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Home My WebLink AboutO 042 e e 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. o 0 4-~ Order File Identifier Organizing (done) o Two-sided 1111111111111111111 o Rescan Needed 11111111I111111I111 RESCAN ~for Items: D Greyscale Items: DIGITAL DATA OVERSIZED (Scannable) o Maps: D Other Items Scannable by a Large Scanner D Diskettes, No. D Other, NolType: D Poor Quality Originals: OVERSIZED (Non-Scannable) o Other: D Logs of various kinds: NOTES: o Other:: BY: ~ Date: 711~/()h I Scanning Preparation BY: Date: + /s/ ~ 111111111111111111I /5/ ~ = TOTAL PAGES 3 4:- (Count does not include cover sheet) /5/ Project Proofing BY: ~ Date 7lJ-/ofo Production Scanning 111111111111111111I Stage 1 Page Count from Scanned File: 3 S (Count does include cover sheet) Page Count Matches Number in Scanning Preparation: BY ~ Date 7 / /(j.j ó (, Stage 1 If NO in stage 1, page(s) discrepancies were found: t/ YES NO /s/ mp NO YES BY: Maria Date: /5/ 1/1 111111111111111I Scanning is complete at this point unless rescanning is required. ReScanned 111111111111111111I BY: Maria Date: /5/ Comments about this file: Quality Checked 1/11111111111111111 10/6/2005 Orders File Cover Page. doc 1. June 15,2005 2. June 27, 2005 3. July 28, 2005 4. August 9, 2005 5. August 16, 2005 6. August 16, 2005 7. August 17, 2005 . . Index Other Order 42 TBU G-16 Enforcement Action AOGCC Letter to Unocal re: Notice of Proposed Enforcement Action Unocal's response to AOGCC letter of 6/15/05 AOGCC scheduling of Informal Review Unocal's submission of further information Information provided to AOGCC at Informal Jeview Sign in sheet to meeting Letter from AOGCC to Unocal concluding that no enforcement or penalty will be assessed Other Order 42 #7 ) --~'.\ ,-~ ~'.'~" ,',"''' ~, .,--a, . i ,j ':1 ;: !~ :l; ¡ "I " 1 I ! ¡¡ i L" ,¡¡Íj ;,~ r',;-~ IF u FRANK H. MURKOWSKI, GOVERNOR AI/ASKA. OIL AND GAS CONSERVATION COMMISSION 333 W. ]TH AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 August 17, 2005 Dale Haines Oil and Gas Operations Manager U nocal PO Box 196247 Anchorage, AK 99519 Re: TBU G-16 Enforcement Action Dear Mr. Haines: As communicated to Unocal at the conclusion of the Informal Review meeting held August 16 at 2:30 pm at the office of the Alaska Oil and Gas Conservation Commission ("Commission"), this matter is concluded with no enforcement or penalty assessed. Based on the information submitted, the Commission has determined that Unocal was properly operating TBU G-16 in accord with the June 5, 1998 document signed by Ms. Mahan. The Commission appreciates Unocal's efforts in clarifying the issues in this matter. During the Informal Review you confirmed your understanding that, because the operating conditions of TBU G-16 have changed, the well cannot be returned to service without the prior express written authorization of the Commission. You also indicated that an application for Administrative Approval would be forthcoming when you are ready to address reactivating the well. act the Commission's Special Maunder, PE at 793-1250. cc: AOGCC Commissioners Dave Cole, Unocal #6 ) ) ALASKA OIL AND GAS CONSERVATION COMMISSION Date: Þ-..... ~,~~\- \ Co (~O~~ Time \4~t) MEETING-Subiect C:,- \Co 1:,,~~ \ \<.t.'-3\~~ NAME - AFFILIATION (pLEASE PRINT) To "'- \--\~~ ~ ~, D ~n .s-(c a- fYtÇ) U ~ ~~1 !t::;-d-eíh \ S.þ....1P. ho.1'Y\np.-ct""_ t(F..) t~ TA~L~.Kì I)c:.le.. H4i'h.~S ]) Cl\JQ" ¿ Co \e-- r1£'1~\~{~ ~erL ~~ þ(J(., ( ( - ¡ ) 1.1. VI D (:Jð. / U Vl ø c:: oJ.. l \"'o(',~'- (J V\O c...Q.1 tJ~ð ('f! I 4,oN\Æ\CttA A-O(7C¿ /t{) ~ t! ('~ DzJ$~;~ TELEPHONE ~<; Š-\d~O .:;2 63~766/ Z,lD'3· ..., ß l ~ 71 :=z...-7(_~~ d l D :i: - 7llt ð 0 :l (. l-1-.YS-o t~ (,'"3 - ?(fOS- ?93-" tZ-æ 7tf3 -/2z, J ~G '1 -- s-z S-~- 7~:J -/Z-~<-¡ #5 b,of (] ~ ~ DtvJ( '6/ I..~o ~ \.j i ~ Grayline Well G-16 History from March 1998 - Present -./' -1'~ ~ ¿ ,/' Workover in March 1998 to repair tubing/casing communication and to verify casing integrity. · Standard MIT completed and passed on 3/27/98. State inspection waived by Wendy Mahan from the AOGCC. · Well placed on injection 3/27/98. · Standard MIT completed and passed on 4/19/98. Witnessed by AOGCC representative Louis Grimaldi. · Inhouse MIT performed and passed 6/5/98. Unocal sends letter to AOGCC requesting approval to hold pressure on the tubing/casing annulus. Approval received from Wendy Mahan. · Standard MIT completed and passed on 10/1/02. Witnessed by AOGCC representative John Crisp. · Waterflood shut-in on Grayling Platform late in December, 2004 due to lack of fuel gas. · Waterflood placed back in service on 1/30/05. · Standard MIT' cOÒlpletedãnd Passed "on 2/19/05. Witnessed by AOGCC representative Louis Grimaldi. · Casing pressure increase observed on 6/1/05. Diagnostic testing conducted to verify that operating conditions had changed. · Well shut-in 6/6/05. AOGCC notified. · AOGCC letter 6/15/05: Notice of proposed Enforcement Action. · Unocal responds to AOGCC letter 6/23/05 and requests informal review. :-c c: þ "- c:: u a: c:J ~ )w . æ-· -: 01::1I "'T'i ~ ~ ~ ~ ')3 .. 8;1 ~ - e 0 -J )~ . ~ ~ m ~ ~ ""0 .1KJGfX RÐ SØlATUJŒ: ~f"i~~. ¡¡),,~.) Ai- , :tI,W y fJ~¡"4.1., 141:'Í1¡ . )7.7/erß 1)1.11 t~,rzre..rl(1í!. CD ~ t:. ......I.~~ ~ _.._RIa I é.~ ;:;F( ........... CPERATGRREP 8kWt1UJe i1J. . ;411:+.··. M( WILL 1'IIT: ..... ~-v-- Wcña"-:.)c ___ ._ œ.r -:Ia _ ANlftJJ.MFLUD: P.P.G.. ØnId. DIESEL Ð.GØ GLYCOL· v- - -a.GI' SALTWATER--. '" . .~" aGø -- DRlWNQ MUD _ ." ~_ ~. ~ . aTHER . ._,,_.. 4._ ... .. T8G.1U.. FWD CODES ~ F = fRESH WATER INJ.. , GIDßA$UU. . ii 8. SAlTWAt!RIU. .., N· NOr IN.IEC1'INGI TEIT TYPB: M = ANNULUS UONfTORtNG P s: 81D AIftILU8 PftES\IURETEIT a-1N1ERNN.. RAD. 'l'tLl.t;ER SURVEV þ.- 1IMPB1ATUREIWJMA1.V1l:Sf D =DIFFEREN"ML 1"'EWERA1UR!1ŒT . . - ..., -', .. ....-, ."" .. .j -- '._---:~ ....- ....... -............ - ~.... . - . ,,,..... -'..- .... .... ~ _..J Þlttr. - -_..~, """...~ ø _ - -' ......,1"... _ --.;1 ""- ~ . "'). ... -. ,. ~ - . . . ".. ... -."'_ ...-...." _-- -'_.( AI_ .- -- - ~ -. ... \:. _.".,........ ......,... _ " ~. .... --- COMMENTS: " .- . - ~·'~r""._ '.....:..~ 'II¡Yf ..._ "" , - --.- .<11 \ .' ~ ....l_ . ...- . ..~-- - . t.- '.,_h..' . '.. ....- ,- .,,.-~:'" --:. -"'''·''"1 , y- -.- ¡ cmiMENts:· ,-- ..... .I. _u-:::- .. ... ~ .. ~ , \.". ... .. "'~ _.__ en ._._ .:__ c_ _._ . \ '. r -" f _ _ _"','" AU _ ~ ~ n. \. "'" ----.. I - \.a - -,v --.- ~ .-,.". .~ ----~r .~ . _, . ._n.-.."- - ., -,.- ,,,_ IIL,::-- # ~,.' I , -. ; .....> " 'II(~ ..- --.. _. --¡v _.. ,. - ._-.. ~COWENts: -.- . - __ ¡r-!J ~ - ~ -.- ;., ~.- ._.ß .-. It : II I - - -"'... II: ~ .. - r --- - ~-- '. . .. -.-. ;.'- '. - .--. --4.' !. ~ '~I ¡:¡i9i:~ril1~~~~I'.~ ':' n'; ¡~~ fll .,.~f :;. .t:lt" . _. I. ON..=-.__ ,'ê6D1NENt8~ I .-. .'-'" # DA'II!: :5 - 17.-:-..,R __ _ f &TATS OF ALAI1CA ~J·~8KAOILANDGA8 CON8IRVATION COMIIISSlON .......... t.d.....ty TIM ~OI._ ÆUJ/UNlT/PAD:._-_/R:lli~'IU.k. _.~ -.V-"'-u _""_ _._. ~ OPERATOR: a: (' (' . . .. ... . . _.- (' 8TATEq \LASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Mec.... Integrity Test ~ OPERATOR: McAr1hur riW!{fradinQ ~~IßrayI~ DATE: 4J'~I9B UNOCAL FEUJ , UNIT I PAD: j~- ..~. " . .. . ~ 4'740 ,- 1500 ~ 2,200.,' 2,.200 ; 2,~.' 2,200 : , G~ ....... . _._ P j KCI..· 1 '..111 , ~471, ~.aD . .~., 2117 1.050. . 2,300 2,.300 ~ 2,3DØ ~.. ~_ . CorwNE~t prMButft obnrwdb'thitty minutN ptforlo ¡nuutrlmø up annufua. .,..' ~1e5 I ---'1500mll{. 3,200 ,~~aO' ~200 ,.~200 .. G-12 ,. . ..~. X~~: 12.072 ,~ ~7t" ~ __ ....., f 21;1 1,SOO _, ,_ 2,250 ; 2,260, 2.2$0 COYttENTSPrWeatpreøuru obætvedforthittytnim.ItN ptfor to pr.uUl8lns up snncm... ~ H5 p. 'h_ --. .. 91 e2 : m.. 1m rñlf) 3050 3œo 3050 ~16 . /' p: I<CL . 11842' ,~ ~7f1 ~ I 3 112\ 2ft1 - 1}St!.. __! 2SSO.", - 2350 'COMMENT8PriJteatptHlUfe4 obtJeMJd forihMy!ff/nutu ptIor to ~ up ennutUf. .- JœO 235q .. ~ " ~ on: J!, .... -. -., I .- -. 15ÓO;mn . . ....... .. ....1 -..JJ." __J ..-. . ¡CONNENTS: 'o. . ,---.~ .. . .-.... Y. ...~. ---..-. ,.. .._------ - 'ëOMaièNiS: 1500 mfn __ 1 I 0 I ~ ..- ._m_ - -r- . .' ....-- - - . - - ... _. ._- TBa INJ. FLLßD CODES TEST TYPE: F :II FRESH WATER INJ. M,. ANNULUS MONITORING G· GAS INJ. P . STD ANNUWS PRESSURE TEST S· SALT WATER INJ~ R II; INTERNAL MD. ~CER SURVEY N .-: NOT IN.ÆCTING A ;; 1EMÆRAl\JRE ÂNOMAL. Y lEST D = DlFÆÆNT1AL TEMPERATURE TEST ANNULAR FLUID: DIESEL GLYCOL SALTWATER":"--9~-3 r DRIWNG MUD An. - ,,- - .- OTHER ".Q. Gnd. ~ . (J~OO 0.00 0.48 0.00 0.00 WELL TEST: InIIIBI X 4 -Veer" Woñcovet Other Dr.tTb.ItIan: q - Well file ç.. Opentø ð-~ C . Trtp RF'JI Fit c . InIpICta' PERATOR REP ~GNATURE: Jøh1fny T. s.ntIego . AOGCC REP SIGNAtURE;. ~th lf~__~ JulJdIfe..xII f c.... ~ t -æ ~ ..... c c en JI m ~ ~ ~ ~ " i ~ cc c -. )ê c: """ .a ~ c:: c...: ..... c u (Rw 9/17196) - E ) ) ) ) ) ) of- ) :; ) Disb'ibuIiDR; orIg'- WeD File c - Operalor c - Dallbue ( c - Trip Apt AI e-Ins~ OPERATORREPSIGNATURE: _:¡) ~ ~( '( . AOGCC REP SIGNATURE: « '17196) TBG. INJ.. FLUID CODES F = FRESH WATER INJ. G ::: GAS tNJ. S = SAlT WATER INJ. N = NOT INJECTING TEST TYPE: M = ANNULUS MONITORING P ::: SID ANNUlUS PRESSURE TEST R = INTERNAL RAn. TRACER SURVEY A = TEMPERATURE ANOMALY TEST D = DIFFERENTIAL TEMÞ~TURë TEST --- - ANNULAR FLUID: DIESEL GLYCOL SALTWATER DR'lUNG MUD OTHER ><713 Grad. o.oa 0.00 0.00 .JlB 0.00 0.00' WELL TEST: mitial 4 - Year Workover Other K ~~: P.P.G. o COMMENTS: -J o 1 COMMENTS: o ... t' ') ~ COMfuENTS: (;, COMMENTS: '\ / 5 t ~- o Oq-l) 0 I .. "^ · "\0 V- i t! ('it, 1<- oK !?~ ~~~ {V\.\T~ f} " \J L , 't ft"i L. JI f DATE: 6'-~-?~ OPERATOR: Union on Company (UNOCAL] STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Mechanlcaf Iniegrlty Test FIelD I UNIT J PAD: Ke. )\Q" 'f.-\Ufl. ~ \~eJ -rtM>\.... ~ 6Þ"¡ J ·~ OU05l98 Aogcc 0·16 Leak ReIOJution.dog .f:,JS"Jc)8 .~_.. Date w~.L4..M.~ Wen",.h8D ,....... ,-,.. AOQCC kIIfL ""." """ ..-,...,-""".,,....... >. ,". S.i . - -'~-~- -~-- . .. · . -. , RECEtVED 8enIOr~oit:Bqinee.r JUN C,5 1998 Cook Jnlot Watdood.MaMÞmt4t . IUdø on & Gas coni. comlU'15\0I1 ,..,. Anchorage Plcuo retum a liane4aød dated copy olthi.1etter to documMtt ~r .....nt with WI opet'lttOÞ for our . records. bl5 ....ð1 :a.: Gr.lD.lo-lI . Mfaor LeIk Ca\llel DO Ii.k IDd I. wltbta AOOCC QlldeUneJ. 0. Wend)': TIda 1øtler it to Jntorm you that we bave .finùhod aur tilting the 0.16 injeotiøra weD and It It wltbia the AOOOCM1T~. The wen PI- . Dew M1T on Gls/PllIId 1he welJlIeød chock out aœcl We plan to OOIdDuolJúec:don ùdo thf. well_ hold bac~ on tbe anulul to minimize thelelk. AI with aU of Gar Iqfecthm well. WI wm cloøJy uadtor the plaIWe on 1be am. and b1ec4 aff'tb pres.UfO .neceIWy. TIto 0UØ'0Dt pIan il to ~Ia 2000,p.¡ 011 the IIÌnu1aI ad mcmfurfbr ono week. Itthe preøure boJdt '" will lower the þlUsure 10 1500 p.i aod 11IOJÚtOr !br OlIO week. We wUl cxmdJLue t1dI opomlon umu we dSetmhae the ft'If1ritMt1"I "..'1Ure which ttlltfll..,.t1t tile IIÙøOr 1oak. litho pnIIQrIlncrraue wJúJI IUemp1ia¡ to hold the ~1I2000 psi. WCI wUllOUthae1y bhld Gflthe ~ \dien It 1WU. 3300 .PIt blot 10 2000 pl. PJeae lip IDd lend. co,py ofthtlletter 10 my tax at 263.7814 otheawJ. mil me It 2ð3-7I30. lune !þ 19'8 Wendy Mûu State at AWkI AJuIca OIl ad Ou COftIe1'Yltion Comød.u1OD 3001 ParaupfDe Dnw ADChoraaet AX 99501 VIIØQJ CorporIUoa Aplcaltutll PtoducÞ §II» W.gm AvCfJUI. PIO, Box 196247 Atlchor:lIs, A1uka 9PSIP-6247 Te1e,pJumo (~7) 263·1830 UNOCALe f. U!lUI rAXNU. BU'(2631lH( ............., GAS GKf UNOCAL( 01 JUN-05-98 ~RI 14:06 10/912002· ~'T erayiing PIt. 1Q.01-02jc.xI8 MIT report form . 5112/00 ,L.G. Tatar Time during tam: !.IJlL Øi. , , M.I.T.18 performed: I . Attachments: Number of Fanures~ ø. "TIllt"IiIOetaU. I travtled to Kenai Alaska 09·30..02 to ,be 'avaUable to travel to the OrayUnø Platform. @ 0630 hrs. 10..01..02. Testing went well wI Water Flood Operator:Da\'1d ,L. Meyers ,conduetlna tests in. a safe &. efficient manner. No ftlilureB wero witnea8ed.:AI~ OA p'ressur. were o~øerved & recorded during tests. ' ' 'Yith b~ pennafroat ,~œrn8, all teøts utili~ fil~d Inlet, water Iòt teat fluida, . rvv·.. ..\ ..._.._...... ...~. .. ..~_., r" ..- I", AI .,..,.,:,..,."... .,. ,.'. ...n... ,I . "._'... ,.__, .... Pac~er Depth . . . P~lt ,:<Ln1tlat,. 1 ~ Min. . 30 ~Jn! ... __, ,'-." . I , ":"ell C;;-SRQ: Ty~e tnj.· ... $ '.. r"T~.v.º..J...: "Z.~." .,!u~nfi.Ø\ 840.~ '34~ ;MOQ_ ''".~O. I,M.18ml' .-1...: '1 .P'~T.D. .1~~2DQ.. "TY~~. " p.._ ..:r~p~ . ,~~OO CtJ8lnA 1eo . ~<400. . . 2~DO ' 2400 . P/F ;f!..; I.,,~~: OA'p~urfii.'?Q ~:...- '. '.. ..' A'..,. " v wr ,#v r ... .....-.:"... Wall: ,G..j6.,· ,Type,EnJ. S T.V.C.. . 8883 : Tubing 3250: 32!O '8250 3250 Ime",.1 4 t . ;', P.'f;~::"1':B$tå90·.;~ì:vPë:tIst 'p. r!stp.1~·~~O~Æ~.§~ïnq:::'.190.Õ·. ,. ~5Ö' .242~ ..:.i4~~..,~"Þ/F": ·F. - ~" N"'~ ()~.p~~urt? .~1,Ø." "L" ~ .~n.. ... ._'. .~~ .............. .:, I _ ..." l..,^," ~eJ~ 0';. ~~~_ .' ..:. Ty~ .I~j.: _".,~ _ I . }:iY~9,!..~ ~145.., Tubing 3200 3200 S2Qq. ~. I .~~OO ,! I.nterval~ 4. ~__ P.T.Q.~ 16~170 TyP.8t8tft...,. P".' T. pst 1 ,250Q' CIBJ~ f340 2~QO . ._..~~OO ;~ 2ðOO ~1F..... ~~ < N": OA re88U19 125 .. 210 dun . una test. , ...-.. ~"~.., ... , . Well ~ ~22 . . 'TYpe,triJ:"·. S,A: ~ ~ .' '.. Q752. ~. T~QI~J ., -: i34p-Q.' lI:IP~~_~'''~ ~'oQ..: ~øÖ.. )~~.rŸ~I".,.~ ': ,. ~.I.,~..:" 1!'§~j~ .1~:~....· "~"~ ~J~~..'.._ ~~5º :Çª,ina.. e2Q. " 2350. 23~... ...J~50 . ~/F '."p' '. ~: ,OA ~~~.~80 ~~~_. ~o.. duri~~ preuure·teBl.. . ,. ,. .__ _ Wen a·2SRD Type,Jnj.;··· S . T.V.D. &459 TÙbing '3400 3400 3400: - 3400 . t'nteNal" 4 . '. "·1 -.__. "-._.~... -.~....."-... ._. ..... ...-... _. 'L _. '".. P.T.2!. '1792;t~9.. rJP!lt8St~..,' ~ AA,T~~~r , ~ ,Caai.-.g . 680 ' 2300.: ..2~_ ,.._~~~O,; P/F . P:' : Notal:' OA preuure 86 PII. ,.". tNJ. F"'J~ Caci.. F · FResH WATER ~NJ. G II GAS ENJ. $- S~LT WATER INJ. N II ~QT INJEpTtNG \ . . ~ -~.. .--- - .. IntÏrvII I- Initial r.t ... Four V.r Oycle VrrI Rtqulrtc:l by V.,-Ilnctl w-= T.t during WØI'IcIwer O. Other (d.c.... In nota) TYf)I T.t M- AnnulUl MoritOtIng p.. attn_~.... T.t Rill IntemIII· RldIoIotMI Tracer S~rwy , A- T.-np....... AmlnIl1S~ D- Olflentn.... T..~rtI r.t --.. _. SUBJECT: Mechanical Jn~rlty Teats ~~ ~ng,Bay Unit , MbArthur River Flerd Grayting Platform ,~ ' Mlund. m:' \ THRU: ~~~ SUWilIOr \OI<~ M' · John Crill) " .... FRO. roIeum lnapector. CONFIDENT I.IBo . Pet : tmØ: . DATE: Odober', 2002 TO: CaroUle O. Taylor' [jj\ ~"* Chair State of Alaskl AI_lea Otl and On ConHl'Yatton Comml.lon , MEMORAN'DUM . ' ( r '\ (; '\ .. 'I, ... ,'f' . STATE or . 'lASKA ALA$KA OIL AND GAS COtftséRVATION COMMISSION ~echanicallntegrity Test E..Man to; Tom_Maunder@admin.state.ak.us and Bob_Fleckenstein@admin.state.ak.us OPERATOR: Unocal Alaska FIELD / UNIT I PAD: McArthur River Field! trading Bay Unit! Grayling DATE: February 19, 2005 PTD: 1981200 ,"" "Veil #: G-5RD COMMENTS: PTD: 1681090 S WeD If;: .G-16 COMMENTS: DTn. '. -- WeB 'If.: . COMMENTS: PTD: yveH#: COMMENTS: TBG..INJ. FLUID CODES F = FRESH WATER INJ. G = GAS INJ. S = SAlT WATER INJ. N = NOT INJECTING. p 8,833 11,843 o 2219 .0/'/0 ðA- I~ 3.5" :a-S- D 2208 I 7 .=;""'<3 6'+ ~ /v· jZ~ ~J2g J(,:r Ie.~ S 7~29#,N..BO I TEST TYPE: M = ANNULUS MONITORING P = STD ANNULUS PRESSURE TEST R = INTERNAL RAe. TRACER SURVEY A = TEMPERATURE ANOMALY TEST n - nlFFERENTIAL TEMPERATURE TEST ANNULAR FLUID: . P.P .G. Grad. . DIESEL GL yeOl SALT WATER 8.413 0.44- DRILLING MUD OTHER ,AOGCCREP SIGNATURE~~ DistributIon· :: OPERATOR REP SIGNATURE: Çlø:;!¡,~~ c~TrIp~revised by L.G. 8/6/00 MlTBlank c.. Inspector ~~-., p .~ WELL TEST: Initial 4 - Year Workover 211812005 4500 4000 3500 3000 2500 e ~ If¡ If¡ e a. 2000 1500 1000 500 o 04/23/04 G-16 Pressure Observations HRS_ON ~ TBGPRESS -CSGPRESS -CSGPRESS2 95/8 -CSGPRESS3 133/8 ~ CSGPRESS5 20 Waterflood system shut down - Fuel Gas shortage 1 1 Communication tbg/csg 6/5/2005 State notified by email 6/6/2005 1 Minimum backing pressure 1,700# per waterflood guidelines 06/12/04 08/01/04 09/20/04 11/09/04 12/29/04 02/17/05 04/08/05 Date OS/28/05 07/17/05 #4 ) ) UNOCAL8 Dale A. Haines Oil & Gas Operations Manager Tel (907) 263-7951 Fax (907)263-7607 daleah@unocal.com August 9, 2005 RECEIVED AUG 11 2005 Ala!dca Oil & Gas Con" c.... , ' . ,). I.Im¡nil)~!01l1 Anchorage Dear Mr. Chairman, RE: Letter dated July 28, 2005 TBU G-16 Enforcement Action Pursuant to your letter dated July 28, 2005 regarding TBU G-16 Enforcement Action, Unocal would like to submit additional documentary evidence to the Commission for the Informal Review meeting scheduled for August 16, 2005. We look forward to this meeting and resolution of this matter. Sincerely, 7- h 5 Fc:;e... Dale Haines Operations Manager Attachments Unocal Alaska 909 West 9th Avenue, Anchorage. Alaska 99501 JUN-05-98 FRI 14:06 UNOCAL Fi. ) GAS liMP r~\ t·AX NO. 9U"2~~H~J(4 ,.....-....,.. ) f. UlIU1 UJIDQI CfJrpontton Agricaltutal PtodUCII 909 West91b AVCÐUI. P,O, BOK IM247 At1Chorass, A1uka 99'19-6247 Te1epJumo (907) 283-1830 UNOCALe lu.ntl 5, 1998 Wendy Mahan State or AJuka A1aøka 011 and Ou Conaervation Conuniuion 3001 Porc:upiu Drive Anchora.aet AK 99501 be "'ið" .: GrqUul G-t6 I Minor Luk Ca\lRI DO rilk aad i. m1bi11. AOGCC GuldeUneL lIAr weJUt)': Thilksu.er it to Jntorm you that we have ñnilhod cur testing the 0.16 injtotion weU and it II within the AOGCC ldlT ¡td.deIbseet The wen PI- I new:MIT on 6/5198 and '!hi woUhead check out good. We plan to coøtinue iJUocde:n into this weI! and hoJd backprossUro on the annum. to minimize thclcak. As with aU of Gar ~ion well. WI will clotdy monitor the pœøure on 1be mnulus Ind bleed. ofttho pres-UfO .. necelWy, The CU1TODt pIan il to hoI41000 pli on the annu1uJ BOd montmrfbr OlIO woek. If the preswre hoJdI M will lower the þmlsure to 150D psi and. monitor for one WCik. We will continue thiI oponrtion Wdit we determine the minimum prelmre which e1imí.aatOl the minor loak. It the preøun: increuDI whill Ittomp1iq to hold the ~ at 2000 pd. we will routinely bHld off the prctaUN When it reachel 2300 pst bIçk 10 2000 paf. PJeue lip and lend a copy of this letter to my fax at 263.7814 otherwilC r;:aU D1e at 163..7130. 7JIii ... · RECEtVED SeniOr ReJenrair En¡inœr J UN (j 5 199 S Cook Inlot Watmflood Management . Á I ~Jft 0\1 & Gas Cons. cGmtn\Ss\Ol'l 1"Ja.B\a Anchorage Plcaao retum a siene<1 and datal copy or this1etter to document your q;reern.ent with WI opeIatton fO!' DUf records. ~.:.;b¡.~~. AOGCC -bJS"J,,)8 ...___ Date Aogcc 0-16 Leak Resolution.doc 06105198 , ~ #3 I~· (rt.~ I?~ .:.. ·~é..'â" ~ ,v f. r, ;, \~, I,: i: ~ if :l...., <.'" : r if \~ Iii I¡...JJ ~.~~ 'ßJ \ j! .', . '(I i: : I \~'-~ L,¿ Lfl.J Lj ~~ í...·~' '~E' ; in! r l! :¡ il:? ¡~,,~j lJ ) ~i,~\~\. r¡ ;1[1 !,l~\. ;'(.,'-, (ù·. .....,' ! U \ ! ¡ ¿,' ¡/j \~ \'''>~ i,l 1 'iI' II I /.¡-' \ ií:ì J" '\\ i L: I,~! ,I ·.1....') \;:_) ) A"t4~KA. OIL AND GAS CONSERVATION COMMISSION FRANK H. MURKOWSKI, GOVERNOR 333 W. pH AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 July 28, 2005 Dale Haines Oil and Gas Operations Manager U nocal PO Box 196247 Anchorage, AK 99519 Re: TBU G-16 Enforcement Action Dear Mr. Haines: The Alaska Oil and Gas Conservation Commission ("Commission") acknowledges receipt of your request for Informal Review of the Commission's proposed enforcement action regarding the well integrity failure that occurred January 30, 2005 at the Trading Bay Unit G-16 well. An Informal Review meeting has been scheduled for August 16, 2005 at 2:30 pm at the Commission's Offices at 333 West 7th Avenue, Suite 100, Anchorage, Alaska. Should you have any additional documentary evidence you wish to provide to the Commission, please submit it at least one week prior to the informal meeting. If you have any questions you may contact the Commission's Special Assistant Ms. Jody Colombie at 793-1221. cc: AOGCC Commissioners Dave Cole, Unocal #2 ) . ) , r UNOI:ALe Dale A. Haines Oil & Gas Operations Manager Tel (907) 263-7951 Fax (907)263-7607 daleah@unocal.com ,:JUN ft\ 0 ?O' rJ~ J...J' ",J t.. C"" ';~j, è'¡¡ June 27,2005 John K. Norman, Chairman Alaska Oil and Gas Conservation Commission 333 W. 7th Avenue, Suite 100 Anchorage, Alaska 99501-3539 Re: Notice of Proposed Enforcement Action Letter Dated June 15, 2005 Dear Mr. Chairman: As provided by 20 AAC 25.535 (c), Union Oil Company of California (Unocal) is filing written response to the letter received from the Alaska Oil and Gas Conservation Commission (AOGCC) dated June 15, 2005, regarding the Notice of proposed Enforcement Action pertaining to Grayling Well G-16. Unocal does not believe it has violated the provisions of20 AAC 25.402(f) and Area Injection Order 5, Rule 6 (Well Integrity Failure) in connection with operating Trading Bay Unit Well G-16 [PTD 168-109, API # 50-733-20160-00] and hereby requests an informal review of this matter at AOGCC's earliest convenience. It appears that the AOGCC may not have all of the information pertaining to this well. Unocal's chronology of events regarding Well G-16 is as follows: During injection operations for Well G-16, the normal tubing pressure is between 3200 - 3300 psi and the normal casing pressure is +/- 1700 psi (See attached G-16 pressure plot). The reason for the pressure on the casing is to reduce the differential pressure between the tubing and casing during injection operations. In late 2004, the Grayling platform waterflood was shut in in conjunction with fuel related problems. The system was down between December 25, 2004 and January 30,2005. When the waterflood was started back up on January 30th, the Unocal Alaska 909 West 9th Avenue, Anchorage, Alaska 99501 I,., " . ') ) , r tubing and casing pressures on Welll G-16 returned to their normal operating range. A Mechanical Integrity Test (MIT) was performed on Well G-16 on February 19, 2005. The Standard Pressure Test was witnessed by AOGCC representative Mr. Lou Grimaldi. Mr. Grimaldi approved the MIT based on the results of the test (see attached MIT forms). An increase in pressure on the 9 5/8" casing was observed on June 1, 2005, by platform personnel, and this information was communicated to Unocal's Reservoir group in the Anchorage office. The reservoir engineer requested several diagnostic efforts be performed to determine if the integrity of the well had been compromised. Field personnel performed said tasks and on June 5 2005, it was determined that the integrity of the well had failed. The well was shut in on June 6, 2005 and the AOGCC was notified that same day. Unocal believes an informal review with the AOGCC will resolve this matter to the satisfaction of the AOGCC. Attached for your consideration prior to our informal meeting is supportive data and information which may not have been in your possession at the time you filed the Notice of proposed Enforcement Action. We look forward to early resolution of this matter. Sincerely, 7)JL q.] ~ Dale Haines Attachments '¥" ) , . . , ~~~~~ :F ~~~~~~fÆ AItASIiA OIL Alft) GAS CONSERVATION COMMISSION FRANK H. MURKOWSK/ GOVERNOR 333 W. ]TH AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 June 15~ 2005 MAILED CERTIFIED MAIL 7002 3150 0005 35211577 Dale Haines Operations Manager U nocal P.O. Box 196247 Anchorage, Alaska 99519-6247 '-'ÍNNEGO~~D JU~ t. ~ 1\)\)!j Re: Notice of proposed Enforcement Action , l...' \', Dear Mr. Haines Pursuant to 20 AAC 25.535, the Alaska Oil and Gas Conservation Commission hereby notifies Union Oil Company of California ("Unocal") of a proposed enforcement action. The Commission considers that Unocal has violated provisions of 20 AAC 25.402(f) and Area Injection Order 5, Rule 6 (Well Integrity Failure) in connection with operating Trading Bay Unit (" TBU") well G-16 [PTD 168-109, API # 50-733-20160-00]. Specifically, it appears that Unocal violated Rule 6 of Area Injection Order No.5 ("AIO 5") and 20 AAC 25 A02(f), by failing to timely report a well integrity failure that oc- curred on January 30, 2005, by failing to obtain Commission approval of a plan of corrective action, and by failing to obtain Commission approval to continue injection. 20 AAC 25 A02(f) provides~ in relevant. part: If an injection rate, operating pressure observation, or pressure test indicates pressure communication or leakage in any casing, tubing or packer, the operator shall notify the commission by the next working day. Rule 6 of AIO 5 (as amended by AIO 5.1, October 10, 1986) provides Whenever operating pressure observations or pressure tests indi- cate pressure communication or leakage of any casing, tubing or packer, the operator must notify the Commission on the first working day follow- ing the observation, obtain approval of a plan of corrective action, and ) ) .. .. .. Dale Haines June 15 2005 Page 2 of3 when an USDW is not endangered, obtain Commission approval to con- tinue injection. The Commission was notified by electronic mail on June 6, 2005 that 0-16 "... experi- enced annulus pressure and is being shut-in. A series of diagnostics was unsuccessful in determining the cause of the leak." Tubing, inner annulus, and outer annulus pressure data provided by Unocal at Commission request in conjunction with a review of the pres- sure failure shows a sudden increase in the inner annulus pressure occurring on January 30, 2005. The Commission has found no evidence that Unocal took any action to report the indication of pressure communication and no record of notification to the Commis- sion as required by Rule 6. There is also no record that Unocal obtained Commission ap- proval of a plan of corrective action addressing the January 30, 2005 apparent mechanical integrity failure. Further, the Commission is unaware of any effort by Unocal to obtain administrative relief from well integrity failure requirements as outlined in Rule 9 of AID 5. Finally, there is no record that Unocal obtained Commission approval to continue injection. The Commission proposes to order Unocal to correct deficiencies in its well integrity surveillance program. Within 30 days after the effective date of the enforcement order, U nocal would be required to provide the Commission with new protocols established to insure the timely identification and reporting of injection well mechanical integrity fail- ures. In addition, the Commission proposes to impose civil penalties on Unocal under AS 31.05.150 (a). The Commission proposes penalties for violating 20 AAC 25.402(f) and AID 5, Rule 6 (as amended) as follows: $5000 for failure to timely report an injection well integrity failure (1 day); $5000 for failure to submit and obtain Commission approval of a corrective action plan (1 day); and $31,500 for failure to obtain Commission approval to continue injection into TBU 0-16RD after the well integrity failure (126 days times $250/dayl). The total of the proposed civil penalties is $41,500. As provided by 20 AAC 25.535 (c), within 15 days after receipt of this notification Uno- cal may file with the Commission a written response that concurs in whole or in part with the proposed action described here, requests informal review, or requests a hearing under 20 AAC 25.540. If informal review is requested and Unocal disagrees with the Commis- sion's proposed decision or order after that review, Unocal may then request a hearing within 10 days after the proposed decision or order is issued. I 126 days from January 31, 2005 through June 5, 2005; January 31 is one day after apparent well integrity failure as demonstrated by well pressure data for TBU G-16RD; June 5 is the day prior to notification by Unocal of a mechanical integrity failure If Unocal does not file a timely written response to this notification, the Commission will consider Unocal to have accepted by default the proposed action described above. If Unocal requires more than 15 days to respond, you may for good cause shown request an extension of '1e IS-day response period. r JI!: ~ .. '1; 1 Dale Haines June 15 2005 Page 3 of3 ) ) / £6.e~ Commissioner Daniel T eamount Commissioner 3500 HRS_ON - TBGPRESS -CSGPRESS -CSGPRESS295/8 ----CSGPRESS3133ffl CSGPRESS520 Waterflood system shut down - Fuel Gas State amaH 6/6/2005 1 G-16 Pressure Observations 4500 4000 1 3000 <I> 2500 ¡.. ::::I III III ~ Q. 2000 1500 1000 o 04/23/04 500 06/12/04 08/01/04 09/20/04 11/09/04 12/29/04 02/17/05 04/08/05 OS/28/05 07/17/05 Date Printed on 6/22/2005 at 9:53 AM G-16 Pressure Observations 20050620 (1 yr) STATE 0' LASKA ALASKA OIL AND GAS CORsERVATION COMMISSION Mechanicallntegrïty Test E-Mail to;Tom_Maunder@admin.state.ak.usandBob_Fleckenstein@admin.state.ak.us OPERATOR: Unocal Alaska FIELD / UNIT I PAD: McArthur River Field/ trading Bay Unit! Grayling DATE: February 19, 2005 PTO: 1681090 Well #: G-16 COMMENTS: T~' · '. > TYPE 'PAêK~;' /:: ...... .; .'<.'; :·~~t, 'P~¡ST, '·;:?~i; ~!.r::~~ ).3::EN;-.·<.·: '~:~'7~¡:'~:~b:;""'8~i~Y~:~~~r~~~;'~t;;:;!'1'!:1}!;;~i¥'i;t~~T:.P. F 9,292 2219 ,.¥/D 40 ~~~D 2~2o o~ F ð~ J~ "LS- ,,:;- Ie.·~ :ß-5'"D 3~ 57-5-0 .1~ ~O 2208 I 7 :s- ð 4.;11>O~;L ~ 0 .':<;1.. <J 0 6'4- ,2.. /0 &2-1 () ¿;¿ I ð cJ-/ D -- PERMIT NUMBER "& WELl ' , , N~MBER pro: 1981200 ,. '^Iell #: G-5RD COMMENTS: s p s 8,833 11,843 7",29#,N-80 3.5" p DTn· I , I!!!!!!! Well #: COMMENTS: y- pro: J Well #: / COMMENTS: . --------- ~ PTD: Well #: COMMENTS: I _ _.' TBG. INJ. FLUID CODES F = FRESH WATER INJ. G = GAS INJ. S = SALTWATER INJ. N = NOT INJECTING TEST TYPE: M = ANNULUS MONITORING P = STO ANNULUS PRESSURE TEST R = INTERNAL RAD. TRACER SURVEY A = TEMPERATURE ANOMALY TeST D-=--DIFFERENTlAL TEMPERATURE TEST Distribution: orig-Well File OPERATOR REP SIGNATURE: c . Operator c - Database c _ Trip ~ff1t¡ revised by L.G, 8/6/00 c - Inspector Sf~~ ANNULAR FLUID: P.P.G. Grad. DIESEL GL yeOl SALT WATER 8.413 0.44 DRILLING MUD OTHER . AOGCCREP SIGNATURE~~ WELL TEST: Initial 4 - Year Workover o er MITBlank 2/1812005 ) ) STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Mechanical Integrity Test Email to:Tom_Maunder@admin.state.ak.us;Bob_Fleckenstein@admin.state.ak.us;Jim_Regg@admin.state.ak.us greensteinlp@unocal.com; trodriguez@unocal.com OPERATOR: Unocal Alaska FIELD I UNIT I PAD: McArthur River Field / TBU / Grayling Platform DATE: 02/19/05 OPERATOR REP: David Myers / Charles Chezik AOGCC REP: Lou Grimaldi Packer Depth Pretest Initial 15 Min. 30 Min. Well G-5RD Type Inj, S TVD 8,875' Tubing 3,100 3,100 3,100 3,100 Interval 4 P.TD. 198-120 Type test P Test psi 2219 Casing 410 2,280 2,260 2,260 P/F P Notes: OA 156 165 165 165 Well G-16 Type Inj. S TVD 8,833' Tubing 3,250 3,250 3,250 3,250 Interval 4 P.TD, 168-109 Type test P Test psi 2208 Casing 1,750 2,300 2,290 2,290 P/F P Notes: OA 210 210 210 210 Well Type Inj. TVD Tubing Interval P,TD, Type test Test psi Casing P/F Notes: Well Type Inj. TVD Tubing Interval P.TD, Type test Test psi Casing P/F Notes: Well Type Inj. TVD Tubing Interval P.TD, Type test Test psi Casing P/F Notes: Test Details: TYPE INJ Codes F = Fresh Water Inj G = Gas Inj S = Salt Water Inj N = Not Injecting TYPE TEST Codes M = Annulus Monitoring P = Standard Pressure Test R = Internal Radioactive Tracer Survey A = Temperature Anomaly Survey D = Differential Temperature Test INTERVAL Codes I = Initial Test 4 = Four Year Cycle V = Required by Variance T = Test during W orkover o = Other (describe in notes) MIT Report Form Revised: 06/19/02 MIT_Grayling_ 02-19-05.xls #1 :..,.:¡ :r:u U1 m ': ¡:r Postag~, U1 C ,Ce~111/i)dFe~";i t:J i ~~t:Jrn R~~I~Pt F~~: O. (Er,(j.:.r i.¿ 1T.."rd Ft':''::¡ul'':'C I:J Rê~trlct~d Delivery Fe~ U1 (Endorsement Required) .-:I ITI nJ CI CI I'- ff - .. ··--~;r~~~='-~··'~-~-~:~~-T='-'-----C.'." ." :qNJE:,D~T~~.l;,~::¡::~"?:~(.!i>I~/'~~~l:,,'p~',r~~t~~. " " " Fn ~~~,\",(¡'¡¡riS$r",la\1 '~~""___~"_'~'~C'.. ." '._.. .. ~:~::PªM . <.70!,~~~~:..~I::~0...:ri.;;;~~r:~~~.(;~dress·::~~~t;:~~~~.... ...... . :....,,:':. : i·' -' ."'\''''\ : '. '.," <" ..' ... .,. ','..:. \':'4' <iIr G)'-.:' ·f¡?~'t.'(:J. ,'. ~O~~ð ,.AKQn$Ga~Cons,el"lation ·:':~ø,:/e~~. .' ,~, \\I.:/,~: Commis~i:ol1...... .~~~/O, - 333W7thAve,Ste 1J10:\ ' .'" , Anchorage,A~;1.B9501 ~ ',. ""', """ "'........'...'."..'..........'.. 0.1..,....,. ....... ' , .....,..,' I" ,', ,'" '".' ..'",'" ,,::,.. ,.' .,", ," ",,' . ,.'" ,,' .':', . . ····~H/~~k~J£~~~~\¡~~ßf~¡l;:¡¡hli¡J,¡¡U r- ... 1 \ I ' SENDeR: COMPLETE THIS SECTION .I · Complete items 1 2, and 3. Also complete item 4 if Restricted Delivery is desired. · Print your name and address on the reverse so that we can return the card to you. · Attach this card to the back of the mailpiece, or on the front if space permits, 1, Article Addressed to: 1) f) / ¿ f/ // / n ¡? !}i;;'f y bJe../o/7~ »;f /7b/Pj/t"l:{ 0:í7¿7¿'d ¿ / jJC0 19¿ç::!/./7 ¡]/J(?L,NJ:: qCJ5)~1 2, Article Number (Transfer from service Ja PS Form 3811 , August 2001 ~ A.Signat~.... fiA,r~ n . 1'\ ,- r¡1\Q)¥ Agent X , l.ÅI'\/\ ( If)}1 ('~UJJ\.I\N\ 0 Addressee Bv\Received by ( pJ,Jte~ame) C. Date Of. Deliv~ rtU\~\f\\J GlW{1(\ G-\Ç,~cf) 0, Is delivery addreþs different from item 1? 0 Yes If YES, enter delivery address below: ~o COMPLETE THIS SECTION 0 ~' 1 . ',r,","', }':.'\)': ,:':\/ /!' r ' '1> I LI I I' ¡ 3, Service Type ~Certified Mail 0 Express Mail o Registered ~eturn Receipt for Merchandise o Insured Mail 0 C.O.D. 4, Restricted Delivery? (Extra Fee) 0 Yes 7002 3150 0005 3521 1577 102595-02-M-0835 Domestic Return Receipt ) ) ('fùJilin · 17//'¡~ ~~.( r t~ \~\ ¡If,' j}\ r ~ t " nlU i :):- 1¡;/\l1 ::1 :1 e~ \J . P ~ :'/ud1 'L1 l-1J ~ .,f ,¡""",.""<), ,.r:-._:J , I 'I 'j 'I I '; i' i L ! 11 :1 ¡ 11' '.r";] : : : fl' : : '¡ ..\J I, :1 '~ ~..... ,,,~¡ ~ ,.~L..J (fL~ , \\ \~\,' "\\ "¡.""":u1 ~) ,..::::.,..; FRANK H. MURKOWSKI, GOVERNOR AI¡ASHA OIL AND GAS CONSERVATION COMMISSION 333 W. pH AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 June 15, 2005 MAILED CERTIFIED MAIL 7002 3150 0005 3521 1577 Dale Haines Operations Manager U nocal P.O. Box 196247 Anchorage, Alaska 99519-6247 Re: Notice of proposed Enforcement Action Dear Mr. Haines Pursuant to 20 AAC 25.535, the Alaska Oil and Gas Conservation Commission hereby notifies Union Oil Company of California ("Unocal") of a proposed enforcement action. The Commission considers that Unocal has violated provisions of 20 AAC 25.402(f) and Area Injection Order 5, Rule 6 (Well Integrity Failure) in connection with operating Trading Bay Unit (" TBU") well G-16 [PTD 168-109, API # 50-733-20160-00]. Specifically, it appears that Unocal violated Rule 6 of Area Injection Order No.5 ("AIO 5") and 20 AAC 25.402(f), by failing to timely report a well integrity failure that oc- curred on January 30, 2005, by failing to obtain Commission approval of a plan of corrective action, and by failing to obtain Commission approval to continue injection. 20 AAC 25.402(f) provides, in relevant part: If an injection rate, operating pressure observation, or pressure test indicates pressure communication or leakage in any casing, tubing or packer, the operator shall notify the commission by the next working day. Rule 6 of AIO 5 (as amended by AIO 5.1, October 10,1986) provides Whenever operating pressure observations or pressure tests indi- cate pressure communication or leakage of any casing, tubing or packer, the operator must notify the Commission on the first working day follow- ing the observation, obtain approval of a plan of corrective action, and Dale Haines June 15 2005 Page 2 of3 ) ) when an USDW is not endangered, obtain Commission approval to con- tinue injection. The Commission was notified by electronic mail on June 6, 2005 that G-16 "... experi- enced annulus pressure and is being shut-in. A series of diagnostics was unsuccessful in determining the cause of the leak." Tubing, inner annulus, and outer annulus pressure data provided by Unocal at Commission request in conjunction with a review of the pres- sure failure shows a sudden increase in the inner annulus pressure occurring on January 30,2005. The Commission has found no evidence that Unocal took any action to report the indication of pressure communication and no record of notification to the Commis- sion as required by Rule 6. There is also no record that Unocal obtained Commission ap- proval of a plan of corrective action addressing the January 30, 2005 apparent mechanical integrity failure. Further, the Commission is unaware of any effort by Unocal to obtain administrative relief from well integrity failure requirements as outlined in Rule 9 of AIO 5. Finally, there is no record that Unocal obtained Commission approval to continue inj ection. The Commission proposes to order Unocal to correct deficiencies in its well integrity surveillance program. Within 30 days after the effective date of the enforcement order, Unocal would be required to provide the Commission with new protocols established to insure the timely identification and reporting of injection well mechanical integrity fail- ures. In addition, the Commission proposes to impose civil penalties on Unocal under AS 31.05.150 (a). The Commission proposes penalties for violating 20 AAC 25.402(f) and AIO 5, Rule 6 (as amended) as follows: $5000 for failure to timely report an injection well integrity failure (1 day); $5000 for failure to submit and obtain Commission approval of a corrective action plan (1 day); and $31,500 for failure to obtain Commission approval to continue injection into TBU G-16RD after the well integrity failure (126 days times $250/dayl). The total of the proposed civil penalties is $41,500. As provided by 20 AAC 25.535 (c), within 15 days after receipt of this notification Uno- cal may file with the Commission a written response that concurs in whole or in part with the proposed action described here, requests informal review, or requests a hearing under 20 AAC 25.540. If informal review is requested and Unocal disagrees with the Commis- sion's proposed decision or order after that review, Unocal may then request a hearing within 10 days after the proposed decision or order is issued. I 126 days from January 31, 2005 through June 5, 2005; January 31 is one day after apparent well integrity failure as demonstrated by well pressure data for TB U G-16RD; June 5 is the day prior to notification by Unocal of a mechanical integrity failure Dale Haines June 15 2005 Page 3 of3 ) ) If Unocal does not file a timely written response to this notification, the Commission will consider Unocal to have accepted by default the proposed action described above. If Unocal requires more than 15 days to respond, you may for good cause shown request an extension of e IS-day response period. Daniel T. eamount Commissioner f~.e~ Commissioner /'