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Alaska Oil and Gas Conservation Commission
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12/1/2004 Orders File Cover Page.doc
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Conservation Order 91B
1.
2.
3.
4.
November 1, 1974
November 1, 1974
November 8, 1974
January 6, 1975
Atlantic Richfield Company application re: CO 91B
Emergency Order
Notice of Hearing and affidavit of publication
Ltr from the Commission to Federal Energy Administration
Conservation Order 91B
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STATE OF ALASKA
DEPARTMENT OF NATURAL RESOURCES
DIVISION OF OIL AND GAS
Alaska Oi I and Gas Conservation Committee
3001 Porcupine Drive
Anchorage, Alaska 99501
Re: The appl ication of Atlantic )
Richfield Company for an order)
pursuant to Title I I, Alaska )
AdminIstrative Code, Section )
22.540 modifying Conservation)
Order No. 91-A to permit the )
operation of the Prudhoe Bay )
Topping Plant at a throughput)
rate not to exceed 7,200 )
barrels of oi I per day on a )
monthly average basis, and to )
increase the volume of casing-)
head gas flared to an amount )
not to exceed an average of )
3?200 MCF per day on a monthly)
basis. )
IT APPEARING THAT:
Conservation Order No. 91-B
Prudhoe 0 i I Poo I
Prudhoe Bay Oi I Field
Prudhoe Bay Oil Topping Plant
November 19, 1974
I. Atlantic Richfield Company submitted the referenced appl ication dated November 5, 1974.
2. Notice of publ ic hearing was publ ished in the Anchorage Dai Iy News on November 8, 1974,
pursuant to Title I I, Alaska Administrative Code, Section 22.540, and no protest was
received.
3. An emergency order dated November I, 1974 permitted an increase in the volume of crude
oi I produced for topping plant use to an average of 7,200 barrels per day on a monthly
basis and an increase in the amount of casinghead gas flared to an amount not to exceed
an average of 3,200 MCF per day on a monthly basis. A fuel shortage was aggravated by
the recent loss of a Hercules fuel carrying aircraft and the subsequent grounding of
two identical aircraft.
F I NO I NGS :
I. The current upper I imit on throughput of 6,300 barrels of oi I per day, as authorized
by Conservation Order No. 91-A, results in a deficiency of fuel required for the
development of the Prudhoe Bay Oi I Field and the construction of the northern portion
of the Trans-Alaska Pipel ine project.
2. The maximum throughput capacity of the plant is probably between 7,000 barrels and
7,200 barrels per day. Maximum capacity testing is currently being undertaken.
3. Studies are currently under way to increase the beneficial use of casinghead gas
produced in the topping plant operation.
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CONCLUSION:
I. An increase in topping plant throughput wi I I provide fuel required for the Trans-
Alaska Pipel ine project and for development of the Prudhoe Bay Field.
NOW, THEREFORE, IT IS ORDERED THAT:
I. Rule 2 of Conservation Order No. 91-A is amended to read as fol lows:
The Atlantic Richfield Company is hereby granted permission to flare casinghead gas
from the Prudhoe Bay Topping Plant and to inject unused fractions of crude oi I into
the Prudhoe Oi I Pool, subject to the fol lowing conditions:
A. The volume of crude oi I produced for topping plant use shal I not exceed an
average of 7,200 barrels of oi I per day on a monthly basis.
B. The volume of casinghead gas flared shal I not exceed an average of 3,200 MCF
per day on a monthly basis.
DONE at Anchorage, Alaska, and dated November 19, 1974.
{/L. I( lilt ~ t
Thomas R. Marshal I, Jr., Executive Secretary
Alaska Oi I and Gas Conservation Committee
Concurring:
~rC, ([~c
Alaska Oi I and Gas Conservation Committee
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Hr. Fred Chiei
Ðeputy Regional Administrator
Alaska Region
Federal Energy Administration
Federal Building) Room 6-11
Anchorage. Alaska 99501
Dear Mr. Chie1:
The Alaska State Oi1 and Gas Conservation Cormittee, of which I am Chairman,
would like to obtain information you might have on the available supply of
diesel fuel in Alaska.
I would like to give you some background data on why we are seeking this
information. Atlantic Richfield is currently operating a crude oil topping
plant in the Prudhoe Bay Field. The plant suppliesbo"th arctic diesel fuel
and casinghea~:gas which is being used in the field by BP and Atlantic
Richfield. In addition to the field use, Atlantic Richfield is supplying
Alyeska with diesel to handle their operations as far south as the At1gun
camp on the pi pel ine route. Atlantic Richfield testified that they are .
currently delivering about l~aOO.QOO gallons per month of diesel to Alyeska.
Atlantic Richfield is operating the crude 011 topping plant under a State
Conservation Order,~hich limits the volume of casinghead gas that can be
flared.
Atlantic Richfield has applied to the Oi1 and Gas Conservation Committee for
an increase in the flared volume of gas so that they can continue to supply
the increasing demand for diesel fuel. They have stated that if this appli-
cation is not granted they will only be able to make enough diesel to supply
their own needs and BP's in the field.
The 011 and Gas Conservation Committee trould like to see all produced gas
beneficially used. However, it has recognized the critical need for diesel
fuel during the startup phase of the Prudhoe Bay field and has allowed flaring
on a restricted basis in order .that diesel fuel would be available.
¡, ,
January 6, 1975
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Mr. Fred Chie1
2-
,.1anuary 6, 1976
To aid our Committee in ruling on Atlantic Richfield's application the
following information would be helpful: '
1. Is there an alternative source of supply of diesel fuel
available to Alyeska for the northern portion of the
pipeline route (+ 1,000,000 gallons per month) other than
the crude 011 topping plant at Prudhoe Bay?
2. If an alternative source for diesel fuel exists, would it
be subject to interruption likely to hamper Alyeska's
operations?
3. If Alyeska could obtain an alternative source for diesel
fuel would it be because of them having a high priority?
If this were the case. would diesel fuel in some other
area in Alaska be restricted or a critical shortage created?
^ timely response would be appreciated since a ruling must be made on Atlantic
Richfield's application by January 23. 1976.
Sincerely.
.,/ /~<. ,./,,//f' . ,/;:~; " ,'(~~~' .
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Hoyle H. Hamilton
Chairman
Alaska Oil and Gas Conservation Committee
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STATE OF ALASKA
DEPARTMENT OF NATURAL RESOURCES
DIVISION OF OIL AND GAS
Alaska Oil and Gas Conservation Committee
Conservation File No. 9l-B
Re: Prudhoe Bay Oil Pool
Prudhoe Bay Oil Field
Prudhoe Bay Topping Plant
Notice is hereby given that an application was received from the
Atlantic Richfield Company on November 5, 1974 applying for an order
pursuant to Title 11, Alaska Administrative Code, Section 22.540 re-
questing changes in Rule 2, A and B of Conservation Order No. 9l-A
to permit operation of the subject crude oil topping plant at a
throughput rate not to exceed 7,200 barrels per day on a monthly
average basis, and to increase the volume of casinghead gas flared
to an amount not to exceed an average of 3,200 MCF per day, on a
monthly basis.
The operator statès that a critical liquid fuel shortage exists
north of the Yukon River effecting the construction of the Trans
Alaska Pipeline and the development of the Prudhoe Bay Oil Field.
This shortage is complicated by the recent loss of a Hercules fuel
carrying aircraft and the subsequent grounding of two identical
aircraft. An emergency order dated November 1, 1974 has been
issued permitting an increase in throughput and flaring rates for
a 15 day period.
Parties who may be aggrieved if the requested order is issued are
allowed 10 days from the date of this publication in which to file
a protest and request for hearing. Place of filing is 3001 Porcupine
Drive, Anchorage, Alaska. If such a protest is timely filed, a
hearing on the matter will be held at the above address at 9:00 AM,
November 19, 1974, at which time protestants and others may be
heard. If no such protest is timely filed, the Committee will
consider the issuance of the order without a hearing.
·~.¡($~Jft
Thomas R. Marshall, Jr.
Executive Secretary
Alaska Oil and Gas Conservation Committee
3001 Porcupine Drive
Anchorage, Alaska 99501
Published November 8, 1974
AFFlbAVIT OF
,
PUBLI\.-l TION
STATE OF ALASKA,
THIRD JUDICIAL DISTRICT, ss.
period of _._o.r:.e_....n insertions,
8
commencing on the nn._____day
Povember 7t+
of __ . . n u ___ _ __ __ n _ . p _ . . ., 1 9 .,.,.. , and
ending on the__.8n____n n.__' day of
]\T ov '2 rn be r ? Lt-
of ' _ . . . " . _ _ . __ n _ . _ __ __ . .. . . __ .' , 1 9. __ . n . "'
both dates inclusive, and that
such newspaper was regularly
distributed to its subscribers dur-
ing all of sa·id period. That the
full amount of the fee charged
for the foregoing publication is
';0 40
the sum of $ t'_ / · which
amount has been paid in full at
the rate of 30 ¢ per line; Mini-
mum charge $l~.O~ /!/
su~:f1:r.ý~;~f,:,/L
:J ~ s' rOV~""":b0r
me this __..nn day of.._nn____m_._.n,
'74
19C...
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('R Prud1hoe, ~y OM:, ·P:II'ó! , ", .;
Prudho~,..~¡y O,il F·i~ld" '
Pruld~Ø~'Y' TOPPing· :p1'ant I
. .t+olli()e is h~, given I t"a~ 'øri ap'pl~i:
4:ation .wa's' rè~r1~d' f~orn" the ~I'an, "tiC
. IRj,chfiel-d ¿'~¡'y. ,on Nove~er, 5,
, 1914 '~P'P'I.yin9 Ñ1I': ,aln' order putsU8,nt I
'to, TnIè l' ·\.Ala~(,a, Admlnis,'ra1Iive 1
C .lA+'" Sec .221540· req,ues-tlno
q,rr..'"f l '2-;'irÄ'Î!Í·hd: ,\f"~ Con-
C~',.!i:.-~,'~:¡~1tS no I'N,ol' I, '~1 i,A, '~()'¡; permit
seì~Jon ,: ,.(, '1"'"
OQ;l!i~fionof,I:",t e'1·U?I,eot C¥·" ~,
'/Io~p'ing, pJiI,~;~~;at ,.a , tbrø'ugh,~~t, rate
n~l.toexcee~..,:7,200 ba,rrels pe~ dalY
on a monlt.hII,;,,:~ve~age, ba'sis, -a,nd to
i:ri~rea'sethe':~~!Ún1e'O:f, oa'sllng~e¡l!Id' !I~S, i
:.Hå red '~o a~: 'a'rn,~un,t not too e~ceëcj',
'(iÚi:!,é1v,er'a,ge ~13'!~OO MCF per~ay"o~,
·,"ci,monthI1y·¡bìasl,I5':,' ":,' ',. ,:':'" .., '
":),'.' ','..:' ':!I':.'~.~" r~\I~
,', '"',:~".~':',,.',Th\; Q,perélti""~~" ',',;~, Ii~,'~, ,tfh~lt a~,', "èrit,id, ",I
1',li(uld fuel., ,r~a,g'e,"exlsts ,ntOr~h' of
ii;the Y~~'on . '/, ~ffecting !4.J1'e oon·
',' ~'ructio:n 0, ,. , ,eI1;l"r8l1's. ~I'a~~e Pipe·
.,",'Ine '.and :.'.!Clevel,opmenf of ,the
pl-lJcÌhoeBe}' l'6íl'liþleld. This, sl:lortage
c,~mlpl,i'oat~d",~,¥:>:;the re'cen't ',' \çss,;of
I' " " ue'I,·¡,e~ny.ing ai'rfr'aft':and
~" :f,
.. .~'!.~_ r.Y m~. ..::~. ~~.:3 .~ç 0.. _... m." .....-
being first duly sworn on oath
(~1,,¡ e
deposes and says that..__......._._..
. Lef'"1.1 Cl
IS th e.. .. _ _ __ . on . __ . . . . . . . - . .. .. .. --. of the
Anchorage News, a daily news-
paper. That said newspaper has
been approved as a legal news-
paper by the Third Judicial Court,
Anchorage, Alaska, and it is now
and has been published in the
English language continually as
a daily newspaper in Anchorage,
Alaska, and it is now and during
all of said time was printed in an
office maintained at the aforesaid
place of publication of said news·
paper. That the annexed is a true
Le~al Notice 6067
copy of a .;._____.._.......___.___..........
as it was published in regular
issues (and not in supplemental
form) of said newspaper for. a
..~ '
, ,.
¡r(,~', .
~~:~:J;~f~, "~"1 roi':',
Par',) es 'w.I\o'" !': "'he
r·equested order. 'is is~ued' s,re a,1 :OWed
10 days f~om 'Ihe date of .this
'P'Uiblioa"'ion in whi,eh 'Io me ep~otest '
and: ".~eq""es~' for', 'he~'rin9.· Plaice ',~'
.filin,,, 'i~ ··~l~'.P'o.roupi\1,e:Dr¡~"í·r~~~.:
choralgle,AiI!lsb~. ..··1f,:such..·~ 'PW,test,:,
is 'time.ly fHe~;a,.. h~ati·ng' ~~::~þ. '
matter wil,l, b~ .... l:Iel.d I·a~the ·&~OV.·'
a'Ødress alt 9:00.#IJ, November 19 I.'
1974, a,t whi:eh rime, pr~t,es"'a.nts and
others may' be. he&l'ct If no slueh
pr.otèst· is 'timely fOeti, the Oomrr1it~
t~e will consider tlhe i's.l1ua'n(;e~ '. 0.1'
the ot¥fèrwitf1¡out'. hearin~. .
/9/ Thomas R.. Ma,rsha·:I" Jr;,
Exeeutl.ye Seòrell&ry' , '
AI,åskie' Oil and Gat
COt1S8rvafion COmmiift.ee
3001 POl'ClIpìÞIIDrive
Å~oi'l8e, AI.. 99501 "
P~blish: Mo¥lmber 'It 1.9714 ,,'
Legai ~ictNo. .~__.
..........-............._-_....._--...------...
Notllry Public in IInd for
tne State of AIIISkll,
Third Division,
Anchorllge, Aluka
MY COMMISSION EXPIRES
_..._........P.çf-:../.~......._....., 19.1'_
#2
)
No. E - 91-B
STATE OF ALASKA
DEPARTl''iENT OF NATURAL RESOURCES
DIVISION OF OIL AND GAS
Alaska Oil and Gas Conservation Committee
3001 Porcupine Drive
Anchorage, Alaska 99501
EMERGENCY ORDER - NOVEMBER 1, 1974
Re: Conservation File No. 91-B
Atlantic Richfield Company
Prudhoe Oil Pool
Prudhoe Bay Topping Plant
The Atlantic Richfield Company has petitioned the Alaska Oil
and Gas Conservation Committee for an emergency order allowing ex-
ception to Rule 2 A and B of Conservation Order 91A to permit an
increase in the volume of crude oil produced for topping plant use
to an average of 7,200 barrels per day on a monthly basis and to
increase the volume of casinghead gas flared to an amount not to
exceed an average of 3,200 MCF per day, on a monthly basis.
An emergency order is hereby granted pursuant to Title 11, Alaska
Administrative Code, Section 222.555, permitting the referenced re-
quest until 7:00 AM November 15, 1974.
tfl. ð( 4r-JJIi
Thomas R. Marshall, Jr.
Executive Secretary
#1
AtlanticR ichfieldCompany
\~1
North Americ~ '\roducing Division
North Alas kiet
Post Office Box 360
Anchorage, Alaska 99510
Telephone 907 277 5637
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OIVISlON Of Ol~ ANP GA'
ANCHORAGe
November 1, 1974
Alaska Oil & Gas Conservation Committee
State of Alaska
Department of Natural Resources
Division of Oil & Gas
3001 Porcupine Drive
Anchorage, Alaska 99504
RE:
Conservation Order No. 91-A
Prudhoe Oil Pool
Prudhoe Bay Oil Field ..Ço V
Prudhoe Bay Oil Topping Plant + ~"1 {3
1r 'fJl/(.(,~ ,q /¿
Gentlemen:
The subject conservation order permits the operation of the
Prudhoe Bay topping plant at a throughput rate not to exceed
6,300 barrels of oil per day on a monthly average basis.
The purpose of this letter is to request authority to operate
at a higher throu4ghPut rate for the period £s.~~~.::""J£~"I:~~~~.S.~,ßÞ
l\To;:rember 30, 197 . ..~~'----- ...~.",...""._~
,,--';!'-.....r,;Mð;~(~Jli...-_."..;:t..w.~~
At the hearing leading to Conservation Order No. 91-A, I pre-
sented testimony about:
1. Estimated arctic heating fuel requirements for
the general areå of Prudhoe Bay
2. Capacity of the crude oil topping plant
3. Beneficial use of natural gas.
Since the hearing, we have found:
1. Consumption of arctic heating fuel has been
substantially higher than estimated
2. We have been able to fine-tune and modify the
crude oil topping plant to increase its capacity
3. Beneficial uSe of gas for the first drilling rig
is on schedule. We expect to start processing
gas next week.
'\
Alaska Oil & Gas Conservation Committee
Page 2
November 1, 1974
The unfortunate Hercules aircraft loss last Wednesday
dramatically focused the fuel supply problem north of the
Yukon River. The subsequent grounding of two identical
aircraft significantly reduced the number of Hercules
available in Alaska for supplying fuel and materials north
of the Yukon. This condition is expected to remain for
some months. An additional complication is the failure of
the Yukon River crossing barge to function dependably.
In light of the increased requirements for arctic heating
fuel from the crude oil topping plant, we need to determine
its existing maximum capacity. This will necessarily require
further capacity testing. We are requesting authority to
temporarily increase throughput for this purpose. We expect
the capacity to be about 7,000 barrels per day although our
more optimistic outlook suggests as much as 7,200 barrels
per day. If this authority is granted, we intend to increase
throughput in small increments until we reach a condition
which either causes the plant to operate erratically or
specification products cannot be made. During the time of
the capacity testing, we will study other possible beneficial
uses of natural gas. At the conclusion of the test period,
we will present to you the results of our test and beneficial
gas use stud,y.
Very truly yours,
w
. K. Williams
Operations Manager
LKW/mm
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