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Home My WebLink AboutCO 091 ) ) Image Project Order File Cover 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. COO q I Order File Identifier Organizing (done) o Two-sided 11111111111111 11111 ~escan Needed 1II1I11II1111111111 REJCAN \Ø' Color Items: D Greyscale Items: DIGITAL DATA OVERSIZED (Scannable) D Maps: o Other Items Scannable by a Large Scanner D Diskettes, No. D Other, NolType: D Poor Quality Originals: OVERSIZED (Non-Scannable) D Other: o Logs of various kinds: Scanning Preparation BY: Helen Eia) \ x 30 = D Other:: Date: 0 ,f)...J(JS- 151 1''VvP , 1111111111111111111 Date: (P.:J,.J /)'J:' 151 'Y'VVP + = TOTAL PAGES 0: '-f (Count jJoas not1nclude cover sheet) .V\f' 9 Date: (g ", f) S- 151 ' ..~I 1111111111111111111 NOTES: BY: Helen(Ma~i~) Project Proofing BY: Helen ~ Production Scanning Stage 1 .... Page Count from Scanned File: q 6 (Count does include co-,r sheet) Page Count Matches Number in Scanning Preparation: ~ YE;S I NO Helen rr;:;) Date: ~ à-, OS- IS/'~ I BY: Stage 1 If NO in stage 1, page(s) discrepancies were found: YES NO BY: Helen Maria Date: 151 11I1111111111111111 Scanning is complete at this point unless rescanning is required. ReScanned 1111111111111111111 BY: Helen Maria Date: 151 Comments about this file: Quality Checked 1111111111111111111 12/1/2004 Orders File Cover Page.doc ) 1. May 1, 1970 2. May 19,1970 3. May 19,1970 4. May 21, 1970 5. July 6, 1970 6. September 8, 1970 7. January 22, 1971 8. May 4, 1973 9. May 18,1973 10. May 20, 1970 11. May 20, 1970 12. June 7, 1970 13. June 12,1973 14. October 31, 1973 ) Conservation Order 91 Notice of Hearing and affidavit of publication Oil and Gas Conservation Committee Exhibits Transcript News article letter to Atlantic Richfield Company re: transcript Errors Letter re: revised transcript Atlantic Richfield Company request for Administrative Approval 91.1 Atlantic Richfield Company request for Administrative Approval 91.3 Atlantic Richfield Company request for Administrative Approval 91.4 Atlantic Richfield Company request to continue flaring of casing gas at Prudhoe Bay Objection to flaring request from SMCissna conditioned fuel gas consumption rates Atlantic Richfield Company request for a two phase flow test 98B.l Diesel demand Conservation Order 91 J" ) \ 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 MOT I ON OF ATLANT I C RI CHF I ELD ) COMPANY for Order permitting continued ) flaring of casinghead gas produced as ) the result of crude oi I topping plant ) operations and THE MOTION OF THE OIL AND ) GAS CONSERVATION COMMITTEE to hear testi- ) mony on the effect of continued injection ) of unused crude oi I fractions into the ) p 00 I . ) Conservation Order No. 91 Prudhoe Bay Field Prudhoe Bay Sad Ie roch it Oi I Pool J una 15, 1970 IT APPEARING THAT: I. Atlantic Richfield Company requested permission to continue flaring casing- head gas produced from the Prudhoe Bay Sadlerochit Oi I Pool in the operation of a crude oi I topping plant. 2. The Alaska Oi I and Gas Conservation Committee moved to hear testimony on the effect of continued injection of unused fractions of the crude oi I into the Prudhoe Bay Sadlerochit Oi I Pool. 3. Administrative approval of casinghead gas flaring expires June 30, 1970. 4. Rule 8 of Conservation Order No. 83-B, for the Prudhoe Bay Sadlerochit Oi I Pool, states as follows: liThe venting or flaring of gas is prohibited except as may be authorized by the Committee in cases of emergency or operational necess i ty. 11 5. Not ice of pub I i c heari ng was pub I i shed in the Anchorage Da i I y News on May I, 1970. 6. A public hearing was held in the Ben Crawford Memorial Bui Iding, Anchorage, Alaska, on May 19, 1970. Testimony was presented and affected and interested parties were heard. AND IT FURTHER APPEARING THAT: I. Casinghead gas beneficially uti I ized, including that flared for safety, wi II average 1730 MCF per day and peak at 2450 MCF per day by August I, 1970. I~ e v 0 i< ~~,_".."...~_~L.,._:,~.?..: I A --.-............'-'....-'.......-.......-...,.....,.. ""'(' ') ) CONSERVATION OI~DER NO. 91 Page 2 June 15, 1970 2. Casinghead gas being flared, in addition to that flared for safety, wi I I average 2600 MCF per day by August I, 1970 and may be as little as 1750 MCF per day during periods of peak consumption if the topping plant input is 5,000 barre I s of crude oi I per day. 3. Additional casinghead gas wi I I be beneficially uti lized by approximately August I, 1970 as fuel for the gas conditioner plant and the base camp power generation system, and no additional beneficial uses of casinghead gas are planned in the immediate future. 4. Injection of casinghead gas is not planned at this time. 5. Laboratory tests of fluid samples and a reservoir simulator program indicate the unused fractions of crude oj I injected into the Prudhoe Bay Sadlerochit OJ I Pool mixes with the crude oi I in the pool and no fluid interfaces are present, as the fluids are miscible in the reservoir and no asphaltenes wi I I be precipi- tated. 6. The reservoir model simulator calculations indicate that injection of the unused fractions of crude oi I into the Prudhoe Bay Sadlerochit Oi 1 Pool wi II not reduce ultimate recovery of either the injected fractions or the vi rgin crude 0 i I in the poa I . 7. Use of casinghead gas for fuel, power generation, operation of the topping plant and maintenance of a safety flare is an operational necessity. 8. The crude 01 I topping plant should be operated at an input which ~i I I result in the beneficial use of essentially al I the casinghead gas, but the plant is inoperable below a certain input. NOW" THEr~EFORE I TIS ORDERED AS FOLLOWS: I. Atlantic Richfield Company is hereby granted permission to flare casinghead gas and to inject unused fractions of crude oi I into the Prudhoe Bay Sadlerochit Oi I Pool, subject to the following conditions: A. Effective Ju Iy I, 1970, the volume of crude oi I produced for topping plant use shal I not exceed 2750 barrels per day. B. The Committee may, by administrative order, increase or decrease the volume of crude oi I which may be produced for topping plant use if there is a deficiency in avai lable casinghead gas avai lable for beneficial use or an excessive amount flared. ¡ .. . . ) ) CONSERVATION ORDER NO. 91 Page 3 June 15, 1970 2. This order shall expire July I, 1971, except as it may be extended by the Committee. DONE at Anchorage, A!aska, and dated June i5, 1970. ((f'Roðisf! ~~ecretary Alaska Oi I and Gas Conservation Committee Concurrence: ¿/(f~ Homer L. Burrel I, Chairman Alaska Oi I and Gas Conservation Committee ca··II(;/' /!W""¿, t d ,i (->;" "~/ .,,",', "",.t"Z '1 ~1..t"t.. <. ,. 'I .; O. K. G (, b reth, Jr., Mr' Alaska Oi I and Gas Conservation Committee T :;)1.1 ~ !') j l'~ I ... ~...... Thomas R. ~4arshð It! J r.. Executive Secretary Very truly yourst Pursuant to HuJe 20f Conservat ion Order No... , I the refarènced order is extend(~d to 7: 00 AM ADST, ..f una 30,,1974.. An application to continue operation of thare·ferencad ph:mt was received on May 18,,1~)73. Dear Mr.. Wycoff: [\;1·r.. Roberi" E.. Wycof f l\tlantic ~~'chfield Company P. o. Box 360 Anchon~ge þ A I aska 9950 f He ~ Conservat ion Order No. 9 t Crude at I Topp log F~I ant.. l\t t ant ¡ c Ri ch fie ( d Compa·ny Operator.. 91/ A D H L,!'~. ~L\~"..~...~'3.._~~\I.\" t .,.X E..,._.,~_",.r_,e,r~~.o l~~"",~,\}~, g~~\1 '-!~_ May 2.3 t J 973 A.LASKA 0 t L AND GAS CONS·EG~.vAT ION CQi\4r,~ ITTE£:: " , ,. :;?·{liJS\:;~;!ä~~':';;~:~:;::/;;~;'i::~:;~;,;..::,)) . ".': 'r"':"\' ] ';":"""]':' .,.' ~ ·~'·m····~· 1\"fk···.. .' ~ ':"::,:.:.;.~ ^ .:' '. ".,\' A " ...., '.., ^ ......: " " ,:.:':':¿~',~., lJ . ".:1." Li ',', ":'.U .,,"'.: . ~,,:,?:i:·~::.>: . . ~ . .:.' . . , .:.,-: ., , ,DEPI\ltTrtJENT 4)F')~·A~IJ~AL':.:,RE~OU~l(;ES·' . .... ' ,~:·::·;~:·.';~'~;Jè;;){~;~¡}~:'~;~;:~~~~~;~;:>f~~:'f;;:}cJ/vFsloNdF' ô,{ Á:NO'GÂS ALASKA~O I LAND ·GAS'·CONSERVATION. COMM ITTEE'"~':'~·,,,;->.'·': ....."'., '. At I a nTj' c: R ichfle Id·.;Compán~i P.O.·: Box 360., .. ,:,::, ,,'""":-'.'. " . .. .....\. ,- -. , . Anchorage',.. A faska ·,.:'~9~501<" .^:, .'~, ,~"; ,.-u_~,·~ . , .:< . Dea~ ~f,~yc~tT;./i;,;:;:~t::·i.~:~·'î:;>~:·_· , ....~. ~ . . The:r-eferericedå'ppl'fcåticm'was" 'receiveØ May 4, 1973.' The 'Oi 1 and Gas Conservat i orì~mmi,+teE):,~ereby"approves the referenced p I ant performance test provided èrude·throughput wi 1 I not exceed 6000 80PO and the testing period be I imited, to.~,'4~:,::·~ours. .', ' ., , , " . '~" .. . ~,::':, ~:\..~~~~': ;::;;' . .or ," . '. " ~ '. I!!~: "~~!I,r " .:: . ~. ~:~':~~; ~::'."".." . . '~~. ".,,'" " , " ,,: "....,~. I';~~"' . .' '.", , , .', . .. ~ ".. ...~ . '. <"~,..:-.'...::,,., .." '. .:,' ;,;.. .:'.," " .... ~ " . . _. ..... ..' ve4 ......rYtruø.IY youÍl/~. S"::..~.i,,;i'.:,.,...ii...':'.::.:',', .. I (/~'.' \. /1('1,':;.. <.' ",. ..p Thomas R. Marshal.1 /,Jr.. .'. ExecutiveS~cretary' ..' . , .. ...........'.:1 ~ ·;\~l~~;,!II!j .., .. .. . . lwgust 11.1972 Re: Administrative Decision 91.2 fltr. 'Robert E. Wycoff North A lasta Of stri, ct Man,ager ,Atlantic RfchfieldCómpaAY Pus t Office Box 360 ' AnehoragetA 1 as ka 99501 Dear Mr..Wy coff: Conservation Order No.9] t as he:rebyamended, is extended through June 30,1973. Sincerely. '" ,/ / i Honer L. Burrell Chainnan Alaska Oil and Gas Conservation Committee HU3 :jm Attachnent o/~"'9/ 7.:( ~y .,.- '. . .. ' ¿_.. .,'- _ Å; -r<-.. - c;¿:> ?"c",y,/ ~.-;.' -"r "-' "'''':7..-;,?-::_c"" /.:>~,-?--~~CC:/- L_~·'-' , ......-;;. /""./¿·a.;:. ,'.-l?_q....e-..,.A_; ,~____.;Z- .~~t!'é.~ pi' /-:t:~ ß·':· ¿;;? - g ,I ," ....., _ ,,".___' 1:.... I -:7'.~~' ~..,....._..---?" }~--'&".~:;> " Jaau'l'127. 1971 ql, { Ie: Ami.tst'rat!_ Ðe«1a1_911.1 Ap,lteatl_ ito iaere·._ vol~ of cr. .0U ',md"" for tøppial. plat.. and to atea4 . Co_ene,i_ O~d.1' Ie.. 91, ,ru.dh..J.y Sadlerocàit Oil Pool. AtlaatlcU,ch!1eld Comp811,. Operator' Kr.. Iobert I. Wycoff Ioxth Alaska District Haaaae~ Atl..t1e lt1ehfiel4Compa, Poat 'Of'flce lox 360 ADdJorap,. "1...k. "'SOl near Mr. W,eoff: Iaaocol'4aÞ. with Order 1. I. of C...'nett_ O-rder 1..91. ad.bla- tZ'st,i_ apP;roYal ie· 1'r8B:ti.d to 1.,creue the vol_ of cl"tiØle 011 pndueed frea tbePr'ldh_ ..,. S*lI:.'roeb1t .1'001 fottopptaa plot use to a "....'.mof"tOOO '_uel. '8" ciar d,uriasthe"l"l.ocI Sufo.,ie" laic.. re4dl'Ul_fo.. it,. .ptpe;1Þ. coadDa,'laDtb1 the 'hAM lay 81'.. aDd 80 l_stunaftea=. the,. I.· heH:f1,ctaUy utilt.d., laelwltal iajectad iat,. the 1'_8".t.r..l11 ~he ...at _eue..iw ....;t of pa 1.flaÞ.~ the Co.tttae .Y revoke OX' 8MB. this order. C:Oftsen'ation Order Jio. 91, as hereby _de." t. exteaded throupJtme JO, 1972:... Very trulyyouw. tft.. ¡¿ /f4 ~!2., T'b_a I... Marshall. Jr. lxecatift SecntaQ' Alaska 011 ad Gas CøaMrvat10a eo-ittee ,..~ iß.I: ja #14 ariU,:R iç~ field Company . "r" Internal Correspondence } aJ~~,;~~ ~,._) ,I\. I IJ-J' l\ 0\/ ;. \ \\/,!,,(,¡Þ I, 1fJ&;. C0ffJ , v--- ~R c·f ~VI t-~\ -t.. O~ ~ I 0 j/Y1 Date: October 31, 1973 L.K. Williams To: FrOm: R. K. Doughty Diesel Demand (1974 - 1976) Subject: IC,O.G1/.A As you requested the following curves were prepared which represent our lates t es tirnation of diesel demand for the ' years 1974 through 1976. There are two cases considered. The first case includes ALPS demand for construction north of the Brooks Range, while the second includes ALPS demand for construction north of Galbreth Lake. These curves should be useful in determining the most profitable alternative for A.R.Co. in supplying future diesel requirements. Current facilities on the Slope cannot supply the demand case which includes ALPS north of Galbreth Lake. Addi tional storage capacity or expans ion of the carn wi 11 be required. Þ~b1 f/¿;5 ¿;n~~ /'. ¿;?' 7-- R.K. Doughty RKD/gld j IJ ,.0 ':> d cI 1// f ( Ir "I',! 1." oJ" <!..tï./u /'('8.d /:....- eye-b) f,~ -f nø 11 /C L. u v/It r -fi'¡y ð-)1 e~l/ ~ p~' r T IJ ß~ / / ¥t)' I .¡ è f t ~ ~ ¿"x I '> f,; f t2-r-lt-r;, /: ;,_'~~,r.:_ r (;1'¡.: 'Y 11- ,;;.. t; . 7.3 ;0..1 o -FÇ I ( ~ ç, ( .ßl- r') ûì rJ r) l') ~~' 'J) J.. ~ . ..:.. t·) D " ~. :.., :>-J: G~ ; £ ¡..: --: ." ~~ 71 >: :';! ~~.~ . ) 01 ES EL DEMAND ') o ¿ ....... -.J a:J (I) :E 50,--- -- ------,- ----- ------!---------n-~--F=+r--.---- f- =--,---,--;::-=- -=;l ! i I ~. I I I I ~-L-J II ,¡.'.' -...... "'."""... ·r··..,····r·· il r-L., C.::"}' d ..-e··__·I·· _.1... --.-...".... .r:..~....__. ·-·!..·---··-··...--..--·-·.·.·t .-: ! .. r ,.-..--.-.--....""-......-----. "'-""-1 'ìr-r I ¡ I;' I .; 4 5 f- -- ·-!-t-J=-=c~=¡-~ì-1-- {-.-~~-! ---~--- --H----I----I- ! I - :! Ii.' ~ ¡ : ALP$ NORTH I' ¡ 1- - - - .-- - ~ -- __m_ ;----- -- U_ i -; - ---- ··1-- _ -- -;- -- ---- . --- --f-r --- n I "-or-- - --I --1 ! I, (¡ I : Ii: GALBR:ETH LAKE I I 40 [---1-- .- - ---,----.--- 1--+ ---u-t . --- --- - 1- T-· r-----r ------- -11 ! I', Ii. . I! I ! . . I. ; ¡ '.'. ! .. ¡ I. ¡ I ¡ : ¡ :--:-: -;: m____-.I______ __{_+:____u r- . ---l -~--- -T .. ¡ ------+- - --T-- ---- h ! ;. ' . :. . I 1 i.. ¡'. I:: I I 35 1--....---. _.l_ .:.__.._..L..-:-____..:..__. --.-. .1__.. +. --. -.--- - . ,.-.--...----+-.-- ------·-·-··--l· +.--------1-:.- __1..._ .-----.-··-·-t-.""{ .' I . , ¡., . '.. '1, I .!: I ¡ I: ¡ . . J ¡ _______¡_:___i~__-.___ _-_I i--u- _ +--___! --- -~- ~- - ~____~ ___L________-'-j i I:· I !. l 'LI' . I I. I r! I I I I ! . I I·', r I ' 30 ! __u_ __'-n_____ ----- ¡ - T------~--n-;---- --=------ - ---- --- ___I ~._.-;-_."'- .... ..-'... ....-:----. ~'----"'~---"---'l--'-[ ..----- .-.- . --" --....-.~-_._.. --'-- --..-- .-. - .~...-- "'--.... ...-.! .--.....--..-.----:...-. ..... j i ~ r--! ; : ALPS NORTH 25 i-- ----- i_u_ _~______u_--'_____ _c--·--~--W-------l . ! . . : . BROOKS "RANGE ! 11~___mn - ------, -- - _ -- -1 u__ :- _____u_ -- i------- -- -- - -~ --~ ---- -j 20 ¡..-.-;----. .--.. _·n.·. ..-..:....,,-~ .-. ""."" .--.. '''_. ",.- _u f-- "._'" . "'-.....-. . "'.- .. .....+--... .:........"........--. -......" ,--...!".-".... --"- . -. ~ \, i ¡ I ! 1_ _ _ _ _ i . I l._...._,,_..__. ..-------'" .--. -- -..-....---. .. ._- .-."..""..- ...--.. ."--".........",,,.....,_.. -"'-..------. ""1 : . ¡ , -, í L i _ _ "--.__""...,, -"'_ __._ ,,_ .._..".._.... __ "'_..,,__.._ __.. I 15 ~._...--..-..."--,,... -. --..-....- -...........-..--..----...."" "....'..-.....-.-. .-.. '" .....-- -. .... !"....-.---...""..---.......... '" :..;...:....."... -, . -~ I' . r- I' ,r""'¡ , I: I ~_J __ _:. ...~ .__.._.____._._..__j~::::-.~.__ .--....--L.-- "__ _:.....__..___." .;.;-.;.:;;;.;;;_____U L---....-_ - --.-.-T. r-r I J ¡ :........;-1 ~; II . . .! . ···......1 10 i -------- ---, -- - _ -:--: - ---+ ---_. ~ - f-. - - - - ++ - _ t.-:-::.:- --¡-,..:=! I· I . ... .......-: . ¡ :: ' ): . i ¡ . ~...I '. -...·..ï j !: :....{ ~._.:: ...- . I . --¡ . r . ..... . ., I , ... I f-::·=:Jr~,_Jn~:- :~------ -T·-·:· :.~-~-- !::JT---:=·r=:l-~·- - . -'It- r~-TB-P ~.--=J 5 ~·-~---r·::·+,,:·:···":·-r=~~:i=r=J-Ll-r~f .\.1--- [~---_... L.r---~;--;~j-- -.-, ~ '. .' f·.;.....·-·.r·-·L ....--- _...__...l._-, .~.~.....---._----- ----L-----.-.-----".-.-+..--.-------.-......---1 I·-----..---t=~···--·--·-·---·-l.-~ .- !. ¡. A.R.Co.i + MISC. . I .' ¡ . t !. I ¡ SALES I t~ ~{IJ ~):rFJ-Tð J~¿1iLK~~-:f~~~~ ~ jLLiiI~£- t !f~~ i:;_L[[~_1 L.._",." _________. ,,_._ .__.__. _._._.L_ .____. _____. __.______ ,_________._._. _ '_'_ .________-' R.K.D. 10-24-73 R K. D. 10- 24-73 50 1--' - ""-.- -. -...----..- "--'-'-'-',-- . .-."- ....-- -------.----..-- -- ! . .-- r" _. .n_ :__ ____ i _._ _ _ ...---1. ._-_------::: -~-!----- --- - '1--- - --- n__ ----. - ---1 200 I ,n_u_ I .1 I " "",-:: / .. L . . r-' 35~---- ,. . i . . " vi' ~_.-~.--.-- "'-'¡ ------..--------/. : L_./ . i ¡ ___.__~-n"--n--..' .' · i' .' -. -.-.-¡---.------.--' , . ~ OIL (MSTB7MÕ'---- .' - I . ,-:-1 1._____. .' ¡ ." ! u_ ,n_~_y-----c---.- -f----~-- ~_ ! . i f ____ · '-' 'I I . I . ---- I 30 ~__; _____~:~:=f-_~,-::-:-_-:~J --- - --.-- - I no --. . --i- _ _ _____ ____ - --: :-=~--J 140 I. .: ..........- --- r- i '~: .' I . I I .. ....... ' . , . I 1_ _~ un _ If DIESEL (MOOLf . : . . .. · !. ···T;·----- -r"".;------ ___.J I ,\" -.MOL _ _. _ . \. I '. ""-- I, 1 · \ _,120 .' . ___Z.._." I I' '- / " \ J . j \ /1 _ __._..n___"'~ . , ' --"", 1 25i - ___ TTj,/----- _ 'c .,¡ i' ,,:-·----:1-------·----\ : GAS . -- -- _ -- -- (-. _ on' t: I . ___,_.__i. (MMSCF)' · ' 1-- -- --- n --- I I ,___ _..._1_ ! I . ---, 100 20 c:~:.I-- : .. ::-.~:_~:',. _::t__:-~~_··; t...-.:.- " t--.. -: __: n - n__n .. -\:! [' _ t _ nn. _ _ ..' I ' /.- I .___.n_¡" 80 I ..: -- f-- _n '¡' ;- ___on __:L:__, I. . · .... 151-.------) 'I t..-....·_····L' . 1 I ' _______I.._____n ___. ... ' , I ,-'" --.----- j . ...----...--.-- I' . ' . ,-- . --- --... I: : _ n_ __un __. /.' n -- _ -- -- n_,,' --- I ... ._ .........._ ~ I 1 --- ... . 60 I'. ;---- ---- " _ . - ___I' ' I .- . 1/__:.___ ':l~' i _~---m--. _l ~-~J" - - n:_ ----- · __I nn___ -----l=_).. ( '. .-- o n__ I'" I -- .1 ~__¿_~~~ ~Ò~=~=IJ~~~~F-~I=j~~rl¡-[~_-E~lI:~7-~-=?;~E=~~J 0 " "' , ,:/. ' .'"'/ ,", j~ ~") x ...: 0 ~O >- ~, a: :, ~~ ë ~ ~:~ 1"1 C¡ \'\l (Y) (") SCH EDU LES and RELATED PRODUCrr ) NORTH of BROOKS RANGE) [ )lAND ( ALPS DIESEL' ("') C') (\! ("') t::J T,f : f~ r" ~.:. '..1) .~ 2; >-ij. rn- > 'j, _.. ¡;:CI <~ 0 <.:10 >-- (i) ~~ ~·.J';l :t(~ j~ DIESEL DEM ) and RELATED PRODUCTION . ')CHEDULES ( ALPS NORTH of GAL BRETH LAKt. )' 50:-----n-~~- ---- ----T~----------- ---- -- T ----- --T"=7-T50 1-,,-- . ...---,..-.~--\....-. -'.' .. --'-'" -+- -- -. -.- - ..-. >. ..-- -..-- "'-'-'-"-j"" -.. -- . ...~ I . ..' DllSEL, (M8BL/~.~) . .! ! . ; i 4 51"" ~._..--_.------ ..:..ç;' ....:...... ······'-··~1···..---..:..·-··.. ------t· -....-...-. .__.n·.... +-;- -.-.- .----.. ..---...;--.. .,. ...--....... .....-. '. '1225 ¡ '.' :u Oil (MST8/MO). ¡ . : ! . ¡ i· I [--~-~~ - --; - ------ - - - - - - --Þ'- - J -~-,~ - ---- ¡-;-- ---- --- -- r-- ---------- r-- -- -----1 40 r---u:-'--~ -~-----::::--~-+- - -. -~-:---u---¡--:'----r-l- --r---- -- --- !,-----,--___: --- --: 200 !. . .., . . ". i . . . , ¡ . I . I . L-7--"'''-;- ---.~"-":';.. ---...-.....-.---~---...-~-.-:..---:_ .~ - _.___._..:__~___:_~-J.--:-J.-..{.-.--.~..-.-...----. . - '''-r~ .---.-------. --..-.-. :--1 ! . .;. :... .: .:' ..-: ¡ . . I ' . .. i ,-......... J1' ;1' ~ . I' ¡ '- - -"I""" '-l·t""~' .... ... . 1 .-. 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I . . r~.-~~~--~-l-- _.._.-~..~.--..J-----_..__. - :. - -.t--_h_~--..---..-L~-....:_~-_.-~---_..--------·_- In.. . . ; ¡ i i' j.... . .. °l_~ ~h~-i~;I-~-})·~-~-:lkr~-i~J£j----j: ~:T~~' £IJ~!Ji ~ }j'-LL~JO L_________~~:_.._ _______ ____l__.___-=-~_~ . ._ -1___ .__.___.L 9 _~~___ __J R. K. D. 10 - 24-73 #13 AtlanticR ichfieldCompany ~\ ............ North An- ''\ Producing Division North Ala;;., (strict Post Office Box 360 Anchorage, Alaska 99510 t Telephone 907 277 5637 A 1'4t· i, t ~¡, ...\" ~.t;I"""\ #u,<!."¡ ~-...,~ 1 ,?,.ß. I ~~ ') ~'~'~V Jlll1e 12, 1973 - -ï ~-~~IM- I c. GEOL I : '~ë:-ÉNG" ' 1 I 1 -fN¿;--~/.fi?> , ¡ ~;;=I r 1 ; -~~-+-- I I 1 GË'ÖL'T'¿-¡ 2 Gf:6CTt-1 ~-GEÒL"l----- , I R'Ëv""--I--' . ,---""-'---.--.----' , I D ~~F:'_..J__~ "~aTf:-Ès:.~.__J_-¡ ¡ FILE: ----I (ô.- r:¡ I ~ --9 r .. L ((/, ì / 1?1fA:!';/ her'-( Mr. O. K. Gilbreth State Division of Oil & Gas ) ; ::;!¿;> Î/7J t-I?-' 7',. Department of Natural Resources ~., .., 3001 Porcupine Drive f/I5... Anchorage, Alaska 99504 ~rft~ q 9: ,'5 Dear Mr. Gilbreth : ~ \. ~ \~, "\' ~ k\ ~ \A ~'~ ~,:^'~ ' .Q'" ~ , Subject: Two Phase Flow Test' Û.s. \ ~ A.R.Co. is planning to conduct a surface facllity test in the vicinity of the Diesel Topping Plant at Prudhoe Bay. This tes t is scheduled for Augus t and September of 1973. The purpose of this test is to allow us to collect data on a "miniature" facility similar to the one presently being designed for full field production. This test is needed since the planned design of our flowline system and first stage separators is based on two phase flow in large diameter pipelines at the ex- ceptionally high rates anticipated for the Prudhoe Oil Pool. Basically, the design technique and criteria are currently based on a lirråted amount of operating experience gained by other companies. From this test, we should be able to verify and possibly improve this design technique. At the present time, the maximum allowable crude through- put for the Diesel Topping Plant is 2750 BPD because of gas flaring limitations. We request of the Oil & Gas Division, a temporary exception to the 2750 BPD rate to allow us to produce the D. S. #1-1 well at rates varying up to 7500 BPD for 25 days. The proposed test is quite extensive in scope, due to the type of data we are seek- ing, as illustrated by the long test period and somewhat high rate. The actual throughputs have not been deter- mined on a daily basis. However, at your request, we will furnish them as soon as they are available. Any further information that you may need will be gladly furnished. Very truly yours, ',) i ~~ C¡' ? ..' ..'. >:;, ..../~ .~q:(~bV~) ~ R. D. Appling U U mŒ©E~wæi"1 1\\ .) JUN 1 3 19'13 ~, DIViSION CF OiL Þ.ND GAS ANCHORAGE RDA: aep ( I / -+ 12-e>.V #12 ~ "\"~',,,;,~,,,,~~ ) ') ¿ ~- "/~. ? ¿) /0 ,. (.. L.".. L.. 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','" ," "'.""".. 800 £~~..g!$"t?_ (,-1 !J tt r.> ~"""-""·',..-'~'..':'.oI"I'....,...._ C':. ¡d..;"') «(,~: 1":, r'" I....,r". ~~...., ,;:"'..-\." .."",~..",..., , 3 ?,,~ 700 I~~O 8-/-';0 I 7 $ð ?- ì ']Õ It, J 0 t:. 2~ó 1),-3[- 7/ i) "'. I~ .,)0 2.~7() ISJð t.jZð 11/ __ '/ l/) - ¡\It; ;~b ~ ~ . /,:1 t... c- 6 r Ic;tÂlZ.E5J ØlZ",€ /$~tll'/ w 1'1- t- ~ç) µ E:.·/~;:;'I ~ E t!¡ (].Ølvt ) "'" A,,/'l;--'., 1'1 ¡2,,·';' T£:¡, klc: J d,. Ä. 8'/ I Il/lb e I "'~ c: L U Di:- .:5 I? t. (. ...."7 4,:; J. ~ t.t" C J"; ~ f" C f...H_ r ;J 19 ) E (} j'i ^"ï? /"):' W.I.: [~~ f!o ".. / A' (, IL' l:;- /::':.,.1- i"''"Z~ Ie: ~ ð c; é,v I-~ IZ:~; t"l ('1,1 , t ; .1. I I ~'X c..l r:. a., ~ rHt:- ::- ¡ 1./,,: I .....' · i ..: l / .., I ~ l/v c./.-.:--: ¡;E:i'$ /.1.) .:: I ,v 12: ,2. i:;f T7,' l~ :J lit .ß;;I i~-(;; .~,;tj /51 :~/ ij~\ ...~ ...'1" ,f' r::- <- ,i' ...} ,.'t~l·'o4,_'~ ~ tJ' . ,,~-,:,. f · ~-.. . / ,,~-:::,."! I ¡'J.; "t' 1"1(:.) /L.,I t ,f¡ /J · · ..1 · I T l~ c..,;. "... /~ t><. I:r (.. 1.1· -;: .':: ¿ ( ",t.¡ .-::. Þ ~...'.....,......"."'....._,." ,. ,.. )-r-:.:.'~ ,,{oJ E.: It'''''' .. -41 ..7..~ ..:.1 /!-T'"' .. :,") r ....-./ I:...~ i..-.. ':" -:,....... .'ot.~· I'" ~ . 1,~"""'--' . . ,. ,oJ./*.(. . '. ......~. /- . I ~.~ '. -I ,/"W ~:... . ..-. oJ ;1 #' ..~~ I It ."~ j' ",,' #11 , ) i" ,,:;~ HLB ·1~{;:¡' .I~ f"- '. ~ TRM\ilM ~ ).,. ~) . . ~1Ifl~ ~IOKG. ....-__ " KlV -It!tl:"..... ... .:::.-:::....J~( A ~:: ,.... . ·",-Iv _\.:~ - .-. . .......... . .." - ... ..,.",... ..I .-- , , ....-.- ~..\._"".A1'-' .......~ --- - -~.."""-'" - .~~ SMC¡5sna .~ ~.- .- Box 1086 Anchorage Alaska fILE- (0, q'l ...."""""""'..... May 20, 1970 Executive Secretary Alaska Oil & Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska Re: Conservation File No. 91-Atlantic Richfield Request to Continue Flaring of Casing Gas at Prudhoe Bay Dear Sir: I wish to object to the flaring of casinghead gas , as is being done now by Atlantic Richfield, on the North Slope, specifically in Prudhoe Bay. This is yet another example of the disregard given to public lands and the quality thereof by oil companies. I truly hope that the AlasJaOil & Gas Conservation Committee will consider the public in this matter. Present economic considerations are of fleeting value, whereas the lasting effects of pollution and the wasting of a non-renewable resource will last forever. , ,JI?J '. J~"- / (¿\)"'''-, :\,~¡.,,) , /-1\ (J \) (, ..¡,-t/ . J.Lij /'\1 Resp~ctfully, "~~~ , tuWt'~ðJ¿a1'2.4: (Miss)Sharon M. Cissna i' '\<Y~'~ f:) C ~(''-- ~c'.-;-'· ~ ~~, .'/ ~.~.~ f~.:.,. '\ .1... '1.,.. . - 'l ' '. :1 {,\ :~~ . ,/ ~"Y.; ¡);\'!~;;::;~.: ~~ ':::':~~. ,I~,>.:L) G/-\S i\. '>.: C ~.-: ~:) .~/ Þ...::':-t:: #10 (.ii1·~Qhl,e~~t+on P;11e No. 91 - Atlantic :Rl(!hr1eld ReQue8:t~ .to :. . ..',t;,oot1nue. 'lar1n¡.~, 0.&.10&.. ~a8at Prudbo~..BQ'.. .:':,.; . 'h:-I ',-~=:'~~:i:ftr¡;iô;;õiii~!~':~~~!l_~;¡~t-; :{·M"~::i·'Pr'1r1.~~".~t~re. beeause 'it 18 a wáJit1ng ~t. a 11mlt,ed '",/,«:.:>.::'i' .<. "'tUâl r.souro.:·' and· '. economic ·oona14era~1;oD.:· a8 ··otOi1..:._~t~o~J.,< . ··tÞ.1mè;\~oQ&4;;_t control. .. '>...:.:.j.\.,;,:}~.")::;:: ......., :.......... .....". ...:.."'" . :.: ....~<~¡:~. 'P1ar1Dg ot ca81ngbead·· gaa 18 Wa8te ot· .' ~e~'ow-c.,.,~ ,:'. "" ·.m·'· .. ':·:.::'Þ. P1a.r1ng CI'Elates pollut1oD ot tbe. ~a1:ri-- regardle·,.: ·ôt· . 81 .. Wbe~';" ·it ·!,...·accompl3.ahed. .' I . '. . ~ . : . . : ;0. 'Suob tlar1r.lS·· ~t caa1npead ca. a~peara "2:ncoua1ateatt .' .. ,'" Jd.,th::puÞ114. ·announce..nts and ac1vert1."þt~· ot Atlant1c~cb(Ù'14 . \".~ 110 - .mo' ."'17t.b1ng 1. bdnc cion. ~~þrot.4~ the eøýS;rcm~ent. ;~\~ or the future . eeonoa:.1c env11'onm-.nt. .' '. '. . '~+8.::''- ' .<1. The Goat,Q!' 're1n3ect-1~s: ~. cae1nchead aall sbouid.be· a. .~ . . ......: otdo~' buines.s . 1ft Ala.lea. an4.ahoulð not beexcueeð·· r_';,·; . '. , . . 1\ft7: .Q-cålXect econOJ,s,c rea.Oh. ".:. ".~.' ..... .: ;;...." '.," . '. ~""'.' . :. .'.~ .'. beu... tbl.t_, r.:r.)ft~.1onMcb1ner,ar. ',not . .~:, . , . .' .~: (OParent J:¡r "'.' ,..Qnto'i~·CO~k 'Inlet ott-ebON.·. .;.. :',~ t1ã. . .' ')~1;,_d ..fbou14 not O' tain' 18 Prudbo~. S.., '1eld. . .. :'; ~_ .'~' "',:,~. ,:~:~: ,\,,: . :;·,t. :~;~.~ . .:.'" ". . , .' ...,:t. . ,> ; ~. :~'·":,.,·'¿11lÌP;:-f eo.1m ,18 1n. response to Jour pUbl~cl1.ot1.... 4&,,,:,> ..~ . .~ :\'\¡." /:.::'t~~~~~~:,,} : ·"'P\1ut'1~bt:tt':'~mr.l ~ ",·c'~bf.:r"· .,.... ~'¡~éXllr·.'·~nt,;~;';¡'~'~~!~~'-",-;,:~~i'~~ . .....~.. Þ4ue,t~or ~t.f",..:';4ftof'~~n.t::" .>"¡;;'1,: ¡.., .. .\),i . . .' , ~ ::~...:~ ~:.>;:¡_ '??:... .~:-~ .'~~: ',"<;i~::~;~ ··;;·.·,~~;~i.~;~?·:; .. 'p" ", ....'. ", ' ~. .' . , :t, :$XeciÌt1'Ve Seer.ta.r: . ;~.. '·A'1a~k:a Oil &: Gas C Jrvat10n Committee .~OØl., rorcup1r1e Dr! 'v'{. ~.race a Alaska. II . . : ~\ ~ ", . ".,;':" ..ì - .: ,". , . ...- \'tOJ .~~ .' . .: . ".~:, . ·d"Þui..O .~~'-~ ~. . ..... " :: :. ~ .. ft t'- .', ", ',t ;"~:\ ~" ¡\":" . .. . .... . . .....}~., .... . . .·;··.;~·i;;;'>:·.."»' '·i'.··· .,.. ., ..., ".. , J: ~">.'" f,~,~~i~~~.~5t:.,~ l,,~;~!·. , l~til:'~,·:#."JII· . '. C C··.. .,. . ..... .,; ··<·C.;>; If~....:. ':"">:-1; ,.... . , ~i.".~" . >: ~!'J .,...,' .~.... ')::'<":~ :¡';" . " :: : 8 ' .;: -,,:, <.j" :"" ...:',,: :", '," "",,~ ;:;~') :::;:,:::».,.', ~"_~"': ~ OJ, . . ·,V· ·RE C E IV.'E Ô ·>·/'·,""L,',.:·' IlIAY'2~ ~. ~Qf_AMÞ,'" . . .. .....' MLI 11M '. OKØ KLV· ~ . ~'~·~·?t~ . . . ,'.'~ :.:. ;"'\~i~ . " '. , '-,:~¡~. j>t~~ . . .' .':' :\~:)ii1 .~. ,.... :]~.,~~~ .. ,.~ "': ::;'r~~;,>~Utt~ :.; ~"6fJ'.u - :,.¡.,~ #9 AtlanticRichfieldCompany North Ameri. traduCing Division North Alasl (,.::.trict Post Office Box 360 Anchorage, Alaska 99510 Telephone 907 277 5637 ) May 18, 1973 J!" t,,~ ~. (I d.'\, '...." Mr. Tom Marshall AJ v'l".", '1,\ 'r Executive Secretary Oil & Gas Conservation Committee 3001 Porcupine Anchorage, Alaska 99504 t· I \i..~... A I I' 1.,\Î4., ~ ( /va. qf. (I Dear Mr. Marshall: Operation of our Crude Oil Topping Plant at Prudhoe Bay is necessary for our Base Camp operation and activities. Production of diesel and naphtha fuel and the use of separator flash gas from the plant remain our source of fuel. We would like, therefore, to extend approval for the maximum production of 2750 bbls. per day from our Drill Site #1-1 well as a source of crude. The extension is requested for the period June 30, 1973 to June 30, 1974. We will continue to inject plant residuals into the Drill Site #1-3 well. Additional information you may need will be gladly furnished. Thank you very much for your consideration. Very truly yours, /.;<:9 ~ E. 1. Berdon Sr. Prod. Supvr. ELB : 11 .' ~.~ Rl Œ © Œ ~ ~/~ JJ MAY ~~ 1 1 ~ , j DIV;';.!'~;r~ C r; OiL f..H:l GAß AJ\.:CHC)RÞ.QE ~~ ~". W~'~""'~'" '.':'. .... - .... .. .,~ l DIR.. '-.__. , I C~?~o.~ .~_ ~:_'.~. Nt? .. '..__"_'" I 1 fNG I : I ~ -ËNG,nr-- : I :-:~[---~ I SENG. .I.=-~.. If,·t;r:ClL I' ' 'TnXO(F I 3 ~~....._, I Œy,' I: ~-l~-: .. It ~T'-} ~a::Ii:IJII~ . ~"'I.J>oN ! 1FI11IE: -~ #8 AtlanticR ichfieldCom pany North Amer;"~n Producing Division North Alas~, )strict Post Office Box 360 Anchorage, Alaska 99510 Telephone 9072775637 ') May 4, 1973 ~~ ~". Mr. O. K. Gilbreth Oil & Gas Division Dept. of Natural Resources 3001 Porcupine Drive Anchorage, Alaska 99504 4" /, cJ. , tJ "'" +0"" : 4J.'tf~ 'J/"..t,,,.. ii,,,..., "c.} (11Ai rJ I Pf I . J .~~~ 1'(',.. ~ Re: Diesel Topping Plant Test Dear Mr. Gilbreth: We are planning a maintenance shutdown or "turnaround" on our diesel topping plant at Prudhoe Bay in July or August of this coming summer. The plant has been operating at only 50% capacity or less since June of 1970. At that time, we were placed on a maximum crude throughput of 2750BPD because of gas flaring restrictions. The plant was designed for a 5000 BPD crude charge. We would therefore like to request of the Oil & Gas Division a temporary exception to the 2750 BPD rate to evaluate plant performance at design rates or above. Completion of the test should require no more than 48 hours of higher rate production from our Drill Site #1-1 source well. We do not think that rates above 6000 BPD will be needed during this period. Any further information that you may need will be gladly furnished. Thank you for your consideration. Very truly yours, /?~ E. L. Berdon Dist. Sr. Prod. Supvr. ELB:ll fñ'\ r~ (- r;::- rf U..I! I:: : 'J ! ç' n f,/J r? ..-:-~" :;.;, '. ',: L:: L t,; \1':= j J ~, \ UÜ I.Ú\ Yo' ., ,0: Û), I: -_.' : .'...., l~:·\',.r¡~.,.. r~ \~;;.p GAS #7 AtlanticR ichfi eldCompany North Amer; \, Producing Division Alaska Ex:. Jion & Producing Operations Post Office Box 360 Anchorage, Alaska 99501 Telephone 907 277 5637 .\'~. ) I Robert E. Wycoff North Alaska District Manager A" I",. 10. AJ... ''''S t...1,; ~ ÅI ,....."o.} Nð. ".1 January 22, 1971 Alaska Oil & Gas Conservation Committee State of Alaska Department of Natural Resources Division of Oil & Gas 3001 Porcupine Drive Anchorage, Alaska 99504 Gentlemen: Atlantic Richfield Company hereby requests an Administrative Order pursuant to Section 1.B. of Conservation Order No. 91 increasing the volume of crude oil which may be produced for Topping Plant use in the Prudhoe Bay Sadlerochit oil pool from its present maximum of 2,750 barrels per day to a maximum of 5,000 barrels per day. In support of this request, Atlantic Richfield Company would show to the Conservation Committee the following: 1. Atlantic Richfield Company proposes to enter into contractual arrangements with Surfcote, Inc. to furnish fuel gas for Surfcote's pipeline coating plant located in the Prudhoe Bay area. Based upon Surfcote's estimates of daily fuel requirements, it will be necessary to increase production to the Topping Plant to a maximum of 5,000 barrels per day. It is anticipated that this useage will continue for a period of from four to six months and will commence in April o r May, 19 71 . 2. Subsequent to the Surfcote coating operation, we anticipate the installation of sufficient compressor capacity to inject, along with the unused fraction of crude oil, whatever volume of gas is not at that time being beneficially used. To the extent RE'r'c! :, , . . ¡',., [ .~ V t D: ,j 1\ j\\ 2 ..,:' l~r71 JJIVlólUN or· OiL .D.ND GAS ANÇHORAG~ ~~ ~". ~C~~ÕL~_ -----...... .. ~ __L.~:, EN~_..f!P --I--~··~~â..-If~ --r..~"E~K; J~ =-r=~" E:".i~¡ W I 5 c~,IG --f-"" GEOC'\ ~ -'T'2"GEÔ~'] L. -"-'3 'GEOL .\ i ' R"EY"-,'\1Pi 15f~AFTT I .. SEe I cë5F~ïF'ËR: ~- FILE:<:O~ 'II Alaska Oil & Gas Conservation Committee January 22, 1971 Page II that compressor capacity is not available for any reason and the gas is not other- wise being used beneficially, Atlantic Richfield Company would not object to curtailment of the production to the Topping Plant to its present level of 2,750 barrels per day. 3. In addition to the requested raise in allowable production, Atlantic Richfield Company would also request that the Conservation Committee also consider extending Conservation Order No. 91, together with such amendments as may be appropriate in response to this appli- cation, beyond the present expiration date of July 31, 1971. We are attaching in support of this request, as Exhibit A, a schedule of anticipated Topping Plant operations which includes a projection of both the Surfcote operation and operations after compressor installation. If additional inform- ation is necessary, or desired by the Committee, please advise and we will be pleased to comply. Yours very truly, ATLANTIC RICHFIELD COMPANY , ~' ~'::>- J "j (/ . .....) '. "'1\. .".(...') / B y_....~j-.-'0~..~./ W ~.' ~ (')j,,-& Attorney ln Fact. ''I\J Ÿ V '. r\. .~. :" j,~' ~ f \" .' 1, ". \ , l I f," \l ì (:', ~.~~ I~; . ~.JIVJ:~IUN OF Oil .4>;C: GA:'i /\NC H OR/\G ii ) ,/ EXHIBIT "A" 9urrent Operation (Average Condition) Oil production Gas production (GOR 800 cfb) Gas beneficially used* Excess gas flared Expected Operation May - December 1971 Oil production Gas production (GOR 800 cfb) Gas beneficially used* Excess gas flared 2750 BID 2200 Mcfd 1170 Mcfd 1030 Mcfd 5000 BID Min Condition 4000 Mcfd 2070 Mcfd 1930 Mcfd ~xpected Operation after December 1971 (Average) Oil production Gas production (GOR 800 cfb) Gas beneficially used* Excess gas to be injected with unused crude fraction GOR of injected stream *Note: Includes 400 Mcfd safety flare 5000 BID 4000 Mcfd 1650 Mcfd 2350 Mcfd 590 cfb ) Max Condition 4000 Mcfd 2820 Mcfd 1180 Mcfd f', ~- 1" .¡¡- ~'f't>" ( 11\ ( "" ( \/f: ~~; ,) ~ .', ·c'·! ........1 '\) µiYI:~l\~JI'~ ()¡: \.....;_ ç G}-:tI I\NC-IORA(;;iI! Aver. Condition 4000 Mcfd 2425 Mcfd 1575 Mcfd #6 (o~s ~L-~ ~JL~ {¡" 7 f'" 0 / ~ ,"¡ JJ,' ...__1-.. .(1 ,,~... 0X- '---V___f<->,-...·'·'V' U--' TJ.M~ft Eaelosure sluc.~eil...'.. ..,"10."....1'......,.. J ....". .../\j.' I} /P/ l/ i'l j( / Itr-,~""~.)~d'-Vj n_ tt . Mar_hall , Jr. Chief Petroltn...Ceologut fer 1ourÞcøria., ebaq..... ft. correctei cop, h,.. 'beeR.!:':.'''''' .i a ctOP,ù _closed ebedd.G, themq.atut our reeørdiq., .. ·coacUI' with,..t.. ,our 1et....øa4 benw1t'b 1., .,... oW' ef the abovG "'....a__ t'r'anecrt,e of __lua.AftD:rreviewi..the ,CGftecti..yøu_ueeted: ad ,:Jo1\ø I.. Scott . Esq. Atløtictie'ttetðC...,. 1._18.1 '1..t.. '.0,. 1_ "0 Aa6ørqe',Al8ka "SO.1 :D..r ...... Sutt, : Sept.Merl, 191.0 Ie: C.88Þat:i.. 11.1. .No.91 Tr,..cdptof May 1931 1"0 ...d..1; #5 Subject: Conservation File No. 91 Transcript of May 19, 1970 Hearing ...~.~ :~, I DI~ ~" I c. GEofli" ! -,'''c. tNG 1- ! -,- l' tNG'-' I '-2' ENÓ"-,- --r-fiNd! -1--'4' ENd-I ,_. }-.f ENCil-- ~""GEOCTT ~ ~r2-GEO[-I/,-' ( 13 GEOC-- I R'ËV-- DRAFT'- I s'ëë-¡ CONFÊR: FILE: AtlanticR'..chfieldqomp.anY" Legal Divisi,. Post Office : 360 Anchorage, À¡aslŒ 9950'1' , Telephone 90'1 277 5637 John R. Scott Attorney July 6, 1970 Alaska Oil & Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99504 il Attention: Mr. Thomas R. Marshall, Jr. Executive Secretary 1'.., . Gentlemen: As promised, attached is a copy of the rough draft of the May 19 hearing containing notations of sug- gested corrections. Naturally, we realize that you will check any and all significant corrections against the actual recording, and we will not dis- pute your resulting judgments about which correc- tions should be made. JRS/r k ~ '" j ,..... w' A 1°u.! rlo."""\ tl,< r5 ...~y~"" f \.." 5.(., tLa ~ ') i~ I~ J fiftP. 1\ 0(' Co 0 ~ ð- V\. '\ ..J.. . ,.,f ,~, t .5~(.. ~t(V '\ ~6\1\. S ,..... ( ->' , v'" 'V 1" '" 0 n'^ When the final transcript is complete, please have a copy sent to me. If we can he~p further, please let us know. Very è~t!, Y7~ Johl? R. Scott Attachment: , I'''' J U L. ~'J.- '1~)7LJ ~,o V t ,-ì ! f ,.\ .., r- I ,'It-" ,'., ~ t!' , ('" {t" \,~ ',. \ . . . \. \ ..,-- ,(',', ~.. ~,;" r ',V, ,(' 'I ~ .J. \ . ,'" ! I ( .. ' , t' (, ~ " [,' .\ ~ t I , lð I " " J I. \ A [. ' " 0' ' (1 , " U, .:.. , ,I: '" {.I" , . ( " , , ~{ f ( F 1 V F [) ~dV DIVI$IC:N or: Oil. /I:'-ID GAS ANCHORAGe 1-- 1\ W'- . 1-6 \ c: . \I,J....II\ e. î.....'T' :I ~ . \.. .., \ !) ~.( #4 ""fT. 'J . tteðt6'me¡Wfl:Jfiè~~ j§ S\\Itltll!:\lII1.Ø~ t1alo#~ .~ q~;,,;J.f~Jqri. g¡t6t'11161 '!1ä!~#tj'ìlH '¿ail rdW,§: ~f,' ",:.{~ "j"\,~~,~\¿ Po'§t Office DC'P~rNl1enlt:ð~:filie'& 750 mifé:~ ð(JéI§§. . l~iV : ¡':\:'.~;"'-;'!" . ,. I .··11" ( ¡J I c/' AA ,. . 2¡hì!t,f) <i.. .Øiil., ~ . ,<\N!J~~I,I,:' '::: It CD. o¡ . .'. f/V¡ ( 1.., ~v. Qtt.v.: I v, ~ I ':i',j.i. :'," :1~. ~IS "Y;:;~hree 0 hj f1étions:£º~::'" :~ ~larings~~:;:ç:as" ; Ö\fYlny,t,~\t~è ~h1ÿ~êtt:ÐltI.iS" à:fÏid ,t1W6 hi Sta:te "~'():ns'e'rvåHö{i1løffjéiäl\§ ~'ndì" :it I éW.If,e:t f,öritn,' Weréfi(~lc~ f¡v:ëd 15ty 'filj€ slfl~l~ I $~,;.the, ','if., ,oðd~êMtd tliiâ;t ¡thè ,êr;¡ y,¡ ()'Ha}íÏdGàsCdfi'sl~tVâtiltJ1t1. Cdfflmi:@lf_ inf.l. r~.~,~~þ~~:d~·tl'g~l, pteøedê~lt 'M æð ~ 'þi1ß'Jl(j JiI'e5àt'tî..~ tÙ!êsEli~ c:,i 2t. j'~~ f:~~i'~~i:din~,.'()if. ,. ., 'ta,...C¡,.~ß· .f!.,e,'."s, '~~le: pro~ e (:¡Idêis:t Wy, AHâ1nOøJMønfÏiðld: ()o"'.~ ductionis es'! '~:,~ fi:eM. .v p1eìtffljg;s;F~ln,~,Ô'è'(ffltiid'i.Hj ·~··~~'m~té'(f:~,t~::;· '''~I'', \, " . œb.g tJI.. caSing1iê~d Mj~. !~:fflf¡dlii'~~'~i~Y'; .,. ,~,ely ~~IP~IÐìr~~~~~~IHt~ ',o{ r~;. , I , AR:CO' ìS§.'êèk':lifiig' 1*4.' '~,fri)it'i;~~~'IØB, >~ . æ,'I,n., ,.~~~.".~.il.ln.t, .I.t.lte, g,a.·'s.~" .. ,~~~. i..",',·. ~.~','.~""'~.,. t~I,'~.. .,t,.,~.~'e, f ~ e! . fi~~ifi~ ,) f""" n I~.ß~ rj,.... e~tllp~'n\t wo:u14 9~~t I ~jOUit $ î' m, it- .ttU··· 1" ,;ill · ¡,t,ð 'j I Ú¿ ·,'.8It'm&r,llÖ':I!il~~:.ll'';' 1ìô1I1'.â.'.'~. ii.' f:erw.... lfef~, ¡¡;ffl.',M. ¡' tB.,S, .';11."'" in·~"'itâ~. \'. ,.lr<t.o~~ffl~te1t1Z mmi1bi]fj" G'tìm~~,ì11'..¢.·I~::.'Øf, 'iLl J I.IU i) II t' J ÁþtM{ftoon~I6tfi.1;kHlft of i1iê ·AJÉt$~ä! l1~turaI gas' a day that is. bei.9$:,i,~ç,¿,qUC- COinseí¥Ø:tion Soc~ety~ W'a[t ~atfker ] :...,edW.i:,.tn...,... S.o. m~ 5. ,.000. ~a. .~rels ..o....',.~· '~..i.il".,!.,.p:ter-..,_.¡:. ~ A H . J: ..,', 'J dS!y ~~m, whreb a Itoßpjng...p;), .",ex- èVIlìlIl~nuêl:l t·'~ê~Itltlee!6r. i:tsco'n.,~ "j ttâèit,.Ìti'g t,OO'å tta'U~ls. of At\ 1 diiêsel e~t~... ..,'.".' ,an. 'Et qU.le~ltitQJ.tJ,8:,~:.·9. ,. ,.th"e , .àtt.ti~u.de .pf'.,. , ' Af{Cð for' notipla,d'niÍ'ng,: a te-injecti-o.n· fl;el¿~f~~~: ~:i:~1~:, ; " ,M :S1rlm~ sl¥ls:ten1·.,t~ pre8'e,rv,e' tlhe gas:· whi'ch js. ..,'., t)i~lftl '~n'ê'd : . , '.., ,'~ I "1:,J.n t 4.5miHion c'uhicferet wiÍ'll be utiliz'ed t by fflidS'l1mth~t wtt:~H lþ~tffl8Jnêht Î.âClili- fîàrk~i ~tl:O f:âlsle.d the qlUe'sltf(;n ':óf í)' ':t:~ ·f,~~~b1ë'gil:lfüf"':ðpe'itfiðn. jUt In& pt~é.ff- pos~ible .a~mÖislphedc Ip·mblems result- .i'l ¿tit: tiSiê')1!1ik§' f1êêft fdulttd lot die te- ìng· ffBffl the bê~t arid' gâssês pr,odücéd . itnaiWlf~ !~1'¡:;:,~~ ':,' M d1ð flttt¡ifig, An ' AR,ct,.. š:p)ðkYèsdia:ntê,$,pòfìðfê:d ~tJIa,t theW· bi«1 ê'hèe1êd wW:räti ê.fivitðt\l~ fflêrtfj! ~~JtMit 16 dètêtt'rliné' tliêtê w~}4 bé lfìIÓ· 2I:rtr pøblqtiont: UUêr§ f.tmn läfflei 1!)'MgH8, ~ré'l~; idelnt of' ¡the Kenai Bar Assn., and the Kèlriai Úhap'te! o:f:JJt" Adas)q8'"Cooser.. valtioill Society,' read' ~~tIiII,.,ihé ~ '. I ~~::~'g::P~~:: '~~~l~' :;~~~~:' by Parker. . I '{ d :\ <Obituaries -;¡(I,JjiitöW ~.. t A 'fLOft "'e.r:v·¡'œs wlìÍ1 b~e' ~(.. 2 ' tt:.tn. "\"fêe,n,' ',., M~,~~.· :I'~'¡'iifì. .,,' '~:l Ti~"""'~I"·.".· ..' ,"..'..".",.'1:;".'d !,yw '."".,J;..5 '. , . I',t;, , ~'l:~ .:;,"", '. \'ti-ìfl\l Q~, '.', , . ''', 'J 'I i1jé" ~. R\:!v. ".~, Ifê.th- '",t! ftðm ·~'pèd. :...1 \' ~ ,¿ . t ~ " ï. .......,. ",. ... 7 ~ ,4 _ _ ........ _ ,. .,;¡";' ,- #3 ..- .. ... ... ,.,., ,""'--" ) RECORD . " I; OF STATE OF ALASKA HEARING ON The request of Atlantic Richfield Company to continue flaring casinghead gas produced from the Prudhoe Bay Sadlerochit 011 Pool in the operation of the crude 011 topping plant" and the motIon of the A1êlfkQ Otl ond all Conlèrvätlor1Convnltt.e co heAr c...tlmonvontha contInued InjectIon 0' unused fractl Into the pool. :' '¡.,: ;,1 I, ',"'1.", I.'. May 19. 1970:, . ,." ., ,. , , " .; , ' DEP~RTMENT OF NATURA~ RESOURCES EXPLANATION: Contained herein is a:completewritten record of the,testimony statements, questions and answers ,prepared from a tape recording of'the, proceedings, by the Division of Oi1and 'Gas.'Department of Natural Resources. . \ ';, ",,', ',:,:::'L" ;:"., \,,' l' . ~;' .': ::. . . . ';,5:1,. . .'~ .'.. \ ' " " . . ~' ' ~ . " "'1 . . \., f', ¡ , 1...' , . .. , c '-,!~ " C' ) j ( '~ ) J PRO SEE _D I, N G S Hr. _Burrell_: Good morning gentlemen and ladies lady. This is a hearing of the Alaska Oil and Gas Conservation Committee called upon the request of Atlantic Richfield Company to continue flaring of casinghead gas produced In Prudhoe Bay SaéJlerochit Oi 1 Pool in the operation of the crude oi 1 topping plant, and upon the motion of the Alaska Oil and Gas Conservation COmmittee to hear testimony on the continued injection of ~nused fractions into the' pool. I'll read the notice: "Atlantic Richfield Company has requested permission to \-. ' continue the flaring of casinghead gas In excess of the amount used ,for fuel, heating ) and other beneficial uses"produced from the Prudhoe ,Bay Sadlerochit Oil Pool in the operation of the crude oi I topping unit., ,The A1'askaOi I and Gas Conservation Committee on its own motion will hear testimony on the continued injec~ion of the unused fractions into the pool. Administrative, ,approva.)' of the above mentione~ operations expi res June 30, 1970." Nottce of 't'his hearing was advertised -- published in the Anchorage Da i I Y News on May I, 1970 . First I shall introduce; the people here and then want to run into the history of this thing. I am Homer Burrell. I am Chairman of the Alaska Oil and Gas Conserva- tion Committee. On my right is Tom Marshall, who, is Executive Secretary, of the Committee and to his right is Mr. O. K. Gilbreth, who is a Member of the Committee. At the end of the table is Mr. Lonnie Smith, who is a member of the Division of Oi 1 and Gas and " serves as an Advisor to the Committee. The same is truè --I see we have Mr. Bob Hartig., who "snuck in" from the Attorney General's Office, is here and the next one around is Karl Vonderahe, who is 1ikewise a member 'of the Division of Oi1 and Gast who serves as Advisor, and to my left is Harry Kugler, who likewise serves as Advisor and is a me~berpf the Division of Oil and Gas. And we have Jean Wedekind here he1ping with the tape reeo rde r. To run into the history of this ,thi'ng brief1,! an~ these various bits of paper:' (') ( ) letters, wil I be entered as exhibits In the record so they wll I be available. We have a letter dated Septembor 19, 1969; Initially, from Atlantic Richfield Company to the Division of 01 I and Gas, which requests permission to flare excess casinghead gas produced from the Sag River State Well No. I In conjunction with 011 production from that well as e crude source for their crude 011 ·topplng unit operation. They., state: As much as possible, a,ll casinghead gas wi II be used primarily as fuel for· the topping unlt operation, and secondar'ly, as fuel In the base' camp power generation. and heating faci Iltles. won't read the who I e letter., There ,I s a 'response dated September 30 f rom the Alåska Oil and Gas Conservation Committee to, Atlantic Richfield Company. (Excuse me, I want to Interrupt a mlnute¡ Mr. Marshal I, would you Indicate that the first letter from Atlantic Richfield dated September 19, 1969 be Exhlblt' I~ This letter dated September 30, 1969 wi I I be ExhibIt I I). And, the response from the Alaska 011 and Gas ConservatIon Committee states, among other thIngs, "It Is our understanding that the produced casinghead gas, to the greatest extent possible, be used as fuel, etc., and that by December I, 1969, the flar~d gas volume Is anticipated to be less than 1,000 MCF per day." It goes on to state "that It Is the Committee's polley not to authorize the venting or flaring of gas except In cases of operational necessity or emergency. Since there Is no evidence that the proposed production will result In reserve--In reservoir ~amage, the volume of 9~s anticipated to be flared is negligible, and It Is believed to be In the bestl Interests of the State to permit operation of the topping plant to provide fuel for the exploration and development-- . . operation contemplated." Permission was granted to flare such gas. This authorlza- ticn expires March 31, 1970, or such earlier date as may be determined by the Committee -after public hearing In the event of a protest by an aggr:leved party. Prior to such expiration date, a showing as to plans for additional beneficial uses of flared gas wi I I be requl~ed If further approval Is requested. It goes on to state that, "representatives of the Alaska 011 and Gas Conservation Committee will Inspect the topping unit operation at an early date and from t1.me.,to tIme thereafter, and the h .. (2) , I, '. ,J , ;. ~ ",', . :,~'.',: ' I ) ) rc~uir0d reports of injoction and production volumes wi I I bÐ closely ovalu~tcd." ) Orl--WC have a latter datod Novombor 26, 1969, again from the 01 I and Gas Conscrva1 ion ) Committeo to Atlôntic Richfield, which Mr. Mðrshal I wi I I indicate as Exhibit I I I. (So i nd i cated) . f~nd it states as fo II Ov/S: "By lotter of Soptember 25, 1969, you wora Givan Dpproval to flara unu~od ODS in the operatIon of tho Prudhoo ßQY topp¡n~ P I (Jnt. !\t that t j me wo had no ev i dence the proposed operat (on wou I d resu It in ) reservoir dÐmage. Wo have now received your"October report of operations which sho\~s according to our calculations that approximately 4.4 barrels of not resorvoir space are being voided for each barrel of output from the plant. This does not Ðppear to be a prudent practice to the Committee. We real ize you have made a sizeable plant investment, but to insure that no irreparable harm occurs to this reservoir as a result of the topping plant opcrôtion, a plan to maintain reservoir pressure wi I I be a prerequisite to any extension to the Committee's permission to flare gas. ) Further, roinjoction of at I produced gas in excess of that beneficially used wil I be a considoration in granting any extension. We sock ássurance that pressure wi I I be maintained in this reservoir and that 0(" steps wi I I be taken to eliminate flaring except for emergency operational necessity." " ( We havo a letter from Atlantic Richfietd dated March 26, 1970, which you would indicate as Exhibit IV, Mr. Marshal I~ Mr. M~r~h~! ¡: $0--1 wi ¡ I. Mr. Ourrc::: --which states as fol lows. Wel I, won't read tho ""ho I c I otter. ) It says "in camp! ¡~nce with existing Srate OT Alaska Rules and Procedure, this wi I ¡ reque~t 6u~¡t¡onal authorization past M~rch 31, 1970 to fl~ro casinghc~d SðS irì prOCL1ctior,l1. !\nJ it goes into cons¡uor2ble detôi I into the volumes and rl¿;nncG L:SL::~, \'/hich :/rì sur'c \'.'Ì II bo brought out in -¡-he "testimony toaay, 50 I \'JOn't rcúc . I I.... I tJUt i -:- '.... ¡ ¡ ¡ bc---¡-h i s letter \.¡ i ¡ ¡ be p~rt of that-- (door sla~mcd). VI c ;', '. ! 'I (; ) ¡'::";\.I- (~l-:';'.\, ::,,¡-ch 27, 1970 -from the Con~>crv(y¡-ion Co:r.mittco to Atlantic f"'"). . _ ~ t\ ¡ en: j.. .; ¡; you ~,~,,;'I' -,iì i s c:xh i b it V?) -3- ) ) The reasons this organization objects to any flaring of casinghead bas anù ) \vould request irnTIcdiatc discontinuance are as follows: 1. Flaring of casinghead ga3 is waste of a resourcc. 2. ~laring creates unnecessary pollution of the air -- regardless of where it is accomplished. 3. Such flaring of casinghead gas appears contrary to thc public announce- ments and advertisements run by the company in that they are doing everything to protect the environment. Flaring and wasting of resources is not protecting the environment, regardless of whether it is a living environment, or the future economic use possible of the wasted resource. 4. The cost of reinjecting the casinghead gas is just a part of doing busine in Alaska) and should not be excused for any so-called economic reason. 5. This objection is registered in response to notice received by your public notice dated 1 Nay 1970, published in the Anchorage Daily News.1I ) 1·1r. ~llr"1~.ell: ~ve shall now proceed with the testimony. Hr.. Scott: Mr. Chairman, my first witness will be Mr. Simonds. Mr.. Simonds: If you will give me a minute or two I would like to set up a schcmat chart. ( (Tapes Crude Oil Topping Plant· diagram on wall) Is that going to be high enough for everyone to see it or not? r've got some tape and could tack it up a little higher. I }Jì.". Thn·rell: I think it would be better if you could rê.1ise it. }x. Scott: All right. Gentlemen, I would like to describe to you the process of operation of thc Prüdho( . to~pin0 unit at Prudhoe. Generally the plant can best be described ûS a sm~117 ~pccinl-purpose refinery. The plant is designed to process 5)000 barrels rcr d¡lY of ) crudc, which is quite small when compared to the 100,000 to 200,000 barrels ~ ~ay rcfï"1c~~ics o:¡ :;trc':~~"";1 c.lscHhcre. And its special purpose is to produce 1,000 :,..-,~,~ ~~; a dûy of dicscl ~ucl from the 5,000 barrels a day of crude. It cannot as buil~, u~:~cd to mûkc (~û.:..;oline, lube oil, etc. Only diesel fuel, and diesel is the fuel ~. :'::L I:; ) ') UGcd by the drilling rigs) trucks, co~struction equipment, heaters 'and boilers th~t are working on the Slope now. There is some fuel and gasoline burned but the principle ) fuel consumqd is diesel. This is a schematic sketch of the topping plant) and I'd like to trace the flow procc:r;;; n:.; ...,t [';006 6:-om crudo oil to dic~H~l fuel.. Tho pl&:mt is dét-:d..gned to tl.lkc 5,000 barrels a duy of crude and the associated 4,500 MCF of casinghead or solutioa 0~"" ~)t',;¡ ,:..J . The produced stre~m is first passed through two stages of separation, to sepa- rate the solution gas from the crude.. In the first stage -- the first stage scpa- rator o?eratcs at 8bout 200 psi and the second stage at about 75 psi. Now about "1 \- 4,375 Hcf of gas comes off the first stage and another 100 Mcf of gas comes off the We. '5~\A\...\... \I?.Plc...e.. T\-\E G+\s S,eE.pd"1s. T~Q...OU.G-l-' iN A MOIV\E.NT.. second stage. Now tr~co tho gas through (indis~ernible)-cr~~e ~tr~«w h~rQ. The ë.-S OF 'HE. ~'S IÑ 1'0 crude after stage separation~indi&cornibla) -- flows in with the crude surge tank W¡'Uc;.t\ 15 PR.ë..SSU2.e.b To PI i=e.¡",,) DUNCES. ~~OI.,l.ï 2. s- M<::.. \:. C;;F G-As \ $ REt"o1o\Je ~ ~E.e..E. 1 while the crude h3C been c3mplcd fro~ thie crude curge t3nk. From the crude surge A H~~T 'E..><.c...H Ar>.)~ ~ tank the crude oil is next pumped thr.ough tho hoating stagor here, preheated before ) it gocs into the crude heater~. The crude heater is operated at about 15# of pressure ~ at 640° F. TI1e hot crude then goes to (i~is~~rnjb'~) the crude fractionator V (indi3ccr~iblc) ~D nQccGcary. Excuse me a second. (, . (Map falls from the wall and is replaced back on the wall) \-\~p.¡, E.)(4\~Ñ(.¡-E~ From the he~ting st3gor into the crude heater at 15# of pressure, 640° F and from there into the crude fractionator. The crude fractionator is the first time that the crude is broken into its component hydrocarbon fractions and fortunately the very large nwuber of co~?licated hydrocarbons which make up the c~ude oil boil at widely different te~?crntu~cs aaå the fuel we want is composed of the hydrocarbon fractions ",hich boil bet';·¡cen 310°F and 525°F. ~'¡hen the 610°F crude is pumped into the fraction- :¡tor toucr, the heavier and higher-boilin~ fraction goes to the bottom while the liSllcc= fr~ctions will rise through the tower. As they rise, they cool and condense, ~nd at the pro2cr point in the tower, t11e temperature is right for our fuel and we ..; ...,,('"( _..(.:,·,:-·,r ()':;;: t:¡C fr:,c-::ic~1 '·.':1ich has a boil-~~:~n[~c bct,.¡ecn 2100 and 525°F. The cor.~;)00cntD ,:Ll :)Oil.i.l:;': ;;0:"';·:; :¡::~;¡j(;:;:- th~ln 525°F conGense nnd go out the bottOI:1 of the tOHcr a...ù .. :'-~ (~..:.·;~Ct.11~~tc0 :}..\.~~. ~::~1."l.1u~11 tl1c hC¿lt cAc11¿rnßcl" to cool tl1cln ¿111d 1)rc11c3t tl1c crtl(le comihg in and then ßO ì. íOPPi:b ,þver to the}\crude storage. T' \.Tcrhcads from the crude , fractionator arc those light components which do not condense to liquid until cooleJ ) be lm.¡ 210° F. They are generally called naptlw.s and are collected in the overbcad accumulator~ And oneo the overhc.1.d .1.ccumulator \lith both of thcsc dic:Jcl :Jtrcmn off l~erc (:i..ndÜ:;cerniblo) circul.1.tod the higher boiling liquidG over to the top crude stor~ge. Our diesel fraction containing the fuel we want is taken off the side of the fractionator tower and put through a stripper column. The stripper column operates essentially the same as the fractionator. Diesel fuel of the desired speci- fieations, with a boiling point range from 310 to 525°F is taken off the bottom, passed through a salt dehydrator to remove any moisture content and on into two- 5,000 barrel gas-blanketed storage tanks. The overheads from the stripper, having boiling points roughly between 210 and 310 are refluxed back into the crude frD.cti()n- ator, ,.¡hich ir.1proves that vessel's efficiency. Quality ~ control of the diesel fuel is maintained by regulation of the bottom temperature of the stripper column and the amount of overheads from the overhead ). accumulator that are also reflexed back to the fractionator. The remaining overheads 'ToP'Pe.b are blended with the cool stream from the fractionator tower and put into the .~ crude storage.~ Qt this point now we have approxi~te from our 5,000 barrels a day ( designed capnci ty', He nmo¡ have about 4,000 barrels a day of topped crude combination w T~ ~1...'EÑ~E:b ßP\U(. RC~C in the ovetheadsblcndback. That is about the 23° API gravity which we inject bucl\. into the reservoir and approximately 1,000 barrels per day of Arctic diesel fuel. The diesel specifications are in the order of initial boiling point of 310°F, final boiling end point of 525°F; its gravity is about 38.9° API; pour point -60°f and a vapor pressure of 0.3 PSI. Nmv let us go back and look at the gas stream. Out of the total of approxi~no. tely 4)500 Xcf a clay of gas, some 4,375 Mcf a day come off in the first staGc. 111is volume of (~~::; is processed through a gas conùi tionin¿; plant to make the gas usable. :J.S fu~~l. J 'ì:ìC gas is separated here at about 200 psi and llOoP. Dm.¡n bere it has a ).I',;ì "0-... (11) ") ') " ethylene 31yco1-\v3ter solution mix injected with it to prevcnt the formation of hydrates. This strc3m is then cooled to approximately 10° above the ambient tcmpcr.:¡tuJ:"e; ¿m·m to a minimum of 20° below Fahrenheit. This tends to condense any \ýatcr vapor in the gas and which is collected into the ethylene glycol solution. '.rbe:.: ::¡c.re¿¡Tn then en.ters 'tV'hat we call the "cold, three-phase -,. it is a three.. phase scpat"<1tor." And the overheads from this separator are dry, conditioned [;as. Cor~dcnscd light hydrocarbons can come off the certter and the "wet" glycol comes off the bottom. Both of these light hydrocarbons and "wet" glycol streams are passed ¡~ 'ßlA.. T To through coils ..aftè:. the glycol surge to warm them ~1 principally ~ ~ool-U=- -- the glycol coming off of the glycol reconcentrator, which is a part of the vessel. The "".,etll glycol after this heat exchange passes through an oil skirmner 't.¡herc the oil c~n be skir.~Qà off, comes back and is circulated through the glycol rc- concentrator ,,,here the excess moisture that is collected from the "wet" gas is boiled ) off to raise the concentration of ethylene glycol back up to the proper strength. wl-\I q.\- From here it is returned to the glycol surgc,^also acts as, the heat exchanger and then this is l1m.¡ "lean" glycol and it starts the t rli.p over again. Any oil that is s kim¡ned from the glycol comes from the oil skimmer and then to the drilJ receiver from -ç.,hich it is mixed with any of the light hydrocarbons and this \ small volume, i£ there is any, is blended back with the topped crude (and you have a sample there), and injected. The daily consUiliption of conditioned fuel gas is listed in this little table here to tl1C right of the chart. He currently use an average of 400 Hcf a day in the top¿in0 pl~nt itself. This is consumed by the crude heater, area heat, etc. PCûk use c1ui·ii.1~~ cxtrc~;ie conditions is about 500 }fcf per day. Very shortly, Hithin the next 7.cï1 ~,;ceks,· He expect to begin using from 30 to 50 Ncf per day in the g.:lS condi- 'tio.-.::':,;; l~,1it .:~s fuel, principally for the glycol reconcentrator. And we -ç.¡ill be ~ctiv;:~i,ï.:? our nc\'l b<1se C¿1ti1? which will require between 300 and 500 Ncf a day. This Hi 1::. :Lr:·,~ ~ \.:(:12 t 1ìC çu;)rter s and off ices, '\..;ater p lc1nt, sc,.¡age trca tmcnt plant, '\.¡,:u:cbous,;~, (12) " ) ) automotive shop, vehicle shelter and the walkways. We will a~so be starting up our ) b~se cnmp pOvlcr generation system, ,.¡hich will consume between 600 and 1,000 r~cf per clay of the fuel gas. We are now investigating a gas fired incinerator installation vlllich \<lill be large enough to 113.ndle consumable wastes, and r'd estimate cOi"i,plction c..J 'ì I- 1- of such an installation in about a year and a half and that ~t^requirc in the order of 200 to 300 }lcf per day of fuel. In addition to these uses for fuel gas, we need about 400 Mcf per day to keep the flare burning for safety purposes in case we have a major upset anywhere in the plant. The total conditioned gas consumption will average about 1930 Mcf per day and pe'ak at perhaps 2750 Mcf per day. The volume of excess gas which must be flared is then approximately 2600 Mef per day average down to 1750 Mcf per day during periods G.f\S of pe.:lk consum¡:>tion. These volumes include the 125 Mcf of second stageAand tank vapors. Gentlemen, I would like to point out, in summary, that: ) 1. The topping plant produces about 1000 barrels a day of diesel fuel which is the princ~ple fuel used for the drilling rigs, trucks, construction equipment and for heat in the Prudhoe Bay area of the North Slope. 2. The hydrocarbon liquids remaining after the topping ,operation are injected ( back into the pool from which they were originally produced. 3. The solution gas that is produced with the oil will soon be utilizcà as fuel to the m@{imum extent possible., Ar'lb 4-. AA4 ~t the excess gas for which there is presently no use is being flared ~nd burned to eli~inate a possible safety hazard. Th~nk you. ~'~T"_ 011:"ri:J.l: Thank you Hr. Simonds. l'~'!~. Scot'::: I·:r. Chairman, just to keep the records straight, might I sUí;scst the m~rkins of these various exhibits? ?,~.. n ~"',Il"i"; ell: I ''las go ing to sugges t that. ~~ì~., :~Cr:lt;:: l~'irst ¡\RCO Ex11ibit I \vould be tl1c sc11crnatic drrl"ýling of the ".ro~)¡)i¡~(~ -~ " , ~) 'I ') ). Plant. ARCO Exhibit I I would be the original bottle of crude that was handed to -¡-he Cornm i ttee . A(~CO Exh i bit I I I, the batt I e "ma rked "Topped Crude", and nurnbc r I V , ) ARca Exhibit No. IV a bottlo containing with the label, "Arctic Diesel Fuel". t~~~lJrr~ The exhibits are accepted and marked as you indicated. Mr. Scott: thank you M~. Chairman. Mr. Marshal I: Excuse me, would you repeat your Exhibit 1V? r\~r. Scott: It's the batt I e conta in i ng and I abe I cd "Arcti c D i ese I Fue I" . Mr. Burrel I: Mr. Scott, before we go ahead with Mr. Cox's testimony we' I I rcserve questions of Mr. Simonds unti I after Mr. Cox's testimony. Mr. Scott: Mr. Sta~v~s : Mr. Burro I: Mr. StëJÇ-Lqs: Fine. Mr. Staggs? Staggs. Stagg? I beg your pardon. Gentlemen, the reason we are injecting the topped crude is, of courso, that it is necessary to the operation of our diesel topping plant prior to crude sales ) from the field. I wi I I discuss the injection of the topped crude from a reservoir engineering standpoint. The sample bottle you have marked "Topped Crude" Mr. Burrel I: Excuse me "Mr. Staggs, could you swing your chair around, put your back there ( Mr. StaQqs: O.K. is that better? Mr. Burrol I: Thank you. ~v1r. StaQ9s: The samp 1 e that you have marked "Topped Crude" is the flu i d thõt V/C arc injecting into the reservoir, and the other sample marked "Reservoir Oi III is a sample of the oi I that we are producing. The question at hand is what happens in the "ÎoP Þ.::t> reserve i r when we i nj ect the ~ crude into the Sad I eroch i t Sand. It/e have conduci"ed I~bor¿tory tests with the fluid samples and have done calculations on our reservoir sim~l~tor computer program to answer this question. The lab tests solved the prob!ü~ of w¡~¿r hÐppcns when the fluids come in contact in the rock, and the simulator pro~r~~ Cülcu¡¿",":"c:s v:h;:.t happens on a large scale in the reservoir. First, would I ikû to cc.:.ont on our_ lab tests, and second I wi II discuss the results of our simuléJtor runs. . ,- ( 14 ) ) ') Our lab tests substantiated the- fact that the -two fluids are miscible and that ) no asphaltcncs are precipitated when they're mixed under reservoir conditions. When I refer to' the two fluids being miscible, I mean that they mix in al I proportions and that no fluid interfaces arc present. In the reservoir, miscibi I ity results in topped çr'L;(Jo dj~~p;ìéÌl'(j öll lhð vlr-ogl/î /'"û58rvo/r" 01 that was In tt1..e pore channels the topped crude passed through. In other words, a 100% displacement efficiency is obtained of the oj ¡ in tne rock pores contacted by the topped crude. I also mentioned that no deposits of asphaltcnes were formed when the two fluids were mixed in the laboratory under reservoir conditions. There have been several engineering papers written on this subject. Formation of asphaltenes during tho displacement process (miscible displacement process) usually only happens when the displacing fluids are light hydrocarbons such as ethane, propane, or butane. Our lab tests have shown what happens on a pore size basis in the reservoir; th~t is miscible displacement. I'd like to now discuss w~at happens on a large scale sweep ) basis when the topped crude is injected and when the injection wel I is turned around and used later as a producing wel I. Viscosity of the two fluids under reservoir condi- tions wi I I be about 0.7 centipoise for the virgin oi' and about 7.0 centipoise for the topped crude. I might add that the viscosity of those two samples at room conditions are about 90 for the ~~de and about 30 for the vi rg ¡no ¡I. Mr. Marshal I: Pardon me, would you repeat that last statem~nt? Mr. Staqqs: The visco~¡ty of the samples under reservoir conditions? Mr. ~,1arsha II: Yes. CEÑI\' f>O\SE. r c~Þ6.t:> c. eN.'\ ~o'SE.. Mr. Si-a00s: It's about 7.0,.Jor the I\~ crude and o .7 "for the virgin oil. Mr. G i I b re th : \vh a t was the statement about room conditions? T o~þ¡: b ~~ r. StaCl~s: It's about 90 centipoise at room temreratu re, the ~ crude, and ~bout 30 for the virgin oi I. ') In the reservoir we have a vis~osity ratio of about 10 which is also the mobil ¡tv cOÍl·,-~ìs-i". This in effect means that the virgin reservoir oi I moves about 10 -J-irr,(") f Ie] 5 -;",,: ¡- them 1\ tho. top~~crude in the reservoir for tho same pressure drop, assurnin0 no ( I r; ) ) ') ') i'{' " ~ i ~::~ o~ ð:: I ::e,,:::~::~~: ::~::{;~~~ n I :::::~:~r I ::~. ~ ::::r:o ~:~~ma~: ~ I h:::s ": i ch fow of thesc'out. Mr. Scott: Let me interrupt and suggest that this first drawing be marked ARCa Exh i bit r~o. V. Mr. Durn; II: So accepted into the record. Are thero two of them? Do you want to put one up on the wal I there? Þerhaps so people can see it. Mr. Stanqs: I've got another one here se that you can stick on the wal I. TOÞÞEb This shows the shape of the ~ crude bank as it bui Ids up in the reservoir. The 'V mobi ¡ity ratio of this process is fllO, that is, the ratio af the mobility of the dis- placing fluid, the topped crude, divided by the mobility of the displaced fluid, tho reservoir oi I. When the mobility of the displacing fluid is less than the mobi lity of the displaced fluid, the reservoir flow forces tend to keep the displacing bank radial ) in nature, which I have shown on the schematic. In terms of vortical sweep efficiency, this wi I I also be very efficient. The bùnk of toppod crude wi I I displace al I the virgin reservoi~ oi I within the confining shùle layers of the sand ·interval into which the topped crude is being injected. ïaking an example case of injection of 5,000 bbls. of topped crude per day into 300 ft. of sand for three years, a bank of about 500 ft. in radius would be formed. Now let's examine what happens when we start producing oi I from the field. We no longer need to inject the topped crude into the wel I. At thi·s time, the topped crude wi I I be blended with the normal formation oi I and sent to the market. Let's examine what happens in the portion of the reservoir in which the topped crude was injected, when the injection wcl I is put on production. During injection I~ 10 I ~~\JË AÑ -¡-:1('; r~.,)~)i I ity ratio of the displacement process^, -- :tincorrect statement here, let rne ) corrccT thût.*- During production the mobil ity ratio of the process is 10, and I soid dur¡ns ~ :tS-injection vIas 101:$. It's during production it's 10. I have another SC~K~r.;::jT¡C hurc "~i) i ch I h¡lVC I ôbe I eà "Schemat i c of Topped Cruào F I ow Out of ~'eservo i ,." ( 16) ) (~ ) . -..... r Ijir-. Scott: And \'/e request that it be marked Af~CO Exh i bit ~~o. V I . ¡·1r. Uurrc I I: Accepted into the record as Ar~co Exh i bit V I. Mr. StôDnS:. I have shown an interpretation of what the virgi~ reservoir oi 1- topped crude front looks I ike as the reservoir oi I approaches the we I Ibore. Fingers of virgin reservoir oi I form and grow towards the we I Ibore as the we I I is being produced. Flngering results because of the rather high mobil ity ratio of the displacement process. Our reservoir simulator model runs have shown a volumetric sweep efficiency at break- through of the virgin reservoi.r oi I, of about 11%. After breakthrough of the virgin reservoir oi I, the topped crude wi II continue to be produced in the flow stream until u it i mate I y a I of the topped crude injected will be produced. I havo another graph v/h i ch I have ¡ öbe I cd "Recovery of Topped Crude'l -- Mr. Scott: And we request that this be marked ARCO Exhibit No. VI I and entered into the record. Mr. Burrol I: It· wi I I be entered as ARCO's Exhibit VI I. Mr. Sta9QS: --This graph shows the reservoir model simulator runs giving the percent of topped crude injected which has been produced. Because the reservoir mathematical simulator cannot calculate dispersion of the two fluids as it actually occurs when they are flowing together, the volumetric sweep efficiency, as a function of time and cumulative production as calculated by the simulator, is probably a I ittle low. The result of diffusion and dispersion between the two phases is to reduce the- f low sys tern overa II mobil i ty rat i 0, as a resu I t of decreasing the viscosity of the topped crude. This wi I I occur when the virgin reser- voir oj I is fingering through the topped crude. Instead of the system effective mobil ity ratio being about 10, it is probably around 3 or 4. There are theoretical reasons concerning the relative size of fingers in a miscible system with an unfavorable mobj I ¡ty ratio, for tho volumetric swoep efficiency to be around 25% at breakthrough. r Differences in reservoir shape between the theoretical system and our actual system tend 1"0 lowor -n1e theoretical value at which oroakthrough should occur. I suspoc·t tl1,(Jt ( 17 ) ,~ ) ) \.. r-r actually breakthrough should occur at a volumetric sweep efficiency of somewhere between 1%, as calculated by the model, and a theoretical I imit of 25%. In effect, more topped crude wi I I probably be produced as a function of time or total wel I production than have shown on the graph. Our calculations show that the wel I wi I I have an initial producing capacity of topped crude of about 2,000 OOPD. If the well were producing 100% virgin reservoir oi I, the wel I capacity would be in excess of 10,000 BOPD. There are three reasons for the in i t i a I lower p roduc i ng capac i ty of the we I I, when p roduc i ng topped crude. (I) ^ lower reservoir productivity because of the lower mobil ity fluid in the reservoir, (2) a heavior column because there is no gas in solution, and (3) increased viscous d rag on the cas i ng. In th i s s i tuat i on, we II bore hydrau Ii cs, rather than format i on productivity, controls the production rate of the wel I. The rate wi I I be I imited to about 2,000 SOPO, unti I virgin reservoir oi i with gas in solution flows into the we I I bore. v¡he n the we I I is put on production, we might add perforations in other port ions of the sand to bring the capacity of the well up to about 10,000 ßOPD. This will not effect the ultimate recovery of the topped crude or the reservo i r 0 i I . I have another graph entitled 'tEstimated Flow Rate of ~~I I Used to Inject Topped Crude". Mr. Scott: Mr. Chairman we ask that this be marked and admitted as ARCO Exhibit No. V I I . Mr. Uurrel I: Accepted as ARCO's Exhibit VI I I. ~.1r. S i- ¿¡ ÇJ 9 s : This graph shows the calculated wel I producing rate from the perforations into which the topped crude was injected. I have I imited the maximum producing rate to 10,000 BOPO. The main point on the graph is the dramatic increasc in well producing capacity when a little solution gas from the virgin oil gets into -¡he flow stream. The increase in rate, of course, begins at breakthrough of the virgin t~ rC~0rvoir oi I. Again the factor control ling wel I producing rate is the wel ¡bore hydr~u¡ jcs and not the reservoir capacity. Gentlemen: I would I ¡ke to now summarize what I consider to be the important r :' , ) ) points of the reservoir performance as affected by the topped crude injection.. ---.., (1) There will be miscible displacement of the virgin reservoir oil by tIle topped crude or vice versa depending on whether we are injecting or producing tIle topped crude. Lab tests have shown that miscible displacement does in fact occur. (2) Ultimately, all of the topped crude tilat has been injected will be recovered. Our reservoir mathematical simulator model runs have demonstrated this to us. (3) There will be no reservoir damage as a result of the injection of the topped crude. Lab tes ts have shO\.;n that no asphaltenes form as a result of the mixing and there is no permeability reduction as a result of the two fluids passing thr~ugh the rock. (4) Injection of the topped crude will not diminish ultimate recovery from the. pool. Thank you. Mr. Durrell: Thank you very much, Mr. Staggs. Hr. Scott, do you want to summarize now or -- tlr. Scott: I prefer to wait until you've completed the questioning. l-Jr. Burrell: I suggest we take a 15 minute intermission right now so that everybody could look at these exhibits if they \vi8h. (15 minute recess follows) art Burrell: We will reconvene the hearing now. Are there any questions from the Committee or its advisors, (and its advisors)? Mr. Gilbreth? llir. Gilbreth: I'd like to start off by asking Hr. Simonds sonic questions. }ir. Simonds on your -- the first exhibit that you presented, the large exhibit on the wall, I'm not sure of the number, where you had the listing of the current g~s usage, did I understand you in your testimony in giving the figures that are used currclltly being utilized to say that there's about 400-500 Mcf of gas now being^as t""" fuel g.J.s in the topping pl.J.l1t and then that the other usages that you have s11O\o/n Oil the diagram, with the exception of the 400 Ncf a day for flare safety, that (19) /.....-....... ,,~... ) none of these others are now in operation? c hr. Simonds: That is correct. Hr. Gilbreth: Is the only thing that's Hr. Simonds: -.. .---..- today, today, the only current usage today is the topping plant fuel gas in the plant itself, which amounts to 4-500 Mcf a day. Then the gas conditioner plant fuel, the base camp, and all of its areas and what not and the equipment and the base camp power generation system are within a matter of just a few weeks when we get them activated, so that down through this point here, is a matter of weeks. ~1r. Gilbreth: Now pardon me sir, by that do you mean on the table down through your base camp operation? Hr. Simonds: Down through the base camp power generating system.. That would be all of this down through and including base camp power generation system is wi thin, let's see this is mid :Hay, oh, six weeks - 8 weeks - 10 weeks, this amount of time. until we get all of these items hooked up, activated -- ready to go. ¡\lr. Gilbreth: This being mid-Hay then, you're saying that possibly by the end of July, which '\vould be 10 weeks? l\~r. Simonds: This is a good approximation date. Xr. Gilbreth: Those things would be utilizing gas. Then your power genera- tlon you add 600 to 1000 Mcf there I believe, when do you expect to have that in operation? Hr. Simonds: In the same .period of time. NT. Gilbreth: In the same period. lmd then I believe you testified thc incinerator would come perhaps sometime next year. hr. S:i.r.1onùf': The incinerator is an item that is currently under study at tlÜs tinì.c. The sizing and what no t determination of the equipmen t, it ha"s not -- ~ vIe have not determined what piece of equipment we would like to order and it prob~bly is in í:.lì~ order of a year-and-a-half away. (20) · , ') ) l·ír. Simonds: In ""hat way Hr.' Gilbreth? ) 1·1r. Gi1breth: If the. crude ~v'ere cut to 2500 barrels a day, cut the gas production to 2250 Ncf, you could be utilizing most of the gas. t'Jl1at would be the effect on the diesel market or the drilling programs or something like that if that \.¡e.re to happen? ',.. Nr. Simonds: In round numbers Hr. Gilbreth, that would mean then that there would only be 500 barrels a day diesel fuel and consequently there would be 7 million -- 7 2/3 million gallons of diesel fuel I'm sure barged in from Seattle or other West Coast points to make up the difference. Mr. Gilbreth: Does the construction of your plant require some minimum through- put for operation -- for successful operation? Hr. Simonds: Yes. The design of the plant is such that piping, pump sizing, VA 1-\1 ¡ I\J 6- $Uú-G-P-S-, î'\-\A'T ( )()"indiccernihle~'d() etc. ..t:i:te 2500 barrels a day is about the minimum level of operation that the plant can be run. ) Nr. Gilbreth: I see. That's all the questions I have of Hr. Simonds. I would like to ask Mr. Staggs several questions. As I .understood your testimon~ Mr. Staggs, you indicated that the viscosity T oF'Pe:ð relationship be.t\Veen the crude from the reservoir and the ~ crude was such that you have a mobility contrast of about 10 and a mobility ratio of about 1/10 and then as you start reproducing later in the life cycle th~t on reproduction the mobility ratio would be about 10 there. Hr. StaZ2l$: Yes. ,~ :'lr. Gilbreth: Your theoretical -- well your computer study that you madcl\whcre you get the volumetrical sHeep efficiency of 11% --:- '/ E.5 Sté1Sßs.: r ~ -r- b\Þ Gill)rcth: 7' Q.4:-tl you assume idealized situation there so far as the 1'~r . :·lr. } rc~~crvoir is concerned, or did you actually assume reservoir rcscrvoir p3r~mctcrs based on actual field data? (22) ) ') ') ¡"1 r. St;J3.13.S~ He ha<l the average field data. nr. Gi.lh re.th: And this was ,.;h3. t was used in the studies? Hr. Sto.C,(lS: Yes. ~'lr. CiJ.hr(~tÌì: Hh,'1t 'lhout vertical :lnd horizontal efficicncy factors? 1~lat kind of factors <lid you use for that? Hr. St8.Z~s.~:; The model run í,-las a 2-D model with the with only one cell ,~~ AT GO -~ model calculated a sí,.¡eep efficiency Abreakthrough of in thickness. The E~~\lF-'" ( **indiGccrniblc** ) percent. From the theoretical studies that we have on it, 01\\ p.. .~ 3-D basis, this number should be 25% or less. We felt that the model results oN 2ave us ,í,vh.:lt 'WC £(211; '''.:13 a fair representation of what the reservoir í,-lould do ~ OF THE.. production because ,t-f:l.e theoretical limit that we have had on í,,,here the breakthrou8h should occur. Hr. Gilbreth: I sec. Hell, nmv if I understand your testimony then, your model s~~£þ M ) gave you a (~* ~ndiÐccrniblêw* ) efficiency of ll%^breakthrough and your theoretical 3-D calculation gave 25% -- l':r. Staf,Jl5 -- 25% élnd \VO think £omcwheie -- Nr. Gilbreth: -- I see. Now,- from your Exhibit, Exhibit No. VI. ¡-Ir. S t ag.z.'!' Yes. Mr. Gilhreth: After you get breakthrough of the reservoir fluid, isn't there a likelihood that the injected fluid would be bypassed and left in the reservoir in these large blobs here? }¡r. S t <=lŒ$ SOLle of it well it IS going to be bypassed to the extent that the ligllter oil will finger through it) but with time the size of these areas is C:rOIÑ& To j~ goa:ia shrink. That ok),....-....... it I s still mobile in the reservoir and as the pressure is lowered or as the well is produced the banks will eventually shrink and oil wi]: be ?roduced. (23) ) ) ) :-fr. Gilbreth: This -- I grant you that this will be for an idealized situa- tion but is this likely to occur in thc reservoir where we have some stratificD.tion such as we have here? nr. Sta(li.s: I sure think it will. I think that the dispersion or diffusion M() bË'- that \Ve clon't have built into the thinb though is going t..o take care of a lot of /3A N ìC.. \$ it. There is going to be a lot of mixing bet't,¡een these two thiflgS as these fingers come through and t:Ji..a.t what this in effect does, I talk about this probable mobility contrast of three. That when you have the dispersion of the two what you .""\ t-t'G. '1: ~ :S"E:.c:-, €..b in effect· do: is make the viscosity of thi3 injcctivo crude to be maybe 1 1/2 or 2, rather than 7, and then it's just a little bit different than the virgin reservoir oil and ~t it doesn't flow quite as viscuously as it would if it c~y wasn't mixed. Hr. Gil.breth: I'm sorry I didn't catch in your original testimony this contrast figures of 3. ') Mr. Burrell: Was this due to mixing as you inject? \-\AS ivIr. St¿~2:.r.L:S·: Yes, this iG -- Øur R and D1~S, ~ done theoretical studies on ~1" the ~~rcct of dispersion in miscible systems and that its effect is to actually give ¥ou ~n effective lower mobility contrast than comparing the mobility of the t\,¡o rau :J.uids. ++ That the effect of the dispersion is to equalize the viscositic~ in the reservoir. ~ they get closer together because of the mixing of the t\.¡o. ~r. Gilbrctll: In this particular reservoir, this particular injection well, are you lil~ely to encounter any 'vater drive? ::r. SL~~ It is possible the reservoir can have one. :·lr. C:'..~:)-;:'è~¡'l: Hhat -- Well if you had a "later drive at this particular ~)lé'l.:-.; tll(;r',.,; ,,·,'ould be a rcason.3oly good likelihood of considerable bypassinr, tlicn \JOU~,-..: It .: J. .1....., (~\'¡Q to the differences between ratios non-miscibility? .1. S:-;"~(~$ If the wüter 'tv3s in this ':1rea, c::¡y tn3t there ,,¡ould be, bl.:l t:ìC: --- .-. "_.' ...-~ \..;~:..."::':' c':lj~.c is ....:ct.ually pretty \.;ell re¡ììov~d from where 't'le arc injecting. (2~) ~'lr . Gilbreth: ) Oh Hell, that is \vhat I'm getting ) at, r'm not going to question Thank you then. ) I believe the -- about the last statement you made in your testimony r'm ~;orry I didn't unders tand all of it, I would like you to repeat or clarify. I thouGht you said that there would be no pcnneability reductions in the formation as a result of hot crude being injected, was that correct? l\lr. Stagg_s Yes, \oJhat we did was take some rock samples in the labora~ory and drive these t\vO fluids through the rock. \-lhen we measured the permcabili ty it was the same for both fluids. There wasn't any inter-action of the two fluids that could cause the rock permeability to drop, as because you change the composi- tion of the fluids going through it. PIC-,. \..1 rt:\ ¡,.. Hr. Gilbreth: This was based on l~ck of reservoir samples? Nr. Stag~; Yes. Hr. Gilbreth: I see. Okay that is all I have. ) Mr. Burrell: I have some questions of Mr. Simonds. Can you tell me approxi- roO. tely -- what pcr··ccn tage of the 1,000 barrels a day is being used by ARCO? Not sold to others, I mean what % is ARCO using? Roughly, on the average. I know it varies from day to day and month to month. Hr. Simonds: I'm going to say that it is -- just a minute I think I have it Hr. Burrell: A thousand barrels a day of diesel I'm talking about. ~lr. Simonds: I estimate Mr. Burrell that Atlantic Richfield is accounting for in the order of 60%. :i'lr. Burrell: And the rest at least virtually all of the rest is sold to other oil compo.nies operating on the North Slope? : 1 r . S j:;~ 0 n c1 s : Yes 8 i r . -- ¡lave you any idea of what the cost would be and what the time ~'~r. ljllT7"C].l: would be on gettinG compression equipment in that would inject the casinghead ~aG (25) ) ) it true? Hhat are we dealing with in GOR there? Is the gas/oil ratio different ) in this new well, if there is going to be a new well used? Do you have anything to say on that point? Mr. Simonds: In general I think I'll pick on one of the middle questions first (lau~hter). Yes, it is true that "le are studying tIt-is possibility, and from that point on I can't say. We are considering it, we're looking at it and that's about as far as I can go at this time. Mr. Burrell: The Sag River Well I don't believe has slip-joint casing in, or any permafrost protection equipment. It has no insulation, no r~frigcration, no slip-joint casing and no other means of preventing damage from permafrost on production. Have you had any evidence -- if it first -- is this correct? Mr. Simonds: Par.tially, sir. The Sag River well does not have slip-joint casing but the (b) part, it does have tubing strings and those tubing strings are ) insulated. O.K.? Nr. Burrell: Okay. Mr. Sifuonds: Fine, next point. Mr. Burrell: Next point. Have you detected' any evidence of subsidence arounà the well as a result of the production in producing? FE 1::- T Perhaps 7 or 8 miles of the Hell? NON\,c~ c.l-O~'-' Er. Simonds: No, Sir. In fact, just the contrary. 'ole ('1ck indicccrn.:1blc **) the operation of the well itself and it has, as you might expect of steel, the tempcratures have increased, it has grown rather than subsided. Nr. Burrell: I mean the ground subsiding, not the well subsiding. }~r . Simonds: Ri¿;ht, and the ground itself has not subsided. l<r. Dllr'rcll: I don't have any more questions nOH. Hr. Harshall? " 1vb rs Ì1.:1J.l : Yes, I have questions of both Hr. Simonds and Hr. S t a g{;.-<' ¡.¡ r . I.';r. Simonds I believe that you said the minimum throughput of crude in your toppin~ plant was J0si2n capacity of around 2500 BOPD crude. (27) ~ .1 ~' ) ) Hr. Simonds: Hay I answer right here Ì'·Ir. :\101:'8h211 : I Yes. Hr. Siconds: -- to a part of it, Hr. Narshal1? '\":' i:t h3S of the N '6. <:...E. $: S , \: 'f Fin;t off:, tho plm1l: dcu:tgn :f.~ at; 5.000 nOPD aG of opøt'ati.únnl <)'<*indincr.~tT'¡L:1,.~ ;"'-). La LV ~(2.. LIM\ l' wE. THlfvK... ~ approximately 2500 nOPD (**indi3ccrnibie~~). This is not a design feature PU~N'T L-.iKE~ ("ldcj.ndi::;ccrnible:"c:") and if you will, -'- .~ it to the throttle of an i'luto- mobile. It docs not have a 2500 - 5000 BOPD throttle. Hr. Harshall: I see. LON TI N U. (:) u "S. Nr. Simonds: It's essentially a ("H:indi3~erniblc**) process that is designed for 5,000 BOPD. Hm·/ever, we believe that it could be operationally possible to come dmvn to about 2500 BOPD. Mr. Marsl1all: I see. Now do you lose efficiency or does it just plain not tvork at a reduced throughput. Is the efficiency operation the thing which limits ) the volume throughput or is it that you need a certain amount of fluids through there and the pumps and the line capacity and this sort of thing just tapers off at that point. Mr. Simonds: I would suspect that efficiency is going to be the best at designed, t'lhich is the 5,000 BOPD. Anything significantly helm" this, which 2,500,... 3,000 barrels per day would be, would be less efficient than the designed rate. Belm..¡ this ômouì.1t,and we have our expert estimating that this \'lould be the approxi- mate 1m}, belm.¡ this limit your pump sizing, pipe sizing, úcat exchangers, your furnaces, etc. \.¡ould just no longer DC able to function \.¡ith a lesser volume. lIr. Marsh~ll: You mentioned that your current production of product, &bout 1,000 ~OPD is -- well that is your production. Do you anticipate that this prodi....:.::ion, the ~cc:·..:~I'Cl~lCllt for product on the ~orth Slope would be reduced \l:riï¡;:, ~~llC ,',;;-Üu:3 year? ¡~S oP?0scd to the year th;.~ Hc've just been throu;;:l, \vith all tììC ~L ,__:.. ':: JrilJ.in:~ CJ,ìh,¡ before the big lc;¡sc ~¡~JI.\'t (28) ?-fr. Si.rnonc1s: hre L'~en't tried it yet. Here today )ve used that 50;~, factor- ) ing it down, but I mentioned tl13t I would suspect th~t we might lose efficiency in "HI~' coming from the designed rate dmvn, so that i~ might not be quite -- ·thig ic may not he anythinG to gct-- Hr'. H;l rs h."111 : {e.el Could you give me a f~d for the relative figures on the flared cas inghc.:ld sas if the throughput change from I, 000 BOPD to 50<1? Hhat ~.¡ould be the effect on the amount of gas flared at that half Mr. Simonds: -- the effect? Well, I feel quite confident that we could essenti- ally cut back and handle it ~.¡ith 2250 Ncf a day. That if you bring that through and look at these nur.iliers under peak consumption. periods here there would not .be enough gas and under the average consumption there would be enough and at the same time that would mean a -- it still means that there will be gas flared to the extent of the topping unit flare itself, and this is a safety flare. That in terms of a major upset in the plant, when something critical goes wrong with the process, we ) must provide for a safe method of disposal of some oil, hot oil, diesel fuel going through the process and the only \.,ay to insure this we feel is by having the pilot light, so -to speak. Thank you. Hr. Harshall: But 11m-1 v.~hen you pointed to the left hand side of the map you were talking about a casinghead gas production ~lich was lets say from your initial oil feeder there, in other words, that casinghead gas pr.oduction plus the casinghead which would come off from the plant operation would still leave ybu with a plus figure. Is this correct? Do you understand my question? Hr. Simonds: Yes sir, I believe so. And unless I'm wrong in my arithmetic, tIlis total figure would be 2,250 and this figure here would be, call it 2,200 -- I d6n1t want to get tangled up in halves, and 2,200 when you match it here fits lÚ bctHccn. r.i.'lìcrc \.¡otÜd not be enou~l1 to acc01~1:nodate the peal~ consumption rate. ;·;-c. :<,::ì1~s:-: -~Jl: I see, bu t ncn.¡ coul¿n 1 t you jus t borrm.¡ some frot1 the 2,200 (ì.1 t!1C 1(: f t ::; ~ ,:,~ of your f 10H diG.~rar.1? I Y.:.èan your nc tope rû.t ion is s till goin~ (30) } ) to end up with excess of flared gas. Is this correct? ) Mr. Simonds: No, Sir. Ì-'1.r. }larsh:111: It is·not. Mr. Sireond~: No, Sir. Mr. Mnrshall: In other words you could -- 11r. Simonds: -- the 2,200, if I understood your question properly, the 2,200 is the total that vIe have to begin '\vith. Excuse me please, 2250. At this point coming off here it is the fi~st stage \vhere the gas separated from solution in the first stage at the 200# and this would approximate the 2200, just under 2200 Hcf, after vlhich it goes through the gas condi tioning unit and you come out wi th that same 2185 or \Vhatever it is and that is the. number that fits in here. }1r. Harshall: I sec. In the event your plant '\'las closed down for any reason, let's say temporary -- a temporary SllUtdown. Hhere ,.¡ould you get the gas which you'd use for instance to ) heat your cre\.·¡s quarters -- these things that are programmed? Hr. Sil~ìO-:1cls: This is .a scheduled shut dmm for some reason? Nr. Ni1 n:jÌ1:1J.l : Yes. Hr. Sír,]()¡!cìs: And these volumes ,,,ould not be required. This volume ,-¡ould probably not he required so that we arc now looking at these others for heating, L.\ rË. li£ht support) power generation and this type of thing. I would think that it would be a very siQ?le matter to produce the well and the oil and hence the gas, fire tllis unit which is this volume, condition the gas, take off the gas that is needed for L-. \ \= E.. power, liS::~ support, heat, water, sewage, etc. and then inject the crude itself back i~¡;.:o t~i.C \·;cll, \.¡ithout topping it. In other words, '\vhat I'm sayin8 is jU[;t bYpi1S:"~;:~L~.'-j sys t(~m here. ----- Right. '5\" P\ c--&-S I have ¿¡ question for Hr. Sl~~ßgs. \';e have a sa¡-;;;)~ (! ~. ~ :~. :< . -: ":-:~ l-~;-; i. 1. : oft: ì C V:1:-::: ,ì"-.l:"; the crude input an(: thc t()ììì)cd crude and the ~\rctic diescl jtil:L l)~~od'Llct.. C:·.....lci. you supply us wi th a similar sample of the residual fr~ction '! . , (31) ) ) $'''n~~s Hr. h1~ ;"( ;:~:-.:. That is ~ the Toppl2d Crude ) Hr. :J:J.rsh;¡ll: This is thQ stuff that goes back in the ground? ~TA~.s S k :ì_::.u; ~ : Yes, after thc diesel is taken out. I,'í~r . :'1 r . S i ~~m n cb : Hr. }l<1rsh::1l1 that is the sample from the topped crude storac;e --._--_.. -~-~,--- vÚÜch has the higher boiling point off of the bot tom of the ~rude fractionator to tvhich is then blended the overhead napthas, ext remely light low boiling point. And that is the saìilple that is marked tlTopped Crude". Mr. ~~rshall: I sec. In other words this contains the fractions higher than the diesel, the higher boiling point fractions as well as the lower residual. Tl1is (both talking simultaneously) I ,thank Y£. ~~V~ hct{ ( MR. (. ..... t'....!>...... 1;.;¡~,~t2;w. I -- this is just a very general ques tion and I -- 1-- don't knm.; to 'i.¡hat extent it applies in any reservoir, much less this one, but there -- there ) apparently is a specific gravity differcnce, there obviously is a specific gravity difference betHccn the injected fractions and the virgin crude. What's the possibi- 1ity of. a gr~vity separation in the reservoir of these two? =Sl~ G.-6-~ ' F\~' ~~ \ l'Jr _ S\;:~:.::.:.:.: The gravities of the t'ivO are about 26 1/2<1i\and 23 1/20 and the density I\. of Dotto.n hol~ conditions is going to be a little different. I don't think it is ¡~ going to be different enough to cause any real gravity segregation &f the reservoir. Ii In the rcscrvoirAis a pretty slight density difference. K::-. ~'l.:1 ::.; ìì all: I see. :'~~:-. S i j: :i:lí..~S : IIcrc if I may I would like to call on my experience in \-!i1.J.t 'VlC have si~~d i~ other things completed. It usually works out to be that if you want it on ~:.<2 :'~l)'_-"::' Sloï1c and in that distance mvay fror:1 \-Iher\:.: it was built and all of t;l C C ~ ,,- ~ Tì :'l~:"¡ J~ì-'-::'; you have \'1i th it, the bi¿;gcr single uní ~ s iZè you have t;¡,~ 1.10 r c ) «f~.,:: .,:: C""'"'~':Lion you have.. (ir:.èi~crnj.bl(.¡). OPT \ M \ 2...P..i\Ct<J The process operation would b~ ~C0~>" ..c. 0 ~.:., ~tc. : ;.1.- . ; :/ i ' ~ - ~ - \...' 11 : So you're sayínß --------'-...---- (32) ') .Î'Ir. Simcmùs: \';Ì1at I' In saying is that in mas t any sys tern that you \.¡ould des ign ) it is going to tend to be the largest unit size that is feasible for w1latcver parti- culLlr process Hr. :Burrcll: The least number of units dr. SiLlOndr>: T:1C least number of units -- the larges1!':'. Hr. :Cut'Tcll: ----- ~\TC have some tes tiroony at the hearing on the field rules for Prudhoe liay last [all which indicated there wrirc some wells, I believe they pro~uccd in the -- \·;cre produced from the Kuparuk River Pool, Hhich had a capaci ty of -- a producing capacity of around 1,000 barrels a day. Would not, particularly in the cases where these migllt -- some cases they rnisht be small fields -- wells that 5ize-- might not this equipment that we're talking about here today that would do this job, mißht it not be suitable in such areas? In other words, mir;ht there not be a use for it i~ the smaller part of less productive parts of the field? ) Hr. Sim()1.¡d~): Hr. Burrell I Céin f t really -- if the ans\vcr \vould nr. Bur~~cll: I realize that -- it is a difficult question. ~:r. S i1::onds : -- found out. I guess if I could be allowed to make the ultiQate in generalized statements, there is bound to be a use for this piece of equipment SO¡;1C\\I¡'¡Qre) sometime. " ~"~r. l~l:rrc 11: Thank you. Hr. Vonderahe? 'STF\ü-G-6 ::r. Vondcr~he: Yes. }1r. Sl:'.Jgt;G isn't that permeability figurc that you gave -- Here ~~lCY -- \~'ere they by an air pcreaweter measurements in determining the air pcr- IDe&bility, or a fluid? Sl"A ú-C-5 ~·ir. S ;~':-~:'>::~): .:\r8 you talking about the permeability measurer.1ents \.¡e made an- T \-\ t.. XO<:"K ~ÞrMPLE- S ~ I did~lt de tile actual sand measurements but they were fluid measured permeabilities. . , . E ~ . :- j~ (\ 11 : ~·~r. Sr:-:ith? . :. ~- . ~~ :'~ ~;, Ie ~~ : Yes. }ir. Si¡:r;onson, on the opcro.tion of the topping pLmt up ~::l':-C, --...-- ¡j,,'.."-.: you O:l,~·.t;;Lc<.Ì the: p1..:~nt at ot;1cr th~ì~ì tbe (~c~i;),ncd thro\l;',h;1tlt of 5,OOO? .'.!.. ~·_:j::~()~~LC.¡~'~: Yes at sorncti1in(~ sli.~~·~itlJ' ll~ss ~n~ l)y sli:,~~¡Lly less a 20>.~ 11~~J~~\ (33) ) ) perhaps, it's this order of magnitude. ) ~'îr. Smitb: For '\vhat purpose Has it reduced? tir. Simonds: The crude supply is somewhat well it doesn't consistently stay up to 5,000 barrels a day plant design~ and I suspect that our average if you averaged it out barrels per day over 180 days or whatever ~le plant has been on, it's less than 5,000. Hr. S,;lith: You're talking about well capacity? Nr. Sir:l0nds: And operational capacity, the two put together. Hr. Smith: Can you be anymore specific. Mr. Simonds: Well if you have the hydraulics and the valves, the meters, and crude storage and one thing and another in addition to the well. Mr. Smith: I'm sure this is becriuse of the designed condition of this equip- ment relative to -- or I would assume it is from what you've said about the productive ) capacity of tIle well, I would think there would be no problem other than the equipment. Is that true or not? As far as getting more than 5,000 -- up to 5,000 a day out of Hr. Simonds: And John has also reminded me also the particular rate at which the diesel is being sold also has this effect. J \ Hr... S td~;gS : I '\vould like to answer the ques tion about the capacity. The Bct>b 0 capacity of the producing end of that well is more than 5,000^ It's not a whole lot more because of the \olell bore hydraulics, but it is something greater than 5,000. }lr. Smi th : Of course I understand that we're producing from just a portion of the reservoir in this \VeIl and reinjecting it into another different portion. Hell I ¡lad a qucst~on 3S long as Mr. Stagg entered into it that might apply right here. In your .J.ssu~~T>tion) on your perameters that you used on the reservoir simulation, as far as prodl..c::'~~0) I assume that you \Jere -ucinz; tho same - producing from and only frOììl ti1~t iní.:ci"v<11 that had been injected into? (34) ) ') CAS-E. I·ir. S_t.:1(~;;s: ' Yes, that was the (indicccrnible). ) Hr. S1:1Î th : It ·\7ill be ltIlat was on your model study? ). ',~ ! La... . S"t ~r,r:S : Yes. Hr. Srnith: In practicality and in reality will you produce from the well that ---..-- Hay \ol~lCn the ti.me comes? ¡·ir. Staz,r;s: It will probably depend on the capacity. I think we'll probably add enough perforations to bring it up to 10,000 barrels per day, when 'vè turn 'Hi:. IÑE...I...L ~R..OL(lvb, .(,indiccoD1iblc) . Mr. Burrell: Initially? Mr. Stag~s: Yes. Hr. Smith: Okay, when you do that then \A)'hat happens to your ~c f ar ~9 YO'.lr return rate and the residual oil that has been put back in, as far as getting that out? Hr. Staggs: It 'viII eventually all come out. It 'van' t be quite as fas t as ) what we've shown. >lr. S111i 'c.1ï : Hell it 'vouldn' t be anything like what you' ve shown. Hr. Co"'.... P"')"'" ()- (..;,. . L)'-"'J'I.oJ~ \,7ell it ++. IA..) II-I- ~ c. c::.. c- 0 'S 1::... . l·lL. Sl~1í t T"i : l1ith the mobility ratio of 10 and you open up more productive intervals or more producing capacity there, won't it all come practically from the other? tIr. C"{_.,, ryr1 0\.......,..~..~ 6'V ~~ . We would add only enough perforations to make up to lO,OOO~ I think what v~'ll in fact d~is test the well and see how close it is to 10,000 when 't-\~s Õ; e-OD \'le start,t~lù:"C':J I'he 2,000, of course, that',5 a vari.ation and it mißht be a -§fl,OOO or it caul\..: l)12 1,000. nut we're not going to add enough perforations say to ma:~c ~~" the Hell ì;,~r~:,-_ ':-1 capacity of 20,000^so that all the oil would corne out throu~~h tilc pcrfOLi:::cd iiì::crvals. ) Jo . "I, .. ~; ~~ i ~~ l1 : I understand. \,That you're saying is you're not going to li1~1Í t yo t, L- ~J elf t 0 2, GOO a ¿ a y . (35) ) ) ) Nr. S ta~:~.$ Ha vlotÜd ~Hld orlly 'enough pcrfor.:1tionc ....~'- I think ",hat '\.V'c' 11 . in fact do is test the \vcll is to 10,000 when we start, there's the 2,000, of course at's a variation and it might be a R. ~?E.P\\ 54,000 or it could be we're not going to add cnoußh perforations s~y to a capacity of 20,000 so that all the..oil would come out tÌ1rou;::;:. interv::11s. Mr. Smith: I undorst~nd. \fuat you'ro saying is you're not going to limit yourself to 2~OOO ~ day. lIr. Sta211: Probably not. Mr. Smith: Back to Mr. Simonson. Having to do with the capacity of the . plant and the throughput, notwithstanding the approval use of the plant, just fror.l ARGO's own standpoint, how long do you propose to use this plant? Utilize this plant with the maximum throughput? }~r. Sir.ìOnds: As long as there is a requiremen,t for 1,000 barrels é1 day of ) diesel. l'i 1:' . S!:1Í tll: Hhat would be your estimate as to that length of time? Nr. C . 1 LJlmor.(,s: Probably, oh for 1,000 barrels a. day, well I don't knm.¡, I' In probably talking in terms of 5-10 years that that volume of fuel would be cOllsumed. HC. Sr.1Í th: Then even though ARCO' s only using -- probably only 60% of this no\v, do you expect so~ewhere in the future utilizing all of it, or are you talking Qbo~t the use of tllat 1,000 barrels a day for your own use of for the available market? Mr. SiQonds: Totals, Sir. ::1~. S,ai th: Total) and on the plant safety pilot so to speak -- on the flare, is there to your knowledge any other systems which could be utilized such as, well do you know of any other systems that could be utilized for this purpose t¡1~t. ) ,./ \10ü.l L lJt2 S.J. f c.? (36) ) ) ¡-fr. Sj.moncls: The topping plant, that itself I believe is in the order of ) 3 -- I am going td say 3.6 million. ~·jr. Gilbrcth: Hr. Simonds can you Sivc us any idea of what outside the pl:J.nt -- uho.t a gallon of diesel oil costs on the North Slope? . _./'-~.-.,.~ ---tf'-~v\:;-' 7'ir. Si1ì:011ds: Pardon me? Mr. Gilbreth: '~1at would it cost to ship in a gallon, of diesel oil or a oarrel? rfr. SiQonds: A gallon of diesel fuel barged in from Seattle is going to cost you in the orùer of 50 cents a gallon if you barge in enough if you barge in enough to -- and I'm thinking of a significant volume now to supply yourself for some length of time, . and you'd have to provide storage, pillow tank type of Rbb storage for that type of fuel and then havc it in a storage cost'because the pillm.¡ tank may have a life and so forth and so on. It is going to cost you in the neighborhood of 50 cents a gallon barged in from Seattle and stored. ) Mr. Gilbreth: I have heard the statement made that during periods of short supply up there -it has cost as much as $1.25 a gallon to fly it in. Does this sound reasonable? Mr. Simonds: I believe that might be an estimate at the very high end of the scale. This is floHn-in fuel that is purchased in Fairbanks. That 90 cents to $1.00 a gallon is probably about the average going rate of what you could get fuel purchased in Fairbanks and then Hercules transported to the Slope. Mr. Gilbretl1: There is quite a value an economic incentive to your company to oper.:1te the plant then from the standpoint of having the fuel readily avail.1ble Hl1en you need it, as comparcà to having it shipped in and the long delays there. ~¡r. Simonds: Yes sir the -- if the --well if you will, let's go back to before tilC pLlnt started operations and move that point in .time to say today \v'hen tlìillSS arl2 not quite so ì~c.ctic, pl<:mning can be done. I believe th3t the fuel \·.'ou:;..: ;)l~ 1)~-,-r'l,_1 .:1'1 L. (,.J...... ¿,:'I u_J.. from sny Seattle or otItcr West Coast ports and laid. down nnd . " (38) ') ) stored Oil the Slope on about an annual supply basis and this would result in about a SO c~nt p0r gallon fuel. l'';r. Gilbreth: That is all. Thank you. ;;ì~. T.·lur.1·~:11: I bavQ an additional question along the Dèln1C lines Hr. Simonds. \'~11cncvct' a COí:lp<:ìny goes in to a proj ect of this magni tude theý a1\'18Ys figure a payout period, an amortization period or work, out an amortization schedule, c¡¡pital cost plus operating cost and all that, any idea of what your economic life here is on that basis? In other words, what was your payout period, assuming a 1,000 barrels per day production like you're producing now? Has it three years, seven years? Mr. Si~onds: I believe the project life was within the order of a dozen years, as I recall. Mr. Burrell: So you'd have to operate it for 12 years to break even. ) Hr. Simonds: Yes sir. l':r. Burrell: Right. Does anybody -- Hr. Smith? Hr. Sm:.i.t:h:- Yes? tIr. Staggs I had another point that I wanted clarified. YOl,,\ ~. stated that the reservoir test results 'was realized from using On the. average reservoir data. Is that right? ¡'¡r. S t (1)lr~.: Yes. ~:r. Smith: And ,vas this data compiled from this well only" or from other \vc11s in the field? 11~~. StaS2: Other \.;rells also. It was an average of a lot of data points not specifically from this well. :··;r. Gi]hrcth: This is Gilbreth. By utilizing data in this manner, if your cO~;).:ï;¡Y ci.osc ~o change injection Hells do you feel that the study or the calcu- lations l~at 1¡ave been made will be representative before some other well also? '~ 1.\ :.;~~. St':l.:::.~: Yes, I think so. (39) ) ) Hr. Durn.:.ll: Are there any other questions from anybody? Thank you very much. The Com:~Üttcc and its advisors have no further questions, Hr. Scott. I'd like to ask is t11erc ~nybody alse here first who wishes to make a statement? If so come up to t~c front row I guess so we can pick them up with the mike and then after ~)t¡.ttC¡,'Qllts or- testimony eithcr one, if there is any question~ of anybody and that includes the people who testified can ask questions of the people who make statements and vice vcrs~. Does anybody wish to make a statement or testimony come on up and identify yourself for the record and proceed. Apparently there are no further questions from anybody or statements? Mr. Scott did you \Vant to sum up or did you have something further? Mr. Scott: Just two or tl1ree minutes. ~lr. Hurrell: Yes, ~ir. /If , Hr. Scott: There are a few things that -- a few facts, ideals, concepts, A2.~ Aì-R.E..ÞI~' KNDl'\)I-e:b&E. .- AN~ o\.d~,s - problenls^that are I'm sure^\vithin the Committee's dominion and I'm sure that \ole' re .J 8\..¡ara that for these reasons they may not, you know they normally wouldn't get to the record. For obvious reasons I think they belong in the record. This is a public hearing and I believe that these matters belqng in the public record so First I want to mention a few things about a bridge that we mayor may not have to cross someday. And that's the question of whether flaring will generally be pcrmi t ted or ,-¡hather to wllat extent flaring will be permitted when and if, -- that's a terrible word -- strike the word "if", when the North Slope goes on pro- duction. That is for market elsewhere. Depending on the TAPS project among other thin~s. In that regard and you b rough t some articles to our attention that mentions -- th..:lt point~ out the fact, that there is an obvious demand for gas in the "IO\o/e r LIS". L~ig:lt nO\-1 nobody kno\vs if, how and ,,,hen, the gas from the Slope 'viII be mar- kctc'c: , out in th¿lt. connection I can tell you that as you already know and I' think it bcloiì.~s in this record, that many people are enga~ing and many of the producers (40) ) ) there, the operators there, are engaging in -- I think it would be safe to sny ) rather frantic feasibility studies to arrive at these conclusions, as to \vhethcr inj ectlon prograras will be follüt.Jcd and to \.¡hat extent -- whether the gas \ViII be marketed and to what extent, and whctl1cr one or both of those methods of utiliza- tion Hill elim:i.nate thc \.¡hole ques tion of wllether flaring \-fill ever be necessary and to what extent. In that connection for example, the president of our company has said that cumulative drilling results confirm the presence of vast quantities of natural gas on the North Slope. Several groups of companies are already enßaged in studies to determine the feasibility of bringing Prudhoe Bay gas to the mid- continent as early as 1975. He feels that gas will unquestiona~ly be brou~1t to 6- market somcday. John W.;;endron, vice president of supply and transportation for our company, wÔ.s report~d to say in April 27, 1970 issue of the Oil and Gas Journal that a -- for example, a so-called piggyback natural gas line from Prudhoe Bay Field ) has been discussed and studied as a possibility. Piggyback of course to the TAPS line. Edward M. Benson, Jr., who is head of our exploration and producing of our entire north America producing division has said -- has acknowledged the fact that there élre tremendous quantities of gas ín Prudhoe Bay and that we intend to make ( gas frOl)1 these finds available to the gas hungry "Lower 48" and we are actively exploring alternative possibilities including that of participation ~.¡ith a group of producers and gas transportation companies in a definitive research in pipeline fcasibility studies. I mention all of these publications and reported statements to point out again -- I realize I am pointing out the obvious to you and yet perhaps not pointing out the obvious to the public record, tllat we're very mindful of the ILlct th.J.t there is a demand for gas in the "Lower 48". He hope and many of our ¡)(:oplc of course fully expect that this market ~.¡ill eventually be served by the ì~;~ r~~(:.:: ~.Il'l ~:lC r~or th S lope and for th is reason -- ,.¡e unde rs tand the rule rcqui rin;~ t:h2 sì¡o,vinr; of operational necessity before any flaring, no matter hO\.¡ minute, :i.:; l" l.~ riol_L t t:ed. Dlì. t I tbink I \.¡.:¡ut to poin t out, <:md I think it should be pointed ou t ~ì.:': tllÍs lim(~, that the question before the C0I111ìlittce. no\.¡ in my opinion h.:1~) absolutcly (~) 4-, ·. ) ') notÏìin~~ to do \V'ith the ßrcatcr question and greater issue. of whether flaring ) would Bcnerally.be penlitted on the Slope, ~hen production begins full scale production, begins. There is a difference in purpose, in concept, in tcrms of public benefit. There is a difference in wl1at we're asking. Frankly gentlemen, if you grant our request as a result of this hearing, we will never come back and say O.K. that's a prccident, that's a crack in the door on the flaring question. !\S you vlcll knm.¡, and as the record shO\..,s here I think, in fact I'm sure that it Sl10WS in this case that the purpose of this topping plant, the purpose of the product from it, is to aid in the exploration and development of the North Slope. ^t this stage those are the only two stages of activity on the North Slope, explora- tion and development, ·and that's the sole purpose of this topping plant. He' re at th~t staßc in my opinion -- it's comparable to on-lease use of gas in one sense of the \>lord. If and vlhcn we -- there I go again with that word "if"" When we reach the full production stage, it's a whole new ball game and we realize it. I simply ) am afraid from the -- on the basis of the two letters you read for example, by two gentlemen who chose not to attend the hearing itself, that some people have the ~eeling that the Committee is no\.¡ taking a step, or I mean asked to continue a step already taken, that has some reflection or some relevancy to the issue of whether this flaring will be per~mitted on the Slope when it goes -- ~hen the field goes on full production and in my opinion we're talking about two different animals and we're talking about oranges and apples and they're not the same thing and I'm bending over backwards here trying to make the record reflect that. In fact this morning I even scratched out a stipulation if you want to call it that in fact I will call it that. I will unilaterally make the stipulation at this point, that Atlantic Richfield E.XPRE..SS L...' '*' MP,-, 'EbL'I) Co¡~pany does not and will not, \.¡ill never, cxprccG or imply th3t, contend that, this 11caring or the Committee's decision in this hearing will either as a precidcnt or ) nny otl1cr J.c~~11y significant manner hnve any bearing orr the issue of whether or to ',,'J,;-.:': ~:::':èi1t fL.lring should or should not be permitted in conjunction with the produc- . l ;.;.1 of ,J.ny iiclJ on the :\orth Slope for r'larket -- excuse me, for rL1'arkcts ~l::-)C\·¡,lcr\_. ('-4+) 4 'L ) ) Company would not consider the Con~ittcc's decision to be a precedent with respect ) to the possibili ty of flaring after the North Slope goes on production. Of course you.would have no objections if tIle Committee should consider it's decision, \"hatcver it might be, to be a precedent? (laugh ter) Hr.. Scott: The \<lord .o.bjection might be a little strong but I sincerely believe that that would be a serious mistake. Frankly, I don't think -- I think \-le I re talking about a -- I don't knO\v to the extent you're being facetious or serious, quite frankly. (laughter). You know which way I chose to take your remark. (laughter) Frankly, I do think this is an altogether different matter for different purpose. I think you know that and I perhaps bent over a little too far back"vards to get that into the public record at this stage of the game. Yes, I \-JOuld have an objection if you (laughter) -- because if you took that posture I suspect what the outcome would be and it would be most unfortunate for all of us. Mr. Burrell: Thank you, Mr. Scott. Does anybody else have anything that ) they have thought of that they had forgotten? Yes Hr. Edmodwn? l>lr. Edmorf~on (from the audience): Hr. Chairman, I missed perhaps, I missed the explanation of why this surplus gas could not be used for example on the drilling operation on the drilling pads? Hr. Burrell: I don't think that ,vas specifically asked, to my recollection. Hould somebody like to respond to Hr. Edmondson's question? Hr. Simonds? Mr. Simonds: The topping plant is in a particular location. The drilling operation is scattered and the -- first off you would have to lay teQPorary lines from the plant out to the rigs. It woulà then have to be picked up again in a period of -- wl1cn we are going to have to -- when the field goes on production because at that ti~¡¡e th0rc will be a source of fuel much closer. \(r -J' cJ"1 ,···J"'on· Stl.·ll .I.... . .J L..L..i.LoJ . I'm sorry, you still haven't answered my question. ) Is ita TIwt tcr of economics? In other words, this is done in other pIa ccs -- Hi. t h t cmpo~.:l ry lin~s. :. r r. S cot t : \.Jith the Chairman's pcnllit;sion I con ans.\Vcr -- I think Chuck (14/1) ) ought to ans\\'cr the' qucs tion direct ly on th~ economics but in addi tion to that there is a practical matter of creating a spider weþ of what \.¡e call temporary installations but because the requirements for such iµstallations on the siope I::' t+ËSE to protect the tundra, Those installations are permanent 'tYhether their ~ is IN \\-IiNC:.-:s, PE.R.MÇ¡~EI\'¡T permanent or not. I think of this nature a.R-è- you get thcA,rcs-ults as a practical matter, so long as we're talking about conservation and we'd end up with a spider web of tccporary lines. This has -- I happen to know has been one consideration in that regard. However, needless to say the economics has been a major factor in Chuck, if you Hill go ahead and answer that. ,,' Nr. Ec1r.lOrthon: I think that ,.¡ill answer. Hr. Durrell: Is your question answered? I Hr. Edmor{~on: Yes, I think that was ans\olered, economics is (1(*~nc1iscerniblc~'o'() ) Nr. Burrell: Yes sir, do you have a question? Hr. Parker: Yes -- (from audience) Hr. Burrell: Do you want to get up here, I'm not sure \.¡e' re picking evc.ry- body up. Why don't you just come up and identify yourself for tIle record here, and all that. Hr. Parker: Halter Parker and I want to speak here for the Alaska Conser- vation Society. In regards to that line there are considerable number of camps immediately south of Prudhoe ,.¡ith roads leading to them where it would appcar that the use for the gas presently exists and I- assume these camps are presently usìuß diesel and the problem that arises here is unnecessarily unnecessary industrial omissions into the air. We aren't in any danger of creating a micro cli- mate in tIle Prudhoe area at this time but we are in an area where the difference bct\-¡ecn freczinr; .:1nd your hi[';h average temperature in most years only runs .JbouL - ¡ So an<.Ì ,,,,hen you t re dealing in that kind of der;ree spread \.¡hy it's very easy to ~-'-_;'r~:- . ,- (45) ) ) , ~mi.cro climates. Now the -- I Hish to commend the Commission for the trend that this ) v hearing has taken and for its obvious effort to limit the flaring on the North Slope to a minimum and I hope that it \vill continue in this effort, because I think He could sct a precidcnt here. Other people may want to operate topping plants. North Slope ,. operation is just beginning so I think that the policy once it has been establis11Cd, whether one operator for the reasons which hàve been brought out here, they do not wish to make a capital investment of $1 million, can go cllead and flare a resource such. as this for a period of up to 10 years rather than run temporary lines to other potential users or take some other expedience, that this policy should be set at tllis time and I hope that the Conservation Commit tee \,,111 set the policy along those lines. l1r. Burrell: Thank you Hr. Parker. Anybody from Atlantic Richfield who would like to respond to Mr. Parker? Hr. Scott: Hr. Chairman, I think both Chuck and I. First thing -- I like to -- ) i'Ir. ' l~1..lrre1.l: Nr. Scott: l-lr. Scott: Excuse me. ¡'fro Burrell: Go ahead Hr. Scott. Mr. Scott: In the first place, and I mean this quite sincerely, you pointed out at the l.:lst hearing that there were both individuals and organizations who were opposed to flaring per se, regardless of tIle reason that may be necessary, somehow they never SCCiì1 to show up at public hearings so quite frankly I ,.,ould like to commend the las t \.¡itness for showing up and presenting this statement before the Commi t tee .:lnd giving us an opportunity to discuss the matter openly. Now I mean this quite sincerely. Frankly I believe in my experience this is the first time we've seen this occur. I'd like to point out with respect to the -- one, I think misunderstandings that may exist. We tcl~cJ about the fact that our plant economics based on the 12 year line, t¡lC use of it \.;il1 r;o on so long as there's a demand for it, it remains operational. This doesn't 1',1(';-,;1 t¡:c flaring itself will go on. Obviously all of us arc desperately trying to ~l~·.·;:\ì.n,e for, \¡ell a market, utilization of the gas, at \.¡hich time -- our \oJhole Wi\...\.. P roi/.l eï¡ ^ (/1 Ô) "":1 ') ') end here. And I think perhaps the last witness got the impression that \.¡c were '') talking about flaring for 12 years or ad infinatum, that we would hav~ excess gas \.¡1ÜcÌ1 we h~pe, all of us hope and expect in fact is "-- will not be the case. Also, on one other matter with respect to the so-called pollution resulting from a flare t: ~~ T such as this. \va realize that this is really [)rabbing at straws_-~ when you're , MA. R. ·T. M~pso rJ on the North Slope and talking about one flare. Meverthcless we did consult Ill' maps aftd ^ our coordinator Hestern Region Air and Water Conservation, who replied to us and I " ,.,on 1 t read the entire let ter but his conclusion is: this:,: illustrates wliy I say the flare at Prudhoe Day can t t possibly -- Gan not (use the contraction~~;n t t possibly present an air pollution problem, which I hope is evidenced by the fact that we are trying to be fair in this in avoiding any improper procedures in connection with this matter. Chuck you have more direct -- Hr. Burrell: Hr. Simonds you had a response Hr. Simonds: Right, and John you' have covered half of it. Hr. Parker, I ) just wanted to point out that my estimate was in excess of upwards of $1 million dollars for the capital invested and secondly that on tIle life of this particular flare and this is the part that Hr. Scott spoke to you, that I would expect this excess volume of gas to be flar,ed only until the ultimate answer or ultimate sys tern is put in to effect, whatever that will be. Hl~. Durrell: Thank you Mr. Simonds. Hr. Parker did you have something else? Nr. Parker: By response to that is that you can see the point that I was trying to make before, that once this precident is established at Pruùhoe, it can be applied to other locations, and of course you made that point previously too. Hr. Burrell: Thank you Mr. Parker. Does anybody else have any additional questions or testimony? (Hearing adjourned) ) . ,. (47) #2 Î' ,( ) Oil AND GAS CONSERVATION COMMITTEE EXHIBITS Conservation Fi Ie No. 91 May 19, 1970 Committee Exhibit No.1 - letter dated September 19, 1969, from Mr. J. M. Trickey, Atlantic Richfield Company Committee Exhibit No.2 - Letter dated September 30, 1969, from the Oi I and Gas Conservation Committee to Mr. J. M. Trickey Committee Exhibit No.3 - letter dated November 26, 1969, to Mr. J. M. Trickey, Atlantic Richfield Company, from the Oi I and Gas Conservation Committee Committee Exhibit No.4 - Dated March 26, 1970, to the Oi I and Gas Conservation Committee from Mr. J. M. T r i c key, A t I ant i c Richfield Company Committee Exhibit No.5 - Dated March 27, 1970, to Mr. J. M. Trickey, Atlantic Richfield Company, from the Oi I and Gas Conservation Committee Committee Exhibit No.6 - letter from Mr. James E. Fisher to the Alaska Oi I and Gas Conservation Committee Committee Exhibit No.7 - letter dated May 8, 1970, to the Oi I and Gas Conservation Committee from the Kenai Peninsula Chapter of the Alaska Conservation Society '" ) ) ) ATLANTIC RICHFIELD COMPANY EXHIBITS Conservation Fi Ie No. 91 May 19, 1970 ARCO Exhibit No.1 - Topping plant diagram ARCO Exhibit No.2 - Crude oi I ARCO Exhibit No.3 - Topped crude ARCO Exhibit No.4 - Arctic diesel fuel ARGO Exhibit No.5 - Schematic of topped crude injection into reservoir ARCO Exhi~it No.6 - Schematic of topped crude flow out of reservoir Ar~co Exhibit No.7 - Recovery of topped crude ARCO Exhibit No.8 - Estimated flow rate of we! I used to inject topped crude NOTE: Exhibit Nos. 2, 3, and 4 are storeddJAeem!.¿(II-:,. 11',~,_~i"P-1 Ir~LI_ ROðl'l 10. ,\'.c1· ¡. I:-;:; rEX) ¿l c t..1I é ¡".~/' i1:ick;Co:r,pany . ")1\11 AfìlC{ ,:..Iask a DistriL, :-'ost Office Box 360 Anchorage. Alaska 99501 ~-ejephone 907 277-5637 J i{ dLlcing Division September 19, 1969 Division of Mines and Minerals Oil & Gas Division 3001 Porcupine Drive Anchorage, Alaska 99504 A ~, "' ¿. ).. ~, ,.. 1// "~; f{U3 ç-, ~-'"' 1RM _siJ.tl--- Ox:.... ¿C/..--. . I~--" ~~:( - " 1£ ~;_) REL /,(,', .' , ~ -.r) " "..' FIL~Of/( - .t:I=. (0'" '" , .( .. ~ £ 'I- ~ I L . t { Attention Mr. Homer Burrell Gentlemen: In compliance with existing State of Alaska rules and procedures, permission is requested by the Atlantic Richfield Company to flare excess casing- head gas produced from the Sag River State Well No. 1 in conjunction with oil production from the same ~ell as a crude source for our proposed crude oil topping unit operation. As much as possible, all casinghead gas production will be used prima- rily as fuel for the topping unit operation and secondarily, as fuel in the base camp power gen- eration and heating facilities. Using an average 800:1 GOR at a design maximum crude input to the topping unit of 5000 BOPD, gas production will be 4000 MCFPD. Calculated topping unit fuel requirements are 550 MCFPD, leaving 3450 MCFPD to be flared. An additional estimated 1500 MCFPD will be required within the next 60 days to furnish fuel for power generation, quarters heat- ing, and waste incineration. This would make the total estimated fuel requirement 2050 MCFPD, leav- ing 1950 MCFPD to be flared if the maximum through- put rate is reached. While requesting permission to flare at maximum conditions, more realistically, based on residual injectivity study results, we think the plant throughput could be about one-half of the design 'maximum due to residual injection limitations. This would make the flared gas volume neglegible. /" / / j,/ /l CC//1,1111 "7-<. t. ~d' 1· ," / .. v...-r;> /1", ,," ¥ ",-., . --"-'-. ._-,,~,,--,,-,,-,._,-----_.",""- ju:,Jtj'~} W;) SEP 2 21969 QJYISJON OF OIL AND GAs ANCHORAGE ~.. ....'\? Division of Mines and Minerals September 19, 1969 Page 2 Construction work will be complete about September 27, 1969, on the topping unit. Assuming the above and previously submitted details provide the information necessary for your approval to commence the topping unit operation, we would like to have this approval at your earliest convenience. If there are any ques- tions, please call. Very truly yours, ..,()i/~_l___. / .' . /1 J. M. Trickey Sr. District Production Supervisor JMT/mc ¡iG;~~#:.'¡i \L7E:~)~ -4iI rq "'1 S[P 2 21969 4)JV1&JON OF ANCH~;;':O GAs ) ) , I ~{,1{~}G\J:U{j~:~~¡:,:~~;:::::j~::I~:~~:1'\~)(~~ IŒl'¡'U Ft. HItLER C¡Qv~ru~oa DIVISION OF OIL A1m GAS XJw~ooaaacoo~"'f.XX 3001 ¡1>ORCUPINE DHIVE xxx 99501~ AtASrA on. AUm GAS <:ONSERVAnot' œ~¡~nIE September 30,19:69 ~1r.. J .M. Tr i.c:1tay S.¡zn:~d.orÐi$ trict1?roductionSuperviøor Atltu1t1c IU.cbfield Comp.any P.O.Box 360 At:chora.gQ. Al.nab 99501 :f. (. .u c ~ t", I C. f ¿ 0"""'" """, (, DeliX' ~k. 'l'r-:1;,ekey: aef~r~nce 1s m&detoyour l~tte~.ofSeptember 19» 1969, ~~~1 ~øyour me,et1thg ~¡:lth tbe AlaBke 011 a:nd Q3a Conservtat1on Comm1tteêon S~pt~tl\¡:)rZ:);' 2lh Atlantic 1.1chfi.eld Cot'ttþ&¡."Ji' h~~ rt;?H1U4iHJ'tcd i,)t~1'""m1:~:!':d.f,¡}11 to ftStre.ex(:(;1;cJ:;~j (.:aui.¡:lf~he,ad ga.ø p-roduCQ!d iras th@ S.figR.iv,~~r St:'¡¡~,t.!&.,~v;f~)l.1 :rk~", 1. incon.,j\nil,ct.:t(..n:~ vi!'1thoil t~'rodiJctwn from ti:w.t wall for thø t¡~opo$ed Ct'lJH1(~ ail ttQ.¡;tpit\,g. UJ¡.1.it oparnt1on. I t is our und1eratandb1,g r..hat t:hep:~:'cti::k~ct~d c:M.~i¡¡:t~fJìtf.~,!l':1d g,¡:?¡:;:! III t() the g'te~,té(Øt ext(:~n.t possible. tií'111 bou(*eð. Zi;~ :f\u~l for th~~ tj¡:;:¡'1,p;Lng Ull:t't Op'lrtit1on a..jc~d f(~r pa~~er gC11et'ation a.:o.d he:~1t in the 1".ruiiho1e: bs.,?;~ 'C~IT."t:'¡~ ~~.ncl 'th$..t: by ~'ccember l~ 1969" the fla1:ed$G:~1 \i'olum¢ is' antici:pa([;(¡;.d tQ b:t!! l(~a$ than 1,OC-o !<1!cf pø·t da.y. It J: .j:> ðoo~"'ð t"''''''~''''.\'''k.i\l>ot''''ð e tt<. 'I.~'. "·"l·;ot fI<-'¡' n"'ht ';I.,..,.. o!>!;''i\'~·h.<'''I,."..~ .....;;:,:, ....h"'" "';~lr..~·.,,,,,,11'"":·." 'r-y' ,~·ft ~''''''';'~~'~;' A."'~ v.....:~ V"'NI~,.;J¡,\.,~~ ~ ~;~ IMP ~o;lI"_'þ' .~t~":V'J It '~..r ' ..."".~.¥ Q,1'~,~,\.~~,..t4. '¿>t."'TaMO ....,.IÞ,$.~, ~ ~~·~,i:.~..,t'",,,,,,I:"tl~ ....,i,I... .i:... .~~Q\~ .J:ti¡..i,""{,'~ of gnse:::::cept in (:..lìU$eS of oper~l;tiori~¿l n~~e~~sity .or ¢t:'~i.:;rg;~;::'1;:~Y<\l S.it'i,c¡~ tl,¡,(~'r;;¡~ i.a n.\',) ev:td.1tt.'lce th.at tb,epropos~d r.t¡·oductio~~ 'i¡,r:tl.l r~$ult: in ~~·c:;3<::Z:"'ì.n;;.·i~:¡; (11Æt<!\agato th'I;~ v'pl~"M;) of Z8.~ 4tAtic!patG.d to b~ flareti is t1'~Dli..;:;,~.,::"Ù(::)t ~n~~di i'i.: ;h¡ h<a11trv.~ð to be in the 1;eGt :i;ntet"~~.$t o~e the. st&te ~>~ pe;C"~:;~;x c:";;\:·,::;.~1.ti1:,, t:l~)a' tOPl):l~rt~3; plant to prov:f,d<,:! ;fu.;al f.'or' tt1e Q.,tl)l.oraticn a.nd c!'Î,:~\~,'·:'~j~/~,:'f::·~:~1;Cl¡t :.:~r3.~ tiCZ;'9 cor¡,t'~;7:1j? l~1.t:ed. permission is hereby gr s.'tì.t~d to f:i..,~n:>k'; ;;;;~;:'~(~~;.i. C:;':':::.iS~5;"~Z " Thiz; .autho1:1~1i.i\.tion €)tpi:res !1arch .31. 1.91'0 Oil' Guch c.a1"i:lier Ù.1.:::02 a:~1 ~:'J."lY L..:. (:;ütc~:&-ni¡1,,::d by t.be Committee after publ!:: h~ß.r:f..ng in tha CVC~ì.·i: ci ti pr;.:<:c:.:;t: by ~rn nr;z:r.Ü.:vcd pa:rty. Prior tQ such eJiP}irà'Cicn.1 itatle a. $ho~J3..n:~; ,uD to phL1G iQX &dt!it:t;;nJ;l bßp.e!ficial uses of flared gas. will be 1:~qtli::c·a j.f fu.rth~d: .:rp¡n:-oval is requested. [{c¡;n:-c1;enf::ntivca of the Al.a~~l<:a Oil nnd G~3 Con:Sel"v~"!.tion C~,~':,;'nittç;e ..;.~','.. :!_n::;:'~),~ct t.h~; t.'''l??ing u.nitoperc.ti.on {it ~ e~1rl:, data C:i.n.d f:ç-·a¡;;o ti:::,;: to t::,;",:; th~l.~ea.ft£,:,:, ~ "".J..d the required r~pC1Ci;G of in.~cctiQn .t1'¡¡/¡ ril"oductiüt',( vol:L:j::'~...> ,,¡y:i.ll ôa clos~ly evaluated. VC".".. fjtrul{ ~~v·;':';;:'8 it ....:q ) ./ r " /'1 :\:/1. /."/.1/ ii 1/ .... ~ - 'll I ,.. . ,~/ I 0·' M, V · rt/i/I"V'--r;JJ ( Thom~ R. HRrshallp Jr. ExeeutivQ Sacretary f¡¡..l) : juo C~: '.t'H8HB~ E: Kelly ~ Coœnf.SJstbnet ) ALASt<A ott AWO GAS CONSf~VATtON COMMiTTEE ~v.mbe,. 26~ 1~69 ('4.... ...., If u. f~ t "t of! 3 A·t~ ðnticR$chf told Company Ata5k~ Dlstrict P. 0", B:>x 360 ihlchorage, Ai'sska 99501 A.·~~tentlon: t·ir,,. J'. M. Trickey " , $eni O¡.. Of st,.! ct. Product lonSup:eN I SOt' G<:H'\1"ièmen : Subject: Gas Flaring and C'f'ude Oa:iTopping f1)1eot PÎ"~~dhoo a~yF¡aid B~' tGt'tt~HjOo of Sßp·~emb0r 25., 1969" YO,y tl,Íoregiv~~n approva~ t'o f~a~"a um.is(:"id Hfðn!; ¡ n tha opd.)J·at Ion of the Pr·w dhoaßsy ·t'()~)pi n~1 p' ~ ($ot ..' l\ l' the¡ i' t? me \(JE~ had no evld€mca tOG prcposedöf.~eH"a,¡"'¡on \/t'()uld r(~$u~t ~n rer::¡;~~t'\/;C)~t· d2ri'{¡ç~:~}G,~ ~13 h(~~vø n~~)\~ ,raCtð i vad yourO(,~t,r.,ber rEJ¡p0i""t o'r o'P$rat~of1¡s~hi ch ~~ho:¡;,s t ,::¡s:C(:;~' eH og J~,o our calct.dations, 'th(rt~ppi'Y..);dmêrto~y 4..4 barte~5 01 n,c't r~)$ar'voh" ~;p;;:¡'~(~~;:¡f"e b~.:\t'~ ng vcri dad for eac~h ;j.?t;;,t"re i of output fror:i~ tb~Gf1 g ~int b l'b l $ d()G'~; ncå' QPp¡¿;?ti:~r to bG. a prudtH"r1" pt""eci'icIG1 to 'hI!." Coo~m i til.ea I\' \fia rea $ i 20 '¡'';:,IU hl.tV1E~ ¡~mds (;) s t ze~,td e p! ant i n\~esi'jn<::~nit; b¡;,r}",\O t() ;¡ rï:::;~jr~~ f"tm"¡1. r~.o ¡ rr'øpðrab i(,¡) h:::u"t'S Ott.,,;:curs 1'0 'this u"øs;~1l""v~,<1 r '~~3 ðf'e:5ti t t O'~~ -'á:iG ph:1r.·c~ cfpeF(';rrlon. a p ~.õr:: to t11a,¡oti!~h1 re$€H'"voh''' pressu:ro '¡1~ { ~ ~ 't~;) ,t¡ 'j s, ihJ) tô f,~¡ny ex'tens ton to. 'tho c.a'nro\~ tte:$' s per¡,f,J ¡ 55 iOt'1· .¡¡,~') i~ ~ðr(~ g:a$ 4>' Further, ra-h»Jecttol'l of all pr<:'Ki'/Jcad gas fn excess crt it~Ef¡¡' ."~;:::.w,';"fh:r.,.d¡y used \:.1 i S t ba a conshler;;ff ¡ on in grant ¡ ng an\, Ðj(.tsn's ~ on" k'!Ø seek a~$u~";:;¡~~~çe that prG$$urtlwliJ. be matrr~;;iflG<í ¡n thIs rcs;ø~~..:c.~;}"· and 'rhéi'Y si'eps >iJt 1 ¡ be ..taken to èl Imi nate f taring (;~xceyt fú~'· e;'narg,ancy- Q;10~";},¡ '," ãr;nõ!: neces.sIty.. Vay¡ truly. yqurs.t,' I) ¡ '/1. '/, :' II:, Ii / (/2~,,;; ./ ¡)ll[~'''''./ "JI/ It... Thoo~a.s R.. r'l:í::i rs.h ~~ i i a J r ... ~ E~<øcu '~" hiÐ S c;:rc"¡",r:'h'''Y Concurren.c::.¡ : ,/ /., ,/ \:>J'. '/ .,../. "'~~... . : ~ ..;..~_.......,_......~ Hotter l. ~~re ii, Chairman (O~ ....J. r / ~ "", , ,../ì,/ [..)...../:,.1£· l-'-;'j-r; t· ,/1;'.- - . . 1 /~" O K .....1 ~ h -'." , - . v 'f>' .!'" . t . r¿¡ t ~ I., r(t:~ ¡ ìî, " ~ . ....,om\..,or . .... . ..f.', ." " .._~..~,... '. 'I.. '. ~ '" :'" .~.. .....,.....:.....,'.~.....,¡,\.;.. . .", , .,,-,:',~;~\ ;\. .,', .::,~tI.:w:'·I~r..·, : ...:;. ,',~;..._I...' ,r;;.:_:,;' , ...:....;.....:..~,.:.\ "".':h. ~;, ".' . .:...:...-:":,;~.::.'-~...",.:':"\ UlanticRichfieldCompany North Arne ~roducing Divisioll1 Alaska District Post Office Box 360 Anchorage, Alaska 99501 Telephone 907 277 -5637 fl, ).~ ) ~~ ~". Division of Mines and Minerals Oil & Gas Division 3001 Porcupine Drive Anchorage, Alaska 99504 4\,1~- ~14 ~'rl.\.\..t- c.o. q( ~~/~ OKG .Æ/i? ..> KlV H\A.t:':. _'__.'.__._ REl March 26, 1970 AlE (Òo;( ATTENTION: Mr. Homer Burrell f cl- U (6~""'..¡..h~ Ë'1l¿..L, I Gentlemen: By letter dated September 30, 1969, Atlantic Richfield Company was authorized to flare excess casinghead gas produced from the Sag River State Well No. 1 in con- junction with oil production required for our crude oil topping unit operation at Prudhoe Bay. The authorization will expire March 31, 1970. In compliance with existing State of Alaska rules and procedures, this will request additional authorization, past March 31, 1970, to flare casinghead gas production in excess of the crude oil topping unit fuel and other beneficial uses. Using a 900:1 GaR and a 5000 BOPD crude charge rate to the topping unit, gas production will be 4500 MCFPD. Present and additional beneficial uses of gas by May 15, 1970 are estimated to be 400 MCFPD at the topping unit, 600 MCFPD at the power plant, 300 MCFPD at the base camp buildings, 30 MCFPD at gas conditioner, and 400 MCFPD at various plant safety flares, for a total of 1730 MCFPD. This would result in the flaring of 2770 MCFPD. The use of 100 MCFPD is planned later this year for incinerator fuel. Also, additional places where the gas can be beneficially used are being continually investigated. Please advise if additional information is required. Very truly yours, 0/J11~j7 ~M. Trickey , Sr. District Production Supervisor RE(~E!VED M~\R\ 2'J 19/0 JMT/nun Dl'lIS\CN CF- (.."!jL p.>'¡D GAZ ANG!ORAGt': Al..ASK/\ 0 lLANO GI\SC~\lSEf(\lAT tON (;OMM I nEE March 27. 1970 ~;4r. J .~. .~~.. Trickey Senl or-Ol ,stf"lctP~roduct lOA Supervisor A'tl ant,' c: R Ichit .,1 d (:ompany A I a~d~. t) ,I sf,.i ct P.. () . Box 360 Ancborage 11 AI asdua 99'0' I Oø.er jv!r. 1.,.¡ ckey ..~. By letter dated September 30, 19691 tbeQJt and Gas ConservatloßComml ttM autnorJzéd the Athtntlc f,fcbfiel dCoM,.ny to f ,I are excess cas,' ftgbeðdgas produced fromSeg RIver State ~~ell~{Q. Iln coøJu:nctlon with ollprøductlon requIred for your crude ,0,11 topping plant at PNdhoet3ay.That authorization wI" expfreMarcb 31,,1970. Theeoœmlttee hereby extends thlsautbor'lxatton to flare tutti' ,JuRe 30,1970. The (lIl, end (10$ Conservation COt'nm1 ttee will hold. pdbl Ie hearing on Tuesday, ~1ay 12, '970,to consider possible extensIon beyond the June 30, 1970, te:nnl,ftstlon date of thepemissfoß 'to flare.. 61 E"~.~' t c {\ \"1 """ I n- ~ -<- r iSS- Very truty yours, Thoœs R. Marsba II Jr. ExecutivQ Secretary Concurrence tiol1er l. Borre' I Chairman 0.. K. Gi Ibreth, Jr. ~1ember ) ) FISHER & HORNADAY ATTORNEYS AT LAW JAME.S E. FISHER JAME.S C. HORNADAY KENAI. PR.DFESSIONAL BU] LDING - P. O. BOX. 397 KENAI, ALASKA 99611 7 May 1970 TE:LE:PHO N E: / ) /1. 2 8;1il'b6 ~,1r<~;=:- TRM ~¿"'... OKG _______/ . .,' Kl V --,.!1í.< __:.._ HVVK __~____ Executive Secretary Alaska Oil and Gas Conservation Commi.ttee 3001 Porcupine Drive Anchorage, Alaska _._---_..~--..__............... " t~. ~. t .I::t-" ( (J Mt ......' "'~-<- v. -------.. --......... Ëiu: C:O...!1~[ RE: Conservation File No. 91 - Atlantic Richfield Request to Continue Flaring of Casing Gas at Prudhoe Bay On behalf of the Kenai Peninsula Bar Association, I enter a strenuous objection to flaring of casinghead gas in Prudhoe Bay now, or in the future, because 1t is a wasting of a limited natural resource and economic considerations as of one parti- cular time should not control. a. Flaring of casinghead gas is waste of a resource. b. Flaring creates pollution of the ai.r -- regardless of where it is accomplished. c. Such flaring of casinghead gas appears inconsistent with public announcements and advertisements of Atlantic- Richfield to the effect everything is being done to protect the environment. Flaring and wasting of resource is not protecting the environment, regardless of whether it is the present physical environment, or the future economic environ- ment. d. The cost of reinjecting the casinghead gas should be a part of doing business in Alaska, and should not be excused for any so-called economic reason. e. Excuses that space for reinjection machinery are not credible (apparent primary reason for Cook Inlet off-shore flaring) and should not obtain in Prudhoe Bay Field. This objection is in response to your public notice dated 1 May 1970, published in the Anchorage Daily News;and it is intended as a request for immediatècessation of any present flaring. ~f~ ....l President K¿rai Peninsula Bar Association 8 May 1970 t~:I:~(.~~", . ,,\);'.~'.."I'~.:$\~ASKA CONSERVATION SOC¡::'IY :·f;~~i:,:'t·I~?:;:!(i~'~i:~::::! K E t,¡ A I ~\~',~:~(~1~~~ S U LAC HAP T E R HLB ~"., TRM 0f1. '. .....".. OKG 6~~~"/_._. Ii $'{I Kl V _../1/'7/__.,__ HWK yG)¡ " / c';:. SOLDOTNA ALASI{A 99669 á JJ<.<-F..¡¿.t:f 7 ~ð kf K-I '-'Il FILE C.O. 'It,,' Executive Secretary Alaska Oil and Gas Conservation Committee 3001 Porcupine Drive Anch.orage, Alaska RE: Conservation File No. 91- Atlantic Richfield Request to continue flaring of Casing Gas at Prudhoe Bay This organization enters its strenuous objection to flaring of casinghead ga.s in Prudhoe Bay now or in the future for the follo\,Jing reasons: a. Flaring is a wasting of a natural resource vm.ich is limited. b. Economic considerations as of this particular time sh.ould not control. c. Excuses that space :Eor reinjection machinery are not possible (apparent primary reason for Cook Inlet off-shore flaring) ~hould not obtain in Prudhoe Bay Field. The reasons this organization objects to any flar.ing of casinghead gas and and would request immediate discontinuance are as £0110'1,'I7s: 1. Flaring of casinghead gas is waste of a resource. 2. Flaring creates unnecessary polJution of the air-- regardless of where it is accomplished. 3. Such flaring of casinghead gas appears contrary to the public announcements and advertisements run by the Company in that they are doing everything to protect the environment. Flaring and wasting of resource is not protecting the environment, regardless of 't-lhether it is a 1. iving environ- ment, or the future economic use Dossible of the wasted resource. 4. The cost of reinjecting the casinghead gas is just a part of doing busi.nesE:. in Alaska, and should not be excused for any so-called economic reason. 5. This objection is registered in response to notice received by yonr public notice dated 1 }Jay 1970, published in the Anchorage Daily News. cc: ACS * Box 5192 Fairbanks, Ak. Qr, (V~ ~r ~QÙ. Vice-President Kenai Peninsula Gb.apter Alaska Conservation Society Box 563, Soldotna, Alaska I) ) r:ó. if ( QUALIFICATIONS OF Cv L. SIMONDS My name is Charles L. Simonds. I graduated from the Colorado School of Mines in 1951 with the professional degree of Petroleum Engineer. I joined Atlantic Richfield Company in 1954 after serving on active ¿ J ;,tt'_ duty with the U. S. Army, Corps of Engineers, during which ~ I was assigned to the North East Air Command. In 1962, I took my Master of Science degree in Petroleum Engineering from the University of Southern California. During my 16-year career with Atlantic Richfield, I have been assigned J(') I ~ / , ;' UJ!7 It. µ. n "7 Vl~ II·X) :.f¡~j e G to numerous engineering and supervisory positions inG-lud-ing development, production and reservoir engineering. My current assignment is Senior Engineer in the North Alaska District supervising the Operations Engineering Group. I am a Registered Professional Engineer in the States of Alaska and California, and am a member of the Society of Petroleum Engineers of the AIME. ARca C.D, '1/ E 'r 4, ~ , t ~ ~ SCHEMATIC OF TOPPED CRUDE INJECTION INTO RESERVOIR . LEGEND . TOPPED CRUDE D RESERVOIR CRUDE , SIDE VIEW ."".,- -.......... ~ //', -/. -, / \ I \ . I I I .J " / , '/ . /' '" . ~ '-- --- ...,....,., -- -- - TOP VIEW ATI..:ANTIC RICHFI ELD CO. RESERVOIR ENGINEERING MAY 1970 ~ . ....~ SIDE VIEW 4... r 0 \,.. -. f I E\~(/G.+ :tf C. SCHEMATIC OF TOPPED CRUDE FLOW OUT OF RESERVOIR LEGEND . TOPPED CRUDE D RESERVOIR CRUDE /" / I I ~/ ~ I \" / ". / ~ .. ",/ ---.--. ..~ TOP VIEW ATLANTIC RICHFIELD CO. RESERVOIR ENGINEERING MAY 1970 100- I'" -V' .. , fE ~4 } 6\ t- iJ7 RECOVERY OF TOPPED CRUDE ~ U <l 90 - m Q W U ~ Q ~' 0 -~ a:: 80 - a.. Q W I- U W -.:> Z 70 - - 0 ~ -' u... -' ~ 60 - 0 I- u... 0 -- I- Z w 50 - U a::: w a.. 40 ATLANTIC RICHFIELD CO. RESERVOIR ENGINEERING MAY 1970 o I 0 20 30 40 50 60 PER CENT OF rÒTAL ULTIMATE RECOVERY FROM SECTION l\ v ( 0 t. V. '1 ( E"\. La , 0. f- .tJ:? ESTIMATED FLOW RATE OF WELL USED TO INJECT TOPPED CRUDE 10000 - TOTAL FLUID RATE ~ '-~ 8000 - (:) Cl.. 0 CD ... W ..... 6000 - <[ 0:: (.!) Z () :::> 0 0 4000 - a::: a.. ....J ....J "- W ~ ~ 2000 o o 200 400 600 800 1000 1200 ATLANTIC RICHFIELD CO. RESERVOIR ENGINEERING MAY 1970 TIME ON PRODUCTION, DAYS #1 ), NOTlCE OF PUBLiC HEARING STATE OF ALASKA DEPARTMENT OF NATURAL RESOURCES DIVISION OF OIL AND GAS Alaska Oi I and Gas Conservation Committee Conservation File No. 91 Re: The request of Atlantic Richfield Company to continue flaring casinghead gas produced from the Prudhoe Bay Sadlerochit Oi I Pool in the operation of the crude oil topping plant, and the motion of the Alaska Oi I and Gas Conservation Committee to hear testimony on the continued injection of unused fractions into the pool. Notice is hereby given that the Atlantic Richfield Company has requested permission to continue the flaring of casinghead gas in excess of the amount used for fuel, heating and other beneficial uses produced from the Prudhoe Bay Sadlerochit Oil Pool in the operation of the crude oi I topping unit. The Alaska Oi I and Gas Conservation Committee on its own motion wi I I hear testimony on the continued injection of the unused fractions into the pool. Administrative approval of the above mentioned operations expires June 30, 1970. Pursuant to Title 11, Alaska Administrative Code, Section 2009, the Oi I and Gas Conservation Committee wi I I hold a public hearing on May 19, 1970, in the Ben Crawford Memorial Bui Iding, Third Avenue and Eagle Street, Anchorage, Alaska, at 9:30 a.m. to determine whether the flaring of casinghead gas is an operational necessity and whether injection of the unused fractions wi I I diminish ultimate recovery from the pool. jL) Æ f!l1~~(/è4Þ- Thomas R. Marshal I, Jr. Executive Secretary Alaska Oi I and Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99504 Publish May 1, 1970 Af,iØ~'i ;' [)"., )VI--I' ¡If, ¡i:d '*1 ", . J\\ ¡, !,I'",W i ," ':'~' " STATE OF ALASKA, ) THIRD JUDICIAL DISTRICT, ) 55. H L Sh...."\ ....~.ary_....J d..J.<B.....---.-.......- being first duly sworn on oath deposes and says that.....:;1h~L.. is the...~-~f?~~..-º.~~,~~, of the Anchorage News, a daily newsØ paper. That said newspaper has been approved as a legal newsØ 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 newsØ paper. That the annexed is a true copy of a ...~~.g.9:1.J1.9_~.~9.~_ 2790 as it was published in regular issues (and not in supplemental form) of said newspaper for, 8 period of ...,One...·.·. insertions, commencing on the ..u...1...d~y of ....~~~~y.............,,'19 ..7.Q, and ending on the........J.__....., day of of ....May.......--.....-··, 19...10, ." both dates inclusive, and that such newspaper was regularly . distributed to its subscribers durø ing all of sa,id period_ That the full amount of the fee charged for the foregoing publication is the sum of :$ 1 5 · 50 which amount has been paid in full at the rate of 25¢ per line; Miniø mU,m charge $7.50. L/h' ~ J/ /' su&ri~~~ me this .. .1--. day of.. May---.---..., 19.7.Q. ._~~L~_- "'P~~ Notðry Public in IInd for tho:! St/¡t~ of Alaskll, l~ird Division, Ar)çhorage, Alaska _E:::~;.;"RE~9Z¡( Or " ~. PUBLIl., TION ,....~ ....c,.. ~ ,_ ,......, "~.,,""~, ..'.'.", NOTICE 01<' PUBI.IC IŒAIUNG s'á'A"I.'l<: OF ALASKA :ç>EPAR'l'MENT 010' NATURAL " ~. . RJ~SOURCES ;' DIVISION OF OIL AND GAS Alaslw Oil and Gas Conserva tion Committee Cònscrvation ~'ile No. 91 ,Re: The request of Atlanlic 1tiCh-' field Company to conlinuc flar- Ing casinghead g~¡S produced from, the Prudhoe Bay Sadle~ ,:t'ÒCl'llt~ Oil Pool in the operation' of the crude oil topping plant " and the motion or the Alasl\~: ,Oil and çitS Conservation Com-' , 1:I1.ittqi.to hear testimony on the " continued 'injection of unused fractions into the pool. Notice is hereby t(iven that the; Atlantic :uíchfield C()mpany hils, re-I' ~ue?ted permission to contimie the flarmg of casinghead g-as in excess I IO,f, t,.,h.,e. am., ,ol.l.n. t" used for fuel, 'heat-I !?~. and...~the,~~~~.e_f~~~l uses pro-: .dllccd from the Prudhoe Bay 8"<l1e;;' rochit Oil Pool in. the opcra tion of the {'{u'de oil , topping· unit, The I (Alaska' OU and Gas 'Conservation Commit tc.e on its own motion will t hear tcstuU<N1Y .on '. the continued in- ( jcction of the unused fÍ'aetions into I : ,the pooL AdminIstrative appt'oval or: I,the above mentioned ope1"atlons ex- ¡pires .June 30, 1970. . Pursuant to 'riÙe II, Aiaska Ad· 1; ministratlve Code" Section 2009 the' .on .. and Gas Conservation Co~mit.' ,lee will hold. a' public, hearing on: May 19, 1970; in the Ben Crawford Memorial Building, Third Avenue ,and Eagle Street, Anchorage,: Alaska, at 9:30 a.m. t() determine: whet.her the flaring of casinghead I gas JS an operat.ìonal necessity and" whether injection of the unused r ' 'fractions wHI diminish ultimate re·i covery from the pool. !I Thorné1s R. Marshall, Jr. Executive Secretary Alas,ka on and Gas Cônserva tlon Committee 3001 Porcupine Drive Anchorage, Alaska 99504 Publish: May 1t 1970 Legal Notice No. :1.790 , .....", . '!"":"r ",;._,.-~--,:-:,-~--, I I I. RtC.£\\/rr) ~'I f\~ 14. '\ '::\/ ~; p:'HSI,Çf~ c;: c:!.. f\f:; GA~I. AKC';:0~¡"G ~ . .._ _,. .,. ___~'. ,. ·,.M' _,_ .....".,. ~ _.._ .._."~' ....... ".... .. · ..., ~., ,', ", ". '_,."'>' '~" Ok, L ~J~¡~ J¡t,:'~:; .. Jt~. ""~~"i.,.:1 ~,~::,':: .,;jii .:' ~9ll,i' I':, . ..... . .."9~'i!':1~i~k ,~~~Ø"W¡\t~~~.~r "§'1~~~~!~ I '!~:ij ""it~\~\'¡'\M'I'~ ·tt···,·· ' "d"""Q" ê~' "'tf' 11" '.i'e· ..' 'r1~~1~1~~ft~t~(:¡~;j~~~~ , '.n~un).stxrq:tlVl~,:"i,C:'(),ð·e)~·'S.eottQn~~·~QQS!,,' :theJ li~tflltlllti1 ,g p.s,:"j~::::,~iln!~.Q'pf;!ri:l:tl~nªl~,.'¡n~c~'~,~UY,: . ~nÇi'1 ;'~i!iiJìl'i'!I;S;'ì ,', Co:p:~erv~tiö~ <~1:;:9P'Üni tt¢ß ,~ , :',' ~~Q..~::~~"P~CllP~~.· 'J?r~ye;_,~ .' ," . i >:.",':'·4JÎ.chqt:':~g~ :'~:Al~~ka:';~'~9~Q4: ., ~ . .p;i·~:~¡:;;.:':":;'8L~St~¡¡:~·?t1i~?::·')::':<~:i~XÃN'~:tt' ~<:. :'. ¡ P.~tQl!~h,;~~~" 1J.lª70:,1":" .. ..........': .... :~~,~.a¡·-:·~.9~i2:7.'~.:N~~ ;:....~,7~~:::....·Ø~~~.~i ~..'.,. i·.. I '. "'. ""."..... .'~ ,-"t' ¡'A\;'''~/''-:.''''~' , ANCHORAGE DAJLY NEWS May: 1, 1970