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12/1/2004 Orders File Cover Page.doc
1.
May 5,1972
2.
3.
May 11, 1972
October 6, 1972
)
Conservation Order 104A
Kenai Peninsula Chapter request for delay n termination of Cook Inlet
Offshore Flaring
Testimony
Union's Application of Extension
Conservation Order 104A
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STATE OF ALASKA
DEPARTMENT OF NATURAL RESOURCES
DIVISION OF OIL AND GAS
Alaska Oi I and Gas Conservation Committee
3001 Porcupine Drive
Anchorage, Alaska 99504
Re: THE APPL I CAT ION OF UN I ON 0 I L
COMPANY OF CALIFORNIA for an order
amending Rule No.2 of Conservation
Order No. 104 by deleting the date
"July I, 197211 and substituting the
date IINovember I, 1972".
Conservation Order No. 104-A
McArthur River Field
Midd Ie Kenai "811 Oi I Pool
Hem lock 0 i I Poo I
West Foreland Oi I Pool
June 8, 1972
IT APPEARING THAT:
I. The Oi I and Gas Conservation Committee published a notice of public
hearing in the Anchorage Dai Iy News on Apri I 14, 1972, pursuant to Title I I,
Alaska Administrative Code, Section 2009.
2. A public hearing was held May I I, 1972 in the City Counci I Chambers
of the Z. J. Loussac Library, 5th Avenue and F Street, Anchorage, Alaska,
at which time operators and affected parties were heard.
FINDINGS:
I. Immediately fol lowing issuance of Conservation Order No. 104, operators
and affected parties commenced studies to determine a beneficial use or
uses of the excess casinghead gas being flared.
2. Fol lowing determination of beneficial uses of the excess casinghead
gas being flared, engineering and design studies were undertaken and equip-
ment and construction contracts were entered into.
3. AI I of the foregoing was accomplished with due di ligence, but was
delayed owing to necessary engineering and design time, seasonal weather
conditions, and construction and delivery time of specially-designed equipment.
CONCLUSIONS:
I. Operators of the referenced pools and affected parties have made a bona
fide effort to comply with Conservation Order No. 104, but compliance wi I I
be delayed by conditions beyond their control.
2. Compliance with Conservation Order No. 104 can be expected by October
15, 1972.
3. The dates in Rule Nos. I and 2 of Conservation Order No. 104 should
be changed to the earliest practicable date which is reasonable, but not
beyond such date.
)
)
Conservation Order No. l04-A
Page 2
June 8, 1972
NOW, THEREFORE, IT IS ORDERED THAT:
I. Rule No. I of Conservation Order No. 104 Is amended to read as fa I lows:
"Casinghead gas in excess of the maximum amount that can be beneficially
utilized may be flared unti 17:00 A. M., ADST, October 15, 1972.11
2. Rule No.2 of Conservation Order No. 104 Is amended to read as fol lows:
!rEffective at 7:00 A. M., ADST, October 15,1972, the flaring or venting
of casinghead gas from the McArthur River Field Is prohibited, except for
the amount necessary for adequate safety flares and except in emergencies."
3. The Oi 1 and Gas Conservation Committee, by administrative order or
orders, may extend the date provided for in Rule Nos. I and 2 of this order.
No such order or orders may extend the date beyond 7:00 A. M., ADST, November I,
1972, except pursuant to Title I I, Alaska AdminIstrative Code, Section 2012.
DONE at Anchorage, Alaska, and dated June 8, 1972.
AI :J?:-Jt(/~j. .
~~R. Marshal I, Jr., Executive Secretary
Alaska Oi I and Gas Conservation Committee
Concurrence:
/~~¡{~-
~~ Burrel I, Chairman
Alaska 01 I and Gas Conservation Committee
tP,~Á.;AJ.~.
O. K. G I I b reth, Jr., ~,1em~ .
Alaska Oi I and Gas Conservation Committee
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/:~ASf\A 0 I L AND GAS CONSEF~V AT I ON lA)r,¡¡\~ I TTt"::E
Octobe r' 10, 1972
Re: Administrative Decision No. I04-A. I
Mc Arthur River Field
Mid die Ke n a i ¡ I G \1 0 i I Poo I
Hem lock 0 i I Poo I
West Foreland Oi I Pool
Mr. Wade S. McAlister
Union Oi I Company of California
909 W. 9th Avenue
Anchorage, Alaska 99501
Dear [\1r. McA lister:
Pursuant to Order ~Jo. 3 of Conservation Order ~~o. 104-A, the Oi I and Gas
Conservation Committee hereby further amends Rule No.1 and Rule No.2
of Conservation Order No. 104 to read as fol lows:
F<L1 I f) No. I "Cas i nghead gas in excess of the môx i mum amount that can
be beneficially uti Ii zed may be flared no later than
7 : 00 1\. H., ^ S T, ~J 0 v e m b e r I, I 9 72 . n
F<ule I'Jo. 2 "Effective no later than 7:00 A. H., AST, November I,
1972, the flaring or venting of casing head qas from
the Mc Arthur River Field is prohibited, except for
the amount necessary for adequate safety flares and
except in emergenci es. II
Unforseen manufacturing and shipping difficulties affecting fifteen
valves and valve gear operating mechanisms have resulted in an unavoid-
able delay in the line becoming operational
'-~({!L~J:-_- ... ._
Thomas R. ~1arsh a I I, Jr. Execut i ve Secretary
Alaska Oi I and Gas Conservation Committee
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Homer L. Bur~airman
Alaska Oi I and Gas Conservation
Comm i t tee
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O. K. G I I D retf-1, Jr., r\1emb~~-
Alaska Oi I and Gas Conservation Committee
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Union Oil and G~'~ rivision: Western Region
Union Oil Company of California .
909W. 9th Avenue, Anchorage, Alaska 99501
Telephone: (907) 279-7681 '/""'" " ,-' ;.,:.;,.-t)"'''
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State of Alaska . I DRA-¡:-Y
Oil & Gas Conservation Committe~· . SEC I h
CONFER:
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OCT 6 - 1972
O_ctober 6, 1972
DIVISION OF Oil AND GA'J
ANCHO~~G;-;
3001 Porcupine Drive
Anchorage, Alaska 99504
Re: CONSERVATION ORDERS
103 A and 104 A
Application of Extens ion
Gentlemen:
Reference is made to Conservation Orders affecting the flaring of cas inghead
gas in Cook Inlet, State of Alaska in requiring such flaring ceased by October
IS, 1972. Operators and affected parties have made a bona fide: attempt to
comply with the above mentioned Conservation Orders. Pipelines have been
constructed for the delivery of casinghead gas to onshore facilities and this
pipeline and related facilities and equipment are near completion.
Several major components for the 10" and 16" gas pipelines and facilities from
East Foreland to the Nikiski Area were up to six weeks late arriving in Alaska due
to IIfanufact~!!ng and shi2.2!ng d!~~icul_~~es. Fifteen valves critical to the final in-
stallation of the two pipeline systems were approximately three months late-
arriving in late September.
The late shipment caused several days delay in final pres sure testing and clean-
ing of these pipelines. The gear operators I shipped separatèly and needed in
order to open and close these valves I êirrived in late September and were discovered
to be the wrong size. The manufacturer was immediately notified and instructed to
expedite delivery on two correct size operators and air freight them to Alaska. In
addition, all available sources of these operators have been investigated.
At the present time I a date of October 9 or 10 is the earliest poss ible shipment to
Ala ska (from St. Louis, Mo.). Efforts are continuing in an attempt to improve de-
livery. Several days of purging the pipelines with natural ga~ will be required in
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By:
MARATHON OIL COMPANY
UNION OIL COMpANY OF CALIFORNIA
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Very truly yours,
Application is hereby made for an extens ion of the implementation of the no flare
order previously ordered for October 15, 1972, to be extended to November I, 1972.
It is the intention of the operators and the affected parties to comply with the above
referred to Conservation Orders as soon as equipment now lacking has been installed
and construction completed on said pipeline. In the event the line becomes opera-
tional before the requested extension date of November I" 1972, the line will be put
into operation at the earliest pos sible date. Should your committee require any
additional information or evidence to process this application for extent ion, we will
make such information available on notice. Your Committee will be notified when
said pipelines go into operation.
Due to circumstances beyond the control of the parties constructing said pipelines,
certain items of vital, indispensable equipment are not presently available and is
contemplated that this lack of availability of required equipment will delay opera-
tion of said pipeline beyond the date of October 15, 1972. Additional documenta-
tion of this fact is ava ilable if required.
order to reduce water content of the gas to market specifications, thus meeting
the October 15 "no flare" deadline will not be possible.
October 6 I 1972
State of Alaska -2-
Oil & Gas Conservation Committee
Application of Extens ion, Conservation Orders
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TESTIMONY TO EXTEND THE DEADLINE OF THE NO FLARE PROVISION CON-
TAINED IN CONSERVATION ORDER NOS. 102, 103, 104, AND 105 TO BE
PRESENTED.BEFORE TI·IE ALASKA STATE OIL AND GAS CONSERVATION COM-
MITTEE ON MAY 11, 1972
TESTIMONY TO BE PRESENTED BY C. L. ROBERTS
My name is Claude Roberts and I am the Anchorage Division
Petroleum Engineer for Marathon Oil Company. In addition, I am
co....chairman of the Mechanical Coordinating Subcommittee of a
Marathon-Union joint task force established to design and install
a Cook Inlet gas gathering system. It is in this latter capacity
that I testify today. My testimony will illustrate the tremendous
effort required to study, plan, design, and install the facilities
necessary to deliver gas produced on the w~st side of Cook Inlet
to the market area on the east side.
My first exhibit illustrates this gas gathering system and its
orientation to the casinghead gas production from the McArthur River
and Trading Bay Fields. The exhibit further shows the trmarket
area" at Nikiski and the location of the large dry gas reservoirs
)
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in the Cook Inlet Basin.
The gas gathering system consists of the
Liquid Extraction Unit at West Foreland, the large compressor
facility, a 16" pipeline to Granite Point, dual 10" submarine lines
to East Foreland, and finally a 16" pipeline into the Nikiski area.
The status of each of these phases will be discussed thoroughly.
Orders were issued for the various oil fields in Cook Inlet
by the Alaska Oil and Gas Conservation Committee effective July 1,
1971. The Conservation Committee ordered:
(1) casipghead gas in
excess of the maximum amount that can be beneficially utilized
may be flared until 7 AM, ADST, July 1, 1972; (2) effective at
7 AM, ADST, July 1, 1972, the flaring of any casinghead gas from
the McArthur River Field (and all other Cook Inlet fields) is
prohibited except for the amount necessary for adequate safety
flares and except in emergencies; and (3) the commencement, nature,
and termination of all emergencies requiring flaring of casinghead
gas in' excess of the amount required for safety flares shall be
reported to the Committee within 96 hours after occurrence.
We had previously studied various plans to further beneficially
utilize the exces~ casinghead gas in connection with. several hearings
\
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extending from 1968 through May, 1971. After issuance of these
orders, Marathon, and 11m sure other companies as well, immediately
reviewed these plans and initiated studies and investigations
necessary to evaluate all available alternatives to comply with
the no flare order in the relatively short period of time allowed
for compliance.
Market potential and financial arrangements, both of which
can be handled only on a separate company-by-companY,basis, were
necessary prerequisites. Conversely, the physical and mechanical
aspects dictated a joint effort for consideration of a gas gathering
system. Therefore, on July 12, 1971, top-level management of
Marathon and Union met in Los Angeles to consider the problem. The
result of this meeting was the establishment of a joint ~1arathon-
Union task force to evaluate all problems and alternatives connected
with such a project. Plans for formal organization with appro-
priate assignments were immediately initiated.
~1arathon and Union once again reviewed the various alternatives
for disposition of the relatively small casinghead gas reserve
)
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incl~ding: (1) storage of the gas by injec~ing into known orishore
structures adjacent to the Trading Bay Production Facility; (2) return
of the casinghead gas to the reservoirs from which it was produced;
(3) storage of the gas in the Grayling gas sands of the McArthur
River Field; and (4) delivery of the gas to the market area on the
east side of Cook Inlet, thus displacing gas already supplying
these markets. It was again concluded that delivery of the gas to
markets on the east side offered the only acceptable disposition
of the gas and this was practical only if the gas gathering system
could be utilized for future transportation of a substantial gas
reserve. Gentlemen, the only reason we were able to consider
building a pipeline system to the east ·side was because of this dry
gas reserve in the HcArthur River Field. Although the review of
the various alternatives of disposition were concluded quickly,
several months of planning and design were necessary to identify
and evaluate the many problems of building a pipeline system
across Cook Inlet to the east side.
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Recognizing the need for current and accurate gas production
data, material balances for each of the three Trading Bay Unit
platforms, the Monopod Platform, the Trading Bay Production Facil-
ity, and the Liquid Extraction Unit were made. A review of the
gas production forecast for Trading Bay Unit and Trading Bay Field
was commenced in order to evaluate platform compression require-
ments. All platform and onshore facility schematic drawings,
tracing the path of the crude and gas streams were updated. Plans
were made for acquiring analyses of the various crude and gas
streams in order to determine the amount of processing required to
make the gas deliverable.
On July 21, 1971, we contacted Earl & Wright, Engineering
consultants, to discuss methods of determining the best possible
pipeline routes across the Inlet.
On July 22, F. 11. Lindsey & Associates.were asked to furnish
a proposal to perform sub-surface reconnaissance work in Cook
Inlet. The purpose of this \vork was to better define the submarine
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trench which existing bathymetric maps indicated ran north-south
immediately east of the McArthur River and Trading Bay Fields
platforms. It was not known whether or not the trench was contin-
uous.
At the same time, plans were being formulated to determine
the feasibility of expanding and/or modifying the Liquid Extraction
plant. The original plant was designed to process 32 million
cubic feet per day of casinghead gas and 5 million cubic feet per
day of crude flash vapors. Preliminary production forecasts indi-
cated the gas volume would exceed this amount requiring expansion
of these facilities. It was evident that some additional plant
processing would be required in order to make the gas deliverable
even though additional processing for liquid recovery was unecon-
ornical.
On July 27 and 28, our process engineers met with Fluor Cor-
poration in Houston to outline various plans for modification of
the plant. Fluor was requested to furnish a cost estimate for
making a feasibility study for enlarging the plant and for optimizing
)
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the amount of compressor horsepower that would be required to
deliver plant residue gas to a pipeline system. Also, on July 27,
we prepared a tabulation of anticipated compressor horsepower
requirements, assuming different pressures for gas disposition on
the east side. This information was mailed to various compressor
manufacturers and suppliers requesting their proposal for furnish-
ing the necessary horsepower on either a purchase or rental basis.
On August 2, the Marathon-Union Task Force began detailed
studies to solve the many problems involved in designing and con-
structing a pipeline from West Foreland across Cook Inlet to the
Nikiski area. In order to proceed as .rapidly as possible, the
overall project was broken into two major segments, the West Side
onshore facilities to be under the direction of Marathon Oil Com-
pany, and the marine and East Side facilities under the direction
of Union Oil Company.
During the period from July 27 through August 2, 1971, crude
and gas samples were obtained from the platforms in the Trading
Bay Unit and the Trading Bay Field as \olell as the Trading Bay Pro-
duction Facilities. In that the samples were necessarily shipped
)
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by truck to Core Laboratories in Dallas, Texas, for analysis, data
from these samples \olere not available for plant expansion design
until early September.
Marathon and Union proceeded with the general reconnaissance
survey by Lindsey & Associates of the trench area as shown in
Exhibit 2 in an effort to find the shortest route to the east side.
If a direct route was feasible, it was evident that much time,
material, and money could be saved. The results of the survey. showed
that in the trench area, immediately east of the ~1cArthur River
platforms, water depths were from 240 feet to 400 feet.
On August 6, we met with Earl & Wright to explore the feasi-
bility of a pipe lay truss (stinger) design necessary to operate
in water depths of 300 feet and greater in Cook Inlet. Also on
this date, we received some preliminary information from J. Ray
McDermott and Brown & Root, Inc., concerning deep water pipelining
in Cook Inlet.
On August 13, Union conferred with Dames & Moore, Earth Science
Consultants, outlining the conditions of the various possible routes
)
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of the marine line. We also received additional information from
Hood Corporation concerning problems of laying pipelines in Cook
Inlet.
Gentlemen, at this timet about mid-August, you can see that
we had only scratched the surface of obtaining the necessary data
to evaluate the various pipeline routes across Cook Inlet. Our
preliminary discussions with the various pipeline consultants and
contractors were for the purpose of updating ourselves on the "state
of the art" of laying pipelines in deep water to ascertain if any
of the newer techniques could be applied in Cook Inlet. Although
these discussions were encouraging in that perhaps a deep water
crossing could be made, more information was urgently needede This
additional information had to be obtained quickly, because if the
only feasible marine route was to the north opposite Granite Point,
a land line approximately 26 miles long had to be installed from
West Foreland during the coming winter. A pipeline across the
McArthur River flats route can only be installed during freeze-up.
Such a line would have to be designed, pipe and materials ordered,
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and contractor mobilized, all in advance of freeze-up, expected
as early as December 1. Only a little over two months remained
for all of this activity to take place. Although preliminary
studies were being made on the Liquid Extraction Unit and Compressor
Station, final compressor design criteria could not be established
until the route and the "market" were established.
On August 23, 24, and 26, Union and Marathon personnel met with
J. Ray McDermott and Brown & Root respectively to discuss possible
construction mêthods of a "deep water" marine pipeline. As a
result of those meetings, it was decided that it was not feasible
to lay pipe across Cook Inlet with conventional pipeline methods
in water deeper than 180 feet. We further felt that we could not
risk trying some of the new developments of deep water pipelining
in Cook Inlet, but would have to utilize the more conventional
methods in order to minimize risks of installation and operation.
We had previously made studies of the feasibility of using
existing onshore and offshore lines in the upper Cook Inlet. It
was decided that these lines could not be utilized and that it
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would be necessary to construct a west side pipeline from the
Trading Bay Production Facility at West Foreland to Granite Point
and a dual submarine line from Granite Point to East Foreland.
A detailed two-phase survey along the proposed northern marine
route, as illustrated on Exhibit 2, was commenced immediately by
Dames & Moore. The purpose of the study was to determine geologic
and oceanographic conditions along alternate routes which might
influence the location, design, and installation of the proposed
marine pipeline. To accomplish these objectives, geophysical
profiles, bottom samples, and current measurements were obtained
at several locations between Granite Point and East Foreland.
Specifically, the scope of work included:
(1) a review of pub-
lished and other available literature pertaining to the bottom
conditions and oceanographic framework of the area. These included
several previous studies conducted in Cook Inlet related to con-
struction of offshore platforms and pipelinesi (2) geophysical
profiling along selected traverses using a high-resolution boomer
system and sidescan sonar;
)
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(3) measurements of current speed and direction at various depths
at nine different stations during periods of flood and ebb tidé;
(4) sampling of surficial bottom soils at selected localities by
means of clam-shell bucket; (5) a determination of maximum current
velocities which might occur along the proposed route based on
oceanographic data collected during the survey; (6) an engineering
evaluation of soil conditions and current regime as related to
pipeline design and construction. Information from this marine
survey indicated a mobile bottom condition in the area between
Granite Point and the northern part of ~1iddle Ground Shoals. We
refer to this mobile bottom area as the "dune area" because of the
shifting nature of the gravel bed and sand occurring rapidly between
tides. In order to provide a sound foundation and therefore a
stable pipeline system, we needed to know the bottom conditions and
the extent of the dune areas.
All the above information would be gathered and furnished to
Earl & Wright, who had been given the contract to perform an engi-
neering study required to design the submarine gas pipeline.
)
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Dames & Moore performed the offshore pipeline route survey
between September 8 and September 26. Profiles of the bottom and
sub-bottom were obtained along four different corridors between
Granite Point and the East Foreland area. Additional profiles were
ohtained in the northern portion in order to further define the
dunedarea.
On September 2, 1971, immediately after the decision to lay
the pipeline north to Granite Point, Fluor Corporation was author-
ized to proceed with the proposed Liquid Extraction Unit feasibility
study to determine the optimum method of modification and estimated
cost. The Liquid Extraction Unit utilizes a turbo-expander to
develop the refrigeration necessary to recover the maximum amount
of butanes and heavier hydrocarbon liquids. This refrigeration
scheme leaves the residue gas at low pressure, approximately 70 PSIG.
Since the residue gas has to be delivered into a pipeline system
at relatively high pressure, the question arose as to whether or not
the turbo-expander provided the optimum method of obtaining the
required refrigeration. It was Fluor's assignment to evaluate
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alternative methods of obtaining the r~frigeration and thus optim-
ize the amount of horsepower required for compression. The modi-
fied plant would also have to operate at a higher pressure if it
was to handle the anticipated increased volume of gas. The pressure
level as well as the method of refrigeration greatly affecté the
amount and type of horsepower required.
By September 7, Marathon and Union had completed a pipeline
optimization study, only 12 days after the decision was made to
go north to Granite Point for a Cook Inlet crossing to East Fore-
land. The optimization study considered various sizes of onshore
and submarine lines to carry various volumes of gas at pressures
of 700 to 1200 PSIG. This study resulted in the decision to
install 16-inch onshore lines and dual 10-3/4 inch submarine lines.
)
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On September 13, Marathon began preparing the specifications
før the West Side line. It was necessary that these specifications
include instructions for construction of a safe system, protection
of the environment, and to ensure a satisfactory completion date.
On September 24, Marathon placed an order for 27 miles of 16
inch, .344 wall thickness, Grade 5LX-52 ERW line pipe for the
west side portion of the gas gathering system.
,
From September 30 through October 20, Dames & Moore and F. M.
Lindsey conducted a terrain survey and a soil investigation for
the proposed l6-inch west side pipeline. The purposes of this work
were to provide data for pipeline routing, design for weighting
and anchoring the pipe, and to provide plan and profile drawings
for construction. Specifically, the scope of work included:
(1) a review of the published literature pertaining to soil condi-
tions of the route corridor; (2) a photo-geologic appraisal of
the proposed and alternative pipeline .routes; (3) a shallow sub-
surface investigation including hand-augercd boring and drillings
and sampling with helicopter transportable rotary wash drill rig;
)
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(4) laboratory testing of soil samples; and (5) analysis of back-
fill and buoyance problems, frost penetration, studies of anchor
designs, and a general review of construction problems.
Following analyses of these data, s~ecifications for the
construction of the line were mailed to prospective bidders on
October 26, 1971.
A major consideration was the'anchoringsystem necessary to over-
come the negative buoyancy of a large diameter pipeline carrying
natural gas through terrain such as the mud flats of the McArthur
River. Tl1ree types of anchors were utilized:
(1) screw-in auger type
were used where the terrain was not too rocky or swampy. These were
spaced approximately 80 feet apart; (2) concrete sadIe weights weigh-
ing 4,000 pounds each and spaced about 25 feet apart were used where
the auger anchors could not be used; and (3) concrete bolt-on weights
weighing 2,300 pounds each were installed at l3-foot intervals at
water crossings. All together, about 2,500 of these three types of
anchors ~lere used in the 26.2 miles of line. These had to be designed,
manufactured, and delivered before freeze-up. The last barge load
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of concrete weights was offloaded at West Foreland on November 24.
The Land and Legal Subcommittee was preparing the many appli-
cations necessary to obtain a right-of-way. On bctober 5, 1971,
application was filed with the U. S. Department of Interior, Bureau
of Indian Affairs, to construct a pipeline across the Moquawkie
Indian Reservation. On October 7, application was made to the
Department of Army, Alaska District Corps of Engineers, for a permit
to construct a pipeline across several rivers along the route
from West Foreland to Granite Point. On November 1, application
for a right-of-way construction permit was delivered to the State
of Alaska, Division of Lands. Data from the Dames & Moore terrain
study and the Lindsey survey were a necessary part of these appli-
cations, thus precluding the filing of these applications any
earlier.
Our process engineers received Fluor's feasibility study for
the Liquid Extraction Unit modifications on October 4.
Critical to our design was the final disposition of the gas on
the east side of the Inlet. Two markets with sufficient capacity
)
-18-
)
to handle the total expected volumes existed. The Collier Chemical
complex could utilize the gas at approximately 650 PSIG, but the
gas would have to be further processed. Swanson River Field pres-
sure maintenance project could take the gas without further proces-
sing, but the pressure would need to be maintained at lOSOPSIG.
In July, 1971, Union initiated feasibility studies for an east
side plant to process the gas for removal of the propane and heavier
hydrocarbon components to provide suitable gas feed stock to the
Collier Chemical Plant. Five engineering and construction companies
were consulted and proposals for processing, storage, and other
facilities required to produce and make disposition of liquefied
hydrocarbons were developed. Simultaneously, surveys and studies
were undertaken to develop markets for the products that would be
produced.
Engineering consultants and Union Oil Company had to determine
not only a suitable processing design, but availability of equip-
ment, materials, construction manpower, suitable sites for facili-
ties, and numerous other factors critical to design and timing. In
)
)
-19-
addition to locating product consumers, marketing research also
required development of many other factors such as production
forecasts, type and quantity of products, type and size of storage
tanks, transportation and loading facilities, etc.
By November 23" 1971, it was determined that a plant on the
east side was not feasible and plans for the plant were abandoned.
This left Swanson River Field as the only market capable of taking
all the gas expected from the Trading Bay Production Facility Com-
pressor Station.
In the meantime, Marathon was proceeding with preparation of
compressor inquiries to obtain quotations for equipment to meet
pressure conditions of both possible gas markets'. On October 27,
specifications were mailed to three manufacturers of compressor
equipment.
I would like to digress just for a moment to better explain
the need for the considerable front-end engineering required to
design the large compressor facility.
)
-20-
')
Normal compressor design parameters include gas rate predictions,
temperatures, suction(. and discharge pressures. This installation
was further complicated by rapidly declining gas rates, .variable
gas compositions, and variable operating conditions. It will be
necessary for this compressor facility to perform under a wide range
of operating conditions including the LEX running and not running,
one submarine line inoperative, one machine down for maintenance,
etc.
These are the types of variables that must be analyzed prior
to finalizing a design, purchase, and installation of a 7200 horse-
power compressor station. It was these factors that lead us, last
year at the May hearing, to advise that a minimum of 18 months
would be required to complete such a project. To have been prepared
to go to bid on a compressor station of this size and complexity
within a period of four months was indeed an accomplishment.
By November 1, the west side pipe and materials were on order,
bids were out to pipeline contractors and compressor manufacturers.
To be safc, only four weeks were left to mobilize on the west side
)
-21-
)
of the Inlet and to receive and unload the 27 miles of 16-inch
pipe.
On November 3, all 16-inch pipe and cqating materials left
Seattle by barge. On November 9, bids \'lere received from three
contractors for the construction of the 16~inch west side pipeline.
On November 12, the construction contract \'las awarded to Locher
Company. On November 13, the barge ca~rying the 16-inch pipe
arrived at West Foreland and was beached for unloading operations.
On November 22, we completed the offloading and storing of the pipe
at a storage site adjacent to the Trading Bay Production Facility.
On November 30, a plant engineering subcommit'tee representing the
plant owners reviewed the Liquid Extraction Unit modifications and
compressor requirements. A recommendation to purchase three Cooper-
Bessemer 2400 horsepower compressor units was made and purchase
orders were issued on December 2, 1971.
On December 1, the State of Alaska, Division of Lands, "granted
a permit for the construction of right-of-way across "state lands
from Nest Foreland to Grani te Point. On Decernber 6, a crew from
')
')
-22-
F. M. Lindsey & Associates began the construction survey for the
. pipeline route. On December 13, the U. S. Department of Interior,
Bureau of Indian Affairs, granted an easemènt for the construction
of the pipeline right-of-way across the Moquawkie Indian Reserva-
tion. On that date, Locher completed the barging of their equip-
ment to West Foreland and began the constructiQn of their pipeline
camp. Most of the construction material had been transported to
the staging area before the ice conditions in Cook Inlet shut down
barge traffic. However, 650 sets of scre\'¡-in anchors and all the
pipeline valves and fittings had to be transported to the job site
by air. On December 22, the Departme~t of the Army, Corps of Engi-
neers, issued a permi t for crossing the four major rivers betvleen
West Foreland and Granite Point. We were mobilized and all the
permits necessary for beginning construction of the West Side pipe-
line had been received.
Locher Company commenced right-of-way clearing operations on
December 18, but unfavorable weather conditions caused consi-
derable problems resulting in some delay of the construction
)
)
-23-
schedule. However, through a diligent effort, the contractor com-
pleted the construction effort on Harch 22 following a successful
hydrostatic test of the pipeline. All that remained was the envi-
ronmental restoration of the right-of-way. Fertilizing and reseed-
ing operations along various areas of the right-of-way were
completed on April 4.
While Marathon was occupied in mobilizing materials and the
contractor on the west side, Union Oil Company was busy analyzing
the mass of data acquired in the detailed marine survey.
Earl & ~'¡right were commissioned on September 5 to develop
design criteria for gas pipelines crossing Cook Inlet from Granite
Point to East Foreland. The Dames & Moore study ,furnished informa-
tion of the water current velocities and directions and the bottom
soil conditions along the pipeline route. Earl & Wright used this
information to study the design requirements f0r twin lO-inch and
twin 12-inch lines, taking into account static stability, dynamic
stability, pipe metallurgy, corrosion protection, stabilization
methods, installation problems and procedures, and relative costs.
)
-24-
)
As indicated on Exhibit 2, the route would proceed in a direc-
tion perpendicular to the shore line for a distance of 8,800 feet
from Granite Point to a location northeast of the northernmost Amoco
platform in the Granite Point Field. It then proceeds for a dis-
tance of approximately 30,000 feet to a point northeast of Middle
Ground Shoals and thence for a distance of 71,700 feet to a point
on the East Foreland, in the visinity of Nikishka #2. On both sides
of the Middle Ground Shoals area, the water depths are about 150
feet at mean low, low water, while at the Shoal crossing, the water
depth is only about 70 feet. Bottom conditions along the route
vary from gravel, cobbles, and boulders in the vicinity of Granite
Point to large stretches of sand and gravel between t1iddle Ground
Shoals and the East Foreland.
Conventional pipe laying methods for deep water and strong
currents such as experienced in the Cook Inlet call for a lay truss
supported both at the lay barge and on the bottom, as illustrated
on Exhibit 3. The pipe lay truss acts as a cradle f9r the pipeli~es
as they are being laid. Without support from both the surface and
)
-25-
)
the bottom, the lay truss would simply be swept away in the strong
currents of Cook Inlet. The lay truss must be of sufficient length
to provide for a safe pipe laying configuration consisting of
overbend and sag-bend which stresses the pipe to no more than 80
percent of minimum yield. The total length of the lay truss designed
for this pipe laying operation is about 340 feet long and weighs
approximately 300 tons.
An underwater pipeline is much different from ~ pipeline on
land, since it must have sufficient weight for static stability,
must avoid resonance caused by long unsupported spans, and must
have sufficient strength to avoid buckling or overstressing during
the pipe laying operation. A pipeline across Cook Inlet is differ-
ent from the usual underwater line because of the bottom soil con- .
ditions and current velocities which are very high and persist at
bottom depth.
When bottom irregularities 'or scouring result in excessive span
lengths and flutter of the unsupported lines, or when high current
velocities result in horizontal movement of the lines, it is necessary.
-26-
)
to provide additional support and anchoring.
A line on the bottom of Cook Inlet is subjected to both a lift
force and a drag force which vary with the. square of the current
velocity. The lift force is counteracted by the weight of the
line, its contents, and any weight coating provided, while the
drag force is resisted by friction bet\'leen the·. pipe and the bottom
soils.
Protection against corrosion is another important design para-
meter and cathodic protection in Cook Inlet presents some unusual
problems. Corrosiveness is about eight times as high in Cook
Inlet as it is for normal sea water. The swift currents, high dis-
solved oxygen, and abrasion by suspended solids, accelerate corro-
sion rates.
Two basic cathodic protection systems were analyzed. One-
impressed current, and two - sacrificial anodes (zinc bracelets).
Armed with the mass of data supp~ied by Dames & Moore and the
study by Earl & Wright, Union and Marathon personnel held engi-
neering conferences with Brown & Root, Inc., and J. Ray McDermott,
\,
J
)
-27-
Inc., in Houston and New Orleans during the week of November 30 ~
December 5, 1971. These meetings resulted in the finalization of
the marine pipeline system.
The line consists of dual 10-3/4 inch OD, .594 wall thickness,
grade SLX52 seamless line pipe. Concrete weight coating will be
applied, using one, two, and three 1/2-inch thicknesses of '190
pound per cubic foot concrete. The pipe lay truss was designed to
withstand two times the force exerted on it by the weight of the
pipelines when filled with sea water, and the force exerted by the
sea water flowing perpendicular to the lay truss at a velocity of
7.1 knots. It was further stipulated that the truss would not be
permanently deformed by bending in a storm current of 8.4 knots.
The truss was designed and is being built so that the pipe would
not be stressed to more than 80 percent of the minimum yield from
the time it leaves the lay barge until it is landed on the sea
floor.
On December 2, Union Oil Company issued a purchase order for
246,000 feet of 10-3/4 inch seamless line pipe. The pipe will be
')
'-28-
)
coated with a cold-tar corrosion coat and with a sufficient thick-
ness of the 190 pourid per cubic foot steel reinforced concrete
weight coating necessary to provide bottom stability. Zinc anode
bracelets will be installed every 340 feet for corrosion protection.
On December 23, a preliminary draft of the general project'
construction specifications was mailed to McDermott and Brown &
Root. The final drafts were ma!led on January 17, 1972, and the
bid due date was established as January 31. Concurrently to the
preparation of the specifications for install~ng the submarine
lines, bid specifications were prepared for the continuous posi-
tioning service necessary to guide the lay barge on its proper
course, the radiographic inspection of the welds, helicopter service,
dock and stevedore service. All business arrangements had been
completed for the installation of the corrosion ~lrap, cathodic
protection bracelets, and weight coating of the 10-3/4" pipe prior
to its transportation to Cook Inlet. Negotiations were commenced
with the various tug and barge companies concerning the transporta-
tion of the pipe to Cook Inlet.
)
-29-
Referring back to Exhibit 1, you will note that the proposed
routing of the East Side pipeline from the beach approach to the
Swanson River Field line tie-in will follow a general southerly
direction to the Swanson River line junction and beyond to the
Collier plant.
To comply with the Natural Gas Pipeline Safety Act requirements,
this pipeline will be designed for Class III construction utilizing
16" OD, .344 \'lall thickness, Grade 5LX52, ERlv, steel pipe. Approxi-
mately 28,500 feet of pipe will be required between the shore
approach and the Collier plant tie-in. It is planned to ship
this 16" pipe from Vancouver, Washington, along with the 10-3/4"
pipe for the dual submarine line.
union Oil and Marathon decided to install a liquid hydrocarbon
recovery system to collect any liquid hydrocarbons that may accu-
mulate in the line. It is possible that at the operating condi-
tions of the pipeline system, a retrograde condensation problem
may exist. Also, in the event of an LEX plant upset, it is possible
that liquid hydrocarbons can enter the pipeline system. For these
)
-30-
reasons, it was felt mandatory that an extensive liquid recovery
system be designed.
While the engineers were designing the submarine line and the
East Side facility, our lawyers and land men were preparing the
necessary applications to secure all the required permits for the
construction of these facilities. Applications for permits to
construct the marine line were mailed out early in January and
negotiations for the right-of-way acquisition at East Foreland
commenced shortly thereafter.
Please refer to Exhibit 4, illustrating the engineering and
construction schedule for the dual submarine portion of the project.
The vertical axis is the percent of project days from July 1, 1971,
to completion. The horizontal axis shows the actual time frame in
months. Note that 40 percent of project time was required to obtain
the final design criteria.
On January 31, bid proposals for installing the dual submarine
lines were received from Brown & Root and J. Ray HcDermott. Because
of the substantial cost involved with this portion of the project,
,)
-31....
)
an extensive evaluation of each of the contractor's bids was re-
quired. By mid-February, J. Ray McDermott Co. was selected as the
contractor to install the submarine pipeline and mobilization of
the pipelaying spread commenced immediately.
The logistics required to mobilize a complete pipelaying
spread with the necessary auxiliary support systems and personnel
are tremendous. The lay barge had to go into drydock for extensive
refitting and revamping in order to perform work in Cook Inlet.
Heavier anchors and wires had to be installed. A large gimbel-
type hitch, required to hold the pipelaying truss, had to be
fabricated and connected to the lay barge. Tugs, pipe barges,
crew living quarters, had to be negotiated for and mobilized.
This equipment is only found on the Gulf Coast and along the West
Coast. It is no small task to solve the logistics of mobilizing
such an operation. You will note that it was mid-December before
the final design of the marine pipeline system was completed; now,
90 days later, men, equipment, and materials began their journey
to Cook Inlet.
)
-32-
)
McDermott's lay barge departed Harvey, Louisi.ana, on April 8.
It will require approximately 60 days for its trip to Cook Inlet
with its scheduled arrival sometime during the first week of June.
It will require about seven days to unload the barge at Kenai and
to connect the lay truss'which is being fabricated in Anchorage
(fabrication of the truss commenced on April 15). We expec~ to
have the lay barge on the right-of-way at Granite Point by June 14.
..
About 50 days will be required to lay pipe across Cock Inlet, and
we plan to hydrostatically test the system by ~id-August, 1972.
A schedule for the construction of the East Side pipeline
and liquid handling facility has been prepared, and is illustrated
as Exhibit 5. Final engineering design was completed and spccifi-
cations for construction went out to bid on March 28. Ilood Con-
struction Company of Whittier, Califorriia, was awarded the bid on
April 24. The installation of the line should commence shortly
after the pipe's arrival at Nikiski between Hay 15 and June 1. It
should take approximately 45 days to complete construction of the
pipelines.
)
)
-33-
Bids on the equipment for the liquid handling facilities were
received on May 1; equipment was ordered May 4; and delivery
is estimated around August 1. Completion date for the east side
liquid handling facility is scheduled for October 1, with start-
up estimated by October 15.
Exhibit 6 shows the schedule for the compressor station and
modifications to the Liquid Extraction plant at West Foreland. As
mentioned earlier, the three large compressors were placed on order
in early December, 1971. This provided for the necessary shop
space while all the design parameters were being finalized. Marathon
personnel met with CB/Southern on January 26 to finalize these
parameters.
I will describe some of the equipment to indicate the order
of magnitude of facilities comprising the 7200 horsepower compressor
plant. There will be three 2400 horsepower units. Each unit will
consist of an engine skid, two piping skids, one gas cooler skid,
one lube oil module skid, and one utility cooler skid. The total
station will therefore be comprised of 18 large skids. The esti-
mated weight of this equipment is over 1,200,000 pounds and will
')
-34-
')
require 21 rail cars for transportation from Hous~on to Anchorage.
This entire compressor station will be housed in a building 46 feet
wide by 150 feet long with an eave height of 27 feet.
The design functions of the expanded compressor station are
to compress approximately 48 million cubic feet of gas per day
received from the McArthur River and Trading Bay Fields platforms
from 150 PSIG to about 425 PSIG. Approximately 6-1/2 million cubic
feet per àay of crude flash vapors will be compressed from 10 PSIG
to 525 PSIG. This portion of the compressor station is referred to
as the boosting service 'and delivers gas to the Liquid Extraction
Unit. T11e remainder of the horsepower will be used for transporta-
tion and will compress approximately 45 million cubic feet per
day of LEX residue gas from 150 PSIG up to 1200 PSIG, which is the '
pressure necessary to enter the pipeline facility.
Fluor Corporation was selected as contractor for the installa-
tion of the compressor units, designed and fabricated by CB/Southern.
As prime contractor, Fluor will also make the modifications to the
Liquid Extraction Unit. On February 23 and 24, Fluor carne to
)
)
-35-
Anchorage to discuss the final process and mèchanical flow of the
plant modifications and the compressor installation. A construc-
tion agreement was executed on March 22. Fluor's construction
superintendent moved to Anchorage on April 10 and commenced mobili-
zation of the subcontractors necessary to excavate and prepare
foundations for the large compressor skids and to do the installa-
tion work. These contractors are mobilized and are waiting for
the ice to leave the Inlet so that they can barge their equipment
to the construction site.
One of the large compressor units should arrive in Anchorage
the first of June. The second and third units will arrive in
Anchorage around June 21. Tl1ese units will be barged from Anchorage
to the Trading Bay Production Facility, unloaded, skidded into
position, and set on their foundations. The final engine should
be in place by July 15.
Once the units are in place, a critical phase of the construc-
tion effort has passed. However, considerable work remains to be
done prior to completion estimated by October I, 1972. In order
).
-36-
to allow for contingencies and provide sufficient time to de-bug
the system, we anticipate final start-up about November 1. This
is two months ahead of the time frame which we testified to in a
previous hearing.
I would like to assure you that every effort has been made
and will continue to be made to place this pipeline system, com-
pressor station, and plant facilities into operation at the very
earliest date. Hopefully, I have been able to illustrate the
magnitude of the project and to emphasize the tremendous amount
of front-end designing and engineering required for such a massive
project. Since the most costly portion of this project still
remains to be completed, a final cost is not known at this time:
however, when this project has been completed, the cost as presently
estimated will be in excess of 25 million dollars. Finally, I hope
I have shown the good faith which Union Oil Company and Marathon
Oil Company put forth to comply ~lith the Committee's orders pro-
hibiting the flaring of casinghead gas. Although my presentation
)
-37-
has been quite lengthy, I have covered only the major points of
,the project; and I would now solicit any q~estions that you may
have.
Thank you.
CLR/jmk
#1
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\.,.:"".'.".'\.. !.;_...~.....'..A4ASKA CONSERVATION SOCIETY
(.. ,., (/ .'. '7
(\ KENAI ~E~prSULA CHAPTER
~<:, \. !' P. O. BOX 563
;..~~~;. ..-7 SOLDOTt-..A
r~;.)........:.),r~~'~-Y,~....,.<..~~. ALASKA 99669
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Division of Oil and Gas MAY 81lJ12
3001 Porcupine Drive CO,
Anchorage, Alaska DIVISION OF OIL I.ND G....:";
ANCHO't\!; ~
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CONFÊR, .
FILE, ""-
It) i."8~ 10 oS -A~ lð" . ~~/OG-.
RE: Request for delay on termination of Cook' Ihlet offshore flaring
This organization would oppose a delay in termination of offshore
flaring for the following reasons:
1. -Continued flaring provides obvious air pollution which can be
seen from Kenai almost any day as a low-lying cloud of blaèk (the
evening of 4/23/72, it looked yellow-greenish) smoke over the Inlet.
2. The flaring of the offshore casinghead gas is a waste of a
resource.
3. The additional wasting of the resource should not be permitted
to continue --- le~t it make the installation of another LNG plant
or other such type of gas reprocessing for trans-shipment less
economically feasible. Does not the fact that the proposed plant
under consideration by Pacific Electric Service Co. contradict the
earlier statements regarding lack of feasibility for the usage of
the gas from the offshore platforms?
4. Even if it may be essential to extend the deadline, this
,organization recommends that it be done on a month~to-month basis
~~~~t~~e review required for co~:ng ::::::i~ditional
JA S E. FISHER
Pr sident
P. S. The Pipe coating is not bei g accomplished in Alaska for the
project. Is the lack of the 60-80 jobs involved in the required
pipe coating considered by this Division in its~deliberations over the
delay in gas flaring termination deadline?
Oil, C't .' fl. J..e
lo~-A
EXHIBIT" A" (. b. J () t.J - A
SCHEMATIC GAS FLOW - DIAGRAM
COOK INLET GAS GATHERING SYSTEM
UNION OIL COMPANY OF CALIFORNIA
MAY 10 J 1912
PREPARED B. .Y. HOE!8..S·.ßÞMIER~~N.. -.AL..ASKA CORp'
. . - Al'iÇI·W.l.!A~fr, AI"A".(Í~
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51 A 1E OF ALASKA, )
THIRD JUDICIAL DISTRICT, ) ssP
.....bar.y..L..shak.e....... ..............
being first duly sworn on oath
she
deposes and says that...._..........
is the....~~g~.~..~ºf...~.~~..... Qf the
Anchorage News, a daily news.
paper. That said newspaper has
been approved as a legal news-
.paper by the Third Judicial Court,
Anchorage, Alaska, and it is now
and has been published in the
English language continually as
a daily newspaper in Anchorage,
Alaska, and it is now and during
all of said time was printed in an
office maintained at the aforesaid
place of publication of said news.
paper. That the annexed is a true
copy of ð ..~~gl?-J.........~9.~J.~~ .1930
liS it WllS published in regulðr
Issues (lInd not in supplemental
form) of said newspaper for. a
period of .....~~.~....... insertions,
commencing on the .14.... dðy
of ....April........... ,19 7.2 , and
ending on the.....).l~........ day of
of ~JJril.................. , 19...72.,
both dates inclusive, and that
such newspaper was regularly
distributed to its subscribers dur-
ing al/ of sa·id period. That the
full amount of the fee charged
for the foregoing publication is
the sum of S 12.50 which
amount has been paid in full at
the rate of 25¢ per I ine; Mini.
mum charge $7 .50. /~ IÍ /
l/;¡ / 1/ /
/. )/l,¿t/~· //..
/ /.,.:_x.. ....~...l~-}. ~~
Subscribed and sworn to before
r'
/ .'
me this .14... day of."pril........
19 'OJ" . .
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h,·'.··. ".:.:" '"" ....~ ~d
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1"'\......... ;-"..04 '''''''.
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n_; _ _"'_~",. .,_""-__.....-;...l',~-- tt"":'J!I!"!I'......*'o·""" ~- _. ~~
OF
PUBLIè""ÀTION
NOTICE OF PUBLIC HEARING
STATE OF ALASKA
DEPARTMENT OF NÞ.TURAL RESOURCES
Aluka Oil and Gu Conservation Committee
Conservation File Nos, 102, 103, 104 a!'lei
105
Re: The application of Union Oil Company
of California, Atlantic RichfielÒCom·
pany, Shell Oil Company, 1M Amoco
Production Company for orders amend-
ing Rule No. 20f Conserv.tion Order
Nos, 102, 103, 104 .nd 105 by delet-
ing the date "July 1, 1972" and lub-
stituting in its place the date "Novem-
ber 1, 1972."
Notice is hereby given fhat fhe refer-
enced companies have requested the Oil and
Gas Conservation Committee to issue orders
'which extend the period of time from
July 1, 1972 to November 1, 1972, during
which casinohead oas in addition to the
amount necessary for ufety can be flared
from th. oil pools identified in the refer-
enced conservation orders covering the fol-
lowing fialds: (iranite Point, Trading Say,
McArthur River, and Middle Ground Shoal.
Th. hearing will be h.ld at 9:00 a.m.,
,Mey 11, 1972. in the City Council Chlm-
! bers of the Z.J, Loussac library. 5th Ave-
! nue and F Street, Anchorage. Alaska, It
which time operators of the identifi.d oil
pools and affected Ind intertlttd perti....
will b. heard.
Thomas R. Marshall, Jr.
Executive Secretary
Alaska Oil and Gas Conservation
Committee
3001 POrcupine Drive
Anchorage, Alaska 99504
Publish: April 14. 1972
Leul Nltti'e No. 1930
J 0 ~ A
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, '1 .:..
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-""-'""..-~>! '~>;"~ .-M'.... -~ ~<._"~........""'.J""--.-:y~-"",.,.,..Þ!~,:."~~;~,~~,_;<__,_,,.JW~.;__~"~.,..-.~'''':'':'''''''~'(..'''~¡;~~~'t~':'7''':;'':\':':''~; . _.' ~~J~
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NOTICE OF PUBLIC HEARING
STATE OF ALASKA
DEPARTMENT OF NATURAL RESOURCES
Alaska Oi I and Gas Conservation Committee
Conservation Fi Ie Nos. 102, 103, 104 and 105
Re: The application of Union 01 I Company of Cal ifornia, Atlantic Richfield
Company, She I I Oi I Company, and Amoco Production Company for orders
amending Rule No.2 of Conservation Order Nos. 102, 103, 104 and 105
by deleting the date "July I, 1972" and substituting in its place the
date "Novembe r I, 1972".
Notice is hereby given that the referenced companies have requested
the Oi I and Gas Conservation Committee to Issue orders which extend the
period of time from July I, 1972 to November I, 1972, during which casinghead
gas in addition to the amount necessary for safety can be flared from the oi I
pools identified in the referenced conservation orders covering the fol lowing
fields: Granite Point, Trading Bay, McArthur River, and ~1iddle Ground Shoal.
The hearing wi I I be held at 9:00 a.m., May I I, 1972, in the City Counci I
Chambers of the Z. J. Loussac Library, 5th Avenue and F Street, Anchorage,
Alaska, at which time operators of the identified 01 I oools and affected and
interested parties wi I I be heard.
óL. If. #t(~.~
Thomas R. ~~arsha I I, Jr.
Executive Secretary
Alaska Oi I and Gas Conservàtion Committee
3001 Porcuoine Drive
Anchorage, Alaska 99504
Publish: April 14, 1972