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Home My WebLink About203-208 . . MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission TO: Jim Regg,. ¥:tl£¡('.b \2t\(n P.I. Supervisor (I DATE: June 12, 2007 FROM: Chuck Scheve, Petroleum Inspector SUBJECT: Location Inspection Pioneer (Evergreen) Sheep Creek #1 PTD 203-208 Tuesday. June 12. 2007; I traveled to the Pioneer (Evergreen) coal bed methane exploration wells Little Su #1 ,Houston Pit #1, Sheep Creek #1, Kashwitna Lake #1 and Slats #1 to verify location clearance. The exploratory locations were clean with no evidence of past drilling activity. SUMMARY: I recommend the above mentioned 5 locations be given final clearance approval Attachments: Sheep Creek #1.JPG SCANNED JUL 2 0 2007 2007 -0612_Location_ Clearance_Pioneer_SheepCk-1_cs.doc Clearance Inspection - Sheep Creek Photos by Inspector Chuck Scheve June 12, 2007 -0612_ Location_Clearance_Pioneer _ SheepCk -1_ cs.doc STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION WELL COMPLETION OR RECOMPLETION REPeJlffilA!c1?o~J~cótfission 1a. Well Status: 0110 GasO PluggedO Abandoned8J SuspendedO WAGO 1b. Well Class: g 20AAC 25.105 20AAC 25.110 D I t 0 E I 0 eve opmen xp oratory Service 0 Stratigraphic Test I8J '--- .~ Kt:.t;t:lvt:u JUL 2 6 2006 GINJD WINJD WDSPLD No. of completions _ Other 5. Date Comp., Susp., or Aband.: 3/3/04 12. Permit to Drill Number: 203-208 2. Operator Name: Evergreen Resources Alaska Corp. 3. Address: P.O. Box 871845 Wasilla, AK 99687 6. Date Spudded: 1/14/04 13. API Number: 50- 283-20105 4a. Location of Well (Governmental Section): Sec 20, TWN 22N, RNG 4W Surface: 417' FNL and 1505' FWL 7. Date TD Reached: 2/8/04 14. Well Name and Number: Sheep Creek #1 Top of Productive Horizon: Same as Above 8. KB Elevation (ft): 231' 15. Field/Pool(s): Wildcat Total Depth: 1371' MD 4b. Location of Well (State Base Plane Coordinates): (NAD 27) 9. Plug Back Depth (MD + TVD): Surface (abd) TPI: x- 489689.87 y- 2918957.46 y- 2918957.46 Zone-4 10. Total Depth (MD + TVD): 1371' 11. Depth where SSSV Set: 16. Property Designation: State of Alaska 17. Land Use Permit: ADL 389302 Surface: x- 489689.87 Zone-4 N/ A feet MD 19. Water Depth, if Offshore: 20. Thickness of Permafrost: N/A N/A feet MSL 21. Logs Run: Gamma Ray, Spontaneous Potential, Caliper, Array Induction, Compensated Neutron Density, Sonic, Inclination Survey 18. Directional Survey: Yesl8J y- 2918957.46 NoD Zone-4 TotalDepth: x- 489689.87 22. CASING, LINER AND CEMENTING RECORD CASING WT. SETTING DEPTH MD SETTING DEPTH TVD AMOUNT SIZE PER GRADE TOP BOTTOM TOP BOTTOM HOLE SIZE CEMENTING RECORD PULLED FT. 6" 17 LP 0 307 0 307 6.125 16 sx Portland cmt 4.5" 14.4 X42 0 320 0 320 5.5 16 sx Portland cmt 23. Perforations Open to Production (MD + TVD of Top and Bottom Interval, Size, and Number; if none, state "none"): None SCJ~NNED JUL 2 620Ga 24. TUBING RECORD SIZE DEPTH SET (MD) PACKER SET (MD) N/A N/A N/A N/A N/A N/A 25. ACID, FRACTURE, CEMENT SQUEEZE, ETC. DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED None None 26. Date of First Production: Abandoned PRODUCTION TEST Method of Operation (Flowing, Gas Lift, etc.): Abandoned Date of Test: Hours Tested: Production for Oil-Bbl: Gas-MCF: Water-Bbl: Choke Size: I Gas-Oil Ratio: N/A Test Period ... Flow. Tubing Casing Pressure: Calulated ... Oil-Bbl: Gas-MCF: Water-Bbl: Oil Gravity-API (corr): Press: 24-Hour Rate 27. CORE DATA Brief description of lithology, porosity, fractures, apparent dips and presence of oil, gas, or water (attach separate sheet, if necessary). Submit core chips; if none, state "none". Separate core analysis will be submitted. Form 10-407 Revised 4/2003 CONTINUED ON REVERSE SIDE G 28. GEOLOGIC ~KERS NAME MD I TVD Quaternary Gravel o - 302' o - 302' Sterling Formation 302' - 794' 302' -794' Tyonek 794' - 1220' 794' -1220' Volcanics (Andecite) 1220' - TD 1220' - TD 29. '~ FORMATION TESTS Include and briefly summarize test results. List intervals tested, and attach detailed supporting data as necessary. If no tests were conducted, state "None". None 30. List of Attachments: Daily reports, wireline logs, mud logs, inclination survey 31. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Shane GaQliardi Printed Name Shane Gaqliardi Title Petroleum EnQineer Signature Phone 907-355-8569 Date 3/1/04 INSTRUCTIONS General: This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Alaska. Submit a well schematic diagram with each 10-407 well completion report and 10-404 well sundry report when the downhole well design is changed. Item 1a: Classification of Service Wells: Gas Injection, Water Injection, Water-Alternating-Gas Injection, Salt Water Disposal, Water Supply for Injection, Observation, or Other. Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPI (Top of Producing Interval). Item 8: The Kelly Bushing elevation in feet above mean low low water. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits (ex: 50-029-20123-00-00). Item 20: True vertical thickness. Item 22: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 23: If this well is completed for separate production from more than one interval (multiple completion), so state in item 1, and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval). Item 26: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut-In, or Other (explain). Item 27: If no cores taken, indicate "none". Item 29: List all test information. If none, state "None". Form 10-407 Revised 4/2003 Well Name Sheep Creek #1 01/05/04 01/14/04 01/15/04 01/20/04 01/21/04 01/22/04 01/23/04 02/24/04 02/25/04 02/26/04 02/27/04 02/28/04 02/29/04 03/01/04 03/02/03 03/03/04 =\'=I~ell==I\1 RESOURCES '(ÃLASKA}COIiP. A Subsídiarynf EVcrfJtÐcnAtNiitNJ'?tS, /n¢~ Daily Drilling Summary Location API Permit to QTR Sec I Twn Rng Number Drill NE NW 20 22N 4W 50-283-20105 203-208 Dig cellar and install culvert. Make cellar covers and plow snow. Spud at 9:10am. Drill 28', make connection weld 6" csg Drill 20' ,current depth 48' make connection weld 6" csg Drill 20' ,current depth 68' make connection weld 6" csg Drill 20', current depth 88' make connection weld 6" csg Drill 20', current depth 108' make connection weld 6" csg Drill 20', current depth 128' make connection weld 6" csg Drill 20', current depth 148' make connection weld 6" csg Drill 20', current depth 168', make connection weld 6" csg Drill 20', current depth 188', make connection weld 6" csg Drill 20', current depth 208', make connectin weld 6" csg Drill 20', current depth 218, SOON. Wait on weather (-40 degree F) Drill 10', current depth 228, make connection weld 6" csg Drill 20' current depth 248', make connection weld 6' csg Drill 20' current depth 268', make connection weld 6' csg SOON Rig maintenance Drill and drive casing from 268' to 272' Drill and drive casing from 272' to 292' Drill and drive casing from 292' to 307' RU cement equip Fill in from top after surface casing cement job per AOGCC Drill from 307' to 320'. TIH, land csg @ 320' RU cement equip Pump 16sx, 4.9 bbls, portland cement SOON, RD move to Willow Fishhook. MIRU Layne Christiansen Core from 325' to 354 Core from 354' to 401' Core from 401' to 492', recover 14.5, recovery 16% Core from 492' to 578', recover 35.5', recovery 41% Core from 578' to 609', recover 9.2', recovery 30% Core from 609' to 750', recover 52', recovery 37% Core from 743' to 759', recover 0.3', recovery 2%. Make bit trip. Core from 759' to 881', recover 68.3', recovery 55% Core from 881' to 891', recover 0.1', recovery 1%; make another bit trip. Core from 883' to 1003', recover 68.4', recovery 57% Core from 1003' to 1065', recover 61.1', recovery 99%; cans coal from 1021-1022 Core from 1065' to 1183' recover 111.5', recovery 95% Core from 1183' to 1343', recover 156.5', recovery 98%. Volcanics @ 1220'. Core from 1343' to 1371', recover 27', recovery 97%. TO well @ 1371', Survey well @ 500' - 1.5 degrees, 1000' - 3 degrees and TO - 2 degrees. Cmt well from top w/24.6 bbl of neat cement, pressure to 900 psi. RDMO Layne Christiansen and Swaco. Will begin reclamationin the AM. Page 1 of 1 -----' Spud Date 1/14/2004 Total Depth 1371' Sheep Creek Retrieval Run Percent Time Time at Time number Date From To Cut Rec Recovery Start out Surface (min) 1 02/24/04 325.0 328.0 3.0 3.0 1 000/0 1823 1825 2.0 2 02/24/04 328.0 333.5 5.5 5.0 91% 1915 1916 1.0 3 02/24/04 333.5 338.5 5.0 5.0 100% 1936 1937 1.0 4 02/24/04 338.5 344.0 5.5 4.0 73% 2000 2001 1.0 5 02/24/04 344.0 349.0 5.0 2.0 40% 2239 2240 1.0 6 02/24/04 349.0 355.0 6.0 0.0 0% 2304 2305 1.0 7 02/24/04 355.0 361.0 6.0 0.0 0% 2320 2321 1.0 8 02/24/04 361.0 366.0 5.0 1.0 20% 2343 2344 1.0 9 02/25/04 366.0 369.0 3.0 2.4 80% 25 26 1.0 10 02/25/04 369.0 374.0 5.0 5.5 11 OOk 47 48 1.0 11 02/25/04 374.0 380.0 6.0 6.0 1 00% 114 116 2.0 12 02/25/04 380.0 385.0 5.0 5.0 100% 141 142 1.0 13 02/25/04 385.0 391.0 6.0 6.0 100% 215 216 1.0 14 02/25/04 391.0 396.0 5.0 5.0 1 00% 241 242 1.0 15 02/25/04 396.0 401.0 5.0 5.0 1 00% 301 303 2.0 16 02/25/04 401.0 406.0 5.0 0.0 00/0 319 320 1.0 17 02/25/04 406.0 411.0 5.0 0.0 00/0 402 403 1.0 18 02/25/04 411.0 416.0 5.0 0.0 0% 1305 1307 2.0 19 02/25/04 416.0 420.0 4.0 0.0 0% 1359 1407 8.0 20 02/25/04 420.0 426.0 6.0 1.0 17% 1423 1425 2.0 21 02/25/04 426.0 431.0 5.0 0.0 0% 1452 1454 2.0 22 02/25/04 431 .0 441.0 10.0 0.0 0% 1512 1516 4.0 23 02/25/04 441 .0 451.0 10.0 5.0 50% 1543 1549 6.0 24 02/25/04 451 .0 456.0 5.0 5.0 1 00% 1604 1607 3.0 25 02/25/04 456.0 461.0 5.0 0.5 10% 1623 1625 2.0 26 02/25/04 461 .0 467.0 6.0 0.0 0% 1646 1650 4.0 27 02/25/04 467.0 481.0 14.0 0.0 0% 1721 1724 3.0 28 02/25/04 481 .0 491.0 10.0 2.0 20% 1758 1801 3.0 29 02/25/04 491.0 492.0 1.0 1.0 100% 1823 1825 2.0 30 02/25/04 492.0 501.0 9.0 0.5 60/0 1908 1911 3.0 31 02/25/04 501 .0 511.0 10.0 0.0 00/0 2023 2028 5.0 32 02/25/04 511 .0 521.0 10.0 0.0 0% 2123 2128 5.0 33 02/25/04 521.0 531.0 10.0 1.0 1 00/0 2202 2204 2.0 34 02/25/04 531.0 541.0 10.0 6.0 600/0 2247 2249 2.0 35 02/25/04 541.0 547.0 6.0 0.0 00/0 2332 2334 2.0 36 02/26/04 547.0 554.0 7.0 1.0 14% 9 11 2.0 37 02/26/04 554.0 558.0 4.0 0.4 1 00/0 38 40 2.0 38 02/26/04 548.0 554.0 6.0 5.0 83% 336 338 2.0 39 02/26/04 554.0 560.0 6.0 5.0 830/0 413 415 2.0 ---- MNI '-- -- laboratories, Inc. Company: Evergreen Resources (Alaska) Corp. File No.: A87006 Well: Sheep Creek No.1 Analyst: Ronald L. Brown Field: Unknown Date: 9/30/04 Location: Alaska Cores: 1 - 205 PORTABLE GAMMA RAY LOG PLOT VERTICAL SCALE 5":100' Depth Total Gamma Counts Feet Core # Total interval o 30 60 90 120 150 320 --- ~ ~ ? -=::::=- ~ 330 340 Core 325' - 1368.5' 350 / 360 FINAL CORE LOG <....... ~ - -=)=- -> 370 380 390 400 410 420 430 ~ ~ 440 450 460 470 ~ 480 490 ""T;;JV 500 510 520 ~ 530 540 - c-'- 550 ~ " 560 - ~ ~ I 570 - -=-".,) ~ ~ 580 590 -- / 600 610 c::::- <.. - 2- - 620 ~ s-- 630 -- ? 640 650 660 ~ 670 680 <... ~ 690 .:::s- 700 710 720 c_c ~~. r-' 730 ~ -==- 740 750 760 770 780 - - 790 ~ 800 ~ - s:- 810 ~ 820 ~ ~ <.., 830 ~ -=? ----- 840 ~ ¿ .¿::- 850 860 <..... 870 -==-:, 880 ¿ c:;;;;- 890 ~ 900 ~ 910 ~ 920 930 940 c:::::; .-- ,-- ( -- ~ "--3 ~ ~ " ~ > ""'-- -=e- r-- ç ~ ~ ~- =- ~ z ~ ~ ---- ~ -- > f" ~ L.¡ ~ ~ ,;' ~ ~ ~ r--- ~ .2 c:s ~ ~ ....c:......... 940 '-~J 950 960 970 980 990 1,000 1,010 1,020 1,030 1,040 1,050 1,060 1,070 1,080 1,090 1,100 1,110 1,120 1,130 1,140 1,150 1,160 ~ ~ ~- § -=C" ¿ ~ ~ ~ y ? --- -i Z ~ ~ ~ ~ ~ ~ ~ ~ - -4; ~ ~ ~ ¿ ~ ~ ~ ~ '" ~ ~ ~ ~ ~ "-- 1 ,170 .,,~ 1,180 1,190 1,200 1,210 1,220 1,230 1,240 1,250 1,260 1,270 1,280 1,290 1,300 1,310 1,320 1,330 1,340 1,350 1,360 1,370 Permit to Drill 2032080 MD 1371 TVD 1371 REQUIRED INFORMATION DATA INFORMATION Types Electric or Other Logs Run: Well Log Information: Logl Data Dig.ital Type .MécÏIFrmt ..- ~.r í I Electr Dataset Number Name Lithology Well CoreslSamples Information: Name ADDITIONAL INFORMATION Well Cored? Y 1 N Chips Received? Y 1 N Analysis Received? Y/N Comments: iVC; Compliance Reviewed By: J A.p..d ~è Gþ DATA SUBMITTAL COMPLIANCE REPORT 3/2/2006 Well NamelNo. SHEEP CREEK 1 Operator EVERGREEN RESOURCES (ALASKA) API No. 50-283-20105-00-00 Completion Date 3/3/2004 Completion Status P&A Current Status P&A UIC N Mud Log Yes Samples No Directional Survey No Gamma Ray, Spontaneous Potential, Caliper, Array Induction, Compe (data taken from Logs Portion of Master Well Data Maint Log Log Run Scale Media No OTH Col Interval Start Stop o 1371 . OHI CH Received Comments Open 612112004 5":20' Interval Start Stop Sample Set Number Comments Cores andlor Samples are required to be submitted. This record automatically created from Permit to Drill Module on: 12/2212003. Sent Received Daily History Received? Y/N Formation Tops YIN . L{ tJ·7 ~. éÚ 3 A,~ Dvj{{~ S~Wl~.~ Date: )..., iVÛ;, ~ ¿. .,j\ I\cl ~(/_I- 0-\ . . January 13, 2005 PIONEER NATURAL RESOURCES ALASKA INC. Howard Okland Petroleum Geologist Assistant Alaska Oil & Gas Conservation Commission 333 W. ih Ave., Suite 100 Anchorage, Alaska 99501 Re: Letter of Transmittal Subj: Evergreen Resources Alaska Corp's 2004 Five-Hole Core Program Dear Mr. Okland, I am enclosing with this correspondence, both an inventory of the continuously cored exploratory wells that were drilled in early 2004 by Evergreen Resources Alaska Corporation (Evergreen) and a data CD, per your request. The wells drilled include the Sheep Creek #1, Kashwitna Lake #1, Houston Pit #1, Little Su #1, and the Slats #1. Total well depths and cored footage (in parentheses) of these exploratory wells are as follows: Sheep Creek #1 - 1,369' (1,034'); Kashwitna Lake #1 - 1,750' (878.5'); Houston Pit #1 - 1,604' (1,548'); Little Su #1 - 2,125' (2,010'); and Slats #1 - 3,095' (2,685'). Total cored footage equates to 8,155.5 feet. Core from the five Evergreen exploratory wells is presently in a container at the Alaska Geologic Materials Center in Eagle River. If you have any additional questions or requests, please feel free to contact me. Sincerely, %~/~ Michael A Belowich Coal Geologist Pioneer Natural Resources Cc: Robert Crandall - Alaska Oil & Gas Conservation Commission Matt Rader - Alaska Division of Oil and Gas John Reeder - Alaska Geologic Materials Center 1075 CHECK STREET. STE. 202 . WASILLA, ALASKA 99654 . MAIN: (907) 357-8130 . FAX: (907) 357-8340 . . Well Name: Sheep Creek #1 -103 '- ÀO'~ - Box De:>th Box Death Numbers Column Shelf Top Bottom Numbers Column Shelf Top Bottom (ft) (ft) (ft) (ft) 1 16 B 325.0 335.0 51 17 C 1173.0 1182.0 2 16 B 335.0 366.2 52 17 C 1182.0 1192.0 3 16 B 366.2 376.4 53 17 C 1192.0 1203.0 4 16 B 376.4 386.5 54 17 C 1203.0 1212.0 5 16 B 386.5 397.2 55 17 C 1212.0 1226.0 6 16 B 397.2 445.0 56 17 C 1226.0 1231.0 7 16 B 445.0 492.0 57 17 C 1231.0 1240.0 8 16 B 492.0 548.3 58 17 B 1240.0 1250.0 9 16 B 548.3 558.2 59 17 B 1250.0 1259.0 10 16 B 558.2 568.2 60 17 B 1259.0 1270.0 11 16 B 568.2 579.3 61 17 B 1270.0 1278.0 12 16 B 579.3 597.0 62 17 B 1278.0 1287.7 13 16 A 597.0 622.0 63 17 B 1287.7 1297.0 14 16 A 622.0 634.0 64 17 B 1297.0 1305.9 15 16 A 634.0 645.0 65 17 B 1305.9 1314.0 16 16 A 645.0 685.3 66 17 B 1314.0 1322.5 17 16 A 685.3 727.0 67 17 B 1322.5 1331 .4 18 16 A 727.0 761.0 68 17 B 1331 .4 1341 .2 19 16 A 761.0 797.0 69 17 B 1341 .2 1350.2 20 16 A 797.0 806.0 70 17 B 1350.2 1360.0 21 16 A 806.0 816.9 71 17 B 1360.0 1369.0 22 16 A 816.9 825.8 72 23 16 A 825.8 836.0 73 24 16 A 836.0 846.0 74 25 16 A 846.0 874.0 75 26 16 A 874.0 899.0 27 16 A 899.0 913.0 28 16 A 913.0 952.0 29 16 A 952.0 964.4 30 16 A 964.4 976.0 31 17 D 976.0 991.0 32 17 D 991.0 1002.4 33 17 D 1 002.4 1012.0 34 17 D 1012.0 1020.8 35 17 D 1020.8 1029.4 36 17 D 1029.4 1040.0 37 17 D 1040.0 1048.0 38 17 D 1048.0 1058.0 39 17 D 1058.0 1069.0 40 17 C 1069.0 1079.0 41 17 C 1079.0 1088.0 42 17 C 1088.0 1099.0 43 17 C 1099.0 1107.5 44 17 C 1107.5 1117.0 45 17 C 1117.0 1127.5 46 17 C 1127.5 1136.4 47 17 C 1136.4 1145.8 48 17 C 1145.8 1155.0 49 17 C 1155.0 1164.0 50 17 C 1164.0 1173.0 j '-I Jí.~ Au \J~- =\I=I~GI~==I_ RESOURCES (ALASKA) COR~ A Subsidiary of Evergreen Resources, Inc. e <---:R D_3- Ät)5 ~61 c..j..- c' .57 ~t) J --G-~cJ / cX03 -dog June 17,2004 Mr. Bob Crandall Alaska Oil and Gas Conservation Commission 333 W. 7th Ave #100 Anchorage, Alaska, 99501-3539 RE: Evergreen Resources (Alaska) Corp.'s 2004 Core Program Dear Mr. Crandall: The purpose of this letter is to fulfill the reporting requirements of Evergreen Resources (Alaska) Corp. as stipulated by 20AAC25.070 and 20AAC25.071 for the completed core drilling project. Attached are the drilling summaries, logs and other pertinent information for the Houston Pit #1, Little Su #1, Sheep Creek #1 and Slats #1. The acquired core is currently being slabbed and photographed. The desorption analysis is also ongoing. Hard and soft copies of these studies will be made available upon their completion. Wireline logs were not run on the Sheep Creek prior to abandonment of the hole; consequently, a gamma ray log will be generated from the core and provided when available. Once the studies are complete the core will be donated to the Alaska Oil and Gas Conservation Commission and housed in a State facility. The Willow Fishhook is currently suspended; drilling operations may resume at a later date. The six foot cellar has been constructed and six inch surface casing has been set at 335'. A plate has been welded over the casing to prevent vandalism. All information submitted concerning the above listed wells are subject to the two year confidentiality stipulation. If you have any questions, please feel free to contact me at 907-357-8130 or shaneQ@everQreengas.com. jti4{Ð ~ Shane Gagliardi Petroleum Engineer OR\G\NAL REr:;Ë/VED JUN .2 J 2004 ,~í8Sk"'1 0/'/ & ,... .... iJåS C L. oos. COlI'tlllissiol1 Anchorage 1075 Check Slreel, Suite 202 . Wasil/a AK 99654 P.O. Box 871845 . Wasil/a, AK 99687 . TEL 907.357.8130 . FAX 907.357.8340 Slats # I Core Disposition e e §H ~I~~t:§ï~t~ #1<· C()reÜi sposi ti on I¡'rom: Sh;;mcGagl iard i <shaneg~i.:"c\'crgrcengas.com> Däte:iThu,20May 2004 09:33:35.~0800 To: bob _ crandall@admin.statc.ak.us CC: Corri Feige <CorriF@EvergrecnGas.com>, Scott Zimmerman <ScottZ@EvergreenGas.com>, Chris ·Comelius <Chri sC@EvergreenGas.com> Bob, >From this year's core program, we have extracted approximately 8,000' of core. Of this core about 3,000' will be slabbed. Evergreen Alaska will donate all of the core to the state to fulfill the AOGCC requirements of 20 AAC 25.071 (b) (4). We understand that the donated core will be kept confidential for a minimum of two years. The slabbing and photographing process is lengthy; the anticipated approximate date for completion of the process and transferring the core to the state is March 05. If you have any further questions, please contact me @ 907-355-8569. Thanks, Shane 1 of 1 5/20/2004 9:40 AM . . t)03-dOg MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission TO: Jim Regg, ç r?4C;;¡' t'O\cA P.I. Supervisor ~ l DATE: January 28,2004 FROM: John Spaulding, Petroleum Inspector SUBJECT: Location Inspections Evergreen Resources Coal Bed Methane January 2004: I traveled to Evergreen Resources locations in the Mat-Su Borough. Susitna 1, Kashwitna 1 and Sheep Creek 1 are noted in this report. At present all wells are being drilled for core sampling purposes of the formations. I was notified of the Susitna 1 well after the rig had encountered some problems cementing surface casing. The well was suspended and the rig had moved off location when I arrived. There was probably a foot of new snow when I visited the location and and the casing and the location was pretty well covered over. I intend to revisit at a later date when the rig has returned or the well is P&Aed. Kashwitna 1 located North and West of Willow, AK: I observed a BOPE test and inspected the rig and location. Pictures were taken of the BOPE, rig and surrounding location. I observed the technique for water sampling, and to my estimations found it adequate. Sheep Cr. 1 located farther North and West from the Kashwitna location near the Parks Highway: I was only able to look at the location, as the rig had not moved in yet. I am questioning the requirements for a manual annular device and a manual valve for a blind ram. These are located under the rig floor as with all drilling rigs, but are not hydraulically operated from a remote location. If in the event of an influx of gas a person would have to lay on their stomach and have their face next to the top of the casing in order to close either portion of BOPE. Should we be requiring hydraulically operated BOPE? Should we relax the requirements for the manual BOPE? Hopefully the accompanying photos will help explain. SUMMARY; I inspected the above-mentioned locations and found all to be quite clean and orderly. A BOP test was witnessed, with no failures. Attachments: Photo's CONFIDENTIAL 2004-0128_Locations _ CBM_ Suisitna1_Kashwitna1_ SheepCk1.Js.doc . . Evergreen Resources - Pioneer CBM Project Inspections from January 11 and January 22, 2004 Photos from AOGCC Inspector John Spaulding ':1 # !I \ \ ~:. -~<¡.t_~_:>_, .~' ,/:';^~~~" Blowing casing dry Cuttings catcher 1 ., ... ..~ t ti I ¡ . . ¡, A< 1IIIiI/Ii,. ,'::. ...y I . , . ~) " , I # f ~ i . H , .~ y-- ,tlf' '1 " ","';i'" A ./::;!' ..;¡ ~\ ~ ('þ s: S' (¡Q () s:o VJ S' (¡Q tv " /:. . . ~Q ¡:: ::;: a S' -(¡Q ...... VJ ::s s:o DJ ::s 0.- ~ s:o ~ ('þ "1 - "( ~ "~"d.,' ,¡ "l 1 n';;~'4r~, . .., ",' ~ ' " .' . ø ' . , " .- _......,.. . .... .~' , .I'." .... .;<,. .. ~ ¡·,!I c, ,'" ' '" ,,' " ' . u' ~ ,. f...~-:' ..~... ',.' r., ...' . .. .W~r "¡IiIì~,""'",,¡''''' ~ ," j, <"'" "~'. ~ ":"k ..: . ," y . ,¡¡¡iF Ii i [;1: SiI· . ',' .' ' iII:.~.,,:..,..t;:..,X;&'"'''..:'··''' .<:!~.., ; ~." " '. ,,,,,,~,,,,,",'\d~'?'" ' " ' , " ' . ·',]ììiilillliiiiiliii' , . , ' " ,'i~{~~0"~~>Ic', '." ' j '"~ .~~ ."tl~"'· '." ~ '. ...........tif ' , . . ,.,. ..,",r--:.~¡¡ . ... .. IIíIii.i.... , . ", p. . s ~ êì Qõ' ..... þ (5)::s _0.. 0..(") ::r o ~ CÐ Þ"ir-< þ 0 ~ (") ~ ~, ..... 0 Ej ::s Þ I =1:t ....... w '1'- 1 ~'.. ·..f '''.~1'' J! .:>.. 't.'~. ::~ ". ..", \. '.¡~ '. ""~:" ~ a;:: -1:1' â ê e:.. eo o ~ . eo o ~ 4~~~!fPj··_^O_Oo'oc.-,_.....::-J ..~t.~"'''·· ... -~ " 1'/"'1 ':> ."-1'.' . '.. - . """CC,fI'''f e- . . a ~ rJ} cr' s:: rJ} ..... ~ VI . . FRANK H. MURKOWSKI, GOVERNOR AI,ASIiA OIL AND GAS CONSERVATION COMMISSION Shane Gagliardi Petroleum Engineer Evergreen Resources (Alaska), Corp. PO Box 871845 Wasilla, AK 99687 333 W. 7'" AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Re: Sheep Creek #1 Evergreen Resources (Alaska), Corp. Permit No: 203-208 Surface Location: 417' FNL and 1505' FEL, Sec. 20, T22N, R4W, SM Bottomhole Location: 417' FNL and 1505' FEL, Sec. 20, T22N, R4W, SM Dear Mr. Gagliardi: Enclosed is the approved application for permit to drill the above referenced development well. This permit to drill does not exempt you from obtaining additional permits or approvals required by law from other governmental agencies, and does not authorize conducting drilling operations until all other required permits and approvals have been issued. In addition, the Commission reserves the right to withdraw the permit in the event it was erroneously issued. Operations must be conducted in accordance with AS 31.05 and Title 20, Chapter 25 of the Alaska Administrative Code unless the Commission specifically authorizes a variance. Failure to comply with an applicable provision of AS 31.05, Title 20, Chapter 25 of the Alaska Administrative Code, or a Commission order, or the terms and conditions of this permit may result in the revocation or suspension of the permit. Please provide at least twenty-four (24) hours notice for a representative of the Commission to witness any required test. Contact the Commission's North Slope petroleum field inspector at 659-3607 (pager). Smce~ ¡~ S~ ' Chair BY ORDER OF THE COMMISSION DATED this1!J. day of December, 2003 cc: Department ofFish & Game, Habitat Section w/o encl. Department of Environmental Conservation w/o encl. ¡,uClA p-)lf{lOO~ ~ 12-Jf . STATE OF ALASKA . ALASKA OIL AND GAS CONSERVATION COMMISSION PERMIT TO DRILL 20 AAC 25.005 4b. Location of Well (State Base Plane Coordinates): NAD 83 Surface: x-1629720.94 y- 2918718.89 Zone- 4 16. Deviated Wells: NIA Kickoff Depth: NIA 18. Casing Program: Size Casing 4.5 1a. Type of Work: DrilllZl Re-entry D Redrill D 2. Operator Name: Evergreen Resources (Alaska) Corp. 3. Address: P.O. Box 871845, Was ill a, AK 99687 4a. Location of Well (Governmental Section): Sec 20, TWN 22N, Rng 4W Surface: 417' FNL and 1505' FWL Top of Productive Horizon: Same as above Total Depth: Same as above 1 b. Current Well Class: ExploratoryD Development Oil 0 Multiple Zone D Stratigraphic Test 181 Service 0 Development GasO Single ZoneD 5. Bond; IZIBlanket DSingle Well 11. Well Name and Number: Bond No. RLB0003430 Sheep Creek #1 6. Proposed Depth: 12. Field/Pool(s): MD: 3000 ft rvD: 3000 ft Wildcat 7. Property Designation: State of Alaska 8. Land Use Permit: ADL 389302 13. Approximate Spud Date: 10 Dec 03 9. Acres in Property: 90 acres 14. Distance to Nearest Property: 535 feet 10. KB Elevation (Height above GL): 230.6 15. Distance to Nearest feet Well within Pool: 128,304 feet Length 200 17. Anticipated Pressure (S~~}'9 AAC 25.035) loft:) Max. Downhole Pressure:-~PSig. Max.Surface Pressure:~psig. Setting Depth Quantity of Cement Top Bottom c.f. or sacks. MD TVD MD TVD (Including Stage Data) o 0 204 204 17.1 cu. Ft. ~I\- ft. Maximum Hole Angle: NIA Specifications Hole 6 Weight 9.18 Coupling LP Grade LP 19. Total Depth MD (ft): PRESENT WELL CONDITION SUMMARY (To be completed for Redrill and Re-Entry Operations) Total Depth TVD (ft): Effective Depth MD (ft): Effective Depth TVD(ft): Plugs (measured): Junk (measured): Casing Length Structural Conductor Surface Intermediate Production Liner Perforation Depth MD (ft): None Size TVD Cement Volume MD Perforation Depth TVD (ft): None Drilling Program 181 . Seabed ReportO Time v. Depth Plot 0 Shallow Hazard Analysis 0 Drilling Fluid programŒJ 20 AAC 25.050 Requirements 0 Date: Contact Shane Gaqliardi 20. Attachments: Filing Fee 181 BOP Sketch 181 Property PlatŒJ Diverter SketchO 21. Verbal Approval: Commission Representative: 22. I hereby certify that the foregoing is true and correct to the best of my knowledge. Printed Name Shane Gajrdf'õ::) Signature ß'~ ~ Title Petroleum Enqineer Date J2/5/ð3 Permit to Drill Number: 2 08 - Conditions of approval: Phone 907-355-8569 Commission Use Only 'API Number: 2- C ? 50- "2 '8 ,~-. Z ð 10 S Samples requireq ~Yes . DNo I Permit APprOVjl1 }. q. )O)~, See cover letter for Date: V '/. other reqUirements. Mud log required. . Æ!Yes DNo n. (1_ J _ HYdrOg.en sulfide measures DYes g!No _ J Other: K~ TV C\..f-tr«t~d v.~d<A:./V\.t~ of!. It-ffrvv~ . :(lU ... BY ORDER OF Approved by: /;'. . . ~MISSIONER THE COMMISSION Form 1 0-401 ~s . 3/2003 OR\G\NAL Core Program 2003 APD Directional survey re~t: C~ 8Nb D~e OEd ;¡/{'~.;,ote Alaska Oil & Gas Cons. Commission Anchorage e @~&~~ @1 &lA@NfJ e FRANK H. MURKOWSKI, GOVERNOR DEPARTMENT OF NATURAL RESOURCES DIVISION OF OIL AND GAS December 16, 2003 Evergreen Resources Alaska Corp. Attn. Scott Zimmerman PO Box 871845 Wasilla, AK 99687 Re: Plan of Operation Mat-Su Core Holes 2003 Activity Kashwitna Lake # 1 Willow Fishhook # 1 Access Road Material Site Sheep Creek # 1 Material Site Dear Mr. Zimmerman: Subsurface ADL 389316 ADL 389238 ADL 389238 ADL 389238 ADL 389302 ADL 389302 550 WEST 7TH AVENUE, SUITE 800 ANCHORAGE, ALASKA 99501-3650 PHONE: (907) 269-8800 FAX: (907) 269-8938 LOICI 03-17 Surface DNR DNR ADL 25334 to Burrow ADL 25125 to DOT DNR ADL 43689 to DOT Evergreen Resources Alaska Corp. (Evergreen) applied for a Plan of Operations approval to drill three core holes on shallow gas leases in the Mat-Su Valley. The three core holes are part ofa larger plan to drill mineral core holes at seven possible locations to gather information on coal seams. The holes are being drilled for geological information only and do not involve dewatering the coal seams, or gas production. Core holes are drilled from small pads over a two-week period. The core is removed, the hole is plugged, and the site abandoned. The program will last approximately 8 weeks beginning in December 2003. Initial plans call for drilling 5 core holes this winter. A DNR plan of operations is required for activities at the following three sites. Kashwitna Lake #1 T20N,R4W Sec. 7: NWl/4 Willow Fishhook #1 TI9N,R4W Sec. 3: SWl/4NEl/4 Sheep Creek #1 T22N,R4W Sec. 20: Nl/2Nl/2 These sites are on state owned surface and subsurface. Site preparation may require a few days at each drill site to clear the access route and construct the pads. The drill pads will be approximately 45 ft. x 60 ft. Drilling will be conducted 24 hours per day for about two weeks at each site utilizing a compact truck-mounted unit. Drilling fluids will be plain water and additives such as soda ash, cellulose fiber, bentonite, and barite. The proposed additives are widely used for water well drilling and mineral e e LO/CI 03-17 Mat-Su Core Holes 2003 coring in Alaska. Approximately 100 barrels of water per core hole will be utilized from existing permitted off-site sources. Each core hole will result in approximately 7 cubic yards of cuttings. Cuttings from coring will be permanently disposed of in the core hole or buried in the cellar when the core hole is abandoned. Cuttings from unconsolidated materials such as surface gravels may be disposed ofto the surface ofthe pad in a manner similar to the disposal of cuttings from a water well. Muds and drilling fluids will remain in the portable, above ground tanks and will be removed from the site. Drilling fluids will be re-injected into an approved Class II disposal well. The core holes will be abandoned with cement plugs in accordance with AOGCC regulations immediately after operations are completed. All man-made materials will be removed and the sites left in a clean and graded condition. Public Outreach Public Notice was published in the Frontiersman and the Anchorage Daily News on November 7, 2003. Landowners of record with the Mat-Su Borough within Yz mile of each site were sent direct mail notifying them of the proposed activity. Surface interest holders were also notified. Information was included in a direct mailout to individuals who had expressed an interest in shallow gas leasing at a previous public meeting. The full application, including maps and other exhibits, was available on DNR's website. Public Comment Summary Public comments have been overwhelmingly against approving the plan of operations for the core holes. The primary concern is not with drilling the core holes themselves. The concern is with the existence ofthe leases and uncertainty over impacts to drinking water aquifers, surface property rights, lifestyles, existing land use, and the quality of life that might result if the leases are developed for coal bed methane (CBM). A large majority ofthe public comments request a moratorium on all shallow gas permitting and activity until a buyback of the leases can be explored. Also, the public cqmments requested comprehensive methane seep, aquifer recharge, social, and environmental studies before any core holes are approved. Public and agency comments also discussed the applicant's stated request for an exception to lease mitigation measures concerning solid waste. DNR Jurisdiction Many of the comments addressed all the core locations. Ofthe seven core locations, three are on shallow natural gas leases managed by DNR, three are on Mental Health Trust subsurface, and one is on private subsurface. DNR's management authority over the proposed activities is limited to surface and sub-surface state lands. A number of approval conditions have been developed in response to the public and agency concerns and will be applied to the three core holes under DNR jurisdiction. Lease Buyback Whether these shallow gas leases should be bought back by the state is a question that is generating a great deal of public attention. The Governor recently clarified his position on this matter by stating that buying back the leases is a last resort. Ultimately, the question ofwhether to buy back these leases is a political one that would require a legislative grant of authority to DNR to negotiate and execute any such buy back. Without any authority to consider buying back these leases, it is inappropriate for DNR to deny this application based on the possibility that these leases may be considered for buy back. These leases are valid. In approving a Plan of Operations the commissioner can require amendments he determines necessary to protect the state's interest, but cannot require an amendment that deprives Page 2 e e LOICI 03-17 Mat-Su Core Holes 2003 the lessee of reasonable use ofthe leasehold interest (11 AAC 83.158(e». These core holes, subject to the conditions contained in this decision, are a reasonable use of the leasehold interest. Exploration v. Development Core hole drilling does not present the same issues and concerns as CBM development. Core holes are drilled from small pads over a two-week period. The core is removed, the hole is plugged, and the site abandoned. The coal seams are not fractured or dewatered and there is no residual activity required at the site. If laboratory tests reveal gas content and geological conditions that justify further testing, a pilot project could be proposed in the future at or near the site. A future pilot project will require a new public notice, review, and plan of operations approval. Alternatively, the information acquired might exclude the area from further consideration by the company. Most of the concerns center on development issues being considered in the Mat-Su CBM project. As things progress over the next several months, the issues associated with CBM development will be thoroughly examined. Copies of the comments received during this review have been provided to the CBM project team for consideration in their process. Environmental Studies Performing comprehensive methane seep, aquifer recharge, social, and environmental studies at this time is premature. The potential effects of exploration activities such as those proposed here are too small to justify the types of studies requested. If exploration is successful, the impacts of field development will be examined and the suggested information needs can be addressed prior to making a decision on whether to approve development. If exploration is unsuccessful (as a majority of oil and gas exploration projects turn out to be), any studies concerning the impacts of development become moot. Requiring such comprehensive studies now would require expenditures of time and resources to generate information for a decision that may never need to be made. There may be a time when conducting such studies is appropriate, however that time has not yet come. Confidentiality The state (DNR and AOGCC) will obtain confidential data from the core holes that will offer insights into the character and extent ofthe methane resource and an opportunity to review other geological and hydrological information at these locations. This information will allow wiser management of the surface and subsurface resources by DNR and AOGCC for the benefit of all the citizens of the state. It has been suggested that the lessee or the state share information from the core holes with the public. AS 38.05.035(a)(9)(C) provides that upon the request of the person supplying the information to DNR, all geological, geophysical, and engineering data supplied must be kept confidential. The lessee is free to share the data if they so choose. Information acquired, sometimes at great expense, is proprietary and provides a business advantage over others who are not as well informed. Until a company's land position is assembled or prospect is explored it is common to not release much information. Well data and information collected by AOGCC is routinely held confidential for two years and that data will then be available for public consumption if it does not qualify for extended confidentiality. Page 3 e e LOICI 03-17 Mat-Su Core Holes 2003 Disposal of Drilling Wastes Evergreen proposes to discharge cuttings and well bore solids to the pad surface as explained on page 11 and 12 of the plan of operations. Evergreen requests an exemption :trom the lease mitigation measures concerning solid waste disposal. However, DNR finds that the exemption request is based on an erroneous interpretation ofthe lease mitigation measures, and that Evergreen's plan of operations meets the requirements of the mitigation measures as proposed. Shallow natural gas mitigation measure 26 and 27 discuss these discharges: 26. New solid waste disposal sites, other than for drilling waste, will not be approved or located on state property during the exploration phase of leasehold activities. Disposal sites may be provided for drilling waste if the facility complies with 18 AAC 60. 27. Drilling mud and cuttings cannot be discharged into lakes, streams, rivers, or important wetlands. On pad temporary cuttings storage will be allowed. Injection of non-hazardous oilfield wastes is regulated by AOGCC through its Underground Injection Control (UIe) Program for oil and gas wells. Mitigation measure 26 allows onsite drilling waste disposal if it complies with the DEC Solid Waste Management Regulations (18 AAC 60). These regulations are promulgated and administered by DEC to implement state statutes. DNR consulted ADEC regarding this issue, and ADEC concluded that Evergreen's proposed activity should be regulated as mineral drilling which is exempt :trom ADEC solid waste permitting requirements by statutory exèmption (AS 46.03.100(f)(1)). From a physical operations and impact perspective, this activity is no different than mineral coring activity. Since ADEC has concluded that the activity complies with 18 AAC 60, the activity meets mitigation measure 26. Mitigation measure 27 allows temporary cuttings storage on the pad. There are instances where cuttings are temporarily stored on the pad pending final disposition in compliance with 18 AAC 60, and by extension mitigation measure 26. Mitigation measure 27 does not preclude permanent disposal on pad when such disposal is in compliance with 18 AAC 60. The Office of Habitat Management and Permitting (OHMP) requested containment and testing of the well bore solids and cuttings prior to disposal on site. OHMP reasons that Evergreen has not provided any evidence to support their claim that disposal on the pad would not harm fish or wildlife. The proposed measure does not list the substances to be tested or justify thresholds that might be appropriate. ADEC is the state agency with expertise in the proper disposal of solid waste. ADEC has determined that solid waste associated with mineral core hole drilling in Alaska does not pose a significant risk to humans, fish, or wildlife. Imposing a testing requirement on these core holes is not consistent with the ADEC requirements for the same activity elsewhere in Alaska. Drilling wastes remain subject to the commissioner's ability to amend the plan of operation as necessary to protect the state's interest. To assure that state lands are left in a condition that is compatible with present and future uses, DNR is requiring additional mitigation as set out later in Attachment (1) to this approval. Page 4 e e LO/CI 03-17 Mat-Su Core Holes 2003 Plan of Operation Approval The Plan of Operation has been reviewed and found in compliance with the mitigation measures and advisories contained in the shallow gas lease. The Plan of Operation is approved for the Kashwitna Lake #1, Willow Fishhook #1, and the Sheep Creek #1 subject to the approval conditions found in Attachment (1) Operation Conditions; Attachment (2) DOT Requirements; Attachment (3) Well Data Submittal Requirements; and the following: 1. Where the state does not own the subsurface, surface entry is not an exercise of the rights granted in the state lease and such entry is governed by the operator's subsurface and surface agreements with the respective owners ofthose estates. 2. Lessee will notify this office at 269-8776 when drilling commences at each well site. 3. A Status Report for the activities conducted under this approval must be filed with this office on May 1 and November 1 each year, from the date this approval is issued and until a Completion Report is filed with the Division. Failure to file in a timely manner may result in revocation ofthis approval. The report shall contain a statement describing clean-up activities conducted, the method of debris disposal, and a narrative description of known incidents of surface damage. 4. The applicant shall defend, indemnify and hold the State of Alaska harmless from and against any and all claims, damages, suits, losses, liabilities and expenses for injury to or death of persons and damage to or loss of property arising out of or in connection with the entry on and use of State lands authorized under this approval by the applicant, its contractors, subcontractors and their employees. 5. The applicant shall inform and insure compliance with any and all conditions of this approval by its employees, agents and contractors, including subcontractors at any level. 6. The Commissioner of the Department of Natural Resources may require that an authorized representative be on-site during any operations conducted under this approval. 7. Rehabilitation shall be completed to the satisfaction ofthe Commissioner. 8. The Alaska Historic Preservation Act (AS 41.35.200) prohibits the appropriation, excavation, removal, injury, or destruction of any state-owned historic, prehistoric (paleontological) or archaeological site without a permit from the commissioner. Should any sites be discovered during the course of field operations, activities that may damage the site will cease and the Office of History and Archaeology in the Division of Parks and Outdoor Recreation «907) 762-2622). 9. This approval does not authorize activity on Mental Health Trust lands, school land, or lands owned by the University of Alaska. Legal Basis for Decision and Appeal This Plan of Operation Approval is approval is issued in accordance with Alaska Statute 38.05, 46.40.205, and Alaska Administrative Code 11 AAC 83.158 or 11 AAC 83.343. A person affected by this decision may appeal it, in accordance with 11 AAC 02. Any appeal must be received by January 6, 2004 and may be mailed or delivered to Thomas E. Irwin, Commissioner, Department of Natural Resources, 550 W. 7th Avenue, Suite 1400, Anchorage, Alaska 99501; faxed to 1-907-269- 8918, or sent by electronic mail to dnr_appeals@dnr.state.ak.us. This decision takes effect Page 5 e e LOICI 03-17 Mat-Su Core Holes 2003 immediately. Ifno appeal is filed by the appeal deadline, this decision becomes a final administrative order and decision of the department on the 31st day after issuance. An eligible person must first appeal this decision in accordance with 11 AAC 02 before appealing this decision to Superior Court. A copy of 11 AAC 02 may be obtained from this office or any regional information office of the Department of Natural Resources. This approval does not constitute certification of any property right or land status claimed by the applicant nor does it relieve the applicant of responsibility to obtain approvals or permits from other persons or governmental agencies that may also be required. All stipulations contained in the original lease and subsequent approvals remain in effect. If activities have not commenced, this approval expires at midnight, December 16,2006. Failure to comply with the terms and conditions outlined in the lease, the attached stipulations, and this authorization may result in revocation ofthis plan of operations approval. If you have any questions please contact Matt Rader at the Division of Oil and Gas in Anchorage, at 269-8776, fax 269-8943, or e-mail mwr@dnr.state.ak.us. Sincerely, ISI Matt Rader Natural Resources Specialist Attachments: (1) Operation Conditions (2) DOT Requirements (3) Well Data Submittal Requirement Page 6 'roposed Drilling Proceduree Core Program 2003 Matanuska-Susitna Borough, Alaska Objective The objective of this operation is to core the intended wells for geologic study to determine coal bed methane exploration potential and begin to describe the Mat Su Basin Casing Program Surface casing will be run from surface through the glacial gravels to protect fresh water. The surface hole will be 6 inch diameter and the surface casing will be X-42 4 inch nominal schedule 40 line pipe. Hole Size Casing Size Casing Weight Casing Casing Approx Casing Cement (in) OD (in) (Ibs/ft) Grade Connection Depth Interval (ft) Surface 6 4.5 10.8 LP LP 200 to surface Mud Program Water will be the primary drilling fluid used. Bentonite and EZ-Mud DP or other fresh water polymer may be used if hole conditions warrant. After the well has reached TD, this mud will be conditioned and transported to the next site. The cuttings will be tested and either spread on location, sent to an off site disposal facility or placed back in the hole as part of the abandoning process. Open Hole Logging Program Memory tools will be latched into the landing sub above the core barrel. being pulled out of the hole. Log Single Induction Sonic Porosity Gamma Ray Caliper Compensated Density Neutron Porosity Formation Tops Formation Quarternary Gravel Tertiary Tyonek The hole will be logged as the drill pipe is Interval TD to ± 20 ft in Surface Casing TD to ± 20 ft in Surface Casing TD to ± 20 ft in Surface Casing TD to ± 20 ft in Surface Casing TD to ± 20 ft in Surface Casing TD to ± 20 ft in Surface Casing Estimated Tops (ft KB) Surface 50-200 General Information All information not publicly available is considered Tight Hole and confidential. Spill Prevention Plan and Bear Mitigation measures must be adhered to at all times. Core Program 2003 APD e e Proposed Drilling Procedure Core Program 2003 Matanuska-Susitna Borough, Alaska SURFACE AND CORE HOLE 1. MIRU DJ excavation. Make any necessary changes to location to accommodate core drilling rig. a. Dig 6' cellar wI 6' diameter and place culverts. 2. MIRU Discovery Drilling. 3. Drill 6" hole through base of gravel (50'-200' anticipated) and set 4" casing to bottom. a. Evergreen personnel will call TD on surface hole. 4. Cement casing in place wI 1-3 bbl cmt wI cmt wt @ 15.6 ppg a. Water requirements - 5.2 gal/sk b. Slurry volume - 1.18 cu tUsk c. Leave 1" to 2" of cement in cellar for seal 5. RDMO Discovery drilling to next well. 6. MIRU Layne Christiansen CS 4000 core drilling rig. 7. Fill mud tanks wI city water. Make sure there is enough mud on site to mix kill wt mud if necessary. 8. WOC for 6 hours. 9. NU and test BOP. 10. Pressure test casing to 1500 psi. 11. Drill cmt and csg shoe. Drill 20 feet into new formation and POOH. 12. RIH with HQ core bit and barrel. 13. Core to Arkose Ridge formation. The well will be TD'd above this level if significant hole problems occur. a. Arkose Ridge formation: Fluvitile and alluvial feldsparic sandstone, conglomerate, siltsone and shale containing abundant plant fragments. b. The core will be described on site by Evergreen personnel or contractors in the following manner: i. Apparent texture variations 1. Fractures 2. Bedding plane attitudes ii. Apparent fluid variations 1. Presence of hydrocarbons iii. Apparent lithologic variations 1 . Rock type 2. Porosity 3. Sedimentary structure 4. Grain size 14. Evergreen personnel will call final TD. POOH wI last core inner tube. 15. Condition hole. 16. PU 30 ft off of bottom to make room for logging tools. 17. MIRU Reeves Wireline. Drop memory tools consisting of Gamma Ray, Sonic Porosity, Array Induction, Compensated Neutron Density and Caliper. 18. POOH and LD drill pipe, rods, core barrel and core bit and logging tools. 19. TIH wI "B" rods to TD. (Cmt calculations are based on TD=2500' and surface csg @ 200') a. Surface casing - (0.0157 4bbls/ft)(200') = 3.14 bbls b. HQ Hole - (0.01440 bblslft)(2300') = 33.12 bbls c. Total fluid required to fill hole - 36.26 bbls 20. Pump 3 bbls cmt and POOH 210 ft. 21. Pump 18 bbls (1250ft) of mud and cuttings and POOH to 1000 ft. 22. Pump 15.1 bbls cmt 23. POOH wI "B" rods. 24. Clean-up well site. 25. RDMO Layne Christianson to next hole. 26. WOC 24 hours. H I -' .L 27. MIRU DJ Excavation. ./ t 8 cu./ÄWte.T~r a. Cut 4" casing 3' below ~inal ground level. b. Weld 'y.¡" thick plate w/A?....diameter onto 4" casing. c. Plate must have the following bead welded information: i. Evergreen Resources ii. Permit to drill number (Number will be provided as soon as it is issued by AOGCC) Core Program 2003 APD iii. Well numbe_ e iv. API number (Number will be provided as soon as it is issued by AOGCC) d. Remove culvert and back fill cellar. 28. RDMO DJ Excavation. Core Program 2003 APD ':":"\ ;""::':<':. ::'~-,..:'~:>:~:,.::-. <.'''' .:', ":',: ï Surf~ce Gravel- 0 to 100' r.' > ;: :.( :.". :.~..': :'~~:<.;\~) /. ~~ '<:'..: 'i. .. ..: ~ þ.: .", .'. e Proposed Drilling Procedure e Core Program 2003 Matanuska-Susitna Borough, Alaska Core Hole Diagram 6" Hole to ± 100' 4" LP (4.5" aD, 4.026" ID, 3320 psi) @ ± 200' Cemented wI 25 sx Portland cmt Icoal Bearing Formation - 0 to 2500' I Arkose Ridoe Formation I Core Program 2003 APD Tyonek Formation HQ Diameter Hole (3.850") to 1800' 2.5" core. Log hole using memory tools latched into landing sub while pulling drill pipe. Rig Layout Diagram 9' .& R' 23' Core Solids Drill Control Van 40' " 20' Core 60' Handling Rods 0 Parts Trailer Water Truck De-Qasser Vehicle Parking " .. 45' · e e Proposed Telephone Contact List Core Program 2003 Matanuska-Susitna Borough, Alaska Company Address Name Telephone Evergreen Resources Inc. Suite 1200 Dennis Carlton Office: 303-298-8100 1401 Seventeenth Street Senior Vice President of Fax: 303-298-7800 Denver, Colorado 80202 Operations Evergreen Resources Inc. Suite 1200 Scott Zimmerman Office: 303-298-8100 1401 Seventeenth Street Vice President of Operations Cell: 303-981-3314 Denver, Colorado 80202 and Engineering Fax: 303-298-7800 Evergreen Resources Alaska P.O. Box 871845 Shane Gagliardi Office: 907-357-8130 Wasilla, AK 99687 AK Project Engineer Cell: 907-355-8569 Fax: 907-357-8340 Evergreen Resources Alaska P.O. Box 871845 Mike Bellowich Office: 907-357-8130 Wasilla, AK 99687 AK Project Geologist Cell: 907-232-9538 Fax: 907-357-8340 Evergreen Resources Inc. Suite 1200 Jerry Jacobs Office: 303-298-8100 1401 Seventeenth Street Environmental Manager Fax: 303-298-7800 Denver, Colorado 80202 Hampton & Waechter Suite 300 Noel Waechter Office: 303-825-7140 1645 Court PI. Denver, Colorado 80202 Layne Christiansen 2370 Steese Hwy. Shane Crum Office:918-322-3095 Fairbanks, AK 99712 Mobil 918-625-1668 Fax: 918-322-3829 MI Swaco 721 West 1st Ave. Dennis Jackson Office: 907-274-5501 Anchorage, AK 99501 Reeves Wireline 121 South Country Estates Bob Gales Office: 785-331-2933 Road, Liberal, KS 67901 Core Program 2003 APD Manufacturer: Size: Rating: Usage: e e Well Control Diagrams Core Program 2003 Matanuska-Susitna Borough, Alaska Cavins Oil Well Tools 4" 3000 psi Used for mineral exploration core drilling in Nevada. . ¡:=- .- :-;:,:~7~] ~,:/ ,; 'i:'>. ~. ~ . ..'" ¡;. , . ':...~'..,; .- .....,. (....::L ~ : ~.-.~ I~"""'" I : rr .": ":/: ;''' .... .. : I ...' ...'.'/. I ~ ; U~~;1'" " ..... ....:....:...".-' :.: I.....~ '. ~. '.-. ......-.--.--1: .,~.J. .~.¡.;~ ..\oF..... .:.' (t't t'·· : ;.._~-.:.: J¡J' . .. :i-: "." , ~ ":."~' . .-". ........ ~>¡ . . to· ." t- ,-" -i<,,":~~...Jj~i ,p,.' _.~- l<~·~~::.·,.~.,..,11' ; ,:~ ..,;:,:;~.. .. - ~- ._.. .... .. .. ~ i' .,' ..~.~. ! ! > ¡ ~ ¡ : ~; . ~ " I 1,01.1 I :..,~ \" ... ..........-.¡,r- . .. . .,: ' . v '. . '¡ ~~ ~i' :..,...j : ; !:~//:.::-:.. 'uv: ")"::'1 .. .'. ..~...,w : ;//.:;.:-- :..: ~" ~ .~~..~..:=:.- <OJ... - .. Cavins Annular BOP Cavins Annular BOP Schematic The combination Blowout Preventer and Sucker Rod Stripper combines safety and economy in a tool designed to perform the necessary function of line wiping. It can be operated from anywhere on the derrick floor utilizing pressure from bottled nitrogen, an optional hand operated hydraulic pump, or the optional BOP control system. When swabbing, a short lubricator the length of the swab between the master gate and the Blowout Preventer is all that is required. Pressure connection is for 1/4" A.P.I. pipe. The units are tested to give full closure up to 3000 psi well pressure with no leakage. The full closure feature of the Blowout Preventer will give a temporary seal, allowing ample time to close the master gate should a well blowout occur. BALL LOCK OIL SAVER The use of the Ball Lock Oil Savers by drilling and production departments has earned this service proven tool a reputation for trouble-free operation with simplicity. The CAVINS Ball Lock Oil Savers are made of high carbon steel and precision machined for demanding dependability and safety in a wide range of service applications. Exhaustive testing in the excess of 3000 psi is further assurance against failure or leakage. Incorporated in its design, which affords a cleanly wiped wire line, is its safeguard against blowout. One important feature of the Oil Saver is its automatic ball release design. Hardened Steel Balls hold the traveling assembly securely in the body until released by the upward travel of the Rope Socket. The Rubber Packing unit with its internal tins provide the ultimate in wire characteristics with only a normal pressure, or drag, on the line. The Packing Rubber is compounded of special abrasive and oil resistant properties to give the rubber longer wear. A tough spark-proof die cast alloy is utilized in the top and bottom line guides and enhances reduced wear in the rubber packing unit. A high quality leather hydraulic packing ring wards against leakage in the area between the body and the traveling assembly. The Hydraulic Bonnets provide an even greater degree of wiping efficiency. The wire line can be completely stripped of all oil, or water and an Oil Saver outfitted with a Hydraulic Bonnet foregoes the necessity of tools for "taking up" wear in the packing element. The one hand operation requires only a few strokes of the pump handle to give complete wiping action or turn the release valve when no wiping is required. The Hydraulic action affords a greater rubber contact surface as the packing rubber is compressed around the line. The line is completely surrounded and sealed from blow-out leakage by the action of the Hydraulic unit. There is no danger of packing rubber or other elements falling into the well. Ball Lock Oil Saver Core Program 2003 APD fï~ ~:J.~) "'~;'~' ':z . ;r '.. ...' ,·.r '.~"'~". ~.. _.. . o' r- ..;;;;i" ~ ';"1/ '%~ Hydraulic Pump and Hose e e Well Control Diagrams Core Program 2003 Matanuska-Susitna Borough, Alaska BOPE Diagram 1. Oil saver fitted with stripping rubbers to fit 3/16" slick line. Can be operated 2 manually andlor hydraulically. 3 2. Cross over from drill pipe thread to 4" API LP thread. 4 3. Relief valve for lubricator. 4. Lubricator made of HQ drill pipe. Rated to 4600 psi. 8 5. TIW (stabbing valve). Rated for 3000 psi. Used for shutting in drill pipe 10 to rig up for pulling core. 5 6. Drill pipe sitting in foot clamps during coring operation. 6 Rig Floor 7. Cavins 4" 3000 psi Annular BOP. BOP can be operated manually or hydraulically. Will be fit with rubbers to provide pressure control on the outer tube of the coring assembly. 18-5/8 Inches 8. 4" Full port 3000 psi valve. 7 13 Inches 9. Standard spool threaded to fit 4" line pipe connections wi two 2" ports that will be fitted wi 3000 psi full port ball valves. 9 ...... .. -r h>r-:,_~ ~ ~--:?J 10. 4" API line pipe surface casing. Kill Line Choke Line NOTE: ALL CONNECTIONS ARE THREADED 10 Core Program 2003 APD e e Tubular Information Core Program 2003 Matanuska-Susitna Borough, Alaska Drill Pipe (HQ) Size Pipe Weight 10 Drift Collapse Burst Tensile Capacity Capacity 6" Hole 6" Hole Annulus Annulus (in) Grade (ppf) (in) (in) (psi) (psi) (k-Ibs) (bbl/ft) (ftlbbl) (bbl/ft) (ftlbbl) 3.5 HMQ 4.5 3.188 3.188 3910 4600 88.46 0.00911 109.7 0.02307 43.35 Surface Casing Size Pipe Weight 10 Drift Collapse Burst Tensile Capacity Capacity 6" Hole 6" Hole Annulus Annulus (in) Grade (ppf) (in) (in) (psi) (psi) (k-Ibs) (bbls/ft) (ftlbbl) (bbl/ft) (ftlbbl) 4.5" LP X42 10.8 4.026 4.026 2650 3320 0.01574 63.51 0.0153 65.36 Sch 40 Core Program 2003 APD e e Core Program 2003 Matanuska-Susitna Borough, Alaska List of Exceptions For Drilling Exception #1 Regulation 20 AAC 25.030 - CASING AND CEMENTING. (f) Except for through-tubing drilling, a formation integrity test must be performed if BOPE is installed on a casing. The test must be performed to a predetermined equivalent mud weight, leak-off, or fracture pressure as specified in the application for the Permit to Drill. The test must be conducted after drilling out of the casing shoe into at least 20 feet but not more than 50 feet of new formation. The test results must demonstrate that the integrity of the casing shoe is sufficient to contain anticipated well bore pressures identified in the application for the Permit to Drill. The test procedure followed and the data from the test and any subsequent tests of the formation must be recorded as required by 20 MC 25.070 (1). Authority 20 AAC 25.030 - CASING AND CEMENTING. (g) Upon request of the operator, the commission will, in its discretion, approve variances from the requirements of (b) - (f) of this section to allow for special or unusual conditions if the design requirements of (a) of this section are satisfied. Justification No intermediate casing will be set and surface casing will be set relatively close to surface; therefore, a formation integrity test is not valid. Exception #2 Regulation 20 AAC 25.033 - PRIMARY WELL CONTROL FOR DRILLING: DRILLING FLUID PROGRAM AND DRILLING FLUID SYSTEM. c) A drilling fluid system intended to maintain the wellbore in overbalanced condition must include (1) a recording drilling fluid pit level indicator with both visual and audible warning devices located in the immediate area of the driller's station; (2) a drilling fluid measuring system or trip tank for accurately determining drilling fluid volumes required to fill the well bore on trips; (3) a drilling fluid flow sensor with a readout convenient to the driller's station to enable the operator to determine whether drilling fluid returns equal drilling fluid pump discharge rates; Authority 20 AAC 25.033 - PRIMARY WELL CONTROL FOR DRILLING: DRILLING FLUID PROGRAM AND DRILLING FLUID SYSTEM. G) Upon request by the operator, the commission will, in its discretion, approve a waiver of the requirements of (c) - (g) of this section if the alternative drilling fluid program and drilling fluid system meet the design criteria of (b) of this section and the corresponding equipment and procedures are at least equally effective in preventing the loss of primary well control. Justification The steel mud tank will be placed next to the drillers console in plain sight. There will be constant circulation of drilling fluids taking returns into the cellar. The mud system will have adequate volumes for maintaining the fluid level in the hole while tripping. For this process a couple of bit trips are anticipated per hole. Lost circulation is not anticipated as indicated by the previous drilling in the area. Other wells drilled in the area were drilled using air; during that drilling operation, gas influx was not an issue. There is no indication from past drilling that hydrogen sulfide gas will be encountered. Exception #3 Regulation 20 AAC 25.035 - SECONDARY WELL CONTROL FOR PRIMARY DRILLING AND COMPLETION: BLOWOUT PREVENTION EQUIPMENT AND DIVERTER REQUIREMENTS. (c) (1) (A) of at least 16 inches, unless a smaller diameter is approved by the commission to account for smaller hole size, geological conditions, rig layout, or surface facility constraints. (B) the actuating mechanism for the vent line valve must be integrated with the actuating mechanism for the annular pack-off device in a fail-safe manner so that the vent line valve automatically opens before full closure of the annular pack-off; (C) the vent line must extend to a point at least 75 feet Authority 20 AAC 25.035 - SECONDARY WELL CONTROL FOR PRIMARY DRILLING AND COMPLETION: BLOWOUT PREVENTION EQUIPMENT AND DIVERTER REQUIREMENTS. Core Program 2003 APD (h) Upon req_ of the operator, the commission will, in its dis&n, approve a variance (1) from the BOPE requirements in (e) of this section if the variance provides at least an equally effective means of well control; and (2) from the diverter system requirements in (c) of this section if the variance provides at least equally effective means of diverting flow away from the drill rig or if drilling experience in the near vicinity indicates that a diverter system is not necessary. Justification The largest hole size being cored is only 3.85 inches. A 16 inch diverter vent line is not necessary. Due to the size of the location, manual valves and adjustable chokes would be sufficient to provide pressure control. The DNR states that the locations should be placed such that minimal surface damage is caused; therefore, the proposed location sizes are 45' x 65'. The location size is smaller than the required length of the vent line. Exception #4 Regulation 20 AAC 25.035 - SECONDARY WELL CONTROL FOR PRIMARY DRILLING AND COMPLETION: BLOWOUT PREVENTION EQUIPMENT AND DIVERTER REQUIREMENTS. (e) (1) (A) for an operation requiring a BOP stack equal to or less than API 5K, BOPE must have at least three preventers, including (i) one equipped with pipe rams that fit the size of drill pipe, tubing, or casing being used, except that pipe rams need not be sized to bottom-hole assemblies (BHAs) and drill collars; (ii) one with blind rams, except that a subsea BOPE assembly must have blindlshear rams in place of blind rams; and (iii) one annular type Authority 20 AAC 25.035 - SECONDARY WELL CONTROL FOR PRIMARY DRILLING AND COMPLETION: BLOWOUT PREVENTION EQUIPMENT AND DIVERTER REQUIREMENTS. (h) Upon request of the operator, the commission will, in its discretion, approve a variance (1) from the BOPE requirements in (e) of this section if the variance provides at least an equally effective means of well control; and (2) from the diverter system requirements in (c) of this section if the variance provides at least equally effective means of diverting flow away from the drill rig or if drilling experience in the near vicinity indicates that a diverter system is not necessary Justification Being a mineral exploration rig, this equipment is not set up to easily accommodate blowout prevention equipment. The size of the rig and the size of the surface casing indicate that a small bore BOP is required. A Cavins 3000 psi annular BOP is requested to satisfy this portion of the secondary well control requirements. There will be no pipe rams and the blind rams will consist of a full port valve placed below the annular preventer. The annular can be closed either manually using a hand pump or by using rig hydraulics. Exception #5 Regulation 20 AAC 25.035 - SECONDARY WELL CONTROL FOR PRIMARY DRILLING AND COMPLETION: BLOWOUT PREVENTION EQUIPMENT AND DIVERTER REQUIREMENTS. (e) (4) (A) a hydraulic actuating system with (B) locking devices on the ram-type preventers; (D) in rotary drilling rig operations, one complete set of operable remote BOPE controls on or near the driller's station, in addition to controls on the accumulator system (F) a kill line and a choke line each connected to a flanged or hubbed outlet on a drilling spool, the BOP body, or the tree, with two full-opening valves on each outlet, conforming to the following specifications: ii) the outer valve on the choke side must be a remotely controlled hydraulic valve; (H) a choke manifold equipped with (i) two or more adjustable chokes, one of which must be hydraulic and remotely controlled from near the driller's station if the operation requires a BOP stack equal to or greater than API 5K; Authority 20 AAC 25.035 - SECONDARY WELL CONTROL FOR PRIMARY DRILLING AND COMPLETION: BLOWOUT PREVENTION EQUIPMENT AND DIVERTER REQUIREMENTS. (h) Upon request of the operator, the commission will, in its discretion, approve a variance (1) from the BOPE requirements in (e) of this section if the variance provides at least an equally effective means of well control; and (2) from the diverter system requirements in (c) of this section if the variance provides at least equally effective means of diverting flow away from the drill rig or if drilling experience in the near vicinity indicates that a diverter system is not necessary. Core Program 2003 APD Justification The proposed BOP does not have rams. This rig is not configured to have an additional set of BOP controls near the driller's console, this rig does not use BOPE on a regular basis when conducting mineral exploration. This rig is not equipped to run hydraulically operated chokes; therefore, manual adjustable chokes are requested. Due to anticipated low pressure, threaded connections are requested for the entire operation. e . Exception #6 Regulation 20 AAC 25.035 - SECONDARY WELL CONTROL FOR PRIMARY DRILLING AND COMPLETION: BLOWOUT PREVENTION EQUIPMENT AND DIVERTER REQUIREMENTS. (e) (10) (F) be assembled without hammer unions or internally clamped swivel joints, except that hammer unions and internally clamped swivel joints may be used on the kill line upstream of the valves that are flanged to the wellhead or tree. (e) (9) connections directly to the BOPE, other than connections described in (8) of this subsection, must be flanged or hubbed, except that suitably pressurerated quick connects may be used if a positive seal manual valve, hydraulic valve, or BOPE blind ram and an annular type preventer or sealing ram are flanged to the wellhead or tree below the quick connection; Authority 20 AAC 25.035 - SECONDARY WELL CONTROL FOR PRIMARY DRILLING AND COMPLETION: BLOWOUT PREVENTION EQUIPMENT AND DIVERTER REQUIREMENTS. (h) Upon request of the operator, the commission will, in its discretion, approve a variance (1) from the BOPE requirements in (e) of this section if the variance provides at least an equally effective means of well control; and (2) from the diverter system requirements in (c) of this section if the variance provides at least equally effective means of diverting flow away from the drill rig or if drilling experience in the near vicinity indicates that a diverter system is not necessary. Justification The proposed BOP does not have rams. Request that all connections be threaded and hammer unions be approved. Anticipated surface pressure will be well within the pressures ratings of all BOPE. This well head is not intended to be a permanent fixture for production. Exception #7 Regulation 20 AAC 25.035 - SECONDARY WELL CONTROL FOR PRIMARY DRILLING AND COMPLETION: BLOWOUT PREVENTION EQUIPMENT AND DIVERTER REQUIREMENTS. (e) (6) (F) be assembled without hammer unions or internally clamped swivel joints, unless the commission determines that those joints do not compromise maintenance of well control; (e) (8) connections attached directly to the wellhead, tree, or BOPE must be flanged or hubbed; Authority 20 AAC 25.035 - SECONDARY WELL CONTROL FOR PRIMARY DRILLING AND COMPLETION: BLOWOUT PREVENTION EQUIPMENT AND DIVERTER REQUIREMENTS. (h) Upon request of the operator, the commission will, in its discretion, approve a variance (1) from the BOPE requirements in (e) of this section if the variance provides at least an equally effective means of well control; and (2) from the diverter system requirements in (c) of this section if the variance provides at least equally effective means of diverting flow away from the drill rig or if drilling experience in the near vicinity indicates that a diverter system is not necessary. Justification Request that all connections be threaded and hammer unions be approved. Hammer unions to be used are rated for 5,000 psi. Anticipated surface pressure will be well within the pressures ratings of all BOPE. This well head is not intended to be a permanent fixture; and intended annular BOP is threaded. Exception #8 Regulation 20 AAC 25.035 - SECONDARY WELL CONTROL FOR PRIMARY DRILLING AND COMPLETION: BLOWOUT PREVENTION EQUIPMENT AND DIVERTER REQUIREMENTS. (e) (9) (A) an inside BOP and a full-opening drilling assembly safety valve in the open position on the drill rig floor to fit all connections that are in the drilling assembly; Authority 20 AAC 25.035 - SECONDARY WELL CONTROL FOR PRIMARY DRILLING AND COMPLETION: BLOWOUT PREVENTION EQUIPMENT AND DIVERTER REQUIREMENTS. (h) Upon request of the operator, the commission will, in its discretion, approve a variance (1) from the BOPE requirements in (e) of this section if the variance provides at least an equally effective means of well control; and Core Program 2003 APD (2) Atthe diverter system requirements in (c) of thisetion if the variance provides at least equally effective means of diverting flow away from the drill rig or if drilling experience in the near vicinity indicates that a diverter system is not necessary. Justification The use of a continuous core system prevents the use of internal check valves. A lubricator system will be employed when the core is to be retrieved. Exception #9 Regulation 20 AAC 25.050 WELLBORE SURVEYS. (a)(3) surveyed by a complete continuous directional survey if a portion of the well path is less than 500 feet from a property line where the ownership by owner or landowner is not identical on both sides of the line, or if a portion of the well path is less than 200 feet from any other vertical or deviated well; the survey must be taken at intervals not more than 100 feet apart, beginning within 100 feet of the surface. Authority 20 AAC 25.050 WELLBORE SURVEYS. (h) Upon application, the commission will, in its discretion, waive all or part of the directional survey requirements of this section or approve alternate means for determining the location of a wellbore if the variance at least equally ensures accurate surveying of the wellbore to prevent well intersection, to comply with spacing requirements, and to ensure protection of correlative rights. Justification Request that inclination surveys every 500 feet as stipulated in 20 MC 25.050 (a) (2) be adequate for this operation. There will be no production from these wells; therefore, spacing requirements and correlative rights should not be an issue. Exception #10 Regulation 20 AAC 25.055 - DRILLING UNITS AND WELL SPACING. (a)(2) for a well drilling for gas, a wellbore may be open to test or regular production within 1,500 feet of a property line only if the owner is the same and the landowner is the same on both sides of the line Authority 20 AAC 25.055 - DRILLING UNITS AND WELL SPACING. (d) The commission will review an application for an exception to the provisions of this section in accordance with 20 MC 25.540. The applicant for an exception shall send notice of the application by certified mail to the owners, landowners, and operators described in (1) of this subsection and shall furnish the commission with a copy of the notice, the date of mailing, and the addresses to which the notice was sent. The application must include (1) The names of all owners, landowners, and operators of all properties within 1,000 feet of a well drilling for oil or within 3,000 feet of a well drilling for gas for which an exception is sought; (2) A plat drawn to a scale of one inch equaling 2,640 feet or larger, showing the location of the well for which the exception is sought, all other completed and drilling wells on the property, and all adjoining properties and wells; and (3) An affidavit by a person acquainted with the facts, verifying that all facts are true and that the plat correctly portrays pertinent and required data. Justification These wells are intended for stratigraphic testing only; therefore, no gas production or sales will result from any of these wells. The above listed requirements will be met. Exception #11 Regulation 20 AAC 25.061 (a) - Well Site Surveys For an exploratory or stratigraphic test well, near surface strata to a depth of 2,000 feet in the vicinity of the well must be evaluated seismically by common depth point refraction or reflection profile analysis, or by another method approved by the commission, to identify anomalous velocity variations indicative of potential shallow gas sources. Analysis results must be included with the application for the Permit to Drill (Form 10-401). Authority 20 AAC 25.061 (c) - Well Site Surveys Upon request by the operator, the commission will, in its discretion, waive the requirements of this section if the operator can identify, by other equally effective means, the likelihood of encountering potential shallow gas or seabed hazards or if the commission already has information that substantiates the presence or absence of shallow gas or seabed hazards. Core Program 2003 APD Justification Several wells have been drilled in the area through the intended formations without incident. Drilling history in the area indicates that over pressured shallow gas is not going to be a problem; therefore, seismic data collection and interpretation would be an unnecessary expense. e . Core Program 2003 APD Nad 27 Coords for Core Wells . . Subject: Nad 27 Coo~9s for Core Wells From: ShaneQ'åg1iat;fi <ShaneG@EvergreenGas.com> Date:~ön, 15:'lDec 2,~()3 15:12:46 -q?ºq ..m mm ... ..... Jfo~r:Fleck~steÎ11::<bob_.J1eckens_~.mØl$tat~Ik~~s>,... Bob, Here are the coords (in NAD 27) for the core wells. Little Su - N = 2813373.15 E = 633118.22 Houston Pit - N = 2791671.87 E = 526782.80 Willow Fishhook - N = 2838106.12 E = 504445.60 Kashwitna Lake - N = 2866054.57 E = 487747.09 Sheep Creek - N = 2918957.46 E = 489689.87 ç: 0 \Àr/'\.-«-.'/ S u...v v ZJv.¡ 0 v I think that most internet converters can convert Lat Long coords to NAD 27 without a problem. I have found several free programs that can do this. At this point, the standard has become NAD 83 due to the increasing number of handheld GPS tools. Thanks, Shane 1 of 1 4/7/2004 8:08 AM Dee 05 03 05:56p DH e NOTES: ,. COORDlNA 1£5 SHOWN ARE NAD 83 ALASKA STAlE i>LANE ZONE 4 BASED ON PROTRAClED VALUES. 2. GEOGRAPHIC COORDINATES ARE NAD 8~ BAW 00 PR01RAClID· VALUES. J. All DISTANCES ME GROUND IN U.S. SURVEY FEET. 4.. \/ERllCAL DATUM IS BASED ON NGS CONTROL. BENCHMARK N-IO+. EL "" 222.22' SHEEP CREEK :lt1 LOCA"lED 417' f'R()J WE NORTH UNE Of SECTI()I 20 AND 1505' FRŒJ 1HE VEST UNE OF SECTION 20 T 22 N, R 4- W, SEWARD ~RIDI AN AT LAT. 61'59'18.000"N LONG. 15ð"<l3'4-3.91a"W ASP ZONE 4 N..291B71B.89 E..162972O.94 (NAD BJ) GROUND ElEVATION = 2;'0.6· 907.357.8340 . VlCINTY MAP SCALE 1" = N lðd7 I'B 20 S 89·5.3'49" E 13.31.33' 39B3.7D· 'io ~ "" N ~ SCALE 1 D = 600' " CJ o '(x) g :z: SECTION 20 T22N. R4W. S.M. ALASKA o 19 l/4~O SHEEP CREEK #1 PERMIT DRA'MNG DRAV\N KWA I CHECKED KWA I SCALE " "" 600' S 89·55'02" E CD, WI/16 ~ cè ~ 1505.26' SH EEP~ CREEK iï---'\Vf .)... f£ ¡ I:; ~ <1.. p.6 '5 22 N . 27 r- MILE 17 16 ~21 @LOUNSBURY & ASSOCIATES, INC. SURVEYORS-EN~NEERS-PLANNERS 72:3 w. 6th AVE. ANCHORAGE,. ALASKA eg501 (907) 272-5451 FAX (907) 272-9065 December 04, 2003 I DWG NAME 03-031-9.DWG Dee 17 03 02:57p DH =V=I~GI~==I'le RESOURCE.(ALASK~COR~ A SubsidlBry 01 E.erg~n Resources, Inc, 907.357.8340 e p.2 December 12, 2003 Mr. Bob Crandall Alaska Oil and Gas Conservation Commission 333 W. 7th Ave #100 Anchorage, Alaska, 99501-3539 RE: Additional Information for Evergreen Resources Alaska's Core Program 2003 Resulting from Conversation with Commissioner Seamount Dear Mr. Crandall: As a result of conversations with Commissioner Seamount, Evergreen will monitor water produced during the surface hole drilling process for salinity. Evergreen professionals will be on location with field measuring equipment to determine the depth at which a significant change in water salinity occurs. The change in water salinity as measured by Evergreen professionals will dictate the surface casing set depth for each of the wells in the core drilling program. The use of this method will ensure that the portion of the surface hole used for drinking water is protected. In the event that a deviation in water conductivity is not noticed, the Alaska Oil and gas Conservation Commission will be notified before casing is set. If you have any questions, please feel free to contact me at 907-355-8569 or shaneq@evergreenqas.com. ß'$' Shane Gagliardi Petroleum Engineer 1075 Check Street, Suite 202 . Wasilla AK 99654 p.D. Box 871845 . Wasil/a. AK 99687 . TEL 907.357.8130 . FAX 907.357.8340 =\I=I~GI~==I'le RESOURCES(ALASKA)COR~ A Subsidiary of Evergreen Resources, If)(;, December 5, 2003 Ms. Sara Palin, Chair Alaska Oil and Gas Conservation Commission 333 West Ave., Suite 100 Anchorage, Alaska 99501 RE: Application for Permit to Drill: Core Program 2003 Target: Tertiary Tyonek Proposed TD: 3000 Feet Proposed Spud Date: 10-December-2003 Dear Ms. Palin, . Evergreen Resources Alaska Corporation hereby applies for a Permit to Drill for the subject core wells located approximately 30 miles north of Anchorage. The wells are planned as a shallow, straight holes drilled to evaluate the producibility of the Tyonek Coals. A core drilling company currently operating in the Fort Knox gold mine will be used to provide a continuous wireline coring operation. The rig to be used is a CS-4000 that is typical for mineral exploration. A six inch hole will be drilled through the glacial gravel section and a string of 4.5 inch line pipe will be cemented in place. Once the cement has hardened and the appropriate test has been conducted for casing integrity, an HQ hole (3.875" diameter) will be drilled to TO. A logging suite consisting of gamma ray, array induction, compensated neutron density, caliper and sonic porosity tools will be run. After all cores have been retrieved and logs run, the hole will be permanently abandoned. Attached is information required by 20 AAC 25.005 (a) and (c) for your review. Due to the differences in equipment and methods used for mineral core drilling, Evergreen requires several variances from current AOGCC regulations. The designated contact for reporting responsibilities to the Commission is Shane Gagliardi, Alaska Projects Engineer, office: 907-357-8130 or cell: 907-355-8569. Sincerely, Evergreen Resources (Alaska) Corporation ß .¿£O~ Shane Gagliardi Alaska Projects Engineer enclosures ORIGINAL Core Program 2003, APD 1075 Check Street, Suite 202 . Wasilla AK 99654 RECEIVE'O DEC - 5 2003 Alaska Oil & Gas Cons. Commission Anchorage roo·,.. "_.................... 1..__",,_ .."..."""'...... "",.., ............,.............,..."1 _ r-AV^""""'~"7"'''''''' e e Conditions of Approval Evergreen Resources (Alaska) Corp. Sheep Creek #1 (PTD 203-208) 1. Per 20 AAC 25.030 (g), the formation integrity test requirement is waived. 2. Per 20 AAC 25.033 0), the drilling fluid system requirements are waived. 3. Per 20 AAC 25.035 (h) (1) and (2), the BOPE and diverter requirements are waived. 4. Per 20 AAC 25.050 (h), alternate well bore directional survey intervals are approved. 5. Per 20 AAC 25.061 (c), the near surface survey requirement is waived. 6. Test BOPE to 1500 psi. 7. Abandonment plug cement volumes may be adjusted dependent upon actual subsurface conditions. .e r. Permit to Core Drill Date of Permit: December 2, 2003 Core Hole: Sheep Creek #1 PERMIT TO CORE DRILL WHEREAS, K~yin R. Collins of ... . Dcnvet... County, _ Colorad~ , hereinafter called "Grantor" (whether one or more), is the owner of certain shallow gas Jea$ehold rights ("Lease Rights") covering the foIlowing described land situated in SEEA TTACHED EXHIBIT "A" containing. 265.58 acres more or less, to-wit: NOW THEREFORE, for and in consideration of the sum of . n ten and more ($10.00+) Dollars, c~h in hand paid, receipt ofwnich is hereby acknowledged, and other good and valuable considerations, Grantor hereby gives and grants 10_ Evergreen Resources. Inc; ... . Of D.enyer .. County, ._ Colorado... , hereinafter caned "Grantee", the right, to the extent and only to the extent that Grantor has such rights under the Lease Rights, to enter upon said land or premises with such equipment, and machinery as may be needed, and to explore and test for geological information and to drill and core to evaluate all minerals, including oil and gas. Grantee agrees to pay Grantor herein the sun1 of ten and m~re dollars ($ I 0.09t) for each holc actually drilled by Grantee 011 said land or premises as full liquidated damages, payable after said hole or holes have been drilled; and, Grantee agrees to be responsible for any damage to growing crops, gates, fences, buildings and other improvements on said land or prcmises caused by its operations thereon and shall release and indemnitY Grantor from any claims arising from such operations. Grantee agrees to comply with all federal and state laws, rules and regulations, and will comply with all provisions of the applicable lease. All terms and conditions of this agreement will extend to and be binding upon the heirs, administrators, executors, successors and assigns ofthc respective parties hereto. Grantor makes no warranties oftide of any nature relating to the tease Rights or the lands covered hereby. Signed for Identification this c.Jik- day of December 2003. KJohn Buckel)', . ~nd Manager ACKNOWLEDGMENTS FOR USE IN ARIZONA. OREGON, NEBRASKA, KANSAS, COLORADO WYOMING, NORTH DAKor A, NI:!W MEXICO STATE Of COLORADO COUNTY OF DENVER ) :5S. (IndivíduaJ($) Acknowledgment) ) The foregoing instlUment was acknowledged before me thi~day of hu~. ,._.-> 2003 By Kevin ß,..Collins STATE OF COLORADO ) :ss, (Corporate Acknowledgment) ) , ~ Y~Á- f). "1nA Ät.ÅV~.,,'\~~l¡I!IUJ"~'J,'''J\ ~r::: Public \h~ JO ;t"'J .. ">1!, '-.r~' ."....., ~A ~ ~..... 4. ~(ir' ~ J~.. ..:~\ , £f'.:tf,,\ 0 T Ai-? Y ..~~ =:i:- :,.."' ¡ 2: ~"""'pþ--æ %t~·. Pu 8 L lO/~i ":::::À.t·. . ..u 9~~. t:.~;1iX.1II .0 ·.n~8 ~ :~.t:-- "'. . .. ~~ . 2003 ~q1114! L"'1p CCJ.::.~{J.'" ~'IJJ;tùJ~ My Commission expires: ~( ;;;'005 cOu:r,try OF DENVER Th~ fo~gQing instlUment was acknowledged before m~ tflisØ day of Ut:.E"¡II1~~ By John O. Buckley, r.and Manlll:Cr Of Ev~~reen Resources. Tnc.. .a C,plorado . ;oA'th ~ behalf of 1he corpo~!Jo~:¡t~;,·_<:~ ..' (lk~ .... l~l~~~~;?/i\ N~Ublie ,~.v,,: ~ ~~...' :..1::' '~~:~~f~:;é~¡ My Commission expires: My GOnYnission Expir~ 01/2.9/2007 900/600 ~ S3~MnOS3H N33H~M3A3 OOSL g66 COC YVd C6:S1 C006/91/61 . . Exhibit' A' Attached to and made apart hereof to that certain Permit to Core Drill dated December 2,2003, by and between Kevin R. Collins, ("Grantor") and Evergreeo. Resources, Inc., ("Grantee") ADL 389302 Kevin R.. Collins T. 22 N., R 4 W, SEWARD MERIDIAN, ALASKA. SECTION 20, SURVEYED, FRACTIONAL, W2NW4NE4, W2SE4, W2NE4SW4, NW4SE4SW4, W2SW4, N2NW4, EXCLUDING U.S. SURVEY 9033 LOT 7 265.58 ACRES 900/COO ~ S3~HnOS3H N33H~H3A3 009L 966 COC IVd C6:ST C006/9T/6T 12/17/2003 09:05 9073337889 .e W 0 VALLEE PAGE 02 e T22N, R4W, SEWARD MERIDIAN, ALASKA SHEEP CREEK # 1 ) \; --" I ~~ r···¡ I,..." I; ¡-..-") \ I ¡..r.' . 3& . (l, ~ . ~)( øz( y_\:.", From U_S.G.S. Topographic Maps ANCHORAGE (D-8) TYONEK (0-1) TALKEETNA (A-1), TALKEETNA MOUNTAINS (A-6 12117/2003 09:05 9073337889 e . .' .. .............. ...- W 0 VALLEE =~GR==N ... ' ~. ,." St eep':Creek #1 . .n. ,. ,.~..... __.. "" "..... "N"'" '. ~ , . .. ;:,"" ~:' ~: ". ". ¡ .¡. ,.' " .,. ~:' : ,,', ~(':" ~.". ',~ r" .~ ",," i ",:,;:' '.' ~" .,. I,', '-, ¡:. .' " ;" ....;¡J/t . " " '" .'\: "''''-'1- '10...\:'''-' , . "'> ,,." ,. ~;:'~; ,{,'; .:,', .;~'.' ,.--......... ...-... '"J , \ " ~-- ·1;r... .... .~~:-...-_.._~._--_. .'~ ." ;' ~ ",;.; ~.. .,------.--- , 0" ! '; . .01;. .'" ..._~. '. .......,... . '. . . '-..;, _"AiIIIb .'~' ',. I' / ",_, ,.. t . -~\ --..,....... .. ']' .-..--.. ---_.,·.,..·""'...·...."''''''.·H··_. ...."....~......_- .,. ...1,,\ ..",. \:s;;~rl~1~:\~~ß¡¡~:~~;~~~~~'····· .,' ~ '- . ... ....,. -Page 26- ,,' PAGE 03 "",:,,~ .;.) · ~ ~ '.:~ ':" ., · .,'~ " ~ :r. '",- ;,:'\. t:.i '.,:{ .j ., ":'' · .. .: :~ ".,~ " '.:~ '.' :; , ~ ~ ,,: ~ ,,', :j ".1 .': · 'I ". .1 YJ :'::~ :,:¡ >.:' '.-f' ...t!. '::,J' :~', ¡ " " ::',' ,'. .... ::...: ,.. '., . .: ,I :....: '.1 . . ., ~.' ... Alaska Department of Natural Resources Recorder's Offi... http://www.dnr.state.ak.us/las/Case_Abstract.cfm?FileT... e e I"" !~V·~:~j(::',)1 ':¡,,(, to th,'..~ .., .Allaska Department of Natural Resources '!;;" r~: r)j i, 'wi.,' ....."..,."".,.""'""."''''""".""."..".".,,.. !...;.I.I~!j ..\.!i.nlin¡'!:·a¡i"n>,~~,':I·I'~!("\¡¡. I.('I"(-dil ('¡r~!..!'a~ 'T!",I)! Land Administration System Case Abstract Information File Type: fÄD"L····- File Number: I 389302 See Township, Range, Section and Acreage'? (è Yes C No New Seareh i C~ISI' Summan' Cas(~ Detail II.and ;\I,\trad File: ADL 389302 As of 12/1 5/2003 Customer: 000038516 KEVIN R. COLLINS 6783 S. YATES COlJRT LITTLETON CO 80128 Case 1):pe: 789 O&G SrlALLOW NA"LGAS LEASE DNR Unit: 780 orr. AND GAS File Localio//: DOG DIV OIL AND GAS Case Statl/s: 35 rSS/APPRV/ACTV AUlll Status Date: OS/27/2003 Total Acres: 4016.100 Date Initialed: 02/29/2000 Office (4Pri/ll{JIy Resp()//sibili~r: DOG DIV OIL AND GAS I.ast IhwsaclÙm Date: 12/05/2003 Case SubtJ1Je: SC SOUTlICENTRAI. RLCìIO:\ I.ast Transactio//: C'l-INGSL!B CHANGE CASE SUBTYPE ¡Vleridian: S Township: 022N Range: 004W Section: 19 Total Acres: 625 Meridian: S Tmvnship: (22)\; Range: 004W Section: 20 Total Acres: 266 Meridian: S ~(nl'ns/¡ip: 022N Range: 004 \V Section: 30 fOlaf Acres: 326 Meridian: S fownship: 022N Range: 004 \V Seel ion: 29 Tota! Acres: 616 Meridian: S Township: 022N Range: 004W Section: 28 rotal Acres: 320 ;\4eridian: S fownship: 022N Range: 004 \V Section: 31 fota! Acres: 628 Aferidian: S Township: 022N Range: 004W Section: 32 Total Acres: 596 ¡'vleridian: S Township: 022N Range: 004\\1 Section: ..,.., Total Acres: 640 JJ ":::1. Case Actions 02-29-2000 APPLICATION RECEIVED 10f4 12/15/20033:10 PM Alaska Department of Natural Resources Recorder's Offi... http://www.dm.state.ak.us/las/Case_Abstract.cfm?FileT... e e STATUS II II APPLICATION RECf) SSG APPUCATlO¡Y FILED BY KEVIX R. (:OUIXS FOR 1'22 N R 4 WSMSIX.'S 19-2 1& 28-33. 06-20-2000 PUBLICATION DIRECTED PC/JUt'ATlON OF PCBUC NOl'lCl~' ORDHRED FOR 6/2()/2()OO IN lHI~' A;\,(.'IIOIVIGE DAll.Y:\Elt:", KENAI PEN[¡\~)l./LA CL1RIOV AXD FRONTIERX\·l,I,V. 06-20-2000 COMMENTS PCBUC NOTICE ADDHD TO S1~1 rE'S ON-Lllv"E PUBLIC NOnCH WHBS/TE AND SENT TO POSrMASTERS iN AREA OF APPUCATION FOR PUBLIC POSTING. 06-30-2000 PROOF OF PUBLICATION RECEIVED PROOF OF PUBLICA nON CDUIFIED BY ANCHORAGE DAlLY NEWS & FRONTIERSMAN ON 6/23/2000 AND PENINSUl.A ClARION ON 6/30/20()O. 01-16-2003 LAND WITHINSECTION (5) CHANGED NEW TOTAL AC 4016.100000 OLD TOTAL AC 5760 CORRECTION' AF1ER UTL.!:: SEARCll. 01-16-2003 DELETE LAND SECTIONS FROM CASE TTI, SECTIONS DELETED I TOTAL ACRES DELETED 640 02-07-2003 FINAL l)[CISION FI.VA I, DH:ISIO,V SiG,V ED 2/6/2003 A P P NO VING TIlE A Jf:'IRlJ OF A U~ASE. LEASE IS 10 BE AWARDED FOLLOIViNG 1lŒ CU)SE OF TIlE APPEAL PERIOD. 03-27-2003 INITIAL OWNER SI~CìMENT CODE I CID NUMBER 000038516 COLUNS, KEVIN R. \VORKIi\G I~TEREST % 100 ROY ALTY INTElusr % 93.750000 03-27-2003 INITIAL OWNER SEGrv1ENT CODE I cm 1\UìVmER 000005467 STATE OF ALASKA ROYALTY INTEREST % 6.250000 03-27-2003 NOTIFICATION LESSEE DESIGNATED NEW REI. (20) 20 NOTIFICATION LESSEE 20f4 12/15/20033:10 PM Alaska Department of Natural Resources Recorder's Offi... http://www.dnr.state.ak.us/las/Case_Abstract.cfm?FileT... e e OLD REI. CODE 21 DISPOSAl, NAI\·IE NOTIFICATION Cll) NUMBER 38516 COLLI?\;S. KEVIN R. OLD cm # 38516 COI,LINS. KEVIN R. 03-31-2003 /\.W ARD/NON-OBJECTIOr-.;/INTERIM AUTIIORIZATION R&B ST ATLJS 21 21 A \VRDiNON-OBJ/INTERIM 05-27-2003 ISSUE/APPROVE/ACTIVE AUTHORIZATION R&B EFFECTIVE DATE 06-01-2003 EXPIRA TN DATE 05-31-2006 STATUS 35 35 rSS/APPRV/ACTV AUTH 05-29-2003 STATUS PLAT UPDATE REQUESTED ATTACHMENTS SENT (Y,N): N NO ADD TO STATUS PLA7:S' 10-07-2003 STATUS PLAT UPDATED REQUESTED TRANSACTION: SPUR STATUS PLAT UPDT REQ ACTION TAKEN: C COMPLETED ADD TO STATUS PLATS 12-05-2003 CHANGE CASE SUBTYPE CASE SUBTYPE SC SOUTHCENTRAL REGION X Legal Ucscription 01-16-2003 *** F"\~1L LEGAL DES'CRIPT!O¡\Ï *** T. 22 S.. R. 4 IY, SEWARD /vŒRmIA.Y. ALASKA. SEC'7JO,\' 19, SURVEYED, FRACTIONAL, G/.O un:\' I TlIRU 5 I.\"CH,S/V/~·, 123.40 ACRES: SECTION 20, SúRVEYED, FRACTIONAL. H-'2.VIV4.VI~-I, W2SE4. W2NE4SW4, .\lV4S/:'4SW-I, W2SWI, ,V2!\ï-V4, 1:.....'I((:U/DI.\-(ì u.s. SURVEY 9033 l.OT 7. 265.58 ,1 CRES:SEC T Sf.:CI"/O,v 28, Sl/RVEY/~'f.), W2, 320.00 ACIŒS: SLCïJO,v 29, SLRVEYED, FRAC71o.\AI" ,11.1-, EX('lCIJI.VG c:s. SCRV/~T C)033 Lor 6, 615.5ì ACRFS: SECT/OX 30, SURVEYED, FR,·ICTlONAL, G/,O I. (FrS 2 AS!) 5. 1~'2.VE4, SW4SI:"4, SE4SW4, OSI. 10/4 (LOr 5, HU)CK 8 TilE IJU':Ff~S' ON SC'SlnA PIl4SL O.VI~). AND OSL I05C) (N2:\"E4 OF GLO LOT 3), 30f4 12/15/20033:10 PM Alaska Department of Natural Resources Recorder's Offi... http://www.dm.state.ak.us/las/Case_Abstract.cfm?FileT... e e 225.11 ACRES; SECTION 31, SURVEYED, FRACTIONAL, ALL, INCLUDING THE BED OF THE SUSITNA RIVER, 628.25 ACRES; SECTION 32, SURVEY, ALL, EXCLUDING W2NW4SW4NE4, SE4SE4NW4, S2NE4SE4NW4, AND Us. SURVEY 9033 LOTS 1 THRU 5 INCLUSIVE, 595.63 ACRES; SECTION 33, SURVEYED, ALL, 640.00 ACRES; T. 22 N, R. 4 W, TRACT A, SEWARD MERIDIAN, ALASKA. SECTION 19, SURVEYED, FRACTIONAL, ALL, INCLUDING THE BED OF THE SUSITNA RIVER AND SHEEPCREEK SLOUGH, 501.23 ACRES; SECTION 30, SURVEYED, FRACTIONAL, ALL, INCLUDING THE BED OF THE SUSITNARIVERAND SHEEP CREEK SLOUGH, 101.33 ACRES; THIS TRACT CONTAINS 4,016.10 ACRES MORE OR LESS. End of Case Abstract aèK··.1 Land Administration Svst(~m Menu I Land H{~c(}rds/Status Plats I i)t'pt. of1\¡¡tural Hesoun:es Home Page I fitate of Alaska UomePagc I COPHight I Privacy I Disclaimer Last updated on 12/15/2003. Report technical problems with this page to the Webmaster. best with 4.x or newer version of Internet also requires that all COOKIES must be 40f4 12/15/20033:10 PM Ëvergrèen Résoor2és (Alaska) 1401 17th Street Suite 1200 Denver CO 80202 303-298-8100 .~ntrolle<:l Disburse en count-· . HibernÎa National Bank·· Check Date ~héCk .Amou nt 0077000726 12/08/2003 "************$100.00 . . One Hundred DollarsandZerdCents ',"" .. Alaska Oil and Gas Conservation Commissidn 333 West 7th Avenue #100 e AK 99501·· ,";'<'i':"""\ u-,.: . . . .0 118:'7 ~.: 'PLEASE DETACH AT PERFORATION ABOVE' "L~~~~:~"~'~~_______________,_~_~:='~Lt_____.____,___~'~~·~',__,~_~~~,~~_____"i~{~¿_"_ ·PLEASE DETACH AT PERFORATION ABOVE' :V:I~GI~::I\I EVERGREEN RESOURCES. INC. Invoice # 112403SG1 ~. 11124/2003 I 009195 I ~ Vendor Evergreen Resources (Alaska) Corp 1401 17th Street Suite 1200 Denver CO 80202 303-298-8100 Amount Check Number I 00770007261 Discount Net Amount 0.00 100.00 Description 12 month permit fee Sheep Creek 1 100.00 RE ~E'VED DE: - 91003 AlaSka Oil & Gas Cons. Commission Anchorage Check Date: 12/08/2003 Check Amount ~ I 100.00 I e . TRANSMIT AL LETTER CHECK LIST CIRCLE APPROPRIATE LETTERIP ARAGRAPHS TO BE INCLUDED IN TRANSMITTAL LETTER WELL NAME PTD# CHECK WHAT APPLIES ADD-ONS (OPTIONS) MULTI LATERAL (If API number last two (2) digits are between 60-69) "CLUE" Tbe permit is for a new well bore segment of existing weD Permit No, API No. Production. sbould continue to be reported as a function· of the original API number stated above. HOLE In accordance with 20 AAC 25.005(1), all records, data and logs acquired for the pilot bole must be clearly differentiated in both name (name on permit plus PH) and API Dumber (SO 70/80) from records, data and logs acquired for well (name on permit). PILOT (PH) SPACING EXCEPTION DRY DITCH SAMPLE Rev: 07110/02 C\jody\templates The permit is approved subject to full compliance with 20 AAC 25.055. Approval to perforate and produce is contingent upon issuance of a conservation order approving a spacing exception. {Company Name) assumes tbe liability of any protest to the spacing exception tbat may occur. An dry ditch sample sets submitted to tbe Commission must be in no greater tban 30' sample intervals from below tbe permafrost or from where samples are first caught and 10' sample intervals tbrough target zones. WELL PERMIT CHECKLIST Field & Pool Well Name: SHEEP CREEK 1 Program STR Well bore seg D PTD#: 2032080 Company EVERGREEN RESOURCES (ALASKA) CORPORATION Initial ClasslType STR /INFO GeoArea Unit On/Off Shore On Annular Disposal D Administration 1 P~rmitfee attaçhe~. . . . . . . . . . . . . . . . . . . . . . .Y~s . . . . . . . . . . . . . . . . . . . . . .. ................ . . . . . . . . . . . . . . . . . . . 2 .Leas~.number .appropriSlte. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 .U.nique weltn.alJl~.aocj oumb.er . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Y~s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 WelUocSlt~d ina defil1e~ .pool. . . . . . . . . . . . . . . . . . . . . . . . No . . Thi~ is Slstrattest . . . . . . . . . . . . . . . . 5 WelUocaled proper .distance from driJling ul1ilboul1dary. . . . . . . . . . . . .Yes. . . . . . . f\JO production. OJ testing will ocçur. noc.orrelatlve right~ is~ues wiJI be SI~sociated withtbe drilling of. . . . . . . . . . 6 WelUocat~d pr.oper.distance.fromotberwells. . . . . . . . . .. ...... . .Y~s. .lhisw.ell..RP.C.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 .S.utfiçiel1t.acreage.ayailSlble indJilJilJg unjt. . . . . . . . _ . . . . . . . . . . . . . . . . . . . . . . . .Y~s . . . . . . . . . . . . . .. ......... . . . . . . . . . . . . . . . . . . _ . . . . 8 Jfd~vi<lted, js weJlbore pl<lUlJcJuded . . . . . . _ . . . . . . . . . . . . .. .. .NA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . 90.perator only: affeçted party. . . . . . .. ....... _ . . . . . . . . . . . . . . . . . . . . Yes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 .O.perator bas.appropriate.b.ond inJorce . . . . . . . . . . . . . . . . . . . . . . _ _ . . . . . . . . . .Y~s . . . _ . . . . . . . _ . _ . . . . . . . . . . . . . . . _ _ . . . . . _ _ _ . . . . . . . . _ _ . _ . . . . . . . _ . . . . . . . . . . . . . . . . 11 P~(IT!il C.ao be issued wjtbout conserva.tion order . . . . . . . . . . . . . . . . . . . . . . . .Y~s . . . . . . . . . . . . . . . . . _ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Appr Date 12 P~rmil GaO be issued wjtbout <ldministratÎlle.a'pprpval. ......... . . . . . . .Y~s . . . . . . .. ....... . . . . . . .. ....... . . . . . . . . . . . . . . . . . . . . . . . . . . . RPC 12/17/2003 13 Can permit be approved before 15-day wait Yes 14 WelUocated within area <lndstrata .authorized by.!ojectiolJ Ord~r # (pullO# in.c.PI::nIJl.eots) (For. .NA . . . . . . . . . . . . . . . .. ....... . . . . . .. ........... . . . . . . . . . . . . . . . . a 15 AJI weIJs.withinJl4_mite.area.of reyiew jd~lJtifjed (Fpr ~efVj~w.etl only). . . . _ . . . . . . . . . _ .NA . . . . _ _ . . . . . . _ _ _ . . _ . . . . _ . . . . . . . . . . . . . . . . . . . . . . . . . . _ . . _ . . . . . . _ . . . . . . . _ . . . . . . . ., 16 Pre-producediojector; ~uration.ofpre-.pro~uctiOlJless.t/1an3montbs(For.servicewellonJy).. NA................. ........................ ............................ 17 .ACMP.FJnding.ofCon.sisteocy.h.as bee.n.i~sued.fortbis pr.oleçt . . . . _ . . . . . . . .NA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . .C.ooductor string.PJovided . . . . . . . . . . . . . _ . . . . . . . NA . . . . . . . . . . . . . . . . . . . . _ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _ . . . . . . . .Surfa~ .ca~il1gprotec.t~ alLknown USDWs . . . . . . . . . . . . . . . . . . . . . . . . . .. ... .Yes. . . . . . . Set@ 200 ft. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . CMTv.ol.adequate.to çirc.ulateoncond.uctor.& surf.csg . . . . . . . . .. ............. .Y~s. . . . . . . . . . . . . . . . . . . . . . . . .. .............................................. .CMTv.oladequateto tie-in Jong string to.surf ~g . . . . . . . . . . . . . . . . . . . . NA. . . . . . f\JO casing below surface.. . . . . . . . . . . . . . . . . . . . . . . .CMT will coyer.a!ll<lJow.npro.ductiye borizon.s. . . . . . .. ...... No . . . . . Stratigraph.ic. test.. . . . . . . .. ....... . . . . . . . . . . . . . . . . . _ . . . . . . . . . .C.asiog designs ad.equate fpr C,.T, B&Rermafmst . . . . . . . . .Y~s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A~equatetankage.or re.serve pit. . . . . . . . . . . . . . . . . . . . . . . . . .Y~s . . . . . . . Core rig taolss,. ........ _ . . . . . . . . . . . . . . . . . . . . Jfa.re-~rilt basa 10-403 for abandonment be~o approved. . . . . . . . . . . . . . NA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Mequate.we!lbore ~eparatjo.n.pro'pose~. . . . . . . . . . . . . . . . . . . . . . . . . _ . . . . . . . .Y~s . . . . . . _ . . . . . . . . _ . . . . . . _ _ . . . . . . _ _ . . . . . . . . . _ . . . . . . . . . _ _ . . . . . . . . . _ . . . . . . _ _ . . . . Jfdjverterreq.uired, doesjtmeelreguJatiol1s. . . . . . . . . . . . .NA . . . . Requirementwaive.d, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .DJitlilJ9 fJujdRrOQfam schematic.& equipJistadequat~. . . . . . . . . . . . .Y~s . . Water.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _ . . . . . . . .. . . . . . . . .B.OPEs, do they meet reguJatiol1 . . . . . . . . _ . . . . . . . .. .............. NA . . . . . . . 8nnul.ar only.. .. ....... . . . . _ . . . . . . . . . . . . . . . . . . . . . . . _ . . . . . . . . .BOPEpress ra.tiog ap.propriate;!est to (pu! psig incommelJts). . . . . . . . . .Y~s . Test tpJ50opsi. .MSF' 1080 psi.. . . . . . . . . . . . . . . . . _ . . . . . . . . . . . . . Cholse.manjfold compJie~ wIAPtRF'-53 (May 84) . . . . . . . . . . . . . . . . . . . . . . NA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Worls wi!l occ.ur withoutoperatjonshutdow.n. . . . . . . . . . . . . . . .. _....... .... .Yes. . . . . . . . . . . . . . . . . _ . . . . . . . . . . . . . . . . . _ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . J~ pre~eoce of H2S gas. Rrob.able. . . . . . . . . . . . . . . . . . . . . . . . _ . . . . . . . . . . . . No. . . . . . . . .. ................ ........................ . . . . . . . . . . . . . . . . Mechanical.coodjtion pf wells within 80R yerified (fors.ervjce w~1J onJy) . . . NA . . . . . . . . _ . . . . . . . . . . . . . . . . . . . _ _ . . . . . . . . . . . . _ Appr WGA 18 19 20 21 22 23 24 25 26 27 Date 28 12/18/2003 29 30 31 32 33 34 Engineering Geology 35 36 Date 37 12/17/2003 38 39 Appr RPC Geologic Commissioner: DTs e P~rmit cao Þe issued w!o. hydrogen sulfide meaS!Jres. . . . . . . . . . . . . _ _ _ . . . . . . . . . .Y~s . . . _ D.ata.PJeseoted on. pote.ntial overpre~sure .zones. . . . . . . . . . . . . . . . . . . . . . . NA . . . . . . . . . .S~ismic.analysjs. of sbaJlow gas.zpoes ...... . . . . . . . . . NA . .S~abe~ .condjtiolJ survey (if off-sh.ore) . . . . . . . . . . . . . . . .. ....... . . NA. . . . . . . . . . Conta.ct namelphoneJorweelsly progre~s.reports [exploratoryooly]. . . . . . . . . . . . . . . . . .NA . . . . . . . . . - - - - - - - - - ~ - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - ~ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ~ - - - - - - - - - - - - - - - - - - - - - - . - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Date: 1¿'j'B!3 Engineering Commissioner: Public ~ Commissioner ,/ ~ _ Date