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Home My WebLink About202-178 Image F)ject Well History File C{>~r Page XHVZE This page identifies those items that were not scanned during the initial production scanning phase. They are available in the original file! may be scanned during a special rescan activity or are viewable by direct inspection of the file. ::¿(2~ - L 7-1i Well History File Identifier Organizing (done) 0 Two-sided 1111111111111111111 ~escan Needed I RESCAN ~olor Items: 0 Greyscale Items: DIGITAL DATA OVERSIZED (Scannable) 0 Maps: D Diskettes! No. D Other! NolType: D Other Items Scannable by a Large Scanner 0 Poor Quality Originals: OVERSIZED (Non-Scannable) 0 Other: D Logs of various kinds: NOTES: BY: Helen ~ D Other:: , Date: I :1..5" 05' 151 VI1 P Date: 1'~/()5" I/s/l141r ~~ x 30 = Q 0 +)5 =TOTA~ PAGES Ct1J I (Count ddes Mt .,clude cover shlet) IMP Date: I ~b ()5 151 v' f Project Proofing BY: Helen F'J Scanning Preparation BY: Helen ¡:;;;;;) Production Scanning I BY: Helen ~ Page Count from Scanned File: q q (Count does include cover sheet) Page Count Matches Number in Scanning Preparation: ~... YES NO ., , Date: I d--'~ OS 151 . . YES NO mp Stage 1 Stage 1 BY: If NO in stage 1! page(s) discrepancies were found: Helen Maria Date: 151 I I - I I Date: 151 Quality Checked 1111111111111111111 Scanning is complete at this point unless rescanning is required. ReScanned BY: Helen Maria Comments about this file: ...r f e e MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission TO: Jim Regg 1?"'~ š/tCtf,OG P. I. Supervisor é:? 1 DATE: May 8,2005 ~.1'6 FROM: John Spaulding, Petroleum Inspector SUBJECT: Location Clearances Pioneer Unit Pioneer Natural Res. The following wells in the Pioneer Unit were inspected for location clearances: Bering 03 PTO: 202-177 vBaranoff 04 PTO: 202-178 Cook 01 PTO: 202180 Lowell 02 PTO: 202-179 1702-14CC PTO: 199-065 1702-150A WOW PTO 199-064 S("¡'¡;"'¡¡"i¡;:!~i ¡¡ q,! < " '-' "'1 'Ii! If,~~ I~-"i to.J' J ~ \ .1. """;: 1702-1500 PTO: 199-066 Cornhusker 04 PTO: 202-181 RL Smith 03 PTO: 202-182 OL Smith 01 PTO: 202-184 Stromberg 02 PTO: 202-183 BL T 01 PTO: 199-068 All locations were found to be in excellent shape, well graded with some small amounts of debris. I requested that the debris be cleaned up and Joe Polya Pioneer Nat. Resources rep. agreed. He will inform as to when the final cleanup has been made so that I may make one last pass over the locations. SUMMARY; I found all locations in very good condition with small amounts of tidying up to be done. Attachments: photos on CD NON-CONFIDENTIAL ...I' t Wen location off Church Road in Wasilla =\I=I~GI~==I'I RESOURCES (ALASKA) CORP.~ A Subsidiary af Evergreen Resources, Inc. . June 23, 2004 €}b'}-lT?r Mr. Bob Crandall Alaska Oil and Gas Conservation Commission 333 W. 7th Ave #100 Anchorage, Alaska, 99501-3539 RE: Evergreen Resources (Alaska) Corp.'s 2004 Core Program Dear Mr. Crandall: The purpose of this letter is to fulfill the reporting requirements of Evergreen Resources (Alaska) Corp. as stipulated by 20AAC25.070 and 20AAC25.071 for the wells drilled in Pilot #2. Attached are the drilling summaries, logs and other pertinent information for the Lowell #2, Bering #3 and Baranof #4. Drilling operations have been completed, but these wells have not been completed. These three wells are shut in; an evaluation of coals in the upper section of the hole is ongoing to determine the viability for completion and production testing. Several pressure tests were conducted on the Bering #3. There is one set of perforations open from 3382-3386. The graphs of those tests have been included. If you have any questions, please feel free to contact me at 907-357-8130 or shaneg@everqreenqas.com. I I Sincerely, I~ I Shane Gagliardi I Petroleum Engineer I I I I I I I SCANNED SEP 082005 10ì5 Check Street, SUite 202 . Wasilla AK 99654 PO Box 8ì1845 . Wasilla, AK 9968ì . TEL 90739.8130 . FAX 90ì.35ì8340 RECEIVED =\'=llGll==I~1 C ( 5 0 JUN 252004 I! ¡asks Oil & Gas Cons Commisaiofl RESOUR ES ALA KA) C RP. i,,,, . . .¿:') A SubsIdiary of Evergreen Resources, Inc. . Cook #1 Lowell #2 Bering #3 Baranof #4 DL Smith #1 Stromberg #2 RL Smith #3 Cornhusker #4 API 50-009-20022-00 50-009-20021-00 50-009-20019-00 50-009-20020-00 50-009-20026-00 50-009-20025-00 50-009-20024-00 50-009-20026-00 Permit to Drill # 202-180 202-179 202-177 202-178 202-184 202-183 202-182 202-181 Survey Type Sure Shot Model A Sure Shot Model A Sure Shot Model A Sure Shot Model A Sure Shot Model A Sure Shot Model A Sure Shot Model A Sure Shot Model A Inclination Inclination Inclination Inclination Inclination Inclination Inclination Inclination Survey Date 12/5/2002 11/6/2002 12/5/2002 11/3/2002 12/5/2002 12/5/2002 12/5/2002 12/5/2002 Conductor 12-3/4 245 200 275 300 320 360 420 415 Surface 8-5/8 384 381 400 513 1038 1020 1016 539 . PBTD 3670 3238 3688 3697 2487 2492 2191 2577 WellTD 3740 3750 3753 3750 2510 2510 2300 2600 Measured Depth 250 0.5 0.5 1 1 1 2 300 0 500 1 7 4 3.5 0.5 4 1000 5 8 14 7 13 14 5 6 1500 10 8 13.5 14 10 8 1750 10 14 2000 9 10 14 14 14 11 2070 14 2465 14 2491 14 2500 10.5 11 14 10 3000 9 9 3250 11.5 14 3500 8 3665 13 3680 14 Surveying Compnay Patterson Wireline Survey Conducted By: Pat Patterson Owner Signature Date C· ·elVED RE C'I. ')"Q',,* /' \ I '~'I -¿¡¡ _.~,'-' -, .' ·';::(¡.,H e e MICROFILMED 07/25/06 DO NOT PLACE ANY NEW MATERIAL UNDER THIS PAGE F:\LaserFiche\CvrPgs _ Inserts\Microfilm _ Marker.doc ST AïE OF ALASKA _ ~1 ALASKA aND GAS CONSERVATION COMMISSI~ WELL COMPLETION OR RECOMPLETION REPORT ANDClCbt7LOU5 1a. Well Status: OilO GasO Plugged 0 Abandoned 0 / Suspended 0 WAG 0 1b. Well C~~a Oil & ~at Cons. (ifr mi 20AAC 25.105 20AAC 25.110 Developm . .' x~lorato~ ../ --- GINJO WINJO WDSPL 0 ¡µ,jS~~~rM No. of Completions Other Service 0 Stratig ~I ~ 0 2. Operator Name: 5. Date Comp., Susp., or 12. Permit to Drill Number: Pioneer Natural Resources Alaska, Inc. Aband.: Aug 14, 2005 202-178·/ I\;. 3. Address: 6. Date Spudded: 13. API Number: 700 G Street, Suite 600 Anchorage, AK 99501 September 23, 2002 50-009-20020-00 / 4a. Location of Well (Governmental Section): 7. Date TD Reached: 14. Well Name and Number: Surface: 504' FSL, 423' FEL, Sec 30, T18N, R1W, SM October 31, 2002 Baranof #4 /' Top of Productive Horizon: 8. KB Elevation (ft): 15. Field/Pool(s): Same 406 Total Depth: 9. Plug Back Depth(MD+ TVD): Pioneer Unit Same Surface 4b. Location of Well (State Base Plane Coordinates): 10. Total Depth (MD + TVD): 16. Property Designation: Surface: x- 1725008 y- 2782617 (NAD 83) Zone- 4 3750' MD, TVD ADL 384685 TPI: x- Same y- Same Zone- 11. Depth Where SSSV Set: 17. Land Use Permit: Total Depth: x- Same y- Same Zone- NA NA 18. Directional Survey: Yes o No 0 19. Water Depth, if Offshore: 20. Thickness of Permafrost: NA feet MSL NA 21. Logs Run: None 22. CASING, LINER AND CEMENTING RECORD WT. PER SETTING DEPTH MD SETTING DEPTH TVD AMOUNT CASING FT. GRADE TOP BOTTOM TOP BOTTOM HOLE SIZE CEMENTING RECORD PULLED 12.75 NA NA Surface 300 Surface 300 16" 30 sx cement None 8.625 23 J-55 Surface 513 Surface 513 11" 50 bbls class G None 5.5 17 K-55 Surface 3724 Surface 3724 7-7/8" 175 bbls classG None 23. Perforations open !cLE,rQ,gy,çiiQn (MD + TVD of Top and Bottom 24. TUBING RECORD Interval, Size and Number; if none, state "none"): SIZE DEPTH SET (MD) PACKER SET (MD) None 25. ACID, FRACTURE, CEMENT SQUEEZE, ETC. DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED \0 5CANNEL f' 1 ~ 2005 4- bhlc. l'1AAroJa,ctrl, W41\- lie' f 26. PRODUCTION TEST Date First Production: Method of Operation (Flowing, gas lift, etc.): Date of Test: Hours Tested: Production for Oil-Bbl: Gas-MCF: Water-Bbl: Choke Size: IGaS-Oil Ratio: Test Period ... Flow Tubing Casing Press: Calculated Oil-Bbl: Gas-MCF: Water-Bbl: Oil Gravity - API (corr): Press. 24-Hour Rate ... 27. CORE DATA Brief description of lithology, porosity, fractures, apparent dips and presence of oil, gas or water (attach separate sheet, if necessary). Submit core chips; if none, state "none". None OR\G\NAl ,,-1_ Oø Mil r ~ t '.A r" r :uJ--.Ðf V (ð>{f~n4 Form 10-407 Revised 12/2003 CONTINUED ON REVERSE ssion ...1 hI(' " V'"""". \ 0 ~ \vJ \ æ~ NAME GEOLOGIC MARKERS MD 29. /" "'ORMATION TESTS 28. TVD Include and briefly sum e test results. List intervals tested, and attach detailed supporting data as necessary. If no tests were conducted, state "None". None 30. List of Attachments: Final Well Schematic, Operations Summary 31. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Printed Name: Joe Polva Signature: Title: Sr. Staff Drilling Engineer Phone: 907-343-2111 Date: INSTRUCTIONS General: This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Alaska. Submit a well schematic diagram with each 10-407 well completion report and 10-404 well sundry report when the downhole well design is changed. Item 1a: Classification of Service wells: Gas Injection, Water Injection, Water-Alternating-Gas Injection, Salt Water Disposal, Water Supply for I njection, Observation, or Other. Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPI (Top of Producing Interval). Item 8: The Kelly Bushing elevation in feet above mean low low water. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits (ex: 50-029-20123-00-00). Item 20: True vertical thickness. Item 22: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 23: If this well is completed for separate production from more than one interval (multiple completion), so state in item 1, and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval). Item 26: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut-in, or Other (explain). Item 27: If no cores taken, indicate "none". Item 29: List all test information. If none, state "None". Form 10-407 Revised 12/2003 e e Pioneer Natural Resources Alaska, Inc. Pioneer Unit Baranof #4 Plug and Abandonment Operations Summary July 21, 2005 Rig up bleed offline on Baranof#4 well, open 5.5 inch valve on top of well, well on slight vacuum. Set 5.5 inch wiper plug in 5.5 inch casing at 165 feet below grade. RIH with cementing hose to 165 feet. Mix and pump 3.8 bbl, 15 ppg Type I cement surface plug in 5.5 inch casing. Shut in well. July 24, 2005 Dug out cellar to 7 feet below grade. July 27, 2005 Cut off wellhead at 5 feet below pad level. July 29, 2005 Performed minor top job on well with less than 2 feet of cement at surface. August 9, 2005 Matt Rader of ADNR and Chuck Sheve of AOGCC inspected well for final P&A. August 14, 2005 Installed marker plate on well. Backfill to be completed when surface equipment removed. - I - Pioneer Natural Resources Alaska, Inc. Baranof #4 Plug and Abandonment Photos Photo 1: Baranof#4 with circulating spool installed.. -2- Photo 2: Vacuum removal of cellar water at Baranof#4.. - 3 - -4- PBTD -3644 e e Pioneer Unit Baranof #4 Final Well Schematic 3 2 Qtr/Qtr See 30 Pioneer Natural Resources Alaska, Inc. Twp 18N Rng 1W Date 3/27/2003 Status Current Size Weight Grade Depth County Matanuska,Susitna State Alaska Casing 8-5/8 23 J-55 513 Field Pioneer Unit Country USA Casing 5-1/2 17 J-55 3724 Tubing No. Depth Length 00 10 Description 1 165 0.5 4.9 o Wiper pluQ 2 164.5 164.5 4.9 0.000 Cement surface plug 3 Well cutoff 5 feet below ground level. Created by STG 3/30/03 Modified by JRM 9/11/05 - e MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission TO: Jim Regg, K;cf(J 1(lbloç DATE: P. I. Supervisor tf July 29, 2005 FROM: Chuck Scheve, SUBJECT: Petroleum Inspector Surface Abandonment Pioneer Unit Lowell #2 PTD# 202-179 Baranof #4 PTD# 202-178 Bering #3PTE» 202-177 Cook #1 PTD# 202-180 Friday, July 29,2005: I traveled to Pioneer's Coal Bed Methane exploratory locations to inspect the casing cut off and abandonment of the above listed wells. All casing strings on the above listed wells were cut off at approximately 5' below original ground level. The Lowell 2, Baranof 4 and Bering 3 wells were found full of cement to within 18" of surface in all strings and will be topped off prior to installation of the marker plates. The Cook 1 well had cement to surface in all strings except the tubing by production casing annulus. 150' of Y2" pipe was run in this annulus and I witnessed cement circulated back to surface. The marker plates with the required information bead weldecHê)'them"were on location ánifwilfbe wèìé:fê'd ìô'lilé=õuter most casing. SUMMARY: I inspected the casing cut off depth, and the P&A marker plates on the Lowell 2, Baranof 4, Bering 3 and Cook1 wells and found all to be in order. Attachments: Lowell 2.JPG Baranof 4.JPG Bering 3 .JPG Cook 1 .JPG :)t;/\NNEL. C? 2DC:] - e Pioneer Unit Suñace Abandonments Photos by AOGCC Inspector Chuck Scheve July 29,2005 >;.~ ~~?!~~' ~ ," . .. ., ~~ '. ~-::;:._.~-~~ :.... .~.,. -.It . . . ~'~.~'- ~, Íò\/ " 'Ii $> ~ ~. .. ,~ -I<- ~P. ~ .;;~ 5" ..,;;~~::;:.,~; .~..~<~. " . '."r' ,~ ~ "':' ~~"~C--".~i, . ;, . ..... "'.. .' .. -,. '~. .. . '., ..~, ~ . ..,,'~ I,..' ~..,"_: _.', :j, _ .- ..,., ,"'- .' - Baranof #4 Casing Cut and Marker Plate Bering #3 Casing Cut and Marker Plate 2 e ..- . A. .; i ". ir " ."i....- '. ',. <.~~ 'f"~ '''' .~ '~'~'h~~~~..~. ...... . ....., ":<.~ . k' _ê~:~1:'-.. .'~; ...[~. .:.o<,~.~.". ''''~~' ;'.........',~,', . . f1I!It\i',~ . ....¡¡. "!f4~ :",. ,~-,c; ~ ~'! e , ~ . 't¡( Xi?:,;:': c, " ~~r .:: iP Cook #1 Casing Cut and Marker Plate Lowell #2 Casing Cut and Marker Plate .., -' 'CQJ if %)j\' ~ Î~r \rÜ':Q)"'~:-'," :, iJi, ,,{/iJ \ i ¡,' I:, ¡ \ j I ¡, , "I! I.: ~ fit ¡. I m \ Ll w ') ¡,¡T~, I ') Ie ~/M I-¡ !N\', (~I)' ~7/ fÁ/)~ \ III i!·::J dJ~ i l !U~,'\\ 1[, \ i1J" I I ' I I " \ I ,I., \', ! \! ~ \~ \~,:J Uu Lb LruJ cD) l : ~ ~rl,~ ) AI/llSKA. OIL AlWD GAS CONSERVATION COMMISSION / ./ j / .) / ./ / I FRANK H. MURKOWSKI, GOVERNOR Joe Polya Sr. Staff Drilling Engineer Pioneer Natural Resources Alaska, Inc 700 G Street Ste 600 Anchorage, AK 99501 333 W. -¡rH AVENUE, SUITE 100 ANCHORAGE. ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 QÞd--I--~ Re: Baranof#4 305-187 SC!\NNED ,JtJL 2 0 2005 Dear Mr. Polya: Enclosed is the approved Application for Sundry Approval'relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. Please provide at least twenty-four (24) hours notice for a representative of the Commission to witness any required test. Contact the Commission's petroleum field inspector at (907) 659-3607 (pager). As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. A person may not appeal a Commission decision to Superior Court unless rehearing has been requested. DATED this I~ay of July, 2005 Encl. ) ) July 13, 2005 ¡O~ n~ Mr. Winton Aubert Alaska Oil and Gas Conservation Commission 333 W. 7th Ave #100 Anchorage, Alaska, 99501-3539 RE: Sundry Approval (Form 10-403) Pioneer Unit - Baranof #4 Well Plug and Abandon Dear Mr. Aubert: Attached is the 10-403 form requesting approval to Plug and Abandon the Baranof #4 well. Pioneer Natural Resources acquired the Pioneer Coal Bed Methane Project through the acquisition of Evergreen Resources Corporation. Evergreen Resources attempted various stimulation techniques in an effort to produce the methane from these wells; however, the wells did not prove economical. Pioneer has determined that this project is not economically feasible at this time based on a thorough evaluation which included peer assists with experts involved in the profitable coal bed methane projects in Colorado and Canada. Pioneer is requesting a BOP waiver for the proposed Baranof #4 P&A work. This well can be killed with fresh water and has been granted BOP waiver's in the past by the AOGCC. j;,- If you have any questions, please feel free to contact me at 907-343-2111 or polvaj@pioneernrc.com. 1 ~'\..tA..l~~Q. 4, \ -'þ No W cV ".L/ Sincerely, y,.J 6rr- ~~- Joe Polya Sr. Staff Drilling Engineer Pioneer Natural Resources Alaska, Inc. 700 G Street, Suite 600 Anchorage, AK Or~IG!NAL Abandon lJ Alter casing 0 Change approved program 0 2. Operator Name: Pioneer Natural Resources Alaska, Inc. 3. Address: 1. Type of Request: .. STATE OF ALASKA 02J.- 7-IS ~ ALA.... lOlL AND GAS CONSERVATION COMMk...J~ON APPL,CATION FOR SUNDRY APPROVAL / 20 AAC 25.280 Suspend U Operational shutdown U Repair well 0 Plug Perforations 0 Pull Tubing 0 Perforate New Pool 0 4. Current Well Class: \1'-' 6l\-' "17ìif/z(Jo) -??~ RECEIVEO ~ JUL 1 3 2005 Development Stratigraphic o o Perforate U wA~Oil & Gas œfiJI Cdmmissi( Stimulate 0 Time Extension 0 Anchorage Re-enter Suspended Well 0 / 5. Permit to Drill Number: Exploratory 121 202-178 // O 6. API Number: /' 50-009-20020-00 Service 700 G Street Suite 600 Anchorage, AK 99501 7. KB Elevation (ft): 408 ft KB 8. Property Designation: ADL 384685 11. Total Depth MD (ft): 3750' Casing Structural Conductor Surface Intermediate Production Liner Perforation Depth MD (ft): None Packers and SSSV Type: Length n/a 300 feet 513 feet o feet 3724 feet n/a Perforation Depth TVD (ft): None None Total Depth TVD (ft): 3750' 9. Well Name and Number: Baranof #4 /' 10. Field/Pools(s): 610500 PRESENT WELL CONDITION SUMMARY Effective Depth MD (ft): Effective Depth TVD (ft): 3697' 3697' Junk (measured): None Collapse n/a NA 1370 psi o psi 4910 psi n/a Plugs (measured): None Size MD TVD Burst n/a n/a n/a n/a 12.750 inches 300 feet 300 feet NA 8.625 inches 513 feet 513 feet 2950 psi 0.000 inches o feet o feet o psi 5.500 inches 3724 feet 3724 feet 5320 psi n/a n/a n/a n/a Tubing Size: None Tubing Grade: N/A Packers and SSSV MD (ft): Tubing MD (ft): N/A None 12. Attachments: Description Summary of Proposal U Detailed Operations Program 121 BOP Sketch 0 14. Estimated Date for Commencing Operations: 16. Verbal Approval: 7/19/2005 Date: 13. Well Class after pro~ed work: Exploratory 121 /' Development 0 Service 0 15. Well Status after proposed work: / Oil 0 Gas 0 Plugged 121 Abandoned 121 WAG 0 GINJ 0 WINJ 0 WDSPL 0 Commission Representative: 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Joe Polya Printed Name Joe Polya Title Sr. Staff Drilling Engineer Signature ~~1"'- Phone 907-343-2111 Date Q1V?..DO~ ~ \, COMMISSION USE ONLY -11-Ju1-0~ ~ Conditions of approval: Notify Commission so that a representative may witness Sundry Number: :?O?/K"7 Plug Integrity D Other: BOP Test 0 Form 10-403 Revised 11/2004 Mechanical Integrity Test 0 Location Clearance [!( R8DMs 8FL JUL 1 ;¡, ZD05 COMMISSIONER APPROVED BY THE COMMISSION Date: iftfr r~\ , f \.~...: ('" ; C"¡ r -,.,. \ l._ Submit in Duplicate ) ) Pioneer Natural Resources Alaska, Inc. Plug and Abandon Procedure Pioneer Unit Baranof#4 Well The Baranof #4 well was drilled in the fall of 2002 and has been suspended since drilling of the well. The well has 12-3/4 inch conductor to 300 feet, 8-5/8 inch surface casing at 513 feet and 5-1/2 inch production casing set at 3724 feet. Both the 8-5/8 inch and 5-1/2 inch casing strings have been cemented back to surface. The 5-1/2 inch casing was also cemented with a float collar and cement wiper plugs. No perforations were made in the well and no tubing is present. Attachment 1 shows the current Baranof #4 well diagram. Pioneer Natural Resources Alaska, Inc. (Pioneer) proposes the following P&A procedure to plug the well in accordance with AOGCC regulations. Based on previous reports, the well can be killed easily with fresh water and BOP waivers have been granted by the AOGCC in the past for work on this well and other similar nearby wells. Pioneer hereby requests a BOP waiver for the operations described below. The proposed final Baranof #4 well diagram is presented in Attachment 2. I. Verify all permit paperwork is in place and give AOGCC 24 hour notice of intent to begin well work operations and intent to cement well and give AOGCC representative chance to witness same. Obtain BOP waiver before starting work. 2. Mobilize necessary equipment and personnel to location. 3. Install circulating head on 5 inch Demco valve on top of 5-1/2 inch casing for / fluid recovery. Open valve slowly in case well is not dead. Bleed off any gas or fluid to open top tank. 4. Insert 5-1/2 inch casing wiper plug into casing and shove to 165 feet BGL with a weighted setting bar on a sheve. POOH with setting bar. 5. RIH with cementing hose to top of wiper plug at 165 feet BGL. 6. Rig up batch cement mixer. Mix and set a 15 ppg, Type I cement plug in the top 165 feet of the well. POOH with cement hose. Clean up cementing equipment and recover cement rinsate for disposal in sanitary sewer or for use in injection test on future wells in the P&A program. WOC. 7. Excavate around casing to minimum six (6) feet below existing ground level. Install guillotine saw on well and cut off well a minimum of 5 feet below grade or original ground level, whichever is deeper. Remove wellhead for backhaul to D&J yard. Top off any unfilled annuli with cement. Collect photo documentation of surface cement and cutoff well. baranof #4 p&a procedure.doc - 1 - 7/13/2005 ) ) 8. Weld on well ID marker plate (1/4" x 24" x 24") with the following information bead welded on plate: Pioneer NRA APD: 202-178 Pioneer Unit Baranof #4 API: 50-009-20020-00 Backfill well excavation and grade for positive drainage. Perform complete site inspection immediately after P&A operations if AOGCC inspector is available. 9. Pick up any debris and demobilize equipment to the next well in the program. baranof #4 p&a procedure.doc - 2- 7/13/2005 ) ') Attachment 1: Pioneer Unit Baranof #4 Current Well Schematic .,:".'.'".'.,., ","',', 1'1 i~ ~..',"..'...,..,...',',., I,~,'.'.·,~,',',···,:,',· '"., ill '\ ,'.~ Ìf~,1 I~ ~,; .,.~ ~~ I , . ~' I I.',',',: il.'!,·,,".',·· .", ,':,"'.',:, :, I~I' " , '.. I ')':r;; II,....:. ~. '.:.',' i,' r', p,.~' , 'I, " ',~, , ~~ ,;.¡ ~'~,\,',.: ",'~.' ~ .,. ~ .; ~ ~ t~ M ~ 5"-' r' "', .. I,', , 'A: ,.' t~ It i - PBTD -3644 Qtr/Qtr Twp 18N Sec Rng County Matanuska,Susitna Field Pioneer Unit No. Depth I Length Created by STG 3/30/03 30 1W State Alaska Country USA 00 Pioneer Natural Resources Alaska, Inc. Date 3/27/2003 Status Current Weight 23 17 Size Casing 8-5/8 Casing 5-1/2 Tubing 10 Description Well drilled and cased, never perforated. Grade Depth 513 3724 J-55 J-55 Modified by JRM 7/11/05 ) ) Attachment 2: Pioneer Unit Baranof #4 Proposed Final Well Schematic I i: Ii I I··,···,'..'·'··', ", ~. .., I, I·:·,',!.,··,·· !, I I~,"·,'·:, ~' ,:iI. i~ ~ J~ ~:..t ,..~ :11' .~ M~ ~ i r~ kI PBTD -3644 I ~ ~ ~ i ~ ! ~ ~ Qtr/Qtr Sec 30 Pioneer Natural Resources Alaska, Inc. 2 Twp 18N Rng 1W Date 3/27/2003 Status Current Size Weight Grade Depth 1 County Matanuska,Susitna State Alaska Casing 8·5/8 23 J·55 513 Field Pioneer Unit Country USA Casing 5·1/2 17 J·55 3724 Tubing No. I Depth I Length I 00 I 10 Description 1 165 0.5 4.9 o Wiper plug 2 164.5 164.5 4.9 0.000 Cement surface plug 3 Well cutoff 5 feet below ground level. Created by STG 3/30/03 Modified by JRM 7/11/05 :;< ~ Å--Ó-tJ~ DATA SUBMITTAL COMPLIANCE REPORT 12/29/2004 Permit to Drill 2021780 Well Name/No. BARAN OF 4 Operator EVERGREEN RESOURCES (ALASKA) API No. 50-009-20020-00-00 MD 3750 TVD 3750 Completion Date 11/2/2002 Completion Status SUSP Current Status SUSP UIC N ~~------- _.~~---- ------~-------- -----. .._-.--------------------- REQUIRED INFORMATION Mud Log No Samples No Directional Survey No - -- ---~------------ ---.---.----.--- ~ -_._.._-------~--- DATA INFORMATION Types Electric or Other Logs Run: Well Log Information: DNL, IL, GR, CHN, DSCB, ML, SURVEY (data taken from Logs Portion of Master Well Data Maint) Log/ Electr Data Digital Dataset Log Log Run Interval OH/ Type Med/Frmt Number Name Scale Media No Start Stop CH Received Comments -~---- ...------- -----~-------~--- þ~.,Jt J '^ èûM/~ ~ R. Log I nd uction/Resistivity 2 Blu 3 500 2990 Open 1 0/30/2002 Log Density 2 Blu 4-6 500 3747 Open 1 0/30/2002 Pu-f Log Neutron 2 Blu 4 ~OO 2993 Open 1 0/30/2002, {-""""i~ \)~ N~ Log Neutron 2 Blu 300 518 Open 1 0/30/2002 rv~ ~~ Log Neutron 2 Blu 4 :: 6 ...,r 500 3747 Open 1 0/30/2002 ~ {~""'"'" Log I nd uction/Resistivity 2 Blu 3-5 500 3746 Open 1 0/30/2002 bJ S""kÜ- ~ V~ Log Density 2 Blu 300 518 Open 1 0/30/2002 ~ i J\-J'^ ,fl - ~ tw-p An./IJ\mf Log Density 2 Blu 4 500 2993 Open 1 0/30/2002 utog Density 2 Blu :.4 500 2993 Open 10/30/2002 ¿CÐL / OIL / G~ Log I nd uction/Resistivity 2 Blu 2 300 518 Open 1 0/30/2002 þ"vL r';l~jJ-- . 'f~ Rpt Directional Survey 300 3500 9/16/2003 Patterson Wireline Inclination Survey ~~ Log Gamma Ray 5 Blu 0 3693 Case 6/25/2004 DUALSPACED,CEMENT BOND Log Density OTH Blu 4 500 2993 6/25/2004 COMPENSATED DENSITY NEUTRON LOG .hPg ..JAðúction/Resistivity 25 Blu 500 3746 6/25/2004 ,..sUAL INDUCTION G~ b~vpl ~g ¿ßêment Evaluation 5 Blu 0 3693 Case 6/25/2004 DUAL SPACED CEMENT BOND, GR Log Rate of Penetration Blu 310 2992 Case 6/25/2004 DUAL SPACED CEMENT ~-c L-A-S u;,56 Cf,.IIlIlä ~dY ~L~ ~ . BOND, GR J ~ 491 3748 6/25/2004 ~ ijJ,\. S r\ - -_._---_.-.__.----_._---~------~- DATA SUBMITTAL COMPLIANCE REPORT 12/29/2004 Permit to Drill 2021780 Well Name/No. BARANOF 4 MD 3750 TVD 3750 Well Cores/Samples Information: Name ADDITIONAL INFORMATION y/Ð Chips Received? Y 0 Analysis Y (ù Received? Well Cored? - -------> ------------~~-~--- ------------ --------- -~-,------_.._---~-~-~------ Comments: --.---_.'---'-~--- . ~---------------~ ~_'__'_---'--'-----~'.~-- ------------------- Compliance Reviewed By: -- Completion Date 11/2/2002 ~ I Operator... EVERGREEN RESOURCES (ALASKA) API No. 50-009-20020-00-00 Completion Status SUSP Interval Start Stop I' / ! /V6~C 07 .:._~~................--.=t:F-="'''"'''-' -,- - Sent Received Daily History Received? Formation Tops Current Status sUSP Sample Set Number Comments VI€) y€J Date: UIC N J J" Jv..bf;!) , -~ . ~ ~ ,.~- =\'=I~GI~==I'I" RESOURCES (ALASKA) COR~ ) A Subsidiary of Evergreen Resources, Inc. ') March 22! 2004 Winton Aubert Petroleum Engineer Alaska Oil and Gas Conservation Commission (AOGCC) 333 West 7th Ave. #100 Anchorage, AK 99501-3539 RE: Request for Operational Shut Down for the Lowell #2, Bering #3 and Baranof #4 Dear Mr. Aubert: Attached are the 10-403 applications for sundry approval requesting that an operational shut down be granted for the following wells: Lowell #2, Bering #3 and Baranof #4. A pressure build up test has been conducted on the Bering #3 over a perforations from 3382'-3386'. There has been no completion activity on the Lowell #2 and Baranof#4. If you have any questions! please feel free to contact me at 907-355-8569 or shaneQ@evergreengas.com. Sincerely! /}- ~(7L¿- 9A ~.~X /~ Shane Gagliardi Petroleum Engineer 2 5 200 ORIGINAL 1075 Check Street, Suite 202 . Wasil/a AK 99654 PO. Box 871845 . Wasil/a, AK 99687 . TEL 907.357.8130 . FAX 907.357.8340 vJGA.' 3ÎZS/2cð«- STATE OF ALASKA ) ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVAL 20 MC 25.280 ) Abandon 0 Suspend 0 Alter Casing 0 Repair Well 0 Change Approved Program 0 Pull Tubing 0 .2. Operator Name: Evergreen Resources Alaska Corp. 3. Address: P.O. Box 871846 Wasilla, AK 99687 7. KB Elevation (ft): 1. Type of Request: Operation Shutdown [81 Plug Perforations 0 Perforate New Pool 0 4. Current Well Class: Development 0 Exploratory [81 Stratigraphic 0 Service 0 Perforate 0 Variance 0 Annular Disposal 0 Stimulate 0 Time Extension 0 Other 0 Re-enter Suspended Well 0 5. Permit to Drill Number: /' 202-178 6. API Number: / 50-009-20020-00 9. Well Name and Number: 408 ft KB Baranof #4 / 8. Property Designation: 10. Field/Pool(s): AOL 384685 610500 11. Total Depth MD (ft): 3750' Casing Structural Conductor Surface PRESENT WEll CONDITION SUMMARY I Total Depth TVD (ft): I Effective Depth MD (ft): I Effective Depth TVD{ft): I Plugs (measured): I Junk (measured): 3150' 3697' 3697' None None Length Size MD TVO Burst Collapse Intermediate Production 300' 12-3/4" 304' 304' 609' 8-5/8" 613' 613' 3720' 5-1/2" 3724' 3124' N/A 2950 N/A 1370 6320 4910 liner Perforation Depth MD (ft): I Perforation Depth TVD (ft): I None None Packers and SSSV MD (ft): Tubing Size: None Packers and SSSV Type: Tubing Grade: N/A Tubing MD (ft): N/A Date: None 13. Well Class after proposed work: Exploratory [81 Development 0 15. Well Status after proposed work: Oil 0 Gas [81 Plugged 0 WAG 0 GINJ 0 WINJ 0 Service 0 None 12. Attachments: Description Summary of Proposal 0 Detailed Operations Program 0 BOP Sketch 0 14. Estimated Date for Commencing Operations: 23 Mar 05 16. Verbal Approval: Commission Representative: .17. I hereby certify that the foregoing ÎS true and correct to the best of my knowledge. Abandoned 0 WDSPL 0 Contact Shane Gagliardi Ponted Name ~ne<gw Signature ~4 ~. . - - .y Title Petroleum Enaineer Phone 907-355-8569 Commission Use Only Date 3/22/04 I Sundry Number: 3()£/~ l}ýf Conditions of approval: Notify Commission so that a representative may witness Plug Integrity 0 BOP Test 0 Mechanìcallntegrity Test 0 Location Clearance 0 Other: '~ ý\V ~ tn./ t P'f£~~ cVL~ ' BY ORDER OF COMMISSIONER THE COMMISSION Date ~r¡£t ~ OR\G\NAL _BFl .'8'08 =\f=I~GI~==I'1 RESOURCES (ALASKA) CORP. A Subsidiary of Evergreen Resources, Inc. API Permit to Drill # Survey Type Survey Date Conductor 12~3/4 Surface 8-5/8 PBTD WellTD Measured Depth 250 300 500 1000 1500 1750 2000 2070 2465 2491 2500 3000 3250 3500 3665 3680 Surveying Camp nay Survey Conducted By: K~~N\.~ Cook #1 Lowell #2 Bering #3 Baranof #4 DL Smith #1 Stromberg #2 RLSmith #3 Cornhusker #4 50-009-20022-00 50-009-20021 ~OO 50~009-20019-00 50-009-20020-00 50-009-20026-00 . 50-009-20025-00 50-009~20024-00 50-009-20026~00 202-180 202-179 202-177 202~178 202-184 202-183 202-182 202-181 Sure Shot Model A Sure Shot Model A Sure Shot Model A Sure' Shot Model A Sure Shot Model A Sure Shot Model A Sure Shot Model A Sure Shot Model A Inclination Inclination Inclination Inclination Inclination Inclination Inclination Inclination 12/5/2002 11/6/2002 12/5/2002 11/3/2002 12/5/2002 12/5/2002 12/5/2002 12/5/2002 245 200 275 300 320 360 420 415 384 381 400 513 1038 1020 1016 539 3670 3238 3688 3697 2487 2492 2191 2577 3740 3750 3753 3750 2510 2510 2300 2600 , .., 0.5 0.5 1 5 8 14 10 10 14 9 2 0 7 4 3.5 0.5 4 7 13 14 5 6 8 13.5 14 10 8 10 14 14 14 11 14 14 14 10 9 ,8 .~ 10.5 11 14 9 11.5 14 13 14 Patterson Wireline ~G-3. Ç>=~<v- Pat Patterson Owner Signature Q-f2-o3 Date RECErVE SEP 1 6 2003 Alaska Oi\ & Gas Cons. Cotnrn4ssíon .t\nchorage ) Corrected State Plane 9-9-03 BFL PTD NAME 2021780 BARANOF#4 2021770 BERING #3 2021810 COOK#1 2021820 ROBERT SMITH #3 2021840 D.L.SMITH #1 2021830 GARY & JOANN STROMBERG #2 2021790 LOWELL #2 2021810 CORNHUSKER #4 WelLLocation_Evergreen Pared.xls ASP27Z4E ASP27Z4N 585062.93 2782923.45 585004.70 2783942.33 584593.05 2783408.27 542887.46 2774899.30 543786.36 2774923.09 544423.27 2775528.70 584152.01 2783381.99 543355.96 2774054.90 ) ') ,.' "" " :. . . , :.. I . ,. , \. r.' '~.'.o \ )I'. " '0' .t' f""'" I . . II. ,° . . r . . ) r., .~ ,,- - fl.-x- 9'd?-¿~'... 'n1.. Î) ~ ~¿.6-2J.Vï~ .----' , ~: ~~ ~¿¿ÂfA/A PA.7P : Rê: ~ ¡4ð/Zc<=»<- /lv1'llvfl.1 ~."..,., OJV'?b ~ ¡tilt. #1.1.1 ~ 8 é'(.o IN Ie t¥ ~ 7;te- ~~_u_-~) ¡. . . ~'-. ... - -"~.. ~f'Eñ;- : :z AM ð'V r- ",IV ?Wr ~A:~ - 'f1¡f¡.,u oS r (jç,A>"'i'~r- WAy ?Þ 6,~ Nt /h¥f:t! 4ann;,n.(~~ ~J V~A- A- ~. :::L' ~MM. ( ë-d- '" I~ ~d w~~ &""i,fI/C". t!'d4(. C"'~ v L n ~ '" ¿"A .rl'et!:Jf ?1> ~ /nMr.r ...,- /I': ~ .4",~ ~"'f. #/6Ç It ~ O-VS"V<;)Þ( ð~.Þ¿ø4/sr C Ú ?(~..Ll - 1JóI:tP~ 0/ IIv nT£. 74 ~I..':¡;¡ - #P'nIVb ~ S f'~h,fn4~ . :£ ,AI'RlJ.t~/A-~ 'I,,¿I/è, .1-. .) :;;,vðf12.~~ 'SItV~ (A-tAJ'A:A-) ~AP (;.1V~hJA- RECEIVED SEP 1 0 2002 AtaskaOil it Ga6 Con$. Commission Anœor&ge ..~ ¡O'd too' ON OZ:SI ZO,Ot d3S 6909-9¿£:ar NO r 1I::ltU:fJX3 . [. a ) ) CHECKLIST - SPACING EXCEPTION APPLICATION OPERATOR Evergreen Resources PROPERTY ID/ LEASE FIELD/POOL Pioneer, Tyonek Undefined WELL NAME Baranoff #4 VERTICAL DEVIATED ADL 384685 x EXPLORATORY DELINEATION DEVELOPMENT X GAS OIL X SURFACE LOCATION PRODUCTIVE INTERVALS (Top and Bottom) BOTTOM HOLE 504! FSL and 423' FEL, S. 30, T18N! R1W, S.M. Same Same Same Check applicable reason{s) for spacing exception: (1) to drill a well for oil within 500 feet of a property line (2) to drill a well for gas within 1500 feet of a property line (3) to drill and complete more than one oil well in a governmental quarter section; or to drill and complete an oil well closer than 1000' to any well drilling to or capable of producing from the same pool (4) to drill and complete more than one gas well in a governmental section; or or to drill and complete a gas well closer than 3000' to any well drilling to or capable of producing from the same pool Does the application contain: YES A brief explanation for why the operator has chosen to drill the specified location. A plat drawn to a scale of one inch equaling 2,640 feet or larger, showing the location of the well or portion of the well for which the exception is sought, all other completed and drilling wells on the property, and all adjoining properties and wells within 1,000 feet of a well or-portion of the well requiring the spacing exception that is drilling for oil or within 3,000 feet of a well or portion of the well requiring the spacing exception that is drilling for gas. The names of all owners, landowners, and operators of all properties within 1 !OOO feet of a well or portion of the well requiring the spacing exception that is drilling for oil or within 3,000 feet of a well or portion of the well requiring the spacing exception that is drilling for gas. A copy of the notice sent by certified mail to the owners, landowners and operators described above, the date of mailing, and the addresses to which the notice was sent. An affidavit by a person acquainted with the facts verifying that all facts are true and that the plat correctly portrays pertinent and required data. If the operator requests a variance from the notice requirements of 20AAC25.055(d), sufficient information to demonstrate that it is not feasible to comply with the notice requirements because of the complexity of ownership within the notice area. x x X YES YES YES YES NA . " =\'=I~GI~==I~ ~) RESOURCES (ALASKA) CORP. A Subsidiary of Evergreen Resources, Inc. ) Friday! December 06, 2002 Mr. Winton Aubert Petroleum Engineer Alaska Oil and Gas Conservation Commission 333 West 7th, Suite 100 Anchorage, AK 99501 RE: Sundry Notice: Operational Shutdown Evergreen Resources Alaska Corp Baranof 4 API No: 50-009-20020-00 Permit No: 202-178 SE/SE Section 30 Twp 18 North Rng 1 West, Seward Meridian Pioneer Unit, Matanuska-Susitna Borough /. Dear Mr. Aubert, As requested, attached is a sundry notice for the subject well and a well bore diagram. This well was spud on October 28, 2002 and was finished drilling on ,,.....'- November 1, 2002. Currently the well is awaiting a directional survey and a completion program. Evergreen requests an "Operational Shutdown! for the holidays. We expect to begin fracture stimulation, using our .9WfÍ equipment, during the first quarter 2003. As discussed! all information regarding this well will be submitted after the well is completed. ' Thank you for your time and consideration. Please call me if you have any questions: office: 907-357-8130 & cell: 907-841-0000. Sincerely! EVERGREEN RESOURCES (ALASKA) CORP RECEIVED DEC 092002 Alaska Oil & Gas Gons. Commission Anchorage PO. Box 871845 . Wasil/a, AK 99687 . TEL 907.357,8130 . FAX 907.357.8340 t. ! .'~II ) STATE OF ALASKA ) ALAS~ OIL AND GAS CONSERVATION COMMI::'SION REPORT FOR SUNDRY APPROVALS 'fIJ41t- 14 t/Ol- /'At-6 }'l-/'/°z.- ~ 1~11 Cor l?-jq 1. Type of Request Abandon 0 Suspend After Casing 0 Repair Well n ~'^'..; Change Approved Program Pull Tubing r""~ ~^....J 2. Name of Operator Evergreen Resources Alaska 5. Type of Well Operation Shutdown Plugging Variance Development Exploratory P.O. Box 871845 Stratigraphic Wasilla, AK 99687 Service 4. Location of well at surface: SE/SE of Sec 30 Twp 18 North Rng 1 West, Seward Meridian 504' FSL & 423' FEL OF SEC 3. Address: At top of productive interval: At effective depth: Total depth: 12. Present well condition summary Total depth: Measured true vertical Effective depth: Measured true vertical Casing: Length Size Structural Conductor 300' 12-3/4" Surface 509' 8-5/8" Intermediate Production 3720' 5-1/2" Liner Perforation depth: Measured none True vertical none Tubing (size, grade, and measured depth) Packers and SSSV (type and measured depth) 13. Attachments: Description Summary of Proposal 14. Estimated date for commencing operation 16. If proposal was verbally approved 3750 feet feet feet feet 3750 Cemented 70 sx on bot & 10 sx on top 197 sx 15.8 ppg Class G, Circ to Surface 598 sx 13.7 ppg Class G, TOC +1-10 ft none none Detailed Operations Program Œ] Re-enter suspended well LJ Time extension 0 0 Stimulate [J r'~ L.J 0 Other ¡] Perforate Œ] 6. Datum elevation (OF or KB): 408 ft KB (4 ft AGL) 7. Unit or Property Name: Pioneer Unit 8. Well number: Baranof No 4 9. Permit numb~ 202-178 10. API Number: 50-009-20020-00 11. Field and Pool: Pioneer n Plugs (measured) none Junk (measured) none Measured Depth True vertical depth 304' 513' /' 3724' R~(~IV~lJ DEC 0 92002 Alaska Oil & Gas Cons. Commission Anchorage BOP Sketch 15. Status of well classification as: Oil Name of approver Date Approved 17. I hereby ce>th"r~~ing i: true and correct to the best of my knowledge. Signed -?"'~ . Title Alaska Projects Manager FOR COMMISSION USE ONLY Conditions of approval: Notify Commission so representative may witness Location clearance Mechanical integrity test Subsequent form r~quired 10- '-I D 'š ORIG\NA 61~NED Byr-O ý V)~vt- &-p~~; 't"'YL<;" M~L. RiU Commissioner Date /2~t/ tJ;2- SU~IT IN T PLICATE I I RBOMS BFL Plug integrity BOP test Approved by order of the Commission Form 10-403 Rev 06/15/88 Gas [&] Suspended Service Date 12/6/02 Approval No. ,SZ'b2 - .3 73 ... ~ ) ') Well Bore Diagram Baranof No 4 Evergreen Resources Alaska Pioneer Unit SE/SE of Section 30 Twp 18 North Rng 1 West, Seward Meridian Conductor Casing: 304 ft KB 12-3/4", heavy wall, welded connection Cemented with 70 sx on bot & 10 sx on top 304 ft KB 513 ft KB Suñace Casing 513 ft KB 8-5/8!', 23 ppf! J-55, ST&C Cemented with 197 sx 15.8 ppg Class G Circ to Surface Production Casing 3724 ft KB 5-1/2", 17 ppf, J-55! ST&C Cemented with 598 sx 13.7 ppg Class G TOC +1- 10 ft 3697 ft KB PBTD 3697 ft KB Cement in Csg 3750 ft KB =\'=I~GI~==I'I ,) 1 RESOURCES (ALASKA) COR~ : A Subsidiary of Evergreen Resources, Inc. ) ~ November 4, 2002 Ms. Cammy Oechsli-Taylor, Chair Alaska Oil and Gas Conservation Commission 333 West 7th Ave.! Suite 100 Anchorage! Alaska 99501 RE: Revised AP~Dr Increase TD from 2,999 to 3,900 ft KB BaranoJ$ 7 ~ I> Twp 18 North Rng 1 West Seward Meridian Pioneer Unit Matanuska Susitna Borough Dear Commissioner Taylor, Evergreen Resources Alaska requests permission to drill an additional 900 feet on the subject well evaluate the Tyonek coals and sandstones. Since the additional depth requested is beyond 500 feet, please find the attached APD and a check for $100.00. On November 1, 2002, Evergreen TD'd the Baranof #4 to a depth of 3,700 ft KB. No drilling problems were encountered. There are absolutely no indications that this well will behave differently. Thank you for your assistance. I appreciate the help you and your staff have given our company. Sincerely! EVERGREEN RESOURCES (ALASKA) CORP ~~ John J. Tanigawa Alaska Projects Manager >¡3m/ /led /or- (//¡:J / IÎ ¡<J / J/J: nt2 Þ / C- / ?rrer- Ch~ck~ RECEIVED;J (' NOV 1 2 2002 Alaska Oil & Gas Cons. COmmission Anchorage PO. Box 871845 . Wasil/a, AK 99687 . TEL 907.357.8130 . FAX 907.357.8340 ~\ STATE OF ALASKA ' ALASKA OIL AND GAS CONSERVATION COMI\.)sION PERMIT TO DRILL 20 AAC 25.005 [ ] Service [ ] Development Gas [ ] Single Zone [X] Exploratory [] Stratigraphic Test [ ] Development Oil 5. Datum Elevation (DF or KB) 10. Field and Pool DF 4' AGL 6. Property Designation Private 7. Unit or Property Name Pioneer Unit 8. Well Number Baranof #4 9. Approximate spud date 10/31/2002 - continue drilling 14. Number of acres in property 15. Proposed depth (MD and TVD) 16,780 2,999' MD, TVD 17. Anticipated pressure {see 20 MC 25.035 (e) (2)} Maximum surface 1559 psig , At total depth (TVD) Setting Depth Top Bottom MD TVD MD TVD 3 3 125 125 3 3 500 500 3 3 3900 3900 .. 1 a. Type of work [X] Drill [] Redrill1 b. Type of well [ ] Re-Entry [ ] Deepen 2. Name of Operator Evergreen Resources (Alaska) Corporation 3. Address P.O. Box 871845, Wasilla, AK 99687 4. Location of well at surface 504' FSL & 423' FEL, Sec. 30, T18N, R1W, SM At top of productive interval Same At total depth Same 12. Distance to nearest property line 423 ft (BLM Minerals) 16. To be completed for deviated wells Kick Off Depth N/A 18. Casing Program Size Casing 12.25 8.625 5.5 [ ] Multiple Zone Pioneer 11. Type Bond (See 20 MC 25.025) Number RLBOO04711 Amount $200M 113. Distance to nearest well 5810 ft (AK94 CBM) Maximum Hole Angle vertical Hole 13 11 7.875 Specifications Grade Coupling K-55 Welded K-55 STC K-55 STC Weight 48 24 17 19. To be completed for Redrill, Re-entry, and Deepen Operations. Present well condition summary Total depth: measured true vertical Effective depth: measured true vertical feet feet feet feet Casing Length Structural Conductor Surface I ntermed iate Production Liner Perforation depth: measured true vertical 1230 psig Length 125 500 3900 Quantity of Cement (include stage data) 26 sx. If necessary, pour add'l cement at surface 111 sx. Circulate to Surface 635 sx. Circulated to surface Plugs (measured) Junk (measured) Size Cemented MD TVD RlfllVHD NOV 1 22002 [X] Filing Fee [X] Property Plat [X] BOP Sketch [X] Div~'~Slt!f\9asGot~~ aa....dIø8IQfbm [X] Drilling Fluid Program [ ] Time vs Depth Plot [] Refraction Analysis [ ] Seabed Report Anchor~fJ20AAC25.050 Req. Contact Engineer Name/Numb r: John Tanigawa (907) 841-0000 Prepared By Name/Number: John Tanigawa (907) 841-0000 21. I hereby cert~'fy tha.t t re g is true and correct to the best of my knowledge Signed J .. j '---- Title Alaska Projects Manager Date II { Il.l J::::ó ~ ~., ,,' Commission Use Only Permit Number .. IAPI Number Approval Date See cover letter for other requirements Conditions of Approval: Samples Required: [ ] Yes [] No Mud Log Required [ ] Yes [ ] No Hydrogen Sulfide Measures: [ ] Yes [] No Directional Survey Req'd [] Yes [ ] No Required Working Pressure for BOPE: [] 2M, [] 3M, [] 5M, [] 10M, [] 15M Other: 20. Attachments Approved By Form 10-401 Rev. 12-01-85 Commissioner by order of the commission Date Submit In Triplicate hntrolled Corp Check No Check Date Check Amount 1401 17th Street Suite 1200 Denver CO 80202 0077000084 11105t2002"'**~.*****~~~:.$..1.00.00 PAY One Hundred Dollars and Zero Cents " '\"'.\ . Void After 90 Days ',. TQ THE ORDER OF Alaska Oil and Gas Conservation Commission 333 West 7th Avenue #100 . Anchorage AK 99501 £{&?t?~ " uIOD? ?OOD08L,uI .: ~ ~ ~ ~OL,a?~I: Sa. 20 21., ?DL,u. ó II - ' ~~., - --. .--_.-.....~- M~~'_"~. ...-- -" -..'--' -'R .~....,. ".. _~'R" ...~-~. '. - -. "'-M' - ~ '_"R_- '---. ~ --."'----"" - -.... - --..- þ -- ~ - -. 0- ... "",-. -- -~.. ,~.......... .. _.-..,-,," ~_...... --' .'-' '-".- ~~'~":'::':-~ ,... ~..,. ",--'.- -'. -'.:.h - ~~ -., ..~ --.,- ~'.'" ''':"'. ... -'.,' ~ :... .... --, - _,_'L_'"" --.. ,.- _. '.-..,...r -- ,~---... ^PLEASE DETACH AT PERFORATION ABOVE^ ^PLEASE DETACH AT PERFORATION ABOVE^ Evergreen Resources (Alaska) Corp 1401 17th Street Suite hOD Denver CO 80202 RH@EIVED NOV 1 2 2002 Alaska 011.& Gas {,tns. Commtsslon Anchorage I 009195 I ~ Vendor Check Date: 11/05/2D02 Check Amount ~ I 100.00 I ) A LA S K A 0 I L & GA S CON S E R VA T ION COM MIS S ION FAX 907-276-7542 PHONE 907-279-1433 FACSIMILE TRANSMITTAL SHEET FAX NUM~R: ~j5 7~ 'ö3L) () PHONE NUMBER: 'ð cll~ ððO () FROM ACiQc-c / L;s~ ~I~ DATE /O/81/Dd TOTAL NO. OF PAGES INCLUr COVER, SENDER'S REFERENCE NUMBER: TO: c022 h n 'Í a. 6, :j 0, ,,,';0... RE: YOUR REFERENCE NUMBER: ~GENT 0 FOR REVIEW 0 PLEASE COMMENT 0 PLEASE REPl, Y 0 PLEASE RECYCLE NOTES/COMMENTS: :JQk ~ ~~ j ~~ CoPj' APò '- J~ l__~ ~~j ~ \ :-.... .. r. 'Û~ t-f~ f,.. ( J AOGCC 333 WEST 7TH AVENUE, SUITE 100 ANCHORAGE, AK 99501-3935 ~'7~~Œ ) ) t:~ ~1!Æ~%!Æ / AT,ASKA OIL AND GAS / CONSERVATION COltDlISSION I I TONY KNOWLES, GOVERNOR 333 W. -pH AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 John Tanigawa Alaska Projects Manager Evergreen Resources (Alaska) Corporation PO Box 871845 Wasilla AK 99687 Re: Pioneer Unit Baronof#4 Evergreen Resources (Alaska) Corporation Permit No: 202-178 Surface Location: 504' FSL & 423 FEL, Sec. 30, T18N, R1W, SM Bottomhole Location: 504' FSL & 423 FEI, Sec. 30, T18N, R1W, SM Dear Mr. Tanigawa: Enclosed is the revised approved application for permit to drill of above referenced well, to extend total depth of Baronof #4 by 900 feet. The permit to drill does not exempt you from obtaining additional permits or approvals required by law from other governmental agencies, and. does not authorize conducting drilling operations until all other required permits and approvals have been issued. In addition, the Commission reserves the right to withdraw the permit in the event it was erroneously issued. A weekly status report is required from the time the well is spudded until it is suspended or plugged and abandoned. The report should be a generalized synopsis of the week's activities and is exclusively for the Commission's internal use. All dry ditch sample sets submitted to the Commission must be in no greater than 30' sample intervals from below the permafrost or from where samples are first caught and 10' sample intervals through target zones. The permit is approved subject to full compliance with 20 AAC 25.055. Approval to perforate and produce is contingent upon issuance of a conservation order approving a spacing exception. Evergreen Resources (Alaska) Corporation assumes the liability of any protest to the spacing exception that may occur. Operations must be conducted in accordance with AS 31.05 and Title 20, Chapter 25 of the Alaska Administrative Code unless the Commission specifically authorizes a variance. Failure to comply with an applicable provision of AS 31.05, Title 20, Chapter 25 of the Alaska Administrative Code, or a Commission order, or the terms and conditions of this permit may result in the revocation or suspension of the permit. Please provide at least twenty- four (24) hours notice for a representative of the Commission to witness any required test. Contact the Commission's North Slope petroleum field inspector at 659-3607 (pager). Sincerely, be~l~ Chair BY ORDER OF THE COMMISSION DATED this~ day of October, 2002 cc: Department ofFish & Game, Habitat Section wlo encl. Department of Environmental Conservation wlo encl. ') ) Waivers for the following regulations are hereby granted for Baronof#4 (Pennit No. 202-178): 1. 20 AAC 25.030 (d) (2), requiring conductor casing to be cemented to surface; 2. 20 AAC 25.033 (b), requiring drilling fluid of sufficient density for overbalance; 3. 20 AAC 25.035, blowout prevention equipment requirements; 4. 20 AAC 25.050 (a) (2), requiring well bore surveys for each 500 feet of well depth; 5. 20 AAC 25.061 (a), requiring seismic surveys of near surface strata; and 6. 20 AAC 25.066, requiring gas detection on drilling rigs. =\'=I~GI~==I'I ) RESOURCES (ALASKA) COR~ A S~bsidiary of Evergreen Resources, Inc. ß(/ it?' I dJ7 :;> ,.) October 31 ! 2002 Ms. Cammy Oechsli-Taylor, Chair Alaska Oil and Gas Conservation Commission 333 West 7th Ave.! Suite 100 Anchorage! Alaska 99501 Dear Commissioner Taylor! Evergreen Resources Alaska requests permission to continue drilling the subject well an additional 900 feet to further evaluate the Tyonek coals and sandstones. Attached is an APD and a $100 check required to continue this drilling operation. Evergreen spudded the subject well late Monday October 28, 2002 night and reached TD at 2AM this morning on October 31, 2002. There were no drilling or well control issues encountered while drilling the well. Open-hole logs were run and evaluated by 9:00 AM today. I have instructed our drill crew to run-in hole with drill pipe and bit to TD pending the commission's approval to continue drilling. The Department of Environmental Conservation and the Division of Oil and Gas have approved Evergreen to continue drilling an additional 800 feet. Please fax the APD to 907-357-8340. Thank you for your assistance. I appreciate the help you and your staff have given our company. Sincerely! EVERGREEN RESOURCES (ALASKA) CORP ~~ John J. Tanigawa Alaska Projects Manager RECEIVED OCT ::3 1 2002 A1äSRa on.& Gas Cons. Commission Anchorage PO. Box 871845 . Wasil/a, AK 99687 . TEL 907.357.8130 . FAX 907.357.8340 '''\ STATE OF ALASKA'" ALASKA lilt AND GAS CONSERVATION corv...JSSION PERMIT TO DRILL 20 AAC 25.005 [ ] Service [ ] Development Gas [ ] Single Zone [X] Exploratory [] Stratigraphic Test [ ] Development Oil 5. Datum Elevation (DF or KB) 10. Field and Pool DF 4' AGL 6. Property Designat.io!1AD t- ~.~~Lfb85 7. Unit or Property Name Pioneer Unit 8. Well Number Baranof #4 9. Approximate spud date 10/31/2002 - continue drilling 14. Number of acres in property 15. Propo~ed depth (MD and TVD) 16,780 ~9 OO~MD, TVD W4A-" 17. Anticipated pressure {see 20 MC 25.035 (e) (2)} Maximum surface 1559 psig . At total depth (TVD) 1 a. Type of work [X] Drill [] Redrill1 b. Type of well [ ] Re-Entry [ ] Deepen 2. Name of Operator Evergreen Resources (Alaska) Corporation 3. Address P.O. Box 871845, Wasilla, AK 99687 4. Location of well at surface 504' FSL & 423' FEL, Sec. 30, T18N, R1W, SM At top of productive interval Same At total depth Same 12. Distance to nearest property line 423 ft (BLM Minerals) 16. To be completed for deviated wells Kick Off Depth N/A 18. Casing Program Size Hole Casing 13 12.25 11 8.625 7.875 5.5 VJ6Â- Ir() {511o L [ ] Multiple Zone Pioneer 11. Type Bond (See 20 MC 25.025) Number RLBOO04711 Amount $200M 113. Distance to nearest well 5810 ft (AK94 CBM) Maximum Hole Angle vertical [X] Filing Fee [X] Property Plat [X] BOP Sketch [X] Diverter Sketch [X] Drilling Program [X] Drilling Fluid Program [ ] Time vs Depth Plot [] Refraction Analysis [ ] Seabed Report [ ] 20AAC25.050 Req. Contact Engineer Name umber: J hn Tanigawa (907) 841-0000 Prepared By Name/Number: John Tanigawa (907) 841-0000 21. I hereby certify that ore true and correct to the best of my knowledge Signed ~' J .' / .~ ., illt:: -.. Alaska Projects Manager Date &d(.?( /? C/O? Commission Use Only Ve,vÞ ~{ ~ f/rv V et ( lì ~ 1¡J6A I Df! Il t) t Permit Numb IAPI Number. I Approval Jate I' See cover letter 1,,0 '2-- 17''¡ 50 -- ooC¡ - ~oz,o - 00 IO/~1 Öd for other requirements Conditions of Approval: Samples Required: [ ] Yes ~ No Mud'Log Required [ ] Yes Þ<:J No Hydrogen Sulfide Measures: [ ] Yes ~ No Directional Survey Req'd ~ Yes [ ] No Required Working Pressure for BOPE: [] 2M, [] 3M, [] 5M, [] 10M, [] 15M Other: All cP V ~ ~ ~ l (J -w ~ t- c; þi P III ~ þ: ''Y1.-\. Ol-f P [1 . 0ngtnaI SIgned By by order of c.m.y {\rJc1w1i Taytor Commissioner the commission Weight 48 24 17 Specifications Grade Coupling K-55 Welded K-55 STC K-55 STC 19. To be completed for Redrill, Re-entry, and Deepen Operations. Present well condition summary measured true vertical Effective depth: measured true vertical feet feet feet feet Total depth: Casing Length Structural Conductor Surface Intermediate Production Liner Perforation depth: measured true vertical 20. Attachments Approved By Form 10-401 Rev. 12-01-85 1230 psig Setting Depth Top Bottom Length MD TVD MD TVD 125 3 3 125 125 500 3 3 500 500 ..2getr 3 3 3900 3900 ~ q 00 '+J6fr Quantity of Cement (include stage data) 26 sx. If necessary, pour add'l cement at surface 111 sx. Circulate to Surface 635 sx. Circulated to surface Plugs (measured) Junk (measured) Size Cemented TVD MD R!@!IVED OCT 312002 NäS1taOn & Gas Cons. Commission Anchorage Da~eUb~ ~lte aoa-II'ð ) =\'=I~GI~==I'I RESOURCES (ALASKA) CORP. A SutJsir:l,:ary of Evergreen Resol/fces, Inc ') October 30, 2002 Mr. Dan Seamount Commissioner Alaska Oil and Gas Conservation Commission 300 West ih Avenue, Suite 100 Anchorage, AK 99501 RE: 400 feet KB - Proposed Surface Casing Depth for Pilot 2 (Cook #1, Lowell #2, Bering #3, Baranof#4) Pioneer Unit Section 30, Township 18 North, Range 2 West Seward Meridian Matanuska Susitna Borough Dear Commissioner Seamount, Yesterday morning, Evergreen Resources Rig #1 spudded the Baranof #4 well located in Section 30, Township 18 North, Range 1 West, Seward Meridian, Matanuska-Susitna Borough. This is the first well drilled in Pilot 2, and as requested by the Commission, Evergreen ran open-hole logs to help determine the appropriate setting depth for the surface casing. This letter reports to the commission what happened with the Baranof #4 and requests that surface casing be set to 400 feet for wells in Pilot 2. Well H istorv The Baranof #4 has 12-3/411 conductor set at 307 ft KB with 40 sx cement placed (via 1 II pipe) at the bottom of the annular area and then an additional 1 0 sx cement placed at surface. Bottom of the gravel was 267 ft KB. Evergreen drilled 11 II surface hole to 520 ft KB and ran open-hole logs. Five-hundred nine (509) feet of 8-5/8" casing was run and cemented to surface with 250 sx of 15.8 ppg cement. Salinitv Calculation usina OH Loas Logs ran in the Baranof #4 support the fact that water salinity is above 3,000 ppm in all logged intervals of the Tyonek if one takes into account that the porosity values generated from the compensated density and neutron logs are higher than the actual values. The figure to the right describes the four steps used to calculate salinity. Logs copies are attached and electronic data showing the salinity calculation using electronic data have been e-mailed to Steve Davies, AOGCC. Salinity Calculation 1. F=O.81/<p2 2. Rwa = RolF 3. x = (3.562-LOG(Rwa-O.0123))/O.955 4. Salinity = 1 Ox The wide separation between the neutron and density logs indicate that there are significant problems relying raw values of these logs to calculate true porosity. This is because both logs were run on a sandstone matrix (2.65 gr/cc) in an environment P.O. Box 871845 Wasilla, AK 99687 Tel: 907-357-8130 Fax: 907-357-8340 ) =\'=I~GI~==I~I RESOURCES (ALASKA) CORP. A Subsidiary of E \'fHgreen Rewurces. Inc ) where the rock logged was either coal (1.75 gr/cc) or a shale-sandstone (+/-2.5 gr/cc). The result: erroneously high values for porosity and consequently, unrealistically low values for water salinity. For this reason, in the four coals and in the +/-12 feet of shale-sands, this model yields salinity values lower than 3,000 ppm. Despite the fact that these logs give lower salinity values, the average water salinity exceeds 8,000 ppm in the logged interval, well above the 3,000 ppm cut-off.1 Other Facts supportina reauested 400 ft depth There are two other facts that support Evergreen's requested surface casing depth. . There was little/no water encountered while air drilling the Tyonek and a lot (e.g., 50,000+ bbls of fresh water) produced while air drilling the conductor casing. . Water wells close to Pilot 2 are less than 100 feet deep - we plan to set surface casing 300 feet below these wells or over 125 feet from the top of the Tyonek. . Evergreen will place 3 pieces of casing that will protect the freshwater contained within the Quarternary gravels and the upper portion of the Tyonek. Here we will place 12-3/4!! conductor, 8-5/8" surface and 5-1/2" production casing. Both the production casing and the surface casing will have cement circulated to surface. The conductor has 40 sx cement on bottom and 10 sx on top of the annulus. All three casings are designed to provide optimal protection of the freshwater aquifer. Evergreen again appreciates your time and assistance in this, our first exploration in Alaska. Due to the shallow depths of these wells, quick move and drill rates exceeding 100 feet/hour, we plan to be drilling our next surface casing early Friday, November 1,2002. Your prompt determination to this matter appreciated. Please call me of you have additional questions or require further information. My cell phone is 907-841-000 and my e-mail addressisJohnT@EvergreenGas.com. Sincerely, Evergreen Resources (Alaska) Corp RI€IIVED OCT 30 2002 Alas1ca Oil & Gas Cons. comm\&&\Of\ Af1Chorage John Tanigawa Cc: Steve Davies, AOGCC 1 Using the average compensated density and neutron density P.O. Box 871845 Wasilla, AK 99687 Tel: 907-357-8130 Fax: 907-357-8340 " ..,.., '. " ," \:..:' I , i . ¡~PA Y Oné:.r.,undred DolJars and Zero Cefitj;, ~,;" ,':; ,"::, >, ' : . 1t: TO ,¡ , ~'¡" .~Ia$ka Oir:~nd Gas' ::;:: THE ',':, ~orìservatiOn Commission ORe" ER 333 West 7th Avenue #100 "" Anchorage AK 99501 ; '",OF ' . .:,', ~~ \ ,~\'\\ EYè!.(gre~ Opeàiting Corp 1401' f7th~:Street. Suite 1200 Denv,at CÒ 80202 ,',-' '~)::::;':\I::'" ,'~<iì~"trolled [Ii .bllrsement Account) ". :~;t:?,i:\':'i'\)::':':::::' Hibernia Né!ional Bar'lk \ .. , . Che ;k No Check Date Check Amount ~ ...QQ§. JOO4894 05/30/2002 . ,Ir.****.*....*.~ 1 Op. QO. VOid After 90 Days ~G?(/~ "" ,HE :ift .. ~ ~i .,.'\ ..ooa J'oa"8 q.... io..áìi r ." . 5.. i!0 i!" ?Ö~;.. ~ ~....i~.:~'-- ::{~~\:_~t(~::..., .,.. - ^. ", . . " '...:...._.._".._-".._-"..""""-~"",,.......~'~t:~""'."--"'~'''''''';~~'"'~'._-'':.;...". ~ _..: ~-_._--......¡..__.......__...._-..- ~;........~.,._.~".....,_...¡..,...................,....;...,~ .".,IJ;.~I~',,,';;~,~,,,,,,,,,,,, ...i.. ",:,"'''' ';'~.II;,....,...... "':~.f.ì"\lf..,'..-.~.:':i;,'.'.I.':~.:;,'';;......... ..~.,........,........,,;.."............:.~;...,,.,~~ ^PLEASE DETACH AT PERFOAATION ABOVE" "PLEASE DETACH AT PERFORATION ABOVE" Everare 3 I ()peratina COI p :VERGR.~ 1401 . 71 St !!et, Suite 12dð - - _I 0 ~r er :;0 80202 . . MlENIÐOI8:ES.rc. \ .,., 100.00 ..' . ', . -_u_,,;, I ) ) =\I=I~GI~==I'I RE$OURC~S (ALASKAì CORP, A $d)~~I"I I;i f:":V6fr¡f65(J {~~3~¡iI"(:~:~. if It Permit To Drill Additional Information 20 AAC 25.005 (C 1) $100 FEE Check attached to application 20 AAC 25.005(C 2) PLAT IDENTIFYING PROPERTY AND OWNERS The mineral interest ownership map and the survey plat are shown in Figures 1 and 2 respectively. Figure 1 shows the subject well within Pilot Number 2. It also shows the mineral interest owners including a 1,500 foot radius around each well. University of Alaska mding Evergreen) 1,500 ft radius 1,500 ft radi us ... _____m,._.... ......----....-....- 30 29 State of Alaska (/ (Evergreen) F4 (UnIE 1,500 It radi us Figure 1 Mineral Ownership Map and 1,500 foot radius around each well in Pilot 1 Coordinates of the location at surface! top of each formation! at total depth Hole Locations Surface 504' FSL & 423' FEL OF SEC 30 Twp 18 North Rng 1 West Top Tyonek 504' FSL & 423' FEL OF SEC 30 Twp 18 North Rng 1 West Total Depth 5041 FSL & 423' FEL OF SEC 30 Twp 18 North Rng 1 West (a) Coordinates in state plane coordinates Hole Locations Surface North 2782617 ft & East 1725008 ft ASP Zone 4 Nad 83 Top Tyonek North 2782617 ft & East 1725008 ft ASP Zone 4 Nad 83 Total Depth North 2782617 ft & East 1725008 ft ASP Zone 4 Nad 83 APPLICATION FOR PERMIT TO DRILL Baronoff 4 Pilot 2 BARANOF #4 422.55' ...¿, .- oN II N ~ 0 I,{) I" ') =\I=I~GI~==N CORP, NOTES: 1. COORDINATES SHOWN ARE NAD83 ALASKA ST A TE PLANE ZONE 4. 2. GEOGRAPHIC COORDINATES ARE NAD 83. 3. ALL DISTANCES ARE GROUND IN U.S. SURVEY FEET. 4. VERTICAL DATUM IS M.S.L. NGVD 1929. BASED ON BENCHMARK "V102" BARANOF #4 LOCATED 504' FROM THE SOUTH LINE AND 423' FROM THE EAST LINE OF SECTION 30, T 18 N, R 1 W, SEWARD MERIDIAN LAT. 61.36'54.721"N LONG. 149'30'50.392"W ASP ZONE 4 N=2782616.742 E=1725008.077 (NAD 83) GROUND ELEVATION = 403.6' C 1/4 () N 89.51'15" W 2639.44' cD N 0) I""') cD N SE 1/4 SECTION 30 T18N, R1 W, S.M., ALASKA 3: ° ~ êx:J 0 0 0 z 30 @ 31 N 89.51'23" W 2639.43' ~ 1820 N PITTMAN ROAD 30 28 I ¡s <>: 5'~ ~Z' ~I"" .. VICINTY MAP SCALE 29 300 <0 m 1'0 cD N c C§ Ck: w ~ 0 ~ ~ :;I: P (j 25 (f) 30 29 31032 ') RlJ lib -JII 1 MILE N SCALE 1" = 600' 0LOUNSBURY & ASSOCIATES, INC. ENGINEERS-PLANN ERS- SURVEYORS 723 W. 6th AVE. ANCHORAGE, ALASKA 99501 (907) 272-5451 AUGUST 12, 2002 I DWG NAME 028-3W2.DWG PILOT 2 WELL BARANOF #4 PERMIT DRAWING DRAWN FWW I CHECKED KWA I SCALE" = 600' APD Baronoff 4 Pilot 2 =V=I~GI~==N RESOURCES (ALASKA) CORP, A ~~U!;${i~*:'/ ~r E:0r1!1:m P.ß!~Wf(:t$. !m: ) ) (b) Proposed Depth, Depth of each objective formation Estimated Formation Tops Quarternary Gravel Surface Tertiary Tyonek 267 (c) Other Information as required by 20 MC 050(b) For all hole segments, an air hammer will be used to drill the hole. Unlike PDC or conventional bits, air hammers! inherently drill straight holes. This is because the weight on bit is a fraction of the weight required by conventional drilling techniques. Increased weight on bit causes holes to become deviated. For additional information! please refer to Evergreen!s response to the waiver request in Appendix A of this application. Since air hammers have not been widely used in Alaska's oil and gas industry! Evergreen will perform a Totco deviation survey for this well. This information will confirm to the commission that air hammers! by their design, must drill straight holes. It is our aim that after showing the commission that air hammers drill straight holes, that surveys will not be required. 25 AAC 25.005 (c 3) DIAGRAM OF BOPE Evergreen will use air to drill conductor, surface and production holes. Using this system, we plan on using a diverter in lieu of a BOP since our proposed diverter system is an equally effective means of well control in shallow gas wells. This discussion is included as Appendix A submitted August 8, 2002. A diagram of Evergreen's well control arrangement is shown in Figure 3. Two diverters will Evergreen Resources Alaska be used while Surface Well Control Setup drilling the subject well. One for the 11 inch surface casing hole and the other for the 7-7/8 inch production casing hole. For the 11" surface hole, the diverter will connect to the cemented in conductor via a 13- 3/8" ST&C collar. The Production hole!s diverter will connect to the cemented in 8-5/8" surface casing via the 8-5/8" ST&C collar. These diverters are shown in the Figures 4 and 5. APD Baronoff 4 Pilot 2 125. p~i~~.~e_~a.lv_~ 30' x 8" ID Blooey line . ). 20 MMSCFD KICK , ~", "~~~~~-~~' This schematic.shows Evergreen's Air Drilling well control setup. When venting a 20 million standard cubic foot kick of methane, the diverter must contain 40 psi of pressure. The Diverter is rated to 500 psi while drilling and 1,000 psi while static. This is a 12 fold safety factor while drilling and a 24 fold safety factor when pipe is not rotating. Figure 3 - Surface Well Control ') ) :;V:-:I<GI?==N RESOURCES (AlASKA) CORP, A ~~;;t;.ç!if,.,::,¡ c,r f'ér(Jm:'?ì: R(J!;ivf{:$S. !m; EVERGREEN RESOURCES ALASKA SURFACE CASING DIVERTER EVERGREEN RESOURCES ALASKA PRODUCTION CASING DIVERTER ~ ~ I -I ~ ¡] 15 in "I WASHINGTON DIVERTER i' I RUBBER ELEMENT ~ ~ MODEL 401O-CG 7f (See Below) 15 in ~ ~ 161n ~_n.-- 16in To 30 FT BLOOEY LINE 8-5/8", 23 PPF, J-55 CMNG 8,097" ID with Hammer Union connector To 30 FT BLOOEY LINE 8-5/8",23 PPF, J-55 CASING 8,097" ID with Hammer Union connector ~~~"¥ CONNECTOR ¡sa 13-3/8" PIN ST&C, 8 RD, J-55 ,,...---- ,.'-, ".¡.\~ . .~_. ~;.~~ ~~~iI CONNECTOR 8-5/8. PIN ST&C, 8 RD, J-55 Figure 4 Surface Casing Diverter 25 AAC 25.005 (c 4 A) MAXIMUM BOTTOM HOLE PRESSURE The maximum anticipated surface pressure (MASP) for this air-drilled well will equal the formation pore pressure less a full gas column to the surface. Based on offset well data! the highest formation pressure expected in this well is 1,559 psi (10.0 ppg EMW) at the weWs TD of 2,999' TVD (or 0.520 psi/ft). Complete evacuation of the well bore, except for a 0.11 psi/ft gas gradient, is assumed. MASP (pore pressure) = (2,999 ft)(0.520 - 0.11) = 1,230 psi 25 AAC 25.005 (c 4 B) DATA ON POTENTIAL GAS ZONES One gas bearing zone will be encountered during the drilling of this well, namely the Tertiary Tyonek formation. Here, coals will be drilled through along with sandstones and siltstones. There are six wells that have penetrated this zone within the Pioneer Unit. The Quarternary Gravel will also be penetrated. This zone has no gas since there are no barriers for accumulation. This is the area!s fresh water aquifer. 25 AAC 25.005 (c 4 C) POTENTIAL DRilliNG PROBLEMS Since air drilling will be the drilling fluid for this well! problems associated with differential sticking and loss circulation zones, as identified in the regulations! are not relevant. However! issues associated with hole sloughing are a concern. For this reason! 12-3/4 inch conductor casing will be casing air drilled through the Quarternary APD Baronoff 4 Pilot 2 ) ') =\f::I~GI~==N RESOURCES (ALASKA) CORP, A $:'ì!;.,;!äi$:'/ cf E-hr:.m~im P.~~i:vr{:t$. !t?ï Gravel section. This interval will then be cemented in with 26 sacks of cement to prevent water and gravel from sloughing through the conductor annulus. Significant gas volumes produced from formations are easily handled during drilling and this is discussed in Appendix A. To ensure that casing and logs can be run safely, if sufficient gas is being vented, then the well will be killed. On site will be a cement pump! mix tanks and sufficient chemicals to create a 10.5 pound killing fluid. The risk of encountering H2S is negligible. No wells drilled in or near the Pioneer Unit had any indications of hydrogen sulfide. Further! coal bed methane does not contain H2S. Details for H2S are discussed in Appendix A submitted to the commission on August 8! 2002. 25 AAC 25.005 (c 5) FORMATION INTEGRITY TEST Formation integrity tests are not applicable for this application since air drilling with a diverter is being employed. Formation integrity tests require a pressure containment scheme using BOPs to be relevant. Please refer to Appendix A of this application for further discussion. 25 AAC 25.005 (c 6) CASING AND CEMENT PROGRAM The casing and cementing program for the subject well is shown below. For the first well drilled in Pilot Number 2, a single induction log will be run to confirm that the surface casing is set through the fresh water zone. We will drill and set surface casing below the fresh water zone. All remaining surface casing depths will be modified based on this information. Current setting depths are well below all fresh water wells in the area. Casing Information Depth OD ID Pipe Weight Connection New/Used (ft KB) (in) (in) Grade (Ib/ft) Type Conductor 125 12-3/4 12.00 Line Pipe 48.0 ST&C Limited SV5 Surface 300 8-5/8 8.097 K-55 23.0 ST&C New Production 3900 5-1/2 4.892 K-55 17.0 ST&C New For the surface and the production casings! the cement will be circulated to surface. In the case of the conductor pipe, we will attempt to circulate cement with 26 sacks of cement. If cement does not circulate! which is likely since this is a gravel interval drilled with air, then we will fill the annular volume with cement. Cement Information Volume Yield (sacks) (ft3/sk) Type Comments 26 1.18 Class G Circulate, if no circulation, then pour from top 111 1.2 Class G Circulate to Surface 635 1.35 Class G Circulate to Surface Conductor Surface Production Depth (ft KB) 125 300 2990 20 AAC 25.005 (c 4) DIVERTER SYSTEM The diverter system is described in 25 MC 25.005 (c 3) BOP SETUP. 20 AAC 25.005 (c 8) DRilliNG FLUID SYSTEM APD Baronoff 4 Pilot 2 ) ) =\f=I~GI~==I'1 RESOURCES (ALASKA) CORP, A $¡;M!t.~.~:j! c.r f!-mr')mm! P.~.'ii.:Uft;t$. {m: The subject well will be air drilled and therefore utilize no fluid system. The proposed process of air drilling and of killing the well when and if necessary are described in detail in Appendix A dated August 8, 2002. 20 AAC 25.005 (c 9) ABNORMAllY GEOPRESSURED ZONES There are no abnormally geo pressured wells in the Pioneer Unit as discussed in Appendix A, submitted on August 8! 2002. 20 AAC 25.005 (c 10) SEISMIC REF ACTION IRE FLECTION ANALYSIS Evergreen requested a waiver for running seismic as detailed in Appendix A, submitted on August 8, 2002. 20 AAC 25.005 (c 11) OFFSHORE, SEABED CONDITIONS Not applicable. This is an onshore well. 20 AAC 25.005 (c 12) EVIDENCE OF BONDING Evergreen Resources Alaska's state wide bond is on file or will be very shortly with the commission. 20 AAC 25.005 (c 13) COpy OF DRilliNG PROGRAM A copy of the drilling program is shown as Appendix B. 20 AAC 25.005 (c 14) DRilliNG MUD & CUTTINGS DISPOSAL Evergreen has received permission from the Matanuska-Susitna Borough to dispose of drill cuttings at the borough landfill. Because well depths are less than 3!000 feet! we also have permission to dispose of the cuttings at the drill site. 20 AAC 25.005 (d) INTENTIONAllY DEVIATED WEllS This well is not being intentionally deviated 20 AAC 25.005 (e) MULTIPLE BRANCH WEllS This well will not have multiple branches 20 AAC 25.005 (f-h) n/a APD Baronoff 4 Pilot 2 (: ¡°l!d V lJoUOJe8 OdV' SUonsano ~~ÐO" o¡ JaMSU" " x!puadd" ( :Wi .$~:¡J(!ai;~ä iii.:iiJ(.:W/::: j~ it:::;~If$Qf!~~ ¥ 'clHO:) ('1);$'11'1') S3:;)t!nOHi::I I~!== ~I~ '!of:: ;\.:: I œ__{l;;;1(.;...II8M.I .... ( ::V::I<Gi{':::=N ') ') =\I=I~GI~==N Evergreen Resources Alaska Corporation Response to AOGCC Questions August 8, 2002 John Tanigawa Alaska Projects Manager Wasilla, Alaska 907..841..0000 APD Baronoff 4 Pilot 2 ') ') =\f=I~GI~==1\I RESOURCES (ALASKA) CORP, A $«bsMi$Jt}' cf £:~mr~m P.ß!WV¡C~$. rm: Waiver #1 - 20 AAC 25.030(d)(2)- Don't want to cement 100' to 200' conductor to surface. Will use 10 sacks. Surface csg must be set below the glacial gravel section. The gravel section is 500' to 800' thick, not 100' to 200'. The map (Figure 4) is a structure map using sea level datum. You have to add the topographic elevation to get the true thickness. Coals and permeable sands which may be gas bearing are present immediately underlying the glacial gravel section. (I)What would you do to mitigate risks if you drilled a free gas zone prior to setting surface csg? (2) How will free gas affect your cementing plans? (3) Does the fact that you will be setting the conductor in a permeable gravel zone change your ideas about your cementing plan? First, we must make a correction to figure 4 in the C Plan exemption document. Figure 4 does not represent the top of the Tyonek. The figure is improperly labeled. Instead! this is an isopach map showing the thickness of the gravels based on water well data. You are right, if this were a Tops map for the Tyonek! then the 500 to 800 feet would be correct. (1) To mitigate the risks of encountering a gas zone while drilling the surface casing! Evergreen will a) set and partially cement a 12-3/411 conductor casing (to protect fresh water & prevent water from entering well bore during surface hole drilling)! b) Use a diverter (to redirect gas from annulus), c) Utilize a series of check valves in the drill string (to eliminate gas up drill pipe) and d) Drill with air. Described below is a description of this process and how it will mitigate dangers during this portion of the well plan. a) Evergreen will hire a water well contractor to casing drill (e.g., casing is drill pipe) the conductor through the Tertiary gravel and into the top +/-25 feet of the Tyonek formation. Depths are estimated to be 100 feet in Pilots 2 and 3 and 200 feet in Pilot 1. This section of the hole will be reverse circulated using air. After the casing is set, a 13-3/811!ST&C, 8 rd, J-55 collar will be installed at surface via a bell nipple. We will attempt to circulate cement to surface using 20-30 sx of 15.6 ppg cement or 150%> of the annular volume. If cement does not circulate, which is likely in an air drilled hole through gravel, then we will pour additional cement sacks from surface until full. Before drilling out! the conductor will be pressure tested to 100 psi or ~ psi/ft of the conductor setting depth. The conductor, therefore will be sealed. It is noted here that the primary reason for cementing the conductor is to prevent water from entering into the well bore while drilling the surface hole and not for kick protection. This is because, kick protection in the traditional sense! is not needed in an air drilled hole. b) Next, a 13-3/811 x 4-1/Z' drill pipe diverter will then be installed. The diverter will screw into the conductor casing. The 11 II surface hole will be drilled using an air hammer bit at 3!000 scfm of air. The diverter will redirect air, methane, cuttings! APD Baronoff 4 Pilot 2 ) ) =V=I~GI~==I'I RESOURCES (ALASKA) CORP, A ~Mt.~Mi.'#'l ct f!'!~r9mm: P.e:~;Urt':~$. !11i.' and water from the annulus to the cuttings pit via an 8" diameter by 30 foot blooey line - well away from the drilling table. This diverter head is fabricated by Evergreen! has been used for 7 years, has drilled over 575 wells in a variety of working conditions. Pressure rating is estimated to be 250 psi working and 500 psi static, which is half of a similar Washington or Williams diverter. This pressure rating should be adequate. For example! if 100 MCFD of methane gas were being vented, the diverter would see approximately 20 psi of pressure. c) We must also prevent natural gas from flowing up through the drill pipe during connections. This is handled through a series of check valves inside the 4-1/2" drill pipe. d) Finally, as will be shown later in this report, handling shallow gas kicks is arguably safer using air than in mud drilling. This is because well control is not based on containment of the formation pressures! where high pressure BOP's, and very large (in excess of 16 inches) are required. Instead, the formation is allowed to vent and high pressures are not allowed to build-up. (2) A free gas zone does not affect our cementing plans. Surface cement will have a density of 15 ppg. (3) We plan to sent the conductor casing below the gravel zone and into the top of the Tyonek formation. We plan to drill roughly 25 feet into the Tyonek. We were not planning on setting above the Tyonek. Waiver #2- 20 AAC 25.033 (b) Drill under balanced with air. , (1) There are some permeable sands in the section. Some coals may also be permeable and may contain only gas and no water. Your plan is to have fluid and cement on location. Do you understand that the BLT #1 tested individually up to 40BBLS/hour of gassy water from several sands and one coal suggesting artesian or other type of over-pressured systems? We think that the Pittman well also encountered gas sands. You should verify that. (2) Have you evaluated the mud weights in wells drilled in the area? (3) What volume of air will you be using? Would it be sufficient to dilute a zone capable of 2000mcfd to below lower explosive limit (LEL) at hydrostatic pressure? (4) What is the maximum expected equivalent mud weight attainable from the drilling air? (5) What equipment is available to pump kill weight fluid and how will it be pre-staged? What would be the response time if a kick occurred? (1) You are correct for the BL T #1 there was a 40 bbllhr flow of gas cut water. We were unable to find information at the commission library regarding the Pitman #1 well. However, If we encounter 40 bblslhr of gas-cut water! this will not be a problem. We have effectively air drilled with water rates in excess of 250 bblslhr of gas-cut water! further! we will have the pump equipment! and additives to kill the well on site. (2) We have evaluated the mud weights in the area. This data is shown in the table below. Generally! wells were drilled with muds in the 9.5 to 10.0 ppg range for the depths we are drilling. (3) The volume of air we will be 2!000 scfm for the 7-7/8 inch hole and 3!000 scfm for the 11 inch hole. The lower explosive limit (LEL) in ideal conditions is 50/0 and the APD Baronoff 4 Pilot 2 ') =\f=ltGI~==I\1 RESOURCES (ALASKA) CORP, A $;;bsfdi$rj' d r:~~m)r1m: P.ß!;(;Vr~:t$. 1m: ') Upper explosive limit (UEL) is 12% by volume of methane in air [U S Bureau of Mines, R.I. no. 4751, 1950]. At concentrations above the LEL threshold, the air- methane mixture capable of ignition. Formations can therefore flow up to 144 Mcfd of methane in the 7-7/8" production hole and 218 Mcfd in the larger surface hole before fire is possible. Even when one drills wells in this condition! down hole are almost unheard of in CBM reservoirs. This is because even when one is in the explosive window, it is virtually impossible ignite the gas. Ignition sources in these shallow wells are principally thought to be from the bit cutting the rock and drill pipe rotating against a formation or surface/conductor casing. While operating an air hammer however, water is injected into the compressed air at 20 gpm to cool the bit and the hammer mechanism. This water mixture creates a fine mist that prevents sparks from occurring. Further! formation waters are produced during the drilling that further wets the system. Proof however is evident in the fact that thousands of wells have been drilled into CBM reservoirs using air without any down hole fires. (4) The maximum bottom hole pressure just above the bit in the annulus is 30 to 70 psi while air drilling the production hole at 3,000 feet. Mud weights are very low. (5) Equipment that will be on hand to kill the well will be Evergreen's cement unit! batch mixer consisting of two 75 bbl mix tanks water and weighting agents to build two batches of 10.5 ppg mud (or a single 13.5 r ' ppg mud). Evergreen's portable cementer is shown in the figure below. This pump has 4.5" plungers and is capable of pumping at 6,228 psi at 13.3 bpm. The two 75 bbl batch mix tanks are designed to be used as a cement mixer or as a mud tank and are equipped with paddles to mix the weighting agents into the water. Calcium chloride will be our weighting mechanism, xanthan guar will be used to build viscosity and lost circulation material (bark! celoflake, et cetera) will be used to assist in lowering the fluid loss. Concentrations of each are the following: 123 Ibs/bbl CaCI! 1.5 Ibs/bbl Xanthan guar ' Evergreen Portable Batch-Mixer and 10 Ibs/bbl lost circulation material. A 28 foot trailer will house the chemicals and will be on location at all times. Evergreen Cement Portable Pump Waiver #3- 20 AAC 25.035- No BOPE. (1) Have you examined the Houston #1 and #2 well histories and operations? These wells were drilled with air up to 500' into the coal sections without even a diverter. Ignore Houston #4 since it spuded in metamorphic basement. (2) Can you demonstrate that you have a means of well control that is equally effective to a BOPE? I will do this. APD Baronoff 4 Pilot 2 ") ') ,::V=I~Gi~==N RESOURCES (ALASKA) CORP, A ¿~:;Mi,ljt:y cf r-:l!~r9m;'ì; R~!.'.(=im:~~. 1m: (3) Your report states that you will have a lOOOpsi diverter. Is that the pressure rating of the pipe or actual drilling air pressure? Does that imply that you will be using different equipment than what the Commission observed in the Raton Basin? We need a more clear description of your well control equipment. I will do this. I will need some help with CAD work though. (1) The GRI, Inc's Houston 1,2 3 & 4 well records are unavailable to Evergreen. We have talked to people and have read reports on this project. These wells are relevant due to their close proximity to the Pioneer Unit. Four CBM wells were drilled representing the first time that air drilling technology was employed in Alaska. BOP's were installed after the surface casing! drilled 700 feet into the Tyonek formation, was set (Evergreen as a comparison will drill +/- 25 feet into the Tyonek. Wells were then drilled to roughly 2,100 feet and 4-1/2" casing was run. Coal, sandstones and siltstones were encountered from surface to TO. Although shallow gas was venting during the entire drilling process (even w/o a diverter during surface hole drilling), because the well was allowed to vent and not build up pressure! no well control issues arose and the BOP was never engaged for well control purposes. The successful drilling of these four wells proves that air drilling is an effective way to drill the shallow Tyonek formation in this area. (2) Not only will Evergreen demonstrate that we have an equally effective means of well control but, in fact, air drilling at these shallow depths is safer than mud drilling for shallow gas kicks. Mud drilling relies on always being in an overbalanced drilling condition. As history shows, this does not always happen. When kicks occur! the key to safety is detecting before the well becomes uncontrolled. Detecting shallow gas kicks are difficult since they are relatively hard to detect and because they occur very quickly. The well control strategy in mud drilling is pressure containment. For this reason, elaborate BOP's, choke manifolds! gas busters and very large blooey lines, like those stipulated in the AOGCC regulations are required. Air drilling on the other hand! has a completely different approach to well control. In air drilling our strategy is to allow the well to continually kick. The beauty in this strategy is that pressures are not allowed to build-up thereby eliminating the need for a BOP. Gas is redirected away from the drilling table to the cuttings pit via a blooey line and a diverter head. A Diverter head has a rubber element that seals the annular area between the casing and the drill pipe. To prevent gas from migrating up the drill string, a series of check valves (floats) will be incorporated. If a shallow gas zone is encountered! then the formation is allowed to vent while drilling ahead until bad hole conditions or excessive amounts of water are produced. APD Baronoff 4 Pilot 2 ::\I=I~GI~==I'I 4-1/2"0, ,,, )pe Surface Well Control Setup} The amount Washington gas that can 500 psi safely vented Oiverter Head drilling is considerable. 8-5/8" Surlace Casing illustrate, using Evergreen!s This schematic sþr.~:~,;~;, proposed set footkickofmett~~~ drilling and 1,000 psi whi consisting of pipe is not rotating. Washington stripping head sealing 4-1/211 drill pipe on 8-5/811 casing, 30 foot by 811 10 blooey line! venting 20 million cubic feet of gas per day will generate 40 psia (25 psi gauge) of pressure below the diverter. [Reference: Equation 8-3, Air and Gas Drilling Manual, Lyons et al! McGraw Hill Press! 2001]. This is a lot of gas - roughly 7 times that of our air injection rate. Since the Washington Head is rated to 500 psi dynamic (e.g.! while the pipe is rotating) and 1,000 psi static! a 12 fold safety factor still exists when venting while drilling and a 24 fold safety factor while pipe is not rotating. RESOURCES (ALASKA) COR!', A ~~¡¡b$Î(f,.,:;:)' c, E;;(rgl~m P.4~w(}rt:~$. 1m: 125 psi gate valve 3D' x 8" 10 Blooey Line VENTING 20 MMSCFD KICK of be in air ~~r ¡~,!,."¡-",,,'f:lt ,r"""',.,-",-.;:,, -"".:",-","¡, ,<,',r,¡<", "<:":""""~':"':"'"';"~"." ,"'j1" """~;,., ".,'i!rd cubic ..[¡:"~~~~~~~~\~~when FORMA TI Ground Level To up a Finally, if too much gas is being vented! especially during the running of casing and open hole logs, then Evergreen will kill the well by pumping gelled water down the hole. If necessary, a weighted mud system, as described in the previous mitigation measure, will be implemented. Here a cement pump, batch mixer and materials to make a 10.5+ ppg mud will be on location at all times. So far this year, Evergreen has drilled over 42 miles of hole using an under balanced fluid! diverter head and blooey line like the ones proposed here. There have been no well control incidents this year or in any year previous. Simply put, if the well vents too much gas, we get a water truck and pump water to kill the well. In this case, no cement pump is on stand-by on location. (3) Evergreen will utilize two different diverter heads - one for the 11 inch surface hole and one for the 7-7/8 inch production hole. The surface hole diverter is of Evergreen manufacture. The body consists of a 16 inch 75 ppf piece of casing 20 inches high. The bottom has a 13-3/811 pin connector that screws directly into the conductor. There is a 8-5/811 00 opening (8.09T' 10) that mates directly with the 8-5/811 blooey line. On the top is a 9 hole threaded flange where the Washington head is APD Baronoff 4 Pilot 2 Rubber Element 15"'-----+-, ~"~4Í8IÌÞ)- .;-. + .;,;'''w' , -, ".~~ .-' , '¡;r' . ,."..1 STOCK S,ZES 4C10-Ä ¿'.;?ii$ 4010..6 31/2" . 4" 40 DC -4 1!2 '~),1,,~S;' \ } =V=I~GI~==I\I RESOURCES (ALASKA) CORI>. A ¿~ut;$!ilj.~:)' cf ;;:~rg~'1;~¡; Rr}!Õ¡;¡;F¡;$;$, !m:. ') screwed in. This is the diverter seen in by the AOGCC in Colorado. Photos of the head and the rubber element are show to the right. Because of its similar design and materials, compared to the Washington heads! Evergreen has not pressure rated this head. However, from experience! we estimate that it can handle up to 250 psi dynamic and 500 psi static of pressure or 500/0 of the manufacturer!s rating for the rubber element. As the calculation in the previous section answered, 250 psi provides several orders of magnitude of safety factors when drilling surface holes. This same head has been used over 1 !OOO hole sections in Colorado. The production hole will utilize a 1358 Washington Stripping head. This head has an 8-5/8"! ST&C! 8 round pin on bottom that directly screws into the 8- 5/8'! surface casing. There is an 8-5/8" 00 opening that connects directly with the 30 foot blooey line. For both the production hole and the surface hole, the same rubber stripping element is used. Pressure ratings for this head are 500 psi dynamic (Le., while drilling) and 1,000 psi static (Le.! while the pipe is not moving). A picture of the Washington head is shown to the right. The only difference between this head and the one we plan to use is that the bottom here is flanged whereas Evergreen's has an 8-5/8!' pin. ~~.. ~Jt'¥y~."",,,~.,Ioot,llo..all! ...~. -: .:: .' Waiver #4- 20 AAC 25.050 No directional surveying. (1) Well is meant to be vertical. The drilling assembly cannot deviate because of its mechanics. However approval of this waiver will probably be dependent on proximity to property lines. Do you have the ability to run a well bore survey log? (2) Can you expand on the reasons deviation of the wellbore will not be significant? (1) Evergreen's drilling rig is not equipped to run (Totco) surveys. well documented fact that air drilling using a hammer must! because of the physics of the system, drill vertical holes. Evergreen will however run Totco surveys via cased hole wireline in the first two wells to prove to the commission that this drilling method produces vertical holes. (2) Evergreen utilizes an Ingersoll Rand Quantum Leap down hole hammer located immediately above the bit. This mechanism is basically a jack hammer located down hole. Air passing through the hammer actuates a piston that that cycles roughly 700 times per minute. Effective stroke on the hammer is roughly 1/5ths of an inch. Pressure required to actuate the hammer action is 200 to 450 psi. In terms of energy transfer to the formation for drilling! the air Hammer is an extremely efficient way to drill. Penetration rates exceeding 200 feet per hour are typical. Shown to the right is a schematic of a down APD Baronoff 4 Pilot 2 This is because the ') ') =V=I~GI~==N RESOURCES (AlASKA) CORP, A ~~¡'¡b$i¡!i,'t'l of r:vm")m:?ì; P.~::i'i.ìfæ$. r;~ï hole hammer and bit. The primary reason that air hammer drilling produces straight holes is because of the low weight on bit required to drill efficiently. Ingersoll Rand recommends that for an 7-7/8" hole! the weight on bit be 3,900 Ibs or 500 psi per inch diameter of hole. More weight would inhibit the hammer!s action causing the bit to simply drag across the formation instead of hammering into it. As a comparison, traditional bits require 3,000 to 6!000 pounds of weight per inch diameter of hole drilled. This means that for an 7-7/8" hole! one would need 24,000 Ibs to 48,000 Ibs on the bit to drill. The weight on bit has a profound effect on how vertical a hole is - less weight means straighter holes. Lubinkski and Woods in the 1950's provided the industry with the basic understanding of drilling vertical and inclined holes. Here they defined several forces on the bottom hole assemblies and drill pipes that cause the hole to deviate from vertical. In his paper entitled "Influences of Tension and Compression on Straightness and buckling", API, 1959, Volume 31! Lubinski presents equations, still used today, that conclude that the lower the weight on the bit, the more vertical the hole. Because air drilling requires very little weight on bit! buckling in the BHA and the drill string and torsional affects due to dragging the bit and the drill pipe - all of which create deviations from vertical - are eliminated. Waiver #5- 20 AAC 25.061 No seismic evaluation for shallow gas hazard. Can be justified by answers to questions under Waiver #2. Evergreen hopes that answers found in Waiver 2 and 3 provide sufficient information and surety to grant this waiver. We will further suggest that in shallow gas development! where unconventional reservoirs are the targets! that seismic is not an appropriate exploration technique. This is because unconventional formations - like coal! shales and tight sands - are ubiquitous and cover large areas. The axiom in this exploration realm is: Targets are easy to find but difficult to produce. Thus the preferred method to explore is through the drill bit and the completion rig. Completion and production techniques define the success and failure of these plays! not drilling. Seismic is not valid since we have a high degree of confidence that the formations are there. Oil and gas targets, are the conjugate - difficult to find but easy to produce. Because targets are more difficult to find! seismic is usually run. To have velocity surveys specified in MC 25.061 make sense in this exploration regime. However! this regulation does not pertain to shallow gas development. Evergreen looks forward to working with the commission on the application of this regulation to shallow gas in particular. Waiver #6- 20AAC 25.066 Not have three methane and HzS detectors present. because of rig configuration. No enclosed spaces. (1) Are there any areas where gas could accumulate? APD Baronoff 4 Pilot 2 Meaningless -) ) =V=I~GI~==N RESOURCES (ALASKA) COAl'. A. ~:;;'itJ$iif,~~! cf ¡;-jef(Jr1:m A~:<iõV¡(;t$. !ì1C (2) Do you know of any circumstances in Tyonek section in Cook Inlet Basin where H2S naturally occurs? (1) There are no areas where gas can accumulate. Gas produced will be methane with a molecular weight of 16 versus (air is 29). This means that methane is lighter and will disperse in an upwardly direction. (2) There are no known instances where H2S naturally occurs in the Cook Inlet and particularly in the wells drilled in the Pioneer Unit. Furthermore! even if H2S was present in the coalification process (there is no evidence of this), it is impossible for the hydrogen sulfide to replace the methane adsorbed on the coal. Waiver #7- 20AAC 25.527- No API standards All relevant waivers already covered. Spacing Exceptions- 20AAC 25.055 Wells may be within 1500' of property lines. Wells are 1100' apart. Cannot waive any regulation that affects other person's rights. Figures 18, 20, & 21 indicate the need for spacing exceptions because the wells appear to be within 1500' of a property line. Are any of the wells within 1500' of a property/lease line? Are the colored areas on Figures 18, 20, & 21 the only Evergreen leases? I.e.: Are the white areas on Figures 18,20, & 21 leased by Evergreen? Do you have a reallandmap? Who are the lessors? Maps shown in the Plan of Operations are surface landowner maps. Shown below are land maps showing mineral ownership for Pilots 1, 2 and 3. Also shown on these maps are the proposed well sites which have already been surveyed. Also included in these maps are 1 !500 foot radius circles around each well showing which mineral interest owners are within this area. It should be mentioned here! that the well names presented in the Plan of Operations and in this document will be changed when drilling permits are submitted. Pilot 1 is situated on the Smith (Fee lease). Here the Smiths own the surface and the minerals. As the figure illustrates all wells are all within 1 !500 feet of the mineral property line. Here, the State of Alaska owns the minerals and Evergreen has those minerals leased. Pilots 2 and 3 are located on State of Alaska Minerals. These minerals are all leased by Evergreen. Like Pilot 1, all wells are within 1 !500 feet of the mineral property line. Adjacent to this acreage are federal acreage blocks that are prohibited from leasing. Evergreen has met with the Bureau of land Management and described our plans to drill. Since this is an exploration project where no gas will be sold (only vented)! they are not opposed to our program. If economic quantities of gas are required, then a Compensatory Royalty agreement will be signed between Evergreen and the BlM. Close to but not within the 1,500 foot radius! are the Mental Health Trust lands to the East of Pilot 3 and the University of Alaska lands to the west. Evergreen Alaska leases APD Baronoff 4 Pilot 2 =\f=I~GI~==1\I RESOURCES (ALASKA) CORP. A ~~I."tJ$hfi~:)' ct F:11!?)r1:m p,~:~;Vf(:~$. 1m' ~) ) the Mental Health Trust Lands and is in the process of finalizing the University lands to the west. All wells are 940 to 1! 100 feet apart and are designed in a way to test the Tyonek Coal Seams. In a production mode, wells will be spaced much farther apart. The table on the next page summarizes the well placement information. This data is from the surveys done. I Federal (UnleaSeable~ c=:' // I !/~" /iii¡j // t;:--~,"\ ',/\<~< "'-" "'" 1:,\C<J ~ "'01". / ',/ C-- PÌlpt 1, wel,li- I /' -",..::,.', /, ,.:Þilat ¡Well '3 .,' ),:,:, ' \ \ ,\,." \ ", / \ ' '\, 'Pilot L We!l4 \) 2 ' ", ,\' ... ' : \ " \, ( '-." ,PiJcit~~2Y.':' \:,' ,,// ", , " . / ! //' State of Alaska '''\,'----~~/ /~' -' (Evergreen) \ (EVergree~/ ," ~' ¡ '''-, -----'----- ,,/ ....,----------/..-"""/ 1,500 ftl.1l(,ll~ Federal (unleaseableì State of Alaska (Evergreen) ,c-j "ri It\';;;t/1 "", / =- ,..:;:./ \.<'::>~ ["'.' .,,,, State of Alaska (Evergreen) , ,2;ak," , (e;vergreen) Pilot 1 Land Map "~ì'~ Mental Health Trust (Evergreen) ----- Permit Name Evergreen Well Placement for Pilots 1, 2 and 3 Pilot 1 Well 1 Pilot 1 Well 2 Pilot 1 Well 3 Pilot 1 Well 4 Pilot 2 Well 1 Pilot 2 Well 2 Pilot 2 Well 3 Pilot 2 Well 4 Pilot 3 Well 1 Pilot 3 Well 2 Pilot 3 Well 3 Pilot 3 Well 4 APD Baronoff 4 Pilot 2 Well Name DL Smith Gary & Jo Ann Stromberg Robert Smith Cornhusker Cook Lowell Bering Baronoff Tyonek Kenai lliamna Nanwalek S-T-R See 2 T17N R3W See 2 T17N R3W See 2 T17N R3W See 2 T17N R3W See 30 T18N R1W See 30 T18N R1W See 30 T18N R1W See 30 T18N R1W See 20 T18N R1W See 29 T18N R1W See 29 T18N R1W See 20 T18N R1W Footage (from section) 1255 FNL & 933 FWL 2426 FSL & 141 FEL 3272 FSL & 606 FEL 652 FNL & 293 FEL 967 FSL & 1329 FEL 504 FSL & 422 FEL 1523 FSL & 471 FEL 991 FSL & 888 FEL 815 FSL & 1832 FWL 236 FNL & 2403 FWL 212 FNL& 1205 FWL 301 FSL & 1841 FWL SlolO of AID.k. (E..rgr..n) of AI's~. rgreen) APD Baronoff 4 Pilot 2 ') (Unl...".bl"l Slale of AI.,k. (Evergreen) 19 20 ~" ./'" "fld!l.l. "', f,ltCIeral ""~'",(Unluse'ble) U:~:::: .... ¡,/ '.. , " Ip",.lIng£..,gr.." i I. /'--------:-~-------"";'\"'\1 ¡ ./ PffÓ, 3 wen '1-, " i'>' "", . " " \, "'" ," \"\ \" '>11013 8 W"II 4 \~'\ ::'; \ , 8 .¿, ( '''P!~~,:3~3,'~ ! \"~./ federal fUnle..eable) Stalt! 01 Alaska (Evergreen) UnlvemUy r>f AI..ka (Pending Ev.rg,.en) Fed"r.1 (Unle.se.ble) I I s18le of Alaska (Ev"rgreen) 30 ./ ------~----, //'~;~;\ 'l~n~:::;:~le) ,-- ('. /' Pilot2Wel;¡ \', ': 8 \ +t". .,":'~j' ) . ,\ " , Pilot Z Well ~ ' ,.,~~~: ~" Feder.1 (Unl..se.ble) ~ State of Alnk. (Evergr..n) f"der.1 (Unie.se.ble) Pilots 2 (South) and 3 (North) Land Map Stale of AI.sk. (Evorgr....n) Mef1tal Health Trust (Evergr"",,) University of Alask. (Pending E..,gr....n State of AI.sk. (E..rg...en) Unlll-f'1r'qr of Alaska (PePdtne ev~o,,"nJ aJnpa:>OJd 6UIIIIJO pasodoJd B x!puaddv ( Z ¡°l!d V 1:I°UOJe8 Od\f (~ I'I::=~IÐ!I=J\= =V=I~GI~==N COR!', ') ') Proposed Drilling Procedure Evergreen Alaska Corporation Elevation Field Target Proposed TD Baronoff 4 (Pilot 2) SE/SE of Sec 30 Twp 18 North Rng 1 West Seward Meridian 504' FSL & 423' FEL OF SEC Matanuska-Susitna Borough! Alaska USA Kelly: 407 Ground: 404 ft (3 ft AGL) Pioneer Unit Tertiary Tyonek 3900 Well Location Objective Air drill, log and set casing for the subject coal bed methane exploration well. Casing Program Hole Casing Casing Casing Size Size Weight Casing Casing Depth Cement (in) (in) (Ibs/ft) Grade Connection (ft) Interval Conductor 13.875 12.75 49 H2O Pipe Welded 125 to surface Surface 11.00 8.625 24.0 J-55 ST &C 8 Round 300 to surface Production 7.875 5.50 17.0 J-55 ST&C 8 Round 3900 to surface Open Hole Logging Program Log Interval Spontaneous Potential TO to ::!: 20 ft in Surface Casing Single Induction TD to ::!: 20 ft in Surface Casing Gamma Ray TD to ::!: 20 ft in Surface Casing Caliper TO to ::!: 20 ft in Surface Casing Compensated Density TD to ::!: 20 ft in Surface Casing The first well drilled in each pilot will have an induction log run on the surface hole to confirm that we have drilled beyond the fresh water zone. A Totco survey will be run in the cased hole to confirm that hammer air drilled holes must be vertical. Mud logging Program Mud log the subject well from surface to TO. Samples every 10 feet. Formation Tops Formation Quarternary Gravel Tertiary T yonek Estimated Tops (ft KB) Surface 257 Generallnformation All information not publicly available is considered Tight Hole and confidential. Spill Prevention Plan and Bear Mitigation measures must be adhered to at all times. APD Baronoff 4 Pilot 2 ;: V=i{GI~==N RESOURCES (ALASKA) CORP, A ~~,¡b$M¡$.:t'/ cf E1(!r9r1i~l~ P.~~;c;m:~$, ¡11C ') ) Baronoff 4 (Pilot 2) Section 30 Twp 18 North Rng 1 West Seward Meridian Matanuska-Susitna Borough! Alaska SURFACE AND PRODUCTION HOLE 1. MIRU Evergreen Rig Number 1. Rig Layout is shown in Figure 1. Crane will be on location to unload Evergreen Portable cementer and Portable batch mixer. A 28 foot trailer with mud additives to kill well will be adjacent to the cement unit. Have kill likes from cement pump to rig's stand pipe ready for kill operation. 2. NU Oiverter head (13-3/8" pin on bottom x 4-1/2" OP) and 30 feet 8-5/8",24 ppf blooey line with 125 psi gate valve. 3. RIH with 11" bit on hammer, stablizer on 4-1/2", 17 ppf drill pipe. Air hammer drill surface hole to 350 feet. 4. Condition Hole. 5. POOH & LO drill pipe, stablizer! hammer and bit on trailer. Move pipe trailer 30 feet forward. 6. RIH with 8-5/8",24 ppf, J-55, ST&C, 8 round! Range II casing (no casing greater than 31.5 feet)! with centralizers on 1S\ 3rd and 5th joint. Run open-ended. Set casing at ground level. 7. Install cement head. 8. RU Cementers. Circulate cement to surface. 9. Shut-valve at surface. Wait on cement 6 hours. 10.0pen valve on cementing head. Ensure that the cement has set. RIH with 7- 7/8!! drill bit, hammer, stabilizer on 4-1/2" drill pipe. Tag cement. Ensure that there is 10 feet of cement inside casing. If not, then do not drill out, and contact Evergreen for further instructions. 11.lnstall Washington Oiverter Head (8-5/8", 8 rd pin, ST&C) and 30 ft blooey line (used to drill out surface casing). 12. Drill a head to 2,990 ft KB. Well will be TO'd above this level if significant hole problems occur. 13. Condition hole with air. Monitor gas flow from well for 5 minutes. If gas is venting from hole at rates too high to safely run casing, then kill well with water. If water is not sufficient, then! weight up with 10 ppg fluid consisting of xanthan gel (125 CaCI sx/100 bbl, 2 sx xanthan gel/100 bbl). 14. POOH & LO bit, hammer, stabilizer! drill pipe. 15. MIRU Patterson Wireline. Run open hole log suite consisting of gamma, compensated neutron! caliper! induction & spontaneous potential. Confirm setting depth of casing. 16. Install Casing Running Oiverter on 30 foot blooey line. 17. RIH with 5-1/2" guide shoe, shoe joint! insert and remaining 5-1/2!! 17 ppf! ST&C, J-55, 8 round! Range II casing (31.5 max length), with 5 bow centralizers on 1S\ 3rd! 10th! 15th and 20th joint. Install 500 psi casing head & run 5-1/2" casing with with 6!! of stick-up. 18. Cement production casing from bottom to surface. 19. Clean-up well site. 20. ROMO Cement Unit and proceed to next well 21. ROMO Evergreen Rig #1 and proceed to next well. APD Baronoff 4 Pilot 2 =\I=I~GI~==I'I RESOURCES (ALASKA) CORP, A ~M}$!iti$rr' cf F1!~rQre:m P.e~;(1¡;r!:Ø$. !i1i' ) ) PROPOSED Drilling Procedure Baronoff 4 (Pilot 2) Section 30 Twp 18 North Rng 1 West Seward Meridian Matanuska-Susitna Borough, Alaska Conductor 12-3/4 inch Welded conn. Set at 300 feet KB Cemented with 50 sx Surface Casing 8-5/8 inch 24 ppf, J-55 ST&C! 8 Rd Range II Set at 50 feet Cement circulated to surface with 250 sx cement Production Casing 5-1/2 inch 17 ppf! J-55 ST&C, 8 Rd Range II Set at 3,900 ft KB Cement circulated to surface with 635 sx cement APD Baronoff 4 Pilot 2 =\'=I~GI~==I\I RESOURCES (ALASKA) CORP, A ~Wb$Mj,~t'f t';f E~~r9!'1m: Rß:wvfæ$, !!?i: ') ') PROPOSED Telephone Contact List Baronoff 4 (Pilot 2) Section 30 Twp 18 North Rng 1 West Seward Meridian Matanuska-Susitna Borough, Alaska Company Name Location Telephone Columbine Mudlogging Spencer Flournoy Henderson, CO Office: 303-289-7764 Fax: 303-289-7764 Trinidad (Trails Inn Motel) Front Desk: 719-846-4425 Patterson Wireline Pat Patterson Weston, Colorado Office: 719-868-2119/3311 Evergreen Resources Alaska John Tanigawa Wasilla! AK Office:907 -357 -8130 P.O. Box 871845 AK Proj Manager Fax: 907-357-8340 Wasilla, AK 99687 Cell:907 -841-0000 Evergreen Resources Inc. Tom Hemler Denver, Colorado Office: 303-298-81 00 Suite 1200 Drilling Manager Fax: 303-298-7800 1401 Seventeenth Street Cell:719-680-1378 Denver, Colorado 80202 P.O. Box 660 Jerry Jacobs Denver, Colorado 80201-0660 Enviro Manager Pense Brothers Drilling Larry Pense Glenpool, OK Office:918-322-3095 Mobil 918-625-1668 Fax: 918-322-3829 APD Baronoff 4 Pilot 2 - ---~'-- ~ LC) " ~ en (!) Z :: ::J 0 I- 0 w Q::: 0 -.." ~ Q::: w co I- Q::: \) EVERGREEN RESOURCES ALASKA CORP DRilliNG SITE LAY OUT 500 Bbl Frae Tank D- C]) C]) "0 ;t:: :t:l{) a.- U) "0 TI o>cc]) .£; 0 c =§;t::¿ U~ x ;t:: 0 0 ã5 x ~ ..c 0 Õ co ~ ã5 x ~ ..c Q 0 ~ Blooey Line 30 ft (8 in) Mudlogger Trailer "0 Q) "Eo> ::J.- 00::: ~'ê ~O 0 ::J ~ I. WEll Light Plant D .ill c Q) E Q) 0 D Light Plant Cement Additives Mud Supply Trailer Two Compressors Air Booster & Fuel Trailer Doghouse & Parts Trailer Pipe Trailer I 20' Trailer IIFlatbed I Truck Core Desorb Trailer DD Toilet Trash 200 ft ~~ 0~ ~~ «~ <D <D 0 en C 0 0 <D~ -IC ;t::UJ 0"'0 ('f)O 0 Q::: =\f=I~GI~==I,1 RESOI,!f!Cf.fi Ult A~;::A\ (:ORP. Wellhead Location ;::: 0 0 80 ft 0 1 20 ft ;::: LC:: r-.. '---" Items Description Mud Supply Trailer - 28 ft enclosed Batch Mixer - Two 75 bbl tanks 500 BBl Frac Tank - Fresh Water Cementer - on 20'x8'x8.S' skid Cement Additives - 20'x8'x8.5' conex Light Plants - Two to Three on site Compressor - Two Ingersoll Rand XHP 900 scfm/3S0 psi Booster - Hurricane 3,000 scfm at 1,000 psig Light Fuel Tank - 1,SOO gallon diesel tank wlauto shut-off Plant Doghouse Toolshed - 40 ft container wIgen-set D Pipe Trailer - has 3,300 ft of 30 ft rods 20' Trailer - holds spider, casing running equipment, BHAs Core Desorbtion Trailer - 18-24 ft trailer on site when coring Mudlogging Trailer - 18 ft trailer wI gas chromat & computer Drill Rig -1999 Ingersoll Rand RD-20 Truck Mounted Drill Rig Blooey Line - 30 ft length & 8-S/8", 24 ppf casing Cuttings Pit - 100ft by 30 ft by 6 ft deep lined Berm - use material from cuttings pit to stop blooey line pits Parking Area - At rear of location Kill Lines - from cementer to drill rig, always rigged up Toilet - Portable Toilet on Trailer Trash - Commercial or Fabricated Bin ,,-/ =\'=I~GI~==I'I RESOURCES CORP. Well Control Diagrams Baronoff ~ EVERGREEN RESOURCES ALASKA SURFACE CASING DIVERTER EVERGREEN RESOURCES ALASKA PRODUCTION CASING DIVERTER ~~. 16 in CONNECTOR is a 13-3/8" PIN ST&C, 8 RD, J.55 J:6'~=~} r'. APD Baronoff 4 Pilot 2 WASHINGTON DIVERTER RUBBER ELEMENT MODEL 401 o-c (See Below) 16 in To 30 FT BLOOEY LINE 8-518", 23 PPF. J-55 CASING 8.097" 10 with Hammer Union connectc CONNECTOR 8-5/8" PIN ST&C, 8 RD, J-55 . :. ~: . ~\.'~k~:;>~t~~ .,. ~~-._...n ~~~~:::'~l_.--"."-""~~:;~.-- ....1. ,.0:::-- ~~I ~~:.-~.,- I. .' [ 1 . !; , ~' - WASHINGTON DIVERTER r<UBBER ELEMENT MODEL 401 O-C (See Below) Pressure Rating: 1 ,000 psi Static, 500 psi Dynamic To 30 FT BLOOEY LINE 8.5/8", 23 PPF. J-55 CASING 8.097" 10 with Hammer Union connector _.."..dYiH¥fÆ1m,. . =\I=I~GI~==I\I RESOURCES (ALASKA) CORP, A ~ì('!')'sk!;iJl.¡: r;i ;;""1f~Wf#r(: Hr¡~'I"o;:;. !:o;( Tubular and Cement Information Baronoff 4 (Pilot 2) Section 30 Twp 18 North Rng 1 West Seward Meridian Matanuska-Susitna Borough! Alaska Drill Pipe 11" Hole 11" Hole 8" Hole 8" Hole Size Pipe Weight ID Drift Collapse Burst Tinsile Capacity Capacity Capacity Capacity Annulus Annulus Annulus Annulus (in) Grade (ppf) (in) (in) (psi) (psi) (Kpsi) (bbl/ft) (ftIbbl) (gal/ft) (ftIgal) (bbl/ft) (ftIbbl) (bbl/ft) (ftIbbl) 4-1/2 0 16.6 3.826 2.812 7,620 7,210 242 0.01422 70.32 0.5972 1.6744 0.0979 10.2175 0.0425 23.5295 I'J Surface Casing 11" Hole 11" Hole 11!' Hole 11" Hole Size Pipe Weight ID Drift Collapse Burst Tinsile Capacity Capacity Capacity Capacity Annulus Annulus Annulus Annulus (in) Grade (ppf) (in) (in) (psi) (psi) (Kpsi) (bbl/ft) (ftIbbl) (gal/ft) (ftIgal) (bbl/ft) (ftIbbl) (gal/ft) (ftIgal) 8-5/8 K-55 24.0 8.097 7.9272 1370 2950 263 0.0636 15.70 2.6749 0.3738 0.0453 22.0860 1.9017 0.5259 Production Casing 8" Hole 8" Hole 8-5/8 Surf 8-5/8 Surf Size Pipe Weight ID Drift Collapse Burst Tinsile Capacity Capacity Capacity Capacity Annulus Annulus Annulus Annulus (in) Grade (ppf) (in) (in) (psi) (psi) (Kpsi) (bbl/ft) (ftIbbl) (gal/ft) (ftIgal) (bbl/ft) (ftIbbl) (bbl/ft) (bbl/ft) 5-112 J-55 15.5 4.950 4.825 4040 4810 202 0.0238 42.01 0.9997 1.0003 0.0328 30.5012 0.0343 27.94 51/2 J-55 17.0 4.892 4.767 4910 5320 229 0.0232 43.01 0.9764 1.0242 0.0328 30.5012 0.0343 27.94 I~ Cement Information Density Yield Yield Water 11" Hole 8" Hole Name (Ib/gal) (ft3/sk) (bbl/sk) (gal/sk) Additives Capacity Capacity Surface Set 15.6 1.21 0.2155 5.3 Versaset ~%, 5% Salt, % Ib/sk Flocele 0.1175 bbl/ft 0.622 bbllft Pioneer LS 12.2 1.94 0.3455 9.4 2% gel, 2% CaCI, 1 % Thixset A %% Thixset B, ~ #/sk Flocele 8.5076 ftIbbl 16.0846 ftIbbl APD Baronoff 4 Pilot 2 'r';\ . " I' PAY TO THE ORDER OF " "',,-" .:I'!t't~~i:I~~":I~~' 1-"'G¡'~.j~"~:¡'!~;;~l~~¡""!;ì~r«J'¡ffr~¡¡~]~!)."j~'Ji.q'~!;!;~"r":lr .. . .\"11 GontröllèdiDisbursèi'J1ênlÄc;cøutJt.. ,;'" ",' " , ,.' Hibernia National Bank' Evergreen Operating Gorp 1401 17th Street, Suite 1200 Denver CO 80202 Check No Check Date 0083004894 05/30/2002 "************$100.00 Check Amount One Hundred Dollars and Zero Cents Void After 90 Days Alaska Oil and Gas . Conservation Commission 333 West 7th Avenue #100 Anchorage AK 99501 tf{&?{?~ 11.008 :100 L.B g 1..11. I: ~ ~ ~ ~O L.8? lìl: 5 I.. 20 2.... 701..11. -- .,,--...-' -......... "".-.'''''--''''''. ... ..~ - .....~. - . -. ..~ ~ -~.- "'---"""- _.. ... --.. ~.... ......... ~.- -- -... -. . _.-..,......~........_-..,- --.- -,.~--,,,,,_.-,,-~,_...,,,, -,".r..."."" r- --,._~._,-,,_., ....--...,. -..-.,--..-. ........ -~. -."-.'--. -... .....- ..._~- _. .~,. -... .... .. d_.. - -.... ^PLEASE DETACH AT PERFORATION ABOVE^ . .~, --" - ..- .- Œ M .n.' -.-- ',,,..- .~. ^PLEASE DETACH AT PERFORATION ABOVE^ Evergreen Operatina Corp 1 ~01 17th Street, Suite 120"6 Denver CO 80202 I :V:I~GI~::N I EVERGREEN RESOURCES, INC. -~ t- , 042802 JT-02 04/28/2002 i 12 Month Drilling Permit Fee Check Number '__t~''1er'llll\_' i 100.00 0.00 . RECE\VED OCT 3 1 2002 -D1'6 Gas Qons. Gomm\sslan . Anooorage ) ') TRANSMIT AL LETTER CHECK LIST CIRCLE APPROPRIATE LETTERlPARAGRAPHS TO BE INCLUDED IN TRANSMITTAL LETTER WELL NAME tS{\.VtV/;'\..ot tt 4 'l£;Z-/'7.g PTD# CHECK WHAT APPLIES ADD-ONS (OPTIONS) MULTI LATERAL (If API number last two (2) digits are between 60-69) PILOT (PH) HOLE SPACING EXCEPTION DRY DITCH SAMPLE "CLUE" The permit is for a new wellbore segment of existing well Permit No, API No. Production should continue to be reported as a function' of the original API number stated above. In accordance with 20 AAC 25.005(1), all records, data and logs acquired for the pilot hole must be clearly differentiated in both name (name on permit plus PH) and API number (50 70/80) from records, data and logs acquired for well (name on permit). . The permit is approved subject to full compliance with 20 AAC 25.055. Approval to peñorate and produce is contingent upon issuance ofa conservation order approving a spacing . exception. (Companv Name) assumes the liability of any protest to the spacing exception that may occur. All dry ditch sample sets submitted to the Commission must be in no greater than 30' sample intervals from below the permafrost or from where samples are first caught and 10' sample intervals through target zones. Ç.~.'1 ~~ t>tff}V\ú!d t{M'#-.- ori'llÑvÍ f21 hM'f. Rev: 07110/02 C\j ody\templates FW: Well- Location- Evergreen.xIs ) ') Subject: FW: Well_Location_Evergreen.xls Date: Fri, 11 Oct 2002 11 :40:54 -0800 From: "John Tanigawa" <JohnT@EvergreenGas.com> To: <steve_davies@admin.state.ak.us> Steve, The original file had wellnames that were incorrect. Here is the correct file. Thank you. Have a great weekend. John Tanigawa 907-841-0000 -----Original Message----- From: Enric Fernandez [mailto:efernandez@lynxalaska.com] Sent: Thursday, October 10, 2002 3:31 PM To: John J. Tanigawa (E-mail) Subject: Well_Location_Evergreen.xls John, This is the updated file with the name swap! Enrique Fernandez Information Technology and GIS Director Lynx Enterprises, Inc. 1029 W. 3rd Ave, Ste. 400 Anchorage, AK 99501 907-277-4611 efernandez@lynxalaska.com The information contained in this communication is confidential and privileged proprietary information intended only for the individual or entity to whom it is addressed. Any unauthorized use, distribution, copying, or disclosure of this communication is prohibited. If you have received this communication in error, please contact the sender immediately «Well_Location_Evergreen.xls» L:~_-_,":-._-~~:::'~:,::"'~"';;;':;'w--:~,--~:":"""'__:---':'~:"',~~~w~-,_.~"w_:"~,----^-----"":':""';',_w_~::_------,^"_:-":,-,-,:""'_"","""-,~_W'~'-~ ,"""'X';":'X' .,,,......,'./;,....,,...,","'- ';,:,:',,'X"'~"X'''''X"'''''X''''''''''''X' .... .... w,,"""""x'"'x'x)':''''''¡,:'x'x''xxx'''x'(¡''-'x''(''''x'''X"X"X' ."'YJtrx"r,.:""";r)"""""</""Wi'('W'(""("'</,"""'" ,,<,,~w"VW"."'MA"~:'X''''N''''N''''M.>''''''''N^,'''WNÆ'''''''x'x:f""""'\'W1\'X";("'C"'X'Z(X:(""';("('X"" .. "X' "',(:1'(""""0!""X'X"""':(""''''/'W.t.x'y,¡.w.¡¡.,..,,\:x~ i ~ Name: Well_LocatIon_Evergreen.xls ~ t [t¡ Well Location Evergreen.xls. Type: Microsoft Excel Worksheet (application/vnd.ms-excel) i~ ; > Encoding: base64 . . "'x"w';.n.-...:"~""""'",""":(""X':('X"'\:""" '"''''''''''''-'''''''''"I''''''''XX'''''''''''''''''\:I'''''X''''('''''(fWW'''--N W'W'" 'w'w"""w'''''wu''w'~'''Yx:nv.''';:'''''''''''-X'yw,,,,,,,'.m.m..,..w,,,^'m",'"'':;:':;:'''''~'x....",m'X''X'x_''X''",''',,<:''''''''''''''''''"""""'''''''''''''''''''''''''«'''''I/'''''''''''''''''('''I\:''\:''''''''","",...y.".....,""''''''"I'/'\:'X'''I''''''''''''''''''''''''''''''''' .... .. Y'''''''''' AREA Pilot 1 Pilot 1 Pilot 1 Pilot 1 Pilot 2 Pilot 2 Pilot 2 Pilot 2 Pilot 3 Pilot 3 Pilot 3 Pilot 3 -I ( NAME D.L.SMITH #1 GARY & JOANN STROMBERG #2 CORNHUSKER #4 ROBERT SMITH #3 COOK #1 LOWELL #2 BERING #3 BARANOF #4 TYONEK #1 KENAI #2 ILlAMNA #3 NANWALEK #4 EL V FT LEGALDESC 274.4 Located 3293' north of the south line and 293' from the west line of section 1 T17N R3W Seward meridian. 296.0 Located 1386' north of the south line and 933' from the west line of section 1 T17N R3W Seward meridian. 249.8 Located 3272' north of the south line and 606' from the east line of section 2 T17N R3W Seward meridian. 265.3 Located 2426' north of the south line and 141' from the east line of section 2 T17N R3W Seward meridian. 408.8 Located 991' north of the south line and 888' from the east line of section 30 T18N R1W Seward meridian. 399.9 Located 967' north of the south line and 1329' from the east line of section 30 T18N R1 W Seward meridian. 449.0 Located 1523' north of the south line and 471' from the east line of section 30 T18N R1W Seward meridian. 403.6 Located 504' north of the south line and 423' from the east line of section 30 T18N R1 W Seward meridian. 417.4 Located 301' north of the south line and 1841' from the west line of section 20 T18N R1 W Seward meridian. 418.9 Located 815' north of the south line and 1832' from the west line of section 20 T18N R1W Seward meridian. 429.3 Located 236' north of the north line and 2403' from the west line of section 29 T18N R1 W Seward meridian. 414.7 Located 353' north of the north line and 1528' from the west line of section 29 T18N R1W Seward meridian. ASP27Z4N ASP27Z4E DD27N DD27E 2774923.09356000000 543786.35874200000 61.59466451260 -149.74861231100 2775528.70150000000 544423.26626200000 61.59631427130 -149.74494210500 2774899.30194000000 542887.46491700000 61.59460882660 -149.75377352900 2774054.90335000000 543355.95720500000 61.59229425450 -149.75110236500 2783408.27296000000 584593.04550000000 61.61724205120 -149.51397565500 2783381.99302000000 584152.01484300000 61.61717914890 -149.51651058400 2783942.33402000000 585004.69554800000 61.61869441150 -149.51158763300 2782923.44787000000 585062.93452400000 61.61590632030 -149.51129695300 2788017.16180000000 587274.33011000000 61.62979282080 -149.49836720300 2788531.16269000000 587261.14713400000 61.63119900780 -149.49842021600 2787480.78035000000 587841 .89235100000 61.62831369770 -149.49512903800 2787361.90624000000 586968.42649400000 61.62800698160 -149.50015429700 Evergreen Well Locations NAD 27, AK Zone 4 ) ) Subject: Evergreen Well Locations NAD 27, AK Zone 4 Date: Thu, 10 Oct 2002 11:14:27 -0800 From: "John Tanigawa" <JohnT@EvergreenGas.com> To: <steve - davies@admin.state.ak.us> Steve, I apologize that these have taken so long. Here are the coordinates. >From now on, we will submit all coordinates in NAD 27. Please contact me if you have futher questions. Thank you. John Tanigawa 907-841-0000 ,'" . ." ~... ....- .."..-. - ..... .... -...--..-- .....n..,-,..-,.. ........... .. .. ...... ~~ -'~ . ....- ..~ ...... . ." .~........ ...: .-- ""u ...---.. -".n". ................. m......-,... ..... m_.. --.. .... ... .. .... ........ ...,.-.......... .. .... ... ... ..n.. .. ~._. .. -~ -... 'C''''''. ,~- .~ .... ....... ~. ...-.....-..-......, -.. .... ,.,. ~.. ~ ..... ~ ~,~.._... - -.. -.,. .......... ..." ..... ...._-... .. "....m_-"".,", . ..... \: ' , Name: Well_Location_Evergreen.xls ,f IWell Location Evergreen. xIs , Type: Microsoft Excel Worksheet (application/vnd.ms-exceI)~ E n cO~!~"~E"~,~,~~~"~""^"._""",,,,,,,,",,,,,,",,,,,,,",,,,,~",'W",""",___.",mw,__,,,',',,ww"',',"""",""","'"""""""""""""""",^~,",,=,w,,~,.,f ~~~~~ ) =} !Æl!ÆCJ)JA~ j AI¡ASKA OIL AND GAS CONSERVATION COMMISSION TONY KNOWLES, GOVERNOR 333 W. ]TH AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 John Tanigawa Alaska Projects Manager Evergreen Resources (Alaska) Corporation PO Box 871845 Wasilla AK 99687 Re: Pioneer Unit Baronof#4 Evergreen Resources (Alaska) Corporation Permit No: 202-178 Surface Location: 504' FSL & 423 FEL, Sec. 30, T18N, R1W, SM Bottomhole Location: 504' FSL & 423 FEI, Sec. 30, T18N, R1W, SM Dear Mr. Tanigawa: Enclosed is the approved application for permit to drill the above referenced exploration well. The permit to drill does not exempt you from obtaining additional permits or approvals required by law from other governmental agencies, and does not authorize conducting drilling operations until all other required permits and approvals have been issued. In addition, the Commission reserves the right to withdraw the permit in the event it was erroneously issued. A weekly status report is required from the time the well is spudded until it is suspended or plugged and abandoned. The report should be a generalized synopsis of the week's activities and is exclusively for the Commission's internal use. All dry ditch sample sets submitted to the Commission must be in no greater than 30' sample intervals from below the permafrost or from where samples are first caught and 10' sample intervals through target zones. The permit is approved subject to full compliance with 20AAC 25.055. Approval to perforate and produce is contingent upon issuance of a conservation order approving a spacing exception. Evergreen Resources (Alaska) Corporation assumes the liability of any protest to the spacing exception that may occur. Operations must be conducted in accordance with AS 31.05 and Title 20, Chapter 25 of the Alaska Administrative Code unless the Commission specifically authorizes a variance. Failure to comply with an applicable provision of AS 31.05, Title 20, Chapter 25 of the Alaska Administrative Code, or a Commission order, or the terms and conditions of this permit may result in the revocation or suspension of the permit. Please provide at least twenty- four (24) hours notice for a representative of the Commission to witness any required test. Contact the Commission's North Slope petroleum field inspector at 659-3607 (pager). BY ORDER OF THE COMMISSION DATED this~ day of September, 2002 cc: Department ofFish & Game, Habitat Section w/o encI. Department of Environmental Conservation w/o encl. ") STATE OF ALASKA ALASKA CO";' AND GAS CONSERVATION COM. PERMIT TO DRILL 20 MC 25.005 [ ] Service [ ] Development Gas [ ] Single Zone [ ] Multiple Zone [X] Exploratory [] S. tratigraphic Test [ ] Development Oil , 5. Datum Elevation (DF or KB) 10. Field and Pool DF 3' AGL 6. Property Designation ¡'tD f- Pioneer ~ '=3gý"g~.ß) 7. Unit or Property Name 11. Type Bond (See 20 MC 25.025) Pioneer Unit 8. Well Number Baronof #4 9. Approximate spud date' 9/18/2002 14. Number of àcres in property 15. Proposed depth (MD and TVD) 16,780 2,999' MD, TVD 17. Anticipated pressure {see 20 MC 25.035 {e)(2)} Maximum surface 1559 psig. At total depth (TVD) Setting Depth ' Top Bottom Quantity of Cement MD TVD MD TVD (include staQe data) 3 3 125 125 26 sx. It necessary, pour add'l cement at surface 3 3 300 300 111 sx. Circulate to Surface , 3 3 2999 2999 535 sx. Circulated to surface 1 a. Type of work [X] Drill [1 Redrill1 b. Type of well [ ] Re-Entry [ ] Deepen 2. Name of Operator Ever~reen Resources (Alaska) Corporation 3. Address ' P.O. Box 871845, Wasilla, AK 99687 4. Location of well at surface' , 504' FSL & 423' FEL, Sec. 30, T18N, R1W, SM At top of productive interval Same At total depth Same 12. Distance to nearest property line 423 ft (BLM Minerals) 16. To be completed for deviated wells Kick Off Depth N/A 18. Casing Program Size Hole Casing 13 12.25 11 8.625 7.875' 5.5 V1l:k Cf 1'5/0'- }SION ~9Ltj/~ Number RLBOO04711 Amount $200M 113. Distance to nearest well ' 5810 ft (AK94 CBM) Maximum Hole Angle vertical [X] FilÎng Fee [X] Property Plat [X] BOP Sketch [X] Diverter Sketch [X] Drilling Program [X) Drilling Fluid Program ( ] Time vs Depth Plot [] Refraction Analysis [ ] Seabed Report [ ] 20AAC25.050 Req. Contact Engineer ameli 'ber: John Tanigawa (907) 841-0000 Prepared By Name/Number: John Tanigawa (907) 841-0000 21. I hereby certi th oing is true and correct to the best of my knowledge " Signed ~ Alaska Projects Manager Commission Use Only API Number 51J -~C'()q - 2.DC:J 2-0 .-éX::) Samples Required: [ ] Yes !>t No Hydrogen Sulfide Measures: [ ] Yes bcfNo Required Working Pressure for BOPE: [] 2M, [] 3M, OR~AL SiGNED BY D Taylor Seamount Weight 48 ' 24 17 Specifications Grade Coupling K-55 Welded K-55 STC , K-55 STC 19. To be completed 'for Redrill, Re-entry, and Deepen Operations. Present well condition summary Total depth: feet feet feet feet measured true vertical Effective depth: measured true vertical Casing Length Structural Conductor Surface Intermediate Production Liner Perforation depth: measured true vertical 20. Attachments Approved By Form 1Q..401 Rev. 12-01-85 1230 psig Length 125 30Ò 2999 Plugs (measured) Junk (measured) Size Cemented TVD MD Title Date /fø4æ<- A~rO,VêJ Date I See cover letter LIl,)O ()';A for other requirements Mud Log Required [ ] Yes )(rNo Directional Survey Req'd þ(Yes No [ ] 5M, [] 10M, [] 15M Commissioner by order of the commission Date a~Qø~ sUbnfï( Il Triplicate ) Waivers for the following regulations are hereby granted for Baronof#4 (Permit No. 202-178): 1. 20 AAC 25.030 (d) (2), requiring conductor casing to be cemented to surface; 2. 20 AAC 25.033 (b), requiring drilling fluid of sufficient density for overbalance; 3. 20 AAC 25.035, blowout prevention equipment requirements; 4. 20 AAC 25.050 (a) (2), requiring well bore surveys for each 500 feet of well depth; 5. 20 AAC 25.061 (a), requiring seismic surveys of near surface strata; and 6. 20 AAC 25.066, requiring gas detection on drillingrigs. ) ) =V=I~GI~==I'I RESOURCES (ALASKA) CORP. A $ut¡sidiary of Evergreen Re$(l/)fCfffl, !nc Permit To Drill Additional Information 20 AAC 25.005 (C 1) $100 FEE Check attached to application 20 AAC 25.005(C 2) PLAT IDENTIFYING PROPERTY AND OWNERS The mineral interest ownership map and the survey plat are shown in Figures 1 and 2 respectively. Figure 1 shows the subject well within Pilot Number 2. It also shows the mineral interest owners including a 1,500 foot radius around each well. 1,500 ft radius 1,500 ft radius 29 State of Alaska (Evergreen) F. (Unit 1,500 ft radius Figure 1 Minefal Ownership Map and 1,500 foot radius around each well in Pilot 1 Coordinates of the location at surface, top of each formation! at total depth Hole Locations Surface 504' FSL & 423' FEL OF SEC 30 Twp 18 North Rng 1 West Top Tyonek 5041 FSL & 4231 FEL OF SEC 30 Twp 18 North Rng 1 West Total Depth 504' FSL & 423' FEL OF SEC 30 Twp 18 North Rng 1 West (a) Coordinates in state plane coordinates Hole Locations Surface North 2782617 ft & East 1725008 ft ASP Zone 4 Nad 83 Top Tyonek North 2782617 ft & East 1725008 ft ASP Zone 4 Nad 83 Total Depth North 2782617 ft & East 1725008 ft ASP Zone 4 Nad 83 APPLICATION FOR PERMIT TO DRILL Baronoff 4 Pilot 2 =\I=I~GI~==I'I RESOURCES (ALASKA) CORP. A $ubfiìrJìnry of Ë\I~'gr8f.m RCWUfÇ6'S, Inc ) APD Baronoff 4 Pilot 2 BARANOF #4 422.55' ~I , N~ N .q: 0 LO.. NOTES: 1. COORDINATES SHOWN ARE NAD83 ALASKA STATE PLANE ZONE 4. 2. GEOGRAPHIC COORDINATES ARE NAD 83. 3. ALL DISTANCES ARE GROUND IN U.S. SURVEY FEET. 4. VERTICAL DATUM IS M.S.L. NGVD 1929. BASED ON BENCHMARK "V102" BARANOF #4 LOCATED 504' FROM THE SOUTH LINE AND 423' FROM THE EAST LINE OF SECTION 30, T 18 N, R 1 W, SEWARD MERIDIAN LAT. 61.36'54.721"N LONG. 149.30'50.392"W ASP ZONE 4 N=2782616. 742 E=1725008.077 (NAD 83) GROUND ELEVATION = 403.6' C 1/4 c: N 89.51'15" W 2639.44' (0 N 0) t"") (0 N SE 1/4 SECTION 30 T18N, R1 WI S.M., ALASKA ~ - ~ 'Co 0 b 0 z 30 @ 31 N 89.51'23" W 2639.43' PILOT 2 WELL BARAN OF #4 PERMIT DRAWING DRAWN FWW I CHECKED KWA I SCALE l' = 600' ') ~.TtlTiffl 18 20" ,,' N PITTMAN I ROAD 30 28 ~ ..III~ .. THIS SURVEY (,.-' .....} ,~~ ~ft29 T f-- 31. 32 ., ' , ~I ~. III ;¡; ,~ ~11 - ~~) EI ~ .- , . , "'~, W .~RUCE. AVE VICINTY MAP SCALE 1" = 1 MILE &II 29 300 N (0 0) t"") (0 N ~ ~ è§ Q:: w ~ =0 ~ ~ ~ g 0 (j) SCALE 1" = 600' 3D 29 31032 @LOUNSBURY & ASSOCIATES, INC. ENGINEERS-PLANNERS- SURVEYORS 723 W. 6th AVE. ANCHORAGE, ALASKA 99501 (907) 272-5451 AUGUST 12. 2002 I DWG NAME 028-3W2.0WG =\f=I~GI~==I~1 RESOURCES (ALASKA) CORP. A $ubsiffìaty of Evergr88/1 A'esoufC€s, Int. ) ) (b) Proposed Depth, Depth of each objective formation Estimated Formation Tops Quarternary Gravel Surface Tertiary Tyonek 100 (c) Other Information as required by 20 AAC 050(b) For all hole segments, an air hammer will be used to drill the hole. Unlike PDC or conventional bits! air hammers, inherently drill straight holes. This is because the weight on bit is a fraction of the weight required by conventional drilling techniques. Increased weight on bit causes holes to become deviated. For additional information! please refer to Evergreen's response to the waiver request in Appendix A of this application. Since air hammers have not been widely used in Alaska's oil and gas industry, Evergreen will perform a T otco deviation survey for this well. This information will confirm to the commission that air hammers, by their design, must drill straight holes. It is our aim that after showing the commission that air hammers drill straight holes! that surveys will not be required. 25 AAC 25.005 (c 3) DIAGRAM OF BOPE Evergreen will use air to drill conductor! surface and production holes. Using this system! we plan on using a diverter in lieu of a BOP since our proposed diverter system is an equally effective means of well control in shallow gas wells. This discussion is included as Appendix A submitted August 8! 2002. A diagram of Evergreen's well control arrangement is shown in Figure 3. Two diverters will Evergreen Resources Alaska be used while Surface Well Control Setup drilling the subject well. One for the 11 inch surface casing hole and the other for the 7-7/8 inch production casing hole. For the 11" surface hole! the diverter will connect to the cemented in conductor via a 13- 3/8" ST&C collar. The Production hole's diverter will connect to the cemented in 8-5/8" surface casing via the 8-5/8" ST&C collar. These diverters are shown in the Figures 4 and 5. APD Baronoff 4 Pilot 2 Washingto 500 psi Diverter Head 8-5ìif~'."'" Surface Cas \ ,.,,}~~2~~,~~,~~~~,-~~~.~-~~.!~.~~r!:~!, >-. 20 MMSCFD KICK ~......... ~~~...~~...,~....l"'~~~'h~;}~ ,. .......:::::...::::::..... " "',"':-0". '.",,-"'::... ...." ,', ',"':-0'::... ,', 0::..... ,"~" Ground level FORMATION GAS This schematic shows Evergreen's Air Drilling well control setup. When venting a 20 million standard cubic foot kick of methane. the diverter must 'contain 40 psi of pressure. . The Diverter is rated to 500 psi while drilling and 1.000 psi while static. This is a 12 fold safety factor while drilling and a 24 fold safety factor when pipe is not rotating. Figure 3 - Surface Well Control ) ') =\f=I~GI~==N RESOURCES (ALASKA) CORP. A Subsidiary of Evergrøen Re$DUfCeS, ¡flC EVERGREEN RESOURCES ALASKA SURFACE CASING DIVERTER I 15 in I - r-1 r- r-1 r-1 r-1 WASHINGTON DIVERTER I rW U ~ i ~ UJ---- ~~~~~ ~~El~~~., . I., I --; [See Rlght '-''- ! // ...... I / "'-.. J I // --.,.. 16 In " .....................V/ - . EVERGREEN RESOURCES ALASKA PRODUCTION CASING DIVERTER I 151n I - r-1 r- r-1 r-1 r-1 WASHINGTON DIYERTER I ~I U' U I I ~I RUBBER ELEMENT ,I I, MODEL 401 O.CG J 't:t' ¡See Below I '~ /) '......! // 16 in """'......L._._.....-../// - To 30 FT BLOOEY LINE B.5/B', 23 PPF, J.55 CASING 8,097" ID wnh Hammer Union connector To 30 FT BLOOEY LINE 8.5/8.,23 PPF, J.55 CASING 8,097" ID v.ith Hammer Union connector = = CONNECTOR ¡sa 13.3/8" PIN ST&C, 8 RD, J.55 CONNECTOR B-5/8" PIN ST&C, 8 RD, J.55 Figure 4 Surface Casing Diverter Figure 5 Production Casing Diverter 25 AAC 25.005 (c 4 A) MAXIMUM BOTTOMHOlE PRESSURE The maximum anticipated surface pressure (MASP) for this air-drilled well will equal the formation pore pressure less a full gas column to the surface. Based on offset well data! the highest formation pressure expected in this well is 1,559 psi (10.0 ppg EMW) at the well's TO of 2,999' TVD (or 0.520 psi/ft). Complete evacuation of the well bore, except for a 0.11 psi/ft gas gradient! is assumed. MASP (pore pressure) = (2,999 ft){O.520 - 0.11) = 1.230 psi 25 AAC 25.005 (c 4 B) DATA ON POTENTIAL GAS ZONES One gas bearing zone will be encountered during the drilling of this well, namely the Tertiary Tyonek formation. Here, coals will be drilled through along with sandstones and siltstones. There are six wells that have penetrated this zone within the Pioneer Unit. The Quarternary Gravel will also be penetrated. This zone has no gas since there are no barriers for accumulation. This is the area's fresh water aquifer. 25 AAC 25.005 (c 4 C) POTENTIAL DRilliNG PROBLEMS Since air drilling will be the drilling fluid for this well! problems associated with differential sticking and loss circulation zones, as identified in the regulations, are not relevant. However! issues associated with hole sloughing are a concern. For this reason, 12-3/4 inch conductor casing will be casing air drilled through the Quarternary APD Baronoff 4 Pilot 2 ) ) =\I=I~GI~==N RESOURCES (ALASKA) CORP. A $I!b.'!idì!lry of Evergr881! RCSDl.lfCt15, Ifle Gravel section. This interval will then be cemented in with 26 sacks of cement to prevent water and gravel from sloughing through the conductor annulus. Significant gas volumes produced from formations are easily handled during drilling and this is discussed in Appendix A. To ensure that casing and logs can be run safely, if sufficient gas is being vented, then the well will be killed. On site will be a cement pump, mix tanks and sufficient chemicals to create a 10.5 pound killing fluid. The risk of encountering H2S is negligible. No wells drilled in or near the Pioneer Unit had any indications of hydrogen sulfide. Further, coal bed methane does not contain H2S. Details for H2S are discussed in Appendix A submitted to the commission on August 8! 2002. 25 AAC 25.005 (c 5) FORMATION INTEGRITY TEST Formation integrity tests are not applicable for this application since air drilling with a diverter is being employed. Formation integrity tests require a pressure containment scheme using BOPs to be relevant. Please refer to Appendix A of this application for further discussion. 25 AAC 25.005 (c 6) CASING AND CEMENT PROGRAM The casing and cementing program for the subject well is shown below. For the first well drilled in Pilot Number 2, a single induction log will be run to confirm that the surface casing is set through the fresh water zone. We will drill and set surface casing below the fresh water zone. All remaining surface casing depths will be modified based on this information. Current setting depths are well below all fresh water wells in the area. Casing Information Depth OD ID Pipe Weight Connection New/Used (ft KB) (in) (in) Grade (Ib/ft) Type ConductQr 125 12-3/4 12.00 Line Pipe 48.0 ST&C Limited Svs Surface 300 8-5/8 8.097 K-55 23.0 ST&C New Production 2990 5-1/2 4.892 K-55 17.0 ST&C New For the surface and the production casings, the cement will be circulated to surface. In the case of the conductor pipe! we will attempt to circulate cement with 26 sacks of cement. If cement does not circulate, which is likely since this is a gravel interval drilled with air! then we will fill the annular volume with cement. Cement Information Volume Yield (sacks) (ft3/sk) Type Comments 26 1.18 Class G Circulate, if no circulation, then pour from top 111 1.2 Class G Circulate to Surface 535 1.35 Class G Circulate to Surface Conductor Surface Production Depth (ft KB) 125 300 2990 20 AAC 25.005 (c 4) DIVERTER SYSTEM The diverter system is described in 25 MC 25.005 (c 3) BOP SETUP. 20 AAC 25.005 (c 8) DRilliNG FLUID SYSTEM APD Baronoff 4 Pilot 2 ) ') =\I=I~GI~==N RESOURCES (ALASKA) CORP. A ,s!¡Mdlnrf ðf Evprgrn/N RQm!f!~!s, 1,,(: The subject well will be air drilled and therefore utilize no fluid system. The proposed process of air drilling and of killing the well when and if necessary are described in detail in Appendix A dated August 8, 2002. 20 AAC 25.005 (c 9) ABNORMAllY GEOPRESSURED ZONES There are no abnormally geo pressured wells in the Pioneer Unit as discussed in Appendix A, submitted on August 8,2002. 20 AAC 25.005 (c 10) SEISMIC REF ACTION IRE FLECTION ANALYSIS Evergreen requested a waiver for running seismic as detailed in Appendix A! submitted on August 8, 2002. 20 AAC 25.005 (c 11) OFFSHORE, SEABED CONDITIONS Not applicable. This is an onshore well. 20 AAC 25.005 (c 12) EVIDENCE OF BONDING Evergreen Resources Alaska's state wide bond is on file or will be very shortly with the commission. 20 AAC 25.005 (c 13) COpy OF DRilliNG PROGRAM A copy of the drilling program is shown as Appendix B. 20 AAC 25.005 (c 14) DRilliNG MUD & CUTTINGS DISPOSAL Evergreen has received permission from the Matanuska-Susitna Borough to dispose of drill cuttings at the borough landfill. Because well depths are less than 3,000 feet, we also have permission to dispose of the cuttings at the drill site. 20 AAC 25.005 (d) INTENTIONAllY DEVIATED WEllS This well is not being intentionally deviated 20 AAC 25.005 (e) MULTIPLE BRANCH WELLS This well will not have multiple branches 20 AAC 25.005 (f-h) n/a APD Baronoff 4 Pilot 2 ) ) =\I=I~GI~==I\I RESOURCES (ALASKA) CORP. A $1)b~ìdl'.1ry Of F.vRf1rl~tN~ Re$ðl!r~~8S, '/'Ie Appendix A Answer to AOGCC Questions APD Baronoff 4 Pilot 2 ) -') =\I=I~GI~==N RESOURCES (ALASKA) CORP, A $tJMidf;¡ry of E\ll'rgrmm ReSQlIrr::vfi, Ine =\I=I~GI~==I'I Evergreen Resources Alaska Corporation Response to AOGCC Questions August8,2002 John Tanigawa Alaska Projects Manager Wasilla, Alaska 907 -841-0000 APD Baronoff 4 Pilot 2 ') ") =\I=I~GI~==I\I RESOURCES (ALASKA) CORP. A $Ub~idIElry of Evergreen ReroUfceS, Inc Waiver #1 - 20 AAC 25.030(d)(2)- Don't want to cement 100' to 200' conductor to surface. Will use 10 sacks. Surface csg must be set below the glacial gravel section. The gravel section is 500' to 800' thick, not 100' to 200'. The map (Figure 4) is a structure map using sea level datum. You have to add the topographic elevation to get the true thickness. Coals and permeable sands which may be gas bearing are present immediately underlying the glacial gravel section. (1)What would you do to mitigate risks if you drilled a free gas zone prior to setting surface csg? (2) How will free gas affect your cementing plans? (3) Does the fact that you will be setting the conductor in a permeable gravel zone change your ideas about your cementing plan? First, we must make a correction to figure 4 in the C Plan exemption document. Figure 4 does not represent the top of the Tyonek. The figure is improperly labeled. Instead! this is an isopach map showing the thickness of the gravels based on water well data. You are right, if this were a Tops map for the Tyonek, then the 500 to 800 feet would be correct. (1) To mitigate the risks of encountering a gas zone while drilling the surface casing, Evergreen will a) set and partially cement a 12-3/4" conductor casing (to protect fresh water & prevent water from entering well bore during surface hole drilling), b) Use a diverter (to redirect gas from annulus), c) Utilize a series of check valves in the drill string (to eliminate gas up drill pipe) and d) Drill with air. Described below is a description of this process and how it will mitigate dangers during this portion of the well plan. a) Evergreen will hire a water well contractor to casing drill (e.g., casing is drill pipe) the conductor through the Tertiary gravel and into the top +/-25 feet of the Tyonek formation. Depths are estimated to be 100 feet in Pilots 2 and 3 and 200 feet in Pilot 1. This section of the hole will be reverse circulated using air. After the casing is set, a 13-3/8" ,ST&C! 8 rd, J-55 collar will be installed at surface via a bell nipple. We will attempt to circulate cement to surface using 20-30 sx of 15.6 ppg cement or 1500/0 of the annular volume. If cement does not circulate, which is likely in an air drilled hole through gravel, then we will pour additional cement sacks from surface until full. Before drilling out! the conductor will be pressure tested to 100 psi or Y2 psi/ft of the conductor setting depth. The conductor! therefore will be sealed. It is noted here that the primary reason for cementing the conductor is to prevent water from entering into the well bore while drilling the surface hole and not for kick protection. This is because, kick protection in the traditional sense! is not needed in an air drilled hole. b) Next! a 13-3/811 x 4-1/2" drill pipe diverter will then be installed. The diverter will screw into the conductor casing. The 11 II surface hole will be drilled using an air hammer bit at 3,000 scfm of air. The diverter will redirect air, methane! cuttings, APD Baronoff 4 Pilot 2 ) ") =\f=I~GI~==N RESOURCES (ALASKA) CORP. A $ubSldi;¡ry Of £v~rgrlJel1 ReSlJUfces, Inc and water from the annulus to the cuttings pit via an 8" diameter by 30 foot blooey line - well away from the drilling table. This diverter head is fabricated by Evergreen, has been used for 7 years, has drilled over 575 wells in a variety of working conditions. Pressure rating is estimated to be 250 psi working and 500 psi static! which is half of a similar Washington or Williams diverter. This pressure rating should be adequate. For example, if 100 MCFD of methane gas were being vented! the diverter would see approximately 20 psi of pressure. c) We must also prevent natural gas from flowing up through the drill pipe during connections. This is handled through a series of check valves inside the 4-1/2" drill pipe. d) Finally, as will be shown later in this report, handling shallow gas kicks is arguably safer using air than in mud drilling. This is because well control is not based on containment of the formation pressures! where high pressure BOP's! and very large (in excess of 16 inches) are required. Instead, the formation is allowed to vent and high pressures are not allowed to build-up. (2) A free gas zone does not affect our cementing plans. Surface cement will have a density of 15 ppg. (3) We plan to sent the conductor casing below the gravel zone and into the top of the Tyonek formation. We plan to drill roughly 25 feet into the Tyonek. We were not planning on setting above the Tyonek. Waiver #2- 20 AAC 25.033 (b) Drill under balanced with air. (1) There are some permeable sands in the section. Some coals may also be permeable and may contain only gas and no water. Your plan is to have fluid and cement on location. Do you understand that the BLT #1 tested individually up to 40BBLS/hour of gassy water from several sands and one coal suggesting artesian or other type of over-pressured systems? We think that the Pittman well also encountered gas sands. You should verify that. (2) Have you evaluated the mud weights in wells drilled in the area? (3) What volume of air will you be using? Would it be sufficient to dilute a zone capable of 2000mcfd to below lower explosive limit (LEL) at hydrostatic pressure? (4) What is the maximum expected equivalent mud weight attainable from the drilling air? (5) What equipment is available to pump kill weight fluid and how will it be pre-staged? What would be the response time if a kick occurred? (1 ) You are correct for the BL T #1 there was a 40 bbl/hr flow of gas cut water. We were unable to find information at the commission library regarding the Pitman #1 well. However, If we encounter 40 bbls/hr of gas-cut water! this will not be a problem. We have effectively air drilled with water rates in excess of 250 bbls/hr of gas-cut water, further, we will have the pump equipment, and additives to kill the well on site. (2) We have evaluated the mud weights in the area. This data is shown in the table below. Generally, wells were drilled with muds in the 9.5 to 10.0 ppg range for the depths we are drilling. (3) The volume of air we will be 2,000 scfm for the 7-7/8 inch hole and 3,000 scfm for the 11 inch hole. The lower explosive limit (LEL) in ideal conditions is 50/0 and the APD Baronoff 4 Pilot 2 ') =V=I~GI~==I'I RESOURCES (ALASKA) CORP. A SUbSIdI~'r¡ Of EvørgrJNN1 RQWllf1;t1S, 'fle ) Upper explosive limit (UEL) is 120/0 by volume of methane in air [U S Bureau of Mines, R.I. no. 4751, 1950]. At concentrations above the LEL threshold, the air- methane mixture capable of ignition. Formations can therefore flow up to 144 Mcfd of methane in the 7-7/811 production hole and 218 Mcfd in the larger surface hole before fire is possible. Even when one drills wells in this condition, down hole are almost unheard of in CBM reservoirs. This is because even when one is in the explosive window! it is virtually impossible ignite the gas. Ignition sources in these shallow wells are principally thought to be from the bit cutting the rock and drill pipe rotating against a formation or surface/conductor casing. While operating an air hammer however, water is injected into the compressed air at 20 gpm to cool the bit and the hammer mechanism. This water mixture creates a fine mist that prevents sparks from occurring. Further! formation waters are produced during the drilling that further wets the system. Proof however is evident in the fact that thousands of wells have been drilled into CBM reservoirs using air without any down hole fires. (4) The maximum bottom hole pressure just above the bit in the annulus is 30 to 70 psi while air drilling the production hole at 3,000 feet. Mud weights are very low. (5) Equipment that will be on hand to kill the well will be Evergreen!s cement unit, batch mixer consisting of two 75 bbl mix tanks water and weighting agents to build two batches of 10.5 ppg mud (or a single 13.5 '<I 1 ppg mud). Evergreen's portable cementer is shown in the figure below. This pump has 4.511 plungers and is capable of pumping at 6,228 psi at 13.3 bpm., The two 75 bbl batch mix tanks ar,e designed to be used as a cement mixer or as a mud tank and are equipped with paddles to mix the weighting agents into the water. Calcium chloride will be our weighting mechanism, xanthan guar will be used to build viscosity and lost circulation material (bark, celoflake, et cetera) will be used to assist in lowering the fluid loss. Concentrations of each are the following: 123 Ibs/bbl CaCI! 1.5 Ibs/bbl Xanthan guar and 10 Ibs/bbl lost circulation material. A 28 foot trailer will house the chemicals and will be on location at all times. Evergreen Cement Portable Pump Evergreen Portable Batch Mixer Waiver #3- 20 AAC 25.035- No BOPE. (1) Have you examined the Houston #1 and #2 well histories and operations? These wells were drilled with air up to 500' into the coal sections without even a diverter. Ignore Houston #4 since it spuded in metamorphic basement. (2) Can you demonstrate that you have a means of well control that is equally effective to a BOPE? I will do this. APD Baronoff 4 Pilot 2 ') ) =\f=I~GI~==i'I RESOURCES (ALASKA) CORP. A Subsidiary of eVltrgr$el1 RCSlJurces, ll'!c (3) Your report states that you will have a 1000psi diverter. Is that the pressure rating of the pipe or actual drilling air pressure? Does that imply that you will be using different equipment than what the Commission observed in the Raton Basin? We need a more clear description of your well control equipment. I will do this. I will need some help with CAD work though. (1) The GRI, Inc!s Houston 1,2 3 & 4 well records are unavailable to Evergreen. We have talked to people and have read reports on this project. These wells are relevant due to their close proximity to the Pioneer Unit. Four CBM wells were drilled representing the first time that air drilling technology was employed in Alaska. BOP's were installed after the surface casing, drilled 700 feet into the Tyonek formation, was set (Evergreen as a comparison will drill +/- 25 feet into the Tyonek. Wells were then drilled to roughly 2,100 feet and 4-1/2" casing was run. Coal! sandstones and siltstones were encountered from surface to TD. Although shallow gas was venting during the entire drilling process (even w/o a diverter during surface hole drilling), because the well was allowed to vent and not build up pressure, no well control issues arose and the BOP was never engaged for well control purposes. The successful drilling of these four wells proves that air drilling is an effective way to drill the shallow Tyonek formation in this area. (2) Not only will Evergreen demonstrate that we have an equally effective means of well control but, in fact, air drilling at these shallow depths is safer than mud drilling for shallow gas kicks. Mud drilling relies on always being in an overbalanced drilling condition. As history shows! this does not always happen. When kicks occur! the key to safety is detecting before the well becomes uncontrolled. Detecting shallow gas kicks are difficult since they are relatively hard to detect and because they occur very quickly. The well control strategy in mud drilling is pressure containment. For this reason, elaborate BOP's, choke manifolds, gas busters and very large blooey lines! like those stipulated in the AOGCC regulations are required. Air drilling on the other hand, has a completely different approach to well control. In air drilling our strategy is to allow the well to continually kick. The beauty in this strategy is that pressures are not allowed to build-up thereby eliminating the need for a BOP. Gas is redirected away from the drilling table to the cuttings pit via a blooey line and a diverter head. A Diverter head has a rubber element that seals the annular area between the casing and the drill pipe. To prevent gas from migrating up the drill string, a series of check valves (floats) will be incorporated. If a shallow gas zone is encountered, then the formation is allowed to vent while drilling ahead until bad hole conditions or excessive amounts of water are produced. APD Baronoff 4 Pilot 2 =\I=I~GI~==I'I 4-1/2"drill ¡..~) L.;;yçls IÇÇIII,\ÇOVUlvÇOr\IClOl\CI SurfacëWéU Control Setup The amount Washington gas that can 500 psi safely vented Diverter Head drilling is considerable.8~5/8" Surface Casing illustrate, using Evergreen!s proposed set consisting of Washington stripping head sealing 4-1/2" drill pipe on 8-5/8" casing, 30 foot by 8" 10 blooey line, venting 20 million cubic feet of gas per day will generate 40 psia (25 psi gauge) of pressure below the diverter. [Reference: Equation 8-3, Air and Gas Orilling Manual, Lyons et ai, McGraw Hill Press! 2001]. This is a lot of gas - roughly 7 times that of our air injection rate. Since the Washington Head is rated to 500 psi dynamic (e.g.! while the pipe is rotating) and 1,000 psi static, a 12 fold safety factor still exists when venting while drilling and a 24 fold safety factor while pipe is not rotating. RESOURCES (ALASKA) CORP. A Sllb¡-;idi¡¡ry of Evergrl.'u'm Resources, fr'!c 125 psi gate valve 30' x 8" ID Blooey Line VENTING 20 MMSCFD.KICK of be in air Ground Level To ~¡~~'011á~~i~~j~im~ "~., ,,~~.,~~~~~~~~~~~~,~ .ne i$a1? fold safetY actor while drilling and a~4 fòrd safetýfactorwhen up a Finally, if too much gas is being vented, especially during the running of casing and open hole logs, then Evergreen will kill the well by pumping gelled water down the hole. If necessary, a weighted mud system, as described in the previous mitigation measure, will be implemented. Here a cement pump, batch mixer and materials to make a 10.5+ ppg mud will be on location at all times. So far this year! Evergreen has drilled over 42 miles of hole using an under balanced fluid, diverter head and blooey line like the ones proposed here. There have been no well control incidents this year or in any year previous. Simply put, if the well vents too much gas, we get a water truck and pump water to kill the well. In this case! no cement pump is on stand-by on location. (3) Evergreen will utilize two different diverter heads - one for the 11 inch surface hole and one for the 7-7/8 inch production hole. The surface hole diverter is of Evergreen manufacture. The body consists of a 16 inch 75 ppf piece of casing 20 inches high. The bottom has a 13-3/8" pin connector that screws directly into the conductor. There is a 8-5/8!' 00 opening (8.097'! 10) that mates directly with the 8-5/8" blooey line. On the top is a 9 hole threaded flange where the Washington head is APD Baronoff 4 Pilot 2 Su rface Hole Diverter Rubber Element _m. 15"",--- 9: S TJCK SiZES 4C1C+'; 2"-.2ì."S 4C1CLB 3 ~,2' ':¡C10<: 4 :..2 ) =\I=I~GI~==N RESOURCES (ALASKA! CORP. A Sub,Minry of Evprgr(Jl.,,1 ReSOUft':$5, Inr: ') screwed in. This is the diverter seen in by the AOGCC in Colorado. Photos of the head and the rubber element are show to the right. Because of its similar design and materials! compared to the Washington heads, Evergreen has not pressure rated this head. However, from experience, we estimate that it can handle up to 250 psi dynamic and 500 psi static of pressure or 500/0 of the manufacturer!s rating for the rubber element. As the calculation in the previous section answered, 250 psi provides several orders of magnitude of safety factors when drilling surface holes. This same head has been used over 1,000 hole sections in Colorado. The production hole will utilize a 1358 Washington Stripping head. This head has an 8-5/8", ST&C, 8 round pin on bottom that directly screws into the 8- 5/8" surface casing. There is an 8-5/811 00 opening that connects directly with the 30 foot blooey line. For both the production hole and the surface hole, the same rubber stripping element is used. Pressure ratings for this head are 500 psi dynamic (i.e., while drilling) and 1,000 psi static (i.e.! while the pipe is not moving). A picture of the Washington head is shown to the right. The only difference between this head and the one we plan to use is that the bottom here is flanged whereas Evergreen's has an 8-5/8" pin. Waiver #4- 20 AAC 25.050 No directional surveying. (1) Well is meant to be vertical. The drilling assembly cannot deviate because of its mechanics. However approval of this waiver will probably be dependent on proximity to property lines. Do you have the ability to run a well bore survey log? (2) Can you expand on the reasons deviation of the wellbore will not be significant? (1) Evergreen's drilling rig is not equipped to run (Totco) surveys. well documented fact that air drilling using a hammer must, because of the physics of the system, drill vertical holes. Evergreen will however run Totco surveys via cased hole wireline in the first two wells to prove to the commission that this drilling method produces vertical holes. (2) Evergreen utilizes an Ingersoll Rand Quantum Leap down hole hammer located immediately above the bit. This mechanism is basically a jack hammer located down hole. Air passing through the hammer actuates a piston that that cycles roughly 700 times per minute. Effective stroke on the hammer is roughly 1/5ths of an inch. Pressure required to actuate the hammer action is 200 to 450 psi. In terms of energy transfer to the formation for drilling, the air Hammer is an extremely efficient way to drill. Penetration rates exceeding 200 feet per hour are typical. Shown to the right is a schematic of a down APD Baronoff 4 Pilot 2 This is because the ) ) =V=I~GI~==N RESOURCES (ALASKA) CORP. A $¡¡b,q¡rlr'l¡f'¡ o! f:\Ip'firetm R(!l.t'rl.IfC8S. 1111: hole hammer and bit. The primary reason that air hammer drilling produces straight holes is because of the low weight on bit required to drill efficiently. Ingersoll Rand recommends that for an 7..7/8" hole, the weight on bit be 3,900 Ibs or 500 psi per inch diameter of hole. More weight would inhibit the hammer's action causing the bit to simply drag across the formation instead of hammering into it. As a comparison, traditional bits require 3,000 to 6,000 pounds of weight per inch diameter of hole drilled. This means that for an 7-7/8" hole, one would need 24,000 Ibs to 48,000 Ibs on the bit to drill. The weight on bit has a profound effect on how vertical a hole is - less weight means straighter holes. Lubinkski and Woods in the 1950's provided the industry with the basic understanding of drilling vertical and inclined holes. Here they defined several forces on the bottom hole assemblies and drill pipes that cause the hole to deviate from vertical. In his paper entitled "Influences of Tension and Compression on Straightness and buckling"! API, 1959, Volume 31, Lubinski presents equations, still used today, that conclude that the lower the weight on the bit, the more vertical the hole. Because air drilling requires very little weight on bit, buckling in the BHA and the drill string and torsional affects due to dragging the bit and the drill pipe - all of which create deviations from vertical - are eliminated. Waiver #5- 20 AAC 25.061 No seismic evaluation for shallow gas hazard. Can be justified by answers to questions under Waiver #2. Evergreen hopes that answers found in Waiver 2 and 3 provide sufficient information and surety to grant this waiver. We will further suggest that in shallow gas development, where unconventional reservoirs are the targets, that seismic is not an appropriate exploration technique. This is because unconventional formations - like coal! shales and tight sands - are ubiquitous and cover large areas. The axiom in this exploration realm is: Targets are easy to find but difficult to produce. Thus the preferred method to explore is through the drill bit and the completion rig. Completion and production techniques define the success and failure of these plays, not drilling. Seismic is not valid since we have a high degree of confidence that the formations are there. Oil and gas targets, are the conjugate - difficult to find but easy to produce. Because targets are more difficult to find, seismic is usually run. To have velocity surveys specified in MC 25.061 make sense in this exploration regime. However! this regulation does not pertain to shallow gas development. Evergreen looks forward to working with the commission on the application of this regulation to shallow gas in particular. Waiver #6- 20AAC 25.066 Not have three methane and H2S detectors present. because of rig configuration. No enclosed spaces. (1) Are there any areas where gas could accumulate? APD Baronoff 4 Pilot 2 Meaningless ') ) =\I=I~GI~==N RESOURCES (ALASKA) CORP, A $¡¡bsidimy Of EVÐf¡rOOlt ReW/JfCC$. Ifle (2) Do you know of any circumstances in Tyonek section in Cook Inlet Basin where H2S naturally occurs? (1) There are no areas where gas can accumulate. Gas produced will be methane with a molecular weight of 16 versus (air is 29). This means that methane is lighter and will disperse in an upwardly direction. (2) There are no known instances where H2S naturally occurs in the Cook Inlet and particularly in the wells drilled in the Pioneer Unit. Furthermore, even if H2S was present in the coalification process (there is no evidence of this), it is impossible for the hydrogen sulfide to replace the methane adsorbed on the coal. Waiver #7- 20AAC 25.527- No API standards All relevant waivers already covered. Spacing Exceptions- 20AAC 25.055 Wells may be within 1500' of property lines. Wells are 1100' apart. Cannot waive any regulation that affects other person's rights. Figures 18, 20, & 21 indicate the need for spacing exceptions because the wells appear to be within 1500' of a property line. Are any of the wells within 1500' of a property/lease line? Are the colored areas on Figures 18, 20, & 21 the only Evergreen leases? I.e.: Are the white areas on Figures 18,20, & 21 leased by Evergreen? Do you have a reallandmap? Who are the lessors? Maps shown in the Plan of Operations are surface landowner maps. Shown below are land maps showing mineral ownership for Pilots 1, 2 and 3. Also shown on these maps are the proposed well sites which have already been surveyed. Also included in these maps are 1,500 foot radius circles around each well showing which mineral interest owners are within this area. It should be mentioned here, that the well names presented in the Plan of Operations and in this document will be changed when drilling permits are submitted. Pilot 1 is situated on the Smith (Fee Lease). Here the Smiths own the surface and the minerals. As the figure illustrates all wells are all within 1 !500 feet of the mineral property line. Here, the State of Alaska owns the minerals and Evergreen has those minerals leased. Pilots 2 and 3 are located on State of Alaska Minerals. These minerals are all leased by Evergreen. Like Pilot 1, all wells are within 1,500 feet of the mineral property line. Adjacent to this acreage are federal acreage blocks that are prohibited from leasing. Evergreen has met with the Bureau of Land Management and described our plans to drill. Since this is an exploration project where no gas will be sold (only vented), they are not opposed to our program. If economic quantities of gas are required, then a Compensatory Royalty agreement will be signed between Evergreen and the BLM. Close to but not within the 1 !500 foot radius, are the Mental Health Trust Lands to the East of Pilot 3 and the University of Alaska Lands to the west. Evergreen Alaska leases APD Baronoff 4 Pilot 2 ') ) =\I=I~GI~==I'I RESOURCES (ALASKA) CORP. A SIJb.~idj¡!lY 01 EV~flJrMI ResrnlfCltS, Int: the Mental Health Trust Lands and is in the process of finalizing the University lands to the west. All wells are 940 to 1,100 feet apart and are designed in a way to test the Tyonek Coal Seams. In a production mode, wells will be spaced much farther apart. The table on the next page summarizes the well placement information. This data is from the surveys done. State of Alaska (Evergreen) Federal (unleaseablei 1,500 ft radius 2 State of Alaska (Evergreen) State of Alaska (Evergreen) Mental Health Trust . (Evergreen) '.500 ft racius ----¥-.-..-.----------------- '.',. ":.¡~efd.Q)".' :ft.¡~:\¡t~:'tr~\'r; :;~r;' Pilot 1 Land Map Evergreen Well Placement for Pilots 1, 2 and 3 Permit Name Well Name S-T-R Footage (from section) 1255 FNL & 933 FWL 2426 FSL & 141 FEL 3272 FSL & 606 FEL 652 FNL & 293 FEL 967 FSL & 1329 FEL 504 FSL & 422 FEL 1523 FSL & 471 FEL 991 FSL & 888 FEL 815 FSL & 1832 FWL 236 FNL & 2403 FWL 212 FNL& 1205 FWL 301 FSL & 1841 FWL Pilot 1 Well 1 Pilot 1 Well 2 Pilot 1 Well 3 Pilot 1 Well 4 Pilot 2 Well 1 Pilot 2 Well 2 Pilot 2 Well 3 Pilot 2 Well 4 Pilot 3 Well 1 Pilot 3 Well 2 Pilot 3 Well 3 Pilot 3 Well 4 DL Smith Gary & Jo Ann Stromberg Robert Smith Corn husker Cook Lowell Bering Baronoff Tyonek Kenai lIiamna Nanwalek See 2 T17N R3W See 2 T17N R3W See 2 T17N R3W See 2 T17N R3W See 30 T18N R1W See 30 T18N R1W See 30 T18N R1W See 30 T18N R1W Sec 20 T18N R1W See 29 T18N R1W See 29 T18N R1W See 20 T18N R1W APD Baronoff 4 Pilot 2 State of Alaska (Evergreen} Federal (Un"""""", ) ... !H. 19 Stale of Alaska (Evergreen} Fedel'aI (Unleaseable} Slate of Alaoka (Evergreen} Slate of Alaska (Evergreen} 29 Stata of Alaska (Evergreen} Stale of Alaska (Evergreen} Federal (UnÌII...l!ble} 01 Alaska rgreen} State of Alaska (Evergreen, Federal (Un......obIa, Pilots 2 (South) and 3 (North) Land. Map APD Baronoff 4 Pilot 2 G ~Ol!d V JOUOJe8 OdV' aJnpa:>OJd 6UIIIIJO pasodoJd 8 x!puaddv ( JUt '~~¡~lmi)j)O~ tHNI.I!JJ/¡/1\3 ¡o Á/lJfPJt.'qnf:i \'I 'düOO (Y)SY1Y) SilOl!nOS31:! I'I==~IÐ~I=J\= ( ) ) =\I=I~GI~==N RESOURCES (ALASKA) CORP. 4 $1,b!1ldJII'Y of £WJrpf!~b'I R6~rnlrCI/:.!'Ì, I/'IC Proposed Drilling Procedure Evergreen Alaska Corporation Well Location Elevation Field Target Proposed TD Baronoff 4 (Pilot 2) SE/SE of Sec 30 Twp 18 North Rng 1 West Seward Meridian 504' FSL & 423' FEL OF SEC Matanuska-Susitna Borough! Alaska USA Kelly: 407 Ground: 404 ft (3 ft AGL) Pioneer Unit Tertiary Tyonek 2990 Objective Air drill, log and set casing for the subject coal bed methane exploration well. Casing Program Hole Casing Casing Casing Size Size Weight Casing Casing Depth Cement (in) (in) (Ibs/ft) Grade Connection (ft) Interval Conductor 13.875 12.75 49 H2O Pipe Welded 125 to surface Surface 11.00 8.625 24.0 J-55 ST &C 8 Round 300 to surface Production 7.875 5.50 17.0 J.55 ST&C 8 Round 2990 to surface Open Hole Logging Program Log Interval Spontaneous Potential TD to :t 20 ft in Surface Casing Single Induction TD to :t 20 ft in Surface Casing Gamma Ray TD to :t 20 ft in Surface Casing Caliper TD to :t 20 ft in Surface Casing Compensated Density TD to :t 20 ft in Surface Casing The first well drilled in each pilot will have an induction log run on the surface hole to confirm that we have drilled beyond the fresh water zone. A Totco survey will be run in the cased hole to confirm that hammer air drilled holes must be vertical. Mud logging Program Mud log the subject well from surface to TD. Samples every 10 feet. Formation Tops Formation Quarternary Gravel Tertiary Tyonek Estimated Tops (ft KB) Surface 100 Generallnformation All information not publicly available is considered Tight Hole and confidential. Spill Prevention Plan and Bear Mitigation measures must be adhered to at all times. APD Baronoff 4 Pilot 2 ) ) =\I=I~GI~==I'I RESOURCES (ALASKA) CORP. A $IJbskfj¡uy of E'VÐf!]feeI1 RQSlIurcIJS, ¡Me Proposed Drilling Procedure Baronoff 4 (Pilot 2) Section 30 Twp 18 North Rng 1 West Seward Meridian Matanuska-Susitna Borough, Alaska CONDUCTOR PIPE 1. MIRU Water Well Contractor. 2. Casing drill using air and air hammer bit to +/- 225 feet or at least 25 feet into the Tyonek formation. Casing is 12-3/4 inch 00 and 12 inch 10 casing. Evergreen personnel will be on location to determine when depth is sufficient. Set casing 8 inches below ground level. Water contractor responsible for sourcing casing. Note: Casing must be straight (not bent) Casing must be vertical 3. POOH with casing drill & LO. 4. Install bell nipple consisting of a 13-3/8" (8 Round, Short Thread and Coupling - standard connection in oil industry) collar on 12.7500 pipe. Weld nipple on both the inside and outside of casing. Water contractor will be responsible for sourcing bell nipple and welder. 5. Install cementing head (13-3/8"x2" swedge with two 2" valves, 2" nipple and 2" plug. Assembly from bottom up are: Swedge, valve! nipple and valve. 6. Cement (grout) program is as follows: a. Pump 1100/0 of casing volume b. Pump annulus volume of cement plus 500/0 excess c. Displace with one casing volume less 2 barrels (100 gal) of water. This will leave 14.2 feet of cement in casing. d. Close both valves at surface, disconnect grouting unit. Ensure surface assembly hold pressure. If leaving well before If cement does not circulate! then place 10 bbls of cement down annulus from the surface or until the surface annular volume is full of cement. Cement Weight Yield Water Additives Type I Portland 15.6 ppg 1.18 fe/sk 5.2 gal/sk 1 % CaCI 7. Place plug on top valve to secure if valve becomes accidentally opened. 8. Wait on Cement at least 8 hours. 9. Open valves at surface. If cement has not set (water will rush out of 2" valve)! then close valve and contact Evergreen immediately. 10. Connect Cement (grouting) head to water pump. Pressure test casing to 200 psi for 10 minutes. If pressure holds 200 psi for 10 minutes, then proceed to the next step. If not then Evergreen Personnel will advise on next step. 11. RIH with 11" bit (tricone or otherwise) on drill rods. Drill out cement in conductor casing and drill ahead an additional 5 feet. Note any gravel that circulates to surface. 12. Circulate hole with air for 15 minutes. Note any evidence that the gravel is sloughing in during drilling or circulating. If sloughing occurs! then notify Evergreen immediately. 13. POOH and LO rods and bit. 14. ROMO Water Well Contractor proceed to next hole. APD Baronoff 4 Pilot 2 ) ) =\f=I~GI~==I'1 RESOURCES (ALASKA) CORP, A S(Jb,~ldir1lY of EVPf¡')rmU' ResDLIfCI1S, I/'Ie Proposed Drilling Procedure Baronoff 4 (Pilot 2) Section 30 Twp 18 North Rng 1 West Seward Meridian Matanuska-Susitna Borough! Alaska SURFACE AND PRODUCTION HOLE 1. MIRU Evergreen Rig Number 1. Rig Layout is shown in Figure 1. Crane will be on location to unload Evergreen Portable cementer and Portable batch mixer. A 28 foot trailer with mud additives to kill well will be adjacent to the cement unit. Have kill likes from cement pump to rig's stand pipe ready for kill operation. 2. NU Oiverter head (13-3/811 pin on bottom x 4-1/211 OP) and 30 feet 8-5/8'!! 24 ppf blooey line with 125 psi gate valve. 3. RIH with 1111 bit on hammer, stablizer on 4-1/211,17 ppf drill pipe. Air hammer drill surface hole to 350 feet. 4. Condition Hole. 5. POOH & LO drill pipe, stablizer! hammer and bit on trailer. Move pipe trailer 30 feet forward. 6. RIH with 8-5/811, 24 ppf, J-55, ST&C, 8 round, Range" casing (no casing greater than 31.5 feet), with centralizers on 1st, 3rd and 5th joint. Run open-ended. Set casing at ground level. 7. Install cement head. 8. RU Cementers. Circulate cement to surface. 9. Shut-valve at surface. Wait on cement 6 hours. 10.0pen valve on cementing head. Ensure that the cement has set. RIH with 7- 7/811 drill bit! hammer, stabilizer on 4-1/211 drill pipe. Tag cement. Ensure that there is 10 feet of cement inside casing. If not, then do not drill out, and contact Evergreen for further instructions. 11.lnstall Washington Oiverter Head (8-5/811! 8 rd pin, ST&C) and 30 ft blooey line (used to drill out surface casing). 12. Orill a head to 2!990 ft KB. Well will be TO!d above this level if significant hole problems occur. 13. Condition hole with air. Monitor gas flow from well for 5 minutes. If gas is venting from hole at rates too high to safely run casing! then kill well with water. If water is not sufficient then, weight up with 10 ppg fluid consisting of xanthan gel (125 CaCI sxl100 bbl! 2 sx xanthan gel/100 bbl). 14. POOH & LO bit, hammer, stabilizer, drill pipe. 15. MIRU Patterson Wireline. Run open hole log suite consisting of gamma, compensated neutron, caliper, induction & spontaneous potential. Confirm setting depth of casing. 16. Install Casing Running Oiverter on 30 foot blooey line. 17. RIH with 5-1/211 guide shoe, shoe joint, insert and remaining 5-1/211 17 ppf! ST&C! J-55, 8 round, Range II casing (31.5 max length), with 5 bow centralizers on 1S\ 3rd, 10th! 15th and 20th joint. Install 500 psi casing head & run 5-1/211 casing with with 611 of stick-up. 18. Cement production casing from bottom to surface. 19. Clean-up well site. 20. ROMO Cement Unit and proceed to next well 21. ROMO Evergreen Rig #1 and proceed to next well. APD Baronoff 4 Pilot 2 =\f=I~GI~==N RESOURCES (ALASKA) CORP. A S(Jb,f¡idiRry of EVp.rgm8/1 ReWtlfC/ftS, (MC Conductor 12-3/4 inch Welded conn. Surface Casing 8-5/8 inch 24 ppf! J-55 ST&C! 8 Rd Range II Production Casing 5-1/2 inch 17 ppf! J-55 ST&C, 8 Rd Range" APD Baronoff 4 Pilot 2 ") ) PROPOSED Drilling Procedure Baronoff 4 (Pilot 2) Section 30 Twp 18 North Rng 1 West Seward Meridian Matanuska-Susitna Borough! Alaska Set at 125 feet KB Cemented with sx Set at +/-425 feet Cement circulated to surface with xxx sx cement Set at 2,990 ft KB Cement circulated to surface with xxx sx cement ') ) =\I=I~GI~==I'I RESOURCES (ALASKA) CORP. A $ubSldlr1"f of Evergrmm ReSOOrCt15, Inc PROPOSED Telephone Contact List Baronoff 4 (Pilot 2) Section 30 Twp 18 North Rng 1 West Seward Meridian Matanuska-Susitna Borough, Alaska Company Name Location Telephone Columbine Mudlogging Spencer Flournoy Henderson, CO Office: 303-289-7764 Fax: 303-289-7764 Trinidad (Trails Inn Motel) Front Desk: 719-846-4425 Patterson Wireline Pat Patterson Weston, Colorado Office: 719-868-2119/3311 Evergreen Resources Alaska John Tanigawa Wasilla, AK Office:907 -357 -8130 P.O. Box 871845 AK Proj Manager Fax: 907-357-8340 Wasilla, AK 99687 Cell:907 -841-0000 Evergreen Resources Inc. Tom Hemler Denver, Colorado Office: 303-298-8100 Suite 1200 Drilling Manager Fax: 303-298-7800 1401 Seventeenth Street Cell:719-680-1378 Denver, Colorado 80202 P.O. Box 660 Jerry Jacobs Denver, Colorado 80201-0660 Enviro Manager Pense Brothers Drilling Larry Pense Glenpool, OK Office:918-322-3095 Mobil 918-625-1668 Fax: 918-322-3829 APD Baronoff 4 Pilot 2 \1= L!) I"'--. ~ Q en ø z ~ :::::> U .- U LU ~ 0 ---- 2 ~ LU co i- ~ \) EVERGREEN RESOURCES ALASKA CORP DRilliNG SITE LAY OUT 500 Bbl Frac Tank Q. CD CD "0 ;t:: :t::L() a.. (/) "0 D o>cCD .£; 0 C :I=;t::::J ::J ~ ug >< ;t:: 0 0 ill >< ~ .c Q 0 co ~ ill >< ~ .c Q 0 ~ Blooey Line 30 ft (8 in) Mudlogger Trailer -------" "0 (]) Co> :J .- o~ ~'§ ~O Ü :J .= 10 WEU Light Plant D .œ c (]) E CD u D Light Plant Cement Additives 0), Cl J! ~; Mud Supply Trailer Two Compressors Air Booster & Fuel Trailer Doghouse & Parts Trailer Pipe Trailer ¡ 20' Trailer ¡flatbed I I Truck Core Desorb Trailer DD Toilet Trash 200 ft ~~ 0~ ~~ ~~ 0) 0) 0 en C 0 0 0)-1= --IC \t=w 0"0 ('f)O 0 c:: =\I=I~GI~==N RESOURCES (ALASKA I CORP Wellhead Location ;t: a a 80 ft 0 120 ft ;t: LC ,..... ~ Items Description Mud Supply Trailer - 28 ft enclosed Batch Mixer - Two 75 bbl tanks 500 BBL Frac Tank - Fresh Water Cementer - on 20'x8'x8.5' skid Cement Additives - 20'x8'x8.5' conex Light Plants - Two to Three on site Compressor - Two Ingersoll Rand XHP 900 scfmI350 psi Booster. Hurricane 3,000 scfm at 1,000 psig Light Fuel Tank - 1,500 gallon diesel tank w/auto shut-off Plant Doghouse Toolshed - 40 ft container wIgen-set D Pipe Trailer - has 3,300 ft of 30 ft rods 20' Trailer - holds spider, casing running equipment, BHAs Core Desorbtion Trailer - 18-24 ft trailer on site when coring Mudlogging Trailer -18 ft trailer wI gas chromat & computer Drill Rig - 1999 Ingersoll Rand RD-20 Truck Mounted Drill Rig Blooey Line - 30 ft length & 8-5/8", 24 ppf casing Cuttings Pit - 100ft by 30 ft by 6 ft deep lined Berm. use material from cuttings pit to stop blooey line pits Parking Area - At rear of Location Kill Lines. from cementer to drill rig, always rigged up Toilet. Portable Toilet on Trailer Trash. Commercial or Fabricated Bin .-....."./ Sample Photo =\'=I~GI~==I\I RESOURCES (ALASKA) CORP. 4 SubsJ{f'nry of Ever'f}rot!fl RfSDufC(f.". !lie Well Control Diagrams Baronoff ~ EVERGREEN RESOURCES AlASKA SURFACE CASING DIVERTER 15 in .----.'--'---.__A'__-V_--.'-- . - _..:~::::::__:.I 16 in CONNECTOR is a 13-3/8" PIN ST&C, 8 RD, J-55 1:" ~7 '/2"'.. APD Baronoff 4 Pilot 2 EVERGREEN RESOURCES AlASKA PRODUCTION CASING DIVERTER WASHINGTON DIVERTER RUBBER ELEMENT MODEL 401 O-C (See Below) 16 in To 30 FT BLOOEY LINE 8-5/8",23 PPE J-55 CASING 8.097" ID with Hammer Union connectc CONNECTOR 8-5/8" PIN ST&C, 8 RD, J-55 ..71!;2--"'" WASHINGTON DIVERTER RUBBER ELEMENT MODEL 4010-C (See Below) Pressure Rating: 1 ,000 psi Static, 500 psi Dynamic ~ To 30 FT BLOOEY LINE 8-5/8", 23 PPF, J-55 CASING 8.097" ID with Hammer Union connector \ -..-F =\'=I~GI~==I~I RESOURCES (ALASKA) CORP. '- Tubular and Cement Information Baronoff 4 (Pilot 2) Section 30 Twp 18 North Rng 1 West Seward Meridian Matanuska-Susitna Borough, Alaska Drin Pipe 1117 Hole 1117 Hole 817 Hole 817 Holle Size Pipe Weight ID Drift Collapse Burst Tinsile Capacity Capacity Capacity Capacity Annulus Annulus Annulus Annulus (in) Grade (ppf) (in) (in) (psi) (psi) (Kpsi) (bbl/ft) (ftIbbl) (gal/ft) (ftIgal) (bbl/ft) (ftIbbl) (bbl/ft) (ftIbbl) 4-1/2 0 16.6 3.826 2.812 7,620 7,210 242 0.01422 70.32 0.5972 1.6744 0.0979 10.2175 0.0425 23.5295 I -....-- Surface Casing 1117 Hole 11!! Hole 1117 Hole 1117 Holle Size Pipe Weight ID Drift Collapse Burst Tinsile Capacity Capacity Capacity Capacity Annulus Annulus Annulus Annulus (in) Grade (ppf) (in) (in) (psi) (psi) (Kpsi) (bbl/ft) (ftIbbl) (gal/ft) (ftIgal) (bbllft) (ftIbbl) (gal/ft) (ftIgal) 8-5/8 K-55 24.0 8.097 7.9272 1370 2950 263 0.0636 15.70 2.6749 0.3738 0.0453 22.0860 1.9017 0.5259 Production Casing 817 Hole 817 Hole 8-5/8 Surf 8-5/8 Surf Size Pipe Weight ID Drift Collapse Burst Tinsile Capacity Capacity Capacity Capacity Annulus Annulus Annulus Annulus (in) Grade (ppf) (in) (in) (psi) (psi) (Kpsi) (bbllft) (ftIbbl) (gal/ft) (ftIgal) (bbl/ft) (ftIbbl) (bbl/ft) (bbllft) 5-1/2 J-55 15.5 4.950 4.825 4040 4810 202 0.0238 42.01 0.9997 1.0003 0.0328 30.5012 0.0343 27.94 51/2 J-55 17.0 4.892 4.767 4910 5320 229 0.0232 43.01 0.9764 1.0242 0.0328 30.5012 0.0343 27.94 ,~ Cement Information Density Yield Yield Water 11" Hole 8" Hole Name (Ib/gal) (ft3/sk) (bbl/sk) (gal/sk) Additives Capacity Capacity Surface Set 15.6 1.21 0.2155 5.3 Versaset ~%, 5% Salt, % Ib/sk Flocele 0.1175 bbl/ft 0.622 bbl/ft Pioneer LS 12.2 1.94 0.3455 9.4 2% gel, 2% CaCI, 1 % Thixset A %% Thixset 8, ~ #/sk Flocele 8.5076 fUbbl 16.0846 fUbbl APD Baronoff 4 Pilot 2 =\'=I~GI~==I'I RESOURCES (ALASKA) COR~ A Subsidiary of Evergreen Resources, Inc. ) August 26 2002 Ms. Cammy Oechsli-Taylor, Chair Alaska Oil and Gas Conservation Commission 333 West ih Ave.! Suite 100 Anchorage, Alaska 99501 RE: Application for Permit to Drill: Baronoff Number 4 SE/SE of Sec 30 Twp 18 North Rng 1 West Pioneer Unit, Matanuska-Susitna Borough Target: Tertiary Tyonek, Proposed TD: 2990 Feet Proposed Spud Date: 18-Sep-2002 Dear Ms. Oechsli -Taylor, Evergreen Resources Alaska Corporation hereby applies for a Permit to Drill for the subject well located approximately 30 miles north of Anchorage. The well is planned as a shallow, straight hole drilled to evaluate the producibility of the Tyonek Coals. A local water well drilling contractor will casing drill a 12-3/4" conductor past. the base of the unconsolidated gravels and cement the conductor in place. Evergreen's Ingersoll Rand RD-20 air-drilling rig, which recently arrived in Alaska! will then drill the 11" surface hole to a depth that protects the fresh water aquifer. A string of 8-5/8" surface casing will be run and cemented to the surface. A 7-7/8" hole will then be drilled to TD and a string of 5-1/2" casing will be run and cemented to surface. The entire drilling process takes less than 3 days. Attached is information required by 20 AAC 25.005 (a) and (c) for your review. Due to the differences in equipment and methods used for air-drilling coal bed methane (CBM), we require several variances from current AOGCC regulations. These variances are recapitulated in this APD. Three items are of note. First, Evergreen has already contacted adjacent mineral interest owners. All parties, whether they be the State of Alaska or the Bureau of Land Management, know that some well locations are within 1 !500 feet of our adjoining property lines. All affected parties are support of our exploration efforts. Secondly, to better determine the depth that surface casing should be run! an induction log will be run to determine the appropriate depth of the surface casing for the pilot. Finally, we will run a directional survey in the first one or two wells in the cased hole to prove that down hole hammer drilling must drill straight holes. The designated contact for reporting responsibilities to the Commission is John Tanigawa, Alaska Projects Manager, 907-841-0000 as outlined in 20 AAC 25.070 and 20 AAC 25.071. Evergreen appreciates you and your staff's assistance during this, our first drilling campaign in Alaska. We look forward to working with you in the future. Sincerely, enclosures PO, Box 871845 . Wasil/a, AK 99687 . TEL 907,3578130 . FAX 9073578340 j'\'\i"::'\\:\;;\~\:'0::;::~;~l~\'\'..;x\' , .; I =t.ïr~1:tj ~ Ul~ ~ tmQrl1.'. - OJ ¡j1~U::t., :'. ....l.....,....~......,........\.,..':;~D\,~;~;~~\~:")~:~J~:)~~~:;~i!',~~~~1'\'j l')J"~' .~'.a!A:{~0\~,~\.~h'j'~'m , .'."i:;:::::;;,:;::\\\'S,,"\ .' .":,\'::\::\I'::'\\:\"\\i\\i(;ii:;~:\::::,:'}\'X "."" ..' "'.:;il)\\',\ . ..X,iI: ',,1',-,1.\ \\<;.\~ '\;::";'\":":\'\"'\ B~~\~g r~,~g'OR~.råti ng/{)orp 14€1:1::\1.7th!:,StreeJ, Suite 12QO Deriy\~\r\'~:<D 8Ö.2Ø2 \\;~';\;,",)::.:\\:\\'::" ", ',:." Controlled 05/30/2002 1<************$100:00 \;,\".:,\\ " TO THE Qa:~;f~'R OF Alaska Oil and Gas Conservation Commission 333 West 7th Avenue #100 Anchorage AK 99501 ' Void After 90 Days PAY One Hundred Dollars and Zero ~&?c1~ ..._.-_I..-.~~.' .'~.,_...- '. . ~- .. ..._-~ -,".--~_..., ....._-,,--~" -.... '~'... . "..". --.---.".. -- . L - ".".. -~. "", ,..,.....-. ........--_. .~.'~.~ ---'~' ---~..~ -,,_. - -- .. "'h ~ -..' ~ -..- . ... - -. - [[ .. III 0 0 8 ~ DOl. 8 g ~ III I:~' ~ ~ ~ 0 l. a ? en: 5 l. 20 2 l. ? 0 l. III ^PLEASE DETACH AT PERFORATION ABOVE^ ^PLEASE DETACH AT PERFORATION ABOVE^ :V:I~GI~::N EVERGREEN RESOURCES, INC. ~1IIIIIiIII' . . - ~'I ! 042802 JT-01 04/28/2002 l 12 Month Drilling Permit Fee Evergreen Operatina Corp 1401 17th Street. Suite 120lS Denver CO 80202 Check Number -- 100.00 0.00 ) TRANSMIT AL LETTER CHECK LIST CIRCLE APPROPRIATE LETTER/PARAGRAPHS TO BE INCLUDED IN TRANSMITTAL LETTER WELL NAME ¿CJI..rO- J1c!f Ý 20Z-/7g PTD# CHECK WHAT APPLIES ADD-ONS (OPTIONS) MULTI LATERAL (If API number last two (2) digits are between 60-69) PILOT (PH) HOLE SPACING EXCEPTION / DRY DITCH SAMPLE Rev: 07/10/02 C\j ody\templates "CLUE" The permit is for a new wellbore segment of existing well Permit No, API No. Production should continue to be reported as . a function' of the original API number stated above. In accordance with 20 AAC 25.005(1), all records, data and logs acquired for the pilot. hole must be clearly differentiated in both name (name on permit plus PH) and API number (50 70/80) from records, data and logs acquired for well (name on permit). The permit is approved subject to full compliance with 20 AAC 25.055. Approval to perforate and produce is contingent upon issuance of a conservation ord.£!.. approving a spacing exception. t: V~ ":<f }Y!(f!:y? (Company Name) assumes the liabilif,' of any protest to the spacing. exception that may occur. All dry ditch sample sets submitted to the Commission must be in no greater than 30' sample intervals from below the permafrost or from where samples are first caught and 10' sample intervals through target zones. STATE OF ALASKA ADVERTISING ORDER SEE BOTTOM FOR INVOICE ADDRESS INVOIC~ST BE I~~!~~~ S~~'~~;~~'~~ER NO~'EO AFFIDAVIT OF PUBLICATION (PART2 OF THIS ¡:ORM) WITH ATTACHED COPY OF ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE ~ð2 .j?? ADVERTISING ORDER NO. AO-02314010 F AOGCC R 333 W 7th Ave; Ste 100 0 Anchorage, AK 99501 M AGENCY CONTACT Jody Colombie PHONE DATE OF A.O. J August 16, 2002 PCN , . ~ Anchorage Daily News POBox 149001 Anchorage, AK 99514 (907) 793 -1 ??1 DATES ADVERTISEMENT REQUIRED: August 1 7, 2002 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 Account #STOF0330 Advertisement to be published wase-mailed D Classified DOther (Specify) SEE ATTACHED PUBLIC HEARING SENlllNVOICE IN TRI~LlCATE AOGCc. 333 W. 7th Ave.. Suite 100 , T' ',; """ TO ',' ",'" ", - "Anchorage, AK 99501 REF TYPE NUMBER AMOUNT 1 VEN 2 ARD 3 4 DATE PAGE 1 OF TOTAL OF 2 PAGES ALL PAGES$ COMMENTS 02910 FIN AMOUNT Sy CC PGM LC ACCT FY. NMR DIST lIO 1 2 3 4 , , , ,r-", t, A : REQUISITIONED B1= \ ( ¡ i" ,p\\, ,! f - ~ ~WU{V~ , /ì \~ i v 03 02140100 73540 DIVISION APPROVAL: 02-902 (Rev. 3/94) Publisher/Original Copies: Department Fiscal, Department, Receiving AO.FRM J Notice of Public Hearing .. STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: Evergreen Resources (Alaska) Corp. Pioneer Unit, Matanuska, Susitna Borough Evergreen Resources (Alaska) Corp. by letter dated August 15, 2002, has requested an exemption from the gas detection equipment requirements of 20 AAC 25.066. ' The Commission has tentatively set a public hearing on this application for September 19,2002 at 1:30 pm 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 September 3,2002. If a request for a hearing is not timely filed, the Commission will consider the issuance of an order without a hearing. To learn if the Commission will hold the public hearing, please call 793-1221. In addition, a person may submit written comments regarding this application to the Alaska Oil and Gas Conservation Commission at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. Written comments must be received no later than 4:30 pm on September 17, 2002 except that if the Commission decides to hold a public hearing, written comments must be received no later than 9:00 am on September 19, 2002. If you are a person with a disability who may need a special modification in order to comment or to attend the publìc hearing, please contact Jody Colombie at 793-1221 before September 5,2002. ~~- ~tI Cammy Oechsli Taylor Chair Published Date: August 17, 2002 ADN AO# 02314010 J Anchorage Daily. News Affidavit of Publication 1001 Northway Drive, Anchorage, AK 99508 J PRICE OTHER OTHER OTHER OTHER OTHER GRAND AD# DATE PO ACCOUNT PER DAY CHARGES CHARGES #2 CHARGES #3 CHARGES #4 CHARGES #5 TOTAL 532873 08/17/2002 02314010 STOF0330 $128.78 $128.78 $0.00 $0.00 $0.00 $0.00 $0.00 $128.78 STATE OF ALASKA THIRD JUDICIAL DISTRICT Lorene Solivan, being first dulyswom on oath deposes and says that she is an advertising representative of the Anchorage Daily News, a daily newspaper. That said newspaper has been approved by the Third Judicial Court, Anchorage, Alaska, and it now and has been published in the English language continually as a daily newspaper in Anchorage, Alaska, and it is now and during all said time was printed in an office maintained at the aforesaid place of publication of said newspaper. That the annexed is a copy of an advertisement as it was published in regular issues (and not in supplemental form) of said newspaper on the above dates and that such newspaper was regularly distributed to its subscribers during all of said period. That the full amount of the fee charged for the foregoing ublication is not in excess of the rate charged private individ <~Lý7 Subscribed and ~; J;e this date: \ Notary Public in and for the State of Alaska. Third Ð.iViSion.AnchOrage, Alaska ~ L MYCO~EXP~S:/~ 6<57é J çt~"Z.ç7Afk / ~ \\\\t( l(fl.,... , \.\.\. ..\:\~~: ~..."r,., ~ Otb.. --- .;~ ~ ~~:~OTAR)::*-~ ". --- . ~ ....... . . ..... - . Þua;\C . - -'2. . .~~ - "., --~: ~ - . . ~ ~. ..:"1 ~~~~Qf. .. ~'~ ~.¿,s.. ...~ :\~ /..I.//}jJ~))\\\\ .Notiêe';öfP~bl!ç,~~a.r~l1gt " ,'Áia~ka ',Òil~~:~~~~:c~~~~~4~~~~~~q1~i.~SiÖ~;_;', ¡i1~~~r~.~t~.~ ,... ,JlJ~~ . f¡-ømtb~9á.Sdèt~ctiQO;~cÌlI i~in,~,ntxèq uiremerih,'of 20AAC2$:066>' ."; .," .': i.. "ò' '.:' . . Thé~6~&¡ssiÓn~a~ì~~~(]~¡v~(~<stÚ,a'~u~lìc.hf!(]r~' ingOiithi$;qppllëatt(,rífór~~Pternb~r.19ì}2002at' 1': 30.Pmat:tI:1~\A:taskCl~O iJ::a'ridG.asCon~E! .."atiol'! COmIJlissiÖn(it3' "'7m iA v~liue, Su ite fl 00> An" .'çh~r(Jg~ì~lasl5(J .'. .' .{A-p#f~on;mayreqUE!stthdt the .tel'!tativ.~ly -sch~du led he.dring be. he Id:byfil i ng .'0 ;wrlften.I'eq\J.esl¡W1t11ithè';Co mm i.ss ion.ho later :th(jij\4:3Ø;~mÞh'Srp~i;Ìj9~r3,2Q02,. . . '. "':' . , ,g()~~~~fiM~~i~lè~$ii~~rir~t~~P¡~6~~~la~a~~r:~~t' , " withoUla'hearing. Toleárn' if the Conimi~slo-ri.wil! ~Ò!d the public h~Clr.j¡:I~¡'píe()sE! cc;lIl79~~1221i":~;;;>;' . .j'n .' (Jd~¡ t ion;:'q'pef~ò h';mqysubrn it;~ritt~!!;~On1~~ ments' règard ingtl:1 is; a.pplicationto tneAlòsl<a OJ! ándGas ConservationCommissiorl at333'VV~sfJfh Ayen ue,S u ite'l 00; Anchor(Jgei Alaska 995Ql..WriF . t~n. 'cornmentséfl1\Jst.ber~çeiv~d;;noic:1terthgn;4:~ i:>rn()i'):Septern )et<17i2002.~)ccept thatif' tfiø.Cè!Ô'I': ~ 'missjóndecidèstohoid:a'pubUc;hearing~~'oNì'iftèn: :'cõmnients' musf be,.recei'ved.no: later 'than '9::ooJ,om, onSè~tE!lÏ1bér'19).200.2>' , ,,' .'. '.' ';,'. . '. ' . . If YOU are a person with a disability who lÏ1óvnëèd as)eciolmodificationin order to'comment'or to 'att~rid thepublid,~ar'ing, please contact JodY Co- , IO"'!t;>ie af793-1221befClreSeptember5, 2002." ¿ámmy Oechsli Taylor I ~::::'h' Aoou" 17, 2002 AO# 02314010 STATE OF ALASKA ì NOTICE TO PUBLISHER} ADVERTISING ORDER NO. ADVERTISING INVOI~ST BE IN TRIPUCATE SHOWING ADVERTISING OROER JIIRTlFlEO. AO 02 31401 0 AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COpy OF . ORDER ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE . :>~E~.~~J]~;:f:~:"~~~~,:~R:~s~'~}:!~~~; F. AOGCC R 333 West 7th Avenue, Suite 100 0 Anchorage, AK 99501 M AGENCY CONTACT Jody Colombie PHOI'IE (907) 793 -1 ?? 1 DATES ADVERTISEMENT REQUIRED: DATE OF A.O. '~c~st 16, ?,OO? ~ Anchorage Daily News POBox 149001 ' Anchorage, AK 99514 August 17, 2002 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRElY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: Account.#STOF0330 United states of America AFFIDAVIT OF PUBLICATION REMINDER State of ss INVOICE MUST BE INTRIPLlCA TE AND MUST REFERENCE THE ADVERTISING ORDER NUMBER. A CERTIFIED COpy OF THIS AFFIDAVIT OF PUBLICATION MUST BE SUBMITT£D WITH THE INVOICE. ATTACH PROOF OF PUBLICATION HERE. division. Before me, the undersigned, a notary public this day personally appeared who, being first duly sworn, according to law, says that he/she is the of Published at in said division and state of and that the advertisement, of which the annexed is a true copy, was published in said publication on the day of 2002, and thereafter for - consecutive days, the last publication appearing on the - day of . 2002, and that the rate charged thereon is not in excess of the rate charged private individuals. Subscribed and sworn to before me This - day of 2002, Notary public for state of My commission expires 02-901 {Rev. 3/94) Page 2 AO.FRM PUBLISHER \ John Katz State of Alaska Alaska Governor's Office 444 North Capitol St., NW, Ste 336 Washington, DC 20001 Alfred James 107 North Market Street, Ste 1000 Wichita, KS 67202-1822 Conoco Inc. PO Box 1267 Ponca City, OK 74602-1267 Gregg Nady Shell E&P Company Onshore Exploration & Development PO Box 576 Houston, TX 77001-0576 G. Scott Pfaff Aurora Gas, LLC 10333 Richmond Ave, Ste 710 Houston, TX 77042 William Holton, Jr. Marathon Oil Company Law Department 5555 San Fecipe St. Houston, TX 77056-2799 Chevron USA Alaska Division PO Box 1635 Houston, TX 77251 Chevron Chemical Company Library PO Box 2100 Houston, TX 77252-9987 James White Intrepid Prod. Co./Alaskan Crude 4614 Bohill SanAntonio, TX 78217 George Vaught, Jr. PO Box 13557 Denver, CO 80201-3557 ~ Daniel Donkel 2121 North Bayshore Drive Ste 1219 Miami, FL 33137 Christine Hansen Interstate Oil & Gas Compact Comm Excutive Director PO Box 53127 Oklahoma City, OK 73152 Mir Y ousufuddin US Department of Energy Energy Information Administration 1999 Bryan St., Ste 1110 Dallas, TX 75201-6801 Michael Nelson Purvin Gertz, Inc. Library 600 Travis, Ste 2150 Houston, TX 77002 G. Havran Gaffney, Cline & Associations Library 1360 Post Oak Blvd., Ste 2500 Houston, TX 77056 T.E. Alford ExxonMobilExploration Company PO Box 4778 Houston, TX 77210-4778 W. Allen Huckabay Phillips Petroleum Company Exploration Department PO Box 1967 Houston, TX 77251 Shawn Sutherland Unocal Revenue Accounting 14141 Southwest Freeway Sugar Land, TX 77478 Doug Schultze XTO Energy Inc. 3000 North Garfield, Ste 175 Midland, TX 79705 Scott Webb Ocean Energy Resources, Inc. 1670 Broadway, Ste 2800 Denver, CO 80202-4826 ~ SD Dept of Env& Natural Resources Oil and Gas Program 2050 West Main, Ste #1 Rapid City, SO 57702 Citgo Petroleum Corporation PO Box 3758 Tulsa, OK 74136 Mary Jones XTO Energy, Inc. Cartography 810 Houston St., Ste 2000 Ft. Worth, TX 76102-6298 Paul Walker Chevron 1301 McKinney Rm 1750 Houston, TX 77010 David McCaleb IHS Energy Group GEPS 5333 Westheimer, Ste 100 Houston, TX 77056 Texico Exploration & Production PO Box 36366 Houston, TX 77236 Donna Williams World Oil . Statistics Editor PO Box 2608 Houston, TX 77252 Kelly Valadez Tesoro Refining and Marketing Co. Supply & Distribution 300 Concord Plaza Drive San Antonio, TX 78216 Robert Gravely 7681 South Kit Carson Drive Littleton, CO 80122 Jerry Hodgden Hodgden Oil Company 408 18th St. Golden, CO 80401-2433 John Levorsen 200 North 3rd St., #1202 Boise, 10 83702 Samuel Van Vactor Economic Insight Inc. 3004 SW First Ave. Portland, OR 97201 Duane Vaagen Fairweather 715 L St., Ste 7 Anchorage, AK 99501 Steve E. Mulder Dorsey & Whitney 1031 West 4th Ave., Ste 600 Anchorage, AK 99501 Robert Mintz State of Alaska Department of Law 1031 West 4th Ave., Ste 200 Anchorage, AK 99501 Tim Ryherd State of Alaska Department of Natural Resources 550 West 7th Ave.,Ste 800 Anchorage, AK 99501 Mark Wedman Halliburton 6900 Arctic Blvd. Anchorage, AK 99502 John Harris NI Energy Development Tubular 3301 CSt., Ste 208 Anchorage, AK 99503 Baker Oil Tools 4730 Business Park Blvd., #44 Anchorage, AK 99503 Greg Noble Bureau of Land Management Energy and Minerals 6881 Abbott Loop Rd Anchorage, AK 99507 ~ Kay Munger Munger Oil Information Service, Inc PO Box 45738 Los Angeles, CA. 90045-0738 Thor Cutler OW-137 US EPA egion 10 1200 Sixth Ave. Seattle, WA 98101 Julie Houle State of Alaskan DNR Div of Oil & Gas, Resource Eva!. 550 West 7th Ave., Ste 800 Anchorage, AK 99501 Richard Mount State of Alaska Department of Revenue 500 West 7th Ave., Ste 500 Anchorage, AK 99501 Susan Hill State of Alaska, ADEC EH 555 Cordova St. Anchorage, AK 99501 Jim Arlington Forest Oil 310 K St., Ste 700 Anchorage, AK 99501 Mark Dalton HDR Alaska 2525 C St., Ste 305 Anchorage, AK 99503 Ciri Land Department PO Box 93330 Anchorage, AK 99503 Judy Brady Alaska Oil & Gas Associates 121 West Fireweed Lane, Ste 207 Anchorage, AK 99503-2035 Jeff Walker US Minerals Management Service Regional Supervisor 949 East 36th Ave., Ste 308 Anchorage, AK 99508 ~ John F. Bergquist Babson and Sheppard PO Box 8279 Long Beach, CA 90808-0279 Michael Parks Marple's Business Newsletter 117 West Mercer St, Ste 200 Seattle, W A 98119-3960 Williams VanDyke State of Alaska Department of Natural Resources 550 West 7th Ave., Ste 800 Anchorage, AK 99501 Cammy Taylor 1333 West 11th Ave. Anchorage, AK 99501 Ed Jones Aurora Gas, LLC Vice President 1029 West 3rd Ave., Ste 220 Anchorage, AK 99501 Trustees for Alaska 1026 West 4th Ave., Ste 201 Anchorage, AK 99501-1980 Schlumberger Drilling and Measurements 3940 Arctic Blvd., Ste 300 Anchorage, AK 99503 Mark Hanley Anadarko 3201 CSt, Ste 603 Anchorage, AK 99503 Arlen Ehm 2420 Foxhall Dr. Anchorage, AK 99504-3342 Jill Schneider US Geological Survey 4200 University Dr. Anchorage, AK 99508 Rose Ragsdale Rose Ragsdale & Associates 3320 E. 41st Ave Anchorage, AK 99508 Chuck O'Donnell Veco Alaska,lnc. 949 East 36th Ave., Ste 500 Anchorage, AK 99508 Gordon Severson 3201 Westmar Cr. Anchorage, AK 99508-4336 Perry Markley Alyeska Pipeline Service Company Oil Movements Department 1835 So. Bragaw - MS 575 Anchorage, AK 99515 Jeanne Dickey BP Exploration (Alaska), Inc. Legal Department PO Box 196612 Anchorage, AK 99518 J. Brock Riddle Marathon Oil Company Land Department PO Box 196168 Anchorage, AK 99519-6168 BP Exploration (Alaska), Inc. Land Manager PO Box 196612 Anchorage, AK 99519.;6612 Shannon Donnelly Phillips Alaska, Inc.. HEST -Enviromental PO Box 66 Kenai, AK 99611 Penny Vadla Box 467 Ninilchik, AK 99669 John Tanigawa Evergreen Well Service Company PO Box 871845 Wasilla, AK 99687 ~ Jim Scherr US Minerals Management Service Resource Evaluation 949 East 36th Ave., Ste 308 Anchorage, AK 99508 Richard Prentki US Minerals Management Service 949 East 36th Ave., 3rd Floor Anchorage, AK 99508 Jim Ruud Phillips Alaska, Inc. Land Department PO Box 100360 Anchorage, AK 99510 Jordan Jacobsen Alyeska Pipeline Service Company Law Department 1835 So. Bragaw Anchorage, AK 99515 David Cusato 600 West 76th Ave., #508 Anchorage, AK 99518 Kevin Tabler Unocal PO Box 196247 Anchorage, AK 99519-6247 Dudley Platt D.A. Platt & Associates 9852 Little Diomede Cr. Eagle River, AK 99577 Kenai Peninsula Borough Economic Development Distr PO Box 3029 Kenai, AK 99611 Claire Caldes US Fish & Wildlife Service Kenai Refuge PO Box 2139 Soldotna, AK 99669 Richard Wagner PO Box 60868 Fairbanks, AK 99706 .. Thomas R. Marshall, Jr. 1569 Birchwood Street Anchorage, AK 99508 Paul L. Craig Trading Bay Energy Corp 5432 East Northern Lights, Ste 610 Anchorage, AK 99508 Kristen Nelson IHS Energy PO Box 102278 Anchorage, AK 99510-2278 Robert Britch, PE Northern Consulting Group 2454 Telequana Dr. Anchorage, AK99517 Tesoro Alaska Company PO Box 196272 Anchorage, AK 99519 Sue Miller BP Exploration (Alaska), Inc. PO Box 196612 Anchorage, AK 99519-6612 Bob Shavelson Cook Inlet Keeper PO Box 3269 Homer, AK 99603 James Gibbs PO Box 1597 Soldotna, AK 99669 Kenai National Wildlife Refuge Refuge Manager PO Box 2139 Soldotna, AK99669-2139 Cliff Burglin PO Box 131 Fairbanks, AK 99707 Harry Bader State of Alaska Department of Natural Resources 3700 Airport Way Fairbanks, AK 99709 North Slope Borough PO Box 69 Barrow, AK 99723 .. Bernie Karl K&K Recycling Inc. PO Box 58055 Fairbanks, AK 99711 ... Williams Thomas Arctic Slope Regional Corporation Land Department PO Box 129 Barrow, AK 99723 Senator Loren Leman State Capitol Rm 113 Juneau, AK 99801~1182 J =\'=llGI~==I'1 RESOURCES (ALASKA) CORP. A Subsidiary Qf Evergreen Resources, Inc. J RECEIVED Mr. Dan T. Seamount Commissioner Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK. 99500 AUG 1 5 2002 Alaska Oil & Gis Cons.ConurIIslan Andrmage August 15, 2002 RE: Waiver for exception from 20AAC 25.066 Gas Detection Dear Commissioner Seamoun~, Evergreen Resources. is the current operator for the Pioneer Unit, Matanuska Susitna Borough and plans to drill eight wells to test the Tyonek Coals in September 2002. In this letter, Evergreen Resources Alaska requests an exemption from 20 AAC 25.066, Gas Detection for the upcoming drilling program. 20 AAC25.066 sets forth the minimum gas detection equipment for drilling and work over rigs. This portion of the regulations are included at the end of this letter. Evergreen requests a waiver from this regulation since (1) there is no H2S gas from the shallow gas formations in the Pioneer Unit and (2) due the air drilling system that we employ. To date, 12 wells have been drilled on or directly adjacent to the Pioneer Unit. None of these wells reported H2S. We therefore believe there is sufficient evidence that no H2S exists. Secondly, due to the truck mounted drilling system that Evergreen employs, sensors cannot be placed in the cellar or substructure and next to the shale shaker. Methane. gas, the primary constituent of natural gas from coal bed methane, will evolve from the air drilling process.. However, these gasses are blown well away from the drill rig, out the 30 foot blooey line and are prevented from flowing up the drill pipe due to check valves (floats). We are confident we can safely drill, complete and produce coal bed methane wells in Alaska using our well-proven systems and methods discussed in earlier correspondences. This year alone, we have drilled over 40 miles of coal bed methane wells in the US, UK and Ireland with no accidents. . We hope we can employ the same types of drilling measures, necessary for successful coal bed methane development, in Alaska. Thank you for considering Evergreen's request. Please contact me if you have questions. My telephone number is 907-841-0000 and my e-mail is JohnT@EvergreenGas.com Sincerely, John J Tanigawa P.O. Box 871834 Wasilla. Alaska 99687 Tel: 907-357-8130 Fax: 907-357-8340 \ . J =\(=I~el~==I~1 RESOURCES (ALASKA) CORP. A Subsidiary of Evergreen ResDurces, lne. J 20 MC 25.066 GAS DETECTION. (a) Drilling and work over rigs must meet the following minimum requirements for methane and hydrogen sulfide gas detection: , (1) the methane detection system must have a minimum of three sensing points; one sensing pOint must be under the. substructure near the cellar, one must be over the shale shaker, and one must be above the drill rig floor near the driller's station or above the drilling platform; if the mud pits are remote from the shale shaker and enclosed, a fourth sensor must be located over the mud pits; (2) methane sensors must be placed to detect a Blighter-than-air" gas; (3) the hydrogen sulfide detection system must have a minimum of three sensing points; one sensing point must be under the substructure near the cellar, one must be near thé shale shaker, and one must be above. the dritlrig floor near the driller's station or above the drilling platform; the commission will require additional sensors as the commission considers necessary for safety, such as at the entrance to living quarters if they are adjacent to the drill rig, or over the mud pits if they are remote from the shaker and enclosed; (4) hydrogen sulfide sensors must be placed to detect a "heavier-than-air" gas; (5) sensors must be automatic, acting independently and in parallel, and with one- minute minimum sampling intervals; . (6) each detection system must include separate and distinct visual and audible alarms; the visual alarm must signal the low level gas alarm and the audible alarm the high levél gas alarm; an audible alarm may have an "acknowledge" button; (7) the methane low level gas alarm must be set at not over 20 percent LEL; the high level alarm must be set at not over 40 percent LEL; (8) the hydrogen sulfide low level gas alarm must be set at 10 ppm; the high level alarm must be set at not over 20 ppm; (9) each alarm must be automatic and must be visible and audible from the driller's or operator's station; the hydrogen sulfide alarm must be audible throughout the drilling location, including the camp buildings. (b) A gas detection system that continuously performs self-checking or. diagnostics must be function-tested when a BOP stack is initially installed after a drill rig is set up, when a commission-witnessed BOP test occurs, and no less frequently than once every six months. Other gas detection systems must be calibrated and tested when' a BOP stack is initially installed after a drill rig. is set up, when a commission-witnessed BOP test occurs, and no less frequently than once every 30 days. The operator shall maintain at the . drill rig an accessible record of gas detection system tests and calibrations. (c) A failure in a gas detection system must be reported to the commission within 24 hours after the failure. The commission will, in its discretion, require well operations to be discontinued if a gas detection system fails. History - Eft. 11 n /99, Register 152 Authority - AS 31.05.030 P.O. Box 871834 Wasilla, Alaska 99687 Tel: 907-351-8130 Fax: 907-357-8340 Ikc.. WELL PERMIT CHECKLIST COMPANy6ltW'~V'-l4'\.1" WELL NAME Bq,v44UJ~. ittj. PROGRAM: Exp '0/' Dev - Redrll- Re-Enter - Serv - Wellbore seg- FIELD & POOL PtOêÁ.~ V" (PI OS 00 INIT CLASS E~ ? / i ... G tt ~ GEOL AREA e,W UNIT# 5 ¡ S S- CJ ON/OFF SHORE Q...~ ADMINISTRATION ~: r:~~: ~':n=~~~~pri~t~" : : : : : : : : : : : : : : : : : : ~ ~ 3. Unique well name and number. . . . . . . . . . . . . . . . . &?j 4. Well located in a defined pool.. . . . . . . . . . . . . . . . . Y 5. Well located proper distance from drilling unit boundary. . . . . Y . 6. Well located proper distance from other wells.. . . . . . . . . Y APPR DATE 7. Sufficient acreage available in drilling unit.. . . . . . . . . . . Y.ä 8. If deviated, is wellbore plat included.. . . . . . . . . .. . . . . ~. /\L{fT 9. Operator only affected party.. . . . . . . . . . . . . . . . . . . N 10. Operator has appropriate bond in force. . . .. . . . . . . . . . N 11. Permit can be issued without conservation order. . . . . . . . Y (p 12. Permit can be issued without administrative approval.. . . . . @ N (Service Well Only) 13. W ell located w/in area & strata authorized by injection order # - -¥--f'ct Ai J4 (Service Well Only) 14. All wells wlin X mile area of review identified. . . . . . . . .. -v--f'\J ENGINEERING 15. Conductor string provided. . . . . . . . . . . . . . . . . . . ~y N.- 16. Surface casing protects all known USDWs. . . . . . . Y N lit- 17. CMT vol adequate to circulate on conductor & surf csg. ~ NN - ¡J 18. CMT vol adequate to tie-in long string to surf csg. . . . [V 19. CMT will cover all known productive horizons. . . . . . . . . . &N 20. Casing designs adequate for C, T, B & permafrost. . . . . . . '7J2 NN 21. Adequate tankage or reserve pit.. . . . . . . . . . . . . . . . œ 22. If a re-drill, has a 10-403 for abandonment been approved. . . Y N AL/A- 23. Adequate wellbore separation proposed.. . . . . . . . . . . . ~N 24. If diverter required, does it meet regulations. . . . . . . . . . ~~L ~f/' ~ 25. Drilling fluid program schematic & equip list adequate. . . . . -.---n-"'- ~ 26. BOPEs, do they meet regulation. . . . . . . . . . . . . . . . ~ 1"-1 L APPR DATE 27. BOPE press rating appropriate; testto psig. r---roc- " \. f/! ~ I J 28. Choke manifold complies w/API RP-53 (May 84). . . . . . . . Y N ~rr JO ;}¡Oz.. 29. Work will occur without operation shutdown. . . . . . . . . . . @N 30. Is presence of H2S gas probable.. . . . . . . . . . . . . . . . Y A) (Service Well Only) 31. Mechanical condition of wells within AOR verified. . . . . . . . Y ~.. ^'I It- GEOLOGY APPR DATE (Exploratory Only) 32. Permit can be issued wlo hydrogen sulfide measures. . . . . 33. Data presented on potential overpressure zones. . . . . . . . 34. Seismic analysis of shallow gas zones. . . . . . . . . . . . . 35. Seabed condition survey (if off-shore). . . . . . . . . . . . . . 36. Contact name/phone for weekly progress reports. . . . . . . . Y N Y N Y N Y N Y N '.Þ:R ßW¡'~~ etiPltiAtfL"- ~ GEOLOGY: PETROLEUM ENGINEERING: RESERVOIR ENGINEERING ule ENGINEER COMMISSIONER: Commentsllnstructions: RPC- TEM JDH JBR COT WGA / DTSloj3/jO? MJW MLB ~C/3Yo z- Rev: 10/15/02 SFD- G:\geology\perm its\checklist.doc WELL PERMIT CHECKLIST FIELD & POOL COMPANY 610500 EVERGREEN WELL NAME BARANOFF 4 nitial ClasslType EXP 11-GAS PROGRAM Exploritory (EXP) ~ Development (DEV) - Redril ~ervice (SER) _Well bore seg - Annular disposal para req GEOL AREA 820 UNIT No. 51550 ON/OFF SHORE On ADMINISTRATION APPR SFD DATE 9/6/2002 (For Service Well Only) (For Service Well Only) ENGINEERING APPR WGA DATE 8/30/2002 (For Service Well Only) GEOLOGY APPR SFD DATE 9/6/2002 1. Permit fee attached............................................................................................. 2. Lease number appropriate.................................................................................... 3. Unique well name and number............................................................................. 4. Well located in a defined pool................................................................................ 5. Well located proper distance from drilling unit boundary ...."........................................ 6. Well located proper distance from other wells............ ....,.... ............... ""'."""""" ..... 7. Sufficient acreage available in drilling unit................................................................ 8. If deviated, is wellbore plat included......... ...... .. . ... . . . ... .. . ... ... .. . ... ... ... . .. ... ... .. . ... ... .. ... . 9. Operator only affected party.................................................................................. 10. Operator has appropriate bond in force "'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''' 11. Permit can be issued without conservation order..................................................... 12. Permit can be issued without administrative approval............................................... 13 Can permit be approved before 15-day wait............... .............................,.............. 14 Well located within area and strata authorized by Injection Order # 15 All wells witthin 1/4 mile area of review identified ...... ... .,................... .................. ..... 16 ACMP Finding of Consistency has been issued for this projec ..................... ............... 17 Conductor string provided................................................................................... 18 Surface casing protects all known USDWs .................................,........................... 19 CMT vol adequate to circulate on conductor & surf csg ............................................. 20 CMT vol adequate to tie-in long string to surf csg ..................................................... 21 CMT will cover all known productive horizons......................................................... 22 Casing designs adequate for C, T, B & permafrost ................................................... 23 Adequate tankage or reserve pit ... ...... ......... ......... ... ... ... ...... ... ...... ......... ... ...........' 24 If a re-drill, has a 10-403 for abandonment been approved........................................ 25 Adequate wellbore separation proposed ... ...... ......... ... ............ .......... ..... ... ...... ... .... 26 If diverter required, does it meet regulations ............ ........................ ...... ...... ...... ..... 27 Drilling fluid program schematic & equip list adequate.............................................. 28 BOPEs, do they meet regulation........................... ............................................. .. 29 BOPE press rating appropriate; test to .................... psig ........................... 30 Choke manifold complies w/API RP-53 (May 84) .....................,............................... 31 Work will occur without operation shutdown........................................................... 32 Is presence of H2S gas probable.......................................................................... 33 Mechanical condition of wells within AOR verified .................................................... 34 Permit can be issued w/o hydrogen sulfide measures............................................... 35 Data presented on potential overpressure zones..................................................... 36 Seismic analysis of shallow gas zones............ ........,............................................. 37 Seabed condition survey (if off-shore) ................................................................... 38 Contact name/phone for weekly progress reports [exploratory only] .......................... GEOLOGY: ENGINERING: RES. ENGINERING: COMMISSION: RPC: TEM: JD~ SFD:~ WGA: WG tr MJW COT: '1f (¡to z.. eør DTS: 0 c¡ / O~/O z.... Yes Yes Yes Yes Yes No Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes # 0083004893 No ADL 384685 based on DNR Mineral Estate map. No Baranoff 4 will be located in the Pioneer unit in an undefined pool within the Tyonek Fm. No SPACING EXCEPTION REQUIRED. 8-28-02: Phone John T. 8-30-02: Phone John T. and discuss requirements. SFD 9-6-02: John will No Bering #3 will be -1,000' to the north. provide spacing exception application to AOGCC shortly. Email him AOGCC checklist to aid him No Second gas well in Sec. 30, T18N, R1W, SM in building his applications. SFD Not Applicable: vertical well No SPACING EXCEPTION REQUIRED; text for public notice drafted. Waiting on application. SFD Not Applicable Not Applicable 8-29-02: DNR rules that the project is consistent with the Alaska Coastal Management Program and the Local District Plan. SFD 12-1/4" @ 125'. 8-28-02: No information. 9-6-02: Offset well data and Evergreen's C-Plan Exemption request suggests that casing set at the proposed 300' Surface Casing depth should be adequate to protect glacial till Jayer, which is the drinking water aquifer for this area. Nearest drinking water wells are about 1 mile away, and they range in depth from 41 to 285 feet deep. Prior well Bering #3 will be logged to demonstrate depth of drinking water aquifer. Not Applicable Air drilled. Not Applicable Not Applicable Not Applicable No Not Applicable No 8-28-02: No information provided. 9-6-02: Pioneer 15DD (4 miles SW) reportedly drilled interval with 8.4 ppg. Pioneer 14CC drilled Not Applicable interval with 9.2 ppg mud. Pittman 1 (4 miles W) tested 120 bId gassy water with SIP of 640 psi at -1100', and Not Applicable this inteval was drilled with 9.5 ppg mud. AK94CBM (1 mile S) driiling records contain no info on mud John Tanigawa: 907-841-0000 weights used to drill the interval. Evergreen will have materials and means to create 10.5 ppg mud onsite. Comments/Instructions 8-28-02: Spacing exception required to produce the well. Directional survey required as this well is within 500' of property line. SFD