt:1tE'~lyset a publich~ai'- in¡:¡ (Jr, II'", ,,,; r:,1 ,.:,;,1 ,,:,,', ,,,r Jo.on~ 17, 2004 at9:QO¡am at'n~ ..t<:I,h,; ':',¡ ùr,et <;':', ':ù",servation Comrnis- sion.af333West7th;"'7"".'~ ~,.';I~ lOr) t.nchIjI"CI';I;; Alaska 99501. A pers:,n <1'0':', r"l:Iu.;,1 rr,,)1 11'1'; '.;nlù' ¡;',..;I.>f.:h.;di.i'If.;j'h.?cr.r'l9 1.),; nt-I(J ú. 111.rl';J.) \1,,'11. I 1';'1'. t';':H."';,: I ,/\¡dt. In~ ,::':'I"ln'll~ ~;i:'I" rh:' lou:-r In.)n J ~Sl) r~.n'l I:'''. U\O r .. S JII,IJ If a requestf9ta hearing is not timelv fHed, the C9mmission may consider th~ issuance of an9r- de.r withauta h~aring. To I~arn if the, Commission will hold the public hearing, please call (90}) 793-1221. ' I naddition, 0 personmavstJb'mitwrittenc.°m. ments regarding this application to the Alaska Oil and Gas Cons~rvationCommission at 333 West 7th Avenue, Suit~100, Anchorag~, Alask( 99501 Writ. ten' pnJtests or,co~m~nts. rYl\J1>tl>e-recei v.ed,!,o, later than June 8, 20Ò4excepUhat if the Commis- sion decides to hold a public hearing, written pro- tests or c9rnments must be received no later than the conclusion of the June 17, 2004 hearing. \ If you are a person with a disability who may need special accommodations in order to com" ment or to attend the public h.earing, please con- tact Jody Colombie at (907) 793-1221 no later, than May 17, 2004. John K.Norman, Chair Alaska Oil and Gas ConservaHôn Commission ADN: AO 02414034 Publish: May 7, 2004 RECE\\IED M~ '( 2 1 L\)\)~ ~on\ff:¡SS\On .~ & Gas Coos. ~\as~a 0\ ~"t"o{age SCANNED JUN 2; 20 STATE OF ALASKA ADVERTISING ORDER :. SEE BOTTQM'FORINYO!CE;APDRE$S ) NOTICE TO PUBLISHER .'. ADVERTISING ORDER NO. INVOICI:: IVÍUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NL., JRTIFIED AO 0241403 4 AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COpy OF - ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE F AOGCC R 333 West 7th Avenue, Suite 100 0 Anchorage,AK 99501 M 907-793-1221 AGENCY CONTACT Jody Colombie PHONE (907) 793 -1 ?] 1 DATES ADVERTISEMENT REQUIRED: DATE OF A.O. May 6, ?004 PCN ¿ Anchorage Daily News POBox 149001 Anchorage, AK 99514 May 7, 2004 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: United states of America AFFIDAVIT OF PUBLICATION REMINDER State of ss INVOICE MUST BE IN TRIPLICATE AND MUST REFERENCE THE ADVERTISING ORDER NUMBER. A CERTIFIED COPY OF THIS AFFIDAVIT OF PUBLICATION MUST BE SUBMITTED WITH THE INVOICE. ATTACH PROOF OF PUBLICATION HERE. division. Before me, the undersigned, a notary public this day personally appeared who, being first duly sworn, according to law, says that he/she is the of Published at in said division and state of and that the advertisement, of which the annexed is a true copy, was published in said publication on the day of 2004, and thereafter for - consecutive days, the last publication appearing on the - day of , 2004, and that the rate charged thereon is not in excess of the rate charged private individuals. Subscribed and sworn to before me This - day of 2004, Notary public for state of My commission expires 02-901 (Rev. 3/94) Page 2 AO.FRM PUBLISHER SCÞ¡NNEL 9 f' (~.~ \';í RE: Notice ) ') Subject: RE: Notice From: legalads <legalads@adn.com> Date: Thu, 06 May 2004 11 :50:41 -0800 To': Jody Colombie <jody - colombie@admin.state.ak.us> Hi Jody: Following is the confinnation infonnation on your legal notice. Please let me know if you have any questions or need additional infonnation. Account Number: STOF 0330 Legal Ad Number: 152257 Publication Date(s): May 7, 2004 Your Reference or PO#: 02414034 Cost of Legal Notice: $189.80 Additional Charges Web link: E-Mail Link: Bolding: Total Cost to Place Legal Notice: $189.80 Ad Win Appear on the web, www.adn.com: XXXX Ad Win Not Appear on the web, www.adn.com: Thank You, Kim Kirby Anchorage Daily News Legal Classified Representative E-Mail: legalads@adn.com Phone: (907) 257-4296 Fax: (907) 279-8170 ---------- From: Jody Colombie Sent: Thursday, May 6, 2004 10:37 AM To: legalads Subject: Notice «File: Ad Order form.doc»«file: SI02InjPresHN.doc» Please publish the attached 5/7/04. lody SCA,~INEC ') ê r,,-'" "',t 1 of 1 5/6/2004 12:58 PM Notice Storage Injection Order #2 ) ') Subject: Notice Storage Injection Order #2 From: Jody Colombie <jody_colombie@admin.state.ak.us> Date: Thu, 06 May 2004 10:39:13 -0800 To: undisclosed-recipients:; Notice ) ') Subject: Notice From: Jody Colombie <jody - colombie@admin.state.ak.us> Date: Thu, 06 May 2004 10:38:26 -0800 To: undisclosed-recipients:; Please publish on-line. Jody Content-Type: applicationlmsword SI02InjPresHN .doc Content-Encoding: base64 c.¡, f'.. ') (ì DIll t~~ ~j '..'^ 1 ? 1 of 1 5/6/2004 10:39 AM Notice ') ') Subject: Notice From: J ody Colombie <jody - colombie@admin.state.ak.us> Date: Thu, 06 May 2004 10:37:13 -0800 To': Legal Ads Anchorage Daily News <legalads@adn.com> Please publish the attached 5/7/04. Jody Order Content-Type: application/msword Content-Encoding: base64 i Content- T)lpe: application.'ms\\'ord ; 'SI02InjPresHN .doc Content-Encoding: base64 C('" J~ 1f\} i\H::: ~", . ~ 'N 2 n '(~;!' ,,~lfð~"'~~e'~~:j~ ~~~,~g",:c) tJ ~J J \J ,,~J ((;. 1 of 1 5/6/2004 10:39 AM Citgo Petroleum Corporation PO Box 3758 Tulsa, OK 74136 Kelly Valadez Tesoro Refining and Marketing Co. Supply & Distribution 300 Concord Plaza Drive San Antonio, TX 78216 Jerry Hodgden Hodgden Oil Company 408 18th Street Golden, CO 80401-2433 Kay Munger Munger Oil Information Service, Inc PO Box 45738 Los Angeles, CA 90045-0738 Mark Wedman Halliburton 6900 Arctic Blvd. Anchorage, AK 99502 Ciri Land Department PO Box 93330 Anchorage, AK 99503 David Cusato 600 West 76th Ave., #508 Anchorage, AK 99518 James Gibbs PO Box 1597 Soldotna, AK 99669 Richard Wagner PO Box 60868 Fairbanks, AK 99706 Williams Thomas Arctic Slope Regional Corporation Land Department PO Box 129 Barrow, AK 99723 ) Mary Jones XTO Energy, Inc. Cartography 810 Houston Street, Ste 2000 Ft. Worth, TX 76102-6298 Robert Gravely 7681 South Kit Carson Drive Littleton, CO 80122 Richard Neahring NRG Associates President PO Box 1655 Colorado Springs, CO 80901 Samuel Van Vactor Economic Insight Inc. 3004 SW First Ave. Portland, OR 97201 Schlumberger Drilling and Measurements 3940 Arctic Blvd., Ste 300 Anchorage, AK 99503 Jill Schneider US Geological Survey 4200 University Dr. Anchorage, AK 99508 Jack Hakkila PO Box 190083 Anchorage, AK 99519 Kenai National Wildlife Refuge Refuge Manager PO Box 2139 Soldotna, AK 99669-2139 Cliff Burglin PO Box 70131 Fairbanks, AK 99707 North Slope Borough PO Box 69 Barrow, AK 99723 §r'A. ~U.'~.u. Er\ q iN. 'Þ [> 200\í' ~\a1 e~, !.:"~. \....,,~'I J ~.~i. (~I Q) , , " } 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 Baker Oil Tools 4730 Business Park Blvd., #44 Anchorage, AK 99503 Gordon Severson 3201 Westmar Cr. Anchorage, AK 99508-4336 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 /l7a 1/&:/ s/:¡;6ú/ ::t:I: ~ ') ) Unocal Alaska Union Oil Company of California P.O. Box 196247 Anchorage, AK 99519-6247 Telephone (907) 276-7600 Kevin A. Tabler Land Manager UNOCAL8 i,YttiÄ,WXW_:¡¡ ! r Alaska RECEIVED APR - 1 2004 March 30, 2004 State of Alaska Alaska 0;1 & Gas Cons. Commission Oil and Gas Conservation CommissiÞEhorage 333 West 7th Avenue Anchorage, Alaska 99501 Attn: Commission Chair John Norman Re: . Amend~d Stor~ge Inject~on Orde~ #2 Approved June 15,2001 Kenai Gas Storage Facility #1 Swanson River Field Dear Chair Norman: On May 2,2001, Union Oil Company of California (Unocal) made application of a gas storage pilot project within the boundaries of the Swanson River oil field. Unocal refers to this gas storage operation as the Kenai Gas Storage Facility #1. Unocal's gas storage project is intended to provide a certain stored volume of gas to meet peak rate requirements during seasonal high demand periods. The design is intended to have the capability of putting gas into the reservoir at maximum injection rates during low peak demand periods and withdrawing the gas at relatively high rates during peak demand periods. On June 15, 2001 the Alaska Oil and Gas Conservation Commission approved said application and established Rules 1 through 5 authorizing the underground storage of hydrocarbons by injection into the Tyonek Formation of the Swanson River Unit. Due to upgrades made to our compression and pipeline facilitites, we are requesting an amendment to Rule 3 of the Storage Injection Order #2 to allow us to increase the maximum wellhead injection pressure limit to 3584 psig. Leak off tests in new well penetrations in KGSF #2 (Attachment 1) and SRU 213-10 (Attachment 2) in the last three years show the fracture gradient to range from 0.80 (@ approximately 2,000' TVD) to 0.83 (@ approximately 6,100' TVD). ~CANNED JUN :2 ~~ 2DD4 ) Amended Storage Injection Order #2 Kenai Gas Storage Facility #1 Swanson River Field Page 2 ) Wellhead injection pressures will be maintained such that a gradient of 0.65 psi/ft at the target midperfreservoir depth of6395' TVD is not exceeded. This reservoir gradient limitation corresponds to the wellhead injection pressure of 3584 psig at 0 mmcfd injection rate. Any injection rate at or below 3584 psig wellhead injection pressure will result in a downhole pressure gradient below 0.65 psi/ft. Attachment 3 is a Nodal Analysis plot that complements this discussion and visually portrays what has been presented above. It also shows that the expected range of injection operations for KGSF #1 (shaded region) is well below the aforementioned fracture gradients. The proposed maximum injection pressure for this gas storage operation will not initiate fractures in the confining strata which might enable the injection or fonnation fluid to enter freshwater strata. A Pressure Safety Valve (PSV) will be installed to protect the Tyonek 64-5 sand. Original reservoir pressure in the Tyonek 64-5 sand in KGSF #1 is estimated at.3306 psi based on an initial shut-in tubing pressure measurement of2850 psi. Using the true vertical depth of 6395', said shut-in tubing pressure equates to an original pressure gradient of 0.52 psi/ft. Additionally, it is requested that a new Rule 6 (Administrative Approval) be added to Storage Injection Order #2 to facilitate and ease the administration of future changes. If you have any questions in regards to this request, please call me at (907) 263-7600, or Mr. Sam Atta-Darkwah at (907) 263-7864. Attachments £:.cere¡y, .. Ke~~.~ SC/\NNE!) JU~í ? C ¡:~, Pi,.l fJ). DATE: % 6/29/2002 I Pl.»mp Time Fowler/Hosey , ~IE!..D% Swanson River (min) 0 0 . KGSF #2 0.25 200 1.0 0.50 225 2.0 ~ 51/2" IN 0.75 350 3.0 17.0 LBS 1.00 575 4.0 N-80 1.25 850 5.0 7,740 PSI 1.50 1100 6.0 3,000 PSI 1.75 1325 7.0 3,000 PSI 2.~ 8.0 2.2 1800 9.0 CSG ~_, 6,057 FT 2.50 2000 10.0 CSG 0:::::"1":: \ 6,057 FT ~- ,.De",,\_ 6,070 FT -- ,-,-, 6,070 FT 1 u II VU1: FLUID 1 YfJl:::: Oil-Base i\IIW: 9.00 PPG :1;;); 0.25 BBLS ·v....... "" 0.25 BPM - 2,000 PSI ,- " LOT FIT ~ 15.35 PPG ·MS!.. 191.00 FT . MUD LINE FT I~~:~:~: 0.81 PSI/FT 15.61 PPG KGSF #2 Leak Off Test 6-29-02 ~ S: e " <II <II e Q. 2500 Pressure vs 2000 1500 1000 500 o 0.50 1.00 1.50 Volume (SSLs) 2.00 Pressure vs Time 2500 2000 1500 -;; S: e " <II <II e Q. 1000 500 o 5.0 10.0 15.0 Time (Minutes) 20.0 ATTACHMENT 1 2.50 25.0 3/23/20042:01 PM 3.00 30.0 [DATE% 7/23/2002 Strokosl Pump Time Fowler (BSLS) ...,,,.,,,,.., 11:11:::1 n. SRU (psI) (mi!1 ) ,--- II:»! 0 - 0 - ..,.." , ,..""." 'WElL% 213-10 0 0.13 140 0.5 0 0.25 280 1.0 SIZE: 7" IN 0 0.38 430 1.5 29# LSS 0 0.51 i 2.0 L-80 0 0.53 2.1 7,950 PSI 0 3.1 [MAX. - 3,450 PSI 0 560 4.1 !TEST 2,500 PSI 0 540 5.1 0 520 6.1 ""..., 1,987 FT 0 500 7.1 ..,...r ,n \ ' VU/; 1,805 FT 0 11:»1:1"1\· 2,025 FT 0 1,825 FT 0 ¡ II"'C: 6% KCL mud 0 9.60 PPG 0 0.13 SBLS : 0.25 BPM 600 PSI : FIT : 15.99 PPG i\IISl 15.83 FT .. MUD LINE - FT I~~: ¡G.: 0.84 PSI/FT EMW: 16.07 PPG Note: .0997 88LS/STRK SRU 213-10_7" Leak-offTest 700 600 500 ~ 400 S: e " <II to £ 300 200 100 o 0.10 0.20 0.30 0.40 0.50 0.60 Volume (I3BLs) Pressure vs Time 700 600 500 ~ 400 S: e " <II f 300 Q. 200 100 0 5.0 10.0 15.0 20.0 25.0 30.0 Time (Minutes) A TT ACHMENT 2 3/23/20043:00 PM 6000 5000 tn ...- 4 000 IJ1 p.¡ U) ¡::¡: p:: p.¡ 3000 ~ ~ S 2000 !:':4 1000 KGSF #1 - Expected Inj Lee Fld: Swanson Outflow Parameter ion Range PRES (psig WHD o o 5 10 FLOW 15 MMscfd 20 ATTACHMENT 3 WEM VIO.5.1 3 30/2004 Fluid properties : Gas Gr = 0.56 Water Gr = 1.06 WGR = 0.0 bbl/MM Wellbore Data : WHP = 2550.0 psig TVD = 6384.0 ft Corr =Beggs/Bril Csg/2.38/ 5103 Csg/7.00/10875 Reservoir Data Pr = 3291. 0 psig BHT = 122.0 deg F Perm = 204.0 md I Re = 900.0 ft Bit size= 6.125 in Hnorm = 8.0 ft Hmeas = 8.0 ft S 2.4 D = 0.10000E-04 d/MMscf 25 Storage Injection Order No.2 ') http://www.state.ak.us/Je.çal/akpages/ADMIN/ogc/orders/sio/si02.htm ) STATE OF ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7th Avenue Anchorage, Alaska 99501 Re: THE APPLICATION OF UNION OIL COMP ANY OF CALIFORNIA ("Unocal ") for an order authorizing the )Swanson River Field underground storage of ) Swanson River Unit Well hydrocarbons by #43-28 injection into the Tyonek reservoir in) existing well Swanson River Unit #43-28. )Storage Injection Order No. 2 ) ) ) June 15,2001 Note: The well name was changed on July 8, 2002. The new well name is KGSF #1. IT APPEARING THAT: 1. By application dated May 2, 2001, Union Oil Company of California ("Unocal") requested an order from the Alaska Oil and Gas Conservation Commission ("Commission") authorizing the underground storage of hydrocarbons by injection into the Tyonek Formation of the Swanson River Unit (SRU) #43-28 well, which is located in Section 28, Township 8 North, Range 9 West, Seward Meridian. Unocal proposes to inject gas for storage during the summer months and produce the gas for sales during winter months. 2. Notice of opportunity for public hearing was published in the Anchorage Daily News Anchorage Daily News on May 5, 2001 in accordance with 20 MC 25.540. 3. Cook Inlet Region, Inc. ("CIRI"), a royalty owner in the Swanson River Field, indicated support for the gas storage project in correspondence dated May 9,2001, but raised questions relating to the royalty and accounting obligations of the Operator. The Commission informed CI RI that those questions were outside the Commission's regulatory jurisdiction, and in any event Unocal informed the Commission that CIRI's concerns have been satisfied. 4. The Commission received no other comments concerning the application or requests for a public hearing. FINDINGS: 1. Unocal is the operator of the Swanson River Field. There are no other operators within a one-quarter mile radius of the existing SRU #43-28 well, the well bore to be utilized for the proposed for storage injection program. 2. Unocal has given notice of its application by certified mail to the surface owners within a one-quarter mile radius of the SRU #43-28 well. 10f4 5/5/2004 2:49 PM Storage Injection Order No.2 ) http://www.state.ak.us/1~cal/akpages/ADMIN/ogc/orders/sio/si02.htm ) 3. Unocal proposes to conduct dry gas storage injection within the existing SRU #43-28 well, between the measured depths of 6375 and 6443 feet in the 64-5 sand of the Tyonek Formation. 4. There are currently no other wells within one-quarter mile radius of the existing SRU #43-28 vertical well. 5. 40 CFR 147.1 02(b) provides that aquifers below 1700 feet from the surface and within a 1/4 mile of the Swanson River Field are exempted in accordance with 40 CFR 144.7(b) and 40 CFR 146.4. 6. Impermeable siltstone 107 feet thick, claystone and coal overly and provide upper confinement from adjacent Tyonek Formation sandstone for the 64-5 sand in the SRU #43-28 well. In addition, over 680 feet of shale confine the proposed storage injection interval from the base of the non-exempted aquifers in the SRU #43-28 well. Lower confinement is provided by over 290 feet of impermeable siltstone, claystone and coal. 7. Offset well control indicates the 64-5 sand is of limited lateral extent, such that injected gas will be confined to the pool into which it is injected. Four wells penetrate the sand in the proposed gas storage area: SRU #43-28, SRU #41-28, SRU #34-28 and SRU #41-33. Of these, only the SRU #43-28 penetrates the 64-5 sand in the gas column, and this well established the gas-water contact at approximately 6390 feet measured depth. 8. Calculated porosity for the 64-5 sand in the SRU #43-28 well ranges from 10% to 360/0. Average water saturation is estimated as between 51 % and 55%. 9. The SRU #43-28 well was recompleted in December of 1998 to test the 64-5 sand. The well. was perforated from 6380 to 6388 feet measured depth and produced dry gas at an initial rate of 3.0 mmcfd. Cumulative production from the 64-5 sand in SRU #43-28 was 1.31 bcf through March of 2001. 10. Material balance analysis of historical production and injection indicate an original gas in place of 1.55 bcf in the 64-5 sand, corresponding to 85°J'o recovery as of 2/28/01. This material balance analysis supports the conclusion that the interval proposed for gas storage is isolated from other strata. 11. The SRU #43-28 well is completed with 7 inch casing run and cemented to 10875 feet measured depth, with a stage collar located at 7114 feet measured depth. 12. A cement bond log was run on July 21, 1961, and it indicates the tops for the first and second stage cement at 9100 and 3675 feet measured depth, respectively. This log indicates good cement bond across the proposed gas storage interval and isolation between the injection strata and the remainder of the well bore. 13. SRU #43-28 meets the casing, cementing, and tubing criteria of 20 AAC 25.412. 14. The mechanical integrity of SRU #43-28 was demonstrated on May 15, 2001 in accordance with 20 AAC 25.412. 15. The fluid proposed for injection is predominantly methane produced from a liquid extraction plant for produced gas from the Hemlock Formation in the Swanson River Field. Specific gravity of the injected gas is expected to range from about 0.61 to 0.59 (air = 1.0). 20f4 5/5/2004 2:49 PM Storage Injection Order No.2 ') http://www.state.ak.Us!l)allakpageS/ADMIN/Ogc/orderS/SiO/Si02.htm 16. Estimated maximum daily injection volume is 10 mmcfd, and expected wellhead injection pressure is 2400-2600 psi. Proposed maximum injection pressures will be maintained less than the original wellhead pressure of 2850 psi. 17. If the maximum injection pressure is limited to the original wellhead pressure of 2850 psi, fractures will not be propagated in the confining strata, as thesandface injection pressure will be less than the original reservoir pressure of 3300 psi for the 64-5 sand in the SRU #43-28 well. CONCLUSIONS: 1. The proposed injection of natural gas into the SRU #43-28 well for the purpose of storage will not cause movement of hydrocarbons into sources of freshwater. 2. The proposed storage of natural gas in SRU #43-28 will not cause fluids to move behind casing beyond the approved storage zone. 3. The proposed storage of natural gas in well SRU #43-28 will not propagate fractures through the confining zones. 4. The proposed injection of natural gas into the SRU #43-28 well for the purpose of storage will not cause waste, jeopardize correlative rights, endanger freshwater, or impair ultimate recovery. ' NOW, THEREFORE, IT IS ORDERED that th.e following rules, in addition to statewide' requirements under 20 AAC 25 apply to the underground storage of hydrocarbons by injection in theSRU #433-28 well. RULE 1: STORAGE INJECTION The Commission approves the injection for storage of natural gas into the 64-5 sand of the Tyonek Formation, between the measured depths of 6375 and 6443 feet in SRU #43-28. The Operator shall report disposition of production and injection as required by of 20 AAC 25.228, 20 AAC 25.230, and 20 AAC 25.234. RULE 2: CONTINUED MECHANICAL INTEGRITY This approval is conditioned on the operator's demonstrating the continued mechanical integrity of SRU #43-28 in accordance with 20 AAC 25.252 (d), (e) and (t). RULE 3: MAXIMUM INJECTION PRESSURE The maximum wellhead injection pressure shall be limited to 2850 psi. RULE 4: ANNUAL MATERIAL BALANCE The operator shall annually provide to the Commission material balance calculations of the gas production and injection volumes to provide assurance of continued reservoir confinement of the gas storage volumes. This information shall be submitted no later than 60 days after each anniversary date of this order for the 12-month period ending on that anniversary date 30f4 5/5/2004 2:49 PM Storage Injection Order No.2 ) http://www.state.ak.us/1Qcal/akpages/ADMIN/ogc/orders/sio/si02.htm ) RULE 5: EXPIRATION OF APPROVAL As provided in 20 AAC 25.2520), if storage operations are not begun within 24 months after the date of this order, the injection approval will expire unless an application for extension is approved by the Commission. DONE at Anchorage, Alaska and dated June 15, 2001. Cammy Oechsli Taylor, Chair Daniel T. Seamount, Jr., Commissioner Julie M. Heusser, Commissioner StoraQe Injection Order Index 40f4 5/5/2004 2:49 PM JUN-08-2004tTUE 10:35 AM FAX NO. P. 01 ,I ,J! ' w UNOCAL8 FACSIMILE TRANSMITTAL SHEET Ii. . , ..-.. ,,- - .-.. TO: - JA-~ç WlLLlAM"SO)0 . . - . - ." , COMPANY: A-OGfc:.c. . . . , ." - ~.- -,,- FROM: .' . . . S~Vtç'~, }t-TT',A -- MR~Æ-l1 DA'fE; D b, I 0 ~ \ \) t..¡- , " . . ", . '~'" .. . '" ,. " FAX NUMBER¡ TOTAL NO. OF. :PAGES INCLUDmO COVER: . ~_o~~2~~.~C;lf-~._,._.._....,~ . '.' paONE NUMßB:ft.; SEND}SR>S REfEMN(;E NUM'ßB1t: . . - '1 01. - 1 9 ~ .--- ...1 2- ¿ ~- . " .. 'i 0 '( .-- z. ~3, ~ 11 b ~ - , , '. NoR: A WLJ.., ~ À YOUR REFaRBNCB NUMBER: , . ~,?,~~ J~~ ..~J~ ~~ ~~~rpf.~61t-, ~GBNT 0 FOR REVIEW 0 PLE:1\.S£ COMMENT [J PLR.ASB RaFL Y 0 PLEASE RECYCl..E NOTBS/COMMENTS; :r~r ~J pl~ s e...tÆ 1J ?, - ) 0 ~.J ¡J M/ft~ ~ ~fl ~- ~ ~i7 '7~j ;;.w ~ ~~fA---.uz.. ~~~ ~S 4wt . ~-}.oV ~..jJ-- ?.. b 1-:tg h Lf R~ " . ~CEIVED JUIv' h u '/~Qï&G,s. . ~~::.~ [CLfCI< HERE AND TYPE RETURN ADPRESSj . -'" - .. - -. ... I.' Preaure \IS voium. SRU 213-10 700 1." Leak-olf Test ~ UNOCAL8 2025' MDI1821'1VD , t eoo , . -- . ! ; " 0.J DATE: 7I23l2OO2 . Strokes J Volume rump time I' I~~ c::> C) ~.FOREMAH Fowfer Pumped Pntuure !GO ~ - I -- ,C) 0- FIELD: SRU (IllS) 4 (pal) (mln) C"'J " t:Y~i PLA1'fORM: o . o. - WEU...: 213-10 0' 0.13 140- 0.5 1400. ..... ~ . .~'=. o. 0.25. 2SO:. 1.0:) I. .Z <.-..., 0\ r;-."'';' .'&IZE; r IN 0.38' 430' 1.5" ~) I ,-WE1GHT: 29# l8S i O' . 0.51 580 2.0 ill ~: l..sÐ 0 0.53. 600 2.1 BURST: 1,950 PSI 0\ 5BO 3.1~ 2œ "Z ..... ~--. . ; t~ .IIIAX. PRESS: 3,450 PSt 0" ~. 4.1 - ~ 4 ."'\" 2.500 PSI o~ - Q ...TEST PRESS: - 540 5.1 . 1OG.' -- , w 0'" 520 6.1 , ~ CSG DEPTH f8J: 1.987 FT 0 ~. 7.1 C8G DEPTH fI'VD): 1.805 FT 0 0 ;, ~ - 0.10 0.20 Q;3 ) G.AQ 0.510 Go- J d ~ (MEASURED): 2,025 FT O. ~ Y-..(8IAt :z: ."".1'I)(I'VD): 1.825 Fr O. "1.. :::x::: FWIÐ TYPE: 6% KCl mud 0, <I: t.L- VII: .. 9.60 PPG 0- PNIsInvs 111M 'IHCREIENTS: 0.13 BBLS " 1P(8Þ IN RATE: 0.25 SPM ~ 700 .. "II LUKOFF(GRAPtf): 600 PSI ~ LOT OR FIT?: F1T ." -me GRAD: 0.832 PSIIFT ~ eoo ElM: 15.99 PPG . '( ~ sœ J:-_L 15.83 FT ~ KB - MUD LINE .. FT ': = FG.: 0.84 PSWT ~ ¡.tOO EMW: f6.07 PPG ß , ., ~ ~300 ~ ~ ~ - ~ LO " 200' m - - c::> .......... " j , [..1.J 1GO . ::::;. E- ~",! C) o. c::> , ~ I 0.J . - 5..0 10.0 16..0 2Q.0 25.0 30.0 I co I ' 111M (8l1li8) c::> ~ Note: .0997 SSlSlSmK I :z: SRU21$-10- r Leak-t:«Test ATTACHMENT 2 ::::;. >---:I
