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Home My WebLink AboutCO 115 ) -) 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. é¿,o I I 5 Order File Identifier Organizing (done) o Two-sided 1111111111111111111 o Rescan Needed 111I1111I1111111111 RESCAN DIGITAL DATA OVERSIZED (Scannable) D Maps: D Other Items Scannable by a Large Scanner D Color Items: D Greyscale Items: D Diskettes, No. D Other, NolType: D Poor Quality Originals: Scanning Preparation BY: Helen ~ \ x 30 = + OVERSIZED (Non-Scannable) o ~09S of v~~~n1È~~( ø IT (AIr ¡o..: 4ZI Other:: I fI ~ IT / ~t.-o , Date: IR, '7/ 1~llíi/ll~ ~~Q Date/a, 7 os- Isl ~i) = T:JTAL PAGES ~ b~~~~(;/' ,not I 'õS°:.~r sheet) Y1fJ ,7. 11I1111111111111111 D Other: NOTES: BY: Helen,- Mari'a ) Project Proofing BY: HelenÇMaria) Production Scanning Stage 1 Page Count from Scanned File: b {¡; (Count does Include cover sheet) Page Count Matches Number in Scanning Preparation: V YES NO I I HelenCMarla_J Date:h, 7. ()S Isl YVt~') If NO in stage 1, page(s) discrepancies were found: YES NO Stage 1 BY: BY: Helen Maria Date: /sl 111111111111111111I Scanning is complete at this point unless rescanning is required. ReScanned 1111111111111111111 BY: Helen Maria Date: Isl Comments about this file: Quality Checked 11I1111111111111111 12/1/2004 Orders File Cover Page. doc ) 1. 2. 3. 4. July 10, 1973 July 15, 1972 January 11, 1980 January 25, 1980 -) Conservation Order 115 Union's request for a Spacing Exception Notice of Hearing and Affidavit of Publication Union's Application for Modification ofField Rule 3 Transcript Conservation Order 115 ) ) ') ) 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 APPLICATION OF UNION OIL COMPANY OF CALIFORNIA for an amend- ment to Rule No.3 of Conservation Order No. 93, to eliminate the requirement that each we I I com- pleted in the Trading Bay Middle Kena I "0" and "E" 0 I I Poo I s be equipped to permit separate test- ing of the pools for al location for production. Conservation Order No. 115 Trading Bay Field Trad i ng f3ay ~~ i dd Ie Kena I "D II and tT E" 0 i I Poo I 5 August 15, 1972 IT APPEARING THAT: I. Union Oi I Company of California submitted an application dated July 10, 1972, requesting the referenced order. 2. A notice of public hearing was published in the Anchorage Oai Iy News on July 15, 1972, pursuant to Title I I, Alaska Adminis- tration Code, Section 2009, and there were no protests. FINDINGS: I. Three wel Is, the Trading Bay A-8~ A-IO and A-13 are completed so that the Middle Kenai 1'10" and I!E" Oi I Pools can be commingled In one tubing string, or can be produced separately. 2. Packer leaks into the tubing-casing annulus and scale bui Id-up in the tubing string restrict ability to separately test the nD" and "E" oi I pools. 3. The ~~Iddle Kenai "EI! 01 I Pool containc; a relatively small amount of 01 I, insufficient to justify dri I ling separate wel Is to recover oi I from this pool. 4. The "0" 01 I pool Is under presc;ure maintenance~ but the "E" oil poo lis not. CONCLUSIONS: I. Recompletion of the Trading Bay A-8, A-IO and A-13 we I Is without the capacity to separately tec;t the 110" and l1E" oil pools should minimize packer leaks and scale bui Id-up, and c;hould increase ultimate recovery of 01 I from both poole;. ') ) Conservation Order No. 115 Page 2 August 15, 1972 ') ) 2. The comm i ng I ad product ion 5tream f rom the t·1 i dd Ie Kena i "0" and "E" 0 i I Pools can be rea50nab I y a II ocated to the i ndi vi dua I poo Is, based on thickness of productive intervals in each pool. 3. Permission to commingle the "0" and "E" oi I pools in the well bore without the capacity to separately test the pools should be limited to the individual wells where mechanical and reservoir conditions are known. NOW, THEREFORE, IT IS ORDERED THAT: Rule No.3 of Conservation Order No. 93 is amended to read as fol lows: Rule 3. Comminqlinq Commingling in the we I I bore of production from the Trading Bay Middle Kenai "!)" and "E" Oi I Pools is allowed, provided each well except the Trading Bay A-a, A-IO and A-13, is equipped to permit separate testing of the defined pools for al location of production. Allocation of pr'oduction between the "0" and liE" oi I pools from the A-8, A-IO and A-13 we I 15 5hall be reported monthly on Form 10-405 (P-5). DONE at Anchorage, A¡aska, and dated August 15, 1972. " ,- Thomas R. Marsha II, Jr., Executi ve Secretary Alaska Oi I and Gas Conservation Committee co;:;: ~~~ð .Ç)~, Homer L. Burrel I, Chairman Alaska Oi I and Gas Conservation Committee rflr.~~. O. K. G i I b re th.. Jr., Me~~ - Alaska Oil and Gas Conservation Committee #4 ANCHORAGE, ALASKA 99501 509 W, 3RD AVENUE 274-9322 R & R COURT REPORTERS 810 N STREET, SUITE 101 277-0572 - 277-0573 4>~ " p~ ('PI "T~ '\. ,:¿l <'"l t 404' '""l'II4r, '. .,;' ,. , <1 ~,Ai "l" ,A ."1 .:.} ce ", '/,','~ \:J;:¡.., .I,;~~' -:' l oi ,'.;1»' ,'''' ~Ø)¡) ,it>!' ""VJ':" "" ~.,~. ~ 1:"'1 "'''''t, ii, i~ ""<'" ';¡j Q" * * * * * JEFF LOWENFELS, Assistant Attorney General for the State of Alaska. HARRY KUGLER, Board Member. LONNIE c. SMITH,~Board Member. HOYLE H. HM~ILTON, Chairman. APPEAHANCES: January 25th, 1980 10:00 o'clock a.m. Anchorage, Alaska ALASKA OIL and GAS CONSERVATION COl1.r1ISSION 3001 Porcupine Drive Anchorage, Alaska 99504 TRANSCRIPT: OFPUBLTC HEARING / c 6 ~ \IS '~ l ~1 \ 1 2 3 4 5 6 7 8 9 10 11 12 ,( 13 14 15 16 17 18 19 20 21 22 23 24 25 { ..1"11. I( 1 2 3 4 5 6 7 8 9 10 11 12 ( 13 14 15 16 17 18 19 20 21 22 23 24 25 -<.~ 1 ( ;{ PRO C E E DIN G S - -- MR. HAJ1ILTON: I'd like to call the hearing to order and I apologize to everyone for the delay today. This is a hearing called by the Oil and Gas Conservation Commission. I'm Hoyle Hamilton, Chairman of the Commission. To my left is Commissioner Lonnie Smith. To my immediate right is Commissioner Harry Kugler. And, to my far right is Jeff Lowenfels from the Attorney General's office. At this time, Harry, would you read the Notice of the hearing? MR. KUGLER: This is the Notice of the hearing. It was printed in the Anchorage Daily News on January the 5th 15th, 1980. It's conservation file 162 with reference to the application of Union Oil Company of California, dated January 11, 1979. That~s obviously a typo error there. It was 1980. For an order modifying con',ervation order number 115, dated August 15th, 1972 which pretains to the Trading Bay field. Notice is hereby qiven that Union Oil Company of California has requested the Alaska Oil and Gas Conservation Commission to issue an order modifying conserv~tion oider number 115 which pertains to the comingling of production from oil pools in the Trading Bay field. The operator states that the Trading Bay field is in the late stages of it's productive life. There are no more conductors available on the monopods to drill more wells and that each well bore must be used to it's maximum potential. The operator further R & R COURT REPORTERS 810 N STREET. SUITE 101 277-0572 - 277-0573 509 W. 3RD AVENUE 274-9322 ANCHORAGE. ALASKA 99501 1 2 3 4 5 6 7 8 9 10 11 12 I( 13 14 15 16 17 18 19 20 21 22 23 24 25 ~~1 -3- states that without modification, there could be a loss of reserves in the Trading Bay field. A public hearing will be held in the Municipality of Anchorage Assembly Room, 3500 East Tudor Road, Anchorage, Alaska, at 9:00 a.m. on January 25th, 1980. Union Oil Company of California will present testimony in support of their appli- cation and oral and written statement will be taken from all interested parties. The original was signed by myself. And, again, I repeat, it was published in: the Anchorage Daily News on January 15th, 1980. HR. HAMILTON: The Commission will receive both sworn testimony and unsworn statements today. It will give greater weight in it's deliberations to sworn testimony. All persons wishing to testify will be sworn. Each witness that wishes to give expert testimony shall state their qualifications and the Commission will rule on whether the: witness qualifies as an expert. The applicant will be asked to present his testi- mony first. All others wishing to present testimony will be heard next. Upon request, the Commission may allow cross examination of witnesses by the applicant or af£ected owners. Any person wishing to make an oral statement will be allowed to do so after the conclusion of all testimony. Any person wishing to submit a written statement will be permitted to do so after R & R COURT REPORTERS 810 N STREET, SUITE 101 509 W, 3RD AVENUE 277-0572 - 277-0573 274-9322 ANCHORAGE, ALASKA 99501 It 1 2 3 4 5 6 7 8 9 10 11 12 ( 13 14 15 16 17 18 19 20 21 22 23 24 25 ~1 -4- the conclusion of the oral statement. The Commission may ask questions of any of the witnesses. MembE~rs of the audiance will not be permitted to ask questions of witnesses directly. Should anyone wish to have a question directed to a witness, they must write the question down indicating to whom the question should be directed, then give it to one of the Commission members. Before the end of the hE;aring, the Commission will review these questior.s and ask those which it believes will be helpful in eliciting needed information. All questions will be included in the hear- ing record. A written transcript of tbe hearing record will be prepared arid included in the public record of the hearing. At this time, I'd like to ask the applicant, Union Oil, if they'd like to present their testimony. MR. ANDERSON: Thank you, Mr. Hamilton. My name is Robert T. Anderson. I'm the Alaska District Land Manager for Union Oil Company of California, the oil and gas division. On Jnauary, 1980, I wrote a letter requesting a modification of the conservation order 115 modifying rule 13, comingling, substituting the following language for that rule, in quotes: "...commingling in the well bore of production from the Trading Bay Middle Kenai 'D' and 'E' Oil Pools with the Hemlock Oil Pool is allowed. Allocation of production between the 'D', 'E', and Hemlock Oil Pools shall be reported monthly on Form 10-405." I would like to introduce I',to you today M,r. Charles H. Case, who is the Alaska District Engineer for Union Oil R & R COURT REPORTERS 810 N STREET, SUITE 101 277-0572 - 277-0573 509 W, 3RD AVENUE 274-9322 ANCHORAGE, ALASKA 99501 I( 1 2 3 4 5 6 7 8 9 10 11 12 ( 13 14 15 16 17 18 19 20 21 22 23 24 25 ~1 ( -5- Company of California, and I would like to give his qualifica- ti.ons and ask if you'd certify that he is an expert. MR. HAMILTON: Pardon me, Hr. Anderson. ArE; you going to have more than one witness testify today? We could swear them all in at one time. It might be helpful if you arE;. MR. ANDERSON: Mr. Hamilton, Mr. Case is the only expert witness we'will have testify today. However, if questions should arise covering geological matters or other enginnering matters, Mr. Case may call upon others in the audience who are with him. At that time, we'll introduce and have them sworn. MR. HAMILTON: That'll be fine. MR. ANDERSON: Gentlemen, Mr. Charles H. Case graduated from the University of Southern California in 1958 with a Bachelor of Science degree in petroleum engineering. A.fter graduation, ~1r. Case went to work for the Union Pacific Railroad as a patroleum engineer in the ~vilminton Oil Pield in Wilmington, California where he served four and a half years as a -- on resevoir assignments in unitization and on water fluías'~>' design. In 1963, he joined Union Oil Company of California in Orchid, California where .M:r . Case had assignments in production operations and resevoir engineering for four years. In 1967, Mr. Case transferred to Oklahoma City, Oklahoma as a resevoir engineer primarily assigned to monitoring water fluids and gas field performance. After two years in Oklahoma City, he R & R COURT REPORTERS 810 N STREET, SUITE 101 509 W, 3RD AVENUE 277-0572 - 277-0573 274-9322 ANCHORAGE, ALASKA 99501 ( 1 2 3 4 5 6 7 8 9 10 11 12 I( 13 14 15 16 17 18 19 20 21 22 23 24 25 ~1 ,( -6- transferred to Coalinga, California. Mr. Case was promoted to area supervisor. Again, his primary assignment was petroluem and resevoir engineering with some drilling responsibilities. After four years in Coalinga, he was assigned to Bakersfield area as an area production superintendant. This assignment covered all phases of production in the heavy oil thermal operation. The length of hils assignment was five and a half years, at which time he was transferred to his present position as Alaska District -- to the Alaska District as the district engineer in March of 1979. His primary responsibilities are with petroleum and resevoir engineering. During his career with Union, he had attended various production, drilling and resevoir continuing education courses. Mr. Case is a membE:r of the society of petroleum engineers of the A.I.M.E. and a member of the American Petroleum Institute. I'd like to introduce Mr. Charles Case. MR. HAMILTON: The Commission will accept Mr. Charles Case and an expert witness. MR. ANDERSON: Thank you. MR. HAMILTON: Mr. Case? MR. CASE: I thank you. On about the fourth page in the .... MR HAMILTON: Pardon me, just a second. We'd like to swear you in before you start your testimony. MR. CASE: Sure. Okay. CHARLES CASE, R & R COURT REPORTERS 810 N STREET. SUITE 101 277-0572 - 277-0573 509 W. 3RD AVENUE 274-9322 ANCHORAGE. ALASKA 99501 1 2 3 4 5 6 7 8 9 10 11 12 ( 13 14 15 16 17 18 19 20 21 22 23 24 25 ~1 -7- having been duly sworn under Oath, testified as follows: MR. CASE: The text that I'm going to read into the hearing minutes is on about the fourth page in that booklet. This engineering testimony will support the request for permission to allow commingling of production from the Middle Kenai "D" and "E" Oil Pools with the Hemlock Oil Pool in the Trading Bay Field. It has been the practice to complete wells producing from the D, E and Hemlock as dual producers with the D and E being produced from the string and the Hemlock zone produced from the long string. To date, two wells, TBS A-2, A-8, and A-13 have been completed in this manner. I refer here to figures I through III. And, I'd like to ask that figures I through VIII and Exhibit A be included in the minutes of the hearing. A copy of Exhibit A is up there for any reference we / might want to make. Figure~' one through three are the schematic diagrams showing the dual packer completion configuration. If you'd like to discuss that, we can flip back there now or discuss it after I finish reading the testimony. MR. HAMILTON: Why don't you go ahead, Mr. Case. We ca refer back to that later. MR. CASE: All three wells have experienced tubing leaks. Well A-2 experienced a leak shortly after being recompleted in March~ 1977 and was granted an exception through conservation order 147 to commingle the D zone and the Hemlock R & R COURT REPORTERS 810 N STREET. SUITE 101 277-0572 - 277-0573 509 W, 3RD AVENUE 274-9322 ANCHORAGE. ALASKA 99501 'It 1 2 3 4 5 6 7 8 9 10 11 12 ( 13 14 15 16 17 18 19 20 21 22 23 24 25 ~1 ( -8- Production. Cumulative recovery from the D zone since that exception was granted is 625,000 barrels of oil with cumulative recovery from the Hemlock of 389,000 barrels. This additional oil production from the Hemlock was made possible through Conservation Order 147. The well is currently producing 710 barrels of oil per day with 60% of the oil produced from the D zone and 40% from the Hemlock. Well TBS A-8 was recompleted in December 1975. It developed a tubing leak in August of 1978. The well contin- ued to produce until ~1ay, 1979, at which time the Hemlock sanded out and would not produce. TBS A-13, the third well wi th the sa:n.à problem, was recompleted with new tubing in May, 1977. By August of 1978, the well had developed a tubing leak. Production from Hemlock declined from 580 barrels of oil per day to 23 barrels of oil per day in two months. Production from the short string, the D and E zones increased from 441 barrels of oil per day to 519 barrels of oil per day during this same period, primanily due to increased gas lift efficiency. We again are referred to Figures IV and V for the production curves. This situation continuèd until June of 1979 at which time the long string stopped producing.; The well was worked over in November of 1979. Multiple tubing leaks were found during this time. Mechanically (by cement squeeze, isolation packers and so forth) it was decided that the sand entry could not be eliminated, so the well R Be R COURT REPORTERS 810 N STREET. SUITE 101 277-0572 - 277-0573 509 W. 3RD AVENUE 274-9322 ANCHORAGE. ALASKA 99501 ( 1 2 3 4 5 6 7 8 9 10 11 12 ( 13 14 15 16 17 18 19 20 21 22 23 24 25 ( \ ~1 -9- was completed as a single D and E zone producer with the Hemlock isolated by a packer. We are referred to Figure VI for that schematic. Commingling the Hemlock with the D and E zones at A-13 location could result in the recovery of an additional 500,000 barrels of oil which would otherwise be lost. The case of the tubing leaks if sand production resulting from increased water production, The fine material in the formation is water wet and when the water saturation in- creases sufficiently to cause the water to move, the fines begin moving with it. This production of sand and water results in the erosion of the tubing until a hole develops. Once the holes develop, productivity from the long string ( the Hemlock Zone in this case) usually declines due to reduced gas lift efficiency. Eventually, production from the long string declines to zero and the flow rate becomes insufficient to remoce the fines and sand. This material forms a bridge which plugs a long tubing string resulting in a tital loss of production from the Hemlock. D zone oil is 27.6° API gravity with a bubble point of 2502 pounds per square inch. The D zone is currently being waterflooded to maintain resevoir pressure. Current rese- voir pressure in the D zone is 2,560 psig. Refer to Figure VII. The E zone oil is 29.8° API gravity with a bubble point of 2706 psig. The E zone is not currently being waterflooded and it is impossible to measure the pressure of the E zone resevoir since all E zone wells are commingled with the D zone. Hemlock oil is R & R COURT REPORTERS 810 N STREET, SUITE 101 277-0572 - 277-0573 509 W. 3RD AVENUE 274-9322 ANCHORAGE, ALASKA 99501 ( 1 2 3 4 5 6 7 8 9 10 11 12 ( 13 14 15 16 17 18 19 20 21 22 23 24 25 ~1 -10- 31.1° API gravity with a bubble point of 1,622 psig. Material balance work h~s shown the Hemlock to bE~ supported by an active aquifer influx. Current reservoir prE:ssure in the Hemlock is 2100 psig. Refer to figure VIII. The Trading Bay Field is in the late stages of its productive life. All available slots in the platform have been drilled. Cumulative recovery from the Trading Bay Field is app~oximately 54 million barrels of oil. This is 84% of the expected 65% million barrels ultimately recoverable. Of this 65 million barrels of oil, the D, E, and Hemlock should account for 41 million barrels or 63% of the ultimate recovery. Of the 11 million barrels remaining to be recovered, approximately 4.3 million barrels are to be recovered from the D and E zones, 3.6 million barrels from the Hemlock. Currently, there are six wells producing from the D and E zones. Wells TBS a-2, A-6 and A-IS are the only wells presently~producing from the Hemlock. The remaining four Hemlock wells are presently shut-in primarily due to tubing leaks. ""7ell A-2 is producing at a reduced rate due to tubing leaks. This is one that was granted the exception 147 earlier. In order to recover the remaining reserves, it will be necessary to workover and recomplete several D, E, and Hemlock producers. The ability to commingle the D, E and Hemlock will eliminate the need to prematurely abandon wells and will provide an auction during future recompletions and workovers R & R COURT REPORTERS 810 N STREET. SUITE 101 277-0572 - 277-0573 509 W. 3RD AVENUE 274-9322 ANCHORAGE. ALASKA 99501 t. 1 2 3 4 5 6 7 8 9 10 11 12 (' 13 14 15 16 17 18 19 20 21 22 23 24 25 ~~1 { -11- which will help Union Oil Company of California, operator of the Trading Bay Field, to maximize ultimate recovery. And, that concludes my prepared testimony. MR. HAMILTON: Mr. Case, you testified that your well A-13, you'd obtained approximately 500,000 barrels of additional oil if you're allowed to commingled in that well. Do you have an estimate of what the loss might be, or to put it another way, what additional oil -- an estimate of the addition recovery would be if your request for commingling were approved for the entirE':... MR. CASE: The total? No, I could make an estimate~ but I don't really have a good figure on that. It would be maybe three or four times that if there's three or four wells involved here. HR. HAMILTQN: But, the remaining reserves that you've mentioned in your testimony here... MR. CASE: Are attributable just to A-13. HE~- oock and A-13. MR. HAMILTON: Okay, but the othE;r reserves you talk about toward the end; this is if you were allowed to comming- Ie? MR. CASE: Oh, yes, sir. That's right. The 3.6 million barrels total. MR. HAMILTON: So, there'd be somewhat less than that if we did not permit commingling? R & R COURT REPORTERS 810 N STREET. SUITE 101 277-0572 - 277-0573 509 W. 3RD AVENUE 274-9322 ANCHORAGE. ALASKA 99501 :( 1 2 3 4 5 6 7 8 9 10 11 12 ( 13 14 15 16 17 18 19 20 21 22 23 24 25 ~1 -12- MR. CASE: That's correct. There's other ways that you can make single completions out of the Hemlock, but then you lose it in the D and E. .MR. HAM.ILTON: You mention, I believe, earlier if commingling were allowed between the D and E and Hemlock that there would be an allocation between the .zones? MR. CASE: The production, right. Based on prior production performance and any subsequent production surveys we run, we would allocate the production on that basis. MR. HAMILTON: Do you think that would be better than net sand or some method of this sort? MR. CASE: Yes, they don't seem to produce like we think they should from (indiscernible) all the time, so I'd rather see some demonstrated evidence. Either past performance would be the best; production surveys would be next. MR. KUGLER: I had a question here on the -- in your testimony here you said thei·.current resevoir pressure in the D zone is 2560? MR. CASE: Correct. MR. KUGLER: That's figure VII. Union Oil Isub- submitted a ,~- the eighteenth semi-annual progress report on the pressure maintenance progress report on the pressure maintenance project in the Trading Bay Field, C and D pools. This is dated July 1, '79, and in that, it says that the current average reser- voir pressure -- this is the D pools; 2018. And, now, it's R & R COURT REPORTERS 810 N STREET. SUITE 101 277-0572 - 277-0573 509 W. 3RD AVENUE 274-9322 ANCHORAGE. ALASKA 99501 ( 1 2 3 4 5 6 7 8 9 10 11 12 ( 13 14 15 16 17 18 19 20 21 22 23 24 25 ~1 -13- 2560? MR. CASE: This was which fault block? Now, this was just the C and D or just the D pools? MR. KUGLER: D pools, it says. This is prepared by Steve Lambert and Bill Hatch. HR. CASE: To answer that question, I wonder if we could swear in Mr. Lambert? MR. KUGLER~ This is fault block 2a. The average --current average reservoir pressure at minus 5628 feet. MR. CASE: 5628 sub-C, there. You can see the attatched D zone pressure. He turned that in in July. He had those last two points up there. We might -- I would have to say that the 25 -- 2560, as I recall, it averages out in here, is probably pretty close in the money. Without those last two points, you would come down substantially. There's about three points there in '79 and one in '78 that brings that pressure average up quite a bit. In one point in early '78 that you might discount when you're trying to take average resevoir pressure; if you'll notice that plot way to the top, you would tend to draw a line somewhere around the 2000 plus. ¡As you end up in early '78 back through '76. However, the last two pressurE: points we've plotted on there in Mayor June, 1979 bring that pressure up really well over 2,600 pounds. Without talking to Mr. Lambert, I would say maily I would've included those last two points. R & R COURT REPORTERS 810 N STREET. SUITE 101 277-0572 - 277-0573 509 W. 3RD AVENUE 274-9322 ANCHORAGE. ALASKA 99501 ( 1 2 3 4 5 6 7 8 9 10 11 12 ( 13 14 15 16 17 18 19 20 21 22 23 24 25 ~1 -14- MR. KUGLER: Well, this is data -- it says on the. . . l MR. CASE: It says July, I know. MR. KUGLER: ... dated to July 1. And, I'm trying to -- is there a discrepancy or is there a... MR. HAMILTON: Are these at the same data point as that... MR. CASE: Yes, they are. What was submitted is a material balance pressure calculation in July, and this takes -- when you say data, this is your injection in gas and oil withdrawals. That gives a theoretical of 2,018 pounds per square inch. And, this is the actual. The curve we show you here is what we're measuring in the field. So, our material balance is (inaubihle). But, that's a mathematical calculation versus our actual measurements. MR. SMITH: This is Lonnie Smith, Mr. Case, the actual measurement, is this in a particular well or this is in serveral wells on an average? This represents the pool, though? The D zone? MR. CASE: The actual pool performance, right, through various wells. All the walls are represented here, they're not given annual surveys as we do maybe in gas fields or something like this, but these are points we've had shut-ins to get a build up and buy more pressure. MR. SMITH: I might point out that the data R & R COURT REPORTERS 810 N STREET. SUITE 101 277-0572 - 277-0573 509 W. 3RD AVENUE 274-9322 ANCHORAGE. ALASKA 99501 { 1 2 3 4 5 6 7 8 9 10 11 12 ( 13 14 15 16 17 18 19 20 21 22 23 24 25 ~1 -15- presented in our recent most recent statistical report for the D zone of which we rely on thE: operators' reports to obtain that data, we showed a December the 31st of '78 resevoir pressure for the D zone of 1875 which is an even greater discrepancy. MR. CASE: Again, this came from the report sub- rnitted to the State on material balance. We -- jumping over to another field is an illustration on the Trading Bay unit on material balance calculation were in extreme error in pr€:paring an isoberic at the Engineering Committee. We had to correct our reports to the State on that. The material balance didn't jive at all with the actaul field performance. MR. SMITH: Not being an engineer, I'll ask one further question. What do you think the pressure is in the D pools? MR. CASE: 25600. Okay field performance over that material down there. MR. SMITH I had a question. If the modifica- tion you request now is not granted, will there be a loss of ul- timate recovery in the Trading Bay Field? MR. CASE: Yes. MR. SMITH Your testimony indicated that, but that's your professional opinion that it would be? MR. CASE: That it. MR. HkMILTON: Mr. Case, I have a report here of the wells that were producing from the Hemlock zones as of October R & R COURT REPORTERS 810 N STREET. SUITE 101 277-0572 - 277-0573 509 W. 3RD AVENUE 274-9322 ANCHORAGE. ALASKA 99501 ,il ( ~1 -16- 1 of last year. It's not more current than that, but, it shows 2 here that there's five wells that are -- have not been produced 3 or werE:n' t producing at that time. Do you envision that all of 4 these wells or many of them will be put back on production? 5 MR. CASE: There was one added well since 6 October, That would be TBS A-IS. We've added that back into 7 production. That is a single. An~, A-13 would be an excellent 8 candidate to move on the first one. A-8 has a similar situation. 9 A-2 is currently producing both Hemlock and D. We '.·re allocating 10 that one in that conservation order I referred to. How soon we 11 would get in there to that one, we may not, if we didn't have to. 12 The problem arises in economics and recompleting a well and then 13 having it cut through the tubing in ten months to a year and a 14 half. T.o move onto that platform with. one 4-1 well is just un- 15 economical. 16 MR. HAMILTON: If your request for commingling 17 were granted, would you anticipate any additional perforating in 18 the zones or possibly some redrilling of any wells? 19 MR. CASE: Yes, th€~re' s two candidates for re- 20 drill. And, there are several D fans that are not being produced 21 right now. They would be perforated. 22 MR. SMITH: Mr. Case, on the -- back to the 23 reservoir pressures, now, we discussed the D and E pressures. The 24 Hemlock pressure, I think you said is 2100, is that correct? 25 MR. CASE: Yes, sir. R & R COURT REPORTERS 810 N STREET. SUITE 101 277-0572 - 277-0573 509 W. 3RD AVENUE 274-9322 ANCHORAGE. ALASKA 99501 ANCHORAGE, ALASKA 99501 509 W, 3RD AVENUE 274-9322 R & R COURT REPORTERS 810 N STREET, SUITE 101 277-0572 - 277-0573 MR. CASE: Yes, I think you would. The pressure Hemlock? -- that you might have cross-flow from the D and E to the would have -- would you have a situation, in your opinon, where for some reason or other, mechanical or otherwise, then you the situation where a well had to be shut-in for a period of time MR. SMITH: I suppose the problem if you got into to take the lesser rate and have it on production. one or the other would -- would be shut in. So, it's our desire plug or eliminating the D and E and completing on the Hemlock, get 450, 480. But, the alternative of leaving it below a bridge might get 600 barrels a day. By commingling, we might only by commingling. In other words, we have single Hemlock and we a result of that, we would pull a lesser rate out of the Hemlock draw on it like we would like to have if it were a single. As into the well bore. We wouldn't have the design gas lift to have enough draw down into the well bore to produce all zones MR. CASE: As far as cross-flow, no. We would down hole cross-flow and how would you prevent that? MR. SMITH: Do you see any problems there with MR. CASE: That's correct. Hemlock, is that correct? between the D and E, but we haven't between the D and E and the forsee any 'problems between the -- previosly we have commingled MR. SMITH: In it's deeper zone, too, do you -17- l ~1 1 2 3 4 5 6 7 8 9 10 11 12 ( 13 14 15 16 17 18 19 20 21 22 23 24 25 ,~\ 1 2 3 4 5 6 7 8 9 10 11 12 ( 13 14 15 16 17 18 19 20 21 22 23 24 25 ( ~1 -18- differential, you're going to have to push it somewhere until it equalizes. MR. SMITH: What kind of provisions could you make to prevent that in case you got into a situation with the well where you had to shut it in? MR. CASE: If we have a single completion, it's easy enough to sand out the -- the Hemlock and isolate it from the D and E zones; through the tubing without even -- we might run a small string in and sand it out that way. MR. SMITH: Load it with sand? MR. CASE: Correct. MR. SMITH: In relation to the sand problem, do I understand that the sand production probably has been happening from the Hemlock, is that correct? Þ.1R . CASE: No, it's from the D and E zones. MR. SMITH~ From the D and E? MR. CASE: Yes. As the water saturation goes up, we seem to move those fines and they come in with high water rates and erode the tubing, and that's primarily a D and E problem. MR. SMITH: And, you expect this problem essentially to be solved since you'll be producing through any tubing that's going through the D and E? MR. CASE: That's correct. MR. SMITH: In the past, have you run blast joints R & R COURT REPORTERS 810 N STREET, SUITE 101 277-0572 - 277-0573 509 W, 3RD AVENUE 274-9322 ANCHORAGE, ALASKA 99501 ( 1 2 3 4 5 6 7 8 9 10 11 12 ( 13 14 15 16 17 18 19 20 21 22 23 24 25 { ~1 <t -19- through that section to try to prevent that problem? MR. CASE: Yes, sir, we have. The blast joints are what had -- I referred to tubing, but it was the blast joint that had holes in it. MR. KUGLER: If this modification as you've applied for is granted, do you foresee anybddy's correlative rights being impaired in the Trading Bay Field? MR. CASE: No, I don't. Bob,' is there any way that we might infringe on..... HR. ANDERSON: The Trading Bay -- the Trading Bay field is operated by Union for Union and Marathon. The other affected operators would be to the north. Texaco operating for Texaco and Superior on their lease. Their production is virtually non-existent, is my understanding. And, I would say they have been advised, as a matter of fact. Theycwere sent copies of our letter of request. We've had no contact from them; an objection or comment to our request. So, I cannot see that thE: correlative rights of any other operation would be affected at all. MR. KUGLER: To the best of your knowledge, do they have D, E and Hemlock production there? MR. ANDERSON: Let me turn to Bob Wartham, who ~s at the map. Bob, can you tell me what production Texaco and Superior would have? MR. WARTHAM: ~\Jell, they're producing from two different blocks here. They're producing from the Hemlock on the R & R COURT REPORTERS 810 N STREET, SUITE 101 277-0572 - 277-0573 509 W, 3RD AVENUE 274-9322 ANCHORAGE, ALASKA 99501 ( 1 2 3 4 5 6 7 8 9 10 11 12 ( 13 14 15 16 17 18 19 20 21 22 23 24 25 ~1 { I,{ -20- North Trading Bay Field, which is a separate closure out over here. And, they're also producing from a block over here that we call the sub-thrust block, which are equivalent (inaudible) production up here in those horizons in Hemlock. But, I believe those wells are shut in with the exception of perhaps one well. MR. ANDERSON: Do they actually tap any of our reservoirs? MR. WARTHAM: They do not have any production in the main Trading Bay Field area. MR. KUGLER: I've got production figures here for the month of November, 1979. In the Hemlock, they have a TS-7 redrill producing. In the D, they have the TS-2 ane TS-4. And, that's also producing from the Kenai E, TS-2 and TS-4, those two. So, they have ..... . MR. WARTHAM: Those are equivalent zones but they are underneath the Trading Bay fault in what we call a sub-thrust block, which are on a vertical depth, much deeper. MR. KUGLER: Are they -- this is a structure map on what horizon? MR. WARTHN1: This is a structure map on the top of the Hemlock, on the up thrown -- on the main Trading Bay Field block. The Hemlock in this sub-thrùst block is underneath this Trading Bay fault which ,..¡ould be much deeper. And, the TS;2 well is right here we said was D and E, I believe. TS-4 over here and TS-7 is up further to the north, which is a Hemlock R & R COURT REPORTERS 810 N STREET. SUITE 101 277-0572 - 277-0573 509 W. 3RD AVENUE 274-9322 ANCHORAGE. ALASKA 99501 I~. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 ~1 -21- producer. And, that, I believe is on the North Trading Bay Structure. MR. KUGLER: Is there anybody here from Texaco here in the audience? MR. SMITH: I might ask another question. This is Lonnie Smith. Are there any -- are there now gas caps associated with each of these three pools? MR. CASE: Only one, the E zone. Might refer to Figure I, I believe it is, and I'll show you the configuration that that's completed in. Figure I is the schematic of the last completion on TBS-A2. If you'll look on tbe left hand side, vile have the D zone between 5400 to 5785. E zone at 5820 to 6020, and the Hemlock at the bottom at 6110 to 6420. The E zone in this well is a gas cap. The -- to maybe make it more clear in your diagrams, there's some letters along the left hand side of the schematic casing. I, J, K, L, M and N. They represent the various nipples in the tubing string. And, N, is the bottom nipple on the short string. That N nipple has an x-end blank in it so that the E zone is blanked off in that well. I understand when they completed this well in 1977, they weren't sure of the E zone's performance -- excuse me; the D zone's performance. They had a back-up. If the D zone was uneconomic, they could close the sliding sleeves on it and remove the x-end blank nipple and produce gªs for fuel or whatnot from the E-zone. The D-zone has proved to be very economic, and they've never had to do that. But, that is R & R COURT REPORTERS 810 N STREET. SUITE 101 277-0572 - 277-0573 509 W. 3RD AVENUE 274-9322 ANCHORAGE. ALASKA 99501 ~ 1 2 3 4 5 6 7 8 9 10 11 12 ( 13 14 15 16 17 18 19 20 21 22 23 24 25 ~1 z { -22- one -- one place where there is gas. MR. KUGLER: well? MR. CASE: MR. KUGLER: MR. CASE: MR. KUGLER: blank in the end? MR. CASE: Okay, it's in this E zone in this Urn-hum (affirmative). And, it's not produced or it is? No, it is not produced. Not produced by virtue of having that That's correct. MR. KUGLER: In the -- about page four, the first page I think, you referred to conservation order 147 and the last line there about well A-2, there's disccusion about it currently producing 710 barrles of oil per day with 60% of the oil production from the D zone and 40% from the Hemlock. This is -- this is determined in this well because this was completely separated, is that true? MR. CASE: That's correct. MR. KUGLER: So, there's no allocation there. My question was how was this allocated, but T can see now from the physical set-up. But, you do have some wells that you allocate production in? They are commingled by special order? MR. CASE: I answered you wrong there. This is allocated. It's allocated by a prior performance before the hole in the tubing occurred. MR. KUGLER: It's then continuing production with I 1,1,1 . R & R COURT REPORTERS 810 N STREET, SUITE 101 277-0572 - 277-0573 509 W, 3RD AVENUE 274-9322 ANCHORAGE, ALASKA 99501 ~ { -23- « 1 the hole in the tubing? 2 MR. CASE: Correct. It's really a -- it is a 3 commingled -- it's the only one we have. It is commingled and it's 4 the D and Hemlock commingled by order 147. Now, this one isn't 5 operating as efficiently as it normally would. With the hole in 6 the tubing, your short string generally gets more efficient. 7 Your long string loses efficiency. If you just lose efficiency, 8 you can live with it. Generally, the sand swirls around and 9 eventually plugs your long string. To date, we're able to live 10 with A-2 without losing the Hemlock production. 11 MR. SMITH: Okay, conservation order 147 also 12 covered well A-32. Did you so complete it, or is it not producing ( 13 or what's the status of that? 14 MR. CASE: No, the Hemlock was uneconomic in 15 that well. Several things have been tried and it's been kind of 16 a problem well. It's currently making about eighty barrels a 17 day, but the Hemlock's been abandoned. 18 ~1R. SMITH: Okay, Mr. Case, as you propose this 19 new rule, it would affect how many wells currently -- immediately? 20 MR. CASE: Probably, we've got seven Hemlock 21 wells total. Would probably influence two on the short term and 22 maybe -- maybe three. We don't intend to do it to every well, 23 because we have the order. Only where we need to, but two wells 24 for sure and posssibly a third. 25 MR. SMITH: Are all of these wells that are R & R COURT REPORTERS 810 N STREET, SUITE 101 277-0572 - 277-0573 509 W. 3RD AVENUE 274-9322 ANCHORAGE, ALASKA 99501 ~1 ~ 1 2 3 4 5 6 7 8 9 10 11 12 ( 13 14 15 16 17 18 19 20 21 22 23 24 25 ~1 I~ -24- possibilities; would they -- are they now producing or are some of them shut in? MR. CASE: Well, PBS-A8 is shut in in the Hemlock. A-2, of course, is producing Hemlock. We wouldn't get in there until we had to. So, we could return -- and A-13; that's shut-in the Hemlock, also. So, there's two Hemlock productions that we could return to service if we had this commingling agreement. MR. SMITH: Wo~]d ¥our plan be to remove all the packers and tubing that are presently in the wells and rerun one string? MR. CASE: That's correct. That's correct. This does two things. This does two things; you can run production surveys to get a profile on where it's entering. You can also go in there ì.and reperforate the vlell, all up and down both completions if you find out from your surveys that you're losing productivity due to plugging or whatever problem it is. At our present completion, the short string, the D zone has some sub-pools; sands that can be perforated. We can' tgo intt>~hat· short string with a gun and expect to get it out of there, so we don't perfora~e that on théi.t ma.tter. MR. SMITH: So, this would allow opening up some perforations which, under ·the present scheme, you can open up? HR. CASE: That's correct. MR. SMITH: So~e additional net pay, possibly, in the pool? In the -- in the D..... R & R COURT REPORTERS 810 N STREET. SUITE 101 277-0572 - 277-0573 509 W. 3RD AVENUE 274-9322 ANCHORAGE. ALASKA 99501 i( 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 ~1 -25- MR. CASE: That's right. We could always do that right now by pulling it and running it back -- you know, perfor- ating it and running it back to dual, also. There's that alter- native. But, if some of these sands, particularly if they might be close enough to the water where you'd just as soon not -- if you've got fairly dry production (most of ours is wet), you'd just as soon not add water until farther down the line. We wouldn't want to perforate these sands at the time we pull it. We'd prefer to wait a year or two years and then run in through the tubing. That'd give us that flexibility by having a single completion. 't\Te'd perforate when you thought it was the right time. MR. SMITH: Well, do you estimate that any presently shut in or plugged and abandoned zones would ~be reopened, other than this extra preforation that you...... MR. CASE: By approval of our request? MR. SMITH: Yes, I mean, would that spur activity that would reactivate some previously shut-in or P & A zone in'! particular wells? MR. CASE: No, specifically, right now -~ back to A-13 and A-8, I keep throwing those back at you. Those -- those two, are idle and would work on those. We have work planned in, i, A-16, A-IO, but if we could re-drill those anè. make a single out of them, we would like to do that. We would prefer the singles and we'll stay that way every time we can. If we can redrill the~, if it's ecomonic we would probably make a single out of that in t~e R & R COURT REPORTERS 810 N STREET, SUITE 101 277-0572 - 277-0573 509 W, 3RD AVENUE 274-9322 ANCHORAGE, ALASKA 99501 t 1 2 3 4 5 6 7 8 9 10 11 12 ( 13 14 15 16 17 18 19 20 21 22 23 24 25 ~1 ( { -26- Hemlock. So, there's not a rash of activi ty tt,at would come out of this order, no. MR. SMITH: I think since we had defined separate pools, we would like to maintain our production records as accurate- ly as we can with referrence to the pools. If you could give us a specific example or a recommendation for how to handle how you would handle the allocation, I think we would like to have that as a matter of record. Could you elaborate on what you said a while ago or repeat it about the allocation or production from a commingled zone? MR. CASE: Sure. Initially, when we put it back on, we ·would have to go back several years just to get the relative performance of the Hemlock and the D and E zones. And, we would proportion that commingled production coming out on that basis. After that time, we would montior this through production surveys to get a profile of where the fluid entry is using the service companies that are here in Anchorage. MR. SNIITH: If you should indicate then -- from t~1.e profiles, you can indicate a percentage of fluid from..... MR. CASE: Of total fluids. MR. SMITH: ..... different zones. So, it would be sort of a weighted average based on previous production plus the fluid per day? MR. CASE: That's correct. They will change over the years. They won't continue that same performance. R Be R COURT REPORTERS 810 N STREET, SUITE 101 277-0572 - 277-0573 509 W, 3RD AVENUE 274-9322 ANCHORAGE, ALASKA 99501 It 1 2 3 4 5 6 7 8 9 10 11 12 ( 13 14 15 16 17 18 19 20 21 22 23 24 25 ~1 { -27- l MR. SMITH: How frequently do you think you would need to run a fluid entry profile to have an adequate handle on this allocation thing? MR. CASE: Oh, probably once a year. If the well changes characteristics; if something's going on down there, it should be run at that time, probably. You know, if there's any obvious change of total production; one of the zones has changed for whatever reason, plugging or sanding off, this is not going to eliminate totally all of our sand problems. There is -- D and E will continue to contribute a small amount of sand day in and day out. If the volumre is such, it should sweep it on out of the well bore. That's why we'd like to have the bottom production If we lose productivity in the Hemlock maybe due to some plugging, fines movement, the rate will fall down and the D ,and E; not all of the sands from the D and E will go out. It will go with the Hemlock, so as a result, you'll see the curve falloff saying something's going wrong down-hole. And, when somethings strange is indicated like this from production performance, then, you should get in there and run that survey. And, you'd find the sand fill at tt.e time and if you'd clean out the well and when it's back on, run another survey. MR. SMITH: You can run this survey through the tubing, correct? MR. CASE: Yes. MR. SMITH: Would it be any particular problem for R Be R COURT REPORTERS 610 N STREET, SUITE 101 277-0572 - 277-0573 509 W. 3RD AVENUE 274-9322 ANCHORAGE, ALASKA 99501 t 1 2 3 4 5 6 7 8 9 10 11 12 ( 13 14 15 16 17 18 19 20 21 22 23 24 25 ~1 t -28- you if we wrote the new rule to include the stipulation that the allocation would be based on past production history, plus an annual -- a minimum of annual performance or when..... MR. CASE: Or, as required by..... HR.-SMITH: Or ,as required by..... MR. CASE: ..... well performance. MR. SMITH ..... well performance variation. MR. CASE: Sure, it'd be good. MR. SMITH: I have nothing further. MR. HAMILTON: That's all the questions we have and we appreciate your testimony. MR. ANDERSON: Thank you, Mr. Hamilton. Early in Mr. Case's testimony, he requested that the figures one through eight and the exhibit A be included in as part of the record. MR. HAMILTON: Yes, they will be made part of the record. MR. ANDERSON: Fine, thank you very much. MR. HAMILTON: At this time, is there anyone else who would like to present testimony? Is there anyone else that would like to make an oral statement. Well, if there's no one that has anymore testimony or oral statements, we'll close the hearing at this time. (OFF THE RECORD) END OF PROCEEDINGS * * * * * R & R COURT REPORTERS 810 N STREET, SUITE 101 277-0572 - 277-0573 509 W, 3RD AVENUE 274-9322 ANCHORAGE, ALASKA 99501 'Ii ( " ~1 1 C E R T I F I CAT E ------- 2 UNITED STATES OF N~ERICA) ) ss. STATE OF ALASKA ) 3 4 I, Angelo A. Allen, Notary Public, in and for the State 5 of Alaska, residing at Anchorage, Alaska, and Electronic reporte~ 6 for R & R Court Reporters, do hereby certify: 7 That the annexed and foregoing public hearing was 8 9 held before me on the 25th day of January, 1980, beginning at the hour of 10:00, at the Municipality of Anchorage Assembly 10 Room, 3500 Tudor Road, Anchorage, Alaska. 11 That this hearing, as heretofore annexed, is a true 12 and correct transcription of the testimony contained herein, 13 taken by me electronically and thereafter transcribed by me: 14 That the hearing has been retained by me for the purpose 15 of filing with the Alaska Oil and Gas Conservation Commission, 16 Anchorage, Alaska, as requirE:d by law. 17 I am not a relative or employee or attorney or counsel 18 of any of the parties, nor am I financially interested in this 19 action. 20 IN WITNESS WHEREOF, I have hereunto set my hand arid: 21 ~ffix my seal this 1st day of February, 1980. 22 23 ~~~r~a ~ 24 25 My Commission expires: 8/12/81 R & R COURT REPORTERS 810 N STREET. SUITE 101 277-0572 - 277-0573 509 W. 3RD AVENUE 274-9322 ANCHORAGE. ALASKA 99501 fj <. '7 II '" P- z--f Mo~~d 1-<. $:/ 'au k r /;J T-4#é7<1~ Put""- 1- - II VI €>. I g' Po -~ - . I~PJ 17 Ilk/If? . /9 !Ùu~Z-1 V'-{ Ie 0 ZuA:t~_ _CZI ~o_t.'i :a-- 0"-- ûJj ~1J'V)ð+ov¡ð! l h e /~~r.42/!þtm·-b!V) :fl~oJ~~ 1lt¿~. p ~. ¡; . I . '1 ;c!:hHi;J) P Õ-I,. - --J,,,~ 1_}4 I 'I _.s. c ¡ _f't .¡ j} fJ1)/e,J.!,"" -c £'fj 1'ø<æY'~ P?r<1n'" l~· (p P(f'O. . Për 1/ PÕIV P(f'" f(f I~ Ùn ~ ·1:..(' 1-1 tt£ ~I {,. . I, 111 e "., jllAq. . q .. il\AP~~ ¡LVI e.j,... . . JIJM3 Iff , .11'(I.e- /1 1M e~ Ie:> /¡y¡e vi lIMo /Z- It l4e J~ .. .." ""'_"'C'___',"'''''>'·'_ro. ___'.,».~__, Co"~e'~.,t;~Þ 1 ('.AI! ~~~{i . ).?W$)~ Á~~(k{-¡J?-1-~/ f1dOJ ~, ~ ,9 13- -io to I w~ 1, 1tte12.,______ ....._-~/~---_/_._/--. 'S: ~. i k,)"% P h-/ul~. 74- J£~ í._(ffJIU~/~ _~"~W)I~/~ ~1--('~/- _f/ Pwt l~_K.. w "~.1-,.#,~-;(212Q:k.: "--.'.-......,_._,.....,-'."'~,.,.., Jrtp~ e ¡r I/o I (' ,;~ 1·~· , ¡().«-t ->~ fA.. ~J ·1.' .. ~L~::/~/c 4-\' / -.() <rt ~ - tJ.1Y¡ J ~IJ! I ~/_~-_/ _ Ny- K?/-:F ~t·l!¥--~i& Z~foO ~ í ..?~~(J{:J PeG 2cf ~- Itv) e 3 IÍ j/1 P - #z.... ì TßS (ìAI1' t ~ 1 Pß.5_ 'f~1~ ,__ _-__ ..._, r._ ,-....,_. #3 (' obert T. Anderson st!ic'! la.,C: 1.'3:ïa;:::; ( ( ,i ~ tNHUC', $¡,J ,]i'i<J' (;,a~s.. U;;'li,$Ii("r¡:: ..lfe~tern Hegion ¡¡' Union Oil Company o'~' ..:Iifornia P_O. Box 6247. Anchorage. Alaska 99502 Telephone: (907) 276-7600 Telex: 90-25188 to' ' ~,1 r f11) t1~7.~ srr t~ d ~j fA ~~.:j) t.l LJ . January 11) 1980 Alaska Oil and Gas Conservation Commission 3001 Porcupine Drive Anchorage) Alaska 99504 Attention: Hr. Hoyle H. Hamilton T~\DING BAY FIELD State of Alaska Application [or Hodification of Field Rule 3)~ Conservation Order 115, Dated August 15) 1972 Gentlemen: Union Oil Company of California) on behalf of itself as Operator) and Narathon Oil Company) hereby requests Rule 3.' Commingling) of Conservation Order No. 115, dated August 15, 1972, be deleted and 'the following modified Rule 3. Comminglin& be substituted therefore: "Com.rningling in the borehole of production from the Trading Bay Hiddle Kenai "D" and "E" Oil Pools \.;rith the HeI:Ùock Oil Pool is allO':.¡ecl. Allocation of produc t ion bet\-;reen the "D", tiE" and Hemlock Oil Pools shall be reported monthly on Form 10-405. The Monopod is in tIle late stages of its producing life. Approximately 83% of the recoverable reserves have been produced. All available slots on the platform have been drilled) therefore it is imperative that every \.¡ellbore be used to its ma:x:imum potential. Increased \Vater production has resulted in increased sand production and additional errosion resulting in holes in the long string of many dual completions~ It has become economically infeasible to pull the~e well{S just to repair tubing leaks. This will cause w~lls to be shut-in or one zone in a dual completion to be eliminated. This will result in the loss of production and ultimately in the loss of reserves. · I , ' Alaska Oil and Gas Conservation Commission - 2 - January 11, 1980 {" The Hiddle Kenai Oil Pools, D and E and Hemlock zones account for approx- imately 63% of the ultimate recoverable reserves from the Honopod Platform. These three zones have produced 33 mm bbls. or 61% of the cumulative production from the platform. The D and E Pool are defined within the Lower Tyonek Formation of the Middle Kenai Group whereas the Hemlock Pool lies within the Lower Kenai Group Hemlock Formation. Strata within these formations are generally lenticular and often discontinuous. The Tyonek Formation is typically composed of well indurated to semi-unconsol- idated, fine to very coarse grained, clean quartzose to clayey, poorly sorted sandstone and conglomerate interbedded \vith siltstone, silty mudstone, bentonite, and coal. The Hemlock Formation is a clayey to sandy, pebble to boulder conglomerate, interbedded with pebbly sandstone, minor siltstone and occasional coal. , , ( D Zone oil is 27.60 API gravity with a bubble point of 2502 psig and a solution GOR of 476 scf/bbl. E Zone oil is 29.8° API gravity 'tvith a bubble point of 2706 psig. Hemlock oil is 31.1° API gravity with a bubble point of 1622 psig and a solution GOR of 249 scf/bbl. The D zone is currently under pressure maintenance ,.¡hile the E and Hemlock zortes are not. Based on material balance work, there is an active water 'influx in the Hemlock 'vhich has succeeded in maintaining reservoir pressure. Current reservoir pressure in the D zone is approximately 2560 psig \vhile the reservoir pressure in the Heslock is approximately 2100 psig. E zone pressures cannot be deterôined since all E zone wells are commingled with the D zone. A copy of this application is being sent concurrently to Texaco, Inc. the only other affected operator. Your favorable consideration of this application is requested. Very truly yours) ~~at~7'" Robert T. Anderson cc: Harathon Oil Company Texaco, Inc. Superior 'Oil Company ( (' ENGINEERING TESTIMONY TO SUPPORT THE APPLICATION FOR MODIFICATION OF FIELD RULE 3 MIDDLE KENAI OIL POOLS TRADING BAY FIELD CONSERVATION FILE NUMBER 115 ( PRESENTED BY: C.H. CASE, DISTRICT ENGINEER UNION OIL COMPANY OF CALIFORNIA AT A PUBLIC HEARING, JANUARY 25, 1980 IN ANCHORAGE, ALASKA { '( ENGINEERING TESTIMONY ( This engineering testimony will support the request for permission to allow commingling of production from the Trading Bay Middle Kenai "0" and "E" Oil Pools with the Hemlock Oil Pool in the Trading Bay Field. It has been the practice to complete wells producing from the 0, E, and Hemlock as dual producers with the 0 and E produced from the short string and the Hemlock produced from the long string. To date, three wells, TBS A-2, TBS A-8, and TBS A-13, have been completed in this manner. (See Figures I through III) All three wells have experienced tubing leaks. Well TBS A-2 experienced a leak shortly after being recompleted in March 1977 and was granted an exception through conservation order #147 to commingle o and Hemlock production. Cumulative recovery from the 0 zone since the exception was granted is 625,000 barrels of oil with cumulative recovery from the Hemlock of 389,060 barrels. This additional oil production from the Hemlock was made possible through Conservation Order #147. The well is currently producing 710 barrels of oil per day with 60% of the oil production from the 0 zone and 40% 'from the Hemlock. Well TBS A-8 was recompleted in December 1975. It developed a tubing leak in August 1978. The well continued to produce until May 1979 at which time the Hemlock sanded out and would not produce. (' Well TBS A-13 was recompleted with new tubing in May 1977. By August of 1978 the well had developed a tubing leak. Production from the Hemlock declined from 580 BOPO to 23 BOPO in two months. Production from the short string (D & E zones) increased from 441 BPO to 519 BPO during that time primarily due to increased gas lift efficiency. (See attached production curves, Figures IV and V) This situation continued until ( June of 1979 at which time the long string stopped produci,ng. The well ( was worked over in November 1979. Multiple tubing leaks were found. Mechanically (by cement squeeze, isolation packers, etc.) it was decided that the sand entry could not be eliminated so the well was completed as a single D & E zone producer with the Hemlock isolated by a packer. (See Fig. VI) Commingling the Hemlock with the D and E zones at the A-13 location could result in the recovery of 500,000 barrels of oil which would otherwise be lost. The cause of the tubing leaks is sand production resulting from increased water production. The fine material in the formation is water wet and when the water saturation increases sufficiently to cause the water to move, the fines move with it. This production of sand and water results in the errosion of tubing until a hole develops. Once the holes develop, productivity from the long string (Hemlock zone) usually declines due to reduced gas lift ( efficiency. Eventually production from the· long string declines to zero as the flow rate becomes insufficient to remove the fines and sand. This material forms a bridge which plugs the long tubing string resulting in a total loss of production from the Hemlock. D zone oil is 27.60 API gravity with a bubble point of 2502 psig. The D zone is currently being waterflooded to maintain reservoir pressure. Current reservoir pressure in the D zone is 2560 psig. (see Fig VII.) E zone oil is 29.80 API with a bubble point of 2706 psig. The E zone is not currently being waterflooded and it is impossible to measure the E zone reservior pressure since all E zone wells are commingled with the D zone. Hemlock oil is 31.10 API gravity with a bubble point of 1622 psig. Material balance work has shown the Hemlock to be ( supported by an active aquifer influx. Current reservoir pressure in the Hemlock is 2100 psig. (see Fig VIII) ( ( The Trading Bay Field is in the late stages of its productive life. All available slots on the platform have been drilled. Cumulative recovery from the Trading Bay Field is approximately 54 million barrels of oil. This is 84% of the expected 65 million barrels ultimately recoverable. Of this 65 million barrels of oil, the 0, E, and Hemlock should account for 41 mmbbls or 63% of the ultimate recovery. Of the 11 million barrels remaining to be recovered, approximately 4.3 million barrels are to be recovered from the 0 & E zone and 3.6 million barrels from the Hemlock. Currently there are 6 wells producing from the 0 & E zones. Wells TBS A-2, TBS A-6 and TBS A-15 are the only wells presently producing from the Hemlock. The remaining four Hemlock wells are presently shut-in primarily due to tubing leaks. (Well A-2 is producing at a reduced rate due to tubing leaks.) ( In order to recover the remaining reserves it will be necessary to workover and recomplete several 0, E, and Hemlock producers. The ability to commingle the 0, E, and Hemlock will eliminate the need to prematurely abandon wells and will provide an option during future recompletions and workovers which will help Union Oil Co~pany of California, operator of the Trading Bay Field, to maximize ultimate recovery. . ( ~ , FIGURE I KB to tbg. hgl-. 36.40 ~ NOTE: See 55 Tbg. Det2.il £01- letteys & the LS Tbg. Detail for numbers. A~ ~ 1 :Q.Q 2 mL 3 B :œ: 4 D _ 13 3/8" Csg. set @ 1023' - ,00 5 E "I'" D Zone 5400 - 5785 ~b] ;006 .H 0 k-" 7 ~ *~ ~ 8 K [J 9 ' :..: ..::: ; L [J Top of dual "A5 II Baker pkr. @ 5222.121 W / LHS conn. -40,000# . shear release. (' - -= 1 (t:; ~/1 :rc - N :a: p:a: 11 X ? Z 12 Top of dual Baker pkr. @ 5796.44'. B tm. of S S @ 5795. 88 I . ..Q 13 - - E Zone 5820 - 6020 :x: --14 ~~ 15 - ~w ~ Z 16 Top of single Baker pkr. @ 6058.53' Hemlock 6110 - 6420 ]L 17 18 9 5/8" Csg. set @ 6546'. Btm. of LS @ 6092.18'. - '" WELL SCHE~\'lATIC TBS A-2 TRADING BAY FIELD Started 2/25/77 Completed 4/1/77 o u W1'4 _~ Cl:). A"·O. _- ¡ ~CAJ...F. --- -- -- DAn: ' - _~__ ..._"'.... ,~_ "r_ H'y'. I D~r~ -UNION OIL COMi'ANY OF CALlFOR~~IA SHr::H i 'r~¿E'T FO·R,.... .;;;~ 7 IN£:'" ~'O~ (' ( ( '" ~ ~ } ::"O:"G ST~I~\:G : . . ') 1:'2" Otis :; 3.fet~i v?lve I r:: 2. -:: :: :- ~ 1 ~:'~:)l~ 4.25 OD, \ zl 2.76:) ID ~ 323.60' ~, - 2. 3 1/2" 31.1tt. to 2 7/8" Butt. 1 ~ A x-o","··~r @ 815.97' i 2 ') 3. 2 7/S': Cameo ':K3:\!GtI gas lift k] rr.an¿rel t;l 2273. ?St . ~ 3 ;¿; 4. 2 7/8'; Ca:-;1::o nKB~,rG" gas Hft B I:1anÒ'eì @ 333~.351. 5. 2 7/8:: Cameo nK3).:G:r gas lift 4 -.~ -,~' C ·ma.:1.d~·cl @ 4196.871. 6. 2 7/811 C2.',1 eo "KB~1Gn gas lift D rnanål"el @ 4951.56'. '): Î. 2 7/8'1 Ca!11eo II KBiv[G II gas IHt 5 .:>::. ::1:::' E mand:=-el @ 5453.43' . 8. 2 7/811 Otis ::XAII sleeve 3.875 OD, F 2.313 ID @ 5524.851. - 9. Bake::- ì,,!o¿el }\-5-9 5/81: X 3 1/2" X :E6 G 2 7/8:1 Hyd. pkr. @ 5565.14' . - 10. 2 7/811 IIXAn sleeve @ 5603.381. 11. 2 7/8" Otis'IIXAtI sleeve @ 6568.981. ~ H 12. Bakel" seal assy. 3.25 OD, 2.5 ID @ 6605.48'. 13. Baker penn. Model "D" pkr. 9 5/8" E,7 ':Z- X 3.25 @ 6605.48' . 14. 2 7/8': Otis "N'l nipple 3 1/16" OD, 28 2 J 2.225 ID @ 6631.30' . 15. 2 7/61: mule rhoe 3 1/16 OD, 2: 44 I~ -;X }~ @ 6632'. 9 I !< 10 'J 3J L Remarks: - - I ~ A. \ B. C. Tbg. PU -,'It. 95,000# Tbg. slack-off 65,000# Baker 9 5/8n X 3 1/211 X 2 7/811 = Model A-5. 1.5 released by puUing- ~ 11 40,000 í! over tbg. wt.. 55 HE rotation !:'clcase. - - 12 --'C><' '.' 13 ·~';--"';I . . " :;-:.;1 . -~ ~ - 14_:"- ~ == 15== 1) ~ - ,. 1 1- Ùv. I C'.'i~ - ~ · - 'F- ~ ,-' ~ : ~ --I I: ". - . ,---- __ ,... . J'-'¡'A i: ! t.;~.¡.o~~ C;L CC~o'\i-''''''-;'d c- ,-"Lrvõ," I l=-·--==~-----.·_- . ,.OHM ';"4' t..4...~.... '\ ...... WET.....L SCIIEMATIC ( FIGURE II .t'.. . SHORT STR[~G: A. 3 1/2'1 Otis s<1fdy ':ah-~ man<.h-el @ 3-2:>.64'. B. 3 1/2" Camco "KBUG" gas lift T:1anch"cl @ 2250. óO' . C. 3 1/2" Cameo I!KBUG:' gas lift r.:landrel @ 3172.31'. D. 3 1/2" Cameo "KBUG': gas lift f:lan¿rcl @ 3881.00'. E. 3 1/211 Cal":1co "KBUG" ga::> lift mandrel @ 4473.82'. F. 3 1/2" Cameo II l\.BUG'! ga::> lift mandrel @ 4915.44' G. 3 1/2" Cameo "KBUG:' g~s lift mandrel @ 5261.391. H. 3 1/2" Cameo "KBUG" gas lift mandrel @ 5422.94'. I. 3 1/211 Cameo "KBUGI1 gas lift mandl-el @ 5491.99'. J.. 3 1/2" Otis "XA II sleeve - OD 4.250, ID 2.75 @ 5528.71'. K. Bak~r 1\10dcl A-5, 9 5/811 X t 3 1/2" X 2 7/8" h:y.d _ pkr. @ 5565.14'. L. 3 112" Otis "Q" nipple. ~ . 3.875 OD. 2.75 ID @ 5580.'±9'J D Zone 5685 6245 E Zone 6270 - 6535 '. HEMLOCK 6610 - 6980 ; ~ ¡ Clt-...'w;-'¡ _ C\:>. --1 """0. . i SCALE _ ~ '...£.~..,---=.- --"-"--~i: ! : TRADI:'JG Br\Y UNIT ST!-"TE A.-8 Ci,'!O) Start D:,¡,tc 12/11/75 Co:~:pL;tio!1 D2te l2/25/ì5. --- $-..,-:! I \.. " - ,....- -., - '~, FIGURE III ,,' { RT to tbg. hgr. 37.001 See Long St:!:ing & Short String 1 ~ .:xx;. Tog. Details epgs. 10.11. & 12) 00 ooB for detail. 2 ---=....,. 001--' -----....¡ 3 00 -- OC"b 4 00, - 13 3/811 61# J-55 ~© 1093' -" OO',E ~ 5 CXJ oaF Qoq 6 00 <DO H 7' SL 0 I OZone 5905 - 6496 8X Z Z J Top 2 7/8" Mod. A-5 Baker Pkr. , '" © 57 03 r . 9 5/8" X 3 1/ 2 " - 3 . 00 ID _ _ ""-X 8.5"OD. ' 9 X Z,' 'X K\' Top 2 7/8" Mod. A-5 Baker Pkr., 2USLL © 5873'. 9 5/8" X 2 7/8" 3.00 ID ~ "X 8.5 OD. ' =~ ~Btm. of S5 © 5898'. " --- :::: II -..- I ~ , , ~¡-l~ \ - ( E Zone 6540 - 6770, Bt~. of LS (ð AS??' 12 ':r¿ 13 ~- 14'><~'><: < 15 &r - 16'" - ') )ToP ~f Bake14 9 5/8" X 2 ~1/8" Butt. Pkr. @ 68181. Mod. D Pern Pkr. 4. 750 ID X 8. 12 5 0 D - 3 . 00 ill w/ seals. \.' Hemlock 6932 - 7152 , ¿ t. ... t",,:¡ , j I 9 5/8 I' 40. 43.5#J-55 & N-80 © 7276'. :::: 1.A "'o.¡ \VELL 5CHE~vfA1IC TB5 A-13 \VO ^,,·o. TRADING BAY FIELD SCALf ~A, Të S ta 1- ting Date - 4/24/77 Camp letion Date - 5/20/77 C J. :L ( !- , . UNi\J;~ C:i.. CG:-.1.JANT C;' CALjrv~NI^ <:n;i:H ¡ :...:tT JCO~'" ~6~ "...L.:'" ~ ..~. 100 I ~ :J I (,) I ~ I z LLI 50 I (,) 1 0:: I LLI I ~ o I 20,000 -- TRADING BAY FIELD ZONE D a E WELL N~ A-13 s I I I I I I : I , I I~~;i f I ¡ I I I I I I I I I I I I I i I I I I u; I I I I' ~I I I ~ I I I '\1- I I I I I I I I I I I I I· I 1\V ~ I i i I I ¡V~ I : I I I' I I I " I· I I I I I I I I I I I I I I rf I I I I i.A I I I\.!A I I tt^{, _ ! ~ I ;, _ I '\f\ - I V ì I I I I I I I I I I I 1- I I I I I I I I I I I I I I ¡ I 73 74 75 76 77 78 79 80 -- I I I 72 ~~.'-. I 1--- I I I I I I 81 I I , I I I I I I I I I I I I I I I I I I 82 1--1 <: I I I I I I I I ¡ ¡ i CUT I 0 1 r ~ I 10,000- -+ 1 ~ I I I I I I;: I I I 5000 I I' ~ I I. I 4000-1- I - ~ I M I =0 3000 ii_ ,~I I a 2000 tM0 n : ¡ ;;; 1000 I ¡ ': ~ I II ~/[' I I I I I ~:: r : Iii I z 300- I I I I I : 02001 I iii I I I t; : I I I ::J 100 I I g I GOR I I -I g: 50 : uj I I I 40 I '" r I I 30 - I I I 1- 20 I I I I I I I I 10 I I I I 1967 68 69 70 ï1 1--1 GJ C ;0 rrl ..,., 1--1 ø c ;0 £ï1 <: r I I I I I I I I I I I I I I I I I I I - I I I I I I I . I I I , 82 ,-~-, I I . I I I I I I I 81 80 ,r I I \1 I I I ~ I I I I I I I I I I I ~~~~ Iz ;:) 1-- :J: ;:) ~ IVV "' I I i'í I ~ I I I I"' I I 1 I V\ i I 1\ I I I I ¡ I I I I ¡ A I I I ¡ JlI : ~I I W I ~ I I [ 'I I æ i I II I 1 1:1\ I i I I ~ '-" ^ I I I I '~'.j': I ;1 I" I 1 I I I lY1 I I I I I I I I I I' I I I I I I I 70 ~ I I I 77 78 I 79 I I I 74 73 100 I I I I .... I I I B I I I I .... I I : I z I I I, ~ 50 I "I I ¡ I I I I I I I I o I ICUT J h 2000 I I ¡ I ~ u. I I : I I~~ I 1000- I I I I ~ ~ I I I I~' I IBID ~I I~ ~I 500 I I I .j I 400 I I I 300 I I I I I I I I I 200 I I I I I I I I I I ' I I I I I I I c 100 I I I I I I ~ I I I I I I 50 I I I I I I 1&.1 40 I I I I I ~ 30 I I I I I a::: I I I I I I z 20 I I I I , I Q I I : I I I t; 10 I ~I "I' I :::) I I I I I C I I I ~ 5 IGOR I I ¡A J n. 4 I I I I I rv- 3 I I I I \, I I 2 I I I I I I I I I I t I I I I I I I I I I I , I I 1967 68 69 10 71 72 I ~ I I I I a::: 1&.1 n. TRADING ZONE HEMLOCK I I I I I I \ I I BAY FIELD WELL N£ A-13 L I I .," TUBING DETAIL ( .- 1 . , 2. 3. f 4. ¡ 5. ~ 6. : 7. J r 8. ¡ 9. 10. 11 . 12. 13. 14. 15. 16. 17 . .-( ( Camco Safety Valve - Macco GLM - 2143' Macco GLM - 32691 Macco GLM - 4137' Macco GLM - 4840' Macco GLM - 53391 Macco GLM - 5616' 255' 3 1 II ~ 3 ~II 3 ~II 3 1 II ~ 3 ~II 3 1 II ~ 3 1 II ~ 3 ~II Otis IIXAII Sleeve - 56841 Baker ~1odel 11011 Pkr - 57201 Baker Model 110" Pkr - 58621 3 ~II Otis IIX" Nipple - 58871 3 ~II Mule Shoe - 5899' Baker Model "011 Pkr - 68131 7" Mill-Out'Extension - 68171 3 ~II Otis IIXII Nipple w/llXXII Plug - 68361 3 ~II Butt Tbg Pup - 68371 3 ~" Mule Shoe - 68481 REV. DAn: l---:- 2 - · . 3 - · . 4 · . - 5 · . - 6 - · . 7 .. 8 :x8: 9:8: Z 10:8: Z 11 :x: 12 / - - .13~ 14 :: 1 5 "':x: ~16 =17, ",..". ~ FIGURE VI _ 1'1!. , - 10931 - 13 3/8" 61# J~55 Csg. "0" Zone 5905.1 6496' (at intervals) "[" Zone 6540' - 6770' (at intervals) i " R ¡ ~.. t "Hemlock" 6932' - 71521 (at intervals) TRADING BAY STATE WELL A-13 W.O. WELL SCHE~1ATIC ~ 72761 - 9 5/8" 40, 43.5# J-55 and N-80 Csg. FOR.....2..J (-":£W:!,..{£.6J UNION Ofl COMPANY OF CALIFORNIA 1/80 DU-WN APP'o. SCALE DAre CKO. SHEElS I ~H(ET -....... '":I, - "_M'" _. .-.'~ 1;;--"1/'1"1 TRAD I NG BAY FIELD z D ZONE 2A FAU L T BLOCK 0 PRESSURE AT DATUM ,-5628 5.5. ~ z u 0 ::::> c ~ 0 U 0:: 1LI Q.. "? Z ..J <X: ~ I- 0:: <X: Z ~ U) 2800 I I ) 0 I ~.~..l 6 0 2600- 0 010 0 0 ~ 2400 I 0 - 8 o I en I a.: 2200 I I 0 ~ 2000 0 0 0 0 I 0 Q¡ n 0 => I en 1800 I 0 I 0 0 ...- en i LLI I 8 0 I 0 a:: r600 0 0 I 1\ a.. I 0 ~ 1400 I I 0 I 0 I :::L 1200 I I :E I , I ~ 1000 ~ I I I - o 800 , I I m u 600 I I I ï1 I--f ~ I I GJ I c:: I ;;0 ~ 400 I rrT en I I I I < I--f 200 I I--f 1967 68 69 70 71 72 73 74 75 76 77 78 79 80 -~ --- r TRADING BAY FIELD RESERVOIR PRES SURE HEMLOCK DATUM @-6100s.s. 2A FAULT BLOCK 3000 I 2800 0 0 0 I 0 I 2600 10 0 <.!) 0 -: 2400 0 °0 0 I CJ) 0 0 ~ ;, ! 2200 0 0 0 0 0 2000 0 0 LLI 0 0:: ::> 1800 CJ) CJ) LLI 1600 0:: Q. 1400 LLI -.J 0 1200, :I: :E 1000 0 ¡...., .... 800 0 aJ 600 U - .... ï1 <t 400 I--f ø .... c (f) ;0 200 m <:: I--f 0 I--f 1967 68 69 70 71 72 73 74 75 76 77 78 79 80 I--f #2 \,~.." '-'" NOTICE OF PUBLIC HEARING STATE OF ALASKA DEPARTMENT OF NATURAL RESOURCES DIVISION OF OIL AND GAS Alaska Oi I and Gas Conservation Committee Conservation Fi Ie No. 115 Re: The application of the Union Oi I Company of California for an amendment to Rule 3, Conservation Order No. 93, to eliminate the requirement that each well be equipped to permit separate testing of the Trading Bay Middle Kenai "0" and "E" Oi I Pools for al location of production in the Trading Bay Field. Notice is hereby given that Union Oil Company of California has applied for an order to exempt each well from the requirement to be equipped to permit separate production testing of the HDiI and liE" Pools, as required in Rule 3, Conservation Order No. 93. The operator states in his application that the requirement for separate production testing for each of the commingled pools wi II dictate premature abandonment of the "E" Pool. Parties who may be aggrieved if the requested order is issued are al lowed 10 days from the date of this publication in which to fi Ie a protest and request for hearing. The place of fi ling is 3001 Porcupine Drive, Anchorage, Alaska. If such a protest is timely filed, a hearing on the matter wi II be held at the above address at 9:30 A.M., July 26, 1972, at which time protestants and others may be heard. If no such protest is timely fi led, the Committee wi I I consider the issuance of an order withour a hearing. elL It )tv JJj Thomas R. Marshall, Jr. Executive Secretary Alaska Oil and Gas Conservation Committee Publish July 15, 1972 \ J' AFFIDAVIT OF PU BLIt;ÀTION STATE OF ALASKA, ) THIRD JUDICIAL DISTRICT, ) ss. . ...~~.~:r. ._~...~~~.~....... ..m_..___.._ being first duly sworn on oath she deposes and says that._........__.__. Legal Clerk h is the___...m.............__......... of t e Anchorage News, a daily news- paper. That said newspaper has been approved as a leg'al 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 Legal Notice 4095 copy of a .....__............__...._......... as it was published in regular issues (and not in supplemental form) of said newspaper for. 8 '. ·..·..·."!::'~~,~~i¡ø.,:::PU:,t..~:,..~IM.:rf·'····, : .... . ..·):";"·ifri~iî:'/:!ôi~;;·(W_·;':··< . ..... ',,', ...... "'AJl'fME.N1;.·Ø,f:·f~~_ ':a~IOUiCI'/ : . .·,··D"'~SI(!N·-~Of:;.el'·::ANO.'·tAI:···· ".,'" :~It.r.I"..:.~~..~·.ç~~~..,C~, ".:..:....:.:,!.'/.'.",:.':.">.';I<,\............:. .......'.' -,';.' ....'..... ..... ',..""'''. :?: .>,.-,:';I·:'icr.JtI#,~f__",:.II,.,~:_~I·lt',l!l¡;--~· ' '~:;,14"~~~$~,~....;~i.oal ....... '~'~:. t, .~~., ~",;orl8 ..,.... . " I.:~~ftt ·.·.·:'.~;'",,;.'~i~CNlrvat~OIt'O'_1 " '.:::_~~~'~:,!~: :·"rm~I'j."t"::·f:"tf¡r.,., ':.'.'::.;:,~~,.taç&~: ,~:'J:i'l·~:~e~.r;o.: .~~.i11 :.'::'~o:~·e···,:tp~tJ"g:··ttt,·,~e, ~~8dht'· ',"I , . " ~~t f[e~~I'~/,""",1ftc '·~·~qil,:'(W'Ics' , ' h, ."C!t~.~M' t;~'\ @fO__ .. .. .:,' 1r~d'''" ley f_~ ,';1,. ::/:,,"" .", .. t40f¡~I~:·,:'\.,:,t~~~~'.·:I.=J:i:':\j~t'::;,·......· .01' .~ (.c,....,.,i.!...~ ,.~j..~r'~"::t~,:::f,!JI'ht"·.,_... :,f)~oer::,.~','::.IJr~~J)~-'~~·">:'rr:U:>·lroø, .....: ,... . ..' .,....~m.~t:IO.. ·bc·.r":~:·:~:':I;~'C rtlffftlt,.... é.t~.'tI~)Úc;r,;.'·,..tnt:':.;;<.>/,_,::·1»~~. . aftCi' ).~~.~: .~., P~ì·$,." .'kJU'·~t)d'::I~:'..i...' ¡~,,'.~ ::,~.,p."at,i~' .,~ic."'~~'·'--":'."'t(Ì~.to,:.ìt... fr..;~~;~r~~':-~i~'~=:;': 'Ct!~"rI~~~:I~~):pøol' ...·tN'.,·:.~,;:~ .ba,.dn"~r.~..tt'O{·..·....the "."-;"'I::"·';':'f(O~~'~'·:,f.t1'i.· '!í1~'IÎ¡;~ tÍflte'v J~:t~i"f:b"'" 1fI·':.~e'~:'~tt. .. "te' :~~~~~ii.;~0t~;~~¡;=.~ ¡tlSt~#'fS····'."'·"'{~'.:.,..y..,h;t~::1..:;',I. .... ..,. '1Ddt··· r,'~~ ". 1·...I!~·t~"".~·,:.'tftI.:! ....~ m,"~ .,,~¡a~~~'~~;:"·'~/';"~~¡i:j~;(~t·... 01'_ ..,m-out '.......' I ';." ,oj ,,', r ", ' , ";.': '.. '" '.': '.'11' '.' :',:¡,,:i,:i; , . ,dTftGmal .. . ....,.. ·:Ït.:::; . . -.,.,.. ~.,,::..,..( 'Atåslt.·~I·"" ..CIi..... Comwt'" .., '. - '. " '.. . '''tilth '''''' '1:;:1911 l.tIa.t1oti~ No. «19.' '.1 period of __.9n.e.____..... insertions, 15 commencing on the -..........-day of ----~~~!..___._..._.,.., 1'lf______ , and ending on the_..___~~_......., day of July 72 of .. ... . . . --. __ __.... __. ,. ... __. ., 19 __..... ., 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 the sum of $ 11.25 which amount has been paid in full at the rate of 25¢ per line; Mini- mu~ c~rge S7.S0A ;;. / sUb~âZ~~;;-~~ me this J:.5..___ day of.~:t:lJ.Y....__....., 72 19. n._'. .,~:....,- u~~. Notary Public in and for the State of Alaska, Third Division, An<:horllge, Alaska _..-il::~_:1_:~~"'·::7S- llgal-, "'<I t......... _, ,.., .,__." ... .. ..ItIJ...... ....a_~} .... 0ffIct ""'CI_---... '.....I fer -IIIII~ M;I,..,..el.'f ... .UIt. 1ft" ~u _.,II.t.. "I. '. _, iI,'. :.... .." ," ,',,', ""', If ·7'" .., ........ .......t fIIlIIIlII. Cllntl", ..,....".,~ ,"~:I' "'tt'" o:...ør· ..ltlll. T~ __.. b. t·..... lilt. ,Ie"", ...~ lie.... ...... ,....11; ,..... .r ...' ...... : .... .r:,: I." ""'1111, '0'11" '~ë,U"". lie tcmll,.,·..., ............ ~ It'r IboVf ctt:", , _, .rlt!...,.... tat.'. IF '~.t··:·' ,fOft.," Ai.....1fItat ".-2(, f (: _ ·.,¡n t~ ,.~."~,, ·,teilr:l .',- ........., No ~.:.~ . ,". :''*I:.!I, JIlt". ~t '.1'- 1S,1" .It"" t.~1 \'4ofln *, '.. ' ',i, fIOftti; C'f·fUkKIIIM. ,\ , ,lrATlO' ~IU, ,',;"" ' "'~'Mt!t(r Of, ~":UlALPlI;"ê.l; " ØìV!IICt.i, Of ,II~ MI, "tAl", ","," AInb on_lit Coi_iMIIt. c~ c..II".nl. , ...... . .,. I ... ... .......... ....,'. .~ ,W,W:.......'..,.·.... tNIt '0' Ivlt ;. ~.."on ~ ' No. t~. '0 thmllllt. ... .,1'..... . tIIIt IICn .'1 ,.._to ':o~it 1tOI~'" t....tffto o!tIIt ··.d'",',~ "1CIIII.1'''111·~' IftC ..,.. On, "~II ' let' ...",reo. ,O! .......... II!" ".d!", ley .. ' . ,,! ,; "let II,' till., .... tIIIt.......' OR Ic.c.... ~ "IINIDI....' _1M, .. . I : 0'011 to.."'" ,HdI" _I"II I roll ' ~"... ..lntNfttlOIlc er. ,-.ft'......:. .... ",""ctl.llltll\l.;tftt "0'<::. ..." ¡'0011, '. "ooired . ...It a. ,_ . 'I'rVlfion Or., r.o. ~~,. .., M'em........ 1ft hi. 'De':e~ .n ~ 111I ...,.........., "IØI'.t. """"è:ttoft '''1'''''· fir..... ,', tilt C(I"'''''''tl11d pOoIi "'II·........... .bll'CImtm.... 11'. the "¡:'. 'Of;. "1111II ,.. INV be ,,""ftL . I illl· --,,,,.. àIr it iIMcI 1ft "IOY/'t I~ __ UI. ... 0: Iftll· _: ,elltfelo :" IrtlIàt '0 fill ~.., IfIt ...... fer ....... .'" pi.. r; 'IlhIt·\ JOt'1 ~ ·Itìw.. 0\, dto"lOl, ~""." I i~. r IJ"tIltM !irNly f; !1eI,. r ~ II' t... ....... ..., De l1el .' 'M .... ... .~ ,. A.M.. J." ....,... ~WII'" ... .... .... ",. ..... .., '.. ..... I. ... MIt ~ Ir ...., f!-. 1M .. m,"" ..III ~t..,,:' . : ...... eI . ..,..... . ..... tIIomII . ..... II. ........ ......., Mtt. Þ.I .. .. tJ .... ........ ~'...,t.._, ........ II. '..' -I #1 ) Union Oil and Gar- )vision: Western Region Union Oil Comparl1 of California 909 W. 9th Avenue, Anchorage, Alaska 99501 Telephone: (907) 279-7681 July 10, 1972 Uv n·¥ ~ I~n'~' ~. , ",I," 'I VIJI'" .: ," \ ·State of Alaska Oil' & Gas Conservation Committee , 3001 Porcupine Drive Anchorage) Alaska 99504 TRADING BAY FIELD , 'CONSERVATION ORDER NO~- 93 Application for Amendment c.o~ I/Ç- Gentlemen: Pursuant to the Oil and Gas Conservation Regulations and applicable statutes of the State of Alaska) Union Oil Company of California) on behalf of itself and Marathon Oil Company) requests Rule No.3 of Conservation Order No. 93 be amended to read as follows: Rule No.' 3. Comningling. Commingling in the well, bore of production from the Trading Bay Middle Kenai "0" and "E" Oil Pools is allowed. f;~' In support of this request) attached is an engineering report marked Exhibit "A" prepared by Union Petroleum Engineer) Gary Burtchaell. Atlantic Richfield Company) Texaco) Inc. and The Superior Oil Company are affected parties since Conservation Order No. 93 includes parts of Texaco-Superior lease ADL-17597 and the Atlantic Richfield operated North Trading Bay Unit. A copy of this application has been mailed to these parties as evidenced by the enclosed Affidavit of Mailing marked Exhibit liB 11-. The proposed amendment will not adversely affect any of the parties' correlative rights. Your favorable consideration of this application is respectfully requested. Very truly yours) cc: Marathon Oil Company Atlantic Richfield Company Texaco) I nc. The Superior Oil Company UNION OIL COMPANY OF CALIFORNIA ~o/~/ .~ .~ } EXHIBIT "BII AFFIDAVIT OF MAILING STATE OF ALASKA THIRD JUDICIAL DIVISION Judy L. Bailey, being first duly sworn, deposes and says: That my name is Judy L. Bailey and I am an employee of Union Oil Company of California. That on the 10th of July, 1972, I personally mailed a copy of the application dated July 10, 1972, of which this Affidavit is a part, for an amendment to Conservation Order No. 93, Rule 3 to each of the companies listed below: Mr. J. P. Reynolds Texaco, Inc. 3350 Wilshire Blvd. Los Angeles, California 90005 Mr. J. H. Cox The Superior Oil Company P. O. Box 1521 Houston, Texas 77001 Mr. Ralph F. Cox Atlantic Richfield Company P. O. Box 360 Anchorage, Alaska 99501 Further Affiant sayeth not. \\" J.~fJ!ThblN J~ILEY ---Ô UNITED STATES OF AMERICA ) ) STATE OF ALASKA ) SS. On this 10th day of July, 1972, before me, a Notary Public in and for the State of Alaska, personally appeared Judy L. Bailey, known to me to be the person whose name is subscribed to the within Instrument, and acknowledged to me that she executed the same. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official sea 1 the day and yea r in th i s,/}:.e . fi c e fi rs t ab wri tten / /' / 1/ / ~ ...~( ~~C_ -".- // ( :s ary Public' nd for the tate of Alaska My Commission expires 5-2-74 /" ( PS' ) ENGINEERING REPORT IN SUPPORT OF THE APPLICATION FOR AMENDMENT OF RULE 3 CONSERVATION ORDER NO. 93 c O. / / s . July 10, 1972 Prepa red by Gary E. Burtchaell Reservoir Engineer EXHIBIT "A" Commingling of the production from the Trading Bay Middle Kenai "0" & "E" Oil Pools will extend the producing life of the "E" Pools and thereby result in a greater ultimate oil recovery. Three wells, A-8, A-10 and A-13, were completed in accordance with Rule 3, Conservation Order Number 93. Each well was a triple completion with two tubing strings and had the versatility of producing the "0" and "E" Pools separately or commingled in one string as well as a third Pool in a second string. Exhibit I shows this triple completion for A-10, pro- ducing the "C" Pools in the short string and the "O"_"E" commingled Pools in the long string. Field experience since the first triple completion was run in July, 1970 has proven this type completion to be unsatisfactory for highly deviated holes. Packer leaks in all three wells have occurred and allowed com- munication between pools and the tubing~casing annulus. In addition, scale build-up in the commingled "O"_IIE" Pools tubing string of A-10 and A-13 has prevented the separate testing of either of the pools as wireline tools cannot be run to shift the sliding sleeves. This latter problem is believed to be the result of taking a pressure drop across the XO sleeve opposite the "0" Pools. Exhibit II is a structure contour map of the 58-7 sand, the largest of the five "EII Pool sands. It shows the location of the four Pool completions. A-2, the structura 11 y highest well, is completed in the gas cap; and A-8, A-1O and A-13 are completed in the oil band. Page 2 Volumetric estimates of original oil and gas cap gas in place are 8.12 million barrels and 4.206 billion cubic feet, respectively. Primary oil production to October 1, 1972 is estimated to be 1.055 million barrels; and ultimate oil recovery to the pool economic limit of 100 BOPD is estimated to be 1.800 million barrels or 22.17 percent of the original stock tank oil in place. Exhibit III is a production decline curve for the liE" Pools showing the daily production rate, productivity index, and cumulative production. Approximately 745,000 barrels of oil remain to be recovered after October 1, 1972, with continued commingling of the "0" and liE" Pools. Because of the relatively small amount of oil reserves in the "E" Pools, it is not feasible to drill additional wells to produce these reserves. Nor is it economically sound to recomplete any of the three existing wells in the "E" Pools as a dual well, omitting from this completion either the "C", liD" or Hemlock Pools that the wells are presently completed in. The "C" and "0" Pools are under pressure maintenance, and the Hemlock Pool will be returned to pressure maintenance. Oil reserves per completion in these three Pools are considerably greater than those of the "E" Pools. In order to repair existing packer leaks and to reduce future workover expenses, we are planning to recomplete A-8, A-10 and A-13 as dual producers in the near future. The "E" Pools in each of these wells will necessarily be omitted from the completion unless we may commingle the "0" and "E" Pools without the necessity of the separate testing capability as presently required. We are presently field testing a new dual gas lift completion which we plan to install in each of these wells. Exhibit IV is a drawing of this completion for A-10 and shows how, with the aid of a 1-1/2 inch Page 3 ') ) gas lift string, the lower interval can be produced more efficiently than with the existing triple completion. The additional drawdown afforded the lower interval will allow the "E" Pools, if it is commingled \^lith the "0" Pools in A-10, to be more efficiently depleted. For A-8 and A-13 the additional drawdown in the Hemlock Pool, which will soon be returned to pressure maintenance, will allow for a more efficient depletion of this Pool. In summary, I have shown why continued commingling of the "0" and "E" Pools is necessary. The reasons, stated briefly, are: (1) Greater ultimate oil recovery from the "E" Pools. (2) More efficient depletion of the "0" and Hemlock Pools. Because of the adverse physical and mechanical conditions described above, however, commingling of the "0" and "E" Oil Pools may not be efficiently continued under the current Conservation Order No. 93, Rule 3. These conditions will dictate premature abandonment of the "E" Pools unless the requested amendment is granted. ALL DEPTHS SHOWN ARE TRUE VERTICAL ~ .. 9 5/811 CSG 593d=== 5824'=== :3L ..~ __.~._._ _-=-=-_ ~ 5837 DRILLABLE PACKER 5853'=== - z: 5240 R H DUAL PACKER 519d ~:O:~3L>< 5277'=== 2<. .~ ~ 3881 RH DUAL PACKER 3945'=== 3L 31/2 TUBING ~ / "-..... --/ 2176 -../ 2199 -./ 2808 -./ 2834 -/ 3307 -/ 3330 -./ 3703 -./ 3727 . --" 3817 . . -../ 384t ' TRADING BAY FIELD WELL A-IO EXHIBIT I ') 'E' POOL '0' POOL 'ei POOL ~..,l..r - - .. " T5-4 .//~ . ~NO"'O~ /' "OO~I ~"^'O 1 [. i."".,"'....,. T5-2 ~...;.::. . ;~€ ~~~~ STR\JCTI"j:jE Ml.P CONT()V~ E 0 0", TOP ~8-7 SAND (E POOL) -r--"-- --+--+-~ -~~ -'!'------.... .- .--.--- . -LJ : :~~ =-+-~ , ---r:I.. L- : ;8-~-:~::~~ Wt:L L HEAO PI.M TRADING BAY FIELD un~~n S~u~.rn Alcuka Di,trict ~~~~ ----- ---- ._--'--~-- ,- ------'. ~~__~~OO' o Completed Ihio oor.;I 413" 9tJO 'f,.f ~,~.~ ,.~ \ _.? ~~- A.~2 .~J 9 ."~ ".-'..,. ~;;;-,l..t-. -,:Lt.:'8 I Í' .... T 9 N A-18FAULr r I I _, "" I ~.l: ~ ,..~ SrA"(' .. 2 "):", ..,. . I I:'" ",. 32 . 33 ± v\--{ ~'~'~~~~~~~~~~"'f'''''''''~''''''''''''''''''''''''''''''''~~ ~"~¡''ì'~Þ~~'''''i~''' ¡.IG . I ~ I I - -- ~ ... ...., .....-..... -- -- ,. '""0 ;~1 MN /' T01"'PO t' RI3W " '. ,~,. 1.0 l. . ... I - -,' I, - ";.' . I ' I' ,,; . -.1. ; " I. I . 1 ,I .. - I -, I I ï~' .-l .1. , .... " .... .." I.' ., 'I ' . . I' I I I.. 1 I I I .1 I . I .: I .1',: .1 ,';, I,. I ..' "'.. ',', "1 ','~ ~ I i I I ''''., ~ .. 0 0 Î 0 '1 : '" . ., . 1 0 I 0 0 1 0 . 0" .. 0 , I" . ., Î . 0 I .. I ''; ! 00 i'.g:¡: ,Ii :;:.. U:/> ¡ (~~I: ¡::::;:: ::!: '¡ H·i.: 0 .::: ¡::::::1;:~ ~.~,~~ ::.. ~.:. ',,!;":..::: ::¡!';::,:::.:; I:::.. ~j::: ,'::'; jl~:-": +~:': J¡':::: :;~I: :~:.::~ \: <:,: U <: !.'i;:¡ ! "1 I I'" " I ± 1 I - I·..··,,· ,......, I' ,¡, ..:'.,., .. \." .,........,!..;' . .. ...... .... ·....rI . ....I·..I"¡..··..·· I:' ¡ ,':', L '. L I :,' , , . .: ,':, I 'I ' '. ,',' " ¡:.: i ::::;. :.-::::;:;: ;¡::¡;i'::;¡::<'::::ii:I;;::::::,L ,,~ . " ._..1_ _~ ~ _,~_-'- ._,_1_~~ ~~.......L-__~_.''---- __1_._ _'-':....1___ -~._-----! -~ _~~-'-U~...I.I..,.. __~~l<-J.~~~~ DAYS ON ~ ,.:~........... JT1. c-r-I-~- 1 r~'-"I~-ï-'-r-rrl-l---r..-=::"-=:':J-=-~'~J=-----~~'i'T·--! -;'~' I~' I~"-l--r'l~-I ~'I- ,1' ;'! "I;-~' -_r' ~ '-. L~, ,~...._....I__d_'__.-_' .\~/._. ·....1.. ....·..1·· . b.__ J - --I· I·... I . I' I ' _. . ..., -'. _" ,.....,. .y.. _... '1" .. .\-.-. ,. . ,... I"·· "~VMUI I\.TIY¡;·OII.I· .. . . I I ," I ~ ,,~,~~~l~:.. !::Uj~..r-. \ ;1.. -¡'__~;lS ~~{5~11:}L,r [. .Hf "tlU '~:H~RõnT:::'::\?[i ¡:> p··n·: ¡\~-¡ :',::! ~;.j ¡,U ¡.;- .jiLt H :.::. 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Iq_j~_ i 19)~ 1'91~_ I 19 75_ I 19 76 !~.fl. ¡ 19.1!L ¡ l<f_?~ i '19-~º-- 19~. I'L~ r'1~ - - j ,~-! "-' 1'1-_- j }--. I , - __---, 100 .----~ -. I ! .-r-1- V J g '! z '2 '.1 I «<- a o "- :D I_f A'>l 'l'<fll ~o. .~~8, ~~JO,A-I.3_ rli!!.!) TRADING BAY FIELD ;'0'1[: __'E~P09~_ - - --- -.. --~-.._- ..-- - ----.--- - - ----- _. - ---- --. E)(HI~-':r_lIL__. .__ '>fRr$. ~ 'e' POOL '0' POOL 'EI POOL ) ) TRADING BAY FIELD WELL A-IO EXHIBIT IV --! 2150 31/2 TUBING ? \.. --! 2850 ----I --.J 3500 --.J --! 3880 --! ><=~ 3945'=== ....c::::::. 5190'=== ~-- ~---- -----, 5277'=== 5824'==== 5853'=== 5930'=== II G/L MANDREL .,.... 11/2 TUBING ..,$ >< ~ 3881 RH TRIPLE PACKER ~ ~ u -_----~ 5240 DRILLABLE PACKER --<=> Â .... 9 5/8" CSG ALL DEPTHS SHOWN ARE TRUE VERTICAL