The URL can be used to link to this page

Home My WebLink AboutAIO 029 e e Image Project Order File Cover Page XHVZE This page identifies those items that were not scanned during the initial production scanning phase. They are available in the original file, may be scanned during a special rescan activity or are viewable by direct inspection of the file. AI 0 0 J-.. o¡ Order File Identifier Organizing (done) o Two-sided 1111111111111111111 o Rescan Needed 1111111111111111111 RES CAN ~olor Items: o Greyscale Items: DIGITAL DATA OVERSIZED (Scannable) D Maps: D Other Items Scannable by a Large Scanner D Diskettes, No. D Other, NolType: o Poor Quality Originals: OVERSIZED (Non-Scannable) o Other: o Logs of various kinds: NOTES: D Other:: BY: ~ Date (p I ~-o//){, /s/ mf Project Proofing 1111111111111111111 BY: ~ Date &/JfJID~ /s/ V\1P BY: ~ ~,- ...-. ':/ x 30 = + Date: {¿; l:w / D {¿; = TOTAL PAGES 70 (Count does not include cover sheet) ftl\A P /s/ y V ~ Scanning Preparation Production Scanning 11111111111111 ,,11\ Stage 1 Page Count from Scanned File: 7 I (Count does include cover sheet) Page Count Matches Number in Scanning Preparation: V YES BY: ~ Date: (p I a..D 10 h /s/ NO vY\p Stage 1 BY: If NO in stage 1, page(s) discrepancies were found: YES NO Maria Date: /s/ 11111111111I11 11111 Scanning is complete at this point unless rescanning is required. ReScanned 11111111111111 ,,11\ BY: Maria Date: /s/ Comments about this file: Quality Checked 111111111111111111/ 10/6/2005 Orders File Cover Page. doc ... I. May 18, 2005 2. May 27,2005 3. May 23,2005 4. May 31, 2005 5. May 31, 2005 6. June 8, 2005 7. June 20, 2005 8. June 30, 2005 9. July 6, 2005 10. July 7, 2005 II. -------------- . . Index Area Injection Order 29 NK-65a BPXA's application for an injection Order for NK-65A Notice of Hearing, Affidavit of Publication, bulk mailing and e-mail list e-mail from AOGCC to operator requesting information Ltr from operator to DNR re: Tract Operations Affidavit of Service to State of Alaska DNR email from BPXA to AOGCC w/confidential Exhibit G Ltr from DNR to BPXA re: Tract Operations Recussal of Cathy Foerster Ltr to Operator from AOGCC requesting additional information Transcript and Sign In Sheet Various e-mails July 11, 2005 wid of application by BPXA Withdrawal ofNK-65A injection order . . Jane, Pursuant to our conversation earlier today, BPXA, as PBU operator, gives formal notice of the withdrawal of our May 18, 2005 request to allow for the injection of water for enhanced recovery into the NK-65A well. As a result, it is our understanding that the AOGCC will now cancel the public hearing on the request scheduled for 9:00 AM on July 13, 2005. On July 14 we scheduled a meeting with DO&G Director Mark Myers to discuss several pending Niakuk issues, including the proposed NK-65A tract operations and a new Raven PA. I will keep you posted on the results of this discussion as they could have a bearing upon the future actions we advance to the Commission. As you know, the Commission's April 13, 2005 waiver of the gas-oil ratio limitations for the NK-38A well expires July 31,2005 (DNR tract operations will expire on July 29). BPXA hereby provides early notice that we may request an extension of this waiver - which if a NK-38A tract operations extension is also requested and approved by DNR - will allow continued production from the well while we prepare the Raven CO & AIO applications. Thanks again for your advice and assistance. Please confirm that the Commission's July 13 public hearing on the NK-65A injection order has been cancelled. Gus 1 of 1 5/25/2006 12:53 PM #11 RE: Raven interval . . Jane, I apologize for our oversight. I added the interval to your statement to read as follows", .. 1) Authorized Injection Strata: Within the affected area, fluids may be injected for purposes of pressure maintenance and enhanced recovery into strata defined as those that correlate with and are common to the formations found in BP Niakuk No.6 between the measured depths of 12,318 - 12942 feet and the formations found in BP NK-65A between the measured depths of 13700 and 14135. Call if you have any questions. Dave Strait 56.4-4365 From: Weggeland, Mark C Sent: Friday, September 09, 2005 11:21 AM To: Strait, David R Subject: FW: Raven interval Dave - can you provide Jane with the depths that she needs? Thanks.. MCW -----Original Message----- From: Jane Williamson [mailto:jane _ williamson@admin.state.ak.us] Sent: Thu 9/8/2005 5:50 PM To: WeggeIand, Mark C Cc: Subject: Re: Raven interval Mark, I'm trying to write up the administrative order now. We'll be amending Rule 1 of AI014B to add the Raven interval. Currently it is worded: 1) Authorized Injection Strata: Within the affected area, fluids may be injected for purposes of pressure maintenance and enhanced recovery into strata defined as those that correlate with and are common to the formations found in BP Niakuk NO.6 between the measured depths of 12,318 - 12942 feet. I can't find in your original application the interval description of the Raven. It would be best to have it in your new application, but if it's too late, e-mail me the description. Iof2 5/24/2006 11 :03 AM Re: Raven interval . . Yea, I still need the depths describing Raven interval. It's like a legal description. Can't get by without it. I'll be out tomorrow, but will be back to it tomorrow. Do you think you'll have your re-application to us Monday? A first draft of the order is with our attorney. Hopefully mid next week you'll have approval. Weggeland, Mark C wrote: Jane, I really appreciate your help with this - its been great! Here is the description from the application: "'['he injection zone is a 71 ' interval in the lo\ver Ivishak formation, below the 2A2 shale and above the Kavik shale. This interval includes Zone 1 (32' thick) and Zone 2Al (39' thick) sands of the Ivishak. Zone 1 is expected to have a penneability of ~ 70 md and the Zone 2A 1 sands are expected to be ~250md. Geologic structure on top Ivishak is shown in the proposed injection area on Exhibit C. '['wo cross sections (Exhibits D & E) are provided to show the structure, stratigraphy and fluid contacts. Exhibit D shows a cross section along the wellbore of the recently drilled NK-38A production well. NK-38A drilled horizontally in the Ivishak Fonnation from the "South Fault Block" of the accumulation, into the "North Fault Block" after crossing fault "B." The well was perforated between Fault B and Fault D (North Fault Block) in the lower Ivishak, below the Zone 2A2 shale. NK-38A began flowing on March 31, 2005. The well last tested (July 28,2005) with an ftp of 2,239 psig, 1,882 BOPD, 4% watercut, and a GOR of 4, 182 SCF/STB on a 60 bean choke. NK-38A was shut-in on July 29,2005 and is currently shut-in awaiting injection support from NK-65A. Exhibit E shows a cross section between the NK-38A producer (going into the plane of section) ,md the injector, NK-65A. Fluid contacts show most of the oil resides in the lower Ivishak, between the Kavik and the 2A2 shales, This presents an ideal situation where the injected water is contained between two shales to provide exceptional sweep and pressure support for the producer. The Kavik shale is 188' thick in the nearby NK-04 well and f()ID1S the lower confining zone, below the lower Ivishak. The Kingak shale overlies the Sag River fonnation and is 320' thick in NK-65A. The Kingak forms the upper con1ìning zone. The Zone 2A2 shale is 27' thick and will act as a secondary upper confining zone. This shale will mainly keep the water within the lower Ivishak and help provide excellent sweep in the oil leg. IIowever, the relatively thin 2A2 shale may be offset by small faults and juxtapose upper and lower Ivishak in some areas. Some water will possibly enter the Upper Ivishak (above the 2A2 shale) in areas where the faults exceed 27'. The Kingak shale will ultimately provide the upper confining zone for all water injected in the Ivishak. An three shales (Kavik, 2A2, and Kingak) are ubiquitous in the area and exist in all nearby wells that drill deep enough to encounter these stratigraphic intervals. The confining shales and the reservoir intervals are not tnmcated by unconformities in the field area and the hydrocarbon lof2 5/24/200610:56 AM Re: Raven interval . . accumulation is controlled entirely by structure." I'm not sure ifthis is what you need or not. It doesn't contain depths. If you need more, let me know and I will chase it down for you. Many thanks, Mark Weggeland GPMA Subsurface Team Leader Office: +1 (907) 564-5351 Mobile: +1 (907) 229-1628 Email: weç¡ç¡elmc@bp.com Mail: BP Exploration (Alaska) Inc. PO Box 196612 Anchorage AK, 99519-6612 From: Jane Williamson rmailto:1ane williamson@admin.state.ak.usl Sent: Thursday, September 08,20053:16 PM To: Weggeland, Mark C Subject: Raven interval Mark, I'm trying to write up the administrative order now, We'll be amending Rule 1 of AI014B to add the Raven interval. Currently it is worded: 1) Authorized Injection Strata: Within the affected area, fluids may be injected for purposes of pressure maintenance and enhanced recovery into strata defined as those that correlate with and are common to the formations found in BP Niakuk NO.6 between the measured depths of 12,318 - 12942 feet. I can't find in your original application the interval description of the Raven. It would be best to have it in your new application, but if it's too late, e-mail me the description. Jane Williamson, PE <jane williamson@admin.state.ak.us> Reservoir Engineer Alaska Oil and Gas Conservation Commission 20f2 5/2412006 10:56 AM NK-65A - AIO 14 administrative action . . Mark, I just spoke with Leslie on the phone. We can administratively amend AI014 for the Niakuk Oil Pool to add the Raven interval. It turns out that this AID covers the same area, and has an administrative action clause. You will need to do a few things. Resubmit your application with a cover letter requesting approval for injection into NK-65A through administrative amendment of AI014. Also request that NK38A be allowed to produce, waive the GOR limit, upon start of injection into NK65-A and state the reason this is appropriate, State the interval you want added to the Niakuk AIO. Add the information requested in the July 6 letter we sent to you (attached). Please note that the Commission earlier denied confidentiality treatment for certain exhibits. I don't see any change is this ruling. Make sure you've received sundry approval for injection in NK65-Ä. We'll act on your request as soon as possible. You of course will want to make sure you have the appropriate authorizations from the DNR as well. We understand you will be sending us an application for pool rules and full area injection order later. Jane Jane Willianlson, PE ~iane williamson@]admin.state.ak.us> Reservoir Engineer Alaska Oil and Gas Conservation Commission Content-Type: application/msword Content-Encoding: base64 1 of 1 5/24/2006 10:56 AM #10 . . . . . 2 Before Commissioners: ALASKA OIL AND GAS CONSERVATION COMMISSION John K. Norman, Chairman Daniel T. Seamount Cathy Foerster 1 3 4 In the Matter of the Application ) 5 by BP Exploration Alaska, Inc., ) for an Injection Order for ) 6 Niakuk 65A ) ) 7 8 ALASKA OIL and GAS CONSERVATION COMMISSION Anchorage, Alaska 9 July 7, 2005 9:00 o'clock a.m. 10 11 VOLUME I PUBLIC HEARING 12 John K. Norman, Chair BEFORE: 13 14 15 16 17 18 19 20 21 22 23 24 25 RECEIVED JUL 0 8 2005 Alaska Oil & Gas Cons. Commission Anchorage . . . 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . . TABLE OF CONTENTS Remarks by Chair Norman . . . . . . . . . ......... 03 · 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 · · . . PRO C E E DIN G S Tape 1 0015 (On record - 9:00 a.m.) CHAIR NORMAN: This is a hearing upon the application of BP Exploration Alaska, Inc. for an injection order. The affected well is NK 65A. This is an application made by BP as operator of the Prudhoe Bay Unit for an order to authorize injection into this well. The injected fluid is water and the receiving formation is the Ivishak formation in the Raven Reservoir. The application indicates that the requested order is to allow injection until December 31, 2005, or until approval of an area injection order for the Raven Pool. Notice of this hearing was duly published in the Anchorage Daily News on May 27th, 2005. The file reflects that the surface owners have been identified and there is an affidavit in the file dated May 18th, 2005, signed by Mark Weggeland showing the operator to be BP Exploration Alaska, Inc., surface owner state of Alaska, and also surface owner of a Native allotment within the area, within one-quarter mile of the area of injection. And that notice was sent to the heirs of Andrew Oenga, spelled O-e-n-g- a, and that was sent care of Inupiat Community of the Arctic Slope, P.O. Box 934, Barrow, Alaska 99723. No protests have been received and no one else has thus far asked to participate in the hearing. This hearing is being conducted. The time is 9:00 o'clock 3 · · · 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . . a.m. on the morning of Thursday July 7th. Present is Commissioner John Norman. Commissioner Seamount is traveling today as is commissioner Foerster. Therefore, we do not have a quorum for the conduct of business. And I will, therefore, be recessing this matter to a later date so that we can proceed with the hearing. The file does reflect that certain additional information was requested of the operator. The file does not reflect yet that that information has been received. We have a member of the staff present and I will ask if there are any matters that she believes I should address before I recess to the new date? MS. WILLIAMSON: No. CHAIR NORMAN: Okay. The indication there is nothing more to be covered. This matter then will be -- this hearing will be recessed and we will reconvene on July 13th at the hour of 9:00 o'clock a.m. at which time we expect a quorum to be present and will complete the adjudication of this application. This hearing is recessed at approximately 9:07 a.m. (Recessed - 9:07 a.m.) 0140 4 · · · . . 1 C E R T I F I CAT E 2 UNITED STATES OF AMERICA ) )ss. STATE OF ALASKA ) 3 4 I, Rebecca Nelms, Notary Public in and for the State of Alaska, residing at Anchorage, Alaska, and Reporter for R & R 5 Court Reporters, Inc., do hereby certify: 6 THAT the annexed and foregoing Public Hearing In the Matter of the Application by BP Exploration Alaska, Inc., for 7 an Injection Order for Niakuk 65A, was taken by Suzan Olson on the 7th day of July, 2005, commencing at the hour of 9:00 a.m., 8 at the Alaska oil and Gas Conservation Commission, Anchorage, Alaska; 9 THAT this Hearing Transcript, as heretofore annexed, is a 10 true and correct transcription of the proceedings taken by Suzan Olson and transcribed by myself; 11 IN WITNESS WHEREOF, I have hereunto set my hand and 12 affixed my seal this 7th day of July, 2005. 13 t~~ ~"- ~~r--...t~ Notary Public in and for Alaska My Commission Expires: 10/10/06 14 15 16 17 18 19 20 21 22 23 24 25 . . STATE OF ALASKA OIL AND GAS CONSERVATION COMMISSION Niakuk 65A July 7, 2005 at 9:00 am NAME - AFFILIATION ADDRESS/PHONE NUMBER TESTIFY (Yes or No) (PL NT) ~ /ð h '1 tJ ð R. wr ,N\..I ,..-¡::- l ( \ ~ ~II\,~ IAJ,) ,L~Uc--.s. 0 '1 Æ-o~~CL- 4--n a- ~ L- C:/.A~(¿ A)~ \Hearing_ Sign-In #9 . . Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501-3539 Phone: (907) 279-1433 Fax: (907) 276-7542 Fax Transmission The information contained in this fax is confidential and/or privileged. This fax is intended to be reviewed initially by only the individual named below. If the reader of this transmittal page is not the intended recipient or a representative of the intended recipient, you are hereby notified that any review, dissemination or copying of this fax or the information contained herein is prohibited. If you have received this fax in error, please immediately notify the sender by telephone and return this fax to the sender at the above address. Thank you. í} C" n To: f;(O-,[J. jU>~~J5 ð ,1 Fax #: 5¿ éf .- <f ¿ 5 7 From: J ¿.'èvt < lu:¡ it ~ L-«. s: ð ~'Î Date: Phone #: 7 q:-:¿ ,- / ;;2. ¿ Co !lJ ,. - -,.,-.-. ,,- (.' / Pages (including Subject: t::- - ¿':'5 /+ Jje. 1"J-r.'t1 VI. (¡1fOl-~~ cover sheet): Message: i" If you do not receive all the pages or have any problems with this fax, please call for assistance at (907) 793-1223. . fñ' n ~ rr.' =: /Æ.fN. '.lm·~.\ I~' il''7\'; .lj\ ¡¡ IU· I i ¡ .u i i . ß 1 ,_ '\ ~) Ui~, " ß \ ~U 'L.:IU-UQt1uUU . A.,ASIiA. OIL AND GAS CONSERVATION COMMISSION FRANK H. MURKOWSKI, GOVERNOR 333 W. 7'" AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 July 6, 2005 Re: BPXA's application for water injection into NK-65A Dear Mr. Weggeland: AOGCC staff has reviewed BPXA's May 18,2005 application request to allow water injection into the Ivishak formation for enhanced recovery purposes. BPXA provided additional information (via e-mail dated June 8, 2005) in response to a Commission request. In order to complete our review, the following additional information is requested: o Type log for the reservoir o Estimate of oil and gas in place for the reservoir o Net pay isopach for the reservoir o Average porosity for the reservoir o Reservoir fluids properties for the reservoir (oil and gas volume factors, solution gasloil ratio, viscosity) We note that BPXA has claimed that Exhibits C, D, E, and G should be held confidential. Special rules apply to information used by the Commission in administering its underground injection control program. Under 20 AAC 25.537(e), any such information (1) will be made available to the public unless the material has been claimed confidential and has been determined by the commission to be entitled to confidential treatment; . . . The Commission has reviewed the exhibits for which confidentiality has been claimed. It is agreed that Exhibits D and E will be maintained confidential, as well as the several highlighted portions of Exhibit G on the enclosed copy, because they appear to disclose protected data that are specific to wells that are still in confidential status under AS 31.05.035. Confidentiality for this material will last only as long as the respective wells remain in confidential status. The confidentiality claims must otherwise be denied for lack of a sufficient legal basis. (Note that the reference in Exhibit G to the most recent well test for well NK-38A may not be treated as confidential because production data are not allowed to be held confidential under AS 31. 05.03 5( c).) Please be advised that even information that the Commission determines is entitled to confidentiality must be made available to the United States Environmental Protection Agency under 20AAC 25.537(e)(2). . . I note that this matter is currently set for hearing at 9:00 am Thursday July 7; however, we will not have a quorum of the Commission present on that date. Therefore, it is my intention to recess the July 7 hearing and reconvene at 9:00 am on Wednesday July 13, It will be helpful to have the material requested by this lette .rior to that date. If you have any questions regarding this matter, please call Jane . lia 'son at 793-1226, cc: Dan Seamount Î h..t- hd. i ¡ ~ k ~ cJ/ (I". ,'0"", oß cf4 {s -C" Î-l¡(. ¡-Ie· II (, < h ef dl. ¡'Yl. Œ..D'-'l~Y~'€~t 4ia.{ ,8+C!..~,v~ a~. ÙH'L(¡ Cl5 +h.~ wefls (1ù1<3{f-4 ¿¡>t4..J IJk(;K'4) ('-<!:. ¡M,.:(: V\.. ,,,,,- C-Oh itJe.d,Ci..< ~-f.cA;)$.. Exhibit G ¿îeif.Q'~.tr;Response to Item #6 # 6 - 20 AAC 25.402 (c)(6) - the name, description, depth, and thickness of the formation into which fluids are to be injected, and appropriate geological data on the injection zone and confining zone, including lithologic descriptions and geologic names: The injection zone is a 71' interval in the lower Ivishak formation, below the 2A2 shale and above the Kavik shale. This interval includes Zone 1 (32' thick) and Zone 2A 1 (39' thick) sands of the Ivishak. Zone 1 is expected to have a permeability of - 70 md and the Zone 2A 1 sands are expected to be -250md. Geologic structure on top Ivishak is shown in the proposed injection area on Exhibit C. Two cross sections (Exhibits 0 & E) are provided to show the structure, stratigraphy and fluid contacts. Exhibit 0 shows a cross section along the wellbore of the recently drilled NK-38A production well. ·~1!ÇDO"çj;:ïftCJ . horizontallYinthqÞiichal{ formati;:u!'JrGI!\ltl,~"SouthFaultOlm;I:"··.oftno aCCHlTlllb::atinrr: ìntcrtho "Nörth Fault.·Block"afWrør:n~si1\OklJlt"O:" .TMWQll V¡'£t ,.p~Qf~t'r h^hAføonFault.~3ndF3tíltÐ(~torthS3ûltUlock)in~hc lowcrlvf5Þh"'llk, . . -br-'LQ\vt~.~:-.n2-A2Q:'olo. NK-38A began flowing on March 31, 2005. The well last tested (May 4,2005) with an ftp of 2,252 psig, 1,736 BOPO with no water, and a GOR of 2,926 SCF/STB on a 53 bean choke. Exhibit E shows a cross section between the NK-38A producer (going into the plane of section) and the injector, NK-65A. fk.JidoontactsiI:\.pWJrloetoftho.oil-- roci.<1osin. tholcw'i'rlvi~h?k, botwQW\ tho .( ::¡.\Ûl€~ndth~ ?l\2shnIC8:;-'- This presents an ideal situation where the injected water is contained between two shales to provide exceptional sweep and pressure support for the producer. The Kavik shale is 188' thick in the nearby NK-04 well and forms the lower confining zone, below the lower Ivishak. The Kingak shale overlies the Sag River formation and is 320' thick in NK-65A. The Kingak forms the upper confining zone. The Zone 2A2 shale is 27' thick and will act as a secondary upper confining zone. This shale will mainly keep the water within the lower Ivishak and help provide excellent sweep in the oil leg. However, the relatively thin 2A2 shale may be offset by small faults and juxtapose upper and lower Ivishak in some areas. Some water will possibly enter the Upper Ivishak (above the 2A2 shale) in areas where the faults exceed 27'. The Kingak shale will ultimately provide the upper confining zone for all water injected in the Ivishak. All three shales (Kavik, 2A2, and Kingak) are ubiquitous in the area and exist in all nearby wells that drill deep enough to encounter these stratigraphic intervals. The confining shales and the reservoir intervals are not truncated by unconformities in the field area and the hydrocarbon accumulation is controlled entirely by structure. #8 Re: NK-65A upcoming hearing . . Subject: Re: NK-65A upcoming hearing From: John Norman <john~norman@admin.state.ak.us> Date: Thu, 30 Jun 2005 12:1 -0800 Jody and Kari- All recusals by Commissioners will be in writing as Cathy has done in this instance with copies to both of you. Jody-you should file copy of the recusal in the application or hearing file; and Kari-you should maintain in your office a file with copies of all recusals in it. Thanks, John Cathy Foerster wrote: The Commission has a hearing scheduled for July 7, 2005 to review an application from BPX to inject water into the Niakuk NK-65A. Because I recently provided reservoir engineering consulting for BP involving this and other wells in the Niakuk Field, I am recusing myself from this case. John K. Norman <John Norman(ci!admin.state.us> Commissioner Alaska Oil & Gas Conservation Commission 1 of 1 7/5/2005 12:24 PM #7 DIVISION OF OIL AND GAS OA~ NK H. MURKOWSKI, GOVE~;' . , ~~&~~ @, &~~~ DEPARTMENT OF NATURAL RESOURCES 550 WEST 7TH A VENUE, SUITE 800 ANCHORAGE, ALASKA 99501-3560 PHONE: (907) 269-8800 FAX: (907) 269-8938 CERTIFIED MAIL RETURN RECEIPT REQUESTED June 20, 2005 Mark Weggeland GPMA Manager BP Exploration (Alaska) Inc. 900 East Benson Blvd. P.O. Box 196612 Anchorage, Alaska 99519-5111 Via Fax (564-4637) and Certified Mail Re: Prudhoe Bay Unit NK-65A Tract Operation, ADL 034635 (PBU Tract 32) Dear Mr. Weggeland: By letter, dated May 31, 2005, BP Exploration (Alaska) Inc. (BPXA), as the Prudhoe Bay Unit (PBU) Operator, requested Division of Oil and Gas (Division) approval of a six-month Tract Operation for the Niakuk NK-65A Well on ADL 034635 (PBU Tract 32). The purpose of the NK-65A Tract Operation is to begin water injection operations into the Ivishak oil accumulation (Niakuk/Ivishak Reservoir) to support the continued production of the Niakuk/Ivishak Reservoir from the NK-38A Well on ADL 034630 (PBU Tract 31). NK-38A has been on production since March 31,2005, as a Tract Operation approved by the Division on April 7, 2005. The NK-38A Tract Operation authorization runs through July 29,2005. With the proposed NK-65A Tract Operation request, Niakuk/Ivishak Reservoir operations have gone from a single lease plan of testing, evaluation and pilot production under the NK-38A Tract Operation to a multiple lease development that now entails secondary recovery/waterflood operations. It appears to us that, based on infonnation provided to the Alaska Oil and Gas Conservation Commission and the Division on April 20, 2005, regarding the NK-38A perfonnance, and this request to begin water injection into the Reservoir to support that well, the PBU Owners have detennined that the Niakuk/Ivishak Reservoir is capable of sustained commercial production in sufficient quantities to justify developing and producing it. The Division infonned BPXA at the April 20, 2005, presentation, and bye-mail of June 1, 2005, that a separate participating area application with an associated plan of development was the appropriate approach for the continued development of the Niakuk/lvishak Reservoir. We stated in April that the Division would not approve a progression of Tract Operations to develop the NiakuklIvishak Reservoir, as it did initially for the Niakuk/Kuparuk Reservoir. "Develop, Conserve, and Enhance Natural Resources for Present and Future Alaskans. " .' w.;. . . Mr. Mark Weggeland NK-65A Tract Operation Request June 20, 2005 Page 2 The Division believes that based on the currently available information -- the NK-38A production data, the recently re-interpreted 3D seismic data over the Niakuk area, BPXA's reservoir simulations of the Niakuk/lvishak Reservoir, and the PBU Owners' intentions to go forward with water injection into the Reservoir -- the NiakuklIvishak Reservoir is capable of sustained commercial production in sufficient quantities to justify developing and producing it. Given these facts, Article 5.3 of the PBU Agreement and 11 AAC 83.351 require that BPXA submit a proposed participating area application for all or that portion of the Niakuk/Ivishak Reservoir that has been reasonably defined. Consequently, BPXA's NK-65A Tract Operation request is denied under Article 4.4 of the PBU Agreement. The Division will consider the Niakuk/lvishak Reservoir development, including any extension of the NK-38A Tract Operation approval, only in the context of a participating area application with an associated plan of development. Sincerely, /I · -4/! ÚJ~ U"'- .;;~ , / .ÇR/:~ark D. Myers / DIrector cc: AOGCC, Chair Gary Gustafson, BPXA Jane Williamson, AOGCC Niakuk.65A TractOperation Jequest.doc #6 RE:.NK-65A ~ \' . .' Jane, Thanks for your patience. Attached are the responses to each of your questions, All information contained in this Email, except the revised Exhibit G, should be considered available to the public. The revised Exhibit G should remain confidential in accord with AS 31.05.035 and 20 AAC 25.537. Let me know if you also want me to send you the revised Exhibit G formally in hard copy for your records. Please let me know if we can answer any questions or provide additional information. You are also aware Mike Kotowski has stated the Division will not act on our NK-65A tract operations request until we submit a Raven PA application with a POD. I have spoken to Mike and reminded him that the Division's existing NK-38A tract ops approval specifies that we must provide the Division with a NK-38A status report in conjunction with our annual GPMA POD presentation on June 22nd. The purpose of this condition was to give everyone the opportunity to gauge well performance. We plan to discuss this entire matter further with Mike and other Division reps during the June 22 meeting. It seems to us to be very premature to submit a PA application when we only have preliminary data from just the one well. NK-68A will provide us with some additional data that should be very instrumental in making a PA determination. Thanks again for your help. Gus From: Jane Williamson [mailto:jane_williamson@admin.state.ak.us] Sent: Monday, May 23,20053:54 PM To: Gustafson, Gary G (Alaska) Cc: Robert P Crandall Subject: NK-65A Gus, We've reviewed the application for an Injection Order in NK-65A. There are a few items that need expanding upon as outlined in the attached file, In particular, we need to discuss the basis of your request for confidentiality. Jane Content-Description: NK-65A AIO Response.zip AIO Response.zip Content-Type: applicationlx-zip-compressed Content-Encoding: base64 Content-Description: Revised Exhibit G.DOC Exhibit Content- Type: applicationlmsword Content-Encoding: base64 1 of2 6/27/20059:41 AM . . BPXA response to Jane Williamson's May 23,2005 questions regarding the NK-65A Injection Order Operator response is shown in blue text 20AAC 25.402 (c)(2) Exhibit B o NK-65A is within 'l4 mile of the PBU boundary. The acreage to the north is unleased and as such, the State of Alaska is the mineral owner or operator. You should therefore add the SOA as operator. An amended affidavit with list of operators, including the State of Alaska, has already been submitted to the AOGCC as Exhibit B-1. 20 AAC 25.402 (c)(4) o For the Commission to write an order, sufficient infonnation must be provided in the public record. Without the discussion in Exhibit G, it is very difficult to do so. What is your basis for holding this infonnation confidential? How long are you requesting it to be held confidential? BPXA requested that Exhibit G be considered confidential because it contains proprietary reservoir descriptions, interpretation of fluid contacts, geologic tops/thicknesses, description of the hydrocarbon trapping mechanism, and well rate infonnation for wells that are currently confidential under applicable state regulations. However, the following three paragraphs under #4 below are hereby extracted from Exhibit G for immediate inclusion in the public record and are released from our prior confidentiality request - # 4 - 20 AAC 25.402 (c)(4) - a full description of the particular operation for which approval is requested: NK-38A is a horizontal production well that reached a total depth of 16,765' (- 9,874 TVDSS) at an approximate location ofX=721700 and Y=5988600, ASP Zone 4. The well was perforated and began flowing on March 31, 2005. The NK-65A injection well is required for pressure maintenance and enhanced recovery of the reservoir. NK-65A reached total depth of 14,208' (-9,938' TVDss) at an approximate location of X = 724300 and Y = 5988000, ASP Zone 4 on May 12, 2005. NK-65A injection is expected to provide exceptional sweep and pressure support for the NK-38A producer. . . Estimated total oil recovery will increase from about 11 % OOIP (primary production only) to approximately 30-35% OOIP with water injection from the NK-65A well. The NK-65A water injection will be conducted from the PBD DS NK Pad, which was built for Niakuk Field development. The DS NK-Pad plot plan showing the well layouts is shown as Exhibit F. Produced and/or seawater will be routed to the DS NK Pad manifold and then routed to the injection well. A flow meter on well NK-65A measures total fluid injected into the well. o What is the BHP in NK-38A? 4973 psi @ -9850' TVDss o How was the recovery from waterflood calculated? Recovery from the waterflood was calculated using a reservoir simulation model. The model was used to determine optimum injector placement and timing. o What are your plans for voidage replacement with this well. Injection into NK-65A is intended to replace produced fluids from NK-38A. This injectorlproducer pair will be operated to maintain a V oidage Replacement Ratio (VRR) of 1.0 within normal operating ranges. o Provide the projected rates from wells serviced by NK-65A through the life of the project. Please see Exhibit I, included with this note What are your plans for surveillance? Production surveillance activities for the Ivishak Raven Accumulation will be the same as other GPMA fields, and include: 1) Static Bottom-hole pressure surveys 2) Production Logging (NK-38A) 3) Injection Logging 4) Production Well Testing (NK-38A) 20 AAC 25.402 (c)(6) o Why is this section confidential? How long should it be held confidential? As noted above, the Commission must have sufficient information within the public record to write an order. BPXA requested that Exhibit G be considered confidential because it contains proprietary reservoir descriptions, interpretation of fluid contacts, geologic . . tops/thicknesses, description of the hydrocarbon trapping mechanism, and well rate information for wells that are currently confidential under state regulations. A revised Exhibit G is included with this note. This amended Exhibit G will also be delivered to your office in hard copy. BPXA respectfully requests that the information in this revised Exhibit G remain confidential pursuant to AS 31.05.035 and 11 AAC 25.537. 20 AAC 25.402 (c)(9) o More description of evidence for or against formation water sensitivity must be provided. If you are using Prudhoe as the model, what experience have they had with scaling or other formation damage (clays, etc.). Source water will be obtained from the Beaufort Sea and is the same water that is currently being injected into the Ivishak Formation in the IP A, and into the Niakuk Participating Area. It is possible that produced water could be injected at some time in the future. Produced water is water that is produced with Lisburne, Pt. McIntyre, West Beach, North Prudhoe Bay State and Niakuk oil, and is separated from the oil and gas at the LPC. Produced water may contain trace amounts of scale inhibitor, corrosion inhibitor, emulsion breakers, and other products used in the production process. Compatibility with Formation and Confining Zone - The produced water returning to the Ivishak formation could be either a mix ofPt. McIntyre, West Beach, North Prudhoe Bay State, Lisburne, Niakuk or IP A produced water separated through the LPC or FS-l. Minimal problems with formation plugging or clay swelling due to fluid incompatibilities are anticipated. No clay swelling problems have been seen in the Ivishak in the IP A with either source water injection or produced water injection. When present, scaling in the Ivishak in the IP A has been limited to calcium carbonate deposition, which has been eliminated with acid treatments and controlled with the use of inhibitors. 20 AAC 25.402 (c)(10) o Is the planned injection pressure above the fracture gradient of the Ivishak? Average expected surface injection pressures of 1500 psi would yield less than the average expected Ivishak parting pressure of .66 psi/ft based on a large number of IP A fraced wells. 20 AAC 25.402 (c)(II) o Fracture gradients should be provided as a function of lithology (the Ivishak and the confining shales). You can use Prudhoe information for your basis. .). . . The Ivishak Formation at the Niakuk Oil Pool is overlain by the Kingak shale, which is over 200 feet thick. The Kingak shale sequence tends to behave as a plastic medium and can be expected to contain significantly higher pressures than sandstones of the Ivishak Formation. Data from offset fields in the Kingak shale formation demonstrated leakoff at a gradient of approximately 0.85 psi/ft, while Ivishak sandstone has been seen to fracture with an average gradient of .66 psi/ft based on a large number of IP A fraced wells. Therefore, any fracturing would be contained within confining strata. ,:1t- ,.. 6000 500 1000 1500 1'1"", of Production 2000 2500 3000 5000 4000 ir ~ 3000 ... ... 2000 1000 . . CONFIDENTIAL DOCUMENTS LOCATED IN CONFIDENTIAL ROOM UNDER CO 555 ~ . '\7'1" ¡; j . ~ý #5 [Fwd: NK-65A affidavit addition] . . Subject: [Fwd: NK-65A affidavit addition] From: Jane Williamson <jane _ williamson@admin.state.ak.us> Date: Tue, 31 May 2005 18:36:58 -0800 To: Jody J C <jody_colombie@admin.state.ak.us> CC: Robert I <bob_crandall@admin.state.ak.us> Jody, Please put this in the NK-65A injection order application. Jane ......------- Original Message -------- NK-65A affidavit addition Tue, 31 May 2005 15:01:40 -0800 Gustafson, Gary G (Alaska) <GustafGG@BP.com> jane williamson@admin.state.ak.us Mark C Weggeland (Weggeland, Mark C) <weggelmc@BP.com> Subject: Date: From: To: CC: Jane, Here's a copy for your records of Exhibit A-1 to the May 18, 2005 NK-65A injection request letter - it adds mark Myers as Operator to those already notified. As I mentioned, we hope to have the responses to your other questions back to you within a week. Thanks for your help. Gus «5.25.05 Exh B-1 Affidavit.pdf» Jane Williamson, PE <jane williamson(a¿admin.state.ak.us> Reservoir Engineer Alaska Oil and Gas Conservation Commission . I Content-Type: application/octet-stream 5.25.05 Exh B-1 AffidavIt.pdf b 64 Content-Encoding: ase 1 of 1 6/1/2005 11 :22 AM -..- - ~ ..... 11 . . r Exhibit B-1 Affidavit STATE OF ALASKA TmRD JUDICAL DISTRICT I, Mark Weggeland, declare and affirm as follows: 1. I am the GPMA Manager for BP Exploration (Alaska) Inc., the designated operator of the Prudhoe Bay Unit and the Niakuk Participating Area (P A), and as such have responsibility for unit and tract operations within the Niakuk area, including the NK-65A Well. 2. On May 25, 2005, I caused a copy of the May 18, 2005 Application for Area Injection Order for the NK-65A Well to be provided to the below referenced operator of all land within a one-quarter mile radius of the proposed injection area. Operator: Attention: Mark Myers Division of Oil and Gas Department of Natural Resources State of Alaska 550 West 7th Avenue, Suite 800 Anchorage, AK 99501-3510 ~~ß~ S-¡¿S""Þs- Date #4 MRY.31.2005 5:56PM . < . ft!f4Lk f\J~A NO.9?1 tJ I'Jl-er- P.1/4 . bp Facsimite/DistribUltiiOJn BP Exploration (AIs9ka) Inc. 900 East Benson Boulevard P.O. Box 196612 Anchorage. Alasl<a 99519·6612 (907) 561-6111 o Mark Myers, Director Division of Oil &. Gas Dept. of Natural Re$ources 550 West 7th Avenue, Suite 800 Anchorage, Alaska 99501 907-269-8800 (Phone) 907..269-8938 (Fax) To: cc: See Distribution List Below RECEIVED 4 (including cover) Julia Rachford, Prudhoe Bay Unit Coordinator BP Exploration (Alaska) Inc. 900 East Benson Blvd. (MB 5-6) P.OI Box 196612 Anchorage, AK 99519~6612 (907) 564-5797 (direct line) (907) 564-4637 (fax) Julia.Rachford@bp.com This transmits OP's 5.31.05 letter to DNR ra Tract Operations for NKw65A Well. Date: May 31, 2005 Pages: From: Subject: 1ii¡::,uwmrl~I~~¡~~ W.·~~,.H~~Uœ~I\IIm Alaska Oif & Gas COnservatIon Commission 333 W. 7t/1 Avenue, Suite 100 Anchorage, AK 99501 (907) 793-1226 I (907) 276-7542/FAX ni ExxonMobil Alaska Production Inc. 3301 C Street, Suite 400 P.O. Box 196601 Anchorage, AK 99519-6601 (907) 564-3770 (907) 564-3705/FAX sonnv ,rix@~}Q(9J1mÇlþil.com ? ,j ....œ & Gl8Gø.Cc.cllÎltim A~ -ri:~n ;û~~~~~w~~ in¡¡'INiI'~ Division of Oil & Gas Department of Natural Resources 550 W. 7th Avenue, Suite 800 Anchorage, AK 99501-3560 (907) 269-8800 (907) 269-8943/FAX ··r;;¡I¡I.~,.,,·, H~;H. Conoc:oPhillips Alaska, Inc. 700 G Street P,O. Box 100360 Anchorage, AK 99510-0360 (907) 265-1315 (907) 263-3748/FAX pa.n. þ. kruse@conocophilllps..cQrn. ..-- Chevron U.S.A. Inc. 11111 S. Wilcrest P.O. Box 36366 Houston, TX 77236 (281) 561-3583 (281) 561-3592/FAX gmfo@cbevrontexaco,com ~itlüWi Forest Oil Corporation 310 K Street, Suite 700 Anchorage, AK 99501 (907) 258-8600 (907) 258-8601/FAX Igu rule'@Eo.restoil.com ******* Please Deliver to Recipients Immediately ******* Caution: This facsimile may cont¡Jln information which is confident/ill ilnd/or protected by the Attorney/Client pnVilegfl and is inœnded for receipt and use solely by the Individual or entity named above. If you art! not the intended reciplen~ ilny dIsclosure, copying or use of this information is prohibited. If you have received this transmIssion In error, plepse notify us by telephonfl immediately. Thank you. MRY.31.2005 5:56PM NO.971 . . bp 13P Elcplorøttol' IAlðSIca Ino- 900 ¡:øf Bens.OT1 ElOllllMlrd F!O.19ox1aa61:l Äl1c110f\QÐ. Alaska 99619-eß1;! (!I071661-/i111 BY FACSIMILE AND CERTIFIED MAIL May 31.2005 Mark Myers, Director Division of Oil and Gas Department of Natural Resources 550 West rh Avenue, Suite 800 Anchorage, AK 99501 RE: Tract Operations - NK-65A Well Niakuk Participating Area Tract 32 - Prudhoe Bay Unit ADL 034635 Dear Dr. Myers: BP Exploration (Alaska) Inc. (BPXA) , Operator of the Prudhoe Bay Unit (PBU) and Nlakuk Participating Area (NPA), requests tract operations approval for the proposed NK-65A Well in ADL 034635 (Section 30, T 12N, R 16E. U.M.; PBUA Tract 32). BPXA requests approval of tract operations for NK·65A injection from June 1, 2005 through December 31, 2005. The NK"65A Well is located within the boundary of the NPA, but is not targeting the Kuparuk Reservoir. Instead, the objective is to inject into an Ivishak oil accumulation within the NPA. but located beneath the Kuparuk Reservoir. The NK-36A well is the first producer in the Ivishak accumulation and has been on production since March 31, 2005. The location of the NK-65A Well, including well bore trajectory and bottomhole location is depicted in Exhibit A. The proposed TVDss depth of the well Is 9,950 ft. with a measured depth to bottomhole of approximately 14,280 ft. This injection well will not be produced. Exhibit B shows a cross section between the NK-38A producer (going into the plane of sectIon) and the proposed injector (NK-65A). The location of the NK-04 exploration well is projected onto the line of section. The fluid contacts show that most of the oil resides in the lower Ivishak, between the Kavik and the 2A2 shal~s. This presents an ideal situation where the injected water is contained between two shales to provide exceptional sweep and pressure support for the producer. Our modeling suggests the total oil recovery will increase from about 1 P.2/4 . ~ . MAY.31.2005 5:56PM NO.971 .. . 10% (primary production only) to about 30 to 35% (with water Injection at the NK- 65A well). The NK·65A water injection will be conducted from the PBU DB NK Pad, which was built for Niakuk Field development. Seawater will bé routed to the DS NK Pad manifold and then diverted to the injection well. A flow meter on well NK- 65A measures total fluid injected into the well. BPXA staff representatives are available should you have any questions or need any additional information. We look forward to your timely actIon on this request. If you need any additional Information, please contact Gary Gustafson at 564- 5304. Best Regards, ~ W(¡~~ Mark Weggeland GPMA Manager Attachments: Exhibit A - Map of Proposed NK-65A Well Bore Location and Trajectory Exhibit B - West to East Cross-Section Co; w/attachment: Sonny Rix, EM L. Gurule, Forest 011 D. KnJse, CPAI G.M. Forsthoff. Chevron L. Senden, BPXA G. Gustafson, BPXA D. Strait, BPXA M. Kotowski, DO&G J. Williamson, AOGCC 2 P.3/4 MRY.31.2005 5:56PM . . NO.971 P.4/4 Exhibit A: Well Bore Location and Trajectory Exhibit B: West to East Cross-Section _u. _ .. ._ 3 #3 NK-65A ..... .1" . . Gus, We've reviewed the application for an Injection Order in NK-65A. There are a few items that need expanding upon as outlined in the attached file. In particular, we need to discuss the basis of your request for confidentiality. Jane Janc Williamson, PE <îanc williamson@admin.statc.ak.us> Reservoir Engineer Alaska Oil and Gas Conservation Commission Content-Type: applicationlmsword Comments on NK.doc Content-Encoding: base64 1 of 1 6/27/20059:38 AM . . Comments on NK-65A Injection Order 20AAC 25.402 (c)(2) Exhibit B NK-65A is within Y4 mile of the PBU boundary. The acreage to the north is unleased and as such, the State of Alaska is the mineral owner or operator. You should therefore add the SOA as operator. 20 AAC 25.402 (c)(4) o For the Commission to write an order, sufficient information must be provided in the public record. Without the discussion in Exhibit G, it is very difficult to do so. What is your basis for holding this information confidential? How long are you requesting it to be held confidential? o What is the BHP in NK-38A? o How was the recovery from waterflood calculated? o What are your plans for voidage replacement with this well. o Provide the projected rates from wells serviced by NK-65A through the life of the proj ect. o What are your plans for surveillance? 20 AAC 25.402 (c)(6) Why is this section confidential? How long should it be held confidential? As noted above, the Commission must have sufficient information within the public record to write an order. 20 AAC 25.402 (c)(9) More description of evidence for or against formation water sensitivity must be provided. If you are using Prudhoe as the model, what experience have they had with scaling or other formation damage (clays, etc.)? 20 AAC 25.402 (c)(10) Is the planned injection pressure above the fracture gradient of the Ivishak? 20 AAC 25.402 (c)(ll) Fracture gradients should be provided as a function oflithology (the Ivishak and the confining shales). You can use Prudhoe information for your basis. #2 STATE OF ALASKA . NOTICE TO PUBLISHER . ADVERTISING ORDER NO. ADVERTISING ORDER INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE AO-02514038 F AOGCC R 333 W 7th Ave, Ste 100 o Anchorage, AK 99501 M AGENCY CONTACT DATE OF A.O. Jody Colombie PHONE May 26, 2005 peN (907) 793 -1271 DATES ADVERTISEMENT REQUIRED: ~ Anchorage Daily News PO Box 149001 Anchorage, AK 99514 May 27,2005 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: Type of Advertisement X Legal D Display Advertisement to be published was e-mailed D Classified DOther (Specify) SEE ATTACHED REF TYPE 1 VEN 2 ARD 3 4 NUMBER I AOGCC, 333 W. 7th Ave., Suite 100 Anchora!!e_ AK 99501 AMOUNT DATE I I TOTAL OF I PAGE 1 OF ALL PAGES$ 2 PAGES COMMENTS 02910 I:IN åMnllNT ~V ('(' Pr.M 1(' å('('T I:V NMR DIST LlQ 05 02140100 73451 2 3 /ì -~ R:QUISITION~ BY~""'''_____ /uI i-i', _ e-'" /\1, ,¡ - /T)' ^ _./ ¡Ai i .' i ¿iVl "'-~_f t---! \ j IDIVISION APPROVAL: // Re: [Fwd: Re: Notice] . . Subject: Re: [Fwd: Re: Notice] From: Kimberly" <KKirby@adn.com> Date: Thu, 14:21:21 -0800 ~pº,y Hello lody: Here is the updated information on your revised notice. Please let me know if you have any further changes or have any questions. Account Number: STOF 0330 Legal Ad Number: 504379 Publication Date(s): May 27,2005 Your Reference or PO#: 02514038 Cost of Legal Notice: $170.24 Additional Charges: Web Link: E-Mail Link: Bolding: Total Cost To Place Legal Notice: $170.25 Your Legal Notice Will Appear On The Web: www.adn.com: XXXX Your Legal Notice Will Not Appear On The Web www.adn.com: Thank You, Kim Kirby Anchorage Daily News Legal Classified Representative E-Mail: legalads@adn.com Phone: (907) 257-4296 Fax: (907) 279-8170 On 5/26/05 12:47 PM, "lody Colombie" <jody_colombie@admin.state.ak.us> wrote: thank you -------- Original Message -------- Subject: Re: Notice Date: Thu, 26 May 2005 12:46:45 -0800 From: lody Colombie <jody _ colombie@admin.state.ak.us> <mailto:jody colombie(a?admin.state.ak.us> Organization: State of Alaska To: lody Colombie <jody_colombie@admin.state.ak.us> <mailto:iody colombie(a?admin.state.ak,us> References: <BEBB6312.26A8%KKirby@adn.com> <mailto:BEBB63 12.26A8%KKirby(a?adn.com> <429634D5,l 050207@admin.state.ak.us> <mailto:429634D5.1 050207 (a?admin.state.ak.us> 10f3 5/26/2005 2:22 PM Re: [Fwd: Re: Notice] . . Here is the corrected Notice. thank you lody Colombie wrote: Kim, please hold this. There is a mistake in the 1st paragraph. Thank You lady Kirby, Kimberly wrote: Hello lody: BE SURE TO CHECK OUT THE LEGAL NOTICES ON-LINE, WE RECENTLY CREATED NEW LEGAL SECTIONS ON-LINE ESPECIALLY FOR THE STATE OF ALASKA. WE ARE OFFERING A 90 DAY FREE TRIAL ON ALL LEGAL ADVERTISING AS OF MAY 9TH TO PROMOTE OUR NEW ON-LINE, USER FRIENDLY CATEGORY'S. PLEASE TAKE THIS TIME TO TRACK YOUR CUSTOMERS AND SEE IF ON-LINE ADVERTISING IS RIGHT FOR YOU, Following is the confirmation information on your legal notice. Please review and let me know if you have any questions or need additional information. Account Number: STOF 0330 Legal Ad Number: 504379 Publication Date(s): May 27,2005 Your Reference or PO#: 02514038 Cost of Legal Notice: $167.20 Additional Charges: Web Link: E-Mail Link: Bolding: Total Cost To Place Legal Notice: $167.20 Your Legal Notice Will Appear On The Web: www.adn.com: <http://www.adn.com:> XXXX Your Legal Notice Will Not Appear On The Web www.adn.com: <http://www.adn.com:> Thank You, Kim Kirby Anchorage Daily News Legal Classified Representative E-Mail: legalads@adn.com Phone: (907) 257-4296 Fax: (907) 279-8170 20f3 5/26/20052:22 PM Re: [Fwd: Re: Notice] 30f3 . . On 5/25/05 4:11 PM, "Jody Colombie" <jody_colombie@admin.state.ak,us> <mailto:iody coIombie(Cl)admin.state.ak.us> wrote: Please publish on Friday 5/27/05. Jody Colombie 5/26/20052:22 PM . . Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: Application for Injection Order in well NK-65A, Prudhoe Bay Field BP Exploration (Alaska) Inc., by letter dated May 18, 2005, has requested that the Alaska Oil and Gas Conservation Commission grant an injection order, in accordance with 20 AAC 25.402, to allow injection of water for enhanced recovery purposes into the Well NK-65A within the Ivishak Formation (Raven Accumulation - undefined oil pool) in the Prudhoe Bay Field. NK-65A is located in Section 30, TI2N-RI6E, Umiat Median. The Commission has tentatively scheduled a public hearing on this application for July 7, 2005 at 9:00 am at the offices of the Alaska Oil and Gas Conservation Commission at 333 West th Avenue, Suite 100, Anchorage, Alaska 99501. A person may request that the tentatively scheduled hearing be held by filing a written request with the Commission no later than 4:30 pm on June 17,2005. If a request for a hearing is not timely filed, the Commission may consider the issuance of an order without a hearing. To learn if the Commission will hold the public hearing, please call 793-1221. In addition, a person may submit a written protest or written comments regardin~ this application to the Alaska Oil and Gas Conservation Commission at 333 West t A venue, Suite 100, Anchorage, Alaska 99501. Written protest or comments must be received no ìatcr th!!n 4:30 pm on June 28, 2005 except that if the Commission decides to hold a public hearing, wriut:lÌ protest or comments must be received no later than the conclusion of the July 7, 2005 hearing. isa . 'ty who may need special accommodations in IC ring, please contact Jody Colombie at 793- Published Date: May 27, 2005 ADN AO# 02514038 . Anchorage Daily News Affidavit of Publication . 1001 Northway Drive, Anchorage, AK 99508 PRICE OTHER OTHER OTHER OTHER. OTHER GRAND AD# DATE PO ACCOUNT PER DAY CHARGES CHARGES #2 CHARGES #3 CHARGES #4 CHARGES #5 TOTAL 504379 OS/Ll/200s 02514038 STOF0330 $170.24 $170.24 $0.00 $0.00 $0.00 $0.00 $0.00 $170.24 That said newspaper has been approved by the Third Judicial Court, Anchorage, Alaska, and it now and has been published in the English language continually as a daily newspaper in Anchorage, Alaska, and it is now and during all said time was printed in an office maintained at the aforesaid place of publication of said newspaper. That the annexed is a copy of an advertisement as it was published in regular issues (and not in supplemental form) of said newspaper on the above dates and that such newspaper was regularly distributed to its subscribers during all of said period. That the full amount of the fee charged for the foregoing publication is not in excess of the rate charged private individuals. Notice of Public Hearing _ STATE OF ALASKA Alaska Oil and Gas conservation commission Re:APplication for Injection Order .in well NK-65A, Prudhoe Bay Field BP Exploration (Alaska) .Inc., by letter dated May 18, 20Q5. has requested thOt .the Alaska Oil and Gas Conservation Commission grant an inlection ~r!ler! In accordance with 20AAC 25.402, to allaw !mectlon of water tor enhonced recovery purpoSes mto the Well NK-65A within the Ivishok Formation (Raven Accumulation - undefined oil poo) In the Prudhoe Bay Field. NK-65A is located in Section 30, T12N-R 16E, Umiat Median. The Commission has tentot.ivelY scheduled a public heorlng on this applicotJon for July 7.2005 at 9:00 am ot the offices of the Alaska Oil and Gas co~servation Commission at 333 West 7th Avenue. SUIte 100, Anchorage, Alaska 99501. A persan may request that the tentatively schedured hearing be h!,ld by filing a written request with tM Commis- slan'na later than 4:30 pm on June.17, 2005. If a reCluest for a hearing is not. timely filed the CommisSionmaycansider the Issuçmce of a~ o~der without a hearing. To learn If the Cammi$- ~~~-12~~" hold the public heoring,,:lease call STATE OF ALASKA THIRD JUDICIAL DISTRICT Teresita Peralta, being first duly sworn on oath deposes and says that she is an advertising representative of the Anchorage Daily News, a daily newspaper. Signed Y¡¡p~p/ jtU I n addition, a person may submit ö written pro' test or written comments regarding this apPlica- tion to the Alaska Oil and Gas Canservation Com- mission at 333 West 7th Av.enue. Suite 100 Anchoroge. Alask099501, Written pretest or com: ments must be received no later th!Ín 4:30 pmon J!,ne 28.2005 except that if the Commission de- . cldes to hold a 'public hearing, written protest or cOmments must be received no later than the con- cl~slon of the July 1. ?005 heoring. . If you ~re 0 person with a dlsahility WhO may need speClol accommodation.s in order to .com- ment or to attend the pUblic heoring, pleose con- ~J,JOdY Colombie ot.793-1221 no later thonJulY5. Is!: John K, Norman Chairman ADN AOII 02514038 Published Dote, May 27, 200.5 Subscribed and sworn to me before this date: fflo¡ 3J, ;JJJoJ Notary Public in and for the State of Alaska. Third Division. Anchorage, Alaska MY COMMISSION EXPIRES, ()~ 1aoo 7 ¡) 1.'1 fa II / / · n ,"el<'Y "'/ j(~~ // .R~~~~~~~{~ .........'P. .. ~ --- ~,~. It .,'''.. ~~~Qa ~ ,~ ::~:{~~_~~, ,.' ~\~t .:¡.,~-,;~ .'<1" ,.-.<..:":.,'¡d ,~~ . ,,~...."" -' ,~,·,5,_1' Jif:~-/'" oJ '") _ -~ :'\.~ J'~.t':"':~_: /"'~"rf~ ~',,_ ,,~ h\"2\~ ~;j < -_~¡J~t~x~" _ , \\ '\ ./.f.lliJjJ) Re: Notice . . Subject: Re: Notice From: Jody Colombie <jody_colombie@admin.state.ak.us> Date: Thu, 26 May 2005 12:43:01 -0800 To,: "Kirby,.Ki rly" <KKirby@adn.com> Kim, please hold this. There is a mistake in the 1 st paragraph. Thank You J ody Kirby, Kimberly wrote: Hello Jody: BE SURE TO CHECK OUT THE LEGAL NOTICES ON-LINE. WE RECENTLY CREATED NEW LEGAL SECTIONS ON-LINE ESPECIALLY FOR THE STATE OF ALASKA. WE ARE OFFERING A 90 DAY FREE TRIAL ON ALL LEGAL ADVERTISING AS OF MAY 9TH TO PROMOTE OUR NEW ON-LINE, USER FRIENDLY CATEGORY'S. PLEASE TAKE THIS TIME TO TRACK YOUR CUSTOMERS AND SEE IF ON-LINE ADVERTISING IS RIGHT FOR YOU. Following is the confirmation information on your legal notice. Please review and let me know if you have any questions or need additional information. Account Number: STOF 0330 Legal Ad Number: 504379 Publication Date(s): May 27, 2005 Your Reference or PO#: 02514038 Cost of Legal Notice: $167.20 Additional Charges: Web Link: E-Mail Link: Bolding: Total Cost To Place Legal Notice: $167.20 Your Legal Notice Will Appear On The Web: www.adn.com: XXXX Your Legal Notice Will Not Appear On The Web www.adn.com: Thank You, Kim Kirby Anchorage Daily News Legal Classified Representative E-Mail: legalads@adn.co~ Phone: (907) 257-4296 Fax: (907) 279-8170 On 5/25/05 4:11 PM, "Jody Colombie" <jody colombie@admin.state.ak.us> wrote: Please publish on Friday 5/27/05. Jody Colombie lof2 5/26/2005 12:43 PM Re: Notice . . 20f2 5/26/2005 12:43 PM . . Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: Application for Injection Order in well NK-65A, Prudhoe Bay Field BP Exploration (Alaska) Inc., by letter dated January 12, 2005, has requested that the Alaska Oil and Gas Conservation Commission grant an injectionorder, in accordance with 20 AAC 25.402, to allow injection of water for enhanced røéovery purposes into the Well NK-65A within the Ivishak Formation CRav. ea~' ccum~lation - undefined oil pool) in the Prudhoe Bay Field. NK-65A is located in Se . n 30/Í12N-RI6E, Umiat Median. The Commission has tentatively sChedV'I~. lic hearing on this application for July 7, 2005 at 9:00 am at the offices o~ e ~laska Oil and Gas Conservation Commission at 333 West ih Avenue, Su te 10 Anchorage, Alaska 99501. A person may request that the tentatively scheduled ea' g be held by filing a written request with the Commission no later than 4:30 pm on Ju 17,2005. '. / If a request for a hearing i A1.ot Imely filed, the Commission may consider the issuance of an order without a he To learn if the Commission will hold the public hearing, please call 793 fr" . J ') / In addition, a . rson ~bmit a written protest or written comments regardinß this application to the \ lask~v il and Gas Conservation Commission at 333 West i Avenue, Suite 100, An ora e, Alaska 99501. Written protest or comments must be received no later than 4:3 on June 28,2005 except that if the Commission decides to hold a public hearing, w tten protest or comments must be received no later than the conclusion of the July 7, 2005 hearing. person with a dis llity who may need special accommodations in p lic ring, please contact Jody Colombie at 793- // ,/ ./ // /' / PJrtJlished Date: May 27, 2005 ÁDN AO# 02514038 STATE OF ALASKA ADVERTISING ORDER PUbliS.inal Copies: Department Fiscal, Depart.ceiving NOTICE TO PUBLISHER Ao.FRM 02-902 (Rev, 3/94) ADVERTISING ORDER NO. INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATIACHED COPY OF ADVERTISEMENT MUST BE SUBMITIED WITH INVOICE AO-02514038 F AOGCC 333 West ih Avenue. Suite 100 A nr.hnr::lu~ A K QQ'iO 1 907-793-1221 AGENCY CONTACT DATE OF A.O. R o M .Jodv Colombie Mav 26. 2005 PHONE peN (907) 793 -12).1 DATES ADVERTISEMENT REQUIRED: T o Anchorage Daily News PO Box 149001 Anchorage, AK 99514 May 27,2005 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: United states of America AFFIDAVIT OF PUBLICATION REMINDER State of ss INVOICE MUST BE IN TRIPLICATE AND MUST REFERENCE THE ADVERTISING ORDER NUMBER. A CERTIFIED COpy OF THIS AFFIDAVIT OF PUBLICATION MUST BE SUBMITTED WITH THE INVOICE. ATTACH PROOF OF PUBLICATION HERE. division. Before me, the undersigned, a notary public this day personally appeared who, being first duly sworn, according to law, says that helshe is the of Published at in said division and state of and that the advertisement, of which the annexed is a true copy, was published in said publication on the day of 2005, and thereafter for _ consecutive days, the last publication appearing on the _ day of , 2005, and that the rate charged thereon is not in excess of the rate charged private individuals. Subscribed and sworn to before me This _ day of 2005, Notary public for state of My commission expires 02-901 (Rev. 3/94) AO.FRM Notice . . Subject: Notice From: Jody Colombie <jody_colombie@admin.state.ak.us> Date: Wed, 25 May 2005 16: 11 :41 -0800 ega chorageDaily News <legalads@a: Please publish on Friday 5/27/05. Jody Colombie Content- Type: application/msword Order form.doc Content-Encoding: base64 Content-Type: application/msword Notice NK-65A.doc Content-Encoding: base64 1 of 1 5/25/2005 4: 11 PM Injection Notice NK-65A . . Subject: Injection Notice NK-65A From: Jody Colombie <jody_colombie@admin.state.ak.us> Date: Wed, 25 May 2005 16:13:59 -0800 osed-recipients: ; B ert E <c.hansen@i <StewmaS ecolaw <ec jbrid <jda <cb <shannon. <mark.p.w tjr <t lof2 5/25/2005 4: 17 PM Injection Notice NK-65A . . 20f2 5/25/2005 4: 17 PM Citgo Petroleum Corporation PO Box 3758 Tulsa, OK 74136 Mona Dickens Tesoro Refining and Marketing Co. Supply & Distribution 300 Concord Plaza Drive San Antonio, TX 78216 Jerry Hodgden Hodgden Oil Company 408 18th Street Golden, CO 80401-2433 Kay Munger Munger Oil Information Service, Inc PO Box 45738 Los Angeles, CA 90045-0738 Mark Wedman Halliburton 6900 Arctic Blvd. Anchorage, AK 99502 Ciri Land Department PO Box 93330 Anchorage, AK 99503 Jill Schneider US Geological Survey 4200 University Dr. Anchorage, AK 99508 Darwin Waldsmith PO Box 39309 Ninilchick, AK 99639 Penny Vadla 399 West Riverview Avenue Soldotna, AK 99669-7714 Bernie Karl K&K Recycling Inc. PO Box 58055 Fairbanks, AK 99711 . . Mary Jones XTO Energy, Inc. Cartography 810 Houston Street, Ste 2000 Ft. Worth, TX 76102-6298 David McCaleb IHS Energy Group GEPS 5333 West heimer, Ste 100 Houston, TX 77056 Robert Gravely 7681 South Kit Carson Drive Littleton, CO 80122 George Vaught, Jr. PO Box 13557 Denver, CO 80201-3557 Richard Neahring NRG Associates President PO Box 1655 Colorado Springs, CO 80901 John Levorsen 200 North 3rd Street, #1202 Boise, 10 83702 Samuel Van Vactor Economic Insight Inc. 3004 SW First Ave. Portland, OR 97201 Michael Parks Marple's Business Newsletter 117 West Mercer St, Ste 200 Seattle, WA 98119-3960 Schlumberger Drilling and Measurements 2525 Gambell Street #400 Anchorage, AK 99503 David Cusato 200 West 34th PMB 411 Anchorage, AK 99503 Baker Oil Tools 4730 Business Park Blvd., #44 Anchorage, AK 99503 Ivan Gillian 9649 Musket Bell Cr.#5 Anchorage, AK 99507 Gordon Severson 3201 Westmar Cr. Anchorage, AK 99508-4336 Jack Hakkila PO Box 190083 Anchorage, AK 99519 James Gibbs PO Box 1597 Soldotna, AK 99669 Kenai National Wildlife Refuge Refuge Manager PO Box 2139 Soldotna, AK 99669-2139 Richard Wagner PO Box 60868 Fairbanks, AK 99706 Cliff Burglin PO Box 70131 Fairbanks, AK 99707 Williams Thomas Arctic Slope Regional Corporation Land Department PO Box 129 Barrow, AK 99723 North Slope Borough PO Box 69 Barrow, AK 99723 mNI kJfJú/óc? #1 bp . . . May 18, 2005 BP Exploration (Alaska) Inc. 900 East Benson Boulevard PO. Box 196612 Anchorage. Alaska 99519-6612 (907) 561-5111 Commissioners Alaska Oil and Gas Conservation Commission 333 West ih Avenue, Suite 100 Anchorage, AK 99501 R,ECEfVED MAY 1 8 2005 RE: Application for Injection for NK-65A Well Prudhoe Bay Unit Oi! & CQns. Commission Äm:hrirage Dear Commissioners: BP Exploration (Alaska) Inc. (BPXA), Operator of the Prudhoe Bay Unit (PBU), hereby makes application pursuant to 20 AAC 25.402 and 25.412 for an order authorizing injection for the NK-65A Well. This order is needed to inject water in the Ivishak Formation (Raven Accumulation) for the purpose of enhanced recovery operations from the NK-38A Well. On April 7, 2005 the Department of Natural Resources approved the NK-38A Well for tract operations through July 31,2005. BPXA hereby requests interim approval to inject water into the Ivishak Formation for enhanced recovery benefits through December 31,2005 or until approval of an Area Injection Order for the Raven Pool. We have addressed the applicable regulatory requirements below and in the attachments. Please maintain the exhibits and other information marked "Confidential" as confidential in accord with AS 31.05.035 and 11 AAC 25.537. 1. 20 AAC 25.402 (c)(1) - a plat showing the location of each proposed injection well, abandoned or other unused well, production well, dry hole, and other well within one-quarter mile of each proposed injection well; Exhibit A-1 and A-2 are plats showing the location of all wells in the area, including all Kuparuk Formation wells and the recently drilled Ivishak injection well NK-65A and the Ivishak production well NK-38A. 2. 20 AAC 25.402 (c)(2) - a list of all operators and surface owners within a one-quarter mile radius of each proposed injection well; BPXA is the only operator, and the State of Alaska and the heirs of Native allottee Andrew Oenga are the only surface owners within a one-quarter mile radius of the proposed injection well. . . 3. 20 AAC 25.402 (c)(3) - an affidavit showing that the operators and surface owners within a one-quarter mile radius have been provided a copy of the application for injection; An affidavit is attached as Exhibit B. 4. 20 AAC 25.402 (c)(4) - a full description of the particular operation for which approval is requested; This information is confidential and has been attached in Exhibit G. 5. 20 AAC 25.402 (c)(5) - the names, descriptions, and depths of the pools to be affected; A pool has not been established for the Ivishak Formation in the proposed area of injection. Information regarding the Ivishak formation is set forth under item 6, below. An application to establish a new Raven Pool and associated Pool Rules is planned for submittal to the commission by July 15, 2005. 6. 20 AAC 25.402 (c)(6) - the name, description, depth, and thickness of the formation into which fluids are to be injected, and appropriate geological data on the injection zone and confining zone, including lithologic descriptions and geologic names; This information is confidential and has been attached in Exhibit G. 7. 20 AAC 25.402 (c)(7) - logs of the injection wells if not already on file with the commission; There are no other injection wells in the accumulation. Logs for all wells are sent to the state as they are drilled. 8. 20 AAC 25.402 (c)(8) - a description of the proposed method for demonstrating mechanical integrity of the casing and tubing under 20 AAC 25.412 and for demonstrating that no fluids will move behind casing beyond the approved injection zone, and a description of (A) the casing of the injection wells if the wells are existing; or (8) the proposed casing program, if the injection wells are new; The casing program is included with the "Application to Drill" for NK-65A and is documented with the AOGCC in the completion record. The completion employs a 6,000' long 4 V2" liner from the sidetrack depth in the Ugnu through the Ivishak target depth. The production packer is positioned roughly vertical 3,000' above the reservoir top. 2 . . Special considerations for the liner are employed to ensure the well bore integrity in the absence of an annulus extending to the top of the reservoir: . A premium liner connection ensures liner mechanical integrity against leaks. . The liner annulus is fully cemented with a light-weight, high compressive strength lead cement, followed by 1,000 annular feet of 15.8 ppg class G slurry. An XN-nipple profile is positioned in the liner just above the perforations to allow for future pressure-testing plugs. 9. 20 AAC 25.402 (c)(9) - a statement of the type of fluid to be injected, the fluid's composition, the fluid's source, the estimated maximum amounts to be injected daily, and the fluid's compatibility with the injection zone; Type of Fluid/Source Fluids requested for injection are: a. Sea water from the STP b. Produced water from the LPC (possible in the future) c. Fluids injected for purposes of stimulation (possible in the future) The maximum injection rate of 15,000 bwpd will also be the initial target rate. This is done in order to make up voidage from production prior to the initiation of water injection. The injection rate is expected to decline to - 6,000 bwpd. Water compatibility problems are not expected because of the successful history of sea water injection into the Prudhoe Bay reservoir. 10. 20 AAC 25.402 (c)(10) - the estimated average and maximum injection pressure; During the injection period, the maximum injection pressure will be 2,500 psi. Well NK-65A wellhead injection pressure will be determined by the Niakuk Oil Pool requirements, but the average wellhead injection pressure is expected to be about 1 ,500 psi. 11.20 AAC 25.402 (c)(11) - evidence to support a commission finding that each proposed injection well will not initiate or propagate fractures through the confining zones that might enable the injection fluid or formation fluid to enter freshwater strata; There are no freshwater strata in the area of issue. Therefore, even if a fracture were propagated through all confining strata, injection or formation fluid would not come in contact with freshwater strata. 3 · e Injection in the Ivishak above fracture parting pressure may be necessary to allow for additional recovery of oil. In no instance would such injection pressures breach the integrity of the confining zone. The Ivishak Formation is overlain by over 200' of Kingak shale. The Kingak is a thick shale sequence which would tend to behave as a plastic medium and can be expected to contain significantly higher pressures than sandstones. 12. 20 AAC 25.402 (c)(12) - a standard laboratory water analysis, or the results of another method acceptable to the commission, to determine the quality of the water within the formation into which fluid injection is proposed; Seawater from the STP will be injected initially. Exhibit H shows an analysis of the Beaufort Sea source water, as well as produced water from the Lisburne, Pt. Mcintyre and Niakuk fields. 13. 20 AAC 25.402 (c)(13) - a reference to any applicable freshwater exemption issued under 20 AAC 25.440; The lack of fresh water and underground sources of drinking water in the Niakuk Injection Area eliminates the need for an aquifer exemption. 14. 20 AAC 25.402 (c)(14) - the expected incremental increase in ultimate hydrocarbon recovery; Reservoir modeling indicates an incremental recovery from water-flooding to be approximately 10 - 20% of the original oil in place, relative to primary depletion. 15. 20 AAC 25.402 (c)(15) - a report on the mechanical condition of each well that has penetrated the injection zone within a one-quarter mile radius of a proposed injection well. There are no wells that penetrate the Ivishak injection zone within a one-quarter mile radius of well NK-65A. The NK-65 parent well is within one-quarter mile, but within the Kuparuk Formation. The bottom portion of the NK-65A well was plugged according to regulations prior to the drilling the NK-65A side-track well and will not be of concern. If you have any questions or need additional information, please don't hesitate to contact Gary Gustafson at 564-5304. Thank you for your timely consideration. Sincerely Yours, Mark Weggeland GPMA Manager ~w 4 . . Attachments Exhibit A-1 -Well Locations: Niakuk Exhibit A-2 -Well Locations: NK-65A Area Exhibit B - Affidavit Exhibit C - Top Ivishak Depth - Confidential Exhibit D - Cross Section along NK-38A Well bore - Confidential Exhibit E - Cross Section between NK-38A and proposed NK-65A- Confidential DS NK-Pad plot plan Response to Items #4 and #6 - Confidential Water Analysis Exhibit F - Exhibit G - Exhibit H - Cc: Sonny Rix, EM Dan Kruse, CPAI Gary Gustafson, BPXA Leslie Senden, BPXA Mike Kotowski, DNR Jane Williamson, AOGCC 5 . . Exhibit B Affidavit STATE OF ALASKA THIRD JUDICAL DISTRICT I, Mark Weggeland, declare and affirm as follows: 1. I am the GPMA Manager for BP Exploration (Alaska) Inc., the designated operator of the Prudhoe Bay Unit and the Niakuk Participating Area (P A), and as such have responsibility for unit and tract operations within the Niakuk area, including the NK-65A Well. 2. On May~, 2005, I caused copies of the May 18,2005 Application for Area Injection Order for the NK-65A Well to be provided to the below referenced surface owners and operator of all land within a one-quarter mile radius of the proposed injection area. Operators: Prudhoe Bay Unit Operator: Attention: M. Johnson BP Exploration (Alaska) Inc. PO Box 196612 Anchorage, AK 99519-6612 Surface Owners: Attention: B. Loeffler State of Alaska Division of Mining, Land and Water Department of Natural Resources 550 West ih Avenue, Suite 800 Anchorage, AK 99501-3510 Heirs of Andrew Oenga clo Inupiat Community of the Arctic Slope P.O. Box 934 Barrow, Alaska 99723 ~p~ l~~~ Date - - - ) . . CONFIDENTIAL DOCUMENTS LOCATED , IN CONFIDENTIAL ROOM UNDER CO 555 . . Exhibit H - Water Analysis Usbume Produced Wat.... Analysis Beaufort Sea Source Wat.... Analysis Determination Value Units Determination Summer Winter Un~s pH 8.5 M9"l Specific Gravity 1.013 1.024 M9"l Calcium 105.0 M9"l pH 7.5 7.8 M9"l Magnesium 50.0 M9"l Calcium 196.0 365.0 M9"l Sodium (calc) 10555.0 M9"l Magnesium 631.0 1190.0 M9"l Sodium (M) 13875,0 M9"l Sodium & Potassium 5680.0 10400.0 M9"l Strontium 3.8 MgIL Strontium 0.0 0.0 MgIL Bañum 1.1 MgIL Barium 0.0 0.0 MgIL Iron 1.1 MgIL Iron 0.0 0.0 MgIL Hydroxyl 0.0 MgIL Bicarbonale 85.0 142.0 MgIL Carbonate 228.0 MgIL Carbon Dioxide Calc, 0.0 0.0 MgIL Bicarbonate 2618.0 MgIL Total Dissolved Sorod, 17852.0 32787.0 MgIL Chloride 14261.0 M9"l Chloride 9880.0 18200.0 MgIL Sutfate 750.0 MgIL Sutfa\e 1380.0 2490,0 MgIL T DIal DisSoNed Solid, 28753.0 MgIL Resistiv~y @ 70°F 0.422 0.255 Ohms Suspended Solids 6.0 1.0 MgIL Pt. Mcintyre Produced WaW Analysis Niakuk Produced Water Analysis Determination Value Units Determination Value Units MW pH 7.2 MgIL pH 6.8 MgIL Calcium 24.0 MgIL Calcium 84.0 MgIL Magnesium 9.0 MgIL Magnesium 25.0 MgIL Sod'lUm 8540.0 MgIL Sodium 8560.0 MgIL Potassium 179.0 . MgIL Potassium 128.0 MgIL Strontium 7.0 MgIL Strontium 3.0 MgL Bañum 11.0 MgIL Barium 1,1 MgL Iron 1.4 MgIL Iron 0.6 MgIL Hydroxyl 0.0 M9"l Bicarbonate 2800.0 MgIL Carbonate 0.0 MgIL Chloride 15499.6 MgIL Bicarbonate 3262.0 MgL Sutfate 484.6 MgIL Resistivity @ 68°F 0.4 Ohms T alai Dissolved Sorod, 27585.9 MgL I~ 10597.0 M9"l Silicon 24.0 MgIL Exhibit J-3