Department of Commerce, Community, and Economic Development
Alaska Oil and Gas Conservation
Commission
HOME
EVENTS
DATA
Data List
Drilling
Production
Orders
Data Miner
Document Search
REPORTS
Reports and Charts
Pool Statistics
FORMS
LINKS
Links
Test Notification
Data Requests
Regulations
Industry Guidance Bulletins
How to Apply
ABOUT US
History
Staff
HELP
Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
CO 341 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 ~ direct inspec.tion of the file. V () 34,_·L£ Order File Identifier Organizing (done) o Two-sided 1111111111111111111 o Rescan Needed 1111111111111111111 R~CAN 'V} Color Items: o Greyscale Items: DIGITAL DATA OVERSIZED (Scannable) o Maps: D Other Items Scannable by a Large Scanner o Diskettes, No. D Other, No/Type: D Poor Quality Originals: OVERSIZED (Non-Scannable) D Other: o Logs of various kinds: NOTES: o Other:: BY: ~Maria-,) ¡ Date: I;')... rA 0 S /s/ ~ Wt 111111111111111111 m-r Project Proofing BY: ~Iaria ~ Date: I:ì-"' 7 / tJS" X 30 = / + Date: l~ 07 o-s-- /s/ Scanning Preparation BY: ~ = TOTAL PAGES I GO (Count does not include cover sheet) v, II n /s/ ' f~ Production Scanning Stage 1 Page Count from Scanned File: '70 (Count does include cover sheet) pa. ge Count Matches Number in Scanni,lg pr.Par~ion: V YES BY: ~a!ia ~ Date: l~ 1/ D S Stage 1 If NO in stage 1 page(s) discrepancies were found: YES 1111111111111111111 NO /s/ V\i1P NO BY: Maria Date: /s/ 11I1I111I1111111111 Scanning is complete at this point unless rescanning is required. ReScanned 1111111111111111111 BY: Maria Date: /s/ Comments about this file: Quality Checked 1111111111111111111 10/6/2005 Orders File Cover Page.doc • Index Conservation Order 341E Prudhoe Bay Unit, Put River Sandstone 1. August 19, 2005 BPXA's request to amend CO 341 D for the Prudhoe Bay Oil Pool and AIO 4C to include the Put River Sandstone 2. August 29, 2005 e-mail re: application 3. September 1, 2005 Notice of Hearing, Affidavit of Publication, bulk/e-mail mailing list 4. September 30, 2005 BPXA'a addendum to Section II "Reservoir Description and Development Planning" 5. October 6, 12005 Transcript (Confidential transcript held} 6. October 6, 2005 Sign in Sheet 7. November 3, 2005 BPXA addendum to Section V 8. September 11, 2006 BPXA request for Prudhoe Bay IPA Production Metering Changes to Accommodate EOA Facility Resumption at FS-3 Due to Shut-In Oil Transit Lines 9. September 12, 2006 BPXA request for Prudhoe Bay IPA Production Metering Changes to Accommodate EOA Facility Resumption at FS-1 and FS-2 Due to Shut-In Oil Transit Lines 10. Apri12, 2007 BPXA request to Commingle Production from the Initial Participating Area with Lisburne Participating Area (C0362A-003) 11. April 12, 2007 DNR's decision to BPXA 12. April 13, 2007 E-mail from DNR to AOGCC 13. June 13, 2007 BPXA request for extension of temporary authorization of Prudhoe Bay IPA production metering changes at FS-2 and COTP due to shut-in oil transit line 14. August 2, 2007 DNR response to BPXA request 15. October 4, 2007 BPXA's request for down-hole commingling of production from Aurora and Prudhoe Pools (Oil Tracers Report held Confidential) (C0341E-005) 16. October 4, 2007 Notice of Hearing, Affidavit of publication, a-mail Distribution list, bulk mailing 17. ------------------ E-mail's re: request Conservation Order 341E ) STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7th Avenue, Suite 100 Anchorage Alaska 99501 Re: THE APPLICATION OF BP EXPLORATION (ALASKA) INC. for an order to modify Conservation Order 341D to include a portion of the Put River Sandstone Member of the Kalubik Formation in the definition of the Prudhoe Oil Pool IT APPEARING THAT: ) Conservation Order No. 341E ) ) Prudhoe Bay Field ) Prudhoe Oil Pool ) ) ) November 8, 2005 1. By letter dated August 19, 2005, BP Exploration (Alaska), Inc. ("BPXA"), operator of the Prudhoe Bay Unit, applied for a modification of Conservation Order 341D and Area Injection Order 4C to include the Put River Sandstone Member of the Kalubik Formation within the Prudhoe Oil Pool definition and to authorize injection for enhanced recovery purposes within that interval. 2. The Alaska Oil and Gas Conservation Commission ("Commission" or "AOGCC") published notice of opportunity for public hearing in the Anchorage Daily News on September 1, 2005. 3. On September 13 and September 30, 2005, BPXA submitted addenda addressing questions by Commission staff concerning its application. 4. The Commission held a public hearing on this application on October 6, 2005 at the AOGCC office at 333 West ih Avenue, Suite 100, Anchorage, Alaska 99501. 5. The Commission received no protests to or comments on BPXA's application. FINDINGS: 1. CO 559 defines the Put River Oil Pool and sets out rules governing its development and operation within the Western, Central and Southern Lobes of the Put River Sandstone. 2. The Northern Lobe of the Put River Sandstone is in hydraulic communication with, and saturated with hydrocarbons common to, the gas cap of the Prudhoe Oil Pool in the Sag River Formation.. 3. CO 341 D defines the Prudhoe Oil Pool and sets out rules governing its development and operation within a specified area. 4. The findings and conclusions in CO 559 are incorporated by reference. Conservation Order 341 E November 8, 2005 Page 2 of2 ) CONCLUSIONS: 1. It is appropriate to include the Northern Lobe of the Put River Sandstone within the Prudhoe Oil Pool. NOW, THEREFORE, IT IS ORDERED THAT Rule 1 of CO 341D is amended to read as follows: Rule 1 Pool Definition (a) The Prudhoe Oil Pool is defined as (i) the accumulations of oil that are common to and that correlate with the accumulations found in the Atlantic Richfield - Humble Prudhoe Bay State No.1 well between the depths of 8,110 feet and 8,680 feet, and (ii) the accumulation of oil that is common to and correlates with the interval from 9,638 to 9,719 measured feet on the Borehole Compensated Sonic Log, Run 2, Dated September 28, 1975, in the Atlantic Richfield-Exxon NGI No.1 well, and that is in hydraulic communication with the gas cap of the former accumulations in the Sag River Formation. The latter accumulation is found within the following area: TIIN R14E: Sections: 1,2, 11(N/2 and SE/4), 12, 13, 14(E/2), 23(NE/4), 24, 25(N/2) TIIN R15E: Sections: 6, 7, 8, 17, 18, 19,20, 29(N/2), 30(N/2) T12N R14E: Sections 35, 36 Umiat Meridian. (b) The Commission by administrative approval may adjust the description of the affected area to conform to future changes in the initial participating areas. (Source: C. O. 145, Rule 12) orage, Alaska and dated November 8, 2005. ~(b~ Commissioner AS 31.05.080 provides that within 20 days after receipt of written notice of the entry of an order, a person affected by it may file with the Commission an application for rehearing. A request for rehearing must be J ,t~çeived by 4:30 PM on the 23rd day following the date of the order, or next working day if a holiday or ..)./:",~~. ;'\. ~_~.r~~~hd,:, ~o be timely file~. .The Commission sha.ll ~ant or refus: the appli~at.ion in whole or. in part <" ;~ .~},;~;;"'~"'-" ~tt~1l!;:tg~1~,s. The CommiSSion can refuse an apphcatIon by not actmg on it withm the 10-day penod. An " .::<.;/'\. t.; \ \ arr~c,e<;ffe{~~". has 30 days from the date the Commission refuses the application or mails (or otherwise >' '",-¿¡"," \.....t.disb:jbu~~}:.à~ .þ.rder upon rehearing, both being the final order of the Commission, to appeal the decision ;;1" ", :..':\/ tb'·.S.uperior:couh. Where a request for rehearing is denied by nonaction of the Commission, the 30-day :i.p<= <::", : . . .p'èf.iÖd;.·fÖf:åp'pea~ to Superior Court runs from the date on which the request is deemed denied (i.e., 10th .: . : ". day äfter the ;àppl~cation for rehearing was filed). .: . I ,. o i" ~ ',-._ ,: ,J :. ,:" . . :'?.. i "'1," \ .,~~. \ ,',' :' ..,,~ '{~; {\ . ~~,~.~< :.' .' . ':':;.: '<;/ ... .'~ .~rJ <-<.:'> j' "". ·ì.'· , .. . ....; '......'.1· .>;. .. )1022,3,22.4 Redoubt #1 and CO 341E Prudhoe Bay ) ) lof2 11/9/2005 11 :08 AM 11/9/2005 11 :08 AM 20f2 )1022.3,22.4 Redoubt #1 and CO 341E Prudhoe Bay ) Citgo Petroleum Corporation PO Box 3758 Tulsa, OK 74136 ') Mary Jones XTO Energy, Inc. Cartography 810 Houston Street, Ste 2000 Ft. Worth, TX 76102-6298 '\~ David McCaleb IHS Energy Group GEPS 5333 Westheimer, Ste 100 Houston, TX 77056 Mona Dickens Tesoro Refining and Marketing Co. Supply & Distribution 300 Concord Plaza Drive San Antonio, TX 78216 Robert Gravely 7681 South Kit Carson Drive Littleton, CO 80122 George Vaught, Jr. PO Box 13557 Denver, CO 80201-3557 Jerry Hodgden Hodgden Oil Company 408 18th Street Golden, CO 80401-2433 Richard Neahring NRG Associates President PO Box 1655 Colorado Springs, CO 80901 John Levorsen 200 North 3rd Street, #1202 Boise, ID 83702 Kay Munger Munger Oil Information Service, Inc PO Box 45738 Los Angeles, CA 90045-0738 Samuel Van Vactor Economic Insight Inc. 3004 SW First Ave. Portland, OR 97201 Michael Parks Marple's Business Newsletter 117 West Mercer St, Ste 200 Seattle, WA 98119-3960 Mark Wedman Halliburton 6900 Arctic Blvd. Anchorage, AK 99502 Schlumberger Drilling and Measurements 2525 Gambell Street #400 Anchorage, AK 99503 Baker Oil Tools 4730 Business Park Blvd., #44 Anchorage, AK 99503 Ciri Land Department PO Box 93330 Anchorage, AK 99503 Ivan Gillian 9649 Musket Bell Cr.#5 Anchorage, AK 99507 Jill Schneider US Geological Survey 4200 University Dr. Anchorage, AK 99508 Gordon Severson 3201 Westmar Cr. Anchorage, AK 99508-4336 Jack Hakkila PO Box 190083 Anchorage, AK 99519 Darwin Waldsmith PO Box 39309 Ninilchick, AK 99639 James Gibbs PO Box 1597 Soldotna, AK 99669 Kenai National Wildlife Refuge Refuge Manager PO Box 2139 Soldotna, AK 99669-2139 Penny Vadla 399 West Riverview Avenue Soldotna, AK 99669-7714 Richard Wagner PO Box 60868 Fairbanks, AK 99706 Cliff Burglin PO Box 70131 Fairbanks, AK 99707 Bernie Karl K&K Recycling Inc. PO Box 58055 Fairbanks, AK 99711 Williams Thomas Arctic Slope Regional Corporation Land Department PO Box 129 Barrow, AK 99723 North Slope Borough PO Box 69 Barrow, AK 99723 I O~ ~ I ~ . . STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7 Avenue, Suite 100 Anchorage, Alaska 99501 Re: AN ORDER rescinding those rules within ) Docket Number: CO -10 -21 existing Conservation Orders relating to ) Other Order No. 66 well safety valve systems. ) ) Statewide, Alaska ) January 11, 2011 IT APPEARING THAT: 1. On October 13, 2010 the Alaska Oil and Gas Conservation Commission (AOGCC or Commission) formally adopted new regulations relating to well safety valve systems, at 20 AAC 25.265. 2. The newly adopted well safety valve system regulations underwent final review by the Regulations Section of the Alaska Attorney General's Office and were forwarded to the Alaska Lieutenant Governor's Office on October 28, 2010. 3. The new regulations were signed by the Lieutenant Governor and took legal effect on December 3, 2010. 4. To ensure consistency with the new regulations, the AOGCC, on its own motion, proposed to rescind part or all of the outdated rules within existing Commission Orders relating to well safety valve systems. 5. On November 4, 2010, pursuant to 20 AAC 25.540, the Commission published in the Alaska Daily News notice of opportunity for public hearing on December 6, 2010. 6. The Commission received written comments in response to its public notice, and held a public hearing on December 7, 2010. 7. Oral testimony and written comments were provided at the December 7, 2010 hearing. FINDINGS: 1. Well safety valve systems are regulated under newly- adopted 20 AAC 25.265, which consolidates the requirements previously established in legacy documents, policies, and statewide guidelines relating to safety valve systems. 2. Thirty -four existing Commission Orders contain rules governing well safety valve systems. Twenty of those Orders contain broad regulatory requirements for safety valve systems that are now covered by the newly- adopted regulations. The remaining fourteen Orders include field- or pool - specific safety valve system requirements. Other Order 66 • • Page 2 Statewide, AK January 11, 2011 3. Within existing Commission Orders are rules unrelated to well safety valve systems; these rules will continue in effect, unmodified. 4. Existing Commission Orders containing individual rules relating to well safety valve systems are enumerated in the attached Table. CONCLUSIONS: 1. Eliminating redundant requirements and standardizing wording for those field - and pool - specific safety valve system requirements deemed appropriate to retain will improve regulatory clarity. 2. Twenty existing Commission Orders that include rules relating to well safety valve systems are rendered unnecessary, and can be replaced by newly- adopted 20 AAC 25.265. As more fully set forth in the attached Table, those Orders are Conservation Orders 98A, 207A, 300, 311B, 317B, 329A, 341E, 345, 402B, 432D, 452, 457B, 471, 477, 484A, 505B, 553, 559, 570, and a Commission unnumbered Order signed March 30, 1994 (policy dictating SVS performance testing requirements). 3. Fourteen existing Commission Orders include field- or pool - specific safety valve system requirements that the Commission considers appropriate for retention. Wording for the same safety valve system requirements existing in different Commission Orders has been standardized. As more fully set forth in the attached Table, those Orders are Conservation Orders 406B, 423, 430A, 435A, 443B, 449, 456A, 458A, 562, 563, 569, 596, 597, and 605. NOW, THEREFORE, IT IS ORDERED THAT individual rules in thirty-four existing Commission Orders that relate to well safety valve systems are hereby rescinded or revised as enumerated in the Table. Remaining rules unrelated to safety valve systems within affected Commission Orders remain in effect, unmodified. DONE at Anchorage, Alaska, and dated . - ary 11, 2011 Alp ...._.." .... lip Daniel T. Se. r o , r., Commissioner, Chair • i1 . . : , s Conservation Commission aw,�o � , 4 , t r r Coer CA ild-..-4.. 1 , a Oi , a . . a Conserva ion Commission -1,, . � : AG:, Cat yP.:oerst -r, Commissioner Alaska • it and Gas Conservation Commission Other Order 66 • • Page 3 Statewide, AK January 11, 2011 RECONSIDERATION AND APPEAL NOTICE As provided in AS 31.05.080(a), within 20 days after written notice of the entry of this order or decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for reconsideration of the matter determined by it. If the notice was mailed, then the period of time shall be 23 days. An application for reconsideration must set out the respect in which the order or decision is believed to be erroneous. The Commission shall grant or refuse the application for reconsideration in whole or in part within 10 days after it is filed. Failure to act on it within 10 -days is a denial of reconsideration. If the Commission denies reconsideration, upon denial, this order or decision and the denial of reconsideration are FINAL and may be appealed to superior court. The appeal MUST be filed within 33 days after the date on which the Commission mails, OR 30 days if the Commission otherwise distributes, the order or decision denying reconsideration, UNLESS the denial is by inaction, in which case the appeal MUST be filed within 40 days after the date on which the application for reconsideration was filed. If the Commission grants an application for reconsideration, this order or decision does not become final. Rather, the order or decision on reconsideration will be the FINAL order or decision of the Commission, and it may be appealed to superior court. That appeal MUST be filed within 33 days after the date on which the Commission mails, OR 30 days if the Commission otherwise distributes, the order or decision on reconsideration. As provided in AS 31.05.080(b), "[tlhe questions reviewed on appeal are limited to the questions presented to the Commission by the application for reconsideration." In computing a period of time above, the date of the event or default after which the designated period begins to run is not included in the period; the last day of the period is included, unless it falls on a weekend or state holiday, in which event the period runs until 5:00 p.m. on the next day that does not fall on a weekend or state holiday. • Mary Jones David McCaleb XTO Energy, Inc. IHS Energy Group George Vaught, Jr. Cartography GEPS P.O. Box 13557 810 Houston Street, Ste 200 5333 Westheimer, Suite 100 Denver, CO 80201 -3557 Ft. Worth, TX 76102 -6298 Houston, TX 77056 Jerry Hodgden Richard Neahring Mark Wedman Hodgden Oil Company NRG Associates Halliburton 408 18 Street President 6900 Arctic Blvd. Golden, CO 80401 -2433 P.O. Box 1655 Anchorage, AK 99502 Colorado Springs, CO 80901 Bernie Karl CIRI K &K Recycling Inc. Land Department 95 Oil oots 7 E P.O. Box 58055 P.O. Box 93330 795 E. 94 a. Fairbanks, AK 99711 Anchorage, AK 99503 Anchorage, AK 99515 -4295 North Slope Borough Jill Schneider Gordon Severson P.O. Box 69 US Geological Survey 3201 Westmar Circle Barrow, AK 99723 4200 University Drive Anchorage, AK 99508 -4336 Anchorage, AK 99508 Jack Hakkila Darwin Waldsmith James Gibbs P.O. Box 190083 P.O. Box 39309 P.O. Box 1597 Anchorage, AK 99519 Ninilchick, AK 99639 Soldotna, AK 99669 Kenai National Wildlife Refuge Penny Vadla Cliff Burglin Refuge Manager 399 West Riverview Avenue 319 Charles Street P.O. Box 2139 Soldotna, AK 99669 -7714 Fairbanks, AK 99701 Soldotna, AK 99669 -2139 Richard Wagner P.O. Box 60868 Fairbanks, AK 99706 \ 1 \\ ■ Orders Establishing Requirements for Well Safety Valve Systems 1/7/2011 Unit/Field Pool Conservation Rule Rescind Rule? Existing Order Requirement New Regulation Provisions Revised Rule - "Well safety valve systems" (2) Comment Order (1) Addressing Reqts from Order fail -safe auto SSV and SCSSV; injection wells (except disposal) require 25.265(a); 25.265(b); 25.265(d)( "In wells (excludin disposal injectors) must be equipped with(i) a double check valve Check valve requirements for injectors are not covered by Colville River Unit Qannik 605 5 no (i) double check valve, or (ii) single check valve and SSV; injection 25 h arrangement or (ii) a single check valve and a SSV. A subsurface - controlled injection valve or readopted regulation valve satisfies single check valve requirement; test every 6 months 25.265(h)(5) ) SCSSV satisfies the requirements of a single check valve." fail -safe auto SSV and SCSSV; injection wells (except disposal) require 25.265(a); 25.2659(b); 25.265(d)( "I wells (excluding disposal injectors) must be equipped with(i) a double check valve Check valve requirements for injectors are not covered by Oooguruk Oooguruk - Nuiqsut 597 6 no (i) double check valve, or (ii) single check valve and SSV; injection . h arrangement or (ii) a single check valve and a SSV. A subsurface - controlled injection valve or 25265 readopted regulation valve satisfies single check valve requirement; test every 6 months ( )( 5 ) SCSSV satisfies the requirements of a single check valve" fail -safe auto SSV and SCSSV; injection wells (except disposal) require 25.265(a); 25.265(b); 25.265(d)(1); "Injection wells (excluding disposal injectors) must be equipped with(1) a double check valve Check valve requirements for injectors are not covered by Oooguruk Oooguruk - Kuparuk 596 6 no (i) double check valve, or (ii) single check valve and SSV; injection . h 5 arrangement or (ii) a single check valve and a SSV. A subsurface - controlled injection valve or 25265 readopted regulation valve satisfies single check valve requirement; test every 6 months ( )( ) SCSSV satisfies the requirements of a single check valve." fail -safe auto SSV and SCSSV; maintain list of wells w/ removed or 25.265(a); 25.265(b); 25.265(d)(2)(F); Requirement to maintain a wellhead sign and list of wells with Prudhoe Bay Unit Raven 570 5 yes N/A deactivated SVS was replaced with requirement to maintain a deactivated SVS; sign o n wellhead 25. m 9 ( ) tag on well when not manned fail -safe auto SSV and SCSSV; injection wells (except disposal) require 25.265(a); "Injection we (exc di sposa l in must be equipped with(i) a double check valve .�(a); 25 25 Check valve requirements for injectors are not covered by Colville River Unit Fiord 569 5 no (i) double check valve, or (ii) single check valve and SSV; injection . arrangement or (ii) a single check valve and a SSV. A subsurface - controlled injection valve or 25.265(h)(5) readopted regulation valve satisfies single check valve requirement; test every 6 months ( )( 5 ) SCSSV satisfies the requirements of a single check valve." fail -safe auto SSV and SCSSV; injection wells (except disposal) require wells (excluding disposal injectors) must be equipped with(i) a double check valve 25.265(a); 25.265(b); 25.265(d)( Check valve requirements for injectors are not covered by Colville River Unit Nanuq - Kuparuk 563 6 no (i) double check valve, or (ii) single check valve and SSV; injection . arrangement or (ii) a single check valve and a SSV. A subsurface - controlled injection valve or 25.265(h)(5) readopted regulation valve satisfies single check valve requirement; test every 6 months ( )( 5 ) SCSSV satisfies the requirements of a single check valve." fail -safe auto SSV and SCSSV; injection wells (except disposal) require 25.265(a); 25.265(b); 25.265(d)(2)( "I wells (excluding disposal injectors) must be equipped with(i) a double check valve Check valve requirements for injectors are not covered by Colville River Unit Nanuq 562 6 no (i) double check valve, or (ii) single check valve and SSV; injection 25.265(h)(5) arrangement or (ii) a single check valve and a SSV. A subsurface- controlled injection valve or readopted regulation valve satisfies single check valve requirement; test every 6 months SCSSV satisfies the requirements of a single check valve" fail -safe auto SSV; SSSV landing nipple below permafrost; test as 25.265(a); 25.265(b); 25.265(d); N/A Readopted 25.265(d) dictates which wells require SSSV; Prudhoe Bay Unit Put River 559 3 yes prescribed by Commission 25.265(h)(5) replaces SSSV nipple requirement for all wells Deep Creek Unit Happy Valley 553 3 yes SSV or SSSV 25.265(a) N/A fail -safe auto SSV; SSSV landing nipple below permafrost; test as 25.265(a); 25.265(b); 25.265(d); N/A Readopted 25.265(d) dictates which wells require SSSV; Prudhoe Bay Unit Orion 505B 3 yes prescribed by Commission 25.265(h)(5) replaces SSSV nipple requirement for all wells fail -safe auto SSV; SSSV landing nipple below permafrost; test as 25.265(a); 25.265(b); 25.265(d); N/A Readopted 25.265(d) dictates which wells require SSSV; Prudhoe Bay Unit Polaris 484A 3 yes prescribed by Commission 25.265(h)(5) replaces SSSV nipple requirement for all wells fail -safe auto SSV; SSSV landing nipple below permafrost; gas /MI 25.26!i ( a ) ; 25.265 ( b ) ' ( )' Readopted 25.265 25.265 d p (d) dictates which wets require SSSV; Milne Point Unit Milne Point 477 5 yes injection well require SSSV or injection va below permafrost; test N/A Schrader Bluff 25.265(h)(5) replaces SSSV nipple requirement for all wells every 6 months Prudhoe Ba Unit Borealis 471 3 yes fail -safe auto SSV; SSSV landing nipple below permafrost; gas /MI 25.265(a); 25.265(b); 25.265(d); N/A Readopted 25.265(d) dictates which wells require SSSV; Y Y injection well require SSSV below permafrost; test every 6 months 25.265(h)(5) replaces SSSV nipple requirement for all wells fail -safe auto SSV and SCSSV; test as prescribed by Commission; 500• Existing pool rule established a minimum setting depth for the Northstar Northstar 458A 4 no 25.265(a); 25.265(b); 25.265(d)(1) "The minimum setting depth for a tubing conveyed subsurface safety valve is 500 feet." SSSV ft minimum setting depth for SSSV Prudhoe Ba Unit Aurora 457B 3 yes fail -safe auto SSV; SSSV landing nipple below permafrost; test every 6 25.265(a); 25.265(b); 25.265(d); Readopted 25.265(d) dictates which wells require SSSV; Y months 25.265(h)(5) N/A replaces SSSV nipple requirement for all wells fail -safe auto SSV; gas /MI injectors require SSV and single check 25.265(a); 25.265(b); 25.265(d); "Injection wells (excluding disposal injectors) must be equipped with(i) a double check valve Check valve requirements for injectors are not covered by Kuparuk River Unit Meltwater 456A 5 no valve and SSSV landing nipple; water injection wells require (1) double arrangement or (ii) a single check valve and a SSV. A subsurface-controlled injection valve or readopted regulation; readopted 25.265(d)(5) does not include check valve, or (ii) single check valve and SSV; test every 6 months 25.265(h)(5) SCSSV satisfies the requirements of a single check valve." SSSV requirement for MI injectors fail -safe auto SSV (all injectors and producers capable of unassisted 25.265(a); 25.265(b); 25.265(d); N/A Readopted 25.265(d) dictates which wells require SSSV; Prudhoe Bay Unit Midnight Sun 452 6 yes flow to surface); test every 6 months 25.265(h)(5) replaces SSSV nipple requirement for all wells fail -safe auto SSV and SCSSV; SSSV may be installed above or below "The setting depth of a required subsurface safety valve must be located in the tubing either Existing pool rule established alternate SSSV setting depth; 25.265(a); 25.265(b); 25.265(d)(1); Duck Island Unit Eider 449 7 no permafrost; injection wells require double check valve; LPS trip above or below permafrost. Injection wells must be equipped with a double check valve check valve requirements for injectors are not covered by pressure; test every 6 months 25 arrangement." readopted regulation fail -safe auto SSV and SCSSV (producers and gas injectors); water "Injection wells (excluding disposal injectors) must be equipped with(i) a double check valve eq arrangement Check valve requirements for injectors are not covered by Colville River Unit Alpine 443B 5 no injection wets require (i) ( double check valve, or (ii) single check valve 25.265(a); a ) ; 25.265 ( b ) ; 25.265 ( d )( 2 )( H ) arran ement or ii (._) a single check valve and a SSV. A subsurface- controlled injection valve or readopted regulation and SSV SCSSV satisfies the requirements of a single check valve." fail -safe auto SSV; gas /MI injectors require SSV and single check 25.265(a); 25.265(b); 25.265(d); "Injection wells (excluding disposal injectors) must be equipped with(i) a double check valve Check valve requirements for injectors are not covered by Kuparuk River Unit Tabasco 435A 6 no valve and SSSV landing nipple; water injection wells require CO double arrangement or (ii) a single check valve and a SSV. A subsurface-controlled injection valve or readopted regulation; readopted 25.265(d)(5) does not include check valve, or (ii) single check valve and SSV; test every 6 months 25 SCSSV satisfies the requirements of a single check valve." SSSV requirement for MI injectors fail -safe auto SSV (S /D well and artificial lift); sign on well if SVS Requirement to maintain a wellhead sign and list of wells with deactivated; maintain list of wells w /deactivated SVS; test as . b 25.265(h)(5); deactivated SVS was replaced with requirement to maintain a 25.265(a); 25265 Kuparuk River Unit; ( )' to on well when not manned; administrative 432D.009 well the LPS when surface Milne Point Unit may be defeated on W. Sak injectors w /surface pressure <500psi w/ notice when defeated and placed back in service injection pressure for West Sak water injector is <500psi) Page 1 of 2 Orders Establishing Requirements for Well Safety Valve Systems 1/7/2011 Unit/Field Pool Conservation Rule Rescind Rule? Existing Order Requirement New Regulation Provisions Order (1) Addressing Reqts from Order Revised Rule - "Well safety valve systems" (2) Comment fail -safe auto SSV; gas /MI injectors require SSV and single check "I wells (excluding disposal injectors) must b e quipped with(i) a Q injectors by 25.265(a); 25.265(b); 25.265(d); M ) double check valve Check valve gu requirements readopted for i njectors are not covered b Kuparuk River Unit Tarn 430A 6 no valve and SSSV landing nipple; water injection wells require {i) double arrangement or (ii) a single check valve and a SSV. A subsurface- controlled injection valve or readopted regulation; readopted 25.265(d)(5) does not include check valve, or (ii) single check valve and SSV; test every 6 months 25 Y SCSSV satisfies the requirements of a single check valve." SSSV requirement for MI injectors Milne Point - Sag fail -safe auto SSV; injection wells require double check valve; test Milne Point Unit 423 7 no 25.265(a); I Q 25.265 b Check valve requirements for injectors are not covered by River every 6 months ( ); 25.265(h)(5) "Injection wells must be equipped with a double check valve arrangement." readopted regulation fail -safe auto SSV; gas /MI injectors require SSV and single check valve and SSSV landing nipple; water injection wells require (i) double "Injection wells (excluding disposal injectors) must be equipped with(i) a double check valve Check valve requirements for injectors are not covered by Kuparuk River Unit Kuparuk - West Sak 406B 6 no check valve, or (ii) single check valve and SSV; test every 6 months; 25.265(x); 25.265(b }; 25.265(d); arra or (ii) a single check valve and a SSV. Asubsurface- controlled injection valve or readopted regulation; readopted 25.265(d)(5) does not include CO 4068.001 modifies Rule 6(e) - LPP may be defeated on W. Sak 25.265(h)(5) SCSSV satisfies the requirements of a single check valve. The Low Pressure Pilot may be SSSV requirement for MI injectors; administrative approval CO injectors w /surface pressure <500psi w/ notice when defeated and defeated on West Sak water injectors with surface injection pressure less than 500psi." 4068.001 remains effective [re:defeating the LPS when surface placed back in service injection pressure for West Sak water injector is <500psi] fail -safe auto SSV and SCSSV; LPS trip pressure; readily accessible Badami Badami 402B 6 yes control unit; SSSV below permafrost; NTE 210days between tests; 25.265(a); 25.265(b); 25.265(h); N/A submit test results electronically within 14days; SVS defeated /removed 25.265(m) only if well SI or pad continuously manned fail -safe auto SSV (S /D well and artificial lift); sign on well if SVS 25.265(a); 25.265(b); 25.265(h)(5); Requirement to maintain a wellhead sign and list of wells with Prudhoe Bay Unit North Prudhoe 345 4 yes deactivated; maintain list of wells w /deactivated SVS; test as N/A 25.265(m) deactivated SVS was replaced with requirement to maintain a prescribed by Commission tag on well when not manned fail -safe auto SSV (S /D well and artificial lift); if SSSV installed it must Prudhoe Bay Unit Prudhoe 341E 5 yes be maintained and tested as part of SVS; sign on well if SVS 25.265(a); 25.265(b); 25.265(d); N/A Readopted 25.265(d) dictates which wells require SSSV; deactivated; maintain list of wells w /deactivated SVS; test as 25.265(h)(5) replaces SSSV nipple requirement for al( wells prescribed by Commission Prudhoe Bay Unit Niakuk 329A 5 yes fail -safe auto SSV and SCSSV; maintain list of wells w/ removed or 25.265(a); 25.265(b); 25.265(d); N/A Readopted 25.265(d) dictates which wells require SSSV; deactivated SVS; sign on wellhead 25.265(h)(5); 25.265(m) replaces SSSV nipple requirement for all wells Prudhoe Bay Unit Pt. McIntyre 317B 8 yes fail -safe auto SSV and SCSSV; SSSV may be rermoved as part of 25.265(a); 25.265(b): 25.265(d); N/A Readopted 25.265(d) dictates which wells require SSSV; routine well ops w/o notice 25.265(j); 25.265(m) replaces SSSV nipple requirement for all wells Prudhoe Bay Unit West Beach 311 B 6 yes fail -safe auto SSV; sign on well if SVS deactivated; maintain list of wells 25.265(a); 25.265(b); 25.265(d); N/A Readopted 25.265(d) dictates which wells require SSSV; w /deactivated SVS; test as prescribed by Commission 25.265(h)(5); 25.265(m) replaces SSSV nipple requirement for all wells West Fork West Fork (Sterling A &B) 300 5 yes fail -safe auto SVS on each production tubing 25.265(a); 25.265(b) N/A Prudhoe Bay Unit Lisburne 207A 7 yes fail -safe auto SSV; sign on welt if SVS deactivated; maintain list of wells 25.265(a); 25.265(b); 25.265(h)(5); Requirement to maintain a wellhead sign and list of wells with w /deactivated SVS; test as prescribed by Commission 25.265(m) N/A deactivated SVS was replaced with requirement to maintain a tag on well when not manned Prudhoe Bay Unit Prudhoe Kuparuk 98A 5 yes suitable automatic safety valve installed below base of permafrost t Readopted 25.265(d) require prevent uncontrolled flow 25.265(d) N/A pted 25.265 d dictates which wells re uire SSSV; replaces SSSV nipple requirement for all wells Statewide N/A NIA N/A yes Commission policy dictating SVS performance testing AOGCC Policy - SVS Failures; issued by order of the y requirements 25.265(h); 25.265(n); 25.265(o) N/A Commission 3/30/1994 (signed by Commission Chairman Dave Johnson) Footnotes (1) No SVS rules found in Injection Orders (2) New title for Revised Rule; "N /A" means entire pool rule to be rescinded Page 2 of 2 • S Public Hearing Record And Backup Information available in Other 66 e ~1r~1rŒ (ID~ ~~~~[K{~ e AlASKA OIL AND GAS CONSERVATION COMMISSION FRANK H. MURKOWSKI, GOVERNOR 333 W. 7'" AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 ADMINISTRATIVE APPROVAL CO 341E.Ol ADMINISTRATIVE APPROVAL CO 559.02 ADMINISTRATIVE APPROVAL CO 362A.02 Ms. Nancy C. Foust Projects and Engineering Manager BP Exploration (Alaska) Inc. P. O. Box 196612 Anchorage, AK 99519-6612 Re: BPXA's request for production metering changes to accommodate production resumption at FS-3 and temporary amendment to production allocation procedures for the Prudhoe, Put River, Lisburne, Point McIntyre, Niakuk, Raven, West Beach, North Prudhoe Bay Oil Pools. Dear Ms. Foust: On September 11, 2006, BP Exploration (Alaska) Inc. (BPXA) as operator of the Prudhoe Bay Unit, requested authorization from the Alaska Oil and Gas Conservation Commission (Commission) and the Department of Natural Resources, Division of Oil and Gas, to alter the metering configuration utilized in the Prudhoe Bay Initial Participating area (IP A) and the Greater Point McIntyre Area (GPMA) in order to restore production from the Eastern Operating Area (EOA) of the Prudhoe Bay field. The proposed metering changes affect the location of the Lease Automatic Custody Transfer (LACT) meters for the production from the Prudhoe and Put River oil produced at Flow Station 3 (FS-3) and require changes to the individual FS-3 and Lisburne Production Center (LPC) facility volume allocation procedures. The Commission grants temporary approval of BP Exploration (Alaska) Inc. (BPXA) request to alter the metering configuration and facility allocation methodology used to determine production from the Prudhoe and Put River Oil Pools processed at Flow Station 3 and from pools processed within the Lisburne Processing Center ("LPC"). These changes are being sought due to the shutdown of the Eastern Operating Area Oil Transit Line which is undergoing repair and replacement. A new FS-3 bypass will re- route oil production from a point downstream of the FS-3 shipping pumps and meters to CO 341£.01, CO 559.02, CAA.02 September 15,2006 Page 2 of2 tit the Lisburne Sales Oil Pipeline at a point downstream of the LPC shipping pumps and upstream of the Lisburne LACT meter at Pump Station 1. The metering changes require changes to individual FS-3 and LPC facility volume allocation procedures, but do not affect current well testing or well allocation procedures. The proposed facility allocation process for FS-3 and LPC is consistent with current methodology approved by the Commission for all pools within the Prudhoe Bay Field. In accordance with 20 AAC 25.230 production from the Prudhoe and Put River Oil Pools processed within Prudhoe Flow Station 3 may be commingled with production from Lisburne, Point McIntyre, Niakuk, Raven, West Beach, and North Prudhoe Bay Oil Pools processed within the LPC prior to custody transfer. Production shall be allocated in accordance with the procedures described in BPXA's application dated September 11, 2006. All other well testing and reporting requirements for the Prudhoe Bay Field shall be in accordance with applicable Commission regulations and orders and are not affected by this order. This order expires on October 1,2007. As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. A person may not appeal a Commission decision to Superior Court unless rehearing has been requested. DONE at Anchorage, Alaska and dated September 18, 2006. The Alaska Oil and Gas Conservation Commission ~ Daniel T. Seamount, Jr. Commissioner Various Administrative Orders e e Subject: Various Administrative Orders From: Jody Colombie <jody _ colombie@admin.state.ak.us> Date: Tue, 19 Sep 2006 14:27:54 -0800 To: undiscl()Se~;re9ipients:; BCC:CynthiaB Mciver <bren_mciver@a.dmiIl.state.âl<.u~>, Robert E Mintz <robert _ mintz@law.state.ak.us>, Christine Hansen <c.hansen@iogcc.st~te.ok. us>, Tenje Hubble <hubblet1@bp;com>, Sondra Stewman <StewmaSD@BP.com>, stanekj <stanekj@unocaLcom>, ecolaw <ecolaw@truste~s.?r~>, tfIIljrl . <trmjr l@aoLcom>, jdarlington <jdarli~~on@forestoiLcom>,nelson <knelson@petroleumnews.com>, cþ()ddy«cþ()d~y@usibelli.com>, Mark Dalton <mark.dalton@hdrinc.com>, Shannon Donnelly <shan1lon.donnelly@conocophillips.Com>, "Mark P. W orcester"<1l1ark. p.\V()rceste¡-(@con()cophillips.com>, Bob <bob@inl~~~eeper .org>, wdv <wdv@dnr.state.ak.us>, tjr <tjr@dnr.state;ak.us>, bbritch <bbritch@alaska.net>rmjnelson <mjnelson@purvingertz.com>, Charles O'Donnell <charles.o'donnell@veco.com>,"Randy L. Skillern" <SkilleRL@BP.com>, "Deborah J. Jones"<JonesD6@BP.com>, "Steven R. Rossberg" <RossbeRS@BP.com>, Lois <lois@inletkeeper.org>,Dan Bross <kuacnews@k.ua.c.org>,Gordon Pospisil <PospisG@BP .com>, "Francis S.Sommer" <SommerFS@BP.com>,MikelSchultz <MikeLSchultz@BP.com>, "Nick W. Glover" <GloverNW@BP.com>, "Daryl J. Kleppin" <KleppiDE@I3P,com::>, "JanetD. Platt" <PlattJD@BP.com>, "Rosan1l~M. Jacobsen" <JacobsRM@BP.c01l1>' ddonkel <ddonkel@cfl.rr.com:>,mckay <mckay@gci.net::>fIlarbarå FFullmer <barbara.f.full~~r(@qonoc()phillip§.com>, Charles Barker <barker@~~Fs.gov>, doug___schultze <doug_ schultze@xt()~nergy.com>, Hank Alford <hånk.alford@exxonmobiLcom>,Mark Kovac <yesnd 1 @gci.net>,gSpfoff<gspfoff@aurorapower.com::>,(}regg Nad~<gregg.Ilady@shell.com>, Fred Steece <fred.steece@state.sd.us>, rcrotty <rcrotty@ch2m'f?1TI>' j ej ones· <jejo~es@aurorap?wer.com>, dapa <dapa@alaska.net>, jroderick <jroderick@gci.net>,~YlU1qy <eyancy@sea¡"tit~.net>,.."James. JvI:. Ruud" <james.m,ruud@con()cophillips.com>, BritLively <mapalaska@ak.net>,ja.h <ja.h@dnr.state.ak.us>, buonoje <buonoje@bp.com>, Mark.I-fanley <mark__hlU1ley@anadark'o.com>, loren_Ieman <l()ren Jeman@gov.state..ak.us>, Julie Houle <jÙlie_hoyIF@dnr.state.ak.tls>, John W Katz <jwkatz@sso.org>, tablerk <tablerk@unocaLcoIl1:>' Brady <brady@a()ga.org>, Brian Havelock <beh@dnr.state.ak.us::>, bpopp <bpopp@boro1.lgh.kenai.ak.us>, Jim White <j imwhite@satx.rr.com>, " John S. I-Ia\V0rth" <j()hn.s.haworth@exxonmqbiLcomS-'1l1arty <mait)r@rkindustriaLfom>, ghammons <ghammons@aoLcom>, rmcl~an <rmclean@pobox.alaska.net>, rri.krri.7200 <mkm7200@aoLcom>, Brian Gillespie <itbmg@uaa.alaska.edu>,DavidL Boelens <dboelens@aurorapower.com>,Todd Durkee <TDURKEE@KMG.com>, Gary Schultz <ga1'Y_schultz@dnr.state.ak.us>, Wayne Rancier <RANCIER@petro-cana.da.ca>, Brandon Gagnon <bgag~on@brenalaw.com>, Paul ",inslow <pmwinslow@forestoiLcom>, Sharmaine Copeland<copelasv@bp.com>, KristinDir~s <kristin_dirks@dnr.state.ak.us>, Kaynell Zeman <kjzYlIlan@marathoJiloiLcom>, J0brlTower <JoOO.Tower@eia.doe.gov>, Bill Fø\Vler<Bill_Fowler@a.nadarko.COM>, Scott Cra.nswick <scott.cranswick@mms.gov>, Brad McKim <mckimbs@BP.com>, Steve Lambe <larn.bes@unoçäLcorn:>,jack newell-<jack.newell@acsalaska.net>, James Scherr <james.scherr@mms.gov>, nl617 @conocophillips.cøm,Tim Lawlor~Tim _ Lawlor@ak.blm.gov>, Lynnda Ka.hn·<Lynnda_Ka.hn@fws.gov>, Jerry Dethlefs<:Jerry.C.Dethlefs@conocophillips.com>, crockett@aoga.org, Tamera.Sheffield <sheffie1d@aoga.org>, Jon Goltz <Jon. Goltz@¢oIlocopl1illips.com>, RogerBeltn~<roger. belman@conocophillips.com>,Niindy Lewis <mlewis@brenalaw.com>, Kari Moriarty <moriarty@aoga.org>, Patty Alfaro<palfaro@yåhoo.com>, Jeff <smetankaj@unoca1.com>, ToddKratz<ToddKratz@chevron.co1l1>' Gary ROFFrs <gary_rogers@revenue.state.ak.us>,Arthur Copoulos<Â.rthur _ Copoulos@dnr.stat~.ak.us>, Ken <ken@secorp-inc.com>, Steve Lambert <salatnbert@unocal.com>, Joe Nicks <news@radiokenai.com>, Jerry McCutcheon <susitna.hydronow@yåhoo.com>, Bill Walker <bill-wwa@ak.net>,Iris Matthews lof2 9/19/20062:28 PM Various Administrative Orders e e <Iris _ Matthews@le~is.state.ak. us>, Paul Decker <pautßecker@dnr.state.ak. us>,Rùb Dragnich <rob.g.dragnich@exxonm()biLcom>, Aleutians East Bor?ugh <a.dmiIl(@aleutianseastorg>, Marquerite kremer <marguerite _ kremer@dnr.state.ak.us>,AJiciaI<'.?nsor <alicia -:~onsor@dnr.state'ak'us>, Mike Mason <mike@kbbi,org>,Qarland Robinson <gbrobinson@marathop?iLcom>,·Cammy Tayl()r <Camille_Taylor@law.sta.te.ak.us>, Winton G Aubert<winton_aube~@admin.state'ak'us>, Thomas E Maunder <tom_maUl1der@admin.state.ak.us>, Stephen F Davies <stFye_davies@adtnin.state.ak.us>, KeithWiles~k'Ni1es@marath()noil.com>, .De~aGam?le<dgamble@k'akivik.c?1l1>' Jam~s BRegg <jimJegg@admin.state.ak. us>, Catherine PFo~rster<~athy_foerster@admin.state.a.~.us>, Bob <Bob@fairweather.com>, gregory micallef <micallef@clearwire.net>, Laura Sillip~~t <laura _ silliph~pt@dl1f.~tate.ak.us>,David Steingreaber <david.e.steinFreaber@exxonmobil.com>, akpratts@ac~alaska.net, Robert Campbell <R()bert.Campbell@reuters;com>, Steve Moo~ha.rt <steve_mootha.rl@dnr .state.ak';us>~.Anna. Raff?anua.rClff@dowjones.com>, ÇliffPosey <cliff@posey.org>, Paul Bloom <paul_ bloom@ml.com>,Sonja Franklin <sfranklin6@blomberg.nep, Meghan Powell <Meghan.Powell@asrcenergy.com> i .. ...i·Contcllt"Type: appliêatioIl/pdf ¡C0341E.02 and CO 559.03.pdf¡.C· .. ........................... d· b64 . i ontent-Enco mg: ase CO 559.02 and. CO base64 20f2 9/19/2006 2:28 PM Mary Jones XTO Energy, Inc. Cartography 810 Houston Street, Ste 2000 Ft. Worth, TX 76102-6298 George Vaught, Jr. PO Box 13557 Denver, CO 80201-3557 John Levorsen 200 North 3rd Street, #1202 Boise, 10 83702 Mark Wedman Halliburton 6900 Arctic Blvd. Anchorage, AK 99502 Ciri Land Department PO Box 93330 Anchorage, AK 99503 Gordon Severson 3201 Westmar Cr. Anchorage, AK 99508-4336 James Gibbs PO Box 1597 Soldotna, AK 99669 Richard Wagner PO Box 60868 Fairbanks, AK 99706 North Slope Borough PO Box 69 Barrow, AK 99723 e David McCaleb IHS Energy Group GEPS 5333 Westheimer, Ste 100 Houston, TX 77056 Jerry Hodgden Hodgden Oil Company 408 18th Street Golden, CO 80401-2433 Kay Munger Munger Oil Information Service, Inc PO Box 45738 Los Angeles, CA 90045-0738 Schlumberger Drilling and Measurements 2525 Gambell Street #400 Anchorage, AK 99503 Ivan Gillian 9649 Musket Bell Cr.#5 Anchorage, AK 99507 Jack Hakkila PO Box 190083 Anchorage, AK 99519 Kenai National Wildlife Refuge Refuge Manager PO Box 2139 Soldotna, AK 99669-2139 Cliff Burglin PO Box 70131 Fairbanks, AK 99707 Williams Thomas Arctic Slope Regional Corporation Land Department PO Box 129 Barrow, AK 99723 e Mona Dickens Tesoro Refining and Marketing Co. Supply & Distribution 300 Concord Plaza Drive San Antonio, TX 78216 Richard Neahring NRG Associates President PO Box 1655 Colorado Springs, CO 80901 Michael Parks Marple's Business Newsletter 117 West Mercer St, Ste 200 Seattle, WA 98119-3960 Baker Oil Tools 4730 Business Park Blvd., #44 Anchorage, AK 99503 Jill Schneider US Geological Survey 4200 University Dr. Anchorage, AK 99508 Darwin Waldsmith PO Box 39309 Ninilchick, AK 99639 Penny Vadla 399 West Riverview Avenue Soldotna, AK 99669-7714 Bernie Karl K&K Recycling Inc. PO Box 58055 Fairbanks, AK 99711 e ~1r~1rŒ (ID~ ~~~~[K{~ e AI,ASKA OIL AND GAS CONSERVATION COMMISSION 333 W. 7'" AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 ADMINISTRATIVE APPROVAL CO 341E.02 ADMINISTRATIVE APPROVAL CO 559.03 FRANK H. MURKOWSKI, GOVERNOR Ms. Nancy C. Foust Projects and Engineering Manager BP Exploration (Alaska) Inc. P. O. Box 196612 Anchorage, AK 99519-6612 Re: BPXA's request for approval of custody transfer metering and facilities allocation changes to accommodate production resumption at Prudhoe FS-l and FS-2 Dear Ms. Foust: By letter received on September 12, 2006, BP Exploration (Alaska) Inc. (BPXA) as operator of the Prudhoe Bay Unit, requested authorization from the Alaska Oil and Gas Conservation Commission (Commission) and the Department of Natural Resources, Division of Oil and Gas, to alter the metering configuration utilized in the Prudhoe Bay Initial Participating Area (IP A) in order to restore production from the Eastern Operating Area (EOA) of the Prudhoe Bay field. The proposed metering changes affect the location of the Lease Automatic Custody Transfer (LACT) meters for the production from the Prudhoe and Put River Oil Pools produced at Flow Station 1 (FS-l) and Flow Station 2 (FS-2) and require changes to the individual FS-l and FS-2 facility volume allocation procedures but do not affect current well testing or well allocation procedures. BPXA plans to install tie-ins from FS-l and FS-2 to the Endicott Pipeline, a regulated common carrier sales oil pipeline. BPXA in a separate application requested approval for tie-in of the Crude Oil Topping Plant (COTP) to the Endicott Pipeline. These changes are being sought due to the shutdown of the EOA Oil Transit Line which is undergoing repair and replacement. The proposed metering changes do not result in any methodological difference to the manner by which production allocation is currently handled within the Prudhoe Bay Field. Prior to shutdown of the EOA Oil Transit Line, all liquid production leaving the Prudhoe Bay facilities was measured at the single Pump Station No.1 (PS-l) LACT meter (plus crude oil volumes withdrawn at the COTP). This measurement represented the known daily total liquid volume - and all crude oil facility meter readings upstream from this point were proportionally normalized so that they summed to this known amount (after accounting for NGL volumes in the blended PS-l stream). CO 341£.02, CO 559.03 September 19,2006 Page 2 of2 e e Endicott and Badami Field production is measured for custody transfer at LACT meters located on those properties. No change will be associated with the determination of those volumes. A LACT meter at PS-l also measures the combined Endicott and Badami flow streams at the outlet of the Endicott Pipeline. The combined FS-l and FS-2 production, when flowing into the Endicott Pipeline, is calculated through difference between the accurately measured outlet flows at the Endicott and Badami fields and the outlet meter of the Endicott Pipeline (after subtracting the crude oil volumes withdrawn at the COTP). As there is excess capacity within the Endicott Pipeline, there will be no backout of production from any of the fields. This requested variance in metering for custody transfer should result in equal accuracy in measuring hydrocarbons severed from the Prudhoe Bay Unit. In accordance with 20 AAC 25.2280) and 20 AAC 25.230 the Commission approves BPXA's request for custody transfer metering and facilities allocation changes, as described in BPXA's September 12, 2006 application, to accommodate production resumption at Prudhoe FS-l and FS-2. All other well testing, allocation, and reporting requirements for the Prudhoe Bay Field shall be in accordance with applicable Commission regulations and orders and are not affected by this order. This order expires on October 1,2007. As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. A person may not appeal a Commission decision to Superior Court unless rehearing has been requested. DONE at Anchorage, Alaska and dated September 19, 2006. The Alaska Oil and Gas Conservation Commission Daniel T. Seamount, Jr. Commissioner Various Administrative Orders e e Subject: Various Administrative Orders From: Jody Colombie <jody_colombie@admin.state.ak.us> Date: Tue, 19 Sep 2006 14:27:54 -0800 To: undisclosed-recipients:; BCC:. Cynthi~BMci~er <bren_mcivçr(@~?ltJ.ig.state.ak.us>, RO?Frt E Mintz <ro bert_ min~~@law .st~te.ak.u~~, Christine Hansen ~~.lf( J}sen@iogcc.st~~F'ok. us>, Te~e Hubble <hubbletl@bp.com>, Sondra~tewruan<StewmaSD@J3J? . com> ,.stanekj~~tanekj @uno~aLcom>, ecola.w <ecolaw@trustees.org>, trmjrl..<tf1l1jrl@~().h?grp;h' jdarlington fJdarlington@forestoil.c()m>;,m~lson <knelson@pet1"p ews.çom>, cboddy«çb()~dY@"4s~þelli.com>,rv¡:.k Dalton <mark.da.lton@ ..... .com~,Shall110n Donnell)'~~~miIlôIl¡ct()nnelly ... ... ......... coplfil!ig~..co~?";"Mark P. Worcester" <mar~..p.worcester@conocophillips;com>, ª()~~??b@inl~tkeeper·.?rgh'. wdy <wdv@dnr.state.ak.us>,·tjr <tjr@dnr.state.a.k.us>,þbritch <bbritch@~laska.net>, mj~~~soñ <mjnelson@purvingertz;com>, Charles O'DonneH<charles.o'donnel~@vçco.com>, "RlU1dy L. Skillern" <SkilleRL@BP . com> , "Deborah). Jones" ·<JonesD6@Bp.com,>,"StevenR.Rossberg" <RossbeRS@BP.com>, Lois <lois@inlêtkeeper.org>, Dan Bros§+<kuacnews@kuac.org>, Gordon Pospisil <PospisG@BP.com>, "'Francis~. Sommer"·<Somm~rI'1~@BP.com>, Mikel Schultz <Mikel.Schultz@BP.com>, "NickW~ÇIJlover" <GloverNW@ª"R.com>, "paryl J. Kleppin" <KleppiDE@BP.com>, "Janet D.··Platt'1<PlattJD@BP .com>,'!~()sanne· rv¡:.Jacobsen" <JacobsRM@BP.com>, ddonker<ddql1k~~(@çt1.rr.com>, mcka)f~1TIckay@gci.ne~~Barbatta FFullmer <barbara.f.fullmer@conP90phillips.com>,Charles Barker <barker@usgs.gov>, dougSsyhultze <doug_ schultze@xtoenergy.com>, Hanki\.lford<hånk.alford@~xxonmobil.c()1l1:>,.Mark~ov(\c <yesno l@gci.net>, gspfoff <gspfoff@aurorapP\Ver.com>, GreggNady<gregg.nady@shell.com>,Fred Steece <fred.steece@state.sd.us>, rcrotty <rcrotty@cb2m.com>, jejones <jejones@~~orapower.com>, dapa <dapa@alaska.net>, jroderick >jro?erick@gci.net>, eyancy <eyancy@seal-tite.net¿., "James M. Ruud" <james.m.ruud@conocophillips.com>;Brit Liyely <mapalaska@ak.net>, ja.h <ja.h@dnr.s~ate.ak. us:>,.buonojê <bupnoje@bp:com>, Ma.rk·· Hanley <mcj-k_hanley@anadarko.com>, loren_Iem( J}<:;lo~en__I~1l1an@gov .state.ak'l.ls~,~~lie . Houle <julie:_þoule@dnr .stal~.ak. us?",J0lu1 W Katz <jwkatz@sso.org>, tablerk <t~?lerk@unocaLcom>,J3r~~y<brady@a9~a.org>, B~~J-Ia.. ... ck <beh@dnr.stat~.ak.us>ibpopp <bpopp@boroug~.kenai.ak.1Js>, Jim Wl1ite <jimwhite@sat .IT.com>, "John S. Haworth" <john.s.haworth@exxonm()þjl.pom>, 1l1arty <martY@rkind"4s~riaLcoIl1h' ghammons <ghammons@aol.corp;>, rmclean <rmclean@pobox.alask(\.IleÞ, rri.krri.7fOO <rri.krri.72~9@aol.c()m::>, Brian Gillespie <itbmg@uaa.alaska.edu>,.DavidLBoelens <dboelens@aUl"orapower.çom>, Todd Durkee <TDURKEE@KMG.com>, Gary Schultz1ga.ry _ schult~@dnr.stat~.ak.us>, Wayne Rancier <RANCIER@petro-canada.ca>, Brandon Gagnon<bgagnon@breIlalaw.com>, Paul Winslow <pmwinslow@forest()iLcom>, Sharmaine Copeland <cog~lasv@bp.com>, Kristin Dirks <kristin_dirks@dnr.state.ak.us>, Kaynell Zeman <kjzeman@marathonoiLcorn,>, John Tower <John.Tower@eia.doe.gov>, Bill Fowler <Bill_Fowler@anadark'p;COM>,Scott Cranswick <scott.cranswick@rluus.gov>, Brad McKim <mckimbs@BP.com>, Stev~La.mbe <lambes@unocal.com>, j acknewell <j ack.newell@acsal(\ska.ñet>,James Scherr <james.scherr@mrns.gov>, n 1617@conocophillips.com, Tim Lawlor <Tim_Lawlor@ak.blm.gov>, Lynnda Kahn <Lynnda_Kahn@fWs.gov>, Jerry Dethlefs <Jerry.C.Dethlefs@conocophillips.com>, crockett@aoga.org, Tamera Sheffield <sheffield@aoga.org>, Jon Goltz <J on.Goltz@conocophillips.com>, Roger Belman <roger .belman@conocophillips.com>, Mindy Lewis <mlewis@brenalaw.com>, Kari Moriarty<moriarty@aoga.org>,:patty Alfaro <palfaro@ya.hoo.com>, Jeff <smetånkaj@unocal.com>, Todd.Kratz <ToddKratz@chevroñ.com~,Gary Rogers <garyJogers@revenue.state.ak. us>,.Arthur Copoulos~,Arthur _Gppoulos@dnr.state.ak.us>, Ken <ken@secorp-iIlc.com>, Steve Lambert <sal~bert@unocal.com>, Joe Nicks <news@radiokenai.com>, Jerry McCutcheon<susitna.hydronow@ya.hoo.com>, Bill Walker <bill;..wwa@akmet>, Iris Matthews lof2 9/19/20062:28 PM Various Administrative Orders e e <Iris _Ma.tthews@legis.state.åk.us>, Paul Decker <paul.Aecket@dnr.state.àk.us>, RobDragnich <rob.g.dragnich@exxonID()biLcom>, Aleutians East Borôugh <admin@aleutianseastorg>, Marquerite kremer <marguerite_kremet@dnr.state.ak.us>,·Alicia Kdn$or <alicia__konsor@dnr.state.ak.us>, Mike Mason <mike@kbbi.org>, Garland Robinson <gbrobinson@marathonoiLcom>, Cammy Taylor <Camille_Taylor@law.state.ak.us>, Winton G Aubert <wi~t()tl_aubert@adrnin.state.ak.us>,Th()mas E Maunder <tom_1l1aunder@admin.state.ak.us>, Stephen F Davies <st~ve_davies@ªdl11in.state.ak.us>, Keith Wiles <kwiles@marathonoiLcom>, Deanna Gamble <dgarnbJe@kakivik.coltl>,James B Regg <jim_regg@adn1in.state.åk.us>, Catherine P Foerst~r <cat~y_foerster@admin.state.ak.us>, Bob <Bob@fairweather.com>,greg0lj'micallef <micallef@cl~~~~e..net>,. Laur~~illiphant <laura _ silliphant@dnr.state.ak.\lê>, Da.Šid Steingreaber <davi~.~¡~t~ingreaber@exxonrlObil.com>, akpratts@acsalaska.net, Robert CampbeIL..ç:Robert. Campb~U@reuters.coIl1>~ Steve Moothart <steve _ m?othtlrt@dnr.sta.te.ak.us>, A~a Raff <anna.raff@dQWJ()nes.com>,CliffPosey <cliff@posey.org>, Paul Bloom<pauI2bloom@ml.com>, Sonja Frånklin <sfrånklin6@blomberg.net>, Meghan Powell <Meghan.Powell@asrcenergy.com> . I Content-Type: applicationlpdf and CO 559.03.pdf Content-Encoding: base64 I Content-Type: applicationlpdf 341E.Ol, CO 559.02 and CO 362A.02.pd~1 .. .......... b64 Content"'Encoding: ase 20f2 9/19/20062:28 PM Mary Jones XTO Energy, Inc. Cartography 810 Houston Street, Ste 2000 Ft. Worth, TX 76102-6298 George Vaught, Jr. PO Box 13557 Denver, CO 80201-3557 John Levorsen 200 North 3rd Street, #1202 Boise, ID 83702 Mark Wedman Halliburton 6900 Arctic Blvd. Anchorage, AK 99502 Ciri Land Department PO Box 93330 Anchorage, AK 99503 Gordon Severson 3201 Westmar Cr. Anchorage, AK 99508-4336 James Gibbs PO Box 1597 Soldotna, AK 99669 Richard Wagner PO Box 60868 Fairbanks, AK 99706 North Slope Borough PO Box 69 Barrow, AK 99723 - David McCaleb IHS Energy Group GEPS 5333 Westheimer, Ste 100 Houston, TX 77056 Jerry Hodgden Hodgden Oil Company 408 18th Street Golden, CO 80401-2433 Kay Munger Munger Oil Information Service, Inc PO Box 45738 Los Angeles, CA 90045-0738 Schlumberger Drilling and Measurements 2525 Gambell Street #400 Anchorage, AK 99503 Ivan Gillian 9649 Musket Bell Cr.#5 Anchorage, AK 99507 Jack Hakkila PO Box 190083 Anchorage, AK 99519 Kenai National Wildlife Refuge Refuge Manager PO Box 2139 Soldotna, AK 99669-2139 Cliff Burglin PO Box 70131 Fairbanks, AK 99707 Williams Thomas Arctic Slope Regional Corporation Land Department PO Box 129 Barrow, AK 99723 e Mona Dickens Tesoro Refining and Marketing Co. Supply & Distribution 300 Concord Plaza Drive San Antonio, TX 78216 Richard Neahring NRG Associates President PO Box 1655 Colorado Springs, CO 80901 Michael Parks Marple's Business Newsletter 117 West Mercer St, Ste 200 Seattle, WA 98119-3960 Baker Oil Tools 4730 Business Park Blvd., #44 Anchorage, AK 99503 Jill Schneider US Geological Survey 4200 University Dr. Anchorage, AK 99508 Darwin Waldsmith PO Box 39309 Ninilchick, AK 99639 Penny Vadla 399 West Riverview Avenue Soldotna, AK 99669-7714 Bernie Karl K&K Recycling Inc. PO Box 58055 Fairbanks, AK 99711 . . SARAH PALIN, GOVERNOR AI~A.SIiA. OIL AND GAS CONSERVATION COMMISSION 333 W. 7th AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 ADMINISTRA TIVE APPROVAL NO. 362A.003 ADMINISTRATIVE APPROVAL NO. 341E.003 Mr. Mark C. Weggeland GPMA Resource Manager BP Exploration (Alaska) Inc. P.O. Box 196612 Anchomge, AK 99519-6612 Dear Mr. Weggeland: The Alaska Oil and Gas Conservation Commission ("Commission") authorizes BP Exploration (Alaska) Inc. ("BPXA") to commingle production from six Prudhoe Bay Unit ("PBU") Initial Participating Area ("IP A") wells on the Lisburne L2 pad with production from the Lisburne Participating Area and other Greater Pt. McIntyre Area ("GPMA") pools subject to the conditions set out below. By letter dated April 2, 2007, BPXA requested that the Commission authorize it to commingle production from six PBU IP A wells on the Lisburne L2 pad with production from the Lisburne Participating Area and other GPMA pools. The subject PBU wells are L2-03A, L2-07A, L2-08A, L2-11, L2-13A, and L2-18A (collectively the "L2 IPA wells"). Due to gas-handling constraints at Flow Station 1 ("FS 1 "), these wells are not produced continuously. Rerouting the L2 IPA well fluids, which have a relatively high gas-oil ratio, would enable the wells to maintain full-time production because the Lisburne Processing Center has unused gas-handling capacity. Production from the L2 IP A wells is piped to PBU Drill Site 18 ("DS-18") and then to FS 1 for processing. Because FS 1 lacks sufficient gas-handling capacity, fluids from the L2 IP A wells must compete for space at FS 1 with fluids fÌom lower gas-oil ratio wells. BPXA proposes to install piping that would enable production fÌom the L2 IP A wells to be commingled with production from the Lisburne Participating Area wells on the Lisburne L2 pad. The commingled well fluids would be sent to the Lisburne Processing Center, which also handles production from other GPMA pools. Production fÌom the L2 IP A wells could still be sent to FS 1, and production from each well could still be tested separately. In addition to the benefit of continuous production, GPMA production would benefit because more injection gas (i.e., from the L2 IPA well fluids) would be available to CO 362A.003 CO 341E.003 April 13,2007 Page 2 of2 . . enhance oil recovery. The amount of gas available for voidage replacement in the IP A would not be adversely affected because FSI is at its gas-handling capacity. BPXA proposes to measure production fÌom the L2 IP A wells and allocate that production to the IP A in accordance with GPMA metering and allocation procedures. Conservation Order ("CO") 362, dated September 12, 1995, established GPMA metering and allocation procedures. These procedures were modified by CO 362A on January 15, 2003. There are no ownership differences between the GPMA and IP A The Commission conditionally approves BPXA's request to commingle production from the L2 IP A wells with production from the other pools in the GPMA so long as the following terms and conditions are met: · This administrative approval does not exempt BPXA from obtaining any other approvals that may be required by other governmental agencies and does not authorize commingling of production from the L2 IP A wells with production from any pools in the GPMA until all required approvals have issued. · Production from the L2 IP A wells must be metered and allocated in accordance with the process described in BPXA's letter, dated April 2, 2007, and the GPMA metering and allocation procedures of CO 362 and CO 362A. . Oil, gas, natural gas liquids and water from the L2 IP A wells must be reported as IPA production in accordance with 20 AAC 25.230 and AS 31.05.170(8). · BPXA must notify the Commission in a timely manner before routing production back to FSl. As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. A person may not appeal a Commission decision to Superior Court unless rehearing has been requested. DONE at Anchorage, Alaska and dated April 13, 2007. ¡]JJ 17 ~ (j]?w¡ r ~ ~ .. 1_ _ canr 1'. l'oerster Commissioner .~l . ··.;J:·,"",.....:..c:,,~··;. ............. -"'-~... -.."'....,,¿"'...........- ......~" ...............- '''-.~ ............- i_..............L'--",..~-t't"....,._..~....._-............--_......I Subject: CO 362A-003, AIO!?, C034lE-003 Admin Approvals p!'oe Bay From: Jody Colombie <jody_colombie@admin.state.ak.us> Date: Fri, 13 Apr 2007 14:45:40 -0800 To: undisclosed-recipients:; BCC: Cynthia B Mciver <bren_mciver@admin.state.ak.us>, Christine Hansen <c.hansen@iogcc.state.ok.us>, Terrie Hubble <hubblet1@bp.com>, Sondra Stewman <StewmaSD@BP.com>, stanekj <stanekj@unocal.com>, trmjrl <trmjr1@aol.com>,jdarlington <jdarlington@forestoil.com>, nelson <knelson@petroleumnews.com>, , Mark Dalton <mark.dalton@hdrinc.com>, Shannon Donnelly <shannon.donnelly@conocophillips.com>, "Mark P. Worcester" <mark. p. worcester@conocophillips.com>, Bob <bob@inletkeeper.org>, wdv <wdv@dnr.state.ak.us>, tjr <tjr@dnr.state.ak.us>, bbritch <bbritch@alaska.net>, mjnelson <mjnelson@purvingertz.com>, Charles O'Donnell <charles.o'donnell@veco.com>, "Randy L. Skillern" <SkilleRL@BP.com>, "Deborah J. Jones" <JonesD6@BP.com>, "Steven R. Rossberg" <RossbeRS@BP.com>, Lois <lois@inletkeeper.org>, Dan Bross <kuacnews@kuac.org>, Gordon Pospisil <PospisG@BP.com>, "Francis S. Sommer" <SommerFS@BP.com>, Mikel Schultz <Mikel.Schultz@BP.com>, "Nick W. Glover" <GloverNW@BP.com>, "Daryl J. Kleppin" <KleppiDE@BP.com>, "Janet D. Platt" <PlattJD@BP.com>, "Rosanne M. Jacobsen" <JacobsRM@BP.com>, ddonkel <ddonkel@cfl.rr.com>, mckay <mckay@gci.net>, Barbara F Fullmer <barbara.f.fullmer@conocophillips.com>, doug_schultze <doug_ schultze@xtoenergy.com>, Hank Alford <hank.alford@exxonmobil.com>, Mark Kovac <yesno l@gci.net>, gspfoff <gspfoff@aurorapower.com>, Gregg Nady <gregg.nady@shell.com>, Fred Steece <fred.steece@state.sd.us>, rcrotty <rcrotty@ch2m.com>, jejones <jejones@aurompower.com>, dapa <dapa@alaska.net>, jroderick <jroderick@gci.net>, eyancy <eyancy@seal-tite.net>, "James M. Ruud" <james.m.ruud@conocophillips.com>, Brit Lively <bl@mapalaska.com>,jah <jah@dnr.state.ak.us>, buonoje <buonoje@bp.com>, Mark Hanley <mark_hanley@anadarko.com>, Julie Houle <julie_houle@dnr.state.ak.us>, John W Katz <jwkatz@alaskadc.org>, tablerk <tablerk@unocal.com>, Brady <brady@aoga.org>, Brian Havelock <beh@dnr.state.ak.us>, bpopp <bpopp@borough.kenai.ak.us>, Jim White <jimwhite@satx.rr.com>, "John S. Haworth" <john.s.haworth@exxonmobil.com>, marty <marty@rkindustrial.com>, ghammons <ghammons@aol.com>, rmclean <rmclean@pobox.alaska.net>, mkm7200 <mkm7200@aol.com>, Brian Gillespie <ifbmg@uaa.alaska.edu>, David L Boelens <dboelens@aurorapower.com>, Todd Durkee <TDURKEE@KMG.com>, Gary Schultz <gary_schultz@dnr.state.ak.us>, Wayne Rancier <RANCIER@petro-canada.ca>, Brandon Gagnon <bgagnon@brenalaw.com>, Paul Winslow <pmwinslow@forestoil.com>, Sharmaine Copeland <copelasv@bp.com>, Kristin Dirks <kristin_dirks@dnr.state.ak.us>, Kaynell Zeman <kjzeman@marathonoil.com>, John Tower <John.Tower@eia.doe.gov>, Bill Fowler <Bill_Fowler@anadarko.COM>, Scott Cranswick <scott.cranswick@mms.gov>, Brad McKim <mckimbs@BP.com>, James Scherr <james.scherr@mms.gov>, n1617@conocophillips.com, Tim Lawlor <Tim_Lawlor@ak.blm.gov>, Lynnda Kahn <Lynnda_Kahn@fws.gov>, Jerry Dethlefs <Jerry.C.Dethlefs@conocophillips.com>, crockett@aoga.org, Tamera Sheffield <sheffield@aoga.org>, Jon Goltz <Jon.Goltz@conocophillips.com>, Roger Belman <roger.belman@conocophillips.com>, Mindy Lewis <mlewis@brenalaw.com>, Kari Moriarty <moriarty@aoga.org>, Patty Alfaro <palfaro@yahoo.com>, Jeff <smetankaj@unocal.com>, Gary Rogers <gary Jogers@revenue.state.ak.us>, Arthur Copoulos <Arthur_Copoulos@dnr.state.ak.us>, Ken <klyons@otsintl.com>, Steve Lambert <salambert@unocal.com>, Joe Nicks <news@radiokenai.com>, Jerry McCutcheon <susitnahydronow@yahoo.com>, Bill Walker <bill-wwa@ak.net>, Paul Decker <paul_decker@dnr.state.ak.us>, Aleutians East Borough <admin@aleutianseast.org>, Marquerite kremer <marguerite_kremer@dnr.state.ak.us>, Mike Mason <mike@kbbi.org>, Garland Robinson 10f2 4/13/20072:46 PM _.............,_...... V'-l..J,<".~."""".J V~" """'-"-/..J '~.L-' vv..J '''_~'i''''i,..t-'t-'iV'''''''''i''-''JI.'''''''''''''-JI..i''''-'-4.J<.4-J <gbrObinSOD@marathODOiI.CO!, Cammy Taylor <cammy _ taylor@wAte.ak.us>, Thomas E Maunder <tom_maunder@admin.state.ak.us>, Stephen F Davies <steve_davies@admin.state.ak.us>, Keith Wiles <kwiles@marathonoil.com>, Deanna Gamble <dgamble@kakivik.com>, James B Regg <jim_regg@admin.state.ak.us>, Catherine P Foerster <cathy_foerster@admin.state.ak.us>, Bob <Bob@fairweather.com>, gregory micallef <micallef@clearwire.net>, Laura Silliphant <laura _ silliphant@dnr.state.ak.us>, David Steingreaber <david.e.steingreaber@exxonmobi1.com>, akpratts@acsalaska.net, Robert Campbell <Robert.Campbell@reuters.com>, Steve Moothart <steve _ moothart@dnr.state.ak.us>, Anna Raff <anna.raff@dowjones.com>, Cliff Posey <cliff@posey.org>, Paul Bloom <paul_bloom@ml.com>, Meghan Powell <Meghan.Powell@asrcenergy.com> , Temple Davidson <temple _ davidson@dnr.state.ak.us>, Walter Featherly <WFeatherly@PattonBoggs.com>, Tricia Waggoner <twaggoner@nrginc.com>" John Spain <jps@stateside.com>, Cody Rice <Cody _ Rice@legis.state.ak.us>, John Garing <garingJD@bp.com>, Harry Engel <engelhr@bp.com>, Jim Winegarner <jimwinegarner@brooksrangepetro.com>, Matt Rader <mattJader@dnr.state.ak.us>, carol smyth <carol.smyth@shell.com>, Arthur C Saltmarsh <art _ saltmarsh@admin.state.ak.us>, Chris Gay <cdgay@marathonoi1.com>, foms@mtaonline.net, Rudy Brueggeman <rudy.brueggemann@international.gc.ca>, Cary Carrigan <cary@kfqd.com>, Sonja Frankllin <sfTanklin6@bloomberg.net>, Mike Bill <Michael.Bill@bp.com>, Walter Quay <WQuay@chevron.com>, "Alan Birnbaum <\"\"Alan J Birnbaum \">" <alan _ birnbaum\"@law.state.ak.us> Jody Colombie <jodv colombie(a;admin.state.ak.us> Special Staff Assistant Alaska Oil and Gas Conservation Commission Department of Administration Content-Type: application/pdf C0362A-003.pdf Content-Encoding: base64 Content-Type: application/pdf AI03-017.pdf Content-Encoding: base64 034 Content-Type: application/pdf C lE-003.pdf Content-Encoding: base64 lof2 4/13/2007 2:46 PM Mary Jones XTO Energy. Inc. Cartography 810 Houston Street, Ste 2000 Ft. Worth, TX 76102-6298 George Vaught, Jr. PO Box 13557 Denver, CO 80201-3557 John Levorsen 200 North 3rd Street, #1202 Boise, ID 83702 Baker Oil Tools 4730 Business Park Blvd., #44 Anchorage, AK 99503 Ivan Gillian 9649 Musket Bell Cr.#5 Anchorage, AK 99507 Jack Hakkila PO Box 190083 Anchorage, AK 99519 Kenai National Wildlife Refuge Refuge Manager PO Box 2139 Soldotna, AK 99669-2139 Cliff Burglin PO Box 70131 Fairbanks, AK 99707 Williams Thomas Arctic Slope Regional Corporation Land Department PO Box 129 Barrow, AK 99723 . David McCaleb IHS Energy Group GEPS 5333 Westheimer, Ste 100 Houston, TX 77056 . Jerry Hodgden Hodgden Oil Company 408 18th Street Golden, CO 80401-2433 Michael Parks Marple's Business Newsletter 117 West Mercer St, Ste 200 Seattle, WA 98119-3960 Schlumberger Drilling and Measurements 2525 Gambell Street #400 Anchorage, AK 99503 Jill Schneider US Geological Survey 4200 University Dr. Anchorage, AK 99508 Darwin Waldsmith PO Box 39309 Ninilchick, AK 99639 Penny Vadla 399 West Riverview Avenue Soldotna, AK 99669-7714 Bernie Karl K&K Recycling Inc. PO Box 58055 Fairbanks, AK 99711 Mona Dickens Tesoro Refining and Marketing Co. Supply & Distribution 300 Concord Plaza Drive San Antonio, TX 78216 Richard Neahring NRG Associates President PO Box 1655 Colorado Springs, CO 80901 Mark Wedman Halliburton 6900 Arctic Blvd. Anchorage, AK 99502 Ciri Land Department PO Box 93330 Anchorage, AK 99503 Gordon Severson 3201 Westmar Cr. Anchorage, AK 99508-4336 James Gibbs PO Box 1597 Soldotna, AK 99669 Richard Wagner PO Box 60868 Fairbanks, AK 99706 North Slope Borough PO Box 69 Barrow, AK 99723 À .. ..\0 cV /' ~\l\~l\ \ ~\o ¡ . Mary Jones XTO Energy, Inc. Cartography 810 Houston Street, Ste 2000 Ft. Worth, TX 76102-6298 George Vaught, Jr. PO Box 13557 Denver, CO 80201-3557 John Levorsen 200 North 3rd Street. #1202 Boise, 10 83702 David McCaleb IHS Energy Group GEPS 5333 Westheimer. Ste 100 Houston, TX 77056 . Jerry Hodgden Hodgden Oil Company 408 18th Street Golden, CO 80401-2433 Michael Parks Marple's Business Newsletter 117 West Mercer St, Ste 200 Seattle, WA 98119-3960 Mona Dickens Tesoro Refining and Marketing Co. Supply & Distribution 300 Concord Plaza Drive San Antonio, TX 78216 Richard Neahring NRG Associates President PO Box 1655 Colorado Springs, CO 80901 Mark Wedman Halliburton 6900 Arctic Blvd. Anchorage, AK 99502 . . SARAH PALIN, GOVERNOR AI,ASIiA OIL AlQ) GAS CONSERVATION COMMISSION 333 W. 7th AVENUE. SUITE 100 ANCHORAGE. ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 ADMINISTRA TIVE APPROVAL CO 341E.04 ADMINISTRA TIVE APPROVAL CO 559.05 David A. McDowell Engineering Manager Greater Prudhoe Bay BP Exploration (Alaska) Inc. PO Box 196612 Anchorage, Alaska 99519-6612 Re: Request for Extension of Temporary Authorization of Prudhoe Bay IPA Production Metering Changes at FS-2 Due to Shut-In Oil Transit Line Dear Mr. McDowell: By letter received on June 13,2007, BP Exploration (Alaska) Inc. ("BPXA"), as Operator of the Prudhoe Bay Unit ("PBU"), requested that the Alaska Oil and Gas Conservation Commission ("Commission") extend the expiration deadline of Administrative Approvals CO 341E.02 and CO 559.03 from October 1,2007, through December 31,2008. On September 19, 2006, the Commission approved Administrative Approvals CO 341E.02 and CO 559.03, allowing BPXA to temporarily ship PBU oil production from the Eastern Operating Area ("EOA") through the Endicott pipeline system. A waiver of 20 AAC 25.228 was necessary to allow resumption of production from the EOA. In granting the waiver oil production volumes from the EOA are determined based on a by- difference allocation method. Accordingly, the waiver has allowed oil production from the EOA to continue while the EOA Oil Transit Line is repaired. The Commission grants BPXA's request to extend the expiration date of Administrative Approvals CO 341E.02 and CO 559.03 from October 1,2007, through December 31, 2008. The Commission expects the new custody transfer quality metering skid to be installed as soon as practicable, along with the other planned work at Flow Station 2. BPXA requested the extension to "alleviate" the expense of installing the new metering skid in accordance with the deadline specified in administrative approval CO 341 E.02 anrJ ro 5':;;9 03 Thp rnmmissinn i" not gr,:nntl'ng thp fPl"1uest ~r\r thi" rp""son Rather thp .... _ '-" ~. .. ..L _ -.-...........I....L.L.&...I. ..I.................Lu.&...I. ....u.i ..I. ""...._ -'1 "" Iv... ".1..1..1....:1 "'_\.4 .I...I..~ '-.1..1. 1., ..I. "" Commission is doing so based on the safety and conservation benefits that will result . . David A. McDowell August 8, 2007 Page 2 of2 because the new metering skid will be installed in conjunction with other planned work at the flow station, which will minimize the number of required shutdowns. All other terms and conditions of Administrative Approvals CO 341E.02 and CO 559.03 remain in effect. As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for reconsideration. To be timely, the application must be received by 4:30 P.M. on the 23rd day following the date of this letter, or on the next working day if the 23rd day falls on a state holiday or weekend. A person may not appeal a Commission decision to the Superior Court unless the Commission has received a timely, properly filed application for reconsideration. ncho age, Alaska, and dated August 8, 2007. 4ß.~ Commissioner . . Page 1 of 1 Colombie, Jody J (DOA) From: Colombie, Jody J (DOA) Thursday, August 09, 20077:48 AM Mciver, C (DOA); 'Alan Birnbaum <""Alan J Birnbaum "> (alan.birnbaum@alaska.gov)'; 'Aleutians East Borough'; 'Anna Raft'; 'Arthur C Saltmarsh'; 'Arthur Copoulos'; 'Barbara F Fullmer'; 'bbritch'; 'Bill Fowler'; 'Bill Walker'; 'Brad McKim'; 'Brandon Gagnon'; 'Brian Gillespie'; 'Brian Havelock'; 'Brit Lively'; 'Bruce Webb'; 'buonoje'; 'Cammy Taylor'; 'carol smyth'; 'Cary Carrigan'; 'Catherine P Foerster'; 'Charles O'Donnell'; 'Chris Gay'; 'Christian Gou-Leonhardt'; 'Christine Hansen'; 'Cliff Posey'; 'Cody Rice'; 'Dan Bross'; 'dapa'; 'Daryl J. Kleppin'; 'David L Boelens'; 'David Steingreaber'; 'ddonkel'; 'Deanna Gamble'; 'Deborah J. Jones'; 'doug_schultze'; 'Evan Harness'; 'eyancy'; 'Francis S. Sommer'; 'Fred Steece'; 'Garland Robinson'; 'Gary Laughlin'; 'Gary Rogers'; 'Gary Schultz'; 'ghammons'; 'Gordon Pospisil'; 'Gregg Nady'; 'gregory micallef; 'gspfoft'; 'Hank Alford'; 'Harry Engel'; 'jah'; 'James B Regg'; 'James M. Ruud'; 'James Scherr'; 'Janet D. Platt'; 'jdarlington'; 'jejones'; 'Jerry McCutcheon'; 'Jim White'; 'Jim Winegarner'; 'Joe Nicks'; 'John Garing'; 'John S. Haworth'; 'John Spain'; 'John Tower'; 'John W Katz'; 'Jon Goltz'; 'Julie Houle'; 'Kari Moriarty'; 'Kaynell Zeman'; 'Keith Wiles'; 'Kristin Dirks'; 'Laura Silliphant'; 'Lois'; 'Lynnda Kahn'; 'mail=akpratts@acsalaska.net'; 'mail=crockett@aoga.org'; 'mail=foms@mtaonline.net'; 'Mark Dalton'; 'Mark Hanley'; 'Mark Kovac'; 'Mark P. Worcester'; 'Marquerite kremer'; 'marty'; 'Matt Rader'; 'mckay'; 'Meghan Powell'; 'Mike Bill'; 'Mike Mason'; 'Mikel Schultz'; 'Mindy Lewis'; 'MJ Loveland'; 'mjnelson'; 'mkm7200'; 'Nick W. Glover'; 'Patty Alfaro'; 'Paul Decker'; 'Paul Winslow'; 'Randall Kanady'; 'Randy L. Skillern'; 'rcrotty'; 'rmclean'; 'Robert Campbell'; 'Roger Belman'; 'Rosanne M. Jacobsen'; 'Rudy Brueggeman'; 'Scott Cranswick'; 'Shannon Donnelly'; 'Sharmaine Copeland'; 'Sondra Stewman'; 'Sonja Frankllin'; 'stanekj'; 'Stephen F Davies'; 'Steve Lambert'; 'Steve Moothart'; 'Steven R. Rossberg'; 'tablerk'; 'Tamera Sheffield'; 'Temple Davidson'; 'Terrie Hubble'; 'Thomas E Maunder'; 'Tim Lawlor'; 'Todd Durkee'; 'Tricia Waggoner'; 'trmjr1 '; 'Walter Featherly'; 'Walter Quay'; 'Wayne Rancier' Subject: Admin Approvals CO 341 E-004 and CO 559-005 Attachments: CO 341 E-04.pdf; CO 559-05.pdf Sent: To: 8/9/2007 Mary Jones XTO Energy, Inc. Cartography 810 Houston Street, Ste 2000 Ft. Worth, TX 76102-6298 George Vaught, Jr. PO Box 13557 Denver, CO 80201-3557 John levorsen 200 North 3rd Street, #1202 Boise,ID 83702 Baker Oil Tools 4730 Business Park Blvd., #44 Anchorage, AK 99503 Ivan Gillian 9649 Musket Bell Cr.#5 Anchorage, AK 99507 Jack Hakkila PO Box 190083 Anchorage, AK 99519 Kenai National Wildlife Refuge Refuge Manager PO Box 2139 Soldotna, AK 99669-2139 Cliff Burglin PO Box 70131 Fairbanks, AK 99707 Williams Thomas Arctic Slope Regional Corporation land Department PO Box 129 Barrow, AK 99723 . . David McCaleb IHS Energy Group GEPS 5333 Westheimer, Ste 100 Houston, TX 77056 Jerry Hodgden Hodgden Oil Company 408 18th Street Golden, CO 80401-2433 Michael Parks Marple's Business Newsletter 117 West Mercer St, Ste 200 Seattle, WA 98119-3960 Schlumberger Drilling and Measurements 2525 Gambell Street #400 Anchorage, AK 99503 Jill Schneider US Geological Survey 4200 University Dr. Anchorage, AK 99508 Darwin Waldsmith PO Box 39309 Ninilchick, AK 99639 Penny Vadla 399 West Riverview Avenue Soldotna, AK 99669-7714 Bernie Karl K&K Recycling Inc. PO Box 58055 Fairbanks, AK 99711 Mona Dickens Tesoro Refining and Marketing Co. Supply & Distribution 300 Concord Plaza Drive San Antonio, TX 78216 Richard Neahring NRG Associates President PO Box 1655 Colorado Springs, CO 80901 Mark Wedman Halliburton 6900 Arctic Blvd. Anchorage, AK 99502 Ciri land Department PO Box 93330 Anchorage, AK 99503 Gordon Severson 3201 Westmar Cr. Anchorage, AK 99508-4336 James Gibbs PO Box 1597 Soldotna, AK 99669 Richard Wagner PO Box 60868 Fairbanks, AK 99706 North Slope Borough PO Box 69 Barrow, AK 99723 .~ . \e~\,1 r1\(~~\ \Ú\¡V \~( I· • • ADMINISTRATIVE APPROVAL NO. CO 457B.003 ADMINISTRATIVE APPROVAL NO. CO 341E.005 Mr. Frank Paskvan BPXA Kesource Manager, PBU West Satellites BP Exploration (Alaska) Inc. P.O. Box 196612 Anchorage, AK 99519-6612 Mr. Scott Digert BPXA Resource Manager, PBU Waterflood BP Exploration (Alaska) Inc. P.O. Box 196612 Anchorage, AK 99519-6612 RE: BPXA request to commingle production from the Aurora Oil Pool and Prudhoe Oil Pool in Well 5-26 Dear Mr. Paskvan and Mr. Digert: By letter dated October 4, 2007, BP Exploration (Alaska) Inc. ("BPXA") requested that the Alaska Oil and Gas Conservation Commission ("Commission") authorize commingled production from the Aurora Oil Pool and Prudhoe Oil Pool in Well 5-26. The Commission published a notice of opportunity for public hearing on November 15, 2007 at 9:00 am in the Anchorage Daily News. No requests for a hearing or objections to BPXA's application were received. 20 AAC 25.215(b) 20 AAC 25.215(b) states: "Commingling of production within the same wellbore from two or more pools is not permitted unless, after request, notice, and opportunity for public hearing in conformance with 20 AAC 25.540, the Commission (1) finds that waste will not occur, and that production from separate pools can be properly allocated; and (2) issues an order providing for commingling for wells completed from these pools within the field." Proposal Well 5-26 produces 200 barrels of oil per day ("BOPD") to 250 BOPD from the Prudhoe Oil Pool at an approximately 75% watercut and frequently experiences downtime because of paraffin • CO 4578.003 CO 341 E.005 November 27, 2007 Page 2 of 3 i and hydrate deposition. On November 14, 2007, BPXA submitted a sundry to workover the well to enable combined Prudhoe and Aurora Oil Pool production. To estimate the production contribution of each pool, BPXA proposes to use geochemical sampling and production log results along with regular well testing. Geochemical analyses performed by Oil Tracers L.L.C. on mixtures of oil from Well 5-26 (Prudhoe Oil Pool) and Well 5-109 (Aurora Oil Pool) showed that the Prudhoe and Aurora Oil Pool oils are sufficiently different in composition to allow for use of geochemical fingerprinting as an allocation tool. The testing of the oil mixtures showed that allocation accuracy within 94-96% certainty is possible. Geochemical analysis has been successfully used to allocate production from the Raven and Niakuk Oil Pools in Well NK-43 (C0329B.003). Benefits Compared to the current Well 5-26 Prudhoe Oil Pool production, commingling the production of the Prudhoe and Aurora Oil Pools should add approximately 490 stock-tank barrels per day and lower gas lift requirements by 2 million standard cubic feet per day. The higher rates should result in warmer flowing temperatures and less downtime caused by paraffin and hydrate deposition. Crossflow is anticipated to be minimal during production, and given the completion design, zonal isolation will prevent Crossflow during long shut-ins. Findings and Conclusions Commingling production from the Aurora and Prudhoe Oil Pools in Well 5-26 will not result in waste; in fact, the proposed project will likely increase overall recovery from the two pools. Based on pilot testing in Well NK-43 and the geochemical reports provided with BPXA's application, the Commission finds that the use of geochemical sampling and production log results, along with regular well testing, should result in the proper allocation of production from the Aurora and Prudhoe Oil Pools. The interests of the Prudhoe Bay Unit working interest owners are integrated. The royalty owner is the State of Alaska, and the royalty rate is uniform for the Aurora and Prudhoe Oil Pools. Hence, commingling production from these pools raises no correlative rights issues. Order CO 457E and CO 341D are hereby amended to add the following rule: Rule 13 (in CO 4578) and Rule 18 (in CO 341D) Commingling of Production in the Same Wellbore Commingling production from the Aurora and Prudhoe Oil Pools in Well 5-26 is approved on the condition that BPXA allocates production to the separate pools using the geochemical test, production log, and regular well test results outlined below: a. Prior to commingling production in Well 5-26, a bottom-hole static reservoir pressure and production test must be obtained and geochemical sampling and analysis must be performed on oil from the Aurora Oil Pool (in isolation from the Prudhoe Oil Pool). CO 4~7B.003 CO 341 E.005 November 27, ?007 Page 3 of 3 b. For the first six months after commingled production starts, geochemical sampling and analyses must occur monthly at the time stabilized production tests are performed. Thereafter, geochemical sampling and analysis must occur at least twice per year and not less frequently than once every seven months. c. Production logs must be obtained and compared to the geochemical and regular well test results within the first two months and again six months after commingled production starts. Thereafter, production logs or isolated well tests of each pool must be obtained when major changes in production characteristics occur which could result in less accuracy in allocation of gas or water to the separate pools. d. In addition to the other requirements of Rule 4 of CO 457B, the monthly reports required by Rule 4(e) of CO 457B must identify the Well 5-26 production allocated to the Aurora Oil Pool and Prudhoe Oil Pool. e. The volumes reported on Form 10-405-i. e., in accordance with 20 AAC 25.230(b)- must identify the Well 5-26 production allocated to the Aurora Oil Pool and Prudhoe Oil Pool. £ A summary report documenting the results and effectiveness of the commingled production allocation must be provided to the Commission within 9 months after the start of commingled production and shall include the results of the production allocated to the Aurora and Prudhoe Oil Pools, along with the analyses of the geochemical tests, production logs, and regular well tests. g. Unless a public notice and hearing are required, the Commission. may administratively waive or amend the requirements of any rule as long as doing so would not promote waste or jeopardize correlative rights, is based on sound engineering and geoscience principles, and will not result in an increased risk of fluid movement into freshwater. All other Rules in CO 457B and CO 341D remain in effect. As provided in AS 31.05.080, within 20 days after written notice of this order, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for reconsideration. To be timely, the application must be received by 4:30 p.m. on the 23`d day following the date of this order, or on the next working day if the 23`d day falls on a state holiday or weekend. This decision may not be appealed to the Superior Court unless the Commission has received a timely, properly filed application for reconsideration. DONE at Anchorage, Alaska and dated November 27, 2007. and Gas Conservation Commission -- ,i ,~ i / Daniel T. Seamount, Jr. Cathy . Foerster ~._ Commissioner Commissioner Page 1 of 1 Colombie, Jody J (DOA) From: Colombie, Jody J (DOA) Sent: Wednesday, November 28, 2007 1:43 PM Subject: co 4576.003 and co341e.005 PBU Attachments: co457b-003.pdf; co341e-005.pdf BCC:McIver, C (DOA); 'Alan Birnbaum <""Alan J Birnbaum "> (alan.birnbaum@alaska.gov)'; 'Aleutians East Borough'; 'Anna Raff; Arion, Teri A (DNR); 'Arthur C Saltmarsh'; 'Arthur Copoulos'; 'Barbara F Fullmer'; 'bbritch'; 'Bill Walker'; 'Brad McKim'; 'Brandon Gagnon'; 'Brian Gillespie'; 'Brian Havelock'; 'Brit Lively'; 'Bruce Webb'; 'buonoje ; 'Cammy Taylor'; 'carol smyth'; 'Cary Carrigan'; 'Catherine P Foerster'; 'Charles O'Donnell'; 'Chris Gay'; 'Christian Gou-Leonhardt'; 'Cliff Posey'; 'Dan Bross'; 'dapa'; 'Daryl J. Kleppin ; 'David L Boelens'; 'David Steingreaber'; 'ddonkel'; 'Deanna Gamble'; 'Deborah J. Jones'; 'doug_schultze'; 'Evan Harness'; 'eyancy'; 'foms2@mtaonline.net'; 'Francis S. Sommer'; 'Fred Steece'; 'Garland Robinson'; 'Gary Laughlin'; 'Gary Rogers'; 'Gary Schultz'; 'ghammons'; 'Gordon Pospisil'; 'Gregg Nady'; 'gregory micallef; 'gspfoff; 'Hank Alford'; 'Harry Engel'; 'jah'; 'James B Regg'; 'James M. Ruud'; 'James Scherr'; 'Janet D. Platt'; 'jdarlington'; 'jejones'; 'Jerry McCutcheon'; 'Jim White'; 'Jim Winegarner'; 'Joe Nicks'; 'John Garing'; 'John S. Haworth'; 'John Spain'; 'John Tower'; 'John W Katz'; johnny.aiken@north-slope.org; 'Jon Goltz'; 'Julie Houle'; 'Kari Moriarty'; 'Kaynell Zeman'; 'Keith Wiles ; knelson@petroleumnews.com; 'Kristin Dirks'; 'Laura Silliphant'; 'Lois'; 'Lynnda Kahn'; 'mail=akpratts@acsalaska.net'; 'mail=Crockett@aoga.org'; 'mail=fours@mtaonline.net'; 'Mark Dalton'; 'Mark Hanley'; 'Mark Kovac'; 'Mark P. Worcester'; 'Marquerite kremer'; 'marty'r 'Matt Rader'; 'mckay'; 'Meghan Powell'; 'Mike Bill'; 'Mike Mason'; 'Mikel Schultz'; 'Mindy Lewis'; 'MJ Loveland'; 'mjnelson'; 'mkm7200'; 'Nick W. Glover'; 'Patty Alfaro'; 'Paul Decker'; 'Paul Winslow'; Pierce, Sandra M (DNR); 'Randall Kanady'; 'Randy L. Skillern'; 'rcrotty'; Rice, Cody J (DNR); 'rmclean'; 'Robert Campbell'; 'Robert Province'; 'Roger Belman'; 'Rudy Brueggeman'; 'Scott Cranswick'; 'Shannon Donnelly'; 'Sharmaine Copeland'; 'Sondra Stewman'; 'Sonja Frankllin'; 'stanekj'; 'Stephen F Davies'; 'Steve Lambert'; 'Steve Moothart'; 'Steven R. Rossberg'; 'tablerk'; 'Tamera Sheffield'; 'Temple Davidson'; 'Terrie Hubble'; 'Thomas E Maunder'; 'Tim Lawlor'; 'Todd Durkee'; 'trmjrl'; 'Walter Featherly'; 'Walter Quay'; 'Wayne Rancier' Attachments:co457b-003.pdf;co341 e-OOS.pdf; 11/28/2007 • • Mary Jones David McCaleb Mona Dickens XTO Energy, Inc. IHS Energy Group Tesoro Refining and Marketing Co. Cartography GEPS Supply & Distribution 810 Houston Street, Ste 2000 5333 Westheimer, Ste 100 300 Concord Plaza Drive Ft. Worth, TX 76102-6298 Houston, TX 77056 San Antonio, TX 78216 George Vaught, Jr. Jerry Hodgden Richard Neahring PO Box 13557 Hodgden Oil Company NRG Associates Denver, CO 80201-3557 408 18th Street President Golden, CO 80401-2433 PO Box 1655 Colorado Springs, CO 80901 John Levorsen Michael Parks Mark Wedman 200 North 3rd Street, #1202 Marple's Business Newsletter Halliburton Boise, ID 83702 117 West Mercer St, Ste 200 6900 Arctic Blvd. Seattle, WA 98119-3960 Anchorage, AK 99502 Baker Oil Tools Schlumberger Ciri 4730 Business Park Blvd., #44 Drilling and Measurements Land Department Anchorage, AK 99503 2525 Gambell Street #400 PO Box 93330 Anchorage, AK 99503 Anchorage, AK 99503 Ivan Gillian Jill Schneider Gordon Severson 9649 Musket Bell Cr.#5 US Geological Survey 3201 Westmar Cr. Anchorage, AK 99507 4200 University Dr. Anchorage, AK 99508-4336 Anchorage, AK 99508 Jack Hakkila Darwin Waldsmith James Gibbs PO Box 190083 PO Box 39309 PO Box 1597 Anchorage, AK 99519 Ninilchick, AK 99639 Soldotna, AK 99669 Kenai National Wildlife Refuge Penny Vadla Richard Wagner Refuge Manager 399 West Riverview Avenue PO Box 60868 PO Box 2139 Soldotna, AK 99669-7714 Fairbanks, AK 99706 Soldotna, AK 99669-2139 Cliff Burglin Bernie Karl North Slope Borough PO Box 70131 K&K Recycling Inc. PO Box 69 Fairbanks, AK 99707 PO Box 58055 Barrow, AK 99723 Fairbanks, AK 99711 Williams Thomas Arctic Slope Regional Corporation Land Department PO Box 129 I /~ IU~ Barrow, AK 99723 ( l'~ ~~ X17 1 {Ali 1 Vl L Colombie, Jody J (DOA) From: Williamson, Mary J (DOA) Sent: Monday, October 15, 2007 3:48 PM To: Colombie, Jody J (DOA) Subject: S-26 Jody, Please put this in the S-26 /Aurora commingle file. Jane From: Williamson, Mary J (DOA) Sent: Monday, October 15, 2007 3:47 PM To: 'Young, Jim' Subject: RE: hydraulics commingling S-26 comments No word yet. November 9 is due date on hearing request. Nov. 15 is potential hearing date. From: Young, Jim [mailto:Jim.Young@bp.com] Sent: Monday, October 15, 2007 3:41 PM To: Williamson, Mary J (DOA) Subject: RE: hydraulics commingling 5-26 comments I did the hydraulics in Prosper. Hagedorn & Brown is a good correlation if you want to do a check in SNAP. The key factor is the Ivishak FGOR, currently estimated ~4000scf/b it provides a lot of natural lift. All of your data gathering suggestions sound good (basically what I had planned), we can live with those specifics. I'll have to ask about the MI......I think they can still do it, no more MI planned for Prudhoe, but we may have some things to learn about effect on Aurora GC. Any comments from the public yet? Not needing a hearing would certainly make everyone more comfortable about getting this on the 2007 rig scedule. Jim From: Williamson, Mary J (DOA) [mailto:jane.williamson@alaska.gov] Sent: Monday, October 15, 2007 2:35 PM To: Young, Jim Subject: hydraulics commingling 5-26 comments Jim, Do you have a copy of the hydraulics report? If in SNAP, I can run here. In my first glance of the S-26 it looks good but a few suggestions for additional data gathering. A static BHP of Aurora alone before commingling. (you might want to get a static pressure of Prudhoe perfs near the same time). geochem of the Aurora perfs producing along with a zonal production test of Aurora. Geochems should.be collected the same time or as close as possible to the well tests and production logs. I'd suggest 1 or 2 additional production logs during the year. Possibly at month 3 and 1 year 10/16/2007 • • We'll want a full report by the end of one year on the effectiveness of the testing and preliminary findings (e-mail fine) every 3 months till then. You mention MI. When are you expecting the MI injection to start? Will the geochem be greatly effected with MI breakthrough? Seem's like the oil composition will change. Jane 10/16/2007 I?E: 5-26 Downhole Commir~ ~.pplication • Page 1 of 2 Colombie, Jody J (DOA) From: Maunder, Thomas E (DOA) Sent: Wednesday, November 07, 2007 11:30 AM To: Williamson, Mary J (DOA); Saltmarsh, Arthur C (DOA) Cc: Colombie, Jody J (DOA) Subject: RE: S-26 Downhole Commingling application Jane, I support their plan. A workover will be necessary to gain access to the 7" casing across the Kuparuk. It may be appropriate to have a bond log run in the 9-5/8" casing as part of that work. I have examined the well file and it appears that the 9-5/8" cement may have channeled since the 9-5/8" x 13-3/8" annulus became plugged and it was necessary to cut and pull the upper portion of the 9-5/8" casing. There isn't much information in the file regarding the cementing. Isolation may be likely based on work attempted on W-29 which had suspect isolation; however it was not possible to squeeze cement as planned. In the order or AA submitting a 403 to conduct the workover should be specified since pulling/replacing tubing on development wells in Prudhoe Bay Field does not ordinarily require a sundry. Let me know if you need anything else. Tom From: Williamson, Mary J (DOA) Sent: Tuesday, November 06, 2007 4:41 PM To: Saltmarsh, Arthur C (DOA); Maunder, Thomas E (DOA) Cc: Colombie, Jody J (DOA) Subject: FW: S-26 Downhole Commingling application Please review the commingle request and let me know if you have need for a hearing. I don't, do you? BP will still need to send in a 403, but !don't have a problem with the commingling. I'll start working on the order. From: Roby, David S (DOA) Sent: Thursday, October 04, 2007 12:51 PM To: Williamson, Mary J (DOA); Saltmarsh, Arthur C (DOA); Maunder, Thomas E (DOA) Subject: FW: 5-26 Downhole Commingling application A revised version of the application. Dave Roby Phone: 907-793-1232 email: dave.roby@alaska.gov From: Young, Jim [mailto:Jim.Young@bp.com] Sent: Thursday, October 04, 2007 11:55 AM To: Roby, David S (DOA); Colombie, Jody J (DOA) Cc: Lenig, David C; Paskvan, Frank A; Ohms, Danielle H; Robles, Marcelo Subject: RE: S-26 Downhole Commingling application Jody, Please strike « File: Aurora IPA Commingle Request BP_COP-EMfinal.doc » from your records 8~ replace with attached for the official application. 11 /7/2007 RE: 5-26 Downhole Commir# application ~ Page 2 of 2 Dave - A couple minor changes we're made to clarify when monthly GC sampling would start & that we don't anticipate significant crossflow potential unless shut-ins exceed 2 months (point at which isolation plug would be used). Thanks Jim Young «Young, Jim.vcf» «Aurora IPA Commingle Request BP_COP-EMfinal.pdf» From: Young, Jim Sent: Wednesday, October 03, 2007 4:31 PM To: 'dave.roby@alaska.gov' Cc: Lenig, David C; Paskvan, Frank A; Ohms, Danielle H Subject: 5-26 Downhole Commingling application Hello Dave, This took a bit longer to get signed off than I'd hoped, but Frank signed this today. Tommorrow, you'll get ahard- copy with Scott's signature on it as well, but I wanted to get something to you right away so we can get the ball rolling on the public notice. Thanks Jim « File: Kuparuk Ivishak Allocation Feasibility 07-616.pdf (Compressed) » « File: Aurora IPA Commingle Request BP_COP-EMfinal.doc (Compressed) » 11 /7/2007 tt.~;: ~-gin ~sownA~vxe ~;~,rirn~~i~ pplic~rlo~~ ~ rae ~ ~~ 3 Colombia, Jody J DOA) From: Williamson, Mary J (DOA) Sent: Wednesday, November 07, 2007 11:48 AM To: Colombia, Jody J (DOA); Norman, John K (DOA}; Seamount, Dan T (DOA); Foerster, Catherine P (DOA} Cc: Birnbaum, Alan J (LAW); Saltmarsh, Arthur C (DOA); Maunder, Thomas E (DOA} Subject: Cancel hearing S-26 Downhole Commingling application - Commissioners, Senior staff recommend cancelling the Nov 15 hearing, assuming there have been no protests or requests for a hearing. Jody, if the Commissioners agree to cancel the hearing, can you a-mail Jim Young (jimyoung@bp,com), David Lenig Dayid.Leng@bpcom, Frank Paskvan Frank,_Paskvan@bp.com and Danielle Ohms Danielle.Ohms@bp.com Jane 11 /7/2007 X16 STATE OF ALASKA ~ NOTICE TO PUBLISHER ~ ADVERTISING ORDER NO. ADVERTISING ORDER INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE AO-02814017 SEE BOTTOM FOR INVOICE ADDRESS F R AOGCC 333 W 7th Ave, Ste 100 AGENCY CONTACT Jod Colombie DATE OF A.O. October 4 2007 ° M Anchorage, AK 99501 907-793-1238 PHONE PCN DATES ADVERTISEMENT REQUIRED: a Anchorage Daily News PO Box 149001 Anchorage, AK 99514 October 5, 2007 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN, SPECIAL INSTRUCTIONS: Advertisement to be published was e-mailed Type of Advertisement Legal® ^ Display Classifi ed ^Other (Specify) SEE ATTACHED SEND INVOICEIN TRIPLICATE TO AOGCC, 333 W. 7th Ave., Suite 100 Anchora e AK 99501 PAGE 1 OF 2 PAGES TOTAL OF ALL PAGES$ REF TYPE NUMBER AMOUNT DATE COMMENTS 1 VEN z ARD 02910 FIN AMOUNT SY CC PGM LC ACCT FY NMR oisT un 7 O8 02140100 73451 2 REQUISITIONED ~1(: ( ~ / DIVISION APPROVAL: l `~" -~ 02-902 (Rev. 3/94) Publisher/Original Copies: Department Fiscal, Department, Receiving AO.FRM • • Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: Prudhoe Bay Field Aurora Oil Pool and Prudhoe Oil Pool Application to allow commingling of production from the Aurora Oil Pool and Prudhoe Oil Pool within Well 5-26 By letter dated October 3, 2007, BP Exploration (Alaska) Inc. as Unit Operator of the Prudhoe Bay Unit requested the Commission to issue an order in conformance with 20 AAC 25.215(b) allowing commingling of production from the Aurora Oil Pool and Prudhoe Oil Pool within Well 5-26. The bottomhole location of the well is in Section 35, T12N-R12E, Umiat Meridian. The Commission has tentatively scheduled a public hearing on this application for November 15, 2007 at 9:00 am at the offices of the Alaska Oil and Gas Conservation Commission at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. A person may request that the tentatively scheduled hearing be held by filing a written request with the Commission no later than 4:30 pm on October 25, 2007. If a request for a hearing is not timely filed, the Commission may consider the issuance of an order without a hearing. To learn if the Commission will hold the public hearing, please call 793-1221 after November 10, 2007. In addition, a person may submit a written protest or written comments regarding this application and proposal to the Alaska Oil and Gas Conservation Commission at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. Protests and comments must be received no later than 4:30 pm on November 9, 2007 except that if the Commission decides to hold a public hearing, protests or comments must be received no later than the conclusion of the November 15, 2007 hearing. If you are a person with a disability who may need special accommodations in order to comment or to attend the public hearing, please contact the Commission's Special Assistant Jody Colombie at 793-1221. ~ ~~ Cathy . Foerster Commissioner Anchorage Daily News Affidavit of Publication 1001 Northway Drive, Anchorage, AK 99508 RECEIVED ~ G T 1 6 2007 lo~siza» Alaska Oil & Gas Cons. Commission Anchorage PRICE OTHER OTHER OTHER OTH R OTHER GRAND AD # DATE PO ACCOUNT PER DAY CHARGES CHARGES #2 CHARGES #3 CHARGES #4 CHARGES #5 TOTAL 352262 10/05/2007 02814017 STOF0330 $192.56 $192.56 $0.00 $0.00 $0.00 $0.00 $0.00 $192.56 STATE OF ALASKA THIRD JUDICIAL DISTRICT Angelina Benjamin, being first duly sworn on oath deposes and says that she is an advertising representative of the Anchorage Daily News, a daily newspaper. That said newspaper has been approved by the Third Judicial Court, Anchorage, Alaska, and it now and has been published in the English language continually as a daily newspaper in Anchorage, Alaska, and it is now and during all said time was printed in an office maintained at the aforesaid place of publication of said newspaper. That the annexed is a copy of an advertisement as it was published in regular issues (and not in supplemental form) of said newspaper on the above dates and that such newspaper was regularly distributed to its subscribers during all of said period. That the full amount of the fee charged for the foregoing publication is not in excess of the rate charged private individuals. _'1 n Signed U ''' Subscribed and sworn to me before this date: Notary Public in and for the State of Alaska. Third Division. Anchorage, Alaska MY ~~lltt~f'~~ y • s ~ /" s.. ~ .. ~ r ... .~+ es ~S s6iLly r. w 6/ .r ~, ~', ~ ^~ ~~ ~ ~~ ~.~ ~ js1}T1))%~~' Notice of Public Hearing I STATE OF ALASKA Alaska Oil and Gas Conservation Corumission Re: Prudhoe Bay Field Aurora Oil Pool and Prudhoe Oil POOI Application to allow commingling of production from the Aurora Oil Pool and Prudhoe Oil Pool within Well 5-26 By letter dated October 3, 2007, BP Exploration (Alaska) Inc. as Unit Operator of the Prudhoe Bay Unit requested the Commission to issue an order in conformance with 20 AAC 25.215(b) allowing commingling of production from the Aurora Oil Pool and Prudhoe Oil Pool within WeII 5-26. The bottomhole location. of the well is in Section 35, T12N-R12E, Umiat Meridian. The Commissiorrhas tentativelyscheduled apublic hearing on this application for November 15; 2007 at 9:0o am at the offices of the Alaska Oil and Gas Conservation Commission at 333 West 7th Avenue, Suite 100, Anchorage; Alaska 99501. A persdn may request that the tentatively scheduled bearing beheld by filing a written request with the Commissidn no later than 4:30 pm on October 25; 2007. If a request for a hearing is not timely filed; the Commission may consider the issuance of an order without a hearing. To learn if the Commission will hold the public hearing, please call 793-1221 after NOVemtler 10, 2007. In addition, a person may submit a written protest or written comments regarding this application and proposal to the Alaska Oil and Gas Conservation Commission at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. Protests and comments must be received no later than 4:30 pm on November 9, 2007 except that if the Commission decides to hold a public hearing, protests or comments must be received no later than the conclusion of the November 15, 2007 hearing. If you area person with a disability who may need special accommodations in order to comment or to attend the Qublic hearing, please contact. the Commission s Special Assistant Jody Colombie at 793-1221. Cathy P. Foerster Commissioner AO-02814017 Publish: October O5; 2007. • Colombie, Jody J (DOA) From: Ads, Legal [legalads@adn.com] Sent: Thursday, October 04, 2007 2:54 PM To: Colombie, Jody J (DOA) Subject: RE: Public Notice PBU Attachments: STOF0330 - Ad Preview.pdf; STOF0330 - Receipt.pdf Following is the confirmation on your legal notice. Please fully review all attachments and let me know if there are any_changes_. Please let me know if you have any questions or need additional information. Account Number: Legal Ad Number Publication Date(s) Your Reference Number: STOF0330 352262 October 05, 2007 02814017 Total Cost of Legal Notice: $192.56 Thank you, Artgelirta Benjamin Legal Classifieds Representative Email: legalads@adn.corn P: (907) 257-4296 F: (907) 279-8170 Anchorage Daily Nezvs 1001 Northzvay Drive Anchorage, Alaska 99508 Ask me how to get uour ad online at www.legalnotice.or~ linked through www.adn.com! Ask me how to advertise in the "Don't Drink ~' Drive"~~e on Halloween, Thanksgiving, Christmas and New Years! -----Original Message----- From: Colombie, Jody J (DOA) [mailto:jody.colombie@alaska.gov] 10/4/2007 r~ ~ - ADVERTISING INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED AFFIDAVIT OF PUBLICATION WITH ATTACHED COPY OF PART 2 OF THIS FORM AO-02814017 ORDER ( ) ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE SEE BOTTOM. FOR INVOICE ADDRESS F AOGCC AGENCY CONTACT DATE OF A.O. R 333 West 7th Avenue. Suite 100 Anch~ra~e_ AK 995(11 PHONE PCN M 907-793-1238 GATES ADVERTISEMENT REQUIRED: o Anchorage Daily News October 5 2007 , PO Box 149001 Anch ra AK 99514 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN o e g ~ ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: Account # STOF0330 AFFIDAVIT OF PUBLICATION United states of America REMINDER State of ss INVOICE MUST BE IN TRIPLICATE AND MUST REFERENCE THE ADVERTISING ORDER NUMBER. division. A CERTIFIED COPY OF THIS AFFIDAVIT OF PUBLICATION MUST BE SUBMITTED WITH THE INVOICE. Before me, the undersigned, a notary public this day personally appeared ATTACH PROOF OF PUBLICATION HERE. who, being first duly sworn, according to law, says that he/she is the of Published at in said division and state of and that the advertisement, of which the annexed is a true copy, was published in said publication on the day of 2007, and thereafter for consecutive days, the last publication appearing on the day of 2007, and that the rate charged thereon is not in excess of the rate charged private individuals. Subscribed and sworn to before me This day of 2007, Notary public for state of My commission expires Mary Jones XTO Energy, Inc. Cartography 810 Houston Street, Ste 2000 Ft. Worth, TX 76102-6298 George Vaught, Jr. PO Box 13557 Denver, CO 80201-3557 John Levorsen 200 North 3rd Street, #1202 Boise, ID 83702 Baker Oil Tools 4730 Business Park Blvd., #44 Anchorage, AK 99503 Ivan Gillian 9649 Musket Bell Cr.#5 Anchorage, AK 99507 Jack Hakkila PO Box 190083 Anchorage, AK 99519 Kenai National Wildlife Refuge Refuge Manager PO Box 2139 Soldotna, AK 99669-2139 Cliff Burglin PO Box 70131 Fairbanks, AK 99707 Williams Thomas Arctic Slope Regional Corporation Land Department PO Box 129 Barrow, AK 99723 • David McCaleb IHS Energy Group GEPS 5333 Westheimer, Ste 100 Houston, TX 77056 Jerry Hodgden Hodgden Oil Company 408 18th Street Golden, CO 80401-2433 Michael Parks Marple's Business Newsletter 117 West Mercer St, Ste 200 Seattle, WA 98119-3960 Schlumberger Drilling and Measurements 2525 Gambell Street #400 Anchorage, AK 99503 Jill Schneider US Geological Survey 4200 University Dr. Anchorage, AK 99508 Darwin Waldsmith PO Box 39309 Ninilchick, AK 99639 Penny Vadla 399 West Riverview Avenue Soldotna, AK 99669-7714 Bernie Karl K&K Recycling Inc. PO Box 58055 Fairbanks, AK 99711 Mona Dickens Tesoro Refining and Marketing Co. Supply & Distribution 300 Concord Plaza Drive San Antonio, TX 78216 Richard Neahring NRG Associates President PO Box 1655 Colorado Springs, CO 80901 Mark Wedman Halliburton 6900 Arctic Blvd. Anchorage, AK 99502 Ciri Land Department PO Box 93330 Anchorage, AK 99503 Gordon Severson 3201 Westmar Cr. Anchorage, AK 99508-4336 James Gibbs PO Box 1597 Soldotna, AK 99669 Richard Wagner PO Box 60868 Fairbanks, AK 99706 North Slope Borough PO Box 69 Barrow, AK 99723 • Colombie, Jody J (DOA) From: Colombie, Jody J (DOA) Sent: Thursday, October 04, 2007 12:59 PM Subject: Public Hearing Notice PBU Attachments: Aurora and Prudhoe Commingling.pdf 10/4/2007 x#-15 • BP Exploration (Alaska), Inc. 900 East Benson Boulevard Post Once Box 196612 Anchorage, Alaska 99519-6612 Telephone (907) 564 581 October 4, 2007 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 ltE: Application for Down-hole Commingling of Production from Aurora and Prudhoe Pools In its capacity as Operator of the Aurora Oil Pool (AOP) and the Prudhoe Oil Pool (POP), BP Exploration (Alaska) Inc. ("BP") hereby requests approval to commingle production from the AOP and POP in the same wellbore. Because commingling of production from the AOP and POP will not cause waste, but rather should allow for recovery of a greater quantity of oil, and such production can be properly allocated, BP requests that the Commission issue an order authorizing the commingling of production from the AOP and the POP within the same well-bore. Plans are to commence commingling of production from AOP and POP in Well 5-26 by the end of 2007 if approval can be obtained in time. The following information is provided to support this application. Please call Jim Young 564-5754 or Danielle Ohms 564-5759 if you have any questions. Sincerely, ~; ~.. ~. ,. ....~ .- _ I~rarib€ >xask~:~an~~~ee~lt 13igcrl . Subsurface Resource Managers, GPB WEST / WF Attachment 1: OilTracers Report No. 07-616 (CONFIDENTIAL) CC(electronic): Sherry Gould (BP commercial) Hank Bensmiller (ExxonMobil) Don Ince (CPAI) • • Aurora Prudhoe Commingling 10/4/2007 Introduction Commingling of production within the same well-bore from two pools is permitted under 20 AAC 25.215(b) if the. Commission, after notice and opportunity for public hearing, "(1) fmds that waste will not occur, and that production from separate pools can be properly allocated; and (2) issues an order providing for commingling for wells completed from these pools within the field." Waste Will Not Occur 1. Production Considerations Well 5-26 penetrates the AOP and POP in areas where well rates from both Pools are very low. In low rate wells, frequent production problems (e.g., paraffin and hydrate deposition) are encountered due to low flowing temperatures associated with the North Slope permafrost. Intervention options such as hot-oiling, heat-trace, jet pumps, and continuous methanol injection can reduce down-time to as low as 10%. Although there is currently no AOP production from the S-26 wellbore, the expected rate and remaining hydrocarbons do not justify drilling a standalone well. By commingling production from the two pools within the same well-bore, the fluid rate and velocity in the tubing can be increased, resulting in higher flowing wellhead temperatures and reduced production problems associated with wax and hydrate formation. Consequently, commingling of production from the AOP and POP within the same well-bore will not cause waste, but rather should allow for recovery of a greater quantity of oil. 2. Hydraulic Impacts on Production Well 5-26 was drilled in 1990 as a standalone producer from the POP, with a fracture stimulation. Production from Well 5-26 averages 800-950 stb/d liquid and 200-250 stb/d of oil, as shown in Table 1. This is considered a low rate for the existing 4-1/2" tubing, causing a large variability in test rates due to slugging. It is estimated that Well 5-26 has the • Aurora Prudhoe Comn..~igling • 10/4/2007 hydraulic capacity for an incremental 500-900 stb/d of production without resulting in a significant change in flowing bottom hole pressure. Table 1 Well tests from S-26, in standard oilfield units Well Bore Run Date Total Fluid Rate (bbls) Oil Rate (bbls) Water Rate (bbls) Form Gas Rate (mcfd) Gas Lift (mcfd) Gas Lift Press (psi) Form GOR (scf/ stbo) FTP (psi) WH Temp (f) WC Pct (%} S-26 07f 15/07 866 242 624 1,068 2,070 1,241 4,415 237 107 72 S-26 06/25/07 940 212 728 1,005 2,040 1,243 4,748 242 105 77 5-26 06/07/07 848 216 632 976 2,060 1,229 4,525 231 103 75 5-26 06/01/07 935 227 708 1,155 2,060 1,218 5,096 242 104 76 Using the expected S-pad AOP productivity of 500 stb/d, the relative and combined capacities are depicted in Table 2. An increase in AOP production is expected from commingling due to reduced down-time associated with wax issues mentioned earlier. Table 2.5-26 liquid rate impact of commingling: Pool 2 wells Commingiled delta (liquid} POP(75% wc) 900 stb/d 860 stb/d -40 stb/d AOP(0% wc) 450 stb/d 500 stb/d +50 stb/d Total 1350 stb/d 1360 stb/d +10 stb/d Fm. Gas Rate 1450 mcfd 1460 mcfd -8 mcfd AL Gas Rate 4000 mcfd 2000 mcfd -2000 mcfd Delta oil from wellbore = +490 stb/d Due to the low current POP production rate, no additional artificial lift (AL) gas would be required to handle additional liquid from the AOP. In a gas handling constrained environment, the reduced AL gas required for the commingled well (relative to two wells) results in an increase in oil production rate by utilizing the AL gas elsewhere. Since commingling requires a shallower gas-lift injection depth, a rate impact is expected to the POP later in life as water-cut increases. However, because the oil cut is lower at this point, the impact on oil rates to the POP is more than offset by additional production from the AOP by the reduced down-time and gas-handling benefits. This selective application of commingled production will result in an increase of overall recovery from both the Aurora and Prudhoe oil pools. • Aurora Prudhoe Commingling 10/412007 3. Cross flow Because both pools have similar in-situ fluid properties and share the same source of injection water, commingling should not result in formation damage. No fluid incompatibilities have been noted during ongoing surface commingling. Consequently, limits on cross flow are guided by reservoir management considerations. Pressure buildup behavior from both AOP and POP has been analyzed to assess cross flow potential and consequences. When a commingled well is shut-in, cross flow will be dictated by pressure buildup behavior within each pool. At initial shut-in, the pressure at each pool is equal to the wellbore pressure plus hydrostatic head caused by well bore fluid. The hydrostatic head between pools will be approximately 0.3 psi/ft and increases over time with producing water-cut. After a transient period after shut-in, the pressures within each pool will increase to a limit no greater than the average reservoir pressure. Direction of cross flow will be determined by which pool has the greater reservoir pressure at a given datum depth. A comparison of recent pressures in area wells is shown in table 3 to illustrate different cross flow scenarios. Table 3 Comparison of AOP & POP static pressure data near S-pad SW_ DATUM TEST_ PRES_ PRES_ PRESS_ DELTA PROJECT NAME DEPTH_SS DATE DAYS_SI DATUM 8800'SS PSI PRUDHOE S-26 8800' 9/11/05 6 3224 0.3PSI/FT S-26 AURORA S-108 6700' 6/14/07 14.92 2241. 2851 -373 AURORA S-108 6700' 3/29/06 300 2964 3574 370 At expected initial conditions of high AOP pressure in this area (>3000psi at 6700'ss datum), the differential pressure could exceed 300 psi. However, as confirmed by pressure-buildup analyses, low permeability in the AOP for this area results in an extremely long transient time before full reservoir pressure is seen in the well bore. Consequently, POP reservoir fluids may slowly cross-flow into the AOP until pressures equalize. Reservoir modeling suggests that this volume is expected to be small. Well S-26 will be equipped with an X- nipple between the AOP and POP perforations, as shown in figure 1, to allow isolation of the pools by setting adown-hole plug for extended shut-ins (>2 months) or when separate zone pressure measurements are desired. • • Aurora Prudhoe Comn._.igling Figure i. Proposed commingled completion 7Rg= 4"(]W WHlI'i6GD = ACTl14TOR= OTIS Kg, B.EV = 65.09' Bp. gE/ = 37.49' KOP = 4400' Ngx A b = 23 5366' Dewm ND = 9073' Dawm ND= B800'SS S-26 10/4/2007 SAFETY NDf69: NOTIFY fiC OF ANY WLiL CpgiATION WHICH COULD INCi~ASE FLOW OR g7pS10N RATl3 TO 3^ SKD RON1LIfE(POT®'1YIAL BROSIOM• ~pq 4-1/20TF SSSV NP. D=3.813" R4 RA ^'C'D86Q^s9~~~ {w® Pe~oRAT70N su~mmnRY Rff LOG: SWS BRCS ON OS/24~J0 ANGLE AT TOP PB7F: 4 ~ 8951' FUte : Rater to Ftoduc8on OB f or historic>a erf data S¢E SPF NfB2VAL DOTE 33/8• 4 8951 - 8967 O 08126/90 33/8" 4 8955 -9053 O 0826190 3318" b 9085 - 9130 S 09110D94 33/8^ 4 9184 - 9186 S 09/10/94 AND OLDIBP PRllp-IOE BAY lNT GATE 0g/p4/gp REV BY OOMuE41'S OFOOII4AL COMP?-ETION MTE 0428103 REV BY ATDI7LH WAN62 SAFETY NOTE Wfl,l: 5-26 F6ifuii Nt):1900580 09ro7ro1 RWTP p924ro3 QLRLH WANHt 9FTY NOTE 08_tZl~ API NO: 50.029-222047-00 10/06/02 JNYKAK GLV Cl0 S~ 35. T721y R72E 1635' FNL 81160' FWL 10/t3/02 JAUKK WAN6t SAFETY NOTE 0222103 JNP/KAK WANF3t SAFETY NOTE Rt1/ BP 6~ioratlon (Alaska) 03/09/03 JJlTP C/O GLVS Appropriate Surveillance and Production Allocation Will Be .Assured Appropriate surveillance and production allocation measures will be undertaken to meet reservoir management objectives and to provide an acceptable allocation methodology. 1. Production Allocation In addition to stand-alone tests prior to commingling, when commingling commences, monthly (30-producing days) geo chemical (GC) samples will be obtained and compared with production logs both initially and after 6-months of production. Fluid samples have {. -7000 862T AND TT LOGG®08/75J90 8t,~q 4-vr wn.L~ • Aurora Prudhoe Commingling :7 10/4/2007 been obtained from both pools to verify that GC analysis will allow for metering of pool oil, water and gas to within allocation quality accuracy. See attached report from Oil Tracers for more detailed information on this. After one year of commingled production, GC analysis will be completed semi-annually and production logs will be repeated as necessary to assess production anomalies based on well test results. 2. Reservoir Surveillance Long-term development plans for AOP and POP pools include water-flood and Enhanced Oil Recovery using Miscible Injectant (MI) from the Prudhoe Bay Miscible Gas Project. Reservoir pressure and hydraulic communication to offset injection support will be determined by comparing initial pressure and production from each pool with subsequent well tests. If pressure maintenance is a concern, static pressures from each pool can be measured with the use of down-hole plugs and pressure gauges. If it is determined that a completion in one pool is adversely affecting production from the other pool, that completion can be isolated as necessary to ensure waste does not occur. To ensure the efficient allocation of MI, rate and pressure response to injection will be monitored in the production wells. Production fluid samples will be taken as needed to assess pattern efficiency based on the returned MI (RMI) ratio. Allocation of RMI from commingled production samples will be linked to gas production determined from production logging and GC analysis. Conclusion BP requests approval for well-bore commingling of production from AOP and POP, in Well 5-26. This activity will not create waste and produced liquids and gas from the separate pools can be properly allocated. During the first year of production, geochemical analyses of oil samples will be performed monthly to verify agreement with stand-alone tests and production logging results. Thereafter, it is proposed that geochemical analysis be performed semi-annually to properly manage and allocate long-term production. ~14 DIVISION OF OIL & GAS e - @~&~~ @~ BßÆ@[\& SARAH PALIN, GOVERNOR DEPARTMENT OF NATURAL RESOURCES 550 WEST 7TH AVENUE, SUITE 800 ANCHORAGE, ALASKA 99501-3560 PHONE: (907) 269-8800 FAX: (907) 269-8938 CERTIFIED MAIL RETURN RECEIPT REQUESTED August 2, 2007 David A. McDowell Engineering Manager Greater Prudhoe Bay BP Exploration (Alaska) Inc. PO Box 196612 Anchorage, Alaska 99519-6612 Re: Request for Extension of Temporary Authorization of Prudhoe Bay IPA Production Metering Changes at FS-2 and COTP Due to Shut-In Transit Line Dear Mr. McDowell: By letter dated June 13,2007, BP Exploration (Alaska) Inc. (BPXA) as Operator ofthe Prudhoe Bay Unit (PBU) requested that the Department of Natural Resources, Division of Oil and Gas (Division) temporarily extend the metering waivers for Flow Station 2 (FS-2) and the Crude Oil Topping Plant (COTP) through December 31, 2008. On September 28,2006, the Division approved BPXA's request to alter the metering configuration used in the Prudhoe Bay Initial Participating Area (IP A) at Flow Station No. 1 (FS-l), FS-2 and the COTP for one year in order to allow resumption of production due to shut-in oil transit lines. Since that approval, BPXA has detennined that the design, procurement and installation of the upgraded 16 miles of oil transit lines will take longer than their original one year projection. The request to extend the waivers through December 31, 2008, is only for FS-2 and the COTP. The Division approves an extension ofthe September 28, 2006 approval for FS-2 and the COTP through December 31, 2008, or until the damaged oil transit line is replaced, and operational, whichever occurs first. Notwithstanding these approvals, the State asserts here, and reserves the right to assert in any future decision or proceeding, that it is not responsible for pipeline nominations, tariffs, line fill charges, or other costs associated with BPXA..'s use of the Endicott Pipeline to resume production at FS-2 ~'1d to resume operations at the COTP. "Develop, Conserve, and Enhance Natural Resources for Present and Future Alaskans. " e e Division of Oil & Gas 8/2/07 Page 2 of2 These approvals are for BPXA's requested metering changes only and should not be construed as approval of any other aspect of the construction of the FS-l, FS-2, and COTP bypass lines, or Eastern Operating Area Oil Transit Line repair or replacement. The State reserves the right to protest or otherwise challenge the new Endicott Pipeline tariff rates and tariff amendments on any basis other than the fact that the tariffs and tariff amendments were filed with less than the required 90 day or 30 day notice periods, and to seek reimbursement of or compensation for the new Endicott Pipeline tariffs and costs. And, finally, these approvals do not constitute a waiver of any rights or remedies the State has under the State oil and gas leases, applicable agreements or law resulting rrom the PBU shutdown. I also request that you contact Cammy Taylor at 907-269-8817 or bye-mail at cammv.tavlor@alaska.gov to schedule a meeting sometime in mid-November to provide the Division with an update on the PBU Oil Transit Line Replacement Project. Sincerely, ~-}<Y0 /rt Kevin R. Banks Acting Director cc: Jeff Landry, DOL John Norman, AOGCC Antony Scott, DNR Jim Stouffer, DNR Cammy Taylor, DNR ~13 uµ e e BP Exploration (Alaska) Inc. 900 East Benson Boulevard P.O. Box 196612 Anchorage, Alaska 99519-6612 (907) 561-5111 IiJ 1\1 "_I \ I-J ".i.f f) .'"\ 0 ^ -, - ,J ¿ Uf June 13,2007 r\J Mr. Kevin Banks, Acting Director Di vision of Oil and Gas Department of Natural Resources 550 West 7th Avenue, Suite 800 Anchorage, Alaska 99501 Mr. John Norman, Chairman Alaska Oil and Gas Conservation Commission 333 West 7th A venue, Suite 100 Anchorage, Alaska 9950 I Re: Request for Extension of Temporary Authorization of Prudhoe Bay IP A Production Metering Changes at FS-2 and COTP Due to Shut-In Oil Transit Line Dear Chairman Norman and Acting Director Banks, By separate letters sent September 12,2006, BP Exploration (Alaska) Inc. (BPXA) as Operator of the Prudhoe Bay Unit requested authorization to alter the metering configuration utilized in the Prudhoe Bay Initial Participating Area (IPA) at Flow Station No.1 (FS-l) / Flow Station No.2 (FS-2) and the Crude Oil Topping Plant (COTP) in order to restore production from the Eastern Operating Area (EOA) of the Prudhoe Bay field through certain temporary bypass lines. See Attachment A (FS-I / FS-2 Request) and Attachment B (COTP Request). The changes requested in those applications were to: 1) allow production to resume from FS-I and FS-2 via connection to the Endicott Pipeline, and 2) utilize Prudhoe Bay source crude extracted from the Endicott Pipeline as feedstock to the COTP. One other application was separately filed at that time which provided for re-routing of Flow Station No. 3 (FS-3) production through the Lisburne Sales Oil Pipeline I. The metering changes proposed in the FS-I / FS-2 application affected the location of the Lease Automatic Custody Transfer (LACT) meters and the resultant changes to the individual FS-I and FS-2 facility volume allocation procedures, but did not affect current well testing or well allocation procedures. In short, the proposed metering changes did not result in any methodological difference to the manner by which production allocation is handled within the Prudhoe Bay IPA. And, the proposed facility allocation process was entirely consistent with the current methodology for Prudhoe Bay described in the Western Satellite Metering Plan. Your l Because the PBU Oil Transit Line (OTL) segments from FS-l to PS-l (via FS-3) have been returned to service, no request is being made to extend the temporary authorizations for the FS- I and FS-3 bypass connections. No flow has occurred through the FS- I and FS-3 bypass connections. Page I e e offices approved those applications and to the best of our knowledge no problems have been encountered to date. See Attachment C (Agency Approvals). On August 30, 2006, BPXA and the Endicott Pipeline Company jointly applied to the Regulatory Commission of Alaska ("RCA") for expedited approval of connection permits for the PBU FS-2 pipeline and the PBU COTP pipelines to the Endicott Pipeline System. As you know, the FS-2 application was filed to provide for an alternative means of transporting crude oil produced from PBU FS-2 to the Trans Alaska Pipeline System ("TAPS") Pump Station No. I ("PS-I ") while the 30-inch section of the PBU Eastern Operating Area ("EOA") Oil Transit Line ("OTL") between FS-2 and FS-I was out of service. The Crude Oil Topping Plant pipelines also connected to the 30-inch EOA OTL that was out of service. This necessitated the new COTP bypass connections into the Endicott Pipeline in order to provide a temporary alternative crude oil feedstock line and return line. The COTP refines diesel and jet fuel for critical North Slope operations, including the provision of heat and power for buildings necessary to assure human health and safety. The RCA granted one-year temporary approvals for the connections. The 30-inch segment of the EOA OTL from FS-2 to FS-I, however, continues to remain out of service. A process for evaluating this OTL is well underway by the PBU Owners, but the identification and evaluation of a permanent solution and implementation of the selected option will take longer than the one year approvals each agency granted. Based on the current design review process and discussions with state and federal regulators, BPXA believes the final selected option will take until the end of 2008 to fully implement. The bypass lines will not be dismantled. Instead, the bypass lines will be isolated and the connections would be blind flanged and left in place for emergency use should the need ever arise again. In that event, BPXA would request temporary emergency authorization from each agency for such use. On June 4, 2007 BPXA and EPC sought an extension of the RCA's temporary connection permit through December 31, 2008 - a timeframe consistent with this related metering request of your agencies. See Attachment D (RCA Extension Request). As discussed above, the FS-2 and COTP connections act as the legal point of custody transfer for the oil as it leaves Prudhoe Bay. With regard to the FS-2 bypass connection, BPXA sought a waiver of the requirement to have custody transfer quality metering (known as "LACT" metering) at this location from DNR and the AOGCC. DNR and the AOGCC granted such temporary waivers for FS-2, both of which expire October 1,2007. With regard to the COTP, this facility utilizes positive-displacement custody transfer meters on its inlet and outlet streams, which, by-difference, are used to calculate the volume of crude oil withdrawn from this facility (and ultimately processed into diesel). These are the same meters that your agencies have approved for custody transfer purposes since start-up in 1977. Their application and use remains the same when connected to the Endicott Pipeline as when originally connected to the EOA Oil Transit Line. Nothing changes with this arrangement other than the source of crude oil feedstock for the facility. The DNR's temporary metering waiver for the COTP connection expires October I, 2007. The AOGCC's approval for the COTP did not limit it to a one year authorization. By way of this letter, BPXA respectfully requests that: 1) DNR and the ÀOGCC temporarily extend their respective metering waivers for FS-2 through December 31, 2008, and 2) DNR temporarily extends its COTP metering waiver through the same date. Since the regulatory Page 2 · e deadlines are fast approaching, BPXA is making contingent plans to have custody transfer metering equipment for the FS-2 crude oil outlet installed, but in order to alleviate this expense should the temporary waivers be granted, we request your decisions be made as quickly as possible and if possible prior to July 31,2007. Respectfully, o~\ ~~L~~LQ David A. McDowell Engineering Manager Greater Prudhoe Bay BP Exploration (Alaska) Inc. cc: Tom Maunder, Alaska Oil and Gas Conservation Commission Art Copoulos, Department of Natural Resources, Division of Oil and Gas Jonathan Iversen, Department of Revenue, Director Tax Division Lewis Westwick, BP Exploration (Alaska) Inc. Glenn Fredrick, Chevron U.S.A. Inc. Sonny Rix, ExxonMobil Alaska Production Inc. Dan Kruse, ConocoPhilIips Alaska, Inc. Page 3 - e Attachment A FS-1 / FS-2 Metering Request e e bp r'1¿'O(- šêfl \ l i . o BP Exploration (Alaska) Inc. 900 East Benson Boulevard P.O. Box 196612 Anchorage, Alaska 99519-6612 (907) 561-5111 Mr. Bill Van Dyke, Acting Director Division of Oil and Gas Department of Natural Resources 550 West 7th Avenue, Suite 800 Anchorage, Alaska 99501 Mr. John Norman, Chairman Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501 Re: Request for Prudhoe Bay IPA Production Metering Changes to Accommodate EOA Facility Resumption at FS-1 and FS-2 Due to Shut-In Oil Transit Lines Dear Chairman Norman and Acting Director Van Dyke, BP Exploration (Alaska) Inc. (SPXA) as Operator of the Prudhoe Bay Unit requests authorization to alter the metering configuration utilized in the Prudhoe Bay Initial Participating Area (IPA) so that early restoration of production from the Eastern Operating Area (EOA) of the Prudhoe Bay field can occur. These changes are being sought due to the shutdown of the EOA Oil Transit Line which is undergoing repair / replacement. The changes requested in this application will allow production to resume from Flow Station No. 1 (FS-1) and Flow Station No.2 (FS-2) via connection to the Endicott Pipeline. This is one of three related applications for metering changes to accommodate EOA production resumption. The other two applications (filed separately) pertain to: 1) connection of the Crude Oil Topping Plant (COTP) to the }_ Endicott Pipeline; and 2) re-routing of Flow Station No.3 (FS-3) production through the Lisburne Sales Oil Pipeline. rhe metering changes proposed in this application affect the location of the Lease Automatic Custody Transfer (LACT) meters and require changes to the individual FS-1 and FS-2 facility volume allocation procedure, but do not affect current well testing or well allocation procedures. The proposed new facility allocation process is entirely consistent with the current methodology for Prudhoe Bay described in the Western Page 1 e e bp o Satellite Metering Plan and is further described in excerpts from the amended Presentation that you received on August 29th. (See Attachment 1.) Endicott Pipeline Connections: FS-1 and FS-2 Metering As you are aware, plans are underway to utilize "bypass" piping arrangements to connect FS-1 and FS-2 to the Endicott Pipeline - a regulated common carrier sales oil pipeline'. Plans are also underway to connect the COTP to this pipeline.2 (See separate application.) Hydraulic calculations indicate that the Endicott Pipeline has sufficient excess capacity to carry the expected additional net volumes from FS-1 and FS- 2 of about 105,000 barrels per day without causing any impact to Endicott or Badami production rates. _ New ConnK tiðI'Ia OthetCclol....&I.IIngUtles The proposed metering changes do not result in any methodological difference to the manner by which production allocation is currently handled within the Prudhoe Bay IPA. 1 A new ten-inch (10") diameter line and hot tap will be constructed to connect FS-1 to the Endicott Pipeline. The FS-1 Pipeline is a Prudhoe Bay Unit-owned and operated line and will flow approximately 65,000 barrels per day. A new eight-inch (8") line and hot tap will be constructed to connect FS-2 to the Endicott Pipeline. The FS-2 Pipeline is also a Prudhoe Bay Unit-owned and operated line and will flow approximately 40,000 barrels per day. 2 Two new six-inch (6") lines with hot taps will connect the COTP to the Endicott Pipeline to provide approximately 16,000 barrels of PBU crude oil per day to serve as feedstock to the COTP and approximately 14,000 barrels per day of residual crude oil from the COTP back into the Endicott Pipeline. The purpose of these connections is to provide crude oil feedstock into the COTP while the EOA Oil Transit Line is being repaired I replaced. The COTP Plant performs essential functions for the PBU and other North Slope producing fields. It produces approximately 2,000 barrels per day of diesel fuel (and occasional jet fuel) for critical operational use on the North Slope. The diesel product is principally used as transportation fuel, heating fuel, electrical power generation fuel and as a source of non-freezing fluid to freeze-protect pipelines and wells. Diesel is used not only by the PBU in unit operations - it is also used by third-party contractors and other third-party users in the greater North Siope area. it is essentiai for health and safety purposes that the COTP be returned to operation prior to the onset of cold weather, at which time the increased demand may not be met by other supply options. ~~- Page 2 e e bp Prior to shutdown of the EOA Oil Transit Line, all liquid production leaving the Prudhoe Bay facilities was measured at the single Pump Station No.1 (PS-1) LACT meter (plus crude oil volumes withdrawn at the COTP). This measurement represented the known daily total liquid volume - and all crude oil facility meter readings upstream from this point were proportionally normalized so that they summed to this known amounP (after accounting for NGL volumes in the blended PS-1 stream). The proposed metering changes utilize the same concept. When connected to the Endicott Pipeline, the individual FS-1 and FS-2 meter readings will be similarly normalized back to the known LACT meter readings on the Endicott Pipeline system. This will occur for a period of time not to exceed twelve (12) months through the use of a "by-difference" method (described further below). After that time, the owners of the Endicott Pipeline have advised that if Prudhoe wishes to remain connected, the existing FS-1 and FS-2 meters will need to be upgraded to LACT meters for the purpose of custody transfer at these connections. At the time of start-up of the FS-1 and FS-2 connections, the existing flow meters at FS- 1 and FS-2 will be the identical meters that have been in use, and approved by your agencies for production allocation purposes, since start-up in 1977. These meters do not have fixed-volume prover loops installed4; instead, they will continue to rely upon the master meter system for proving - the same method of meter proving that has always been utilized at these facilities. During this interim period, a "by-difference" method will be used to determine the volume of oil collectively delivered by the FS-1 and FS-2 connections. All other meters measuring the inlet flow to the Endicott Pipeline meet industry standards for custody transfer; likewise, the outlet meter of Endicott Pipeline (located at PS-1) is a LACT meter. Thus, the difference between the accurately-measured outlet flows and the accurately-measured inlet flows represents the combined inlet flow contribution from FS-1 and FS-25 . ... 3 This approach created a daily GC/FS facility meter allocation factor used to normalize the upstream crude oil meter readings at FS-1, FS-2, FS-3, GC-1 and GC-2. The daily GC/FS meter allocation factor is a ratio equal to the PS-1 LACT meter plus the COTP supply meter minus the COTP return meter minus the NGL LACT meter at Skid 50 divided by the sum of the individual meter readings at FS-1, FS-2, FS-3, GC-1 and GC-2. 4 A fixed volume prover loop is the hallmark piece of equipment that makes a custody transfer turbine meter meet the standards established for a Lease Automatic Custody Transfer (LACT) meter system. 5 More specifically, the by-difference calculation will be the LACT meter reading at the outlet of the Endicott Pipeline (located at TAPS PS-1), minus the LACT meter reading on the inlet Endicott production stream (located on Endicott Island), minus the LACT meter reading on the inlet Badami production stream Page 3 bp e e o Attached are amended excerpts from the Presentation6 that you were shown on August 29th which outlines the specific mathematical calculations we intend to utilize until such time that the EOA Oil Transit Line is repaired I replaced. We intend to resume production from the EOA as soon as safely possible, and as such, your expeditious approval is requested. Let me know if you need any more information to obtain approval for the changes requested. Respectfully, Vl~a-C...~~ Nancy C. Foust Projects and Engineering Manager BP Exploration (Alaska) Inc. cc: Jane Williamson, Alaska Oil and Gas Conservation Commission Tom Maunder, Alaska Oil and Gas Conservation Commission Art Copoulos, Department of Natural Resources, Division of Oil and Gas Robynn Wilson, Department of Revenue, Director Tax Division Mike Hanus, ExxonMobil Mike Erwin, ConocoPhillips Alaska, Inc. ~.. Attachment 1 - Excerpts from August 29,2006 Presentation (updated) (located at the Badami Production Facilities), plus the custody transfer meter reading on the COTP Supply Pipeline minus the custody transfer meter reading on the COTP Return Pipeline. Using the by- difference method, all Endicott Pipeline gains and losses will be attributed solely to the collective FS-1 and FS-2 volume. Identification of the individual FS-1 volume and individual FS-2 volume will be done by apportioning the collective volume (derived through the by-difference method described above) on a proportional basis to the individua! FS-1 and FS-2 meter readings. 6 The Prudhoe Bay water volume calculation pertaining to FS-1 and FS-2 has been corrected since the time of the August 29th presentation, and is noted as such on the attached presentation. Page 4 e e Attachment B COTP Metering Request e '7 cJ()(p 1 . ¡ ''2- ~ - ¿,,¡J-i Yì e bp Mr. Bill Van Dyke, Acting Director Division of Oil and Gas Department of Natural Resources 550 West 7th Avenue, Suite 800 Anchorage, Alaska 99501 BP Exploration (Alaska) Inc. 900 East Benson Boulevard P.O. Box 196612 Anchorage, Alaska 99519-6612 (907) 561-5111 Mr. John Norman, Chairman Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501 Re: Request for Prudhoe Bay IPA Production Metering Changes to Accommodate EOA Facility Resumption at COTP Due to Shut-In Oil Transit Lines Dear Chairman Norman and Acting Director Van Dyke, BP Exploration (Alaska) Inc. (BPXA) as Operator of the Prudhoe Bay Unit requests authorization to alter the metering configuration utilized in the Prudhoe Bay Initial Participating Area (IPA) so that early restoration of production from the Eastern Operating Area (EOA) of the Prudhoe Bay field can occur. These changes are being sought due to the shutdown of the EOA Oil Transit Line which is undergoing repair / replacement. The changes requested in this application will allow for the resumption of diesel- making operations at the Crude Oil Topping Plant (COTP). This is one of three related applications for metering changes to accommodate EOA production resumption. The other two applications (filed separately) pertain to: 1) connection of Flow Station No. 1 (FS-1) and Flow Station No.2 (FS-2) to the Endicott Pipeline; and 2) re-routing of Flow Station No.3 (FS-3) production through the Lisburne Sales Oil Pipeline. The metering changes proposed in this application simply relate to COTP withdrawal of crude oil feedstock from the Endicott Pipeline, rather than from the EOA Oil Transit Line. Details of this arrangement are described in excerpts from the amended Presentation that you received on August 29th. (See Attachment 1.) Page 1 o e e bp Endicott Pipeline Connections: COTP Metering As you are aware, plans are underway to utilize" bypass" piping arrangements to connect FS-1 and FS-2 to the Endicott Pipeline - a regulated common carrier sales oil pipeline1. (See separate application.) Plans are also underway to connect the COTP to this pipeline.2 o With regards to the COTP, this facility utilizes positive- displacement custody transfer meters on its inlet and outlet streams, which, by-difference, are used to calculate the volume of crude oil withdrawn from this facility (and ultimately processed into diesel). These are the same meters that your agencies have approved for custody transfer purposes since start-up in 1977. Their application and use remains the same when now connected to the Endicott Pipeline as they were when originally connected to the EOA Oil Transit Line. Nothing changes with this arrangement other than the source of crude oil feedstock for the facility. _ Now CorIMClions othet CoIOf.-Exialing: Uno. 1 A new ten-inch (10") diameter line and hot tap will be constructed to connect FS-1 to the Endicott Pipeline. The FS-1 Pipeline is a Prudhoe Bay Unit-owned and operated line and will have a capacity of approximately 65,000 barrels per day. A new eight-inch (8") line and hot tap will be constructed to connect FS-2 to the Endicott Pipeline. The FS-2 Pipeline is also a Prudhoe Bay Unit-owned and operated line and will have a capacity of approximately 40,000 barrels per day. 2 Two new six-inch (6") lines with hot taps will connect the COTP to the Endicott Pipeline to provide approximately 16,000 barrels of PBU crude oil per day to serve as feedstock to the COTP and approximately 14,000 barrels per day of residual crude oil from the COTP back into the Endicott Pipeline. The purpose of these connections is to provide crude oil feedstock into the COTP while the EOA Oil Transit Line is being repaired I replaced. The COTP Plant performs essential functions for the PBU and other North Slope producing fields. It produces approximately 2,000 barrels per day of diesel fuel (and occasional jet fuel) for critical operational use on the North Slope. The diesel product is principally used as transportation fuel, heating fuel, electrical power generation fuel and as a source of non-freezing fluid to freeze-protect pipelines and wells. Diesel is used not only by the PBU in unit operations - it is also used by third-party contractors and other third-party users in the greater North Slope area. !t is essential for health and safety purposes that the COTP be returned to operation prior to the onset of cold weather, at which time the increased demand may not be met by other supply options. Page 2 e e bp o In terms of timing, we expect the COTP to be connected to the Endicott Pipeline before FS-1 and/or FS-2 are connected. During this period of time, Endicott will be the source crude for the COTP. After FS-1 and/or FS-2 are connected, source crude for the COTP will be (mathematically) deemed to have been supplied by Prudhoe Bay. Attached are amended excerpts trom the Presentation3 that you were shown on August 29th outlines the specific mathematical calculations we intend to utilize with the COTU until such time that the EOA Oil Transit Line is repaired / replaced. We intend to resume production from the EOA as soon as safely possible, and as such, your expeditious approval is requested. Let me know if you need any more information to obtain approval for the changes requested. Respectfully, 1Jl~ ê. ilJ Nancy C. Foust Projects and Engineering Manager BP Exploration (Alaska) Inc. cc: Jane Williamson, Alaska Oil and Gas Conservation Commission Tom Maunder, Alaska Oil and Gas Conservation Commission Art Copoulos, Department of Natural Resources, Division of Oil and Gas Robynn Wilson, Department of Revenue, Director Tax Division Mike Hanus, ExxonMobil Mike Erwin, ConocoPhillips Alaska, Inc. Attachment 1 - Excerpts from August 29,2006 Presentation (updated) 3 The Prudhoe Bay water volume calculation pertaining to FS-1 and FS-2 has been corrected since the time of the August 29th presentation. and is noted as such on the attached presentation. Page 3 e e Attachment C AOGCC and DNR Approvals e ~1T~1Tæ (ID~ ~~~~æ~ e .4.I,ASIiA OIL AlQ) GAS CONSERVATION COMMISSION 333 W. 7'" AVENUE, SUITE 100 ANCHORAGE. ALASKA 99501-3539 PHONE (907) 279·1433 FAX (907) 276-7542 ADMINISTRATIVE APPROVAL CO 341E.02 ADMINISTRATIVE APPROVAL CO 559.03 FRANK H. MURKOWSKI. GOVERNOR Ms. Nancy C. Foust Projects and Engineering Manager BP Exploration (Alaska) Inc. P. O. Box 196612 Anchorage, AK 99519-6612 Re: BPXA's request for approval of custody transfer metering and facilities allocation changes to accommodate production resumption at Prudhoe FS-I and FS-2 Dear Ms. Foust: By letter received on September 12, 2006, BP Exploration (Alaska) Inc. (BPXA) as operator of the Prudhoe Bay Unit, requested authorization from the Alaska Oil and Gas Conservation Commission (Commission) and the Department of Natural Resources, Division of Oil and Gas, to alter the metering configuration utilized in the Prudhoe Bay Initial Participating Area (IP A) in order to restore production from the Eastern Operating Area (EOA) of the Prudhoe Bay field. The proposed metering changes affect the location of the Lease Automatic Custody Transfer (LACT) meters for the production from the Prudhoe and Put River Oil Pools produced at Flow Station 1 (FS-l) and Flow Station 2 (FS-2) and require changes to the individual FS-l and FS-2 facility volume allocation procedures but do not affect current well testing or wen allocation procedures. BPXA plans to install tie-ins from FS-l and FS-2 to the Endicott Pipeline, a regulated common carrier sales oil pipeline. BPXA in a separate application requested approval for tie-in of the Crude Oil Topping Plant (COTP) to the Endicott Pipeline. These changes are being sought due to the shutdown of the EOA Oil Transit Line which is undergoing repair and replacement. The proposed metering changes do not result in any methodological difference to the manner by which production allocation is currently handled within the Prudhoe Bay Field. Prior to shutdown of the EOA Oil Transit Line, all liquid production leaving the Prudhoe Bay facilities was measured at the single Pump Station No. 1 (PS-l) LACT meter (plus crude oil volumes withdrawn at the COTP). This measurement represented the known daily total liquid volume - and all crude oil facility meter readings upstream from this point were proportionally normalized so that they summed to this known amount (after accounting for NGL volumes in the blended PS-l stream). CO 341E.02, CO 559.03 September 19, 2006 Page 2 of2 e e Endicott and Badami Field production is measured for custody transfer at LACT meters located on those properties. No change will be associated with the determination of those volumes. A LACT meter at PS- I also measures the combined Endicott and Badami flow streams at the outlet of the Endicott Pipeline. The combined FS-l and FS-2 production, when flowing into the Endicott Pipeline, is calculated through difference between the accurately measured outlet flows at the Endicott and Badami fields and the outlet meter of the Endicott Pipeline (after subtracting the crude oil volumes withdrawn at the COTP). As there is excess capacity within the Endicott Pipeline, there will be no backout of production from any of the fields. This requested variance in metering for custody transfer should result in equal accuracy in measuring hydrocarbons severed from the Prudhoe Bay Unit. In accordance with 20 AAC 25.2280) and 20 AAC 25.230 the Commission approves BPXA's request for custody transfer metering and facilities allocation changes, as described in BPXA's September 12, 2006 application, to accommodate production resumption at Prudhoe FS-I and FS-2. All other well testing, allocation, and reporting requirements for the Prudhoe Bay Field shall be in accordance with applicable Commission regulations and orders and are not affected by this order. This order expires on October 1, 2007. As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. A person may not appeal a Commission decision to Superior Court unless rehearing has been requested. DONE at Anchorage, Alaska and dated September 19, 2006. The Alaska Oil and Gas Conservation Commission c;f.,AOlL~ ~;¡'~\ fì'RV<'J . Y \¡;;, !! / /<\~'\_'¡ ~ 0,·.,,·, / .. . , p.~~lr:i/""·., ' '-:;{¡ f.. .,. ..... "" .¡t-J /' I" : . ~'~W:'-· '\~~p~i.~0:; '".' , "V~-- . -<1i:~g;,~?/:::: .", y" ' .......~.,. Daniel T. Seamount, Jr. Commissioner e ~1r fÃ\ 1rŒ (Q) ~ fÃ\ ~fÃ\ ~ [{fÃ\ e ALASIiA OIL AND GAS CONSERVATION COMMISSION FRANK H. MURKOWSKI, GOVERNOR 333 W. .,... AVENUE. SUITE 100 ANCHORAGE. ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 September 19,2006 Ms. Nancy C. Foust Projects and Engineering Manager BP Exploration (Alaska) Inc. P. O. Box 196612 Anchorage, AK 99519-6612 Re: BPXA's request for production metering changes to accommodate EOA facility resumption at COTP due to shut-in of oil transit lines Dear Ms. Foust: By letter received on September 12, 2006, BP Exploration (Alaska) Inc. (BPXA) as operator of the Prudhoe Bay Unit, requested approval from the Alaska Oil and Gas Conservation Commission (Commission) and the Department of Natural Resources, Division of Oil and Gas for changes to the metering configuration to allow for resumption of diesel-making operations at the Crude Oil Topping Plant (COTP). BPXA requests that production from the Endicott pipeline be used for feed source of the COTP until the EOA production from FS-l and FS-2 is resumed. Tie-ins of the FS-l and FS-2 production to the Endicott Pipeline are also planned to allow resumption of production from these flow stations (the Commission has approved BPXA's request for custody transfer metering and facilities allocation changes to accommodate facility resumption at FS-l and FS-2). No changes in the metering configuration at the COTP are planned. These meters are positive displacement custody transfer meters on its inlet and outlet streams, which, by difference, are used to calculate the volume of crude oil withdrawn from this facility and ultimately processed into diesel. The procedures have previously been approved for custody transfer purposes since start-up in 1977. Nothing changes with this arrangement other than the source of crude oil feedstock for the facility. Ms. Nancy C. Foust September 19,2006 Page 2 of2 e e BPXA's metering configuration at the COTP has not changed and continues to meet the requirements of 20 AAC 25.228. Accordingly, as to this partÎcular reconfiguration, AOGCC approval is not required. DIVISION OF OIL AND GAS e l-scANK H. MURKOWSKI, GOVERNOR ©u&urn @~ &~©[Qß DEPARTMENT OF NATURAL RESOURCES 550 WEST 7TH A VENUE. SUITE BOO ANCHORAGE. ALASKA 99501-3560 PHONE: (907) 269-8800 FAX: (907) 269-8938 CERTIFIED MAIL RETURN RECEIPT REQUESTED September 28, 2006 Nancy C. Foust Projects and Engineering Manager BP Exploration (Alaska) Inc. P.O. Box 196612 ~chorage,AJaska 99519-6612 Subject: Prudhoe Bay Unit--Requests for Prudhoe Bay Initial Participating Area (IP A) Production Metering Changes to Accommodate EOA Facility Resumption at FS-l and FS-2 and Resumption of Operations at the Crude Oil Topping Plant (COTP) Due to Shut-in Oil Transit Lines Dear Ms. Foust: The State of AJaska, Department of Natural Resources, Division of Oil and Gas (the Division) reviewed the attached (undated) letters, wlùch it received on Tuesday, September 12, 2006, requesting expeditious approval for metering changes to allow resumption of production at FS-l and FS-2 and resumption of operations at the Crude Oil Topping Plant (COTP). We also considered the information BP Exploration (Alaska) Inc. (BPXA) provided to the. Division at the "metering and allocation" meeting held on Tuesday, August 29th. On a related matter, the Division sent the attached September 11,2006, letter to BPXA expressing its desire to continue using the TAPS PS#1 as the point of custody transfer for all its PBU royalty oil and also requesting additional information about volume accounting for production routed to the COTP. To date, we have not received a written reply to that letter, wlùch is hereby incorporated into this letter. Despite existing questions and uncertainties, including those set out in the Division's September 11 th letter, regarding the effects on the State of granting your requests, and subject to the conditions and reservations set out below, the Division approves the metering changes proposed in your letters, but solely for the purposes of expeditiously resuming production at FS-1 and FS-2 to the TAPS PS# 1 using the Endicott Pipeline and expeditiously resuming operations of the COTP using oil nom the Endicott Pipeline. The Division approves your proposal to deem the net crude oil withdrawn at the COTP from the Endicott Pipeline as PBU oil, provided that there is sufficient PBU crude oil in the Endicott Pipeline to equal or exceed the net amount withdrawn at the COTP from the Endicott Pipeline. "Develop, COllserve, mid El'¡,allce Natural Resources fOT Presel1t alld Futllre Alaskalls. " e e These expedited approvals are effective immediately and continue through September 30, 2007, or until the damaged BOA Oil Transit Line is repaired or replaced, and operational, whichever occurs first. Notwithstanding these approvals, the State asserts here, and reserves the right to assert in any future decision or proceeding, that 1) the custody transfer point for all PBU royalty oil (both royalty in value and royalty in kind) remains at the TAPS PS# 1, and 2) it is not responsible for pipeline nominations, tariffs, line fill charges, or other costs associated with BPXA's use of the Endicott Pipeline to resume production at FS-l and FS-2, and to resume operations at the COTP. These approvals are for BPXA's requested metering changes only and should not be construed as approval of any other aspect of the construction of the FS-l, FS-2, and COTP bypass lines, or EOA Oil Transit Line repair or replacement. The State reserves the right to protest or otherwise challenge the new Endicott Pipeline tariff rates and tariff amendments on any basis other than the fact that the tariffs and tariffamendments were filed with less than the required 90 day or 30 day notice periods, and to seek reimbursement of or compensation for the new Endicott Pipeline tariffs and costs. And, finally, these approvals do not constitute a waiver of any rights or remedies the State has under the State oil and gas leases, applicable agreements or law resulting fÌ'om the PBU shutdown. Sincerely, William Van Dyke Acting Director Attachments CC: John Norman, AOGCC Jeff Landry, DOL Jim Stouffer, DNR Art Copoulos, DNR e e Attachment D RCA Extension Request e e R R,C.A fCc/VEO STATE OF ALASKA 01 JlJN-4 0. 'II ï'1 3: S6 THE REGULATORY COMMISSION OF ALASKA Before Commissioners: Kate Giard, Chainnan Dave Harbour Mark K. Johnson Anthony A. Price Janis W. Wilson In the Matter of the Joint Application filed by ENDICOTT PIPELINE COMPANY and BP Exploration (Alaska) Inc. for Expedited Approval of a Connection Permit for the Prudhoe Bay Unit and Endicott Pipeline System (FS-2 Pipelines) In the Matter of the Joint Application filed by ) ENDICOTT PIPELINE COMPANY and ) BP Exploration (Alaska) Inc. for Expedited ) Approval of a Connection Permit for the ) Prudhoe Bay Unit and Endicott Pipeline ) System (Topping Plant Pipelines) ) ) ) ) ) ) ) ) ) ) P-06-11 P-06-12 REQUEST FOR EXTENSION OF TEMPORARY CONNECTION PERMITS FOR FS-2 PIPELINE AND TOPPING PLANT PIPELINES INTRODUCTION Endicott Pipeline Company ("EPC"), as owner of the Endicott Pipeline System (flEPS"), and BP Exploration (Alaska) Inc. ("BPXA"), as operator of the Prudhoe Bay Unit ("PBU"), hereby jointly request an extension of the temporary connection permits in ....._OF Guess&Rudd .... the above-referenced dockets: PBU Flow Station 2 ("FS-2") (Docket P-06-12) and the 510 L STREET SEVeNTH FLOOA :;HOfIAGE. ALASKA 119501 LEPHONE (907) 783-2200 \CSIMlLE (907) 1113-2299 REQUEST FOR EXTENSION OF TEMPORARY CONNECTION PERMITS Page 1 of 10 . P-06-I I & P-06-12 ....-... Guess&:Rudd P." e e PBU Crude Oil Topping Plant ("COTP") (Docket P-06-11) to the EPS, which the Commission previously granted pursuant to Order No. 1 in these consolidated Dockets.l In Order No.1, the Commission granted temporary connection authority for a period of twelve months for PBU Flow Station I ("FS-I "), FS-2 and the COTP, wlúch will expire on September 7,2007. For the reasons explained below, EPC and BPXA request that the temporary connection authority granted by Order No. 1 for FS-2 and the COTP be extended until December 31, 2008. EPC and BPXA do not request an extension of temporary connection authority for the FS-I Connection Agreement (Docket P-06-13). DISCUSSION On August 30, 2006, EPC and BPXA jointly applied for expedited approval of connection pennits for the PBD FS-2 pipeline2 and the PBD COTP pipelines3 to the BPS. The FS-2 application was filed to provide for an alternative means of transporting crude oil produced ITom PBD FS-2 to the Trans Alaska Pipeline System ("TAPS") Pump 1 Order Granting Temporary Motions for Expedited Consideration, Granting Temporary Pemùts for Connection, Designating Commission Panel and Docket Manager, and Appointing Administrative Law Judge, P-06-11(l)/P-06-12(l)/P-06-13(1), September 7, 2006 ("Order No. 1 If). 2 Joint Application of Endicott Pipeline Company and BP Exploration (Alaska) Inc. for Expedited Approval of Connection Pennit for Prudhoe Bay Unit and Endicott Pipeline System (FS-2 Pipeline), and Motion for Expedited Consideration of Connection Permit Application (FS-2 Pipeline), filed August 30, 2006. 3 Joint Application of Endicott Pipeline Company and BP Exploration (Alaska) Inc. for Expedited Approval of Connection Pennit for Prudhoe Bay Unit and Endicott Pipeline System (Topping Plant Pipelines), and Motion for Expedited Consideration of Connection Permìt Application (Topping Plant Pipelines), filed August 3û, 2ÛÛÓ. 510 L STREET sevENTH FLOÓFl REQUEST FOR EXTENSION OF TEMPORARY CONNECTION PERMITS ::HORAGE, "LASKA 99501 LEPHONE (907) 7113·2200 Page 2 of 10n\CSlMILIi (907) 183-2299 P-06-11 & P-06-12 --.. Guess&Rudd P"" 510 L STREeT SEVeNTH FLOOR ::HOfIAGE. Al.ASKA 99501 LEPHONE (907) 7N-2200 ICSIMlLE (907) 793-22" e e Station No.1 ("PS-l ") while the 30-inch section of the PBU Eastern Operating Area ("EOA") Oil Transit Line ("OTL") between FS-2 and FS-I was out of service. The temporary authorization that the Commission granted for the FS-2 connection facilitated the transport ofPBU production that would otherwise have remained shut-in while the 30-inch EOA OTL was out of selVice. The COTP pipelines also connect to the 30-inch EOA OTL that was out of selVice. This necessitated the connections to the EPS for the COTP in order to provide a temporary alternative crude oil feedstock line and return line for the COTP. The COTP refmes diesel and jet fuel for critical North Slope operations, including the provision of heat and power for buildings necessary to assure human health and safety. The temporary authorization for the COTP interconnections was therefore critical for numerous North Slope operations. When the Commission issued Order No. 1 on September 7, 2006, the Commission stated that the temporary pennits would remain in effect for a period of not more than twelve months from the date of the order.4 On September 13,2006, by which time BPXA had gathered sufficient line inspection data, BPXA requested the U.S. Department of Transportation ("DOT") to approve the re-start of the 34-inch segment of the EOA 4 Order No. I at 7, Ordering Paragraph No.5. The Commission stated: The temporary pennits will remain in effect for not more than 12 months from the date of this order. If operations on these pipelines will continue for more than 12 months, BPXA and Endicott shall fùe with the commission applications for pennanent permits for connection no later than ]W1e 7, 2007. Id.; see also Errata Notice to Order No.1, dated September 11,2006. REQUEST FOR EXTENSION OF TEMPORARY CONNECTION PERMITS Page 3 of 10 P-06-11 & P-06-12 ""'''''''''''OF Guess&Rudd P.Co e e OTL downstream of FS-l. By letter dated September 22,2006 DOT approved the re- start. The line was re-started almost immediately thereafter, obviating the need to bring the approved FS-l connection to final completion. The Commission was notified of this action via letter dated November 14, 2006. The 30-inch segment of the EOA OTL from FS-2 to FS-I, however, remains out of service. A process for evaluating this OTL is well underway by the PBU Owners, but the identification and evaluation of a permanent solution and implementation of the selected option will take longer than the 12-month temporary connection authorization granted pursuant to Order No.1. Based on the cwrent design review process and discussions with state and federal regulators, BPXA believes the fmal selected option will take until the end of 2008 to fully implement. At that time, the bypass lines would not be dismantled. Instead, the bypass lines will be isolated and the connections would be blind flanged and left in place for emergency use should the need arise in the future. In that event, EPC and BPXA would request the Commission's temporary emergency authorization for such use. The FS-2 connection pipeline has been transporting an average of over 30 thousand barrels per day ofPBU production from FS-2 over the past six months. As with the original approval, the FS-2 temporary connection is necessary to continue to operate the FS-2 facility and the many wells that produce through it. As a result, EPC and BPXA are requesting that the temporary authorizations for FS2 be extended until December 31, 2008. 510 L STReET SEVeNTH FLOOR REQUEST FOR EXTENSION OF TEMPORARY CONNECTION PERMITS CHOFlAOE, AlASKA 995D1 Page 4 of 10 :LEPHONe (907) 793-22OD 'CSIUII.E (907) 793-2299 P-06-11 & P-06-12 .....-.. Guess&:Rudd p.c. e e Because the connection is the point of custody transfer for the oil as it leaves Prudhoe Bay, BPXA also sought waivers from the Department ofNaturaI Resources ("DNR") and the Alaska Oil and Gas Conservation Conimission ("AOGCC") of the requirement to have custody transfer quality metering (known as "LACT" metering) at this location. DNR and the AOGCC granted temporary waivers, both of which expire October 1,2007. EPC and BPXA also agreed in Section 6 of the FS-2 Connection Agreement to a twelve-month period before custody transfer metering could be required by EPC. BPXA intends to seek necessary amendments and file for extensions of the temporary waivers of the requirement for LACT metering from DNR and the AOGCC waivers for a time equal to this request to the Commission -- through December 31, 2008. As described in the August 30, 2006 application, new Quality Bank sampling equipment has been installed and is operating at the Endicott production facilities on the stream known as "Endicott Main." This equipment facilitates the accurate computation of Quality Bank stream value differentials pertaining to the FS-2 and COTP connections. The COTP interconnections are extremely important because they enable the PBU and other North Slope operations to sustain critical operational activities that require diesel and jet fuel. This includes fuel for power generation and heating, which are essential to human health and safety on the North Slope, as well as diesel to freeze protect pipelines and wells. As discussed in the August 30, 2006 joint application, diesel from the PBU COTP is critical, not only for the PBU, but also for third-party contractors and other fields BPXA operates on the North Slope. Since these connections are also linked to the 30-inch out-of-service EOA OTL, an extension of the temporary connection 510 L STREeT seveNTH FLOOR REQUEST FOR EXTENSION OF TEMPORARY CONNECTION PERMITS ;HOFlAGE. ALASKA 99501 Page 5 of 10 LEPHONE (907) 793-2200 ICSIMILE (807) 793-2289 P-06-11 & P-06-12 uw.......... Guess&Rudd "'" 5'0 L STREET SEVENTH FLOOR ~HORAGE. ALASKA 98501 LEPHONE (807) 783-2200 ICSIMILE (907) 793-2298 e e permits for the COTP interconnections is essential, both for the operation of the PBU and for these other fields as well. Therefore, EPC and BPXA are requesting an extension of the COTP temporary connection permit until December 31, 2008. Public Interest Support for Requested Extension. There is a substantial public interest in extending the temporary authorization to use the FS-2 and COTP connections until December 31, 2008 to allow time for implementation of a permanent solution for the out of service EOA OTL. First, it will permit PBU FS-2 production to continue to flow via EPC to TAPS. Second; it will allow continued access to feedstock crude for the COTP, wmch provides critically necessary products such as diesel and jet fuel for all of BPXA's operations on the North Slope as well as for other tlUrd parties. The Commission recognized this substantial public interest in granting the temporary connection permits pursuant to Order No.1. This request for an extension of the temporary connection permits for FS-2 and the COTP will permit the continued operation of PBU FS-2 and the COTP without intermption until a permanent solution is implemented. CONCLUSION For the reasons stated above, EPC and BPXA jointly request the Commission to extend the temporary connection permits for FS-2 and the COTP until December 31, 2008. REQUEST FOR EXTENSION OF TEMPORARY CONNECTION PERMITS Page 6 of 10 P-06-11 & P-06-12 e e DATED at Anchorage, Alaska, this 'I~daY of June, 2007. GUESS & ROOD P.C. Louis R Veerman Michael S. McLaughlin 510 L Street, Suite 700 Anchorage, AK 99501 (907) 793-2200 By: ~ :f?~A.- Louis . Veennan ' Alaska BarNo. 7610141 COUNSEL FOR ENDICOIT PIPELINE COMPANY DATED at Anchorage, Alaska, this .., ~ day of June, 2007. BP EXPLORATION (ALASKA) INC. Randal G. Buckendorf, Senior Attorney 900 East Benson Boulevard Anchorage, Alaska 99519-0848 BY€:/~ Alaska Bar No. 940 COUNSEL FOR BP EXPLORATION (ALASKA) INC. .....""""'.. Guess&:Rudd p.c. 510 L STREET SEVENTH FLOOR REQUEST FOR EXTENSION OF TEMPORARY CONNECTION PERMITS CHORAOE. ALASKA 911501 P 7 f ;LEPHONE 1907) 783-2200 age 0 10 '!:SlMILE (907) 793-2299 P-06-11 & P-06-12 e e CERTIFICATE OF SERVICE This is to certify that on the ÿi!xhy of June, 2007, a true and correct copy of the foregoing was mailed to the persons identified on the following service list. (7~.A4~~ June M. Hunter .........."OF Guess&Rudd P." Christian Anderson BP Exploration (Alaska) Inc. P.O. Box 196612 Anchorage, AK 99519-6612 Kevin Hulsey ConocoPhillips 600 N. Dairy Ashford CH3090 Houston, TX 77079 Tariff Coordinator Energy Analysis International Inc. 12000 N Pecos Street, Ste. 310 Westminster, CO 80234 Ryan Hubbell Flint Hills Resources Alaska LLC 4111 East 37th Street North Wichita, KS 67220 Jennifer Burzinski Accenture 3900 C Street Suite 901 Anchorage, AK 99503 Eliana Uribe Jim Stouffer Department of Natural Resources Division of Oil and Gas 550 W. Seventh Avenue Suite 1100 Anchorage, AK 99501-3560 Emiline Gome Enbrid~e Pipelines Inc. 3000 FIfth Avenue Place ill), 1 C!i- I:::h·..... ~w ""T....., .l.u.. ..,.....""...,. .., w.. 'Calgary AB T2P 3L8 SERVICE LIST Susan Costanzi Exxonmobil Pipeline Company 800 Bell Street Suite 1927-A Houston, TX 77002 Louis R Veennan Michael S. Mclaughlin Guess & Rudd 510 L Street Suite 700 Anchorage, AK 99501 Edith Brashares Horst Frisch Inc. 2600 Virginia Avenue NW Suite 300 Washington DC 20037 Bernard W. Washington ConocoPhillips Transportation Alaska Inc. 700 G Street ARO 966 PO Box 100360 Anchorage, AK 99510 Steven D. Devries Assistant Attorney General State of Alaska Department of Law RAPA 1031 West Fourth Avenue Ste. 200 Anchorage, AK 99501 Hawkins Gas Consultants L TD 55 Suncastle Bay SE Calgary AB T2X 2Ml Tariff Coordinator Marathon Ashland Pipe Line LLC 539 S. Main Street Findlay, OH 45840 510 L STREET SEVENTH FLOOR REQUEST FOR EXTENSION OF TEMPORARY CONNECTION PERMITS ::HORAGE. ALASKA 98S01 LEPHONE (907) 7_00 Page 8 of 10 \CSIMILE (1107) 793-2289 P-06-11 & P-06-12 e e Joletta Bennett Shell Pipeline Company P.O. Box 2648 Room 14117 TSP Houston, TX 77252-2648 Donald A. Page Unocal Alaska 909 West 9th Avenue Anchorage, AK 99501 Seldon Fletcher Unocal Pipeline Company 4314 Mar Gate Sugarland TX 77478 Albert S. Tabor Jr. Vinson & Elkins 100 I Fannin Street 2300 First City Tower Houston, TX 77002-6760 Tiffany Van Horn Flint Hills Resources Alaska LLC 1100H&HLane North Pole, AK 99705 Randal Buckendorf Counsel for BP Exploration (Alaska) Inc. 900 East Benson Blvd. P.O. Box 196612 Anchorage, AK 99508 Rocky Leblanc Unocal Pipeline Company P.O. Box 5076 Sugarland, TX 77487-5076 David A. Burrough Management Committee Representative Amoco Endicott Pipeline Company 200 Westlake Blvd. Suite 923 Houston, TX 77079 Mike Utsler Vice President BP Exploration (Alaska) Inc. 900 East Benson Blvd. Suite 330B Anchorage, AK 99508-4254 Charles J. Coulson President BP Pipelines (Alaska) Inc. P.O. Box 190848 Anchorage, AK 99519-0848 Andrew Phi1lip Milnes BP Oil SUfply Co. Canterra I 28301 Ferry Road WarrenviIle, IL 60555 Glenn C. Fredrick Union Oil Company of California Chevron USA Inc. P.O. Box 196247 909 W. Ninth Avenue Anchorage, AK 99519-6 James Merry Doyon Linuted 1 Doyon Place Suite 300 Fairbanks, AK 99701-2941 Jeff Ray EPC Management Committee Representative Exxonmobil Pipeline Company P.O. Box 2220 (pL-EMB-653 A) 800 Bell Street Houston, TX 77002 Karen Kennedy ConocoPhillips Alaska Inc 700 G Street P.O. Box 100360 Anchorage, AK 9950 J. R.L. Rix Vice President Exxonmobil Alaska Production Inc. P.O. Box 196601 3301 C Street Suite 400 Anchorage AK 99519-660 I Kevin Radke Refine!.¥, Manager Flint HIlls Resources Alaska LLC 1100 H&H Lane North Pole, AK 99705 LAW_IF Guess&Rudd P.Co 510 L STREET SEVENTH FLOOR REQUEST FOR EXTENSION OF rnMPORARY CONNECTION PERMITS CHORAGE. ALASKA _01 :LEPIiONE (907) 798-2200 Page 9 of 10 'CSIMILI! (807) 793-2299 P·06-11 & P-06-12 ....._"" Guess&:Rudd ..c. 5.0 L STREET . SEVENTH FLOOR CHOIlAQE. ALASKA 99501 LEPHONE (1107) 793-2200 'CSIMILE (907) 7!13-22!19 e e Jacquelyn Luke VP & General Counsel NANA Regional Corporation Inc. 1001 East Benson BoUlevard Anchorage, AK 99508 Leonard C. Gurule Senior Vice President Forest Oil CO!poration 310 K Street Suite 700 Anchorage, AK 99501 Karl H. Endries Vice President & Secretary Unocal Pipeline Company 6001 Bollmger Canyon Road Room T3200 San Ramon, CA 94583 Lawrence Ostrovsky Assistant Attorney General State of Alaska Department of Law 1031 West Fourth Avenue Ste. 200 Anchorage, AI( 99501 James D. Decker Senior Attorney BP Pipelines (Alaska) Inc. 900 E. Benson Blvd. P.O. Box 190848 Anchorage, AK 99519-0848 f:\DA T A\3482\71\PleadiDg\08 Request for Extalsion of Temporary ConnectioD Permits.doo REQUEST FOR EXTENSION OF TEMPORARY CONNECTION PERMITS Page 10 oflO P-06-11 & P-06-12 ~12 l ,... ,-,vuuuJ.HS..U..l-L6 "PP" v.. U.l . . Subject: FW: Commingling approval From: Cammy Taylor <cammy_taylor@dnr.state.ak.us> Date: Fri, 13 Apr 200709:25:07 -0800 To: Jody Colombie <jody_colombie@admin.state.ak.us> CC: Cathy Foerster <cathy_foerster@admin.state.ak.us>, Alan Birnbaum <alan _ bimbaum@law.state.ak.us> Sharri Gould told me yesterday that they needed to correct the well names that were referred to in their application to commingle production from IP A production with Lisburne production. Here are the correct names. I sent the e-mail to Dave Roby this morning, but just learned that he is out of the office. Thanks, Cammy From: Gould, Sherri L [mailto:Sherri.Gould@bp.com] Sent: Friday, April 13, 2007 8:27 AM To: Cammy Taylor Subject: RE: Commingling approval Hi Cammy, Great to meet you tool Here are the correct well names. L2-03A L2-07 A L2-08A L2-11 L2-13A L2-18A Thanks, Sherri From: Cammy Taylor [mailto:cammy_taylor@dnr.state.ak.us] Sent: Thursday, April 12, 2007 4:37 PM To: Gould, Sherri L Subject: Commingling approval Sherri, It was great to meet you today. If you could e-mail me the correct well name/numbers for those 6 IPA wells I can add them to the approval letter and try to get it signed tomorrow. Thanks, Cammy Cammy Oechsli Taylor Petroleum Land Manager Depa..rtment of Natural Resources Division of Oil and Gas 550 W. 7th Ave., Ste 800 Anchorage, AK 99501-3510 907-269-8817 1 of! 4/13/2007 9:26 Mv 41=11 DIVISION OF OIL & GAS . SARAH PALIN, GOVERNOR ~lJÆlJ~ @, ÆßLß~~ DEPARTMENT OF NATURAL RESOURCES 550 WEST 7TH AVENUE, SUITE 800 ANCHORAGE, ALASKA 99501-3560 PHONE: (907) 259-8800 FAX: (907) 269-B938 CERTIFIED MAIL RETURN RECEIPT REQUESTED April 12,2007 Mark C. Weggeland GPMA Resource Manager BP Exploration (Alaska) Inc. 900 East Benson Boulevard P.O. Box 196612 Anchorage, AI( 99519-6612 Re: Request to Commingle Production fÌom the Initial Participating Area with Lisburne Participating Area Production Dear Mr. Weggelal1d: By Jetter dated Apri12, 2007, BP Exploration (Alaska) Inc. (BPXA), as Operator ofthe Initial Participating Area (IP A) within the Prudhoe Bay Unit (PBU), requested authorization to commingle a portion of the production from the IPA of the PBU with production fÌom the Lisburne' Participating Area (LP A) that is processed through the Lisburne Production Center (LPC). Six IPA wells (L2-03A, L2-07A, L2-08A, L2-11, L2-13A, and L2-18A) located on the Lisburne L2 pad are currently connected to DS-18 by a pipeline and processed at FS-I. These six wells are currently cycled on and off, depending on whether their marginal gas oil ratio (GOR) is competitive with lower GOR production at the FS-I processing facility. Because the LPC is not currently gas- constrained, BPXA proposes to re-route this partially shut-in production through the L2 pad to the LPC processing facility and maintain full-time production from these wells. The Division of Oil and Gas (Division) approves BPXA's request to commingle production fÌom the IPA with production rrom the LPA with the following conditions: (a) BPXA shall report production from the six IP A wells at the LPC as IP A production and include it on the IP A production reports; (b) BPXA shall report these volumes to the Division using selling arrangement number 207002FOOO on the PRUD and PGAS accounting tmit oil operator reports (01); (c) production fÌom PBU IP A wells to the LPC shall be detennined and allocated in accordance with the GPMA metering and allocation procedures; (d) NGLs removed from gas produced by these PBU IPA wells at the LPC shall be accounted for and reported as IPA NGLs; (e) BPXA shall provide the Division the appropriate NGL yield for IP A NGLs produced at the LPC within 10 days of the detennination and provide the Division with tJ1e annual GPMA NGL aliocation update; and (t) the updated Lisburne POD, due in June 2007, shall incorporate a description of operations associated with these six wells. "Develop, Coltserve, altd EII/lallce Natural Resoltrces for Prese1lt alld Flttllre Alaskalls. " . . Division of Oil & Gas 4/13/07 Page 2 of2 A person affected by this decision may appeal it, in accordance with 11 AAC 02. Any appeal must be received within 20 calendar days after the date of "issuance" of this decision, as defined in 11 AAC 02.040 (c) and Cd), and may be mailed or delivered to Tom Irwin, Commissioner, DNR, 550 W. ih avenue, Suite 1400, Anchorage, Alaska 99501; faxed to 1 -907-269-8918, or sent by electronic mail to dnrappealsrædnr.state.ak.us . This decision takes effect immediately. An eligible person must first appeal this decision in accordance with 11 AAC 02 before appealing this decision to Superior Court. A copy of 11 AAC 02 may be obtained from any regional information office of the Department of Natural Resources. If you have any questions regarding this decision, contact Cammy Taylor with the Division at 907- 269-8817. ? Kevin R. Banks Acting Director cc: Sherri Gould, BPXA Sam French, BPXA Gary Benson, BPXA Ted Cahalane, BPXA Tim Verseput, BPXA Eric Reinbold, ConocoPhillips Gary Forsthoff, Chevron Hank Bensmiller, ExxonMobil John Norman, AOGCC Dave Roby, AOGCC Tom Maunder, AOGCC John Iversen, DOR Cammy Taylor, DNR Jim Stouffer, DNR Jeff Landry, DOL :W10 j¡ iQ;'P··J """J ". . . BP Exploration (Alaska) Inc, 900 East Benson Boulevard PO. Box 196612 Anchorage, Alaska 99519-6612 (907) 561-5111 April 2, 2007 Mr. Kevin Banks, Acting Director Division of Oil and Gas Department of Natural Resources 550 West 7th Avenue, Suite 800 Anchorage, AK 99501 Mr. John Norman, Chairman Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 RE: Request to Commingle Production from the Initial Participating Area with Lisburne Participating Area Production Dear Chairman Norman and Acting Director Banks: BP Exploration (Alaska) Inc. (BPXA), as Operator ofthe Initial Participating Area (IP A) within the Prudhoe Bay Unit (PBU), requests authorization, through Administrative Amendment to Conservation Orders 362A and 341 E, to commingle a portion of the production fÌom the IP A of the PBU with the Lisburne Participating Area (LP A) production through surface facilities at DS- 18, Lisburne L2 pad and LPC processing facilities. Currently six IP A wells are located on the Lisburne L2 pad, but are connected to DS-18 by a pipeline. These six wells are: L2-11, L2-13, L2-07, L2-03, L2-08 and L2-18. All six wells are currently cycled on and off, depending on whether their marginal GOR is competitive with lower GOR production at the FS-l processing facility. BPXA has identified a way, because the LPC is not currently gas-constrained, to re-route this partially shut-in production to LP A facilities and maintain full-time production. The LPC also has a lower marginal GOR than FS-l when it is gas-constrained. BPXA plans to install a jumper line that will re-route the IP A production from these six wells through the L2 pad to the LPC. Production from these IP A wells will be commingled with LP A fluids at the L2-Pad and delivered to the LPC processing facility. All wells will have the ability to be well tested separately. According to our current schedule, the jumper line could be in place and the wells ready to commence production as early as April 16, 2007. Figure 1 is a diagram of the facilities and pipelines involved. The intent is for the commingling to continue indefinitely. The planned engineering design includes simple valving that provides the ability to reverse production back to the IP A should that become desirable in the future. This project will also allow Lisburne to recover a portion of the LP A gas production that is currently exported to the GC-l IP A processing facility and injected into the Prudhoe reservoir. This will assist in voidage replacement in the Lisburne reservoir. A portion of the Lisburne produced gas currently is exported for use as lift gas and gas cap injection gas in the Point McIntyre field. Point McIntyre production routed through GC-l is not returned to GPMA reservoirs. . . Mr. Kevin Banks Iv1r. John Norman April 2, 2007 Page 2 For royalty and tax purposes, production fÌom PBU IP A wells at the LPC will be reported as IP A production and included on the IP A production reports. Production from PBU IP A wells to the LPC will be determined and allocated in accordance with the GPMA metering and allocation procedures. NGLs removed fÌom gas produced by these PBU IP A wells at the LPC will be accounted for and reported as IPA NGLs and taxed in the same manner as other NGLs produced at the LPC. PBU IPA will be allocated a proportionate share ofLPC fuel and flare gas associated with production from these wells in a manner consistent with the allocation of fuel and flare to other GPMA Participating Areas. Gas produced will either be consumed in operations or injected into the Lisburne (Wahoo) Reservoir and tracked as PBU IPA gas on the GPMA Gas Reserve Debit Report. The updated Lisburne POD, due in June 2007, will incorporate a description of operations associated with this well. BPXA staff are available should you have any questions or need any additional information. If you need any additional information, please contact Sherri Gould at 564·5942. Sincerely Yours, /'\, t\ I \ (i". ( ¡ II' J\ /" A Æ /\¿.- VJ '¿'/, <:;-., i7 -,,/, / \ _\...00"'"- -:-- -. ~ ,_~-t...... \. : Ù Mark C. Weggeland0 GPMA Resource Manager Attachment: Figure 1: L2 Production Reroute Project cc: Dave Roby, AOGCC Tom Maunder, AOGCC John Iversen, DOR Cammy Taylor, DNR Hank Bensmiller, ExxonMobil Eric Reinbold, ConocoPhillips Gary Forsthoff, Chevron Sherri Gould, BPXA Sam French, BPXA Gary Benson, BPXA Ted Cahalane, BPXA Tim Verseput, BPXA . . Figure 1 : L2 Production Reroute Project MOD 4922 - WELL MANIFOLD BUILDING FOR D$-L2EVEN NUMBERED WELLS MOO 4932 - WELL MANIFOLD BUilDING FOR DS·L2 ODD NUMBERED WELLS MOD 4902- HEATED BUILDING FOR ese VALVES, TEST SEPARATOR. AND HEATER DSL2 '.~~.... _~._"...'._.U_U' _...._...u...__. _n..._...._......_h....___..._..........._....n.~__.._._........n__..:1 -EXISTING LINE;S - PROJECT SCOPE Attachment Lrwa: t'tlU 1t'A. æ Llsourm: - rrUUUl,;UUI1 I\.t;4Ut;~lJ . Subject: [Fwd: PBU IP A & Lisburne - Production Request] From: John Norman <john_norman@admin.state.ak.us> Date: Wed, 04 Apr 2007 15:58:11 -0800 To: Jody J Colombie <jody _colombie@admin.state.ak.us> . print cover e-mail for file -------- Original Message -------- Subject:PBU IP A & Lisburne - Production Request Date:Tue, 03 Apr 2007 14:50:12 -0800 From:Stevens, Ellen <ellen.stevens(a?bp.com> To:Kevin Banks <kevin banks(a?dnr. state.ak. us> , John Norman <john norman@admin.state.ak.us> CC:Dave Roby <dave robv(a?admin.state.ak.us>, Tom Maunder <tom maunder(a?admin. state.ak. us>, Jon Iversen <jonathan iversen@revenue.state.ak.us>, Camille Taylor <camille taylor(a?dnr.state.ak.us>, Hank Bensmiller <hank.d.bensmiller(â)exxonmobil.com>, "Gould, Sherri L" <Sherri.GouJd(â)BP.com>, "French, Samuel W" <SamueI.French(â)BP.com>, "Cahalane, Ted W" <Ted.Cahalane(â)BP.com>, "Benson, Gary A" <Gary.Benson(â)BP.com>, "Verseput, Tim" <Tim.Verseput(â)BP.com>, "Forsthoff, Gary" <gmfo(â)chevrontexaco.com>, "Reinbold, Eric W (Phillips)" <EREINBO(â)ppco.com> All, For your review, attached please find a letter from BP regarding the production request pertaining to PBU IPA and Lisburne Participating Area. Should you have any questions, please do not hesitate to contact me at your convenience. Ellen Stevens PBU Coordinator 907.546.5933 «070402 PBU IPA and Lisburne - Production request.pdf» John K. Norman <John Norman(â)admin.state.us> Chairman Alaska Oil & Gas Conservation Commission Content-Type: application/octet-stream 070402 PBU IP A and Lisburne - Production request.pdf b Content-Encoding: ase64 1 of 1 4/6/2007 6:37 AM #q bp . Mr. Bill Van Dyke, Acting Director Division of Oil and Gas Department of Natural Resources 550 West 7th Avenue, Suite 800 Anchorage, Alaska 99501 . o BP Exploration (Alaska) Inc. 900 East Benson Boulevard P.O. Box 196612 Anchorage, Alaska 99519-6612 (907) 561-5111 Mr. John Norman, Chairman Alaska Oil and Gas Conservation Commission ~r.E. \\lEO 333 West 7th Avenue, Sui~~ Anchorage, Alaska 99501 Sf? 1 '2, lGGb . t.OfOt1\\SS\ot\ . & Gas Cot\s. ~\aS~a 0\\ ~t\t"o{a\\e Re: Request for Prudhoe Bay IPA Production Metering Changes to Accommodate EOA Facility Resumption at FS-1 and FS-2 Due to Shut-In Oil Transit Lines Dear Chairman Norman and Acting Director Van Dyke, BP Exploration (Alaska) Inc. (BPXA) as Operator of the Prudhoe Bay Unit requests authorization to alter the metering configuration utilized in the Prudhoe Bay Initial Participating Area (IPA) so that early restoration of production from the Eastern Operating Area (EOA) of the Prudhoe Bay field can occur. These changes are being sought due to the shutdown of the EOA Oil Transit Line which is undergoing repair / replacement. The changes requested in this application will allow production to resume from Flow Station No, 1 (FS-1) and Flow Station NO.2 (FS-2) via connection to the Endicott Pipeline. This is one of three related applications for metering changes to accommodate EOA production resumption. The other two applications (filed separately) pertain to: 1) connection of the Crude Oil Topping Plant (COTP) to the Endicott Pipeline; and 2) re-routing of Flow Station NO.3 (FS-3) production through the Lisburne Sales Oil Pipeline. The metering changes proposed in this application affect the location of the Lease Automatic Custody Transfer (LACT) meters and require changes to the individual FS-1 and FS-2 facility volume allocation procedure, but do not affect current well testing or well allocation procedures. The proposed new facility allocation process is entirely consistent with the current methodology for Prudhoe Bay described in the Western Page 1 bp . . o Satellite Metering Plan and is further described in excerpts from the amended Presentation that you received on August 29th. (See Attachment 1.) Endicott Pipeline Connections: FS-1 and FS-2 Metering As you are aware, plans are underway to utilize "bypass" piping arrangements to connect FS-1 and FS-2 to the Endicott Pipeline - a regulated common carrier sales oil pipeline1. Plans are also Ç';;;OQul underway to connect the L_J COTP to this pipeline.2 (See separate application.) Hydraulic calculations indicate that the Endicott Pipeline has sufficient excess capacity to carry the expected additional net volumes from FS-1 and FS- 2 of about 105,000 barrels per day without causing any impact to Endicott or Badami production rates. - New Connec lions Other Colors - ExlsUng Unes The proposed metering changes do not result in any methodological difference to the manner by which production allocation is currently handled within the Prudhoe Bay IPA. 1 A new ten-inch (10") diameter line and hot tap will be constructed to connect FS-1 to the Endicott Pipeline. The FS-1 Pipeline is a Prudhoe Bay Unit-owned and operated line and will flow approximately 65,000 barrels per day. A new eight-inch (8") line and hot tap will be constructed to connect FS-2 to the Endicott Pipeline. The FS-2 Pipeline is also a Prudhoe Bay Unit-owned and operated line and will flow approximately 40,000 barrels per day. 2 Two new six-inch (6") lines with hot taps will connect the COTP to the Endicott Pipeline to provide approximately 16,000 barrels of PBU crude oil per day to serve as feedstock to the COTP and approximately 14,000 barrels per day of residual crude oil from the COTP back into the Endicott Pipeline. The purpose of these connections is to provide crude oil feedstock into the COTP while the EOA Oil Transit Line is being repaired / replaced. The COTP Plant performs essential functions for the PBU and other North Slope producing fields. It produces approximately 2,000 barrels per day of diesel fuel (and occasional jet fuel) for critical operational use on the North Slope. The diesel product is principally used as transportation fuel, heating fuel, electrical power generation fuel and as a source of non-freezing fluid to freeze-protect pipelines and wells. Diesel is used not only by the PBU in unit operations - it is also used by third-party contractors and other third-party users in the greater North Slope area. It is essential for health and safety purposes that the COTP be returned to operation prior to the onset of cold weather, at which time the increased demand may not be met by other supply options. Page 2 P:: shutdown of the :A Oil Transit Line, all liquid prOdUct: leaving the Prudhoe 0 Bay facilities was measured at the single Pump Station No. 1 (PS-1) LACT meter (plus crude oil volumes withdrawn at the COTP). This measurement represented the known daily total liquid volume - and all crude oil facility meter readings upstream from this point were proportionally normalized so that they summed to this known amounP (after accounting for NGL volumes in the blended PS-1 stream). The proposed metering changes utilize the same concept. When connected to the Endicott Pipeline, the individual FS-1 and FS-2 meter readings will be similarly normalized back to the known LACT meter readings on the Endicott Pipeline system. This will occur for a period of time not to exceed twelve (12) months through the use of a "by-difference" method (described further below). After that time, the owners of the Endicott Pipeline have advised that if Prudhoe wishes to remain connected, the existing FS-1 and FS-2 meters will need to be upgraded to LACT meters for the purpose of custody transfer at these connections. At the time of start-up of the FS-1 and FS-2 connections, the existing flow meters at FS- 1 and FS-2 will be the identical meters that have been in use, and approved by your agencies for production allocation purposes, since start-up in 1977. These meters do not have fixed-volume prover loops installed4; instead, they will continue to rely upon the master meter system for proving - the same method of meter proving that has always been utilized at these facilities. During this interim period, a "by-difference" method will be used to determine the volume of oil collectively delivered by the FS-1 and FS-2 connections. All other meters measuring the inlet flow to the Endicott Pipeline meet industry standards for custody transfer; likewise, the outlet meter of Endicott Pipeline (located at PS-1) is a LACT meter. Thus, the difference between the accurately-measured outlet flows and the accurately-measured inlet flows represents the combined inlet flow contribution from FS-1 and FS-25 . 3 This approach created a daily GC/FS facility meter allocation factor used to normalize the upstream crude oil meter readings at FS-1, FS-2, FS-3, GC-1 and GC-2. The daily GC/FS meter allocation factor is a ratio equal to the PS-1 LACT meter plus the COTP supply meter minus the COTP return meter minus the NGL LACT meter at Skid 50 divided by the sum of the individual meter readings at FS-1, FS-2, FS-3, GC-1 and GC-2. 4 A fixed volume prover loop is the hallmark piece of equipment that makes a custody transfer turbine meter meet the standards established for a Lease Automatic Custody Transfer (LACT) meter system. 5 More specifically, the by-difference calculation will be the LACT meter reading at the outlet of the Endicott Pipeline (located at TAPS PS-1), minus the LACT meter reading on the inlet Endicott production stream (located on Endicott Island), minus the LACT meter reading on the inlet Badami production stream Page 3 bp . . o Attached are amended excerpts from the Presentation6 that you were shown on August 29th which outlines the specific mathematical calculations we intend to utilize until such time that the EOA Oil Transit Line is repaired I replaced. We intend to resume production from the EOA as soon as safely possible, and as such, your expeditious approval is requested, Let me know if you need any more information to obtain approval for the changes requested. Respectfully, YlWVW1- C .J~ Nancy C. Foust Projects and Engineering Manager BP Exploration (Alaska) Inc. cc: Jane Williamson, Alaska Oil and Gas Conservation Commission Tom Maunder, Alaska Oil and Gas Conservation Commission Art Copoulos, Department of Natural Resources, Division of Oil and Gas Robynn Wilson, Department of Revenue, Director Tax Division Mike Hanus, ExxonMobil Mike Erwin, ConocoPhillips Alaska, Inc. Attachment 1 - Excerpts from August 29,2006 Presentation (updated) (located at the Badami Production Facilities), plus the custody transfer meter reading on the COTP Supply Pipeline minus the custody transfer meter reading on the COTP Return Pipeline. Using the by- difference method, all Endicott Pipeline gains and losses will be attributed solely to the collective FS-1 and FS-2 volume. Identification of the individual FS-1 volume and individual FS-2 volume will be done by apportioning the collective volume (derived through the by-difference method described above) on a proportional basis to the individual FS-1 and FS-2 meter readings. 6 The Prudhoe Bay water volume calculation pertaining to FS-1 and FS-2 has been corrected since the time of the August 29th presentation, and is noted as such on the attached presentation. Page 4 Endicott Line Connections bp . . n 16" Endic.ott Pipeline ComposJte Sampler 8!açkrepresents ExistíngFacíJities ~ Composite Sampler Quality Bank Sampler Composíte Sampler . · Existing system has composite samplers: - ALPS - Badami · Requires new quality bank sampler at Endicott . Composite sampler for water cut co . Net, dry barrels (net means pressure and temperature corrected) Turbine Meter - Temperature. Pressure correction - On-line 0 API Fixed Volume Prover Loop . *LACT: Lease Automatic Custody Transfer co Net, wet barrels . Turbine Meter - Same device as LACT meter - Temperature, Pressure correction - Fixed °API co Master Turbine Meter . - Periodically sent to Testing Lab to verify accuracy n 10> FP 10" FP 16' Endìcott PìpeJîne Qua!ìty Bank Sampler .~ '" f- ::Ow roc a..::ï c o i o u !" ~ ~ ro '" c ~ .¡;¡ w EPG TAPS PS-1 Current Configuration Measured Volume Calculated Stream Value 595,294 57.9879873649 Measured Volume Measured Stream Value . I Badami Outlet I 44,012 $57.47091 e Calculated Volume Measured Stream Value 639,306 $57.95239 Example Data taken from May, 2006 - 19 Measured Volume Measured Volume Measured Stream Value 595,294 - 1 MBD 44,012 57.47091 - 19 Measured Measured Volume Measured Stream Value 44,012 Endicott Pipeline Endicott 16" Endicott Pipeline LAC Mete . o o i M ter Composite Sampler To ALPS Composite Sampler Quality Bank Sampler Composite Sampler Badami Gross (wet) Metered Oil: Badami = OilBad Endicott = OilEnd %S&W: Badami = %SWBad Endicott = %SW End Net (dry) Metered Oil: Badami = OilBad * (1- %SWBad) e Endicott = OilEnd * (1 - %SWEnd) Endicott Pipeline ~ .EU. New PLC e 16" Endicott Pipeline New Composite Sampler Endicott To ALPS mt~ ·l~ ,ee I ~ 4-path Ultrasonic Meter New Quality Bank Sampler o oli M " Composite Sampler Composite Sampler Quality Bank Sampler Badami / Endicott Metering Unchanged Gross (wet) Metered Oil: Badami = Oil Bad Endicott = Oil End Composite Sampler Composite Sampler . %S&W: Badami = %SW Bad Endicott = %SW End Badami = OilBad * (1- %SW Bad) Endicott = OilEnd * (1 - %SW End) Net (dry) Metered Oil: PBU Original Basis NGLs @ Skid 50 FS 3 I GC 3 FS 1 COTP FS 2 . Turbine Meters Turbine Meter Turbine Meter PD Meter PD Meter Turbine Meter 34" FS2 to Skid 50 Oil Transit Line 34" x 30" 30" FS2 to FS1 Oil Transit Line 34" WOA Oil Transit Line e To ALPS Composite Sampler Orifice Meter Orifice Meter GC 1 GC2 Total Metered NGL at SKID 50 = NGLrOT Gross (wet) Metered Shipped Oil at GCl = OilGC1 Gross (wet) Metered Shipped Oil at GC2 = OilGC2 Gross (wet) Metered Shipped Oil at FS 1 = OilFs1 Gross (wet) Metered Shipped Oil at FS2 = OilFs2 Gross (wet) Metered Shipped Oil at FS3 = OilFs3 Gross (wet) Metered Oil Supply to COTV = Oilsup Gross (wet) Metered Oil Return from COTV = OilRET ALPS Balance Factor (PBVAF) = [ OilpslPBU - NGLTOT + (Oilsup - OiIRET)] / [OiIGC1 + OilGC2 + OilFS1 + OilFS2 + OilFS3] e FSl gross (wet) allocated oil = PBVAF * OilFs1 similarly for all other GCs, FSs NGL and COTP unallocated e note: includes GC3 oil production %SWpsIPBuapplied to GC and FS gross allocated oil to obtain Net (dry) oil FS1/ FS2 / COTU Oil Metering: Interim Proposal (no more than 12 months) bp ~.f .\\t.~ '. ......., :#~. .~~ ¡:. . ;~.~\\. "~ Endicott Pipeline .E.S.l ES...1 New PLC ~ e 16" Endicott Pipeline New Composite Sampler To ALPS '"t*-l 'l:~ -r 4~path Ultrasonic Meter New Quality Bank Sampler o obs M er Composite Sampler Composite Sampler Quality Bank Sampler Gross (wet) Metered Oil at FSI = OilpS1 Gross (wet) Metered Oil at FS2 = Oilps2 Gross (wet) Metered Oil Supply to COTP = Oils UP Gross (wet) Metered Oil Return from COTP = OilRET Composite Sampler Badami Composite Sampler Composite Sampler . ALPS Balance Factor (ENDAF) = [ OilPS1End - (OilBad + OilEnd) + (Oilsup- OiIRET) ] / [OilpS1 + OilpS2 ] FSI gross (wet) allocated oil = ENDAF * OilpS1 FS2 gross (wet) allocated oil = ENDAF * OilpS2 Endicott Pipeline fU Eil New PLC ~ . 16" Endicott Pipeline To ALPS ·l~ ·1 4"FP 4"FP 4-path Ultrasonic Meter New Quality Bank Sampler o oli M ter Composite Sampler Composite Sampler Composite Sampler Measurement Location S&W NewPLC Water Volume Endicott Line @ PS 1 %SWPSlEnd H20pS1 = OilPSlEnd * %SW PSlEnd . Badami %SW Bad H20 Bad = Oil Bad * %SW Bad Endicott %SW End H20End = OilEnd * %SW End Quality Bank Sampler Composite Sampler ~ note: COTV %S&W samples are monthly averages so cannot be backed out in a daily calculation. Net COTV %S&Wwill be allocated to FSl and FS2. This is consistent with the current Prudhoe allocation methodology. H20pBU = [H20pS1 - (H20Bad + H20End)] %SWpBU= H20pBU / [OilPSlEnd - (Oil Bad + OilEnd) + (OilSup - OiIRet)] apply to FSl, FS2 gross allocated oil e e · Requires new connection agreements. · Quality Bank Sampler required at Endicott. - Uses historical Endicott composition for interim. · Leak Detection will be expanded. · PBU production provided by difference. · New PBU LACT meters and composite samplers w be required within 12 months. ~8 bp e e Mr. Bill Van Dyke, Acting Director Division of Oil and Gas Department of Natural Resources 550 West 7th Avenue, Suite 800 Anchorage, Alaska 99501 RE'CEIVED BP Exploration (Alaska) Inc. 900 East Benson Boulevard P.O. Box 196612 Anchorage, Alaska 99519-6612 (907) 561-5111 Alaska Oil & Gas Cons. Commission Anchorage Mr. John Norman, Chairman Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501 SEP 1 1 2006 Re: Request for Prudhoe Bay IPA Production Metering Changes to Accommodate EOA Facility Resumption at FS-3 Due to Shut-In Oil Transit Lines Dear Chairman Norman and Acting Director Van Dyke, BP Exploration (Alaska) Inc. (BPXA) as Operator of the Prudhoe Bay Unit requests authorization to alter the metering configuration utilized in the Prudhoe Bay Initial Participating Area (IPA) and the Greater Point Mcintyre Area (GPMA) so that early restoration of production from the Eastern Operating Area (EOA) of the Prudhoe Bay field can occur. These changes are being sought due to the shutdown of the EOA Oil Transit Line which is undergoing repair / replacement. The changes requested in this application will allow production rates to resume from Flow Station NO.3 (FS-3) and Gathering Center No.3 (GC-3). This is one of three related applications for metering changes to accommodate EOA production resumption, The other applications (filed separately) pertain to: 1) the re-routing of Flow Station No, 1 (FS-1) and Flow Station NO.2 (FS-2) production through the Endicott Sales Oil Pipeline; and 2) re-routing of the Crude Oil Topping Plant (COTP) to the Endicott Sales Oil Pipeline. The metering changes proposed in this application affect the location of the Lease Automatic Custody Transfer (LACT) meters and require changes to the individual FS-3 and Lisburne Production Center (LPC) facility volume allocation procedures, but do not affect current well testing or well allocation procedures. The proposed new facility allocation process for FS-3 and LPC is entirely consistent with the current methodology Page 1 bp e e BP Exploration (Alaska) Inc. 900 East Benson Boulevard P.O. Box 196612 Anchorage, Alaska 99519-6612 (907) 561-5111 for Prudhoe Bay described in the Western Satellite Metering Plan and is further described in the attached excerpts from the Presentation that you received on August 29th (See Attachment 1.) Lisburne Pipeline Connections: FS-3 and LPC Metering As you are aware, plans are underway to utilize "bypass" piping arrangements to connect FS-3 to the Lisburne Sales Oil Pipeline1. This is not a regulated common carrier sales oil pipeline; it is an on-lease oil transit line, owned and operated by the Prudhoe Bay Unit that delivers sales quality crude from LPC to Pump Station No. 1 (PS-1). Hydraulic calculations indicate that the Lisburne Pipeline has sufficient excess capacity to carry the incremental volume from FS-3 (including GC-3 production) of 70,000 barrels per day (nominally) without causing any impact to LPC or FS-3 / GC-3 production rates. - _"""._.!Ì4I\o A potential reduction of 2,000 _ OO»I"COIoffl-_",LiN» 5,000 barrels per day is expected due to utilization of the OS-150 common line for the tie-in2. Work is also progressing to determine if there is sufficient incremental capacity 1 A new twelve-inch (12") line downstream of the F8-3 meter run will be installed to allow for flow to the 08-150 common line (in the reverse direction). A second new twelve-inch (12") diameter line and hot tap will be constructed to connect the 08-150 common line into the Lisburne 8ales Oil Pipeline. The 08-150 common line is a Prudhoe Bay Unit-owned and operated line and will flow approximately 70,000 barrels per day. 2 The 08-150 common line traditionally carried high pressure 3-phase production from 08-15 to F8-3. For the purposes of this bypass arrangement, this line will now be used in the opposite direction to Page 2 bp e e BP Exploration (Alaska) Inc. 900 East Benson Boulevard P.O. Box 196612 Anchorage, Alaska 99519-6612 (907) 561-5111 available in the Lisburne Sales Oil Pipeline to allow early production from FS-1 to FS-3 via the Gas Handling Expansion (GHX) tie-line3. The new FS-3 bypass will re-route oil production from a point downstream of the FS-3 shipping pumps and meters4 to the Lisburne Sales Oil Pipeline at a point downstream of the LPC shipping pumps and meters. No incremental back-pressure effects are expected on the wells flowing to LPC or FS-35. LPC facility volumes are currently metered at the PS-1 LACT meter on the Lisburne Sales Oil Pipeline, as this is currently a dedicated pipeline. The proposed metering changes, however, do not result in any methodological difference to the manner by which production allocation is currently handled within the Prudhoe Bay IPA. On a conceptual level, it approaches LPC metering on the same basis as is currently applied at the Gathering Centers (GC's) and Flow Stations (FS's). Prior to shutdown of the EOA Oil Transit Line, all liquid production leaving the Prudhoe Bay facilities was measured at the single PS-1 LACT meter (plus crude oil volumes withdrawn at the COTP). This measurement represented the known daily total liquid volume - and all crude oil facility meter readings upstream from this point were proportionally normalized so that they summed to this known amount6 (after accounting for NGL volumes in the blended PS-1 stream). transport sales quality oil from FS-3 to its jumper point into the Lisburne Sales Oil Pipeline. As a consequence, high pressure production normally transported down the DS-15D common line will be commingled, to the extent possible, into other DS-15 common lines, creating a net reduction of some 2,000 to 5,000 barrels per day. 3 This would be an interim solution that would provide an incremental (but limited) production benefit until such time as the FS-1 connection into the Endicott Sales Oil Pipeline is available. 4 Sales quality oil emanating from FS-3 also contains production sourced from GC-3 (via the fizzy oil line), and may include some early FS-1 production via the GHX tie-line. 5 During normal operating conditions, there are no anticipated constraints on production at LPC or FS-3 beyond the current constraints such as gas compression, flare, water-handling limits, etc. 6 This approach created a daily GC/FS facility meter allocation factor used to normalize the upstream crude oil meter readings at FS-1, FS-2, FS-3, GC-1 and GC-2. The daily GC/FS meter allocation factor is a ratio equal to the PS-1 LACT meter plus the COTP supply meter minus the COTP return meter minus Page 3 bp e e 0:'················ ...... '\ " BP Exploration (Alaska) Inc, 900 East Benson Boulevard P.O. Box 196612 Anchorage, Alaska 99519-6612 (907) 561-5111 The proposed FS-3 bypass arrangement utilizes the same concept. When FS-3 is connected to the Lisburne Sales Oil Pipeline, the individual FS-3 and LPG meter readings will be similarly normalized back to the known reading on the PS-1 Lisburne LAGT meter7. During this period, FS-3 volumes will no longer be included in the Prudhoe Bay IPA calculation. Upon start-up of the FS-3 connection, the existing flow meter at FS-3 will be the identical meter that has been in use, and approved by your agencies for production allocation purposes, since start-up in 1977. An equivalent-quality meter will be used downstream of the shipping pumps at LPG. These meters do not have fixed-volume prover loops installed8; instead, they will continue to rely upon the master meter system for proving - the same method of meter proving that has always been utilized at these facilities. The daily sediment and water (%S&W) measurement from the Lisburne composite sampler (at the PS-1 connection) will be proportionally applied to both FS-3 and LPG gross oil volumes to determine dry oil volumes. This is analogous to the Prudhoe Bay IPA methodology for correcting for %S&W. With regard to the FS-1 early start-up scenario (via reverse flow in the GHX tie-line), FS-1 individual well oil volumes will be allocated together with the FS-3 and GG-3 well oil volumes and normalized against the FS-3 final allocated facility volume. This is consistent with the current methodology for accounting for oil flow from FS-3 to FS-1 (in the normal direction) using the GHX tie-line. the NGL LACT meter at Skid 50 divided by the sum of the individual meter readings at FS-1, FS-2, FS-3, GC-1 and GC-2. 7 A new daily LPC/FS-3 facility meter allocation factor will be established, similar to the GC/FS facility meter allocation methodology. It is a ratio equal to the PS-1 LACT meter (Lisburne connection at PS-1) divided by the sum of the individual meter readings at LPC and FS-3. 8 A fixed volume prover loop is the hallmark piece of equipment that makes a custody transfer turbine meter meet the standards established for a Lease Automatic Custody Transfer (LACT) meter system. Page 4 bp e e o BP Exploration (Alaska) Inc. 900 East Benson Boulevard PO. Box 196612 Anchorage, Alaska 99519-6612 (907) 561-5111 Attached are excerpts from the Presentation that you were shown on August 29th outline the specific mathematical calculations we intend to utilize until such time that the EOA Oil Transit Line is repaired / replaced. We intend to resume production from the EOA as soon as safely possible, and as such, your expeditious approval is requested. Let me know if you need any more information to obtain approval for the changes requested. Respectfully, (\ t ~. ( \jl~ .<I~ Nancy C. Foust Projects and Enginèering Manager BP Exploration (Alaska) Inc. cc: Robynn Wilson, Director, Department of Revenue, Tax Division Jane Williamson, Alaska Oil and Gas Conservation Commission Tom Maunder, Alaska Oil and Gas Conservation Commission Art Copoulos, Department of Natural Resources, Division of Oil and Gas Mike Hanus, Exxon Mobil Mike Erwin, ConocoPhillips Alaska, Inc Attachment 1 - Excerpts from August 29, 2006 Presentation Page 5 bp e FS3 I GC3 Production Bypass Option to LPC Pipeline e New Connections Qther Colors - Exi$ting Lines LPC peli Design is To ALPS Turbine eer LPC Pig Leuncher 16" LPC Pipeiine Composite Sampler DS 15D Common!ine BJack represents Exist¡ng FaciJities 24" GHX Tie-line Eal1y Production Option LPC Pipeline LPC e 16' LPC Pipeline Turbine eer LPC Pi£ Launcher To ALPS Composite Sampler Gross (wet) Metered Oil: GPMA = OilpSlLISB e %S&W: GPMA = %SWpSlLISB Net (dry) Metered Oil: GPMA = OilpSlLISB * ( 1- %SWpSlLISB) LPC Pipeline 4-path Ultrasonic r LPC e 16" LPC Pipeline Turbine LPC Pig Launcher To ALPS ~ Composite Sampler DS15D Common1ine Expand Opto 22 I/O Ultrasonic Meter ALPS Balance Factor (LISBAF) = [OilpSILlSB ] / [OilLPc + OilpS3] e LPC gross (wet) allocated oil = LISBAF * OilLPc FS3 gross (wet) allocated oil = LISBAF * OilpS3 %S&W = %SWpSILlSB GPMA Net (dry) Metered Oil = LISBAF*OilLPc * ( 1- %SWpSILlSB) FS3 Net (dry) Metered Oil = LISBAF*Oilps3 * ( 1- %SWpSILlSB) LPC Pipeline 4~path Ultrasonic r LPC e To ALPS Turbine o or LPC Pig Launcher 16" LPC Pipeline Composite Sampler DS15D CommonUne Expand Opto 22 tfO - a Ultrasonic Meter e 24" GHX Tie·Une Early Production Option Same as GPMA / FS3 option FS 1 oil included in FS3 metered oil so will have the same facility oil factor and %S& W · Does not require new connection agreements. · Does not require Quality Bank Samplers. · Leak Detection will be expanded. · Allocation method same methodology as current PBU system. · Potential early start option for FS1 production through FS3. e e GPB Oil Transit System Scr I I I Lisburme I Pipeline from Lisburne Original is located in CO 341E to Lisburne Jumper will remain in — with spools at each end removed F.S3------------------- I OIL IN AL Modify Metering to Match Typical 1 I I I I I o o #68 I #69 I I I I I I I I I I— — — — — — — — — — — — — — — — — — — — #7 bp ) ) November 3, 2005 BP Exploration (Alaska) Inc. 900 East Benson Boulevard P.O. Box 196612 Anchorage, Alaska 99519-6612 (907) 561-5111 Mr. John Norman, Chair Alaska Oil and Gas Conservation Commission 333 West ih Ave, Suite 100 Anchorage, AK 99501 r-(' ",:: '~E'I\/ED NOV 0 7 2005 (~ C(]i(~s. Commission ¡~ndlduage Re: Addendum to Section V "Area Injection Operations" and "Section VI "Proposed Amendment to Prudhoe Oil Pool Rule" of the Application for Amendment of Conservation Order No. 341D for the Prudhoe Oil Pool and Area Injection Order No. 4C to include the Put River Sandstone . Dear Chairman Norman: BPXA, as Operator of the Prudhoe Bay Unit, hereby submits an addendum to Section V "Area Injection Operations" and Section VI "Proposed Amendment to Prudhoe Oil Pool Rule" of the "Application for Amendment of Conservation Order No. 341D for the Prudhoe Oil Pool and Area Injection Order No. 4C to include the Put River Sandstone" dated August 19, 2005. This addendum provides a revised definition for the Prudhoe Oil Pool and a new definition for the Put River Oil Pool. The addendum also provides additional information regarding fluid compatibility as requested by the AOGCC. Sincerely, /J, ¿/ .~- CJ~ ~.~ Tim Verseput 1/ Gravity Drainage Team Lead Greater Prudhoe Bay cc: Dan Kruse, ConocoPhillips Alaska, Inc. Sonny Rix, ExxonMobil Jane Williamson, AOGCC Mike Kotowski, DNR ) ) Addendum to Section V "Area Injection Operations" and Section VI "Proposed Amendment to Prudhoe Oil Pool Rule" of the Application for Amendment of Conservation Order No. 341D for the Prudhoe Oil Pool and Area Injection Order No. 4C to include the Put River Sandstone November 3,2005 ) ) November 3, 2005 This addendum to Section V "Area Injection Operations" of the Application for Amendment of Conservation Order No. 341D for the Prudhoe Oil Pool and Area Injection Order No. 4C to include the Put River Sandstone provides additional fluid compatibility information requested by the AOGCC. Compatibility with Formation and Confining Zones The clay petrology of the Southern Lobe of the Put River Sandstone was evaluated in the 2-14 core. The clay content in the Put River Sandstone is largely associated with the finer-grained and poor permeability areas that do not contribute significantly to net pay. A comparison of the Put River clay petrology with other Early Cretaceous reservoirs located on the North Slope indicates similar amounts of the principle clays illite, kaolinite, and mixed layer illite/smectite. Water injection in the analog reservoirs indicates no significant compatibility issues. The Put River also has a glauconite content of 4 - 15%. The higher glauconite content in the Put River Sandstone is not expected to present compatibility issues with the water injection. 2/4 ) ) November 3, 2005 This addendum to Section VI "Proposed_Amendment to Prudhoe Oil Pool Rule" of the Application for Amendment of Conservation Order No. 341D for the Prudhoe Oil Pool and Area Injection Order No. 4C to include the Put River Sandstone provides a revised definition for the Prudhoe Oil Pool and a new definition for the Put River Oil Pool as requested by the AOGCC. Prudhoe Oil Pool Rule 1 Pool Definition (a) The Prudhoe Oil Pool is defined as the accumulations of oil that are common to and which correlate with the accumulations found in the Atlantic Richfield - Humble Prudhoe Bay State No.1 well between the depths of 8,110 feet and 8,680 feet and includes the portion of the Put River Sandstone in pressure communication with the Sag River Formation of the Prudhoe Oil Pool. The Put River Sandstone is that sandstone interval that correlates with the interval 9,638 to 9,719 measured feet on the Borehole Compensated Sonic Log, Run 2, dated September 28, 1975, in the Atlantic Richfield-Exxon NGI No.1 well. (b) The Put River Sandstone shall be included in the Prudhoe Oil Pool within the following area: T12N R14E Section: 35, 36 TIINR14E Sections: 1, 2, II(N/2 and SE/4), 12, 13, 14(E/2), 23(NE/4), 24, 25(N/2) TIIN R15E Sections: 6,7,8,17,18,19,20, 29(N/2), 30(N/2) Pool Definition for the Put River Oil Pool (a) The Put River Oil Pool is defined as the accumulations of oil and gas in the Put River Sandstone that are in pressure isolation from the Sag River Formation of the Prudhoe Oil Pool. The Put River Sandstone is that sandstone interval that correlates with the interval 9,638 to 9,719 measured feet on the Borehole Compensated Sonic Log, Run 2, dated September 28, 1975, in the Atlantic Richfield-Exxon NOI No.1 well. 3/4 ) ) November 3, 2005 (b) The Put River Sandstone shall be included in the Put River Oil Pool within the following area: TI1N R14E Sections: 3,4, 9, 10, 11(SW/4), 14(W/2), 15, 16, 21, 22, 23(W/2 and SE/4), 25(S/2), 26, 27, 28,33, 34, 35,36 T11N R15E Sections: 29(S/2), 30(S/2), 31, 32 T10N R14E Sections: 1,2,3,11,12,13,14 TION R15E Sections: 5,6,7,8,17,18 4/4 #6 ) ) STATE OF ALASKA OIL AND GAS CONSERV A TION COMMISSION Amendment of Conservation Order 341D for the Prudhoe Bay Oil Pool and Area Injection Order No. 4C to include the Put River Sandstone NAME - AFFILIATION WDe.L ADDRESS/PHONE NUMBER TESTIFY (Yes or No) (PLEASE PRINT) ~m I }/JI/F F ).££~ -. í3;o /;;2..j I £-e¿ GJlJðd r--l - D~ tf- Sf c¡~ ¡Vb \JClyY)e s DeClYì .-- 1~;'P ??iLl/ "Tém¡Jé'S+ Gý, 5;c.·q~·4bk8 Yes Jet.f ?; e-l-ru ~- B r J ~ &55 ;VIeMor:~ I Dr, ~'i22 ¡¡wI,,,, 7;( 7Ji>-§9r1Jt6 - 7Zt? Yo '/:"'1'\ Ve Ò's e. p \J\t 6P 9 DC? .F, 9 it liS\'\ If) .> ~~';b '/-t,ft\c;I-") ~ 0 (Jd' ~¡' ,.) L~ (\ c'J t? ~ / yrÞz ¿; !<. +1,' <0<-1(¿~ L ;,' Gc¡ ~)}O~ Jl, ~:'-,(tE' ~1Ä:1"é'fA rJ /37'1 J3rds fat) I pa!/lf;Lfr 7L¡,Ç-:;ø7 kj, ::JrJ.\1U7 kJ~ I !îtiU(7iM, /..,(J{~t ~ í q 3- /'J 1~ AJ n ~u\ìé ~Ie l>j'leOo iG ~b4'Dfì3Nb Av1 C1ro{¡)~ 1\ d--(<?<i - 157ì7 Nn ~do mtf\-\-<-' 'D~.Pt- L~l0 #5 ) 10 12 13 ) 20 21 22 23 24 25 ) ') 1 ALASKA OIL AND GAS CONSERVATION COMMISSION 2 Before Commissioners: John K. Norman, Chairman Daniel T. Seamount Cathy Foerster 3 4 In the Matter of the Application of BP Exploration (Alaska), Inc. to Amend Conservation Order No. 341D for the Prudhoe Bay oil Pool and Area Injection Order No. 4C to include the Put River Sandstone RECEIVED OCT 1 3 Z005 Alaska Oil 8« Gas Cons. Commission Anchorage 5 6 7 8 ALASKA OIL and GAS CONSERVATION COMMISSION Anchorage, Alaska 9 October 6, 2005 9:00 o'clock a.m. 11 VOLUME I PUBLIC HEARING BEFORE: John K. Norman, Chair Daniel T. Seamount, Commissioner Cathy Foerster, Commissioner 14 15 16 17 18 19 R & R C 0 U R T R E P 0 R T E R S 810 N STREET 277-0572/Fax 274-8982 1007 WEST THIRD AVENUE 272-7515 ANCHORAGE, ALASKA 99501 ANCHORAGE, ALASKA 99501 1007 WEST THIRD AVENUE 272-7515 810 N STREET 277-0572/Fax 274-8982 R & R C 0 U R T R E P 0 R T E R S 03 . 06/11 . 08/11 Opening Remarks by Chair Norman . . Testimony of James Dean . Testimony by Jeffrey Pietras . . . . . TABLE OF CONTENTS ) ) ~ " 25 24 23 22 21 20 19 18 17 16 15 14 13 ) 12 11 10 9 8 7 6 5 4 3 2 1 ) ) ) ) 1 PRO C E E DIN G S 2 Tape 1 3 0015 4 (On record - 9:00 a.m.) 5 CHAIR NORMAN: Good morning. This is a Hearing before the 6 Alaska oil and Gas Conservation Commission. This is the 7 morning of Thursday, October 6th, 2005. The time is 9:00 8 o'clock a.m. The location is the Commission's offices at 333 9 West Seventh Avenue, Anchorage, Alaska. 10 I'll first introduce the members of the Commission. To my 11 right is commissioner Dan Seamount. To my left is commissioner 12 Cathy Foerster and my name is John Norman. ) 13 The commission has a standing policy of compliance with 14 the American with Disabilities Act and if there are any persons 15 here who require a special accommodation to participate in the .16 Hearing, please, let us know. If you want to hold up your hand 17 or otherwise indicate, a Staff member will assist you if that 18 involves hearing or ability to see better or access to the 19 proceedings of the Commission. 20 The proceedings this morning will be recorded and there 21 will be a transcript prepared upon conclusion of the Hearing. 22 I A transcript can be obtained by contacting either R & R Court I 23 Reporting directly or by contacting the Commission's office and 24 they can arrange for you to obtain a copy. 25 I This purpose of this Hearing this morning is to consider } R & Reo U R T R E P 0 R T E R S 810 N STREET 277-0572/Fax 274-8982 1007 WEST THIRD AVENUE 272-7515 ANCHORAGE, ALASKA 99501 3 ) 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 ) ) ) the application of BP Exploration (Alaska), Inc. to Amend Conservation Order 341D for the Prudhoe Bay oil Pool and Area Injection Order No. 4C. The purpose of both amendments being to include the Put River Sandstone as part of this pool. The specific, legal location for the affected area where the Put River Sandstone lies is generally within Township 12 north, range 14 east; Township 11 north, range 14 east; Township 11 north, range 15 east and Township 10 north, range 14 east, all within the umiat Prime Meridian. The application was filed on August 19th, 2005. Supplemental information was filed by the Applicant on September 13th, 2005. The notice of this Hearing was duly published in the Anchorage Daily News on September 1st, 2005. The file does not show any written comments or other documents filed by any other parties. We will proceed this morning with the Hearing in accordance with the Commission's regulations. Generally speaking those are found -- the section in 20 Alaska Administrative Code 25.540. We will hear from the Applicant first and then if there are any other persons who wish to be heard, why, we will take your testimony. The practice of the Commission is to have witnesses sworn before they testify so that they are under Oath. If any persons object to being placed under Oath we will R & R C 0 U R T R E P 0 R T E R S 810 N STREET 277-0572/Fax 274-8982 1007 WEST THIRD AVENUE 272-7515 ANCHORAGE, ALASKA 99501 4 5 ANCHORAGE, ALASKA 99501 1007 WEST THIRD AVENUE 272-7515 810 N STREET 277-0572/Fax 274-8982 R & R C 0 U R T R E paR T E R S COMMISSIONER FOERSTER: No. CHAIR NORMAN: Commissioner Foerster? first, Commissioner Seamount, do you have anything additional that you'd like to say before we start? COMMISSIONER SEAMOUNT: No, I don't. I believe we're ready now to proceed, but let me ask to do so. of the questions that you pose we will give you the opportunity then if the Applicant wishes the opportunity to respond to any commission you may include your questions in your statement and Alternatively if you wish to make a statement to the applicant. that they are relevant we will present those questions to the Commission or a staff member and then if the Commission finds relevant you may write them out and provide them to the any persons are present and you do have questions you think are commission does not allow cross examination of witnesses. If As a general matter in proceedings like this the will accept you as an expert witness. experience and then we will determine whether the Commission we will ask you first to state your qualifications and your Any person who is planning to testify as an expert witness testimony that is provided under Oath. all of you that the Commission gives greater weight to not require the testimony to be under Oath, but I do instruct ) ) ) 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 ) 6 ANCHORAGE, ALASKA 99501 1007 WEST THIRD AVENUE 272-7515 810 N STREET 277-0572/Fax 274-8982 R & R C 0 U R T R E P 0 R T E R S \ I: CHAIR NORMAN: And how long have you worked in the area of 25 24 the Put River project. 23 engineer in the state of Texas and I'm the lead engineer for 22 years of industry experience. I'm a registered professional 21 Petroleum Engineering from Texas A&M University. I have 12 MR. DEAN: I have a Bachelor of Science Degree in 20 19 your educational background and then your work experience? CHAIR NORMAN: Would you, please, then state starting with 18 MR. DEAN: Yes, I will. 17 16 expert witness? CHAIR NORMAN: And will you be testifying today as an 15 MR. DEAN: I represent BP. 14 CHAIR NORMAN: And who do you represent? 13 ) MR. DEAN: My name is James Dean. 12 CHAIR NORMAN: Please, state your name? 11 MR. DEAN: I do. 10 9 (Oath Administered) 8 I'll ask you to raise your right hand. 7 I'll first ask you to -- so I can administer the Oath, 6 directed toward the person speaking. Thank you very much. 5 way the microphones are set up both microphones should be Okay. Commissioner Foerster is explaining to me that the 4 (Side conversation) the microphone? 3 2 the person representing the Applicant come forward, please, to CHAIR NORMAN: Okay. Then we are ready to proceed. will 1 ) ) ) 7 ANCHORAGE, ALASKA 99501 1007 WEST THIRD AVENUE 272 -7515 810 N STREET 277-0572/Fax 274-8982 R & R C 0 U R T R E paR T E R S .t COMMISSIONER FOERSTER: None (ph). 25 COMMISSIONER SEAMOUNT: None. 24 23 there any objection to accepting Mr. Dean's qualifications? CHAIR NORMAN: All right. I'll ask the Commissioners, is 22 COMMISSIONER FOERSTER: I have no questions (ph). 21 CHAIR NORMAN: Commissioner Foerster. 20 19 have any further questions. Thank you, Mr. Dean. COMMISSIONER SEAMOUNT: San Juan Basin, okay. I don't 18 MR. DEAN: That was in the San Juan Basin. 17 16 Mexico or..... COMMISSIONER SEAMOUNT: Was it tight gas in, what, New 15 shelf and Lower 48 tight gas. 14 MR. DEAN: I worked Gulf of Mexico, both deep water and 13 ) COMMISSIONER SEAMOUNT: And what areas did you work there? 12 MR. DEAN: Before that in Houston, Texas. 11 10 you? COMMISSIONER SEAMOUNT: And then before that, where were 9 8 so approximately two years. MR. DEAN: I've worked in Alaska since September of 2003, 7 6 in Alaska? COMMISSIONER SEAMOUNT: Mr. Dean, how long have you worked 5 CHAIR NORMAN: Commissioner Seamount. 4 3 the Put River. MR. DEAN: I've worked a year and a half in the area of 2 the Put River project, Prudhoe Bay? 1 ) ') ) 8 ANCHORAGE, ALASKA 99501 1007 WEST THIRD AVENUE 272-7515 810 N STREET 277-0572/Fax 274-8982 R & R C 0 U R T R E P 0 R T E R S DR. PIETRAS: Okay. I received my Bachelor's of Science educational background and then your experience? to please, state your qualifications beginning with your CHAIR NORMAN: Then I'll ask you, just as I asked Mr. Dean DR. PIETRAS: I will. expert witness? CHAIR NORMAN: And will you be offering testimony as an DR. PIETRAS: And it's P-i-e-t-r-a-s. CHAIR NORMAN: And would you spell your last name, please? DR. PIETRAS: My name is Jeffrey T. Pietras. CHAIR NORMAN: Please, state your name? DR. PIETRAS: I do. (Oath Administered) right hand. CHAIR NORMAN: Okay. will you, sir, please raise your MR. DEAN: Okay. intermittently then we will swear you both at this time. CHAIR NORMAN: Yes. Yes, if you will be testifying in the second witness before we begin? well. This will be a joint presentation. Do we need to swear get started, we have a second person who will be testifying as MR. DEAN: One question I have for the Commission before I proceed. Commission accepts you as an expert witness and you may CHAIR NORMAN: Okay. Then without exception the ) ) ) 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 9 ANCHORAGE, ALASKA 99501 1007 WEST THIRD AVENUE 272-7515 810 N STREET 277-0572/Fax 274-8982 R & Reo U R T R E paR T E R S COMMISSIONER SEAMOUNT: Dr. Pietras, where did you work in CHAIR NORMAN: Urn-hum, okay. Commissioner Seamount. DR. PIETRAS: Projects with different oil companies. three projects? CHAIR NORMAN: That was part of your education, those doing my PhD and Masters. DR. PIETRAS: Those three projects I did concurrent with Wyoming and Nigeria and then came to Alaska for two years? your education and then worked for a year in California, CHAIR NORMAN: So is it correct to say that you completed Nigeria. DR. PIETRAS: I've worked in California and Wyoming and CHAIR NORMAN: And where was the other year? Put River project. DR. PIETRAS: Working Prudhoe Bay fields, as well as the CHAIR NORMAN: Where in Alaska? DR. PIETRAS: Two of those years were here in Alaska. CHAIR NORMAN: Where was that? DR. PIETRAS: Three years of industry experience. experience? .....Geology, also? Okay. And your work CHAIR NORMAN: DR. PIETRAS: Geology. CHAIR NORMAN: And your B.S. was in..... from the University of Wisconsin in Madison. from Binghamton University and my Masters and PhD in Geology .) ) ) 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 ). 10 ANCHORAGE, ALASKA 99501 1007 WEST THIRD AVENUE 272-7515 810 N STREET 277-0572/Fax 274-8982 R & R C 0 U R T R E P 0 R T E R S ) 25. proceedings are finished you will remain under Oath. 24' remain under Oath at all times. In fact, until these 23 I: shift between each other, please, keep in mind that you both 22 I: and you may now proceed wi th your presentation. And as you 21 II as an expert witness, so you've both been sworn and testif ied CHAIR NORMAN: All right. We accept your qualifications 20 COMMISSIONER FOERSTER: (Nods in the negative) 19 COMMISSIONER SEAMOUNT: I have no objections. 18 17 objection to accepting Mr. Pietras as an expert witness? CHAIR NORMAN: Do you either commissioners have any 16 COMMISSIONER FOERSTER: That's it. 15 DR. PIETRAS: It's near Santa Barbara, California. 14 COMMISSIONER FOERSTER: Okay. 13 ) 12 necessarily within a field. DR. PIETRAS: I worked the Sespe Formation, not 11 10 California? COMMISSIONER FOERSTER: What fields did you work in 9 CHAIR NORMAN: Commissioner Foerster. 8 7 questions. Thank you, Doctor. COMMISSIONER SEAMOUNT: Okay. I have no further 6 DR. PIETRAS: Yeah. 5 COMMISSIONER SEAMOUNT: Is it the almond (ph) sand. 4 3 southwestern Wyoming the Green River Basin. DR. PIETRAS: I worked the Wamsutter field which is in 2 Wyoming? 1 ') ) ) 11 ANCHORAGE, ALASKA 99501 1007 WEST THIRD AVENUE 272 -7515 810 N STREET 277-0572/Fax 274-8982 R & Reo U R T R E P 0 R T E R S CHAIR NORMAN: And will these be in sequence that you're MR. DEAN: Yes, I will. transcript a set of the slides? So will you be able to provide as an attachment to this what this slide is. that when we are finished with these proceedings it's clear so if we say, for example, on this slide, we need to be sure could possibly be read three or four or 10 years from now. And you're testifying we all need to keep in mind this testimony all testimony, that in order to maintain an orderly record as moment, this will be a preliminary statement that applies to CHAIR NORMAN: In order to keep our -- excuse me for a MR. DEAN: Sure. COURT REPORTER: Okay. Sorry for the interruption. for myself as reference. MR. DEAN: I do not have a hard copy. I have a copy here a copy of that power point? COURT REPORTER: Before we get too far along, do you have this morning. Jeff will..... overview of what we're going to be presenting in our testimony MR. DEAN: This first slide just gives the Commission an TESTIMONY BY JAMES DEAN and JEFFREY T. PIETRAS proceed. their heads that they agree with that statement I made. Please And the record should show that both witnesses are nodding ) ) ) 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 going through so..... 2 MR. DEAN: Yes, they will be in sequence. 3 CHAIR NORMAN: I don't see any numbering or anything else, 4 but I believe your description of the slide will be sufficient 5 if they are attached. 6 MR. DEAN: Each title of the slide is unique, so I propose 7 using the slide title to refer to the slides. 8 CHAIR NORMAN: That will be just fine. And do keep in 9 mind, again, that you're not only speaking to us, you're 10 speaking to the future in a transcript and so what we need to 11 make sure is that what is reported on the transcript is clear 12 to a reader in the future. Thank you. ) 13 MR. DEAN: Okay, thank you. This initial slide gives an 14 outline of our testimony this morning for the Put River 15 hearing. Jeff will first cover the geology of the Put River 16 Sandstone, then I will discuss the reservoir appraisal efforts 17 in the Put River. Jeff will then follow up to review the 18 hydrocarbons in place estimates and I will finish our testimony 19 by discussing our development plans in the area injection 20 operations. 21 DR. PIETRAS: The Put River Sandstone is located on 22 Alaska's North Slope within the Prudhoe Bay unit as illustrated 23 on the slide title Put River Sandstone location. 24 I The Put River Sandstone overlies the Kingak Shale and 25' Sadlerochit Group in the vicinities of Drill site 1, 2, 5, 6, ) R & R C 0 U R T R E P 0 R T E R S 810 N STREET 277-0572/Fax 274-8982 1007 WEST THIRD AVENUE 272-7515 ANCHORAGE, ALASKA 99501 12 l 1 2 3 4 5 6 7 8 9 10 11 12 ) 13 14 15 16 17 18 19 20 21 22 23 ¡: ,I II 24 !i 25 1~ ,'J ) ,) 7, 15, 18, NGI and WGI. On the next slide we will show you a type log of the Put River from the NGI-1 well. This slide is titled NGI-1 Type Log. The Pub River Sandstone is the sandstone interval that correlates with the interval 9,638 feet to 9,719 feet measured depth on the Schlumberger Borehole Compensated Sonic Log Run 2 dated September 28th, 1975 in the Atlantic Richfield-Exxon NGI No. 1 well. In this well the Put River Sandstone lies unconformably above the Jurassic Kingak Shale and conformably below the Cretaceous Highly Radioactive Zone. This map entitled Put River Sandstone Distribution shows the gross sandstone thickness of the Put River Sandstone. As you can see the Put River Sandstone composes four laterally extensive sandstone bodies or lobes. They are termed the southern, central, western and northern lobes. I'll point you to those now. The southern lobe, the central lobe, the western lobe and the northern lobe. In the next slide we will look at north to south stratigraphic cross section through these lobes. This slide is entitled Put River Sandstone stratigraphy. The Put River Sandstone along with the Kalubik Formation, mainly shale and siltstone, is part of the Put River interval that lies stratigraphically above the Lower Cretaceous Unconformity and below the Highly Radioactive Zone. R & R C 0 U R T R E P 0 R T E R S 810 N STREET 277-0572/Fax 274-8982 1007 WEST THIRD AVENUE 272 - 7515 ANCHORAGE, ALASKA 99501 13 ) 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 ) ') ') In the most northeastern extent under the NGIjWGI area the Put River interval lies directly on the Triassic Sag River sandstone. I'll point that to you now. The northern lobe here termed the AB sandstone comprises the entire Put River interval as we saw in the type log NGI-1 shown here in the cross section. The remaining three lobes are stratigraphically equivalent to the northern lobe and are interbedded with the Kalubik Formation and those are the central lobe here or excuse me, the southern lobe here, the central lobe and the western lobe. Biostratigraphic age control confirms these correlations. The addition of the Put River Sandstone to the Prudhoe oil pool as defined in Conservation Order No. 341D and Area Injection Order No. 4C is based on the direct juxtaposition of the northern extent of the Put River sandstone with the Sag River sandstone shown again here on the far left. The Sag River sandstone is part of the current Prudhoe oil pool. MR. DEAN: Next we will move onto our appraisal data for the Put River Sandstone. This slide is title the Southern Lobe Appraisal. It shows you the appraisal data we've collected in the southern lobe. The appraisal data in the southern lobe consist of core and RFT measurements in well 2-14, two production tests and a downhole fluid sample. In 1980 core was recovered from well 2-14. The core measurements have an average porosity of 19 percent with an R & R C 0 U R T R E P 0 R T E R S 810 N STREET 277-0572/Fax 274-8982 1007 WEST THIRD AVENUE 272-7515 ANCHORAGE, ALASKA 99501 14 ) 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 ~ ) ) average permeability of 173 millidarcies. An RFT taken in well 2-14 in 1980 indicated a reservoir pressure of 4,163 psi. Late last year, 2004, we performed a production test on well 2-23A. That well flowed as a black oil with an average production rate of 1,820 barrels of oil a day and a average gas rate of five million cubic feet per day. A pressure measurement at the end of the production test indicated the current reservoir pressure was 2,710 psi. A second production test was performed in late 2004 on well 1-14 located at the southern end of the southern lobe. That well was unable to flow and we did not receive any production from that well. In the course of evaluating the Put River Sandstone over the last year we discovered a casing leak that produced from well 2-27 and that well produced from the leak between 1994 and 1997. The estimated volumes from the casing leak were 300,000 to 900,000 barrels of oil. A downhole fluid sample was collected in well 2-23 following the production test. The fluid properties form the PVT analysis indicated the fluid type was a black oil. The API gravity of the oil was 26.9 degrees API. The reservoir bubble point was 2,815 psi with the formation volume factor of 1.293 reservoir barrels per stock tank barrel. Next we will move on to the appraisal data from the central lobe of the Put River and look at the slide titled R & R C 0 U R T R E P 0 R T E R S 810 N STREET 277-0572/Fax 274-8982 1007 WEST THIRD AVENUE 272-7515 ANCHORAGE, ALASKA 99501 15 ) ) ) 1 Central Lobe Appraisal. Our appraisal data from the central 2 lobe consists of a single production test and a downhole fluid 3 sample. 4 In early 2005 well 15-9 was tested. That well flowed as a 5 black oil with average rates of 240 barrels of oil per day and 6 average gas rates of 120,000 cubic feet per day. The reservoir 7 pressure measurement at the end of the production test was 8 3,923 psi. 9 Following that production test the downhole oil sample was 10 also recovered. The downhole oil sample indicated the 11 formation fluid as a black oil. The API gravity of the oil is 12 31.2 degrees API. The fluid's bubble point is 2,275 psi. The ) 13 oil's formation volume factor is 1.23 reservoir barrels per 14 stock tank barrel. 15 Now we'll move on to the appraisal data from the western 16 lobe of the Put River Sandstone and look at the slide titled 17 Western Lobe Appraisal. Our appraisal data from the western 18 lobe consists of RFT pressure measurements, a single production 19 test and a sidewall core. 20 In 1992 RFT measurements were taken while drilling well 21 15-28. The RFT pressure in the western lobe was 4,234 psi. 22 In early 2005 we performed a production test on well 23 15-41B. That well tested gas with some associated condensate. 24 The average gas rate during the test was 1.8 million cubic feet 25 per day with average condensate rates of 73 barrels of \ f R & R C 0 U R T R E P 0 R T E R S 810 N STREET 277-0572/Fax 274-8982 1007 WEST THIRD AVENUE 272-7515 ANCHORAGE, ALASKA 99501 16 } 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 ) ) condensate per day. The reservoir pressure at the end of the production test is 4,173 psi. Also in 2005 while drilling well 15-14A sidewall cores were recovered in the Put River. Sidewall core measurements have an average porosity of 16 percent with an average permeability of four millidarcies. A surface recombination fluid sample was also collected during the production test of well 15-41B. The fluid properties from that recombined surface sample indicated the reservoir fluid as a gas with some associated condensate. API gravity of the condensate is 57 degrees API. The dew point of the reservoir fluid is 3,435 psi. Finally we'll move on to the appraisal data for the northern lobe of the Put River and look at the slide titled Northern Lobe Appraisal. Our appraisal data in the northern lobe consi~ts of core and RFT measurements, a single production test and a recombined surface fluid sample. In 1979 core was recovered from two wells in the northern lobe of the Put River, well NGI-7 and well NGI-13. The average core values were 13 percent porosity with an average permeability of 90 millidarcies. An RFT measurement was also collected in those wells which indicated a reservoir pressure of 4,191 psi. In early 2005 we performed a production test on well 18-27C. That well tested as gas with some associated R & R C 0 U R T R E P 0 R T E R S 810 N STREET 277-0572/Fax 274-8982 1007 WEST THIRD AVENUE 272-7515 ANCHORAGE, ALASKA 99501 17 ) 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 } ) ) condensate. The average production rates were 6.8 million cubic feet per day with a condensate rate of 165 barrels of condensate per day. Reservoir pressure following that production test was 3,422 psi. Following that production test a surface fluid sample was collected for recombination analysis. That recombination PVT analysis indicated the reservoir fluid is a gas with condensate. The API gravity of the condensate is 59.1 degree API. The reservoir fluid has a dew point of 3,215 psi. The next slide summarizes the reservoir properties for each of the four lobes of the Put River Sandstone. This slide is entitled Put River Sandstone Reservoir Summary. The southern lobe of the Put River contains black oil as the fluid. The initial reservoir pressure was 4,163 psi. The current reservoir pressure is 2,710 psi. For the central lobe of the Put River the fluid type is a black oil. The current reservoir pressure is 3,923 psi. For the western lobe of the Put River the fluid type is gas with associated condensate. The initial reservoir pressure was 4,234 psi and the current reservoir pressure is 4,173 psi. For the northern lobe of the Put River the fluid type is a gas with associated condensate. The initial reservoir pressure is 4,191 psi and the current reservoir pressure is 3,422 psi. DR. PIETRAS: We'll now move to the slide entitled Hydrocarbons In Place. Volumetric estimates of hydrocarbons in R & R C 0 U R T R E P 0 R T E R S 810 N STREET 277-0572/Fax 274-8982 1007 WEST THIRD AVENUE 272-7515 ANCHORAGE, ALASKA 99501 18 ) 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 ) ) ) place for the Put River Sandstone reflect current well control, stratigraphic and structural interpretation and rock and fluid properties. The average rock properties were estimated using available core data and calibrated petrophysical log models. For the southern and central lobes the average porosity value is 19 percent and the average water saturation value is 46 percent. For the western lobe the average porosity value is 19 percent and water saturation is 28 percent. The northern lobe was split into a northern half and a southern half based on lithology. The northern half being more conglomeratic. The southern half being a sandstone. Porosity for the northern half -- average porosity is 13 percent and water saturation is 13 percent. For the southern half porosity is 17 percent and water saturation is 28 percent. For the estimate of oil in place for the southern lobe the value is 12.6 to 19.2 million barrels of oil with an associated gas volume of 6.9 to 10.5 billion cubic feet. For the central lobe the estimated oil in place is 1.1 to 2.7 million barrels of oil with an associated gas volume of 0.5 to 1.3 billion cubic feet. The estimated gas in place for the western lobe is 69.6 to 104.4 billion cubic feet. And the estimated gas in place of the northern lobe is 108.4 to 160.4 billion cubic feet. All the oil in place estimates are stock tank barrels and all gas R & R C 0 U R T R E P 0 R T E R S 810 N STREET 277-0572jFax 274-8982 1007 WEST THIRD AVENUE 272-7515 ANCHORAGE, ALASKA 99501 19 ) 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 \ ~. ) ) in place estimates are at standard conditions. MR. DEAN: We will now move on and I will review our development plans and a summary of the area injection operations. The first slide we're going to look at is titled Development Plans. For the southern lobe we are currently evaluating development options with a reservoir simulation. Options under consideration are production via primary depletion, water flooding and miscible flooding. For the central lobe development options include primary depletion by recompleting existing wells. For the western lobe plans include potentially one to three production wells. For the northern lobe the reservoir fluid is currently above the field marginal GOR and no development is currently planned. We will now look at the area injection operations on the slide entitled Area Injection Operations. The main fluids we are considering for injecting in the Put River Sandstone are produced water, source water from the seawater treatment plant, miscible injectant and stimulation fluids. Fluid compatibility has been evaluated with core and analog data and indicates no significant fluid compatibility problems. The maximum estimated injection rate into the Put River R & R C 0 U R T R E P 0 R T E R S 810 N STREET 277-0572/Fax 274-8982 1007 WEST THIRD AVENUE 272-7515 ANCHORAGE, ALASKA 99501 20 21 ANCHORAGE, ALASKA 99501 1007 WEST THIRD AVENUE 272-7515 810 N STREET 277-0572/Fax 274-8982 R & R C 0 U R T R E P 0 R T E R S southern lobe has been produced already, correct? COMMISSIONER SEAMOUNT: And so some of the oil in the production packer. MR. DEAN: Both those holes were located below the COMMISSIONER SEAMOUNT: Okay. production casing and a hole in the tubing. MR. DEAN: That was leaked through a hole in the the casing into the production stream? southern lobe, I guess I didn't hear you, was that leak through COMMISSIONER SEAMOUNT: Yes. The leak in the well in the CHAIR NORMAN: Questions, commissioner Seamount? this time. That completes our formal testimony and presentation at will be submitted to the Commission. each well within a quarter mile of a proposed injection well will be drilled. Also a report on the mechanical condition of Cement bond logs will be run on all injection wells that of the confining and bounding zones. water flood operations is 875 psi below the fracture pressure shale. Maximum estimated bottom hole injection pressure from Sandstone it is bounded by the Kalubik Formation and the HRZ Kingak Shale in the southern lobe and above the Put River For zonal isolation the Put River is bounded below by the pressure of 2,600 psi. Sandstone would be 25,000 barrels of water per day at a surface ) ) ) 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 } 22 ANCHORAGE, ALASKA 99501 1007 WEST THIRD AVENUE 272-7515 810 N STREET 277-0572/Fax 274-8982 R & R C 0 U R T R E P 0 R T E R S DR. PIETRAS: Well, clearly in the northern extent of the this one here it just, kind of, bothers me a little bit? and stuff so I can see why there's one huge Kuparuk pool, but same geologic horizon. The compartments are caused by faulting of separate compartments at Kuparuk field, but it's all in the speaking as a geologist, I understand what -- there are a lot Pietras, would you call this a separate pool or -- I mean, COMMISSIONER SEAMOUNT: How do you feel about that, Dr. implications. split out and called a separate pool what would be the economic implications? I mean, would it matter to BP? MR. DEAN: I don't think there would be any economic reservoir in the same pool. If it were -- if this were to be me to lump a lower Cretaceous reservoir with a Triassic saying that I'm opposed to it, but it seems kind of strange to COMMISSIONER SEAMOUNT: I'm, kind of -- I mean, I'm not MR. DEAN: That is correct. correct? the 12.6 million barrels in place that you estimate, is that COMMISSIONER SEAMOUNT: Okay. So that comes off, what, 300 to 900,000 barrels produced from the 2-27 casing leak. MR. DEAN: The estimate we presented in our testimony was much has been produced? COMMISSIONER SEAMOUNT: Do you have an estimate of how MR. DEAN: That is correct. ) ) ) 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 ) 23 ANCHORAGE, ALASKA 99501 1007 WEST THIRD AVENUE 272-7515 810 N STREET 277-0572/Fax 274-8982 R & R C 0 U R T R E P 0 R T E R S )1 25' fluids to flow through the production casing and through a hole 24!: leak occurred below the upper production packer and allowed 23 preparations with strattle (ph) packer assembly. The Put River 22 Ivishak Formation. Zone 2 is isolated from the zone 1 21 in both zone 1 in the Ivishak Formation and zone 2 in the MR. DEAN: Well 2-27 was a selective completion, completed 20 COMMISSIONER FOERSTER: Okay. So an upward packer? 19 (Witness complies). MR. DEAN: 18 17 seeing that. 16 sketch of what that would look like? I'm having a hard time COMMISSIONER FOERSTER: Could you draw me a wellbore 15 MR. DEAN: No, they were below the production packer. 14 production packer? 13 ) 12 both leaks were below the production packer. Do you above the COMMISSIONER FOERSTER: Mr. Dean, I heard you say that 11 CHAIR NORMAN: Commissioner Foerster. 10 9 further questions, thank you. 8 Well, I can think about it a little bit more. I have no COMMISSIONER SEAMOUNT: Yeah, I can see that reasoning. 7 6 touching with the -- with what's already in the Prudhoe pool. 5 correlations, but certainly that northern piece is directly 4 compartmental, as you say, that's the stratigraphic 3 move away from that spot we do have the apparent (ph) 2 Triassic reservoir, the Sag and the Ivishak and then as you -- it's in direct communication sitting directly on the Permo- 1 ) ) ) 24 ANCHORAGE, ALASKA 99501 1007 WEST THIRD AVENUE 272-7515 810 N STREET 277-0572/Fax 274-8982 R & Reo U R T R E P 0 R T E R S MR. DEAN: Yeah, that's correct. have those? default if we -- if we put this into the Prudhoe pool you would COMMISSIONER FOERSTER: But there likely is one and as a for the Prudhoe Bay pressure surveillance. MR. DEAN: I'm not familiar with what the current rule is management? Prudhoe Bay pool, is there an existing rule for pressure COMMISSIONER FOERSTER: If these wells are put into the point decide the pressure surveillance strategy. simulation and determine our development plan, we will at that surveillance. Our plan is once we complete the reservoir MR. DEAN: We have not formalized our plans for pressure monitoring plans for your completion? Do you have those? you provided to our technical Staff. What are you pressure any of your testimony, but it stems from some information that COMMISSIONER FOERSTER: This question doesn't stem from Foerster. .....two leaks? Okay. Commissioner CHAIR NORMAN: MR. DEAN: That is correct. right, . . . . . the production -- in the casing and in the tubing, is that CHAIR NORMAN: Could you -- on that -- there was a leak in COMMISSIONER FOERSTER: Thank you. in the production tube. ,) ) ) 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 ) 25 ANCHORAGE, ALASKA 99501 1007 WEST THIRD AVENUE 272-7515 810 N STREET 277-0572/Fax 274-8982 R & R C 0 U R T R E P 0 R T E R S 25 do we have what we would expect, a natural separation of gas 24 and is this -- do we have at the higher elevation a gas cap and 23 behave like a pool? I see different gravities and pressures 22 Now, with that in mind, that generally in mind, does this 21 the term pool. 20 separated from any other zone in the structure is covered by 19 And then each zone of a general structure which is completely 18 or appearing to contain a common accumulation of oil or gas. 17 most other states, pool is an underground reservoir containing 16 -- under our Alaska law definition pool, which is similar to question so that you know what I'm looking at I'll just briefly 15 ) " just to frame this CHAIR NORMAN: Okay. And the 14 DR. PIETRAS: To my knowledge. 13 12 elsewhere to your knowledge? CHAIR NORMAN: And the Put River Sandstone is absent 11 10 River Sandstone. 9 you the full extent that we know of at this time of the Put DR. PIETRAS: Based on my mapping of the area we've shown 8 7 this general area? 6 Sandstone. Where else is the Put River Sandstone present in 5 this, we see the four lobes of occurrence of the Put River 4 Commissioner Seamount was inquiring about. Well, let me ask CHAIR NORMAN: Dr. Pietras, I wanted to follow up on what 3 MR. DEAN: Yes. 2 ) COMMISSIONER FOERSTER: As a minimum? 1 ) ) 26 ANCHORAGE, ALASKA 99501 1007 WEST THIRD AVENUE 272-7515 810 N STREET 277-0572/Fax 274-8982 R & R C 0 U R T R E P 0 R T E R S MR. DEAN: The main difference in the development plan if separate pools? differ if we put these into Prudhoe pool versus if we made them COMMISSIONER FOERSTER: How would your development plans CHAIR NORMAN: Thank you. Commissioner Foerster. interval called the Put River Sandstone. each other. However, they are within the same stratigraphic lobe and the southern lobe are stratigraphically isolated from Sandstone, the northern lobe, the central lobe and the western of the Sag River. Each of the four lobes in the Put River with the current Prudhoe pool. The direct juxtaposition on top MR. DEAN: The northern lobe is in hydraulic communication pressure in a lobe affect the other lobes? production and release of pressure in one lobe or inducement of CHAIR NORMAN: Well, would -- to what extent would directly since we do not see that. oil/water contact in any of these lobes so I can't answer that there is or where it would be a contact between gas or oil or a DR. PIETRAS: We don't have any data that shows us if CHAIR NORMAN: That's what I'm asking, yeah. you're asking, is that correct? like, a gas/oil contact or a oil/water contact, if that's what DR. PIETRAS: Okay. As far as a common occurrence of a, all of the lobes? and condensate and oil that would occur in a pool as between ) ") 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 27 ANCHORAGE, ALASKA 99501 1007 WEST THIRD AVENUE 272-7515 810 N STREET 277-0572/Fax 274-8982 R & R C 0 U R T R E P 0 R T E R S CHAIR NORMAN: All right. Then at this point we will MR. DEAN: No, there will not. Exploration of Alaska? any other witnesses to testify for the applicant, BP CHAIR NORMAN: Anything else? I believe -- will there be Shale. upper bounding zone consists of the Kalubik Formation and HRZ MR. DEAN: Lower bounding zone is the Kingak Shale. The zone that could be fractured at that pressure? just trying to refresh my recollection. What is the bounding bounding zone consist of here? It's I think in here, but I'm psig below frac (ph) pressure in bounding zones, what does the the bottom, maximum estimated bottomhole injection pressure 875 there, the slide entitled Area Injection operations, third from CHAIR NORMAN: Yes, on the slide that's still present MR. DEAN: Not that I'm aware of currently. than some paperwork? there would be no difference in developmenting a scenario other COMMISSIONER FOERSTER: Okay. So given that opportunity MR. DEAN: Yes, you could. commingling permit? COMMISSIONER FOERSTER: Could you not apply for a that to gas lift the Put River fluids. scenario if you were to commingle Ivishak production and use they were separate pools or isolated pools would be a gas lift ') ) ) 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 jl 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 \ ~I ) ) excuse you. I would ask if you could remain and reminding you, again, that as you remain and if we would have to recall you, you would be under Oath. Do you both understand that? MR. DEAN: Yes, I do. DR. PIETRAS: Yes, I do. CHAIR NORMAN: Okay. Both witnesses indicate they do. And so I will now ask are there any other persons who wish to offer testimony to the Commission on this matter? Okay. The Chair is looking through and the Chair sees no one else asking to be recognized. At this point then we will take approximately a 10 minute recess and during that period there is coffee outside immediately to the right and there are restroom facilities out there and we will try to see if there are any final questions. I think that's proven to be the most efficient way and we'll come back on the record. If we have any final questions then we'll ask you to return to the microphone and if there are no questions then, I think, we'll be ready to adjourn the hearing. We'll take a 10 minute recess. (Off record - 9:45 a.m.) (On record - 10:08 a.m.) CHAIR NORMAN: We're back on the record now. The commissioners have taken a brief break to reviewed our notes and see if there is any additional information that we would R & R C 0 U R T R E P 0 R T E R S 810 N STREET 277-0572/Fax 274-8982 1007 WEST THIRD AVENUE 272-7515 ANCHORAGE, ALASKA 99501 28 29 ANCHORAGE, ALASKA 99501 1007 WEST THIRD AVENUE 272-7515 810 N STREET 277-0572/Fax 274-8982 R & R C 0 U R T R E P 0 R T E R S 25 24 23 1520 22 (Recessed - 10:10 a.m.) 21 adjourned at 10:10 a.m. Thank you. CHAIR NORMAN: Okay. Then without objection we'll stand 20 COMMISSIONER FOERSTER: I don't have anything to add. 19 CHAIR NORMAN: Commissioner Foerster. 18 17 days or weeks. 16 giving us some interesting issues to mull over in the next few applicant for coming in and giving such a good presentation and 15 ') .l COMMISSIONER SEAMOUNT: Well, I'd just like to thank the 14 13 you have anything final to say? CHAIR NORMAN: Very good. And, Commissioner Seamount, do 12 11 this time. MR. DEAN: No, we have no further information to submit at 10 9 could do so now? 8 this opportunity. If you have anything to say about that you 7 support that is already in the record, but I would give you 6 Area Injection Order and I think there's -- the information to 5 part of this application there also is a request to amend the 4 The one question that I would like to ask you is that as 3 necessarily review that here. It's very understandable. attached to the application and so we don't feel the need to 2 ) 1 require as part of the record. There is all of the information ,) ) ) 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 \\ ,Y' ) } C E R T I F I CAT E UNITED STATES OF AMERICA ) )ss. STATE OF ALASKA ) I, Rebecca Nelms, Notary Public in and for the State of Alaska, residing at Anchorage, Alaska, and Reporter for R & R Court Reporters, Inc., do hereby certify: THAT the annexed and foregoing Public Hearing In the Matter of the Application of BP Exploration (Alaska), Inc. to Amend Conservation Order No. 341D for the Prudhoe Bay oil Pool and Area Injection Order No. 4C to include the Put River Sandstone was taken by Suzan Olson on the 6th day of October, 2005, commencing at the hour of 9:00 a.m., at the Alaska oil and Gas Conservation Commission, Anchorage, Alaska; THAT this Hearing Transcript, as heretofore annexed, is a true and correct transcription of the proceedings taken and transcribed by Suzan Olson; IN WITNESS WHEREOF, I have hereunto set my hand and affixed my seal this 10th day of October, 2005. G~~~_.e- ~ ..- Notary Public in and for Alaska My Commission Expires: 10/10/06 R & Reo U R T R E P 0 R T E R S 810 N STREET 277-0572/Fax 274-8982 1007 WEST THIRD AVENUE 272-7515 ANCHORAGE, ALASKA 99501 30 Updated by 04/14/03 1. Geology 2. Reservoir AplH'aisal 3~ HydrQcarbons in Place 4. Development Plans & Area Injection Operations 1 ('urrtnt Rcsenroír u ated by 04/14/03 No/t.;': S(}utbern 46% Central 46%J WeS1ern 2$~iò Northern (north) 13% Soutbern C-entrnl 12-6 ~ 19,2 MMBO U -2.1MMBO 6.9 - lô.5 '8CF 0..5> 1,3 RCF 69Æ - to4A BCF 111<1 J-08.4-160ABCF },'ule: 2 . Southern Lobe Evalwrting development options with reservoir simulation ~ Primary depletion, water~t1ood> miscible flood Central Lobe- ""' O!>ûons include IH'ímary depletion by fe-completing existing wells Western Lobe . Plans include- potentially 1 to 3 production weUs Northern Lobe * Above marginal GOR, DO development currently planned Updated by J) 2) Fluid compaûbmty~ Core and ,analog data indicate no $jgrÜficant problems 3) Ma:xìmum estimated in,je\..1.ion rates!!)reSSurcH: 25/J()O Ò\vpd @2600psig 4} Zonal Isolation: ~ Put Rivcr bounded by Kinguk: Shale and Kalubik FormationlHRZ Shale ~ MiixÜnum cstìmated bottom-hole iIJjection pressure- is 875 psig b¡:;low fruetuœ'pre&>ure in bounding zones ~ Cement bond logs 'Nil! be run on injeetÌì}¡} weUs - Report on mechanical c(¡¡:¡ditÎcn of each vvdl 'i'át1Jin ~ mile of injt,.ction wells 3 · · · . . PUBLIC HEARING 10/06/05 Page 3 to Page 30 PREPARED BY: R & R COURT REPORTERS, INC. 810 "N" Street Suite 101 Anchorage, AK 99501 Phone: 907-277-0572 . . . 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . . 1 ALASKA OIL AND GAS CONSERVATION COMMISSION 2 Before Commissioners: John K. Norman, Chairman Daniel T. Seamount Cathy Foerster 3 4 In the Matter of the Application of BP Exploration (Alaska), Inc. 5 to Amend Conservation Order No. 341D for the Prudhoe Bay Oil Pool 6 and Area Injection Order No. 4C to include the Put River Sandstone 7 8 ALASKA OIL and GAS CONSERVATION COMMISSION Anchorage, Alaska 9 October 6, 2005 9:00 o'clock a.m. VOLUME I PUBLIC HEARING BEFORE: John K. Norman, Chair Daniel T. Seamount, Commissioner Cathy Foerster, Commissioner R & R C 0 U R T R E P 0 R T E R S 810 N STREET 1007 WEST THIRD AVENUE 277-0572/Fax 274-8982 272-7515 ANCHORAGE, ALASKA 99501 . . . 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . 1 . TABLE OF CONTENTS Opening Remarks by Chair Norman . Testimony of James Dean . . . Testimony by Jeffrey Pietras 2 3 4 5 6 7 8 9 ......... ......... ......... R & R C 0 U R T R E P 0 R T E R S 810 N STREET 277-0572/Fax 274-8982 1007 WEST THIRD AVENUE 272-7515 ANCHORAGE, ALASKA 99501 · . . . 03 · . . 06/11 · . . 08/11 #4 bp . . o September 30,2005 BP Exploration (Alaska) Inc. 900 East Benson Boulevard PO. Box 196612 Anchorage, Alaska 99519-6612 (907) 561-5111 Mr. John Norman, Chair Alaska Oil and Gas Conservation Commission 333 West 7th Ave, Suite 100 Anchorage, AK 99501 RFCEIVED OCT I' 3 2005 Alaska Oil & GM.,;H1S. Commission AnchOrloë Re: Addendum to Section II "Reservoir Description and Development Planning" of the Application for Amendment of Conservation Order No. 341D for the Prudhoe Oil Pool and Area Injection Order No. 4C to include the Put River Sandstone Dear Chairman Norman: BPXA, as Operator of the Prudhoe Bay Unit, hereby submits an addendum to Section II "Reservoir Description and Development Planning" of the "Application for Amendment of Conservation Order No. 341D for the Prudhoe Oil Pool and Area Injection Order No. 4C to include the Put River Sandstone" dated August 19, 2005. This addendum provides additional reservoir engineering data to support the estimated hydrocarbons in place. Sincerely, c4~V~~ Tim Verseput Gravity Drainage Team Lead Greater Prudhoe Bay --- cc: Dan Kruse, ConocoPhillips Alaska, Inc. Sonny Rix, ExxonMobil Jane Williamson, AOGCC Mike Kotowski, DNR . . Addendum to Section II "Reservoir Description and Development Planning" of the Application for Amendment of Conservation Order No. 341D for the Prudhoe Oil Pool and Area Injection Order No. 4C to include the Put River Sandstone September 30, 2005 Addendum to Section II "ReserVOariPtion and Development Planning" of the APPlicatia Amendment of Conservation Order No. 341D for the Prudhoe Oil Pool and Area Injection Order No. 4C to include the Put River Sandstone Sept. 30, 2005 This addendum to Section II "Reservoir Description and Development Planning" of the Application for Amendment of Conservation Order No. 341D for the Prudhoe Oil Pool and Area Injection Order No. 4C to include the Put River Sandstone provides additional reservoir information as requested by the AOGCC. Hydrocarbons in Place The estimates of hydrocarbons in place for the Put River Sandstone were calculated volumetric ally using the information presented in the "Rock and Fluid Properties" discussion in Section II of the Application for Amendment of Conservation Order No. 341D for the Prudhoe Oil Pool and Area Injection Order No. 4C to include the Put River Sandstone dated August 19,2005. Southern Lobe Material Balance A material balance estimate using the 2-23A production test (250 mbo) and the estimated volumes from the 2-27 casing leak (300 - 900 mbo) validated the volumetric hydrocarbon in place estimate of 12.6 - 19.2 MBO for the Southern lobe of the Put River Sandstone. 2/2 bp . . o September 13, 2005 BP Exploration (Alaska) Inc. 900 East Benson Boulevard PO. Box 196612 Anchorage, Alaska 99519-6612 (907) 561-5111 Mr. John Norman, Chair Alaska Oil and Gas Conservation Commission 333 West 7th Ave, Suite 100 Anchorage, AK 99501 RECEIVED SEP 1 3 2005 Alaska Oil & Gas \..0ns, Commission AnchOfage Re: Addendum to Section V "Area Injection Operations" of the Application for Amendment of Conservation Order No. 341D for the Prudhoe Oil Pool and Area Injection Order No. 4C to include the Put River Sandstone Dear Chairman Norman: BPXA, as Operator of the Prudhoe Bay Unit, hereby submits an addendum to Section V "Area Injection Operations" of the "Application for Amendment of Conservation Order No. 341D for the Prudhoe Oil Pool and Area Injection Order No. 4C to include the Put River Sandstone" dated August 19,2005. This addendum addresses the information regarding fluid injection into the Put River Sandstone in accordance with 20 AAC 25.402 (Enhanced Recovery Operations) and 20 AAC 25.460 (Area Injection Orders). Sincerely, ~~ l/.~ Tim Verseput Gravity Drainage Team Lead Greater Prudhoe Bay cc: Dan Kruse, ConocoPhillips Alaska, Inc. Sonny Rix, ExxonMobil Jane Williamson, AOGCC Mike Kotowski, DNR , . . Addendum to Section V "Area Injection Operations" of the Application for Amendment of Conservation Order No. 341D for the Prudhoe Oil Pool and Area Injection Order No. 4C to include the Put River Sandstone September 13, 2005 Addendum to Section V "Ar.ection Operations" of the Application for AmendmAonservation Order No. 341D for the Prudhoe Oil Pool and Area Injection Order No. 4C to include the Put River Sandstone Sept. 13, 2005 V. Area Injection Operations BP Exploration (Alaska) Inc., in its capacity as Prudhoe Bay Unit Operator, has requested that the Commission amend the authorized strata for the Prudhoe Oil Pool in Area Injection Order Number 4C to include the Put River Sandstone. This addendum addresses the information regarding fluid injection into the Put River Sandstone in accordance with 20 AAC 25.402 (Enhanced Recovery Operations) and 20 AAC 25.460 (Area Injection Orders). Plat of Proiect Area 20 AAC 25.402(c)(1) A plat showing the location of each proposed injection well, abandoned or other unused well, and production well within one-quarter mile of each proposed injection well will be provided to the Commission with each application for a Permit to Drill or Application for Sundry Approval for any injection wells. Specific approvals for any new injection wells or existing wells to be converted to injection service will be obtained pursuant to 20 AAC 25.005 and 25.507, or any applicable successor regulation. Operators/Surface Owners 20 AAC 25.402(c)(2) and 20 AAC 25.402(c)(3) BP Exploration (Alaska) Inc. is the operator of the Prudhoe Bay Oil Pool. Pursuant to 20 AAC 25.402(c)(3), an affidavit showing that the Operators and Surface Owners within a one-quarter mile radius of each proposed well have been provided a copy of the application will be provided to the Commission with each application for a Permit to Drill or Application for Sundry Approval for any injection wells. 2/8 Addendum to Section V "Ar.ection Operations" of the Application for Amendm.conservation Order No. 341D for the Prudhoe Oil Pool and Area Injection Order No. 4C to include the Put River Sandstone Sept. 13, 2005 Description of Operation 20 AAC 25.402(c)(4) Development plans are described in Section II of the "Application for Amendment of the Conservation Order No. 341D for the Prudhoe Oil Pool and Area Injection Order No. 4C to include the Put River Sandstone". Drill pad facilities and operations are described in Section III. Geoloe:ic Information 20 AAC 25.402(c)(6) The Geology of the Put River Sandstone is described in Section I of the "Application for Amendment of the Conservation Order No. 341D for the Prudhoe Oil Pool and Area Injection Order No. 4C to include the Put River Sandstone". Iniection Well Casine: Information 20 AAC 25.402(c)(8) The casmg program for any injection wells will be permitted and completed in accordance with 20 AAC 25.030. Proposed completion diagrams will be provided to the Commission with each application for a Permit to Drill or Application for Sundry Approval for any injection well. Cement bond logs will be run on all injection wells to demonstrate isolation of injected fluids to the Put River Sandstone. 3/8 Addendum to Section V "A.jectiOn Operations" of the Application for Amendm. Conservation Order No. 341D for the Prudhoe Oil Pool and Area Injection Order No. 4C to include the Put River Sandstone Sept. 13, 2005 Iniection Fluids 20 AAC 25.402(c)(9) Type of Fluid/Source Fluids to be considered for injection in the Put River Sandstone are: a. Produced water from Prudhoe Bay Unit production facilities for the purposes of pressure maintenance and enhanced recovery; b. Source water from the Seawater Treatment Plant; c. Fluids injected for purposes of stimulation per 20 AAC 24.280 (2), consistent with other North Slope field practices; d. Tracer survey fluid to monitor reservoir performance, consistent with other North Slope field practices; e. Miscible injectant. Source water from the Seawater Treatment Plant would be the primary water source for Put River Sandstone injection. 4/8 Addendum to Section V "A.jection Operations" of the Application for Amendme Conservation Order No. 341D for the Prudhoe Oil Pool and Area Injection Order No. 4C to include the Put River Sandstone Sept. 13, 2005 Composition The composition of the source water from the Seawater Treatment Plant is listed in the table below. Species Barium o - 3 ppm Bicarbonate 100 - 200 ppm Calcium 200 - 400 ppm Chloride 10,000 - 19,000 ppm Iron o - 3 ppm Magnesium 600 - 1,300 ppm Potassium Sodium 5,000 - 10,500 ppm Strontium 4 - 8 ppm Sulfate 1,400 - 2,800 ppm pH 6.8 - 6.9 TDS 17,000 - 34,000 ppm Maximum Injected Rate Maximum water injection requirement for the Put River Sandstone is estimated at 25,000 BWPD. Compatibility with Formation and Confining Zones Core-based mineralogy data and analog comparisons indicate no significant problems with clay swelling or compatibility with in-situ fluids are expected. Analysis of the 02- 14 core indicates relatively low clay content (6-35% by volume) in the Put River Sandstone, primarily in the form of illite. Petrographic analysis indicates that clay 5/8 Addendum to Section V "A.jectiOn Operations" of the Application for Amendm. Conservation Order No. 341D for the Prudhoe Oil Pool and Area Injection Order No. 4C to include the Put River Sandstone Sept. 13, 2005 volumes in the better quality sand sections (>50 md) are in the range of 6 - 10%. Clay volumes increase to approximately 18% in rock with permeabilities in the range of 10 - 50 md. Below 1 md, clay volumes range up to 35%. Most of the identified clay is present as intergranular matrix, having been intermixed with the sand through burrowing. The average clay composition is a mixture of roughly equal amounts of kaolinite, illite and mixed layer illite/smectite. No chlorite was reported during petrographic analysis. No significant compatibility issues are anticipated between the formation and injected fluid. The presence of iron-bearing minerals suggests that the use of strong acids should be avoided in breakdown treatments, spacers, etc. Iniection Pressures 20 AAC 25.402(c)(10) The expected average surface water injection pressure for the Put River Sandstone is 1800 psig. The estimated maximum surface injection pressure is 2600 psig with a resulting maximum bottom hole injection pressure of 5950 psig. Fracture Information 20 AAC 25.402(c)(11) The Put River Sandstone is bound by the Kingak Shale below and Kalubik Formation and HRZ shale above. In the Southern lobe where injection is being evaluated, 150-200 feet of Kingak Shale separates the Put River Sandstone from the underlying Sag River Sandstone. The Kingak Shale has a calculated fracture pressure of 6875 psia based on the dipole sonic log in well 15-14A. The Kalubik Formation directly overlies the Put 6/8 Addendum to Section V "A.jectiOn Operations" of the Application for Amendm. Conservation Order No. 341D for the Prudhoe Oil Pool and Area Injection Order No. 4C to include the Put River Sandstone Sept. 13, 2005 River Sandstone, and is 80 -100 feet thick. The HRZ shale overlies the Kalubik Formation and is 180-200 feet thick with a calculated fracture pressure of 6825 psia based on the dipole sonic log in well 15-14A. These units separate the Put River Sandstone from shallower stray sands of the Colville Mudstone. Based on the bounding shale thicknesses and fracture pressures, the expected maximum injection pressure for the potential Put River Sandstone injection would not initiate or propagate fractures through the confining strata, and, therefore, would not allow injection or formation fluid to enter any freshwater strata. The closest known freshwater-bearing sands are over 6000 vertical feet above the Put River interval. Hvdrocarbon Recoverv and Depletion Plan 20 AAC 25.402(c)(14) Estimated Put River Sandstone hydrocarbons in place are discussed in Section II of the "Application for Amendment of the Conservation Order No. 341D for the Prudhoe Oil Pool and Area Injection Order No. 4C to include the Put River Sandstone". Material balance calculations for the Southern lobe of the Put River Sandstone indicate that primary depletion would recover approximately 10% of the estimated stock tank original oil in place. Early screening of analog reservoirs indicates likely total recovery from waterflooding to be approximately 20% - 35% of the oil in place (incremental 10% - 25% improvement relative to primary depletion) with estimated peak production rates of 3000 - 9000 bopd and a production life of 5 years. A reservOlr simulation study to evaluate the waterflood options IS scheduled for completion by January 2006. Development of the Southern lobe is currently envisioned 7/8 Addendum to Section V "A.jection Operations" of the Application for Amendm. Conservation Order No. 341D for the Prudhoe Oil Pool and Area Injection Order No. 4C to include the Put River Sandstone Sept. 13, 2005 to include one to five production wells with one to five injection wells. The injection wells would be drilled from existing pads and utilize the current seawater distribution system at DS #1. Offtake from the Put River Sandstone will be managed to balance voidage replacement. Mechanical Condition of Offset Wells 20 AAC 25.402(c)(15) A report on the mechanical condition of each well that has penetrated the Put River Sandstone within one-quarter mile radius of a proposed injection well will be provided to the Commission with each application for a Permit to Drill or Application for Sundry Approval for any injection wells. 8/8 #3 STATE OF ALASKA . NOTICE TO PUBLISHER . ADVERTISING ORDER NO. ADVERTISING INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED AO-02614007 AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF ORDER ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE SEE BOTTOM FOR INVOICE ADDRESS F AOGCC AGENCY CONTACT DATE OF A.O. R 333 W 7th Ave, Ste 100 Jodv Colombie August 31, 2005 0 Anchorage,AK 99501 PHONE PCN M - (Q07ì 7Qi -1 ')') 1 DATES ADVERTISEMENT REQUIRED: T Anchorage Daily News September 1, 2005 0 PO Box 149001 Anchorage, AK 99514 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: Advertisement to be published was e-mailed Type of Advertisement X Legal D Display D Classified DOther (Specify) SEE A TT ACHED SEND INVOICE IN TRIPLICATE I AOGCC, 333 W. 7th Ave., Suite 100 PAGE 1 OF TOTAL OF ~I TO Anchonure. AK 99.)01 2 PAGES ALL PAGES$ REF TYPE NUMBER AMOUNT DATE COMMENTS 1 VEN 2 ARD 02910 3 4 I"IN 4MnllNT ~V (";("; Pf::M 1("; 4(,,;(,,;T I"V NMR DIST LlQ 1 05 02140100 73451 2 3 A 4 ----- '"""" /1 I¡ J ./ REQUISITIONED BY: ( ~/( '(UI/FYI,1f / IDIVISION APPROVAL: \.. /1 '-... , - vv (/ ..... . . Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: Prudhoe Bay Field Prudhoe Oil Pool Application to amend Conservation Order 341D and Area Injection Order 4C to include the Put River Sandstone within the Prudhoe Oil Pool By application dated August 19, 2005, BP Exploration (Alaska) Inc. as Unit Operator of the Prudhoe Bay Unit requested the Commission to amend Conservation Order 341D and Area Injection Order 4C to expand the definition of the Prudhoe Oil Pool to include the Put River Sandstone lying within the current areal boundaries of the Prudhoe Bay Oil Pool and to authorize underground injection into the additional defined interval. The Put River Sandstone correlates with the interval 9,638 to 9,719 measured feet on the Borehole Compensated Sonic Log, Run 2, dated September 28, 1975, in the Atlantic Richfield-Exxon NGI No.1 well. The known hydrocarbon bearing portions of the Put River Sandstone lie within T12N-R14E, T11N-R14, T11N-RI5E, and TlON- RI4E, Umiat Meridian. The Commission has tentatively scheduled a public hearing on this application for October 6, 2005 at 9:00 am at the offices of the Alaska Oil and Gas Conservation Commission at 333 West ih Avenue, Suite 100, Anchorage, Alaska 99501. A person may request that the tentatively scheduled hearing be held by filing a written request with the Commission no later than 4:30 pm on September 16,2005. If a request for a hearing is not timely filed, the Commission may consider the issuance of an order without a hearing. To learn if the Commission will hold the public hearing, please call 793-1221 after September 20,2005. In addition, a person may submit a written protest or written comments regardin~ this application to the Alaska Oil and Gas Conservation Commission at 333 West 7t Avenue, Suite 100, Anchorage, Alaska 99501. Protests and comments must be received no later than 4:30 pm on October 3, 2005 except that if the Commission decides to hold a public hearing, protests or comments must be received no later than the conclusion of the October 6,2005 hearing. If you are a person with a disab' . y. who may need special accommodations in order to comment or to a d the ~ . aring, please contact the Commission's Special Assistant Jody om e t Published Date: 9/1/05 AO: 02614007 . Anchorage Daily News Affidavit of Publication 1001 Northway Drive, Anchorage, AK 99508 . PRICE OTHER OTHER OTHER OTHER OTHER GRAND AD# DATE PO ACCOUNT PER DAY CHARGES CHARGES #2 CHARGES #3 ŒARGES#4 ŒARGES #5 TOTAL 591152 09/01/2005 02614007 STOF0330 $212.80 $212.80 $0.00 $0.00 $0.00 $0.00 $0.00 $212.80 STATE OF ALASKA THIRD JUDICIAL DISTRICT Kimberly Kirby, being first duly sworn on oath deposes and says that she is an advertising representative of the Anchorage Daily News, a daily newspaper. That said newspaper has been approved by the Third Judicial Court, Anchorage, Alaska, and it now and has been published in the English language continually as a daily newspaper in Anchorage, Alaska, and it is now and during all said time was printed in an office maintained at the aforesaid place of publication of said newspaper. That the annexed is a copy of an advertisement as it was published in regular issues (and not in supplemental form) of said newspaper on the above dates and that such newspaper was regularly distributed to its subscribers during all of said period. That the full amount of the fee charged for the foregoing publication is not in excess of the rate charged private individuals. J¿~Yìl J !)i¿tY..is c ',. Subscribed and sworn to me before this date: Signed ~ Þp .:)(Sb 5 Notary Public in and for the State of Alaska. Third Division. Anchorage, Alaska MY COMMISSION EXPIRES: l.o hLa J 1 tío ~ --«-. ~- \\ltf (({{ff//. \,\ \. :-l t\. 5"'/1 1""" ,S ",,<æ> . ' . , . . .'< ~ ':::;'g¡'.' --- "~~ ~ QJ: ~OTARþ.Q-::: ........ --. .- ~ . . ::: PUB\..\C ~ :::~ ',~ --- ~:1g~ ::. C! . ."1À.. ~,' ~,~ ~v~::~-OF þ.\.t:. G>':y ~ /~ : ' . . . . ~,\....'\ /.I/flOn ExpireS· \ \ \ J)})JJJJ))) Notice of Public Hearing STATE OF ALASKA Alaska 011 and Gas Conservation Commission Re: Prudhoe Boy Field Prudhoe Oil Pool Application to amend Conservation Order 341D and Area Iniection Order 4C to include the Put River Sandstone within the Prudhoe 0i1 Pool By opplication doted August 1119, 2005, and re- ceived by the Alaska Oil and Gas Conservation Commission ("Commission") that some day, BF> Exploration (Alasko) Inc. (BPXA) in its capacity os Unit Operotor of the Prudhoe BQY Unit ("PBU") requested the Commission to amend Conservotion Order 341 D and Area Iniection Order 4C to eXPClnd the definition of the Prudhoe Oil Pool to include the Put River Sandstone lying within the current aré.Ol boundaries of the Prudhoe Boy Oil Pool and to au- ~~~r ~~~ ~~r::~JI~u.p~ê i ~i:tC~f~e~n~~~~;t~~~ i~~Or~~~ lates with the interval 9.638 to 9.719 meQsured feet on the Borehole Compensated Sonic LQg. Run 2, doted September 28. 1975. in the Atlantic Richfield-Exxon NGI No.1 well. The known hy' 'drocarbon bearing pOrtions of the Put River Sand- stone lie within Tl2N-R14E. T11N-R14. Tl1N-R15E, and T10N-R14E. Umiat Meridian. The Commission has tentativelY scheduled 0 pub- lic hearing on this application for October 6, 2005 at 9:00 om at the offices of the Alaska 011 and Gas Conservation Commission at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. A person may request that the tentatively scheduled hearinfi be held bY filing 0 written request with the C()mmis- slon no later than 4:30 pm on September 16. 2005. If 0 request for 0 hearing is not timely filed. the Commission may consider the issuance of on or- der without 0 hearing. To learn if the Commission will hold the public hearing. please call 793-1221 af- ter September 20. ,2005. In addition. 0 person may submit 0 written protest or written comments regarding this application to the Alaska Oil and Gas Conservation Commission at 333 West 7th Avenue, Suite 100. Anchorage, Alaska. 99501. Written Protests and comments must be received no later than 4:30 pm on October 3, 2005 except that if the Commission decides to hold 0 public hearing. written protests or com- ments must be received no later than at the con- clusion of the October 6. 2005 hearing, If YOu ore 0 person with ( disability who may need special accommodationss in order to comment or to attend the public hearing. please contact the Commission's Special Assistant JodY Colombie at 793-1221. John K. Norman Chairman AO: 02614007 PUblished Dote: 9nlO5 Public Notice . . Subject: Public Notice From: Jody Colombie <jody _ colombie@admin.state.ak.us> Date: Wed, 31 Aug 2005 10:58:52 -0800 To: Legal Ads Anchorage Daily News <legalads@adn.com> Please publish tomorrow. Jody Colombie Content-Type: application/msword Order form.doc Content-Encoding: base64 Content- Type: application/msword Put Public Notice.docl b 64 ! Content-Encoding: ase I of I 8/31/2005 II :28 AM Re: Public Notice . e Subject: Re: Public Notice From: "Ads, Legal" <legalads@adn.com> Date: Wed, 31 2005 15:36:22 -0800 Hello Jody: BE SURE TO CHECK OUT THE LEGAL NOTICES ON-LINE. WE RECENTLY CREATED NEW LEGAL SECTIONS ON-LINE ESPECIALLY FOR THE STATE OF ALASKA. WE ARE OFFERING A 90 DAY FREE TRIAL ON ALL LEGAL ADVERTISING AS OF MAY 9TH TO PROMOTE OUR NEW ON-LINE, USER FRIENDLY CATEGORY'S. PLEASE TAKE THIS TIME TO TRACK YOUR CUSTOMERS AND SEE IF ON-LINE ADVERTISING IS RIGHT FOR YOU. Following is the confirmation information on your legal notice. Please review and let me know if you have any questions or need additional information. Account Number: STOF 0330 Legal Ad Number: 591152 Publication Date(s): September 1, 2005 Your Reference or PO#: 02614007 Cost of Legal Notice: $212.80 Additional Charges: Web Link: E-Mail Link: Bolding: Total Cost To Place Legal Notice: $212.80 Your Legal Notice Will Appear On The Web: www.adn.com: XXXX Your Legal Notice Will Not Appear On The Web www.adn.com: Thank You, Kim Kirby Anchorage Daily News Legal Classified Representative E-Mail: legalads@adn.com Phone: (907) 257-4296 Fax: (907) 279-8170 On 8/31/05 10:58 AM, "Jody Colombie" <jody colombie@admin.state.ak.us> wrote: Please publish tomorrow. Jody Colombie I of I 9/1/2005 II: 12 AM 02-902 (Rev. 3/94) PUbliSheginal Copies: Department Fiscal, Depart.eceiVing AO.FRM STATE OF ALASKA ADVERTISING ORDER SEE BOTTOM FOR INVOICE ADDRESS NOTICE TO PUBLISHER ADVERTISING ORDER NO. INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE AO-02614007 F R a M AOGCC 333 West ih Avenue. Suite 100 A n('hm~up A K QQ"Ol 907-793-1221 AGENCY CONTACT DATE OF A.a. T()(iv ('C ' PHONE (Q07ì 7Qi - 1 ?? 1 , . i 1 ?OO" PCN DATES ADVERTISEMENT REQUIRED: T a Anchorage Daily News PO Box 14900 I Anchorage, AK 99514 September 1,2005 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: United states of America AFFIDAVIT OF PUBLICATION REMINDER State of ss INVOICE MUST BE IN TRIPLICATE AND MUST REFERENCE THE ADVERTISING ORDER NUMBER. A CERTIFIED COpy OF THIS AFFIDAVIT OF PUBLICATION MUST BE SUBMITTED WITH THE INVOICE. ATTACH PROOF OF PUBLICATION HERE. division. Before me, the undersigned, a notary public this day personally appeared who, being first duly sworn, according to law, says that he/she is the of Published at in said division and state of and that the advertisement, of which the annexed is a true copy, was published in said publication on the day of 2005, and thereafter for _ consecutive days, the last publication appearing on the _ day of . 2005, and that the rate charged thereon is not in excess of the rate charged private individuals. Subscribed and sworn to before me This _ day of 2005, Notary public for state of My commission expires 02-901 (Rev. 3/94) AO.FRM Public Notice Prudhoe Bay Field Put River . . Subject: Public Notice Prudhoe Bay Field Put River From: Jody Colombie <jody _ colombie@admin.state.ak.us> Date: Wed, 31 Aug 2005 11:18:16 -0800 To: uridisçlosed+tecipients:; BCC: Cynthia BMciver Robert E Mintz <robert_mintz@law.state.ak.us>, Christine Hansen <c.hansen@iogcc.state.ok.us>, Terrie Hubble <hubbletl@bp.com>, Sondra Stewman <StewmaSD@BP.com>, Scott & Cammy Taylor <staylor@alaska.net>, stanekj <stanekj@unocal.com>, ecolaw <ecolaw@trustees.org>, roseragsdale <roseragsdale@gci.net>, trmjr 1 <trmjr l@aol.com>, jbriddle <jbriddle@marathonoil.com>, shaneg <shaneg@evergreengas.com>, jdarlington <jdarlington@forestoil.com>, nelson <knelson@petroleumnews.com>, cboddy <cboddy@usibelli.com>, Mark Dalton <mark.dalton@hdrinc.com>, Shannon Donnelly <shannon.donnelly@conocophillips.com>, ~9r§e$t¢r" <ll1ark.p.wor5~~ter@conocophillips.com>, Bob <bob@inletkeeper.org>, wdv <wdv@dnr.state.ak.us>, tjr <tjr@dnr.state.ak.us>, bbritch <bbritch@alaska.net>, mjnelson <mjnelson@purvingertz.com>, Charles O'Donnell <charles.o'donnell@veco.com>, "Randy L. Skillern" <SkilleRL@BP.com>, "Deborah J. Jones" <JonesD6@BP.com>, "Steven R. Rossberg" <RossbeRS@BP.com>, Lois <lois@inletkeeper.org>, Dan Bross <kuacnews@kuac.org>, Gordon Pospisil <PospisG@BP.com>, "Francis S. Sommer" <SommerFS@BP.com>, Mikel Schultz <Mikel.Schultz@BP.com>, "Nick W. Glover" <GloverNW@BP.com>, "Daryl J. Kleppin" <KleppiDE@BP.com~.' "Janet D. Pl~~t" -<PlattJD@B~.com>, "Rosanne M. Jacobs~n" <Jacobs~@BP.com;Þ.; ddonkel<dd9J1ke1@cfl.rr.c9111>-, mckay <;;;mckay@gçLnet>; ar ";::barbara.f.ft.lllmer@conöcophillips.com>,.··bocastwf<bocastwf@bp;com>,· Charles·B~~· r <barker@usgs.gov>, doug_schultze <doug_schultze@xtoenergy.com>, Hank Alford <hank.alford@exxonmobil.com>,l\fIark Kovac <yesno1@gcLnet>, gspfoff <gspfofI~aurorapower.com> ,Qreg~Nady ... ...... .nady@shell.com>, Fred Steece 5fred.steêêê@state.sd.us>, rcrÖtty<::rcrotty@cm.com>, jejones <j ej ones@aurorapower.com>, <::dapa@alaska.net>,jroderick <jroderick@gcLnet>, eyancy <eyancy@seal-tite.net>, "James M. <james.m.ruud@conocophillips.com>, Brit Lively <mapalaska@ak.net>, jah <jah@dnr.state.ak.us>, Kurt E Olson <kurt_olson@legis.state.ak.us>, buonoje <buonoje@bp.com>, Mark Hanley '5imark_hanley@anadarko.com>, 10ren_Ieman <loren_leman@gov.state.ak.us>, Julie HOll1e <julie_houle@dnr.state.ak.us>, John W Katz <jwkatz@sso.org>, Suzan J Hill <suzan _ hill@dec.state.ak.us>, tablerk <ta~l~r~~unoca~iCQm>,~}~dy Havelock <beh@dnr.state.ak.us>, bpopp <bpopp@borough.kenaLak.us>, Jim <jimwhite@satx.rr.com>, "John S. Haworth" <john.s.haworth@exxonmobil.com>, marty <marty@rkindustrial.com>, ghammons <ghammons@aol.com>, rmclean <rmclean@pobox.alaska.net>-, mkm7200 <mkm7200@aol.com>, Brian Gillespie <ifbmg@uaa.alaska.edu>, David L Boelens <dboelens@aurorapower.com>, Todd Durkee <TDURKEE@KMG.com>, Gary Schultz <~é1fY_schultz@dnr.state.ak.us>, Wayne Rancier <RANCIER@petro-canada.ca>, Bill Miller <Bill_ Miller@xtoalaska.com>, Brandon Gagnon <bgagnon@brenalaw.com>, Paul Winslow <pmwinslow@forestoil.com>,Cì~ Catron <catrongr@bp.com>, Sharmaine <cQpel~~v@bp.~om>, Kl'i~~inDirks<kristin _ dirks@dnr.state.ak.us>, Kaynell <kjzeman@marathonoil.com>, Johp. Tower <John.Tower@eia.doe.gov>, Bill Fowler <BilLF owler@anadarko.COM>, Va ßwarti <vaughn.swartz@rbccm.com>, <scott.cr~~wick@rnms.gov>,~tªd M Im<P1ckimbs@BP.com>, Steve Lambe <::låmb~s@unoça.l.cöm>, ja.ck newell<j ack.newe~~@acsa.låskå.nø~, Jam~$ lof2 8/31/2005 II :28 AM Public Notice Prudhoe Bay Field Put River . . <james_scherr@yahoo.com>, david roby <David.Roby@mms.gov>, Tim Lawlor <Tim_Lawlor@ak.blm.gov>, Lynnda Kahn <Lynnda_Kahn@fws.gov>, Jerry Dethlefs <Jerry.C.Dethlefs@conocophillips.com>, Jerry Dethlefs <n1617@conocophillips.com>, crockett@aoga.org, Tamera Sheffield <sheffield@aoga.org>, Jon Goltz <Jon.Goltz@conocophillips.com>, Roger Belman <roger.belman@conocophillips.com>, Mindy Lewis <mlewis@brenalaw.com>, Harry Lampert <harry.lampert@honeywell.com>, Kari Moriarty <moriarty@aoga.org>, Patty Alfaro <palfaro@yahoo.com>, Jeff <smetankaj@unocal.com>, Todd Kratz <T oddKratz@chevron.com>, Gary Rogers <gary Jogers@revenue.state.ak.us>, Arthur Copoulos <Arthur _ Copoulos@dnr.state.ak.us>, Phillip Ayer <pmayers@unocal.com> Content-Type: application/pdf Put Public Notice.pdf Content-Encoding: base64 2of2 8/31/2005 II :28 AM Citgo Petroleum Corporation PO Box 3758 Tulsa, OK 74136 Mona Dickens Tesoro Refining and Marketing Co. Supply & Distribution 300 Concord Plaza Drive San Antonio, TX 78216 Jerry Hodgden Hodgden Oil Company 408 18th Street Golden, CO 80401-2433 Kay Munger Munger Oil Information Service, Inc PO Box 45738 Los Angeles, CA 90045-0738 Mark Wedman Halliburton 6900 Arctic Blvd. Anchorage, AK 99502 Ciri Land Department PO Box 93330 Anchorage, AK 99503 Jill Schneider US Geological Survey 4200 University Dr. Anchorage, AK 99508 Darwin Waldsmith PO Box 39309 Ninilchick, AK 99639 Penny Vadla 399 West Riverview Avenue Soldotna, AK 99669-7714 Bernie Karl K&K Recycling Inc. PO Box 58055 Fairbanks, AK 99711 . Mary Jones XTO Energy, Inc. Cartography 810 Houston Street, Ste 2000 Ft. Worth, TX 76102-6298 Robert Gravely 7681 South Kit Carson Drive Littleton, CO 80122 Richard Neahring NRG Associates President PO Box 1655 Colorado Springs, CO 80901 Samuel Van Vactor Economic Insight Inc. 3004 SW First Ave. Portland, OR 97201 Schlumberger Drilling and Measurements 2525 Gambell Street #400 Anchorage, AK 99503 Baker Oil Tools 4730 Business Park Blvd., #44 Anchorage, AK 99503 Gordon Severson 3201 Westmar Cr. Anchorage, AK 99508-4336 James Gibbs PO Box 1597 Soldotna, AK 99669 Richard Wagner PO Box 60868 Fairbanks, AK 99706 Williams Thomas Arctic Slope Regional Corporation Land Department PO Box 129 Barrow, AK 99723 . David McCaleb IHS Energy Group GEPS 5333 Westheimer, Ste 100 Houston, TX 77056 George Vaught, Jr. PO Box 13557 Denver, CO 80201-3557 John Levorsen 200 North 3rd Street, #1202 Boise, 10 83702 Michael Parks Marple's Business Newsletter 117 West Mercer St, Ste 200 Seattle, W A 98119-3960 David Cusato 200 West 34th PMB 411 Anchorage, AK 99503 Ivan Gillian 9649 Musket Bell Cr.#5 Anchorage, AK 99507 Jack Hakkila PO Box 190083 Anchorage, AK 99519 Kenai National Wildlife Refuge Refuge Manager PO Box 2139 Soldotna, AK 99669-2139 Cliff Burglin PO Box 70131 Fairbanks, AK 99707 North Slope Borough PO Box 69 Barrow, AK 'I ~ 99723 ~ I ~ f? (Yì q.\.D #2 [Fwd: Notice of Public Hearing] . . Sfubject: [Fwd: Notice of Public Hearing] From: Jane Williamson <jane _ williamson@admin.state.ak.us> Date: Mon, 29 2005 14:21 :47 -0800 Jody, This was the notice that BP had asked us to hold. They've cleared it with me to notice. Jane -------- Original Message -------- Subject: Notice of Public Hearing Date: Mon, 22 Aug 2005 14:17:05 -0800 From: Jane Williamson <jane williamson@admin.state.ak.us> Organization: State of Alaska To: Jody J Colombie <jody colombie@admin.state.ak.us> Revised with John's changes. Jane Williamson, PE <jane williamson(a?admin.state.ak.us> Reservoir Engineer Alaska Oil and Gas Conservation Commission Put Public Content-Type: application/msword Content-Encoding: base64 I of I 8/29/20055:07 PM RE: Amendment of Prudhoe pool rules and AI add Put River San... . ~i!1>ject: RE: Amendment of Prudhoe pool rules and AIO to add Put River Sandstone , "From: "Dean, James A" <deanja@bp.com> Date: Mon, 29 Aug 2005 14:40:51 -0800 TC):JêlneWilliamsOI1 <jêlne _ williamson@admin.state.ak.us>, "Senden, Leslie B" <SendenLB@bp.com> CC: Robert P Crandall <bob_crandall@admin.state.ak.us>, Winton GAubert <winton_aubert@admin.state.ak.us>, Cathy P Foerster <cathy_foerster@admin.state.ak.us>, John Norman <john_norman@admin.state.ak.us>, Dan T Seamount <dan_seamount@admin.state.ak.us>, Jody J Colombie <jody_colombie@admin.state.ak.us> Jane, As we discussed this afternoon, please proceed with the public notice for hearing. We plan to submit an Addendum to Section V "Area Injection Operations" that will address the requirements in 20 AAC 25.402 and provide more information about the depletion plan and benefits of water injection. I expect to submit that Addendum to you late next week after partners have reviewed the document. --James From: Jane Williamson [mailto:jane_williamson@admin.state.ak.us] Sent: Tuesday, August 23, 2005 9:58 AM To: Dean, James A; Senden, Leslie B Cc: Robert P Crandall; Winton G Aubert; Cathy P Foerster; John Norman; Dan T Seamount; Jody J Colombie Subject: Amendment of Prudhoe pool rules and AIO to add Put River Sandstone James and Leslie, As we've discussed by phone, there are a few items which must be addressed in your application prior to approval of amendment of Area Injection Order 4C to allow injection into the Put River sandstone. Specifically you will need to address the information requirements as laid out in 20 MC 25.402(b). Information requirements include such things as evidence that the fluid injection will not initiate or propagate fractures through the confining zones, evidence of fluid compatibility of the injectant with the formation and reservoir fluids, and information concerning incremental recovery with injection of water (or MI if appropriate). A more thorough discussion of the depletion plan and benefits of water injection is needed for both amendment of the Pool Rules and the Area Injection Order. It is recognized that you have not yet identified wells for water injection. The analysis of well integrity may wait until you supply a sundry for completion of injectors. Per your request, we will hold off on publishing the notice for hearing until you get back to the Commission. Jane I of 1 8/29/20055:07 PM Amendment of Prudhoe pool rules and AIO to ¡put River Sandstone . Subject: Amendment of Prudhoe pool rules and AID to add Put River Sandstone From: Jane Williamson <jane_williamson@admin.state.ak.us> Date: Tue, 23 Aug 2005 09:58:09 -0800 To: J¡un.~$Dean <deanj a@bp.com>, "SetldeIT;Les1ieBt'<Se!1de~B@BP . com::> cc: Rq~~rt P Crandall <bob_crandall@admin.state.ak.us>,Wint@tIG Aubert <wintoñîaubert@admin.state.ak.us>, Cathy P Foerster <cathy_foerster@admin.state.ak.us>, John Norman <' _ norman@admin.state.ak.us>, Dan T Seamount <dan _ seamount@admin.state.ak.us»; JodyJ Col ie <jody____çolombie@admin.state.~¡us> James and Leslie, As we've discussed by phone, there are a few items which must be addressed in your application prior to approval of amendment of Area Injection Order 4C to allow injection into the Put River sandstone. Specifically you will need to address the information requirements as laid out in 20 MC 25.402(b). Information requirements include such things as evidence that the fluid injection will not initiate or propagate fractures through the confining zones, evidence of fluid compatibility of the injectant with the formation and reservoir fluids, and information concerning incremental recovery with injection of water (or MI if appropriate). A more thorough discussion of the depletion plan and benefits of water injection is needed for both amendment of the Pool Rules and the Area Injection Order. It is recognized that you have not yet identified wells for water injection. The analysis of well integrity may wait until you supply a sundry for completion of injectors. Per your request, we will hold off on publishing the notice for hearing until you get back to the Commission. Jane Jane Williamson, PE <jane williamson(tì¿admin.state.ak.us> Reservoir Engineer Alaska Oil and Gas Conservation Commission 1 of 1 8/23/2005 2:06 PM #1 bp . . o August 19, 2005 BP Exploration (Alaska) Inc. 900 East Benson Boulevard PO. Box 196612 Anchorage, Alaska 99519-6612 (907) 561-5111 Mr. John Norman, Chair Alaska Oil and Gas Conservation Commission 333 West 7th Ave, Suite 100 Anchorage, AK 99501 R ~ r:: '\/E'~"" , "l~" rí- ~w , U AUG 1 f) Z005 t\ía~k¡;¡ Oil & Cons- Commission Re: Application for Amendment of Conservation Order No. 341D for the Prudhoe Oil Pool and Area Injection Order No. 4C to include the Put River Sandstone Dear Chairman Norman: BPXA, as Operator of the Prudhoe Bay Unit, hereby submits an application to expand the existing Prudhoe Oil Pool and Area Injection Order to include the Put River Sandstone. Since the northern lobe of the Put River Sandstone is in hydraulic communication with the Sag River Sandstone which is part of the current Prudhoe Oil Pool, expansion of the Prudhoe Oil Pool is appropriate for this small-scale development. If you have any questions about the application, please contact James Dean (564-4668) or Leslie Senden (564-5488). Sincerely, ~hA.~. L~ Tim Verseput l) Gravity Drainage Team Lead Greater Prudhoe Bay cc: Dan Kruse, ConocoPhillips Alaska, Inc. Sonny Rix, ExxonMobil Jane Williamson, AOGCC Mike Kotowski, DNR ... . . .' ' Application for Amendment of Conservation Order No. 341D for the Prudhoe Oil Pool and Area Injection Order No. 4C to include the Put River Sandstone August 19, 2005 ~ Prudhoe Oil Pool Rules & Area .tion Order No. 4C Amendment Application . Aug. 19, 2005 v Table of Contents I. Geology ..... ............... ...................................................... .............................. ........ 3 Introduction..................................................................................................................... 3 Stratigraphy..................................................................................................................... 3 Lithology/Depositional Environment............................................................................. 5 Put River Sandstone Structure........................................................................................ 6 Pool Limits...................................................................................................................... 7 II. Reservoir Description and Development Planning ........................................ 8 Rock and Fluid Properties............................................................................................... 8 Hydrocarbons in Place.................................................................................................. 12 Reservoir Performance.................................................................................................. 12 Development Planning .................................................................................................. 13 Development Options................................................................................................... 14 Development Plan ......................................................................................................... 14 Reservoir Management Strategy................................................................................... 15 III. F acili ties ................................... .... .......... ........... ............. .... .............................16 General Overview......................................................................................................... 16 Drill Pads and Roads..................................................................................................... 16 Pad Facilities and Operations........................................................................................ 16 Flow Stations................................................................................................................ 16 IV . Well Operations..............................................................................................17 Drilling and Well Design .............................................................................................. 17 Reservoir Surveillance Program................................................................................... 18 V. Area Injection Operations .............................................................................19 VI. Proposed Amendment to Prudhoe Oil Pool Rule........................................ 20 VII. Proposed Amendment to Area Injection Order No. 4C ...........................21 VIII. List of Exhibits ............................................................................................22 2/44 Prudhoe Oil Pool Rules & Area Iction Order No. 4C Amendment Application . Aug. 19, 2005 I. Geology Introduction The Put River Sandstone is located on Alaska's North Slope within the Prudhoe Bay Unit, as illustrated in Exhibit 1-1. It overlies the Kingak Shale and Sadlerochit Group in the vicinity of Drill Sites 1,2,5,6, 7, 15, 18, NGI, and WGI. The Put River Sandstone is the sandstone interval that correlates with the interval 9,638 to 9,719 feet measured depth on the Schlumberger Borehole Compensated Sonic Log Run 2 dated September 28, 1975, in the Atlantic Richfield-Exxon NGI No.1 Well (API 50-029-20171). The Put River Sandstone, along with the Kalubik Formation (shale and siltstone), is part of the Put River interval that lies stratigraphically above the Lower Cretaceous Unconformity (LCU) and below the Highly Radioactive Zone (HRZ) (Exhibit 1-2). The Prudhoe Bay Owners propose including the Put River Sandstone in the Prudhoe Oil Pool Rules and the Area Injection Order for the Eastern Operating Area. The addition of the Put River Sandstone is based on the direct juxtaposition of the northern extent of the Put River Sandstone with the Sag River Sandstone which is part of the current Prudhoe Oil Pool. The proposed amendments to the Prudhoe Oil Pool Rules and Area Injection Order are intended to encompass any area within the Prudhoe Bay Unit with Put River Sandstone. The Put River Sandstone was included as part of the Prudhoe Bay (Permo-Triassic) Reservoir in the Prudhoe Bay Unit Agreement and was evaluated with core and RFf measurements in wells NGI-7, NGI-13, NGI-14, WGI-04, and 02-14 from 1978 - 1980. In the early 1990's, RFf measurements were also collected in wells 15-28 and 15-47. The Put River Sandstone was perforated and tested in wells 02-23A, 1-14, 15-41B, 15- 09A, and 18-27C in 2004 and 2005. Wells 02-23A and 15-09A confirmed black oil accumulations and wells 15-41B and 18-27C produced gas condensate. Stratigraphy The Put River Sandstone was deposited in the Early Cretaceous geologic time period, between 100 and 130 million years before present. Exhibit 1-2 shows a portion of the open-hole wireline logs from the Richfield-Exxon NGI No.1 Well (API 50-029-20171). 3/44 ~ Prudhoe Oil Pool Rules & Area .tion Order No. 4C Amendment Application . Aug. 19, 2005 This type log illustrates the stratigraphic definition of the Put River Sandstone. The log is scaled in measured depth (MD) and also has a true vertical depth subsea (TVDss) track. In the NGI No. 1 well the base of the Put River Sandstone occurs at 9,719'MD (-8076'TVDss) and the top occurs at 9,638' MD (-8011'TVDss). Elsewhere the Put River Sandstone is interbedded with shales and siltstones of the Kalubik Formation. Together, the Put River Sandstone and Kalubik Formation make up the Put River interval. The Put River interval lies unconformably above Jurassic and older strata and conformably below the Cretaceous Highly Radioactive Zone (HRZ). The Lower Cretaceous Unconformity (LCD) is the basal unconformity of the Put River interval. The LCU is evidenced by a distinct change in lithofacies, angular discordance with underlying strata, and in palynological and micopaleontological assemblages (Exhibit 1-3). In its southern extent, the Put River interval overlies the Jurassic Kingak Shale. In the most northeastern extent, under the NGIIWGI area, the Put River interval lies directly on the Triassic Sag River Sandstone. The sediments deposited in the Put River interval were locally derived from an exposed highland to the northeast and represent an overall marine transgression following uplift and erosion. Four vertically significant and laterally extensive sandstone bodies (or lobes) have been correlated within the Put River interval. They are termed the Southern, Central, Western, and Northern lobes of the Put River Sandstone (Exhibit 1-4). The Northern lobe comprises the entire Put River interval, as shown in the type log of NGI-Ol (Exhibit 1-2). The remaining three lobes are stratigraphically equivalent to the Northern lobe and are interbedded with the Kalubik Formation (Exhibit 1-3). Biostratigraphic age control confirms these correlations. The locus of deposition for each sandstone lobe was controlled by the interplay of erosional and structural paleotopography formed along the LCU, and sediment dispersal. There appears to have been two main pulses of sandstone deposition within the Put River interval. The first is recorded by the A2 and A4 sandstones. The A2 sandstone lies directly on the LCU and is thickest in the south. The Southern lobe of the Put River Sandstone is entirely composed of the A2 sandstone where it is up to 41 feet thick. Sediment accumulation was constrained by erosional paleotopography into the Kingak 4/44 . ' Prudhoe Oil Pool Rules & Area ltion Order No. 4C Amendment Application . Aug. 19, 2005 Shale. The A4 sandstone is separated from the A2 sandstone by a thin shale/siltstone layer. The A4 sandstone is thickest within the Midfield Graben (up to 22 feet thick), and presumably filled remnant structurally-controlled paleotopography. The Central lobe of the Put River Sandstone is entirely composed of the A4 sandstone. Following deposition of the A sandstones, marine transgression limited the supply of coarse-grained sediment. Many wells contain a layer with an anomalously high gamma-ray log signature in this interval (Exhibit 1-5). The B sandstone overlies this thin transgressive package representing the second pulse of coarse-grained deposition. It is up to 75 feet thick, and comprises the Western lobe of the Put River Sandstone. To the south the distal portion of the B sandstone correlates to thin sandstone/siltstone beds. The Northern lobe of the Put River Sandstone is composed of both the A and B sandstones. The transgressive unit separating the two is not well- developed in this area, presumably due to proximity of the clastic source. Thus the B sandstone typically lies directly on the A sandstone in the Northern lobe, forming one composite sandstone body that is up to 69 feet thick. LithologylDepositional Environment Southern lobe The entire A2 sandstone was cored in well 02-14 (Exhibit 1-6). Here the sandstone is a medium-grained, moderately-to well-sorted chert-lithic arenite with localized pebble layers. The detrital mineralogy is predominantly quartz and chert; with minor amounts of feldspar and fine-grained lithic fragments. Glauconite occurs as disseminated and granular accumulations in concentrations of up to 15%. Clay content is largely associated with the finer-grained and poorly-sorted intervals; it is not pervasive through the matrix. Beds generally fine upward and bioturbation is common. Visible porosity ranges from 10-20% with little pervasive cementation. Quartz overgrowths occur on most grains, with quartz cement best developed in well-sorted sandstone beds. Siderite cement occurs locally mostly near the top and base of the A2 sandstone. The A2 sandstone is interpreted as a lower shoreface deposit. An abundant assemblage of trace fossils, sedimentary structures, and glauconite content support this interpretation. 5/44 Prudhoe Oil Pool Rules & Area ltion Order No. 4C Amendment Application . Aug. 19, 2005 Central lobe No core was collected from the A4 sandstone within the Central lobe of the Put River Sandstone. However, cuttings from well 15-09A were analyzed for biostratigraphic age control and conftrm deposition in a marine setting. Western lobe One well (15-14A) was cored with percussion side-wall cores (Exhibit 1-7). These cores are from the B sandstone which is roughly 6 feet thick in this well. The B sandstone is composed of a ftning upwards package of fine-grained to very fine-grained sandstone. Cuttings were described from well 15-48 (Exhibit 1-4) through the B sandstone. Here the B sandstone is 42 feet thick and is composed of ftne-grained, well-sorted, subangular to subrounded sandstone containing quartz, chert, glauconite, and some pyrite. Cements include silica, as well as siderite. Northern lobe The NGI-07 (Exhibit 1-8), NGI-13 and WGI-04 wells were cored in the Northern lobe and recovered partial sections through the Put River interval. The Put River Sandstone in all of the wells consists of pebble conglomerates of chert, quartz, and glauconite with a sandstone matrix. The conglomerate clasts in this area were presumably derived from erosIOn of the underlying Permo-Triassic formations. This sandy conglomerate accumulated directly over the LCU during marine transgression. Sedimentary structures are ambiguous, however the presence of glauconite and dinoflagellate cysts in the WGI-04 core suggest deposition in a marine setting. The southern extent of conglomeratic facies in this lobe is not constrained by core. Put River Sandstone Structure Exhibit 1-09 is a top Put River interval (BHRZ) structure map with a contour interval of 50 feet. The Put River interval is bisected by the Midfield Graben structure which is a Brookian reactivation of an older pre-Ivishak structural trend. The Midfield Graben has resulted in a number of potentially isolated compartments within the field, especially in 6/44 Prudhoe Oil Pool Rules & Area ~on Order No. 4C Amendment Application . Aug. 19, 2005 the Western lobe. The Northern and Southern lobes also have faulting present which is related to the Brookian reactivation, but the vertical throw of these faults is small and likely does not result in significant reservoir compartmentalization. A large majority of the faults and structure interpreted at the Ivishak and deeper formations are truncated by the LCU. Exhibit 1-10 is a north-south oriented structural cross-section along the axis of the Western and Southern Put River lobes (see Exhibit 1-09 for location). This exhibit shows the overlying and underlying stratigraphy as well as the fault complexity of the area. Exhibit 1-11 is a strike-oriented seismic traverse cutting across the Western and Northern Put River lobes (see Exhibit 1-09 for location). This exhibit shows the faulting in the Midfield Graben as well as the truncation of the deeper Kingak and Ivishak formations by the LCU. Pool Limits The Prudhoe Bay Owners propose including the Put River Sandstone in the defined interval of the Prudhoe Oil Pool in the Prudhoe Oil Pool Rules and the Area Injection Order for the Eastern Operating Area. The addition of the Put River Sandstone is based on the direct juxtaposition of the northern extent of the Put River Sandstone with the Sag River Sandstone which is part of the current Prudhoe Oil Pool. The areal limit of the Prudhoe Oil Pool will remain unchanged; however, a vertical expansion of the Pool limits to include the Put River Sandstone is requested. 7/44 Prudhoe Oil Pool Rules & Area .tion Order No. 4C Amendment Application . Aug. 19, 2005 II. Reservoir Description and Development Planning Rock and Fluid Properties The available core data and well log control was used to estimate the rock properties and net sandstone volume of the Put River Sandstone. Fluid properties were determined from PVT analysis of dowIThole and surface samples from wells 02-23A, 15-09A, 15-41B, and 18-27C. Porosity, Permeability, and Water Saturation Rock properties for the A2 sandstone were estimated using a petrophysical log model calibrated to the core data from well 02-14. Geolog's Multimin software was used as the porosity/lithology/water saturation solver and was based on gamma ray, density, neutron porosity, sonic, and resistivity logs. A permeability algorithm was derived based on a multiple regression solution between core permeability and log data. The Multimin log model and permeability algorithm were then applied to a total of 14 wells across the Southern lobe that contained a full suite of well logs. Average porosity and water saturations are 19% and 46%, respectively. Permeability measured from core averages 173 mD. No core data exists for the A4 sandstone, and only minimal core data (sidewall cores from 15-14A and cutting descriptions from 15-28) was collected from the B sandstone. Well 15-14A penetrated 6 feet of the B sandstone near the western terminus. Average porosities and permeabilities are 16% and 4mD, respectively. While numerous wells penetrate these sandstones and define their lateral extent, most only contain cased-hole gamma ray and neutron porosity logs. The porosity distribution calculated for the A2 sandstone was applied to the A4 and B sandstones based on the similar lithology seen in available core data. The water saturation derived from the A2 sandstone was also applied to the A4 sandstone; however, an average water saturation of 28% was applied to the B sandstone. This value was calculated from a petrophysical log model of well 15-47 across the B sandstone. Core data exists from two wells located in the far northern extent of the A/B sandstone. 8/44 Prudhoe Oil Pool Rules & Area aon Order No. 4C Amendment Application . Aug. 19, 2005 Cores from wells NGI-07 and NGI-13 have an average porosity of 13% and water saturation of 13%. Permeability measured from core averages 90 mD. While numerous wells penetrate the A/B sandstone, most only have a partial suite of logs, limiting the ability to develop a petrophysical log model. The southern extent of conglomeratic facies is unknown for the A/B sandstone; however sonic log responses suggest that this interval becomes less conglomeratic to the south. Based on comparisons to the A2 and B sandstones, and core data of sandstone layers in the NGI-07 well a porosity of 17% and a water saturation of 28% was used for the southern half of the A/B sandstone. A summary of the rock properties for the Put River Sandstone is detailed below. Sandstone Porosity Permeability Water Saturation A2 19% 173mD 46% A4 19%1 nm 46%1 B 19%1 nm 28% AIB north 13% 90mD 13% AIB south 17%2 nm 28%2 Note: lderivedfrom the A2 sandstone, 2derivedfrom core data and comparisons to the B and A2 sandstones, nm - not measured. Net Pay Southern lobe - A2 sandstone Net pay was determined by a gamma ray cutoff and a minimum porosity of 12%. Exhibit IT-I shows a cross plot of permeability vs. porosity. The porosity versus permeability relationship of core data from the Put River Sandstone shows that 12% porosity represents roughly 1 mD permeability for sandstone lithofacies. Net pay (Exhibit IT-2) was calculated directly from the log model outputs of 14 wells. These results were used to determine net pay in 30 additional offsetting wells that did not contain a full suite of logs. Central and Western lobe - A4 and B sandstones Net pay for the Central (Exhibit IT-3) and Western (Exhibit IT-4) lobes was calculated in 9/44 Prudhoe Oil Pool Rules & Area .tion Order No. 4C Amendment Application . Aug. 19, 2005 27 and 54 wells, respectively. The net pay criteria developed for the A2 sandstone and the petrophysical log model of well 15-47 was used to determine net pay for the A4 and B sandstones. Northern lobe - A/B sandstone Net pay for the Northern lobe was calculated in 73 wells (Exhibit 11-5). The available core data and criteria derived from the A2 sandstone was used to determine net pay in the A/B sandstone. Fluid PVT Data Southern lobe The Southern lobe contains black oil. Reservoir fluid properties were evaluated using a dowIThole oil sample collected from well 02-23A. The bubble point pressure was 2815 psia. The API gravity was 26.90 with a solution gas oil ratio (GOR) of 548 scflbbl. The formation volume factor was 1.293 res bbVstb with an oil viscosity of 1.84 cP at 3190 psia and 181 degrees FahreITheit. Central lobe The Central lobe contains black oil. Reservoir fluid properties were evaluated using a dowIThole oil sample collected from well 15-09A. The bubble point pressure was 2275 psia. The API gravity was 31.2° with a solution gas oil ratio (GOR) of 485 scflbbl. The formation volume factor was 1.230 res bbVstb with an oil viscosity of 1.06 cP at 3905 psia and 170 degrees FahreITheit. Western lobe The Western lobe contains a gas condensate. Reservoir fluid properties were evaluated by recombining surface condensate and gas samples from well 15-4113. During a production test, well 15-41B produced gas and condensate with a gas-oil ratio of 24,650 scflbbl. This GOR was used for the recombination analysis. The dewpoint pressure was 3435 psia. The condensate API gravity was 57.0°. Northern lobe The Northern lobe contains a gas condensate. Reservoir fluid properties were evaluated 10/44 Prudhoe Oil Pool Rules & Area ~on Order No. 4C Amendment Application . Aug. 19, 2005 by recombining surface condensate and gas samples from well 18-27C. During a production test, well 18-27C produced gas and condensate with a gas-oil ratio of 41,200 scflbbl. This GOR was used for the recombination analysis. The dewpoint pressure was 3215 psia. The condensate API gravity was 59.1°. Exhibit II-6 shows a summary of the fluid properties for each Put River lobe. Initial Pressure & Temperature (all pressures at a reservoir datum of -8100' sstvd) Southern lobe In the Southern lobe, the initial reservoir pressure was 4163 psia based on the 1980 RFf in well 02-14. The pressure of the Put River Sandstone in this lobe has been reduced by production from the 02-27 and 02-23A and the current reservoir pressure is 2710 psia based on a March 2005 buildup test in well 02-23A. The reservoir temperature is 182 degrees FahreITheit. Central lobe In the Central lobe, the reservoir pressure is 3923 psia based on a 2004 buildup test in well 15-09A. No Put River Sandstone pressure measurements in this lobe were obtained prior to the pressure buildup test. The reservoir temperature is 164 degrees FahreITheit. Western lobe In the Western lobe, the initial reservoir pressure was 4234 psia based on the 1992 RFf in well 15-28. A 2005 static pressure measurement in well 15-41B indicated the reservoir is still near the original reservoir pressure. The current reservoir pressure is 4173 psia based on the 2005 15-41B static pressure. The reservoir temperature is 165 degrees FahreITheit. Northern lobe In the Northern lobe, the initial reservoir pressure was 4191 psia based on the 1979 RFf in well NGI-13. The Northern lobe of the Put River Sandstone is in communication with the Sag River Sandstone and has been depleted by production from the Prudhoe Oil Pool. The current reservoir pressure is 3422 psia based on a static reservoir pressure 11/44 Prudhoe Oil Pool Rules & Area ltion Order No. 4C Amendment Application . Aug. 19, 2005 measurement in well 18-27C. The reservoir temperature is 172 degrees Fahrenheit. Exhibit II-7 summarizes the fluid type, pressure, and temperature data of the Put River Sandstone. Hydrocarbons in Place Estimates of hydrocarbons in place for the Put River Sandstone reflect current well control, stratigraphic and structural interpretation, and rock and fluid properties. The Southern lobe is estimated to contain 12.6 - 19.2 million stbo with associated gas of 6.9 - 10.5 BCF in place. The estimate for the Central lobe is 1.1 - 2.7 million stbo in place with associated gas of 0.5 - 1.3 BCF. The Western lobe is estimated to contain 69.6 - 104.4 BCF in place and 108.4 - 160.4 BCF in place for the Northern lobe. A summary of the in place estimates for each lobe is detailed below. Lobe Estimate Oil in Place Estimated Gas in Place Southern 12.6 - 19.2 MMBO 6.9 - 10.5 BCF Central 1.1- 2.7 MMBO 0.5 -1.3 BCF Western nla 69.6 - 104.4 BCF Northern nla 108.4 -160.4 BCF Note: All oil in place estimates are in stock tank bbls and all gas in place estimates are at standard conditions. Reservoir Performance Well Performance Recent tests of the Put River Sandstone were accomplished by isolating the Ivishak Formation and perforating the Put River Sandstone in existing wells. Southern lobe The Southern lobe was tested with wells 02-23A and 01-14. Well 02-23A was tested for six months from August 2004 - March 2005 and averaged 1820 bopd, 0% water cut, and 5 mmcfd. A pressure buildup indicated 205 mD permeability with a skin of 1. Well 01- 12/44 Prudhoe Oil Pool Rules & Area aon Order No. 4C Amendment Application . Aug. 19, 2005 14 was tested in January 2005 and was unable to flow due to poor reservoir quality. The Put River Sandstone production data from well 2-23A is summarized in Exhibit II-8A. A casing leak in well 2-27 also produced fluids from the Put River Sandstone from 1994- 1997 with approximate initial rates of 750 bopd and 2 mmcfd. Central lobe The Central lobe was tested with well 15-09A in October 2004. The well tested 240 bopd and 120 mcfd. The Put River Sandstone production data from well 15-09A is summarized in Exhibit II-8B. Western lobe The Western lobe was tested with well 15-41B in December 2004 and April 2005. The well tested at 1.8 mmcfd with 73 bopd. The Put River Sandstone production data from well 15-41B is summarized in Exhibit II-8C. Northern lobe The Northern lobe was tested with well 18-27C. The well tested 6.8 mmcfd with 165 bopd. The Put River Sandstone production data from well 18-27C is summarized in Exhibit II-8D. Aquifer Influx Reservoir appraisal indicates no aquifer supporting the Southern, Central, Western, or Northern lobes of the Put River Sandstone. Gas Coning I Under-Running There are no indications of a free gas column in the Southern or Central lobes of the Put River Sandstone; therefore, coning or under-run mechanisms are not anticipated. The Western and Northern lobes are gas condensate reservoirs. Development Planning A reservoir model is being constructed to evaluate development options. 13/44 Prudhoe Oil Pool Rules & Area 'ection Order No. 4C Amendment Application . Aug. 19, 2005 Development Options Development options being evaluated for the Put River Sandstone include primary depletion, waterf1ood, and miscible gas flood. Primary Recovery The primary recovery mechanism is solution gas drive. Material balance calculations for the Southern and Central lobes of the Put River Sandstone indicate that primary depletion would recover approximately 10% of the STOOIP. Waterflood Waterf100d is being evaluated for the Southern lobe of the Put River Sandstone to determine incremental recovery and feasibility. Enhanced Oil Recovery (EOR) Miscible gas flooding is also being evaluated for the Southern lobe of the Put River Sandstone to determine incremental recovery and feasibility. Development Plan Put River Sandstone development is envisioned to include approximately one to five production wells in the Southern lobe with one to five injection wells. Options for the Central lobe include producing via primary depletion by recompleting existing wells. Plans for the Western lobe include potentially one to three production wells. The GOR of the Northern lobe is currently above marginal; therefore, no development is currently planned. The production wells may be completed by perforating the Put River Sandstone in existing wells or drilling sidetracks into the Put River Sandstone. Well Spacing Well spacing will be irregular with well locations determined considering local faulting and reservoir stratigraphy. 14/44 Prudhoe Oil Pool Rules & Area .on Order No. 4C Amendment Application . Aug. 19, 2005 Reservoir Management Strategy Pressure support during primary depletion will be provided from solution gas drive. If waterflood is undertaken, the voidage replacement ratio (VRR) will be maintained near 1.0 Reservoir management will be a dynamic process. The initial strategy will be derived from model studies and well test information. Development well results will increase knowledge and improve predictive capabilities resulting in potential adjustments to the initial strategy. The reservoir management strategy will continue to be evaluated throughout reservoir life. 15/44 Prudhoe Oil Pool Rules & Area .tion Order No. 4C Amendment Application . Aug. 19, 2005 III. Facilities General Overview The Put River Sandstone will be developed from existing pads and facilities within the Prudhoe Bay field. Drill Pads and Roads The Put River Sandstone is located primarily in the area of Drill Sites 1,2,6, 15, and 18. No additional pads or roads are required for Put River Sandstone development. Pad Facilities and Operations The Put River Sandstone development will utilize existing production and injection facilities. Water for a potential waterflood operation would be delivered from the existing 8" seawater injection supply line at Drillsite #1. Estimates indicate the line is sufficient to deliver water to the Put River Sandstone injection wells at 2600 psi. Flow Stations No modifications to the existing flow stations will be required. 16/44 Prudhoe Oil Pool Rules & Area aon Order No. 4C Amendment Application . Aug. 19, 2005 IV. Well Operations Existing Wells Five wells have been completed in the Put River Sandstone and are described in the "Well Performance" section. The test information is attached in Exhibit II-8. Drilling and Well Design Well Design and Completions All Put River Sandstone wells will be designed to the same specifications as current Prudhoe Oil Pool well designs. Idle wells currently completed in the Ivishak Formation may be used for Put River Sandstone development provided they meet the Put River Sandstone needs and contain adequate cement and mechanical integrity. Injectors may be pre-produced prior to converting to permanent injection. Production from these wells could improve their injectivity and be used to evaluate reservoir productivity, connectivity and pressure response, enabling refinement of current reservoir models and depletion plans. Surface Safety Valves Surface safety valves (SSV) will be included in the wellhead equipment for Put River Sandstone wells. Testing of SSVs will be in accordance with AOGCC requirements. Subsurface Safety Valves In light of developments in oil field technology, controls and experience in operating in the arctic environment, the Commission has eliminated SSSV requirements from pool rules for the Prudhoe Oil Pool (Conservation Order 363). If gas or miscible injectant (MI) injectors are drilled, subsurface safety valves (SSSV) will be installed on those wells. All well completions will be equipped with a nipple profile at a depth just below the base permafrost, should the need arise to install a dowIThole flow control device or pressure operated safety valves for future MI service or during maintenance operations. Drilling Fluids Drilling fluids will be similar to current fluids used in the Prudhoe Oil Pool. 17/44 , ' Prudhoe Oil Pool Rules & Area .on Order No. 4C Amendment Application . Aug. 19, 2005 Stimulation Methods Stimulation to eooance production or injection capability is an option for Put River Sandstone wells. Fracture stimulation, acid, or other forms of stimulation may be performed as needed in the future. Reservoir Surveillance Program Reservoir surveillance data will be collected as needed to monitor reservoir performance. 18/44 . , Prudhoe Oil Pool Rules & Area .tion Order No. 4C Amendment Application . Aug. 19, 2005 v. Area Injection Operations All injection operations will comply with the current injection operation requirements set forth in Area Injection Order No. 4C. 19/44 ~ Prudhoe Oil Pool Rules & Area &on Order No. 4C Amendment Application . Aug. 19, 2005 , . ~ VI. Proposed Amendment to Prudhoe Oil Pool Rule BP Exploration (Alaska) Inc., in its capacity as Prudhoe Bay Unit Operator, respectfully requests that the Commission amend the Pool Definition for the Prudhoe Oil Pool in Conservation Order 341D as described below: Rule 1: Pool Definition (a) The Prudhoe Oil Pool is defined as the accumulations of oil that are common to and which correlate with the accumulations found in the Atlantic Richfield - Humble Prudhoe Bay State No. 1 well between the depths of 8,110 feet and 8,680 feet and shall also include the Put River Sandstone, which is that sandstone interval that correlates with the interval 9,638 to 9,719 measured feet on the Borehole Compensated Sonic Log, Run 2, dated September 28, 1975, in the Atlantic Richfield-Exxon NGI No.1 well. 20/44 . , . Prudhoe Oil Pool Rules & Area .on Order No. 4C Amendment Application . Aug. 19, 2005 VII. Proposed Amendment to Area Injection Order No. 4C BP Exploration (Alaska) Inc., in its capacity as Prudhoe Bay Unit Operator, respectfully requests that the Commission expand the authorized injection strata for the Prudhoe Oil Pool in Area Injection Order Number 4C as described below: Rule 1: Authorized Injection Strata for Enhanced Recovery Within the affected area, authorized fluids may be injected for purposes of pressure maintenance and eIThanced recovery into strata defined as follows: For the Prudhoe Oil Pool strata which correlate with and are common to the formations found in the ARCO Prudhoe Bay State No.1 well between the measured depths of 8,110- 8,680 feet and shall also include the Put River Sandstone, which is that sandstone interval that correlates with the interval 9,638 to 9,719 measured feet on the Borehole Compensated Sonic Log, Run 2, dated September 28, 1975, in the Atlantic Richfield- Exxon NGI No. 1 well. 21/44 . . . Prudhoe Oil Pool Rules & Area aon Order No. 4C Amendment Application . Aug. 19, 2005 VIII. List of Exhibits 1-1 Put River Sandstone Location Map 1-2 Put River Sandstone Type Log (well NGI-l) 1-3 Stratigraphic Cross Section of Put River interval 1-4 Gross Sandstone Map for Put River Sandstone 1-5 15-09A Put River Sandstone Well Log 1-6 2-14 Put River Sandstone Well Log and Cored Interval 1-7 15-14A Put River Sandstone Well Log and Sidewall Core Points 1-8 NGI-07 Put River Sandstone Well Log and Cored Interval 1-9 Structure Map of Top Put River Interval 1-10 North-South Structural Cross Section 1-11 Strike-Oriented Structural Cross Section 11-1 Put River Sandstone Porosity-Permeability Crossplot 11-2 Net Pay Map of the Southern lobe 11-3 Net Pay Map of the Central lobe 11-4 Net Pay Map of the Western lobe 11-5 Net Pay Map of the Northern lobe 11-6 Fluid Properties Summary 11-7 Summary of Fluid Type, Pressures, and Temperatures 11-8A 2-23A Production Test Results 11-8B 15-09A Production Test Results 11-8C 15-41B Production Test Results 11-8D 18-27C Production Test Results 22/44 .¡!.¡'" . " '1: .. ~ <!Þ o = ~ .2-. ~ ..~ ~ >- i " . Prudhoe Oil Pool Rilles & Area Order No. 4C Amendment Applieation Aug. 19, 200S 'Ie Well Name: API: 500292017100 Spud Date: 1975-10-07 Measurement Ref: KB Ref. Elevation: 47 Drilled Depth: 10437' X Coordinate: 687351 Y Coordinate: 5971401 BHRZ ~ Bottom Highly Radioactive Zone lCU - lower Cretaceous Unconformity TSGR - Sag River Sandstone WIRE,SFL_DIL_1 WIRE,RHOB_DENS_1 (J (f) ;;! o 0.2 OHM1\< 200 1,6$- ~ 02 WIRE'~~~'7[)~~-:1 River Sandstone type log in k o N w WGI-04 NGI-07 +1 C4 Qn R p b C) �s O CD 0 S \ O CD r•r, C r+ r+ CD sv 8iostratiaraohic Aae Control In CD Q Albian 100 ft �1 ■ Albian/Apban ■ Barremian/Hauterivian ■r+ I. Jurassic F� M O S NGI-01 18-27 15-09A 15-41 15-47 2-16 2-14 2-23 Prudhoe Oil Pool Rules & Area u Order No. 4C Amendment Applieatiou Aug. 19,200S sandstone map of Put 26/44 Prudhoe Oil Pool Rules &: Area Order No. 4C Amendment Application 19,21111S Well Name: 1S-09A API: 500292120101 Spud Date: 1993-11-.27 Measurement Ret KB Ref. Elevation: 57.97 Drilled Depth: 10700' X Coordinate: 677349 Y Coordinate: 5959752 BHRZ - Bottom Highly Radioactive Zone lCU - lower Cretaceous Unconformity 15-09A showing within Put River River Sandstone 2 Prudhoe Oil Pool Rilles & Order No. 4C Amendment Application Aug. 19, 200S . Well Name: 02-14 API: 500292044000 Spud Date: 1980-05-21 Measurement Ret. KB Ref, Elevation: 64 Drilled Depth: 9800' X Coordinate: 681592 y Coordinate: 5950634 BHRZ - Bottom Highly Radioactive Zone lCU - Lower Cretaceous Unconformity 1-6. log 28/44 ~---I Prudhoe Oil Pool Rilles & Order No. 4C 19,200S Well Name: API: 500292068201 Spud Date: 2005-01-08 Measurement Ref: KB Fief, Elevation: 58,18 Drilled Depth: 13237' X Coordinate: 811463 Y Coordinate: 5959188 BHRZ - Bottom Highly Radioactive Zone lCU - Lower Cretaceous Unconformity (/) (/) < o 0,2 WIREU"IELDAHFHU QHMM 200 1,65 ~ 02 sidewall core points. Prudhoe Oil Pool Rules & Area Order No. 4C Amendment Applieation Aug. 19, 200S Well Name: NGI-07 API: 500292021000 Spud Date: 1976-05-08 Measurement Fief: KB Ref. elevation: 41 Drilled Depth: 8635' X Coordinate: 687182 Y Coordinate: 5972101 BHRZ - Bottom Highly Radioactive Zone lCU - lower Cretaceous Unconformity TSHA - Top Shublik Formation TSAD - Top Ivishak Formation ø ~ o ;¡:: o 0.2 WIR~.I~~7D!~-: 1 WiRE,GFU3HC~U GAPJ NGI-07 showing interval. 30/44 Prudhoe Oil Pool Rules & Order No. 4C Amendment AppUeatioll Aug. 19, 2005 . 1-09. top Put 31/44 Prudhoe Oil Pool Rules & Area Exhibit below Order No. 4C Amendment AppUeation Aug. 19.2005 8 10 .... II) E 8 o N § .... o 8 N The Radioactive Formation, 3 III Order No. 4C Amendment Application Ang. 19, 200S Prudhoe Oil Pool Rilles & Area B 1500 2000 B' 1500 ms 2000 33/44 41 Prudhoe on Pool Rules & Area 1 1 o 5 Order No. 4C Amendment Application Aug. 19, 200S River Core Data II pebbly sandstone 15 (%) all cores versus cross-plot River Sandstone. are divided by the 34/44 Prudhoe Oil Pool Rules & Area Order No. 4C Amendment Application Aug. 19, 2005 411 .$8&.0t& ßß!¡:.",a age.eaa ßti. Øi0 S.955'¡UIIi! S.9SS.iDI S.~5e."0: 'ii.gis.eøs 5.Me.ø&0 ßlø¡hilJilB 685.116$ 6'iUM1Ø0 m.0aa t Exhibit II-2. Net pay map of the Southern lobe Put River Sandstone. 3 " Prudhoe Oil Pool Rilles & Area Order No. 4C Amendment AppUeaûon Aug. 19, 2005 5.97Ø.en 5.965.000 5.9S8.B09 L" 575.890 680. aaa sas. aaa 5.97e.8ee s.95s.eee 5.95B.eee ¡'¡S008 ! 000 2000 FEET Net pay the River Sandstone, 36/44 " Prudhoe Oil Pool Rules & Area &1Ø-. )e8 5.91'5.8ø. 'ih97fJ.881 ß,965.888 5.96111-"8 S.'ilss.eu 676.098 Order No. 4C Ameudment Applieation 68'!hð UI 1:18$.BØ8 t Hì5QQ0 "OTUTE """~.".,",< Mil" ".. , ..,. ..,. ,.," "10" ..,. .1" ,." .... .... ,.,..,m Aug. 19, 200S Exhibit 11-4. Net pay map ofthe Western lobe of the Put River Sandstone. 875.1" 6(14.1)81 ß1'j;.0im S81l.W &ge. ... ¡h'S'æ.øee 5'-965.'68: .9;Q.m S.9ss.m 5.9'! I¡""1 899.80 37/44 ~ Aug. 19, 200S Prudhoe Oil Pool Rilles & Area Order No. 4C Amendment Applicatiun 5.988.". "!h eoo 'ta.tee 690.689 ß$S .Dee 5.968.W 5.915.8&8 5d17thm S.U5.ue 5.$5'5..... ße~¡:.m &9!hW t #'f'ATU'J'R Exhibit U-S. Net pay map of the Northern lobe of the Put River Sandstone. !hm'le.W 5.975.88Ø .97$....0. jh~.i$0. $.9.68..81 ~¡. 955. øØl 38/44 Prudhoe Oil Pool Rules & Area Order No. 4C Amendmeut Applieation Aug. 19, 2005 . Southern and Central Lobe Oil Properties Western and Lobe Gas Properties Exhibit 11-6. River Sandstone fluid summary. 39/44 Prudhoe Oil Pool Rilles & Area Order No. 4C Amendment Application 19,200S ~ Put River Reservoir Summary Centl'allobe Northern lobe nitial Reservoir Pressure Exhibit II-7. Put River Sandstone fluid type, pressure and temperature summary. 40/44 'Iò ~ Prndhoe Oil Pool Rilles & Area tion Order No. 4C Amendment Applieanon Aug. 19, 200S Put 3500 3000 2100 25 ¡ 2000 20 E E S ð 1500 15 '" & 1000 10 100 I) Exhibit ll-8A. 2-23A Put River Sandstone (A2) production test. 41/44 ~ ... Order No. 4C Amendment Applieation 19,2005 Prndhoe Oil Pool Rilles & Arca 15-09A Put River Flowback 1000 5 800 4 ~ Ii! '¡ õ! <> "" .r:> 3 II> " of Q'} 10 !5 ;:¡¡: j .. '" "" '" ;,¡ ... '" '" 400 2;' .. , ð /I. II> " G 25-Ott 29-Oct 30-0ct () 31·Oct 2a-oct Exhibit II-SR. 15-09A Put River Sandstone (A4) production test. 42/44 .. . Order No. 4C Amendment Application Ang. 19, 200S Prudhoe Oil Pool Rules & Area 1 Put River Production Gas LIfted Production Non..Qas LIfted Produc:tion 400 8 '8. .8 300 6 ~ :Ii s '" s œ; ! ~ œ: '" '" $ '" "" 200 4 (:! B :2 ~ - 0 29-Mer 3(1~r 31~r 1-Apr 2.þ¡pr 3.þ¡p-r 4.þ¡p-r S.Apr Exhibit II-8C. Put River Sandstone (B) production test. 43/44 '" ~ Aug. 19,2005 Prudhoe Oil Pool Rilles & Area Order No. 4C Ameudmeut Application 1 Production 500 I .8 i Œ Õ " HI ìi I! ¡¡ !It 'tõ II:: ., 10& " " '" 'i ! N " '" ~ ! '" '" ~ 'i 'ì .. .. .. .. .. ;! ~ ~ ; ; '" Exhibit 11-8D. 18-27C Put River Sandstone (AIB) production test. 44/44 bp . . o August 11, 2005 8P Ex.ploration (Alaska nc. 900 East Benson Bo evard P.O. Box 196612 Anchorage, Alas 9951e..6612 1907) 561-5111 CE\VED AUG 1 1 2005 aska 0\\ & Gas Cons. eommission AnchOfage···- Mr. John Norman, Chair Alaska Oil and Gas Conservation Commission 333 West 7th Ave, Suite 100 Anchorage, AK 99501 Re: Application for Amendment of Conservation rder o. 460 for the Prudhoe Oil Pool and Area Injection Order No. 4C to include the t . er Sandstone Dear Chairman Norman: ~ ~ BPXA, as Operator of the Prudhoe Ba Î~ ereby submits an application to expand the existing Prudhoe Oil Pool and Area I eet Order to include the Put River Sandstone. Since the northern lobe of the Put River ne is in hydraulic communication with the Sag River Sandstone which is rt of the c rudhoe Oil Pool, expansion of the Prudhoe Oil Pool is appropriate for this mall-se pment. If you have any questions about the application, please contact Jam Dean 5 8) or Leslie Senden (564-5488). Sincerely, cd- ¡¿ Tim~ Gravity Drainage Te m Lead Greater Prudhoe B y cc: Dan Kr se, ConocoPhiJIips Alaska, Inc. Sonn Rix, ExxonMobil Jan Williamson, AOGCC e Kotowski, DNR August 11, 2005 Application for Amendment of Conservation Order No. 460 for the Prudhoe Oil Pool and Area Injection Order No. 4C to include the Put River Sandstone ( ( ( Prudhoe Oil Pool Rules & Area injection Order No. 4C Amendment Application ( Aug. 11, 2005 Table of Contents I. Geology........... ..... ...................... ................ ....... ..... ... ................ ..... ...................... 3 Introduction..................................................................................................................... 3 Strati graph y .... . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . .. . . . . . . . .. . .. 3 Lithology/Depositional Environment............................................................................. 5 Put River Sandstone Structure .......................... .......... ................ .......... ............... ........... 6 Pool Limits...................................................................................................................... 7 II. Reservoir Description and Development Planning ........................................8 Rock and Fluid Properties............................................................................................... 8 Hydrocarbons in Place.................................................................................................. 12 Reservoir Performance.................................................................................................. 12 Development Planning.................................................................................................. 13 Development Options................................................................................................... 14 Development Plan......................................................................................................... 14 Reservoir Management Strategy................................................................................... 15 III. Facilities ... ... .... ..... ......... .... ......... ............. ... ... ........ .... ........... ... ......... ..... ....... ...16 General Overview......................................................................................................... 16 Drill Pads and Roads..................................................................................................... 16 Pad Facilities and Operations........................................................................................ 16 Flow Stations................................................................................................................ 16 IV . Well Operations..............................................................................................17 Drilling and Well Design.............................................................................................. 17 Reservoir Surveillance Program ................................................................................... 18 V. Area Injection Operations .............................................................................19 VI. Proposed Amendment to Prudhoe Oil Pool Rule........................................20 VII. Proposed Amendment to Area Injection Order No. 4C ...........................21 VIII. List of Exhibits ............................................................................................22 2/44 ( Prudhoe Oil Pool Rules & Area injection Order No. 4C Amendment Application ( Aug. 11, 2005 I. Geology Introduction The Put River Sandstone is located on Alaska's North Slope within the Prudhoe Bay Unit, as illustrated in Exhibit 1-1. It overlies the Kingak Shale and Sadlerochit Group in the vicinity of Drill Sites 1, 2, 5, 6, 7, 15, 18, NGI, and WGI. The Put River Sandstone is the sandstone interval that correlates with the interval 9,638 to 9,719 feet measured depth on the Schlumberger Borehole Compensated Sonic Log Run 2 dated September 28, 1975, in the Atlantic Richfield-Exxon NGI No.1 Well (API 50-029-20171). The Put River Sandstone, along with the Kalubik Formation (shale and siltstone), is part of the Put River interval that lies stratigraphically above the Lower Cretaceous Unconformity (LCU) and below the Highly Radioactive Zone (HRZ) (Exhibit 1-2). The Prudhoe Bay Owners propose including the Put River Sandstone in the Prudhoe Oil Pool Rules and the Area Injection Order for the Eastern Operating Area. The addition of the Put River Sandstone is based on the direct juxtaposition of the northern extent of the Put River Sandstone with the Sag River Sandstone which is part of the current Prudhoe Oil Pool. The proposed amendments to the Prudhoe Oil Pool Rules and Area Injection Order are intended to encompass any area within the Prudhoe Bay Unit with Put River Sandstone. The Put River Sandstone was included as part of the Prudhoe Bay (Permo-Triassic) Reservoir in the Prudhoe Bay Unit Agreement and was evaluated with core and RFf measurements in wells NGI-7, NGI-13, NGI-14, WGI-04, and 02-14 from 1978 - 1980. In the early 1990's, RFT measurements were also collected in wells 15-28 and 15-47. The Put River Sandstone was perforated and tested in wells 02-23A, 1-14, 15-41B, 15- 09A, and 18-27C in 2004 and 2005. Wells 02-23A and 15-09A confirmed black oil accumulations and wells 15-41B and 18-27C produced gas condensate. Stratigraphy The Put River Sandstone was deposited in the Early Cretaceous geologic time period, between 100 and 130 million years before present. Exhibit 1-2 shows a portion of the open-hole wireline logs from the Richfield-Exxon NGI No.1 Well (API 50-029-20171). 3/44 ( Prudhoe Oil Pool Rules & Area injection Order No. 4C Amendment Application ( Aug. 11, 2005 This type log illustrates the stratigraphic definition of the Put River Sandstone. The log is scaled in measured depth (MD) and also has a true vertical depth subsea (TVDss) track. In the NGl No. 1 well the base of the Put River Sandstone occurs at 9,719'MD (-8076'TVDss) and the top occurs at 9,638' MD (-8011'TVDss). Elsewhere the Put River Sandstone is interbedded with shales and siltstones of the Kalubik Formation. Together, the Put River Sandstone and Kalubik Formation make up the Put River interval. The Put River interval lies unconformably above Jurassic and older strata and conformably below the Cretaceous Highly Radioactive Zone (HRZ). The Lower Cretaceous Unconformity (LCD) is the basal unconformity of the Put River interval. The LCU is evidenced by a distinct change in lithofacies, angular discordance with underlying strata, and in palynological and micopaleontological assemblages (Exhibit 1-3). In its southern extent, the Put River interval overlies the Jurassic Kingak Shale. In the most northeastern extent, under the NGI/WGI area, the Put River interval lies directly on the Triassic Sag River Sandstone. The sediments deposited in the Put River interval were locally derived from an exposed highland to the northeast and represent an overall marine transgression following uplift and erosion. Four vertically significant and laterally extensive sandstone bodies (or lobes) have been correlated within the Put River interval. They are termed the Southern, Central, Western, and Northern lobes of the Put River Sandstone (Exhibit 1-4). The Northern lobe comprises the entire Put River interval, as shown in the type log of NGI-Ol (Exhibit 1-2). The remaining three lobes are stratigraphically equivalent to the Northern lobe and are interbedded with the Kalubik Formation (Exhibit 1-3). Biostratigraphic age control confirms these correlations. The locus of deposition for each sandstone lobe was controlled by the interplay of erosional and structural paleotopography formed along the LCU, and sediment dispersal. There appears to have been two main pulses of sandstone deposition within the Put River interval. The first is recorded by the A2 and A4 sandstones. The A2 sandstone lies directly on the LCU and is thickest in the south. The Southern lobe of the Put River Sandstone is entirely composed of the A2 sandstone where it is up to 41 feet thick. Sediment accumulation was constrained by erosional paleotopography into the Kingak 4/44 I( Prudhoe Oil Pool Rules & Area injection Order No. 4C Amendment Application if '\ Aug. 11, 2005 Shale. The A4 sandstone is separated from the A2 sandstone by a thin shale/siltstone layer. The A4 sandstone is thickest within the Midfield Graben (up to 22 feet thick), and presumably filled remnant structurally-controlled paleotopography. The Central lobe of the Put River Sandstone is entirely composed of the A4 sandstone. Following deposition of the A sandstones, marine transgression limited the supply of coarse-grained sediment. Many wells contain a layer with an anomalously high gamma-ray log signature in this interval (Exhibit 1-5). The B sandstone overlies this thin transgressive package representing the second pulse of coarse-grained deposition. It is up to 75 feet thick, and comprises the Western lobe of the Put River Sandstone. To the south the distal portion of the B sandstone correlates to thin sandstone/siltstone beds. The Northern lobe of the Put River Sandstone is composed of both the A and B sandstones. The transgressive unit separating the two is not well- developed in this area, presumably due to proximity of the clastic source. Thus the B sandstone typically lies directly on the A sandstone in the Northern lobe, forming one composite sandstone body that is up to 69 feet thick. Lithology/Depositional Environment Southern lobe The entire A2 sandstone was cored in well 02-14 (Exhibit 1-6). Here the sandstone is a medium-grained, moderately-to well-sorted chert-lithic arenite with localized pebble layers. The detrital mineralogy is predominantly quartz and chert; with minor amounts of feldspar and fine-grained lithic fragments. Glauconite occurs as disseminated and granular accumulations in concentrations of up to 15%. Clay content is largely associated with the finer-grained and poorly-sorted intervals; it is not pervasive through the matrix. Beds generally fine upward and bioturbation is common. Visible porosity ranges from 10-20% with little pervasive cementation. Quartz overgrowths occur on most grains, with quartz cement best developed in well-sorted sandstone beds. Siderite cement occurs locally mostly near the top and base of the A2 sandstone. The A2 sandstone is interpreted as a lower shoreface deposit. An abundant assemblage of trace fossils, sedimentary structures, and glauconite content support this interpretation. 5/44 ( Prudhoe Oil Pool Rules & Area Injection Order No. 4C Amendment Application Aug. 11, 2005 Central lobe No core was collected from the A4 sandstone within the Central lobe of the Put River Sandstone. However, cuttings from well 15-09A were analyzed for biostratigraphic age control and confirm deposition in a marine setting. Western lobe One well (15-14A) was cored with percussion side-wall cores (Exhibit 1-7). These cores are from the B sandstone which is roughly 6 feet thick in this well. The B sandstone is composed of a fining upwards package of fine-grained to very fine-grained sandstone. Cuttings were described from well 15-48 (Exhibit 1-4) through the B sandstone. Here the B sandstone is 42 feet thick and is composed of fine-grained, well-sorted, subangular to subrounded sandstone containing quartz, chert, glauconite, and some pyrite. Cements include silica, as well as siderite. Northern lobe The NGI-07 (Exhibit 1-8), NGI-13 and WGI-04 wells were cored in the Northern lobe and recovered partial sections through the Put River interval. The Put River Sandstone in all of the wells consists of pebble conglomerates of chert, quartz, and glauconite with a sandstone matrix. The conglomerate clasts in this area were presumably derived from erosion of the underlying Permo-Triassic formations. This sandy conglomerate accumulated directly over the LCU during marine transgression. Sedimentary structures are ambiguous, however the presence of glauconite and dinoflagellate cysts in the WGI-04 core suggest deposition in a marine setting. The southern extent of conglomeratic facies in this lobe is not constrained by core. Put River Sandstone Structure Exhibit 1-09 is a top Put River interval (BHRZ) structure map with a contour interval of 50 feet. The Put River interval is bisected by the Midfield Graben structure which is a Brookian reactivation of an older pre-Ivishak structural trend. The Midfield Graben has resulted in a number of potentially isolated compartments within the field, especially in 6/44 (' Prudhoe Oil Pool Rules & Area Injection Order No. 4C Amendment Application ( Aug. 11, 2005 the Western lobe. The Northern and Southern lobes also have faulting present which is related to the Brookian reactivation, but the vertical throw of these faults is small and likely does not result in significant reservoir compartmentalization. A large majority of the faults and structure interpreted at the Ivishak and deeper formations are truncated by the LCU. Exhibit 1-10 is a north-south oriented structural cross-section along the axis of the Western and Southern Put River lobes (see Exhibit 1-09 for location). This exhibit shows the overlying and underlying stratigraphy as well as the fault complexity of the area. Exhibit 1-11 is a strike-oriented seismic traverse cutting across the Western and Northern Put River lobes (see Exhibit 1-09 for location). This exhibit shows the faulting in the Midfield Graben as well as the truncation of the deeper Kingak and Ivishak formations by the LCU. Pool Limits The Prudhoe Bay Owners propose including the Put River Sandstone in the defined interval of the Prudhoe Oil Pool in the Prudhoe Oil Pool Rules and the Area Injection Order for the Eastern Operating Area. The addition of the Put River Sandstone is based on the direct juxtaposition of the northern extent of the Put River Sandstone with the Sag River Sandstone which is part of the current Prudhoe Oil Pool. The areal limit of the Prudhoe Oil Pool will remain unchanged; however, a vertical expansion of the Pool limits to include the Put River Sandstone is requested. 7/44 ( Prudhoe Oil Pool Rules & Area injection Order No. 4C Amendment Application i( Aug. 11, 2005 II. Reservoir Description and Development Planning Rock and Fluid Properties The available core data and well log control was used to estimate the rock properties and net sandstone volume of the Put River Sandstone. Fluid properties were determined from PVT analysis of downhole and surface samples from wells 02-23A, 15-09A, 15-41B, and 18-27C. Porosity, Permeability, and Water Saturation Rock properties for the A2 sandstone were estimated using a petrophysical log model calibrated to the core data from well 02-14. Geolog's Multimin software was used as the porosity/lithology/water saturation solver and was based on gamma ray, density, neutron porosity, sonic, and resistivity logs. A permeability algorithm was derived based on a multiple regression solution between core permeability and log data. The Multimin log model and permeability algorithm were then applied to a total of 14 wells across the Southern lobe that contained a full suite of well logs. Average porosity and water saturations are 19% and 46%, respectively. Permeability measured from core averages 173 mD. No core data exists for the A4 sandstone, and only minimal core data (sidewall cores from 15-14A and cutting descriptions from 15-28) was collected from the B sandstone. Well 15-14A penetrated 6 feet of the B sandstone near the western terminus. Average porosities and permeabilities are 16% and 4mD, respectively. While numerous wells penetrate these sandstones and define their lateral extent, most only contain cased-hole gamma ray and neutron porosity logs. The porosity distribution calculated for the A2 sandstone was applied to the A4 and B sandstones based on the similar lithology seen in available core data. The water saturation derived from the A2 sandstone was also applied to the A4 sandstone; however, an average water saturation of 28% was applied to the B sandstone. This value was calculated from a petrophysical log model of well 15-47 across the B sandstone. Core .data exists from two wells located in the far northern extent of the A/B sandstone. 8/44 ( Prudhoe Oil Pool Rules & AreaìnJection Order No. 4C Amendment Application It.· , Aug. 11, 2005 Cores from wells NGI-07 and NGI-13 have an average porosity of 13% and water saturation of 13%. Permeability measured from core averages 90 mD. While numerous wells penetrate the AIB sandstone, most only have a partial suite of logs, limiting the ability to develop a petrophysical log model. The southern extent of conglomeratic facies is unknown for the AIB sandstone; however sonic log responses suggest that this interval becomes less conglomeratic to the south. Based on comparisons to the A2 and B sandstones, and core data of sandstone layers in the NGI-07 well a porosity of 17% and a water saturation of 28 % was used for the southern half of the AIB sandstone. A summary of the rock properties for the Put River Sandstone is detailed below. Sandstone Porosity Permeability Water Saturation A2 19% 173mD 46% A4 19%1 nm 46%1 B 19%1 nm 28% AIB north 13% 90mD 13% AIB south 17%2 nm 28%2 Note: 1 derived from the A2 sandstone, 2 derived from core data and comparisons to the Band A2 sandstones, nm - not measured. Net Pay Southern lobe - A2 sandstone Net pay was determined by a gamma ray cutoff and a minimum porosity of 12%. Exhibit II-I shows a cross plot of permeability vs. porosity. The porosity versus permeability relationship of core data from the Put River Sandstone shows that 12% porosity represents roughly 1 mD permeability for sandstone lithofacies. Net pay (Exhibit 11-2) was calculated directly from the log model outputs of 14 wells. These results were used to determine net pay in 30 additional offsetting wells that did not contain a full suite of logs. Central and Western lobe - A4 and B sandstones Net pay for the Central (Exhibit 11-3) and Western (Exhibit 11-4) lobes was calculated in 9/44 ( Prudhoe Oil Pool Rules & Area lUJection Order No. 4C Amendment Application Aug. 11, 2005 27 and 54 wells, respectively. The net pay criteria developed for the A2 sandstone and the petrophysical log model of well 15-47 was used to determine net pay for the A4 and B sandstones. Northern lobe - A/B sandstone Net pay for the Northern lobe was calculated in 73 wells (Exhibit 11-5). The available core data and criteria derived from the A2 sandstone was used to determine net pay in the A/B sandstone. Fluid PVT Data Southern lobe The Southern lobe contains black oil. Reservoir fluid properties were evaluated using a downhole oil sample collected from well 02-23A. The bubble point pressure was 2815 psia. The API gravity was 26.9° with a solution gas oil ratio (GOR) of 548 scflbbl. The formation volume factor was 1.293 res bbVstb with an oil viscosity of 1.84 cP at 3190 psia and 181 degrees Fahrenheit. Central lobe The Central lobe contains black oil. Reservoir fluid properties were evaluated using a downhole oil sample collected from well 15-09A. The bubble point pressure was 2275 psia. The API gravity was 31.2° with a solution gas oil ratio (GOR) of 485 scflbbl. The formation volume factor was 1.230 res bbl/stb with an oil viscosity of 1.06 cP at 3905 psia and 170 degrees Fahrenheit. Western lobe The Western lobe contains a gas condensate. Reservoir fluid properties were evaluated by recombining surface condensate and gas samples from well 15-41B. During a production test, well 15-41B produced gas and condensate with a gas-oil ratio of 24,650 scflbbl. This GOR was used for the recombination analysis. The dew point pressure was 3435 psia. The condensate API gravity was 57.0°. Northern lobe The Northern lobe contains a gas condensate. Reservoir fluid properties were evaluated 10/44 Prudhoe Oil Pool Rules & Area \UJection Order No. 4C Amendment Application ( Aug. 11,2005 by recombining surface condensate and gas samples from well 18-27C. During a production test, well 18-27C produced gas and condensate with a gas-oil ratio of 41,200 scf/bbl. This GOR was used for the recombination analysis. The dewpoint pressure was 3215 psia. The condensate API gravity was 59.1°. Exhibit ll-6 shows a summary of the fluid properties for each Put River lobe. Initial Pressure & Temperature (all pressures at a reservoir datum of -8100' sstvd) Southern lobe In the Southern lobe, the initial reservoir pressure was 4163 psia based on the 1980 RFf in well 02-14. The pressure of the Put River Sandstone in this lobe has been reduced by production from the 02-27 and 02-23A and the current reservoir pressure is 2710 psia based on a March 2005 buildup test in well 02-23A. The reservoir temperature is 182 degrees Fahrenheit. Central lobe In the Central lobe, the reservoir pressure is 3923 psia based on a 2004 buildup test in well 15-09A. No Put River Sandstone pressure measurements in this lobe were obtained prior to the pressure buildup test. The reservoir temperature is 164 degrees Fahrenheit. Western lobe In the Western lobe, the initial reservoir pressure was 4234 psia based on the 1992 RFT in well 15-28. A 2005 static pressure measurement in well 15-41B indicated the reservoir is still near the original reservoir pressure. The current reservoir pressure is 4173 psia based on the 2005 15-41B static pressure. The reservoir temperature is 165 degrees Fahrenheit. Northern lobe In the Northern lobe, the initial reservoir pressure was 4191 psia based on the 1979 RFf in well NGI-13. The Northern lobe of the Put River Sandstone is in communication with the Sag River Sandstone and has been depleted by production from the Prudhoe Oil Pool. The current reservoir pressure is 3422 psia based on a static reservoir pressure 11/44 ( Prudhoe Oil Pool Rules & ArealllJection Order No. 4C Amendment Application Aug. 11, 2005 measurement in well 18-27C. The reservoir temperature is 172 degrees Fahrenheit. Exhibit II-7 summarizes the fluid type, pressure, and temperature data of the Put River Sandstone. Hydrocarbons in Place Estimates of hydrocarbons in place for the Put River Sandstone reflect current well control, stratigraphic and structural interpretation, and rock and fluid properties. The Southern lobe is estimated to contain 12.6 - 19.2 million stbo with associated gas of 6.9 - 10.5 BCF in place. The estimate for the Central lobe is 1.1 - 2.7 million stbo in place with associated gas of 0.5 - 1.3 BCF. The Western lobe is estimated to contain 69.6 - 104.4 BCF in place and 108.4 - 160.4 BCF in place for the Northern lobe. A summary of the in place estimates for each lobe is detailed below. Lobe Estimate Oil in Place Estimated Gas in Place Southern 12.6 -19.2 MMBO 6.9 -10.5 BCF Central 1.1- 2.7 MMBO 0.5 - 1.3 BCF Western nla 69.6 -104.4 BCF Northern nla 108.4 - 160.4 BCF Note: All oil in place estimates are in stock tank bbls and all gas in place estimates are at standard conditions. Reservoir Performance Well Performance Recent tests of the Put River Sandstone were accomplished by isolating the Ivishak Formation and perforating the Put River Sandstone in existing wells. Southern lobe The Southern lobe was tested with wells 02-23A and 01-14. Well 02-23A was tested for six months from August 2004 - March 2005 and averaged 1820 bopd, 0% water cut, and 5 mmcfd. A pressure buildup indicated 205 mD permeability with a skin of 1. Well 01- 12/44 ( Prudhoe Oil Pool Rules & Area lhJection Order No. 4C Amendment Application Aug. 11, 2005 14 was tested in January 2005 and was unable to flow due to poor reservoir quality. The Put River Sandstone production data from well 2-23A is summarized in Exhibit IT-8A. A casing leak in well 2-27 also produced fluids from the Put River Sandstone from 1994 - 1997 with approximate initial rates of 750 bopd and 2 mmcfd. Central lobe The Central lobe was tested with well 15-09A in October 2004. The well tested 240 bopd and 120 mcfd. The Put River Sandstone production data from well 15-09A is summarized in Exhibit II-8B. Western lobe The Western lobe was tested with well 15-41B in December 2004 and April 2005. The well tested at 1.8 mmcfd with 73 bopd. The Put River Sandstone production data from well 15-41B is summarized in Exhibit II-8C. Northern lobe The Northern lobe was tested with well 18-27C. The well tested 6.8 mmcfd with 165 bopd. The Put River Sandstone production data from well 18-27C is summarized in Exhibit II -8D. Aquifer Influx Reservoir appraisal indicates no aquifer supporting the Southern, Central, Western, or Northern lobes of the Put River Sandstone. Gas Coning I Under-Running There are no indications of a free gas column in the Southern or Central lobes of the Put River Sandstone; therefore, coning or under-run mechanisms are not anticipated. The Western and Northern lobes are gas condensate reservoirs. Development Planning A reservoir model is being constructed to evaluate development options. 13/44 if Prudhoe Oil Pool Rules & Area injection Order No. 4C Amendment Application ( Aug. 11, 2005 Development Options Development options being evaluated for the Put River Sandstone include pnmary depletion, waterflood, and miscible gas flood. Primary Recovery The primary recovery mechanism is solution gas drive. Material balance calculations for the Southern and Central lobes of the Put River Sandstone indicate that primary depletion would recover approximately 10% of the STOOIP. Waterflood Waterflood is being evaluated for the Southern lobe of the Put River Sandstone to determine incremental recovery and feasibility. Enhanced Oil Recovery (EOR) Miscible gas flooding is also being evaluated for the Southern lobe of the Put River Sandstone to determine incremental recovery and feasibility. Development Plan Put River Sandstone development is envisioned to include approximately one to five production wells in the Southern lobe with one to five injection wells. Options for the Central lobe include producing via primary depletion by recompleting existing wells. Plans for the Western lobe include potentially one to three production wells. The GOR of the Northern lobe is currently above marginal; therefore, no development is currently planned. The production wells may be completed by perforating the Put River Sandstone In existing wells or drilling sidetracks into the Put River Sandstone. Well Spacing Well spacing will be irregular with well locations determined considering local faulting and reservoir stratigraphy. 14/44 ( Prudhoe Oil Pool Rules & Area llaJection Order No. 4C Amendment Application ( Aug. 11, 2005 Reservoir Management Strategy Pressure support during primary depletion will be provided from solution gas drive. If waterflood is undertaken, the voidage replacement ratio (VRR) will be maintained near 1.0 Reservoir management will be a dynamic process. The initial strategy will be derived from model studies and well test information. Development well results will increase knowledge and improve predictive capabilities resulting in potential adjustments to the initial strategy. The reservoir management strategy will continue to be evaluated throughout reservoir life. 15/44 Prudhoe Oil Pool Rules & Area ('J~ction Order No. 4C Amendment Application Aug. 11, 2005 III. Facilities General Overview The Put River Sandstone will be developed from existing pads and facilities within the Prudhoe Bay field. Drill Pads and Roads The Put River Sandstone is located primarily in the area of Drill Sites 1, 2, 6, 15, and 18. No additional pads or roads are required for Put River Sandstone development. Pad Facilities and Operations The Put River Sandstone development will utilize existing production and injection facilities. Water for a potential waterflood operation would be delivered from the existing 8" seawater injection supply line at Drillsite #1. Estimates indicate the line is sufficient to deliver water to the Put River Sandstone injection wells at 2600 psi. Flow Stations No modifications to the existing flow stations will be required. 16/44 Prudhoe Oil Pool Rules & Area \hJCction Order No. 4C Amendment Application ( Aug. 11,2005 Stimulation Methods Stimulation to enhance production or injection capability is an option for Put River Sandstone wells. Fracture stimulation, acid, or other forms of stimulation may be performed as needed in the future. Reservoir Surveillance Program Reservoir surveillance data will be collected as needed to monitor reservoir performance. 18/44 Prudhoe Oil Pool Rules & Area \....cction Order No. 4C Amendment Application ( Aug. 11, 2005 IV. Well Operations Existing Wells Five wells have been completed in the Put River Sandstone and are described in the "Well Performance" section. The test information is attached in Exhibit II-8. Drilling and Well Design Well Design and Completions All Put River Sandstone wells will be designed to the same specifications as current Prudhoe Oil Pool well designs. Idle wells currently completed in the Ivishak Formation may be used for Put River Sandstone development provided they meet the Put River Sandstone needs and contain adequate cement and mechanical integrity. Injectors may be pre-produced prior to converting to permanent injection. Production from these wells could improve their injectivity and be used to evaluate reservoir productivity, connectivity and pressure response, enabling refinement of current reservoir models and depletion plans. Surface Safety Valves Surface safety valves (SSV) will be included in the wellhead equipment for Put River Sandstone wells. Testing of SSV s will be in accordance with AOGCC requirements. Subsurface Safety Valves In light of developments in oil field technology, controls and experience in operating in the arctic environment, the Commission has eliminated SSSV requirements from pool rules for the Prudhoe Oil Pool (Conservation Order 363). If gas or miscible injectant (MI) injectors are drilled, subsurface safety valves (SSSV) will be installed on those wells. All well completions will be equipped with a nipple profile at a depth just below the base permafrost, should the need arise to install a downhole flow control device or pressure operated safety valves for future MI service or during maintenance operations. Drilling Fluids Drilling fluids will be similar to current fluids used in the Prudhoe Oil Pool. 17/44 Prudhoe Oil Pool Rules & Area ('J~ction Order No. 4C Amendment Application { Aug. 11, 2005 v. Area Injection Operations All injection operations will comply with the current injection operation requirements set forth in Area Injection Order No. 4C. 19/44 ~$ Prudhoe Oil Pool Rules & Area hlJeltion Order No. 4C Amendment Application ) Aug. 11, 2005 VI. Proposed Amendment to Prudhoe Oil Pool Rule BP Exploration (Alaska) Inc., in its capacity as Prudhoe Bay Unit Operator, respectfully requests that the Commission amend the Pool Definition for the Prudhoe Oil Pool in Conservation Order 341D as described below: Rule 1: Pool Definition (a) The Prudhoe Oil Pool is defined as the accumulations of oil that are common to and which correlate with the accumulations found in the Atlantic Richfield - Humble Prudhoe Bay State No. 1 well between the depths of 8,110 feet and 8,680 feet and shall also include the Put River Sandstone, which is that sandstone interval that correlates with the interval 9,638 to 9,719 measured feet on the Borehole Compensated Sonic Log, Run 2, dated September 28, 1975, in the Atlantic Richfield-Exxon NGI No.1 well. 20/44 t .... ) Prudhoe Oil Pool Rules & Area blJeêtion Order No. 4C Amendment Application ') Aug. 11, 2005 ).... VII. Proposed Amendment to Area Injection Order No. 4C BP Exploration (Alaska) Inc., in its capacity as Prudhoe Bay Unit Operator, respectfully requests that the Commission expand the authorized injection strata for the Prudhoe Oil Pool in Area Injection Order Number 4C as described below: Rule 1: Authorized Injection Strata for Enhanced Recovery Within the affected area, authorized fluids may be injected for purposes of pressure maintenance and enhanced recovery into strata defined as follows: For the Prudhoe Oil Pool strata which correlate with and are common to the formations found in the ARCO Prudhoe Bay State No. 1 well between the measured depths of 8,110- 8,680 feet and shall also include the Put River Sandstone, which is that sandstone interval that correlates with the interval 9,638 to 9,719 measured feet on the Borehole Compensated Sonic Log, Run 2, dated September 28, 1975, in the Atlantic Richfield- Exxon NGI No.1 well. 21/44 t .. Prudhoe Oil Pool Rules & Area blJeltion Order No. 4C Amendment Application ) Aug. 11, 2005 VIII. List of Exhibits 1-1 Put River Sandstone Location Map 1-2 Put River Sandstone Type Log (well NGI-l) 1-3 Stratigraphic Cross Section of Put River interval 1-4 Gross Sandstone Map for Put River Sandstone 1-5 15-09A Put River Sandstone Well Log 1-6 2-14 Put River Sandstone Well Log and Cored Interval 1-7 15-14A Put River Sandstone Well Log and Sidewall Core Points 1-8 NGI-07 Put River Sandstone Well Log and Cored Interval 1-9 Structure Map of Top Put River Interval 1-10 North-South Structural Cross Section 1-11 Strike-Oriented Structural Cross Section II-I Put River Sandstone Porosity-Permeability Crossplot 11-2 Net Pay Map of the Southern lobe 11-3 Net Pay Map of the Central lobe 11-4 Net Pay Map of the Western lobe 11-5 Net Pay Map of the Northern lobe 11-6 Fluid Properties Summary 11-7 Summary of Fluid Type, Pressures, and Temperatures 11-8A 2-23A Production Test Results 11-8B 15-09A Production Test Results 11-8C 15-41B Production Test Results 11-8D 18-27C Production Test Results 22/44 ~ ~ t o =: ~ ~ i ~ ¡¡;.. ."'t tl """~ ,.".. ..,.. -~ ..,.. ti_ -" ..... .... ..... ~"~ ..... Wi,"'" ~ £<.... ØI!.'. ..... ~w ¡¡;.. ~ .... ~ N ~ -.. .... N ~ > Order No. 4C Amendment Application Aug. 11, 21105 Prudhoe Oil Pool Rules & Area Well Name: API; 500292017100 Spud Date: 1975·10..07 Measurement Ref; KS Ret Elevation: 47 Drilled Depth: 10437' X Coordinate: 687351 Y Coordinate: 5971401 WIRE.GR_BHCS_1 GAP! ({) ., ~ ;;:: 02 0 0 ,50 Exhibit River Sandstone type BHRZ ~ Bottom Highly Radioactive Zone lCU ~ lower Cretaceous Unconformity TSGR ~ Top Sag River Sandstone WIREUi!Fl_Dll_1 OHMM 9650 200 WIRE:.N!:t:I'7~N':::-1~ _ PU Õ WIRE.DT_BHC!:U 9700 9800 tv C11 C� yE O N w WGI-04 NGI-07 NGI-01 18-27 C �. aq j HRZ ® BHRZ� T Put River o Alg Sandstone LCu CD p' { Kingak TSGR Sag Ss M. r� CD Biostratiaraohic Aae Control C/] CD ❑ Albian CD 100 ft ® Albian/Aptian ;S' ■ Barremian/Hauterivian I. Jurassic 5000 ft O Shale 15-09A 15-41 15-47 ,I i Datum g Put River Sandstone �Kbik T T Shublik Sandstone TSHA \ Formation TSAD Ivishak Formation b c C S ro 8 2-16 2-14 2-23 E. f � y R� I � 0, r 0 c Frn. a A In z 0 HIE i A y o. A V Prudhoe Oil Pool Rules & Area Order No. 4C f UJ,m I t U0)en \ -$tltHHE !l.U.E$ij , $,1O~0, I:~.,e00 t , a;;¡;!.n t M.0~ffi! Exhibit 1-4. wells are River of Aug. 11, 2005 711$.¡* I . 7ßS.'ué . Appraisal 26/44 Prudhoe Oil Pool Rules & Area Order No. 4C Amendment Applieatiou Aug. 11,2005 Well API: 500292120101 Spud Date: 1993-11-27 Measurement Rei: KB Rei, Elevation: 51.97 Drilled Depth: 10700' X Coordinate: 677349 Y Coordinate: 5959752 BHRZ - Bottom Highly Radioactive Zone lCU - lower Cretaceous Unconformity ({) (f> ;2 o OHMM 200 ;;:: o Q.;!: WIRE,LU>_DlL_1 COMPOSITE_LOG,GR_1 WIRe,NPHU~NL_ j """-p¡j'- -- - distribution of River Sandstone interval. 27/44 , , Prudhoe Oil Pool Rules & Area Well Name: 02-14 API: 500292044600 Spud Date: 1980-05-21 Measurement Ref: KB Ref, elevation: 64- Drilled Depth: 9800' X Coordinate: 687592 y CoordÍl1ate: 5950634 WIRE.GRJ3HCS_1 n Order No. 4C Amendment AppUeation Aug. 11,2005 BHRZ ~ Bottom Highly Radioactive Zone lCU ~ Lower Cretaceous Unconformity (J) ~ o WIRE.SFL_DIL_1 OHMM WI~~'!~~7~!~-: 1 OHMM o 0,2 200 ~~~»~-~- WiRE,N.!:~-:ENI: ~ PU WiRE,DT_BHCS_1 l!í 02 200 '" Exhibit 1-6. wen showing 28/44 Prudhoe Oil Pool Rulea & Area Order No. 4C Amendment Applicatiou Aug. 11,2005 Well Name: 15-14A API: 500292068201 Spud Date: 2005-01-08 Measurement Ref: KB Ref. Elevation: 58.18 Drilled Depth: 13237' X Coordinate: 677483 y Coordinate: 5959168 BHRZ ~ Bottom Highly Radioactive Zone lCU . lower Cretaceous Unconformity WIRE]IEI.D.AHF'O_' (f> (II ;2 o Q.Z QHMM 200 ;¡: I;) 0.2 WIRE--;FI~I.~:AHF3?::- ~ OHMM 200 60 WIRE]IELD,NPHI_ 1 '--- --.-~~ õ WIRE_FIELD,GR_' WIRE]IELD,DTCO_' Exhibit well log showing core points. 29/44 Prudhoe Oil Pool Rules & Area ion Order No. 4C Amendment Applieatiou Aug. 11, 2005 Well Name: NGI-07 API: 500292021000 Spud Date: 1976-05-06 Measurement Ref: KB Ref. Elevation: 47 Drilled Depth: 8635' X Coordinate: 667162 Y Coordinate: 5972101 BHRZ - Bottom Highly Radioactive Zone lCU - lower Cretaceous Unconformity TSHA - Top Shublik Formation TSAD - Top Ivishak Formation C/) C/) ~ o ~ 02 WIREJ~~-:cDI~-; 1 , OHMM ZJI) 60 WtRE.NPHLCNI._1 - --pü·_-"'--~-~ Õ WtRE,DT _BHCS_1 WIRE.GR_BHCS_ 1 GAP, Exhibit NGI-07 well log showing interval. 30/44 Prudhoe Oil Pool Rules & Area Order No. 4C Amendment Application Aug. 11, 2005 t'-1h!l% , ¡;ß~"Iß~ , ¡;U~,ijijij JJ'X"¡¡OO ¡;~~,ø!lø 1\1~,\!U\l Exhibit 1-09. Structure top Put interval (BHRZ). 31/44 , , Order No. 4C Amendment Application Prudhoe Oil Pool Rules & Area 8 I() ""' II> E 8 o N « <II( o o IÖ ".. o ~ Exhibit 1-10. North-south structural The Put River interval below the horizon. Radioactive Zone, Highly Radioactive Shublik Formation, conglomerate, BSAD - Base Ivishak Formation. Aug. 11, 2005 w ø == 8 g $ z ø z directly - Bottom 32/44 Prudhoe Oil Pool Rules & Area Order No. 4C Amendment Application Aug. 11, 2005 ~ . B B' 1500 1500 ms 2000 2000 5000 ft Exhibit below Highly Radioactive conglomerate, BSAD - The Put Radioactive Shublik Formation, Ivishak Fonnation. interval lies directly - Bottom 33/44 Prudhoe Oil Pool Rules & Area 'on Order No. 4C Applicaûon Put River Core Data 1 1 A ,. o 5 15 11III pebbly sandstone ,0 'I' ~< Exhibit Porosity versus permeability cross-plot for all cores River Sandstone. Samples are divided by Aug. 11,2005 from the Put 34/44 Prudhoe Oil Pool Rules & Area $ße...m 5.955."*- 5.1J'$jJ;QI i- 5.9:'S,ÐIUI- 5.948.011- . 6Øi;h.i¡\a t Exhibit U-2. Net pay n Order No. 4C Amendment Applieation f 8S.¡iIIl8 . tlBs.eae fEEfIf 18\!,8 209'0 $0¡i!9 . of the Aug. 11, 2005 aU.øee , Ð9.$./5iØ ...s.95S. ! 0ß -5.9SÐ.1!I09 -S.945.ØØS 591'/.. tOO , lifts.au: IH561,Ua 58'. a.e~ø 70!W eß~ø -søpe 10l}8:8 fEH lobe of the Put River Sandstone. 35/44 Prudhoe Oil Pool Rules & Area Order No. 4C Amendment Application S:~~'1$~ ea.- S.96S. aa8 - 5.968.088- L., Aug. 11, 2005 615.880 6118.aaa , I 685. aaa , I U sa80 STATUTE M¡lES~ .L..,.1 .6 .8 1.6STRT\lTE MILES ~~ ¡ 000 2000 3080 4000 S000 6000 70~0 8080 9000 . ", " 18,0UEET Net pay map of the Put River 36/44 .. " Prudhoe Oil Pool Rules & Area 'on Order No. 4C Amendment Applieation ß71heøi !h915.... $1S¡èee $89,W I ~h91the..- $.i/SS.øO w 5.966.0"* 5.9SSdlaø - ~h$5.ø.I1IIII'- ff10.ßJ$ !nS!ðil0 l!laa.'&IM\ t STRTUTE W-n.E5 ~ '~ I fEEfIf 2S!tß ,~ L,a 5TMJ,rft Ht1,.£":; BØfÜJ 9SjI'I0 16fI}iJI fEU Exhibit II~4. Net pay map of the Western lobe of .e:a1>.¡eei: m.lw Aug. 11, 2005 sgø-.øøø. Sér1S.tl0Ð wS.978.l!Iee -$dI:&S.1iI8B -S.95€i.0Be ~s.m.øø8 -a.9Sfhees ...,... 37/44 ... " Prudhoe Oil Pool Rules & Area S~9£IØ.øu 5..$1'$..e'8~ $~'$11Mtìí." 5.!;ffi'$.8/Ji- 5.~ü._- !h95'!heee- Order No. 4C Amendment Application Aug. 11, 2005 ",$'fUß 6.9Q.eaø I 69$¡ all$ 73.'16118 -5.ti7S.ÞØ -5.918.... -5.9&5. Ø8& -5.9&8.... -5.95'$.". $$5:'0 , e!tØ.... $.9s!... , 1$$.800 t t~lS(I;QØ ; ~1 .~ 4òpf) MþlJ jtfAro'fS MJl.# tt ,. . ,~(J $rATlJ'J'E M1U/fI . ,~ .~ . lò!Jð 2Øf)ó 7fJ¡>f1 IMpIJ sopo 1tuµ)O FEET Exhibit 11-5. Net pay map of the Northern lobe of the Put River Sandstone. 38/44 Prudhoe Oil Pool Rules & Area Order No. 4C Amendment Application Exhibit NQte: F 1 F 1 measured .vitk a at F and F. mea'Jured at current reservoir conditions. Oil F Sandstone fluid properties summary. F Aug. 11, 2005 39/44 '" . Prudhoe Oil Pool Rules & Area etion Order No. 4C Amendment Application Aug. 11, 2005 Reservoir Summary Soutbern lobe Central lobe Western lobe Nortbern lobe Fluid Black Oil Gas Gas Initial Reservoir Pressure 4173 4130 psia psia) nla PresslU'e 2729 3396 psia Reservoir 182 F 164 F 165 F 172 F Note: Put River reservoÎr datum is -SlOO'sstwl. Exhibit Put River Sandstone fluid type, pressure and summary. 40/44 4' _ Prudhoe Oil Pool Rules & Area tion Order No. 4C Amendment Applicatiou 3600 3000 2&00 2000 Î 5 1500 1000 &00 0 Exhibit Production 0 ~ '" ~ 9 0 ¡¡¡ ;;;: :i!ii œ ¿, on mmdd 1940 0 26.71 1801 0 2459 800 1871 0 23J)6 803 1998 0 21.67 803 2089 0 030 803 1945 0 2.01 724 1967 0 0.85 708 1832 0 0.29 725 2806 0 3.68 360 1453 0 0.24 726 2630 3.20 243 2558 0 3.10 243 0 3.84 233 1275 0 0.21 758 1238 0 0.20 771 1334 0.22 761 1527 0 0.25 770 1603 0 0.26 772 1636 0 0.25 706 1515 0 0.16 763 1462 0 0.24 762 1366 0 7.02 758 1549 0 9J)6 734 Date I-Oct-04 6-0ct..o4 8-Oct-04 26-Oct-04 5-Nov-04 21-Nov-04 26-Nov-04 6-Dec-04 28-Dec-04 3-Jan-05 17-Joo-05 26~Joo~05 14-Feb..oS 3-Ivfar-05 Put River (A2) production test. Aug. 11, 2005 25 "1::1 20 'B e Ji I. 15 '" æ C) /44 .. 'f Prudhoe Oil Pool Rules & Area ltion Order No. 4C Ameudment Application Aug, 11, 2005 , . 15-09A Flowback 4 ~ e ... e ... <) "ôf' ... .. '"' <:II 111 ~ « j '" ., ... '" Q ... '" '" 2:::- .. ., Õ 1iI II:: .. .. 0 31.ocl Date 'Water Total Gas Pat Rvel' psi b~d mmcfd mmcfd mmcfd 26..oct-04 310 17 1,91 2.50 nJa 378 27·0ct·04 237 0 2.96 2.50 0,46 333 28·Oct..Q4 219 0 2,65 2,50 0,15 359 29·Oct..Q4 284 0 2,93 2.50 0,43 366 30·0ct·04 223 0 2.74- 2,50 0.24 370 Exhibit II-8D. River Sarldstone (A4) production test. 42/44 Á '" .q Aug. 11, 2005 Prudhoe 00 Pool Rules & Area Order No. 4C Amendment AppUeation 1 B Production Gas Lifted Production l\Ion4as Lifted Production " I <> ~ S s ll. e i S ~ '" '" .. 'C 4 .. '" e '" u :2 4> -.. {) 29~r 30~r 31-M11r 1-Apr 241.pr 341.pr +Apr 541.pr Date Oii Rate, bopd Water Rate, T obi! Gas, Gti Lift, Put Rver ITP, psi mmdd mmdd Gas, mmdd 14-De<::-04 498 5,sa 2.SO 3,38 523 15-De<::·04 156 0 5,32 2,50 2.82 392 16-De<::-04 88 0 3,89 2,SO 1.39 300 18-De<::-04 116 0 2.82 0,00 2.82 348 29-Mar-oS 184 110 2,10 3.80 nla 318 30-Mar-oS 161 10 6,31 3,80 2.51 389 31-Mar-oS 161 3 5,46 3,80 1,66 389 I-Apr-OS 169 1 5,48 :3.80 1.66 390 2-Apr-oS 141 () 5.08 3.00 1,28 382 3-Apr-oS 11 0 1,1'3 (),oo 1,1'3 367 4-Apr-oS 14 0 1.83 0,00 1.83 381 Exhibit Sandstone (B) production test. 43/44 T ~+ " Prudhoe Oil Pool Rules & Area ion Order No. 4C Amendment Application Aug. 11, 2005 1 Production < ~--"-,.".,--"-_._~---- 20 '" } i "" o 15 ì$ e e <i .i '" 10 & ... 5 0 m '" '" '" '" 'f 'f 'f 'f 'f .. .. .. .. " ! ~ ~ " :II! '" ~ :è Date Oil Rate, bopd Water Rate, GM Raìe, FII', mmdd 22-I\ifar -05 95 5,77 2055 23-Mar-05 170 5 10.18 2346 24·Mar-05 235 2 6.62 2392 25-Mar·{)5 113 0 3.84 2346 U-SD. (AJB) production test. 44/44
