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12/1/2004 Orders File Cover Page.doc
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1.
2.
3.
August 12,1975
August 15, 1975
August 23, 1975
)
Conservation Order 91C
COT #2 State Hearing Testimony
Atlantic Richfield Company application re: CO 91 C
Notice of Hearing and affidavit of publication
Conservation Order 91C
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STATE OF ALASKA
DEPARTMENT OF NATURAL RESOURCES
DIVISION OF OIL AND GAS
Alaska Oil and Gas Conservation Committee
3001 Porcupine Drive
Anchorage, Alaska 99501
Re: The application of Atlantic )
Richfield Company for an order )
pursuant to Title 11, Alaska )
Administrative Code, Section )
22.540 modifying Conservation )
Order No. 91-B to permit the )
operation of the Prudhoe Bay )
Topping Plant at a throughput )
rate not to exceed an average )
of 13,000 barrels per day on )
a monthly basis, and to in- )
crease the volume of casing- )
head gas flared to an amount )
not to exceed an average of )
4,000 MCFper day on a monthly)
basis from September 15, 1975 )
through January 15, 1976. )
Conservation Order No. 91-C
Prudhoe nil Pool
Prudhoe Bay Oil Field
Prudhoe Bay Oil Topping Plant
September 18, 1975
IT APPEARING THAT:
1. Atlantic Richfield Company.submitted the referenced application dated
August 15, 1975.
2. Notice of public hearing was published in the Anchorage Daily News on
August 23, 1975 pursuant to Title 11, Alaska Administrative Code,
Section 22.540, and no protest was received.
FINDINGS:
1. The current upper limit on throughput of 7,200 barrels of oil per day,
as authorized by Conservation Order No. 91-B, results in a deficiency
of fuel required for the development of the Prudhoe Bay Oil Field and
the construction of the northern portion of the Trans-Alaska Pipeline.
2. A second crude oil topping plant has been installed thereby increasing
the combined throughput capacity to approximately 13,000 barrels per
day. The two plants share common inlet separation equipment, tankage,
and residual injection equipment.
3. The building of an addition to the base camp and a new construction
camp is currently under way to increase the beneficial use of casing-
head gas produced in the topping plant operation. Until completed
)
")
Conservation Order No. 9l-C
Page 2
September 18, 1975
in January 1976, approximately 4,000 MCF of casinghead gas will be
excess to beneficial uses.
CONCLUSION:
1. An increase in topping plant throughput will provide fuel required
for the Trans-Alaska Pipeline project and for development of the
Prudhoe Bay Field.
NOW, THEREFORE, IT IS ORDERED THAT:
1. Conservation Orders Nos. 91-Aand 9l-B are hereby revoked.
2. 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 oil into the Prudhoe Oil Pool, subject to the fol-
lowing conditions:
A. The volume of crude oil produced for topping plant use shall not
exceed an average of 13,000 barrels of oil per day on a monthly
basis.
B. The volume of casinghead gas flared shall not exceed an average
of 4,000 MCF per day on a monthly basis from September 15, 1975
through January 15, 1976. Thereafter the volume shall not exceed
an average of 3,200 MCF per day on a monthly basis.
DONE at Anchorage, Alaska, and dated September 18, 1975.
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~l fan co.y
Thomas R. Marshall, Jr.
Executive Secretary
Alaska Oil and Gas Conservation Committee
Concurring:
CA.~ :5?,,', L:-rl-~.
O. K. ~~~
Chairman
Alaska Oil and Gas Conservation Committee
~#~~
HOY~ H.~iiton
Member
Alaska Oil and Gas Conservation Committee
#3
\)
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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. 91-C
Re: Prudhoe Oil Pool
Prudhoe Bay Field
Prudhoe Bay Topping Plant
Notice is hereby given that an application was received from the
Atlantic Richfield Company on August 15, 1975 applying for an order
pursuant to Title 11, Alaska Administrative Code, Section 22.540
requesting changes in Conservation Orders Nos. 91-A and 91-B to per-
mit operation of the subject crude oil topping plant at a throughput
rate not to exceed an average of 13,000 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 4,000 MCF per day, on a monthly
basis from September 15, 1975 through January 15, 1976.
The operator states that this temporary increase in flaring of
casinghead gas is needed until construction is completed on projects
which will permit increased beneficial use of casinghead gas.
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 99501. If such a protest is timely filed,
a hearing on the matter will be held at the above address at 9:00 AM,
September 4, 1975, at which 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.
Thomas R. Marshall, Jr.
Executive Secretary
Alaska Oil and Gas Conservation Committee
3001 Porcupine Drive
Anchorage, Alaska 99501
Published August 23, 1975
#2
tla,D tic R ichHeJdCompany
North Americ- -:~oducing Division
Northt\las!c~ )ct
Post Office Box 360
Anchor3ge, Alas1<a 99510
Telephone 907 277 5637
)
August 15, 1975
Alaska Oil & Gas Conservation Committee
State of Alaska
Department of Natural Resources
Division of Oil and Gas
3001 Porcupine Drive
Anchorage, Alaska 99504
Subject: Application RE: Conservation Orders
91A and 9J:B
Gentlemen:
We are in the process of completing the construction
and installation of a second topping plant on the
North Slope. We respectfully request that Conservation
Orders 9lA and 9lB be modified to the extent necessary
to authorize Atlantic Richfield Company effective
S'eptember 15, 1975 ~ to produce up to 1~',000 barrels
per day of crude oil on a monthly average basis from
Drill Site No. 1-1 and No. 1-7 wells to serve the needs
of these plants. The estimated associated gas volume
with this producing rate will be 9,500 MCFD. We further
request the modification of these Orders to the extent
necessary to authorize a continuance of our existing
flare limit of 3,200 MCFD on a monthly average basis
until January 1, 1977, together with such additional
authority as may be necessary to permit us to exceed
this flare limit during the time period September 15,
1975 through January 15, 1976, inclusive, but not to
exceed a monthly average of 4,000 MCFD during this
period. This additional authority is requested pending
the completion of certain construction projects which
will serve to increase our beneficial use of gas and
enable us to comply with the existing flare limit of
3,200 MCFD o~ a monthly average basis.
,
In support of this request we submit the attached
statement for your' review and consideration. In
addition, we hereby recognize it will be necessary
to install certain metering facilities covering the
operation of both plants to satisfy your requirements
')
')
Alaska Oil & Gas Conservation Committee
Page 2
August 15, 1975
and we are currently in the process of preparing
plans in this regard. The necessary equipment will
be ordered and installed as soon as possible subject
to your approval.
Your favorable consideration of this rèquest will be
appreciated.
Very truly yours,
,
L. K. Williams
Operations Manager
LK1;~ / mm
Enclosures:
#1
DRAFT
8-12-75
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COT 112 STATE HEARING TESTINONY
Qualification Statement and Review from January 25, 1974, to date.
My name is I.. K. Williams. I appeared before the Alaska Oil & Gas Conservation
Committee January 25, 1974, in regard to Conservation File No. 9l-A. My position
and duties with Atlantic Richfield Company are the same as presented in my
qualification statement for that hearing.
My presentation today will track the 1974 presentation for we have the same problems
today as then - fuel requirements for the North Slope and South to Atigun cannot
be provided with present capacity. Last year we estimated Arctic heating fuel
requirements approaching 1,400 barrels per day during 1974, decreasing to 1,200
barrels per day in 1976. We now believe these estimates to be undercal1ed by a
factor of two for 1975 and 1976. I will explain this in more detail later.
From the 1974 hearing we received permission to produce up to 6,300 barrels per
day on a monthly average basis to charge the crude oil topping plant. As we
gained experience at this throughput rate, we found the plant had not yet reached
.its capacity. We continued to fine-tune and make physical changes in the plant,
such as pumps, valves, etc., until we determined the plant could process about
7,000 barrels per day. Additionally, we added to our staff, giving us closer
supervisory control. In November, 1974, we applied for and received permission
to operate the plant at a throughput rate not exceeding 7,200 barrels per day
on a monthly average basis. We were also given permission to flare not more
than 3,200 MCFD of gas on a monthly average basis.
DRA'FT
)
)
COT #2 State Hearing Testimony
August 12, 1975
Page 2
ARCTIC HEATING FUEL REQUIREMENTS
th\2 latte.r part of 197¿f:) lL:1Lson Tneetillgs ~\leJ"E~ start~;d ;for Anchorage-based
~epresentatives of Alyeska, BP and Atlantic. One of the liaison groups was
charged with the responsibility of projecting fuel needs, for it ,was obvious
at that time our prior projections were inaccurate~ The individual members of
this group re-established their needs. The results have been combined and are
presented as Exhibits "I" and "II" to be discussed later.
BENEFICIAL GAS USE
At the January, 1974 hearing, we sta,ted gas would be beneficially used by
installing an additional gas conditioning unit and an interim fuel gas system
to process gas for t'tV'O drilling rigs and our Base Camp expansion. We also
stated our permanent field fuel gas system was projected to be operational
the latter part of 1976, and any excess gas would be beneficially used in the
field fuel gas system.
The additional gas conditioning unit was installed and is operating satisfactorily.
Both drilling rigs were converted for dual fuel, although only one rig has been
using natural gas until August of this year. The other rig has been too remote
from the system to use gas but it has just been moved to Drill Site #5. Our Base
Camp expansion is on schedule; however, our demand for natural gas in the expanded
camp will be greater than projected at the January, 1974 hearing. In addition
to this, we now intend to use gas for heating at our construction camp. This
Ca¡~p is being constructed about one-half mile west of our Operations Center and
\vill be tied into our interim fuel gas system. The permanent field fuel gas
)
).
DRAFT
COT lj2 State Hearing Testimony
August 12, 1975
Page 3
sysl~em is still SCheC1tlled to be operational :Ln the latter part of 1976. Exhibit rlII"Cr
shows our projection for gai produced and gas beneficially used with 13,000 BPD
throughput. Exhibit "IV" shows our projection for gas produced and gas bene-
ficially used based on meeting projected Arctic heating fuel requirements.
CURRENT REQUEST
To accommodate the new requirements for Arctic heating fuel and dehydrated natural
gas, we are making substantial changes. In essence, we are doubling our capacity
to make Arctic heating fuel by installing COT #2. The process equipment for COT #2
is almost identical to the process equipment at COT #1. These two processing units
will share common inlet separation equipment, tankage, and residual injection
equipment. The Drill Site #1-7 well will be completed to provide additional
crude oil production capacity for the plants., We expect the expanded facilities
to be completed in September.
He request authority to produce up to 13,000 barrels per day on a monthly average
basis from the Drill Site #1-1 and #1-7 wells for plant charge. The associated
gas volume with this producing rate will be 9,500 MCFD. We further request a
continuance of our existing flare limit of 3,200 MCFD on a monthly average basis.
He request the flaring authority until January 1, 1977. This time frame should
give us sufficient time to correct any startup deficiencies in the field fuel
gas system.
)
)
DRl~FT
COT #2 State Hearing Testimony
August 12, 1975
Page 4
I wil.1 now explain the exhibits identified earl.ier:
Exhibit "I"
This exhibit shows our estimates of arctic
heating fuel required for 1975, 1976, and
the first half of 1977. Fuel requirements
in barrels per day are plotted on the "y"
axis with time on the "X" axis. The fuel
estimates include A.R.Co.-Exxon, BP Alaska,
Alyeska, and third party requirements in
the Prudhoe area. The Alyeska estimates
include fuel requirements up to the
Continental Divide in the Brooks Range.
The estimates only include requirements for the
immediate Prudhoe area of the three principals
and their contractors. They do not include
requirements for needs such as activities
resulting from a Beaufort Sea lease sale
or needs of other operators.
Exhibit "II"
This exhibit compares the top line from
Exhi bi t "I" ~.¡i th COT Plant capaci ty.
')
)
DRA.FT
COT #2 State Hearing Testimony
August 12, 1975
Page 5
Exhibit "1I11I
This exhibit shows the following:
1. Past seven months history showing gas
produced, gas beneficially used, and
flare volume.
2. Estimates from August 1, 1975, to
July 1, 1977. These include:
a. Gas production of 5.1 NMCFD
August 1, 1975, to October 1, 1975,
based on inlet charge of 7,000 BOPD
to one plant.
b. Gas production of 9.5 ~~ICFD October 1,
1975, to July 1, 1977, based on inlet
charge of 13,000 BOPD to two plants.
and based on a. & b. above- c. Maximum gas beneficially used and
Exhibit "IV"
flare volume (stippled area).
d. Minimum gas beneficially used and
flare volume (stippled area plus
cross-hatched area).
e. Timing for various events.
This exhibit shows the following:
1. Past seven months history showing gas
produced, gas beneficially used and
flare volume.
DRl\FT
COT #2 State Hearing Testimony
August 12, 1975
Pa.ge 6
')
)
2. Estimates from August 1, 1975,
to July 1, 1977. These include:
a. Gas production of 5.1 MMCFD
August I, 1975, to October 1,
1975, based on inlet charge of
7,000 BOPD to one plant.
b. Gas production varying from
8.9 MMCFD to 6.5 MMCFD during
the period October 1, 1975, to
July I, 1977, based on different
inlet charge volumes to meet
projected Arctic heating
requirements.
and based on a.& b. above- c. Maximum gas beneficially used and
flare volume (stippled area).
d. Minimum gas beneficially used and
flare volume (stippled area plus
cross-hatched area).
3. Timing for various events
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f 1 }-URN~~()u~D()~COT-U.1---- ..-~~ _oj - -- - - --
7DURI~G 9/!5-- -- - _.Y
r-1.- - 1
t975 1976
1977
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,f:~ ..," .n'f~ -,.f -;-~- n.C' ¡ .+t " ,',
~·MAXt..M.\~GAS. -BCttr:1T1C~LL ¥~-U$E D; . -::+
" ~___n______= _"" '~s{~:~~;-'m'i' ~ji;~;f~~;~t¡;lí'E1'~¡~-~~~:=-~- '~~;~'I' 'Ln+"
GAS PROOUCTWI. <C". ·,1.. .....h.........__......_._~ -, """" +,-
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A R.Co -EXXON TOPPING PLANT-PRUDHOE BAY FIELD
GAS SUMMARY - 13000 SOPO THROUGHPUT
EXHIBIT IJI
EXHIBIT N::
A.R.Co - EXX
. GAS ON TOPPING
~ ['-'--:":<:C ,_~' ., . .' ' SUMMARY- PROJ~~~~~ - PRUDHOE BAY FI
LL ," ..... : .....c--.' ... '. . FUEL REQ ELD
~ 1---.--g1fVAt!J'H-'~<; ..... i--.LuI . ... . '... ' UIREMENTS
I
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4. o;':/H:;f,:ÞP::\!);}:(\ ~ '. . '. . . "'.- . -.t J!gN~F'CJAL:LY · J~~' "j - ~.-
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, _~::~'.;.::¡~r'::':'i. EXPA,NDED '
; t~,{?il CF~~.:C 'pLL'.TE'TEESD' .'----'. - '
vm · ~-"F¡jJEt ~AS--··t
_~ _' lPLA.NT- -'
. . . 'S'tARt""UPJ--c-i..:
t TURNAROUND' ,
~__ .I'-"--.f:":j ..-n0URfNG9/~F5 -COTU-.-t
975 -, _L .c.._' : .: .
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I\tlanticR ichfieldCom pany
North Ameri.· -;~Oducing Division
North Alas. }ict
Post Office Box 350
Anchorage, Alaska 995-10
Telephone 907 277 5637
)
August 1St 1975
o·~, r..f ('0 ~ '1
tJpp/VI ~av
Alaska Oil & Gas Conservation Committee
State of Alaska
Department of Natural Resources
Division of Oil and Gas
3001 Porcupine Drive
Anchorage, Alaska 99504
Subject: Application RE: Conservation Orders
9lA and 9lB
Gentlemen:
We are in the process of completing the construction
and installation of a second topping plant on the
North Slope. We respectfully request that Conservation
Orders 9lA and 9lB be modified to the extent necessary
to authorize Atlantic Richfield Company effective
September 15, 1975, to produce up to 13,000 barrels
per day of crude oil on a monthly average basis from
Drill Site No. 1-1 and No. 1-7 wells to serve the needs
of these plants. The estimated associated gas volume
with this producing rate will be 9,500 MCFD. We further
request the modification of these Orders to the extent
necessary to authorize a continuance of our existing
flare limit of 3,200 MCFD on a monthly average basis
,----¿until January 1, 1977, together with such additional
authority as may be necessary to permit us to exceed
this flare limit during the time period September 15,
1975 through January 15, 1976, inclusive, but not to
exceed a monthly average of 4,000 MCFD during this
period. This additional authority is requested pending
the completion of certain construction projects which
will serve to increase our beneficial use of gas and
enable us to comply with the existing flare limit of
3,200 MCFD on a monthly average basis.
In support of this request we submit the attached
statement for you~ review and consideration. In
addition, we hereby recognize it will be necessary
to install certain metering facilities covering the
operation of both plants to satisfy your requirements
9/- c..
)
)
Alaska Oil & Gas Conservation Committee
Page 2
August 15, 1975
and we are currently in the process of preparing
plans in this regard. The necessary equipment will
be ordered and installed as soon as possible subject
to your approval.
Your favorable consideration of this request will be
appreciated.
Very truly yours,
,
-\
L. K. \.Jilliams
Operations Manager
LKW/ mm
Enclosures:
I
')
)
STATEiv.1ENT OF ATLANTIC RICHFIELD COMPANY IN SUPPORT
OF ITS APPLICATION TO MODIFY
CONSERVATION OEDERS
9' lA A~,rD 91B
Last year we estimated Arctic heating fuel requirements approaching
1,400 barrels per day during 1974, decreasing to 1,200 barrels
per day in 1976. We now believe these estimates to be undercalled
by a factor of two for 1975 and 1976. In order to accommoda-te
the new requirements for Arctic heating fuel and dehydrated
natural gas, we are making substantial changes. In essence, we
are doubling our capacity to make Arctic heating fuel by installing
COT #2. The process equipment for COT #2 is almost identical to
-the process equipment at COT #1. These "two processing uni ts will
=:> share co.mmon inlet separa'tion equipment, tankage, and residual
injectiQnequipment. The Drill Site #1-7 well will be completed
to provide additional crude oil production capacity for the
plants. We expect the expanded facilities to be completed in
September..
From the January 1974 hèaring we received permission to produce
up to 6,300 barrels per day on a monthly average basis to charge
the crude oil topping plant. As we gained experience at this
throughput rate, we found the plant had not yet reached its
c~pacity. ~~e continued to fine-tune and make physical changes In
c.he plan t, such as pumps , valves 1 e·tc., until we determined the
pl~nt could process about 7,000 barrels per day. Additionally,
)
')
we added to our staff, giving us closer supervisory control. In
November, 1974, we applied for and received permission to operate
the plant at a throughput rate not exceeding 7,200 barrels per
day on a monthly average basis. We were also given permission to
flare not more than 3,200 MCFD of gas on a monthly average basis.
ARCTIC HEATING FUEL REQUIREMENTS
In the latter part of 1974, liaison meetings were started for
Anchorage-based representatives of Alyeska, BP and Atlantic. One
of the liaison groups was charged with the responsibility of
projecting fuel needs, for it was obvious at that time our prior
proj ections were inaccura-te. The individual members of this
group re-established their needs. The results have been combined
and are presented in Exhibits I1r" and "II".
BENEFICIAL GAS USE
At the January, 1974 hearing, we stated gas would be beneficially
used by installing an aqditional gas conditioning unit and an
interim fuel gas system to process gas for two drilling rigs and
our Base Camp expansion. He also sta-ted our permanent field fuel
gas system was projected to be operational the latter part of
1976, and any excess gas would be beneficially used in the field
rU21 ga.s syste8.
-2-
)
')
The additional gas conditioni.ng unit was installed and is operating
satisfactorily. Both drilling rigs were converted for dual fuel,
although only one rig has been using natural gas until August of
this year. The other rig has been too remote from the system to
use gas but it has just been moved to Drill Site #5. Our Base
Camp expansion is on schedule; however, our demand for natural
gas in the expanded camp will be greater" than projected at the
January, "1974 hearing. In addition to this, we now intend to use
gas for heating at our ~~_~§j::Ltlçi:.:!-ºn....Q-ªJJ!I? This camp is being
constructed about one-half mile west of our Operations Center and
has been tied into our interim fuel gas system. The" permanent
field fuel gas system is still scheduled to be operational in
the latter part of 1976. Exhibit "III" shows our projection for
gas produced and gas beneficially used with 13,000 BPD throughput.
Exhibit "IV" shows our projection for gas produced and gas bene-
ficially used based on meeting projected Arctic hearing fuel
requirements. .
-3-
~
PRUDHOE
BAY
AREA - ARCTIC
HEATING FUEL SUMMARY EXHIBIT I
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PRUDHOE BAY AREA
ARCTIC HEATING FUEL SUMMARY
EXHIBIT n
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¡ -~-
~-' ~-- r~· ~ ---~-
A.R.Co.-EXXON TOPPING PLANT-PRUDHOE BAY FIELD
GAS SUMMARY -13000 SOPO THROUGHPUT
t.J\Hltsll ill.
1975
¡
0.0 L___l.._ ..
...
6.0
8.0
. ¡ -. .:. f.. 'j--
:. ·1..:...;-+··
í
10.0
EXHIBIT TIZ:
A.R.Co.-EXXON TOPPING PLANT-PRUDHOE BAY FIELD
GAS SUMMARY-PROJECTED FUEL REQUIREMENTS
! .
, . ,
1 ., I : . ; ". :,-; ;,.~ " .~; .i.'-f]as:prÞdUced¡ baSed1on::prpjected.£u¢~qd~~;nt.:~rsuS:'~:::~:;
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2.0
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