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Home My WebLink AboutAIO 019 ) .') Area Injection Order 19 Eider 1. January 28, 2000 2. February 3, 2000 3. February 5, 2000 4. February 9, 2000 5. March 3, 2000 6. April 6, 2000 7. April 15, 2000 8. May 25, 2000 9. May 30, 2000 10. June 23, 2000 11. September 27,2004 BP Exploration request for AIO Eider Pool BP Exploration submittal of Appendix's (Confidential Exhibits located in Vault) Notice of Public Hearing and affidavit of publication AOGCC and BP Exploration Questions and Answers (Supplemental application from BP in vault 2/17/2000) Notice of Change if Date Public Hearing and affidavit of publication Transcript Notice of Change if Date Public Hearing and affidavit of publication Transcript (Confidential Exhibits located in Vault) BP Exploration letter re: Original Gas-In-Place AOGCC response to BP's Notification of Injection AOGCC Proposal to Amend Underground Injection Orders to Incorporate Consistent Language Addressing the Mechanical Integrity of Wells Area Injection Order 19 l ( STATE OF ALASKA OIL AND GAS CONSERVATION COMMISSION 3001 Porcupine Drive Anchorage, Alaska 99501-3192 Re: The APPLICATION OF BP ) Area Injection Order No. 19 Exploration (Alaska) Inc. ("BPXA") ) Duck Island Unit for an order allowing injection of fluids ) Endicott Field for enhanced oil recovery into the ) Eider Oil Pool Eider Oil Pool in the Endicott Field. ) ) June 2, 2000 IT APPEARING THAT: I. By application dated January 27, 2000, BP Exploration (Alaska) Inc. ("BPXA") requested authorization from the Alaska Oil and Gas Conservation Commission ("Commission") to allow injection of fluids for enhanced oil recovery into the Eider Pool. Supplemental information was also provided by letters dated February 4,2000, February 17,2000, and May 30, 2000. 2. Notice of opportunity for public hearing was published in the Anchorage Daily News on February 5, 2000. A second public hearing notice changing the date of public hearing was published in the Anchorage Daily News on March 3, 2000. A third public hearing notice for a continuance of the hearing was published in the Anchorage Daily News on April 15, 2000. 3. The Commission did not receive any protests or requests for a public hearing. 4. BPXA personnel met with Commission staff on April 13, 2000 and presented testimony at hearings held at the Commission's offices on April 6,2000 and May 25,2000. FINDINGS: I. Commission regulation 20 AAC 25.460 provides authority to issue an order governing underground injection of fluids on an area basis for all wells within the same field, facility site, reservoir, project, or similar area. 2. BPXA presented testimony in support of an application for pool rules and area injection order for the proposed Eider Oil Pool ("EOP") on April 6, 2000 and May 25,2000. Definition of this pool is pending. 3. The Duck Island Unit has been expanded and the Prudhoe Bay Unit has been contracted to accommodate development of the proposed EOP. 4. The proposed EOP is not common to any pool currently approved for enhanced recovery, however the affected area is located in the northeastern portion of the Area Injection Order No. 4C (Eastern Operating Area of Prudhoe Bay Unit) and in the western portion of the Area injection Order No.1 (Duck Island Unit). Area Injection Order No. 19 June 2,2000 Page 2 ~ ¡' i ~ 5. BPXA is the sole operator of all wells within one-quarter mile of the area proposed for enhanced oil recovery. The State of Alaska is the surface owner. 6. The proposed EOP is defined as the accumulation of hydrocarbons that are common to and which correlate with the accumulation in the BP Exploration 2-56A/EIO 1 well between the measured depths of 16785 and 17928 feet and consists of the Sag River, Shublik and Ivishak Formations. 7. Within the proposed EOP producible oil is known to exist within the Ivishak Formation which occurs in the BP Exploration 2-56A/EIOl well between the measured depths of 17338 and 17928 feet. 8. Water injection for enhanced oil recovery will be limited to the proposed EOP Ivishak Formation. 9. The proposed EOP Ivishak Formation is composed of three stratigraphic units named, in stratigraphic order, the Lower Sand, Middle Shale, and Upper Sand. 10. The Lower Sand has a gross thickness ranging from 80 to 125 feet, a net to gross ratio of .8, an average porosity of21% and an average permeability of30 millidarcies. 11. The Middle Shale has a gross thickness ranging from 75 to 90 feet, a net to gross ratio of .5, an average porosity of 16% and an average permeability of300 millidarcies. 12. The Upper Sand has a gross thickness ranging from 60 to 125 feet, a net to gross ratio of .8, an average porosity of20% and an average permeability of300 millidaries. 13. The three stratigraphic units constitute a single flow unit due to vertical permeability enhancement by faulting and fracturing. 14. The proposed EOP is confined below by more than fifty feet of the Kavik Shale. 15. Several hundred feet of shales within the Shublik and HRZ Formations overly the proposed EOP Ivishak Formation. 16. BPXA has drilled a total of two completed wells, the 2-56A/EIOl, the 2-30A/EI02, and five additional sidetracks or plugbacks into the Eider accumulation. 17. Reservoir surveillance data combined with a full field reservoir simulation indicate converting well 2- 56A/EIO 1 to water injection service and maintaining voidage replacement will maximize recovery from the proposed EOP. 18. BPXA does not intend to repressurize the reservoir to its original pressure because there is potential risk of lost reserves from resaturating the gas cap. 19. Recovery from primary depletion is estimated at 15% OOIP, while recovery with water injection is estimated at 27-38%, an incremental recovery of 12-23%. 20. BPXA plans to inject seawater and/or produced water from EOP or Endicott facilities consisting of Sag Delta North and Endicott pools. A formation water analysis will be conducted prior to initiating injection operations to ensure compatibility of the injected water with formation water. 21. Maximum expected injection rate is 17,000 barrels of water per day. Area Injection Order No. 19 June 2, 2000 Page 3 22. Estimated average wellhead injection pressure is 2200 psia, maximum wellhead injection pressure is estimated at 2700 psia. 23. Salinity estimates from wire line logs submitted for the original Duck Island Unit area injection order application ranged from 18,000 to 32,000 milligrams per liter ("mglL") total dissolved solids ("TDS") throughout the sub-permafrost stratigraphic section in the Duck Island Unit Area. 24. Salinity estimates from wire line logs submitted for the Eastern Operating Area of the Prudhoe Bay Unit area injection order application ranged from 13,000 to 55,000 milligrams per liter ("mg/L") total dissolved solids ("TDS") throughout the sub-permafrost stratigraphic section. 25. WeIl2-56A1EIOl is completed with 9 5/8" 47 #/ft casing to 7,079' measured depth (MD), 7" 29 #/ft liner set at 15,958'MD,a4~" 12.6#/ftlinerto 17,988',4~" 12.6 #/fttubing set to 15,176' MDwith a 7" packer at 15,199' MD. Open perforations are from 17,714' to 17,904' MD. 26. A cement bond log run on weIl2-56AÆIOl indicates top of cement at 16,300'. A copy of the log is on file with the Commission. 27. BPXA will demonstrate the mechanical integrity ofweIl2-56A/EIOl as specified in 20 AAC 25.412 prior to initiating injection operations. 28. The operator will comply with the requirements of 20 AAC 25.402 (d) & (e) to monitor tubing-casing annulus pressures of injection wells periodically during injection operations to ensure there is no leakage and that casing pressure remains less than 70% of minimum yield strength of the casing. 29. All existing wells drilled within the proposed project area have been constructed in accordance with 20 AAC 25.030. All wells abandoned in the proposed project area have been abandoned in accordance with 20 AAC 25.105 and 20 AAC 25.112 or an equivalent precursor regulation. CONCLUSIONS: 1. The application requirements of20 AAC 25.402 have been met. 2. An Area Injection Order is appropriate for the project area in accordance with 20 AAC 25.460. 3. No underground sources of drinking water ("USDW's") exist beneath the permafrost in the area of the Eider oil accumulation. 4. The proposed injection operations will be conducted in permeable strata, which reasonably can be expected to accept injected fluids at pressures less than the fracture pressure of the confining strata. 5. Injection fluids limited to produced fluid and/or seawater are the most beneficial and efficient approach to enhanced recovery at this time. 6. Injected fluids will be confined within the appropriate receiving intervals by impenneable lithology, cement isolation of the wellbore and appropriate operating conditions. 7. The EOP enhanced oil recovery project will result in significant additional hydrocarbon recovery from the pool. Area Injection Order No. 19 June 2, 2000 Page 4 t 8. Reservoir surveillance, operating parameter surveillance and mechanical integrity tests will demonstrate appropriate performance of the enhanced oil recovery project or disclose possible abnormalities. 9. An order enabling enhanced oil recovery activity will not cause waste nor jeopardize correlative rights. NOW, THEREFORE, IT IS ORDERED that the following rules govern Class II enhanced oil recovery injection operations in the affected area described below: UMIAT MERIDIAN T12N R16E Section 27: all Section 28: NE Y4 of SE Y4 Rule 1 Authorized In.iection Strata for Enhanced Recovery Within the affected area, fluids appropriate for enhanced recovery may be injected for purposes of pressure maintenance and enhanced recovery into strata that are common to and correlate with the interval between the measured depths of 17338 and 17928 feet in the BP Exploration 2-56A/EIOl well. Rule 2 Fluid Iniection Wells The underground injection of fluids must be through a well permitted for drilling as a service well for injection in conformance with 20 AAC 25.005 or through a well approved for conversion to a service well for injection in conformance with 20 AAC 25.280. Rule 3 Monitorinp' the Tubinf-Casinp' Annulus Pressure Variations The tubing-casing annulus pressure and injection rate of each injection well must be checked at least weekly to ensure there is no leakage and that it does not exceed a pressure that will subject the casing to a hoop stress greater than 70% of the casing's minimum yield strength. Rule 4 Reportinp' the Tubinp'-Casinp' Annulus Pressure Variations Tubing-casing annulus pressure variations between consecutive observations need not be reported to the Commission unless well integrity failure is indicated as in Rule 6 below. Rule 5 Demonstration of Tubinp'-Casinp' Annulus Mechanical Intee:ritv A schedule must be developed and coordinated with the Commission that ensures that the tubing-casing annulus for each injection well is pressure tested prior to initiating injection, following well workovers affecting mechanical integrity, and at least once every four years thereafter. A test surface pressure of 1500 psi or 0.25 psi/ft. multiplied by the vertical depth of the packer, whichever is greater, will be used. The test pressure must show a stabilizing trend and must not decline more than 10% in a thirty-minute period. The Commission must be notified at least twenty-four (24) hours in advance to enable a representative to witness pressure tests. Area Injection Order No. 19 June 2, 2000 Page 5 Rule 6 Well Intep'ritv Failure .~. ":1' ,~ Whenever operating pressure observations, injection rates, or pressure tests indicate pressure communication or leakage of any casing, tubing or packer, the operator must notify the Commission on the first working day following the observation, obtain Commission approval to continue injection and submit a plan of corrective action on Form 10-403 for Commission approval. Rule 7 PluP'p'inp and Abandonment of Iniection Wells An injection well located within the affected area must not be plugged or abandoned unless approved by the Commission in accordance with 20 AAC 25.105. Rule 8 Notification The operator must notify the Commission if it learns of any improper Class II injection. Additionally, notification requirements of any other State or Federal agency remain the operators' responsibility. Rule 9 Administrative Action Upon proper application, the Commission may administratively waive the requirements of any rule stated above or administratively amend any rule as long as the change does not promote waste or jeopardize correlative rights, is based on sound engineering principles and will not result in an increased risk of fluid movement into a USDW. DONE at Anchorage, Alaska and dated June 2,2000. ..,~~.... ca~Ta~~m~ Alaska Oil and Gas Conservation Commission Daniel T. Seamoûñi Jr., Commissioner Alaska Oil and Gas Conservation Commission 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 received by 4:30 PM on the 23rd day following the date of the order, or next working day if a holiday or weekend, to be timely filed. The Commission shall grant or refuse the application in whole or in part within 10 days. The Commission can refuse an application by not acting on it within the 1 D-day period. An affected person has 30 days from the date the Commission refuses the application or mails (or otherwise distributes) an order upon rehearing, both being the final order of the Commission, to appeal the decision to Superior Court. Where a request for rehearing is denied by nonaction of the Commission, tIle 3D-day period for appeal to Superior Court runs from the date on which the request is deemed denied (i.e., 10th day after the application for rehearing was filed). DRI / McGraw Hill Randall Nottingham 24 Hartwell Lexington, MA 02173 PIRA ENERGY GROUP LIBRARY 3 PARK AVENUE (34th & PARK) NEW YORK, NY 10016 ( no /9 \.hJ ()~1a6¿ ~ (,- &-~OD OVERSEAS SHIPHOLDING GRP ECON DEPT 1114 AV OF THE AMERICAS NEW YORK, NY 10036 NY PUBLIC LIBRARY DIV E GRAND CENTRAL STATION POBOX 2221 NEW YORK, NY 10163-2221 ALASKA OFC OF THE GOVERNOR JOHN KATZ STE 518 444 N CAPITOL NW WASHINGTON, DC 20001 ARENT FOX KINTNER PLOTKIN KAHN LIBRARY WASHINGTON sa BLDG 1050 CONNECTICUT AV NW WASHINGTON, DC 20036-5339 US MI N MGMT SERV CHIEF OCS STATS & INFO 381 ELDEN ST MS 4022 HERNDON, VA 20170-4817 LIBRARY OF CONGRESS STATE DOCUMENT SECTION EXCH & GIFT DIV 10 FIRST ST SE WASHINGTON, DC 20540 US DEPT OF ENERGY PHYLLIS MARTIN MS EI823 1000 INDEPENDENCE SW WASHINGTON, DC 20585 TECHSYS CORP BRANDY KER NS PO BOX 8485 GA THERSBURG, MD 20898 ( CROSS TIMBERS OPERATIONS SUSAN ULL Y 210 PARK AVE STE 2350 OKLAHOMA CITY, OK 73102-5605 UNIV OF ARKANSAS SERIALS DEPT UNIV LIBRARIES FAYETTEVILLE, AR 72701 MURPHY E&P CO ROBERT F SAWYER POBOX 61780 NEW ORLEANS, LA 70161 ALFRED JAMES III 107 N MARKET STE 1000 WICHITA, KS 67202-1611 UN DA HALL LIBRARY SERIALS DEPT 5109 CHERRY ST KANSAS CITY, MO 64110-2498 ILLINOIS STATE GEOL SURV LIBRARY 469 NATURAL RESOURCES BLDG 615 E PEABODY DR CHAMPAIGN, IL 61820 AMOCO CORP 2002A LIBRARY/INFO CTR POBOX 87703 CHICAGO, IL 60680-0703 SD DEPT OF ENV & NATRL RESOURCES OIL & GAS PROGRAM 2050 W MAIN STE #1 RAPID CITY, SD 57702 DPC DANIEL DONKEL 1420 NORTH ATLANTIC AVE, STE 204 DAYTON BEACH, FL 32118 ( US GEOLOGICAL SURVEY LIBRARY NATIONAL eTR MS 950 RESTON, VA 22092 DWIGHTS ENERGYDA T A INC JERLENE A BRIGHT DIRECTOR PO BOX 26304 OKLAHOMA CITY, OK 73126 IOGCC POBOX 53127 OKLAHOMA CITY, OK 73152-3127 R E MCMILLEN CONSULT GEOL 202 E 16TH ST OW ASSO, OK 74055-4905 OIL & GAS JOURNAL LAURA BELL POBOX 1260 TULSA, OK 74101 GAFFNEY, CLINE & ASSOCIATES LIBRARY 16775 ADDISON RD STE 400 ADDISON, TX 75001 GAFFNEY, CLINE & ASSOC., INC. 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ANCHORAGE, AK 99504-3305 ARLEN EHM GEOL CONSL TNT 2420 FOXHALL DR ANCHORAGE, AK 99504-3342 JAMES E EASON 8611 LEEPER CIRCLE ANCHORAGE, AK 99504-4209 US BUREAU OF LAND MNGMNT ANCHORAGE DIST OFC DICK FOLAND 6881 ABBOTT LOOP RD ANCHORAGE, AK 99507 RUSSELL DOUGLASS 6750 TESHLAR DR ANCHORAGE, AK 99507 STU HIRSH 9630 BASHER DR. ANCHORAGE, AK 99507 AMERICA/CANADIAN STRATIGRPH CO RON BROCKWAY 4800 KUPREANOF ANCHORAGE, AK 99507 US BUREAU OF LAND MNGMNT ANCHORAGE DIST OFC PETER J DITTON 6881 ABBOTT LOOP ROAD ANCHORAGE, AK 99507 US BLM AK DIST OFC RESOURCE EVAL GRP ART BONET 6881 ABBOTT LOOP RD ANCHORAGE, AK 99507-2899 TRADING BAY ENERGY CORP PAUL CRAIG 5432 NORTHERN LIGHTS BLVD ANCHORAGE, AK 99508 JOHN MILLER 3445 FORDHAM DR ANCHORAGE, AK 99508-4555 US MIN MGMT SERV RESOURCE EVAL JIM SCHERR 949 E 36TH AV RM 603 ANCHORAGE, AK 99508-4363 US MIN MGMT SERV LIBRARY 949 E 36TH AV RM 603 ANCHORAGE, AK 99508-4363 REGIONAL SUPRVISOR, FIELD OPERATNS MINERALS MANAGEMENT SERVICE ALASKA OCS REGION 949 E 36TH A V STE 308 ANCHORAGE, AK 99508-4363 US MIN MGMT SERV FRANK MILLER 949 E 36TH A V STE 603 ANCHORAGE, AK 99508-4363 US MIN MGMT SERV RESOURCE STUDIES AK OCS REGN KIRK W SHERWOOD 949 E 36TH AV RM 603 ANCHORAGE, AK 99508-4302 US MIN MGMT SERV AK OCS REGIONAL DIR 949 E 36TH AV RM 110 ANCHORAGE, AK 99508-4302 US MIN MGMT SERV RICHARD PRENTKI 949 E 36TH AV ANCHORAGE, AK 99508-4302 UNIVERSITY OF ALASKA ANCHORAGE INST OF SOCIAL & ECON RESEARCH TERESA HULL 3211 PROVIDENCE DR ANCHORAGE, AK 99508 THOMAS R MARSHALL JR 1569 BIRCHWOOD ST ANCHORAGE, AK 99508 USGS - ALASKA SECTION LIBRARY Ii 4200 UNIVERSITY DR ANCHORAGE, AK 99508-4667 CIRI LAND DEPT POBOX 93330 ANCHORAGE, AK 99509-3330 ANCHORAGE TIMES BERT TARRANT POBOX 100040 ANCHORAGE, AK 99510-0040 ARCO ALASKA INC JOANN GRUBER ATO 712 POBOX 100360 ANCHORAGE, AK 99510-0360 ARCO ALASKA INC LEGAL DEPT MARK P WORCESTER POBOX 100360 ANCHORAGE, AK 99510-0360 ARCO ALASKA INC STEVE BENZLER A TO 1404 POBOX 100360 ANCHORAGE, AK 99510-0360 ARCO ALASKA INC LIBRARY POBOX 100360 ANCHORAGE, AK 99510-0360 ARCO ALASKA INC MARK MAJOR ATO 1968 POBOX 100360 ANCHORAGE, AK 99510-0360 ARCO ALASKA INC LAND DEPT JAMES WINEGARNER POBOX 10036 ANCHORAGE, AK 99510-0360 ARCO ALASKA INC SAM DENNIS ATO 1388 POBOX 100360 ANCHORAGE, AK 99510-0360 ARCO ALASKA INC SHELlAANDREWS ATO 1130 PO BOX 100360 ANCHORAGE, AK 99510-0360 PETROLEUM INFO CORP KRISTEN NELSON POBOX 102278 ANCHORAGE, AK 99510-2278 ARCO ALASKA INC KUP CENTRAL WELLS ST TSTNG WELL ENG TECH NSK 69 POBOX 196105 ANCHORAGE, AK 99510-6105 AL YESKA PIPELINE SERV CO CHUCK O'DONNELL 1835 S BRAGAW - MS 530B ANCHORAGE, AK 99512 AL YESKA PIPELINE SERV CO PERRY A MARKLEY 1835 S BRAGAW - MS 575 ANCHORAGE, AK 99512 AL YESKA PIPELINE SERV CO LEGAL DEPT 1835 S BRAGAW ANCHORAGE, AK 99512-0099 US BUREAU OF LAND MGMT OIL & GAS OPRNS (984) J A DYGAS 222W 7TH AV#13 ANCHORAGE, AK 99513-7599 ANCHORAGE DAILY NEWS EDITORIAL PG EDTR MICHAEL CAREY POBOX 149001 ANCHORAGE, AK 99514 DAVID W. JOHNSTON 320 MARINER DR. ANCHORAGE, AK 99515 JWL ENGINEERING JEFF LIPSCOMB 9921 MAIN TREE DR. ANCHORAGE, AK 99516-6510 ~ ~. NORTHERN CONSULTING GROUP ROBERT BRITCH, P.E. 2454 TELEQUANA DR. ANCHORAGE, AK 99517 GERALD GANOPOLE CONSULT GEOL 2536 ARLINGTON ANCHORAGE, AK 99517-1303 DAVID CUSATO 600 W 76TH A V #508 ANCHORAGE, AK 99518 ASRC CONRAD BAGNE 301 ARCTIC SLOPE AV STE 300 ANCHORAGE, AK 99518 ARMAND SPIELMAN 651 HILANDER CIRCLE ANCHORAGE, AK 99518 HALLIBURTON ENERGY SERV MARK WEDMAN 6900 ARCTIC BLVD ANCHORAGE, AK 99518-2146 OPST AD & ASSOC ERIK A OPSTAD PROF GEOL POBOX 190754 ANCHORAGE, AK 99519 JACK 0 HAKKILA POBOX 190083 ANCHORAGE, AK 99519-0083 ENSTAR NATURAL GAS CO BARRETT HATCHES POBOX 190288 ANCHORAGE, AK 99519-0288 MARATHON OIL CO OPERATIONS SUPT POBOX 196168 ANCHORAGE, AK 99519-6168 ~ " .~ BP EXPLORATION (ALASKA) INC INFO RESOURCE CTR MB 3-2 POBOX 196612 ANCHORAGE, AK 99519-6612 BP EXPLORATION (ALASKA) INC MR. DAVIS, ESQ POBOX 196612 MB 13-5 ANCHORAGE, AK 99519-6612 BP EXPLORATION (ALASKA) INC BOB WILKS MB 5-3 POBOX 196612 ANCHORAGE, AK 99519-6612 BP EXPLORATION (ALASKA) INC PETE ZSELECZKY LAND MGR POBOX 196612 ANCHORAGE, AK 99519-6612 BP EXPLORATION (ALASKA) INC SUE MILLER POBOX 196612 MIS LR2-3 ANCHORAGE, AK 99519-6612 BP EXPLORATION (ALASKA), INC. MARK BERLINGER MB 8-1 PO BOX 196612 ANCHORAGE, AK 99519-6612 EXXON MOBIL PRODUCTION COMPANY MARK P EVANS PO BOX 196601 ANCHORAGE, AK 99519-6601 UNOCAL POBOX 196247 ANCHORAGE, AK 99519-6247 UNOCAL KEVIN TABLER POBOX 196247 ANCHORAGE, AK 99519-6247 t- MARATHON OIL CO BRAD PENN POBOX 196168 ANCHORAGE, AK 99519-6168 RON DOLCHOK POBOX 83 KENAI, AK 99611 PHILLIPS PETR ALASKA OPERATIONS MANAGER J W KONST P 0 DRAWER 66 KENAI, AK 99611 COOK INLET VIGIL JAMES RODERICK POBOX916 HOMER, AK 99603 COOK IN LET KEEPER BOB SHA VELSON PO BOX 3269 HOMER, AK 99603 DEPT OF NATURAL RESOURCES DGGS JOHN REEDER POBOX 772805 EAGLE RIVER, AK 99577-2805 DIANA FLECK 18112 MEADOW CRK DR EAGLE RIVER, AK 99577 PINNACLE STEVE TYLER 20231 REVERE CIRCLE EAGLE RIVER, AK 99577 D A Pu\ TT & ASSOC 9852 LITTLE DIOMEDE CIR EAGLE RIVER, AK 99577 l G POST O&G LAND MGMT CONSULT 10510 Constitution Circle EAGLE RIVER, AK 99577 AMSINALLEE CO INC WilLIAM 0 VALLEE PRES PO BOX 243086 ANCHORAGE, AK 99524-3086 ,~ ~, AL YESKA PIPELINE SERVICE CO VALDEZ CORP AFFAIRS SANDY MCCLINTOCK POBOX 300 MS1701 VALDEZ, AK 99686 VALDEZ PIONEER POBOX 367 VALDEZ, AK 99686 KENAI NATL WILDLIFE REFUGE REFUGE MGR POBOX 2139 SOLDOTNA, AK 99669-2139 JAMES GIBBS POBOX 1597 SOLDOTNA, AK 99669 PACE SHEILA DICKSON POBOX 2018 SOLDOTNA, AK 99669 BELOWICH COAL CONSULTING MICHAEL A BELOWICH HC31 BOX 5157 WASILLA, AK 99654 PENNY VADLA PO BOX 467 NINILCHIK, AK 99639 NANCY LORD PO BOX 558 HOMER, AK 99623 KENAI PENINSULA BOROUGH ECONOMIC DEVEL DISTR STAN STEADMAN POBOX 3029 KENAI, AK 99611-3029 DOCUMENT SERVICE CO JOHN PARKER POBOX 1468 KENAI, AK 99611-1468 I~ K&K RECYCL INC POBOX 58055 FAIRBANKS, AK 99711 DEPT OF NATURAL RESOURCES DIV OF LAND REG MGR NORTHERN REGION 3700 AIRPORT WAY FAIRBANKS, AK 99709-4699 FRED PRATT POBOX 72981 FAIRBANKS, AK 99707-2981 FAIRBANKS DAILY NEWS-MINER KATE RIPLEY POBOX 70710 FAIRBANKS, AK 99707 C BURGLlN POBOX 131 FAIRBANKS, AK 99707 JACK HAKKILA POBOX 61604 FAIRBANKS, AK 99706-1604 RICK WAGNER POBOX 60868 FAIRBANKS, AK 99706 NICK STEPOVICH 543 2ND AVE FAIRBANKS, AK 99701 UNIV OF ALASKA FAIRBANKS PETR DEVEL LAB DR V A KAMATH 427 DUCKERING FAIRBANKS, AK 99701 { VALDEZ VANGUARD EDITOR POBOX 98 VALDEZ, AK 99686-0098 ~ DEPT OF ENVIRON CONSERV SPAR CHRIS PACE 410 WILLOUGHBY AV STE 105 JUNEAU, AK 99801-1795 SENATOR LOREN LEMAN STATE CAPITOL RM 113 JUNEAU, AK 99801-1182 UNIVERSITY OF ALASKA FBKS PETR DEVEL LAB DR AKANNI LAWAL POBOX 755880 FAIRBANKS, AK 99775-5880 UNIV OF ALASKA FBX PETR DEVEL LAB SHIRISH PATIL 437 DICKERING FAIRBANKS, AK 99775 RICHARD FINEBERG POBOX416 ESTER, AK 99725 ( ASRC BILL THOMAS POBOX 129 BARROW, AK 99723 #11 ) ) :¡'~\ CV'l :17\ ""1 '¡ 'j' ii"~ .. .:,\' 'u '.' ',. ,Ii, ¡'¡"A. \. '..: :: .\'\ . "h '., 'I F @\,O:U""'\":' '\ '" .f'-l '" ,: 'I: : , " " ·1 r-"\ ':\ :', " \" U ," : Uw JJ :L2::! r.·u.·\.:. ·.'11> ,.".::::1 .j:' 6 I r :jLJi \,:::::;".J :1 ' r~\ p !~~~\ r?'''''~, I' ¡"\..I .' ·1 .. 1),\.. '.... \h..) . 'il 'J :1: '\ ,.:, ", ¡.: .1J I, ,I: J I '" \ '\. \, .~'\ :1' 'Ii =: \ .') \ ',. " ,\ :" I" ~" Cl j }. ::.JU ::....=J LJi..J \.~.,. r:"1 ! 14 \ j !J \ j .¡-, \ /-1 W FRANK H. MURKOWSKI, GOVERNOR A"fA~1iA OIL AlO) GAS CONSERVATION COMMISSION 333 W. 'fTH AVENUE. SUITE 100 ANCHORAGE, ALASKA 99501·3539 PHONE (907) 279-1433 FAX (907)276-7542 September 27, 2004 Proposals to Amend Underground Injection Orders to Incorporate Consistent Language Addressing the Mechanical Integrity of Wells The Alaska Oil and Gas Conservation Commission ("Commission"), on its own motion, proposes to amend the rules addressing m~chanical integrity of wells in all existing area injection orders, storage injection orders, enhanced recovery injection orders, and disposal injection orders. There are numerous different versions of wording used for each of the rules that create confusion and inconsistent implementation of well integrity requirements for injection wells when pressure communication or leakage is indicated. In several injection orders, there are no rules addressing requirements for notification and well disposition when a well integdty failure is identified. Wording used for the administrative approval rule in injection orders is similarly inconsistent. The Commission proposes these three rules as replacements in all injection orders: Demonstration of Mechanical Integrity The mechanical integrity of an injection well must be demonstrated before injection begins, at least once every four years thereafter (except at least once every two years in the case of a slurry injection well), and before returning a well to service following a workover affecting mechanical integrity. Unless an alternate means is approved by the Commission, mechanical integrity must be demonstrated by a tubing/casing annulus pressure test using a surface pressure of 1500 psi or 0.25 psi/ft multiplied by the vertical depth of the packer, whichever is greater, that shows stabilizing pressure and does not change more than 10 percent during a 30 minute period. The Commission must be notified at least 24 hours in advance to enable a representative to witness mechanical integrity tests. Well Integrity Failure and Confinement Whenever any pressure communication, leakage or lack of injection zone isolation is indicated by injection rate, operating pressure observation, test, survey, log, or other evidence, the operator shall immediately notify the Commission and submit a plan of corrective action on a Form lO-403 for Commission approval. The operator shall immediately shut in the well if continued operation would be unsafe or would threaten contamination of freshwater, or if so directed by the Commission. A monthly report of daily tubing and casing annuli pressures and injection rates must be provided to the Commission for all injection wells indicating well integrity failure or lack of injection zone isolation. Administrative Actions Unless notice and public hearing is otherwise required, the Com.mission may administratively waive or amend any rule stated above as long as the change does not promote waste or jeopardize correlative rights, is based on sound engineering and geoscience principles, and will not result in fluid movement outside of the authorized injection zone. The following table identifies the specific rules affected by the rewrite. Injection Order "Demonstration of Mechanical Integrity" Affected Rules "Well Integrity Failure and Confinement" " Administrative Action" Area InJ ection Orders AIO 1 - Duck Island Unit AIO 2B - Kuparuk River Unit; Kuparuk River, Tabasco, Ugnu, West Sak Fields AIO 3 - Prudhoe Bay Unit; Western Operating Area AIO 4C - Prudhoe Bay Unit; Eastern Operating Area AIO 5 - Trading Bay Unit; McArthur River Field AIO 6 - Granite Point Field; Northern Portion AIO 7 - Middle Ground Shoal; Northern Portion AIO 8 - Middle Ground Shoal; Southern Portion AIO 9 - Middle Ground Shoal; Central Portion AIO lOB - Milne Point Unit; Schrader Bluff, Sag River, Kuparuk River Pools Ala 11 - Granite Point Field; Southern Portion Ala 12 - Trading Bay Field; Southern Portion Ala 13A - Swanson River Unit Ala 14A - Prudhoe Bay Unit; Niakuk Oil Pool Ala 15 - West McArthur 6 7 9 6 7 9 6 7 9 6 7 9 6 6 9 6 7 9 6 7 9 6 7 9 6 7 9 4 5 8 5 6 8 5 6 8 6 7 9 4 5 8 5 6 9 ) ) Affected Rules "Demonstration of "Well Integrity "Administrative Injection Order Mechanical Failure and Action" Integrity" Confinement" River Unit AIO 16 - Kuparuk River 6 7 10 Unit; Tarn Oil Pool 6 8 AIO 17 - Badami Unit 5 AIO 18A - Colville River 6 7 11 Unit; Alpine Oil Pool AIO 19 - Duck Island Unit; 5 6 9 Eider Oil Pool AIO 20 - Prudhoe Bay Unit; 5 6 9 Midnight Sun Oil Pool AIO 21 - Kuparuk River 4 No rule 6 Unit; Meltwater Oil Pool AID 22C - Prudhoe Bay 5 No rule 8 U nit; Aurora Oil Pool 6 9 Ala 23 - Northstar Unit 5 AID 24 - Prudhoe Bay Unit; 5 No rule 9 Borealis Oil Pool AID 25 - Prudhoe Bay Unit; 6 8 13 Polaris Oil Pool AID 26 - Prudhoe Bay Unit; 6 No rule 13 Orion Oil Pool Disposal Injection Orders DIO 1 - Kenai Unit; KU No rule No rule No rule WD-l DIO 2 - Kenai Unit; KU 14- No rule No rule No rule 4 DIG 3 - Beluga River Gas No rule No rule No rule Field; BR WD-l DIG 4 - Beaver Creek Unit; No rule No rule No rule BC-2 DID 5 - Barrow Gas Field; No rule No rule No rule South Barrow #5 DIG 6 - Lewis River Gas No rule No rule 3 Field; WD-l DIO 7 - West McArthur 2 3 5 River Unit; WMRU D-l DID 8 - Beaver Creek Unit; 2 3 5 BC-3 DIG 9 - Kenai Unit; KU 11- 2 3 4 17 DIG 10 - Granite Point 2 3 5 Field; GP 44-11 Injection Order "Demonstration of Mechanical Integrity" DIO 11 - Kenai Unit; KU 24-7 DIO 12 - Badami Unit; \VO- I, WD- 2 DIO 13 - North Trading Bay Unit; S-4 DIO 14 - Houston Gas Field; Well #3 DIO 15 - North Trading Bay Unit; S- 5 D 10 16 - West McArthur River Unit; WMRU 4D DIO 17 - North Cook Inlet Unit; NCill A-12 010 19 - Granite Point Field; W. Granite Point State 17587 #3 DIG 20 - Pioneer Unit; Well 1702-15DA WDW DIG 21 - Flaxman Island; Alaska State A-2 DIG 22 - Redoubt Unit; RU DI DIO 23 - Ivan River Unit; IRU 14-31 DIG 24 - Nicolai Creek Unit; NCU #5 DIG 25 - Sterling Unit; SU 43-9 DIG 26 - Kustatan Field; KFl Storage Injection Orders SIO 1 - Prudhoe Bay Unit, Point McIntyre Field #6 SIO 2A- Swanson River Unit; KGSF #1 SIO 3 - Swanson River Unit; KGSF #2 Enhanced Recovery Ioj ection Orders ErO 1 - Prudhoe Bay Unit; Prudhoe Bay Field, Schrader Bluff Formation Well V-I05 2 2 2 2 2 2 2 3 3 3 3 No rule 3 3 No rule 2 2 No rule Affected Rules "Well Integrity "Administrati ve Failure and Action" Confinement" 3 4 3 5 3 6 ., 5 -' 3 Rule not numbered 3 5 3 6 4 6 4 6 4 7 No rule 6 No rule 6 Order expired 4 7 4 7 No rule No rule No rule 6 No rule 7 No rule 8 Injection Order EIO 2 - Redoubt Unit; RU-6 ') "Demonstration of Mechanical Integrity" 5 ) Affected Rules "Well Integrity Failure and Confinement" 8 "Administrati ve Action" 9 I 02-902 (Rev. 3/94) Publisher/Original Copies: Department Fiscal, Department, Receiving AO.FRM STATE OF ALASKA ADVERTISING ORDER .. ~l:EBgTTOMF()~IN\t()ICE~DnÆES$ NOTICE TO PUBLISHER ADVERTISING ORDER NO. INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED AO-02514016 AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COpy OF ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE F AOGCC 333 West ih Avenue, Suite 100 Anchorage, AK 99501 907-793-1221 AGENCY CONTACT DATE OF A.O. R o M lady Colomhie Septemher 77, ?004 PHONE PC\¡ (907) 793 -I ??I DATES ADVERTlSEME;\IT REQt:IRED: T o Journal of Commerce 301 Arctic Slope Ave #350 Anchorage, AK 99518 October 3,2004 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRt:CTlONS: 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 helshe 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 2004, and thereafter for _ consecutive days, the last publication appearing on the _ day of , 2004, 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 2004, Notary public for state of My commission expires 9/29/2004 1: 10 PM 10f2 Subject: Public Notices From: Jody Colombie <jody _ colombie@admin.state.ak.us> Date: Wed, 29 Sep2004 13:01:04 -0800 To: undisclosed-recipien~s:; BCC:Cynthia B Mciver <bren_mciver@admin.state.ak.IlS>, Angélll Webb <angie. webb@adtnin.state.~~us>" Robert EMintz <robert mintZ@law~state~ak.us>,.Christìne HaQse; <c.hansen@iogcc.state.qk. U$> ,'Terti~ Hubble <~ub~letl@bp!.b()m>, Sondrá Stewman <Stewtna$D@}3,P .oom>~. Sc()tt' & Ca1ntfty Taylor<s~ayIor@alask~.~et>,':.st~ekJ <stanekj.@unoc-aLcom?,. ecolaw <ecolaw@trustees~org>~ roseragsdale.. <ro.sé~::i.gSda1e@gci.net>, trrnjr1 <trmjrl@ao1.90m>, jbriØdle:<jbdddle@marathorioil.com:>,.rockhill <roc~iJl@aoga.org>, shaneg <slumeg@evf,lr~~:Com>,jdarlington <jdarljntiton@forestoitcDn1>,n~1Son. . <knelsol1@petroleuµtnews.cQm?-, cbodc.ty <c'boddY@usibeIl~.com>, Mark Dalton . <mark.dalton@hdrinc.com>, ShannonDonn~ny <shatlQ.on.dohne.lïy@conöcophi11ips~.com>;. t~Mark P. W órcester" ,<mark.p.worcestet@conøcophillips.com>, ~JenyC.Detblef'ß. ., ' "" .!. .. <jerry.c.dethlefs@êoriocophillips~com>,. B()b.·<bob@inletkeeper.org>, . wdv <wdv@dnr..state.ak.us>, tjr. <tjr@dnt:.state.a.k~qS> ,bbrifuh <bbritch@alåska:net>, I11jnelson<;mjnelsøn@pihVirigertZ.com>, Charles. O'Donnell <charles.o'donnell@veco.com>,"Randy,L. Ski~lem" <S,1àlleRL@BP ..co~>, "Deborah J. Jones" <JonesD6@BP".com>, "Paul G. Hyatt" <hyattpg@BP.com>,"Steven R. Rossberg" <Ros~beRS@BP,com>, Lois <lois@inletk:¢eper.org>, DIi!I Bro~<kuacnew&@lruäc.org>, Go);don Pospisil <Pospis(ì@BP.coJ.1]>, "Francis s. SOIÌlI11er" <So~e;rFS@Bl\com>; Mikel Schultz <MikeLSchultz@BP·.com>, "Nick W.Glov~r" <GloverNW@Bp;com>,. "Dary:l J. IDeppinr, <KleppiDE@J::JP.com>,. "Janet·D. P1atttf <~lattJD@BP.co~,. uR<:>s~e·M. Jacobsen" <JacobsRM@BP ~coni>~' ddonkel <ddonkel@ct1.1T~CoD1>,CollinsMòunt <conins~ mo1Jnt@revenue.state.ak.us>, mckay <mckay@gcLnet>, ·Baibant F Fullmer <barbai-a~f. fullmer@conocöphillips.cam>, bocastwf<bocastwf@bp~com>, C4af~'es Bark~r: . <barker@usgs.gov> , doug_schultze <doug_ schultze@xtoenergy.com>,.Hank Alford . <bank.a1ford@exxonmobi1.com>, Mark 'Kovac <yesno l@gci.n~t>, gspfoff ' <gspfoff@amorapower.com:>, Gregg Nady <gregg.nady@shell.com>, Fred St~ece <:&ed.steece@state.sd.us>:t rcrotty <rcrotty@ch2m·.cotn>, jejones <jejones@aurorapower.com>, dapa <dalJa@a1aska.net> ,jro9frick <jroderick@gci.~et>, eyancy <~atl~ea,t~~te.net>:, "James M. Ruud" <jarries.m~ruud@cpnocophi~l~p~.com>, Brit Lively <mªpal~ka@ak.net>,jah . <jah@dnr.state.aicus>,Kurt EOlson <kurt_ ó}son@legis.state.ak.us>, buonoj~ <buonoje@bp.com>, Mark Hanley <mar~hanley@anadarko.com>, loren_leman·<loren_leinan@gov~state.ak.ús>, Julie Houle <';ulie houle@dnr.state·.ak.us>, John W Katz<jwkatz@sso.org>, SuzånJ Hill <sui~ _ hiU@dec.state.a.k.qS>, tablerk <tablerk@iln0cal.cOln>, Brady <brady@aoga.org>, Brian Havelo~k <beh@dnr.state.ak.us>, bpopp <bp()pp@borough.ken~lÍ.ak.us>, Jim White . <jimwhite@satx.rr.com>,· "John S. Haworth"· <johri.&haworth@exXonmobi1.com>,.marty <marty@rkindustrial.com>,.ghammQns <ghammo~@aol.c()µJ.>~~cl~ai1 <nnclean@pobox.alaska.net>, mkm 7200 <1I1km7200@aoLcòm?,-,. J3pan (Jillespie <itbmg@ua~a1aska.edu>, David L Boelen~ <dbøel~I1,S@atµ"~taPowe~.coÎi1>, Todd Durkee. <TDURKEE@KMG.com>, Gary S~hultz <garr_schuItZ@dnr.stat~~àk.us>, Wayne .Rancier <RANCIE~@petro-cana~a.ca> ,.Bill Miller <~iIl_ Miller@xtoaI~Jc.~t~Q~>" '13i-andon~grion <bgagnon@brenalaw.com>, Paul Winslow <pmwinsIow@forèstoil.~òIn>;· G~' Cation <catrongr@bp..com>, Shél1111aine Copeland <copelasv@bp.cOtn>, ~Uz~e: Anex~ <s~lexan@helmei1ergy.com>, Krist~ Dirks <kristin_dirk$@dnr.S~tê'~6~S>,.IÇ~y.neIl Zeman <kjzeman@marathonol1.com>, John 'Tower <john. Töwer@eia.doe.gov>,BiUFo.WIer . <BilI_ Fowler@anadarko.ÇOM> ,YªµW1§""~<5Yaµgþn.~:W~~@fþççm.çQm~~~9þ;Ç.lJªº~Wiº~ ) ) Public Notices Public Notices <scott.cranswick@mms.gov>, Brad McKim. <mckimbs@BP .com> Please fiJ:.ld the attached Noti ceand .'. Attachment for . the· proposed amendment of underground injection orders and the Public Notice Happy Valley #10. Jody Colombie ....,."..."..."......"",., 'H' I. .' '. .'. .'. . . .... . .. iContellt-Type: application/msword ¡MechanlcalIntegrtty proposaLdoc!. . . ...... ............. ..... .. .... .' ...... '.·.·.·.··.·b ·6...".··..·· : ": Conten.t.-Encodm.g.:.. ·ase.. 'T ~ , . .' . ._,......__'" .....~..,'.."" ~ "~'. ' .. ,__,. .." .c··..·.·..·.·.. '._. ~ ....._ "...," ,.."... .. ....,_.......... "..... ~ .'_ ._~ ..,~R_."..~.._, ."' ~_._M~.W". n _"._._".~.."' _, ..__....' '."""__', ¥...~.__ .... . . ..... ..,." ".~._,~.__.'~ I. j...Contênt"-Typé: åppIicatiónJmswÖrd ·Me.challicalIntegrity·ofWensN·otic~.doc¡··C· .......... ......'J:j't ···········d'·' ..... ·b···· 6'4·. ! 'ontent-ßRcolng: .ase ¡iContent-Type: applic.ätion/msword H âppyV alley to BeariitgNotice.doc: . .. ..... ... ....... E:' .. ...... ·'L' .. .... 6.·'4'... - . .. . .. . . . COlltent- ..... µcoding: lJase . ..,'. ,.~..~,~,L '. '.._ ~_¥""..".,.,,,..._,.¥."~. ,_,'"~._.;"-.._,.,,..._.., ....,.._... _._.~......_,_ ~.,~.._.."...._... e" _.". _..,. ......... ,...,,~.. .*.. ...._. .,~......, _,..._' _.... .,"_ . ._.... _."".__"'_'~'_"h. .._.,... .~_.;~:~'._.__~,_....._.__~,,___..._~ ._.....;,...,. ...,'.,~_..__.,.'._n_.. ~_.......___·_~_w 2 of 2 9/29/2004 1: 10 PM Public Notice ) ) S ubj ect: Pub lie Notice From: Jody Colombie <jody _colombie@admin.state;ak.us> ~~~e:..~~.~.~.....2.?i ~.~p.???~...1~:5.?:26.·. ~0800 1\iì;·:tègijl@Ma~~~j'9~~·.Þ@m .... Please publish the attached Notice on October 3, 2004. Thank you. Jody Colombie Content-Type: application/msword Integrity of Wells Notice.doc Content-Encoding: base64 Content-Type: application/msword ·Ad Order form.doc Content-Encoding: base64 1 of 1 9/29/2004 1: 10 PM 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 /tjalkd IcJ/(ð'~ David McCaleb IHS Energy Group GEPS 5333 Westheimer, Ste 100 Houston, TX 77056 Kelly Valadez 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 Com pany 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 David Cusato 200 West 34th PMB 411 Anchorage, AK 99503 Baker Oil Tools 4730 Business Park Blvd., #44 Anchorage. AK 99503 Ciri Land Department PO Box 93330 Anchorage, AK 99503 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 . [Fwd: Re: Consistent Wording for Injection )rs - Well Integrity... ) S,·...·..',u. ··..!b"".Jec.,. t.:.....,'..[., F,.'. W.,d.·. : R. ... e.,'.. :... c..... '..'.0.,.. n.·." ..:.8,. i.s. ten.·.·....tW.\.. or d.'.". '...i..~,·..g,',.',··.'...'..':6..,0....,.,., r."..·· Iri.,..·.,...~,..','.'.:.e.., ct.i:o. .,··n,.,...'.... O..·.....'.··.',rder~,-W~ll~t¢g:rity..Ç.;:R.~vì.se. d.'. ')J . ," ,', " '";'.''''::'': ':. ,;, ,,": " ',",:.., ".', ',,":,: ,",' ,.' .:.:':' ':.:", ,.', '::",: ," ':, .":. ,':''''.,.', " . From:. John NOrm'111<jolm-"- n0rµ1an($a9min~state~ak.u~>· . ....., I>~~~~ F~i~.OlÇ>çt~~94Jl:º9:?6\~9~'q~}.. ....,.. ........ ..... ....:.. ... ... . .. T9::,·.~~ªÑ;·.~·.·..¥Þ:t~ffl~ì¥·;~'çªY¿~Q~;~41t;,t~~ª~~~~:~~~#~;~~µ~~.........:............:., more -------- Original Message -------- Subject:Re: Consistent Wording for Injection Orders - Well Integrity (Revised) Date:Wed, 25 Aug 2004 16:49:40 -0800 From:Rob Mintz <robert l11intz@law.state.ak.us> To:jim regg@admin.state.ak.us CC:dan seamount@admin.state.ak.us, john norman@admin.state.ak.us Jim, looks good, but I still think maybe it would be good to include the following sentence or something like it in the well integrity and confinement rule: "The operator shall shut in the well if so directed by the Commission." My thinking is that otherwise, an operator might argue that the Commission can only require the well to be shut in by going through an enforcement action, issuing an order after notice and opportunity for hearing, or meeting the strict requirements for an emergency order under the regulations. The proposed language makes clear that it is a condition of the authorization to inject, that the operator must shut in the well if directed by the Commission after a notification of loss of integrity, etc. »> James Regg <¡im regg@admin.state.ak.us> 8/25/2004 3:15:06 PM »> Rob - Thanks for the review; here's a redraft after considering your comments. I have accepted most of the suggested edits; also attached is response to questions you pose (responses are embedded in the comments, using brackets [JBR - ...] to set apart from your questions). Jim Regg Rob Mintz wrote: Jim, I have some questions abQut the draft language, which are shown as comments on the first document attached. Based on my current guesses about what the answers will be to my questions, I also have some suggested edits, which are shown as redlines on the second document attached. »> James Regg <jim regg@admin.state.ak.us> 8/17/20044:33:52 PM »> Please delete previous version (email sent 8/9/04); I found another inconsistency in the injection orders regarding well integrity that I have integrated into the proposed fix. Attached is a proposal for consistent language in our injection orders addressing 3 rules related to well integrity: - "Demonstration of Tubing/Casing Annulus Mechanical Integrity" - "Well Integrity Failure" - "Administrative Actions". This proposal includes input from all Sf. staff (except Jack). If you agree with the approach, I'll work with Jody to prepare the public notice. Main points - Demonstration of Tubing/Casing Annulus Mechanical Integrity - standardizes the wording used for mechanical integrity demonstrations, and establishes abililty to grant alternate methods (e.g., temp survey, logging, pressure monitoring in lieu of pressure testing 1 of 2 10/2/2004 4:07 PM [Fwd: Re: Consistent Wording for Injection .ers - Well Integrity .._ - specific to AIO 2C for Kuparuk, there is wording that is more appropriately included in Well Integrity Failure (i.e., more frequent MIT s when communication demonstrated) - establishes more frequent MIT schedule for slurry injection wells (every 2 yrs) which is consistent with our current practice (but not addressed in regulations) Well Integrity Failure - retitles to "Well Integrity Failure and Confinement"; inserted language regarding injection zone integrity (see DIO 25 and 26) - consistent language regardless of type of injection (disposal, EOR, storage); - eliminates requirement for immediate shut in and secure; allows continued injection until Commission requires shut in if there is no threat to freshwater; - eliminates delay in notifying Commission after detect leakage or communication ("i.e., "immediately notify"); - removes language about notifying "other state and federal" agencies; - requires submittal of corrective action plan via 10-403; - requires monthly report of daily injection rate and pressures (tubing and all casing annuli); this is a requirement we currently impose when notified of leak or pressure communication; - notice and action not restricted to leaks above casing shoe as stated in several DIOs Administrative Actions - adopts" Administrative Actions" title (earlier rules used" Administrative Relief"): - consistent language regardless of type of injection (disposal, EOR, storage); - uses "administratively waive or amend" in lieu oftenns like "revise", "reissue", etc.; - adds geoscience to "sound engineering principles"; - language is more generic regarding fluid movement out of zone; existing versions mention varying combinations of protecting "freshwater", "aquifers", "USDWs"; "risk of fluid movement"; "fluid escape from disposal zone" Jim Regg JohnK. Norman <John Norrnan@?admin.state.us> Commissioner Alaska Oil & Gas Conservation Commission 20f2 10/2/2004 4:07 PM (Fwd: Re: Consistent Wording for Injection <.. ls - Well Integrity... ) .S..·.u....·.i..b.,...:....J.·.......ec. .t..· I..Fw.· ·..d....: R.·. e.:.C. O.n.siste.nt..W.". ordi.n.·..g. .., fo...r.... Iti.·.·· J.·'.'.e.,.ct...i .o.......nO.·.·...·....r....d...·.er~-.W¢n·.Ib.. te......gr. i.tY.·..€R.e..\r. is..··ed):] ~r~l1l: John Norman <john_nonnan@admin.stat~.ak.µs> . ". .... ". . . . . J?~!e:F,~~'.81 ()ct2º8~·.·~..} :8~:55-~~9°··. .................... ··.ii··.. ........... i...·.....·.·...... ............. .... ......< ~~':J.()çlyJ(ÇØ~():~b,~~<j;q~yJS~l~mþie®'ê-~p1:i~~~¥å1;~;,~.µ;~~"....... please print all and put in file for me to review just prior to hearing on these amendments. thanx -------- Original Message -------- Subject:Re: Consistent Wording for Injection Orders - Well Integrity (Revised) Date:Thu, 19 Aug 2004 15:46:31 -0800 From:Rob Mintz <robert mintz@law.state.ak.us> To:dan seamount@admin.state.ak.us, jim regg@admin.state.ak.us, john nonnan@admin.state.ak.us Jim, I have some questions about the draft language, which are shown as comments on the first document attached. Based on my current guesses about what the answers will be to my questions, I also have some suggested edits, which are shown as red lines on the second document attached. »> James Regg <jim regg@admin.state.ak.us> 8/17/20044:33:52 PM »> Please delete previous version (email sent 8/9/04); I found another inconsistency in the injection orders regarding well integrity that I have integrated into the proposed fix. Attached is a proposal for consistent language in our injection orders addressing 3 rules related to well integrity: - "Demonstration of Tubing/Casing Annulus Mechanical Integrity" - "Well Integrity Failure" - "Administrative Actions". This proposal includes input from all Sr. staff (except Jack). If you agree with the approach, I'll work with Jody to prepare the public notice. Main points - Demonstration of Tubing/Casing Annulus Mechanical Integrity - standardizes the wording used for mechanical integrity demonstrations, and establishes abililty to grant alternate methods (e.g., temp survey, logging, pressure monitoring in lieu of pressure testing - specific to AIO 2C for Kuparuk, there is wording that is more appropriately included in Well Integrity Failure (i.e., more frequent MITs when communication demonstrated) - establishes more frequent MIT schedule for slurry injection wells (every 2 yrs) which is consistent with our current practice (but not addressed in regulations) Well Integrity Failure - retitles to "Well Integrity Failure and Confinement"; inserted language regarding injection zone integrity (see 010 25 and 26) - consistent language regardless of type of injection (disposal, EOR, storage); - eliminates requirement for immediate shut in and secure; allows continued injection until Commission requires shut in if there is no threat to freshwater; - eliminates delay in notifying Commission after detect leakage or communication ("i.e., "immediately notify"); - removes language about notifying "other state and federal" agencies; - requires submittal of corrective action plan via 10-403; - requires monthly report of daily injection rate and pressures (tubing and all casing annuli); this is a requirement we currently impose when notified of leak or pressure communication; - notice and action not restricted to leaks above casing shoe as stated in several DIOs Administrative Actions 10f2 10/2/20044:07 PM [Fwd: Re: Consistent Wording for Injection .:: rs - Well In te gri ty ... - adopts" Administrative Actions" title (earlier rules used "Administrative RelieC'); - consistent language regardless of type of injection (disposal, EOR, storage); - uses "administratively waive or amend" in lieu of terms like "revise", "reissue", etc.; - adds geoscience to "sound engineering principles"; - language is more generic regarding fluid movement out of zone; existing versions mention varying combinations of protecting "freshwater", "aquifers", "USDWs"; "risk of fluid movement"; "fluid escape from disposal zone" Jim Regg JohnK. Noonan <John Norman@admin.state.us> . Commissioner . Alaska Oil & Gas Conservation Commission : Content-Type: applicationlmsword Injection Order language - questions.doc Content-Encoding: base64 Content-Type: applicationJmsword Injection Orders language edits. doc Content-Encoding: base64 20f2 10/2/2004 4:07 PM 0\ ) Standardized Language for Injection Orders Date: August 17, 2004 Author: Jim Regg Demonstration of Tubing/Casing Annulus Mechanical Integrity The mechanical integrity of an injection well must be demonstrated before injection begins, after a workover affecting mechanical integrity, and at least once every 4 years while actively injecting. For slurry injection wells, the tubing/casing annulus must be tested for mechanical integrity every 2 years. The MIT surface pressure must be 1500 psi or 0.25 psi/ft multiplied by the vertical depth, whichever is greater, must show stabilizing pressure and may not change more than 10% during a 30 minute period. Any alternate means of demonstrating mechanical integrity must be approved by the Commission. The Commission must be notified at least 24 hours in advance to enable a representative to witness pressure tests. Well Integrity Failure and Confinement The tubing, casing and packer of an injection well must demonstrate integrity during operation. The operator must immediately notify the Commission and submit a plan of corrective action on F onn 10-403 for Commission approval whenever any pressure communication, leakage or lack of injection zone isolation is indicated by injection rate, operating pressure observation, test, survey, or log. If there is no threat to freshwater, injection may continue until the Commission requires the well to be shut in or secured. A monthly report of daily tubing and casing annuli pressures and injection rates must be provided to the Commission for all injection wells indicating pressure communication or leakage. Administrative Actions Unless notice and public hearing is othernrise required, the Commission may administratively waive or amend any rule stated above as long as the change does not promote waste or jeopardize correlative rights, is based on sound engineering and geoscience principles, and will not result in fluid movement outside of the authorized injection zone. Standardized Language for Injection Orders Date: August 17, 2004 Author: Jim Regg Demonstration of Tubing/Casing Annulus Mechanical Integrity The mechanical integrity of an injection well must be demonstrated before injection begins, at least once every four years thereafter (except at least once every two years in the case of a slurry injection \vell), and before returnin,g a \veII to service followin,g aftet= a workover affecting mechanical integrity, and at kQ~;t on~e every 11 year~; while actively injecting. For slurry injection \vell~, the tubing/casing annulus tTIust be t~sted tor mechanical integrity every 2 years. Unless an alternate 111eans is approved by the COlllnlission. l11echanical integrity tTIust be demonstrated by a tubjn.g pressure test using a ~ MI:+-surface pressure ofnlust be 1500 psi or 0.25 psi/ft multiplied by the vertical depth, whichever is greater, that ffH:l-5t-shOW;i stabilizing pressure that doesand lnay not change more than 10Q!ð- percent during a 30 minute period. --Afl.y altenlate nlcans of dc¡nonstrating Inechanical integrity must be approved by the Cotnnlission. The Commission must be notified at least 24 hours in advance to enable a representative to witness pressure tests. Well Integrity Failure and Confinement Except as otherwise provided in this rule, +!he tubing, casing and packer of an injection well must demonstrate ¡naintain integrity during operation.\Vhenever any pressure conlffiunication, leakage or lack of injection zone isolation is indicated by injection rate, operating pressure observation, test, survey, log. or othcr evidence. t+he operator mus-t-shall immediately notify the Commission and submit a plan of corrective action on a Fonn 1. 0-403 for Commission approval.: whenever any pressure COlnlTIUnicatio117 leakage or lack of injection zone isolation is indicated by injection fatc, operating pressure observation, test, survey. or log. The operator shall shut in the well if so directed bv the COlnnlÌssion. The operator shall shut in the well vvithout awaitin,g a response Üorn the Comlnission if continued operation \vould be w1safe or would threaten contamination of freshwaterIf there is no threat to freshwater, injection tnay continue until the C01TIlnission requires the \\'í.:~ll to be shut in or secured. Until corrective action is successfully completed, À-ª monthly report of daily tubing and casing annuli pressures and injection rates must be provided to the Commission for all injection wells indicating pressure communication or leakage. Administrative Actions Unless notice and public hearing is otherwise required, the Commission may administratively waive or amend any rule stated above as long as the change does not promote waste or jeopardize correlative rights, is based on sound engineering and geoscience principles, and will not result in fluid movement outside of the authorized injection zone. '[Fwd: Re: [Fwd: AOGCC Proposed WI Lan!::, ~\ for Injectors]] ) ~9-~Ject: [Fwd: Re:. [Fwd: AOGCCProposed WI Language for Injectors]] ~r~rn:WirttonAubert<wint{)n__aubert@admin.state.*.us> D,ate:Thu28 Qct200409:48:53-0800. ....... . . . ,,:,,>::..,' .. .,,' ,"" '.'" ...... "'<,,"" '. ' " '>,,,' " .' " . : J.~f'.J9ªY.:~:~!þ~'19f#~~~(~:§~¥3S~~~:ffiþ,~~®~~~;§t~t~T~:1#~~··:,,···.···'··· This is part of the record for the Nov. 4 hearing. WGA -------- Original Message -------- Subject: Re: [Fwd: AOGCC Proposed WI Language for Injectors] Date: Thu, 28 Oct 2004 09:41:55 -0800 From: James Regg <jim regg@adrnin.state.ak.us> Organization: State of Alaska To: Winton Aubert <winton aubert@adrnin.state.ak.us> References: <41812422.8080604@admin.state.ak.us> These should be provided to Jody as part of public review record Jim Winton Aubert wrote: FYI. -------- Original Message -------- AOGCC Proposed WI Language for Tue, 19 Oct 2004 13:49:33 -0800 Engel, Harry R <EngeIHR@BP.com> winton aubert@admin.state.ak.us Injectors Subject: Date: From: To: Winton... Here are the comments we discussed. Harry *From: * NSU, ADW Well Integrity Engineer *Sent: * Friday, October 15, 2004 10:43 PM *To: * Rossberg, R Steven¡ Engel, Harry R¡ Cismoski, Doug A¡ NSU, ADW Well Operations Supervisor *Cc: * Mielke, Robert L.¡ Reeves, Donald F¡ Dube, Anna T¡ NSU, ADW Well Integrity Engineer *Subject: * AOGCC Proposed WI Language for Injectors Hi Guys. John McMullen sent this to us, it's an order proposed by the AOGCC to replace the well integrity related language in the current Area Injection Orders. Listed below are comments, not sure who is coordinating getting these in front of Winton/Jim. Overall, looks okay from an Operations perspective. We do have a few comments, but could live with the current proposed language. Note the proposed public hearing date is November 4. The following language does not reflect what the slope AOGCC inspectors are currently requiring us to do: "The mechanical integrity of an injection well must be demonstrated before injection begins, at least once every four years thereafter (except at least once every two years in the case of a slurry injection well), and * before* ** 1 of 3 10/28/2004 11 :09 AM [Fwd: Re: [Fwd: AOGCC Proposed \VI Lan,- ß for Injectors]] returnj_ng a well to service following a workover affecting mechanical integrity." After a workover, the slope AOGCC inspectors want the well warmed up and on stable injection, then we conduct the AOGCC witnessed MITIA. This language requires the AOGCC witnessed MITIA before starting injection, which we are doing on the rig after the tubing is run. Just trying to keep language consistent with the field practice. If "after" was substituted for "before", it would reflect current AOGCC practices. It would be helpful if the following language required reporting by the "next working day" rather than "immediately", due to weekends, holidays, etc. We like to confer with the APE and get a plan finalized, this may prevent us from doing all the investigating we like to do before talking with the AOGCC. "Whenever any pressure communication, leakage or lack of injection zone isolation is indicated by injection rate, operating pressure observation, test, survey, log, or other evidence, the operator shall___* immediately*_** notify the Commission" This section could use some help/wordsmithing: "A monthly report of daily tubing and casing annuli pressures and injection rates must be provided to the Commission for all injection wells indicating well integrity failure or lack of injection zone isolation." Report content requirements are clear, but it's a little unclear what triggers a well to be included on this monthly report. Is it wells that have been reported to the AOGCC, are currently on-line and are going through the Administrative Action process? A proposed re-write would be: "All active injection wells with well integrity failure or lack of injection zone isolation shall have the following information reported monthly to the Commission: daily tubing and casing annuli pressures, daily injection rates." Requirements for the period between when a well failure is reported and when an administrative action is approved are unclear. This document states "the operator shall immediately notify the Commission and submit a plan of corrective action on a Form 10-403". If we don't plan to do any corrective action, but to pursue an AA, does a 10-403 need to be submitted? The AOGCC has stated they don't consider an AA as "corrective action". Let me know if you have any questions. Joe -----Original Message----- From: Kleppin, Daryl J Sent: Wednesday, September 29, 2004 1:37 PM To: Townsend, Monte A¡ Digert, Scott A¡ Denis, John R (ANC) ¡ Miller, Mike E¡ McMullen, John C Subject: FW: Public Notices FYI -----Original Message----- From: Jody Colombie [ mailto:jody colombie@admin.state.ak.us Sent: Wednesday, September 29, 2004 1:01 PM Subject: Public Notices Please find the attached Notice and Attachment for the proposed amendment of underground injection orders and the Public Notice Happy Valley #10. Jody Colombie «Mechanical Integrity proposal. ZIP» «Mechanical Integrity of Wells Notice.doc» 2 of3 10/28/2004 11:09 AM #10 ~~I~iI I. E .' :! !J 1\ :? w' .... L..~ ~. r, '\, ! II It '. I I i rJ Ld) u \ ~1~~~~~ TONY KNOWLES, GOVERNOR ALASIiA OIL AND GAS CONSERVATION COMMISSION / 3001 PORCUPINE DRIVE ANCHORAGE. ALASKA 99501-3192 PHONE: (907) 279-1433 FAX: (907) 276-7542 June 23, 2000 Gary M. Osborne Endicott Subsurface Manager BP Exploration (Alaska) Inc. P.O. Box 196612 Anchorage, AI< 99519-6612 Re: Notification of Injection - Eider Oil Pool Dear Mr. Osborne: We received your notification of injection dated June 12, 2000. The commission acknowledges your intent to commence injection into the Eider Pool beginning on or about June 23, 2000. Your comment about water sampling is well taken and we anticipate you will get a sample, as soon as enough produced water is available. If there are any other questions or comments, please don't hesitate to call us. Sincerely, ÛL1Gtk-U~ Cammy Oechsli Taylor Commissioner File: AlO 19 - Eider Pool EiderN oti tìcationOflnj ection. doc ) ) BP EXPLORATION BP Exploration (Alaska) Inc. 900 East Benson Boulevard P.O. Box 196612 Anchorage, Alaska 99519-6612 (907) 561-5111 June 12, 2000 Robert N. Christenson, Chairman Alaska Oil and Gas Conservation Commission 3001 Porcupine Drive Anchorage, AK 99501-3192 Re: Notification of Injection Dear Mr. Christenson, BPXA would like to notify the commission of its intention to commence injection into the Eider Oil Pool (EOP) beginning as soon as June 23, 2000, in compliance with 20 MC 25.420(a). BPXA also requests permission to commence injection prior to obtaining a formation water sample, as was stipulated in Area Injection Order No. 19, Finding 20. No aquifer has been encountered in the EOP, and well 2-30A/E102 does not produce sufficient volumes offormation water to obtain an adequate sample for testing. The EOP contains similar hydrocarbons to the Endicott and Sag Delta North Pools. No compatibility problems have been encountered upon injection of produced water and seawater into Sag Delta North, which is a close Ivishak analogue to the EOP. BPXA will obtain a formation water sample as soon as operationally feasible, and will perform a formation water analysis at that time. If you have any questions, please feel free to contact me at 564-5361 or Graham Stewart at 564-5853. Sincerel)t, ¿ //_ /l ,/~;, t# ~~_.. Gary M. Osborne Endicott Subsurface Manager R-.""'·, ""'"'''' ,,"'C:;, , IL"" Û : " 'e, ~L::T{7' ~.~~.,' " " r '''''''''~ :1=<1,\ ~,\iY· ,~: ~;,,"'il · fí r~ 1 4 ?u"O'r1 ...,,), J L \.; Ala5~Œì O~¡ t~! (~a5 Gens. Commission "t'JinGhorage, #9 ) l ®:- -.-.. May 30,2000 Bob Crandall Alaska Oil and Gas Conservation Commission 3001 Porcupine Drive Anchorage, AK 99501-3192 Re: Eider: Sag River - Original Gas-In-Place Dear Bob, As discussed, please find detailed below the estimate of Original Gas-In-Place for the Sag River formation at Eider. The estimate for Original Gas-In-Place for the Sag River formation at Eider is 7BSCF. If you !~ye any questions, please feel free to contact Eric Ding at 564-5594 or me at 564-4036. s¡nCereaIY, r I' ) V "- Steven Ä. Fell Endicott - Business Team Leader REt'~it:::i\' iiF=O , . "",'" ~\"",i1' ~",,,.,, '. v ~\',."" ...0." 'i :~) 1 2000 A1asl\a Oií & Gas Cons. Commission A11Cì'1orage #8 metro@gci.net f I I II \ ¡ ~~ Page 1 ~ ~ I ~ ¡ ! J ¡ ì I I ~ ~ ~~ May 25,2000 Metro Court Reporting, Inc. 550 W. 7th Ave., Ste. 1650, Anchorage (907) 276-3876 Phone * * * * * * MR. ROBERT E. MINTZ Attorney General's Office: MS. CAMILLE OECHSLI TAYLOR MR. DAN SEAMOUNT Commissioners: APPEARANCES: Anchorage, Alaska May 25, 2000 9:10 o'clock a.m. TRANSCRIPT OF PROCEEDINGS EIDER POOL RULES HEARING. In Re: ALASKA OIL AND GAS CONSERVATION COMMISSION PUBLIC HEARING ) \ I( 14 15 16 17 18 19 20 21 22 23 24 25 ( I 13 t 1 \ 2 3 4 5 6 7 8 9 10 :( 11 12 AOGCC ~ " AOGCC May 25, 2000 Page 2 Page 4 f 1 1 PROCEEDINGS 1 COMMISSIONER SEAMOUNT: Commissioner Taylor, do ~ (, ~ 2 (On record - 9:10 a.m.) 2 you have any questions? I 3 COMMISSIONER SEAMOUNT: I would like to call 3 COMMISSIONER TAYLOR: Do you wish to be sworn f 4 this meeting or this hearing to order. The date is May 25, 4 as an expert? ¡ I 5 2000. It's approximately 9:10a.m. We're located at 3001 5 MR. OSBORNE: Absolutely, yes. ! ¡ 6 Porcupine Drive, Anchorage, Alaska, which is the offices of the 6 COMMISSIONER TAYLOR: If you - proceed then } 7 Alaska Oil and Gas Conservation Commission. 7 with your qualifications. , 8 I'll introduce the head table first. My name is Dan 8 MR. OSBORNE: I have a Bachelor of Science I 9 Seamount. I'm one of the commissioners holding the geologic 9 degree from Ohio Wesleyan University in Geology, a Master of 10 seat. To my left is Cammy Oechsli Taylor, the other 10 Science degree in Structural Geology from the University of ~ 11 commissioner at this meeting. Laura Ferro of Metro Court 11 Southern California, worked in the oil industry for 20 years. I 12 Reporting is making a transcript of the proceedings. If you 12 COMMISSIONER TAYLOR: I don't have any 13 want a copy of the transcript of the proceedings, you need to 13 objections. ir 14 get a hold of Metro Court Reporting. 14 COMMISSIONER SEAMOUNT: No objections. Please I 15 Purpose of this hearing is to consider an application 15 proceed. I 16 from British Petroleum Corporation to establish pool rules for 16 MR. OSBORNE: This hearing continuance has been ~ 17 the Eider Oil Pool, and to approve the area injection order 17 scheduled in accordance with statutes 20 MC 25.520 and 18 authorizing enhanced oil recovery operations in that pool. 18 20 MC 25.540, in order to consider evidence relevant to the 19 Previously, the meeting or the hearing was scheduled 19 establishment of pool rules and an area injection order for the 20 for April 6, 2000, and it was continued to today. Published 20 Eider Oil Pool. 21 notice for today's hearing was on April 15, 2000. 21 Our letters dated January 27, 2000, contain the formal 22 I guess we'll go through the ground rules first. These 22 applications both for the pool rules and area injection order 23 proceedings are held in accordance with Regulation 23 related to the implementation of a water flood in the Eider 24 20 AAC 25.540, which are regulations that govern public 24 Pool. Supplemental information was also provided to the AOGCC 25 hearings. It provides that we consider sworn testimony as well 25 in our letter dated February 17, 2000. Further, as a follow up ( Page 3 1 as unsworn statements. We give greater weight to sworn 2 testimony. Also, if wish to be considered an expert witness, 3 you must state qualifications, and the Commission will rule 4 whether to consider you as an expert. We'll hear from the 5 applicant first, and then we'll allow opportunity for other 6 interested parties to ask questions. The way to do that is -- 7 the way for those who want to ask questions is to write the 8 questions down, forward them to the head table, and then the 9 Commission will ask the question. 10 So, we'll start the hearing. I would like to invite 11 the applicant to introduce themselves and approach the 12 Commission. 13 MR. OSBORNE: My name is Gary Osborne. 14 COMMISSIONER SEAMOUNT: Are you giving sworn 15 testimony, Mr. Osborne? 16 MR. OSBORNE: Yes, sir. 17 COMMISSIONER SEAMOUNT: Please raise your right 18 19 20 21 22 23 24 25 hand. (Oath administered) MR. OSBORNE: I do. COMMISSIONER SEAMOUNT: Thank you. Please, could you give us your qualifications? MR. OSBORNE: As I said, my name is Gary Osborne. I'm a Subsurface Manager for Endicott on behalf of BP, the operator of the field. Page 5 1 to the initial hearing on April 6, 2000, BP clarified and 2 modified its position regarding the confidentiality of certain 3 data within the supporting testimony to the establishment of 4 pool rules. This position was discussed with Commission staff 5 at a meeting on April 13, 2000, and detailed in our letter of 6 April 17, 2000. 7 Specifically, BP requests the Commission to approve 8 several concepts which are considered necessary for the 9 development of Eider. These are, one, initiation of water 10 injection for enhanced oil recovery; two, surface commingling 11 of production from the Eider Pool with the Endicott and Sag 12 Delta North Pools; and, three, exemption to the gas-oil ratio 13 limit as set forth in 20 AAC 25.240(b). 14 BP is presenting testimony today in support of our 15 application. We will discuss our present understanding of the 16 Eider geological and reservoir description, reservoir 17 performance history, predictions of future performance, and the 18 plan of field development. Testimony related to the geological 19 description will be presented by Bill Rathke. Eric Ding will 20 present testimony related to the reservoir engineering and 21 development considerations of Eider. Each of the witnesses is 22 prepared to respond to questions concerning his testimony and 23 related exhibits. 24 Some of the materials to be presented today are 25 confidential, and we request that the public be excluded from f , I I ~.i<;¡~::"::¡¡~,,,,,¡'.(.;,'~;.¡i.:~':''¡;¡.H:,.i,I+.:o!~'¡~~(.!~o.ft.;:;.;¡,;,.o¡.~~~ý.':M,''':i.i.~~~~~~~~~Iidtt~~~~~i'i"'¡¡ili~~Wp~.I·_{W'kt.1>\~~mlmiiM'\iti\l'1~~¡Ht_~·~~f'~i'i'll:~~it:iN9~\oIN1'X"::W'1'\t (907) 276-3876 Phone Metro Court Reporting, Inc. 550 W. 7th Ave., Ste. 1650, Anchorage metro@gci.net 2 (Pages 2 to 5) AOGCC f May 25, 2000 Page 6 ~- Page 8 i¡ 'j ( 1 hearing this confidential information. As discussed with your 1 those enclosures or -- or re-designated them as non- ¡ ~ 2 staff, we have endeavored to keep this confidential information 2 confidential. With a few exceptions then several were still \ 3 to a minimum. The main reasons for requesting this information 3 held confidential. But the original application contains data I 4 be held confidential are issues related to adjacent leases; and 4 that is confidential. And in the interest of supplying the 5 secondly, precedent setting na- -- precedent setting of 5 Commission's needs as well as moving the application forward, ? 6 premature release of proprietary well information. For the 6 we did modify those original documents. ~ ~ ~ 7 avoidance of doubt, we are claiming confidentiality of this 7 COMMISSIONER TAYLOR: The exhibits. ì 8 data under AS 31.05.035. BP considers the documents could be 8 MR. OSBORNE: Yes. 9 released upon the date of release of the remaining Eider well 9 COMMISSIONER TAYLOR: Right. But my question ~ f 10 data in February 2001. 10 was aimed at the -- I don't know, eight or ten pages before 11 COMMISSIONER SEAMOUNT: Let's see, you said 11 that, all of the pages except for the rules themselves is 12 issues related to adjacent leases. And what were the other -- 12 stamped confidential. 13 you had two other reasons? 13 MR. OSBORNE: Right. 14 MR. OSBORNE: Two reasons in total, the first 14 COMMISSIONER TAYLOR: Are you substituting in 15 being the adjacent leases; and second, we'd rather not 15 the subsequent document that contains your testimony today as 16 establish a precedent for premature release of proprietary well 16 the application? 17 data. 17 (Side conversation) 18 COMMISSIONER SEAMOUNT: The well data? 18 MR. FELL: Can we go off the record for a 19 MR. OSBORNE: Right. 19 second? I 20 COMMISSIONER SEAMOUNT: And the well data 20 COMMISSIONER SEAMOUNT: Yes. 21 becomes public February of next year, 2001. 21 (Off record 9:20 a.m.) 22 MR. OSBORNE: Exactly. Correct. That 22 (On record 9:22 a.m.) I 23 concludes my statement. At this time, I would be happy to turn 23 COMMISSIONER SEAMOUNT: We're back on record. ~ ~ 24 it over to Bill Rathke who will testify regarding a geological 24 And we are discussing the application and the confidentiality ~ 25 description. 25 issues. ( Page 7 1 COMMISSIONER SEAMOUNT: Are you or is any of 2 the staff going to describe what it is you want to hold 3 confidential? 4 MR. OSBORNE: The..... 5 COMMISSIONER SEAMOUNT: Without divulging the 6 confidential information but..... 7 MR. OSBORNE: Right. 8 COMMISSIONER SEAMOUNT: Okay. 9 MR. OSBORNE: Right. 10 COMMISSIONER SEAMOUNT: Are you going to do 11 that now or are we going to do it as we go through? 12 MR. OSBORNE: Let's do it in the course of the 13 testimony. We have ordered the enclosures or attachments to 14 the application such that all of the non-proprietary enclosures 15 are up front, and the few that are confidential are together at 16 the end of the testimony. 17 COMMISSIONER SEAMOUNT: Okay. 18 COMMISSIONER TAYLOR: Mr. Osborne, I had a 19 question in the original application, the application itself as 20 well as the exhibits was confidential. I didn't see anything 21 that addressed that subsequently. 22 MR. OSBORNE: Right. The original application 23 contained material which we thought very strongly was 24 considered confidential. Subsequent to that original 25 application, then we had the original testimony, and modified ( Page 9 1 COMMISSIONER TAYLOR: And I guess for a 2 summary, as I understand it, Mr. Osborne, then the document 3 that was filed, and I'm not sure the exact date on that. Do 4 you have it in front of you? 5 COMMISSIONER SEAMOUNT: Which date is that? 6 COMMISSIONER TAYLOR: The latest one. 7 April 18. Right. Okay. That document is -- will be 8 substituted and treated as the application. That was what the 9 Commission prepared for the public to view excluding the pages 10 that were marked confidential. 11 MR. OSBORNE: Correct. 12 COMMISSIONER TAYLOR: And that will be 13 substituted in as the application for pool rules. 14 COMMISSIONER SEAMOUNT: So, the pages have to 15 be marked confidential to be considered confidential, is that 16 correct? 17 18 19 20 21 22 23 24 25 J i ì t * ~ I f ! ¡ I MR. OSBORNE: Right. COMMISSIONER SEAMOUNT: Okay. COMMISSIONER TAYLOR: And the application for the area injection order didn't have anything attached to that that was confidential so that didn't change. Okay. MR. OSBORNE: Okay. COMMISSIONER SEAMOUNT: Okay. MR. RATHKE: Good morning. My name is Bill Rathke, and I'll be presenting testimony on the geological ,~it~i~;'¡~W;Wi~~~~~"w:<\Un\ilï¡i'r'I'¡.i''#~'m(,~~a~''''.'«~~~~iiI:~~~l~'{\lII'''''ffi''''i''''&~''''·''I'¡WIl'.r;U]'I'IUW''::'''.':'·i1'*~.~'mmf'_'\I,'''A'i! "i~I"'_\~q_tfla:-~~JiI"i,..i(I~fÌÌIo'i't~\'i'!i~_r:"'¡¡'f"j·~'~¡~. (907) 276-3876 Phone Metro Court Reporting, Inc. 550 W. 7th Ave., Ste. 1650, Anchorage metro@gci.net 3 (Pages 6 to 9) AOGCC ~ { May 25, 2000 Page 10 Page I 2 { 1 description of the Eider Field on behalf of BP Exploration. 1 formation test data. The log and RFT data were used to 2 I'm the BP Geophysicist responsible for Endicott and related 2 determine the petra physical and reservoir properties. 3 areas, I received a Bachelor of Arts degree in Geological 3 Structural control and fault identification are based on the 4 Sciences from Dartmouth College, and a Master of Science in 4 interpretation of the Endicott MPI 3D seismic survey. The 5 Structural Geology from Cornell University. I've worked as a 5 seismic dataset is of generally fair to good quality in the 6 geophysicist in the oil industry for about 22 years. The last 6 area of the Eider Field. The major bounding faults are clearly 7 19 years have been with BP and predecessor companies in several 7 resolved and are considered to be accurately located. 8 locations around the world. 8 The hydrocarbons in the Eider Field are trapped in 9 COMMISSIONER SEAMOUNT: So, I take it you are 9 sandstones and conglomerates of the Ivishak Formation, 10 requesting expert witness status? 10 correlative to Prudhoe Bay Ivishak Zone 2, and to Sag Delta 11 MR. RATHKE: Yes. 11 North Ivishak Formation. Exhibit B shown here, the Eider type 12 COMMISSIONER SEAMOUNT: And are you giving 12 log, illustrates the formation and the zonal nomenclature. The 13 sworn testimony? 13 formation has been subdivided into an Upper Sand, a Middle 14 MR. RATHKE: Yes, sir. 14 Shale containing a sandstone unit, and a Lower Sand, very 15 COMMISSIONER SEAMOUNT: Okay. We'll start with 15 similar to the Sag Delta North Field. 16 please raise your right hand. 16 Exhibit C summarizes the dominant lithologies and the 17 (Oath administered) 17 interpretative depositional environments of the reservoir 18 MR. RATHKE: I do. 18 section. The depositional environments are expected to be 19 COMMISSIONER SEAMOUNT: Commissioner Taylor, do 19 analogous to Sag Delta North based on log and cuttings data. 20 you have any questions concerning Mr. Rathke's qualifications? 20 And overall regressive sequence is interpreted, ranging from 21 COMMISSIONER TAYLOR: No, I don't. And I have 21 upper shoreface or marine influenced fluvial and distributary 22 no objection to his being qualified as an expert witness. 22 sands in the Lower Sand Unit, floodplain or bayfill in the 23 COMMISSIONER SEAMOUNT: Okay. Please proceed. 23 middle shale, to a predominantly fluvial environment in the 24 MR. RATHKE: Okay. Can we get this to work? 24 Upper Sand. Core data was not obtained in any of the Eider 25 COMMISSIONER SEAMOUNT: Yes. We were working 25 wells. ( Page 11 Page 13 1 on that earlier. 1 Individual well averages and averages of well porosity, 2 (Off record comments) 2 net to gross, and one minus Sw were multiplied to acre-feet 3 MR. RATHKE: Exhibit A shown here is a location 3 divided by formation volume factor of 1.36 to estimate oil in 4 map for the Eider Field, showing the extent of the exploitable 4 place. The acre-feet calculations were based on isopachs of 5 hydrocarbon-bearing reservoir, the bounding faults, and the 5 net pay of the light oil column using the fluid contact data 6 existing wells used for field delineation. Also shown are the 6 from the wells. The total original oil in place is 13.2 7 Eider Field's relationship to Endicott and Sag Delta North 7 million barrels. More than half of this oil in place is 8 Fields, and the participation area outlined for which the field 8 contained in the Lower Sand Unit. A significant gas cap also 9 rules for Eider reservoir would apply. 9 exists with an estimated volume of 33 billion standard cubic 10 The Eider Field was discovered in 1998, and underlies 10 feet originally in place. 11 state leases located approximately 1-1/2 miles offshore. The 11 And that concludes my testimony on the subsurface 12 Eider Field is a fault controller anticline structure, 12 description of Eider Field. If there are any questions, I'd be 13 truncated at the top by the Lower Cretaceous unconformity, and 13 pleased to answer them now or later. 14 it contains producible oil below a gas cap within the Triassic 14 COMMISSIONER SEAMOUNT: I have no questions. 15 Ivishak Formation. These hydrocarbon bearing zones cover an 15 It's a good presentation. Any questions from the audience 16 area of approximately 300 acres. 16 we'll take in writing and ask them later. 17 The delineation of the Eider reservoir is based on two 17 MR. DING: My name is Eric Ding. I'd like to 18 completed wells, and those are the 2-56A Eider 1, and the 2-30A 18 give sworn testimony and be considered an expert witness. 19 Eider 2, and five additional sidetracks or plugbacks of these 19 COMMISSIONER SEAMOUNT: Okay. I guess we'll 20 wells, the 2-56 Eider 1, 2-56A Plugback 1, and 2 -- the 2-38 20 start with the oath. Please raise your right hand. 21 Plugback 1, and 2-30A Plugback 2. As shown in this Exhibit A, 21 (Oath administered) 22 these seven reservoir penetrations provide a wide distribution 22 MR. DING: I do. 23 of control points encompassing all three of the major fault 23 COMMISSIONER SEAMOUNT: Thank you. I guess, 24 blocks of the field. The data from these wells consists 24 Mr. Ding, you can start by giving us your qualifications. 25 primarily of logging while drilling log data, and repeat 25 MR. DING: Okay. My name is Eric Ding. I ( ¡ ~ ì 1 ij ~ I I I r I , t I i ~liA'M¡iI"",':;t'~~\~;-;-¡'i>'¡l'iWli;''''~~~~~~~~~l¡¡~¡'¡'~''''WiffI¡~'vi'iì~l'&m~~~~~~~~~"':':.·-(i_ä:,<q~~ffW'Ii\IiiI~'h'W:'":.'JU""'''n_:_~~~_i'Wl"''''~''Ì~*,,~~~I::~'n.~L~,t'__' VIJJI \(¡!!" ':IIIf'... .,.. (907) 276-3876 Phone Metro Court Reporting, Inc. 550 W. 7th Ave., Ste. 1650, Anchorage metro@gci.net 4 (Pages 10 to 13) AOGCC { May 25, 2000 Page I 4 Page 1 6 ~ ~ ( 1 received a Bachelors of Science in Chemical Engineering from 1 Well 2-56A was brought on production on June 1, 1998, at 3,000 i 2 the University of Oklahoma. and a Masters of Science in 2 stock tank barrels of oil per day. After two months of near ~ ~ 3 Chemical Engineering from the University of Wisconsin-Madison. 3 solution GaR production. the GOR began to steadily increase. ì 4 I've worked for BP since January of '97 as a Petroleum and a 4 Well 2-30A was brought on production on January 25, 1999, at ~ 5 Reservoir Engineer. I've been responsible for the reservoir 5 80,500 stock tank barrels of oil per day, solution GOR and only t 6 engineering for the Eider Field since July of 1998, and am 6 trace water. The GOR began to rise quickly reaching 5,800 j' ~ 7 intimately familiar with the information to be presented. 7 standard cubic feet per stock tank barrel by the end of I 8 COMMISSIONER TAYLOR: I don't have any 8 February. When 2-30A was shut in at the end of the 128 test i 9 questions and I have no objection. 9 period, it was tested at 2,365 barrels of oil per day, 9,000 ~ 10 COMMISSIONER SEAMOUNT: Okay. Please proceed. 10 GOR, two percent water cut. Well 2-56A was produced I 11 MR. DING: Okay. My testimony will consist of 11 intermittently throughout this period and was shut in on 12 an overview of the petrophysical properties; an overview of the 12 September 30, 1999, for reservoir management. , 13 past reservoir performance; a review of the reservoir studies 13 The initial pressure of the field was 4,635 psia at the I 14 describing depletion mechanisms, discussion of performance 14 GOC depth of 9,700 TVD subsea, which is therefore the bubble t 15 predictions and surveillance plans and other development 15 point pressure. The measured field pressure was 3,856 psia in 16 issues. 16 November of 1999, shortly after the field was shut in. Good I 17 I would like to start with the petrophysical 17 pressure communication has been seen between the two wells, as 18 properties. In the absence of core data, porosity was 18 shown by static pressure and RFT data. 19 calculated from open hole logs, and permeability was estimated 19 To move on to the development plans. A full field 20 based on the permeability-porosity functions that have been 20 reservoir simulation model was developed to study the ~ 21 derived from Prudhoe Bay Zone 2 Ivishak core data. Exhibit B 21 performance and to develop a depletion plan for the field to ~ I 22 summarizes the average zonal petraphysical properties. The 22 maximize economic recovery. The VIP-Executive reservoir 23 average porosity is 21 percent, and the average permeability is 23 simulator was used to perform the study. Reservoir performance I 24 134 mD in the oil column. The permeability varies by zone from 24 was history matched to the available production data. Exhibit 25 approximately 30 mD in the Lower Sand to 300 mD in the Middle 25 E shows similar generated rates versus the actual field data. ~ ( i Page 15 Page 17 I 1 Shale Sands and the Upper Sand. The Kv/Kh ratio is expected to 1 The original oil in place estimate has been reduced to 13.2 I 2 be approximately 0.1 for all sands. The net pay at each well 2 million stock tank barrels of oil from the original estimate of 3 is estimated using a shale volume cutoff of 0.4. The average 3 18 million. The history match indicates the presence of fewer 4 net to gross ratio is 0.72. 4 hydrocarbons than previously thought, resulting in a reduction ì 5 The water saturations were determined from open hole 5 of the hydrocarbon pore volume. I 6 logs. The average water saturation is calculated to be 36 6 Predictive runs were then undertaken to determine the 7 percent -- excuse me -- 36 percent using the Archie model. 7 production plan which would maximize the economic recovery. 8 Relative permeability data is not available for Eider. 8 Primary depletion, water injection, and gas injection were the 9 Oil water and gas oil relative permeability data developed for 9 options investigated in depth. Voidage replacement with water ! 10 the Prudhoe Bay Zone 2 was used for the Ivishak reservoir 10 injection is considered to be the most beneficial and efficient 11 modeling studies. Initial water saturation used was 36 11 approach to enhance recovery, producing over five million 12 percent, with a residual oil to water of 20 percent. The 12 barrels within the next 10 years. Water injection is predicted 13 absolute residual oil to gas was three percent, with an 13 to suppress the free gas production preserving reservoir energy 14 effective residual to gas over the time frame investigated of 14 and preventing the field from being shut in due to 15 25 percent. 15 un competitive GOR. 16 Surface separator samples were collected from 2-56A 16 BP requests that waterflood implementation be 17 Eider 1, and laboratory analysis yielded an initial solution 17 authorized within the pool rules based on the recovery benefits 18 GOR of 769 standard cubic feet per barrel at the saturated 18 to be gained, and that an area injection order be issued. 19 bubble point of 4,635 psia. API gravity at the 2-56A Eider 1 19 Reservoir simulation shows an expected incremental increase and 20 samples was measured at 23.1 to 23.8 degrees similar to 20 ultimate recovery of 1.5 to three million barrels of oil as a 21 Endicott Kekiktuk crude. 21 result of the proposed water injection into 2-56A. 22 Now I will discuss the production history. Two wells 22 Recovery from primary depletion is estimated at 15 23 have been drilled to date. 2-56A Eider 1, and 2-30A Eider 2. 23 percent, while recovery with water injection is estimated at 27 24 Both produce from the Lower Sand Unit only. The production 24 to 38 percent, an incremental recovery of 12 to 23 percent. 25 history to date from the Eider reservoir is shown on Exhibit D. 25 Initial production will begin upon implementation of ( ;,.¡.,I,':...'\>.....'.·,'~"':'.'¡;i...NI,..~..I.¡~~~,'*~;;~~~,~~~~~~'fi,:·:1.¡·IJ'J'.~,~,fl~'Ìfti'~'i'ii~~iili)i\\¥.i«ffii·¡¡:ty'l'}lr~~~~f,,·~m«it'.ii'tflo!\\,1"it¡\Ft~:~..\..~:~_fo'¡.¿,""-*"-~-"l¡¡,'\\.ii.~W;U(~~~~~;:~~$;~~>"fuii'l'ii:i"~iii~.,,;t¡'\\Ihi~.__.._ (907) 276-3876 Phone Metro Court Reporting, Inc. 550 W. 7th Ave., Ste. 1650, Anchorage metro@gci.net 5 (Pages 14 to 17) AOGCC f Page 1 S (- 1 the waterflood, with an expected initial rate of 1,500 barrels 2 of oil per day. Maximum water injection rates are expected to 3 range from 15,000 to 20,000 barrels of water per day. Water 4 injection will then match voidage, rather than attempting to 5 repressurize the reservoir to original pressures. Simulation 6 shows little reservoir benefit to repressurization to the 7 bubble point, but significant potential downside due to 8 resaturation of the gas cap. 9 The proposed strategy will maximize sweep in the Lower 10 Sand Unit, which holds the largest single amount of reserves in 11 the reservoir. Because this sand has the lowest permeability, 12 the high angle section in Eider 2 will enable reserves to be 13 maximized in this sand body. Once the Lower Sand reserves have 14 been maximized, the other units will be considered and accessed 15 as appropriate. The higher permeability of these sands makes 16 them more susceptible to early gas and water breakthrough, and 17 accessing them later will avoid putting the reserves in the 18 Lower Sand at risk. This two stage strategy will maximize the 19 reserves in the overall reservoir. 20 The potential ultimate recovery impacts of additional 21 drilling within the delineated portion of the reservoir are 22 seen to be small, and no further penetrations within the Eider 23 Pool are foreseen at this time. The added reserves of a third 24 well are predicted at less than two million barrels maximum, 25 with a P50 estimate of 0.8 million barrels. This will be ( Page 19 1 reviewed as the pool matures and more information is gathered. 2 At this time it is believed that 160 acre spacing is sufficient 3 for the two well field development. 4 BP requests, as a result of the pressure maintenance 5 project proposed, an exemption to the gas-oil ratio limit as 6 set forth in 20 AAC 25.240(b). While BP expects the GOR to 7 eventually be suppressed by water injection, some formation gas 8 production is expected to occur. Voidage replacement of the 9 produced fluids with water injection will be sufficient to 10 maintain reservoir energy. 11 BP requests that one pressure survey be required in the 12 field per year rather than one from each producing government 13 section. Well 2-30A Eider 2 produces from two different 14 government sections, but the requirement to obtain isolated 15 statics from each producing interval in the well would present 16 significant risk to operations. Therefore, BP proposes a 17 minimum of one survey in the field each year for reservoir 18 management. 19 At this time, I would like to go to a confidential 20 session. The data to be discussed is proprietary data and may 21 be released when all well data has become public. The reasons 22 for keeping Exhibits F through I confidential have been 23 discussed with the Commission staff and are outlined in the 24 letter dated April 17th. 25 COMMISSIONER SEAMOUNT: The reasons for keeping ( May 25, 2000 Page 20 them confidential have been discussed with our staff. Also, it was mentioned earlier the two reasons were issues related to adjacent leases. These are leases that are not held by production, is that correct? MR. DING: That are not held by production or solely by BP. COMMISSIONER SEAMOUNT: Right. So that they do have a term on them. And then the other reason was for well data, is that correct? MR. DING: Yes. COMMISSIONER SEAMOUNT: Do you have any ~ ~ ~ ì I 1 2 3 4 5 6 7 8 9 10 11 12 questions, Commissioner Taylor? 13 COMMISSIONER TAYLOR: I don't have any 14 questions. Perhaps..... 15 MR. MINTZ: Could I ask a question? By what- 16 you mean that this data includes or refers to well data that's 17 of the sort that's required to be filed by the - with the 18 Commission and is still within the confidentiality period? 19 MR. DING: Yes. 20 MR. MINTZ: I also suggest that the Commission 21 inquire into whether the applicant wishes everyone not 22 associated with the applicant to be excluded or whether they 23 have any objection to some DNR or I don't know whether there's 24 another working interest owner here. 25 MR. FELL: We -- can I speak off the record? ~ ~ \ I~· l ~ ~ ~ â.'. ~ ; h Page 21 1 (Indiscernible) On the record, we would be happy for the DNR 2 to be present at this confidential session. 3 (Side conversation) 4 COMMISSIONER SEAMOUNT: Could you peruse the 5 room and tell us who is allowed to stay and who isn't? 6 MS. NELSON: I think I'm the only one who needs 7 to leave. Will you guys holler at me when you go off 8 confidential? 9 MR. FELL: Of course. 10 MS. NELSON: I'll wait out here. 11 (9:45 a.m.) 12 (Executive Session Portion) 13 (9:52 a.m.) 14 COMMISSIONER SEAMOUNT: We'll invite the public 15 back in. Mr. Ding, could you describe what you just..... 16 MR. DING: I actually do have more testimony 17 but that that's okay. 18 COMMISSIONER SEAMOUNT: Well, we're coming out 19 of executive..... 20 MR. DING: Go ahead, I'm sorry. 21 COMMISSIONER SEAMOUNT: .....session so we need 22 to describe to the public what we just - what you just talked 23 about without divulging any confidential information, please. 24 MR. DING: Okay. In the confidential session, 25 I presented more details on the internal structure of the Eider ì I , ì f ·~~~~¡il':~~M.w<~~¡;,;;;....;:>ti'~Ý;-'h'Y"'.~t.fÍl'~~;iI¡iIi~~fk~~~~;i..~~~&~~~~\'\it:"If_'~fi~~'1"XY~~'¡';¡';f~~W'ffi'"'t~r~í¢¡(I1~lf\iII~t<fIor.~'\t\W.r¡¡:w¡e"t:\1'~~r·'-w.Wi.,.",~œ,~JtI~" . (907) 276-3876 Phone Metro Court Reporting, Inc. 550 W. 7th Ave., Ste. 1650, Anchorage metro@gci.net 6 (Pages 18 to 21) AOGCC f ;~( Page 22 ( Field, presented some more data on the history match, particularly some detailed pressure data, a map of the internal faulting structure of the reservoir, and then the predictive profiles for the various depletion mechanisms that were shown, demonstrating the optimal depletion strategy of water injection. 1 2 3 4 5 6 7 COMMISSIONER SEAMOUNT: Thank you, Mr. Ding. 8 MR. DING: At this point, I'd like to discuss 9 well planning. The Eider casing and cementing requirements are 10 identical to the Endicott Pool requirements. Wells drilled to 11 the reservoir interval encounter the exact same formations 12 prior to entering the pay zone as the Endicott wells. It is 13 recommended that Endicott Conservation Order Number 275, Rule 14 4, or similar, be adopted for the casing and cementing 15 requirements, with modifications as shown in Exhibit J. 16 I was going to say that I just -- Order Number 275, 17 Rule 4. Exhibit K shows a typical well configuration for 18 Eider. This would be Eider 1 completion diagram. 19 Are you finished? I'm sorry. 20 COMMISSIONER SEAMOUNT: That was fine. 21 MR. DING: For facilities, the development and 22 continued production of the Eider Pool is dependent upon 23 utilizing the existing production and injection facilities of 24 the Endicott Field. This requires commingling of Eider and 25 Endicott crude prior to processing and metering. Eider ( Page 23 ,( I . 1 production will be allocated on the basis of test separator 2 measurements of oil and gas. Water volumes will be determined 3 by measurement with an AGAR watercut meter. Each Eider well 4 will be tested at least once monthly for a minimum of four 5 hours at a stabilized flow rate. 6 This concludes my portion of the testimony. 7 COMMISSIONER SEAMOUNT: Thank you, Mr. Ding. 8 MR. OSBORNE: This concludes our technical 9 presentation. We'd be happy to address any questions that have 10 come up over the course of the testimony, and for your 11 convenience and consideration, we've assembled some proposed 12 pool rules for the Eider Field. Thank you. 13 COMMISSIONER SEAMOUNT: At this time I would 14 like to ask first of all our technical staff, do -- was there 15 need to take a recess, a short recess? Okay. We would like to 16 take a short recess, and we'll be back in 10 minutes. 17 (Off record 9:56 a.m.) 18 (On record 10:12 a.m.) 19 COMMISSIONER SEAMOUNT: We're back in session. 20 There were four questions that we have, three of which I will 21 ask, one Cammy will ask. 22 The first question is on your type log -- I have to 23 find it first so I'm not talking from memory. And also want to 24 make sure it was not one of the ones marked confidential. 25 Okay. The type log shows a gas saturation of 80 percent in the May 25, 2000 Sag River formation. Was that included in your 33 BCF reserves? Page 24 1 ;1 1 ~ ~ ~ J I :¡. j ! ¡ I f ¡ 1 2 3 MR. DING: No, it wasn't. 4 COMMISSIONER SEAMOUNT: Do you know what the 5 reserves are in the Sag River? Have you done any work on that? 6 MR. RATHKE: Our assumption from the log 7 response is that it's low porosity and very tight, which would 8 suggest that there is some in place but there's very little in 9 the way of reserves. 10 COMMISSIONER SEAMOUNT: Okay. Let's see, so 11 it's got..... 12 MR. RATHKE: And we believe it would be 13 entirely gas. 14 COMMISSIONER SEAMOUNT: It's got pretty good 15 porosity but low permeability. 16 MR. RATHKE: Uh-hum. 17 COMMISSIONER SEAMOUNT: Do you believe it's in 18 vertical communication with the Ivishak? 19 MR. RATHKE: Unknown. 20 MR. DING: It's unknown but unlikely 21 considering that we don't see it in Prudhoe Bay or any of the 22 other areas where we (indiscernible). 23 COMMISSIONER SEAMOUNT: Okay. Did that answer 24 your question? Okay. Second question, what type of pressure 25 tests are planned? ~ ~ Page 25 MR. DING: Static pressure measurements, be they're using memory gauges on a slip line unit or electric line. 1 2 3 4 5 6 7 8 9 COMMISSIONER SEAMOUNT: The third question 10 concerns allocation. Do you guys have a problem measuring 11 production two times a month? 12 MR. DING: Considering the large number of 13 wells on the main production island, the Eider wells have to 14 use the same testing facilities as the rest of the -- two times 15 a month, it starts to interfere with the standard surveillance 16 for the rest -- standard well testing for the rest of the 17 island for Endicott Field, and makes it more difficult to 18 properly allocate and -- not properly allocate, excuse me, but 19 properly prioritize the most competitive wells for Endicott 20 Field. It is possible but we prefer not to. 21 COMMISSIONER SEAMOUNT: Okay. 22 COURT REPORTER: Excuse me. Can you have them 23 use the mike? 24 COMMISSIONER SEAMOUNT: I'm sorry. 25 (Off record comments) COMMISSIONER SEAMOUNT: Okay. MR. CRANDALL: How would that be (indiscernible) or static? MR. DING: They would be static. That's the I I I ~ ~ I ~ \ ~ ~ r plan. ~~":·~4i",~~,~~~~WJt~:IillI¡,[~··'~l.t~«~~¥iìi;ì:i;t*¿'¡á:~~oi~tI\i"''..iW~~~~~~~,''')¡~I~~Nhfl'~~1iffY':'''~ '(""_'W¡t¡11.'I~""'i~M~~'iŒ':ff'Iii~i'W¡I¡Wfril!'WlfÍ""íi~l="·_'i"~:~~~ ~W'·_1'~·"~~·'it"·. . (907) 276-3876 Phone Metro Court Reporting, Inc. 550 W. 7th Ave., Ste. 1650, Anchorage metro@gci.net 7 (Pages 22 to 25) AOGCC ~ it May 25, 2000 Page 26 Page 28 f: 1 MR. DUKES: I'll speak real loud. I've also 1 to exclude it? ¡ 2 noticed that we've had that exception in the past in some of 2 (Side conversation) ~ 3 the fields. 3 MR. FELL: I'm not sure that we see anything j ¡ 4 COMMISSIONER SEAMOUNT: Which exception is 4 advantageous to adding it in there. I mean I don't see any ! ¡ ¡ 5 that? 5 reason..... ¡ 6 MR. DUKES: Testing ones. Yeah. 6 MR. CRANDALL: It's just that a pool is - when r 7 COMMISSIONER SEAMOUNT: Fourth question, 7 you describe pool, you're supposed to identify all the ~ ¡ 8 Commissioner? 8 hydrocarbons that are common to it. And if it's at least as I I- 9 COMMISSIONER TAYLOR: And I'm not sure if I 9 likely that the Sag River's in pressure communication with the t 10 should address this to you, Mr. Dukes, or to Mr. Osborne. But 10 Ivishak (indiscernible) and hydrocarbons exist in the Sag River f 11 with respect to the confidential material that's been filed 11 (indiscernible ). ~ 12 with these two applications, is there anything that cannot be 12 MR. DUKES: Would you describe all the pools i 13 released when the well file is ultimately released? 13 that are common to it or just those pools that are producible? I 14 MR. DUKES: Can we talk about that for a 14 MR. CRANDALL: Common to it. It's what would 15 moment? 15 be considered in evaluating pressure maintenance. 16 COMMISSIONER TAYLOR: We just want to make sure 16 MR. DUKES: But I would have thought it would ~ 17 that we understand exactly what treatment to give. 17 have only included those pools that you think are going to be 18 (Side conversation) 18 producible as opposed to every pool. 19 MR. DUKE: There's nothing that cannot be 19 MR. CRANDALL: No, that's not how you do it. 20 released in February 2001. 20 MR. DUKES: Do you have a definition or 21 COMMISSIONER TAYLOR: Which well is it that's 21 something you mean that you're referring to? 22 still in confidential status, is it 1 or 2? 22 MR. CRANDALL: Yeah, we do. It's in our 23 UNIDENTIFIED MALE SPEAKER: The 2 well. 23 statutes. 24 COMMISSIONER TAYLOR: The 2 well. So, we can 24 COMMISSIONER SEAMOUNT: I guess if we're going 25 tie the release of it to the 2 well. 25 to continue this conversation, I think we -- in deference to ( Page 27 Page 29 I 1 MR. DUKE: Yes, that would be fine. the court reporter we need to be using the microphone here so ~ 1 2 COMMISSIONER TAYLOR: Thank you. 2 why don't you come on up, Bob. 3 COMMISSIONER SEAMOUNT: Are there any other 3 MR. CRANDALL: Actually, I've got to get the 4 issues concerning this hearing? 4 statutes. 5 MR. FELL: I have a question. 5 COMMISSIONER TAYLOR: I have a copy of it right 6 COMMISSIONER SEAMOUNT: Okay. Go ahead. 6 here. 7 MR. FELL: Off the record, I have a question. 7 MR. CRANDALL: Oh, do you? Okay. 8 MR. MINTZ: Actually -- excuse me. 8 COMMISSIONER TAYLOR: Pull out all my 9 MR. FELL: (Indiscernible) 9 extraneous pieces of paper. Right there. 10 MR. MINTZ: I should have spoken up earlier but 10 MR. CRANDALL: Okay. Pool means an underground 11 we really can't go off the record. If you want to have a 11 reservoir..... 12 private conversation, that's fine. 12 MR. MINTZ: Bob. 13 MR. FELL: Okay. 13 MR. CRANDALL: Pool means an underground 14 MR. CRANDALL: I have a technical question. 14 reservoir containing or appearing to contain a common I 15 Bob Crandall with the Commission. 15 accumulation of oil or gas. Each zone of a general structure, 16 COMMISSIONER TAYLOR: Can you hear me or do you 16 which is completely separated from any other zone in the I 17 want him to put the mike on? 17 structure, is covered in the term, pool. Basically, what that 18 COURT REPORTER: Speak up. 18 means is if they're in pressure communication, they're in the ~ 19 MR. CRANDALL: Anyway, I'm just kind of 19 same pool. And I think from what we talked about today, while , I 20 curious. Is there any reason why we wouldn't want to include 20 that issue is indeterminate, that at least it's likely that 1 21 the Sag River in this pool? I'll take it that the issue of 21 they are as they aren't. So, unless there's a reason to not do i 22 vertical communication is indeterminate at this point. And at 22 it..... 23 Prudhoe the Sag River is included in the Prudhoe Pool, the 23 (Side conversation) 24 reason for that is because they have common fluid contact. 24 MR. MINTZ: If I can make a suggestion. I mean 25 The -- so, I'm just curious, is there any reason why you want 25 if the applicant wanted additional time to consider that ( ;~~~~·~~~M~~~~M.o!$~~~~~~¡~~$î.i~M~<Mf"i\.Ó~r¡\iliffifiit"tff''¡f~'~~m·5'\.tI'WM1I\1\'Y~·PSI11;'l:ww>w~nm··"W'd"'r~":":T~~I'~MW''i'~,f'&'·''iI.j'll!\~~''1: J.......~!A>¡¥:,,_.~~~,. .,.~ , (907) 276-3876 Phone Metro Court Reporting, Inc. 550 W. 7th Ave., Ste. 1650, Anchorage metro@gci.net 8 (Pages 26 to 29) (" ( J AOGCC i{ \ May 25, 2000 Page 30 ~ l ¡ ¡ ~ ! ¡ ! J ~ J ~ ~ 1 question, the Commission could accept a written supplementary 2 response after the hearing. 3 COMMISSIONER SEAMOUNT: It doesn't have to be 4 decided right now, is that what you're saying? 5 MR. MINTZ: Right. 6 COMMISSIONER SEAMOUNT: Okay. 7 (Side conversation) 8 MR. FELL: We don't need to submit as 9 supplemental information. We're willing to have the Sag 10 incorporated into the pool. Is that okay, Bob? 11 MR. CRANDALL: Uh-hum. 12 MR. FELL: Yeah. Okay. 13 MR. CRANDALL: There is one additional thing 14 then. We'll need a estimate of the volume of gas, so estimate 15 the full volume of gas of the pool. And you can supply that to 16 us later. 17 18 19 20 21 22 23 24 25 MR. RATHKE: Okay. MR. MINTZ: If the applicant could suggest a date by which that could be supplied? Then the Commission could establish the closing date for the record. (Side conversation) MR. FELL: We'll submit the estimate by the end of next week, which would be the 2nd of June. COMMISSIONER SEAMOUNT: Thank you, Mr. Fell. Okay. We are -- I think it's appropriate to go ahead and close Page 31 1 the meeting. I thank you all for coming to the second meeting. 2 You gave a very good presentation. Thanks again. 3 (Off record 10:24 a.m.) 4 END OF PROCEEDINGS 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 ',;I,.t~¡jI,.t,~'¡'¡¡*"~~~~'''''~-i#i'¡IIi''')¡~im'\1j~ij··f,i¡~~'M,mihi~li~i'I~~'Wü!iW~WI~'fi:¡;¡·'~~~~1W~~~!'~ffl-.'r ...._.1 (907) 276-3876 Phone Metro Court Reporting, Inc. 550 W. 7th Ave., Ste. 1650, Anchorage metro@gci.net 9 (Pages 30 to 31) AOGCC { ( May 25, 2000 I AAC 2:24 :17,1~5:1j 30:25 billion 13:9 communication 16: 17 29:3,7,10,1330:11,13 ! 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5:36:8,10,17,18 acre 19:2 assumption 24:6 18:7 confidential 5 :25 6: 1,2 6:20 8:3 11 :24,25 acres 11: 16 attached 9:20 6:47:3,6,15,20,248:2 12:1,1,19,2413:5 I acre-feet 13:2,4 attachments 7: 13 -----C 8:3,4,129:10,15,15 14:18,21 15:8,9 16:18 actual 16:25 attempting 18:4 C 2:1 12:16 9:21 19:19,2220:1 16:24,25 19:20,20,21 i actually 21:1627:8 Attorney 1: 12 calculated 14: 19 15:6 21 :2,8,23,24 23:24 20:9,16,1622:1,2 29:3 audience 13: 15 calculations 13:4 26:11,22 dataset 12:5 added 18:23 authorized 17: 17 California 4: 11 confidentiality 5:2 6:7 date 2:46:99:3,5 15:23 adding 28:4 authorizing 2:18 call 2:3 8:2420:18 15:25 30: 19,20 additional 11 : 19 18:20 available 15:8 16:24 CAMILLE 1:10 configuration 22: 17 dated 4:21,25 19:24 29:25 30: 13 average 14:22,23,23 Cammy 2:1023:21 conglomerates 12:9 day 16:2,5,9 18:2,3 address 23:926: 10 15:3,6 cap 11:14 13:8 18:8 conservation 1: 1 2:7 decided 30:4 addressed 7:21 averages 13: 1, 1 casing 22:9,14 22:13 deference 28:25 adjacent 6:4,12,15 20:3 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INTRODUCTION (Gary Osborne) My name is Gary Osborne. I am the Subsurface Manager for Endicott for BP Exploration (Alaska) Inc., the operator of the Endicott field. This hearing continuance has been scheduled in accordance with statutes 20 MC 25.520 and 20 MC 25.540 in order to consider evidence relevant to the establishment of pool rules and an area injection order for the Eider Oil Pool. Our letters dated January 27,2000 contained the formal applications both for the pool rules and area injection order, related to the implementation of a waterflood in the Eider Pool. Supplemental information was also provided to the AOGCC in our letter dated February 17, 2000. Further, as a follow up to the initial hearing on April 6, 2000 , BP clarified and modified its position regarding the confidentiality of certain data within the supporting testimony to the establishment of pool rules. This position was discussed with Commission staff at a meeting on April 13, 2000 and detailed in our letter of April 17,2000. Specifically, BP requests the Commission to approve several concepts which are considered necessary for the development of Eider. These are: 1. Initiation of water injection for enhanced oil recovery. 2. Surface commingling of production from the Eider Pool with the Endicott and Sag Delta North Pools. 3. Exemption to the gas-oil ratio limit as set forth in 20 MC 25.240(b). BP is presenting testimony today in support of our application. We will discuss our present understanding of the Eider geological and reservoir description, reservoir performance history, predictions of future reservoir performance and the plan of field development. Testimony related to the geological description will be presented by Bill Rathke. Eric Ding will present testimony related to the "reservoir engineering and development considerations of Eider. Each of the witnesses is prepared to respond to questions concerning his testimony and related exhibits. ( f .~ Some of the materials to be presented today are confidential, and we request that the public be excluded from hearing this confidential information. As discussed with your staff we have endeavoured to keep this confidential information to a minimum. The main reasons for requesting this information be held confidential are: -Issues related to adjacent leases -Precedent setting of premature release of proprietary well information For the avoidance of doubt, we are claiming confidentiality of this data under AS 31.05.035. BP considers the documents could be released upon the date of release of the remaining Eider well data, in February 2001. I{ { ( II. GEOLOGY (Bill Rathke) Introduction My name is Bill Rathke and I will be presenting testimony on the geological description of the Eider Field on behalf of BP Exploration. I am the BP geophysicist responsible for Endicott Field and related areas. I received a Bachelor of Arts degree in Geological Sciences from Dartmouth College and a Master of Science in Structural Geology from Cornell University. I have worked as a geophysicist in the oil industry for 22 years. The last 19 years have been with BP and predecessor companies in several locations in the U.S. and overseas. Geological Description Exhibit A is a location map for the Eider Field showing the extent of the exploitable hydrocarbon-bearing reservoir, bounding faults, and existing wells used for field delineation. Also shown are the Eider Field's relationship to the Endicott and Sag Delta North Fields and the Participation Area outline for which the field rules for the Eider reservoir would apply. The Eider Field was discovered in 1998 and underlies state leases located approximately 1-1/2 miles offshore. The Eider Field is a fault controlled anticlinal structure truncated at the top by the Lower Cretaceous unconformity, and contains producible oil below a gas cap within the Triassic Ivishak Formation. These hydrocarbon bearing zones cover an area of approximately 300 acres. The delineation of the Eider reservoir is based on two completed wells (2-56A1EI01 and 2-30AlEI02) and five additional sidetracks or plugbacks (2-56/EI-01, 2-56A/PB1, 2- 56A/PB2, 2-30AlPB1, 2-30AlPB2). As shown in Exhibit,A, these seven reservoir penetrations provide a wide distribution of control points encompassing all three of the major fault blocks of the field. The data from these wells consists predominantly of logging-while-drilling (LWD) log data and repeat formation test data (RFT). The log and RFT data were used to determine petrophysical and reservoir properties. Structural control and fault identification are based on the interpretation of the Endicott MPI 3D seismic survey. The seismic dataset is of fair to good quality in the area of the Eider Field. The major bounding faults are clearly resolved and are considered to be accu rately located. The hydrocarbons in the Eider Field are trapped in sandstones and conglomerates of the Ivishak Formation, correlative to Prudhoe Bay Ivishak Zone 2 and to Sag Delta North Ivishak. Exhibit B, the Eider type log, illustrates the formation and zonal I( ~c ~ nomenclature. The formation has been subdivided into an Upper Sand, a Middle Shale containing a sandstone unit, and a Lower Sand, similar to the Sag Delta North Field. Exhibit C summarizes the dominant lithologies and interpreted depositional environments of the reservoir section. The depositional environments are expected to be analogous to Sag Delta North, based on log and cuttings data. An overall regressive sequence is interpreted, ranging from upper shoreface or marine influenced fluvial/distributary in the lower sand, floodplain or bayfill in the middle shale, to a predominantly fluvial environment in the upper sand. Core data was not obtained in any of the Eider wells. Individual well averages and averages of well porosity, net to gross, and 1-Sw were multiplied to acre-ft and then divided by formation volume factor of 1.36 to estimate oil in place. The acre-ft calculations were based on isopachs of net pay of the light oil column, using the fluid contact data from the wells. The total original oil in place is 13.2 million barrels. More than half of the oil in place is contained in the Lower Sand unit. A significant gas cap also exists with an estimated volume of 33 bscf originally in place. III. RESERVOIR ENGINEERING (Eric Ding) Introduction My name is Eric Ding and I will be presenting testimony on the reservoir engineering and development considerations for the Eider Field on behalf of BP Exploration. I received a Bachelor's of Science in Chemical Engineering from the University of Oklahoma and a Master's of Science in Chemical Engineering from the University of Wisconsin-Madison. I have worked for BP since January of 1997 as a Petroleum and Reservoir Engineer. I have been responsible for the Reservoir Engineering for the Eider Field since July, 1998, and am intimately familiar with the information to be presented. My testimony will consist of: an overview of petrophysical properties; an overview of past reservoir performance; review of the reservoir studies describing the depletion mechanisms; discussion of performance predictions, surveillance plans and other development issues. Petrophysical Properties In the absence of core data, porosity was calculated from open hole logs, and permeability was estimated based on permeability-porosity functions derived from Prudhoe Bay Zone 2 Ivishak core data. Exhibit B summarizes the average zonal petrophysical properties. The average porosity is 21 % and the average permeability is t (' I~l 134 mD in the oil column. The permeability varies by zone, from -30 mD in the Lower Sand to 300 mD in the Middle Shale Sands and Upper Sand. The Kv/Kh ratio is expected to be -0.1 for all sands. The net pay at each well was estimated using a shale volume cutoff of 0.4. The average net-to-gross ratio is 0.72 . The water saturations were determined from open hole logs. The average water saturation was calculated to be 36% using the Archie model. Relative permeability data is not available for Eider. Oil water and gas oil relative permeability data developed for the Prudhoe Bay Zone 2 was used for the Ivishak reservoir modeling studies. The initial water saturation used was 36% with a residual oil to water of 20%. The absolute residual oil to gas was 3%, with an effective residual to gas over the time frame investigated of 25%). Surface separator samples were collected from 2-56A1EI01 and laboratory analysis yielded an initial solution GOR of 769 scf/bbl at the saturated bubble point of 4635 psia. API gravity of the 2-56A1EI01 samples was measured at 23.1-23.8°, similar to Endicott Kekiktuk crude. Production History Two wells have been drilled to date, 2-56A1EI01 ("Eider 1") and 2-30A/E102 ("Eider 2"). Both produce from the lower sand unit only, Eider 1 from the Central Fault Block and Eider 2 from both the Central and Western Fault Blocks. The production history to date from the Eider Reservoir is shown in Exhibit D. Well 2-56A1EI01 was brought on production on June 1, 1998 at 3000 stbopd. After two months of near solution GOR production, the GOR began to steadily increase. Well 2-30AlE102 was brought on production on January 25, 1999 at 8500 stbopd, 750 scf/stb, and only trace water. The GOR began to rise quickly, reaching 5800 scf/stb by the end of February. When 2- 30AlEI02 was shut-in at the end of the 120 day test period it was tested at 2365 bopd, 9000 GOR, and 2% WC. Well 2-56A1EI01 was produced intermittently throughout this period, and was shut in on September 30, 1999 for reservoir management. The initial pressure of the field was 4635 psia at the GOC depth of 9700' TVD ss, which is therefore the bubble point pressure. The measured field pressure was 3856 psia in November, 1999, shortly after the field was shut-in. Good pressure communication has been seen between the two wells, as shown by static pressure and RFT data. Development Plans A full field reservoir simulation model was developed to study the performance and to develop a depletion plan for the field to maximize economic recovery. The VIP- EXECUTIVE reservoir simulator was used to perform the study. Reservoir performance was history matched to the available production data. Exhibit E shows simulator ( ( ;1. generated rates versus actual field data. The OOIP estimate has been reduced to 13.2 mmstbo, from the original OOIP estimate of 18 mmstbo. The history match indicates the presence of fewer hydrocarbons then previously thought, resulting in a reduction of hydrocarbon pore volume. Predictive runs were then undertaken to determine the production plan which would maximize economic recovery. Primary depletion, water injection, and gas injection were the options investigated in depth. Voidage replacement with water injection is considered to be the most beneficial and efficient approach to enhanced recovery, producing over 5 mmbbls within the next 10 years. Water injection is predicted to suppress the free gas production, preserving reservoir energy and preventing the field from being shut-in due to uncompetitive GOR. BP requests that waterflood implementation be authorized within the pool rules based on the recovery benefits to be gained, and that an Area Injection Order be issued. Reservoir simulation shows an expected incremental increase in ultimate recovery of 1.5 to 3.0 MMstb of oil as a result of the proposed water injection into 2-56A1EI01. Recovery from primary depletion is estimated at 15%, while recovery with water injection is estimated at 27-38%, an incremental recovery of 12-230/0. Initial production will begin upon implementation of the waterflood, with an expected initial rate of 1500 bopd. Maximum water injection rates are expected to range from 15,000 to 20,000 barrels of water per day. Water injection will then match voidage, rather then attempting to repressurize the reservoir to original pressures. Simulation shows little reservoir benefit to re-pressurization to the bubble point, but significant potential downside due to resaturation of the gas cap. The proposed strategy will maximize sweep in the lower sand unit, which holds the largest single amount of reserves in the reservoir. Because this sand has the lowest permeability, the high angle section in Eider 2 will enable reserves to be maximized in this sand body. Once the lower sand reserves have been maximized the other units will be considered and accessed as appropriate. The higher permeability of these sands makes them more susceptible to early gas and water breakthrough, and accessing them later will avoid putting the reserves in the lower sand at risk. This two stage strategy will maximize the reserves in the overall reservoir. The potential ultimate recovery impacts of additional drilling within the delineated portion of the reservoir are seen to be small, and no further penetrations within the Eider Oil Pool are foreseen at this time. The added reserves of a third well are predicted at less then 2 million barrels maximum, with a P50 estimate of 0.8 mmstbo. This will be reviewed as the Pool matures and more information is gathered. At this time it is believed that 160 acre spacing is sufficient for the two well field development. f ( ~, BP requests, as a result of the pressure maintenance project proposed, an exemption to the gas-oil ratio limit as set forth in 20 AAC 25.240(b). While BP expects the GOR to eventually be suppressed by water injection, some formation gas production is expected to occur. Voidage replacement of the produced fluids with water injection will be sufficient to maintain reservoir energy. BP requests that one pressure survey be required in the field per year, rather then one from each producing government section. Well 2-30AlE102 produces from two different government sections, but the requirement to obtain isolated statics from each producing interval in the well would present significant risk to operations. Therefore, BP proposes a minimum of one survey in the field each year for reservoir management. ( t Il Request to resume public session IV. Well Planning (Eric Ding) The Eider casing and cementing requirements are identical to the Endicott Pool requirements. Wells drilled to the reservoir interval encounter the exact same formations prior to entering the pay zone as the Endicott wells. It is recommended that Endicott Conservation Order No. 275, Rule 4 or similar be adopted for the Casing and Cementing Requirements with modification as shown in Exhibit J. Exhibit K shows a typical well configuration for Eider. V. Facilities (Eric Ding) Development and continued production of the Eider Pool is dependent upon utilizing the existing production and injection facilities of the Endicott field. This requires commingling of Eider and Endicott crude prior to processing and metering. Eider production will be allocated on the basis of test separator measurements of oil and gas. Water volumes will be determined by measurement with an AGAR watercut meter. Each Eider well will be tested at least once monthly for a minimum of 4 hours at a stabilized flow rate. VI. PROPOSED EIDER FIELD RULES (Gary Osborne) This concludes our technical presentation. We would be happy to address any questions you might have. For your convenience and consideration, we have assembled some proposed pool rules for the Eider field. ( ( \ LIST OF EXHIBITS Exhibit A Exhibit B Exhibit C Exhibit D Exhibit E Exhibit F Exhibit G Exhibit H Exhibit I Exhibit J Exhibit K Eider Field Location Map Eider Field Reservoir Type Log Eider Field Reservoir Lithologies and Interpreted Deposition Environments Eider Production Profile History Match: Simulated Rates vs. Field Data History Match: Simulated Pressure vs. Field Data (Confidential) Eider Field Structure Map (Confidential) Eider STOOIP by Region (Confidential) Depletion Plan Comparison (Confidential) Casing and Cementing Requirements Eider Wellbore Diagram EXHIBIT A TO EIDER POOL RULES TESTIMONY SD-08 NK-23 ----'" o 1000 2000 FT. & q 2M!!"" EIDE FIELD LOCATION MAP EXHIBIT B TO EIDER POOL RULES TESTIMONY NET EIDER 1 GROSS -TO- MD (It) GROSS ('Yo) CALC PORO ('Yo) CALC i-Sw ('Yo) 0-75 0.80 0.24 0-125 0.00 0.00 LITHOLOGY Shale, tight. 0.80 Fine-grained, glauconitic sandstone, non-productive. 0.00 Calcareous shale, tight. 17,338 Pebble to cobble 60-125 0.80 0.20 0.80 merate, with variable amounts of thin, inter- bedded sandstones. 75-90 0.50 0.16 Shale with sandy conglomerate. 0.80 0,21 0.65 17,928 Eider productive interval. GOC at 9690 TVD SS Shale, tight. Iso ft EIDER FIELD RESERVOIR TYPE LOG Finely crystalline lime- stone, dolomitic and oolitic in part, poor poro-perm, tight. EXHIBIT C TO EIDER POOL RULES TESTIMONY PRIMARILY SANDSTONE WITH MINOR SILTSTONE OR MUDSTONE MUDSTONE WITH MINOR SILTSTONE AND SOME SANDSTONE SANDSTONE WITH MINOR MUDSTONE MUDSTONE EI ER FIELD RESERVOIR LITHOLOGIES AND INTERPRETED DEPOSITIONAL ENVIRONMENTS FLUVIAL OR DISTRIBUTARY CHANNEL FLOODPLAIN. BAYFILL OR VERY SHALLOW MARINE MARINE UPPER SHOREFACE OR FLUVIAUDISTRIBUTARY CHANNEL MARINE Exhibit to Eider Pool Rules Testimony 2-56A/EIOl Production 16000 14000 - Oil Rate 12000 - _ Cum Oil 10000 6000 ,...., 8000___ ~ ~ ~ 4000- ~ Õ 2000 010 May-98 Jul-98 Sep-98 Nov-98 Jan-99 Mar-99 May-99 Jul-99 Sep-99 2-30A/EI02 Production 12000 -GaR -Oil Rate -CumOi1 ~ 8000- o ç.:¡ ¡; ~ 10000 '" ~ S' 6000-- :¡:¡ ... ~ 4000- ~ .. ~ 2000- Õ 010 May-98 Jul-98 Sep-98 Nov-98 Jan-99 Mar-99 May-99 JuJ-99 Sep-99 Field Production 16000 i ]4000- '" ¡¡;, ! ]2000- ~ o 10000- ç.:¡ ,...., 8000 "C ~ ~ '" ~ Õ -Oil Rate -GaR -Cum Oil 6000 4000 - 2000 o I May-98 Ju]-98 I Sep-98 Nov-98 I Jan-99 Mar-99 May-99 Jul-99 Eider Production Profile 700 600 - 500 ¡; ... 400 ! õ -- 300 e :::> - 200 U - 100 400 - 350 300 ¡; 250 I - 200 6 - 150 § U - 100 - 50 ],000, - 900. - 800. 700. :E ... - 600. '" g - 500. Õ - 400. S ::I - 300, U - 200, - 100, O. Sep-99 I Exhibit E to Eider Pool Rules Testimony Oil Rate and Cumulative Oil Production 10000 1000 Rate (Simulator) 0 9000 -- 900 0 Oil Rate (Field) 8000 - Oil (Simulator) - 800 7000 - II Cum Oil (Field) - 700 -. "e ;Q 6000 - - 600 ... '" '-' ~ 5000 - 500 e::I ::: 4000 - 400 Õ 3000 - - 300 2000 -'- 200 1000 - ~ 100 0 I I I I 0 Apr-98 Jul-98 Nov-98 Feb-99 May-99 Aug-99 Dec-99 GOR and Cumulative Gas Production 20000 Jul-98 I Nov-98 18000 - 16000 - 14000 ~ 12000 10000 '" - 8000 e::I ø - 6000 4000 - 2000 I I 0 Feb-99 May-99 Aug-99 Dec-99 6000 - 4000 - 2000 - o - Apr-98 GOR (Simulator) GOR (Field) 16000 - -Cum Gas (Simulator) 14000 - II Cum Gas (Field) 18000 -- -. ~ 12000 ì;;;¡ ¢J ~ 10000 - ~ o 8000- ø History Match Simulated Rates vs. Field Data ) " ') STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 3001 Porcupine Drive Anchorage Alaska 99501-3192 Re: THE APPLICATION OF BP ) Conservation Order No. 275 EXPLORATION (ALASKA) ) INC. for classification of new ) Endicott Field oil pools and prescribing pool ) Ivishak oil Pool rules for development in the ) Alapah Oil Pool Duck Island Unit of the ) Endicott Field. ) April 24, 1991 Rule 4 CASING AND CEMENTING REQUIREMENTS (a) Surface casing, to provide för proper anchorage, for preventing uncontrolled flow and to protect the well from the effects of permafrost thaw-subsidence or freeze-back loadings, shall be set at least 500 measured feet below the base of the ice-bearing permafrost. Sufficient cement shall be used to fill the annulus behind the casing to at least the mud line. (b) Alternate means for maintaining the integrity of the well from the effects of permafrost thaw- subsidence and freeze-back may be administratively approved by the Commission upon application and presentation of data which show the alternatives are appropriate, based upon accepted engineering principles. ( c) Conductor casing is not required. (d) Formation leak-off tests are not required below structural and intermediate casing. Exhibit J to Eider Pool Rules Testimony . TREE: 4-1/16" / 5000 psi /Cameron WELLHEAD: 11" / 5000 Dsi / Gen.V '} ) ~}- RT ELEV= 55.1' SF ELEV= 16.6' MAX. DEV. =68 degrees. Ave hole angle 60 degrees 9 5/8". 47#. L-80 BTC Casing e SSSV LANDING NIPPLE 11574 HES "HXO" (3.813" 1m 1 7079' 1 ~ ~ ALL GLV's HAVE BTM INTEGRAL LATCHES CAMCO 4.5" X 1" KGS-2-LS MD TVD ss Angle 6 5102 3490 60 5 8748 5242 62 4 10902 6294 61 3 12320 7002 59 2 13699 7702 1 15040 8394 58 I;A 711. 29#. L-80. BTC Casina 41/211,12.6#, L-80 BTC Tubing I 4-1/2" "X" NIPPLE (HES) (3.813" 1m . 115108 1 ~ v _ 7"BAKERS-3PACKER 115119 1 ð Baker (3.875" 1.0.) ! \ 4-1/2" "X" NIPPLE (HES) (3.813" 1m 4-1/2" "XN" NIPPLE (HES) (3.725 1m 4-1/2" WLEG PFRFORATING SUMMARY Reference log: Sperry MWD Dual GRJElec Mag Resist. Dated 5/19/98 Date Size SPF Status INTERVAL 5/25/98 n/8 6 Open 17714 -17904 I I ZXP Liner Packer Top of 711 window 4 1/211, 12.6#. 13 Chr, NSCT Liner PBTD I 17930 1 ",""",."",.,.."..., 611 bit on btm of liner 117988 1 .!:::::i:::¡:::::i:::¡¡:::,:i::¡i¡::I:~ Date By Comments 5/27/98 9.!!!. COMPLETION 115142 1 115164 1 115176 1 ELMO 1 1 115652 115958 . ENDICOTT WELL: 2-56/Eider-01 API NO: 50-029-22863-03 BP EXPLORATION (ALASKA), INC Exhibit K to Eider Pool Rules Testimony . #7 ~ , ) Notice of Change of Date of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: Eider Pool, Endicott Field, Duck Island Unit - Pool Rules and Area Injection Order BP Exploration (Alaska) Inc. by letter dated January 27, 2000, petitioned the Alaska Oil and Gas Conservation Commission under 20 AAC 25.520 to hold a public hearing to present testimony to establish pool rules and allow enhanced recovery operations on an area basis in the Eider Pool, Endicott Field, Duck Island Unit on the North Slope of Alaska. The hearing previously scheduled for April 6, 2000, has been continued to May 25, 2000, at 9:00 AM. The hearing will be held at the Alaska Oil and Gas Conservation Commission, 3001 Porcupine Drive, Anchorage, Alaska 99501. All interested persons and parties are invited to present testimony. If you are a person with adisability who may need a special modification in order to comment or to attend the public hearing, please contact Diana Fleck at 793-1221 before May 18, 2000. Robert N. Christenson~ P.E. 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ANCHORAGE, AK 99517 GERALD GANOPOLE CONSULT GEOL 2536 ARLINGTON ANCHORAGE, AK 99517-1303 DAVID CUSATO 600 W 76TH AV #508 ANCHORAGE, AK 99518 ASRC CONRAD BAGNE 301 ARCTIC SLOPE AV STE 300 ANCHORAGE, AK 99518 ARMAND SPIELMAN 651 HILANDER CIRCLE ANCHORAGE, AK 99518 HALLIBURTON ENERGY SERV MARK WEDMAN 6900 ARCTIC BLVD ANCHORAGE, AK 99518-2146 OPST AD & ASSOC ERIK A OPSTAD PROF GEOL POBOX 190754 ANCHORAGE, AK 99519 JACK 0 HAKKILA POBOX 190083 ANCHORAGE, AK 99519-0083 ENSTAR NATURAL GAS CO BARRETT HATCHES POBOX 190288 ANCHORAGE, AK 99519-0288 MARATHON OIL CO OPERATIONS SUPT POBOX 196168 ANCHORAGE, AK 99519-6168 ) ) MARATHON OIL CO BRAD PENN POBOX 196168 ANCHORAGE, AK 99519-6168 UNOCAL KEVIN TABLER POBOX 196247 ANCHORAGE, AK 99519-6247 U NOCAL POBOX 196247 ANCHORAGE, AK 99519-6247 EXXON MOBIL PRODUCTION COMPANY MARK P EVANS PO BOX 196601 ANCHORAGE, AK 99519-6601 BP EXPLORATION (ALASKA), INC. 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DAVIS, ESQ POBOX 196612 MB 13-5 ANCHORAGE, AK 99519-6612 BP EXPLORATION (ALASKA) INC INFO RESOURCE CTR MB 3-2 POBOX 196612 ANCHORAGE, AK 99519-6612 ) ) AMSINALLEE CO INC WILLIAM 0 VALLEE PRES PO BOX 243086 ANCHORAGE, AK 99524-3086 L G POST O&G LAND MGMT CONSULT 10510 Constitution Circle EAGLE RIVER, AK 99577 D A PLATT & ASSOC 9852 LITTLE DIOMEDE CIR EAGLE RIVER, AK 99577 PINNACLE STEVE TYLER 20231 REVERE CIRCLE EAGLE RIVER, AK 99577 DIANA FLECK 18112 MEADOW CRK DR EAGLE RIVER, AK 99577 DEPT OF NATURAL RESOURCES DGGS JOHN REEDER POBOX 772805 EAGLE RIVER, AK 99577-2805 COOK INLET KEEPER BOB SHA VELSON PO BOX 3269 HOMER, AK 99603 COOK INLET VIGIL JAMES RODERICK POBOX 916 HOMER, AK 99603 PHILLIPS PETR ALASKA OPERATIONS MANAGER J W KONST P 0 DRAWER 66 KENAI, AK 99611 RON DOLCHOK POBOX 83 KENAI, AK 99611 ') ,) DOCUMENT SERVICE CO JOHN PARKER POBOX 1468 KENAI, AK 99611-1468 ) ) KENAI PENINSULA BOROUGH ECONOMIC DEVEL DISTR STAN STEADMAN POBOX 3029 KENAI, AK 99611-3029 NANCY LORD PO BOX 558 HOMER, AK 99623 PENNY VADLA PO BOX 467 NINILCHIK, AK 99639 BELOWICH COAL CONSULTING MICHAEL A BELOWICH HC31 BOX 5157 WASILLA, AK 99654 PACE SHEILA DICKSON POBOX 2018 SOLDOTNA, AK 99669 JAMES GIBBS POBOX 1597 SOLDOTNA, AK 99669 KENAI NATL WILDLIFE REFUGE REFUGE MGR POBOX 2139 SOLDOTNA, AK 99669-2139 VALDEZ PIONEER POBOX 367 VALDEZ, AK 99686 AL YESKA PIPELINE SERVICE CO VALDEZ CORP AFFAIRS SAN DY MCCLI NTOCK POBOX 300 MSf701 VALDEZ, AK 99686 VALDEZ VANGUARD EDITOR POBOX 98 VALDEZ, AK 99686-0098 ') ) UNIV OF ALASKA FAIRBANKS PETR DEVEL LAB DR V A KAMATH 427 DUCKERING FAIRBANKS, AK 99701 NICK STEPOVICH 543 2ND AVE FAIRBANKS, AK 99701 RICK WAGNER POBOX 60868 FAIRBANKS, AK 99706 JACK HAKKI LA POBOX 61604 FAIRBANKS, AK 99706-1604 C BURGLlN POBOX131 FAIRBANKS, AK 99707 FAIRBANKS DAILY NEWS-MINER KATE RIPLEY POBOX 70710 FAIRBANKS, AK 99707 FRED PRATT POBOX 72981 FAIRBANKS, AK 99707-2981 DEPT OF NATURAL RESOURCES DIV OF LAND REG MGR NORTHERN REGION 3700 AIRPORT WAY FAIRBANKS, AK 99709-4699 K&K RECYCL INC POBOX 58055 FAIRBANKS, AK 99711 ASRC BILL THOMAS POBOX 129 BARROW, AK 99723 RICHARD FINEBERG PO BOX416 ESTER, AK 99725 UNIV OF ALASKA FBX PETR DEVEL LAB SHIRISH PATIL 437 DICKERING FAIRBANKS, AK 99775 UNIVERSITY OF ALASKA FBKS PETR DEVEL LAB DR AKANNILAWAL POBOX 755880 FAIRBANKS, AK 99775-5880 SENATOR LOREN LEMAN STATE CAPITOL RM 113 JUNEAU, AK 99801-1182 DEPT OF ENVIRON CONSERV SPAR CHRIS PACE 410WILLOUGHBY AV STE 105 JUNEAU, AK 99801-1795 ) ) #6 A.oGCC Public Hearing ) ) 4/6/2000 i I " I ) 1 2 3 Page 1 ALASKA OIL AND GAS CONSERVATION COMMISSION PUBLIC HEARING In Re: 4 EIDER POOL, ENDICOTT FIELD, 5 DUCK ISLAND UNIT POOL RULES AND AREA INJECTION ORDER 6 7 TRANSCRIPT OF PROCEEDINGS 8 9 10 APPEARANCES: ) 11 Commissioners: 12 13 14 15 16 17 18 19 20 21 22 I 23 I I 24 "~ 25 ,I' i Phone (907)276-3876 Anchorage, Alaska April 6, 2000 9:10 o'clock a.m. MR. ROBERT N. CHRISTENSON, CHAIR~rnN MS. CAMMY TAYLOR MR. DAN SEAMOUNT * * * * * * Metro Court Reporting, Inc. 550 West Seventh Avenue, Suite 1650 metro@gcí.net AOGCC Public Hearing ) I . I ) Page 2 1 PROCEEDINGS 2 (On record 9:10 a.m.) 3 CHAIRMAN CHRISTENSON: Good morning. We would 4 like to call this hearing to order. This hearing is for the 5 purpose of accepting testimony on the Eider Pool, Endicott 6 Field, Duck Island Unit, for pool rules and area injection 7 order. The date is April 6th, year 2000. It's about 10 8 minutes after 9:00, at 3001 Porcupine Road, the Alaska Oil and 9 Gas Conservation Commission. The notice was published in the 10 Anchorage Daily News on March 3, 2000. 11 The Commission will receive both sworn and unsworn 12 testimony. However, it will give greater weight to sworn 13 testimony. All persons wishing to testify will be sworn. Each 14 witness shall state the witness's name and w.ho he wishes to 15 represent. Each witness who wishes to give expert testimony 16 shall state the witness's qualification. The Commission will 17 rule on whether the witness qualifies as an expert. The 18 applicant will be asked to present the testimony first. All 19 those wishing to present testimony will be heard next. 20 No cross examination of the witnesses will be accepted 21 under the decision of the Commission. And if disclosure of 22 otherwise confidential information is required, the Commission 23 will limit the condition and disclosure to the extent necessary 24 to comport with applicable constitutional, statutory, and 25 common law doctrines that protect trade secrets within the .\ ) Page 3 1 meaning of AS 45.50.940 and other commercially sensitive, 2 confidential, and proprietary information. So, we'll need to 3 discuss that if that's an area we need to look at. 4 Without further adieu, then, I guess we need to get the 5 witness list and begin the testimony. 6 Mr. Osborne, I believe you're leading off? 7 MR. OSBORNE: Right. Good morning. My name is 8 Gary Osborne. I am the subsurface manager for BP Exploration 9 Endicott Field in Alaska. 10 CHAIRMAN CHRISTENSON: Before you go further, 11 12 13 14 15 16 17 18 19 20 21 22 23 } 24 " 25 can we swear you in? MR. OSBORNE: Sure. CHAIRMAN CHRISTENSON: Will you raise your right hand, please? (Oath administered) MR. OSBORNE: I do. CHAIRMAN CHRISTENSON: Okay. Please proceed. MR. OSBORNE: It's duly noted that BP is the operator of Endicott Field. Therefore, it is testifying on behalf of the recommendations today. This hearing has been scheduled in accordance with statutes 20 AAC 25.520 and 20 AAC 25.540 in order to consider evidence relevant to the establishment of pool rules, and, notably, an area injection order for the Eider Pool. Our letters dated January 27, 2000, contain for the ) 4/6/2000 Page 4 1 formal applications both for the pool rules and the area 2 injection order related to the implementation of a water flood 3 in the Eider Pool. Supplemental information was also provided 4 to the AOGCC in our later dated February 17, 2000. 5 Specifically, BP requests the Commission to approve 6 several proposals, which are considered necessary for the 7 development of Eider Field. These are, one, the initiation of 8 water injection for enhanced oil recovery; two, surface 9 commingling of production from the Eider Pool with the Endicott 10 and Sag Delta North Pools; and, three, exemption to the gas oil 11 ratio limit as set forth in Statute 20 AAC 25.240(b). 12 BP is presenting testimony today in support of our 13 application. We will discuss our present understanding of the 14 Eider geological and reservoir description, the reservoir 15 performance history, predictions of future reservoir 16 performance, and the plan of field development. Testimony 17 related to the geological description will be presented by Bill 18 Rathke. Eric Ding will present testimony related to the 19 reservoir engineering and development considerations of Eider. 20 Each of the witnesses is prepared to respond to questions 21 concerning his testimony and related exhibits. 22 Regarding confidentiality, some of the materials to be 23 presented today and in the original application are 24 confidential, and we request that the public be excluded from 25 hearing this confidential information. The main reasons for Page 5 1 requesting this information to be held confidential are, one, 2 issues related to adjacent leases; and, two, precedent setting 3 nature of premature release of proprietary well information. 4 BP considers the documents could be released by the Commission 5 upon the date of release of the remaining Eider well data in 6 2001. 7 With that, if there's any questions, I'd be happy to 8 answer regarding the confidentiality. We will be showing 11 9 figures, displays in overhead form. And we would at this point 10 like to go into the technical discussion. 11 CHAIRMAN CHRISTENSON: Okay. Is your 12 presentation structured so that we can have a confidential part 13 of it and a non-confidential part? 14 MR. OSBORNE: We will refer specifically and 15 directly to the information that is presented visually. So, we 16 don't see a meaningful way we can differentiate between the 17 testimony and the figures, themselves. 18 MS. TAYLOR: I have some questions actually 19 about the confidentiality, if we could go through that. 20 The January 27th area injection order, as 1 understand 21 it, it has -- there's no request for confidentiality with that. 22 MR. OSBORNE: The figures should have been 23 stamped confidential. 24 MS. TAYLOR: Show Eider Field area map and a 25 completion diagram -- well completion diagram. They're not Phone (907)276-3876 Metro Court Reporting, Inc. 550 West Seventh Avenue, Suite 1650 metro@gci.net ) AOGCC Public Hearing ) Page 6 1 stamped confidential. 2 MR. OSBORNE: Then if we show that today, we 3 won't request that that be..... 4 MS. TAYLOR: Okay. The pool rules application, 5 the entire application, just about, is stamped confidential. 6 The geologic description, the reservoir description, the 7 production history, the development plans, everything here is 8 confidential? 9 MR. OSBORNE: Right. In reference to the -- my 10 primary point, that is data that needs to be held tight and is 11 protected in terms of current statutes through well data given 12 the issues that we have with offsetting acreage and operators, 13 we feel that we would be premature to release that data now. 14 MS. TAYLOR: So, are you maintaining that the 15 economic value that you have in this information, that it would 16 be lost if it was released? 17 MR. OSBORNE: It's at risk. 18 MS. TAYLOR: And then with respect to the 19 remaining exhibits, Exhibit A is a location map. It's a 20 surface description of the Eider Field. You're requesting that 21 that be kept confidential, as well? 22 MR. OSBORNE: If it is marked confidential, we 23 would maintain that. If it's not, then we would not. But in 24 so far as it is part of the pool rules, we would assume it 25 wouldn't be held confidential. ~ 1 Page 7 1 MS. TAYLOR: On February 4th, you also followed 2 up with a supplemental Exhibit A that has attachments 5, 6, and 3 7. One is -- let's see, it's the same as -- yeah, it's a 4 reservoir type log. Then there are two others, structure map 5 and cross section, and then the response to the questions that 6 were submitted on the 17th of February. They're exhibits. And 7 all those are confidential? 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 ) 24 25 MR. OSBORNE: Yes. MS. TAYLOR: Are you also asking that the Commission issue an order that it be held confidential? MR. OSBORNE: If the order references or states information that has been requested as confidential, then certainly we would expect the Commission to be consistent with that ruling. MS. TAYLOR: I would suggest that we take a recess and look through these individually and make a determination before we go on. CHAIRMAN CHRISTENSON: Okay. Is that all right with you, Dan? MR. SEAMOUNT: It's fine with me. MR. CHRISTENSON: Okay. We'll recess. (Off record) (On record) CHAIRMAN CHRISTENSON: We would like to go back on the record here, back in session. What we decided is we ') 4/6/2000 Page 8 1 would like to have an executive session here with the 2 presenters to talk about this confidentiality issue in more 3 detail. And don't know how long that will take but that's what 4 we would like to do now. 5 So, Gary, do you want to check over the audience and 6 see who goes and who stays? 7 MR. OSBORNE: I would leave that to your 8 discretion, Mr. Christenson. 9 CHAIRMAN CHRISTENSON: I don't think we can do 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 that. (Off record comments) MR. OSBORNE: Without knowing everybody in the audience (indiscernible - away from microphone). CHAIRMAN CHRISTENSON: W.ell, do you not want to be here -- you don't want the ARCO people here, is that it? MR. OSBORNE: Well, we think this is between the AOGCC and BPXA. So, anybody else is extraneous to the discussion and doesn't need to be here for that. CHAIRMAN CHRISTENSON: Okay. So you don't want DNR either? MR. OSBORNE: Well, we have separate discussions with DNR. So..... CHAIRMAN CHRISTENSON: Well, they're all right as far as we're concerned, unless you want to exclude them. MR. OSBORNE: I mean I don't object to DNR Page 9 1 being here. 2 UNIDENTIFIED MALE SPEAKER: No. 3 CHAIRMAN CHRISTENSON: Okay. So we would like 4 to excuse the ARCO folks. 5 (Executive session portion) 6 CHAIRMAN CHRISTENSON: Okay. For the record, 7 we ended the executive session. We're now into regular 8 session. 9 And what the Commission has decided to do is to ask BP 10 to furnish additional information with regard to the request 11 for confidentiality in 10 days, and then the Commission will 12 make a decision on the -- make a decision on that, and the 13 hearing is continued until..... 14 MS. TAYLOR: May 25th. 15 CHAIRMAN CHRISTENSON: .....May 25th. We'll 16 reconstitute the public hearing. So, is there any other 17 business before us this morning? In that case, we are 18 adjourned. 19 (Off record 10:23 a.m.) 20 END OF PROCEEDINGS 21 22 23 24 25 Phone (907)276-3876 Metro Court Reporting, Inc. 550 West Seventh Avenue, Suite 1650 metro@gci.net AOGCC Public Hearing I A .). I ".,," "" _ __':.m.....___.'__._..' ..".,__ AAC 3 :22,22 4: 11 about 2:75:196:5 8:2 accepted 2:20 accepting 2:5 accordance 3: 21 acreage 6: 12 actually 5: 18 additional 9:10 adieu 3:4 adjacent 5:2 adjourned 9:18 administered 3: 15 after 2:8 alaska 1:1,82:8 3:9 Anchorage 1: 8 2:10 answer 5:8 anybody 8: 17 AOGCC 4:48:17 APPEARANCES 1: 10 applicable 2:24 applicant 2: 18 application 4: 13 4:23 6:4,5 applications 4: 1 approve 4:5 April 1:9 2:7 ) ARCO 8:159:4 - area 1:5 2:6 3:3,24 4:1 5:20,24 asked 2: 18 asking 7:9 assume 6:24 attachments 7:2 audience 8:5,13 away 8: 13 a.m 1:9 2:2 9: 19 B ---- back 7:24,25 before 3: 10 7: 17 9: 17 begin 3:5 behalf 3:20 being 9: 1 believe 3: 6 between 5: 16 8: 16 Bill 4:17 both 2:114:1 BP 3:8,184:5,12 5:4 9:9 BPXA 8:17 business 9: 17 I------C-------- I C 2:1--- I call 2:4 .~ CA)'[ì\[Y 1: 12 .,1' case 9:17 I certainlv 7: 13 I . , CHAIR.\-IAN 1: 11 2:33:10,13,17 5:11 7:18,248:9 8: 14,19,23 9:3,6 9:15 check 8:5 christenson 1: 11 2:33:10,13,17 5:117:18,21,24 8:8,9,14,19,23 9:3,6,15 comments 8: 11 commercially 3: 1 commingling 4:9 commission 1: 1 2:9,11,16,21,22 4:5 5:47:10,13 9:9,11 Commissioners 1 :11 common 2:25 completion 5 :25 5:25 comport 2:24 concerned 8:24 concerning 4:21 condition 2:23 confidential 2:22 3:2 4:24,25 5: 1 5:12,236:1,5,8 6:21,22,257:7,10 7: 12 confidentiality 4:225:8,19,21 8:29:11 conservation 1: 1 2:9 consider 3 :22 considerations 4:19 considered 4:6 considers 5:4 consistent 7: 13 constitutional 2:24 contain 3 :25 continued 9: 13 cross 2:20 7:5 current 6: 11 D D 2:1 Daily 2:10 dan 1:127:19 data 5:56:10,11 6:13 date 2:7 5:5 dated 3:25 4:4 davs 9:11 decided 7:25 9:9 decision 2:21 9: 12 9: 12 Delta 4: 10 description 4: 14 Phone (907)276-3876 ) -+:176:6,6,20 detail 8:3 determination 7:17 development 4:7 4:16,196:7 diagram 5:25,25 differentiate 5: 16 Ding 4: 18 directly 5: 15 disclosure 2:21,23 discretion 8:8 discuss 3:3 4: 13 discussion 5: 10 8: 1 8 discussions 8:22 displays 5:9 DNR 8:20,22,25 doctrines 2:25 documents 5:4 duck 1:5 2:6 duly 3: 18 ".---.----------.--.- ---.----.-. E .--".--..,-.-..------.",.--.,-..,,- E 2: 1,1 Each 2: 13,15 4:20 economic 6: 15 eider 1:4 2:5 3:24 4:3,7,9,14,195:5 5:24 6:20 either 8:20 END 9:20 ended 9:7 endicott 1:4 2:5 3:9,194:9 engineering 4: 19 enhanced 4:8 entire 6:5 Eric 4:18 establishment 3:23 everybody 8: 12 everything 6:7 evidence 3 :23 examination 2:20 exclude 8:24 excluded 4:24 excuse 9:4 executive 8: 1 9:5,7 exemption 4: 1 0 Exhibit 6: 19 7:2 exhibits 4:21 6: 19 7:6 expect 7: 13 expert 2: 15,17 Exploration 3: 8 extent 2:23 extraneous 8: 1 Î F far 6:24 8:24 Februarv 4:47: 1 7:6 . feel 6: 13 Page 10 field 1:42:63:9,19 4:7,165:246:20 figures 5:9,17,22 fine 7:20 first 2: 18 flood 4:2 folks 9:4 followed 7: 1 form 5:9 formal 4: 1 forth 4: 11 from 4:9,248:13 furnish 9: 10 further 3 :4, 1 0 future 4: 15 --.-.----.---.-.-------.'".- --------..-----Q.--,.,.-,.--- G 2:1 Gary 3:8 8:5 gas 1:12:94:10 geologic 6:6 geological 4: 14, 17 give 2:12,15 given 6: 11 go 3:105:10,19 7: 17,24 goes 8:6 Good 2:3 3:7 greater 2: 12 guess 3:4 .-.-.-----..------------- ----_._-~ hand 3: 14 happy 5:7 heard 2: 19 hearing 1:2 2:4,4 3:21 4:25 9:13 9: 16 held 5:1 6:10,25 7: 10 history 4:15 6:7 -'--"--- __I implementation 4:2 indiscernible 8: 13 individually 7:16 information 2:22 3:24:3,255:1,3 5:156:157:12 9: 10 initiation 4:7 injection 1:5 2:6 3:244:2,8 5:20 island 1:5 2:6 issùe 7:108:2 issues 5:2 6: 12 J Januarv 3:25 5:20 just 6:.5 K ------_._'-- kept 6:21 Metro Court Reporting, Inc. 550 West Seventh Avenue, Suite 1650 ) know S:3 knowing 8: 12 -...-.-...,---,.-------..----- L later 4:4 law 2:25 leading 3:6 leases 5:2 leave 8:7 letters 3 :25 let's 7:3 like 2:4 5: 10 7:24 8:1,4 9:3 limit 2:23 4: 11 list 3:5 location 6:19 log 7:4 long 8:3 look 3:3 7:16 lost 6:16 -----------.-.-----.--- lVI main 4:25 maintain 6:23 maintaining 6: 14 make 7:169:12,12 lVIALE 9:2 manager 3:8 map 5:246:197:4 l\'larch 2: 10 marked 6:22 materials 4:22 LVlav 9: 14, 15 meån 8:25 meaning 3: 1 meaningful 5: 16 microphone 8: 13 minutes 2:8 more 8:2 morning 2:3 3:7 9: 17 ----- N N 1:112:1 name 2: 14 3:7 nature 5:3 necessary 2:23 4:6 need 3:2,3,4 8:18 needs 6: 10 N e\ys 2: 1 0 next 2: 19 non-confidential 5: 13 North 4: 10 notablv 3:24 noted w3: 18 notice 2:9 -º-------- o 2:1 Oath 3:15 object 8:25 off 3:67:22 8: 11 9: 19 4/6/2000 I offsetting 6: 12 oil 1: 1 2:8 4:8,10 Okay 3: 1 7 5: 11 6:47:18,218:19 9:3,6 one 4:75:17:3 operator 3: 19 operators 6: 12 order 1:52:4,7 3 :22,24 4:2 5 :20 7:10,11 original 4:23 osborne 3:6,7,8,12 3:16,185:14,22 6:2,9,17,22 7:8 7:11 8:7,12,16,21 8:25 other 3: 1 9: 16 others 7:4 otherwise 2:22 over 8:5 overhead 5:9 o'clock 1:9 -----.- -..----.,.----...--....-,-- P _...__.~, ,---.,----."-.-,,."------,..,- '. ..--- P 2: 1 part 5: 12,13 6:24 people 8: 15 performance 4: 15 4:16 persons 2: 13 plan 4: 16 plans 6:7 please 3:14,17 point 5:96:10 pool 1 :4,5 2:5,6 3:23,244: 1,3,9 6:4,24 Pools 4: 10 Porcupine 2:8 portion 9:5 precedent 5:2 predictions 4: 15 premature 5:3 6: 13 prepared 4:20 present 2: 18, 19 4:13,18 presentation 5: 12 presented 4: 17,23 5: 15 presenters 8:2 presenting 4: 12 primary 6: 10 proceed 3: 17 PROCEEDI~GS 1:7 9:20 production 4:9 6:7 proposals 4:6 proprietary 3:2 5'~ protect 2:25 protected 6: 11 provided 4:3 metro@gci.net AOGCC Public Hearing ')' public 1:2 4:24 . 9: 16 published 2:9 purpose 2:5 ::-~~:._:-_::::.=-~º-===-::~:--=.:. qualification 2: 16 qualifies 2: 17 questions 4:205:7 5:18 7:5 -_.,-~----,,--'.._-_._--_.__._-,-,_..- R R 2:1 raise 3: 13 Rathke 4: 18 ratio 4:11 Re 1:3 . reasons 4:25 receive 2: 11 recess 7: 16,21 recommendations 3:20 reconstitute 9:16 record 2:2 7:22,23 7:25 8:11 9:6,19 recovery 4:8 refer 5: 14 reference 6:9 references 7: 11 regard 9: 1 0 '\ regarding 4:22 5:8 ) regular 9:7 related 4:2,17,18 4:21 5:2 release 5:3,5 6: 13 released 5:46:16 relevant 3:23 remaining 5:5 6: 19 represent 2: 15 request 4:24 5:21 6:39:10 requested 7: 12 requesting 5: 1 6:20 requests 4:5 required 2:22 reservoir 4: 14,14 4:15,196:67:4 respect 6: 18 respond 4:20 response 7:5 right 3:7,146:9 7:198:23 risk 6: 17 Road 2:8 ROBERT 1: 11 I rule 2: 1 7 ¡rules 1:5 2:63:23 I 4: 1 6:4,24 ) ruling 7: 14 --_.- -'---·S-----·--'-- I ------.---------.------.-. S 2: 1 Sag 4: 10 same 7:3 scheduled 3:21 SEAMOUNT 1: 12 7:20 secrets 2:25 section 7: 5 see 5:167:3 8:6 sensitive 3: 1 separate 8:21 session 7:25 8: 1 9:5,7,8 set 4:11 setting 5:2 several 4:6 show 5:24 6:2 showing 5:8 some 4:225:18 SPEAKER 9:2 specifically 4:5 5:14 stamped 5:23 6: 1 6:5 state 2:14,16 states 7: 11 Statute 4: 11 statutes 3 :22 6: 11 statutory 2:24 stays 8:6 structure 7:4 structured 5: 12 submitted 7:6 subsurface 3: 8 suggest 7:15 supplemental 4:3 7:2 support 4: 12 Sure 3: 12 surface 4:8 6:20 swear 3: 11 sworn 2: 11, 12, 13 ') 6:2 trade 2:25 TRANSCRIPT 1 :7 two 4:8 5:2 7:4 type 7:4 ___ U ____._,____ under 2:21 understand 5:20 understanding 4:13 UNIDENTIFIED 9:2 unit 1:5 2:6 unless 8: 24 unsworn 2: 11 until 9: 13 V value 6:15 visually 5: 15 -- '\V want 8:5,14,15,19 8:24 water 4:2,8 way 5:16 weight 2: 12 well 5:3,5,25 6: 11 6:21 8:14,16,21 8:23 were 7:6 we'll 3:27:21 9:15 we're 8:24 9:7 wishes 2:14,15 wishing 2: 13, 19 witness 2:14,15,17 3:5 witnesses 2:20 4:20 witness's 2:14,16 wouldn't 6:25 T take 7: 15 8:3 y talk 8:2 yeah 7:3 TAYLOR 1:12 year 2:7 5:18,246:4,14,18 7:1,9,159:14 technical 5: 10 terms 6: 11 testify 2: 13 testifying 3: 19 testimony 2:5,12 2:13,15,18,193:5 4:12,16,18,21 2 5: 17 20 3:22,22 4: 11 themselves 5: 17 think 8:9,16 2000 1:92:7,10 three 4:10 3:254:4 2001 5:6 through 5:196:11 "-th 9·14 1- 7·16 -;:,. ,.) tight 6: 10 I ;~.~40(b») 4: 11 today .., ·704·12 7'" : _;:,~~20 3:_2 . :J._ . ,_:J I .,- - 10 3,)7 -;:,.;:,... .-- Phone (907)276-3876 1 10 2:79:11 10:23 9: 19 11 5:8 17 4:4 17th 7:6 Page 11 , 27 3:25 27th 5 :20 3 3 2:10 3001 2:8 4 4 th 7: 1 45.50.940 3: 1 5 ------.,----.--- 5 7:2 --- 6 6 1:97:2 6th 2:7 7 7 7:3 9 9:00 2:8 9:10 1:9 2:2 Metro Court Reporting, Inc. 550 West Seventh Avenue, Suite 1650 ) 4/6/2000 metro@gci.net #5 ) ) Notice of Change of Date of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: Eider Pool, Endicott Field, Duck Island Unit - Pool Rules and Area Injection Order BP Exploration (Alaska) Inc. by letter dated January 27, 2000, petitioned the Alaska Oil and Gas Conservation Commission under 20 AAC 25.520 to hold a public hearing to present testimony to establish pool rules and allow enhanced recovery operations on an area basis in the Eider Pool, Endicott Field, Duck Island Unit on the North Slope of Alaska. The hearing previously scheduled for March 28, 2000, has been rescheduled for April 6, 2000, at 9:00 AM. The hearing will be held at the Alaska Oil and Gas Conservation Commission, 3001 Porcupine Drive, Anchorage, Alaska 99501. All interested persons and parties are invited to present testimony. If you are a person with a disability who may need a special modification in order to comment or to attend the public hearing, please contact Diana Fleck at 793-1221 before March 28,2000. Robert N. Christenson, P.E. Chair Published March 3, 2000 ADN AO# 0201402e> DRI I McGraw Hill Randall Nottingham 24 Hartwell Lexington, MA 02173 PIRA ENERGY GROUP LIBRARY 3 PARK AVENUE (34th & PARK) NEW YORK, NY 10016 OVERSEAS SHIPHOLDING GRP ECON DEPT 1114 AV OF THE AMERICAS NEW YORK, NY 10036 NY PUBLIC LIBRARY DIV E GRAND CENTRAL STATION POBOX 2221 NEW YORK, NY 10163-2221 ALASKA OFC OF THE GOVERNOR JOHN KATZ STE 518 444 N CAPITOL NW WASHINGTON, DC 20001 ARENT FOX KINTNER PLOTKIN KAHN LIBRARY WASHINGTON SQ BLDG 1050 CONNECTICUT AV NW WASHINGTON, DC 20036-5339 US MIN MGMT SERV CHIEF OCS STATS & INFO 381 ELDEN ST MS 4022 HERNDON, VA 20170-4817 LIBRARY OF CONGRESS STATE DOCU MENT SECTION EXCH & GIFT DIV 10 FIRST ST SE WASHINGTON, DC 20540 U S DEPT OF EN ERGY PHYLLIS MARTIN MS EI823 1000 INDEPENDENCE SW WASHINGTON, DC 20585 TECHSYS CORP BRANDY KERNS PO BOX 8485 GATHERSBURG, MD 20898 ) 0¡)~ îr oJ ~ ;i{-"~ a o/L-fV;} V US GEOLOGICAL SURVEY LIBRARY NATIONAL CTR MS 950 RESTON, VA 22092 ) DPC DANIEL DONKEL ,1420 NORTH ATLANTIC AVE, STE 204 DAYTON BEACH, FL 32118 SD DEPT OF ENV & NATRL RESOURCES OIL & GAS PROGRAM 2050 W MAIN STE #1 RAPID CITY, SO 57702 AMOCO CORP 2002A LIBRARY/INFO CTR POBOX 87703 CHICAGO, IL 60680-0703 ILLINOIS STATE GEOL SURV LIBRARY 469 NATURAL RESOURCES BLDG 615 E PEABODY DR CHAMPAIGN, IL 61820 LINDA HALL LIBRARY SERIALS DEPT 5109 CHERRY ST KANSAS CITY, MO 64110-2498 ALFRED JAMES III 107 N MARKET STE 1000 WICHITA, KS 67202-1811 MURPHY E&P CO ROBERT F SAWYER POBOX 61780 NEW ORLEANS, LA 70161 UNIV OF ARKANSAS SERIALS DEPT UNIV LIBRARIES FAYETTEVILLE, AR 72701 CROSS TIMBERS OPERATIONS SUSAN LILLY 210 PARK AVE STE 2350 OKLAHOMA CITY, OK 73102-5605 DWIGHTS ENERGYDATA INC JERLENE A BRIGHT DIRECTOR PO BOX 26304 OKLAHOMA CITY, OK 73126 IOGCC POBOX 53127 OKLAHOMA CITY, OK 73152-3127 R E MCMILLEN CONSULT GEOL 202 E 16TH ST OWASSO, OK 74055-4905 OIL & GAS JOURNAL LAURA BELL POBOX 1260 TULSA, OK 74101 GAFFNEY, CLINE & ASSOCIATES LIBRARY 16775 ADDISON RD STE 400 ADDISON, TX 75001 GAFFNEY, CLINE & ASSOC., INC. LIBRARY 16775 ADDISON RD. STE 400 ADDISON, TX 75001 BAPI RAJU 335 PINYON LN COPPELL, TX 75019 MARK S MALlNOWSKY 15973 VALLEY VW FORNEY, TX 75126-5852 US DEPT OF ENERGY ENERGY INFORMATION ADMINISTRATION MIR YOUSUFUDDIN 1999 BRYAN STREET STE 1110 DALLAS, TX 75201-6801 DEGOL YER & MACNAUGHTON MIDCONTINENT DIVISION ONE ENERGY SQ, STE 400 4925 GREENVILLE AVE DALLAS, TX 75206-4083 ) ) JERRY SCHMIDT 4010 SILVERWOOD DR TYLER, TX 75701-9339 STANDARD AMERICAN OIL CO AL GRIFFITH PO BOX 370 GRAN BURY, TX 76048 CROSS TIMBERS OIL COMPANY MARY JONES 810 HOUSTON ST STE 2000 FORT WORTH, TX 76102-6298 PRITCHARD & ABBOTT BOYCE B BOLTON PE RPA 4521 S. HULEN STE 100 FT WORTH, TX 76109-4948 SHELL WESTERN E&P INC K M ETZEL POBOX 576 HOUSTON, TX 77001-0574 ENERGY GRAPHICS MARTY LINGNER 1600 SMITH ST. STE 4900 HOUSTON, TX 77002 H J GR UY A TTN: ROBERT RASOR 1200 SMITH STREET STE 3040 HOUSTON, TX 77002 PURVIN & GERTZ INC LIBRARY 2150 TEXAS COMMERCE TWR 600 TRAVIS ST HOUSTON, TX 77002-2979 RAY TYSON 1617 FANNIN ST APT 2015 HOUSTON, TX 77002-7639 CHEVRON PAUL WALKER 1301 MCKINNEY RM 1750 HOUSTON, TX 77010 ") ) BONNER & MOORE LIBRARY H20 2727 ALLEN PKWY STE 1200 HOUSTON, TX 77019 OIL & GAS JOURNAL BOB WILLIAMS 1700 W LOOP SOUTH STE 1000 HOUSTON, TX 77027 PETRAL CONSULTING CO DANIEL L LIPPE 9800 RICHMOND STE 505 HOUSTON, TX 77042 MARK ALEXANDER 7502 ALCOMITA HOUSTON, TX 77083 MARATHON OIL CO GEORGE ROTHSCHILD JR RM 2537 POBOX 4813 HOUSTON, TX 77210 U NOCAL REVENUE ACCOUNTING POBOX 4531 HOUSTON, TX 77210-4531 EXXON EXPLORATION CO. T E ALFORD POBOX 4778 HOUSTON, TX 77210-4778 EXXON EXPLOR CO LAND/REGULATORY AFFAIRS RM 301 POBOX 4778 HOUSTON, TX 77210-4778 CHEVRON USA INC. ALASKA DIVISION ATTN: CORRY WOOLlNGTON POBOX 1635 HOUSTON, TX 77251 PETR INFO DAVID PHILLIPS POBOX 1702 HOUSTON, TX 77251-1702 ) } PHILLIPS PETR CO ALASKA LAND MGR POBOX 1967 HOUSTON, TX 77251-1967 ) PHILLIPS PETROLEUM COMPANY W ALLEN HUCKABAY PO BOX 1967 HOUSTON, TX 77251-1967 WORLD OIL MARK TEEL ENGR ED POBOX 2608 HOUSTON, TX 77252 EXXON MOBIL PRODUCTION COMPANY J W KIKER ROOM 2086 POBOX 2180 HOUSTON, TX 77252-2180 EXXON MOBIL PRODUCTION COMPANY GARY M ROBERTS RM 3039 POBOX 2180 HOUSTON, TX 77252-2180 PENNZOIL E&P WILL D MCCROCKLIN POBOX 2967 HOUSTON, TX 77252-2967 CHEVRON CHEM CO LIBRARY & INFO CTR POBOX 2100 HOUSTON, TX 77252-9987 MARATHON Ms. Norma L. Calvert POBOX 3128. Ste 3915 HOUSTON, TX 77253-3128 ACE PETROLEUM COMPANY ANDREW C CLIFFORD PO BOX 79593 HOUSTON, TX 77279-9593 PHILLIPS PETR CO JOE VOELKER 6330 W LP S RM 492 BELLAIRE, TX 77401 PHILLIPS PETR CO ERICH R. RAMP 6330 W LOOP SOUTH BELLAIRE, TX 77401 ') ) PHILLIPS PETR CO PARTNERSHIP OPRNS JIM JOHNSON 6330 W LOOP S RM 1132 BELLAIRE, TX 77401 TEXACOINC R Ewing Clemons PO BOX 430 BELLAIRE, TX 77402-0430 WATTY STRICKLAND 2803 SANCTUARY CV KATY, TX 77450-8510 TESORO PETR CORP LOIS DOWNS 300 CONCORD PLAZA DRIVE SAN ANTONIO, TX 78216-6999 INTL OIL SCOUTS MASON MAP SERV INC POBOX 338 AUSTIN, TX 78767 ROBERT G GRAVELY 7681 S KIT CARSON DR LITTLETON, CO 80122 DIANE SUCHOMEL 1 0507D W MAPLEWOOD DR LITTLETON, CO 80127 GEORGE G VAUGHT JR POBOX 13557 DENVER, CO 80201 AMOCO PROD CO LIBRARY RM 1770 JILL MALLY 1670 BROADWAY DENVER, CO 80202 C & R INDUSTRIES, INC. KURT SALTSGAVER 1801 BROADWAY STE 1205 DENVER, CO 80202 ) US GEOLOGICAL SURVEY LIBRARY BOX 25046 MS 914 DENVER, CO 80225-0046 JERRY HODGDEN GEOL 408 18TH ST GOLDEN, CO 80401 N RG ASSOC RICHARD NEHRING POBOX 1655 COLORADO SPRINGS, CO 80901-1655 RUBICON PETROLEUM, LLC BRUCE I CLARDY SIX PINE ROAD COLORADO SPRINGS, CO 80906 JOHN A LEVORSEN 200 N 3RD ST #1202 BOISE, ID 83702 RUI ANALYTICAL JERRY BERGOSH POBOX 58861 SALT LAKE CITY, UT 84158-0861 T AHOMA RESOURCES GARY PLAYER 1671 WEST 546 S CEDER CITY, UT 84720 US GEOLOGICAL SURVEY LIBRARY 2255 N GEMINI DR FLAGSTAFF, AZ 86001-1698 MUNGER OIL INFOR SERV INC POBOX 45738 LOS ANGELES, CA 90045-0738 LA PUBLIC LIBRARY SERIALS DIV 630 W 5TH ST LOS ANGELES, CA 90071 ) BABSON & SHEPPARD JOHN F BERGQUIST POBOX 8279 VIKING STN LONG BEACH, CA 90808-0279 ANTONIO MADRID POBOX 94625 PASADENA, CA 91109 ORO NEGRO, INC. 9321 MELVIN AVE NORTHRIDGE, CA 91324-2410 76PRODUCTSCOMPANY CHARLES BURRUSS RM 11-767 555 ANTON COSTA MESA, CA 92626 TEXACOINC Portfolio T earn Manager R W HILL POBOX 5197x Bakersfield, CA 93388 US GEOLOGICAL SURVEY KEN BIRD 345 MIDDLEFIELD RD MS 999 MENLO PARK, CA 94025 SH IELDS LIBRARY GOVT DOCS DEPT UNIV OF CALIF DAVIS, CA 95616 H L WANGENHEIM 5430 SAWMILL RD SP 11 PARADISE, CA 95969-5969 ECONOMIC INSIGHT INC SAM VAN VACTOR POBOX 683 PORTLAND, OR 97207 US EPA REGION 10 LAURIE MANN OW-130 1200 SIXTH AVE SEATTLE, WA 98101 MARPLES BUSINESS NEWSLETTER MICHAEL J PARKS 117 W MERCER ST STE 200 SEATTLE, WA 98119-3960 DEPT OF REVENUE OIL & GAS AUDIT DENISE HAWES 550 W 7TH A V STE 570 ANCHORAGE, AK 99501 FAIRWEATHER E&P SERV INC JESSE MOHRBACHER 7151ST #4 ANCHORAGE, AK 99501 GUESS & RUDD GEORGE LYLE 510 L ST, STE 700 ANCHORAGE, AK 99501 STATE PIPELINE OFFICE LIBRARY KATE MUNSON 411 W 4TH AVE, STE 2 ANCHORAGE, AK 99501 TRUSTEES FOR ALASKA 725 CHRISTENSEN DR STE 4 ANCHORAGE, AK 99501 DUSTY RHODES 229 WHITNEY RD ANCHORAGE, AK 99501 DEPT OF REVENUE BEVERLY MARQUART 550 W 7TH A V STE 570 ANCHORAGE, AK 99501 FORCENERGY INC. JIM ARLINGTON 310 K STREET STE 700 ANCHORAGE, AK 99501 ) \ I YUKON PACIFIC CORP JOHN HORN VICE CHM 1049 W 5TH AV ANCHORAGE, AK 99501-1930 PRESTON GATES ELLIS LLP LIBRARY 420 L ST STE 400 ANCHORAGE, AK 99501-1937 ALASKA DEPT OF LAW ROBERT E MINTZ ASST A TTY GEN 1031 W 4TH AV STE 200 ANCHORAGE, AK 99501-1994 GAFO GREENPEACE PAMELA MILLER 125 CHRISTENSEN DR. #2 ANCHORAGE, AK 99501-2101 DEPT OF NATURAL RESOURCES DIV OF OIL & GAS TIM RYHERD 550 W 7th AVE STE 800 ANCHORAGE, AK 99501-3510 DEPT OF REVENUE OIL & GAS AUDIT FRANK PARR 550W 7TH AVE STE 570 ANCHORAGE, AK 99501-3540 BRISTOL ENVIR SERVICES JIM MUNTER 2000 W. INT'L AIRPORT RD #C-1 ANCHORAGE, AK 99502-1116 HDR ALASKA INC MARK DALTON 2525 C ST STE 305 ANCHORAGE, AK 99503 BAKER OIL TOOLS ALASKA AREA MGR 4710 BUS PK BLVD STE 36 ANCHORAGE, AK 99503 N-I TUBULARS INC 3301 C Street Ste 209 ANCHORAGE, AK 99503 ) '} ANADARKO MARK HANLEY 3201 C STREET STE 603 ANCHORAGE, AK 99503 ALASKA OIL & GAS ASSOC JUDY BRADY 121 W FIREWEED LN STE 207 ANCHORAGE, AK 99503-2035 ANADR ILL-SCHLU MBERGER 3940 ARCTIC BLVD #300 ANCHORAGE, AK 99503-5711 AKJOURNALOFCOMMERCE OIL & INDUSTRY NEWS ROSE RAGSDALE 4220 B Street Ste #210 ANCHORAGE, AK 99503-5911 DEPT OF NATURAL RESOURCES PUBLIC INFORMATION CTR 3601 C STREET STE 200 ANCHORAGE, AK 99503-5948 DEPT OF NATURAL RESOURCES DIV OF OIL & GAS JIM STOUFFER 3601 C STREET STE 1380 ANCHORAGE, AK 99503-5948 DEPT OF NATURAL RESOURCES DIV OF OIL & GAS JAMES B HAYNES NATURAL RESRCE MGR 3601 C ST STE 1380 ANCHORAGE, AK 99503-5948 DEPT OF NATURAL RESOURCES DIV OF OIL & GAS JULIE HOULE 3601 C ST STE 1380 ANCHORAGE, AK 99503-5948 DEPT OF NATURAL RESOURCES DIV OIL & GAS WILLIAM VAN DYKE 3601 C ST STE 1380 ANCHORAGE, AK 99503-5948 DEPT OF NATURAL RESOURCES DIV OF OIL & GAS BRUCE WEBB 3601 C ST STE 1380 ANCHORAGE, AK 99503-5948 ') } FINK ENVIRONMENTAL CONSULTING, IN( ') THOMAS FINK, PHD 6359 COLGATE DR. ANCHORAGE, AK 99504-3305 J ARLEN EHM GEOL CONSL TNT 2420 FOXHALL DR ANCHORAGE, AK 99504-3342 JAMES E EASON 8611 LEEPER CIRCLE ANCHORAGE, AK 99504-4209 US BUREAU OF LAND MNGMNT ANCHORAGE DIST OFC DICK FOLAND 6881 ABBOTT LOOP RD ANCHORAGE, AK 99507 RUSSELL DOUGLASS 6750 TESHLAR DR ANCHORAGE, AK 99507 STU HIRSH 9630 BASHER DR. ANCHORAGE, AK 99507 AMERICA/CANADIAN STRATIGRPH CO RON BROCKWAY 4800 KUPREANOF ANCHORAGE, AK 99507 US BUREAU OF LAND MNGMNT ANCHORAGE DIST OFC PETER J DITTON 6881 ABBOTT LOOP ROAD ANCHORAGE, AK 99507 US BLM AK DIST OFC RESOURCE EVAL GRP ART BON ET 6881 ABBOTT LOOP RD ANCHORAGE, AK 99507-2899 TRADING BAY ENERGY CORP PAUL CRAIG 5432 NORTHERN LIGHTS BLVD ANCHORAGE, AK 99508 THOMAS R MARSHALL JR 1569 BIRCHWOOD ST ANCHORAGE, AK 99508 UNIVERSITY OF ALASKA ANCHORAGE INST OF SOCIAL & ECON RESEARCH TERESA HULL 3211 PROVIDENCE DR ANCHORAGE, AK 99508 US MIN MGMT SERV RICHARD PRENTKI 949 E 36TH AV ANCHORAGE, AK 99508-4302 US MIN MGMT SERV AK OCS REGIONAL DIR 949 E 36TH AV RM 110 ANCHORAGE, AK 99508-4302 US MIN MGMT SERV RESOURCE STUDIES AK OCS REGN KIRK W SHERWOOD 949 E 36TH AV RM 603 ANCHORAGE, AK 99508-4302 US MIN MGMT SERV FRANK MILLER 949 E 36TH A V STE 603 ANCHORAGE, AK 99508-4363 REGIONAL SUPRVISOR, FIELD OPERATNS MINERALS MANAGEMENT SERVICE ALASKA OCS REGION 949 E 36TH A V STE 308 ANCHORAGE, AK 99508-4363 US MIN MGMT SERV LIBRARY 949 E 36TH AV RM 603 ANCHORAGE, AK 99508-4363 US MIN MGMT SERV RESOURCE EVAL JIM SCHERR 949 E 36TH AV RM 603 ANCHORAGE, AK 99508-4363 JOHN MILLER 3445 FORDHAM DR ANCHORAGE, AK 99508-4555 ) ) USGS - ALASKA SECTION LIBRARY 4200 UNIVERSITY DR ANCHORAGE, AK 99508-4667 } } CIRI LAND DEPT POBOX 93330 ANCHORAGE, AK 99509-3330 ANCHORAGE TIMES BERT TARRANT POBOX 100040 ANCHORAGE, AK 99510-0040 ARCO ALASKA INC JOANN GRUBER ATO 712 POBOX 100360 ANCHORAGE, AK 99510-0360 ARCO ALASKA INC LEGAL DEPT MARK P WORCESTER POBOX 100360 ANCHORAGE, AK 99510-0360 ARCO ALASKA INC STEVE BENZLER A TO 1404 POBOX 100360 ANCHORAGE, AK 99510-0360 ARCO ALASKA INC LIBRARY POBOX 100360 ANCHORAGE, AK 99510-0360 ARCO ALASKA INC MARK MAJOR ATO 1968 POBOX 100360 ANCHORAGE, AK 99510-0360 ARCO ALASKA INC LAND DEPT JAMES WINEGARNER POBOX 10036 ANCHORAGE, AK 99510-0360 ARCO ALASKA INC SAM DENNIS ATO 1388 POBOX 100360 ANCHORAGE, AK 99510-0360 ARCO ALASKA INC SHELlA ANDREWS ATO 1130 PO BOX 100360 ANCHORAGE, AK 99510-0360 PETROLEUM INFO CORP KRISTEN NELSON POBOX 102278 ANCHORAGE, AK 99510-2278 ARCO ALASKA INC KUP CENTRAL WELLS ST TSTNG WELL ENG TECH NSK 69 POBOX 196105 ANCHORAGE, AK 99510-6105 AL YESKA PIPELINE SERV CO CHUCK O'DONNELL 1835 S BRAGAW - MS 530B ANCHORAGE, AK 99512 AL YESKA PIPELINE SERV CO PERRY A MARKLEY 1835 S BRAGAW - MS 575 ANCHORAGE, AK 99512 AL YESKA PIPELINE SERV CO LEGAL DEPT 1835 S BRAGAW ANCHORAGE, AK 99512-0099 US BUREAU OF LAND MGMT OIL & GAS OPRNS (984) J A DYGAS 222W 7TH AV #13 ANCHORAGE, AK 99513-7599 ANCHORAGE DAILY NEWS EDITORIAL PG EDTR MICHAEL CAREY POBOX 149001 ANCHORAGE, AK 99514 DAVID W. JOHNSTON 320 MARINER DR. ANCHORAGE, AK 99515 JWL ENGINEERING JEFF LIPSCOMB 9921 MAIN TREE DR. ANCHORAGE, AK 99516-6510 NORTHERN CONSULTING GROUP ROBERT BRITCH, P.E. 2454 TELEQUANA DR. ANCHORAGE, AK 99517 GERALD GANOPOLE CONSULT GEOL 2536 ARLINGTON ANCHORAGE, AK 99517-1303 DAVID CUSATO 600 W 76TH A V #508 ANCHORAGE, AK 99518 ASRC CONRAD BAGNE 301 ARCTIC SLOPE AV STE 300 ANCHORAGE, AK 99518 ARMAND SPIELMAN 651 HILANDER CIRCLE ANCHORAGE, AK 99518 HALLIBURTON ENERGY SERV MARK WEDMAN 6900 ARCTIC BLVD ANCHORAGE, AK 99518-2146 OPST AD & ASSOC ERIK A OPSTAD PROF GEOL POBOX 190754 ANCHORAGE, AK 99519 JACK 0 HAKKILA POBOX 190083 ANCHORAGE, AK 99519-0083 ENSTAR NATURAL GAS CO BARRETT HATCHES POBOX 190288 ANCHORAGE, AK 99519-0288 MARATHON OIL CO OPERATIONS SUPT POBOX 196168 ANCHORAGE, AK 99519-6168 } ) MARATHON OIL CO BRAD PENN POBOX 196168 ANCHORAGE, AK 99519-6168 ) U NOCAL KEVIN TABLER POBOX 196247 ANCHORAGE, AK 99519-6247 U NOCAL POBOX 196247 ANCHORAGE, AK 99519-6247 EXXONMOBIL PRODUCTION COMPANY MARK P EVANS PO BOX 196601 ANCHORAGE, AK 99519-6601 BP EXPLORATION (ALASKA), INC. MARK BERLINGER MB 8-1 PO BOX 196612 ANCHORAGE, AK 99519-6612 BP EXPLORATION (ALASKA) INC SUE MILLER POBOX 196612 MIS LR2-3 ANCHORAGE, AK 99519-6612 BP EXPLORATION (ALASKA) INC PETE ZSELECZKY LAND MGR POBOX 196612 ANCHORAGE, AK 99519-6612 BP EXPLORATION (ALASKA) INC BOB WILKS MB 5-3 POBOX 196612 ANCHORAGE, AK 99519-6612 BP EXPLORATION (ALASKA) INC MR. DAVIS, ESQ POBOX 196612 MB 13-5 ANCHORAGE, AK 99519-6612 BP EXPLORATION (ALASKA) INC INFO RESOURCE CTR MB 3-2 POBOX 196612 ANCHORAGE, AK 99519-6612 AMSINALLEE CO INC WILLIAM 0 VALLEE PRES PO BOX 243086 ANCHORAGE, AK 99524-3086 L G POST O&G LAND MGMT CONSULT 10510 Constitution Circle EAGLE RIVER, AK 99577 D A PLATT & ASSOC 9852 LITTLE DIOMEDE CIR EAGLE RIVER, AK 99577 PINNACLE STEVE TYLER 20231 REVERE CIRCLE EAGLE RIVER, AK 99577 DIANA FLECK 18112 MEADOW CRK DR EAGLE RIVER, AK 99577 DEPT OF NATURAL RESOURCES DGGS JOHN REEDER POBOX 772805 EAGLE RIVER, AK 99577-2805 COOK INLET KEEPER BOB SHA VELSON PO BOX 3269 HOMER, AK 99603 COOK INLET VIGIL JAMES RODERICK PO BOX916 HOMER, AK 99603 PHILLIPS PETR ALASKA OPERATIONS MANAGER J W KONST P 0 DRAWER 66 KENAI, AK 99611 RON DOLCHOK POBOX 83 KENAI, AK 99611 ) ) DOCUMENT SERVICE CO JOHN PARKER POBOX 1468 KENAI, AK 99611-1468 ) KENAI PENINSULA BOROUGH ECONOMIC DEVEL DISTR STAN STEADMAN POBOX 3029 KENAI, AK 99611-3029 NANCY LORD PO BOX 558 HOMER, AK 99623 PENNY VADLA PO BOX 467 NINILCHIK, AK 99639 BELOWICH COAL CONSULTING MICHAEL A BELOWICH HC31 BOX 5157 WASILLA, AK 99654 PACE SHEILA DICKSON POBOX 2018 SOLDOTNA, AK 99669 JAMES GIBBS POBOX 1597 SOLDOTNA, AK 99669 KENAI NATL WILDLIFE REFUGE REFUGE MGR POBOX 2139 SOLDOTNA, AK 99669-2139 VALDEZ PIONEER POBOX 367 VALDEZ, AK 99686 AL YESKA PIPELINE SERVICE CO VALDEZ CORP AFFAIRS SANDY MCCLINTOCK POBOX 300 MSf701 VALDEZ, AK 99686 VALDEZ VANGUARD EDITOR POBOX 98 VALDEZ, AK 99686-0098 ) } UNIV OF ALASKA FAIRBANKS PETR DEVEL LAB DR V A KAMATH 427 DUCKERING FAIRBANKS, AK 99701 NICK STEPOVICH 543 2ND AVE FAIRBANKS, AK 99701 RICK WAGNER POBOX 60868 FAIRBANKS, AK 99706 JACK HAKKI LA POBOX 61604 FAIRBANKS, AK 99706-1604 C BURGLlN POBOX 131 FAIRBANKS, AK 99707 FAIRBANKS DAILY NEWS-MINER KATE RIPLEY POBOX 70710 FAIRBANKS, AK 99707 FRED PRATT POBOX 72981 FAIRBANKS, AK 99707-2981 DEPT OF NATURAL RESOURCES DIV OF LAND REG MGR NORTHERN REGION 3700 AIRPORT WAY FAIRBANKS, AK 99709-4699 K&K RECYCL INC POBOX 58055 FAIRBANKS, AK 99711 ASRC BILL THOMAS POBOX 129 BARROW, AK 99723 RICHARD FINEBERG POBOX 416 ESTER, AK 99725 UNIV OF ALASKA FBX PETR DEVEL LAB SHIRISH PATIL 437 DICKERING FAIRBANKS, AK 99775 UNIVERSITY OF ALASKA FBKS PETR DEVEL LAB DR AKANNI LAWAL POBOX 755880 FAIRBANKS, AK 99775-5880 SENATOR LOREN LEMAN STATE CAPITOL RM 113 JUNEAU, AK 99801-1182 DEPT OF ENVIRON CONSERV SPAR CHRIS PACE 410 WILLOUGHBY AV STE 105 JUNEAU, AK 99801-1795 ) " #4 Questions an: requests for information - Eider CO and A V~ ) > , ) Subject: Questions and requests for information - Eider CO and AIO Date: Wed, 09 Feb 2000 17:18:52 -0900 From: Jack Hartz <jack_hartz@admin.state.ak.us> Internal Organization: Alaska Oil & Gas Conservation Commission To: Eric Ding <DingER@BP.com> CC: Stephen F Davies <steve_davies@admin.state.ak.us> , Robert Crandall <bob _ crandall@admin. state. ak. us> , Diana Fleck <diana _ fleck@admin. state. ak. us> Eric, The public hearing was noticed to the public and scheduled for March 28, 2000. I believe the notice is on our web site and should have the deadline for public comment. I will include the link to our site. The staff has put together some questions for your consideration and preparation for the hearing. You can make a supplemental submission to your application whenever the information is ready. I will be out of town for two weeks starting 2/11 so if you have any questions call steve Davies at 793-1224 or Bob Crandall at 793-1230. Call or email me if you are unable to open the attachments. Jack Hartz c::-~::-:~::::-~::::-:~~::~:~:::~·:~:::-::~~~::·~::::::-::=:::::-::~~:~::-:::::~:::-~::~~.::.::::-::~:::::-:::::::-:::-~:::~::=::~:::-::-:~~::::-::~::::,:::::::-:-:::::::~~~::~::-::~::~::::::::::~::.~~::~::-:~::-~.:~:~:-::~:~:::::::~:~~~:'::::::::~::-:~~:::::-::-::::-:':::::::::::::-::-:~:::-:::J oil and 9a,s conservation commission Public Meeting Schedule 8,10,14,16,23, & 28 February, 2000 Under the Open Meetings Act [AS 44.62.310], notice is given that the Alaska Oil and Gas Conservation will meet in public meetings on February 8, February 16, and February 23, 2000 at 9:00 AM, and February 10, February 14, and February 28, 2000 at 1 :30 PM in the Commission's Conference Room in Anchorage, Alaska. Full Notice Public Hearing Schedule No Public Hearings Scheduled Possible Public Hearings 28 March, 2000 BP Exploration (Alaska) Inc. by letter dated January 27, 2000, has petitioned the Alaska Oil and Gas Conservation Commission under 20 AAC 25.520 to hold a public hearing to present testimony to establish pool rules and allow enhanced recovery operations on an area basis in the Eider Pool, Endicott Field, Duck Island Unit on the North Slope of Alaska. Full Notice 21 March, 2000 ARCO Alaska, Inc. by letter dated February 3,2000, has requested an 101'2 2(1)/00 5: 18 PM ) 0) AOGCC February 7, 2000 EIDER CO / AIO QUESTIONS AND REQUESTS FOR ADDITIONAL INFORMATION 1. Well 2-30NEI02 produces from which sand(s)? 2. For the 2-56A1EIOl and 2-30AlEI02 wells, please provide a listing of perforations within each reservoir sand. 3. Please provide horizontal and vertical permeability estimates for the upper, middle and lower sands. 4. Do you anticipate significant permeability variations? If so, why? 5. What was the original pressure of the field? (Exhibit F2 indicates it was equivalent to the bubble point.) 6. Since production stopped, have you seen any recovery of pressure in either well? (Please provide supporting data). 7. Do existing pressure or production data indicate good pressure communication between the two existing wells? 8. What will be the injection strategy once enhanced recovery operations start? (Will voidage be balanced, or will water be over-injected to restore the field to pressure above the bubble point?) 9. What are the ultimate recovery impacts ofre-pressurization versus having maintained original pressure throughout the life of the field? 10. How will the proposed injection strategy maximize sweep efficiency in the three reservoir intervals? 11. What are the potential ultimate recovery impacts of additional drilling within the delineated portion of the reservoir? (Should spacing rules accommodate additional wells? At what spacing?) 12. Do you foresee any more penetrations within the Eider Oil Pool at this time? 13. What is your assessment of the extent of the oil accumulation down dip of the currently delineated Eider Oil Pool? 14. Will work continue to evaluate the extent of the down dip oil accumulation? In what form? OR/GINt L L (Geology):\ Correspondence_and_Notes\Eider\AOGCC_ Questions.doc #3 ) ) Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: Eider Pool, Endicott Field, Duck Island Unit - Pool Rules and Area Injection Order BP Exploration (Alaska) Inc. by letter dated January 27, 2000, has petitioned the Alaska Oil and Gas Conservation Commission under 20 AAC 25.520 to hold a public hearing to present testimony to establish pool rules and allow enhanced recovery operations on an area basis in the Eider Pool, Endicott Field, Duck Island 'U nit on the North Slope of Alaska. A hearing will be held at the Alaska Oil and Gas Conservation Commission, 3001 Porcupine Drive, Anchorage, Alaska 99501, at 9:00 AM on March 28, 2000, in conformance with 20 AAC 25.540. All interested persons and parties are invited to present testimony. If you are a person with a disability who may need a special modification in order to comment or to attend the public hearing, please contact Diana Fleck at 793-1221 before March 21,2000. Robert N. Christenson, P.E. Chair Published FebruaryS. 2()()() ADN ^O# 020 14024J11 ) \) .. L\4 q v· \1 ì 0 I ~ Nhchorage Daily News Affidavit of Publication 1001 Northway Drive, Anchorage, AI( 99508 Ad # Date Puchase Order Edition Account Price Per Day 274122 02/04/2000 02014024 ON STATE OF ALASKA THIRD JUDICIAL DISTRICT Eva Alexie, 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 dming 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. C Leg a I C I e rk(_~C:LCl2-=-~~"-_______ Subscribed and sworn to me before this date: ----~~--¿?~-~L?~--------- Notary Public in and for the State of Alaska. Third Division. Anchorage, Alaska MY COMMISSION EXPIRES: ¡;[Þ ~ :;2tJtf-- ;/-g. ' ------~:_------------ \l((f({({(((r.- /'~~~~~ ~P://¿~';. 2 /' ~~-~~~):.~~ := :'(1) Þùat IC (: :::: Ä" -.. -- ~~. --..~~: ~ ~ . .. OFA(þ..9.. :y ~ . . . . . . . \"\"\ ./.J.J ~.t- ') "\ '\ :JJ}J/)) J n1) STOF0330 $64.50 $64.50 Notice of· PUblk~~Or'in~.. ..1 ST. A... TEO.'::. .Ä.. C:A:.. S KÞ:."...' .'.'" \ AloskaOilandGos . I. ,.Cbns~rvoti.on. ,.C..~01m.!,is,~i~n. ,.··.1 Re:'Eïder Field Pool Rwles , ond AreCl InlectionOrder, i ~DU~klslandUnit ...', ..... 'i ftBP Explo.ration ,.. (Alci"l<Jq)·1 'r1'I'I'1c. Qy.letter ßotfJd,.}ØQ,\:': ¡C\r~·. 27, , 2000, ,has. 'p.etit Iql),eq ¡:tMe' ..Alosk.o.Oil. Ò\idi.'ëi:~.d:$:, '.Conservation Coml:\1ts~,p,1'\ '..under 20 AAC 25.520 ro'!,rió~CI ,a pub~ic h"earing tQPre~en,I' testimony to establlSfl ¡:lad! I rules Qnd allow enh~nced recovèrv operatløhs on an , area I:>asls' In' the,e.lder Field. in the DUCk". 1..'51.0.n. d I Unit 0 n the North SlOpE of Alaska.. ,: .. :.; I t:-.. h~6ring ~illbehe¡ci'(¡~1 th~ Alask'a,.:Oilanø,~dsl, ::"r,~..n(.1t:on CommlssIOI1', jljCl1 l-'"rCuPII'" Dr.." \ ...r,u,orog", t.'O!,~,~ ?9:'lji 01 '; 1)1) l. M ,)t'o Ma r,:r, 18 201:/0 I,n "(.ûnl~(r't,,,,,~t;( "",It., ,~I(I '~.AC· 25,'540,:'AU,· íhtere9'ted," ¡Sersons are.,'.lnvitedfo presenttestlmonv. " . If YOU' areqlperson with 0.; disabHitv., whom·oy' neeq. 01, special mOdific.otion in \ order to testifY or 'to .attend t~e pUblic hearing, please contact Diana Fleck at 7.93· 1221 nO loterthoh Màrch '21. 2000. Is/Robert N. Christenson, P.E., Choir ' AO-02014023 . Pub: Feb. 4, 2000 DRI I McGraw Hill Randall Nottingham 24 Hartwell Lexington, MA 02173 ) ) PIRA ENERGY GROUP LIBRARY 3 PARK AVENUE (34th & PARK) NEW YORK, NY 10016 ~M<I OVERSEAS SHIPHOLDING GRP ECON DEPT 1114 AV OF THE AMERICAS NEW YORK, NY 10036 NY PUBLIC LIBRARY DIV E GRAND CENTRAL STATION POBOX 2221 NEW YORK, NY 10163-2221 ALASKA OFC OF THE GOVERNOR JOHN KATZ STE 518 444 N CAPITOL NW WASHINGTON, DC 20001 ARENT FOX KINTNER PLOTKIN KAHN LIBRARY WASHINGTON sa BLDG 1050 CONNECTICUT AV NW WASHINGTON, DC 20036-5339 US MIN MGMT SERV CHIEF OC5 STATS & INFO 381 ELDEN 5T MS 4022 HERNDON, VA 20170-4817 LIBRARY OF CONGRESS STATE DOCUMENT SECTION EXCH & GIFT DIV 10 FIRST ST SE WASHINGTON, DC 20540 US DEPT OF ENERGY PHYLLIS MARTIN MS EI823 1000 INDEPENDENCE SW WASHINGTON, DC 20585 TECHSYS CORP BRANDY KERNS PO BOX 8485 GATHERSBURG, MD 20898 US GEOLOGICAL SURVEY LIBRARY NATIONAL CTR MS 950 RESTON, VA 22092 DPC DANIEL DONKEL 1420 NORTH ATLANTIC AVE, STE 204 DAYTON BEACH, FL 32118 SD DEPT OF ENV & NATRL RESOURCES OIL & GAS PROGRAM 2050 W MAIN STE #1 RAPID CITY, SD 57702 AMOCO CORP 2002A LIBRARY/INFO CTR POBOX 87703 CHICAGO, IL 60680-0703 ILLINOIS STATE GEOL SURV LIBRARY 469 NATURAL RESOURCES BLDG 615 E PEABODY DR CHAMPAIGN, IL 61820 LINDA HALL LIBRARY SERIALS DEPT 5109 CHERRY ST KANSAS CITY, MO 64110-2498 ALFRED JAMES III 107 N MARKET STE 1000 WICHITA, KS 67202-1811 MURPHY E&P CO ROBERT F SAWYER POBOX 61780 NEW ORLEANS, lA 70161 UNIV OF ARKANSAS SERIALS DEPT UNIV LIBRARIES FAYETTEVillE, AR 72701 CROSS TIMBERS OPERATIONS SUSAN LILLY 210 PARK AVE STE 2350 OKLAHOMA CITY, OK 73102-5605 ') ) DWIGHTS ENERGYDATA INC JERLENE A BRIGHT DIRECTOR ) PO BOX 26304 OKLAHOMA CITY, OK 73126 IOGCC POBOX 53127 OKLAHOMA CITY, OK 73152-3127 R E MCMILLEN CONSULT GEOL 202 E 16TH ST OWASSO, OK 74055-4905 OIL & GAS JOURNAL LAURA BELL POBOX 1260 TULSA, OK 74101 GAFFNEY, CLINE & ASSOCIATES LIBRARY 16775 ADDISON RD STE 400 ADDISON, TX 75001 GAFFNEY, CLINE & ASSOC., INC. LIBRARY 16775 ADDISON RD, STE 400 ADDISON, TX 75001 BAPI RAJU 335 PINYON LN COPPELL, TX 75019 MARK S MALlNOWSKY 15973 VALLEY VW FORNEY, TX 75126-5852 US DEPT OF ENERGY ENERGY INFORMATION ADMINISTRATION MIR YOUSUFUDDIN 1999 BRYAN STREET STE 1110 DALLAS, TX 75201-6801 DEGOL YER & MACNAUGHTON MIDCONTINENT DIVISION ONE ENERGY SQ, STE 400 4925 GREENVILLE AVE DALLAS, TX 75206-4083 JERRY SCHMIDT 4010 SILVERWOOD DR TYLER, TX 75701-9339 STANDARD AMERICAN OIL CO AL GRIFFITH POBOX 370 GRANBURY, TX 76048 CROSS TIMBERS OIL COMPANY MARY JONES 810 HOUSTON ST STE 2000 FORT WORTH, TX 76102-6298 PRITCHARD & ABBOTT BOYCE B BOLTON PE RPA 4521 S. HULEN STE 100 FT WORTH, TX 76109-4948 SHELL WESTERN E&P INC K M ETZEL POBOX 576 HOUSTON, TX 77001-0574 ENERGY GRAPHICS MARTY LINGNER 1600 SMITH ST, STE 4900 HOUSTON, TX 77002 H J GRUY A TTN: ROBERT RASOR 1200 SMITH STREET STE 3040 HOUSTON, TX 77002 PURVIN & GERTZ INC LIBRARY 2150 TEXAS COMMERCE TWR 600 TRAVIS ST HOUSTON, TX 77002-2979 RAY TYSON 1617 FANNIN ST APT 2015 HOUSTON, TX 77002-7639 CHEVRON PAUL WALKER 1301 MCKINNEY RM 1750 HOUSTON, TX 77010 BONNER & MOORE LIBRARY H20 2727 ALLEN PKWY STE 1200 HOUSTON, TX 77019 OIL & GAS JOURNAL BOB WILLIAMS 1700 W LOOP SOUTH STE 1000 HOUSTON, TX 77027 PETRAL CONSULTING CO DANIEL L LIPPE 9800 RICHMOND STE 505 HOUSTON, TX 77042 MARK ALEXANDER 7502 ALCOMITA HOUSTON, TX 77083 MARATHON OIL CO GEORGE ROTHSCHILD JR RM 2537 POBOX 4813 HOUSTON, TX 77210 UNOCAL REVENUE ACCOUNTING POBOX 4531 HOUSTON, TX 77210-4531 EXXON EXPLORATION CO. T E ALFORD POBOX 4778 HOUSTON, TX 77210-4778 EXXON EXPLOR CO LAND/REGULATORY AFFAIRS RM 301 POBOX 4778 HOUSTON, TX 77210-4778 CHEVRON USA INC. ALASKA DIVISION ATTN: CORRYWOOLlNGTON POBOX 1635 HOUSTON, TX 77251 PETRINFO DAVID PHILLIPS POBOX 1702 HOUSTON, TX 77251-1702 ) ) PHILLIPS PETR CO ALASKA LAND MGR POBOX 1967 HOUSTON, TX 77251-1967 PHILLIPS PETROLEUM COMPANY W ALLEN HUCKABAY PO BOX 1967 HOUSTON, TX 77251-1967 WORLD OIL MARK TEEL ENGR ED POBOX 2608 HOUSTON, TX 77252 EXXONMOBIL PRODUCTION COMPANY J W KIKER ROOM 2086 POBOX 2180 HOUSTON, TX 77252-2180 EXXON MOBIL PRODUCTION COMPANY GARY M ROBERTS RM 3039 POBOX 2180 HOUSTON, TX 77252-2180 PENNZOIL E&P WILL D MCCROCKLIN POBOX 2967 HOUSTON, TX 77252-2967 CHEVRON CHEM CO LIBRARY & INFO CTR POBOX 2100 HOUSTON, TX 77252-9987 MARATHON Ms. Norma L. Calvert POBOX 3128, Ste 3915 HOUSTON, TX 77253-3128 ACE PETROLEUM COMPANY ANDREW C CLIFFORD PO BOX 79593 HOUSTON, TX 77279-9593 PHILLIPS PETR CO JOE VOELKER 6330 W LP S RM 492 BELLAIRE, TX 77401 ) ) PHILLIPS PETR CO ERICH R. RAMP 6330 W LOOP SOUTH BELLAIRE, TX 77401 ), ) PHILLIPS PETR CO PARTNERSHIP OPRNS JIM JOHNSON 6330W LOOP S RM 1132 BELLAIRE, TX 77401 TEXACOINC R Ewing Clemons PO BOX 430 BELLAIRE, TX 77402-0430 WATTY STRICKLAND 2803 SANCTUARY CV KATY, TX 77450-8510 TESORO PETR CORP LOIS DOWNS 300 CONCORD PLAZA DRIVE SAN ANTONIO, TX 78216-6999 INTL OIL SCOUTS MASON MAP SERV INC POBOX 338 AUSTIN, TX 78767 ROBERT G GRAVELY 7681 S KIT CARSON DR LITTLETON, CO 80122 DIANE SUCHOMEL 10507D W MAPLEWOOD DR LITTLETON, CO 80127 GEORGE G VAUGHT JR POBOX 13557 DENVER, CO 80201 AMOCO PROD CO LIBRARY RM 1770 JILL MALLY 1670 BROADWAY DENVER, CO 80202 C & R INDUSTRIES, INC. KURT SAL TSGAVER 1801 BROADWAY STE 1205 DENVER, CO 80202 US GEOLOGICAL SURVEY LIBRARY BOX 25046 MS 914 DENVER, CO 80225-0046 JERRY HODGDEN GEOL 408 18TH ST GOLDEN, CO 80401 NRG ASSOC RICHARD NEHRING POBOX 1655 COLORADO SPRINGS, CO 80901-1655 RUBICON PETROLEUM, LLC BRUCE I CLARDY SIX PINE ROAD COLORADO SPRINGS, CO 80906 JOHN A LEVORSEN 200 N 3RD ST #1202 BOISE, 10 83702 R UI ANALYTICAL JERRY BERGOSH POBOX 58861 SALT LAKE CITY, UT 84158-0861 TAHOMA RESOURCES GARY PLAYER 1671 WEST 546 S CEDER CITY, UT 84720 US GEOLOGICAL SURVEY LIBRARY 2255 N GEMINI DR FLAGSTAFF, AZ 86001-1698 MUNGER OIL INFOR SERV INC POBOX 45738 LOS ANGELES, CA 90045-0738 LA PUBLIC LIBRARY SERIALS DIV 630 W 5TH ST LOS ANGELES, CA 90071 ) ') BABSON & SHEPPARD JOHN F BERGQUIST POBOX 8279 VIKING STN LONG BEACH, CA 90808-0279 ANTONIO MADRID POBOX 94625 PASADENA, CA 91109 ORO NEGRO, INC. 9321 MELVIN AVE NORTHRIDGE, CA 91324-2410 76 PRODUCTS COMPANY CHARLES BURRUSS RM 11-767 555 ANTON COSTA MESA, CA 92626 TEXACOINC Portfolio T earn Manager R W HILL POBOX 5197x Bakersfield, CA 93388 US GEOLOGICAL SURVEY KEN BIRD 345 MIDDLEFIELD RD MS 999 MENLO PARK, CA 94025 SHIELDS LIBRARY GOVT DOCS DEPT UNIV OF CALIF DAVIS, CA 95616 H L WANGENHEIM 5430 SAWMILL RD SP 11 PARADISE, CA 95969-5969 ECONOMIC INSIGHT INC SAM VAN VACTOR PO BOX 683 PORTLAND, OR 97207 US EPA REGION 10 LAURIE MANN OW-130 1200 SIXTH AVE SEATTLE, WA 98101 MARPLES BUSINESS NEWSLETTER MICHAEL J PARKS 117 W MERCER ST STE 200 SEATTLE, WA 98119-3960 DEPT OF REVENUE OIL & GAS AUDIT DENISE HAWES 550 W 7TH A V STE 570 ANCHORAGE, AK 99501 FAIRWEATHER E&P SERV INC JESSE MOHRBACHER 7151 ST #4 ANCHORAGE, AK 99501 GUESS & RUDD GEORGE LYLE 510 L ST, STE 700 ANCHORAGE, AK 99501 STATE PIPELINE OFFICE LIBRARY KATE MUNSON 411 W 4TH AVE, STE 2 ANCHORAGE, AK 99501 TRUSTEES FOR ALASKA 725 CHRISTENSEN DR STE 4 ANCHORAGE, AK 99501 DUSTY RHODES 229 WHITNEY RD ANCHORAGE, AK 99501 DEPT OF REVENUE BEVERLY MARQUART 550 W 7TH A V STE 570 ANCHORAGE, AK 99501 FORCENERGY INC. JIM ARLINGTON 310 K STREET STE 700 ANCHORAGE, AK 99501 ) ) YUKON PACIFIC CORP JOHN HORN VICE CHM 1049 W 5TH AV ANCHORAGE, AK 99501-1930 PRESTON GATES ELLIS LLP LIBRARY 420 L ST STE 400 ANCHORAGE, AK 99501-1937 ALASKA DEPT OF LAW ROBERT E MINTZ ASST ATTY GEN 1031 W 4TH AV STE 200 ANCHORAGE, AK 99501-1994 GAFO GREENPEACE PAMELA MILLER 125 CHRISTENSEN DR. #2 ANCHORAGE, AK 99501-2101 DEPT OF NATURAL RESOURCES DIV OF OIL & GAS TIM RYHERD 550 W 7th AVE STE 800 ANCHORAGE, AK 99501-3510 DEPT OF REVENUE OIL & GAS AUDIT FRANK PARR 550 W 7TH AVE STE 570 ANCHORAGE, AK 99501-3540 BRISTOL ENVIR SERVICES JIM MUNTER 2000 W. INT'L AIRPORT RD #C-1 ANCHORAGE, AK 99502-1116 HDR ALASKAINC MARK DALTON 2525 C ST STE 305 ANCHORAGE, AK 99503 BAKER OIL TOOLS ALASKA AREA MGR 4710 BUS PK BLVD STE 36 ANCHORAGE, AK 99503 N-I TUBULARS INC 3301 C Street Ste 209 ANCHORAGE, AK 99503 ) ') ANADARKO MARK HANLEY 3201 C STREET STE 603 ANCHORAGE, AK 99503 ALASKA OIL & GAS ASSOC JUDY BRADY 121 W FIREWEED LN STE 207 ANCHORAGE, AK 99503-2035 ANADRILl-SCHLUMBERGER 3940 ARCTIC BLVD #300 ANCHORAGE, AK 99503-5711 AKJOURNALOFCOMMERCE OIL & INDUSTRY NEWS ROSE RAGSDALE 4220 B Street Ste #210 ANCHORAGE, AK 99503-5911 DEPT OF NATURAL RESOURCES PUBLIC INFORMATION CTR 3601 C STREET STE 200 ANCHORAGE, AK 99503-5948 DEPT OF NATURAL RESOURCES DIV OF Oil & GAS JIM STOUFFER 3601 C STREET STE 1380 ANCHORAGE, AK 99503-5948 DEPT OF NATURAL RESOURCES DIV OF Oil & GAS JAMES B HAYNES NATURAL RESRCE MGR 3601 C ST STE 1380 ANCHORAGE, AK 99503-5948 DEPT OF NATURAL RESOURCES DIV OF Oil & GAS JULIE HOULE 3601 C ST STE 1380 ANCHORAGE, AK 99503-5948 DEPT OF NATURAL RESOURCES DIV OIL & GAS WILLIAM VAN DYKE 3601 C ST STE 1380 ANCHORAGE, AK 99503-5948 DEPT OF NATURAL RESOURCES DIV OF Oil & GAS BRUCE WEBB 3601 C ST STE 1380 ANCHORAGE, AK 99503-5948 ) ) FINK ENVIRONMENTAL CONSULTING, INC~ THOMAS FINK, PHD ) 6359 COLGATE DR. ANCHORAGE, AK 99504-3305 ) ARLEN EHM GEOL CONSL TNT 2420 FOXHALL DR ANCHORAGE, AK 99504-3342 JAMES E EASON 8611 LEEPER CIRCLE ANCHORAGE, AK 99504-4209 US BUREAU OF LAND MNGMNT ANCHORAGE DIST OFC DICK FOLAND 6881 ABBOTT LOOP RD ANCHORAGE, AK 99507 RUSSELL DOUGLASS 6750 TESHLAR DR ANCHORAGE, AK 99507 STU HIRSH 9630 BASHER DR. ANCHORAGE, AK 99507 AMERICA/CANADIAN STRATIGRPH CO RON BROCKWAY 4800 KUPREANOF ANCHORAGE, AK 99507 US BUREAU OF LAND MNGMNT ANCHORAGE DIST OFC PETER J DITTON 6881 ABBOTT LOOP ROAD ANCHORAGE, AK 99507 US BLM AK DIST OFC RESOURCE EVAL GRP ART BON ET 6881 ABBOTT LOOP RD ANCHORAGE, AK 99507-2899 TRADING BAY ENERGY CORP PAUL CRAIG 5432 NORTHERN LIGHTS BLVD ANCHORAGE, AK 99508 THOMAS R MARSHALL JR 1569 BIRCHWOOD ST ANCHORAGE, AK 99508 UNIVERSITY OF ALASKA ANCHORAGE INST OF SOCIAL & ECON RESEARCH TERESA HULL 3211 PROVIDENCE DR ANCHORAGE, AK 99508 US MIN MGMT SERV RICHARD PRENTKI 949 E 36TH AV ANCHORAGE, AK 99508-4302 US MIN MGMT SERV AK OCS REGIONAL DIR 949 E 36TH AV RM 110 ANCHORAGE, AK 99508-4302 US MIN MGMT SERV RESOURCE STUDIES AK OCS REGN KIRK W SHERWOOD 949 E 36TH AV RM 603 ANCHORAGE, AK 99508-4302 US MIN MGMT SERV FRANK MILLER 949 E 36TH A V STE 603 ANCHORAGE, AK 99508-4363 REGIONAL SUPRVISOR, FIELD OPERATNS MINERALS MANAGEMENT SERVICE ALASKA OCS REGION 949 E 36TH A V STE 308 ANCHORAGE, AK 99508-4363 US MIN MGMT SERV LIBRARY 949 E 36TH AV RM 603 ANCHORAGE, AK 99508-4363 US MIN MGMT SERV RESOURCE EVAL JIM SCHERR 949 E 36TH AV RM 603 ANCHORAGE, AK 99508-4363 JOHN MILLER 3445 FORDHAM DR ANCHORAGE, AK 99508-4555 ) ) USGS - ALASKA SECTION LIBRARY 4200 UNIVERSITY DR ANCHORAGE, AK 99508-4667 ) ) CIRI LAND DEPT POBOX 93330 ANCHORAGE, AK 99509-3330 ANCHORAGE TIMES BERT TARRANT POBOX 100040 ANCHORAGE, AK 99510-0040 ARCO ALASKA INC JOANN GRUBER A TO 712 POBOX 100360 ANCHORAGE, AK 99510-0360 ARCO ALASKA INC LEGAL DEPT MARK P WORCESTER POBOX 100360 ANCHORAGE, AK 99510-0360 ARCO ALASKA INC STEVE BENZLER A TO 1404 POBOX 100360 ANCHORAGE, AK 99510-0360 ARCO ALASKA INC LIBRARY POBOX 100360 ANCHORAGE, AK 99510-0360 ARCO ALASKA INC MARK MAJOR A TO 1968 POBOX 100360 ANCHORAGE, AK 99510-0360 ARCO ALASKA INC LAND DEPT JAMES WINEGARNER POBOX 10036 ANCHORAGE, AK 99510-0360 ARCO ALASKA INC SAM DENNIS ATO 1388 POBOX 100360 ANCHORAGE, AK 99510-0360 ARCO ALASKA INC SH EllA ANDREWS A TO 1130 PO BOX 100360 ANCHORAGE, AK 99510-0360 PETROLEUM INFO CORP KRISTEN NELSON POBOX 102278 ANCHORAGE, AK 99510-2278 ARCO ALASKA INC KUP CENTRAL WELLS ST TSTNG WELL ENG TECH NSK 69 POBOX 196105 ANCHORAGE, AK 99510-6105 AL YESKA PIPELINE SERV CO CHUCK O'DONNELL 1835 S BRAGAW - MS 530B ANCHORAGE, AK 99512 AL YESKA PIPELINE SERV CO PERRY A MARKLEY 1835 S BRAGAW - MS 575 ANCHORAGE, AK 99512 AL YESKA PIPELINE SERV CO LEGAL DEPT 1835 S BRAGAW ANCHORAGE, AK 99512-0099 US BUREAU OF LAND MGMT OIL & GAS OPRNS (984) J A DYGAS 222 W 7TH A V #13 ANCHORAGE, AK 99513-7599 ANCHORAGE DAILY NEWS EDITORIAL PG EDTR MICHAEL CAREY POBOX 149001 ANCHORAGE, AK 99514 DAVID W. JOHNSTON 320 MARINER DR. ANCHORAGE, AK 99515 JWL ENGINEERING JEFF LIPSCOMB 9921 MAIN TREE DR. ANCHORAGE, AK 99516-6510 ) ') NORTHERN CONSULTING GROUP ROBERT BRITCH, P.E. 2454 TELEQUANA DR. ANCHORAGE, AK 99517 GERALD GANOPOLE CONSULT GEOL 2536 ARLINGTON ANCHORAGE, AK 99517-1303 DAVID CUSATO 600 W 76TH A V #508 ANCHORAGE, AK 99518 ASRC CONRAD BAGNE 301 ARCTIC SLOPE AV STE 300 ANCHORAGE, AK 99518 ARMAND SPIELMAN 651 HILANDER CIRCLE ANCHORAGE, AK 99518 HALLIBURTON ENERGY SERV MARK WEDMAN 6900 ARCTIC BLVD ANCHORAGE, AK 99518-2146 OPST AD & ASSOC ERIK A OPSTAD PROF GEOL POBOX 190754 ANCHORAGE, AK 99519 JACK 0 HAKKILA POBOX 190083 ANCHORAGE, AK 99519-0083 ENSTAR NATURAL GAS CO BARRETT HATCHES POBOX 190288 ANCHORAGE, AK 99519-0288 MARATHON OIL CO OPERATIONS SUPT POBOX 196168 ANCHORAGE, AK 99519-6168 ) ) MARATHON OIL CO BRAD PENN POBOX 196168 ANCHORAGE, AK 99519-6168 U NOCAL KEVIN TABLER POBOX 196247 ANCHORAGE, AK 99519-6247 UNOCAL POBOX 196247 ANCHORAGE, AK 99519-6247 EXXON MOBIL PRODUCTION COMPANY MARK P EVANS PO BOX 196601 ANCHORAGE, AK 99519-6601 BP EXPLORATION (ALASKA), INC. MARK BERLINGER MB 8-1 PO BOX 196612 ANCHORAGE, AK 99519-6612 BP EXPLORATION (ALASKA) INC SUE MILLER POBOX 196612 MIS LR2-3 ANCHORAGE, AK 99519-6612 BP EXPLORATION (ALASKA) INC PETE ZSELECZKY LAND MGR POBOX 196612 ANCHORAGE, AK 99519-6612 BP EXPLORATION (ALASKA) INC BOB WILKS MB 5-3 POBOX 196612 ANCHORAGE, AK 99519-6612 BP EXPLORATION (ALASKA) INC MR. DAVIS, ESQ POBOX 196612 MB 13-5 ANCHORAGE, AK 99519-6612 BP EXPLORATION (ALASKA) INC INFO RESOURCE CTR MB 3-2 POBOX 196612 ANCHORAGE, AK 99519-6612 ) ) AMSINALLEE CO INC WILLIAM 0 VALLEE PRES PO BOX 243086 ANCHORAGE, AK 99524-3086 L G POST O&G LAND MGMT CONSULT 10510 Constitution Circle EAGLE RIVER, AK 99577 D A PLATT & ASSOC 9852 LITTLE DIOMEDE CIR EAGLE RIVER, AK 99577 PINNACLE STEVE TYLER 20231 REVERE CIRCLE EAGLE RIVER, AK 99577 DIANA FLECK 18112 MEADOW CRK DR EAGLE RIVER, AK 99577 DEPT OF NATURAL RESOURCES DGGS JOHN REEDER POBOX 772805 EAGLE RIVER, AK 99577-2805 COOK INLET KEEPER BOB SHA VELSON PO BOX 3269 HOMER, AK 99603 COOK INLET VIGIL JAMES RODERICK POBOX 916 HOMER, AK 99603 PHILLIPS PETR ALASKA OPERATIONS MANAGER J W KONST P 0 DRAWER 66 KENAI, AK 99611 RON DOLCHOK POBOX 83 KENAI, AK 99611 ) ) DOCUMENT SERVICE CO JOHN PARKER POBOX 1468 KENAI, AK 99611-1468 KENAI PENINSULA BOROUGH ECONOMIC DEVEL DISTR STAN STEADMAN POBOX 3029 KENAI, AK 99611-3029 NANCY LORD PO BOX 558 HOMER, AK 99623 PENNY VADLA PO BOX 467 NINILCHIK, AK 99639 BELOWICH COAL CONSULTING MICHAEL A BELOWICH HC31 BOX 5157 WASILLA, AK 99654 PACE SHEILA DICKSON POBOX 2018 SOLDOTNA, AK 99669 JAMES GIBBS POBOX 1597 SOLDOTNA, AK 99669 KENAI NATL WILDLIFE REFUGE REFUGE MGR POBOX 2139 SOLDOTNA, AK 99669-2139 VALDEZ PIONEER POBOX 367 VALDEZ, AK 99686 AL YESKA PIPELINE SERVICE CO VALDEZ CORP AFFAIRS SANDY MCCLINTOCK POBOX 300 MSf701 VALDEZ, AK 99686 ') ) VALDEZ VANGUARD EDITOR POBOX 98 VALDEZ, AK 99686-0098 UNIV OF ALASKA FAIRBANKS PETR DEVEL LAB DR V A KAMATH 427 DUCKERING FAIRBANKS, AK 99701 NICK STEPOVICH 5432NDAVE FAIRBANKS, AK 99701 RICK WAGNER POBOX 60868 FAIRBANKS, AK 99706 JACK HAKKILA POBOX 61604 FAIRBANKS, AK 99706-1604 C BURGLlN POBOX131 FAIRBANKS, AK 99707 FAIRBANKS DAILY NEWS-MINER KATE RIPLEY POBOX 70710 FAIRBANKS, AK 99707 FRED PRATT POBOX 72981 FAIRBANKS, AK 99707-2981 DEPT OF NATURAL RESOURCES DIV OF LAND REG MGR NORTHERN REGION 3700 AIRPORT WAY FAIRBANKS, AK 99709-4699 K&K RECYCL INC POBOX 58055 FAIRBANKS, AK 99711 ) ASRC BILL THOMAS POBOX 129 BARROW, AK 99723 RICHARD FINEBERG PO BOX416 ESTER, AK 99725 UNIV OF ALASKA FBX PETR DEVEL LAB SHIRISH PATIL 437 DICKERING FAIRBANKS, AK 99775 UNIVERSITY OF ALASKA FBKS PETR DEVEL LAB DR AKANNI LAWAL POBOX 755880 FAIRBANKS, AK 99775-5880 SENATOR LOREN LEMAN STATE CAPITOL RM 113 JUNEAU, AK 99801-1182 DEPT OF ENVIRON CONSERV SPAR CHRIS PACE 410 WILLOUGHBY AV STE 105 JUNEAU, AK 99801-1795 ) ) #2 ) ) ®:- - .-. . February 3, 2000 Jack Hartz Alaska Oil and Gas Conservation Commission 3001 Porcupine Drive Anchorage, AK 99501-3192 Re: Eider Pool Rules and Area Injection Order Applications Dear Jack, Here are the Appendixes to the Eider Pool Rules that you requested. Please let me know if there is anything further we can do. If you have any questions, please feel free to contact me at 564-5594 or Steve Fell at 564- 4036. Sincerely, ~~ L.- ? D Eric R. Ding ENS Reservoir Engineer Attachment .. RECEIVED FEB 04 2000 Alaska Qij & Gas Cons. Commission Andicnge ) ) Appendix A #1 ) ® -- - .-. . . January 28, 2000 Jack Hartz Alaska Oil and Gas Conservation Commission 3001 Porcupine Drive Anchorage, AK 99501-3192 Re: Eider Pool Rules and Area Injection Order Applications Qear Jack, As discussed, please find enclosed draft copies of the Eider Pool Rules and Area Injection Order applications. I appreciate your willingness to review these informally. The documents have been signed by Gary Osborne, so if you decide that they do meet your criteria, please consider accepting them as an official application at that time. If this is not acceptable or you would like changes made we will be glad to resubmit an official application at that time. If you have any questions, please feel free to contact me at 564-5594 or Steve Fell at 564- 4036. Sincerely, ~~.~- c-\ ' K. V' -.--.---______ Eric R. Ding ENS Reservoir Engineer RECE\VED JAW 28 LOOO Attachment þJaska OH & Gas Cons. comm\ssion Mchorage ) ) The rules hereinafter set forth apply to the following described area of the proposed expanded Duck Island Unit, Eider Field, referred to in this order as the affected area: Eider Field Rules UMIAT MERIDIAN T12N R16E Section 27: All state lands Section 28: NE 1/4 of SE 1/4 Rule 1 FIELD and POOL NAME. The field is in the proposed expanded Duck Island Unit and the pool is the Eider Pool. Rule 2 POOL DEFINITION. .,. The Eider Oil Pool is defined as the accumulation of hydrocarbons that are common to and which correlate with the accumulation in the BP Exploration 2-56A1EI01 well between the measured depths of 17,338 and 17,928 feet. Rule 3 WELL SPACING. (a) The Commission may administratively approve modifications to well spacing when justified. Rule 4 CASING AND CEMENTING REQUIREMENTS. (a) Surface casing, to provide for proper anchorage, for preventing uncontrolled flow and to protect the well from the effects of permafrost thaw-subsidence or freeze-back loadings, shall be set at least 500 measured feet below the base of the ice-bearing permafrost. Sufficient cement shall be used to fill the annulus behind the casing to at least the mud line. (b) Alternate means for maintaining the integrity of the well from the effects of permafrost thaw-subsidence and freeze-back may be administratively approved by the Commission upon application and presentation of data which show the alternatives are appropriate, based upon accepted engineering principles. (c) Conductor casing is not required. (d) Formation leak-off tests are not required below structural and intermediate casing. Rule 5 DIVERTER SYSTEM. A diverter system is not required on the structural casing. Rule 6 COMPLETION PRACTICES. Wells completed for production or injection in the Eider Participating Area may utilize casing strings or liners cemented through the productive intervals and perforated, ) ') slotted liners, screen wrapped liners or open hole methods, or combination thereof. The Commission may administratively approve alternate completion methods where appropriate. Rule 7 PRESSURE SURVEYS. (a) Prior to regular production, a pressure survey shall be taken on each well. (b) The datum for all pressure surveys is 9,700 feet subsea. (c) A minimum of one bottom-hole pressure survey shall be run in the field annually. The survey in part (a) of this rule may be used to fulfill the minimum requirements. (d) Pressure survey, as used in this rule may mean a static bottom-hole pressure survey, pressure transient survey, or open hole pressure tests such as repeat formation tests and drill stem pressure tests. (e) Data from all pressure surveys shall be filed with the Commission on Form 10-412 within 45 days after the survey is taken. Rule 8 POOL-WIDE WATERFlOOD PROJECT. (a) A waterflood project is approved for the Eider Pool. (b) Well 2-56A1EI01 is approved as a water injection well in the Eider Pool. (c) The Commission may approve additional wells as water injectors upon written application. (d) Annual fluid withdrawal from the Eider Pool shall not exceed annual fluid injection by more than 100/0. Rule 9 GAS-Oil RATIO EXEMPTION. Wells producing from the Eider Pool are exempt fr~m the gas-oil ratio limits set forth in 20 MC 25.240(b). Rule 10 COMMON PRODUCTION FACiliTIES AND COMMINGLING. (a) Production from the Eider Pool may be commingled on the surface with production from the Endicott Oil Pool prior to custody transfer. (b) Each producing well completed in the Eider Pool shall be tested at least once a month for a minimum of four hours at a stabilized flow rate. (c) The Commission may require more frequent or longer well tests if the summation of the calculated monthly production volume for all pools is not within 10% of the actual LACT metered volume. (d) The operator shall provide the Commission with a well test and allocation report at the end of each calendar year. The report will consist of'a thorough analysis of all surveillance data relative to the well test system and the resulting allocation factors. Rule 11 GAS OFFTAKE. (a) Gas produced from the Eider Participating Area may be utilized as fuel in the Endicott Field facilities. (b) Gas produced from the Eider Participating Area not utilized as fuel will be injected into the Endicott Pool gas cap. '" ) ') Rule 12 ADMINISTRATIVE ACTION. On its own motion or upon written request, the Commission may administratively amend this order so long as the change does not promote waste, jeopardize correlative rights, and is based on sound engineering principles. .' ') ) BP EXPLORATION BP Exploration (Alaska) Inc. 900 East Benson Boulevard P.O. Box 196612 Anchorage, Alaska 99519-6612 (907) 561-5111 January 27, 2000 Robert N. Christenson, Chairman Alaska Oil and Gas Conservation Commission 3001 Porcupine Drive Anchorage, AK 99501-3192 Re: Eider Area Injection Order Dear Mr. Christenson, BP Exploration respectfully requests that an area injection order be issued for the Eider pool. The following information as required by Alaska Administrative Code 20 AAC 25.402 parts (c) to (h) Enhanced Recovery Operations is provided. (c) 1. A plat showing the location of the proposed injection well 2-56A/EI01 is attached. The nearest production well that penetrates the injection zone is 2-30A/EI02. Plugged back holes 2-56/EI01, 2-56A/PB1, 2-56A/PB2, 2-30A/PB1, and 2- 30A/PB2 are also shown. 2. There are no other operations within one-quarter miles from 2-56A/EI01, BPXA is the operator and 1000/0 working interest owner, and the State is the surface owner. 3. No affidavit required. 4. Approval is requested to inject seawater and/or produced water into the Ivishak formation in 2-56A/EI01. The Eider development plan is for a producer-injector pair, injecting water into 2-56A/EI01 and producing from 2-30A/EI02. The depletion plan for the Eider Pool entails maintaining pressure by replacing voidage. A full description of the operation is provided in the application for Pool Rules. 5. The Eider Pool is an Ivishak reservoir at approximately 9700' subsea. 6. At Eider, the Ivishak Formation is subdivided into three zones: the Upper Sand (approximately 55' thick); the Middle Shale (approximately 75' thick); and, the Lower Sand (approximately 90' thick). The injection interval is bounded above by HRZ/Shublik and below by Kavik Shale. 7. Well 2-56A/EI01 logs are on file with the AOGCC. 8. A well completion diagram is supplied for 2-56A/EI01. A mechanical integrity test will be performed on well 2-56A/EI01 prior to operation (see (d) below). 9. Injection water will be seawater and/or produced water from Eider, Sag Delta North, or Endicott. Maximum expected injection rate is 17,000 bwpd. Formation water analyses are not currently available, but will be taken to evaluate water compatibility. Based on injection performance history at Endicott and Sag Delta North water compatibility is not expected to be a problem. 10. Estimated average wellhead injection pressure is 2200 psia, maximum 2700 psia. :"'"~ r ,(~ r ~ -~ J [ r\ ~...~ t"" [ ~ V L 2j "::3 2.000' Part of the BP Amoco Group LII~n¡r0 Oil' & Gas COilS. Commission .' ,hi...,,\-< . Anchorage Robert Christiansen Alaska Oil and Gas Conservation Commission Page 2 January 27,2000 ) ) 11. Injection will take place into the Ivishak Formation at approximately 9700 feet subsea. No freshwater strata are endangered. This determination was made previously in the DIU Area Injection Order #1 (Finding #4), issued on May 30, 1986 and amended on April 24, 1991 (Finding #4). The strata into which fluids will be injected will accept fluids at injection pressures which are less than the fracture pressure of the injection strata and their confining formations. This has been verified on 2-56A1EI01 with an injectivity test. 12. An analysis of the formation water is not currently available (see (c) 9). 13. Not applicable. 14. Reservoir simulation shows an expected incremental increase in ultimate recovery of 1.5 to 3.0 MMstb of oil as a result of the proposed water injection into 2-56A1EI01. Recovery from primary depletion is estimated at 15%, while recovery with water injection is estimated at 27-380/0, an incremental recovery of 12-23%. (d) A mechanical integrity test will be performed on 2-56A1EI01 in accordance with 20 AAC 25.412 (c) prior to operation, and the commission will be given sufficient notice so that a representative of the commission may witness the test. Pressures will be monitored in the casing/tubing annulus and reported on the monthly injection report (Form 10-406). (e) The Commission will be notified of any casing/tubing pressures or changes that exceed those indicated. (f) As required by the Commission. (g) An application for Sundry Approval (Form 10-403) for the proposed change in 2-56A1EI01 status will be submitted prior to operation. (h) All wells within one-quarter mile of 2-56A1EI01 (2-56/EI01, 2-56A1PB1 , 2-56A1PB2, 2- 30A/PB1, and 2-30A/PB2) are plugged and abandoned, with the exception of production well 2-30AlEI02. If you have any questions, please feel free to contact me at 564-5361 or Steve Fell at 564-4036. Sinc~ ¡¡z{ ()j~. Gary M. Osborne ENS Subsurface Manager ~........ Attachments EIDER FIELD AREA NK-38 / ----Ð / ~// // / ,,// ~/ 29 S~ ( b ., ------- ~ RESOLUTION ISLAND NK-42 2-56/E1-01 28 2-56NEI01 Q... I Proposed DIU Expansion r------------ 2~~/ NK-23 ~~--------e Existing Production Well _ _O~-2,5Q/lUIIL_~-68[S.œ I Existing DIU I . D Existing Eider PA o Proposed Eider PA Expansion 33 NK-25 o ADL034634 (Tract 12) is located in Township 12N Range 16E, Umiat Meridian Map Scale: 1- = 2000' \ AD L03f4634 Proposed Injection well 26 2-30/0-09 ~ \ J4 o 2-64/U-1 J I I 2-601U-13 ~ / /OAJ BPXA Cartography/1-5-2000/sm14206.dgJ TREE: 4 ): /5000 psi ~çameron WELLHEA_. '11" /5000 psi / Gen.V ) RT L .:V= &5.1' SF ELEV= 16.6' MAX. DEV. = 68 degrees. Ave hole angle 60 degrees 95/8",47#, L-80 BTC Casing e SSSV LANDING NIPPLE I 5 HES "HXQ" (3.813" ID) 1 74 1 7079' I .4 ~ ALL GLV's HAVE BTM INTERGAL LATCHES CAMCO 4.5" X 1" KGS-2-LS 7",29#, l-80, BTC Casing MD 6 5102 5 8748 4 10902 3 12320 2 13699 1 15040 41/2", 12.6#, l-80 BTC Tubing 4-112" "X" NIPPLE (HES) (3.813" ID) TVD ss 3490 5242 6294 7002 7702 8394 Angle 60 62 61 59 58 58 115108 1 ~ V 7" BAKER S-3 PACKER 115119 1 ð - Baker (3.875" 1.0.) ! 4-112" "X" NIPPLE (HES) (3.813" 10) 4-112" "XN" NIPPLE (HES) (3.725 10) 4-112" WLEG \ PERFORATING SUMMARY Reference log: Sperry MWD Dual GRlElec Ma~ Resist. Dated 5/19/98 Date Size SPF Status INTERVAL 5/25/98 27/8 6 Open 17714 ·17904 ) I ZXP Liner Packer . Top of 7" window 41/2", 12.6#, 13 Chr, NSCT Liner PBTD I 17930 I 6" bit on btm of liner 117988 I ....JII::;:i;1'::¡:i~:~i·:i~I~·::li::i:~ Date By Comments 5/27/98 gm COMPLETION 115142 1 115164 1 115176 I ELMO 1 1 115652 I r 15958 1 ENDICOTT WELL: 2-56/Eider-01 API NO: 50-029-22863-03 COMPLETION DIAGRAM BP EXPLORATION (ALASKA), West Sak Formation ) f\10 -;:t 1 D ~ V ;a FìPP L-J cArl Cr0 ) TABLE K-l salinity Calculated From the SP'Log for Tertiary and Cretaceous Waters (ppm NaCl) Upper sagavanirktok Formation Lower sagavanirktok Formation Ugnu Formation Sag Delta 3 Sag Delta 4 Sag Delta 7 Sag Delta 10 Duck Island 1 Duck Island 2 Duck Island 3 Average 15,000 20,000 21,000 13,000 14,000 27,000 17,000 22,000 29,000 No SP log in this interval 29,000 46,000 42,000 22,000 25,000 42,000 11,000 15,500 30,000 18,000 24,000 32,000 KekiktuK Formation Waters 22,000 19,000 25,000 46,000 22,000 18,000 25,000 Chemical analyses of Kekiktuk Formation water samples are available from three of the seven wells in the Endicott Field and are shown in Table K-2. Salinities of water samples range from 23,000 to 28,000 ppm NaCl with an average of 25,000 ppm. SP salinities for both. the oil and water columns have been calcula,ted for comparison. The overall average of the SP values is 30,000 ppm. This water is above the salinity limit for USDWs. TABLE K-2 NaC1 Equivalent (ppm) Salinities, Endicott Reservoir Sag 3 Sag 7 Duck 1 Saq 10 Sag 4 Duck 2 Duck 3 Me thodo!Qgy SP Oil 23,000 14,000- 46,000 23,000 48,000 Column 21,000 SP Water 42,000 26,000 21,000 24,000 34,000 42,000 Column Chemi.cal 23,000 28,000 24,000 Analysis of Water Sample -32- ~~,~.....~:_":'~'::":":- ) ÀIÐ*f f\pP~G-A'nð~ Figure N-2 Prudhoe Bay, EOA, Calculated Wireline Salinities (See Also Figure H-l) Interval Well Subsea Depth Calculated TDS (ppm) T-8 7-10-14 (-2666) 22,985 14-5 (-2827) 24,419 6-4 (-2885) 31,240 7-6 (-2966) 35,708 1-6 (-3053) 32,220 9-6 (-3286) 44,651 T-5 7-10-14 (-3011) 14,784 14-5 (-3162) 13,353 6-4 (-3295) 12,503 7-6 (-3306) 14,208 1-6 (-3468) 17,816 9-6 (-3706) 22,222 T-3 7-10-14 (-3616) Hydrocarbons 14-5 (-3757) Hydrocar bons 6-4 (-3897) Hydrocar bons 7-6 (-3916) 11,829 1-6 (-4083) 16,620 9-6 (-4316) 40,086 U. Ugnu 7-10-14 (-5271) 36,509 14-5 (-5353) 57,059 6-4 (-5500) 55,621 7-6 (-5474) 43,890 1-6 (-5728) 40,865 9-6 (-5991) 48,844 L. Ugnu 7-10-14 (-5461) 31,453 14-5 (-5602) 44,105 6-4 (-5710) 31,514 7-6 (-5651) 42,320 1-6 (-5878) 38,054 9-6 (-6426) 46,332 W. Sak 7-10-14 (-5898) 15,878 14-5 (-6042) 27,427 6-4 (-6090) 20,194 7-6 (-5957) 29,790 1-6 (-6058) 47,834 9-6 (-6806) 34,632 39 ... " 'ì, ! The rules hereinafter set forth apply to the following described area of the proposed expanded Duck Island Unit, Eider Field, referred to in this order as the affected area: Eider Field Rules UMIAT MERIDIAN T12N R 16E Section 27: All state lands Section 28: NE 1/4 of SE 1/4 Rule 1 FIELD and POOL NAME. The field is in the proposed expanded Duck Island Unit and the pool is the Eider Pool. Rule 2 POOL DEFINITION. The Eider Oil Pool is defined as the accumulation of hydrocarbons that are common to and which correlate with the accumulation in the BP Exploration 2-56A1EI01 well between the measured depths of 17,338 and 17,928 feet. Rule 3 WELL SPACING. (a) The Commission may administratively approve modifications to well spacing when justified. Rule 4 CASING AND CEMENTING REQUIREMENTS. (a) Surface casing, to provide for proper anchorage, for preventing uncontrolled flow and to protect the well from the effects of permafrost thaw-subsidence or freeze-back loadings, shall be set at least 500 measured feet below the base of the ice-bearing permafrost. Sufficient cement shall be used to fill the annulus behind the casing to at least the mud line. (b) Alternate means for maintaining the integrity of the well from the effects of permafrost thaw-subsidence and freeze-back may be administratively approved by the Commission upon application and presentation of data which show the alternatives are appropriate, based upon accepted engineering principles. (c) Conductor casing is not required. , (d) Formation leak-off tests are not required below structural and intermediate casing. Rule 5 DIVERTER SYSTEM. A diverter system is not required on the structural casing. Rule 6 COMPLETION PRACTICES. Wells completed for production or injection in the Eider Participating Area may utilize casing strings or liners cemented through the productive intervals and perforated, '3 ) ') BP EXPLORATION BP Exploration (Alaska) Inc. 900 East Benson Boulevard P.O. Box 196612 Anchorage, Alaska 99519-6612 (907) 561-5111 November 2, 1999 Mr. Ken Boyd, Director Division of Oil and Gas Alaska Department of Natural Resources 550 W. 7th Ave~, 8te. 800 Anchorage, AK 99501 Re: Application to Enlarge the Duck Island Unit Area, Enlarge the Eider Participating Area and Contract the Prudhoe Bay Unit Area, the Lisburne Participating Area and Niakuk Participating Area. Dear Mr. Boyd: "':-~ Pursuant to the provisions of 11 AAC 83.351,11 AAC 83.371 and Articles 2 and 11 of the Duck Island Unit Agreement ("DIUA") and Articles 5.3 and 9.1, 'of the Prudhoe Bay Unit Agreement ("PBUA"), BPExploration Alaska, Inc. ("SP,XA") hereby petitions the Department of Natural Resources ("DNR") to approve the enlargement of the Duck Island Unit Area and enlargement of the Eider Participating area whilst simultaneously contracting the Prudhoe Bay Unit Area, the Lisburne Participating Area and Niakuk Participating Area. The requested effective date for this application is January 24, 1999. The Attachments note the approval of the Duck Island Working Interest Owners, the Eider Participating Area Owner, the Prudhoe Bay Working Interest Owners, the Lisburne Participating Area Owners and the Niakuk Participating Area Owner for this simultaneous DIU Area enlargement and PSU Area contraction. The successful drilling and testing of the Eider II well has confirmed the presence of hydrocarbons in the proposed enlargement area. As demonstrated by the attached documents, the enlarged Eider P A has been reasonably proven capable of producing or contributing to the production of hydrocarbons in paying quantities sufficient to justify its development and production. BPXA respectfully submits this application for the enlargement of the proposed Eider P A based upon the belief that it will promote the conservation of natural resources, promote the prevention of economic and physical waste, and provide for the protection of all parties of interest in accordance with 11 AAC 83.303. Eider PA Enlargement Application November 2, 1999 ) ') Promote Conservation. The enlargement of the Eider PA provides the most practical method to producing the oil and gas resources by providing an efficient, integrated approach of development which maximizes recovery while minimizing negative impacts on other resources. Prevent Economic and Physical Waste. The production of the hydrocarbons through existing production and processing facilities within the DIU will prevent economic and physical waste. The oil and gas resources can be accessed via existing facilities and any future well can be drilled from the existing drill pads. Protect the Parties in Interest. The parties in interest, including the State, will be protected with an equitable allocation of production by lease and with such development there will be an increase in the economic well-being of the state as a result of the increases revenues received. Environmental Costs and Benefits. The proposed enlarged Eider P A and the use of existing DIU infrastructure will reduce the development costs per barrel, which in turn allows for the economic development of this reservoir. The following attachments are provided jn support of this application for the enlargement of the Eider Participating Area: Attachment 1 Agreement to enlarge the DIU Area and Eider PA Attachment 2 Notice of Intent to contract PBU Area. Agreement to contract PBU Area, Lisburne P A and Niakuk P A Plan of Development and Operations Map of Proposed Enlarged Participating Area Eider Reservoir Type Log Top Reservoir Structure Map Type Cross-section Eider Special Supplemental Provisions to the DIUOA Tract Participation within Eider Participating Area Waiver letter from Owner of PBU Tract 33 (ADL 034634 ) The attached ballots have details of revised Exhibits to the DIU and PBU Agreements. We will submit final versions of Exhibits upon application approval. Attachment 3 Attachment 4 Attachment 5 Attachment 6 Attachment 7 Attachment 8 Attachment 9 Attachment 10 Enclosed are an original and five copies of the non-confidential portions of this application, two copies of the confidential portions of this application. BPXA requests that the geological, geophysical, and engineering portions of this application are kept confidential under AS 38.05.035(9)(C). : -. . ~ ) ) Eider PA Enlargement Application November 2, 1999 Also enclosed is a check for $1000 in respect of the fees due for this simultaneous enlargement and contraction. If you have any questions or require additional information, please contact Mr. Steve Fell at (907) 564-4036 or Mr. GarY Osborne at (907) 564-5361. Any correspondence should be sent to the following: Steve Fell, Endicott Business Team Leader BP Exploration (Alaska) Inc. P.O. Box 196612 900 East Benson Blvd. Anchorage, Alaska 99519-6612 Sincerely, Jß~!JJ Ken J. Konrad Eastern North Slope Business Unit Leader - IAR1L-1v Attachments ,. . .;.0- '10 1'"., . ') ) Attachment 1 BP EXPLORAnON BP Exploration (Alaska) Inc. 900 East Benson Boulevard , P.O. Box 196612 , Anchorage, Alaska 99519-6612 (907) 561-5111 ~. . ,,'.,\'.::,' " <. , .; Septèrnger,:jJ'..~:.~99 . . ~ . ~ I ," ....: ", . , ' ,', :' .' "";""~'" .".,' '. , . ?: :,..:.~ :<-;;.:I,;,:~<. :...., ".' , .:-:~ . , Ducklslariª':':µnit ,Working Interest Owners . Endicott' ~~tticipati~g 'A~ea .,Wotking Interest Owners.· ' Eider .Particlpating '~rea Worki~g Interest Owners (Per a~äêh~d ;~istribution ·~i~tr'::,·>', ' .,' ' . , "~ '.' .. Re:BallôfAgreerrieot l:()rgX¡>ansion ofthe Duckl!llåndUriitandt_ . "::'~!i~~.r.;:~.~¡,.~,",'~,;!.}dp~ll.rig~~rêå'" ,'," " ,f,}!;;";¡.'~:>;"".'.'~):· , . :.' ",,'"::,,:.:·i,'o\'-.:,::.;,",.' ..' " : """"':. ". . Dear\'Vo{kin~j'll1terest bwners:~ . . "":;, .i..: " ' " :·,:'~'::'.'::'{'j¡r;\:<,::;f)",:,~ ::,,'';:'':''':':,,','' ,,':, ,. . " , '.. ":,., :. '. .', ' "'. :,..' ':'. ," ,\ . The ,~Òq~Qs~~.)~·~liø~i;When Jujly/exeç~ed, willapproy~:~~40~~ér~::.e~~ånsicj·r¡:of :::¡, ' . .. the':p'ûëï<?j~fä~~a:'ÚrîJf~DØ 'Eidår'.participatingJ\rea añCl';à:"simuJtaneo'û~,"~o~åõrå' coritråëtìÇ)Ij¡';Qf~tH'e'PrÜâho(i'B,ay :Unit~ Lisburne. Partícip:~tírig'..Arêaâhd : Niakuk . Participåt.l~g~"Ar.ea,:',~H'colÍting·ent .up~n approval by the',; State' of Alaska~', '.', De~~,;~1i~~~~;~~~~~t~~~fes~·"',',.',,,: ,,'.'," ',};~X;:b:.::,;~2~l: ' .. Thå':::èxpånst'ê>n"\YiII.ailôviBP 'Exploration' (Alaska), lric.':tò"pródlice·'fróm~that,'·· portion of ,th~ ~¡de~ ReselVoir which is currently located within the· Prudhoe Bay Unit. Thê:expansion and contraction affects only ADL ',34634, a1 000/0 BPXA owned lease which straddles the boundary between Duck Island Unit and Prudhoe Bay Unit. ' The proposed expansion and contraction has been reviewed by BPXA, Arco Alaska, Inc. and Exxon Corporation, as working interest owners in both the Prudhoe Bay and Duck Island Units. Please note this is a replacement Ballot for one sent on August 9, 1999 which had omitted Amoco as a WIO. Amoco is still a separate legal entity for Endicott. We would therefore appreciate your execution of the enclosed ballot. Please return the executed original to: Steve Fell BP Exploration (Alaska), Inc. P. O. Box 196612 Anchorage, AK 99519-6612 Fax: (907) 564-4187 ... .. . ... R Ple~ c~1I me at 564-5583 0rSteve at 564-4036 if you have any question~. /,' . . . Sin'::erely, r 'J~'--' , ) ) , , DonaidJ~:,Dunhåm., 'III :,.'." Commercial Mâháger,: Easteff(Nòrth Slope' cc: Steve Fell ,:_1" . .~!'" } , .. . }o ,";¡. ,,' ..... .' .. ,. .)'~. ..':".~~..,:.:,' ~~'.' '.:. , . ~'Ô{'~~~~:*~~;:~"'~~I~~t',,~l ~~~ : :':ì~ ::,.\:" .'< ~·;·p'~.f:'·::<)~5~;.:~ " '>'>(":<:::;,;; ','.", ......J, . 0,,\;;10' I '.,. ...;: "_:~:'C:_:'",": :.;;~;: :~~.' '-'::~:;:il::::~1ii:;~;<:)i~, .' ;' ~.':,~;;·:~~::;'~:'~~i~~r~~ " I ~'. .... .',: .' '.:1-. . I.' .",. " . . . " ' ;~.;~~)~~:~:;~~~::;~~,:;;;:."~,:~ ~'.\~' :~;:', :~~~:. .", . , . . ,.... .. ",,:~~;,<;:!{,;;' ::'~;:~i':1'i# ') ì ..'::,:/:"" ·,·DIU Ballot 99-073 ::' , '~~~~'Eider PABallot 99-001' " Ballot 'Agreement.:for.::'~änsi()h':,of '{/:' ," - . the Duck'lsl~nd~rìlt 'àn~':Eld~r',P~iè~p·~ting Area . hereinafter referred to as the "Parties..··'·,';··· . :IJ", ....:' .,-.,·~eW·~·<' -'" '.."~ì;':.:¡'ii;:;,,··.'-¡,·í.:::','/\",·,.';!;:~;f"":.:;,:,·;·'i,···,·l~.·:';.).rì,:: . ... ... . .. .. .. .. .... . .., ··,<i' ....; ..: ',,),'( /:,,-,!<>jk.j};ei:(~}", ::~;:,;V!··t?!·t:2!'rj~ WHEREAS, the Eider.PA'has been fOfmed w,ithin thé(DIU·.tò:allow.sustainedÆi·::::}~:;:;~+~<:i~.,:,·; ····i~: ptodllctiòri fronÜhe Eider';Rese~o¡r>âñdi ';0tJ}1îf.~.;" ';-(;:, ;~:,\'tf"i:'" .. ,~(2¡~~¥\!'i{;i¡:~;r~ WHEREAS, '~e Eid~r'·~~s~rv~:;'~:~·~~~~i~!ZI:~if~:i'k'·tò'e~:·i';~~~1\·:··..'·:1 into NE1ASE1A'~ Section ~28/T. ·12'·N~~·R~!·ßE!;t\J$í't~K;1~ãi·~ñ::cônsištin{i'of~Õ'~~~~~~~?t~1:~\;"":' ->h~i{:\ (. .' ft L '. :~ 'h" .~.' . ~~S· ·~yb! ':.~~" 'I~ ~ Yi·" ~.~~ ~):;J~~~~ä·1itTt-;;<·r ;;.;~:.~~;, , ~;·¡:.':'7::·L{~;,,: " ; acre~, mor~:or le~s h~~el.~~ e~,~!..c~~{" µ .~eçt~I~"..~: ;~~n~ ,,';:';,::.!.~,., .>~,-:.'.~<.::::::'. ·':":>}':~·'::;\:";":i;;·~::i<:.:',' ',\,.':: . -, .'..'. ~,' ,:...,.' :!!,,·,;~t~:~·. :\"·:~~~:;~~~1if~~~_~~~\"~'~~4~,'·,··}:·:t;~~,~;,.. . ~, . ,\' . <"~'. ; '1I.~r.' WHEÅEÂS;\thEtS~bj~Pt'dïndl~ih~à163ìWliich~~;::~',7~'i}fq':.··' ~ currentlY,lieswithin,:rà¢.~3 :~;~~!l~l~l~;~:~Jf' :,~E:'> .' ,""~~~1t'~,': . ...,.. WHER~AS~··'~yq~o~~r~øns~wør~:þrq~ÙC.é.~ :frbm'~~l 'n~t~~~Jdér·.:Á~serVoir·,Þn:~t·",::,,~.;,. /?~~~ . " '>'...' ,., .'. .' ., 'h,,~,.."",r~"". ,,",,,,,,,,,,,,,,,~..,., '. ,.., ,..."','..."',.',.,,,',..'..... ..."" Subject Land'startirig'as of~anOafY2 9~9 ,- . r ,...., ' :.·~~~Jtõ~'t..,:~...~-..,·.· 'Í':Í\i1~~"t..'"-',,·7~"~::~!:..~~,..':; ;.~~¡,.~~-.¡ . . ;,' r" .. ", ;,-", ... "..; ,.u".-;;\..>~~t:; 7.~:;.~;,,'::::_ ~¡~~~;::< ,: ¿r,:A_:;';.~:W ( .. .. .; :i~f~~!.~¡hA," ;,1 NOW, THEREFORE, 'pursuant to :Seë~ic>h '4;4.;6f thê',:DuèKJsland Unit OperatÍllg:\ " Agreement, and Section 42.9·~f the Eider 'Sp'èciài P:¡'oYision~to the Duck Island Unit Operating Agrêemerit~ the' pårtieš""'å:gf,ê~;:~~s)ålr'òW~:"'> " .:, , , . ~'~.' : ,: .' '; .,:: ' ,"'1.,',.'::." . 1. The DIU and Eider PA shall both'be expanded to include the Subject Land, effective on or after January 24, 1999. BP Exploration (Alaska) Inc. is lessee of the Subject Lands and consents to the expansion of the Unit Area as described herein. This expansion shall be effective only upon approval by the State of Alaska Department of Natural Resourçes (DNR) of the simultaneous exclusion of the' Subject Land from the Prudhoe Bay Unit, and any participating area therein. 2. The DIU Operator shall submit to the DNR an application for expansion as described in the preceding paragraph. The application shall state that the . Working Interest Owners'approval of the expansion shall be effective only upon approval by DNR of the simultaneous inclusion of the Subject Land in the DIU and Eider PA and the contraction and exclusion of the Subject \ . ) ) Ballot Agreement for Expansion of the Duck Island Unit and Elder Participating Area . DI U Ballot 99-073 . , · Elder P A Ballot 99-001 .. .. Lands from the'Prudhoe Bay·Unit, Niakuk Participating'::Area and Lisburne " Partièipating Area, effectivE;} on or after January 24,1999. . . .' ' .' ,- " . . . , 3. · Thefollowirige)(~ibits ,à~~q~e~,:~~ this,BallotA9r.~~,m~r),ft~fleçt~hê revised ,:~,:¡)/),.:.. ':<';,:(>,¡~;;:~ . bouridarieŠ.ålÍclêhårigÉÍ~'i~ithé.··.()1 U lease.ownersh\p¡î~UponåþprOValb~i;gÞfuikj;~A;;;,Ð,~' DN R 'of the';'åbove :referenêed ··application~· the exhi bits'j Îšted bêlowshån )';; ~~:;i~~~)'~~i,::,:'':< ¿:'./:~;~:t¿;;;¡;~ '.Exhibit B,'>·,'" \':'>~:~Schedùlë'Of;Ownership'of ~Oil and Gas..lritere·sts\~:~~t~!?tfé:~:· -<·/i%~iJ. "".';"E~~i~!t;~:~',,·;,¡:~;:;;~~t~~~1Zl:'~otingin~~K;~~:;~~£:f':i'~~,:~!1:~~,~~~ì,,\'l::1 .,"" ."" .' "'''(Revlsed 8/1/99) " " ~"~"""" """.. ,...., .. ...."".,.'"'" C" '. .' ; . ,. " 'i.E~~¡f!~§FA~':¡i§t~9i~;;~~f(P~#~g ~rê~;~b~~~í~: ',1:;~:.f;;f?·~:i~~~~;;' . " ",', " r>~ExI')'~~;fI.O;B·:,'~r.ra,.ct;;¡~~a.IiI1~ "otlng,:lntèr~st ',Particip'atiol1stJ;'~~ç~~: ..,.,'?~ UnitVoting"lnterests~ åS'shownJn Exhibit R'. .':.'::":::",:".,,'~, .. ., . 4. This Ballot Agreement shall be effective upon approval by an affirmative vote of 80 percent o~ the Unit Voting Interest, 95 percent of the Area Voting Interest and 75 percent of the Eider Area 'V~ting Interest. 5. This Ballot Agreement may be executed in one or more counterparts, each of which shall be deemed an original, and all of which together shall . be construed as one and the same instrument. PAGE 2 PAGE 3 DIU EIDER PA Owners: BP E'f ÞClfTION (ALASKA) INC. By: ~, C ~ Title: . ,\ ,'_ ~ ftvOlicttJ4 (IQ,.{){ \ I. Date: '\\ g ¡ti11 AM,O~~~DUC~ION COMPANY By: r! ¡J ~ \\r Title: \'#'~tt~r fl»D\lt¡\r!r ¡Ij(t.(?f 6 ò'II"'q}I' Date: ~ &I~~ ~ \~~"J ~. ".f~, ::~:,:...:{. ;. :·::;;~~~¡~~~:~l::!i.~~;~,~':~.~:, .' . :: ,::>:':."~'. ;....~~;}<>.:.:..;~..,';...- .·.BP E~I1'-l')r;:J¥nON (ALASKA) I~C...<:.·::~'·:,;·~ . ·'.à~~\:~:.:::'·-~/~;,;~~ , . ...>. " ~. ,V - ~. .' :' ,.., . ." ··':~::·~·::·~)<:/>,'~f~~~::;~;}~~~.· ., " By ~ r . ,. - .... ,)...:~':t.(.:,}".." '~''''-.'.'''~':w.\ .. . ,'Y:-::." '~.. ..' . ~ ',.' . ,..···.".-;::.:~~~-~\\:~d~·'::'~~~~::~: . ..<:",.,,:.J)~le~.. \ W~ ff.JJO Ú((,J & (rJiJ\ '.' ",,: ': ,·w,;;;~~.: ~.~:' .",~>: . . '" .'" .......',..',..,.. Jl"'··'<·"'.t···,··,, ,",' '. .. 't ~î " .¡. . ",~~~~'"¡:;~fr'¡,~~" " .·..·.,··,.,·t·.. --'··'-'~'·"';D· . '. .... ~ 0' ,.' ,. . 1.' .,'. ....... ''':'\Sf:''''1:rl~~'~!xrt; ':.~,'.t'~~~U7.'" ,";;""""~ ">,,,)1", ate:' " " c. ," :. - · ',. ""'·"':~::;£'~ZIZ::i2:1( EXXON CORPORATION . " ..... ~ ..£f,.:"lf:;"r.·::·:> ~.:'1:"~ ..'~:" ..,../....:.......:...... ", .. - ~"..:;:;:.~:~.':. .~.. ,~:}~~:~f!!:~~~:·l~1~~~/:Îf$;~~: B ·B' . . '. .', Y. . ,,".. . ,',' y.' '- .' .... . ....,," '-'.,~.,. . ..' . . . _ . ,,-r . Date: '" ' Title: ': . ~ .,' .' "', : Date: By: Title: ' Date: ARCO ALASKA~:INC.. ' DIU6WNERS:'<:~~?..:\':' ... .' IN WITNESS WHEREOF, the Parties have executedthis Ballot Agreement on the date opposite their respective signatures. DI U Ballot 99-073· Eider P A Ballot 99-001 Ballot Agreement for Expansion of the Duck Island Unit and Eider Participating Area '~! ) PAGE 4 A~Oo.5fF¡.~N CO~PANY By. \.".~,,~ . ~f Title: '\~~ I (WOùt{wo. fLÐJ)ÇJI)) ù· .n~ Date: ~ \ a \rí\~ . t\~ '\"~rJC~\T · ,'t)v , ,~ \ 'J \ ' V ARCO-A~SKA; INC; BP E~lO~TI~N (ALA~~):1.~j:; ~t;'~:~< ~~~~Ü: B~: _.. . BY::) 0 ---": ""~'~"~:<;"~l~';~~;:<:~~;;;';~ Title: " , Title:·,· IW\.~~' (IJJ)I) (IJdi,~ r(td)S';::./1if,:~·y :,:/~::'n' ':,.,~~~}:;~:,;:{ , . ,.,. D :"~'.' 0\' n 'oCt ," ,}.\..'.: , \~:.: ':.'". " .:.~<~.'."::/, .~,. . . ',. ....;( =.: ''';' .':1'.; ":~,:;"7.;~:~~': 'Date .' . '.' .. " ate·· ',J I ~'>I'" .",.{.",O'·"""",'. "A~. ..~_."'.' . ....,. ..... ," ··1-wit .. . .:.;: . h " .~., ~.. ;= :.~' i~iiili,'~'¡ 'r..?'~" .~:".", '.1 "~~.~.~.;,.., ... ,",y,"",. ',...,_...._' .F..,[\:,r,~.:.~:c. ." By: 'Title:· Date: . '., DIU ENDICOTTPA OWNERS: DIU Ballot 99-073 . Eider P A Ballot 99-001 ': Ballot Agreement for Expansion of the Duck Islånd Unit and Eider Participating Area' , , ) ) a. DUCK ISLA.tD UNIT LOCATION MAP 'lIIu'o~r IlA D Ct/UK.CHI ~fA Russia .... <> .. ~. -~. ! ~ r:c: o <: I Duck Island Unit Boundary @ Tract Number 1 .5 0 2 MIles I ._.,....:..... .....~~.~.\.~......~.~..... o,A,.I~,...m DIU Exhibit Å .~ 18 ¡ II ' I¡~ tIS . I t5 1 '" 21 ¡ 22 I n ~ °n@ O:.p~4 L,,:~ lÅÒU)34æ I ! . 17 18 14 18 23 =- 20 1. 30 29 28 .@ ·28 ' Sf 32 ,-' ~ ® s: TIm TltH H \ 19 I . ADL017sö4 '- II 25 ~ TItM TlON ~: :! ! . ¡,1M ØPT.A~-29-1IMn1414Mut,;.n . _ _ .1-:.' ..c....J_ ~ - . I :}:':;;:-;- ~S~:--~"--"-~~,::·"-;1:;l;-~: - -.. ._~";.._ ". ". .- f·.,:,____. ,". . ·-~-"~·-T·"--~·...·,-::.·-~ :"- ::.~-- .. . .. -. . ,.,..-----.-- . .: ,<;~~~i(·i::r:, :'..': Unit Tract No. 1 Lease No. 047502 2 047503 3 047504 4 047505 5 047506 12 034634 13 034633 14 034636 EXHIBIT B DUCK ISLAND UNIT AGREEEMENT and DUCK ISLAND UNIT OPERATING AGREEMENT SCHEDULE OF OWNERSHIP OF O.lL & GAS INTERESTS (Revised 8/1/99) Legal Description T. 11 N., R. 17 E., U.M. Section 5: All Section 6: All Section 7: All Section 8: All T. 11 N., R. 17 E., U.M. Section 3: All Section 4: All Section 9: All Section 10: All T. 11 N., R. 17 E., U.M. Section 13: All Section 14: All T.11 N., R.17 E., U.M. Section 15: All Section 16: All T. 11 N., R. 17 E., U.M. Section 17: All T. 12 N., R. 16 E., U.M. Section 27: All Section 28: NE%SE1~ Section 34: NE%, EY2NW%, NW%SE%, E Y2SE% T. 12 N., R.16 E., U.M. Section 25: All Section 26: All Section 35: All Section 36: All T. 11 N., R. 16 E., U.M. Section 1: All Section 2: NE%, EY.2NW%, NW%NW%, NY2SE% Section 12: NY2NE% Unit Endicott Sag Net Working Interest Tract . PA Delta PA Elder PA Royalty Profit ORRI . Owner & Acreage "Acreage' Acreàge Acreage (%) Share (%) Percentage 2469,·' 2469 ° O' 12.5 None None Amoco 25.00 . . . . Exxon 50.00 Unocal 25.00 25~?~,.~:: . '.- '"-. -. o 12.5 None None Amoco Exxon Unocaf 25.00 50.00 25.00 -- -. .:~. _~;~:~f(~;~~~- - .- ;,~ . " 1280. :~::.1~~~'?M~' . .. .:'.,,::';'."'.,.:-_~,:,,':::.';;~.,,;~"i_.~:·_:~:.i"·.:_:.,,_,.,' - . . .: ~~-'-' ,:~£j!~blL~~t1j: ~f:~~~~ ;':; ·'L..O, . -!i ~'~:..'-:' ;.' ~ . -:. ~... -". -. - "- ~-~~:t~:\~{1; ·12.5 . None. : None· Exxon 100.00 1280·t.J· . . ~- -=;.:f: ;,;''''':-·t . ::~~~:_- .~-.:. ,... . ..:. ", ........:.....-... "- ".-':-'.- . . '. :12.5,·.' . None . None ~ ~ . :"{~i:':-' I . . Exxon . 100.00 Amoco 50.00 Unocal 50.00 BPXA 100.00 : ~h(t*~t¡:~;S¡: - '::~&~~~':r; -,~~t:~~: ¡J:f;~~~;l~(:.:: -~i;-i~;~:"~~~ .'.~ :;;1~.~._:~, .1,~ ,!,~~?i~;~ ;. None None ¡~~f '~~~~,~~ ':;~J,~:' None ,. ;~ ._'". ..' "I' 2560:{",;~ :: 2560,"." ';,1..6~.0~. . >';.::~.:.;:,:."..~.:.:~.t_,~_·.:_..~.._.~::..:.~..~.:,.~.:~ };/":::'> '. :.~< ~§" ;.;r '. -;.-~: - ---'..-::~-:;.;>'.:::-'> -~ .- - - . ;'..;.:'.';.:.;_~~~~.".:'.'~'~_;..:.·~.<.;·_:~.r.·.~~.~-._:.:.'.~ ", -;~ ,. ..."~ ,'.' "·~:_.~~_;::."~.:,~.~,:~.i.f.:...~';" ~:__. ..-:;. -. -' _ ~_: . _ '~ho:J":';'.';<...~":::':_"' -:': '.-~'-, ~-'J::"I'- :1,2.5.':: . "None BPXA 100.00 ." :;j.':: . . . ""~""- ~ . - ' -.":\~'- . '-~-'-:~' .'. - .< ~: . ._ 0. -. .",_ . . ···-::t;··!~:- 108Q:":;:.;· '-J~~O.::..:.·. o , o 12.5 ". None BPXA 100.00 --- . . " , ··0~:[~¡' ,-:':P.:-· :;:'. . '"'-' '.~: - ~-- . "::~'."~;.~. ~~:.. - ..:~,.:.I '. ~.:.. .':- ':. :: ~-". ~·:~ti.:·. .-:" _ _..or .. . ::,-_~·~~;~i~t~··.~·~f·~~>·:--:,~.~.?:~>-._.: -'::~:::..-...;:..:.:'-:--:-. -\', .~."--__.--_....;, ..~_~:._-.{- ..-'.::;'.~.-:.~.::~'.~... .~ -. BPXA ~wns an ove~riding royalty Interest equal to 75% of ali net :P~frtJ}~Ô~·-Þf~d~bt.ior·b~twée·n::ce·rtat~· tntriiriíu-~.~nd:~~im6m.leveIS of dally production from vanous leases In the Prudhoe Say Area. At this time,·the. overriding royalty Interest has not been merged with the underlying working interest. . _ . " .,.. '.'. . '.. . . . (8/1/99) PAGE 1 Unit Tract Lease No. No. 15 312828 16 312834 (8/1/99) EXHIBIT B DUCK ISLAND UNIT AGREEEMENT and DUCK ISLAND UNIT OPERATING AGREEMENT ~ SCHEDULE OF OWNERSHIP OF OIL & GAS INTERESTS (Revised 8/1/99) . Unit Endicott Sag Net Tract: > : , I'A .:,~ . Dètta PA Efde~ PA :RoyaftY.· . Profit : ORRI Working Interest Legal Description Acreage ··Acreage . ACÎ'éagè' Acreage· .'(%) Share ' ".,(%) .' & Percentage (General Location) 3067.49 2482.87 989.47 0 20.0· 79.59350 . None BPXA . 98.00 T. 12 N., R. 16 E., U.M Doyon .50 Sections 23 and 24 NANA 1.50 T. 12 N.. R. 17 E.. U.M. Sections 19, 20. 29, 30, 31, 32 and 33 Those portions ofT. 12 N.. R. 16 E., U.M, Sections 23 ~ and 24, and T. 12 N., R. 17 E., U.M., Sections 19, 20, 29. 30. 31. 32 and 33 within the Endicott and Sag Delta North Participating Areas as shown on the BP "'~ Exploration (Alaska) Inc. Survey Plat titled -Duck Island Unit (11-1-92)." (General Location) 1609.20 1609.20 48.87031 . None· ARCa 33.33 T. 12 N., R. 17 E.. U.M.. Section 35 Exxon 33.33 T. 11 N.. R. 17 E.. U.M.. Sections 2.11.12.13 and 14 Unocal 33.33 T. 11 N.. R. 18 E., U.M.. Sections 7 and 18 .. TOTAL ACREAGE 17585.69 16961.07 1149.47 680.00 _/ . " . -~. - " . . '~I:I. -I} . '.l- ,", PAGE 2 ) ) .. EXHIBIT,R DUCK ISLAND UNIT OPERATING AGREEMENT (As of 8/1/99) . UNIT AND PARTICIPATING AREA VOTING INTERESTS Unit Voting . Area Voting Interest (0/0) . Working Interest Owner .' " Interest (%) ,Endicott Amoco 8.9689 10.4940 ARCO Alaska, Inc. . 3.0502 .0234 ' BP Expl<?ration (Alaska) '43.7068 57.4281,' Doyon, Limited :. .0873 .1291 Exxon Corporati9n ',·.·;31~9061· ·21.0206: . NAN A Regional Corp , , ~2616 .3874 UNOCAL· ·12.0191 10.5174 Total 100.0000 100.0000 ,', '. '. " ",. .'1. EXHIBIT R (8/1/99) PAGE 1 .' .. ) ) EXHIBIT R - Backup . DUCK ISLAND UNIT OPERATING AGREEMENT (As of 8/1/99) CALCULATION OF UNIT VOTING INTERESTS Working Interest Owner " ' Amoco ARCO Alaska, Inc~ BP Exploration (Alaska) Doyon, Limited Exxon Corporation, NANA Regional Corp UNOCAL Total Unit Acreage Total Voting Interests EXHIBIT R - Backup (8/1/99) Unit . Tract ~o. Unit , Tract . Acreage 1 2 5 2469 2560 640 . ..;.~'.'... .,' 2469', :.., '2,' . ';"2560" ':3 ~:' '1'280 4 1280 16 1609.20 , .:! . ":',. Uni~Voting : Working' , . . '. . .,S;r.5>~~t~;~~)/(:!~,. Interest. Interest :U~Jt~cr~~ge';" '" .' (~etAcreag~ l;' . .(%) ".:':: .,~:(A~~~~,~'::"~:i~:I)"..,..: .·UnltA~r~ag~)::, . \ .. 15 3067.49 1.5 46.01235 46.01235 . 1 2469 25.00 617.25000 2 2560 25.00 640.00000 5 640 50.00 320.00000 16 1609.20 33.33 536.40000 2,113.65000 17,585.69000 25.00 61'7.25000', 25.00 ,640.00000\;::i> 50.00' .' 320~ÒÓÒÔÔ>'~'..", , 1 J571~250QO,i;:,::·, . ..'. , . . '.', :,·::ì}l~;;:;.:::Ù:i>t';;ii;¡-'::,: ,16 : 1ß09.20 33.33,'.,:53'6~400ÒO",~;{'". , ' ".12",1040 ;>.", ",,1 oo,OO;,;,1.:¡œ;:"" ,13' '·2560" 100.00 ".·,',::2,560:00000'1;};:·:'. , 14, :: '1080 .: ".,.. '100.00· ".',>';'1 ,oaô:òooôtf\:¡,:,,::' <.:15.., '.3067,.49 . 9a.00."··<'3.ÒÔ~~:14Ó2Ò-+;:" . ',." ' ".' i ·':!'::"':~~~'~t?~.~~~it,~,i:\",.. ,,15,: ,;3067.49 .50, :' ··,.15~33745.,:r.>." . . J~~~3!45(' . ;,'>~~~t\;:\~:~'~':::;::··'.\:·'·~ :..?~"",:., 50.00 '. . ,1 ,23,4~50000 .:: . ' ." '''').~~.,\.'¡ ,0111" .,' ,\. ' :,"! 50.00 . . . ',,~1 ,2ßO.~OOOOQ::>:':;-· '. '1 00.00 :,::·'.~'i'1.2â.tfòooòo;~':::~, ' 100.00 ' 1,28b~òooòo, 33.33 536.40000 5,610.90000 8.9689 3.0502 ,,' .·43.7068 ¡,()873 31.9061 .2616 12.0191 100.0000 PAGE 1 PAGE 2 EXHIBIT R - Backup (8/1/99) Tract Participations for the Endicott Participating Area as set out in Exhibit C to the Duck Island Unit Agreement and Duck Island Unit Operating Agreement. ,1 ' 22.3357 .2500 5.5840 2- .. ,19.6233 .2500 .. 4.9058 '6.: .0,084, . .5000 ~o'o'42 . 10.4940 . '.', ··'10.4940 : ~ :\".' " : ,,::16, . /.-.0,70,3· .3333 ., .0234 . :.0234 ,::,125}{':' ':<..:'; .0,675 1.0,0,00 . .0,675, . ,. 13::' . 26.760,9 1.0,0,00, , 26.7699 "14" ,- 5.291.1 1.00,00 ....... 5.2911· '. ":", ''''-~'. ~, :' . 15 25.82§2 .' " . .9800, '. 25.30,86,' . ".;:........ 57.4281" ";:"'5~'57.4281 '. .....: "', ,';15. :, '" 25~8~52, .0,050 .1291 ' . "/>::~1291 , .1,:>' : ,.22~3357, ' .50,00, 11.1679 :t·~,::;,', ',19.6233: '.50,00 '9.8,1.~7 , '3 ".' '··'·'·'~0036 .... 1.0,000 .0036 4' .0140 1.0000 .0140, 16 .0703 .3333 .0234 21.0206 21.0206 15 25.8252 .0150 .3874 .3874 1 22.3357 .2500 5.5839 2 19.6233 .2500 4.9058 5 .0084 .5000 .0042 16 .0703 .3333 .0235 10.5174 10.5174 100.0000 ·A~ea·Voting ·Interest (%)., . Tract . Parti.clpation (%) X WI "',, Unit Tract Tract ..... Participation Working No. :..' '" (%)*.:i :, . Interest * Total Voting Interests UNOCAL NAN A Regional Corp Exxon Corpor~tion Doyon, Limited BP Exploration (Alaska) ARCO Alaska, Inc.' Amoco Working Inter~st O~ner CALCULATION OF ENDICOTT PARTICIPATING AREA VOTING INTERESTS EXHIB'IT R - Back~p DUCK ISLAND UNIT'OPERATING AGREEMENT (As of 8/1/99) ') .. ) -@) EIDER PARTICIPATING AREA LOCAT10N MAP .,AU10ItT ffA (":) C/fUKC/f1 ~fA Russia ~ <> .. ~........ ! ~ a:: o ~ I Duck Island Unit Boundary @ Tract Number Elder PartIcIpating Area 1 .5 0 I I ~ 2 Miles fi1 I I .; ( .. ',':.11 ; :Ie : I Tl1H I ! :! TtON i iitM I EIPXA~7~14Hoep'.dI:n ~ I ~ I 18 I 17 18 18 18 20 21 22 14~ , '__ i~ ., . 2S I -,.' '.;:._~. I . 11 30 ME:.\~~ @\' 2S IE···· . ';:':: t£w;;:;~:.;;<);;:' . @ 25 , , i I 1 2S S1 32 35 Tt2N TlIN ~ ~ 1t 12L ADLOL7503·. ADl312834 G) 0 15' , 14 1S ~ . \~ S . '" 1Ó 11 '") 2IS 25 .\ ?35 ,/ " {",., :,'t"... "'-'--'--"~',_': .-' ---. - - . - . - " ·.··~~:;::<_·~r~r·_..:·_~._.~ -.': , . .~:~ . :~~ ~::', <:ir(.<". .: ,,,,,.....,:.~;~,-:',-,::.~,.:.,.~~;..:..'.',:,':-.'...~...,:':..c",'.:,:,'.:',:?,,',','..,.,-;'..~.,',',":.','-":.,':',:,',.::'::":','::.':,','::.¡,'".::.:--.'.-,":,".',,~-..~.-.":':.':"'.'.,.:...;,~::':¡.-..,_.,'.:.~~,"-'~"':".'~:.":'~..~'~".~,'.,_'-.~..'.','.'::'~,'.,:,,-,:,:~:...:,:,-.,.,.":,,.:.,' -,,-.:.-:.:,.::,-~:-,,·.-.:c·.~','::>~_":.'.:.""'~"':;'..::-;._~:.~~:'¡,:.,:;,,:"~:':':.,,,;:;.·.·..i:,.~.~ ,":·_':':'.';_'::.~,i.'",,~ ."',~,~~.~,~.~.:..'.':'::'.'._"~Þ'.:."'.'..',.."':...-'..'..'_:~,...~~~x,:.·.·_·...,.,.,.;_k,'.~..~_~_.,:.;}{~:: :~~;'. ;.:' - ",'~'~' :~. ~',..~ ... .. ·:-~::-c-=:~¿_~ ~~{!".J;,i;,iL .. ' .,- . Exhibit 40-A ...,- l' I~ ~ ! -~_.- I I ! . ,ø .ft Tract No~ 12 ) ) Exhibit 40-8 to Eider Special Provisions State of Alaska (revised 8/1/99) . Tract, Area and Voting Interest Participåtio~s '.., for the Eider Paritcipating Area . , ': : :, '. " '. :Tract, Area . .... ... 'Trac.t:~:<,..' and Voting . "'-', ,::-t,,":': D' escr·lpflon of Tract··""~:"";A·· éreâg:'e;\,\;i.<::'".;,:.-ó,:.,,:, In' t'e'rest "" ",'I"':", , :' .,,":~'" . ..: :":\~\,:r.':"""~';""~I..~.:¡. . . ADL.',No.-,·,within PA..wi~hin~A'h::".: Participation , ,': 034634,· ':T.12N." R16E, U.M. Section 27: All Section 28: NE~SE~. '¡' ; ~~>¡:~;:. ': ,,: '::, ',:.....,:..::,~. . . .>""~,;...,,,.., .",~: 680.00'::':~'>·,,:,.,:::;::'·1 00.00· '68g..:g~;;:i(::':"::'::"",: ' 1 00.00 , .. " :,,~ ,;': l... ,:,;' " . . ':":.I~~/:"'> ,',,: :':-.~,~:~:..,"., ".~;.:: ',.1 " -.1 .,~. .~: ,\:~.. .. " ,:' ~ . , .'\ ~ . ,", , . ~ . , ",", . . ." .. " RECEIVED , tl\, r~~ .", roo", ,.. v,''¡¡;,.I L t~ L~ IJU Alaska Oil & Gas Cons. Commission Anchorage ... . 'f-. .: ~ ) ) BP EXPLORATION BP exploration (Alaska) Inc. . 900 East Benson Boulevard P.O. Box 196612 Anchorage, Alaska 99519-6612 (907) 561-5111 October '6, 1999 ... ' . . . .. . ,. '... ,,:·:":;~;~i';/.:,~:/~L~:,::>::::~\,:',·,:.., . Duck:lstandUnit'Workjng)rit~r~~t:Q.Wners >';".: '".. EnçU:9()tt.F~~rticlpatil)g.'ðì~~:}WRtkir.~ÜJn~~r~;;~, O~ry~rs Eid~rParticipatingAr~~¡WÓ:~;"tfl,iJ~~.re.sfOw~,~rs''':. . (pe(attà~heddistri~~~}~~::~~~~~~),'?8.:~'.~ "::',:~'\',":,";~""'. :: ·:/~i:·,~::::'· ::'::':'" , . . ' Re: . '" BallotAgreen1ent.J~:,orEXpanšion 'ofthe.pucKlsland Ünitand ,.: Pléåse'n3ôêive"lhis ·Iett~f.;a.s· confirmation th.at$ne: {efé,rijriQed:ballotj~DIU Ballot >5\· .,' /;·;~t5i~¡t~~;~; 99':073 ·and·:Elder·· PA~B:~llÞf.,~~~po 1"iJ:1~s "rehêÎv~èJJt1'ê":r~qÚiréa affiriTiâtive ::~:; i:::,.,,;:.~:/, :". :.:': ';':;N~~¡~~~ apprqval'y<>.tesand.:~i~I,~~~ºm;@ :'þ~ç9tn~.'eqep~i,Y~}iS,1º9;~~'cJ.:þ,~IQ~ ~?&~:?:\',~,~ ·:<:~'.;;':;;'.i;;:/~,:: .:' '>4i·;'~0f> Thê'DlickJslårict Unit:âÏ)~:rJ:i~e(p.~tt,i¢ip~tirig:Arè~ ~xpârision'~shall 6ë;'effective':·· . .,' " ";·::~;;J.i:t;:i upori"app'röV~1 by'thê~'~Statè~(ôf'ÄlasRå'(jépârtrrtèh(õt~'Nâturåf'RešoÜrcêš (DNR)\of ,:,' ,.",:{>!~:, the simultaneolls exclusion of the' Subject. land from the Prudhoe Bay Unit"al1d ..' any. participating areatherein~' Please note the required approvals for the Prudhoe Bay Unit contraction and relevant participating areas have been received and similar notices of approval are being issued to the Prudhoe WID's. Should you have any questions please call Steve Fell at 564-4036. (\ tin~eïl~ ¡¿<-¿. Donald J. Dunham, III Commercial Manager, Eastern North Slope cc: Steve Fell IN WITNESS WHEREOF, the Parties have executed this Ballot Agreement on . th ~ da~~ oPP~$1~Ei,~e¡~:,~e~~~~v~ ~ignature~. .~' .: . ,,' ~.'.::~ ;~" "<):~::/'<;;':/ . ) I '. ,O'CT.r'r-i 1~99Jl2: L~~~~M e~~X~1U~~I~~?!vp I ' ' ' -eJlOt Agreement for ExpansiOn of . . th~ Duck Island Un1t and Eider Participating Area I DIIJ OWNERS:'" :. - :OO~~!":~~;~,~i~lj":;;.~0i"..'.'·' Title: " " . I" ' Date:',' I ."",. ',' ...., '.. ," DOYONi':¡~IMITED ' I '.. . ':' ~ ,,' '.' I ',,:, ", '., ,'. By: Tl"e· ',,';',"":., .1 . _ . " Datë': I ' I "". N!.\NAA'ËGIÒNALCORijÔRATION , '~"'~~~:};;:'~~;!i~~~:~:!¡~/ ':,::~'~,".::' ..:,' ·'.,,·:.,:::~~~Z~~'f,~';:::)<.':,:;:.:~:,>;,: B ,'.' ~': .'....~ Y:._.' ""....." "''''''. ~tle: . Date: -.... .- -...- ) NO. 1889 P. 2 , .....0/15 ,DIU Banot 89-073 .':'. Eider PAÐanot 99-001. , . ." '. . . . '.... .,i,:.:. ...)~~;~'!:;·:;1f.~~~~ .BP E~C .Q~MI10N (ALASIt'Il\ INC....·.'!.;:,: .. . ',.',J.I....: . r-v J '.. ,,,. ~ ..,. .,.. ''"'"~~' ' .' .,'. ..¡¡~" ,'. "-'" ,..\{j.,kJJ; . . ......... .,... ··~:'_~~~~t:;~~';; ::.!,..·,:;:IWÛ,:¡~};~t~ ~. · (~~ jtoD~;;r.·:(~,·~;¡,:;;;;':';W~4:~¡ 'bå~¡ ;~~~;;Pl:·,~~::~;:;:;;:¡~i~~i~i!:e~·l~ EXXON c OAATlON ,~~~,,~.. ,..: ~ .. t . . . "'''~W'''¿ .."..~.'.":~ ··::·-.;i~i~¿:·~~~~':~~~;~.~~ Ti · ~ ".""~""'-~:AA "':'~''';''';:'~'''';:..I,I.¡ '.J. ,.:,,¡i..~._....." . .,J~!-. ".' . "~;"'" ~::.'~! .: ~:/~·~i!fI.~,~·':''''/1J~?·~~4''~;~·:' .~.:~. \, ;,.,::,.'> a"e. J..."..: :=~'\X :~IY~, 9 \,p:;,*~; ~~~.;-,~.:~.j¡:.,\.:- ~'1-::i;' ,"~: .·,:,,':1",~·,.. ,I. . ~ . 7..r::7..~ r I... 1"~'·4..,.... "R.' ..",-~. .:f~,...... ,·...~·,,~··,~~\:·.':'ð:.,.~f - . . "'.. : ,'. ..'::": ..,,:.. . ., :::,~::,~:';:,:::::j,:':;;'>'?1:·:~:~:}:;'i;:·:>~~r\:~}+!~~¿."~?~~'~~';'::;):,::~,>:.' :...~. :':j;";l~;;i::;',!r~¡ UNION OIl;,COMPANY.OF'F·:' '.,~,,,~:~~,:,,.:::\,,;,. .h.,!,';". ";. .... ..,,:, .,... "..f( " ,:~';:i;,:'~.:/!',;~\ ~.~ Fj~':'~:, ,··:·:~~t~~~{~,·,·:,···,;, ',:.::::;!~:i:~i;~Y : ': ::"CALIFORNIA . " ~""~.iA ¡.. ,1.-,....~~.. .....' ".',' . '., '~ . .,";.,..,~ :. . ... ,'''., ." ...... ", ,:J, .::..,;'o;¡. ,,..~~~;¡.,. ~.,-r.;,..\:.. ~"" :';'.~,:: ,~.:"~' r , . ::'<'."~;i;,~A~~4~, . , ',.' \,... By: Title: Date: AMcr~~ :lJDUCTION COMPANY B~: ,.J ) ~ 11 _ . _ ~ Title: ~~'~rilnß~~~ (¡(if ,,~ð' q)1 D~te: . ~. l'~~ - l.1 .. \Jt' J ..) I '\Þ~\ ¡ I DIU EIDER PA Owners: . ,- 1:,r;t: (ALASKA) INC. Title: -\ ~\,1:F\~-ot PlD~\JGtlJ4 fwí ~ate: ,,\ ( ~î A-.- , ! I ! I I ) .. .. OCT. 4. 1999 112: 15PM EXXON LAW PROD .~ FE:B Ø7'93 12:2PJPM J3f-'X I:..ND10011 llt-V? ) ." '. NO. ,1889'; P.:::3 ,.:.' . . . " ' 'I-' ~ (/15 ~ . aaUot Agreement for Expaneton of . th~ Duck 'sland Unit and Eidêr Participating Area ¡ ! . , ,. DIU a8nQt 99~073" " e-Ider PA Baltot 9Q..o01 . ! ! ' . ,.,,' ..~.' DI~ ~N~~Ç01T'PA OWNEaS::';;:~'"i~'\:>:':">:'::'1~;,/;r1:/(~ :::,:,.·;,;;,:·,f:·i\,·:'1i, :")/' .:;,', ,:,. A~CO.ALAS~INC. "BP ~fT'~~lÃlÅS~J;'6~.;~<~,;(: .. ~:ø: >,,~~e: r.;~::t~~~:ôS';.,.'>" , .' D~te: . . : --' A/:~Dâiè~ .., t~, ~ '<':';:!:~;:ii¡'::i'~;~~" ,-':~:::¡::.;t\" , D:OYON, LIMITED ..' . . ');;;;::~íi:XXoN'è ' RPOAAfïôN \~ ,;- :'~ ,; . ..,:, . ", . ~~i. .' '. uu " ··:~lif;jJ.:'~'~~·~~~;~~\~';";" Date. . '~'_"_ _ _' . J1'~!i;(~~'.. tea . . ,;ß'hf.. ',' ,,'" ":~"""'~;n::......'F.>.:':~'"";.."':~"';, .. , . . . . . . '., ':": .··':,:';·:·'·:~~:~::;::,~h~:!f~:'::;:;:·~',:'·:::·: ¿"~'~~:'~":~~'~~~:~'.'~~::.'::'-' . ~ -.:." ,~.:-i ·~J:~·"-,·,,.~~.~~¡;·'::··~~J:-7.'! !.'~ ~:";',/~~/. ~ '." f\ANA REGIONAL"CORP'pRATI'ON ".:'~:i{:::~~f~u~~nÒ~ql~~COMPAAý::ó~;¥i~~~lf:~~·~?.'~;;:::é..... .', ' ;~: . ..' .' ..' ...,...:::::'<: m.';'~tÎ~7"~~~~·::·::>:~;;:::·~:;J~i:!;'i;~~r\ :~:. . Dlate~ ._ ,_ '_. ," :·,.."\::;'~:~;::J1:tI~:- '--" , , . ' ::;': Dåte: " I' tO~ÞKN COMPANY ;i~:_ ~/~ I (t,øWUv{1!. f~ JoJ ~.n~ qate: ~\~ ð \&\0) - ,,~~~~ · : ~ ('\'4\' v PE(·FI)v'cr~ ~~ ~~¡ L1"JI },.'\:' ¿ :~:; ¿XU A1J:J1ca OJ] & Gas Cons. Commission AnchoraOQ . .. - PAGE 3 DIU EIDER PA Owners: BP EX~. CüêJS¡:¡hION (ALASKA) INC, B /', T~;e: .~. . ftvovc/fJ4 (¡(Jj)f Date: 1 ~\g\t11 AMO~~!>DUCTION COMPANY ....~ ". By: ~ J ~ \\t Title: \""~~I f£ol)~r.r, (¡{~f 6 ò'(I'-V'\ Date: . ~ 81~~ ~ \~~ J . . ..... .... .... "__".___"" _ ......._ __ .,_. . ._.... . . .' ... .... .. ........ '''_' ..__ .. ,. ". . ... ",':;' :J," ;:. ·:,~:..í;..; ;J::~: ,:'~'" . :~:":'. . . "<'ii')8"':;1,~,<;~i~~~~~~:';::~:1:::;~' ". '.' .;"<:... .~:. ::'i'::~:§;k~~~~ NANAREGIONAL CORPORATION. '..,'.:'.:uNlor\fPíU'(jOMPAr:..iv:.OF·' '. . :·.::\\,:·~,:t:~,; :e:. .... '. "}i;';~~>/::<' ........ ........, '. ."":::';~~ Date: . , ,Tìtl~: ~/ ,..q"'~~''7..1~i:S Date:"2s ~~:;;~ '.. , 'J3.PJ=Xr ~R~ION (ALASKA) U~C. '. ,·,·,··;";t!~'¡/~'....'.' '.\ ':%~if~~iWJµ'O~~& . , "IliÍi~1:,~:>.~,~!~·· .... ..... ", ': ':.·...E~9N C(),RPO~TlpN, -- .,' ": ~"'.' . .:, :.;.~;:,:~I".:.'~.:::~~'.:.:I,""~:'::' ',}::,<q....\..: " ":...,' "1': ..',''- ::>..':'. . ' , , ," ,'. . DOY9N, ,LIMITED. By··::'·'- . I.. ,," 1"', ' Titlê::::. . Date: :" . DIU OWNERS: ARCQ'ALASKA, INC. , , IN WITNESS WHEREOF, the Parties have executed this Ballot Agreement on the date opposite their respective signatures. ') ), ~ t '(:"i~.~\J BaJº~99~73~...··_· . Elder P A Ballot 99-001 \' ,,;::··:'\.3a\lot.~f.eQmentfQr...Expar:u~~ºr.:,~!.s..,..,;:· .:__...... ..__ . . . the Duck Island Unit and Elder Participating Area '1.0:", =.w ",¡ ". '.. PAGE 4 AMOC\~ ~~N COMPANY By: .~ f\~ .. TItle: \w<~~, (lP00Uwo. f\ÐJ)Ç~05 ~~n~ Date: ~\ ~\l\~ t\~ ,{~ ~J~\)" , ~pv \ . t' \" \ ' V DIU ENDICOTI PA OWNERS: ARGO. ALAS KÅ , INC. ',.:' '" .BP."E~lORA TION (ALASKA) INC.:':·:~;':.· ~i;"::¡i¿~f(~~:,+~;" , .' .' , ~ " :" . .- . .' .', :>,:', '. .:: I?~:i::;;:<:?" . ; ." J ~,'.. ',.' .:' ·;:;~::~;':,X,;':':'·:' By. By.· "- \ .:---. '. ' .'':., "'?:':':;:"~; litle: . .r¡tI~:: ,,,^~~ ßtÐD WIIÚ flf)./)S'~:::;;;',::: Date:> ,. '" " . .': :"·,"'.:,:J?~t~;', 0\' V,q~ . :"~>.:~..": .~:'. ,..r}t~1:' ". .' .'.....:..:...,. . , I . .1 I. eo ...I.·i~'·""'" ".':: ',' . ' . ," "~~';', ',';,:': ' . '. .,:., ,..":~. ",:.'~~~/?:"::. DOYON;t.lMITED' . ",,>·":.EXXON CORPORATION ,~~~;::~"..·~'.1ti~t· By. . . ,BY,:,;." .' '. '.' . .c;;~!,~,;,~,!);,::·:~~! Title . Title . '.,',' ,.,~... '::: ",..,.,'::,...;,;",.: Da~e~,. .',' '.' " ,'. ,:'.:~_.~:1t~~!~: ~ . ì'(~".·'Wr~ ~;;-~. ",/.:' .".'. ~.~;~~:;.:¡:'~ ,-;,: ,.:".., ',' '::.' ,',' " ,J. . Dàte': ' ,: ", F (fk;~ 'j, '. . .;.:< ~~ .,;.:':">":;.:~;' ";':~1t~·~ .I ~. ;.. " . ~ ..... .. . BallotAgreemel)t for .Exp?'~~¡Qn.,.o~..,~·...~·,· .-.,' ,:'. ..' ~'"-: _ ._:~. ._._~..o-. '~:;""'".'7.::'7''' ".- ·.-o::r:-:. :::,.J1lU~.aaH9~. 99~.1.3. the Duck Island Unit and Eider Particlp·~iting Area . Eider PA Ballot 99-001 ) ) ·,I'r:.r/:':·'.. . ,,:<r . ",', ,\ '- . ' ~,' ~" , '. " .' ..,' .;... . t. ~ "By: ' Title: Date: . '. . "... :~;!-1'~~"' . ..,. " " . ,,' :<:' ::',,::: ,:' , .' :'::. '~iji~~~ ~:';::,'~~~'...,~}';~".~.. NANA REGIONAL CORP~9RATIÒr\{E>~.~:\-.."UNION.OIL,COMPANy Of{~i.·'~~·~·:.· ~:..", ~n' . ~.,:~, ..~<;¡;::.CALlFORNIA,.,.' ' . ' . By: . JI~~' ~(.>~~\¡<.~':~\:. , ':., ~::: ;;~ I/);·~..Q,'t,~è,~ <, ~e:'~:~Z\-':":' . . .' .., .. ! . - , ,. ~,'..;:. :.'....~ ':~,:,\', .". /~~::~~~. ' . -"....": I ."..- Date: )-- ... -~~,-.... ~'\ - -.. 8ë:t:I¡,)'( 1~,~;:¿'~~~!1ff'o~:£:xpansion' ~f.·' ,.. the Duck Istand Unit and Elder Participating Area DIU ENDICOTT PA OWNERS: ARCO-ALASKA, INC. . , By: Title: Date: DOYON, LIMITED By: Title: Date: - ..' .. .---".-' ) , ., ., ...'.."......__.....,......_......~ ''0 ..," ... .~ Di~,Banót:99~9~3 .' Eider pÀ:Ballot 99~Ò01 , ' BP E1. , r0ft~TI~N (A~~~)I,~C":~:·,_ I"---... _. " . . ,. ,\.." " . . By' \",~', . : ".' :.....:.,~ '. .;';'':; ;,~. Titiã: ~"^~~' ·.rPJ>l)WNi'{l{'ti:ì1JS~#f..;., , " . \n \OC4 .' .' 0 ,ro..::; i~~~~":> .,: ':¡"",:'::: 'Y :' Date,: ~ I f\ I ., ~~.:,~~~:'~:.!:..: . .'~" .::~;. . ,'.':::~ - , . .: "~.~~'.. .1:~·:'" . ,'. . ""..'. ~. ~ . . . ExXON CORPORATI,9N .~"::;·i';:'''' ..,;.:',<;: ",':" ::O~):'~NCOMPANY . Title: \\M-I\I-I~ I f(OOùllli'l(). f\Ò..l}( II)} ~ Date: ~ \ ~ \l\~ . i lJI ~J~ . \~ "\,\' V PAGE 4 , .. PI" ..(¡~ .. . . ~,..~ '. . , ~,' . , :':" :" ..' ..' ::", ~ . ') ) '. . . <';ll"'}l\!i~~~f~ ,.' . ,.' '. :':DIU;èäilét,99~, '. "'i"'"''''''''''''''J_'''''~~''';'''''''''''';''' '. Ëid~r-pAJJal.lc)t §§-õÒi . . .~.' I' . .~, ','o .': ':," '., -'~ 'Ballot Agreement'fqr,ExpaAsion of· . . . the Duck Island Unit and Eider Participating Area IN WITNESS WHEREOF, the Parties have executed this Ballot Agreement on the date opposite their respective signatures" . DIU OWNERS: ARCO ALASKA, INC. DOYON,' LIMITED '..BP.E)i~ _~~Þ,ITION(I\~~~J~~,~~;,; . By' < Á IV -?- "::¡;"';;;::';,:':;t?';' .... . . . ..... .,., . . ,'.. ..,,\Trtle:\~\'7W-J~oi(,4'¿,:¡~ .' '::·,:~::":'(',!\i,~\é'i~!;"(~:'·:':'C;·.;I:<./ <~,,:,~'Dåte: ~ ~~î . .,":. ,j*~~'.::f:,·:\ <~::..~,...,"" - . . ·;""f';{;'i'~'~f.;",;];\;~~~ON~90RP9'~ 1J9,~;,~;;;*;~:Hf.;" ". . By: Title: Date: .' , ' ,./~.::..:::,.X:",,,,,~I::'}~',:; ", ;". .,.' .\:,". \ ',,:,",' ,,' '."I?y~' '. ,.Title:· , ,'i":" . Date: . '.' .,';{'¡~~.:';" ,,:.i;:,;'<..::}~>:. ' , ' . By: Title: Date: . ',,', " ,.'..... ::N~A REGI~;iiliIT~ION0;;"i;;;;:'>;' TI"tle" . . '~, . '~l".; '.0 ~~.",...,..f\A:r.¡,. :.-::;~\~ '\'~;'B. Y.. ~'",,':>. · . ,... u~..~..{y 'Ó \.' ,<~;'~<:I'. . · '. . Date: 9' c:¡ q 0 . ,., ,Title: , t D~e: . ".!,' ~ . '.:".~" "..';,:, .. , . . , :' , ,~~~.: ,. . . AMO~~ =tbOUCTIONCOMPANY By: r!,;-S' ~ Title:\'N',~'~( fb>öIX.tN.. fl(~f 6 ò'~r¡)II Date: ~ ,gl~~ ~ \IŸ~ J DIU EIDER PA Owners: BP E~~. Ç~dS?.lTION (ALASKA) ,INC. By: ?\10 Title: ,\~'4\L¡J f"¿û()vclfJ4 (1M! Date: \ '\\g \e>1 . PAGE 3 PAGE 4 AMOC'-r fR~DUCTlnNCOMPANV ~e: :ìM~,JlÞo\)U"'o. fiM~"o> ~.n~ Date: ~\~\~~_' ," ' ,U~~tJ'T · ,~ <\~\" v . ".', UNION OIL COMPANY 0f,;:,:':;-:.' ": ,". CALIFORNIA ' ",., ',""'," ',':. - By: Title: _ Date: By: Title: Data: - " BP E~i 'CI~A, ~JON CALASJ(,\,',',)INO. ay·, .J -. ',''',','. ~ ·f TIUe: ~~ " (lJ)/J tJ,JN.r .:.:illJAS " Date:_' ~'VÞ~~' , " . , '" EXXON CORP 0 AATI O'N'<' '. By: Title: ' Cate: DOYON, LIMITED' , ~~~:&rpJ!i Date:_ 0 ç;T , J cf CJG'î .", '. .. NANA REGIO~AL OOFi~;9,~TI,ON DLU ENDIOprr Pl\ OWNE;BS: ' I ~RCO'ALASKA, INC. , By: , Title: Date: , DIU Banat 99-073 Elder PA'Ðallot9S.'Q01 ,Ballot Agreement for Expsnsian.(Jf", ' the Duck Island Unit and Eider páriiclpating Area P.6/6 .- ' . J,.~ ü ) ,^, ,"",--_..:Hl,I1!~AM BPX JDiëõTr~' '~"''''',' ;f·, ,. 1 . .."....... \. . . ~~" ~ .. ) ) 'r .~ BP EXPLORATION x: (ð BP Exploration (Alas 900 East Benson P.O. Box 1966 Anchora. ska 99519-6612 (907) ·5111 . ~r"" "Ori./'..... ...,~ RECEIVED AUG 111999 ~~~;a~:~~~~~\~~~a;~~tr~:~~:~:owners ~~~~ Re: Ballot Agreement For Expansion of the Ducklslårid Unit ~nd .' '~, ,"".:' :,:·~:i':,::':." ' Eider Participating Area. ",,' '.: ' August 9,1999 Dear Working Interest Own~rs: !.,I'. ,w ," " '" The enclosed ballot, VVhen,fully 'ex,ecuted,\VJillapprove a 40-acre,exp~nsionofii':::" the Duck Island Unif and Eid~rParticipaliÌ1g Area and '8 s,multaneous 4Ö-acre:'~,::'> , contraction of the Prudhoe '~,~Y"PÐ,~~,'.·:~i~~.~.r.D~. Parti9ipating,Area~nd,~!~,~~",~'.3i(·; Participating Area, all corit,n:~eht~p~h,':äpptoval by thEfState of Alaská,':<;";:'::":· :"~.,:.,~' Department of Natural Resoûrces~"'" . ,',;'.: . The expansion will allow BP:Explo'ration.(A'laska), Inc. to produce from that :." :t., ,"- portion of the Eider Reservoirwhich is 'cufrently located within the Prudhoe ,ßaY·~" ,; . Unit. The ,expansion and,cotitr~ction':~ffects,only ADL34634, a 100%' BPXA:::" : . owned lease which straddle's'the'boundarybetween Duck'lsland Unit and' Prudhoe Bay Unit. The proposed expansion and contraction has been reviewed by BPXA, Arco Alaska, Inc. and Exxon Corporation, as working. interest owners in both the Prudhoe Bay and Duck Island Units. . We would appreciate your execution of the enclosed banot. Please return the· executed original to: Steve Fell BP Exploration (Alaska), Inc. P. O. Box 196612 . Anchorage, AK 99519-6612 Fax: (907) 564-4187 10 ., , ' ... .. B~lIot Agreement for L. )anSion of th~", Duck ';~Iand Unit and Eider Participating Area '" ') DIU Ballot 99-001 Eider PA Ballot 99-001 IN WITNESS WHEREOF, the Parties have executed this Ballot Agreement on the date opposite their respective signatures. DIU OWNERS: ARCO ALASKA, INC. By: Title: Date: DOYON, LIMITED, B~~. Title: ~s~"t"~\ f c.e=o' . Dåte: (.\0 ~ l~, rqq9: NANA REGIONAL CORPORATION By: Title: Date: " :.. '.~., "" DIU EIDER PA Owners: BP EXPLORATION (ALASKA) INC. By: Title: Date: BP EXPLORATIQN (ALASKA) INC. By: Title: Date: EXXON CORPORATION: By:' Title: Date: .. UNION OIL COMPANY OF CALIFORNIA By: , Title: < ..' '::',," 'Date: ., r r F ' "':if ¡r-' f'" ~< ~ ;'. ~ ~ t· r' ~ ~q ...... - " ~:..; ;=~.j 200"; PAGE 3 /\!JSJca on & Gas Cons. CommiS&i.an Anchorage - ,," ) ) Attachment 2 BP EXPLORATION <,.~::~~~;?:~'''':': '::' ",'~:':..~~;:~' ',' BP exploratiOn (Alaska) Inc. " 900 East BenSon Boulevard P.O. Box .196612 Anchorage, Alaska 99519-6612 (907) 561-5111 Sept'~mber .1 0', '{999 3: . .'. ~. , . ' ,..',. t. ,..:' ':::",.", .::". ',~..:i~'~,~, '5:@;',;t~~!î~::..}~i,\· Prudhoe Bay Unit Working. Interest Owne~s :..... i.. .j·::_:I"~:·.'\ .,,', ·'::.:.~:¡I,~~1f~~~.:,,:'~~~~g~,~~ ':~ ;·\.~\':'·~~I$fd~)~: LI b P rt· I II Ar· :0 '. " ',', ." ,.' :'. ~.:...~. ,r·. ...~. ¡":i!~" ~. " '."'do~'';: tt:·~ ..... .:. 'IéY~¡¡;,.\:.r,~' S ~rne a IC pa n9 ea.., .~ne~s: ..::~.:/.~?:r,;·:·..~: . "'~ ·::'~-·'::~~'~',':~~~:~:'··:~:~:·.:*~,:1;!;''''~.·"~. .::.~~~:ht';'''..~~." :~:~t~;~~~:":i' Nlakuk Participating Area ·.Owners ;~' ·,,::'!'Ii~~;~;·~;./:':: ~ ,·;r:. ~~, ·.::.ßf.:'t ~~.: t., ~'~~fff,f,¥~ ~~ ,.... ::£::~~~..:~~~~ ~:;J!~,.~f~ø-¡~:~~' .;.' ,.....·.o{>,,;.,..,:;·~.......:'·1;·"J:~...,::!~l:..:..· :·;..;':';·I:i.~:î:~t:·:.,.~~1.~· , :-::.:~~i;.!;ì':'.' .::'.:š:~~.fu.~ Representatives and Alternates"':;~"~"'?~~;$o~~i'~; ':·"';:.'~';j:'Zt:\.g'}";~\.f¡:1:-.~·. A) B., I ;'£¿.-.::~~~~.~'t.:¡ ": rt·ih::.::r~~ :~:",::; . : .... .:. :.;~~,:.::(.' '.:; ...:.:::'~';.,.' ,:. :~. '.::::-:.:;"',::,:, .·:::,~~·.::\~~~¿:.:,:\·~~:;··,./«Y~~'~~:~?·~~~·f<;:;· :::~::::~X."·:,: Re: '~Ballot 'and ,~Otic~:~~r:9~~~~~~~~f,·~{·~h~ ~p~~~~~)~'~Y~11ri~~~~i~~~tV:~~~~i~··:·~~~t~~;~~~ 'I:'articipating Are~ ~~~ ;L~,~~~~e. ~,,~t1~~~,p.~!i!.'~ A~~a .~. .';~~~~~'~'~,<.~~~Wfir¡~.{;~~~~t~~~.. . :.: : . ' , :. '. :>".:,: .', , ,: "::)~;~~~~i~k~::~:r;J ~)~;(,:.~~) ':'7~":' :.>~:~:;.;~þ."t:~;9.~.~~~~.~ ~:f:~i~, .' ~)~"~i;;~'!~L:.~;.t4w~~:~~{~:,- ;·;.~.:,~~:i:~~.2; Enclosed¡ are ~h~ .~o~lo~i~~.l~QI~u.~e~~t~~~C?lªIIÇ~;.~xç,~u~~~~,;¡~~ ~~,~~C!~~~:~~t~ß~Y}rr!lS't~~~~;~:~~~ ~m~e,p~~'B~~I~ Area. . , " '~~~*"(~ .... .~, - ".!¡., \'Ç ,', ","I'f 'ðf'" ,a. ,.,~" . 'J . "'1/f ,:'\t..... ':!.. ~,..~.,.:. ·'')'~1i5·''''~S: . \ ", . J.'~ .. ;:' " , ,:' ,~:~~~]:'}.\;Fj~~·\.'·/;~;~·§gt( ""j:' :' ~'~.: :::: ::,~~~'?~:/~<; ...'~ . :~;~~~{~~:' ·~ri~~~~~ltJ~;~~~t.~:t~~~::" : -. ~., 0rr:'~-!" 1) Notiée of Intent to Cônf¡'ãc~ tlie:,P.r.u~h~e'.Baý..unit.~j;~ijg~~" ,. ~;"::;iÞ~~~~~"'~" ('~~~~),.~.:~~;J>:. '. : " .:: :r;~:-" :,,:::,:~~~j?~::~:~1~r·::t~:::,::~'f.~r¡~!:,~i:~:."~· :,~",··,~:1}~~~~~~'Ù:,:tr~ .~...~:~~~~;~~W;.~.. ' .¡ ~!(:.>' ~/,:~~~'::~' 2) B~lIot 'Agre~inent Äppf(j~ihg' c&íítfäçjloi{9f:,ttiå~pru~høé~~ay~~óñí(~~~'~~ ~~;~;:"':'l~;~~i~~ , ....~~~J;.:~~ . ':.' .,' Nlakúk "Påi11êipatirl'g7\réà~:àrid.'ClsbY.lHì'è~PártiðïpåtirtQ1Äréa~(iP~ ~, ~!k '..: ~~'J"Y~~_~ , ' B'ailõfNd~~'99:217 i:NP~~~~lÍôt·Ño;.Jj~~òb7lr:PA~$·~flò~~,~~~~52) i ,: :,- ~ :,tif~~i~~t?: ~..~~~~~ , . ,. .. . ... .",,;<,,:'::::':'.~::)::~?:." ': :-: ;">,,;:',<'0::' ...' ... ',' .... ." :'..' "..~: " ..,.. . :', :", :." . After your··review ,··.:pleåse::~~xêc;ute·tli·~'::e~~ïQ~~d:,:IPÅ·· B'åll'~f:j,N~f~9~~~17;:';N'P ~:··BaIIÖtr~òJ:~:~~;> ' 99-007, LP A Ballot No. 99~052· and 'retUrn 'your original 'signátµ~e,)~ge tå:'~>:/":" ';:<.,:,;;\t:::;':~:;y,:;, " ,: . , ' ' '. '. , . ,.. .: ~" r" .' . . ' Betsy· Pfann~tiel Unit Secretary Prudhoe Bay Unit· , P. O. Box 196612 Anchorage, AK 99519-6612 . -'. Phone: (907) 564-4489 FaX: (907) 564-4637 If you have any questions, please call Mr. Steve Fell at (907) 564-4036. Sincerely, bd3ôf?)~ Betsy Pfannstiel ;J Unit Secretary Enclosures -.. ). ,\, \', "', .,' . . :...: , , September 3,..1999, ".'.: . . I..·. ',::.":',.::":' .... ~.. ' ; :. :,,' .~. " -. " .' , ' - ' Sincérêly,' '> H!~'Ÿ~ 'M~(~rÞ Senior Vice-President, Prudhoe Bay Unit ARca Alaska, Inc VuJ. ~ v. W. Holt ' CNS Business Unit Leader BP Exploration (Alaska) Inc. df ,; ~ .. ./,' · 4 .. ;- ~.... .' ~ ':J' ~ _;~.; _ _. _ ... ." ~ . . ,.F;~¡t'::~'{';-'~j Exhlblt<.l;~"':/ 245000 " , I . :,..:(,', lenslelder/mapslem9-wOrl<ngfelder.jJbu_3.cgm , , /EndlcottlSatellfteslElder/.. IPBU cornractlon.ppt ",~;'~:!(.~'.rj" é " ,~~'~3;~:f~~~'" ~'::;:l' 'f.",,~:.,,:--: ';\:;,: -. , -", . -~ " '0 o o o ØI' ØI III ~ ~:. .:~--:- - ·:;i:-;~;. _ _:'.~-'-""---':-.-". : -~f;. ;.~ .?5;-::· '~5 ~:-. .:,,?;";:.-::::: ,,/¡y: 'Ill 10' ,ØI ,,' , Ill' '_:.~.:'- .::;:?~.- " ':-,-;:," ~:.' ; O 01. .,"·'·':v~·1:4~.;;;· ~,~,;,..::-,~:.~.\.":iÇ"W.i~,~K;,,.'~:;.-¡,,·o..:'''' ....., '~'.- .' 1 0-/0 BP~~~ ::':1;.'\ . >..".;¿.., ;'~ ~., .....>, ....t'.. , ,'i:.£~.-." .... . .1!'f. :~~~ i::{;){';,};~5itM~:,~xr·,~- :';> '-~: Merl d I an · uiTuatfl iI"'i k,.'-"~"'t¡;;r~,!<,~"", ;;.;.,: 0> ~5 '-'. TownShiP~1':~:~~1 tTf~~}:~f~~:~.i-:1!{<'~ _ 0 _ --,~:~: Ran9.e _., l' 6' ,;E. .' ~:;t~~ 'Ì'~' . . h,·'-.7~~:o,'·~:' ....,.~,.J . ,0· -'.,' '-. ..'~ ., . ~"__""">~$~:.,. "'II'~'" .~i:-:~ ~-.,....: ~:;;~·e<;!.cf:.ft~,~;. ,~}-~..!.:~:- ".c~ ~.~'þ: .- . '?I:~. .-' .~;,. Sect.- 0, "n" . . : ~··'2' . "'S'" ''P.;':-..'~,~~;''.''~ : ~'~J~' "~':::'~'b.:.tJ;~~~..r -t"::";"C2l¥ ~; U ~i~~ç. ~,¿~. . :..;.;.;2~:i.~ .' .,,~~ ..,... ;ö.:~;·i r':~'" ~1Ij.-~~1!- , . ~J_-~""p:,'-;;A" '",.,.::,-~ _ . ._ ":'1"10:'. ..~"'" _ ~_ . Þ'~~lj. ,pi ~~ .' Ir...:'\.,â·.)o.._n:~ ..../1;0.. 'f'-or ~~ . - :...~~.__.,..:tL?;·._..~~. _ 0; ¡l~~;?"',.~~i· ~.~~_:,~D..~ íC:~f',~,,""::'.~!' ....!:.c~~;~ ADL 034634':" .,.~ '.>. , ~'. .,~.,; ~. ".... ..,,;. , . '".. ,...) . . ... . .~¥,'~ ;<: ;-,::,A~i:{t~;j~:·):;~ -:~ <,">.., .:: . ;<, PBU Tract33 ,..~~. ~~;,~'J~" y.;~.:-,-~~~~:,,~...1f,~~,{~~';¡¡~ þl:.'tJ.::'!:s..,...·..__,',þ:·..,;'<J;::·. ,\1 j~{~_w,-, -'"'.~ :!!~~!~:;!.~i; ~:, ,..~J ~5f¡~~.~,~ ac'!t ~ ~~~' EIDER ,:¡;,},~ '.: O,"! .,.~'T ~;~;~~:~'.:t~;~:,·J~;Z 1'/ 'il.J-t:~:·P~OOL-:·'::~~ . . NK;'23y:,;; ~ ,..~, ~~3'ð''''-:;-'~~i'':'¥~' ~ -3k",i';..,~.,:...;,__.:'õ' ::-*-:, .,:'.-.' " "I:S~J!(:"~~%·.e;'~ :'_':;¡~~~" .'f~:: ,,, ~". }f~~~~"~"~'''\';· ,::},.-,." .,:. "":1-' '"': '~1& ~.¡'""~.!:c..·:~~~:}.--.;<-'......·.. ,-;v.",-, .......'.'f.\~,..'. .'. '~',<:.n, >~ ~~J:. ,} :;~ ~~~~>~~~i~IT;:<· S· .~:> ,....~:':~;:: ,< ~:':;:::: ;': ". ':. , d:·" ~,.n:;\--:'.:·.:',',';.~·,;..'.tt'" W:...,·~,;j::-I~~~ II';'~~, ", i t'!~'-'~·~~~(':'~?'k.?,;~;~~", ~ose . r,., O"~ ~ ''>' ~"~r..".. 'ï>-·...' , , ,'.,.. i G.;¡' . A: -' :r..1 ,t'2*i~~u::~>'.;.o~; .'....:::""£;:>.,,"'~~ ~. ;-,;~~>:r ~ , '.' ~., ::~~:.~~~.<~;, Duck IslâiidiUi1~' .' ~~>J};{t1 "'.. '....,' .-":·".",~.i"~ ... ;" ;."... .-... '::-~' Cc ntract¡iiì-i!ÎfiijläfÎ1;,i ',~::',~, ~ ;. . :.:',~.~;¡;::ffi~:::;·\'¡;Z· ~ f ~O· ',""';"" <';~~.j' '~!.I \, ~' , "~I "./é!!;rê;: -: .; . '.~".. ·..·.o;.~"#."t,·~..I:>'.·_/41·..·i-l ~ . . ,- --:·..~·;~:;.>:;r::S::~~&E~""' "..:. "':(-. ,"",1 , , .- "'" . -~ . )~ '~:.;~~-.;:" .~~ Lease 240000 NK·42 ~ I 1 000 ft \ , .... . , , '.; ~.. .." ',," "~ ) ') . :',"'.:.:. ,:i:/~'!~:. :. '. .', . . .'~~~~¡~:;~~~~:,;¡;;,~),i~~~ . ''', . ; ," , .',',. ~':'f', :'.' .: ".::.~ ~", ?~: "~"r.; : , , ,"," .,'. , ", '\ ~. " ',' 'I,":, , ~. I . .,::. '. " . ":~:'.:' ': AGREE~~T 1. The Parties approve the contraction of the Prudhoe Bay Unit, Lisburne Participating Area, and Niakuk Participating Area to exclude the Sùbject Lands. 2. The PBU Operators are authorized to file with the Commissioner of the Department of Natural Resources ("DNR") an application for the contraction of the Prudhoe Bay Unit, Lisburne Participating Area, and Niakuk Participating Area to exclude the Subject Lands, contingent upon DNR's approval of the exclusion of said lands from the Prudhoe Bay Unit and inclusion of said lands in the Duck Island Unit Eider Participating Area. 3. This Agreement is effective upon approval by a 95% vote of the Oil Rim Owners, all of the Lisburne Owners, and all of the Niakuk Owners. . ....~ ..... ., ,:'>. ') ~?~:/;;'~:~'.::(; , : I~;\,:·'. . .," .,', ' , ~. . ~~A=d;:cl!;rz=t~ti;~~~~Wf~~¡~~iÌi~;J¡1\~~:~~1~~,~~~~;:t~i~¿~·~;·~1\;,l7:~.. , ., " , , ",,':,." " , ":" ':NPA Ballot 99-007 ' , , , Mamongthe Lisburne9Øñe~;'UiisA~~èntsnpef$¢es Section 56.02 of .the '. Lisburne Prov~sions'as tothis,s.Pe.cific,m~tter'only~ ':Tþe,':I~act Participation for,' :: ::;:!:;~!~i~~~j~f~n~lOX;Ol;f¿~ ·<~;-:",.;,{"Þ;t;à~, Niakuk Pr~visions as to,~~~~~fµ¡c ~~~(?~~~;'~~':!~~~~ ~~Ç~~~??~.,for~~f:~?, ':' ':;~:;:" ~~,:C'~~~~~~f~ Tract 3~ ,~: j :!1è:~\ji!i!~~~j~V~t:~Ì~:~;;iT';iï~!~~" "jt:~rj¡!;;' ']~;'~~ The following ëXhibits attachêd ,:fö tlÛs~AgreeiÍ1erit;ÌéflèC(the, reviS'êd·.·h·óùñdaiiés\~¿&~~:-r.~P7.:;.'A~~,¡.i~'h and chartg~s~"ihè' PBU~:i~[Ó~éì-šìiip~f~Dii~*órir~Pit>."M~bY~DNro(;tth~!8:bJ~ê~i~t~::!~~.i~~,~,~1~:Y~~ referencêd "i{ . iïêàtióri ~liÍÎ~l'~<tXiiiti~it; ~'~"iM~""~ 4'.':'" ÌÜiÎÍ.rj;k1tíìlt'·~h uAilti ~,"~~~",~; ': , .' ','" .,pp" '..' ,',.,~~ __1~~ ~~l~~'»~~~,'._ ,~~;~> ' PBùòA~:'iiiélùd1iíg'tiìè'~Lis UmeI:SP¢.çlàiæroVlšiòÌ1S~ameã\fiãBìiës~iã1 i~~:~Øl(;:J"r~<J~i~r . ;!~ Provisiòns'. '>;. ';'~" ~'.,: :;";~, ,·,:'i~;t~;-~g¡i:~~'::~k. ". :: "~Jl~~~ . .c~~(~i: TL:: ::~j!4:}~~~y/,,:,;f~r~:,;~1~£:~~'f.; " ' " '." ".",'. '·.'~~f;::~~~.;~"", ...t·, ,"- ,~",.1'''''~' ;.~~~..:..... :S-..~t4'~....:,,-, .,.'..L'..·, <''-r,'t"f!#!f , '.' ,~:'~'::: ,~' : '. :~:: )',~:):.:' ,,;'~~~I~.'^·, ," ~~r~~ ;:,' : ~t~j¡~ ¡?à¡(:,.:,~~ :~1é~·t~~~,:~r{;~~E<~f~; ',~ "EXhibitÄ-l,~"I-Prudhöe1Bäv},UlÍ1t~oTeement'1 tate1of? aSlai~·"::'~' ,'1J(,W¡:;~r·:,,*~,:·:~~.J;~~~'if:..:.¡ril" ~ ' ,I ,.'C.. , .', .'" 'n ":~';:~"'J.~\;,I~~~'~Íf.~ ~ ~ . . ~'Ie~~.¡¡' ';'~'=...~ ':.::~·,.:lft:,.$,l~·;-::,!"ì::;· ~-::,~,~:.:;:.:~,=¡;. ';,I~' ':, :ExhibitB~l'<'·';Man;;<:u~~t::Oúffiíìel.' .~;¡¡. ~~~'~ "':~~ ~:,::.;~,~.':,::f.?:-i~Z'::,\.î':":',·,~~,:,,~>,.~,:,~::;~~I:'~~j\~; ," .,'.'..'. I, ..I;<:~~," ~~.¡:.,;!".~,,;¡,.,:. to",<¡ . ."1tj '!'I::!::." ,~,,·r...~·, :.ii',",' ',' .,'~.'~''''.,.! ". .,:, <EX1iibit45~A 'B·óhí1(iarie~·~fiÈiS1JuníëP.ài1ièi' aÌiÍig~ä~¡¡~"~"~: >~Z~~ì"~.·'~·-;;~~?:':~~~';·' ," ..··':~E ·"hi"b"~·· )..45' 'B !Ii·"'TJ:;A;õ~~~¡:If.f)¡~hf1;:~~~~.;:,.~\{J;l-5.~,:t.::~~J?¡...~~,'.iÇ~·'~·~ ~"7~;~¡p.¡..;d:· '~I::·,§¡,¡i~~):j~·;,:~~~·~~;.~:;:~~;' ·t~J, . ' . :,;'~'" X It ~ ~ ~:- racts(wI we~suurne', ,WCI Þaun· a'an ',.L,1suurne'·.;~,~~~,~~·~~':loX~ m , .,:,'. :,""'.. :......;...~..;.:,..,.:""';.;.:\i'~.;' ,...4 ~~~.~f- .Æ."'~' '", . "', .. '~'::r':¡;';; ',;¡......'!',$' " ..~;'.':.. ~;fi-!'¡; .-.!.' r ?\í'~;'/~; , " .". :'..'. ',' '.-~ "lra.ct"PaìticIDatiÖns-::~r~~.${,:? -- ',. ..,;F·d:","',"," :... .. {.I'···.. , ../ ,""i,',.'. '. .,': '·'(·:·::.f~ ':,;', .,~~~> ":>~<I:'J¡'~"(À*,~'x~~-:t,~~:,F~!' t." '·~~ii~i::II~~/ .~~~~; .\,"~ .,.. ',: '::-:,;:.. :~~~.~_:~.'t.~. ~. \ .Exhiblt-91~A:,:,,~oun&~~,~~of.,Uì~~-!J ~ .~, :'~:~' "!!.~$;"i1r~.;,, .,', ",:,;~.. ..:,~r '~~f.~·JoI ,', , .' .. ,.' "'~'~lojrM",",,"JI-~" ~,,~·~~~..:;11!t - c.." ,- . '. :. ,~. .&.~,.:r;..,. r" .', ~ , ( , . .. '.,1;" t . ' 'j-., ,Exµibit 91.:.B· :': T~äCtSY~~th~ii1be¡;~~~~añ~;~~~~T~t?~ëip~ùonsA~~~< ~'~,<' d\,~ '.-. ~ t~~~?1 , "".."',.. " .'..~ìVt;¥~~,~~...-:~#1~~~~·~~~·...'~:·~~l'·;:~·:,"·.·,~~·::....; '.';, ,'."('~.-':_'.. ~~ ~~ç~ . · 7,', be d~med'~òri 'iDaÌ -in"'ã'!m~b?ctìl(f~aÛ\;~~s~d~'&íê'àìid 'the: '. , ;. ....·"..r'f:' same instrument. g,: '. ' ' . ~::~:l;·i¡;',;l:,.':f;;;{;'~'";"~;:,;:}'~~~-:'?I}· .....~,:,~, . .... .., . , . IN WITNESS WHEREOF, the'Päi1ïèš..,~åvé':~~e¢ùt~ð.ihis:,Ägi~ement,~ri)he date opposite their respective'signatures. .. . " . 4. 5. 6. , , PRUDHOE BAY UNIT, WORKING INTEREST OWNERS ARCO ALASKA, INC. By: I ~ 11/1 ~ ''VI::\. Title: - {} I \. ~ø Date: BP EXPLORATION (ALASKA) INC. () ¡}/J/ ' By: tå. ~ . ~ Title: C.N~ ~Ll~I\C\¿~ u.(\, "- U«.~' Date: '1 ' 3 ~'î 1 CHEVRON U.S.A. INC. EXXON CORPORATION By: Title: Date: By: Title: Date: -2- . " .... . ) ) , , Ballot Agreement for Contniètionofthe pÌ1idhöê ';Bay . Unit, r, Niak~k Participating Area and'Lisburit¢p~èipàting'Area. > . :. IPA'.'Ballot 99'íÍ7:):":')::'X">': . .::>·'LP A.::J3a1lòt 99=05~X.·:'~:¡";,:,:/, NP A Ballot 99~007 . ~.. FORCENERGY INC. ".~~~::'. ;;~';':~:f"~: ;... ',. " . . . , .: ':'_;n-:;;~~;,_~,'j;':.n - ." ,:~::"i:~<;:,:,~iï!.I~~ ' . ,- >,"", . , ' , . , ,..., ,". ," ""'''k-14-f1<r:f' :~..~ .' '. '. . - " ,/:," :C"'~'iIj'{:~lJ~:,'~ ,':'~, ':;;.,: ;;';': ;,(, ~K._ ;.: j:;~~t~(,~',~~:~ PHILL~~ ~ErRO~UM·CO~~,,:.' :;,,~~~~q,EXPLP,RADO~,~~ ì.:~:~:~I~~~· ¡~~ , :-_~::~:,i,~:,:',j~rB1+~~~~I~~~~~,_j:':,,;: ,:,~,:-_:..'~}.'-~"~~~~!fi~ " " ,,, '''' '. ¡,.",,, Y."·,' ,',1,', ,,:, . . ,\;>:::. :r".,t¡",.~,.,Ij,,,, -·;'~:'·'~ii~f;i,~~l¡iJi~~Ù-~~i~>~·.,,~~<:~~~~~¡i.·::"f'~:9~~~'1 '" " ...¿;;,J~.,.". "'~.~':.¡~..~,......,~., ...,.-...~.......,.."" ..."..:,-..-~ttL'~'.~'~.:.l¡,¡~ ~~ /,:·.",:~~~:~s~~:~;t, ~~·~\t.J~~¡l1.~~·,'I, .:~:,::,: :~;/ /': :::.'~,';,:?>:, ),; ,.·,~/~~·,;a:·:,:'.';~~.::· :j~~ "~¡};~,r;~~~\~~~;,:~,lj{;:': ~..~-,,¡z.:.¡~~..,~~~.,rt-:,Ntf..~~~f"~' ;:..¡ ,·~~r-·J." :.~""'J,;, .::'.6'~:r..t......,\......:,.Ti;-l¡ T\\";""~~IM¡I ",:. ,~';~~~lfJ~~~ii~~;~~~it)~~;};t:~~;:;'::.~:%~i:?é¡~.~~~Itf,~[i ~.I'¡,' (.':ï~":ik/~'ß¡:î~S~¥l~' ijl"~';' '~¡"~,..,.:;.,~-x.",~.:·.."',~~.h'~;.~'- .'~i;::-,'·¡:'~i''''8'''''·· ,'" :. .'~~"~~~ì '~~",r. ~:!",- ,~"~'I(i.~ -, ~"';"''''':'-';';''>,r'\,''~J',¡r~ ....:\ '".rvJ".....·,.;.~,-f:l......-:~~"<I:-;.-¡'..,~.';". d~~,:,; ""~-'-"4!-,!.. . ~·':..,.,:1..'..':.I<.r.l.".:t: '\!""'-'~'.,)'..,~ß;"-""~':':'.¡,}r?f.~ . . d~:-J;"". -;...~·...;·'·q7·""'·..\·,-:·....-' ,'-... ~.,;.).-::" ri).<....· :í!1t (:.t-..,. ("~'~1¡'" , ,.' ':":~,;' )"? ::,':(. .!>;:'ft:t:,':",' ~. :.,. - '~:; -: ... <'~: '.', ,.~ ':'J~~;~i) ;':~ ~: ~i V By:'· Title: ,;Date: '.:, By: ,Title: Datè:: " , ,. . . ~ .. ø . '- ,. , .... -'.. ',.. :.~'. I : . .: f., . ',~, .... -3- .. ) ') "::;::ii:¡':';,::;::\:':::":" , " . . ,"~~:~~! ~!iÎt~jE;z~~~~i . :../ Ballot Agreement for ContracÙoÎ1,ofthê"~rudl1o~:~'~ay Unit, Niakuk Participating Ai-éa :and t';¡sburnê' Pårtiêipåting Area :>',',',:. '" .. ..... é)::,':»:?,:~:t:~~~~i~~~/~' <Ú':;)~:,,::':i: ,;', '" .,.... , ..' );:~::'!~~':~~':';:' ,!~~~00WNERS ',','," };~~tt1~~t:,¡i~,; ARCO ALASKA. INC.' , ,>..,' ':, ~ '. ',':~ '~~.' :'~B,~.. ~~ORA~ON (~AS~) INç: ,,'. ~ .,.:!.<7\~~~:~~~~ . Ir' , , '() '," ",><:.-::? ~ ,: · ~""'·;.l '\ : "'; · )L-:': _ ';;L.~" ..~ ;1'~ ,~!~, ~~ .~.~-', ,.,..:... iiU~~:~~!':" ,Y·UJ~."::'~'¡~\"""'~~;'~::'~'~" ~ ,TItle: " ." ~ (J "'~"" ,:~,:~:":..,,.,,: ,":·~.'~~~':;\~r~~~:,~~~ :~~i^·~.s.s'~ ~'~'.~'<~" ~~~ Date· ' ..' '... 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".'..~."~ ';.~',':,',:: ~;., '~;:y~;?~~·,·:~\~t<>,,~';~~,.~:~~ ',;\~·<;{:'f)~::.~·,·~'~~;~~~,;:~0~\~~7~~;. , '.: ..r.':,;,-?-¡;'~:·,~,~~1tj:~,~~~¡f ...:"'.... %~.~~!...~~J,~"~:t::;,~.¡~s¡~":\"~:~;~"'Y~¡.~ft.'1.- .'~" :~;' ,~~~. .r.!r~:~·; , : :"·~"',!I,¡~;;'4,~:»,))t~., ~'.O~Jl~\;:~';:'~;I\,:~~N;$~~;,r.I;~1!:g;1~·;'~";r" ..." " ' ' ;:> ' ',~'i;;':~~¡;'¡~;~~~\;;~~~)~~~~~i;;tl&;:J~;~~}~~::::';:::A;;;;;A~~ BP E~~O~TION (ALAS.I9\)~C'~.:':~:.¡¿i1:.;,!~3; :'.:::;.: ,.....: <;'";:·':·'.':":\~~~,'?f~:~.~,.·..:¡';,· ::~_':':::'.,~'\'!.;;:?i,},L( , ' .".,.,t, ,~ '... ',....' .. ",' "'1 .~ /':-'::I~'l"I.,.~.::t~.. ;1';\>~.~~~~~~~N~\:..tlr.i:", '1f~'::¡' ..'.. . "~1M", ""~'~1~i..~~,,'·~'~~:': ~~ , " .,,', '-;;'.~v.¡" ,,":)J '-:-:;~}' ;VJ~ Z'~:,~~:¡i;~".,;:. ~t;<i~~~'.' 1:. '''~/~~$?"~~~l~~A~~~)~~~-:i~;~~~~.:,~~;'rJ~K-m;r. , '.. "B .' -. , ~: ',. .~ .,- ~ ,_... """ .. '., ,·it· .\,-'¡;':". -".",,'", .......'!ç.,,.,¡¡.:, T·!·"¡·:-..·., :! ,", "'~'''''; ~ ~ :~~ ' . !:.·'.u·,' ~ ...,',..'..,'....: :'::..~):'y'~I"~.:/.:' "-:~~~~.-',..:¡:~¡~::~':>.,.~,",.: ',': <~~(~~.:'~:.I::",..' ~':. ' ,c ;':~¡;:~,·::~i~~..~.,:f:"~~~"I<~.<, TItle.CNS ~~,^~.;..I . .,~.I-: LA. ,de./', ." ",:" . ,. . ,r~. !,:','~..jol,~:':rr.,~:~,:: "'; ~"'~ .., ~4:~'::'~f.,:¡:~><'::"·;C:i~::':'~::.'t·;i:¡'~~':';~,::r., :. , ';~..,~.~. '~:>"':-?~.·:~,7·,::· ,-.. ., .~ ....: ;-I~::. :,. . , ~~ ,'.. ~ By: Title: Date: .......... Date: ,..'" -.: .. , -4- ) ) ". to . ", " :EXHIBIT,A-1',:' 'PRUDHOE BAY UNIT AGREEMENT . 'AUGUST1, '1999 '. , .'.':"" Working Interest Ownership , Lessee òf, . :O.R.R. ,: Record ", ., ,Interest Tract No. . . Descrlptio~ . . : .' (Umiat Merldian,Alaska) Base Royalty '. Lease No. , Acres , , , ,6:,,':'::'ADL034627 T12N:'R15E,' ·Sees. 18,19,20: ~ ,"',~".\ .:.: -,:r 1,488.00 1~%"ARCO & Exxon' ::.c.~1\",~.OO:·_:ARC9-~%:1;::>}~~:';: \.~.;~~~ ':'~~'::,:.+J:,'. ::,:y. <'" ,:-", . : " .,.. ..,<: :," ..;:: :..'; :¿: ~ 4\f~.:,', ': .': : ,.'.::;, ·l~~(:';:~'¡:Tf;'~·;¡,·~, ~":'~\\-,::;..'-..,.~ ExXon::50%'~Q, .}>~. -;'~~¡t~:~0~': ',i,,: ,']. ':';ADL 034624 T12N~R14E, " Sees. 13,14,23:'N/2N/2, ",:,', 2,12O~00 ·1iso% '~RCÒ & EXxO~".:':'j,:'~.Q.Oo·~,~AACO-sO%~~,:};~,:;;~,,!':'~·,:·:~-~Fi~~~: '."'/<;':',~::,·:i,.i'::;:,....:,./:" . ,,':<;" ::':.,..;~. ".,' ,,:' :,:.~SWNW Sec. 24:,. ,', ¡;..-:'~ :..:/' ":'-::;·i'~"~·¥::':'.;;;",(·,~·'.,' :'\ .,,~~~(~~,~;~-q,+r~.0~.:·,~t.,~~~.~:~k~-ExXOr:f.5crk~/j4,:~~~ii ,,':i,:.:'·'::':~:~;:~':-: .:<Y.8.",'::"ADL,028297, T12N-B14E, ,:::Sees. ~5, 16,'21: N/2NE/4 .,: .~i 2,000.00 :'12.50%'-ARCO &'~on ~-t~O.oo;-..',ARCcAio%:~~h:~~?~:;:::~~~·' :: . . ':<.~'~~~'::h~;~'·.,'<":' ~~:;:\:"<:.':/('!;~~:.':;~.)'<'~'. 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" -, ' ,.1'''_'','' - . ' ;' ,-.: ,.\'.r.""' ..:,. ,.: "~~"·J,.(,,"Ñ'i'~rl.,.·r,:, ".' ."',:.-,~ -.,'I'~gti~~tfl,l.iMT.(('!II1.," '.¡.~r: '~r-u ps- tr.', ,,~~~~ __. ~ ,',' :', ,:, ....... "····1'4' "'::'ADL047447 T12N-R11E" ::S~ 151621'22 :. ,:~{,,'~i'¡'¿'2'66ÓOO :'¡2.50o/c/Mobiì &'Chëvrdn'~t~O'oO : Mobl¡;50%~~~~~·.f~à:·'i~Æ~:' ., ,:,,·::':.,<:~Yi:":::'>·""q ,: " .... <:.' " ',,~:.,,',.,: :,::-::: ' "~~.,'.:,:~~;.~' ;,:,~;,:,./~{>'~;.1J~;~:;:·.:~i~~-i:'~.~~~~~~~}~~~ 1~~~7~;Chå,"9~5Ò~~~~~¿~~;~r;:: ~:~ ,<:',,/>;:),,:;":~ <15;:,ADL047~6 T12N-R11E,' -.:'S~.17,18.19,~0 '~tx;;../ ~-7'2,~~~,. _1~%2v'<?bll &;.ç~Y.rQ~?" ~QO~M~b!I=5Q%~~~~~\<::-~'~:\~ ';, ·:,~Jt./;'.i'16;'~N>L025Eì37 'T1~:~10~,:,~~~~,3~fi~::~f,~1~~~.1Q:t-" I> ::~.~~~i :.~~ . ;:>;i:'~{," ""'1"~',,:>:,':,":' ",,' i". .1..;, -' ,', ,. r~'!..", "'~~'~~~!.!'-?':""", :'8"'!~~' '~~';~:'-'r,lf~'·,~~~~:~~~:=l~ ~B~~lora on,,- ~"~BP'.);iCPloratlon-50%.'.",'.iJ'í .~, , ,:::~,:~~ÞÙJi::: ~';..'~;1!..' '<:(ÀPL 047449' T1 ?N-fi11 E,' ~~~~:~~,30~~~~!~~~iii.t~~,.ø.ö~i·~%.~ilf~¡pjjêvr9n, ¡' :9Q¡M~fI¡SÖW.{r..~:;e~f" '.- ;"'~';<\;': ;:', 7: : ,20:, . ,:".ADL 028259 r12N-,R12E, ~tSees. 29,30,~1.i~ ~ *~~.~'~>~..;~:.2,459.oo:,)1~~ ~RqO.,&.EXXº.n .00, ç;~~ *,~l "':I~'i4 /··\::'(·{,~,t:·:~;·":',;;;,::.",,~·.'\:'i~;-':"\',,:!,ïj;,' " "'~;"'.~:,:." ,~~·-;t"~:';:·'~iJ:<_-, 'i~~¿~~~iJ,'.,":~~~.!~;,'If.!l~t=!t~~f.~;';:.i{::-t¥.N~~~~l,* I.:" " .' .~ ~~ -;.EXXOñ-::5ö%~~~~·:·,~'!:":-'· ~~;!r.: ~ : :""21' <ADL028258 'T12N-R12E, Sees.27,28,33:34 ".' 2:560.00 12.50o/~·ARCO &'~~o~'·'\~':~·"o'.Oo·:+ARCO~sO%~'::: " ')\j,: . , . " ~ ,,: " . . . -~ .~. -.. r " . ExXon-SOo/a '. . 22 ADL028257 T12N-R12E,·'Secs.'25,26,35,36 ;'2,560.00 12.50% Mobil & Phillips '.,·'0.00 ~·Móbil-50%, ,:-. . . . ,:. .: , ,'..~ ", ;". ".\ ;~" 'Phillips-'50%,:,: .2,459.00 12.50% ,BP,Exploratioil :;:~:'·:fo.oo ;:. BP· Explciràtion-1 00%' . 2,560.00 12.50%BP Exploration ::{.' 0.00 " BP 'expioration-100% 1,920.00 12.50% BP Exploration '.. ,0.00 BP Exploration-100% 1,871.00 12.50% ARCO & Exxon . " 0.00 ARCO-50%: 'Exxon-50% 2,560.00 12.50% ARCO & Exxon . 0.00 ARCO-50% Exxon-50% 0.00 ARCO-50% Exxon-50% 0.00 ARCO-50% Exxon-50% 0.00 ARCO-50% Exxon-50% 0.00 BP Exploration-1oo% 0.00 BP Exploration-1OO% 0.00 BP Exploration-1OO% " ,I ,= ADL 028279. T12N-R13E, ' :Secs. 29,30,31,32 ADL 028278 T12N-R13E, Secs.27,28,33,34 ADL 0282n T12N-R13E,Secs. 26,35,36 ," ADL 028299 T12N-R14E, Sees. 29,31,32 23 24 25 26 ADL 028300 T1,2N-R14E, Sees. 27,28,33,34 27 ADL 028301 T12N-R14E, Secs.2f),26,35,36 28 2,560.00 12.50% ARCO & Exxon ADL 034628 T12N-R15E, Sees. 29,30,31,32 29 2,459.00 12.50% ARCO & Exxon ADL 034629 T12N-R15E, Secs.27,28,33,34 30 2,560.00 12.50% ARCO & Exxon ADL 034630 T12N-R 15E, ADL 034635 T12N-R 16E, ADL 034634 T12N-R16E, 31 32 33 Secs. 25,26,35,36 Sees. 29,30,31,32 Sec. 28: W/2, NE/4, NW/4SE/4, S/2SE/4 Secs. 33, 34: SW/4, W/2NW/4, SW/4SE/4 Secs. 3,4,9,10 Secs. 5,6.7,8 Sees. 1,2,11,12 2,560.00 12.50% BP Exploration 2,459.00 12.50% BP Exploration 1,520.00 12.50% BP Exploration ADL 028337 T11 N-R 16E, ADL 028338 T11N-R16E, ADL 028320 T11 N-R15E, 36 37 38 2,560.00 12.50% BP Exploration 2,469.00 12.50% BP Exploration 2,560.00 12.50% BP Exploration 0.00 BP Exploration-100% 0.00 BP Exploration-1oo% O.GO BP Exploration-1oo% Page A- 1 ~ ;1" , . .. Tract No. " ,43 ',44' ',45 46 47 48 . '51 '54 ·54A: ) ') EXHIBIT A-1 . .' PRUDHOE BAY UNIT AGREEMENT..' AUGUST 1, '1999 Lease No. Description (Umiat Meridian, Alaska) . Working Base ··,Lessee of ... ·()~R.R.':'·· . ,·:':Interest'. Royalty .. ,', Record· . ··Interest· . :~OwneÍ'shlp . Acres ADL 034631 T11N-R15E, Secs. 3,4,9,10 . 2,560.00 12.50% AF:iCO & exxon ~;:ítO~OO :~AAC~50%;;t~;¡~', :.. ,':. /,::.~;'>" ! ....~.J .,~ .:.-l·.·:·-)~.\·"· ..-;:..' .., "........... \"1' ADL 03463? T11N-ft~5E"" Secs. 5:6,7,8 2,469..~ 1'~50~ ~~~,.~ ~~~~1~~~~~ .~·~bS~~~i]f ::-;'" ',:~:·A:~.. . . .'".: ": ~:' '),'i;:!~<:,;, ·-¡~''':·~.·~3:\~J~r~~:;i~~Òp:;,50%~;.5f ;':~-'. ,';-';'::/> ADL028302 T11N-R14E, Secs.1,2,11,12 2,560.00 12.50% ARqo.~ Exxon!:)~O.oo l.~RCO:SO~~~::;::,;" _ ·:':·::.,ì·: ADL 0283Ó3 T11~:':;~~i:. Sees. 3A,9.10~.~.~ ::12.&~~2~~~i'~.Ji¡~~~\r ,2NQ " ': '. :;, "," .,.,' ,:':" 'i:~:~:',~:¡;::~'6, ,~'I¡';'~,~!~~·' "1:..,( ~ik'5ò~' . ~1!,'t,~:" ,': ,I~·~;'::~~,,: ADL028304jr11N-R14E;' Secs. 5,6,7.8,. ." " '. .... ,:,,:'2,46~.00 .~~sO~IA~~~&,:~. ~'L~, . ...~, ~ '~;~~\':~r.;~t%: , :',~, :;:. ""··..:1 " ", '".' :.. ' :., '.~/,';~:%;:>:.:<\::.;.\~~j,:<$~~~Wi~J.!. . n-:I"~ '~~l<~::)!tl~.f;: . ,ADL028280' T11.N:,R13E;".,Secs.1.2.11~12 ·.r"':·"'::'~::~;".'...?2,5.~~OO:~~5ÓCY;:»~~~t~~~Ö:~· .' ~~ ,~~~~ *Qö.~~~p ADL028281'T11N-R13E.',j Secs. 3;4.9.10, ~',... . : 'I·'··' ~,: .::~~2,560~OO~12.50%~BP:,~I~~tl~~,.~ ~ ,g~~. ,,"R:~...l!~$!~~.9ö% ~.'~~~ ADL028282 T11N-R:l3E.;' Secs..~.6.7.8 .',::: .. ,', ',.,,,: 2.469.oo.'12.50%:.BP.,~I~~ticm:if: Q,OO; B~,J:Xp~'!ti~~~90%'\:~~ ADL 028260, J"11N-R12E, ~~ Secs. 1.2.11.12 '.' .,\. 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'. :.' ,.:>, .: ,-:,,': <: Phillips-50~ " 1,280.00 .12.50% Mobil, 'þhillips;:'>;";:;,O:'Öó ',.M<?bi!733~1i3%'·' Chevron ,.,,' Ph¡jlips~33-1/3% Chev~on-33":1/3% 0.00 '.Mobil-33-1/3%" Phillips-33-1/3% Chevron-33-1/3% 0.00 BP Exploration-1oo% 0.00 BP Exploration-1OO% 0.00 BP Exploration-1OO% 0.00 BP Exploration-1OO% 0.00 ARCO-50% Exxon-50% 0.00 ARCO-50% Exxon-50% 0.00 ARCO-50% Exxon-50% 2.560.00 12.50% ARCO & Exxon 0.00 ARCO-50% Exxon-50% 2,560.00 12.50%' ARCO & Exxon 0.00 ARCO-50% Exxon-50% 0.00 BP Exploration-1OO% 0.00 BP Exploration-1oo% 0.00 BP Exploration-100% 0.00 BP Exploration-100% 0.00 BP Exploration-100% 39 40 41 42 49, 50 ,52 55 55A ADL 028263 T11 N-R12E, Secs. 21,22 56 ADL047451 T11N-R12E, Secs.13,14,23;24 2,560.00 12.50% Mobil,' Phillips, Chevron . 57 58 59 60 61 ADL028283 T11N-R13E, Secs.17,18,19,20 ADL 028284 T11 N-R13E, Secs. 15,16.21,22 ADL 028285 T11N-R13E, Secs. 13,14.23.24 ADL 028305 T11N~R14E, Sees. 17,18,19,20 ADL 028306 T11 N-R 14E, Sees. 15.16,21.22 2,480.00 12.50% BP Exploration 2,560.00 12.50% BP Exploration 2,560.00 12.50% BP Exploration 2,480.00 12.50% BP Exploration 2,560.00 12.50% ARCO & Exxon 62 ADL 028307 T11 N-R 14E. Sees. 13,14,23,24 2,560.00 12.50% ARCO & Exxon 63 ADL028321 T11N-R15E, Sees.17,18.19,20 2,480.00 12.50% ARCO & Exxon 64 ADL 028322 T11 N-R 15E, Sees. 15,16,21.22 65 ADL 028323 T11 N-R 15E. Sees. 13,14,23.24 66 66A 67 67A 69 ADL 028339 T11 N-R 16E, Sees. 17.18,19 ADL 028339 T11N-R16E, Sec. 20 ADL 028340 T11 N-R 16E, Sees. 15,16 ADL 028340 T11 N-R16E, Sec. 21 ADL028343 T11N-R16E, Sees. 30,31,32 1.840.00 12.50% BP Exploration 640.00 12.50% BP Exploration 1.280.00 12.50% BP Exploration 640.00 12.50% BP Exploration 1,851.00 12.50% BP Exploration Page A-2 . .. . , PBU Agreement Exhibit 8-.1 PRUDHOE BAY UNIT L~J -" '" I. '0 . ¡'O' '1, '1·/ . I;£~;':i, .:~~. I . · · i. u- . . i·.. . ¡ . .. . I' . . · o I 0 I 0 i ¡., 0'·1 . I ~,mt414Opbu.ct1. 7/2fW¡J . ~I-: ) .1/ -......." : : ">z :. .' . o . . . . e- :~~::,J~~\ . . ~--"..I" .,!. '-'I' . ..·1 ! " .! . ~ . ! . .. -- J' . 'l . . I . ; . 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'; '~',:~'~'!-'" .~.o!>...;:,1.'&-~'1-~~d~.a~:t.~ '''''''r.:¡Ç'II\,~~,~ ,'. ,.... ,::r, ~1~~'..!,\" '" .' .' '1. ...' .,". J,', , , ' I.,\r.·t.,'",d. ',; . .', >', ",' ',.., .,. :>:" '·¡'-~-oF~~T:)~,of~:r,,:~.,.t'1\{~;~~ bevron",,';)-_,I3~ .;' " .. :;~vr":.~" ',:Aq~ 047453. ~11·N:~~·2Éh::se~,:g9;'~þ~~~~3~·;.7:!·'}~~~~~1~~'4~,j..~>~~50~tMO~lJ{ehií!~Þ·: ;',~., ..~~T~~@~~t!~;:'~.'~~~' ""..',,'. '",,: . .. ",,' .: .'~ , 'W,..', .:.',~/-., ....:,.:;,.,;.,~'~,.;,:.'" ..,...,.,";,'... .:. '.., ...<'i¡,¡,..... '......~~. . ..,.:.t) Chevron, hll1~~ä':i~%' ¥':, , ,:.¡,.,~1\:~: ",,' ':,. ' , ,:~,' '::~,':::;'~':;..:...~T:~~,~y~Xi~t,~~:;~::<'; :,~·'~~~:;\.~f(:·(::~";~~r, ,,:,~~·¿;,/~r~?:·~W~~~:, . .',,' :~ ,~èyrôQf~~~1i3~:::~·,~' }~?~~~ 82 ::ADL 028246 T11 N-R11 E¡':;: Sec~ 25 .~;~~f:~·> ::, ;. ;" ~~,:f..~·::.:' '640.00 ~ 12.50%' 'ARCO &' EXxOn'~!i~1'~0.OO~ARC~~%~~l>~I;" :.~:~:~:~,r~ . ,:',:. ' ' ~,' :,'.' '~¿~:'::::If.¿(,'.\:~~;L,Yè0~i~±I':~".",~" ~..-/<,:¡:~' ",.:::;··~/'·",I ,.:..~:~'~';~;,;:.·~::J~¡\:.¡~ÚÞ.}A1~~~~96,~~r~~,~tL,~,:~,".': .'J~~~),:.~' . J33 . ",ADl 047454 T1 ON-R12E.~,.ç;Secs-:3.4..~.O~.IY~:';';' " ';~ ,,:: ,::0. ,1,929.09 ' ,12.50 *-. ,MObll"IP))IIIIPS":1..kfÇ,~;,q.~~9.b~'~~~ .':-',: ";:" ::' ."':; ",~~';~~, :,.:j,::,:,. . (. .:,::8¡~~i:;4.;~~4~~t~;, ;,;L,~:;{l;;~:S~:>' . ... i'~;:h~~ji~~~, ,~¡'cr~n4fo/l~"..:~~ , 84,':'iADL'0282fJ5 T10N-R12E.~·,SëèS.~'1.2.11.12 ,,,..1.. ",:··,',2.560.00 12.50% ARCO & ExXon ':....! 0.OO"~:JARCO"'50% ::)':", .... ';";~ ...'J. . .. . ,'.' .",' ".. "È>pcon-50O/o' .. 85 ADL 02828~/ T10N~F:i1,3E~ '::. Sé~::~:;,~~t.~,:· ',2.501~00 12.50% Mobil &'.Phillips"'.,':;>Ò.ÒO!~,,::Mobll-50%;:::<'>' . . ,..'. . .. ' ·>·"""':,'~;';:':"·'·r,;:::',(::':::ÞlÌill!pS~5Ò%. 86 ADL 047471 T10N~R1·3E.,sécs.'3:4.9.'10 . . 2.560.00 12.50% ARCO, , . ":0.00"ARCO-21.~~5%' BP Exploration BP Exploration-27% Exxon Exxon-21.25 ' Texaco Texaco-30.5% 2.560.00 12.50% BP Exploration 0.00 ï3P Exploration-50% Texaco Texaco-50% 2.501.00 12.50% ARCO & Exxon 0.00 ARCO-50%' Exxon-50% 0.00 BP Exploration-100% 0.00 BP Exploration-100% 0.00 ARCO-50% Exxon-50% 0.00 ARCO-50% Exxon-50% 0.00 ARCO-50% Exxon-50% 0.00 ARCO-50% Exxon-50% 0.00 ARCO-50% Exxon-50% 0.00 ARCO-50% . . . , Tract No. ," ) .,~ .. ".:..,~, " ,,'. EX~JI?IT~-1 ". . ':. ,PRUDHOE BAY UNIT'AG'REEMENT:' AUGUST 1,1999 Lease No. ,. . 'Descrlptl?"., . ',>(Umlat Meridiåh{Alaska) · . . " Base ,Acres·· ::". Royalty·, Lessee of "Reèord '," . 87 ADL 047472 T1 ON-R 13E. SeeS. 1.2.11.12 88 ADL 028313 T10N-R14E. Sees., 5.6.7.8 89 90 91 ADL028312 T10N-R14E. Secs.3,4,9,10 ADL 028311 T10N-R14E, Sees. 1,2,11,12 ADL 028329 T10N-R15E, Sees. 5,6,7,8 2,560.00 12.50% BP Exploration 2,560.00 12.50% BP Exploration 2,501.00 12.50% ARCO & Exxon 92 ADL 028328 T1 ON-R 15E, Sees. 3,4,9,10 2,560.00 12.50% ARCO & Exxon 93 ADL 028327 T1 ON-R 15E, Sees. 1,2,11,12 2,560.00 12.50% ARGO & Exxon 94 ADL 028345 T10N-R16E, Sees. 5,6,7,8 2,501.00 12.50% ARGO & Exxon 95 ADL 028344 T10N-R16E, Sec. 4 640.00 12.50% ARGO & Exxon 97 ADL 028346 T1 ON-R 16E, Sees. 17,18,19,20 2,512.00 12.50% ARGO & Exxon Page A-3 O.R.R. Interest ' . Wor~ng Interest Ownership ') ) " EXHIBIT.A-1 . .. ..', PRUDHoE BAY UNiT AGREEMENT~, ';'AUGUST 1 ~ 1999 . . Lease No. . ,Description· , . (Umiat Meridian, Alaska) Base Acres Royalty Lessee of., . O.R.R. Record ' Interest "Wo~kl~g' .".Inte~e,~.t·.,: , :OwrierShlp Tract No. .,.¿,;;','.\';,'! , .'" 98 99 100 101 102 . ,," 103 104 105 .106 .' II ".., ~, . .' 113 ADL 028276 T12N-R13E, Sec. 23 640.00 12.50% 'ARC.O '&Exxon' , , ',' 114 ADL 028342 T11N-R16E, Sees. 28,33 . , 1,280.00 12.50% BP Exploration 115 ADL 028298 T12N-R14E Sees. 17: N/2,NI2SEl4, 312.0012.50% -ARCO & Exxon NEl4SW/4, excluding USS 4044 116 ADL 034622 T12N-R14E, Secs. 3,4,9,10 2,560.00 12.50% Exxon 0.00 Exxon-1oo% 117 ADL 365548 T12N-R14E Sees. 1,2,11,12 3,601.00 16.67% BP Exploration 0.00 BP Exploration -100% T12N-R15E Secs. 6,7 within 3 mile limit Total PBU Unitized Acreage 244,875.00 LEGEND: ARCO - ARCO Alaska, Inc. BP Exploration - BP Exploration (Alaska) Inc. Chevron - Chevron U.S.A., Inc. Exxon - Exxon Corporation Forcenergy-Forcenergy Inc. Mobil- Mobil Alaska E&P Inc. Phillips - Phillips Petroleum Company Texaco - Texaco Exploration & Production Inc. Page A-4 ...~>;~ PBU Agreement Exhibit 45-1\. . I ' - . . --- ~ i) "__ 1." " " . . ; .. I .. 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'.. . .._~ :..... . .~,.... ;;... _..... '¡"o . ;.~.' >~~i~~'U.~~ ·:~<;~?~i~}i}~~,~~~~)~~t;-¡:,~~~;~~.j~ .:.,~~\~:i~~~1~;~~;~:-,~~·~f~~·~~ ~..: ,~~::; I >"¡ .'{!ff.(.,,~' !.:~:ftt'~~J:~jÆ~~I\~:~,,':<~I'~:f~~'~~·!~;>~::' ~ ~.y: ~~.;:. " ·.':¿ìt·.,·0-~~:fJ~1¡~~I.~ìlí~~!'11f¡,··.~~ji~ . _.,;,ÿ~,-~, ,._ "~~'." ~~,~_~;¡>'¡'.~$'..'...~.:Þ~"''''. ; ", ,;f.,¡, }'f;{ ',::'. ',: ~:' :.~ -~j~'~J.tt\~~::~-~i~r~~f.~":"':·:~~~ ..~?~r.:y~, -~~~'." <:: :~~}~.. ~ ~-.i. . · ~)~ - ·.:.:;f~<.r.Y"···"· A~~ . I . \~- I - ,; e .~ ¡- ....-. '-a :.y: . ..( ....--- . r ~: . I I I I I . II . -..- '\ . . :~ \ ('" [:=J I..btJum8 PlltllclpeIInQ ÑM . I .. t l~:.~~~-~- ~-" .. . ':IT5,soo o 1 t ........... r-1----<' I . -- Q U ~ .~ ~ ~ERS EOUAL N"I!NHNJD ( ~ t: I I .: ~I¡. 1 . : =11 ---- PRUDHOE BAY UNIT -..- 1 ' -..¡..._-~--- u i . 1-:--- "' !l1~ . ~ " . i ¡ ",.. 1:2h ..... n.. '.. -'- - .. ) ) . .. Lisburne Provisions ,(August 1 , ,199,9) , ' , EXHIBIT 45-B TRACTS WITHIN THE LISBURNE PARTICIPATING AREA AND ,LISBURNE TRACT PARTICIPATIONS , , 26 T12N-R14E,'Seës. 29, 31,32,', 1,871 ' '". :28299. ....1/8 " ARoo &,' ' ·.;'ARCQ.6O%~r""o(;':k~~;k~87", ,:._)r.~.. , ,",,' . <'''; : , ", r"'; , >...;-.' ,', , '. Exxon ,',' " ' ,~Exxon-50% ~\~~ i,~~'~}~#r17.~" '.. j;'::!i~} 27; :;T12N~1~E"Secs~ 27,28, ~3,'34 2,560 :'.. ;~'2~ '::"::¡~1/8 , ,ARoo &:<- .::' '.:!~AR~:~~Æ~,:t{.;'.yj7 ;,-,.:..: -<~5~Ût ,:':,,"'':'','',!':.:,I,:;,.,,»' '" , '.":. , exxon ï ' -Exxon'J:.ftOI'!?t·¡i.\':~~~,(:&';:;'¡<' -, ...~...::) '. " . , ' ' -..Alto ..,~.~, :". :~~...,,: '~,' .' " ',~, "¡.... 28, ", T12N-R14E,'Sees~'25,:'26":35,~36 . 2,~ "~.~'):,~~1 :':~-'::i:~~'" ': 'J' ARoo &,.:.;, ,,'., ,:'-~r.ARCO~O~/(i¿~~~£444;' '.,' "iI~ 29 TI~15~.~~. 30; 31.32 . ': 2A59",:~,?~t~ ,"::·,E~'~;:h.:':ijær~~~·:~-~~~ ,30' T12N-R15E"Se~.'27,28~:3.~~34 2,~ . o::~~.t~:,ð!8..., ',',ARCa&,r ~"'. ," ;~,.:..ARC~0%.~!of~~;J~526, ;:"''"',: ',,'., , ,,':,' .~:' . .,... ':: Exxon ,'Of! ," - ,:.:,Exxon-50%'í; .i'~~Y.-~·:':;:· .' -:' \,: 31 T12N-R15E S~cs 25 26 35 36 ' '·2560··i;,~·~34&30~"¡¡~~is' "..' ':'I~BP' ·')"::-';:'~.·~·:L '·,·:<.t'5f;BP'EXPloraúo;¡.~~'377 ,:,......::~;1't; , " ';- ,," : :,,' , ,~ ' ,', .: <':""<:.~<; ,:: :.i·i· -:.,.,..' : ,:, . '::...: Exp'lci~ati'd~<:',~', "'~~>~~100o/~ ,.,..: :::=;~~-t,.gtt:~:f¡.j;-~(.. .. , ':~: "'~; 32 T12N R16E Sees 31 32' I'.. ,..., . "'."'1.231 ,¡¿..~ià:i63š';.;ii~~nr 'I~- ~ i~tBP ;'Ä~~~~·~i;...:·;~i~BP ~ìci~~~~..81~5·'·'" ',- .....:,i¡;~ , ,-, ;;', '~;.;\.:;..: :",,',: ,....;:....> ,:,.". :.:'j~~~;i~~;.~~.:.,t/, '://:'·Expí~~Û~~·.:i~o. ,':f-i;~~100% :~~~'{fl-k~"¿~~;:if~':' ,.:>;;;Jf, 33 T12N R16E'~ S~~ '~28·· '·",!,'ù;.; ,.', ,:'<~::1r52ö·!~;~â~~~~~Ìå'·;"~f~..\¡.J.i~·Bp~r.~;;'¡4'~~·:"'~:;'*BP c~ìÓrlltfði1~619 ',.. .~.:...~....:4 . ,. ,". . ~ ~·t\.·..· ." 1 .' ~;:~~·'~~·""''-!.I~~t.:~~~; .'t ..... t,;, ..·.~..·:~r·'·;·:;.··::·. ~~~: ~'-I" ""0_ . ~\··~:1.f....", '.:':~:".~: W/2,NE/4,NW/4 SE/4, S/2,SE/4 ..', -':..:" ,.:, ~~:"':1:,t;~~.,:'¿' ;'/:':'~iJ.::. ..,. ..', :' . Exploration .: ':,:,100% :-;''':::'~M''' ;..: , ' : ':::-,~ ~C;;: ~Ét:-': :~W/~ '~(2',~(4; " ':::'o:'¡;:}~~r.~:~;)~:"r' '" n ':\t};~-':~;;". ;"~G:~~kÐ?:)~1f:' .' '2;j 36 T11N-R16E, SeeS. 3,'4, 9,,10," ' : 2,560 ~~~·:!.~28337~·"-;:·1/8 ',BP ~ ::~.::~':'';:'''.':''; "~~~BP EXplôratlpn{~659 :.~ ',- -;-.l~i!( Exxon' Exxon-50% ' ' , , 40 T11N-R15E, Sees. 5, 6, 7, 8 2,469 34632 1/8 ARCa & ARCO-SO% "7.342 Exxon Exxon-50%. .' '. 41 T11N-R14E, Sees. 1, 2,11,12 2,560 28302 1/8 ARCa & ARCO-SO%'-' 5.418 Exxon Exxon-50% 42 T11N-R14E, Sees. 3, 4, 9, 10 2,560 28303 1/8 ARCO & ARCQ-50% 2.249 Exxon Exxon-50% 43 T11N-R14E, Sees. 5, 6, 7, 8 2,469 28304 1/8 ARCO & ARCO-SO% .538 Exxon Exxon-50% 44 T11N-R13E, Sees. 1, 12, 1,280 28280 1/8 BP BP Exploration- .038 Exploration 100cyo 59 T11N-R13E, See. 13, 640 28285 1/8 BP BP Exploration- .030 Exploration 100% 60 T11N-R14E, Sees. 17, 18, 19, 20 2,480 28305 1/8 BP BP Exploration- .145 Exploration 100% 61 T11N-R14E, Sees. 15, 16, 21, 22 2,560 28306 1/8 ARCO & ARC050% .919 Exxon Exxon-50% 62 T11N-R14E, Sees. 13, 14,23,24 2,560 28307 1/8 ARCO & ARC050% 3.527 Exxon Exxon-50% 63 T11N-R15E, Sees. 17, 18, 19, 20 2,480 28321 1/8 ARea & ARC050% 8.554 Exxon Exxon-50% 64 T11N-R15E, Sees. 15, 16,21,22 2,560 28322 1/8 ARCO & ARC050% 10.068 Exxon Exxon-50% 65 T11N-R15E, Sees. 13, 14,23,24 2,560 28323 1/8 ARCO & ARC050% 11.080 Exxon Exxon-50% EXHIBIT 45-8 1 ., . ~ . ) ) , , ,'Lisburne Provisio,n${August:1 ,:i1999) ... , I', 'Tract,.., ..4 Number Description, 66 'T11N-R16E, Se~~1,7, 18, 19 '66A 'T11 N-R16E,Sec. 20 ~':'.; '.'.'~'.;;';:"~~'''/.,,,...: 67, T11~-R16~"'S.~~~15, 16 ':', :'~.': '.~:~:" ;;¡..~~l.~,,, 67 A ,T11 N-R~ 6E,:Sec.',.21' , . ' .:.. :"/1 .:'.~." . 69. T11N-R16E,'S~C~.3~, 31, 32 ,:. . , ~ " '" ' ' ~ :~ "', ' "~:: ..:.: 69A T11N-R16E~ Sëc~'29 ''>,:::'';::7: .,:.::.;,.:.~;~:,.:~~.. .~'" :'. . I .. '70T11N-R~,~~'$~.~~.':25, 26',~5, 36 ,_,«.J." :", ',:.. ;:"i)Y~.,~' ,71' . T11~~R15~~'·'SE!,~s.r~?, 28,33, '34 '<.;.",' ;~~:'\;;'~:":~::'~,:'/:/~~:~~~'~~~~. : a·ø~..:~1 '.~~\..'. ,~, .72· ,'T11~-R1~~,:'~~~.'~9, ,3~"31~'32 '. ,':; \ ,:': .:.(,:..:~: ,~'.f. .~~. .... :'.. '.~ I : 1.. .' 73T~ 1N...R14E~ ~ec~~':25, 26, 35,36 " " " " :'~~~.; ':,:":.\ ~!..~1:-':: ',' ,,'. 74· ... T11N-R1~:~r.~~,~~~,~7, 28, 34,:. , .~., ~'. : " ," ,·~.'t,,~ "..,' 92 :.' ':T10~-R,1~~,::,~~~~~3, 4,' . '",' ~,'~: ::.': ~~>r·.I~. '~'~': ,~'~:.:.,<:~,¡;:::~.~"."." . -~,~ : . :., ,.." \ ," " 93; ,T10N-R15E,Sècs.:1,2:. 94 T10N-R16E, Sees. 5,6,' 95 T10N-R16E,Sec.4 114 T11N-R16E;Se~s.28,33 All tracts are within the Umiat Meridian , , ~:"", ;','..~:" ,",', ..'. . , ,.ŸÌ~rkij¡'g }¡2¡f~f~:~;¡f~Ü.2;; , ': IntereSt ,~:¡~:.¡,~;'Pàrtlcr âtlon $~~~ :~~.\ I Ownershlpty~~ . "~~il~J\',~J' " '::~,' ,':"~,::I',3~~:;.~~ t;~t/~·,·:;:~~~,~ BP ,'. . '..' ·.::~BP ~I~r~~~, ,~~ 'E" '. r.< Explo~átion '. .:.~~~}}_~: .:;~.:~~ ~ 640 ·r· 028339 1/8 ,BP." ,: '. to., ' :··;;.BP.E](íJ(or~Uò~ ',' .. ;~~Ì~è.I;:':"·~__ '.-?~'; '::;~i~'::1~ <.. j~~b, _. 640~,:~~,f 28340"'-"1/8,, ;·BPtt'.;~:I~~.~~·"i"~~:-::~h.:.'-;.'~fjBP.'EXþIOrâto , ; '.: .: ". .:. . EXP~~~~~~~~, :':<:~ '~::~'.;.;~~~'~:~:~;~: 1,851,..,;;....\~·28343 " ..;1/8 BP .....¡.;,;..¡,. '.~'':"';" .l.,,\......JBP Explorati ·,·~}:~~~r¡~1~i~j::.,·,,:.~;:il~1ti~r!l ": 2 6601~j;,"28325 ~'1~;';18 '¡.' ,-' ..t./'ARCO·&'!\-..,....,.¡;~,<jl>,~~":'~'.~~ö% . ·..,~"'·:~~~}ä~~fà1;t-~t~r.~'i~j~~Ç.,:,'-.' ~ ·~,~\~~ri\~Þ.l~~~~;t~9~. ,;.' ,..·(~~,~~t~~~~~,6~~/8.f·-'~"':~~çO.:~~J..:í.~~S8i, , \ , ..,.:' ·.:i.-i!~~N-·t.,!.,.¡zo't~r;'..: " ":..;~,., ",:, EXxon ~~:j,~L ':; :;.",:'....'~f",'i~Exion-50 ',,' ·2·56-0·''ij.~~~\2å3åà*.t:~·1/8':·':' ¡ ,,·.¿,'ARCC)'&,::,·: ;';':;";':rc: o~:\ '':~Jš.MC0:5· . , .,'~' ~·';~j1~·~~~~r:\,~~~!t:~!·/::r':':,;:~,~': .,:~:,.,,' >/ ~~~,f~~~¡~(;,f~~Ii~t~~{1~Õ!~O' ,;( , 1,920 Vl::Ð:·2~09... .:1'8. .:. BPo:O;;'\~I'i2J..~;~~-:i~".·~,::.~;.~·;,tap.\.EÇI 89,w: , '. ;':' ~S~~t,.;~~-,·~~~'~:~ ,.~ '.; :~; - ' ...... Explor~~o'n~·~:.>:~,;'~".·:~~~OO~{4 , ;-~~,~ !ii. "',: 1,280~i~~~28328'-: -;,:1/8 ' ~:.~·ARCO·&·~·~J;~:~~:.~l~&~ìiARë~oo" ·26~.J. I . ",:', :,·;i.¡·ó~~~~t.~~:\:·V~:',:.}"::"'~"~!'\"Ù!: ,:,: ',i.:ExXon'~~'~I~~;.~~~,~~:::~JËXxoï;-:SO%~ "~~.::.~~ ~ "'1'280"ii~(hi28327',< ~ "1/8 .' . "ARCO &;::, ;';.)'~;: ,'- '". ,:!~iARCÔ-5~;: -.' , t-õ4å'>"'{~;"~ '1:;¡~~~;'i:~,~t~~5' "...~~. Ei~ ..,.. ··.'~~~ci1~!:~~t~~ft{-·:}~\ . 640 .: ":28344" ,,·,1/8 ,ARCO & -, . 'ARCO~500k·:'·>::).',::):~025 . Exxon .., , Exxon-50%. .....'. BP , ., BP Exploratlon-' >~ Exploration 100%' .. ,,' . ,,' . ':,1: '.. ' ' ': ~ ,', ~:" ,~. \~:~~: ~" ., :, ' .~ Lesseë<:~: ' , Of Reco'rd ' , ". "", ... ' . . ,,:;,;:: ')<::'::::;>:,ADL ',:::,~:;:.;~:,i No. of ' ": Serial , Basic Acres I '" Number Royalty 1,840" :""."28339. 1/8 1.280 . 28342 1/8 79,999 1 00.00 EXHIBIT 45-8 2 :::ft . Exhibft 91-~ PBU Agrè~ment NIA~K PARTICIPATING AREA : : ,i'· . PRUDHOE BAY UNIT ~ ~ ! I I I . ¡[)....'...'. , .. ; . I .., __. I ' . -~-~~'- ,- I .. _ .. ._~ "1"' r;r. ADI.,'.. ,el".':,'-. ''¡: .:'-: "." '"-' . - . .".. ~. " eM I. ,¡';'. .--. . 7W':~!·-'~-' ,~ ~~ ~t~~ .~ . , ~~"~~ ~. I~£~:'r..t -: ~pf;l: :~·;~~;-~~t,:· . ' 'L, ,,;"': _ ~-I I .. .... __~..h __ -_._.-.,¡-_... ¡ '. > ~. -~3~ ' . · I . ¡ . ,-.- ~'. - I t--. ,-J.___, ! :,,:.:¡;¥~::J": l :-\: . "' j" -fl'l I 11.r . .., -. . , " " ,. .' . ".. I - .~ . t . ~. . BPX~1+9M'n1414Oria.dgn .' . ¡.....~ '1d ~ . : . ¡ -\ !- ......-t...--.-¡ ...~. ~-~-':'" '-=-~.~ -- . - I · .'... · . . . · ., _..____0 . . .- t I- f' i I . . .! .1 i ·1· i . .' .',::r~~k. ~·'I· . I. .... I ' , _j""- J.::" \'~.! . . , . ~ -, cf·;.-~ ...;.m::;;;; ~ , I . 'I' :l.. It :·1· Jì· -0--. :D ~ .' .-+, ,,¡, ....,-t-- "i :---.----- --.--.:- ""f I" 'I"!"I' . .. .-!.. ,.__..-____I____-L.--_ -'- :=\- ---. .. . , -_. ·j·;·i· . .. .j.. II; ~ !..~! H ·__!u~__...L· -t'- '___1.. :,.( ~ ¡ ..) . '1 , . i I ' 'I ' .. ; .. .. !.. ~ . . . . ! -:-,--:---:- . . ~!. . I· . 1-' ~ .16 -15 .--- '1~'- ..-.- 4------ I --- - ! r ~ .-.... . ; ~ :~112. - . ._ ADLœsær PDW.7W, ...D1.047.447 . ¡. . I' . I . ~7.ê89 .A;'~ -, . ~":' Aöt.o.B2Š7 ! . .. , l:t ~ I ~" . . j . I. . . . I" . . . . .. . :. ." _.. -. . . . ..r · -t--+-- ------11 ---1 - ., :Þ'.. -: '~, ze ,,'~......- '.J . : . -:t.....,.¡;L.. ,;,1: Ii> ,. Ii>"¡";' ,¡,.J,,;. ~ .;J..;;,. .;.",;;,. ~ "'~; I· j ~ I L I :t'. . i . I I . . . . t , . . .. . I.' -' -~. .'. I.t · _ · . · ":. - : ~__ ..__~_-_ _._+._ __ 1---'-- -- 049 -4':&----.., . ~ . 42' . : . 11. ,i' .J. I. ..l. I. . I. . I . . I. . -. . . , · ' .' - _..L__ _._ _ ___L__ \.1.028241 \.~40 ADl.!¥7450 ~ ~ ADUI28280 ADlC!S304 ADI.D28303 'I : I 52 ~1 I I .' ./fi'" ~ , UI' . I· . . . . . ~" . e:s . :L." - . · · · - ~ ~ · () :::~.:,'. . '- . __ ___ _______ 53- &N~t :X;;Z;....3 01 . ,"- w I . . . I. . I. " . . 5A . ðaA . . . · . · ~' " · · · ~ "'.': - .. -L-~ _! ADLQ28244 ADLOI!824ð ~ JD,\~ ADl.02I284 ADlO28285 ADI.0283OIS ADlØZ8S08 ADI1RJ!MT ~ 82 Ji .' - ,- >-' I. . .!. . I. . . . . .. . 1· .' .. ·'L · · .. " :.', -.. ' · - . .: :.,:'<-' -. e 'I ' · I f '~ ..'."' "'-'w', ".. ....... . Ó.J, -. . . . _1_____1__ - - . -:.. ." ----t-.- - - -Et- -eo --7,11-" '7'1" " 7': -. . '1. 1"'- rj""::,;' f ' . ., I . ..~~ ~. r: ...... J-f"! . \ ~\- _":r.':,," . d . l' .:.!. ~. ..m.cbei44 ADl0474S3 ADL0474ð2 ~ . . ~ ~o ~ .~ Dà~' ~ +.:...~' '¡ ~~ _:-+:~ ' , , ',; . ¡. . ~/ jk~:~:·,~", ~~ ~~~"f\; ,:~l:! :;;:t ¡ . !. !' ¡ . ¡. . . . . AÔLß1454 ~ AixMTiTt '&r;;m~1í ~i· ~f:"Âèt.ò2e32I =¡-=[~__:~~,[.:_t~,'~·:·- ~=~.;'-~-. . j- '. .,-!, · .,~_.. .::: ;~, ¿o;...::,:: i:~t :~~J.:! .~~ I . I. . " . II . r' . . . . . .). . . 1-· - *.~ --e' -.. -".- '.':: ':'.'~ f:.~ .....,,: .'L tf,~ ~. ~ -<--.' ....1-.+-__._..._. , ___l... ADl.,(:¡;q478 A"UIC.m ADlC2I3f4 ADt.CIæMs,'. ~ I I I ,; I I ·1 - - I'~'-I ,',.. -.<". '-'r' ..,....,'I'!.,.. '. " .~'t:'.-r: ~I" .' . I' .".:.;. . . . .. . I' ... . " -. ,'¡i·tr ~-" ~ :,',e i"'. " ~' '." '~":~ ':'.' ~- . T~ .'.: .! ;1-:-'::' -:!-:-!~':¡: 1':- ~:.,! ·T:·~(:~'~#;{ ;~\, h;'1ò~~~ !~i ,:'>~,' Be. . , ,.:. ¡. . I . I . I . i . ~ '; ·t";;· .1:::~~~~'~~·\.; ;*:~: :~:~t ,~~:~;Ö~"J"~.;,~:IM~~\ .,' .:--..' .... . ---', .. --~_.......-...- ----t-r--- --i-··' ..-... -...... "T-- .' ~- . 1 ' ; : :: = ;~"';"":" . ¡ : .:- r: --; :.':.: f ': ' : ,',: ,+:t:', g~ t~;;: ~~:,j1::,ts,¡:¡~~ '-r' ".,.. - I'nIdhOeIleyUn/lElolnl8ry .l. -----t -·"-1"'-+-"'" ...... ..,--._~,--, 'J:. I' - ._----~- ,~~·':'tIf~~-¡-:- ~!.;-j=:::-: ~-·:'f~-t~i-~'¡:i¡¡,; fi;1;~w~'0 !WI * =rl. II!. -;. I ",111 ;.::{i".....~.:.¡, .,~ q,',:....'I'f:...< r: 'j':, "\ ~~--i . Ii : I "...: ,.:>< . . . ) Niakuk Provisions (August 1, 1999) ADL No. , 34625 "34630 34635 34634 Exhibit 91- B ) , , . Tracts within the Niakuk, Participating Area and NiaJrokr~acfPaftïclp~tions': " , , "" ""~";:':",/;..., <:.,....,": /'/,'.,;" <~:~::.~-,.,,,':"":~'~~:.:.~:':'.' ":':''':''..;:'\~.~ :\.,""1 Unit Tract No. Section Description ", T12N"R1SE:UM;' 4 Sec.' 13 , Sec. 14 Sec~ 23 , SeC~24 31· , : ~~,~:~?",',~ Sec.,~6', , Sec:'36,NEl4 ""'1 No. of Acres Working " Lessee of Interest . ",Trac~ 'Record",',; OwnêrshipPamcip~t~on '. E . ¡H~~!¡S ;;ri~;:4¡;!~~1I,t~::r , , . ' .: ': ,P '. '~",.'-:: '.'..". ~'''''''.f;{í'f, :-,..,.!\~::':.~,>;..'~, ".: ,,' " 640 ,', BP~xploratiÇ>µ, ,; .1.0Q.%':.i .,.., ,..; '~~~:> ...,:," ",; , ,,!,;;:,:.{:,.:.:~40·,:'·'::,:,:,:j";i),'" B.~j~~~lt?fi~~~~' ;~~,(9~~:~f, ~~~&2!~:~~~..~~~:. :;,~,: ',~> 640' ',,;:~' BPExploration, ,:':"100%,~j<: '·,':.::.,Y:~:'~':':t-r.!.,.::, :", " "'\" . ,.. -:. , .. 'i..' ø" . I . .'þ "·t:":~.·: . l.": ',' ::.,. ..... .~.;.," . , . 16Q' ,BP ~xploratioi1 ....'l~O% .:,-~ ......,~,:' "'''';. " -. ,', ,32" ; 't.,l~~;:~}~,~:VM,:' , Sec<f.~ :::..i,,\J:,',:,:'; Sec. 30 Sec. ·31 'N/2 , Sec. 32 N!2', ,." Sec. 28 W/2,NE/4- NW/4 SFJ4,S/2 SFJ4 .:. " TOTALNIAKUKPARTICIPATINGAREA, " 33 , " . , '"' . . (,; ~¡'l:7~ ~~'~;...:: '~: '.': : <r:::~::~.:~ t!~i:;~~'~~'~" ':~ ',,~\~~~~~,!:t;~;:~~}:::::::?, BP Exploration· "'.",100% :,';"'" . :,,:,':~,:32~01 % . ....'... " BPExpl~~~~'~:: ~(:)_~q~.~~ "~~,,:·:~'~~~':·.~:,,:'r:'~.~'·, ':,' BP, Expl~~~,~~~ ·,~t:l,q~~·;ii~' ~C:<':>;?1:,r': .',:,:' B~, E?C.plora~on; ~"9¡,;lOO.%_~~ ';'~~""\"1¡~'~I:;':'~~".'" BP Exploiitloh!- ~rîOÕ%~~ ~+ti32%~: ," -.: ... ,,": i~~~~:;~l2:·;:::::~;i~it: 1/(}!~t¿ : '-,:',,6443.5,' '..... ··\;':":-'~~~·.;-:::-~~/:~~'1-:F::·~:~,~::·:;t~Y;:~':Ú¡:,:tOO%· ' . , , . ':,' ',::,::~':':\,:' .':. .)S:;/!Yli1~'%.~,~::'f}~ff.~~~{:,· ~¡~~.:':./( ,',~:~:;_. ~' , " _,' "" ..-.,.~~!\'d.. ,...;.~~. ."..', " , " ' ':.~:~' ':?.\'~ ::. .. :', ~~ ~.;1,~,,;:, '~~, . : _ ':~:','~' ::. ,; " . , . ~ ", ., .., ) . .. .' :~..: <- , ,- ".. ",'t:>,,:i:,(::"'. . . ::'. ' .. ' . ., ' ..i':" " ,,':~~ .",'.?~(~~~~~,BY:·Am~~~i~I,.ai: BP Explpration (ÀI,Cls~þ),lnè. .,.. "':,':<ç,,:,.,;<,:,', . .':, :' .'..... :'- ,', :.. 19,07)564-5778 .. ;:;}~::::r," .~.;>~:",.i.,;,~(:: :1#,fj':\\" :;',: '", " ~,>~: Y::'",::::~;;,:::,:;\:,,;,,\ .' .:' . ,./:,:'" i",:::,;'~:::':::;~::', ..';..:"{",, .. ,'" .,. "",,"'1'\ "':', Distribution S~ - . . ", , " . "l ,.', ,;~'. :," :. ,~\ ~'~:"'L ..,:\\~:..~ i:- ~,:. " , ,-; ,,,..... ',:\, ' r :~, ',:", . ~";:::',,~ :', :' .' \,' " ,t·....:' ",. , ' To: Prudhoe Bay Unit:I'PA',s """, . ,," .. ..' the Attorney I Cli'entpr1vilege.'"The inf0m1ation, '~.(intehded lor· receipt and:µse,solely by the~ndividuäl :or eniiW¡:f:?~fj\ nalJ1ed abov~ ..",,'If. ::you':~~~ ,:no~':t~e ,','in~~Qdêcl /redpj~òt~.~j á-:aý'.'disclosur~~ ;';'::çópy;ng:' or: úsè":of:: thi$ f:frifonTlatiòh'r~fS:~~\i~,* . forbidden.::,'i(yo~;havé. reêeived, tþis. in':,~ìT~~/ptèäse'~9,tifY'us bytelep~one,:iriîiri¢diatelyP:Thañk'yoú'~":':i~+'i~~~?," :':' :·~"';:,<)r H. I. McGee'^:'·./.'::',,:: ,,':.', . ARÇO Alas~â,',),~¢~:":':',, ... , 700 G Stre~f:':::"',":'<'" ':, . . P.O.' Box 1 Oq360:,:,':':,: ..:" ... . Anc~orage(:~K:\~9,519-Q3~,q;:>:.:,'<' . ~;~!)~~;~l~i~~;':'iJ!('[tf'j]:if';,;j . ,,(~01)~6~,p.~QtfA)(. .'; '. ,. , '" ..,(66 ~ )39175()14/FAX J~g",~,.~, " . ' W. G. Fenn~I..·, \. , . . ;,;J:':i7~~~~~;;;~.::. ·.·';):i·)~'·:,~:·~. ~:~:,' .' '~;·,,:}{¡:i~;'/'i:;:~l Chevròn U.~~~:;: I,~~. ' . ,:,~~~ç~n,~~~J~:~;~~i~·:;~;,,:.\ :, . '" "', ::.E>öèon Company, U~S.!\¿t;:':I,t~:,~::,~:,,~":;,:?~¡~~~, 1301 McKinney:,....,·,,'::·. ' ",;,;310 K::Street;,:Sliite .700 ' '. ..~.;! "'\',¡:, ':,:',. \' \3301 C Street :'., ~:;,',>r .~';;:, ,:.,:,:",,-": ,_~i!t,+l:"~~~: ,.,t. ~ . /~' \~. '0 ..~. .~!\ ~ ", ,:. . )I~.·I.. '. .....:..:. .'..". -' I I . . r' . . tr......·¡ .;:): I Houston, n(-,·77010.. ,'" ' : jMchorage,·TAK~~99501. " (' <', < "," ·./P.O.'Box::196601:;:-·~,'¡~'::.~:5~¡iif.i>.:, :"<'.';',,~~ ' :;; . ù -;..,';_' \ 'I' ~¡ ',' .' ..~- ", .."...~ I~'''-+ ~.....:... ..~I··. MI" :~:(,~:~-:.!.>\ .·~'~~'-:·;r·¡·') . ..... ,\'t~~..._~. .....;. ·'I,:\~I·.r..\· ::;'~I 'p,::\..' ':, ",. .,r":~·lr:..,,, . , (281) 561- 3580 '¡~;~-::4i:; '.; ":^\7'~)I'~r~:;':'" > '~,~¡\ >', " ·~1·~(1~!9Q7\t~58.:ß6QO, ~,~'\~:;-F'r;"·1'i.:,:§Ji";P.l~~f¡tè)~1Anchorág'e,~'!;AKJ>.'9,9519~~~160,1f#P¡~~t~I' .: .,' ..~..t..,.j'...~:"\ ~\"~I""'r.\r ,:.;¡,"?\4"'.nt-I/~.ry!'I'¡t'l''':'.'i'¿'1'Llf.''1.\~ ... ..... ..:.-....... I/',..r "'},,..'t.. ".-.. ....tf...v.....,-~~~tL.:..'..t..1\·3:'4Ï~··\'~d}.".. (281) 561';3S801FAX ,\' ::'!; ',' ",~'~', " "r(907)~158-â60 IF AX ':": ,::, ':[""''''··'<',P,..;;A(907) 564~j689' "i)'·:~f..t~~r!;';>I!i',:·\'I;>f:\,~: ,-~1:'ir , ',>~::"::' " , ,.., ,: ,\ ',; ",:' ~::....~. ,..~~,:,:~.:~:~::<~" ',' ':"'.f;,~.,,', "~":"'/~;(907) 's6''4:36T1/FÁx :"",~,;~:~?;,,,,' ::"::~~:~~~;~ J. P. Hollier Mobil Alaska E&P 1200 Timberloch Place Woodlands, TX 77380-4999 (281) 296-3520 (281) 296-4284/FAX J.'P. Johnson" , Phillips Petroleúm Company 6330 W.Loop, South Bel Aire, TX '77401-2901 (713) 669-2968 (713) 669-7004/FAX D. W. Bose ARCO Alaska, Inc. .700 G Street P.O. Box 100360 Anchorage, AK 99510-0360 (907) 263-4171 (907) 263-4443/FAX Date: Thursday, September 16, 1999 From: RECEIVED dAN 2 8 2000 Betsy Pfannstiel Secretary, PBU Owners Committee BP Exploration (Alaska), lnc. 900 East Benson Blvd. (MB 6-2) P.O. Box 196612 Anchorage, AK 99519-6612 (907) 564-4489 (direct line) (907) 564-4637 (fax) AJaslca DB & Gas Cons. Gommission Anchorage Re: Ballot and Notices for Contraction of the Prudhoe Bay Unit, Niakuk Participating Area and Lisburne Participating Area " .. ) 'p ¡ .' ,: ;, ' ," " *' *. ,* '~ICA,~ION ~T'REPORT ') .... p" 1 . ," . ',' " ( SEP. 16. 1999 , 3:40PM ) * * *" TTI ADDRESS (GROUP ) RESULT, PAGE , (G3)H Me GEE OK P.' 18/18 (G3)V HOLT OK' P. 18/18,' (G3)R HILL OK P. '18/18' (G3) W FENNEL OK P. 18/18 ' (G3) J BRAMo; OK P. 18/18,', (G3)J HOLLIER OK P.: 18/18, ' (G3) J JOHNSON ' OK P. 18/18::'" (G3)DBOSE ' ,OK ,(G3)G CARLSON ,OK , ." /' ":. ,. ~';':. '1"" I : ':<.':" :',/ :'" . ..,'. ..... /' \ .\. .,' ~~. ~:::~~~~.':.., :;~i; .':'. '. " ~,~: ..... .. '.. ..~ . . '. , I ~.~ 1..1 . . ~)~,~~~.~ . . ",E-4) NO :FACSIMILE·.'icori'ECTION :;'~,,'i,~~~,{.~~·}I,·:~~y:,:~~.i.o:"~. .' . ',': :,': '. ", """:,V" ~J1ft~~J:,tttš FQX~d By: 'Amy.,G;II..~ ~f iJp.!E*1~r~t;~:~(¡J~k:J~~íììê~it~~ '._...',0,' '.' '..' ..' .."...- ~,' .;,,·,.:'''i'..1:..~';::i~''·'.Ì(t··~'~lgD7)' "564 '517B";dJ~{: , ','..' ~'{¿i;:'.~·,: - '.~'.<';::~·::¿~~.~{\:;::~~;:..::.:~~~:t~~¿t~'-.,'.~.· ,~. ·:¡,¡''¿I'~·''''·;~'·· ". , <' ,.." ,-," ",., ..,;,¡;;,,,-,,, ; n".~""., ~"'.i<W.¡ÿ¡"'*~~.~...~""\;¡. " , " 4i. :.~~~;~J.4'¡ ." FILE MODE 366 MEMORY TX OPTION , p ! i j I,:. ',. ~ - , ~ON FOR ~~~NG ;,i.JP OR ¡LINE ~AIL E-3) NQ',ANSWER ',! . . :I . ....':t::;.~,. I ,~..~., . ,'. . . '. .' "",,"1 - ',' ." '. " 'I' ....., 'I, .',ø, " :. . '.."",. ~, ~... ~ I ".~ .,':. ,_,,~ ',...-¡" I .... .',:r. ~ Distribution Sheet , , , " " ',' " . ~ ", 'I" ., :,.','..' ~.;~ J'\;£":'~~"'~~:,r":,r,; '-:':~', ~':,~.;., ':~~,r:.f'~ :::.~...' ,": ,~:' í ~:<,'~,~: ,': ' '..~,::i·;~·,', " , ,,~,¡,'!,:, ',.' ;,.', ,',',\,1/,,' ,.: ":::t,,· ":,: I.. ':' .!~":'~',;:,,. :~'" _ .:..'~ ""C;:;:: ,';.~',,;.~: " .:.. .' '" :'}.'... :',J:' :,,~"<' ': " ;: ,~,,~.,:.' ";~,', ; "'.",''': ;, ;".,",'.,;';'.''' ':', ,,~, ~~;' :.' 'I''':'':~ \. ' . "'.. ',,/'. .;-;..: ., . .~.... . " " ,'_"~'" '... ~ ,,":'.' . ,I , .. a .,.1 .' ":;"("'":~,"..,,, ~ '.' ",i,' ,!' r;.':,':,' , (, ", .,~,,' . .. '..', \,,~, .., " )1' r .. ,:.'".. ,'," :'" ,,. :,: " .:' ....;;.~ ,.- .;..~.:~,. . ,. L', .-',:" , ,., .r, To: Prudhoe Bay Unit IPA's .., Working hiterest Owners I Owners' Committee Caution: These documents mailed to you may contain information which is confidenttaland/or protected by the Attorney/Client privilege. The information is intended for receipt and use sotely by the tndivtdual or entity named above. If you are' not the intended recipient, any disclosure, copying or use of this 1nfonnation is forbidden. If you have received this in error, pLease notify us by te(ephone immediately. Thank you. H. I. McGee ARCQ Alaska, Inc. 700 G Street P.O. Box 100360 Anchorage, AK 99510-0360 (907) 265-1604 (907) 263-4438/f'AX V. W. Holt BP Exploration (Alaska) Inc. 900 E. Benson Blvd. P.O. Box 196612 Anchorage. AK 99519r6612 (907) 564-4634 (907) 564-S000IFAX R. W. Hill Texaco Exp(oration a Production Inc. 1 S46 China Grade Loop P.O. Box 5197X (zip 93388) Bakersfield, CA 93308 (661) 391-4430 (661) 391.5014/FAX w. G. Fennel Chevron U.S.A., Inc. 1301 McKinney Houston, TX 77010 ,., n If \ -". G, E. Carlson Forcenergy Inc 310 K Street, Suite 700 Anchorage, AK 99501 J. F. Branch Exxon Company, U.S.A. 3301 C Street p,o, Rn" 1Qf;¡;n1 , 4. ~; ) ). ..- þ' _.-~ ..,.. FILE MODE 774 MEMORY TX * '* *COMMlJ'IICATIONRESLLT REPORT ('OCT .21.1999':;;9:50AM ).... *' . * .' . '. . . TTI RESLL T OK OK OK OK OK OK 'OK OK OK .: OPTION ADDRESS (GROl..I') , (G3)H Me GEE (G3)V HOLT (G3)R HILL (G3) W FEI'tEL (G3)J BRANCH" (G3)J HOLLIER (G3) J JOH'SCti <G3)DBOSE'·. /.. . . (G3lG . CARLSON \ . "\ ...... . ~, ;.1"'".' ::.. ' ': ': r' ~ ·j:'~~~\!,t:·,.: .:.. ' . ~ ~ ~.. To: Prudhoe Bay UnitlPA'su' Working· Interest Owners I Owners' Çommittee ., : ~'" .,,"'(~::::::'>".'.' , . ..;' ..~,': .,',. . . Caution: These documents mailed to you may contain information which is confidential and/or protected by the Attorney/Client privilege. The information is intended for receipt and use solely by the Individuál or entity named above. If you are not the Intended reci¡iíent, any disclosure, copYing or use of this Information Is forbidden. If you have received this in error, please notify us Þy telephone immediately. Thank you. H. 1. McGee ARCa Alas\<a, \nc. 700 G Street P.O. Box 100360 Anchorage, At<. 99510-0360 (907) 265-1604 (907) 263-4438IFAX V. W. Holt BP Exploration (AlasKa) Inc. 900 E. Benson Blvd. P.O. Box 196612 Aoc\)orage, AK 99519-6611- (907) 564-4634 (907) 564-5000IFAX R.. W. Hm Texaco Exploration ft Production Inc. 1546 China Grade l.oop P,O. Box 5197X (zip 93388) Bakersfield, CA 93308 (661) 391-4430 (661) 391..S014/FAX w. G. Fennel Chevron U.S.A., Inc. 04 "n-i . A...V;nf"'·..." G. E. Carlsoo Forcenergy \nc 310 K Street, Su1te 700 J. F. ßranch Exxon Company, U.S.A. 3301 C Street . . ~ ) ) "'....... I " BP EXPLORATION':,;" , BP Exploratlo~ (Alaska) Inc. 900 East Benson Boulevard P.O. Box 196612 ,Anchorage, Alaska 99519-6612 (907) 661-5111 ",' \ -, , ,::;\i;;~,>\:,:, , ,', :, ,. :,.\~ié~~~~~ . '. .:. ~ .. '. I.:."; i.-:<;.~~~}:;::··.:,: . , . ,.,: i':_;;~~':::~i:"~ , -,.{,>,. ~ '_. I..: ,...;.,;,;,~,~~.,~1lt_ , :' ,~;,',.::,,'''~~,''~';';..'::',:'.",' ~,::"""';.~:'<",:;.-.~~.'~~:,':"'~'~':':::~"~.:'...'~"'_,',",',~",:~";,',,,.,.!,,,,t..;~".::~.,;,~,' :,.:",~,..~,...:,'...', ","~:',".','.~".-.', .' ',.:,.:,',i,·'·:,·':·';' t '.,';. ',.,,',;,;~',"i"":~"'~,;,:'".~,'" ", , _ _ . - . , To: ·;:piudÍï~é.~åy,Ù~it W~rkirjg ,i~~erest OWrj~rs,/;l~'" .':"';' . ,%,~,:,::i~~~k , Representatives and,Alterf1ates ' " , '>',' ,;:," ,~: , ' . ,".' " ;-", ./,~;¿t'~i~~~;;:,:<!':J;;:.~3':.:-:::', -: ':.~' '?;, ·~,:i::¡~:r:..., ..;. .,:~I~';(;;,hi/t:';;j~.i~~~:~~, "Jt:.:,:;" ,..' ,:;;", , : :..,:I"~'~'~~ ~:(~i~ 'Re:"~::·~;~â~I,~~\f\~g~~:ement f~r,ç~'~~~actio"'~;'~(~~~iP:~ij:~ti~'~~:,BaY,:Uriit, " "" '," ",'\ ,~~!n~~~::i' "~~~ ,~~í~~:4g~~~~1ÇJP,~ti~g:~~~~~~~d. ï.is~~'~~~'~~~f}~,c,p~~i.ng ~~r~a .: ,.....,.':;' ,::~ ,.:~,.¡~/i.~~~:~~.~~. ·~'~~:IPA¡~Ball§~:~9~217;J.PA·,~âllot 99-0.52:N~~~~all~r,~9-097· ':, ,.,' ,...?'..'.~;~~:. --r;k~ ,'~:,;;'(.;¡>~','i..:7', ::">?7', ,':: '~:"":' '<.:.~, "«""'::,:' , ,:"; ,'.'\ ,,'>~;:p:! :'~:',,'.' ~"" . '. .':':::,·;;;,~».::~:';A1ti~¡~, Enc~'øii~ét )ºf. ':yo,ûr-~Técor9s' ::'a¡'é:'~,tt1e exeëu~e'd 'šign'áture ':p'ages : for "I P A:;'~' ,.':'::·,',':~";f~:~¿~:~\~~i~~t4' "', ,"Ba~~§~r~~¡~tt~~'h~-A'i~~~I!!?~ t~9~~Ç,~~ ;~:a~~. :',~ ~~!~i~~!RJJ~~..:~~!,. .1t~é '~all,òt .. ,,:,' , . .J::'.~~(\~ ~)~ .'··,:-Agréemenf~~:fof~.~'Contractlon ~J;of ."~, the 'l,:.prudhoe~~;Bay ~~l Umt/,T,:'Nlakuk·, ,'...·~·:-"~r 'r~??:t~~ ',' . """'. ,,-. ,....t'o('. " ...L "'-' " . ., . . . . ", . " ,'.',' ','~ ',,' ',,,. ,~"r ¡ Partlëlpäthïg Äre8""and Lisburne 'Participating ·Area.'· This ballot has beerf': ,~,:::,::~:»:'~F';i)Ú,f:~~~~~ , apP'~~x?d,"~~ .th,~..'tE~~,~~re9,,·partie.~~ . . ' .~,: ;:,,'<~"~>':"::+~!~ Since~ely,. . .0 ". . _ ~ft~tieIFj~ Unit Secretary Enclosure ) EXXON LAW PROD, ,.:; I ' ~ 0E. £:.1 ~ª~=12: 16fMPM ) , ,,:',.:, , N.q.,::t,~,~ 9 ,f;"~·18 , . <. ::{;.... ' :" ~' ; " , ,,'~. :~,,~,,:..~~.~~~~~1{~~:,;:;i:';',:~~, :~::',,,:. '., :::, ·:":,(~å1lòt:A9~2.17 . DP~~~9!öS2 ' NPA~Bä1Iòt'99.o07 . '.', ' . , ' Ballot Agreem8ntfor,CoiltraCtion of the PmdhoeBay,Ünit. ' Ni~ Participating Ái'eaand Lisbume:. Participating Area ! , I 4. I s. 6. 7. As amongtheLisbwneO\vneø.this Agre.ementsupersedes Section:,S6.02 of the",,', ,', '.' ',' . ':" Lisbum~~visio1Ul,as,~o~~~$JJecificmatter OJÙy. :~~~,~a,rticip~o~!or,:::::.':' . . . . ~,·~~,!:;~~~~,~~"~~~t:.·.·~·. .'. ·.·'f:!~~~!:",·;~~l¡ti:J~;';~·{~·····;~~tJS·;~~,~gh:ri'':~:~ Withresn.a~~othe,NP~,.-~Øùs.~ntsupers~~~~tioD.·.':1,9,l~Öt~~_'; _ ~:.'~'.~ ~':..'~: :.,' ,.,;',...;..: ~:,,..">,:~~~~;.: ¡"~... .. .....~".., .,', ,.. ..... ,.,J.~......":~Ir.-"ç...',..._. ,_'.'.. ,..,.. ,_,.....f .. Niakuk ~~ons 'Is,tg' ,tbiS,'specificmatter on1y.,,~naCt ~~èiP~~for ,~~;~i,,;t;' ·':~::~/¡f\,:,·;j~~;·l~:~~.~~~ Tract 33 in the NPA wffite1nain unchanged. . ',;.',"" ·-:;·~;;,,~://·¡~';i~ih", ,:'. :~<"'~' .. '. ,:.' ,'-'" :y::; I , ,... , '.,.., . ." :;,~~,~" ,:', . "', , :,' .. ,_:, ,'~·~;i:i'\,':';..<.~·,~~~;:,~l;~~~~~:..~; ,<' "~~i.i~¡,;:' ..:.... ~,,::~':"',~::':;):"~';kj~: . 'Ibe fono.m......'Cxbibii:J:,· ;,r""chccf(QthIs'A: '.'. 'entœfiect·ttiè~~1äiiìii1ÀrÌ~~·~~~i:;;~'~\i'·.>':~;.~~·'·;:'·' " ;,~~~~~~ rcferenœ,d applicåtion, ~;~p~~ ljs1~ ~o~ ~~~rJ1.Ï~difŸ;ibë':$UAfàIÎd.·.':f~~~j;'~'~~.~?t~~~~Jig~ .1 PBUO (Jnèbidin ,'the"UšbUnië:s~' ,. iälÞí:øViS1oiiS~~,üi¡NIQ~"'~làL< ~~~,;~%?J;~~:';~t!¡~~ · PiôVisi~t~~~:r: '; ',: l~~~{,~~t>;;;2¿~:~;:,'_;:'~;{,~'~'!f+~;~,-',;::~),~\~~~ ' , " 'o'~ - ", " '. ,..~~"..~~ç:,~ ..l"~ ., .,..', "-', - .'., """":i>-"l/,'Ii,I¡, ,.,..,:r;I;:~~~~ __" ~:om:!.f"r("~,-,\~~.~~."."".1---,-~~" ~~~i~l····:-~~~~_~~p~~;~~j~~,~:~~~~-:~#i~fþ~;~{~j~ Exhibit B 1 Ma,P:.fUriit'Ontüne ".:.. -- .~~~~,;::,~ . . " ~·~-:~tt·~"O_, :. - :-.....,.,:,-. .,'...;.:.~ BXhibii'4~·Ä:'>·:B,g~~~:~f~s~~";~~~~';~;/~~~~Ate~,-, ' . .~ . ~~:;:~~~;;~:~~~~;~~i;~~ EJ:Ì1ibi.t ~S~B,:~~diliijhê t.iSb1iri1èJ?ar:~t~~iïS~~i"~: .: :t.,,',,· ;I~~ . .' '" , ........¡,;.¡.'.(, . ,.. .', .,~ '.. "'. I" ''';';'~ ',",<,>", õl'''\.t''~t! '''"'''''~~'',' , ",+..., " ' , , , ':"'~"" ":" ,"',,",' ,uactPaiUapauons' ',' ""':":~'>J,',~'~ ',:~.~,~~'r~I~:\~'tol?r{t:: '.~¡.;.;,..: , ' , ':' ~'''.. ", , ."'~': ,.. '. " " " .! ~'~.':.._",:: :~:}/"~::t~t<r~':.':~'.' :.:.....,.. -' J 'D_....n..,'t 91 A ,Bo"..:..1.....:es of the ATD ^ :: ;'., ,~,. '. ,<J,'Z"'I~.- ···~s.i~~~"t"'"~~",-':.,·· , -;.,., '.,', \.. ,&AUlU.. .. ''''. I~~¡ . .J..'¡-n.. .~~..~?~koo...b:-:1;.'(,.~.I''''·~~~',.:k..3?'.:"",,~~'''':-!.t·;. .:,,, ~ -f~':" Exhibit ~1~!J ."Tt~,~i.th¡"!l.iJ-~ A ,m.~~~J~l¥~~s :i:':~" ,:~..., ..' iþ~ " ",.., -t~ ,...... ..·~,·N~·,·_·"....~~.¡¡j'J..._,·...~~,'·..~·~~..,'~,·'.i">'i¡.,:-';!:+\.::II.,)~"~~~~..... ~~ ,,'," ~~'".", ".. ,-:..,~.,~...:c Tbis~~·w.~~~~·ii¡:oÚöi;reciì~~~~f~š'îi~:>i<;1ih¡;:,;>;~}~ 'be deemed an original, ,aiì~':a119f w1úch ,t~gether sha11~'::ConS~di~~~ê 'and~ë;:"·:; ,"::':;;"~,',: , " ' :;~:'\;f~~~\ same instrument. ",' "':,':' "." ' " 1N ~S WHERBqF,the'~aIties have 'executed tbisAgreement on the date opposite th~ respective mgnatures. . . ! i I , ! PRUDHOE BAY UNIT'WORKING INTEREST OWNERS I AR~O ALASKA, INC. By; I ~ 1711 ~ - (.b..,-< Titlð: .. - C) ~I' f4pr Datè .__ -- j i I ! CH:ËVRON U.S.A. INC. ¡. By: I ï Title: I Date; !- BP EXPLORATION (ALASKA)-INC. BY:n . till 1. 1M!- ~ Title: a.N~ .1>~..,~(\~~ u..^_~ ~_ ~~. Date: _ _. 1 ~ 3 ..'1 ~ _ _ _ . ___ - - ~ ,., /, .~ Ì ) ) ".., ... Ocr.:"ø4-1999 16:29 ,'ALASKAREGION ':',/. ' DI\Uat ^Sl"c:c:.m=¡t lor ~ontraCt10n'or,the Ptùclþo~ Bay JJnit, '. Niakuk Paiticipating Area and LisburnePariiêipating Area . "", . .'713" 669?Ø04""p .12!4/ØS : '.JPA:Sønot 99~217?.":;"" "~Å'ÐåUot'99:OS2':,;;~:-:" ;,' ';~~i,B~ot g9~007· .' ,,' , PORCRNERGY INC. MOBIL'ALASKA E&P. !NC,· ,. ....:~~[~,:.:';:~. .. '.";+A~:"~t",}~:{~~;r,,""':~,:~:"~~{~l:,,;¡; , , , "'.-,~ ';, ,,;t~;·.;¡i<:...: t:..~~ ;;':{'-':¡;~I.···,;\~,4::.;~~;'èl~,j~:~\~;'~~"Ù:";J'--~¡jiJif~':~~:; :.':"-. :.:"~~~~;, , . ,'~.'''''' ,-.'.'........"'.....,...·.:e:'»I...,....ò..r.'~' ....:"¡'..;(-\'....!I.~(.¡¡.r~...i':I..\~~.l...:\.,:,.: .,., .~ , IA'tI..YV . ~,;.;i,:, :.·::~~~¡;.~¿;:~<!.f,;A~ft. .... .' ~f ~W3;:.~'~;·i~:!~;~~· .,..,:.-.">-)._.":.),'~',\,~<~1i; ~ -t,1PS PETROLB)4~æCO .' ~~ lõ ~:~/~~~Ç9'~~~~9£~:Zd!f\1~:t1\. .. :'~~~\~:::~t,. ,'j' ".....: '. " .:;'.-:.~rRODUCTION.J!u~C.~~~~~~if.>~~,.:¥a:~~:'....;...., .: ,~, ~.t:~:.',:;,;~~ - r.. - _ 0- ." UJ-,t'~;~;:,- ~::,) :;j~~fÛ!{~ lj:¿. _ , ;ts:m.: ~,LI) V~-~k D...1..... IÂW/IIA. ""t: ..' '..' i~¡;I.:'By: .-:..·i;.,-....¡.J_'~h ..;¡-'~.:.~¡,~~~~.""'..:~:~,,~~..,..,.. .', . ........ "'!9!-):~~,' ,... .,~ .,~~O/.:..;'>' ~z r-o þ~ ., -... ~~~ I ....... ~~~~. . ~.~ Date: r'JJ.' .~ /99 9" ,< . ,..-'... ·,.:.''''!~t·ti'..·,~~'~~_·¡-··..·ØM·~~'''·'1f.'-,·~~ .' , , "~~":'';~-'~''J!':;-' ~\ - - ~ ~;O' ~ . -~,:' ::~::~~~~~~=~~~~Œ~S~:i:~~~;!t~!~;t;.-~ " . ~.; ;.:.r~" ..'J".;?:';.!II;.'.~~~,.'":'.~ :Lru.-~~i:'IL.'""":'~ "'~_"'-r: '.". ""i'- '. ,'~!, : ',:--,':2' ~W:!'~~;;'., '" ,- :t~r ....~~,·';1~(~~~~~ilt~~~:'!'~..:~~,..~r.!::;;;~'~.,-~,·· _ ''"-~t*r:..,~ .,;', .. ..~~~ " :. .' ,..." ~:.~'. ......,¡Ir::..¡. ·~7;C?~p....-r':~."':.~~~~.:.:..f~....;1':~-......:··,..·~.'I"\;··CiI..r...~. or: ~r:t:·.TT\. ~.~~..."'~ . . 1., - \ ·'''x··.."J... .,.." -.,.~.!."~;r~. ..< ",;,:1:):'1":1'1 ë';.·'·....,,:¡~ "::"'iij,'';;t)::''.'' 1·'\'\,"" '...'~.'¡;'! -.·.-1::- :'~~_',::;:::~:~:~1~:~1~:~îi¡:::':"'-i ~. ,,1"'1:'" " .1r~),;." ; ':~V:~" '::~ ~~~(~\~n.~,~.1~r.~:~~~,~,~tJ,~r",~~~~~~þ'~~ ~,~j~.:..'" "._':#-J~~ w~:··.· or'·, " ~i.·· I,:. ....:.~:.:. ~¡:::~~··t.:·~~~~.·,I:!....·;....··.......:~>:: :~'. '.~:,-;. ;"~~.~:~:..""'''., :., By: Title: Date: :.', ..3~ ) , '" .... . . ~. :O~d6!i~12:¿~~"EX~9NHWtROD :sJot ~t'cIl',Cozi1iaaiOn of1he Prodhoe Bay ÛIÙt. N'¡Jiaík PanicJ¡iIÍ1ÛIg ¡,4.reaiin:d Lisbume Participating Area " ,': ", " ,', . . I I 1;'¡~¡®iJ@!;ÛSBI1RNE OWNERs , :",'{;i,iBY~~¡~i,;"~,, I ¿~' '; ¡:,., .'~(,,:' '" ','. .' ;.', ~O ALASKA1NC"i;£~~;Vi:;,,;, ' BP EXPLoRATION (~xÁ>Jí.ta "n , ~¡ ,~~·.~.",2~;~;;~~~ê:'::'.1 BY. v.uJ, ~;[;~t~,~¡;,;;:~:"'::' Tit" "."'" ,-7;-;'- ...:,.;....;¡','~"!.,.r.o1>.""~<,;;:."":........ ~.MI '1!'Ii1tl' '....I'·~/~'-"b..~-i- ,..:...,;;.'1./. ':!i"~'~'~~/j:!;':JKj~~,~::,:,. :.. ' I Þ: ' :" "", _' ,'. ',"""':'''-''''';'''\, ," JIIS " ~t. e:, ß\J JiIK!o ,...Io!~'.......,.. '...., "'~\,:.", ,.. , '(, ð ,It'· '. ,.' "':";'J.1' A'- ~,,"'j!;' .~.~~~~~':.':;~Y'·. . .;:...~:,", 'Da: : ' " " ,":;' 'c~;~ ':", ';';';''''('::';;' -: ' 'D/Uè: -, -!!. ,,'t '/¡'J.I"~·t~,.., ..,~,. {,w , _ '; ''''" ' .',.., - " .. ;:';~:~~;~:'~.'~ '.,,~"', ":-' , '"'. '... ì. ,,','. ...~:~~~~ .1 .. >';'ii\;~'¡,",!.~~,;..';.',_:.<."" ., , '. . ", .,~ .,', , . , f'1'" .. 'EXf, ON C .: :,9~!1,' P,.;.N, ~'.";~,~,".~.H,~~<~:::'. '~Æ' '.'~,. '..: ,.,.: . .t" , ',::\::~i2~?:/S~ :'j:, ~ ~. :'.'..",. Br,. ~-.4 ~ ":ðP.f:~L', .'J" '.. '. ·.,.A, ',::,':"",::~,'!,~",:,~,~,.:,.~.;,',:~:,....:~.,;.il~.~..~...,_.t.'.~...~.:;"";.~.j.~:-":,~,,.,,,~:~,,:..,.: ~,:,,'. 'n~' fi....N:7~"'"~ '~.f;l~7ih:."4 Ý<Þ~;';/I /. ".. . ~ß"'$.>i ,;,_~, ,",' , D, ¥- '0 ç - +'~i :>ii\<:",:'" :' "C "P. " · : ::;::l;f,5:~~:,:~ :Æff;?;:: . I . ,,~_.~, ,',...:.' '':<' ,;:~-.- ," .... " ',., '. ' 1:;:"F:X~~~\=Y~~;};'Lu VrRT un...... .. .~..:..', '. ':;, :, :.:,",', :.,', " ::"}"_."'~.', ~, ., '",,':..:,:, ., '.:....',',.'.',.', ..i.:.'~:.:,.. ;, :,:;, ·:l.':..'.', ,.1; :.~.,\..:.:.':_,;:~., :~i, ....:,',:. i, .,. :.:.i:,:.i, :,.., '1"':.':.;'_, .,:, !, "" ....¡', 4' ~.._i,.'. ::,_, :', :.~:, ...:,J.;....,:~, ... ';:','.:. "'._::~..'ri,., i." .. ~..".: '.!:'. ., ',~~.., :, ')::,;::,..~~, ~". :.i,·,~~f~;, "., :,~. :'>.;:'~;~:,".'.:', '._. :,', ': .', '::',:.::....." :...'...... '. ',', ., :. " " ::1, " ',': '.~. ,;,,1 ,;,.: ·)-.:~~r,;;,'"",~1';~~:~~~ri~·~;·:;:.. :-,,:' ,,-.,_~:::~:,~ ';;~:~', BP BXPLORATlON."(AU.$KA).JNC., . ~~:j~~~~·t;.~ ~¥~ Date: c; · s --4q"., ", , .. ) . NO. 1889 ·:NU.~.' PI ,,5 t'.1;V18 , , '," . :::·;\ÎP.ABaUot 99-217 ;:'~Á'Bp.11òt 99~S2 NPA 13âUot 99~7 .. " ,r' i I I i I I I I , i j I i I I i ¡ I ¡ J ) ) Attachment 3 Duck Island Unit Eider ParticipatinQ Area Second Plan of Development (6/30/99-6/30/00) Status Of Activities Proposed In Initial POD BP Exploration (Alaska), Inc. ("BPXA") drilled two wells into the Eider reservoir: 2-56A1EI-01 ("Eider 1") and 2-30AlEI-02 ("Eider 2"). Cumulative production through May 24, 1999 was 0.86 mmstb oil, 5.0 Bscf gas, and 0.03 mmstb water. BPXA currently estimates that the field life will be approximately 10 years, with an expected ultimate recovery with reservoir support of 6.5 mmstbo, or 37% of the original oil in place. The Initial Plan of Development for the Eider field listed several short term development plans. The status of each of these is as follows: · BPXA took regular well tests with the Endicott MPI test separator to monitor oil, gas and water production levels and trends from the Eider 1 and 2 wells. · BPXA performed reservoir and PVT analysis to provide rock and fluid properties for reservoir simulation. · BPXA reinterpreted 3D seismic data to include the results of the Eider 1 well. BPXA used the reinterpreted data to: ~ · Refine the structural model and areal footprint of the pool. · Provide the framework for the reservoir simulation model that was built. · Provide the most accurate basis possible for the Eider 2 well. . BPXA performed well design/planning work for the Eider 2 well, which has now been drilled and completed. . BPXA reinterpreted the 3D seismic data a second time following the initial, plugged- back penetration of the Eider 2 well (2-30AlPB-1). This data was used to further refine the well plan for Eider 2, and was also incorporated into the reservoir simulator. . BPXA performed reservoir simulation to determine the optimum depletion strategy, and assessed the feasibility of water injection or gas injection. BPXA has determined that the optimal depletion strategy is to inject water into the Eider 1 well. Duck Island Unit / Eider 2nd POD (6/9/99) PAGE 1 I'!: ~. ') ') Second Plan of Development BPXA will develop and operate the Eider Participating Area as follows through June 30, 2000. Expansion of this participating area at all depths to encompass the entire reservoir is in progress. · Parties in the affected areas have reached technical agreement on the size of the coinciding expansion/contraction of DIU/EPAlPBU/NPAlLPA. · The Working Interest Owners of the affected areas are being balloted for support. · Subsequently an application will be filed to the DNR for support of the expansion. In addition, another production test period may be requested effective upon obtainment of water support from Endicott. BPXA will continue to produce Eider Unitized Substances through the Endicott Facilities pursuant to the Agreement for Sharing Endicott Area Equipment for Tract Operation. BPXA currently estimates that the Eider field life will be approximately 10 years, with an expected ultimate recovery with reservoir support of 6.5 mmstbo, or 37% of the original oil in place. At this time, further drilling in the Eider Participating Area, such as in-fill or peripheral wells, is not economically viable given the size and location of the remaining reserves. When BPXA determines that a well has no remaining economic potential, the abandonment and sidetracking of the well to an alternative bottom hole location will be considered. During this time, BPXA will continue to monitor production trends of oil, gas, and water for all producing wells. The second Eider well was shut in on May 24, 1999 at the end of the approved test period. BPXA plans to maintain reservoir pressure by converting the Eider 1 well to water injection once the proper Endicott partner has been granted. Negotiations with Endicott owners for make-up water is in progress. Until the approvals are obtained, BPXA will produce from the first Eider well. BPXA will evaluate the economic viability of remedial wellwork on existing wells to maximize production and reserves. BPXA will also periodically examine the economic viability of drilling additional wells from the Endicott MPI. Duck Island Unit / Eider 2nd POD (6/9/99) PAGE 2 Pr sed Expanded Eid Participating Area Attachment 4 LOCATION MAP BEAUFORT SEA (::::> CHUKCHI SEA 17 16 18 14 ALASKA ,5 0 2 Miles 80 26 30 19 M 19 ~".,: - ...._~ , ~ a: o ~ I AD 2 ~AD 4 3 Existing Duck Island Unit Boundary Proposed Duck island Boundary Expansion Tract Number 11 9 ADL31 4 18 14 ........ PA Proposed Eider Expansion 26 25 BPXA Cartography/1..1-2-99/lm14140pepa-dgn ~. \ Iii. EIDER SPECIAL PROVISIONS TO THE DUCK ISLAND UNIT OPERATING AGREEMENT October 5th, 1998 Updated November 2nd, 1999 EIDER PARTICIPATING AREA DUCK ISLAND UNIT STATE OF ALASKA Eider Special Provisions - Page 1 Final Version: 10/5/98 Updated: 11/2/99 Attachment 8 ( . f ~ TABLE OF CONTENTS ARTICLES ARTICLE 38 Definitions ARTICLE 39 Listinq of the Exhibits 39.1 39.2 39.3 Exhibits Reference to Exhibits Conflict Between the Exhibits and the Text of the Eider Special Provisions ARTICLE 40 Establishment of the Eider Participatinq Area and Eider Operator 40.1 40.2 40.3 40.4 40.5 40.6 Establishment of the Eider Participating Area Description of the Eider Participating Area Authority in Case of Conflict Designation of the Eider Operator Exclusive Right to Operate Rights and Obligations of the Eider Operator ARTICLE 41 Eider Participations 41.1 41.2 41.3 Eider Area Participations Eider Tract Participatio.ns No Redetermination ARTICLE 42 Votinq Provisions for the Eider Participatinq Area 42.1 42.2 42.3 42.4 42.5 42.6 42.7 42.8 42.9 42.10 Scope Voting Interests Area Operations Claims Settlement Withdrawal by an Eider Owner Amendments to the Eider Special Provisions Surrender of Tract Termination of Eider Participating Area Expansion of the Eider Participating Area Contraction of the Eider Participating Area Eider Special Provisions - Page 2 Final Version: 10/5/98 Updated: 11/2/99 ARTICLE 43 43.1 43.2 43.3 43.4 43.5 43.6 43.7 43.4.1 43.4.2 43.4.3 43.4.4 43.4.5 43.4.6 43.5.1 43.5.2 43.5.3 43.5.4 43.5.5 43.5.6 ARTICLE 44 44.1 44.2 ARTICLE 45 45.1 45.2 45.3 45.4 45.5 45.6 45.7 45.8 45.9 ( ( ~ Approvals. Budç¡ets. Expenditures. Overhead and Accountinç¡ Procedures for the Eider Participatinç¡ Area General Eider Reservoir Development Objectives Plan of Development for the Eider Reservoir Budgets Capital Budgets Capital Budget Categories Expense Budgets Budget Format Annual Budgets Budgets Amendments Authorization for Expenditure Eider Operator Expenditure Authority Capital AFE Expense AFE AFE Overrun Limit AFE Revision AFE Content Overhead Fee Accounting Procedures Eider Owners Committee Introduction . Eider Owners Committee Allocation of Area Substances for the Eider Participating Area Allocation of Area Substances Taking Hydrocarbon Liquids in Kind Taking Gas in Kind Units of Measurement Metering of Area Substances Point of Taking Condition at Taking Disposition of Gas Estimate of Deliverable Hydrocarbon Liquids Eider Special Provisions - Page 3 Final Version: 10/5/98 Updated: 11/2/99 /f \. .( ARTICLE 38 Definitions 38.1 Definitions. Except as otherwise provided in the Eider Special Provisions, all initially capitalized terms will have the same meaning given to these terms in the Duck Island Unit Operating Agreement. The following terms as used in the Eider Special Provisions, Articles 38 through 45 (hereinafter "Special Provisions"), shall have the following meaning, unless the context clearly requires otherwise: Eider Oil Pool means that oil pool encountered in the Ivishak Formation of the Upper Ellesmerian Sequence, between the depths of 9,000 and 10,500 FT TVDSS and encountered in the 8P Exploration (Alaska) Inc. No. 2-56A/EI-01 well. Area Expense means all expenditures, as determined in accordance with Exhibit I, made by Eider Working Interest Owners or the Eider Operator for Area Operations. Area Expense for the Eider Participating Area will include Pre-unitization Costs, Operating and Maintenance Costs. Area Participation of an Eider Working Interest Owner in the Eider Participating Area means the sum of the percentages obtained by multiplying the Working Interest owned by that Eider Working Interest Owner in each Tract or portion of a Tract included within the Eider Participating Area by the Tract Participation of that 'Tract or portion of a Tract in the Eider Participating Area. The Area Participation of each Eider Owner shall be that set forth in Exhibit 40-8. Area Votinq Interest means,an Eider Working Interest Owner's percentage of the voting rights in the Eider Participating Area. The Area Voting Interests of the Eider Participating Area shall be equal to the Area Participations set forth in Exhibit 40-8. Authorization for Expenditure or AFE means the written authorization to commit or expend funds. AFE procedures for the Eider Participating Area shall be those described in Section 43.5. Major Gas Sales shall mean the first day of the month following the date of first delivery of Gas by the Eider Owners to a Gas sales pipeline for transportation to a market not on the North Slope of Alaska, pursuant to the Eider Reservoir Development Objectives. Plan of Development for the Eider Reservoir is the plan of the Eider Owners for implementing reservoir management and production plans. The Plan of Development for the Eider Reservoir is provided for in Section 43.3. Eider Owner means a Working Interest Owner that owns a Working Interest in the Eider Participating Area. Eider Owners Committee means the committee of Eider Owners that is constituted pursuant to Section 44.2. Eider Participatinq Area means the Participating Area established for the Eider Reservoir and is described in Exhibit 41-A. Eider Special Provisions - Page 4 Final Version: 10/5/98 Updated: 11/2/99 Eider Reservoir means that reservoir which includes the Eider Oil Pool encountered in the Ivishak Formation of the Upper Ellesmerian Sequence, between the depths of 9,000 and 10,500 FT TVDSS and encountered in the BP Exploration (Alaska) Inc. No. 2-56A/EI-01 well. Eider Development Objectives means the principal objectives of the Eider Owners for the development of the Eider Reservoir, as provided in Exhibit 43-A. Eider Operator Expenditure Authority means the expenditure limitation imposed on the Eider Operator for the Eider Participating Area, as set forth in Subsection 43.5.1. Tract Participation of each Tract in the Eider Participating Area shall be that set forth in Exhibit 40-B. Eider Special Provisions - Page 5 Final Version: 10/5/98 Updated: 11/2/99 ARTICLE 39 Listing of the Exhibits 39.1 Exhibits. The following exhibits are attached to these Special Provisions and are incorporated into it by reference: Exhibit 40-A Eider Participating Area Boundary Exhibit 40-B Tract, Area and Voting Interest Participation in the Eider Participating Area Exhibit 41-A Eider Participating Area Description Exhibit 43-A Eider Reservoir Development Objectives Exhibit 43-B Plan of Development for the Eider Reservoir 39.2 Reference to Exhibits. When reference is made in these Special Provisions to an exhibit, it is to the exhibit as originally attached to these Special Provisions or, if the exhibit has been revised, to the latest revision. 39.3 Conflict Between the Exhibits and the'Text of the Eider Special Provisions. If a conflict exists between the exhibits listed il1 Article 39 and the text of the Eider Special Provisions, the text of the Eider Special Provisions shall govern. Eider Special Provisions - Page 6 Final Version: 10/5/98 Updated: 11/2/99 ¡\ ARTICLE 40 Establishment of the Eider Participating Area and Eider Operator 40.1 Establishment of the Eider Participatinq Area. Pursuant to Article 11 of the Duck Island Unit Agreement and Article 12 of the Duck Island Unit Operating Agreement, the Eider Owners hereby establish the Eider Participating Area. All references to Sections, Articles and Exhibits unless otherwise specified, refer to the Duck Island Unit Operating Agreement. 40.2 Description of the Eider Participatinq Area. The boundary of the Eider Participating Area is shown in Exhibit 40-A. A description of the Tracts included in the Eider Participating Area, the ownership thereof, and the Eider Tract Particiaptions are provided in Exhibit 40- B. 40.3 Authority in Case of Conflict. The Eider Special Provisions do not supersede the General Provisions of the Duck Island Unit Operating Agreement. The Eider Special Provisions are subject to the General Provisions of the Duck Island Unit Operating Agreement, including the provisions of the Duck Island Unit tax partnership; provided, however, that in all matters affecting only the Eider Participation Area, the Eider Special Provisions shall govern the rights and obligations of the Eider Owners where there is any conflict with the General Provisions. In the event of a conflict between the terms of Article 16 of the General Provisions and the Eider Special Provisions, the Eider Owners _agree that the terms of Article 16 prevail and govern. 40.4 Desiqnation of the Eider Operator. BP Exploration (Alaska), Inc. is hereby designated by the Eider Owners as the Eider Operator. 40.5 Exclusive Riqht to Operate. Subject to the Eider Special Provisions, the Eider Operator shall have the exclusive right and shall be obligated to conduct all Eider Operations. 40.6 Riqhts and Obliqations of the Eider Operator. The Eider Operator shall possess all rights and assume all duties of the Unit Operator as specified in the General Provisions of the Duck Island Unit Agreement, to the extent that such provisions are applicable to the Eider Operations. Eider Special Provisions - Page 7 Final Version: 10/5/98 Updated: 11/2/99 { i{ ARTICLE 41 Eider Participations 41.1 Eider Area Participations. The Eider Area Participation of each Eider Owner is set forth in Exhibit 40-8. Eider Area Participations shall be retroactive and shall be effective as of the first day of Hydrocarbon Liquids production from the Eider Reservoir. The Eider Owners agree that the first day of Hydrocarbon Liquid production commenced on June1, 1998. 41 .2 Eider Tract Participations. The Eider Tract Participation of each Eider Owner as of the Eider Participating Area Effective Date is set forth in Exhibit 40-8. Eider Tract Participations shall be retroactive and shall be effective as of the first day of Hydrocarbon Liquids production from the Eider Reservoir. 41.3 No Redetermination. The Eider Area Participations, and Tract Participations shall remain in effect until the termination of the Eider Participating Area, except in the event of an expansion of the Eider Participating Area, as provided for in Section 42.9. Eider Special Provisions - Page 8 Final Version: 10/5/98 Updated: 11/2/99 " ARTICLE 42 Voting Provisions for the Eider Participating Area 42.1 Scope. This Article 42 contains provisions governing voting for the Eider Participating Area. 42.2 Votinq Interests. Eider Area Voting Interests shall be equal to the Eider Owner1s Area Participation as set forth in Exhibit 40-8. 42.3 Area Operations. Area Operations will be conducted on the basis of the voting provisions set out in Article 43. Except where an Area Voting Interest is specifically provided otherwise in these Special Provisions, approval of Area Operations will require an affirmative vote of 75 percent of the Area Voting Interest. 42.4 Claims Settlement. The Eider Operator may settle any single damage claim, penalty claim or suit involving Eider Operations for a settlement expenditure not to exceed $500,000, provided that the payment is in complete settlement of the claim or suit, without further approval of the Eider Owners. Approval of settlements exceeding this authority will require an affirmative vote of 75 percent of the Area Voting Interest. 42.5 Withdrawal by an Eider Owner. In the event an Eider Owner wishes to withdraw, said withdrawal shall be made in accordance with Subsection 13.1, except that, costs and value will be estimated by the Eider Operator and will require an affirmative vote of 75 percent of the Area Voting Interest. 42.6 Amendments to the Eider Special Provisions. Amendments to the Eider Special Provisions will require an affirmative vote of 75 percent of the Area Voting Interest. 42.7 Surrender of Tract. Surrender of a Tract in the Eider Participating Area, shall be made in accordance with Section 13.2, except that, the surrender will require an affirmative vote of 75 percent of the Area Voting Interest. 42.8 Termination of Eider Participating Area. Termination of the Eider Participating Area will require an affirmative vote of 75 percent of the Area Voting Interest. 42.9 Expansion of the Eider Participatinq Area. The Eider Owners may, by approval of 75 percent of the Eider Area Voting Interests, enlarge the Eider Participating Area. Such enlargements shall be on the basis of participation and other terms and conditions determined by the Eider Owners, including provision for the allocation of the Eider Tract Participations to the added area. 42.10 Contraction of the Eider Participating Area. Except as required by law, the Eider Participating Area will not be contracted to exclude those lands included as of the Eider Participating Area Effective Date. Should the Eider Participating Area be required by law to contract, then the Eider Area Participations within the contracted Eider Participating Area shall remain unchanged. Eider Special Provisions - Page 9 Final Version: 10/5/98 Updated: 11/2/99 \ ARTICLE 43 Approvals, Budgets, Expenditures, Overhead Fee and Accounting Procedures for the Eider Participating Area 43.1 General. The planning and approval process for expenditures pursuant to this Article 43 involves four basic elements: (a) review of Eider Reservoir Development Objectives; (b) preparation of a Plan of Development for the Eider Reservoir; (c) preparation and approval of budgets; and (d) AFE approval of items that exceed the Eider Operator Expenditure Authority. 43.2 Eider Reservoir Development Objectives. The Eider Reservoir Development Objectives are set out in Exhibit 43-A and may only be amended by an affirmative vote of 75 percent of the Area Voting Interest. 43.3 Plan of Development for the Eider Reservoir. The original Plan "of Development for the Eider Reservoir is outlined in Exhibit 43B. . The Eider Operator will coordinate proposed revisions to the Plan of Development for the Eider Reservoir, which will be consistent with the approved Eider Reservoir Development Objectives. Recommended plans and alternatives will outline the projects, work programs and production plans designed to implement the Eider Reservoir Development Objectives. The proposed revisions to the Plan of Development for the Eider Reservoir will be presented to the Eider Owners for their consideration, review and approval. If any portion of the Plan of Development for the Eider Reservoir is objected to by an Eider Owner, the Eider Owners Committee will attempt to resolve the objection. The Plan of Development for the Eider Reservoir is set out in Exhibit 43-B and may only be amended by an affirmative vote of 75 percent of the Area Voting Interest. 43.4 Budqets. The budgets prepared by the Eider Operator will be consistent with the portions of the Plan of Development for the Eider Reservoir which received sufficient support to demonstrate that future approval for funding is likely. 43.4.1 Capital Budqets. The Capital Budget is a series of line items which will specify the expenditures to be made in that Budget Year and subsequent years. Each line item, except the capital component of the overhead fee, will be funded through a Capital AFE. Approval of Capital Budgets, on a line item basis, will require a 75 percent affirmative vote of the Area Voting Interest. Approval of line items constitutes approval of scope and timing only, and thus no commitments of funds are authorized for items requiring a Capital AFE under Subsection 43.5.2 until a Capital AFE is approved. Once a Capital AFE or revised Capital AFE is approved, the line item corresponding to the Capital AFE will not require approval of any subsequent Capital Budget. Eider Special Provisions - Page 10 Final Version: 10/5/98 Updated: 1112/99 { 43.4.2 Capital Budqet Cateqories. The Capital Budget will be categorized as follows: (a) development drilling; (b) capital workovers; (c) capital component of the overhead fee; and (d) other. Expenditures that are generally projected on a historical basis and not specifically identified at the time of budget preparation, will be grouped into a single line item entitled Minor Capital Investments (MCI). MCI may not exceed 20 percent of the total Capital Budget (excluding the capital component of the overhead fee), or the amount identified as MCI in the preceding Capital Budget, indexed with no increment, in accordance with the principles of Exhibit a, whichever is greater. 43.4.3 Expense Budqets. Expense Budgets will be categorized as follows: (a) Operating and Maintenance Costs; (b) expense workovers; (c) major repairs; (d) expense component of the overhead fee; (e) ad valorem taxes; and (f) other. Approval of Expense Budgets, on a total basis only, will require a 75 percent affirmative vote of the Area Voting Interest, except that a line item which exceeds $500,000 for legal, reservoir studies, or computer modeling costs will require an affirmative vote of 75 percent of the Area Voting Interest for that line item only. Approval of the Expense Budget constitutes the authority to expend or commit funds up to the approved total Expense Budget amount, except that no commitment of funds is authorized for items requiring an Expense AFE, pursuant to Subsection 43.5.3, until an Expense AFE has been approved. The estimated cost associated with those items requiring Expense AFE approval will be separately identified on the Expense Budget. Eider Special Provisions - Page 11 Final Version: 10/5/98 Updated: 11/2/99 !( "~ 43.4.4 BudQet Format. Beginning with the first budget update immediately following the Eider Participating Area Effective Date, the Eider Operator will provide budgets in a consistent format and in sufficient detail to allow the Eider Owners adequate review and to permit the calculation of each Eider Owner's obligation prior to approval. All items of expenditure must appear in the budgets. The Budget Year estimate will be divided by calendar quarters. Escalation factors, where used, ,will be clearly stated. 43.4.5 Annual BudQets. The Eider Operator will provide to each Eider Owner a copy of the annual budget. 43.4.6 BudQet Amendments. Budget amendments may be proposed at any time by the Eider Operator and will be subject to the same approval requirements as set out in this Section 43.4 43.5 Authorization for Expenditure. After approval of a Capital Budget and Expense Budget, the Eider Operator will prepare and submit corresponding Capital and Expense AFEs for approval as appropriate. Commitment of funds are only authorized, except as provided in Subsection 43.4.3, when AFEs or revised AFEs are approved. All AFE amounts will be shown in current year dollars and will be escalated to reflect lias spent" monies as appropriate. 43.5.1 Eider Operator Expenditure Authoritv. The Eider Operator is authorized to commit to or expend any single item up to $1,000,000, subject to the limitations set forth in Section 43.5.3. This expenditure limitation is not applicable to ordinary operating and maintenance items such as, but not limited to, operating labor, operating supplies, the Eider Oper~tor's repair and maintenance labor, and other miscellaneous items. If the Eider Operator, subsequent to committing or expending funds under this authority, determines that expenditures will exceed the EiderOperator Expenditure Authority, the Eider Operator will immediately notify the Eider Owners by submitting an AFE in the full amount for their approval. 43.5.2 Capital AFE. A Capital AFE will be issued for any capital expenditure but will require Working Interest Owner approval only when it exceeds the Eider Operator Expenditure Authority. Approval of Capital AFEs will require an affirmative vote of 75 percent of the Area Voting Interest. 43.5.3 Expense AFE. An Expense AFE will be issued for single items involving repair, replacement, legal costs, reservoir studies or computer modeling in excess of $500,000. An affirmative vote of 750/0 of the Area Voting Interest shall be required for all Expense AFEs that exceed the Eider Operator Expenditure Authority; except for, Expense AFEs involving legal, reservoir studies, or computer modeling costs exceeding $500,000 which will require an affirmative vote of 75 percent of the Area Voting Interest per Section 43.4.3. 43.5.4 AFE Overrun Limit. An approved AFE authorizes the Eider Operator to expend the total approved amount, plus excess expenditures of 20 percent of the total app!'"oved AFE amount. Eider Special Provisions - Page 12 Final Version: 10/5/98 Updated: 1112/99 l '\ 43.5.5 AFE Revision. A revised AFE will be submitted for approval when the Eider Operator: (a) reasonably expects to exceed the total authorized amount of the AFE plus the excess expenditure pursuant to Subsection 43.5.4; or (b) makes significant changes to the scope of the work authorized in the AFE. 43.5.6 AFE Content. All AFEs and any revisions will identify the total amount requested, estimates of the quarterly expenditures for the first calendar year and annual expenditures for each subsequent year. The AFE will show total obligations for each Eider Owner and total costs by Cost Category including, but not limited to: (a) engineering design, (b) equipment and materials; (c) fabrication; (d) transportation; (e) installation; (f) Eider Operator's cost, excluding costs covered in the overhead fee; (9) computer and related costs; and (h) contingency. The contingency in item (h) above will be identified as a single amount, not to exceed 15 percent of the total estimate prior to application of the contingency. In order to achieve the contingency level specified, the Eider Operator, where possible, will not submit an AFE for approval until the basic design parameters and major equipment requirements have been defined. Each AFE will contain sufficient information to enable the Eider Owners to evaluate the benefits and justifications for the expenditure, including, but not limited to: (a) scope; (b) design criteria; (c) cost analysis; and (d) expenditure pattern. Eider Special Provisions - Page 13 Final Version: 10/5/98 Updated: 11/2/99 t 1\ 43.6 Overhead Fee. The purpose of the Eider Overhead Fee is to provide compensation for the Eider Operator's Overhead applicable to Eider Operations for the Eider Participating Area. The fee shall cover any portion of the compensation or salaries, applicable payroll burden, employee benefits and other expenses of management, supervisory, administrative, technical, clerical and other employees incurred by the Eider Operator or Eider in operations serving the Eider Joint Property, which are not otherwise directly chargeable under Exhibit I, Section II, Direct Charges. Professional consultant services and contract services of technical personnel directly engaged on and working for the benefit of the Eider Joint Property are not included in the Overhead Fee. The Eider Operator shall charge the Eider Joint Account for Overhead as follows: Eider Overhead Fee = ((Eider Hydrocarbon Liquid Production/ Endicott Hydrocarbon Liquid Production) x Endicott Overhead Fee) Eider Capital Component of the Overhead Fee = (Eider Overhead Fee x (Eider Capital Expenditure/ Eider Total Expenditure)) Eider Expense Component of he Overhead Fee = (Eider Overhead Fee x (Eider Expense Expenditure/ Eider Total Expenditure)) For the purposes of this calculation, the volumes of Hydrocarbon Liquid Production used shall be adjusted for Backout and Quality. The annual Eider Overhead Fee will be based on estimated annual Hydrocarbon Liquid production, estimated annual capital expenditure and estimated annual expense expenditure; this estimate will be divided by 12 to estimate a monthly fee. The estimated annual Eider Overhead Fee will be updated quarterly and revised to reflect actual Hydrocarbon Liquid production and actual expenditures for the previous quarter and any change in the future quarter or quarters' estimated values of Hydrocarbon Liquid production and expenditures. The adjustments for under or over estimation of the Eider Overhead Fee will be made in the succeeding quarters. It is the intent of the Eider Owners that the total amount of annual Overhead Fee paid will be based on year end actuals of Hydrocarbon Liquid production and expenditure; a final year end billing adjustment will be made to reflect this intent. The capital and expense allocation of the Overhead Fee may also be revised to reflect tax reporting considerations. 34.7 AccountinQ Procedures. Eider Operations shall be conducted in accordance with the Accounting Procedures set forth in Exhibit I, with the exception of Section 111, which is replaced in its entirety by Section 43.6. Past and future accounting treatments, interpretations and resolutions agreed to by parties to the Duck Island Unit Operating Agreement, shall be equally binding on Eider Operations. Eider Special Provisions - Page 14 Final Version: 10/5/98 Updated: 1112/99 \, ARTICLE 44 Eider Owners Committee 44.1 Introduction. This Article 44 sets forth the committee structure by which the Eider Owners will exercise supervision and control of Area Operations. In the exercise of that authority, each Eider Owner will act solely on its own behalf in the capacity of an individual owner and not on behalf of the owners as a single entity. The committee of the Eider Owners will be constituted as provided in Section 4.5. The committee will be chaired by representatives of the Eider Operator. Meetings of the Committee shall be governed by the rules set forth in Section 4.6 of the DIUOA, except as otherwise provided in Section 44.2. 44.2 Eider Owners Committee. The Eider Owners will act through an Eider Owners Committee consisting of their designated management representatives. The Eider Owners Committee will function in the same manner as the Unit Owners Committee except that it will exercise supervision and control of the Eider Participating Area. The Eider Owners Committee will be the principal technical forum of the Eider Owners and the focal point for joint planning efforts. The Eider Owners Committee will also coordinate the preparation of the Plan of Development for the Eider Reservoir. The Eider Owners Committee will meet at regular, annual intervals and at special and emergency meetings called in accordance with Sections 4.6.4 and 4.6.5 of the DIUOA.. Eider Special Provisions - Page 15 Final Version: 10/5/98 Updated: 11/2/99 ARTICLE 45 Allocation of Area Substances for the Eider Participating Area 45.1 Allocation of Area Substances. The allocation of Area Substances to Tracts and to Eider Owners will be in proportion to the Tract Participations and Area Participations, respectively. 45.2 TakinQ Hvdrocarbon Liquids in Kind. Except for those Hydrocarbon Liquids used in Area Operations or unavoidably lost, each Eider Owner will take in kind and separately dispose of its allocation of Hydrocarbon Liquids. 45.3 TakinQ Gas in Kind. Prior to Major Gas Sales, each Eider Owner will have the right, but not the obligation, to take in kind or separately dispose of any of its allocation of Gas, except for that Gas used in Area Operations or unavoidably lost. After Major Gas Sales, each Eider Owner will take in kind or separately dispose of its allocation of Gas, except for that Gas used in Area Operations or unavoidably lost. Gas used in Area Operations or unavoidably lost will be deemed to have been taken in kind by an Eider Owner in proportion to its Area Participation. 45.4 Units of Measurement. All volumes of Hydrocarbon Liquids will be expressed in STB (stock tank barrels) and all volumes of Gas will be expressed MMCF (millions of standard cubic feet). Calculations required by this Article 45 will be expressed in these units in accordance with applicable requirements of the State of Alaska, industry standards and requirements of the American Petroleum .Institute. 45.5 MeterinQ of Area Substances. Measurement and allocation of Eider Area Substances will be performed in accordance with the requirements specified in the Agreement For Use Of Endicott Area Equipment For Tract Operations and any amendments thereto. The Eider Owners will be granted access to well tests conducted and access at reasonable times, at their sole risk and expense, to inspect or witness meter calibrations and will be informed in a timely manner of any disruption in the metering of Eider Area Substances. 45.6 Point of TakinQ. An Eider Owner will be entitled to take all or any portion of its share of Area Substances at the outlet of a separation facility or the point or points of delivery to a major pipeline, except that: (a) any taking of Area Substances will not unreasonably interfere with Area Operations; and (b) all additional costs incurred as a result of taking at a delivery point other than the common delivery point established by the Eider Owners, will be borne by the Eider Owner taking delivery at that point. Eider Special Provisions - Page 16 Final Version: 10/5/98 Updated: 11/2/99 45.7 Condition at TakinQ. All Area Substances taken or disposed of by or for an Eider Owner will be delivered by the Eider Operator in its then current condition of quality at the point of its taking or disposition without regard to composition or specific gravity. All handling, treating or other processing of Area Substances beyond the point of taking will be at the sole risk and expense of the Eider Owner taking and disposing of Area Substances. 45.8 Disposition of Gas. The disposition of Gas shall be controlled by the terms of the Agreement For Use Of Endicott Area Equipment For Tract Operations. 45.9 Estimate of Deliverable Hvdrocarbon Liquids. Eider Operator, at least 45 days in advance of each calendar quarter, will notify each Eider Owner of its share of, and the total of, the estimated deliverable Hydrocarbon Liquids during each of the next two calendar quarters. The Eider Operator will have the right to revise the estimate of deliverable Hydrocarbon Liquids under the following circumstances: (a) governmental restraint on production rates; (b) inability to sustain the estimate of deliverable Hydrocarbon Liquids; (c) major pipeline restrictions caused by actions of a major pipeline operator; or (d) Force Majeure. If the estimate of deliverable Hydrocarbon Liquids is revised, the Eider Operator will promptly advise each Eider Owner of its share of, and_ the total of, the adjusted deliverable Hydrocarbon Liquids. Eider Special Provisions - Page 17 Final Version: 10/5/98 Updated: 11/2/99 . --...-....--..-. fI'M ! ~ f,~ ¡ ¡¡U i BPYA~7·~'4'4OepI..d;n \ '?36 / 3S -_._.~... - ... "- 2IS 25 _"U~"\ _0__"4 ; ¡ \...;;,~ 24 25 14 AD LO'-75 03 ::9 18 1S 11 .~ to 11 ~ ~ ':v ~ 35 @ 2S 2S l' =- 23 TIIM T,ON \; 2 Mnes ¡l I I ¡ 1 .5 0 L_.L I I 30 29 i S1 32 ~ TI2H cr: T11" 0 < I Duck Island Unit Boundary @ Tract Number Eider Participating Area o .@ 26 E.' 27 ADL 'r' 034654 ." 22 21 20 19 . 14 ; : ! IS ! i -1- 1------~----~-- -----1------ ! ---I I ¡ ¡ 18 ...- Exhibit 40-A ~- :~ . . , . , . , 15 17 18 ~ ~' : ,:.":~::~:~;, ALASKA "". "I> <:> LOCATION MAP EIDER PARTICIPATING AREA . -@ · Exhibit 40-8 to Eider Special Provisions State of Alaska (revised 8/1/99) Tract, Area and Voting Interest Participations for the Eider Paritcipating Area Tract, Area Tract and Voting Tract Description of Tract Acreage Interest No. ADL. No. within P A within PA Participation 12 034634 T.12N., R16E, U.M. 680.00 100.00 Section 27: All Section 28: NE%SE% 680.00 100.00 ( Exhibit 41-A to Eider Special Provisions State of Alaska Eider ParticipatinQ Area Description This Exhibit 41-A will govern and apply only to the Eider Participating Area. Notwithstanding Article 11 of the Unit Agreement, the Eider Participating Area will not be modified and its Tract Participations and Tract Acreage Participations, as set out in Exhibit 40-8, will remain in effect until the termination of the Eider Participating Area and will not be subject to redetermination, except in the event of an expansion of the Eider Participating Area, as provided in Section 42.10. Tract Participations will be the basis upon which all Area Substances from the Eider Participating Area and all Area Costs are allocated to Tracts. . 'If) g- ErE ,f v, r:l) '''''- - \",. e '" L '.. ' ;:: ,~J 2GGO: Eider Special Provisions - Page 21 Final Version: 10/5/98 Updated: 11/2/99 Oil &. Gas Cons. CommissiDn An~hGra!Je I( Exhibit 43-A to Eider Special Provisions State of Alaska Eider Reservoir Development Objectives The Eider Reservoir Development Objectives are the long-term objectives of the Eider Owners for Hydrocarbon Liquids and Gas production to the extent achievable through the use of development wells and the shared Endicott Facilities. These objectives, as of the Eider Participating Area Effective Date, are described below: (a) Achieve and sustain an optimum Hydrocarbon Liquids production rate, up to the limits imposed by the production facilities and wells as described in the Plan of Development for the Eider Reservoir. (b) Inject seawater and/or produced water, if necessary, to improve recovery of Hydrocarbon Liquids. (c) Produced Gas will be used by the Eider Owners to meet their obligation to supply fuel gas for Endicott Area Operations and/or to inject processed Gas from the Eider Participating Area Operation into the Endicott Reservoir, or to reinject into the Eider Reservoir. (d) Permit Hydrocarbon Liquids production from high water-cut wells by utilizing artificial lift. (e) Explore the feasibility of enhancing the economic recovery of Hydrocarbon Liquids and Gas through effective reservoir management of primary and secondary processes. Eider Special Provisions - Page 22 Final Version: 10/5/98 Updated: 11/2/99 ;( Exhibit 43-8 to Eider Special Provisions State of Alaska Plan of Development for the Eider Field The Eider Field will be developed and operated in accordance with the following Plan of Development. Plans for Eider Development include the continuance of production of Eider Unitized Substances through the Endicott Facilities pursuant to the Agreement for Sharing Endicott Area Equipment for Tract Operation. Following DNR approval dated March 9th 1998, well 2-56A/EI-01 was drilled to the Eider Field and started pilot production through the Endicott Facilities June 1 st 1998. In the near term, the development plans for the Eider field include the following: · Monitoring production trends of oil, gas, and water for all producing wells. The second Eider well was shut in on May 24, 1999 at the end of the approved test period. · Plans to maintain reservoir pressure by converting the Eider 1 well to water injection once the proper Endicott partner has been granted. Negotiations with Endicott owners for make- up water is in progress · Evaluating the economic viability of remediaï wellwork on existing wells to maximize production and reserves. · Periodically examining the economic viability of drilling additional wells from the Endicott MPI. Currently estimates are that Eider field life will be approximately 10 years, with an expected ultimate recovery with reservoir support of 6.5 mmstbo, or 37% of the original oil in place. Eider Special Provisions - Page 23 Final Version: 10/5/98 Updated: 11/2/99 .. ( n .1 ~, ,--' ) EIDER SPECIAL PROVISIONS TO THE DUCK ISLAND UNIT OPERATING AGREEMENT WORKING INTEREST OWNER BP EXPLORATION (ALASKA), INC. Date: 'b \ t~ \C\~ ::: EX~~~~ ( \\ vs¡gnare) ~ \~~~~ ~ 0f\1ct\ (printed name) ~~ ~'ðl ~~O~C\r b f\~ð~ ~S· (title) - State of Alaska ) Address: BP Exploration (Alaska), Inc. ( company) ) ss 900 E. Benson (street) Third Judicial District Anchorage, AK 99519 L .. (city, s~ate. zip code) This is to certify that on this C:<5 ~ day of ßrM4A , 19£ before me, the unde,rsigned ~~Notary Public in and for the State of Alaska, personally appeared c<)ì),Y1t?/1 ¡;ø71e' /' . ' tp me kn~n a~d knowp JO 91J3 to be the person who signed the Eider Special Provisions as /¿'Ip//á4¿4 )Ttl~íI{I/)1é/ ~Jt/t/5, ~AJ5 of BP Exploration (Alaska), Inc. and acknowledgéd before me tJ{at he/she/they executed the same on the behalf of said corporation. IN WITNESS WHEREOF, I have hereto set my hand and affixed my official seal the day and year in this certificate first above written. ,.. ,.., \,,.\- C A ' ,;:./ ,.........,._..."'.,~/JI } C <'ë,"\' I¡ ¡) /;ô : ,')- ¡ þ )7 L.,' r- I ~,', -0- r c;:~\ /)'1,.." ,c, /fP~ ,- /:;¡~~~ 12 OF f\\..~ V/¡ ~@tI' f'~ ¿¡/' ,,11 ,. / c~/:. ~. . //M'il1'A * (signature) Notary Public in and for said County and State (S EAL) KR1:55éU- CeAIV!Jh¿, , (name) Eider Special Provisions· Page 23 Final Version: 10/5/98 Tract No. 12 ') Exhibit 40-8 to Eider Special Provisions State of Alaska (revised 8/1/99) Tract, Area and Voting Interest Participations for the Eider Paritcipating Area Description of Tract ADL. No. within PA Tract Acreage within PA 034634 T.12N., R16E, U.M. Section 27: All Section 28: NE%SE% 680.00 680.00 ') Attachment 9 Tract, Area and Voting Interest Participation 100.00 100.00 ) Attachment 10 BP EXPLORATION BP Exploration (Alaska) Inc. 900 East Benson Boulevard P.O. Box 196612 Anchorage. Alaska 99519-6612 (907) 561-5111 November 2, 1999 Mr. Ken Boyd, Director Division of Oil and Gas Alaska Department of Natural Resources 550 W. 7th Ave., Ste. 800 Anchorage, AK 99501 Re: Duck Island Unit Expansion of Eider Participating Area Letter of Non-objection from ADL 034634 (PBU Tract 33, DIU Tract 12) Dear Mr. Boyd: Please receive this letter as confirmation that BPXA as Operator and 100%) Owner of ADL 034634 has no objection to the expansion of the Eider Participating Area and Duck Island Unit as proposed in the concurrently filed application for expansion of Duck Island Unit. A portion of ADL 034634 lies within Prudhoe Bay Unit Tract 33, and a portion lies within Duck Island Unit Tract 12. If you have any questions or require additional information, please contact Mr. Steve Fell at (907) 564-4036. Any correspondence should be sent to the following: E. Peter Zseleczky Land Manager BP Exploration (Alaska) Inc. P.O. Box 196612 Anchorage, Alaska 99519-6612 n Sincerely, J¡¿ ~í J Ken J. Konrad Eastern North Slope Business Unit Leader ') Appendix B :~f~~';::;~':" ;.;. ".;;i11~~~~!;¡» ,.. '. ¡,~;ti ",'" """-"'''''''''':ì'.J'~''" ~;H~ ':~!~;~ .":)r;\ ,~Ilt~~: '~~\~~',~ ;,~;;~',~l;\ , ~ ~\ ".,{',~,," ,Le' (,~.; t . 1" jo'" . i'¡;;.~;'" f·,f;t~·:;, ~ ?:X;:;;';:~' ~j:';.Lr i:!~ ~ Wiif&Y . TONY KNOWLES, GOVERNOR ) b, br/ N¡I;-1¡[1 G---- S P'C~ ./ ----&, tJsBO~¡J/: DIVISION OF OIL AND GAS 550 WEST 7TH A VENUE, SUITE 800 ANCHORAGE, ALASKA 99501-3510 PHONE: (907) 269-8800 FAX: (907) 269-8938 DEP AU.TMENT OF NATURAL RESOURCES Pete Zseleczky, Land Manager BP Exploration (Alaska), Inc. P.O. Box 196612 Anchorage, AK 99519-6612 RECEIVED DEC 6 -1999 EPZ - LAND DEFt -- ";~,(;J/'\::, ,c- ð ~ /7' fi,.'¿¿~ c.-c.. J .~l'",..,,, "fc..--"1''''' 1/7 December 1, 1999 T t f)UðlVD RE: Duck Island Unit, Eider Participating Area Second Plan of Development (Amended) Dear Mr. Zseleczky: FfLtJ" ~ PDck :UL/}?/Þ', {j IV II A6¡£fJ¿fYJ ë:1tIT On November 18, 1999, BP Exploration (Alaska), Inc. (BP), Duck Island Unit Operator, requested an amendment to the Second Plan of Development (2nd POD) for the Eider Participating Area (Eider P A) which the Division of Oil and Gas (DO&G) approved on June 10, 1999. Under the 2nd POD, BP planned to "continue to produce Eider Unitized Substances through the Endicott Facilities pursuant to the Agreement for Sharing Endicott Area Equipment for Tract Operation." However, BP shut-in the Eider 1 well on September 30, 1999, thereby suspending production from the Eider P A. BP is negotiating with the Endicott Participating Area owners to obtain water for injection into the Eider P A. Under the Amended Second Plan of Development (Amended 2nd POD) Production from the Eider P A will remain shut-in until BP converts the Eider 1 well to an injector, obtains water for injection, and resumes production from the Eider 2 well. DNR considered the criteria in 11 AAC 83.303 and finds that the Amended 2nd POD, submitted on November 18, 1999, protects the public i1;lterest. The Amended 2nd POD is approved for the period June 1, 1999 through June 30, 2000. Under 11 AAC 83.343, the Third Plan of Development for the Eider PAis due on April 3, 2000, 90 days before the Amended 2nd POD . expires. . Sincerely, ~* Kenneth A, Boyd \ Director cc:Gary M. Osborne, ENS Subsurface Manager Bonnie Robson, Dept. of Law Eider2ndPODAmt'lhbl.doc "Develop, Conserve, and Enhance Natural Resources for Present and Future Alaskans." P(i!1~~~d on recvr1p.o ~)~:L·t'f tì y ~~:. [j, ) ) BP EXPLORATION BP Exploration (Alaska) Inc. 900 East Benson Boulevard P.O. Box 196612 Anchorage, Alaska 99519-6612 (907) 561-5111 November 16, 1999 Mr. Ken Boyd, Director Division of Oil and Gas Department of Natural Resources 550 W. 5th Avenue, Suite 800 Anchorage, Alaska 99501 Re: Duck Island Unit Eider Participating Area Second Plan of Development (Amended) Dear Mr. Boyd, As recently discussed with your staff, the Eider 1 well was shut in on September 30, 1999 in order to avoid damaging the Eider reservoir. BPXA intends to resume production from Eider 2 after obtaining water for injection into Eider 1. The sale of the water is subject to the approval of the Endicott Owners. We anticipate having such approval early in 2000. Enclosed please find the Second Plan of Development (POD) for Eider (as Amended on 11/16/99), which we request be approved through June 30, 2000. The Second POD, as amended, provides for the Eider 1 well to be shut in until water is available and the well can be converted to an injector. If water can be obtained before the Eider Participating Area is expanded to encompass the Eider 2 well, BPXA will request that DNR approve test production from Eider 2. If you have any questions, please feel free to contact me at 564-5361 or Steve Fell at 564-4036. Sincerely, -A; /1f i/(_ Gary M. Osborne ENS Subsurface Manager cc: William Van Dyke, DNR Attachment ) ') Duck Island Unit Eider ParticipatinQ Area Second Plan of Development (6/30/99-6/30/00) (as Amended on 11/16/99) Status Of Activities Proposed In Initial POD BP Exploration (Alaska), Inc. ("BPXA") drilled two wells into the Eider reservoir: 2-56A/EI-01 ("Eider 1") and 2-30A/EI-02 ("Eider 2"). Cumulative production through May 24, 1999 was 0.86 mmstb oil, 5.0 Bscf gas, and 0.03 mmstb water. BPXA currently estimates that the field life will be approximately 10 years, with an expected ultimate recovery of 6.5 mmstbo, or 37% of the original oil in place. The Initial Plan of Development for the Eider field listed several short term development plans. The status of each of these is as follows: . BPXA took regular well tests with the Endicott MPI test separator to monitor oil, gas and water production levels and trends from the Eider 1 and 2 wells. · BPXA performed reservoir and PVT analysis to provide rock and fluid properties for reservoir simulation. · BPXA reinterpreted 3D seismic data to include the results of the Eider 1 well. BPXA used the reinterpreted data to: · Refine the structural model and areal footprint of the pool. · Provide the framework for the reservoir simulation model that was built. · Provide the most accurate basis possible for the Eider 2 well. · BPXA performed well design/planning work for the Eider 2 well, which has now been drilled and completed. . BPXA reinterpreted the 3D seismic data a second time following the initial, plugged- back penetration of the Eider 2 well (2-30A/PB-1). This data was used to further refine the well plan for Eider 2, and was also incorporated into the reservoir simulator. · BPXA performed reservoir simulation to determine the optimum depletion strategy, and assessed the feasibility of water injection or gas injection. BPXA has determined that the optimal depletion strategy is to inject water into the Eider 1 well. Duck Island Unit / Eider 2nd POD (Amended 11/16/99) PAGE 1 ) ) Second Plan of Development BPXA will develop and operate the Eider Participating Area as follows through June 30, 2000. Expansion of Eider Participating Area Expansion of the Eider Participating Area at all depths to encompass the entire reservoir is in progress. The Working Interest Owners in the affected areas have reached technical agreement on the size of the concurrent expansion of the Duck Island Unit and the Eider Participating Area, and the contraction of the Prudhoe Bay Unit, Niakuk Participating Area and Lisburne Participating Area. The Working Interest Owners of the affected areas have executed ballot agreements in support of the concurrent expansion and contraction, and BPXA filed the expansion and contraction applications with DNR on November 3, 1999. Injection The Eider 2 well was shut in on May 24, 1999 at the end of the approved test period, and the Eider 1 well was shut in on September 30, 1999 in order to avoid damage to the reservoir. BPXA plans to maintain reservoir pressure by converting the Eider 1 well to water injection once the proper Endicott partner approval has been granted, and thereafter producing from Eider 2. BPXA continues to negotiate with the Endicott owners to obtain water for injection, and has undertaken technical work to assure the Endicott owners that the provision of water to Eider will not be detrimental to Endicott. The technical work is underway and anticipated to be completed in early 2000. BPXA anticipates reaching a commercial agreement with the Endicott Owners shortly thereafter. Once water is available for injection at a commercially reasonable price, BPXA will resume production of Eider Unitized Substances through the Endicott Facilities pursuant to the Agreement for Sharing Endicott Area Equipment for Tract Operation. BPXA will continue to monitor production trends of oil, gas, and water for all producing wells. If water support is obtained from Endicott prior to approval of the expansion of the Duck Island Unit and the Eider Participating Area, BPXA will request that the Department of Natural Resources approve test production from the Eider 2 in order to resume production. Duck Island Unit! Eider 2nd POD (Amended 11/16/99) PAGE 2 ') ) Drillinq At this time, further drilling in the Eider Participating Area, such as in-fill or peripheral wells, is not economically viable given the size and location of the remaining reserves. When BPXA determines that a well has no remaining economic potential, the abandonment and sidetracking of the well to an alternative bottom hole location will be considered. BPXA will evaluate the economic viability of remedial wellwork on existing wells to maximize production and reserves. BPXA will also periodically examine the economic viability of drilling additional wells from the Endicott MPI. Duck Island Unit / Eider 2nd POD (Amended 11/16/99) PAGE 3