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HomeMy WebLinkAboutDIO 011 )) Image Project Order File Cover Page XHVZE This page identifies those items that were not scanned during the initial production scanning phase. They are available in the original file, may be scanned during a special rescan activity or are viewable by direct inspection of the file. "~.L 0 0 ,) Order File Identifier Organizing (done) ¢Two-sided 1111111111111111111 o Rescan Needed 1II1111111111111111 RESCAN ~olor Items: , 0 Greyscale Items: DIGITAL DATA ¡Ø'biskettes, No. , o Other, No/Type: OVERSIZED (Scannable) o Maps: o Other Items Scannable by a Large Scanner o Poor Quality Originals: o Other: OVERSIZED (Non-Scannable) ~9S of various kinds: NOTES: Date: ~ f¡1 0 b o Other:: BY: ~ /s/ m.J 1111111111111111111 V11f1 Project Proofing BY: ( Maria 1.. -.;: -, - Date: ;).. '~/ 0 ~ /s/ Scanning Preparation BY: (_Maria J x 30 = Date: ~,. 91/ (') b + = TOTAL PAGES J 0$ (Count does not include cover sheet) 111/1,:2 /s/ f r ~ 1111111111111111111 Production Scanning Stage 1 Page Count from Scanned File: I D h (Count does include cover sheet) Page ~ount Matches Number in s~annin~,reparation: V YES rMaria 7 Date:d-!@'I00 If NO in stage 1, page(s) discrepancies were found: YES Stage 1 BY: Maria Date: NO /s/ rn,:J NO /s/ I 1 BY: Scanning is complete at this point unless rescanning is required. ReScanned BY: Maria Date: /s/ Comments about this file: Quality Checked 1111111111111111111 10/6/2005 Orders File Cover Page.doc • Kenai Gas Field KU 24-7 1. September 16, 1996 Marathons Application for Disposal Injection Order 2. October 14, 1996 Addendum to Application for Underground Injection Order 3. November 20, 1998 Ltr from Marathons regarding 24 month 4. October 26, 1996 Notice of Hearing 5. November 25, 1998 Ltr to Marathon re: 11/20/1998 ltr 6. January 11, 2002 Ltr Patton Boggs re: Marathon be allowed to dispose of certain radioactive tracer returns 7, September 27, 2004 Proposals to amend underground injection orders to incorporate consistent language addressing the mechanical integrity of wells 8. November 21, 2004 Report from Marathon KU 24-7 Cuttings Disposal Project Evaluation 9. February 7, 2006 Amend Disposal Injection Order ("DIO") 11, by replacing well KU 24-07 (PTD 182-016) with sidetrack well KU 24-7rd (PTD 205-099). (DIO 11.001) 10. 2007 Kenai Gas Field Grind & Inject (G&I) Operations (Confidential) 11. March 8, 2010 Marathon's commercial disposal through G&I facility Disposal Injection Order 11 , l STATE OF ALASKA OIL AND GAS CONSERVATION COMMISSION 3001 Porcupine Drive Anchorage, Alaska 99501-3192 Re: The REQUEST OF MARATHON OIL COMPANY to dispose of Class II oil field fluids by underground injection in the Kenai Unit 24-7 well ) Disposal Injection Order No. 11 ) ) Kenai Unit Well No 24-7 ) Kenai Unit ) November 21, 1996 IT APP.EARING THAT: 1. Marathon Oil Company by correspondence dated September 16, 1996 made application to the Alaska Oil and Gas Conservation Commission (AOGCC) for authorization to inject Class II waste fluids into the Kenai Unit No 24-7 (KU 24-7) well. 2. The AOGCC requested a modification to the original application on September 25, 1996. Marathon Oil COl11pany provided the requested information on October 17, 1996. 3. Notice of an opportunity for public hearing was published in the Anchorage Daily News on October 26, 1996. 4. Marathon Oil Company provided revised operational parameters for the proposed disposal project and additional information regarding potential fracture development on November 6, 1996. 5. No protest or request for a public hearing was timely filed. FINDINGS: 1. Cook Inlet Region Inc. and Salamantof Village are surface owners within a one- quarter mile radius of the KU 24-7 and have been duly notified of the proposed plans. 2. Marathon Oil Company is the operator of the Kenai Unit. There are no other operators present within a one-quarter mile radius of the proposed KU 24-7 disposal injection project. 3. The Kenai Unit No. 33-7 (KU 33-7) well penetrates the proposed injection zone within a one-quarter mile radius of the KU 24-7 well. ) Disposal Injection Order 1\ 0. 11 November 2 I, 1996 Page 2 ) ¡ 4. KU 33-7 has 13 3/8-inch surface casing set at 2025' measured depth and cemented to surface. Production casing is 9 5/8-inch pipe set at 6529' measured depth and cemented up to 3950' measured depth equivalent to 3515' TVD subsea. 5.KU 24-7 was drilled to a total measured depth of 5820', equivalent to 4796' true vertical depth. 6. The Sterling Formation consists of Pliocene aged, massively bedded, predominately coarse grained, fluvial deposits and is present within the KU 24-7 from above the surface casing shoe at 2003' measured depth to total depth. 7. The proposed disposal injection zone consists of three highly porous and permeable, and pressure depleted sandstones that are present from 4400' to 4710' measured depth (approximately 3720' to 3960' true vertical depth) in KU 24-7. 8. The production and Class II disposal injection history of Kenai Unit Sterling F ormation gas reservoirs similar to the 4400' to 4710' measured depth interval in KU 24-7 indicates the sandstones are highly permeable. 9. 40 CFR 147. 1 02(b) (1) (c) exempts all underground sources of drinking water (USDWs) at depths greater than 1300' below ground level and extending one quarter-mile beyond the boundaries of the Kenai Unit, 10. Approximately 2400 true vertical feet of Sterling Formation sediments separate the proposed disposal injection zone in KU 24-7 from the base of the non-exempt USDWs in the Kenai Unit. This interval contains an aggregate thickness of more than 450 true vertical feet of impermeable confining zone shale lithologies. 11. KU 24-7 has 13 3/8-inch surface casing string set at 2003' measured depth and cemented to the surface. 12. The production string in KU 24-7 consists of9 5/8-inch casing set at 5801' measured depth, cemented to at least 3250' measured depth. 13. KU 24-7 will meet the test requirements of20 AAC 25.030 and 20 AAC 25.412 prior to initiating disposal injection. 14. Two strings of three and 1/2-inch tubing are installed in KU 24-7 with a dual packer set at 4313' and a single packer set at 4679' measured depth. 15. Cement evaluation tools run in KU 24-7 indicate good to excellent cement bond from total depth to at least 3250' measured depth. 16. The operator will demonstrate mechanical integrity pressure testing KU 24-7 prior to initiating disposal operations. ) Disposal Injection Order 1\[0. 11 November 21, 1996 Page 3 ) 17. Disposal fluids will consist of fluids associated with drilling, production, and workover operations. Typical fluids will include, produced fluid, drilling and completion fluids, equipment wash water, drilling mud, cuttings, and NORM scale. 18. Well KU 24-7 will be operated intermittently, as needed, on a weekly basis. The operator expects to run the operation 5 days per week, approximately 12 hours per day under normal conditions. 19. Maximum injection rates are expected to be as high as 7200 barrels per day. Average injection rates are estimated to be 1000 barrels per day. 20. Estimated average surface injection pressure wi11 be 1600 psi. and maximum will be less than 2400 psi, limited by pump working pressure and safety relief valve pressure. 21. The estimated injection pressure parameters for KU 24-7 are based on previous disposal well tests and their nominal performance during disposal operations. 22. A three-dimensional hydraulic fracture simulation with a 500,000 barrel disposal volume using operational parameters and fluid types described in the application, predicted the proposed KU 24-7 disposal project will induce a fracture up to 650' high (approximately to 3200' TVD, 3850' MD) 1900' below the base of the nonexempt aquifer in the Kenai Unit. Over 265' of confining above the fracture are expected to prevent movement of disposal fluids into nonexempt aquifers. 23. The operator will monitor disposal performance using instantaneous shut in pressure plots versus cumulative disposal, well head pressure trends, and disposal rates. These data will be evaluated relative to modeling results to qualitatively track fracture height and disposal placement. 24. The operator will monitor the casing-tubing annulus pressure on the disposal well and report the results on the Monthly Injection Report. Production wells annuli are monitored routinely to confirm integrity. CONCLUSIONS: 1. The approval of disposal injection operations at KU 24-7 will not jeopardize correlative rights. 2. Permeable strata which reasonably can be expected to accept injected fluids are present in the interval from 4400' to 4710' measured depth in KU 24-7. ) Disposal Injection Order No. 11 November 21, 1996 Page 4 l 3. The disposal interval, 4400' to 4710' measured depth, in KU 24-7 is approximately 2420 true vertical feet below the base of the deepest non-exempt USDW in the Kenai Unit. 4. More than 450 vertical feet of impermeable confining zone lithologies are present in KU 24-7 between the top of the proposed disposal injection zone and the base of the deepest non-exempt USDW. 5. Disposal fluids injected at KU 24-7 will consist exclusively of Class II waste generated from drilling, completion, and production operations. 6. KU 24-7 is constructed in conformance with the requirements of20 AAC 25.030 and complies with 20 AAC 25.412. 7. Well integrity will be demonstrated in KU 24-7 in accordance with 20 AAC 25.412. 8. Operational parameters will be monitored routinely at the KU 24-7 for indications of abnormal pressure and rate conditions. 9. Disposal injection operations in the KU 24-7 will cause fracturing of some of the low stress depleted sands and shales above the disposal interval. Over 350' of confining shales and numerous sands will prevent movement of disposal fluids into nonexempt aquifers. 10. Cement evaluation logs and well records demonstrate the KU 24-7 well and the adjacent KU 33-7 well have adequate cement behind casing to properly contain fluids within the disposal injection zone; neither well should serve as a conduit to the surface. 11. The requirements of20 AAC 25.252 have been met. NOW, THEREFORE, IT IS ORDERED THAT: Rule 1 Authorized Injection Strata for Disposal. Class II oil field fluids may be injected in conformance with Alaska Administrative Code Title 20, Chapter 25, for the purpose of disposal into the Sterling Formation interval from 4400' to 4710' measured depth in KU 24-7. Rule 2 Demonstration of Tubing/Casing Annulus Mechanical Integrity The tubing/casing annulus must be tested prior to the start of injection and at least every four years thereafter for mechanical integrity in accordance with 20 AAC 25.412. The Commission must be notified at least 24 hours prior to these tests so they may witnessed. Disposal Injection Order )0. 11 November 21, 1996 Page 5 Rule 3 Well Integrity Failure Whenever disposal rates and/or operating pressure observations 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 of a plan for corrective action and obtain Commission approval to continue injection. Rule 4 Administrative Action Upon request, the Commission may administratively revise and reissue this order upon proper showing that any changes are based on sound engineering practices and will not result in an increased risk of fluid movement into an underground source of drinking water. DO N.E at Anchorage, Alaska and dated November 21, 1996 'ftJt'''~,\I'''''I~~¡o.,.........\...~ ~ ....,,~"':. 0 &. ", ,.,. 'i~ m{ ~ i<1v ~¡,,,;,,,,, ""'-"~""'''''>''~~':''\ ./ 't /~ ~w ,,'(,' ,.lto) ~1~:l.ll' ¡:¡ "I ." ~\;,~. " ,~ .!¡.,~.. ,;'> .~. \,. ;/ , (~:;,~; ;. "If' :'" , t),~J_ . ~ ,~¡ 'I ,\, ~ \. \ ~,.~_ ".,.-. ~:I(" \~ II, ,,oJ " '\,"~i:,,\-=-"-3" " ,..'~, ~~~!.i,;ífi~~i!,::~i \" i{~\ 4\ '-:-~'. Ik" ',',1 ~"¡,, ,..' "I,."Þ'J '·\Ìi:t\,·<~~¡~~>,"., ,'\' :j'/ ',/L.I"'~'·;"'::'~/" '\\1 <'f' ,t".' .".,'" -c:,;.,.... r. .f" 111 ~,;¡. ".~, ,j' "Þ~ib~~'~'~~ö;~;"f'r' ...."""""""....~ l~~= Alaska Oil & 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 10-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, the 30-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). ~u~uŒ [ûJ~ ~~~~ltriÆ ALASKA. OIL AM) GAS CONSERVATION COMMISSION FRANK H. MURKOWSKI, GOVERNOR 333 W. pH AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 ADMINISTRATIVE APPROVAL NO. DIO 11.001 Mr. Ben Schoffmann Operations Superintendent Marathon Oil Company P.O. Box 196168 Anchorage, AK 99519-6168 Re: Request to amend Disposal Injection Order ("DIO") 11, by replacing well KU 24- 07 (PTD 182-016) with sidetrack well KU 24-7rd (PTD 205-099). Dear Mr. Schoffman: The Alaska Oil and Gas Conservation Commission ("Commission") grants the request of Marathon Oil Company ("MOC") to amend DIO 11 by replacing well KU 24-07 with sidetrack well KU 24-7rd. By Application for Sundry Approvals (Form 10-403) dated June 21, 2005 and application for Permit to Drill (Form 10-401) dated June 22, 2005, MOC proposed to abandon well KU 24-07 (PTD 182-016) and replace it with sidetrack well KU 24-7rd (PTD 205-099). During an attempted workover operation approved by the Commission on February 17, 2005 (Sundry Approval No. 305-034), MOC deter- mined that KU 24-07 was damaged beyond repair. The Commission finds as follows: 1. KU 24-7rd was drilled to a bottom-hole location approximately 170 feet away from KU 24-07's bottom-hole location; 2. during an attempted workover operation, MOC determined that KU 24-07 was irreparably damaged; 3. KU 24-07 and KU 24-7rd penetrate common subsurface strata; 4. MOC proposes to utilize well KU 24-7rd as a replacement for the no\\!" abandoned well KU 24-07, for injection in the Kenai Unit; DIO 11.001 February 7,2006 Page 2 of2 5. KU 24-7rd's area of review ("AOR") encompasses no wells that are not already within KU 24-07's AOR, and 6. Replacing well KU 24-07 with sidetrack well KU 24- 7rd is based upon sound engineering practices and will not result in an increased risk of fluid movement into an underground source of drilling water. It is therefore ordered that DIO 11 is amended by replacing well KU 24-07 with sidetrack well KU 24-7rd. As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing is consid- ered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. A person may not appeal a Com . ssion decision to Superior Court unless rehearing has been requested. "- ~ffi~¡i Mary Jones XTO Energy, Inc. Cartography 810 Houston Street, Ste 2000 Ft. Worth, TX 76102-6298 David McCaleb IHS Energy Group GEPS 5333 Westheimer, Ste 100 Houston, TX 77056 Mona Dickens Tesoro Refining and Marketing Co. Supply & Distribution 300 Concord Plaza Drive San Antonio, TX 78216 George Vaught, Jr. PO Box 13557 Denver, CO 80201-3557 Jerry Hodgden Hodgden Oil Company 408 18th Street Golden, CO 80401-2433 Richard Neahring NRG Associates President PO Box 1655 Colorado Springs, CO 80901 John Levorsen 200 North 3rd Street, #1202 Boise, 10 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 Ciri Land Department PO Box 93330 Anchorage, AK 99503 Baker Oil Tools 4730 Business Park Blvd., #44 Anchorage, AK 99503 Ivan Gillian 9649 Musket Bell Cr.#5 Anchorage, AK 99507 Jill Schneider US Geological Survey 4200 University Dr. Anchorage, AK 99508 Gordon Severson 3201 Westmar Cr. Anchorage, AK 99508-4336 Jack Hakkila PO Box 190083 Anchorage, AK 99519 Darwin Waldsmith PO Box 39309 Ninilchick, AK 99639 James Gibbs PO Box 1597 Soldotna, AK 99669 Kenai National Wildlife Refuge Refuge Manager PO Box 2139 Soldotna, AK 99669-2139 Penny Vadla 399 West Riverview Avenue Soldotna, AK 99669-7714 Richard Wagner PO Box 60868 Fairbanks, AK 99706 Cliff Burglin PO Box 70131 Fairbanks, AK 99707 Bernie Karl K&K Recycling Inc. PO Box 58055 Fairbanks, AK 99711 North Slope Borough PO Box 69 Barrow, AK 99723 Williams Thomas Arctic Slope Regional Corporation Land Department PO Box 129 Barrow, AK 99723 \~\~~\O~ DIO 11.001 Kenai Gas Unit Subject: DIO 11.001 Kenai Gas Unit From: Jody Colombie <jody_colombie@admin.state.ak.us> Date: Tue, 07 Feb 2006 15 :26:36 -0900 T,'. 0,', :,..,,·,.,.,u,n,..'..d,:,is,',',c"·"lo,·,,,.'.se,d-,r¢,','cip,'.,l,·e,',,'.',',n,..,ts:; , ,,' " ".,'."', ,,',., ,,',' , . "'" ,',,' ',', .,..' "",.,', 1 of2 2/7 /2006 3 :26 PM DIG 11.001 Kenai Gas Unit ., """",1 I i <Content-Type: applicatiÖn/pdfl I dioll-1.pdf I I. "I Content-Encoding: base64 "'1 20f2 2/7/2006 3:26 PM X11 Marathon & commercial dis~al through G&I facility • Page 1 of 2 Maunder, Thomas E (DOA) From: Stebbins, Tiffany A. [tastebbins@marathonoil.com] Sent: Tuesday, March 09, 2010 9:27 AM To: Maunder, Thomas E (DOA) Cc: Regg, James B (DOA) Subject: RE: Marathon & commercial disposal through G&I facility Tom, ~~~ t \ ~s-~~.~ Thanks for responding to the subject. If we do begin third party disposal, `I will add a line item to capture the volumes on our annual DIO reporting. C'1ti~ ~ ~tefi~b~i.n.G~ Regulatory Compliance Representative Marathon Oil Corporation Phone 907-565-3043 Ce11907-529-0522 Fax 907-565-3076 From: Maunder, Thomas E (DOA) [mailto:tom.maunder@alaska.gov] Sent: Monday, March 08, 2010 2:03 PM To: Stebbins, Tiffany A. Cc: Regg, James B (DOA) Subject: RE: Marathon & commercial disposal through G&I facility Tiffany, Commission Disposal Injection Orders (DIOs) authorize the Operator to dispose of Class II waste. We have not made any distinction regarding whether the injected waste is solely produced by the Operator or results from some third party's well operations. If third party waste is accepted, it is incumbent on Marathon to be satisfied that the waste is indeed Class II and meets the requirements of the DIO. In your annual report it may be appropriate to have a third party line item where such volumes can be listed. Call or message with any questions. Tom Maunder, PE AOGCC From: Regg, James B (DOA) Sent: Monday, March 08, 2010 11:45 AM To: Maunder, Thomas E (DOA) Subject: FW: Marathon & commercial disposal through G&I facility Jim Regg AOGCC 333 W.7th Avenue, Suite 100 Anchorage, AK 99501 3/9/2010 Marathon & commercial dis~sal through G&I facility ~ Page 2 of 2 907-793-1236 From: Stebbins, Tiffany A. [mailto:tastebbins@marathonoil.com] Sent: Monday, March 08, 2010 11:00 AM To: Regg, James B (DOA) Subject: Marathon & commercial disposal through G&I facility Hi Jim, We are considering commercial disposal. Would we need to convert our current disposal permit to a commercial disposal permit even if we intend to only dispose of approved Class II exempt wastes. Thanks, C'1ti~~ar-,~. ~ ~h~,i,rv~ Regulatory Compliance Representative Marathon Oil Corporation Phone 907-565-3043 Cell 907-529-0522 Fax 907-565-3076 3/9/2010 X10 _ L ~ ~9 FW: KU 24-07 and KU 24-07RD offsets Subject:.FW: K1124-07 and KU 2407RD offsets From: "Schoffmann, A B (Ben)" <abschoffmann@marathonoit:com> Date: Tue, 07 Feb 2006 13'01:09 -0900 To: Winton G Aubert <Winton_aubert@admin.state:ai<.us> Winton, We have confirmed the interference data for the two referenced wells for the administrative DIO change we discussed. As indicated, the maximum departure is 169' (at TD), which is basically the 170' we discussed previously. The corrected completion sundry will be in the mail shortly. Ben Ben Schoffmann Operations Superintendent Marathon Oil Company work: 907-565-3035 ce//: 907-748-3589 fax: 907-565-3076 From: Laughlin, Gary A. Sent: Tuesday, February 07, 2006 11:11 AM To: Sthoffmann, A B (Ben) Cc: Laughlin, Gary A. Sutriect: KU 2407 and KU 24-07RD offsets Ben, It looks like at the perf interval the separation between the original hole and new hole starts at 98' and ends up roughly 125' apart and the maximum separation of 169' at TD. Gary C1ffss<l D6sIgl7 )~gl'~+Lt ~CA~ FtE; ~ Fikl9 .1-'33 1€,. 2~-7 - Ki} F~-T - ~ - ~H C'`rfg'.rs' HO*~ ~~aef 341 errs-~. t~? t 8~ Vra4t ua- '3t}• NV~4s~2 OR8s4 iYaA 6m~: . ut.'t ita~xnsn oreai a,m~ f~to}or nacre ~~ - . #®$DUf011 VP'tttal. 11t~7i3f86 $4~. Ra2HM4R 4'A`i0~ M6#~ SHrCa4 Ytlff°iDCB LC~`1hfA E#!VIFfiBt ~l~K"~8619 RS3Y~BIUi11 SB~fa!3~191t 143f1NSltj ~«r~ ~$~ £;8~1ls i941£a€8 «Nt-1C tBi-N CSYtIYiB ElfiptlP4 S808Td~91i At1ZDt {31} t';1 i4Y7 ~ #tt7 jet} i) e~) iry itYj ?"r'r VYti ..-,, 32 ,.~ ...a 323 13.E _: .3.-x.3. ?f6.&~ . ~ .- ».8£ >._ .. _.:. _ _.. m :'2.CC +. _. _._~ t ,...._. _. .. _ _-_. +33.22 -_>.5` .Tfc '^<a kY =1$.bE -: £~ _... _ ,. ~=43-43} ~:-': ': tff. __ ~ 3387 _. _& , ..37..3 337.m£ -' ~.1'y o:.'4 -?.&5P aa,'-; ,. 4,158.40 3.'.~ 3T -1::. :i•. '7 24.37 ..2 ~93:~7 373.45 -1.3 ~. ..&1 &#:~ 1. a_.EE t.4:- - . ~ ,_.,~.-., a,23}.(q`e 3,: 122 a,23&.93 -' r9 Y8.t4 a~.at y37.T3 394.33 -;.w:.a.~b 3.43 9.75 Ss.:, , "-,;- ~ +..:.'aC::.,:rm' e ~sDC '3.833.34 a,~6e0 3.641Y.,K3i x.73 ~.*S =4P%.?$ 707.61 -? 4=2.£s 79.?~l 16.16 66.81 t.a,t '3 r -... ~ ai6AY4 Rtd~2 -~,T3?.~ ~,bE~,BS a~.&~ xs za 97.33' T2L27 -5.9a3.8~ .-e d3 75.34 a2.S9 a.&3s kt4r,~2er «-'9.fiE $"1.15 9,4f6.93 3,73.3.E 835 *2+9 ~7. &3 T6L13 •1,,9~.3i _, ?'- 3x,3: Sd.~F ".$~ .. 3x1:. e,a~as b.7t^3.mA ~ ° .> es «477t zsa.~ -~7r~a 1, ~aec h= u> r.a .. _..: _ .'_[ ?4 ?.dat.~ $,6x5.39 S6T4 '~` a,~ ~t.35 3Pk-6'1 -2,fE8.71 =_ : ~S.3S ,_ ... '&,a''~`$ ,ct?.tom _ _ e ~03R4 3,$7&.21 3t_P? .'.,4 ~ 4%.33 i93.'t5 -a^.,t~t,33 1.:.~.$t= 3142? TSE, fi,6,:3 A~BTAOT 3,F3$.11 - g.5>>.ae 3.F~7c33 3E - ' 69 -35.63 308.#3 8,131_?7 916.'3 x.77 78,48 9,4:4 a 73a,r~ ~ Ma -a:.3_ 3>907.25 3ia= ,. ~?i.at 32S.A6 -a.,s63.Fr. x56 a3 T?.3& 79:x4 '.9&9 4„304.49 a.c~a~rt t.~a`.67 a,a^3~..a3 as.3~~ at_aa .~..tr 3x3.11 ~32u7_~a 13St23 67.32 a^:.~a ~.~a3s 1 of 1 2/7/2006 1:05 PM #8 ,) o Marathon KU 24-7 Cuttings Disposal Project Evaluation R. D. Barree Barree & Associates LLC November 21, 2004 u- In 1996 a model was constructed to forecast the fracture growth resulting from injection of cuttings slurry in the KU 24-7 well. The injection project has continued through this year. A look-back model evaluation using the actual observed surface pressures from the injection project was requested by Marathon Oil Company, Anchorage. This report documents the results of that analysis. It provides an estimate of the fracture geometry resulting from the cutting slurry injected up to this time, and the effect of continued injection up to a total of 1.5 million barrels of slurry. 1 are 2 . . C1-)r~~í~" KU 24-7 Injection Project ì <t> Pool 3 Sterling Sands Perfs · AI0: 4410-4490' MD · All: 4525-4560' MD · Injection from 8/18/2001 - present <t> Pool 4 Sa nds · B2: 4696-4708' MD · Injection from 4/27/2000 - 8/18/2001 <t> Average rate while pumping = 6.8 bpm <t> Average solids loading = 11-140/0 <t> Solids pass through 50-mesh screen Copyright B&A 2004 The cuttings disposal initially began in the lower B2 perfs. After injection of about 180,000 barrels of slurry the injection was switched to the upper A-sand perfs because of rising treating pressure. Injection continued through the upper perfs to the present time. Cuttings injection was a batch process, rather than continuous injection. While pumping, the average rate was 6.8 bpm. The slurry was composed of 11-14% solids by volume and the solids were ground to pass through a 50-mesh screen. 3 Iii Q. <i 2500 ,. ;:¡ f.I f.I <II à: ¡:: .2 Õ <1> £ <J> <.> -ê ;:¡ (/) 700000 :¡s .,¡;¡ '"Ò <II Õ Q E >, .. $ ø Q i; m :; E ;:¡ u ~ 100000 12/1012002 ¡¡¡1!1nOO:; Copytìght 13M 2004 4 200 400 600 800 '1000 1200 1400 1600 1800 2000 Cumulative Hours on Injection Copyright 8M 2004 47$6 4920 5Ó54 5U6 6318 6450 6579 Copyright B&A 2004 6 '¡¡¡ 0. .~ , ~ e .. . o ~ if> 200.00 400.00 600.00 800.00 1000,00 1200.00 1400.00 1600.00 1800.00 2000.00 HQurs Contitmus Injection '¡¡ '" ~ 2000- ~ e '" . . {! ~ '" 1000<00 1 0000,00 Hours on -ContjnQus Injection CopyrIght B&A 1004 8 9 Cumulative 8armJs :!! '" ~ 3000 ~ ~ œ u. " ~ æ () 1,00.0 10,000 100,000 1,000,000 10,000,000 CumuJative Barrels Injected Copyríght 8&A 2004 ) ) KU 24-7 Disposal Project 1M;r^, Conclusions G I~\l.tl!l':c iX ~~...'i..\tl·U ~ The current "look-back" model gives similar results to the pre- injection model study conducted in 1996 ~ The fracture height is expected to be contained by a series of substantial coal seams above and below the perforated interval ~ A current fracture height of 300-400 feet is expected, with a length of 3000-3200 feet ,/'-) ~ Extension of the injection volume up to/~.8/million barrels should not result in excessive growth in'fytcture length or height ' ~ The two tubing strings appear to be in communication, so accurate localization of injection is not possible ~ Data used to constrain the model are incomplete and the results presented here are based on general trends of the observed Injection pressure and may not be accurate Copyright BM 2004 The results of the model are as accurate as can be, based on the available data. In-situ stresses and rock properties are based on digital log data, with poorly defined estimates of original and current pore pressures in the disposal zones and surrounding rocks. No direct measurements åf frac geometry or growth have ever been made to help constrain the model. Within these limitations, the current model predictions give results similar to the previous model study. Fracture height is predicted to be dominated by bounding coals. Continued injection of up to 1.8 million barrels of slurry is not predicted to substantially alter the current fracture geometry. 11 #7 ) (~~":,,,,Q,U,l""- ?,..I ' II\" '~~,,' ',',!:J,',rr '~~ ., 'U' '1·\ '\ ,[ it :,:.:J '''' ~,:" ¡W',,\ ... ': fr1J J '.. ,¡,.,...,\ \:U' :\ r "~j, ' iJ:U '.. J..,;:.:1 (~n~1¡·T..:J ,",,1'1, :," ,',I,,~ 'iJjl" ¡ IU,'i¡;¡ ,~ ' 'i-J '......·'r ..~. i, ,~1 ;' ,:~ "\ f '~j ii ! It \ ::c.,.," ,/,1 .. /, ;;;;\ \ C~\,J) ,t.....::::) i..J ...J '''_~' /1'\ / j;:\ ....\ /lP ,LñJ FRANK H. MURKOWSKI, GOVERNOR A"ßA~1iA. OIL Ala) GAS CONSERVATION COltDllSSION 333 W. TH 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 mechanical 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 integrity 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 10-403 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 inj ection zone isolation. 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. 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 Injection 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 ¡ AID 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 1 DB - Milne Point Unit; Schrader BlutI: Sag River, Kuparuk River Pools AIO 11 - Granite Point Field; Southern Portion AIO 12 - Trading Bay Field; Southern Portion AIO 13A - Swanson River Unit AIO 14A - Prudhoe Bay Unit; Niakuk Oil Pool AIO 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 1 7 - 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 U nit; Meltwater Oil Pool AIO 22C - Prudhoe Bay 5 No rule 8 Unit; Aurora Oil Pool 6 9 AIO 23 - Northstar Unit 5 AIO 24 - Prudhoe Bay Unit; 5 No rule 9 Borealis Oil Pool AIO 25 - Prudhoe Bay Unit; 6 8 13 Polaris Oil Pool AIO 26 - Prudhoe Bay Unit; 6 No rule 13 Orion Oil Pool Disposal Injection Orders D 10 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 DIO 3 - Beluga River Gas No rule No rule No rule Field; BR WD-l DIO 4 - Beaver Creek Unit; No rule No rule No rule BC-2 DIO 5 - Barrow Gas Field; No rule No rule No rule South Barrow #5 DIO 6 - Lewis River Gas No rule No rule 3 Field; WD-l DIO 7 - West McArthur 2 3 5 River Unit; Wl\1RU D-l DIO 8 - Beaver Creek Unit; 2 3 5 BC-3 DIO 9 - Kenai Unit; KU 11- 2 3 4 17 DIO 10 - Granite Point 2 3 5 Field; GP 44-11 Injection Order "Demonstration of Mechanical Integrity" 2 --- 010 11 - Kenai Unit; KU 24-7 DIO 12 -- Badami Unit; WD- 1, WD-2 010 13- North Trading Bay Unit; S-4 010 14 -. Houston Gas Field; Well #3 oro 15 - North Trading Bay Unit; S-5 OIO 16 - WestMcArthur River Unit; WMRU 40 010 17 ,- North Cook Inlet Unit; NCrU A-12 010 19 - Granite Point Field; W. Granite Point State 17587 #3 01020 - Pioneer Unit; Well 1702-15DA WDW DIO 21 - Flaxman Island; Alaska State A - 2 010 22 - Redoubt Unit; RU 01 DIO 23 - Ivan River Unit; IRU 14-31 DIO 24 - Nicolai Creek Unit; NCU #5 DIO 25 - Sterling Unit; SU 43-9 010 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 Injection Orders ErO 1 - Prudhoe Bay Unit; Prudhoe Bay Field, Schrader Bluff Formation Well V-I05 2 2 2 2 2 2 3 3 3 3 No rule 3 3 No rule 2 2 No rule Affected Rules '"Well Integrity "Administrative Failure and Action" Confìnement" 3 4 3 5 3 6 3 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 " Administrative Action" 9 I 02-902 (Rev. 3/94) Publisher/Original Copies: Department Fiscal, Department, Receiving ;\O.FRM STATE OF ALASKA ADVERTISING ORDER ~EE BOTTOM Ft)RINVQICEADORESS 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 th Avenue, Suite 100 Aunchorage,AJ( 99501 907-793-1221 AGENCY CONTACT DATE OF A.a. R o M Jody Colombie September ?7, )004 PHONE PCN (907) 793 -] ?? 1 DATES ADVERTISEMENT REQt:IRED: T o Journal of Commerce 301 Arctic Slope Ave #350 Anchorage, AK 99518 October 3,2004 THE MA TERJAL BETWEEN THE DOUBLE LINES MlJST BE PRINTED IN ITS ENT(RETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: United states of America AFFIDAVIT OF PUBLICATION REMINDER State of SS INVOICE MUST BE IN TRIPLICATE AND MUST REFERENCE THE ADVERTISING ORDER NUMBER. A CERTIFIED COpy OF THIS AFFIDAVIT OF PUBLICATION MUST BE SUBMITTED WITH THE INVOICE. ATTACH PROOF OF PUBLICATION HERE. division. Before me, the undersigned, a notary public this day personally appeared who, being first duly sworn, according to law, says that he/she is the of Published at in said division and state of and that the advertisement, of which the annexed is a true copy, was published in said publication on the day of 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 Public Notices ) ì) lof2 9/29/2004 I: 10 PM Public Notices PJ.ea.se find the attached Notice an~.AttachmeJ:lffortheprop()sed amendrnent of un¢lerground injection orders and the 1?ublic NoticeHappyVa~ley #10. Jody Colombie 20f2 ,...,,,,.. ".. ,.,.,.', " """"""",..",,,..,,..,.,,,,,,,, """""""","" , , ¡ " ,",,' ,'~, ",' ,', " . ,',',',',' ,!tont~nt-Type: appliéâtion/msword ¡MechanIcal Integntyproposal.doc ':,' '"., , ,',' '.,,'.,, ',",' .",',," . ",.,.., ' " ",'," ..,'",',.',"""..,., ",,',',',,', ,,' 'b','., ",6, ',', II','. ..' : ',' . ' ",' , .' .' :Content"'Encodmg:ase "t ~.;;...,,- .'" .,.,..._,,....;.,:.._.......,..., ..-..-. "~~'~.".'''. . .., ._.".~-~;._-,-", .....,..,,- ..'".,,;,.,.... .' .~ I,;'.' ',:' :', :', .:,":,:',",:'::,.:,:'::: . ,'"." ,,' "',' .,.'"""". ,',",,',' .". ,,",..'..' ", ','.",.",'.. , " '"., ,¡ .Collten~¿1.ìyp~.: appIication/tÎls,¥or~ MechanIcal Integrtty of Wells Notlce.doc; ..'. ,'., ',' ",'.',., '.'","""..,.."",'.'"',,,, ',., 'þ" 6 ! Content-Encoding: .' ase 4 . . : Content-Type: applicatiorJil11swot<:i BappyVaUeyl0_HearlngNotlce.doc· Cpntellt--E:n.ç()dln.g:base64 ,.. '''''''''''' """'''''''_ ~_~ ,; .;..... _. ._~ .,.'. ~._,.....:.~.___, ",;...._.. ''''''~_'R_'''''''''''~'; ,,' . '_",~~ ,_. '.,. :' -,,, - .., ' """,,..:",,, -', ,'" """, " "',' ".", ' " _, _."... ".",'"'_,''' .~.... ._"....;.'..... "",.". .,.__,'. ~.,..~__.... '~'''''N._..,··.,.~_..·i~~·'..",. ;._".,.,",---,,"_r--'_'_~ .~_..." ,,,. .. .__.... . .".'..", ~ ""_""'.'._v . 9/29/2004 1: 10 PM Public Notice ) ) Subject: Public Notice From: Jody Colombie <jody_colombie@admin.state.ak.us> J?~te: 'Ye~, ~9 S,e,p2004 ~.2:55:26 -0800 Jº·':.".,I~g;~l@~l~s~åjqt.1Ó1.m·ç~fu ',"".'. Please publish the attached Notice on October 3, 2004. Thank you. Jody Colombie Content-Type: applicationlmsword Mechanical Integrity of Wells Notice.doc Content-Encoding: base64 Content-Type: applicationlmsword 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 /1al/¿:d lð¡íþ~ David McCaleb I 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 Company 408 18th Street Golden, CO 80401-2433 Richard Neahring NRG Associates President PO Box 1655 Colorado Springs, CO 80901 John Levorsen 200 North 3rd Street, #1202 Boise.ID 83702 Kay Munger Munger Oil Information Service, Inc PO Box 45738 Los Angeles, CA 90045-0738 Samuel Van Vactor Economic Insight Inc. 3004 SW First Ave. Portland, OR 97201 Michael Parks Marple's Business Newsletter 117 West Mercer St, Ste 200 Seattle, WA 98119-3960 Mark Wedman Halliburton 6900 Arctic Blvd. Anchorage, AK 99502 Schlumberger Drilling and Measurements 2525 Gambell Street #400 Anchorage, AK 99503 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 Jers - Well Integrity ... ) Subj.ect: ,[Fwd:,' Re':, ,'C·<?í1s.istent, ,Wof(iìl}~...,fº1"'. ~J.~~ti()ll. ,9rde;s","'~"..,vye.~l,,#1t¢g:ri~~.'.'(R~viseº)J F~o~:, John Norrnan".<j0ht1--"nOrman(@aªmil1,state.~.µ~> pate: Fri, 01ûct 200411:09:26~0800 To: Jody J Colombie <jody_colombie@admin.state.ak.us> 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 lTIintz@law.state.ak.us> To:jim regg@admin.state.ak.us CC:dan seamount@admin.state.ak.us, john norrnan@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 <jim 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 - ...J to set apart from your questions). Jim Regg Rob Mintz wrote: 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 redlines on the second document attached. »> James Regg <jim regg(C4admin.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 lof2 10/2/2004 4:07 PM [Fwd: Re: Consistent Wording for Injection G,u.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 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 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 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 John K. Norman <John Norman(ãJadmin.state.us> Commissioner Alaska Oil & Gas Conservation Commission 20f2 10/2/2004 4:07 PM .[Fwd: Re: Consistent Wording for Injection 1rs - Well Integrity... ) Std>ject: [Fwd: ,Re: "ConsistentW ording for In.jéctionOrder$ '~'"Wèl1~tégrity ,,(R.evis~ci)] ~r()m: John Nonnan <john_norman@admì:n~state.ak.,µs> Date: Fri, 01 Oct 2004 11:08:55 -0800 T9;';Jody J Colombie <jody_colombie@admin.state.ak.us> 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 nOffi1an@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 redlines on the second document attached. »> James Regg <jim regg@2admin.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 Ala 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) 'Veil 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 lof2 10/2/20044:07 PM [Fwd: Re: Consistent Wording for Injection Glùers - Well Integrity... - 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 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 oftluid movement"; "fluid escape from disposal zone" Jim Regg John K. Norman <John Norman@admin.state.us> Commissioner Alaska Oil & Gas Cmservation Commission , Content-Type: applicationlmsword Injection Order language - questions.doc Content-Encoding: base64 Content-Type: applicationlmsword Injection Orders language edits. doc Content-Encoding: base64 20f2 10/2/20044:07 PM ) ) 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 orrn 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 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. Standardized Language for Injection Orders Date: August 17, 2004 Author: Jim Regg Demonstration of Tubing/Casing Annulus Mechanical Integritv The mechanical integrity of an injection well must be demonstrated before injection begins, at least once every four years thereafter (except at least ünce every two years in the case of a slurry injection well), and before returnin,g a \:vcll to service followin.Q: afk,~ a workover affecting mechanical integrity, and at lea~;t once every 4 year~; \vhile actively injecting. For slurry injection \yclls, the tubing/casing annulus inust be t~st~d f()t" mechanical integrity every 2 yeB-fS-: Unless an altelllate t11cans is approved by the COlnnlission. Inechanical integrity 111ust be dcrnonstrared by a tubin.Q: pressure test using a +-A:e MI+-surface pressure of must be 1500 psi or 0.25 psi/ft multiplied by the vertical depth, whichever is greater, that m-H-St-show~ stabilizing pressure that doesand lnay not change more than 1 O~ percent during a 30 minute period. ---A:aÿ altenlate illc::ms of dClnonstrating Inechanìcal integrity must be approved by the COlnnlission. 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 othenvise provided in this rule, +lhe tubing, casing and packer of an injection well must dèmml~;trQte Inaintain integrity during operation. \Vhenever any pressure conlffiunication, teakage or lack of injection zone isolation is indicated by injection rate, operating pressure observation, test, survey, log. or other evidence. t+he operator fftHS-t-shaIl immediately notify the Commission and submit a plan of corrective action on a Fonn 10-403 for Commission approval.:. whenever any pressure cOllununication, leakage or lack of injection zone isolation is indicated by injection ratc. operating pressure observation, test, ~:;urvey, or log. The operator shall shut in the well if so directed bv the Commission. The operator shall shut in the \-vell \vithout awaiting a response tÌ"om thê Comlnission if contìnued operation would be unsafe or would threaten contamination of fresh\vaterIf there is no threat to freslnvater, injection tTIay continue until the COl11111ìssion requires the \,vell to be shut in or secured. Until corrective action is successfully cOll1pletcd, Aª 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~ 1e for Injectors]] ) $llbJect: [Fwd: Re: [Fwd: AOGCCProposed WI Language for Injectors]] ~rºm:',.Winton',Aubet1'<winto~aubert@adtnin.state.ak.,us> ~~'~~·~·.,.2ñ:ll!:~,~,..,,()st~9P1-·H~:4~:?f:~P§9q., :" ',' '. ,'.' ','... ',,',.' ",' '.'".",'".'..". ',... ""...',,".,','.".', 1;Ø~:JoqYJ'(391~1!l~~~~'§j,Ç)clý2Ç~~oinbj¢@a4rµirt.$~~t~~~~:t1~*;'i ,':' ' 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@admin.state.ak.us> Organization: State of Alaska To: Winton Aubert <winton aubert@admin.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 *Frorn: * NSU, ADW Well Integrity Engineer *Sent: * Friday, October 15, 2004 10:43 PM *To: * Rossberg, R Steven¡ Engel, Harry R¡ Cismoski, Doug Ai 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 I 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* ** 10f3 10/28/2004 11:09 AM [Fwd: Re: [Fwd: AOGCC Proposed WI Language for Injectors]] returning 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 #6 ) ~~~~E : F !Æ~!Æ~~~~ ) ALASKA OIL AND GAS CONSERVATION COMMISSION TONY KNOWLES, GOVERNOR 333 W. pH AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 January 11, 2002 Mr. Kyle Parker Patton Boggs LLP 1031 West Fourth Avenue, Suite 504 Anchorage, AK 99501 \) \0 \ \ Re: Class II Disposal of Tracer Returns Dear Mr. Parker: You have asked the Commission for confirmation that your client, Marathon Oil Company ("Marathon"), is permitted to dispose of certain radioactive tracer returns in the Kenai Unit 24-7 Class II disposal well. Disposal Injection Order No. 11, issued by the Commission on November 21, 1996, authorizes the operator of the Kenai Unit 24-7 well to inject "Class II oil field fluids" in a specified interval of the well in conformance with 20 AAC 25. The Commission's regulation on underground disposal, 20 AAC 25.252, refers to 40 C.F.R. 144.6(b) for the classification of a Class II well. The latter provision, in turn, describes a Class II well, in relevant part, as a well that injects fluids that are brought to the surface in connection with . . . conventional oil or natural gas production and may be commingled with waste waters from gas plants which are an integral part of production operations, unless those waters are classified as a hazardous waste at the time of injection. 40 C.F.R. 144.3 provides that the term "[h]azardous waste means a hazardous waste as defined in 40 CFR 261.3." The latter regulation excludes the following from the definition of hazardous waste: "Drilling fluids, produced waters, and other wastes associated with the exploration, development, or production of crude oil, natural gas or geothermal energy." See 40 C.F.R. 261.3(a)(I) and 40 C.F.R. 261.4(b)((5). Marathon has employed the fmn ProTechnics to assist in evaluating well completions using ProTechnics' radioactive tracers known as "Zero Wash." You have informed the Commission that the tracers aid in detailing the completion placement and effectiveness of Marathon's hydraulic fracturing and acidizing treatments. You have also informed the Commission that the use and disposal of the radioactive tracers are regulated by the Nuclear Regulatory Commission. Mr. Kyle Parker January 11, 2002 Page 2 of2 ) ) The Commission understands that sands returned to the surface may contain some Zero Wash tracer beads and that it is such sands that Marathon wishes to dispose of in the Kenai Unit 24-7 well. Since this material has been brought to the surface in cormection with conventional oil or gas production operations, it appears to qualify as Class II waste. The second criterion listed in 40 C.F.R. 144.3, concerning classification as hazardous waste, may apply only to waste waters from gas plants. However, even if this criterion applies to the Zero Wash tracer returns, they appear to qualify as non-hazardous wastes under the exclusion for "wastes associated with the exploration, development, or production of crude oil [ or] natural gas." It should be noted that the disposal of unused tracer material is an entirely different matter. Such material would not appear to qualify as a Class II waste. The Commission understands that the only tracer material Marathon proposed to dispose of in the Kenai Unit 24-7 well is material that has actually been used downhole for bona fide well completion purposes. Please note further that the Commission's authorization under Disposal Injection Order No. 11 does not relieve the operator from the responsibility to obtain any additional authorizations that may be required from federal, state, or local authorities. S incerel y, G1'vW1N(/JuÁyC ~~ Cammy (Q)echsli Taylor Chair COT\jjc #5 [r,:':i ~-~ /;' \ ~7 r'r] ."': :! ,.., ; ~ \ C, 1....1 Y'; ", ¡', ; ", , ~ / .r \ ~ : ~ :'-Š-:,. . ;.:'\ n /7 : ~ - , . i ~ ~ . L." ; r,/ ) \ '\ ¡' TONY KNOWLES, GOVERNOR .-. '''; 'I. "., ~ ALASIiA OIL AND GAS CONSERVATION COMMISSION 3001 PORCUPINE DRIVE ANCHORAGE, ALASKA 99501-3192 PHONE: (907) 279-1433 FAX: (907) 276-7542 November 25, 1998 Gary Eller Production Engineer Marathon Oil Company P.O. Box 196168 J\nchorage, ÄJaska 99519-6168 Re: Kenai Gas Field Well 24-7, Request for extension to DIO #11 Dear Mr. Eller: The Commission has reviewed your November 20, 1998, request to approve an extension to Disposal Injection Order ("DIO") #11 which authorizes injection of Class II oilfield waste into the Kenai Unit ("KU") 24-7 well. Under 20 AAC 25.2520), if disposal operations are not begun within 24 months after the approval date, the approval will expire unless the Commission authorizes an extension. The Commission approved DIO #11 on November 20, 1996. Marathon has not yet used the well for disposal injection, but anticipates doing so within the next 24 months. The well has not been physically altered since the Commission granted DIO #11, and Marathon continues to perform yearly mechanical integrity tests (liMiT") on the well. The Commission hereby approves the requested extension to DIO # 11, effective November 21, 1998. A MIT must be performed on KU 24-7 prior to initial disposal and the results forwarded to the Commission. The Commission must also be notified at least 24 hours prior to the MIT to allow a representative to witness the test. David W. Johnst' Chairman #4 Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: The application of Marathon Oil Company for an order allowing the underground dispoal of class II fluids by injection into Kenai Unit well 24-7 in the Kenai Gas Field. Marathon Oil Company by letter dated September 16, 1996 has requested the Ala\ska Oil And Gas Conservation Commission to issue an order in conformance with 20 AAC 25.252. The order would authorize the disposal of class II fluids by injection into the Sterling Formation in well KU 24-7 at the Kenai Gas Field on the Kenai Penn insula in Southcentral Alaska. A person who may be harmed if the requested order is issued may file a written protest prior to 4:00 PM November 11, 1 996 with the Alaska Oil and Gas Conservation Commission, 3001 Porcupine Drive, Anchorage, Alaska 99501, and request a hearing on the matter. If the protest is timely filed and raises a substantial and material issue crucial to the Commission's determination, a hearing on the matter will be held at the above address at 9:00 am on November 29, 1.996 in conformance with 20 AAC 25.540. If a hearing is to be held, interested parties may confirm this by calling the Commission's office, (907) 279-1433 after November 11, 1996. If no protest is filed, the Commission will consider the issuance of the order without a hearing. 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 FI~~_~,.a~. 27~-·~-~3 n"o la, t, r~n fv~be~, '6',1,996. ~ ~----~ =- --~::);) ~-_.,;:b ...~ David W. Jphnston, C irman Alaska Oil a'rì~~s C~~ ervation Commission Published October 26, 1 996 A002714015 ADN #3 ) Alaska F )n Domestic I (oduction ~) Marathon I ,MARATHON Oil Company P.O. Box 196168 Anchorage, AK 99519-6168 Telephone 907/561-5311 November 20, 1998 Ms. Wendy Mahan Alaska Oil & Gas Conservation Commission 3001 Porcupine Drive Anchorage, AK 99501-3192 Reference: Kenai Gas Field, Well KU 24-7 Dear Ms Mahan: On November 21, 1996, the AOGCC approved Disposal Injection Order (010) No. 11 which authorized the disposal of Class II oilfield waste in well KU 24-7 in the Kenai Gas Field. Since that time however, Marathon has not disposed of any fluids into well KU 24-7. Instead, well KU 24-7 has served as a "backup" disposal well to well KU 11-17, awaiting the day when we no longer can inject into well KU 11-17. Alaska Administrative Code 20 MC 25.252(j) states that injection approval will expire 24 months after the approval date if disposal operations have not begun, unless application for extension if approved by the commission. Approval for well KU 24-7 is due to expire, and Marathon hereby requests a 24-month extension of the injection permit for this well. Marathon considers it likely that we will cease injection into well KU 11-17 and begin injection into KU 24-7 sometime in the next 24 months. Physically, well KU 24-7 is in the same condition as it was when 010 No. 11 was approved in November 1996. A successful MIT test was performed on well KU 24-7 in June 1998. Another MIT will be conducted on well KU 24-7 immediately prior to the start of disposal operations there. Sin:s~ J. G ler Prod t n Engineer ~~ _1ft" . ~~~ ~~ OPS98\JGE11201 Enclosure A subsidiary of USX Corporation Environmentally aware for the long run. OPERATOR: STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Mechanical Integrity Test Marathon FIELD I UNIT I PAD: 6/24/1998 DATE: Kenai Gas Field WD-1 81-0107 COMMENTS: KU11-17 81-0176 COMMENTS: KU 24-7 82 0016 COMMENTS: COMMENTS: COMMENTS: PW Packer Fluid 2, 1 74 2,174 1500 min 4 112 544 P 7'~ 29#, N-80 L~"";>: Drill {505 1500 min Cuttings P SIW {505 9518,47#, N-80 3112 1126 Annulus pressure dropped to 1200 psi after test and observed with no change for thirly minutes. 0 0 0 0 1.600 1.600 1,600 1.600 480 480 480 480 1,650 1.650 1,650 1,650 P 1000 P Drill 4313 1500 min Cuttings P SIW 4313 9518, 47#, N-80 1078 Annulus pressure dropped to 1200 psi after test and observed with no change for thirly minutes. 930 1500 min o 1500 min o ..~ TBG. INJ. FLUID CODES F = FRESH WATER INJ. G = GAS INJ. S = SALT WATER INJ. N = NOT INJECTING TEST TYPE: M = ANNULUS MONITORING P = STD ANNULUS PRESSURE TEST R = INTERNAL RAD. TRACER SURVEY A = TEMPERATURE ANOMALY TEST D = DIFFERENTIAL TEMPERATURE TEST ANNULAR FLUID: P.P.G. DIESEL GL YCOL SALTWATER 8.8 DRILLING MUD OTHER WELL TEST: Initial 4 - Year Workover Other Yearly Distribution: orig - Well File c - Operator c - Database c - Trip Rpt File c - Inspector Grad. 0.00 0.00 0.46 0.00 0.00 OPERATOR REP SIGNATURE: Pete Iverson I AOGCC REP SIGNATURE: Lou Grimaldi JQ9JFXFEXLS (Rev 9/17196) #2 October 14, 1996 Mr. Crandall, Sorry for the delay in getting you this information. I was out of town 9/29-10/13 due to an illness in the family. RtCt\\]tt) ()(,\ "1 '99G . rl\\ßit'O{\ COm\" &. Ga~ COOS. ~\a.~\(a 0\\ 1!\.nchoralJ0 Michael J. Stover J Alaska h. ..Jlon Domestic Production 'M.) Marathon I ,MARATHON Oil Company P.O. Box 196168 Anchorage, AK 99519-6168 Telephone 907/561-5311 October 14, 1996 Alaska Oil & Gas Conservation Commission Attention: Mr. Bob Crandall 3001 Porcupine Drive Anchorage, AK 99501-3192 RE: Addendum to Application for Underground Injection Kenai Gas Field, KU 24-7 Dear Mr. Crandall: As per your verbal request of September 25, 1996 the following information is provided in relation to the previously submitted application for disposal to Well KU 24-7. Well KU 33-7, while more than 1/4 mile away from Well KU 24-7, will be included in the Section 20 AAC 25.252(h) (Mechanical Integrity of Other Wells Within 1/4 mile Radius) of the application for disposal to Well KU 24-7 as requested. Following is a description of the production status, mechanical condition and cement bond of Well KU 33-7. Production Status KU 33-7 was dually completed in March, 1986 with the shortstring to Sterling Pool 6 and the longstring to the Upper Beluga. The shortstring is presently active while the longstring has been shut-in since 1986. Cumulative production from the shortstring is 5.64 BCF, while cumulative production from the longstring is only 0.053 BCF. The small amount of production from the longstring is due to water productive intervals. Mechanical Condition There are no known mechanical problems with KU 33-7. The last bottom hole pressure measurement occurred in 1994. This measurement indicated the short and long strings to be isolated from one another. Attached is a copy of the wellbore diagram. Cement BondinQ Adequate cement bonding is present in the Sterling interval of KU 33-7 to protect fresh water aquifers. The top of the Sterling interval (A8) is at 4018' md in KU 33-7. The initial cement bond log dated 12/24/85 indicated good cement bonding from 4530' md to total depth. Between 4018' md and 4530' md the cement bond was of poor quality. Several remedial cement squeezes were performed between 1/17/86 and 1/26/86 with squeeze perforations at depths of 4087-4089' md, 4343-4345' md and 4364-4366' md. RECE\VEO OCT 1 '7 '996 comm\ss\on 0" ~ Gas Cons. 'ê\as\(a i Ancl'\()fage Environmentally aware for the long run. A subsidiary of USX Corporation ) Addendum to Application for Underground Injection Kenai Gas Field, KU 24-7 October 14, 1996 Page 2 ) A second bond log run on 1/25/86 indicated adequate cement isolation across the following intervals at or near the top of the Sterling horizon: 3995-4001' md, 4016-4020' md, 4034-4050' md and 4070-4080' md. A final cement squeeze of the interval 4087-4089' md was peñormed following the cement bond log. Following this cement squeeze all the cement squeeze peñorations were successfully tested to 1700 psi. Attached is a copy of the 1/25/86 cement bond log over the mentioned intervals. 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FR TO ø---- ----- ----- -----,- ....' .......~...................~ 4 00 T T3 (JL SEe J ~ .. .' i ~ . JI ~ i ~ ,11" 5 L ~ I :. !' . } r.. r 't ~ 1 "'. . I I , t ,.i ¡ ~ I ·1 I" , ... ~ '.\ .,~I, I.. -11/. : ~,I t J I . r i~: ; .;.¿ i·iJ~ ' . ':~f'~'~ , I I , .. ' + ' . , , ~ f J ¡ ; f , ., J ' ¡! '~f~' ,," , i ~ ¡' - ~.'. ~ _._- --.·:~.V";· ~J~ . I . . \ {¡; , ~ ( ~ ;._ -¡;.. I ~ , r· :.. ,."1 " '~ ,., . .,.. :.. T ~_ ~ . '};L'~<'.Jf -þ .... :.~ .'1' r t ,,",·7'4 .. 'ill í ,:\ft f~if.~ . ..: H¡~ r ~.: ,.~tf, . 1 "c. . 1 '. ,i . I i .~_J- ",.1 ~ -~. .... I ~ .. ~-~. .:~ .,- ~ I· -. ." ----- -. 7:71=~=:-' . - . --;.. ~.i :. -.. .-...W~~! ~,I. ~ . f . _'-'. . 1 I ¡ ~ ' .. .. ~ · ciI.~ 04:' .~wf. ' f I.',,'.J ;I,. - -~. _- t ~ "IP. ~.. ¡~ ¿ _- é~,¥,"" ~~. \: tÞ ··:--::--:#·'t" .~- -. ...~ ~~I~.,~~~, ~ " :, .i:;<.t~" , 1 ~~ I . ._~ - f't:r, l~ -'_~-;:;'3 L~' .:( j'J~ -~- ,>.:..¡ '\ ~' \ l . ~. . -~-~~·:~¡:t~1 " .. ;';;'-- '- ~ ' . , , ~ ~...-"-'.:,~.'~~,¡,~.....:r..~._.~.:¡,.¿:':f: ~ ~ . 'IS ~_-.:.-' .' .~,c:'::::~ '.' ~ . ~. · ~ ~....L._:~.'~~,~~~.~. '~4¡.~. ..'~.~~ - >tf(ljrtib 1 fiff '~~~;'>':f~ Jff~>:-~/~ " tÞ " - I 200 200 S'SPECTRUM J2C .. ..... .... ............. ......... ..... ........ ........ ....... I . 150 (I AMPLITUDE-MV 50 100 J2: IS 5274.0 0072-31 266041 ~": REPEAT SECTION 12:0Q AQA9.0 2860.1 0072-31 400 TT3 '(uSEC) ... o 0001-J4 3 . . o 00.ol-IA 2 200 200 5 SPECTRUM J20 I.............. ... ...... ....... .... .... ...... ........ ......... J50, o AMPLITUDE-"V 50 WELL KBU 33-7 CASING '& ABANDONMENT DETAIL . I. Elevation of Kelly Bushing at 0 ~ ;' II. Cameron Dual 3-1/2- Tubing Hanger at-:25' . Iii. 20·, 94+, H-40 Casing at 178' IV. 13-3/8-, 61#,1<-55 Casing at 2025' V. Otis Model "WD- Packer at 5,462' VI. 5-, 18+, N-80 Scab Liner Between Packers VII. Otis Model "WD- Packer at 5,5S6' VIII. E. T.D. at 5,298' wI HOWCO Cmt. Retainer at 5,930' IX. Top of Cmt. and 9-5/8- Float Collar at 6,443' X. 9-5/8-, 47+, N-80 Casing at 6,529' . TUBING DETAIL -. LONG STRING: 2-3/8", 4.6#, N-80 ... 1. 3-1/2- x 2-3/S- x-over at 26' 2. Otis "X A- Sliding Sleeve w/CLR a-t 4~06' 3. 2-3/8- x 3-1/2- x-over at 4917' ",- 4. Otis Model "RDH- Dual Packer at .~921~ (C/L) . . - . - ...~ <Þ_ 5. 3-1/2 x 2-3/8 x-over at4925'_ 6. Otis "XA - Sliding Sleeve w/CLR at 4 ~ 6 5' , , . .--..- 7. Blast Joints From 4984 to 5.1Q3· _ 8. Otis "XA- Sliding Sleeve wiCLR at-_5166': )d ~E D 9. 2-3/S- x 2-7/8- x-over at 5202' . A 10. Straight Slot Locator ~ t 5202' 11. Otis Model "WD- Perm. Packer wi 4 - _~ore & Connection at 5.203' (C/L of Packer at .5205'1- 12. Otis Seal Bore Extension at 5.20 ß' . . 13. Two X-Overs From 4- to 2~71 8- to 2-3/8! at 5213' 14. Otis "X- Nipple at 5.225' 15. Otis WL Re-Entry Guide at 5239" I II 1 ~ ) \ ) A III. Ivj 2 XA 4* XA B XN F 'G 6 XA STEHLING ZN~ 17 SM 1 0-':' 11~ 12 13' , :-~ ,/ 14 x 15 ............ u. BELUGA _ vZ Z SQZ'D ~ VI DE VIIZ, Z u. BELUGA _ ;-"- T :i: VIII -""\~"'''~I. ,,-:-..... ~.-.t:.t .,-",. - I X 9·::';~~:~:·~:. ~~¿?}j~~~¡( X A:oQ:.· :~.!>:.q()..:()".r(:;. ..... " ..: ~ n...C'I 0.;,.( 0.· _'-I_r"'\ REV. DATE ~_F_M___5/.~7/86 R.A.W.6/17/86 -~~~. -- SHORT STRING: 2-3/89, 4.6_:/1:, N-BO A. 3-112- x 2-3/8- x-over at 26' . B. Otis "XA - Sliding Sleeve w/CLR at 4905' , -- C. 2-3/8- x 3-1/2- x-over at 4917 N. ~ SHARMA D. Otis Model "RDH- Dual Packer at 4 ~ 2 1 ' Ok... E. 3-1/2- x 2-3/8- x-over at 4926'· -- JUN 1 7 1986 I F. Otis "XN- Nipple at 4.937' , G. Bottom of Otis Mule Shoe at 4939' PERFORATION RECORD DA TE INTERVAL CONDITION 12/17/85 5,978'-5,990' Squeezed 12/17i85 5,940'-5,963' r Squeezed 12/22/85 5,847'-5,826' Upper Beluga Sd. Production 12/23/85 5,847'-5,826' Reperforate 12/24/85 5,798'-5,822' Upper Beluga Sd. Production 5,757'-5,772' Upper Beluga Sd. Production 5,696'-5,718' Upper Beluga Sd. Production 12/24/85 5,676'-5,683' Upper Beluga Sd. Production 5,543' -5,554' Squeezed 5,4&2'-5,501" Squeezed 5,3~8'-5,406' Upper Beluga Sd. Production 5,314'-5,324' Upper Beluga Sd~ Productlo~.. 5,006'-5,095' Sterling Zone Production (4,364'-4,366', 4,343'-4,345~ 4,087'-4,089') - Squeezed WELL KBU 33-7 'WELL~- SCHEMATIC DRAWN B.A. W. CKD. APP'D. SCALE NPNF DATE 4/14/86 þ UNION OIL COMPANY OF CALIFORNIA ANCHORAGE I ALASKA #1 )\ Alaska R )n Domestic \', ,roduction ,M MARATHON , 4 Marathon Oil Company P.O. Box 196168 Anchorage, AK 99519-6168 Telephone 907/561-5311 September 16, 1996 CERTIFIED MAIL Alaska Oil & Gas Conservation Commission 3001 Porcupine Drive Anchorage, AK 99501-3192 RE: Application for Underground Injection Kenai Gas Field, KU 24-7 Ladies and Gentlemen: If you need additional kz:\hp:\Jand\aogc916a.wpd Enclosure cc: Mr. Jim Segura - Salamatof Native Association, hic. - CERTIFIED MAIL Mr. Gerald Booth - Cook Inlet Region, Inc. - CERTIFIED MAIL RECEIVED SEP 1 9 1996 A1aska Oil & Gas Cons. commission AnchGr2.ge A subsidiary of USX Corporation Environmentally aware for the long run. SECTION Letter of Application for Injection (20 MC 25.252(a)) Location/Plat Maps (20 MC 25.252(c) (1)) Operator and Surface Owners (20 MC 25.252(c)(2)) Affidavit of Notice to Surface Owners and Operators (20 MC 25.252(c)(3)) Geological/Reservoir Information Concerning Injection Zone (20 MC 25.252(c)(4)) Well Log for KU 24-7 (20 MC 25.252(c)(5)) Well Casing Information (20 MC 25.252(c)(6)) Injection Fluid (20 MC 25.252(c)(7)) Average/Maximum Injection Pressures (20 MC 25.252(c)(8)) Fracture Information (20 MC 25.252(c)(9)) Formation Information (20 MC 25.252(c)(1 0)) Aquifer Exemption (20 MC 25.252(c)(11)) Mechanical Integrity (20 MC 25.252( d) through (g)) Mechanical Integrity of Other Wells within % Mile Radius (20 MC 25.252(h)) Attachments Attachment A Attachment 8 Attachment C Attachment D Attachment E Attachlllent F Attachment G )) \ ), Alaska 011 and Gas Conservation Con. mission Application for Underground Injection: Kenai Gas Field, KU 24-7 Marathon Oil Company, Alaska Region September 13, 1996 CONTENTS PAGE 1 1 1 2 2 2 2 3 4 5 5 5 5 5 Location/Plat Maps Affidavit of Notice to Surface Owners and Operators Geological and Completion Information Well Casing Diagram Fracture Information Formation Fluid Aquifer Exemption R£C£.\\J£\) S (? ,9 '<j<jG "" \5S\on CQm", &. Gas conS. T:\\asK3. 0\\ p.ncrlûír.ge ) ) Alaska OÎI and Gas Conservation Commission Application for Underground Injection: Kenai Gas Field, KU 24-7 Letter of Application for Injection (20 AAC 25.252(a» Marathon Oil Company is requesting an injection permit to authorize the conversion of Kenai Gas Field KU 24-7, a watered out, shut-in gas well, from a producer to a Class II disposal well. KU 24-7 was last completed in May 1982. The intended primary use of the converted well will be for injection of produced fluids, ground and slurried drill muds and cuttings, and other workover fluids from existing wells at Kenai Gas Field and Cannery Loop. Also, similar materials from Marathon's exploration efforts on the Kenai Peninsula. These materials will be processed prior to injection to limit, to the extent possible, plugging and fracturing in the injection zone. The proposed grinding and injection system is shown in Figure 1. The proposed injection will be into the Sterling A 10, A 11 and B2 intervals, at a true vertical depth interval of 3726 to 3952 feet. These intervals produced 34 BCF of gas prior to being shut-in. Geologic review indicates the zones to be water bearing at this time. Location/Plat Maps (20 AAC 25.252(c)(1» Location information is enclosed as Attachment A. Figure A-1 shows the regional location of the Kenai Gas Field, which is located on the Kenai Peninsula. KU 24-7 is located on Production Pad 41-18. The physical location of the subject well, KU 24-7, is indicated on Figure A-2. Figure A-3 shows a graphic % mile radius from KU 24-7 at the A-8 horizon. As indicated on Figure A-3, no other wells are within a % mile radius. The % mile radius is shown on the A8 structure map rather than the A10, A11 or B2 since at the A8 horizon the KU 24-7 well bore is closest to any offset well. This was done since it is expected any injection into the lower A 10, A 11 or B2 intervals will eventually create fracture growth into the A8 interval. A structure map of the Sterling A-8 is included as Figure A-4. Structure maps of the A 10, A 11 and B2 are conformable to the A8. Attached as Figure A-5 is a copy of the well log for KU 24-7 with the intended disposal intervals indicated. Operator and Suñace Owners (20 AAC 25.252(c)(2» The interested parties within the % mile radius surrounding KU 24-7 are as follows: o Operator Marathon Oil Company 3201 C Street, Suite 800 P.O. Box 196168 Anchorage, Alaska 99519-6168 1 t.(t\\jt.~ R £¡ t.? '\ 9 \Cjtj . ~ i.\SS\C~ ~ C,Q~ C,C~"'· .\ &. t)'3.S nf\e \f'(}. G\\ 1\ \"Ir''ì\()~ \...'::) }\\'3.st'- 1""\ ,,,, ) Alaska Oil and Gas Conservation Commission Application for Underground Injection: Kenai Gas Field, KU 24-7 o Surface/Subsurface Owners: Mr. Jim Segura, President Salamatof Native Association, Inc. P. O. Box 2682 Kenai, AK 99611 Mr. Gerald G. Booth Cook Inlet Region, Inc. (CIRI) 2525 C Street, Suite 500 P. O. Box 93330 Anchorage, AK 99509-3330 Affidavit of Notice to Suñace Owners and Operators (20 AAC 25.252(c)(3» An affidavit is enclosed as Attachment B. Geological/Reservoir Information Concerning Injection Zone (20 AAC 25.252(c)(4» A description of the geologic zone where the proposed injection will occur is enclosed as Attachment C. Also, included in Attachment C is pertinent completion information for KU 24-7. Well logs for KU 24-7 (20 AAC 25.252(c)(5» Logs for KU 24-7 have previously been submitted to the Alaska Oil and Gas Conservation Commission in accordance with [20 MC 25.071 (a) and (b). Refer to Attachment A, Figure A-5 for a log section of the Sterling intervals in KU 24-7. The targeted injection interval is noted on the log. Well Casing Information (20 AAC 25.252(c)(6» KU 24-7 is cased as shown in Attachment D. A wellbore schematic for the proposed injection zone is shown. The casing is cemented in accordance with 20 MC 25.252(b) and will be tested prior to injection in accordance with 20 MC 25.030(g). Integrity of the 3% inch tubing will be tested by injecting fluid into the tubing at approximately 5000 psig, and monitoring the annulus pressure for 30 minutes. 2 Alaska Oil and Gas conservate\l~ Commission Application for Underground Injection: Kenai Gas Field, KU 24-7 Injection Fluid (20 AAC 25.252(c)(7» Information concerning the proposed materials for injection follows: The wastes will come, directly or indirectly, from Cook Inlet offshore oil and gas platforms as well as from onshore production facilities owned or operated by Marathon and/or other companies. The waste will be wastes generated from E&P operations. Typical fluids will include, but not exclusively limited to, produced fluid, drilling fluid and completion fluids, rig wash, drilling mud and cuttings, and pipe scale. The following list of anticipated wastes to be disposed of in the injection well is not all- inclusive, Marathon may inject other wastes determined by U.S. EPA to be RCRA E&P Exempt Wastes per 53 FR 25446 July 6, 1988 and "Crude Oil and Natural Gas Exploration and Production Wastes: Exemption From RCRA Subtitle C Regulation", May 1995, EPA 530-K-95-003. o One is pipe scale. The pipe scale will likely come from the tubulars and pipes once used in oil or gas production, and possibly exploration operations. That is, the tubulars and pipes that had been located at the production or exploration sites prior to transportation beginning. The pipe scale, some of. which may contain naturally occurring radioactive materials ("NORM"), has been "brought to the surface" in conjunction with conventional oil and gas production. As you know, NORM waste occurs as scale or sediment in production tubing and fittings. The AOGCC has written to oil companies that it considers NORM waste to be a Class II substance and eligible for injection into a Class II disposal well. o Given the space limitations on the offshore platforms, those piping and equipment (including tubulars) will most likely be taken from production sites to locations onshore outside of production area to have their pipe scale removed and temporarily stored in drums prior to disposal in injection well. We anticipate the pipe scale coming from two types of storage locations: One source will be new pipe scale and sludges with NORM. The sources of the sludges with NORM will consist primarily of treatment vessels for produced water "brought to the surface" in which the NORM sludges settle out. These treatment vessels will be located on the offshore production platforms and at the onshore production facilities prior to tre LACT meter where ownership and change of custody of the product occurs. . A second source providing pipe scale that originally has been "brought to the surface" are the service facilities (located off production sites) that store tubulars and pipes, such as Arctic Pipe Inspections near Kenai. The tubulars and pipes are stored on storage racks. The pipe scale (as well as old, non-hazardous, pipe dope used to seal pipe joints) may fall out of the ends and fall to the soil and gravel; other pipe scale from these locations result from pipe cleanings. This pipe scale and pipe dope, some mixed with soil, would be put in drums and disposed in this injection well. 3 ) Alaska Oil and Gas ConservatÎon Commission Application for Underground Injection: Kenai Gas Field, KU 24-7 o Of course, dry pipe scale (and other dry E&P Exempt Waste such as soil), in order to be injected downhole, must have water added to the waste to create a slurry. The sources of this water will include produced water, fresh water from local wells, and/or rainwater found within containment dikes for E&P Exempt materials at production facilities. o Besides pipe scale, other wastes to be disposed in the injection well includes rinsate from rinsing drums used to store E&P Exempt Wastes. o Another E&P Exempt Waste would be gas separation wastes, including wastes which may have come into contact with glycol-based dehydration compounds, arising from operations necessary in the oil and gas production process. Dehydration vessels, such as contactor towers, have a potential for glycol carryover. o Equipment wash water which will be fresh wash water from local wells. o Other wastes to be disposed in the injection well are mixtures of E&P Exempt Waste and non-hazardous solid waste or media, such as soil and organic materials which have been contaminated by spills of crude oil or natural gas liquids, produced fluids, production waste, pipe scale with NORM or solvent (not listed @ 40 CFR 261 Subpart D) used to clean pipe dope from the threads, or contaminated rainwater from secondary containment sites used for temporary storage of such E&P Exempt Wastes. o Stormwater in contact with secondary containment areas for E&P Exempt Waste storage areas and production equipment, onshore reserve pits, and production pads. o Injection Rates: 2-5 BPM Daily Average: 1000 barrels per day (drilling operations) Daily Maximum: Instantaneous rate of 5 barrels per minute, or 7200 barrels per day Average/Maximum Injection Pressures (20 AAC 25.252(c)(8)) The average injection pressure is expected to be 1600 psi surface during mud and cutting injection. The maximum surface injection pressure will be limited to the working pressure of ¿:h c3sing h03d, which is 5000 psi. working,pressure"s during in,J.'ection operations is not expected to approach maximum allowable. ;;> Nö"rI? ~ ;t-I a...,Ù ~ S <--UfL ìzj ~J ì""^- fV ess €A- iff! ~~ 1 r; "-'-< ~+.&J Þ"j pu.~ lPoor{c..~ PV()5.suY~ '( 5&--&'1 ptf D-tr ~\\jt.\) lìMØ-C;;Ú)j"df. PU&-\A.-f) l^bl.ANf~~ WDV[Cf$ Rt.Ct ru -) IJ -- ~~~ () V Cl ~ 4 V'(! (5' 3 OC>D f s-i IJ-'"""; fL pc> pC'S (í) ì <;) . s\OO V cQ~\\"'\S f e') J þ ,[) ... C' I, cons. S"'e f Ú/' Þ-fC5D PSt. rJ2~---;tAr t.e JiÞv€-Y- ~Q\\&~c~~r\Qí~.Qe f( ( 6 ! <1 b ~\~S ~ t' v 4 :r: ff~fÇ;J (?.ç, Alaska Oil and Gas conservatit,)commiSSion Application for Underground Injection: Kenai Gas Field, KU 24-7 ) Fracture Information (20 AAC 25.252(c)(9» An evaluation of the proposed injection program and its potential for initiating or propagating fractures is enclosed as Attachment E. Based on that evaluation, Marathon believes that no freshwater strata is at risk of being affected by the proposed injection operations. The model predicted fracture height growth of 11 Q9feet and frac;tureJengthºf1?§ºf~~t after injection of 55,000 bbls. of fluid. This amount othªi9.otgrº~h,VV()lJldr(3$lJltinth(3Jraçture reaching atrue vertical depth of3450 feet which is 21.50 feet þ(3IQwth(3exempt(3d depth. The fracture simulation presented in Attachment E illustrates that freshwater confining strata will remain intact. Formation Information (20 AAC 25. 252(c)(10» The injection fluid for disposal will be predominantly cuttings and drill muds from new and existing Marathon operated wells during rig work operations. The source of the produced formation water will be from the Sterling, Beluga and/or Tyonek Sands. Laboratory analysis of water samples from the Sterling interval at KGF are attached (Attachment F). Aquifer Exemption (20 AAC 25.252(c)(11» The aquifer penetrated by KU 24-7 is exempted under 40 CFR 147(b)(1 )(iii) below a vertical depth of 1300 feet from the surface. A copy of the citation is enclosed as Attachment G. The exempt zone is described as extending one-quarter mile beyond the limits of the Kenai Gas Field. Mechanical Integrity (20 AAC 25.252( d) through (g» A mechanical integrity test will be performed at KU 24-7 as specified in 20 AAC 25.412 prior to injection. The casing/tubing annulus pressure will then be monitored on a daily basis as a routine field operating procedure, and reported on Form 10-406. Mechanical Integrity of Other Wells Within Y4 Mile Radius (20 AAC 25.252(h» No other wells are within a 'X mile radius of KU 24-7. 5 ) ') Makeup Water ~ Mud and Cuttings From Well Solids .. Control Equipment Solids Mud back to rig pumps . 7'\ Grinding Mill Ä Á Solids> 50 mesh returned to ball mill Slurry ~ / Sizing shaker with 50 mesh screen tf , Injection Pump ('\ "- ~ Injection Well ...-- 1300' Exempt Zone - ~ ~ FIGURE 1 : SCHEMATIC DRAWING OF ~J(t \\fE\) St.? "\ 9 \99G 1"'\1'\~$\O\\ <: C\J\Í\\,·I~," . (;9(; Con.,· ~, s"~ O\\! . ·~,\"..,r""':) t\\ð: ,~"'" p,\ 1~: IIY l.;:, CUTTINGS GRINDING AND INJECTION SYSTEM HM4171 øøø --3920 1. SQ0. 0Be KENRI GRS FIELD R8 STRUCTURE KU 2q-7 DISPOSRL CONVERSION """2ØØØ.ØØ FT/IN I""" !3-MRR-96 I I ) ATTACHMENT A \ -) ,- ALASKA PENINSULA ~ ~ COOK INLET "() '. o qtfþ ..FigureA-1 ~ KENAI / :Cannery Loop Unit e~ KENAI PENINSULA A N , o 1 0 20 30 40 I I I I I MILES o 20 40 60 I I I I KILOMETERS MARATHON OPERATIONS IN UPPER COOK INLET #A MARATHON ~ 4 X-27J,I77.9J .14 V-2.3S6.76O.25 \ \ \ 1 \lEu. "A" X-274,P46.0 V-2,35~,941.7 TOP e" PIPE EI..-66.1S· TOP 2" PIPE EI..-Ii6.02" ) + - ^ \ \ K.U. 33-7 ~5~~~1I \ V-2,356,0S7.11 \ \ \ \ \..-- PAD UMllS 9~ o.L.:--J --------------- ;8''':' o. K,U. 24-7 WEU. HOUSE X-275,057,33 V-2.356.01J.e9 ------------------------ì + e ~~RYEU. \ \ \ \ %.8 \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ " I \ \ \ '- III , ,II, ') ,I 1- 2641.51' S 89'7'13" E .+ \ ~ _-I \ \ WAS1[ \ STORAGE \ TANKS \ \ .J ~~~~O'O' ~ BLDG. \ ~ ~ PIPE ~ GUARD - - /''"\ /'íN..ECTlON \ \ r WEJJ.. '6.0' A K.U. 11-1' \ K.U. 41-18 ~8 ~'t7r.~84 \ ~5~:;7 ~. 0 +;;~~C:J~7 \ V-2,JM,962.oo WELl CEU.AA sw ~ EI...-87.SIO· \ \ \ \ \ \ \ ) .,/ .,/ .,/ \ .,/.,/ \ .,/.,/ \ .,/.,/ v.,/ ./ GRINDING " IN,ECTlON SYS1EM \ \ p~~~ + I \ \ \ I \ \ \ I \ \ \ ª ~ ~ Ii Ñ ~ ::: Ell 'C: x-27$.Jøa.e V-2,355, 758. 7 TOP e' CASING EL-e7.42' TOP 2' PIPE EL.-67.J2" MONITORING El. ) ..T. X-275,1n9.24 "") ".~ V-2,356.727.J' V-2.J~,200 V-2,JS6,OOO i """\\" · i....... OF" AI.. 'f , I~ ~~............."'l&. I, ~ ~~.. ...4,.:....~ ~ =1*....49I1:1J1{ ....*~ ã:::::;::::::::::::::::::::::::.:::::§ ~ \ "'~ 8C01T 1/..1-/1:: ~I ~"'" __5 ....-,: I¡'~........·-;, .: ".' :""'Qt,aØ- ,.... : k\\",," V-2.355.BOO McLANE CONSULTING GROUP SOU)()'ItjA, ALASKA we:jglll (807) 2aJ-4218 ~Œ SUIM'I': 11EI!: 3OQ( !4Q.: R~:i<t ~ "RO.£CT NO.: 8531:18 _Ie NO.: 85P04"8 ;cAlL, 1"-acr !)RA* BY: PCO -, ENoH.£R' Þ1'flf(OIIN.. - Piiõi:T 5IIIUC1. ~SS EOI.N. !!£CT. INSTIII!'". Mai. rt&--;;-ê.ï IN DA'It 4- tillIE.S. ::::::::::::¡J 31 -:.:-:<.:-~< :-:«-::~:- ::::::::::~:: 1~~ :-:-:-:-:- >-:- \~ ~ ~I^' :'§)) 12 IFGF'ND 32 33 34 T5N KENAI T4N GAS FIELD 6 5 4 / 7 8 9 13 18 i Location 41-18 16 17 SCAlL 1" - 1 Milo VICINITY MAP .¡. GLO!BLM monument found this survey. o Replaced 1/2" rebar os noted FIGURE A-2 AHTIaPA'IED DRAINAGE PArn:RN ~ 1 ) /28/IIPtAR I" DA'Tr 'flY APP (M) . ..rathon 011 Company ~ Found survey monument of record. -<J Power Pole * Ught Pole o Existing well c-.hrlstmas tree MonItor Well Ci1> Þ<1 Valve -0 Piping underground Ð Electrical switch box A Septic Vent ~ Areo of expected pooling ---) Expected drainage flow ARRRFVlA T1ON~ O.H.E. a.H. P /W E.M. OVERHEAD ELECTRIC OVERHEAD PIPE WAY ELECTRIC METER 1) Elevations at the top of pipe for monitoring wells were token with cover off or open. 2) Reference datum Is mean sea level- 0.00' for elevations shown. 3) All bearing8 are grid unless noted otherwise. 4) Basis of Coordinates is U.S.C. & C.S. Trl Station AUDRY In A.S.P. Zone 4. Average convergence of points shown: -01'04'58" 5) T.B.M. elav.a: 67.90' SW comer top well cellar KU 11-17 6) AUDRY location: Lot.: 60·30'50.559"N Long.: 151'16·37....4S·W X-269,866.75 Y-2,382,045.42 SCAl.£ p'IIN....... DA'n' ,,.,...... ptIC".. - OATI' 1'-&0" ~... ~.TI' r. III.. -'"'CHnATI' F1LENo. 41-1e ~ "00 DISC S'I'ST 12-0' ~UHoJ~8 ...8 )(-2:75,136.84 !". V-2.355.8J8.ð5 0. ./' .,/ .,/ .,/ (' \ \ \ KENAI GAS FIELD PAD AS-BUILT SURVEY AIalka R8910n KBNAI GAS FIELD PAD 41-18 S~o 00 o 00 DW; NO. ~T NO REI 0001 1 0 ') ATTACHMENT B ) ) Affidavit of Notice to Surface Owners and Operators (20 AAC 25.252{c) (3)) State of Alaska Third Judicial District I, J. Brock Riddle (print), declare and affirm as follows: 1. I am employed by Marathon Oil Company, Alaska Region. I have personal knowledge of the matters set forth in this affidavit. 2. On September 16 , 1996, the following surface owners and operators of the Cannery Loop Field were provided with a copy of a permit application to the Alaska Oil and Gas Conservation Commission, dated September 13 , 1996, for conversion of KU Well 24-7 to a Class II injection well: o Operators Marathon Oil Company P. O. Box 196168 3201 C Street, Suite 800 Anchorage, Alaska 99519-0168 o Surface/Subsurface Owners Mr. Jim Segura, President Salamatof Native Association, Inc. P. O. Box 2682 Kenai, AK 99611 Mr. Gerald G. Booth Cook Inlet Region, Inc. (CIRI) 2525 C Street, Suite 500 P. O. Box 93330 Anchorage, AK 99509-3330 DATED at Anchorage, Alaska this 12t~~¡ber ,1996. ~Ck Riddle, Alaska Region Landman (signature) Subscribed and affirmed before me at Anchorage, Alaska on \.. <)-ej1!-e/J¡6e,,- /0 ' 1996. c/.<!~A i jp~ Ño~ry Public in and for the State of Alaska My commission expires: Oc..~6er I?I /7'18' Ii ATTACHMENT C GEOLOGIC INFORMATION KU 24-7 Disposal Candidate, Kenai Gas Field The Sterling A10, A11, and B2 sand packages between 4410 and 4708 feet MD (Figure A-5) are the proposed injection intervals in the KU 24-7 well. The Sterling Formation currently contains the shallowest producing intervals in the field including the injection intervals. The Sterling consists of thick sandy meandering stream bar deposits alternating with well preserved bog and floodplain coals and shales. As seen in the KU 24-7 well, a thick (>40') shaley interval occurs immediately above the B2 sand, and a shale, silt, and coaly sequence more than 100 feet thick occurs above the A 10 sand. Coal and shale intervals such as these within the Sterling have historically been effective barriers to vertical communication in analogous disposal wells. The current perforations of the Sterling B2 sand will be utilized for the purpose of primary injection, with an expected fracture growth into the A 11 and A 10 intervals. These intervals have a total net sand thickness of 140 feet with effective porosities between 25-28%, permeabilities between 90-1000 feet MD, and are depleted to 350 psi. The thick shales above and below the B2 sand should control fracture growth within the expected limits as shown by a fracture simulation study. Also the nearest well bore is over 1500 feet away at this horizon, which is beyond the estimated induced fracture radius. Because of the significant depths and safe history of Sterling injection in sands 4000+ feet below the Pleistocene aquifers of the area, and the numerous coal and shaley intervals within the Sterling Formation, no problems of disposal fluid containment or fracture growth into freshwater zones can be foreseen within the expected injection volumes. ) J ATTACHMENT D } COMPLETION INFORMATION KU 24-7 WEll, KENAI GAS FIELD, ALASKA Criteria for choosing a disposal well included: · Using a well bore which has no future potential for production, · Determining that the well has sufficient disposal capacity into one or both of the already permitted and approved Sterling sands. · Checking strata maps to ensure substantial vertical confinement. · looking at Cement Bond logs to ensure mechanical integrity, and · Adequate tubing size. Well KU 24-7 fits these criteria and is located on KGF Pad 41-18. This Kenai gas well has no future potential as a producer. The short string died in June of 1993, and the long string in July 1994. The long string injection zone in well KU 24-7 is 12 feet of the B2 sand (4696- 4708' MD). Short string injection potential includes 80 feet of the A1 0 sand (4410-4490' MD) and 35 feet of A11 sand (4525-4560' MD). Shown on the log section (Figure A-5) are the proposed injection intervals. The aquifer exemption limit is 1300 feet for the Kenai Gas Field, so the proposed interval of injection is well below the specified limits. There are numerous laterally continuous shale layers above the sands and solid cement bond below 4050 feet MD in the casing annulus directly above the zone. The dual 3%" strings are of adequate size, and the site is not easily accessible to the public. The surface location is within the Kenai Gas Field Unit, and the working interest is divided among Marathon and Chevron. land ownership includes Cook Inlet Region, Inc. (CIRI) and Salamatof, Inc. The Bureau of land Management (BlM) manages the federal lease. All applicable agencies, working interest owners, and land owners will receive a copy of this application. 4 XA 6,7 ¿¿i~xx)< \8 ¿j B-l t 9cy Send o Cut Thg. II 11I- IN ¿ 2~ Á-iO= Send A-1' = Send _ v . 8-4 ~ Sene So::) ci "'7 . I V1 J ",' . ...-' "'- WELL KU 24-7 WELL SCHEMATIC CASING &. ABANDONMENT DETAIL I. Rotary Table 0 0.0' II. Cameron 3- 1/2" Dual Tbg Hanger 0 27.68' III. 20" 94/1 H-40 Drive Pipe 0 178' _ N. 13-3/6" 61 # K-55 Casing 0 2003' V. E.T.D. C 487S' TOF 0 4848'(30' of Tbg.} VI. 9-5/8" 43.5# & 471 N-80 Csg to 5801' ~ 1XA ~ TUBING DETAIL XA A LONG STRING: 3-1/2" 9.2# fJ-aD TUBING , . otis "XA" Sliding Sleeve 0 4273.53' 2. Baker Model "A-51t Dual Packer 0 4312.79' ~ ~ 8 3. Blast Joints From 4385.29' to 4581.52' _ 4. Otis "XA" Sliding steeve 0 4639.47' ~ C 5. Locator Sub 0 4677.12' 6. Top of 13.72' Seat Assembly 0 4678.00' 7. Model "5-2" Prod. Poeker 0 4679' 8. Otis "X" Nipple 0 4691.72' 9. 4694' Cut Tbg on 7 /26/88 SHORT STRING: 3-1/2" 9.2# N-80 TUBING :5 A. Otis "XAn Sliding Sleeve 0 4267.57' 8. Baker Model "A-5" Dual Pecker 0 4314.93' C. Otis "X" Nipple C 4325.84-' DATE 5/27/82 5/28/82 5/29/82 -4 5/30/82 5/30/82 7/88 PERFORATION RECORD INTERVAL C0tf..P070N 4890'-4905' 8-4 Sd. Sqz'd 7 /88 4905'-4925' 8-4 Sd. Sqz'd 7/BB 4410'-+4-90' A-10 Sd. Production 4525'-4560' A-11 Sd Proauction 4410'-4490' Reperforate A- 10 Sd. 4696-4708' 8-1. Sd. Production ::::. Checked by: NKS Drawn: 1 0-' 9-88 SAW ) ATTACHMENT E ) ) KU-24-{ Fracture Growth Simulation and M'onitoring Kenai Gas Field Simulation Marathon's Petroleum Technology Center has constructed a three-dimensional grid oriented hydraulic fracture model of the strata at Kenai Gas Field. The model was constructed using lithology, stress variations, pore pressure, and rock elastic properties for the Kenai Gas Field. The purpose of the model was to simulate fracture growth as a result of drill cuttings injection above fracture pressure. An average injection rate of 5 barrels per minute (BPM) was used in the simulation. A fluid viscosity of 50 cps was used, assuming the mud and cuttings would be diluted with water. Particle size of 50 micron, cutting size of 50 mesh and solids content of 20% were utilized in the simulation. Figures F-1 and F-2 indicate the calculated surface and bottom hole pressures, and the fracture geometry as a function of volume pumped. The model was used to simulate disposal of up to 55,500 bbls. of fluids. Injection of this total amount would cause fracture height growth of 1100 feet. This height growth would result in reaching a true vertical depth of approximately 3450 feet which is 2150 feet below the exempted depth of 1300 feet. Fracture length may reach 1250 feet as shown on Figure F-2. Referring to Figure A-5 (Attachment A), fracture height growth is limited and does not approach the protective fresh water confining beds. The induced fractures will be propped with an impermeable drill cutting and mud slurry. Once the induced fracture is closed, it will be non-conductive. Monitoring A continuous record of surface pressure, pump rate and fluid density will be recorded during all injection activities to KU 24-7. This data will then be compared to model predicted data to determine the status of fracture height growth and extension. This data comparison will provide a means to prevent any contamination of the exempted aquifer zone above 1300 feet. Temperature and tracer surveys will also be utilized to monitor fracture height growth and extension; however, these surveys are limited to monitoring within a radius of only 2 feet of the wellbore and provide a minimum value of fracture height. A disposal project similar the one proposed at Well KU 24-7 was undertaken at Well KU 14-4 between August, 1992 and September, 1993. In this case actual measured data compared very well to model predicted data via the GOPHER simulator. The basic premise of this monitoring approach is the fracture propagation through sand zones should cause abrupt pressure drops or declining injection pressure, whereas propagation though shales should cause height growth restriction and increasing injection pressure. In the case of Well KU 14-4 it was possible to correlate these abrupt pressure changes to various sands and shales as the fracture height increased, thus, providing a method of fracture height monitoring. 4,000 3,500 3,000 2,500 ë; 'u) Q. f 2,000 :J en en CD ... a.. 1,500 1,000 KU 24-7 DISPOSAL CANDIDATE (Psurf. and Pbtm. VS. Vol. Injected) . . . . , . - ~ -1' -. ~~~-ç o o o 0 ~ B U ~~~ f - ß ' ~J'- 500 1 0,000 20,000 h:\excel\kenai\sterling\KU24750 Chart 3 7/22/96 .. . . . - ~ ;. --.... n , m£ ~ .. --... ~ 00 0 - ~ --. -L.røm ] L --- ......- - 30,000 Volume Inj, (bbls) I. BHP 0 THP I o ~ ~ 40,000 FIGURE F-1 11 ___ ~ ItJ -/ "()f ---- ____ - I 50,000 60,000 - ...: :t:. ~ ~ C) .¡; ::I: - ~ ~ C) c II) ..J (,) co ~ u. 1 0,000 1 ,000 100 10 10 h:\excel\kenai\sterling\KU24760 Chart 2 7/19/96 KU 24-7 DISPOSAL CANDIDATE (Frac Length/Height vs. Vol. Injected) o 100 I I I " "I" IIlIlITuU I 1 ,000 1 0,000 Volume Inj. (bbls) 1- Frac Length -0- Frac Height I FIGURE F-2 - ~/ 100,000 ) ATTACHMENT F \ (Na nlu4 In aboft rnph. iDcludOl N.. E. ILI1d U) NOTE:: UB/l =WilliiTlmI Pft lit~ l.hv'1 = UüU¡Tam Þ: uin.1.ntl p.u litw Iodhu:a dùonlM ~ur.ùoat=by DuD1ap.. HawUorM eak\Jlatioft frOal «>-"'~DWtI i j '!' m1+!1+t:.t:P~it:!Ji-¡m,~+i..~~' . - it t ;L;-·+a3~'"'11'rt:::::.1..-H-H-t""1" ·~·"1~~:r ~, , 'I f 1-1i~·i-~.¡·~m·'~-t",,~,"""...............,-··1 , . ...~.CJ- '·i::tt-!+U1-·· ii''':i. ..,..~_... .+ I It". . '_ j. T"~I I, 11.t:~:!-t~.cttj+ ~f.a. _J........ _~"I-:"· -,...+- ' .-, + ":"""+-I::::r::;.:._.:....!-.:- , . ',.....,Tti·:±g;f,· :-~........-,WT,.~q.,..........." '",,-:..'-,-!--~ Cl -- -, ,..¡U, ~~-r--1Th ·]tlf-J:.~:~:':''-4~ ~ ... _........XL. +.¡_..~~.J-+_~'" ~ ..~-EF.Eiti:t~~.~;·~ -................;....;.;..¡..,.........-1+ " " tI::!:::.r:t:t~~;...~, -·i-t.......i--¡T,..-ï+~J:--'-'~·~ :, IMt¡+t~T-Ftf-r(..!:~~.i-U~ ~iiT-;~~~:Af8T;$~ ...J.. ,-lWJJ.L-¡.LlW-.l...W-,. ,........,...¡_....t..... " .. :.JJ::e-......._;..4-;-; ,.J...i:r.r·-:-~·'-r-(-''-'--_:+'-'"~----:·M-''''''·'·''' -:- ...._~1"'":--,... 1i C 0 3 -TILb.... ~ttt-;--....... ~"+t±..........- -'-'-._....+..---.."._-~ ~.~:7J11j W¿i17b±~~~-q:~W - =+'~l r'~, ª*.' ........_.~-'...,.:.~"1'"'~, .....-..-,T, C1,...~-._,~....~ . ~~1TIT.!lL: -i:rtt~~~::~~~~t:¢~::~ 1,,' ¡t.·L'~ I ¡",...~--t-.--............ ~-:~-_-..:.... ...¡..;....... -_ -...~_.....-,_.......~..{ -;--, ¡....--:-...-r.:--:-~.. ......-.-r, '....: S 0 -t-"'t"r.t+;-- I . t ' , : ' , '::-ti'- .....·~-!->-"--'-:ï·--~- ~ =t+1-tt+\++-\~.±f=?E;'::.:s:~·~.. ~':t1Ïì~:~="" .-i-i-I--+"........-t:.......... . . I , ~----.-,......._....,-........¡.~ , ·1 , t . I t I .--....~t-_~. ... ~---......---.- - ~ I I , I_t---....-~~~~~~I_·....~r~ \- .; i ~ ~ : ; ~ ¡ ~ ';: ..:.-{ . - . _~-+-.~..t:..r--=~: ~~ir-, ~-"'H" L!.""rl.¡~_.k..!-.........,... CO, -h",. ~........:-·...~¡i.:t¡:w:;::1:t~,~þ:-:-:-.-:-.~ ~~~". .......;::::;:~. I I . ..~.L..L._.-..-:~.......~~"'__~ -tftt1-,: ¡ ; ~ ! : !~=-~~~~~..:::=:~ ~ í I t .¡,,,',, ·1" ' .. .. I ; ~ "",' I (' . ! " . ---~'- t' ~ ' : t ¡ : ; ~ i Z~ ~ t : : I 1 ~ ~ ~ : ~ ¡ ~ : : I ; ~"7 (.., : ,1T1l ¡ I ! t t III Ill: II ~ ! : tr ! . : I : ~ ; t 1 : ¡ ; . . : ! ~ ; . . : Fe Mg Ca Na **' - t,;r II EM, ; í,t1t-lli, ¡.., ¡'1-4+f+t~t..:...~µ 'æ', T ++-L - H-.- r +- k ~....+.~' ", ,:t-::: 0-++ - ,'. .. hi- .- '.....~!-n+t¡~ f++--t-++ -r-;T .. H'~ +. -+..... I , ¡ I ' I-r.-'¡"'¡', I:: B$~~7-Frnm, ....., 'l:I1ÿ;¡rr¡-;-;, I,' i " I , :~,:,~U, L~ t± +~ ct "~-t"t~:':"~,-~,,",~~ I ~ ~-+~ -~ +-- Na ~~_'"L''' -,..,...,-~-- ..,;'1.'.. fl" f¡,......~ Cl .. . . I" ¡ 'M'--+~' ....-o-r. ~.~._..............i=t! '.......... .. ~ "H --:;:. ~-..:.r=+P. T.:p·,,;,,::¡;,.. .7'-+ +;_#11 ~--:ttl .~¡-+-... ..,....--:....- __k -............. -....-..:::::::t: :n .1: i:J:tcr .....~.. -.;..~ .+ "i-rr~~T..J·:tËf _~r . '-" . ::¡-...~::=::::±_ ':¡.L;.; ,. t!:.¡':-.::.::~-:~...:..- .ff.;'r ..,"th·..""1.....,..-,_I-"-......._, ,~c -;-.......~.._~_....-....... HCO ~ :t:tt . . :¡¡:;'''''''''--4-Mo- ~ -r-þo.........~_oa ~~~--......... 3 Ca ·1~ ·1...¡'1H1"'t W ....:::¡:;:::......,; .......,...,....,.-..,( I t"t.... :::r::::;................. 1 0t t ~~t::--+t-~::- ;=:::t:~··.,.f.. ::+::r..._+-+-,-~~ "r1'- '}r:'~"" I' ¡ -_..··f"t:::t.';7.'-M::t:_·....·.......ï"""'"tT" :: ¡..~t :t¡:::':¡:f~7~~:-' .::::::::::;t'~;-~:-: ': :" E' ¡ rp-l . ¡ LLt_W I ! I , ~II-":,/.: I t f " . I I I' I I '1~ ~ ~. r¡i~·.¡..tt:t::.: ~___ __,.~ .;;_~:+::.::-~::::::~ M ~ ~r· '[" ~-;l.J.............-¡.-j:--J._~.........L-l. " -f- . . ., . , , ,............... SO.4 b -r~~; 1'!_~~-;~' .-.......;.:_:::: ~ r:::::::;:::;+'::':::;::'-=:·~+--r- ....J..¡-, \..., ,...........~t...........~.......... \ \'.' I '" ¡ --~......_~ .:tt· Lt··t1 ++-+-'-1·1-1 ~ '-1-:-~:tq.:"~. - ...4-........--~- :iiJ"f r~.~Œ~'::.l¡:,::-~=1 S~-+-:-~¡ ;:-~.:.~'~.:.. -t4=d.-I.¡"~f.J ----....¡:-'".....--...-....\ -;-..;-r......... . fir',' o-+~ ~~ Fe :+~~~\:~tç~~:~~~~Ë~,·:.·.;~;,·s=;~~~~~ CO 3 !T:"r'+~ ~+"""$~~~, ~..~.,................., ' I~"'-~""" . .........,...¡.., +............., m,.....,-~ "1'"1"-:-;-'" ~"""'~--r1---~----' .............-..-....'............., - :t'" ·t*+--t-r.;.t, -t..~.:~~.:-~;-;--:--;:-~:-::.:..:..:-~ . ..~~-;.-~~...~j..+.¡.-.~I I \ II. I L~'~ ....¡:t. rt-~........ rr;-7T..-....,-~-.:=:::+-~.;..:f:* :t-Ht (II t ¡ l ~ l ¡ ¡ t t l ! II, j 1 ;Ti1Ti ! ( ~ ~ 1 ! t t ¡ ! 1 :" 1 1 10 WATER ANALYSIS PATTERN Scale MEQ per Unit o1&m-~~ -~~ 2.40 Specific rc:¡~~till.1CO @ 68 op.: Obaervød .... Caku1.tú~ .... 47.9~ Total A.niora . . . . 10.00 AnJ~ Su1.b1te Chloride CMbonate Bicarbonate Hydroxide E:Æl 0.47- ~7 & 51 .ær.L! ?o 1~=10 o 610 Sample ~bovc ùcscribed 2,40 Total w:=oJved eolidc, mVl N.Cl equiv~oot, q/l - - O*"C'd pH ..... 2759 . . . . . 47.93 . . . . Totnl CaticulI m~ 45.05 1.23 O.~5 1.15 Calcium . . · · Ua(l11e2ium Iron . . . - mrr/l 1036 50 9 14 CnttoM Sodium PotMJÌ1.1m . . . . . . . REMARII::3 ¡. CONCLUSIONS! Cloudy brown water, clear filtrate. WHtS fI-c:.. (rO~u. 3 ~ I.(). 2.1- c. (T"orou 5."l. t r:.) ,4:0 3:{ - J I (rbOt.. c.. C I S.Jl,",~) !"~~~..t=; I"-I'M:I 01J, ,"t".f\JI'.,.r.;r;:it. ¡a.J.,I~ 'nt15 . .s;<I.,.,....,...!-'~·~·'CI1UL."!) 'r.Ë A l-" ""<Tt5~:E r~dr Ii ,~ 7'::.!~J(·:)1 'r:¡ I'! ~:~Ti"'.~ f;:""....... ,,"\~ "C'tS:"o.,)Q '~J ·i.,)'f."l·(. '1'~f-.1'. 'fT" .s~\OUt.O FIif.. t~t)I~ C-I'\~D. LAD NO, 0169-? DATR March 9, '97? LOCATION FORMA'fION INTERVAT. SAUPLE FROf! Alaska OPERATO}'? WELL UO- FIELD COUNTY STATR UNION OIL CQ'¡iPANY OF CALIr. 34-31 C, $"\")'D Kenai Gas WATER ANALYSIS REPORT ¿~ I ALAS:(A, I~~C. 2603 ARCTIC BLVO Cr~Eh/jjCAL & JEOLOGiCAL LABOFtA·rOR~...,B TELEPHONE (907) 279-4014 P..O. BOX 4 ·1276 ANCHORAGE, ALASKA 99509 Æ(~\~~ /\Íl~~ V"~..~~~.. OF ATTACHMENT G § 147.2 administered program is promulgated in those'instances where the state has fa Bed to submit a program for approv- al or where the submitted program does not meet the minimum statutory and regulatory requirements. (c) In the case of State programs ap- proved by EPA pursuant to section 1422 of the SDW A, each State subpart describes the major elements of such rrograms, including Si;ate statutes and regulations, statement of Legal Au- thority, Memorandum of Agreement, n.nd Program Description. State stat- utes and regulations that contain st::.ndards, requirements, and proce- dures applicable to owners or opera- tors have been incorporated by refer- ence pursuant to regulations of the 0' - ~ of the Federal Register. Materi- al ,orporated by reference is avail- able for inspection in the appropriate EP A Regional Office, in EP A Head- quarters, and at the Office of the Fed- eral Register Information Center, Room 8301, 1100 L Street, NW, Wash- ington, DC 20408. Other State statutes and regulations containing standards and procedures that constitute ele- ments of the State program but do not apply directly to owners or operators have been listed but have not been in- corporated by reference. (d) In the case of State programs promulgated under section 1422 that are to be administered by EP A, the State sUbpart makes applicable the provisions of Parts 124, 144, and 146, and provides additional requirements pertinent to the specific State pro- gram. ( 'R egulatory provisions incorporat- C{ I reference (in the case of ap- pr0ve'd State programs) or promulgat- ed by EP A (in the case of EP A-admin- istered programs), and all permit con- ditions or permit denials issued pursu- ant to such regulations, are enforcea- ble by the Administrator pursuant to section 1423 of the SDWA. (f) The information requirements lo- cated in the following sections have been cleared by the Office of Nlanage- ment and Budget: Sections 147.104, 147.304, 147.754, 147.904, 147.1154, 147.1354, 147.1454, 147.1654, 147.1954, and 147.2154. The OMB clearance number is No. 2040-0042. 40 CFR Ch. I (7-1-90 Edition) § 147.2 Severability of provisions. The provisions in this part and the various applications thereof are dis- tinct and severable. If any provision of this part or the application thereof to any person or circumstances is held in- valid, such invalidity shall not affect other provisions or application of such provision to other persons or circum- stances which can be given effect with- out the invalid provision or applica- tion. Subpart B-Alabama § 147.50 State·administered program- Class II wells. The UIC program for Class II wells in the State of Alabama, except those on Indian lands, is the program admin- istered by the State Oil and Gas Board of Alabama, approved by EP A pursu- ant to section 1425 of the SDW A. Notice of this approval was published in the FEDERAL REGISTER on August 2, 1982 (47 FR 33268); the effective date of this program is August 2, 1982. This program consists of the fOllowing ele- ments, as submitted to EPA in the State's program application: (a) Incorporation by reference. The requirements set forth in the State statutes and regulations cited in this paragraph are hereby incorporated by reference Rnd made a part of the ap- plicable UIC program under the SDWA for the State of Alabama. This incorporation by reference was ap- proved by the Director of the Federal Register on June 25, 1984. (1) Code of Alabama 1975, sections 9-17-1 through 9-17-110 (1980 and Supp.1983); (2) State Oil and Gas Board of Ala- bama, on and Gas Report 1 (supple- mented) 0981>, General Order Pre- scribing Rules and Regulations Gov- erning the Conservation of Oil and Gas in Alabama (Order No. 76-100) as amended by Board Order No. 82-96 (May 14, 1982) amending Rule E-4). (b) The Memorandum of Agreement between EPA Region IV and the Ala- bama on and Gas Board, signed by the EP A Regional Administrator on June 15, 1982. (c) Statement of legal authority. "State Oil and Gas Board has Author- 780 il Environmental Protection Agency i~Y to Carry Out Underground Injec- tIOn Control Program Relating to Class II Wens as Described in Federal Safe Drinking Water Act-Opinion by Assistant Attorney General " May 28 1982. " (d) The Program Description and any other materials submitted as part of the application or as supplements thereto. (49 FR 20197, May 11, 1984, as amended at 53 FR 43086, Oct. 25, 1988J § 147.51 State-administered program- Class I, III, IV, and V wells. The UIC program for Class I, III, IV and V wells in the State of Alabama except those on Indian lands, is th~ program administered by the Alabama Department of Environmental Man- agement, approved by EPA pursuant to section 1422 of the SDWA. Notice of this approvaJ was PUblished in the FEDERAL REGISTER on August 25, 1983 (48 FR 38640); the effective date of this program Is August 25, 1983. This program consists of the fOllowing ele- ments, as submitted to EPA in the State's program application: (a) Incorporation by reference. The requirements set forth in the State statutes and regulations cited in this paragraph are hereby incorporated by reference and made a part of the ap- plicable UIC program under the ~DW A for the State of Alabama. This Incorporation by reference was ap- proved by the Director of the Federal Register on Jl.ne 25, 1984. (1) Alabama Water Pollution Con- t~ol Act, Code ot Alabama 1975, sec- tions 22-22-1 through 22-22-14 (1980 and SuPp. 1983); . (2) Regulations, Policies and Proce- dures of the Alabama Water Improve- ment Commission, Title I (Regula- tions) (Rev. December 1980), as amended May 17, 1982, to add Chapt.er 9, Underground Injection Control Reg- ulations <effective June 10, 1982), as amended April 6, 1983 <effective May 11, 1983). (b) The Memorandum of Agreement between EPA Region IV and the Ala- bama Department of Environment Management, signed by the EPA Re- gional Administrator on May 24, 1983. (c) Statement of legal authority (1) "Water Pollution-Public HeaÍth- § 147.100 State has Authority to Carry Out Un- derground Injection Control Program Described in Federal Safe Drinking Water Act-Opinion by Legal Counsel for the Water Improvement Commis- sion," June 25, 1982; (2) Letter from Attorney, Alabama Wat.er Improvement Commission to ReglOnal Administrator, EPA Region IV, "Re: A WIC Response to Phillip Tate's (U.S. EPA, Washington) Com- ments on A WIC's Final Application for Class I, III, IV, and V UIC Pro- gram," September 21, 1982; . (3) Letter from Alabama Chief As- sIstant Attorney General to Regional Counsel, EP A Region IV, "Re: Status of Independent Legal Counsel in Ala- b.am,a Water Improvement Comr Slon s Underground Injection Cont"-,, , Program," September 14, 1982. (d) The Program Description and any other materials submitted as part of the application or as supplements thereto. [49 FR 20197, May 11, 1984, as amended at 53 FR 43086, Oct. 25, 1988] § 147.60 EPA-administered Indian lands. (a) Contents. TheUIC program for aU classes of wells on Indian lands in Alabama is a~inistered by EP A. This prog~am COnsISts of the UIC program reqUIrements of 40 CPR Parts 124, 144, 146 and any additional require- m~nts set forth in the remainder of thIS sUbpart. Injection wen owners and operators ~nd EP A shall comply with these reqUIrements. (b) Effective date. The effective dE. of the UIC program for Indian Jandš" in Alabama is November 25, 1988. (53 FR 43086, Oct. 25, 1988J program_ Subpart C-A'aska § 147.100 State-administered program_ Class II wells. The UIC program for Class II wells in the State of Alaska, other than thos~ on Indian lands, is the program admmistered by the Alaska Oil and Gas Conservation Commission ap- proved by EP A pursuant to Section 1425 of the SDWA. Notice of this ap- proval was PUblished in the FEDERAL 781 § 147.101 REGISTER (May 6, 1986]; the effective date of this program is June 19, 1986. This program consists of the following elements, as submitted to EPA in the State's program application. (a) Incorporation by reference. The requirements set forth in the State statutes and regulations cited in this paragraph are hereby incorporated by reference and made a part of the ap- plicable UIC program under the SDW A for the State of Alaska. This incorporation by reference was ap- proved by the Director of the FEDERAL REGISTER effective June 19, 1986. (1) Alaska Statutes, Alaska Oil and Gas Conservation Act, Title 31, §§ 31.05.005 through 31.30.010 <1979 and Cum. Supp. 1984); (2) Alaska Statutes, Administrative Procedures Act, Title 44, § § 44,132.010 through 44.62.650 (1984); (3) Alaska Administrative Code, Alaska Oil and Gas Conservation Com- mission, 20 AAC 25.005 through 20 AAC 25.570 (SUpp. 1986). <b) The Memorandum of Agreement between EPA Region 10, and the Alaska Oil and Gas Conservation Com- mission, signed by the EP A Regional Administrator on January 29, 1986. (c) statement of Legal Authority. Statement from the Attorney General of the State of Alaska, signed by the Assistant Attorney General on Decem- ber 10, 1985. (d) The Program Description and any other materials submitted as part of the original application or as sup- plements thereto. [51 FR 16684, May 6, 1986] § 147.101 EPA-administered program. (a) Contents. The UIC program in the State of Alaska for Classes I, III, IV and V wells, and for all classes of wells on Indian lands, is administered by EP A. This program consists of the UIC program requirements of 40 CFR Parts 124, 144, and 146, and additional requirements set forth in the remain- der of this subpart. Injection wells owners and operators and EP A shall complY with these requirements. (b) Effective dates. The effective date of the VIe program for all non- Class II wells in Alaska and for all wells on Indian lands, is June 25, 1984. 40 CFR Ch. I (1-1-90 Edition) [52 FR 1 'l68O, May 11, 1987] § 147.162 Aquifer exemptions. (a) This section identifies any aquifers or their portions exempted in accordance with §§ 144.7(b) and 146.4 of this chapter at the time of program promulgation. EP A may in the future exempt other aquifers or portions, ac- cording to applicable procedures, with- out codifying such exemptions in this section. An updated list of exemptions will be maintained in the Regional office. (b) The following aquifers are ex- empted in accordance with the provi- sions of §§ 144.7(b) and 146.4 of this chapter for Class II injection activities only: (1) The portions of aquifers in the Kenai Peninsula, greater than the in- dicated depths below the ground sur- face, and described by a % mile area beyond and lying directly below the following oil and gas producing fields: (i) Swanson River Field-1700 feet. (ii) Beaver Creek Field-1650 feet. (liD Kenai Gas Field-1300 feet. (2) The portion of aquifers beneath Cook Inlet described by a If4 mile area beyond and lying directly below the fonowing oil and gas producing fields: (I) Granite Point. (U) McArthur River Field. (iii) Middle Ground Shoal Field. (iv) Trading Bay Field. (3) The portions of aquifers on the North Slope described by a 14 mile area beyond and lying directly below the Kuparuk River Unit oil and gas producing field. § 147.103 Existing Class I, II (except en· hanced recovery and hydrocarbon stor· age) and III wells authorized by rule. Maximum injection pressure. The owner or operator shall limit injection pressure to the lesser 01: (a) A value which wiU not exceed the operating requirements of § 144.28(f)(3) (1) or <ii> as applicable; or (b) A value for well head pressure calculated by using the following for- mula: Pm=(o.'133-0.433 Sg)d where Pm=injection pressure at the well head in pounds per square inch 782 Environmental Protection Age~cy Sg=specJfJc gravity of inject fluId <unftless) d=injection depth in feet. '.i _ .~ If 147.104 Existing Class II enhanced re- covery and hydrocarbon storage wells authorized by rule. (a) Maximum injection pressure. (1) To meet the operating requirements of § 144.28(f}(3)(ii) (A) and (B) of this chapter, the owner or operator: (D Shall use an injection pressure no greater than the pressure established by the Regional Administrator for the field or formation in which the wen is located. The Regional Administrator shall establish maximum injection pressures after notice, opportunity for comment, and opportunity for a public hearing, according to the provisions of Part 124, Subpart A of this chapter and will inform ownus and operator~ in writing of the applicable maximum pressure; or (ii) May inject at pressures greater than those specified in paragraph (a)(1)(i) of this section for the field or formation in which he is operating provided he submits a request in writ- ing to the Regional Administrator, and demonstrates to the satisfaction of the Regional Administrator that such in- jection pressure will not violate the re- quirement of § 144.28(f)(3)0i) (A) and (B). The Regional Administrator may grant such a request after notice op- portunity for comment, and opp¿rtu- nity for a public hearing, according to the provisions of Part 124, Subpart A of this chapter. (2) Prior to such time as the Region- al Administrator establishes rules for maximum injection pressure based on data provided pursuant to paragraph (a)(2)(ii) of this section the owner or operator shall: . (1) Limit injection pressure to a value which will not exceed the oper- ating requirements of § 144.28(f)(3)(ii)· and ' (li) Submit data acceptable to the Regional Administrator which defines the fracture pressure of the formation h:t which Injection is taking place. A smgle test may be submitted on behalf of two or more operators conducting operations in the same formation, if the Regional Administrator approves such submissIon. The data shall be submItted to the Regional Administra- §147.151 tor within 1 year of the effective date of this program. (b) Cas.ing and cementing. Where t~e RegIOnal Administrator deter- mmes. tJ:1at the owner or operator of an eXlstmg enhanced recovery or hy- droca~bon storage well may not be in comphance with the requirements of §§ 144.28(e) and 146.22, the owner or operator shall comply with paragraphs (b) (1) th.rough (4) of this section, when reqUIred by the Regional Admin- istrator: (1) Protect USDWs by: . (i) Ce~enting surface casing by re- clrculatmg the cement to the surface from a point 50 feet below the lower- most USDW; or . (iO Isolating all USDWs by ph~ cement between the outermost cas=ng and the well bore; and (2) Isolate any injection zones by placing sufficient cement to fill the calculated space between the casing and the well bore to a point 250 feet above the injection zone; and (3) Use cement: (i) Of sufficient quantity and quality to withstand the maximwn operating pressure; . (iD Which is resistant to deteriora- tIOn from formation and injection fluids; and (Hi) In a quànUty no less than 1200/. of the calculated volume necessary t~ cement off a zone. (4) The Regional Administrator may specify other requirements in addition to or .in lieu of the requirements ~At forth ill paragraphs (b) (1) througt as needed to protect USDWs. "--'. Subpart D-Arizona § 147.150 State-administered [Reserved] program. § 147.151 EPA-administered program. <a). Contents. The UIC program that applIes to all injection activities in Ari- zona. including those on Indian lands is administered by EPA. The UIC pro~ gram for Navajo lands consists of the requirements contained in Subpart HHH of this Part. The program for all injection activity except that on Navajo Indian land consists of the UIe program requirements of 40 CFR 7R~ ~ ~~ ~ '»\I~V-) ~a..-~ ) F (" r · \! r M" Þ ofS'ó"(A. J f "i)uvIÛ ¡U 1 MC~~ <>1 I/fÆfl T:t:: ,4-o1'q CL , <! l? jqG fJ(W 0 r ì9 95 . . 0'1 & Ga~ Cons. Comrmss1on KENAI GAS FIELD DISPOSAL PROJECTSA\aska I Å~~hCWga The following is a discussion concerning the modeling and actual performance of the mud/cutting disposal projects conducted in KU 14-4, 11-17, and the proposed disposal project at KU 24-7. Numerical model studies of the past injection in KU 14-4 were conducted throughout the life of the project. The model studies were not well defined because of lack of accurate rock property and stress data in the large interval affected by the injection. A post-mortem analysis of the project was conducted after the injected slurry established communication with the casing annulus above the cement top. This analysis revealed that a diagnostic plot of ISIP (instantaneous shut-in pressure) versus cumulative injected volume could be used to detect major instances of height growth. In principal, major breaks, or drops in ISIP correspond to growth of a vertical fracture through bounding shales. This analysis is subjective and can be difficult to substantiate without other direct observation of fracture height. In the KU 14-4 project the arrival of fluid at the cement top provided this additional data. While the analysis is subjective it has provided consistent results in both the KU 14- 4 and 11-17 projects, thus, improving the degree of confidence in the results. The attached plot of pressure versus cumulative volume injected can be associated with well logs from the disposal well to correlate major pressure events with substantial shales. The upper line represents the calculated bottomhole net pressure from ISIP data in the KU 14-4 project. This project accomplished the disposal of about 460,000 bbls of slurry into a 40-50' perforated interval in the 81-82 sands at a SSTVD (sub-sea true vertical depth) of 4100'. The first pressure break (labeled 1 on the plot) may correspond to the parting of the 50' thick shale immediately overlying the B 1 sand at a SSTVD of 4040' (top of shale). Pressure break (2) corresponds to the shale top at 3940' TVD. Similarly, breaks 3-7 correspond to the sequence of shale tops at 3880' 3770', 3680' 3580', and 3490'. After parting through the top shale, the fracture grows rapidly through the lower stress sand until it communicates with the wellbore at the casing cement top at about 3450' TVD. A similar analysis has been performed using the KU11-17 ISIP data, which is plotted as the lower curve in the plot. There are only four major interpreted events indicated on this plot. They are labeled A-D to differentiate them from the numbers used for the KU 14-4 data. The first break (A) corresponds to the shale top overlying the injection perfs at a SSTVD of 3940'. Event (B) corresponds to the small sand break in the shale at 3810' TVD. The next major break is interpreted to correspond to the shale top at 3540' TVD. The last major break may be related to the small sand at 3340' TVD. Based on this analysis an additional volume of 20,000-50,000 barrels could be injected into KU 11-17 before parting the shale top at 3180' TVD (the next major break). The two wells for which data are available indicate a similar rate of height growth with cumulative volume injected. Both yield about 650 feet of upward height growth for approximately 500,000 barrels of total injection. Because of lithostatic stress gradients and gravity segregation of injected solids, significant downward fracture growth is not J , anticipated. Overall rate of height growth is related to several factors including degree of pressure depletion in the Sterling sands, thickness of overlying shales, and overall sand/shale ratio in the overlying sediments. It appears that wells intersecting a more shale- rich sequence will allow for more injection capacity. This is consistent with North Sea operations, where massive shale intervals are typically selected for disposal. Sand, or reservoir quality, does not substantially affect slurry placement, other than to somewhat increase overall fluid loss. Modeling of the KU 11-17 disposal treatment was only carried out to a relatively small fraction of the total injected volume. The modeling predicted a total fracture height of 600' after 200,000 barrels of injection. This is somewhat more height growth than indicated from the actual treatment data. A model prediction has been run for the proposed KU 24-7 injection to a total volume of more than 500,000 barrels. The results of this prediction are attached. The study shows that the final fracture top should be in the shale body at a SSTVD of 3200-3300' at the end of injection. This height growth rate is similar to that observed in the previous jobs. Past experience has shown that injected tracers do not adequately indicate the position of the fracture top! for these large scale injection treatments. If the fracture deviates from the axis of the well bore by more than a few degrees it will leave the detection range of a wellbore tracer tool within 50-100 feet of the injection perforations. This shortcoming applies to both temperature and radio-active tracers. None of the pressure behavior observed in any disposal project in the Kenai area to date has indicated horizontal fracture development. To propagate a horizontal fracture the fluid injection pressure must equal or exceed the total overburden pressure (roughly 1.0 psi/ft). All of the observed injection (IS I) pressures are well below the overburden pressure, and are consistent with vertical fracture propagation. (Ùbré '; f='~Ttt.tZe '7~¡tA..tA.c...AnoI0 wA5 Þo,v£ B>t D~. ~I>b ~f.e Ma..1ít:<.:fí..cv- Ú ff r e. þ,f/I / cA.-o¡---c:..-d..:, . RÉCE'VED O 1...·01"' I'll rY\ ¡ (:' I'" 0 ('nj ') \J ,..J.J . f"\ f":y^'Q C"\-(1m~SSlOn A\aclç' 0:] El \:'?~:i ;..Il.::'~" .J.' . ~ OJ\ W'~ . j~n:~I~~:~~r\~J~; " ,) KGF DISPOSAL PROJECTS K U 14-4 KU 11-17 Total Injection Vol. (bbls) 452,400 520,000 Est. Frac Length (ft.) 3,000 3,000 Est. Frac Height (ft.) 650 650 Temp. Surveys Yes No Tracer Surveys Yes No Injection Interval Sterling Sterling B 1 & B2 83, 84,C1 Injection Depth (ft. md) 4194-4250 4468-5152 Injection Dates 8/92 - 10/92 8/95 - 11/96 5/93 - 9/93 * The volume, length and height reported for KU 11-17 are as of 11/96. It is estimate an additional 20,000 - 50,000 bbls. of waste will be disposed of in this well. RECEIVED NOV 0 G 1996 Alaska Oil & Gas Cons. Commission AnchorëQ9 h: lex cellkenailsterli ng 10 I SP~ SE.X l S 11/6/96 ~ 6000 5000 4000 Õ 3000 1/6/96 10000 1000 ~ 1 I 100 o 500000 600000 100000 300000 400000 200000 14-4 KtJ 11-17 \i8ip144.