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Home My WebLink About203-070 · . Image Project Well History File Cover Page XHVlE 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. ~O 3 - Q 1 0 Well History File Identifier Organizing (done) o Two-sided 1111111111111111111 o Rescan Needed 111111111111111I11I RESCAN ~Ior Items: ~reYSCale Items: 1 r~ D Poor Quality Originals: DIGITAL DATA OVERSIZED (Scannable) D Maps: o Other Items Scannable by a large Scanner D Diskettes, No. D Other, NolType: OVERSIZED (Non-Scannable) D Other: D Logs of various kinds: Datel~/ßiOb o Other:: NOTES: BY: ~ /5/ ~ BY: ~ /5/ 11111111I111111111I M1E &3 Project Proofing BY: Date: = TOTAL PAGES (Count does not include cover sheet) /5/ Scanning Preparation Production Scanning 11111111111111 "III Stage 1 Page Count from Scanned File: ~ LJ- (Count does include cover sheet) Page Count Matches Number in Scanning Preparation: -1L YES Gi0 Date: 1d-1/3!O(p If NO in stage 1, page(s) discrepancies were found: YES NO Stage 1 /5/ VVt P NO BY: BY: Maria Date: /5/ 1111111111111111111 Scanning is complete at this point unless rescanning is required. ReScanned 111111111111111111I BY: Maria Date: /5/ Comments about this file: Quality Checked 11111111I1111111111 10/6/2005 Well History File Cover Page.doc • • -~.: . ~.r. _~~ ~~. ~..m.,~. ~: ~~ MICROFILMED 43/01 /2008 DD NOT PLACE ANY NEW MATERIAL UNDER THIS PAGE F:1LaserFiche\CvrPgs_Inserts\Microfilm_Marker.doc Subject: Re: Some Well Qulns . From: Thomas Maunder <tom_maunder@admin.state.ak.us> Date: Mon, 03 Jan 200508:44:29 -0900 To: duane vaagen <duane@fairweather.com> Hi Duane, Thanks for the response. For Long Lake, I think that given the we are now in January, the plugs are in place and it will be some 5 months at best until further work can be done that it is appropriate to file a 407 with the well listed as suspended. That will help "clear" the well from the "outstanding well" list that I have consulted. For Simpco Moquawkie No. I, it is appropriate to submit a 404 reporting the work that was accomplished. Since no activity has been done on the other wells, I will just put a copy of this note in the well file. I appreciate your helping me "clear" these wells from the list. It saves me getting questions from our statistical people when they pull the report and find outstanding wells. Call or message with any questions. Tom Maunder, PE AOGCC duane vaagen wrote: Tom: Regarding the wells in question, the following applies: Long Lake No.1: This well was Plugged with all plugs to surface as indicated in our P&A program. The only thing remaining to be done is cut off the starter head and weld on the marker. Aurora elected to leave the head on at this time and leave the pad intact as they were considering some possible future utility for the well, perhaps a sidetrack out at shallow depth. When Aurora made the decision to leave the head on, I consulted with Winton Aubert about this and he indicated that would be OK for the short term while Aurora re-evaluated their geology based on the test results of the Long Lake No.1. Aurora is planning on drilling in the region again in 2005 and may want to see what they find before fully pulling the plug on the LL #1 site. Lone Creek No.3: The well was never drilled, nor was a site was ever built to drill a well: Aurora is still working on some seismic issues for the region, the results of which I have not heard yet. ~~-l)h 0 West Moquawkie No.1: The well was never re-entered. Aurora is re-evaluating their seismic in the region based on the Moquawkie No. 1 ~ ~ production results and the results obtained on the testing of the Simpco Moquawkie No.1 performed this fall. There should be more news on the plan ahead this winter concerning this DrOSDect. While I'm updating, the Simpco MoquawKie No. l was tested this fall the results of which indicate we may have to perform a work-over at some future date to try and make commercially productive. No well work-over activity took place. We just opened it up to see what it would do. The well is currently shut in. I hope this answers your questions on the wells in question. Please call if there is anything else you need in the way of information or if you find we are lacking in our reporting. Regards and have a Happy New Year! Duane 10f2 1/3/2005 10:44 AM -----Original MeSSage~- 4IIt From: Thomas Maunder [f.r.1_?:_~~~?:_!:g~_f.r.1_§:"l!:~ª~!::~"!:..ci..!.'l_~_~:.?!:~~~:..9.:~_:,:,:,:,J December 30, 2004 1:08 PM To: duane vaagen Subject: Some Well Questions Sent: Thursday, Duane, In the new year, could you look into the status of reports on these wells. Long Lake #1--203-068--Last correspondence I show was with regard to not having an inspector to witness the cut off. I don't see a 407 in the file. Lone Creek #3--203-062--Was this well drilled?? W. Moquawkie #1--203-070--Likewise, were there any activities on this well?? Hope you have a happy new year. Tom 20f2 1/3/2005 10:44 AM ~ 1TŒ (ffi~ ~~~~æ . AI4ASIiA OIL AND GAS CONSERVATION COmnSSION J. Edward Jones Vice President Aurora Gas, LLC 1029 West 3rd Ave. Ste. 220 Anchorage, AK 99501 FRANK H. MURKOWSKI, GOVERNOR 333 W. 7'" AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Re: West Moquawkie #1 Aurora Gas, LLC Permit No: 203-070 Surface Location: 1200'FSL, 2390' FEL, S36, T12N, R12W, SM Bottomhole Location: 1200'FSL, 2390' FEL, S36, T12N, R12W, SM Dear Mr. Jones: 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. Cased hole logs must be acquired as specified in Aurora's logging program that was provided to the Commission on April 22, 2003. Because this is a re-entry of an abandoned well that was previously logged, Aurora must record a minimum of a gamma ray log across the open hole portions of the re-entered wellbore for correlation purposes. 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). Sincerely, s~ Chair BY ORDER o.F THE COMMISSION DATED this~ day of December, 2003 cc: Department ofFish & Game, Habitat Section w/o encl. Department of Environmental Conservation w/o encl. Exploration, Production and Refineries Section 1 a. Type of work [] Drill [X] Redrill 1 b. Type of wel [ ] Service [X ] Development Ga~ [ ] Single Zone [ X] Multiple Zone r Xl Re-Entrv r] Deepen ¡ í EXDloratol"t lStratiaraDhic Tesl r I Development Oi 2. Name of Operatol Aurora Gas, LLC. 5. Datum Elevation (OF or KB 10. Field and Poo 558.3' AMSL (OF) Moquawkie Gas Field 3. Address 1029 West Third Avenue, Suite 220 6. Property Designatior Anchoraae, Alaska 99501 C-61389 4. Location of well at surfacE 1200' FSL, 2390' FEL, Sec 36, T12N, R12W SM 7. Unit or Property NamE 11. Type Bond (See 20 AAC 25.025) At top of productive interva 1200' FSL, 2390' FEL, Sec ~ T12N, R12W SM MOQuawkie Letter of Credit 8. Well Number Number NZS 429815 ,.9 West MOQuawkie NO.1 At ·total depth @ Proposed Final R-Entry Depth 3600' 9. Approximate spud datE Amount $200,000 1200' FSL, 2390' FEL, Sec 36, T12N, R12W, SM 20-Jun-03 12. Distance to nearest property linE 13. Distance to nearest wel 14. Number of acres in propert~ 15. Proposed depth (MD and lVD 1200' > 1/4 mile 3610 3600' MD & lVD 16. To be completed for deviated wells 17. Anticipated pressure {see 20 AAC 25.035 (e) (2)} Kick Off Depth NA Maximum Hole AnoleNA Maximum surface 1224 pslg, At total depth (TVD) 1620 Dsic 18. Casing Program Setting Depth Size Specifications TOD Bottom Quantity of Cement Hole Casino Weioht Grade Couplino Lenoth MD lVD MD lVD (include stage data) 121/4" 7" 23 J-55 LTC 3550 0 0 3550 3550 263 bbls 12.5ppg "G" Lead and 117 bbls 15.8ppg "G" Tail 19. To be completed for Redrill, Re-entry, and Deepen Operations. Present well condition summary Total depth: MD 0 feet Plugs (measured) 15 Sack "G" Plug at surface. 100 Sack "G" plug 2435' - 2565' lVD 0 feet Effective depth: MD 0 feet Junk (measured) lVD 0 feet Casing Length Size Cemented MD lVD Structural Conductor 82' 30" 230 sx "G" 82' 82' Surface 790' 20" 1200 sx "G" 790' 790' Intermediate 2515' 13 3/8" 2223 sx "G" 2515' 2515' Production NA RECEIVED Liner APR 0 9 2003 Alaska Oil & Gas Cons. Convnission Perforation depth: measured NA Anchorage true vertical 20. Attachments [ X] Filing Fee [ X] Property Plat [ X] BOP Sketch [ ] Diverter Sketch [ X] Drilling Program r Xl Drillina Fluid Proaramr I Time vs Depth Plot [ I Refraction Analvsis r 1 Seabed Report [ 1 20AAC25.050 Reo. Contact Engineer Name/Number: J. Edward Jones / (713)977-5799 Prepared By NamelNumber: Duane H. Vaagen / 258-3446 21. I hereby ~hØ-#le fOreg~nd correct to the bestof my knowledge Signed ¿Æ Y;. '¡z, ~-/." ~ ~ 7/03 ~~ U/'i Title '/('/ 7",/1 ~n Date // // Commission Use Only I Permit N~e~3_ o7õl~umber So- 283 - 2C035 - 90 AR4rrr:¡ å?,te See cover letter IJII' I J.; for other reQuirements Conditions of Approval: Samples Required: [ ] Yes l)( No 'Mud Log Required [ ]Ye~~NO Hydrogen Sulfide Measures: [ ] Yes [)( No Directional Survey Req'd [ ] Yes No Required Working Pressure for BOPE: [] 2M, 3M, [ ]5M, [ ] 10M, [ ] 15M Other: 3.aao~~'\ 'ßC~~S~~ n J ¡t/jl'l'2.. Original Signed By by order of Approved Bv ~Sarah Palin Commissioner the commission Date ItM DI(j''/ Form 10-401 Rev. 12-01-85 Submft In trri licate STATE OF ALASKA ALASKJaL AND GAS CONSERVATION COMWSION - PERMIT TO DRILL 20 AAC 25 005 ~i7l '~>i1/~ tf(l:SiYJdS OR I GIN A L [")};J¿?u J. ðD ~7 p ~--_. . .'~ . Aurora Gas, LLC. e .est MOqua~kie No.1 Well Re-Entry Program West Moquawkie No.1 Re-Entry and Re-completion Backi!round Information and Present Condition All depths herein are referenced to original RKB at 499' AMSL. West Moquawkie No.1 was spudded October 28t\ 1970 by Mobil Oil Corporation. Prior to spud, a 48" hole was drilled to 35' and a 48" conductor was driven to 38'. A 30" conductor was then driven to 82' and cemented into place with 230 sx "G" cement. The 48" conductor was pulled and an additional 30 sx of"G" were poured around the annular space at the top ofthe 30". A 17 W' hole was then drilled to 795', logs were run, the hole was opened to 26" and 20" 94# H-90 casing was set at 790'. The casing was cemented to surface with 1200 sx "G" cement. Next, a 12 V,¡" hole was drilled to 2520', logged, opened to 17 W' and 13 3/8" 61 # J-55 casing was set at 2515'. This casing string was cemented to surface with 743 sx "G" around the shoe and 1480 sx "G" through a DV collar located at 1393'. The well was then drilled to TD at 8015' MD & TVD using 12 V,¡" bits. Logs were run and the hole was subsequently plugged and abandoned with a series of cement plugs along the course ofthe wellbore (Attachment I). A cement plug was placed at surface, the wellhead was cut off and a plate was welded on. No marker post was installed. Site Access Access will use existing road system. The original access road and well site will be cleared of brush and utilized. Other then general maintenance, no new construction or disturbance is anticipated. Rii! Used for Project Aurora Well Service, Rig No. 1 (A WS #1) will be used. This is the same rig used last year for the Nicolai Creek well work. Configuration of pits and solids equipment will be similar to last year. Working floor elevation ~ 14' AGL. West MOQuawkie No.1 Re-entry. Re-Completion Procedure In order to effectively re-enter and re-complete the West Moquawkie No. 1 as a gas production well in accordance with AOGCC regulations, the following tasks must be completed: 1. Install new 13 5/8" 3000 psi wellhead assembly. 2. MI/ RU A WS Rig No.1, install and test 13 5/8" 3M BOPE. If 13 5/8" 5M, will need DSA to install. Test gas detection and PVT systems to ensure proper function. 3. Using recycled mud weighted to 9.3+ ppg, drill out cement plugs from surface to 2435' in 13 3/8" casing with 12 1/4" bits. Fairweather E&P Services, Inc. Rev. 1.3 Page 1 of7 4/7/03 Aurora Gas, LLC. .est Moquawkie No.1 Well Re-Entry Program 4. Pressure test and verify integrity of 13 3/8" casing. Isolate leaks and initiate cement squeeze procedures as needed to remediate. Pressure test to 2000 psi. e 5. Insure mud weight is 9.3 ppg, drill out cement plug across and below shoe to 2575' with 12 114" bit, shut down pumps and monitor well for flow, perform FIT using mud weight equivalent procedure. Test to 17.5 ppg MWE. POOH, LD bit, RU and RIH wI 13 3/8" casing scraper. RIH to OH below shoe, pull back into casing, circulate and condition mud to drill open hole section. 6. POOH, LD casing scraper, PU and RIH with 12 114" bit. Proceed to drill out and re-open hole to 3600', drilling out cement plug located from 2910' - 3100'. Condition mud to run OH logs. 7. POOH, LD bit, RU wireline BOP's and lubricator, PU logging string, log open-_ hole and cased hole sections of well bore. 8. RD wireline loggers, PU 12 114" bit, TIH to 3600', circulate and condition hole for . . runmng casmg. 9. POOH, LD 12114" bit and BHA, CIO 3 'l2" pipe rams with 7" casing rams. RU casing equipment, install float shoe, 1 jt of casing and install float collar 1 jt above shoe. Baker Lock all connections to 1 jt above float collar. Run 7" 23# J- 55 casing from 3550' to surface, installing centralizers as necessary. 10. RU cementers, cement casing to surface with 12.5 ppg lead and 15.8 ppg tail cement system. Based on logs and desired perforation intervals, tail system is to be of sufficient volume to adequately cover proposed production perforations. 11. Reciprocate casing while displacing cement, moving at least 20 ft. DO NOT stop moving pipe until cement has been displaced and ready to land casing. 12. Drain stack of cement ifreturns observed at surface, install slips and land casing in tension, lock in slips. WOC. 13. ND and remove 13 5/8" BOP stack, cut casing, install 13 5/8" X II" tubing spool. Install and NU II" 3M BOP stack. Ensure rams are sized to work-string, pressure test to 3000 psi. 14. PU 6 1/8" bit, RIH to top of float collar and drill up any cement stringers. POOH, LD bit, PU casing scraper, RIH to float collar. Displace out mud with filtered KCL brine weighted to 9.8 ppg. POOH, LD casing scraper. 15. RU wireline for GR CCl and perforating, wireline BOP's and lubricator. Test all. RIH, perforate and test various intervals as determined by logs in step #7. (Casing scraper needs to be run prior to running completion screen and if setting a packer below new perforations). Fairweather E&P Services, Inc. Rev. 1.3 Page 2 of7 4/7/03 Aurora Gas, LLC. e ttest Moquawkie No.1 Well Re-Entry Program 16. RD wireline, RIH with 7" casing scraper, POOH, LD casing scraper and PU completion equipment. 17. Run sand exclusion screen assembly spaced as needed across perforations. Hang assembly off permanent / retrievable gravel pack type packer with sealbore assembly. Packer to be spaced 75' minimum above screen. Packer to have millout extension installed directly below packer and profile nipple 1 joint below packer. 18. Pull workstring, Run, space out and land 27/8" 6.5# J-55 production tubing. PU and circulate, displace tubing annulus with O2 inhibited brine, land tubing and lock in place. Install blanking plug in profile nipple. 19. ND BOP, NU production tree valve assembly, install BPV, pressure test tree to 3000 psi. Pull BPV, pull blanking plug. Attachment II illustrates proposed final completion configuration. 20. Swab in well, release rig. Production Zone(s) of Interest Analysis of original well logs indicates the potential natural gas pay from ~ 2982' - 3400' in the Tyonek Formation. West Moauawkie No.1 Pressure Considerations Pressure information was gathered from the nearby Mobil Moquawkie No. 1 well, which was produced from 1965 to 1970 to supply the natural gas needs ofthe village of Tyonek before being abandoned because of production problems. Additional and more recent information was acquired during extensive testing operations carried out on offset wells Simpco Moquawkie No.1 and No.2, drilled in the 1970's. This more recent information is believed to be representative of actual pressures that may be encountered during re- entry and re-drill activities on the West Moquawkie No. 1 well. Since this well will produce from the same zones, the Simpco Moquawkie pressure information will be used for design purposes. The Simpco Moquawkie well's exhibited a pore pressure gradient of.45 psi / ft. Based on that, the maximum anticipated bottom-hole pressure one could expect would be 1620 psi at 3600 ft. A 9.2 -9.3 ppg mud and kill fluid should be sufficiently adequate to maintain well control. Maximum Anticipated Surface Pressure The maximum anticipated surface pressure (MASP) for the single 8 W' hole section can be conservatively calculated by subtracting the gas gradient from the Fairweather E&P Services, Inc. Rev. 1.3 Page 3 of7 4/7/03 Aurora Gas, LLC. .est Moquawkie No.1 Well Re-Entry Program predicted pore pressure for the TVD depth at TD. Using a pore pressure gradient of.45 and a gas gradient of .11, the MASP can be calculated as follows: e MASP = Maximum anticipated Surface Pressure = Depth(tvd) x (PPG - GG) = 3600 x (.45 - .11) = 1224 psi. A mud weight of 9.2 ppg or other, as determined by operations, will be maintained during re-entry operations. The hole will be re-opened ~25' below the 13 3/8" shoe from 2515' - 2540', and a FIT in the form of a mud weight equivalent test to 17 ppg maximum will be performed. For perforating, a filtered KCL brine weighted to 9.2 ppg or other as determined when drilling will be used. Perforating and testing will reveal actual pressures prevalent to the area and zones of interest, kill weight brine density will be adjusted accordingly. An 11" (3M) BOP system will be used, BOP tests will be performed to 3000 psi. Please see attached diagram of BOP system Drillin2: Fluid Properties: Cased Hole Recycled mud will be used to drill out cement plugs. Mud density will be maintained at 9.2 - 9.5 ppg. Open Hole Tyonek Formation Base Fluid Density PV YP API Filtrate Total Solids Polymer mud system 5% KCL 9.2 - 9.5 22 - 30 20 - 30 < 10 15 - 25 % Drillin2: Fluid System: Shale Shaker, Desilter, Centrifuge, Ditch Magnets, PVT monitors West MOQuawkie No.1. 7" Production Casin2: Analvsis and Cementim! Pro2:ram The 7" production casing will be cemented in fully from the proposed set depth of3550' to surface following standard oil-field casing cementing techniques utilizing float equipment and wiper plugs. A 12.5 ppg lead "G" cement followed with a 15.8 ppg "G" tail cement system will be used. This program is designed to insure the intended Fairweather E&P Services, Inc. Rev. 1.3 Page 4 017 4/7/03 Aurora Gas, LLC. .est Moquawkie No. 1 Well Re-Entry Program perforating / production intervals up are isolated to with 15.8 ppg "G" cement. Actual volume requirements will be dependent on results of wireline logging. e Anticipated Cement Volumes Required assuming 15.8 ppg tail slurry in OH section with 15 % excess and 12.5 ppg lead slurry in cased hole section to surface 12.5 ppg lead = 2515ft x .1045 bbl/ft = 263 bbls 15.8 ppg tail = 1035ft x .0.0982 bbl/ft x 1.15 = 117 bbls West MOQuawkie No.1. 7" Production Casin2 Properties Size (in) 7 Length (ft) ~3550 Weight (lb/ft) 23 Coupling LTC Grade J-55 (min) Collapse Resistance (psi) 3270 Internal Yield (psi) 4360 Joint Strength (1000 Ibs) 313 Body Yield (1000 Ibs) 366 Wall Thickness (in) .317 I.D. (in) 6.366 Drift Diameter (in) API 6.241 Please see attached Casing Analysis Drillin2 Hazards: Drilling in the South Central Region of Alaska offers its own challenges. Common known hazards are as follows: Trapped pressure under plugs: There is always the possibility that pockets of gas have migrated up the wellbore and have become trapped under the anyone of the series of cement plugs in place. Caution must be exercised when drilling out these plugs. Pits must be monitored for abnormal gain or loss. After drilling out cement plugs, the well should be checked for flow at connection. Shallow gas: The northwest side of Cook Inlet is noteworthy for its shallow gas hazard. All responsible personnel will be made aware and a notice of such hazards will be posted in the rig doghouse. There is no record ofH2S in the region, however; a gas detection system capable of detecting H2S as well as Fairweather E&P Services, Inc. Rev. 1.3 Page 5 of7 4/7/03 Aurora Gas, LLe. tt-est Moquawkie No. 1 Well Re-Entry Program methane will be installed on the rig with detectors at the floor level, the shale shaker and in the cellar. e Coal Seams: The Cook Inlet region is rich in coal seams, interbedded between the sands, gravels and shale's that make up the Beluga and Tyonek formations. Drilling into a coal seam will appear to be a drilling break when drilled with a tri- cone bit. The major hazard of drilling into a coal seam without observing the proper response, is the risk of stuck pipe. The proper course of action for preventing stuck pipe is two-fold. First, prior to drilling, insure the drilling fluid system is up to par, per recommendations from the on-site mud engineer. The second step to successfully drilling through coals in the Cook Inlet area is to not get greedy when coals are encountered. When a coal has been encountered, pull back above coal after drilling into it, and circulate, allowing the coal to stabilize. Re-enter, drill some more, and pull back out again. Continue in this fashion until successfully through the coal bed. The key word in successfully drilling the coal beds is patience. It should be remembered that coals behave plastically, and will flow under the weight of the overburden. The deeper the coal, the more pronounced this tendency becomes. For this reason it is critical to maintain the proper weight and viscosity of your drilling fluid to properly remove the coals drilled up, and to hold flowing coals in place. Again, heed the recommended drilling fluid program and advice offered by the on-site Mud Engineer. Annular Pack-off and stuck pipe: During re-entry and re-drilling operations of the open hole section, watch for potential pack off and stuck pipe due to cuttings settling. This may be a problem because of the relatively large annular space with respect to drill pipe and BRA OD. Ifpumps are to be shut down for any significant amount oftime while re-drilling the open-hole section, either keep pipe moving or pull back up into cased hole section above the shoe. Pack off may be characterized by higher than normal standpipe pressures, excessive pick up weight and excessive torque. Maintaining proper annular velocities will be important. Insure pumps are in good working order prior to re-entry and re- drilling OR section. Nearby Well's: There are no wells in the immediate vicinity which would pose a collision or proximity risk during well re-entry operations. Other: Sticky bentonitic clays, boulders, lost returns & differential sticking wi overbalanced muds (+ 12.5ppg) and gas influx while cementing Fairweather E&P Services, Inc. Rev. 1.3 Page 60f7 4/7/03 Aurora Gas, LLC. e .est Moquawkie No. 1 Well Re-Entry Program West Moquawkie No.1 Summary of Drillinq Hazards POST THIS NOTICE IN DOGHOUSE -v Possibility of junk in hole from original P&A procedure. -v There is potential for pressure below all cement plugs. -v There is potential for stuck pipe below the shoe at 2515' in open- hole due to coal stringers. -v Watch for potential pack off and stuck pipe due to cuttings settling. -v There is no H2S risk anticipated for this well. CONSULT THE "WEST MOQUAWKIE No.1" WELL PROGRAM FOR ADDITIONAL INFORMATION Fairweather E&P Services, Inc. Rev. 1.3 Page 70f7 4/7/03 Proposed est Moquawkie No.1 P&A'd quawkie Gas Field, Alaska PTD 170-053 D [TI Present Condition 15 5x Cement Plug at surface in casing. 133/8" & 20" Casing cut wI steel plate welded on. No Marker installed. 48" Hole 30" Conductor @ 82' IIIiIioro.. CMT'D WI ~X "G" ......... Original GL 479' Original KBE 499' 26" Hole Top Tyonek ? ..... 20" 94# H-90 @ 790' Cmtd WI 1200 5X "G" 17 1/2" Hole I I DV @ 1393', Cmtd w 11480 5x "G" to surface 10051< "G" Plug 2435 - 2565' 133/8" 61# J-55 @2515' Cmtd WI 743 5X "G" around shoe 13351< "G" Plug 2910' - 3100' 12 1/4" OH Top Hemlock ? 90 51< "G" Plug 4875'-5000" TD @ 8015' MD (8015' TVD) West Moquawkie No.1 Fairweather E&P SeNices, Inc. Rev. 02 DHV 16-Mar-2003 Drawing Not to Scale [ Proposed Present Condition 48" Hole .......... Original GL 479' Original KBE 499' 26" Hole 17 Hole Kill Weight 02 inhibited Packer fluid in tbglcsg annulus .," permanent I retrievable type packer set at 75' minimum above completion screen. configured with seal bore assembly and millout extension wI profile nipple 1 jt below packer Pre·Packed Screen Assembly placed across perforations. 90 Sk "G" Plug 4875'·5000" TD @ 8015' MD (S015' TVD) ie No.1 Gas Producer awkie Gas Field, Alaska PTD 170~053 Production tied back to surface wI 2 7/S" 6.5 ppf J-55 8rd EUE Mod tbg. I 30" Conductor @ S2' ........ CMT'D W/110 SX "G" ... 20" 94# H-90 @ 790' Cmtd WI 1200 SX "G" DV @ 1393', Cmtd w 11480 Sx "G" to surface 2 7/S" tubing wI locator nipple and seal assembly Length to be determined. 133/8" 61# J-55 @2515' Cmtd WI 743 SX "G" around shoe Exact perforation depth to be determined by OH logging. Perfs at - 2900 - 3400' Hole re-opened wI 12 1/4" Bit to 3600' 7" 23# J-55 set at 3550' Casing to be cemented to surface w/"G" Cement system. 263 bbls 12.5 ppg lead and 117 bbl15.S ppg tail 12 1/4" OH West Moquawkie No.1 Rev. 03 DHV 7-April-2003 Drawing Not to Scale Fairweather E&P Services, Inc. e WelllD West Moquawkie No. 1 Min. Safety Factors To Be Used: Body Yield: 1.5 Jt. Strength: 1.8 Collapse 1.5 Collapse While Cementing 1.5 Top Burst 1.2 Bottom Burst 1 .2 Casing Properties: Size OD: Grade: Weight ppf: Coupling: Set Depth ft Next Casing Depth 7" J-55 23.00 LTC 3550.00 (ft)MD 3550.00 (ft)MD Collapse Resistance (psi) Internal Yield (psi) Joint Strength (psi) x 1000 Body Yield (psi) x 1000 API Drift Diameter (in) Wall Thickness (in) 6.241 0.317 Fluid Properties: Material Mud Weight Anticipated Mud Wt Next Csg pt. Calculated Bouyancy Factor @ Mud Wt: Anticipated Cement Weight (ppg) Sea Water Gradient (ppg) Frac Gradient at Shoe(ppg) Frac Gradient at Next Casing Set Point Gas Gradient (psi/ft) Mud Backup Gradient ppg % Fluid Drop for Collapse Cª'pÍ,ttation (Ent~r#); e 7" Production Casing 3550.00 (ft)TVD 3550.00 (ft)TVD 3270.00 4360.00 313.00 366.00 313,000.00 * Tensile Limits 366,000.00 * Tensile Limits Weight ppg Gradient psi/ft 9.50 0.494 psi/ft 9.50 0.494 psi/ft 0.85 15.8 0.822 psi/ft 8.94 0.465 psi/ft 17 0.884 psi/ft 17 0.884 0.110 8.95 0.465 55 0.55 - Tensile Calculations: Weight in Air (Ibs) Bouyant Weight in Mud (Ibs) Maximum setting depth (ft) Joint Strength Safety Factor Body Yield Safety Factor Collapse Calculations: Collapse Safety Factor Collapse SF while cementing Burst Calculations: MASP (Maximum Anticipated Surface Pressure) Top Burst Safety Factor Bottom Burst Safety Factor Summary of: Body Yield Joint Strength Collapse Collapse Top Burst Bottom Burst e 81,650.00 69,789.53 13,608.70 In Air: = Jt Strength / Wt.ppf 3.83 In Air: = Jt Strength / (Wt ppf * set depth) 4.48 In Air: = Body Yld / (Wt ppf * set depth 4.71 Collapse Res / (Depth TVD ' % Fluid Drop '(Mud B-up Grad - Gas Grad)) 2.59 Collapse Res / Depth TVD ' (Cmt Grad - B-up Mud Grad) No lost Circulation/Evacuation occurs Assume seawater backup gradient, .465 psi/ft for burst design purposes Assume worst case by using anticipated frac gradient for TD of next hole section (TVD) for ASP calculations 2,747.70 (Frac Grad - Gas Grad)' Next Casing Set Depth (TVD) 1.59 Tube burst rating / ASP 2. 19 (Int. Yld + Depth TVD ' Seawater Grad) / ASP 7" Safety Factors 3.83 in air "Tensile" 4.48 in air "Tensile" 4.71 2.59 while cementing 1.59 2.19 OK OK OK OK OK OK r~~--=--""--"""'-"'''-'~''-~'''''--'''''''' ..-.....~~"'~1 F" I .. R /2 W. I ~- - -- - ï -- - ---1-- -- --, --- --- T------T------~ I . I I I I I I I I I I I . I 7 I 8 I 9 I 10 I / / I 12 I I I ( I I I I . I : I ~ I I I I I I r------t------¡------l-------~------I------i I I I : I I I 17 I 16 I 15 I 14 I 13 I I I I I I L-----L-- - ---!- - ___J - -- ---L-----L-----i I I I :: I /9 I 20 : 21'22 I 23 : 24 Ilr /2. N I I I I I .. I I I I I I I I I ,- -----r-------¡------H : ---------¡-------. r I I I \ I I ~ I ~ : ~ I V I æ I ~ I I I I I WEST MOQUAWKIE No. I I I I I LAT. 61004' 25.70" I------~------__t--- --- _~------~J:.ON<L~I~I~Q5.:l3"----1 I I I I Y : 2,586,779 I I I I I X: 266,554 I I 31 I 32 I 33 I 34 I 35 I 36 I I I I I I I I I 2390' I I I I I I-~ --1----1-- - --1..__ _..L-.__-L..__---L_..§L__I---__ I SCALE: I": I MILE I 18 .... . . CERTIFICATE OF SURVEYOR I hereby certify that I am properly registered and I ¡censed to practice land surveying in the State of Alaska and that this plat represents a location survey mode by me or under my supervision, and that all dimensions and other deta i Is ore correct. ~.~o-,o Date 62....ß--l ~ ~-.:.... SURVEYOR ~,.,.~~ _~~ Of ~¿~~ ~~~.......o... 4~~, p,¿t:,r.o fi·. ..'t."Øð t:_ . '.. I. ø -J l.:~...,: ·0 'Ÿ () ¡(t l49THJ>'" .. ~ \} ':" .."ao"................n..1e~. ç' ~ R o.-.t. e >\. . - . ~~ \'f~~';~"~·········~ CO&!:). ·.Ii".~. . ~ '\ , c.. "10, - ~ l' . 'JI tJ.ð ': ,. v~ .~.~~ (¡,~.., ~ð<···' G'ISl't..~'~··~Jí ~ 44f~'" .o"..·~o{'Y.-,v.a ~~,v SUR\!~~~ - ~,"~~"ò~""" ~~ WEST MOQUAWK'E No. I Located In SE 1/4 of Protrocted Sec. 36, T.12 N.,R.12W., SEWARD MER.¿i¿sKA. Surveyed for MOBIL OIL CORP. ~"t..-- _~,~rt'.~ Y ,.- '1::~J ~1":r;, Surveye d by F. M. LI N D SEY a ASSOC. LAND a HYDROGRAPHIC SURVEYO'RS 2502 West Northern Lights Boulovord Box 4-081¡ Anchorage Alaska( :;v;..~~"&~ft"'"'"~~~'fII:V~~~;.~~~~~~':HI7~~;i-::.:..L.:..¡J e e Aurora Well Service Rig No.1: Proposed 3M BOP Configuration for well re-entry, work-over and Drilling 13 3/8" Flow Nipple 2" Fill-up Line 1 0" flow line to pits 135/8" 5M Schaffer Annular Preventer fluid flow direction while reverse circulating Pipe Rams sized to work string. 135/8" 5M Double Gate wI 3/12" pipe rams installed. Blind Rams 3" 5M Manual Valve (Choke Line) / ...----- 3" 5M Hydraulic Valve (Choke Line) 1 2" 3M Manual Valves On Wellhead 13318" 5M Braden Head 13 3/8" Surface Casing Aurora Well Service #1 BOP System Fairweather E&P Services, Inc. Rev. 03 DHV 25-Feb-2003 Drawing Not to Scale e e Aurora Well Service Rig No. 1 Proposed Choke I Kill Manifold Configuration All valves are 3" rated at 5000 psi. Inlet from BOP Choke Line Inlet from Power Swivel (Reverse Circulation Mode) Hydraulic Remote Activated choke ~ 3" 5M Rated Valves Manual Choke Aurora Well Service #1 Choke Manifold Fairweather E&P Services, Inc. Output to Pits - 2" 5M Rated Valves - 2" 5M Rated Valves ~ To Gas Buster "Atmospheric Degasser" Rev. 03 DHV 25-FeI>-2003 Drawing Not to Scale .. , ~1r~1rŒ lID~ ~~~~æ~ ø / AI1ASIiA OIL AND GAS CONSERVATION COMMISSION 333 W. 7'" AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 FRANK H. MURKOWSKI, GOVERNOR CERTIFIED RESTRICTED DELIVERY 7002 3150 0005 3521 1188 Mr. Ed Jones Vice President Aurora Gas, LLC 1029 West 3rd Avenue, Suite 220 Anchorage, AK 99501 In Re: Long Lake # 1 West Moquawkie # 1 Kaloa #2 (203-068) (203-070) ~ (203-071 ) Dear Mr. Jones: On April 9, 2003 the Alaska Oil and Gas Conservation Commission ("Commission") received 5 Permit to Drill ("PTD") applications for planned well activities on Aurora properties on the West Side of Cook Inlet. When Commission staff began reviewing the permits for completeness and compliance with our regulations (20 MC 25), a number of deficiencies were identified in each permit. Email messages were sent to Mr. Duane Vaagan on April 22 (for operations and engineering) and Mr. Randy Jones on April 18 and April 21 (for land and ownership) listing the deficiencies and requesting their action to complete the PTD applications and allow the Commission to process them in a timely manner. Mr. Vaagan responded on April 30, providing the requested operations and engineering information. The land and ownership information has been slow in arriving. Sufficien t information was ultimately received in mid-June to allow Lone Creek #3 (PTD #203-062) to be approved on June 25th and Mobil Moquawkie # 1 (PTD #203-068) to be approved on July 31st. However, several land and ownership items are still outstanding on the remaining applications. Mr. Jones was again contacted by phone on June 24, and an updated listing of the PTD application deficiencies was sent to him byemail. A copy of that deficiency list is attached. .. Mr. Ed Jones October 16, 2003 Page 20f2 , , Despite repeated written and telephone requests for the needed information and documents to complete the PTD applications for Long Lake # 1, West Moquawkie # 1, and Kaloa #2, these application remain incomplete. This is unacceptable. Be advised, that if the Commission does not receive the necessary information to complete the PTD application packages for the subject wells by November 3,2003, the applications will be cancelled. DATED at Anchorage, Alaska and dated October 16,2003. ~ ~~ Randy ~driCh Commissioner By Order of the Commission , , 't Aurora Gas LLC 2003 Proposed Cook Inlet Basin Projects Permit to Drill Applications - Additional Information / Needs Updated October 16, 2003 Long Lake #1: (Permit to Drill number 203-068) expected spud date was May 20,2003. a. Designation of Operator and Notice of Change of Ownership forms (Forms 10-411 and 10-417, respectively) must be submitted to AOGCC for this lease, which is Mental Health Trust Lease 9300023. These forms are located on AOGCC's website at: http://www.aogcc.alaska.gov/forms/formscat.htm. Pertinent regulations are attached to the end ofthis letter. b. SPACING EXCEPTION REQUIRED: due to close proximity (less than 500') to property line with an Escopeta lease to the south and apparently unleased Mental Health Trust land to the east. Our regulation states: ".. . 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;" (see attached regulations, below). Landowner means "the owner of the subsurface estate of the tract affected," and owner means "the person who has the right to drill into and produce from a pool and to appropriate the oil and gas the person produces from a pool for that person and others." The spacing exception process takes about 6 weeks. Spacing exception application requirements are published in AOGCC's regulation 20 AAC 25.055 (d), which can be found on the Internet at: http://www.aogcc.alaska.gov/Regulations/art199.htm. A spacing exception is not needed to drill a well. but approval to perforate. test. and produce that well is contingent upon the Commission's issuance of a conservation order approving the spacing exception. By drilling a well without a spacing exception. Aurora assumes the liability of any protest to the spacing exception that may occur. West Moquawkie #1: (Permit to Drill number 203-070) expected spud date was June 20,2003. l a. Designation of Operator and Notice of Change of Ownership forms have not 2\.. . been filed for this lease, which is C-61389. j)\) I( - D" 1.1.' I b. SPACING EXCEPTION REQUIRED: Simpco Moquawkie 1, 1,400' to the Southeast, is classified as a shut-in gas well, and is completed in the same interval as proposed for the West Moquawkie #1 re-completion. Simpco Moquawkie 1 also lies within the same section (Section 36). Alaska Oil and Gas Conservation Commission 1 · , Kaloa #2: Pennit to Drill number 203-071, expected spud date was July 1, 2003. a. Original Designation of Operator and Notice of Change of Ownership fonns have not been submitted for this lease, which is C-61393. The Commission received faxed copies of the fonns on August 7, 2003. Original copies were requested from Mr. Andy Clifford on August 18, 2003, but they were never provided. Steve Davies Petroleum Geologist Alaska Oil and Gas Conservation Commission Telephone: (907) 793-1224 Fax: (907) 276-7542 steve _ davies@admin.state.ak.us ------------------------------------------------------------------------------------------------------------ Pertinent AOGCC Regulations 20 AAC 25.055 DRILLING UNITS AND WELL SPACING. (a) The commission will, in its discretion, establish drilling units to govern well spacing and prescribe a spacing pattern by pool rules adopted in accordance with 20 AAC 25.520. In the absence of an order by the commission establishing drilling units or prescribing a spacing pattern for a pool, the following statewide spacing requirements apply: (l) for a well drilling for oil, a wellbore may be open to test or regular production within 500 feet of a property line only if the owner is the same and the landowner is the same on both sides ofthe line; (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 ifthe owner is the same and the landowner is the same on both sides of the line; (3) if oil has been discovered, the drilling unit for the pool is a governmental quarter section; not more than one well may be drilled to and completed in that pool on any governmental quarter section; a well may not be drilled or completed closer than 1,000 feet to any well drilling to or capable of producing from the same pool; (4) if gas has been discovered, the drilling unit for the pool is a governmental section; not more than one well may be drilled to and completed in that pool on any governmental section; a well may not be drilled or completed closer than 3,000 feet to any well drilling to or capable of producing from the same pool. Alaska Oil and Gas Conservation Commission 2 , , \, 20 AAC 25.020 DESIGNATION OF OPERATOR If an owner of a property wishes to designate a new operator for the property, the owner shall submit to the commission for approval a Designation of Operator (Fonn 10-411). The commission will not approve the designation of a new operator without the signature of the newly designated operator on the same Designation of Operator fonn. By signing the Designation of Operator fonn, the newly designated operator agrees to accept the obligations of an operator. The newly designated operator shall furnish a bond and, if required, security as provided for in 20 AAC 25.025. The commission's acceptance of the designated operator's bond constitutes the release of the fonner operator's bonding obligation for the property indicated on the Designation of Operator fonn. 20 AAC 25.022 NOTICE OF OWNERSHIP Within 15 days after a person becomes an owner of a property on which operations subject to this chapter are proposed to the commission or are being conducted, the person shall file a Notice of Ownership (Fonn 10-417). ------------------------------------------------------------------------------------------------------------ Alaska Oil and Gas Conservation Commission 3 2003 Proposed Cook Inlet Basin Projects...ations - Additional Information I Needs e e Subject: 2003 Proposed Cook Inlet Basin Projects: Permit to Drill Applications - Additional Information / Needs Date: Tue, 24 Jun 2003 12:19:46 -0800 From: steve _ davies@admin.state.ak.us To: Randy Jones <rjones@aurorapower.com>, duane vaagen <duane@fairweather.com> CC: Tom Maunder <tom_maunder@admin.state.ak.us> Randy, As follow-up to our conversation today, I would like to send my listing of needed additional information concerning the permit to drill applications submitted to the Commission as part of Aurora's 2003 proposed Cook Inlet Basin projects. This is the original listing I sent you via email on April 21, 2003, annotated with comments about concerns/questions that have been answered, and those items that are still outstanding. If you have any questions, please call me. Sincerely, Steve Davies Petroleum Geologist Alaska Oil and Gas Conservation Commission Telephone: (907) 793-1224 Fax: (907) 276-7542 steve davies@admin.state.ak.us L'.'''m.wmm^__~"_,,,._~._.'mnmn~m_~____w~nmmmnmnmmmmmm__~'¥_'~'·'_"_''''''~_''''_''__.''''''mmm__mm''mmm~____.__¥~mm.m'_~"m.m.m"_'__"~_'m._m"'m_w.m""_'c"m____~,,__,,~~_~ Name: 1_030623_Âlutora_VV_CI_Proj( 111 030623 Âlurora VV CI Project Deficiencies List.doc Type: VVINWORD File (application/rr Encoding: base64 e e Aurora Gas LLC 2003 Proposed Cook Inlet Basin Projects Permit to Drill Applications - Additional Information I Needs Updated June 24, 2003 Lone Creek #3: Permit to Drill number 203-062, expected spud date is May 15, 2003. AOGCC senior staff submitted the application for permit to drill to Commissioners for approval on 6/24/03. a.Logging program is not specified in wen permit application. Received 4/22/03. b.Need dotcm1Ïnation ITom Glen Gray as to whether an ,^-..CMP Consistency Detonnination is needed. ACMP determination may be needed (Glenn Gray, 6/6/03 email to Tom Maunder, AOGCC). ACMP determinations will no longer delay approval and issuance of a permit to drill ITom the Commission. However, a permit to drill does not exempt you ITom 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. Long Lake #1: Permit to Drill number 203-068, expected spud date is May 20,2003. a. SPACING EXCEPTION REQUIRED: due to close proximity (less than 500') to property line with an Escopeta lease to the south and apparently unleased Mental Health Trust land to the east. Our regulation states: "...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;" (see attached regulations, below). Landowner means "the owner of the subsurface estate of the tract affected," and owner means "the person who has the right to drill into and produce ITom a pool and to appropriate the oil and gas the person produces ITom a pool for that person and others." The spacing exception process takes about 6 weeks. Spacing exception application requirements are published in AOGCC's regulation 20 AAC 25.055 (d), which can be found on the Internet at: http://www.state.ak.us/locaVakpages/ADMIN/ogc/artI99.htm. b. Designation of Operator and Notice of Change of Ownership forms must be submitted to AOGCC. I thoroughly searched AOGCC's files, and Designation of Operator and Notice of Change of Ownership forms are not on file for this lease. These forms can be obtained ITom AOGCC's web site at: http://www.state.ak.us/local/akpages/ADMIN/ogc/homeogc.htm. Pertinent regulations are attached to the end of this letter. My notes concerning ownership and operatorship records for the Moquawkie area that are on file at AOGCC are also attached to the end of this letter. Alaska Oil and Gas Conservation Commission 1 e e c. C-Plan exemption determination needed from AOGCC. I am awaiting a request letter from ADEC. Submitted recommendation to Lydia Miner, Alaska Dept of Environmental Consrvation on June 20, 2003. d.Logging program is not specified in 'Nell permit application. Received 4/22/03. d. ACMP not needed «Glenn Gray, 6/6/03 email to Tom Maunder, AOGCC). Mobil Moquawkie #1: Permit to Drill number 203-069, expected spud date is June 1, 2003. a. Designation of Operator and Notice of Change of Ownership forms are not on file for this lease (see write-up in item "b"under Long Lake #1, above): e. Logging program is not specified in 'lIell permit application.Received 4/22/03. b. c. ACMP not needed «Glenn Gray, 6/6/03 email to Tom Maunder, AOGCC). c. Spacing exception not required as long as re-completion operations in Moquawkie #1 are restricted to intervals above 2900' MD. Moquawkie #1 is 1704' from the nearest lease line, which exceeds the required 1500' setback distance from property lines for a gas well. Moquawkie #1 is 2500' away from, and in same section as, Simpco Moquawkie 2 (178-088), a shut-in gas well capable of production. Perforations in Simpco Moquawkie 2 are open in Tyonek Fm. from 5666' - 5708' MD and 5880' - 5945' MD. Perforations in shallower intervals have all reportedly been squeezed. Since the Moquawkie #1 re-completion will be in the Moquawkie SS member between 2735' - 2874' MD (an interval about 2800'shallower) a spacing exception is not required as long as re-completion operations are restricted to 2900' MD and shallower. West Moquawkie #1: Permit to Drill number 203-070, expected spud date is June 20, 2003. a. SPACING EXCEPTION REQUIRED: Simpco Moquawkie 1, 1,400' to the Southeast, is classified as a shut-in gas well, and is completed in the same interval as proposed for the West Moquawkie #1 re-completion. Simpco Moquawkie 1 also lies within the same section (Section 36). V-' b. Designation of Operator and Notice of Change of Ownership forms are not on file for this lease. (see write-up in item "b"under Long Lake #1, above) f. Logging program is not specified in ':¡ell permit application. Received 4/22/03. c. ACMP not needed «Glenn Gray, 6/6/03 email to Tom Maunder, AOGCC). Kaloa #2: Permit to Drill number 203-071, expected spud date is July 1, 2003. a. Designation of Operator and Notice of Change of Ownership forms are not on file for this lease. (see write-up in item "b"under Long Lake #1, above) Alaska Oil and Gas Conservation Commission 2 e tit b. Logging program is not specified in well permit application.Received 4/22/03. c. Need determination from Glen Gray as to whether an j\C.MP Consistency Determination is necded.ACMP determination may be needed (Glenn Gray, 6/6/03 email to Tom Maunder, AOGCC). ACMP determinations will no longer delay approval and issuance of a permit to drill fÌom the Commission. However, a permit to drill does not exempt you fÌom obtaining additional permits or approvals required by law fÌom other governmental agencies, and does not authorize conducting drilling operations until all other required permits and approvals have been issued. d. Spacing exception is not required. Although nearby well Simpco Kaloa 1 is perforated in the same interval and is classified as shut-in, it is not capable of producing in its current condition (bridge plug set at 3552' MD, cement on top ofthe bridge plug, plus two plugs in casing at 2705' MD and 900' MD). Steve Davies Petroleum Geologist Alaska Oil and Gas Conservation Commission Telephone: (907) 793-1224 Fax: (907) 276-7542 steve _ davies@admin.state.ak.us Alaska Oil and Gas Conservation Commission 3 · . e e Moquawkie Field Area Ownership and Operatorship Records in AOGCC Files April 17 , 2003 Nov 1990: Notice of Change of Ownership from Simasko assIgmng ownership of Simpco Moquawkie No 1, Simpco Moquawkie No 2, and Simpco Kaloa No 1 to COO. Jun 1998: Mobil and COO designate Anadarko as operator for S18, T12N, R11W. Aug 2000: Notice of change of Ownership from CIRI to Anadarko (50%) and Phillips (50%) for C- 061388 and C-061389. Designation of operator form from Phillips designating Anadarko as operator of COO Lease C-061388. Anadarko also provided an Assignment of Oil and Gas Lease document for C-061389, immediately to west, but there is no designation of operator form for that lease. Apr 2001: Designation of Operator form from Anadarko naming ARCO Alaska as operator of COO lease C-061500, which is S18, T12N, R11W. Jan 2003: Designation of Operator form designating Aurora as Operator of Moquawkie "Unit" area only. ------------------------------------------------------------------------------------------------------------ Pertinent AOGCC Regulations 20 AAC 25.055 DRILLING UNITS AND WELL SPACING. (a) The commission will, in its discretion, establish drilling units to govern well spacing and prescribe a spacing pattern by pool rules adopted in accordance with 20 AAC 25.520. In the absence of an order by the commission establishing drilling units or prescribing a spacing pattern for a pool, the following statewide spacing requirements apply: (1) for a well drilling for oil, a wellbore may be open to test or regular production within 500 feet of a property line only ifthe owner is the same and the landowner is the same on both sides of the line; (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 ofthe line; Alaska Oil and Gas Conservation Commission 4 · . e e (3) if oil has been discovered, the drilling unit for the pool is a governmental quarter section; not more than one well may be drilled to and completed in that pool on any governmental quarter section; a well may not be drilled or completed closer than 1,000 feet to any well drilling to or capable of producing from the same pool; (4) if gas has been discovered, the drilling unit for the pool is a governmental section; not more than one well may be drilled to and completed in that pool on any governmental section; a well may not be drilled or completed closer than 3,000 feet to any well drilling to or capable of producing from the same pool. 20 AAC 25.020 DESIGNATION OF OPERATOR If an owner of a property wishes to designate a new operator for the property, the owner shall submit to the commission for approval a Designation of Operator (Form 10-411). The commission will not approve the designation of a new operator without the signature of the newly designated operator on the same Designation of Operator form. By signing the Designation of Operator form, the newly designated operator agrees to accept the obligations of an operator. The newly designated operator shall furnish a bond and, if required, security as provided for in 20 AAC 25.025. The commission's acceptance ofthe designated operator's bond constitutes the release of the former operator's bonding obligation for the property indicated on the Designation of Operator form. 20 AAC 25.022 NOTICE OF OWNERSHIP Within 15 days after a person becomes an owner of a property on which operations subject to this chapter are proposed to the commission or are being conducted, the person shall file a Notice of Ownership (Form 10-417). Alaska Oil and Gas Conservation Commission 5 Aurora Gas, LLC Permit to Drill Deficiencies Letter t .......... e Subject: Aurora Gas, LLC Permit to Drill Deficiencies Letter Date: Mon, 23 Jun 2003 11 :02:25 -0800 From: Steve Davies <steve_davies@admin.state.ak.us> To: ray@fairweather.com e Ray: As we discussed on Friday, attached is the email that I sent to Randy Jones in April which outlines needs or deficiencies for each of the permit to drill applications submitted by Aurora. Please call or email me if you have any questions. Sincerely, Steve Davies Petroleum Geologist Alaska Oil and Gas Conservation Commission Telephone: (907) 793-1224 Fax: (907) 276-7542 steve davies@admin.state.ak.us ------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------ Subject: 2003 Proposed Cook Inlet Basin Projects: Permit to Drill Applications - Additional Information / Needs Date: Mon, 21 Apr 2003 08:52:49 -0800 From: Steve Davies <steve davies@admin.state.ak.us> To: rjones@aurorapower.com, duane vaagen <duane@fairweather.com> CC: Tom Maunder <tom maunder@admin.state.ak.us> Gentlemen: This is a re-transmission of an email sent on Friday. I received a transmission error notice on the copy sent to Randy Jones. I phoned Aurora Power to confrim the email address, and it appears to be correct. So, I'll try again and follow-up with a phone call tomorrow morning to ensure receipt (I understand Randy is out of the office today) . Also, the C-Plan exemption determination needed from AOGCC applies to each of these proposed projects, not just Long Lake #1. I am awaiting a request letter before I undertake a review. Thanks, Steve Davies ----------------------------------------------------------------------- Gentlemen: The attached notes are my comments and needs for your permit to drill applications for Aurora's 2003 Cook Inlet Basin program. Please call or email if you have any questions. Sincerely, Steve Davies Petroleum Geologist Alaska oil and Gas Conservation Commission Aurora Gas, LLC Permit to Drill Deficiencies Letter .Þ ....~1I\o> Telephone: (907) 793-12~ Fax: (907) 276-7542 steve davies@admin.state.ak.us ............... e ~030418 Aurora W CI Project Deficiencies Narne:030418_Aurora_W_CI_Projec~ Emai1.doc Type: WINWORD File (application/m Encoding: base64 Oil and Gas Update . 3 e June 16, 2003 Pipeline System near Valdez. This facility provides the source for the Valdez Marine Terminal (VMT) raw water, potable and firewater needs. OPMP initiated this 30-day review on April 15, 2003 and issued the final determination on May 2,2003 [17 calendar days in review]. Contact: Kaye Laughlin. Pre-Application Stage Kuparuk River Rehabilitation Plan: ConocoPhillips Alaska, Inc. proposes to restore the East and West Channels of the Kuparuk River to their approximate condition prior the spine road development. Contact: Kaye Laughlin. Aurora Gas LLC Projects: Aurora Gas proposes to conduct exploration for gas on a number of sites and a development project at one site during the summer of2003. All ofthese projects are located onshore on the west of Cook Inlet. Exploration activities for five projects will be conducted from existing pads, and no permits are expected to trigger an ACMP consistency review (Long Lake No.1, Mobil Moquawkie No.1, Simpco Moquakie No.1, West Moquawkie No.1, and Simpco Moquawkie No.2). Three exploration projects would likely need an ACMP review (Nicolai Creek Unit No.7, Lone Creek No.3, and Kaloa No.2). A production facility including installation of a four-inch pipeline is proposed near the Shirleyville runway. OPMP sponsored a pre-application meeting on April 17, 2003. Contact: Glenn Gray. Petro Star Valdez Pipelines: Petro Star, Inc. proposes to construct two parallel petroleum pipelines and a fuel transfer dock on the south shore of Port Valdez just east of the Solomon Gulch Hatchery. In 1992, Petro Star investigated seven different alternative locations for delivering product to a marine terminal. The proposed pipelines will start at the Petro Star Valdez Refinery and continue west, buried under a mile-long section of a new bike path along Dayville road. Prom Dayville Road, a trestle will extend about 1,000-feet northward to a fuel transfer dock. Petro Star plans construction ofthe buried pipeline to be concurrent with construction of the pedestrian path along Dayville Road Contact: Kaye Laughlin. Borealis Power Project: BPXA proposes to expand infrastructure to meet power demands of future satellite expansion in the western end of the Prudhoe Bay Unit and a possible tie-in with the Milne Point Unit power grid. The project would include a new 69 kV power line, a sub- station, and possible minor pad extensions. The power line would run from the Central Power Station to the L and V Pads in the end ofthe unit and possibly extended to Milne Point. Originally planed for the 2003-2004 winter season, BP notified OPMP that the project has been deferred for another year. OPMP held a pre-application meeting on April 9. Contact: Kaye Laughlin. DEC Inactive Reserve Pit Closure Program: OPMP is working with state resource agencies and the U. S. Army Corps of Engineers on reserve pit closures required by the DEC solid waste program. Companies are required to complete environmental assessments for all abandoned drilling waste reserve pits and must conduct corrective actions to clean up or prevent release of contaminants at these sites. Assessments have been completed on over 600 sites in the state, and · Sender: Please print yournarne, address, and ZIP+4 in this box>· . >.,1·.-... ." .. First-Class Mail Postage&-Feés Paid USPSH .. Permit NÖ.·Gc 10 . UNITED STATES POSTAL SERVICE f?~n . \... Â:'- (J;'1.... '"'II ~ State. of Alaska 0/ .... I .t! V Á' AK Oil & Gas Conservation COmmiSSiOI? <f r> ..? .:;. <.... ....j 333 West 7th Avenue t.lQ'J' .n <::~..., Anchorage Alaska 99501 11jc, '~Olj . t.:r /;(;/,-, J: c; .(ìlJ O~. Vì)/J'.r - /Olj i Î: ¡ i! ¡ II! it i! Ii! II ¡ ,¡ Ii!! ìi Hi ,I I ¡ ¡ i Li! i, II Ii I ¡ ¡ I ~ jj I ¡! j !t/é/c/? I-f//Þ c~v3 - O&¿1/¿xo3·a]Ó/~3- ()7 I '., Complete items 1; 2, -and 3, Also complete. item 4 if Restricted DeliverY is desired. . Print your name and address on the reverse so that we can return the card to you. . Attach this card to the back of the mailpiece, X or on the front if space permits. 1. Article Addressed to: .-- - rei /c7/?é~7- c2¿/'fC/c2 S7 c/? /¿J'29 d/ 3Yd/?Vê ~/~ cl/Jc! 1'-../ ¡J A ú19? ¿/ / I 3. Service Type ;a::certified Mail o Registered o Insured Mail o Express Mail o Return Receipt for Merchandise o C.OD. 4. Restricted Delivery? (Extra Fee) <' es 2. Article 1'1. ........a.-.."'.. ¡""''''r''ri1l frro1'Y! cør,,;"'O bhQ/1 7002 3150 ODDS 3521 1188 PS Form 3811, July 1999 Domestic Return Receipt 102595-00-M-0952 (~lrlK\!r~ ¡, ')! IU·! L' ï\\ III I L, ~/ .¿ w L- '=-.-J e '~'ì r-'F 170 n· fiA-\ ~ r 1] ~\ . I U ! lJ~ ! I u \ :\' I \ \ I J " I ! II. UI r-\ ! ¡ ¡ Î' \ ru ì U!\ \' n \ ~ ' L'"::Jw L ......_,/ w.U w tit AT,ASKA. OILAlVD 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 June 18, 2003 Ms. Lydia Miner Section Manager Exploration, Production and Refineries Alaska Department of Environmental Conservation 555 Cordova Street Anchorage, AK 99501 RE: C-Plan Exemption for Planned Aurora Gas, LlC 2003 Activities on the West Side of Cook Inlet Dear Ms. Miner: The Alaska Oil and Gas Conservation Commission ("the Commission") received your request for a formal determination regarding an exemption from Oil Discharge Prevention and Contingency Plan requirements for wells and re- completions planned by Aurora Gas, LLC ("Aurora") on the west side of Cook Inlet during 2003. In order to evaluate Aurora's request for an exemption from the oil spill contingency plan requirements for this program, I have reviewed all of the information submitted by Aurora, and the Commission's well files, log files, production records, and records associated with Conservation Order No. 478 (spacing exception for the drilling and testing of Nicolai Creek Unit wells #1 B, #2 and #9). Recommendation Based on a detailed examination of Commission records, it is unlikely that any of Aurora's proposed re-completions or new wells will encounter oil or oil-bearing formations in their interval of interest, which includes the Beluga Formation and shallow portions of the Tyonek Formation. I recommend approval of the requested exemption from Oil Discharge Prevention and Contingency Plan requirements for Aurora's planned 2003 activities on the west side of Cook Inlet, .. e tit .- including the Mobil Moquawkie #1, Simpco Moquawkie #1, West Moquawkie #1, Simpco Moquawkie #2, Texaco Long Lake Unit #1, Nicolai Creek Unit #7, Nicolai Creek Unit #9, Lone Creek #3, and Kaloa #2 wells, and their associated gas production facility and pipeline. A detailed discussion for each of Aurora's planned activities is presented below. All depths presented are measured depths, unless otherwise noted. Moquawkie Area Wells Exemptions are being sought for re-entry, testing, and production of five existing wells in the Moquawkie area: Mobil Moquawkie #1, Simpco Moquawkie #1, West Moquawkie #1, Simpco Moquawkie #2, and Long Lake Unit #1 to evaluate the economics of gas production. All of these are exploratory wells drilled between 1965 and 1978 in search of oil. The four Moquawkie wells mentioned above are clustered on the same structure within a narrow, north-south trending band that is about 1 mile long and ~-mile wide (see map, below). Long Lake Unit #1 is located on a separate structure approximately 4 miles to the west. T12N.R12W !' --t T12N,R11 j I Moquawkie Field 36 I W. Moquawkie 1 ._ I- I 31 o 1 mile Simpco ~. ~oquawkie 1 I' '~.. I .- Simpco Moquawkie 1 I 6 11 Mobil Moq~aWkie 1 . Ii _ . . . Moquawkie ~;m"'o MO';'W";' ... 2 . I ' I I ' , --+-- I I T yonek Restrve 1 I ! ! r M~qUawkie 44-~ . Long Lake Unit 1 <>T nek ReserveiS 1 Slmpco kaldaChabun -, Moquawkie Basemap Moauawkie Wells Commission records do not show any indications of oil in Simpco Moquawkie #1 and Simpco Moquawkie #2, which are, respectively, the shallowest and the deepest wells on this portion of the Moquawkie structure. Oil indicators were recorded on mud logs from the other two wells, Mobil Moquawkie #1 and West 2 e e Moquawkie #1. All of these wells are vertical through the interval of interest, which includes the Beluga Formation and the upper Tyonek Formation. In Mobil Moquawkie #1, three very poor oil shows are noted on the mud log between 2700' and 2810' (-2330' and -2440' TVD subsea), which is the lowest portion of Aurora's interval of interest in this well. Descriptions associated with these very poor shows indicate the oil is residual, and is not live, producible oil ("very few pieces gave dull fluorescence, faint dull gold cut, residual oil in argillaceous sand"). A drill stem test conducted across the interval containing two of these very poor shows yielded very little water and no oil. Mobil Moquawkie #1 was subsequently completed in this interval and produced 985 million cubic feet of gas with associated water from May of 1967 until February 1970, when the well was shut-in. No evidence of oil production has been found in Commission records for this well. The mud log from West Moquawkie #1 notes three "slight trace" oil shows between 2320' and 2580' (-1821' and -2081' TVD subsea). Mud log descriptions mention some dark brown oil stain or "tar stain" associated with a trace to 40% pale to light yellow sample fluorescence and weak to light yellow cut fluorescence, but there is no mention of white-light hydrocarbon cut or live oil. Sixty-six sidewall cores were recovered from the well, including 42 between 795' and 2520' . Detailed lithologic descriptions or laboratory analytical results are not present in the Commission's well file, but summary records for these sidewall cores clearly state "no shows." The well was not tested (the Completion Report lists the well as "dry"), and it was immediately plugged and abandoned. lonQ lake Unit #1 This exploratory well was drilled, plugged, and abandoned by Texaco in 1973. Commission records do not show any indication of oil in the Beluga or Tyonek Formations within Long Lake Unit #1. The only indications of oil in the well are very poor shows marked on the mudlog in the Hemlock Formation from 5280' to 5290' (-4721' to -4731' TVD subsea), and in the West Foreland below 6655' (-6088' TVD subsea). The shallowest of these very poor shows occurs approximately 1700' below Aurora's interval of interest. Texaco plugged and abandoned Long Lake Unit #1 without testing. Summary for the MOQuawkie Area Wells The absence of oil in well tests or in regular production, the lack of oil shows in sidewall cores, and the very poor quality of all oil shows noted on mud logs indicate that Mobil Moquawkie #1, Simpco Moquawkie #1, West Moquawkie #1, Simpco Moquawkie #2, and Long Lake Unit #1 are not likely to produce oil from the Beluga or shallow Tyonek Formations. 3 e e Lone Creek #3 Well Lone Creek #3 is a proposed vertical, shallow gas well located to the northeast of, and on the same structure as, the Lone Creek #1 and #2 exploratory wells (see map, below). Lone Creek #1 is located high on the structure, while Lone Creek #2 is structurally lower, on the side of the structure. Both wells are vertical through Aurora's interval of interest. T 12 N, R 11 W 12 7 8 I 9 Lone Creek 3 (proposed) 1=' 13 18 I 17 16 Lone Creek 1 ... 24 19 20 21 Lone Creek 2 25 ~ 30 I 29 28 Lone Creek Basemap No oil indicators are marked on the mud logs across Aurora's proposed shallow development interval in Lone Creek #1 and #2. Lone Creek #1 tested only gas from this interval. Lone Creek #2 was plugged and abandoned without testing. Based on records from these offset wells, Lone Creek #3 is not likely to produce oil or encounter oil-bearing formations. Nicolai Creek Unit #7 and #9 Wells and Nicolai Creek Unit #1, #2 and #9 Facility The Nicolai Creek area wells are all clustered near the western shoreline of Cook Inlet. Aurora plans two shallow gas wells in this area, Nicolai Creek Unit #7 and #9. Aurora is also planning a production facility with associated pipeline to collect and process gas from the existing Nicolai Creek Unit #1 Band #2 wells, and the proposed #9 well. 4 e e , Several exploratory and development wells are located in the vicinity of this project area. Records and logs from Nicolai Creek State #1, #1 A, and Nicolai Creek Unit #1 B, #2, and #3 (see map, below) were examined. A time-structure map of the top of the Tyonek Formation in the Nicolai Creek Field is published in the Commission's 2002 Annual Report. This report can be accessed on the Internet at: http://www.state.ak.us/local/akpaaes/ADMIN/oqc/homeoqc.htm. Nicolai Creek State #1 and #1A: Nicolai Creek Unit #1B. #2. and #9 The proposed Nicolai Creek Unit #9 well, and the existing Nicolai Creek State #1, #1 A and Nicolai Creek Unit #1 Band #2 wells all penetrate the Beluga and shallow Tyonek Formations within the same reservoir block. Nicolai Creek State #1 is a 1965 exploratory well drilled, then subsequently plugged and abandoned, by Texaco. This well penetrates the Beluga and Tyonek Formations in one of the deepest portions of the fault block that also contains Nicolai Creek State #1A, Nicolai Creek Unit #1 B, #2, and the proposed Nicolai Creek Unit #9 well. The Tyonek gas sands were perforated and tested in Nicolai Creek State #1 .between 3420' and 3630' (-3305' to -3505' TVD subsea) and they produced dry, clean gas with no associated oil. 24 I , I Nicolai Ck U 5 1 i Nicolai Ck U 3 I *' 20 , 21 1 , I o Nicolai c~ Unit 7 (proposeJ) 22 Nicolai Creek Field 27 25 -- Nicolai Ck U 6 31 -1_ i 33 34 Nicolai Creek Basemap Oil shows in Nicolai Creek State #1 are restricted to the Hemlock Formation below 6025' (-5777' TVD subsea). These sands were tested, but according to the well file, showed "no oil accumulations. II 5 e e Nicolai Creek State #1A, the first sidetrack of the #1 well, was drilled up-structure from the original #1 well bore. Commission records for #1 A report the shallowest oil indicator as being "solid hydrocarbon" (tar?) encountered between 5535' to 5550' (-5281' to -5295' TVD subsea) and 5620' to 5640' (-5360' to -5379' TVD subsea), which is over 1,500' below Aurora's interval of interest. Shallow Tyonek gas sands were produced in #1A between 3420' and 3630' (-3305' to -3505' TVD subsea). Commission records indicate this interval produced gas for only three months (December 1968 through February 1969), with no associated oil. The second sidetrack of the #1 well, Nicolai Creek Unit #1 B, was drilled up- structure of the #1 and #1 A wells by Aurora in September of 2002. There are no oil indicators shown on the mud log or mentioned in lithologic descriptions contained in the final well report from the mud-logging contractor. Nicolai Creek Unit #9 is a proposed well intended to produce gas up-structure from the #1 B well in the same fault block. The final well in this fault block, Nicolai Creek Unit #2, was drilled by Texaco as an exploration well in 1966. No oil accumulations were encountered. Texaco tested a gas sand between 3270' and 3315' (-2733' to -2768 TVD subsea), with no mention of any associated oil or water. The well produced 52 million cubic feet of gas from September 1968 through October 1969, with no record of any associated oil production. It was re-entered and tested by Aurora during 2002, and flowed gas and water from shallow Tyonek Formation sands. No associated oil is noted in Aurora's test summary reports. In summary, Nicolai Creek State #1, #1A, and Nicolai Creek Unit #2 tested the down-dip portions of the reservoir block. Nicolai Creek Unit #1 Band #9 will produce gas from the up-dip portions of this same block. Neither #1, #1A, nor #2 have shown any indications of the presence of oil in the Beluga Formation or in the shallow portion of the Tyonek Formation. All of these wells tested or produced dry gas from shallow Tyonek sands with no indications of associated oil production. Therefore, it is highly unlikely that Nicolai Creek Unit #1 B or the proposed #9 well will produce oil or encounter oil-bearing formations. Nicolai Creek Unit #3 and Proposed Nicolai Creek Unit #7 The existing Nicolai Creek Unit #3 well and the proposed Nicolai Creek Unit #7 well will both penetrate the Beluga and shallow Tyonek Formations within the same reservoir block. Texaco drilled Nicolai Creek Unit #3 in 1967 as a Hemlock oil exploration well. The mud log for this vertical well shows only scattered, very poor oil indicators in the Hemlock Formation between 6600' and 7220' (-6400' and -7020' TVD subsea). Texaco did not test this Hemlock interval. The well was plugged back to 2522', and sands between 2000' and 2380' (-1800' and -2180' TVD subsea) were tested for gas. Reports from the test indicate production was dry gas, with 6 e e " no associated oil. Texaco produced 893 million cubic feet of gas from the well between March 1967 and September 1977. Commission records indicate only gas was produced; they do not report any associated oil production. In 2001, Aurora tested Nicolai Creek Unit #3 in five intervals between 1900' and 2380' (-1700' and -2180' TVD subsea). The well produced only gas, with no oil or water. The proposed #7 gas well is situated up-structure of #3 within the same fault block. Because the #3 well has shown no indications of the presence of oil in the Beluga Formation or the shallow Tyonek Formation, the proposed #7 well is not likely to produce oil or encounter oil-bearing formations. Summary for the Proposed Nicolai Creek Activities The absence of oil in test or regular production and the lack of significant oil shows in the shallow geologic section in Nicolai Creek State #1 and #1 A, Nicolai Creek Unit #1 B, #2, and #3 all indicate that the #1 B and the proposed #7 and #9 gas wells are not likely to encounter oil in, or produce oil from, the Beluga Formation or shallow portions of the Tyonek Formation. Production facilities associated with Nicolai Creek Unit #1 B, #2 and #9 also have little possibility of receiving oil from any of these wells. Kaloa #2 The proposed Kaloa #2 shallow gas well will be drilled approximately 20 feet from the existing Albert Kaloa #1 well, an oil exploration well drilled in 1967 by Pan American and completed in 1968. 16 15 14 13 Albert Kaloa Field 24 28 27 Kalea 1 'fl Kaloa 2 (proposed) pee Kaloa 1 T 11 N, R 12 W Kaloa Area Basemap 7 : e e . . In 1970, Pan American perforated Albert Kaloa #1 between 3213' and 3403' (-2982' to -3172' TVD subsea) and flow-tested the well for a total of 29 hours. This test produced 13.4 million cubic feet of gas with "no significant liquid production during test." Gas samples from this test were dominantly methane, with only trace amounts of ethane, propane, and butane. According to Commission records, Albert Kaloa #1 produced 118 million cubic feet of gas from this interval during December 1970 and January 1971, with no recorded oil production. The well bore became plugged with "mud and sand," and was subsequently plugged and abandoned in 1974. The mud log from Albert Kaloa #1 reports 20% dull fluorescence with a slight solvent cut and residue at 3425' (-3194' TVD subsea), but the occurrence was not classified by the mud logging geologist as an oil show. The associated lithologic description does not mention any oil staining or the presence of live oil. Gas associated with this dull fluorescence consists only of methane. The next oil indicator noted on the mud log is a very poor show at 5875' (-5644' TVD subsea). The absence of oil in test or regular production and the lack of significant oil shows in the shallow geologic of the adjacent Albert Kaloa #1 well indicate that the proposed Kaloa #2 gas well is not likely to produce oil or encounter oil- bearing formations. Summary None of the well or production records examined suggest the possibility that oil will be encountered in, or produced from, any of the intervals that Aurora will drill, test, or produce in their proposed 2003 activities. An exemption from oil spill contingency plan requirements is appropriate for Aurora's proposed 2003 activities on the west side of Cook Inlet. Please contact me if you need additional information. Sincerely, ~_.~ Steve Davies Petroleum Geologist Alaska Oil and Gas Conservation Commission cc: Daniel Seamount, Jr., AOGCC Ray Eastlack, Fairweather Kaye Laughlin, ACMP 8 Aurora Operations e e Subject: Aurora Operations Date: Fri, 06 Jun 200309:58:31 -0800 From: Glenn Gray <Glenn _ Gray@dnr.state.ak.us> Organization: Alaska Department of Natural Resources To: Tom Maunder <tom_maunder@admin.state.ak.us> cc: Steve Davies <steve_davies@admin.state.ak.us>, Randy Ruedrich <randy Juedrich@admin.state.ak.us>, bill penrose <bill@fairweather.com> Tom: At a preapplication meeting held on April 17, 2003, Fairweather discussed a number of proposals for gas exploration and development projects on the West side of Cook Inlet for Aurora Gas LLC. Although the Office of Project Management and Permitting has not received a Coastal Project Questionnaire for any of the projects, it appears that some of the projects will not need an ACMP review. Unless there is an permit trigger (e.g., a Corps 404 permit or a state permit included on the "C List"), the following projects will not need an ACMP review: Long Lake No. 1 Mobil Moquawkie No. 1 Simpco Moquawki No. 1 Simpco Moquawki No. 2 West Moquawkie No. 1 For several other wells, an ACMP may be required, and a final decision will be made after Fairweather provides more information to me about the permits needed for the projects: Nicolai Creek Unit No. 7 (ACMP review likely needed) Lone Creek No. 3 (may need a review) Kaloa No. 2 (may need a review) Shirleyville Production Facility (may need an ACMP review) As I recall, Fairweather was working with the Corps to complete wetlands determinations to see if 404 permits are needed and with the Office of Habitat Management and Permitting to see if fish habitat permits are needed. By copy of this email, I will check with Fairweather to see if they have any new information. Glenn termination will Aurora Logging Program Subject: Aurora Logging Program Date: Tue, 22 Apr 2003 15:16:16 -0800 From: duane vaagen <duane@fairweather.com> To: "Steve Davies (steve_davies@admin.state.ak.us)" <steve_davies@admin.state.ak.us> Steve: Attached are files as promised. The 2003 Wireline spreadsheet contains the proposed logging suites for each well, which are tabbed as additional spreadsheets in the file. Please do not hesitate to call with any questions or concerns. Duane Vaagen . Project Engineer Fairweather E&P Services, Inc. duane@fairweather.com Office: (907)258-3446 Cell: (907)240-1107 Name: 2003 Wireline Logging Program. xIs ~2003 Wire line Logging Program.xls Type: Microsoft Excel Worksheet (application/vnd.ms-exceI) Encoding: base64 . Name: 2003 Mudlogging Program.xls ~2003 Mudlogging Program.xls Type: Microsoft Excel Worksheet (application/vnd.ms-exceI) Encoding: base64 \v~~ Moquawkie #1 (Re-Entry) ,¿þ Moquawkie Field Proposed Logging Program Log Run Depths Hole/Casing Tools E-Mail Prints Film/Sepia Diaital CH1 Surface-3450' 7" USIT/CCL/GR PDS/LAS 8 1 t CHFR? Airrk~~~~ ~ RST /1I'l . ~ . f ~,/ 1-DLlS/PDS "ð.J; (CD) 7 -LAS/PDS (Disk) . . Aurora Gas, LLC 4/23/2003 030423_Aurora_W_CL2003 Wireline Logging Program.xls West Moquawkie 1 2003 Program Mudlogging Requirements Proposed Logging Program . qø.k{.,(~ 4"'....., (1'(7 72 ø: / ;¿~./" .ÁÀ Nicolai Ck 9 lonQ lake 1 lone Ck 3 West MocwawJ¡(je 1 Kaloa 2 Nicolai Ck 7 Interval 200-620' 620-2300' 3052-4653' 200-1000' 1000-2900' 251~) 200-1050' 1050-3700' 200-750' 750-2750' Mudloggers 2 2 1 2 2 2 2 2 2 Sample Catchers As Needed As Needed Not Needed As Needed As Needed Not Needed As Needed As Needed As Needed As Neece Sample Frequency 30' 10' None 30' 10' None 30' 10' 30' 10' FID Gas Detection Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Lithology Description Yes Yes No Yes Yes No Yes Yes Yes Yes PVT Monitoring Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Flow Monitoring Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Rig Function Monitoring ? ? ? ? ? ? ? ? ? ? Cuttings 1-UnwashedlWet; 3-Washed/Dry None 1-UnwashedlWet; 3-Washed/Dry None 1-UnwashedlWet, 3-Washed/Dry 1-UnwashedlWet, 3-Washed/Dry Show Report Generation As Needed? As Needed? None As Needed? As Needed? None As Needed? As Needed? As Needed? As Needed? Daily Log & Report E-mail, fax or FTP E-mail, fax or FTP E-mail, fax or FTP E-mail, fax or FTP E-mail, fax or FTP E-mail, fax or FTP Final Log & Report 8 8 8 8 8 8 8 8 8 8 Sepia or Film 1 1 1 1 1 1 1 1 1 1 Digital 8 (CD) 8 (CD) 8 (CD) 8 (CD) 8 (CD) 8 (CD) Camp Accommodations Provided by Aurora Provided by Aurora Provided by Aurora Provided by Aurora Provided by Aurora Provided by Aurora Equipment Transportation Provided by Aurora Provided by Aurora Provided by Aurora Provided by Aurora Provided by Aurora Provided by Aurora . Aurora Gas, LLC 4/23/2003 2003 Mudlogging Program.xls Well Permit Response e tit Subject: Well Permit Response Date: Wed, 30 Apr 200313:57:16 -0800 From: duane vaagen <duane@fairweather.com> To: 'Tom Maunder' <tom_maunder@admin.state.ak.us> CC: 'Ed Jones' <jejones@aurorapower.com> Tom: Please find attached a response to AOGCC's request for information and clarification for each of the following (4) wells. West Moquawkie No.1 Kaloa No.2 Moquawkie No.1 Long Lake No. 1 I hope that the attachments will clarify, appropriately address and correct concerns initially submitted to us. Please do not hesitate to call or email me should more clarification or information be required. Thank You Duane Vaagen Project Engineer Fairweather E&P Services, Inc. duane@fairweather.com Office: (907)258-3446 Cell: (907)240-1107 ... Name: W. Moquawkie #1.doc OW. MOQuawkie #1.doc Type: WINWORD File (application/msword) Encoding: base64 Name: Kaloa #2.doc o Kaloa #2.doc Type: WINWORD File (application/msword) Encoding: base64 Name: Long Lake #1.doc OLonQ Lake #1.doc Type: WINWORD File (application/msword) Encoding: base64 10f2 7/24/2003 11 :52 AM e e Original Message: From: Tom Maunder [tom_maunder@admin.state.ak.us] Sent: Monday, April 21, 2003 3:59 PM To: duane vaagen Subject: W. Moquawkie #1 Hi Duane, I was looking at the West Moquawkie #1 and had a couple of questions. Some are the same as for Long Lake and Moquawkie #1. 1. In step 5 of your procedure, as I read it there is an instruction to run the casing scraper beyond the shoe and then pull back in. I may be reading this wrong but as I remember, one should never run a scraper out of the casing. 2. I note this BOP drawing is changed from the others and does not include the rotating head. 3. It is noted that you will be changing out the stack after the 7" casing is run. Is that correct?? You should provide a drawing and listing of the equipment. 4. As you clean out, there will again be an "interval" between the cleanout depth and the cement plug top listed at 4875'. As in the other wells, how will "flip-flop" of the cement be prevented?? 5. It does not appear that there any plans to test intervals above the 13-3/8" shoe. Thanks for you attention to these questions. Also, has the letter regarding the gas determination been sent to DEC?? Tom Maunder, PE AOGCC Response: W. Moquawkie #1 Tom: Thank you for your prompt review, please find below Aurora's response to the above concerns and questions in the order originally posed. 1) Yes, that is a bad idea and thanks for pointing that out. We will not exit the shoe of the casing with the casing scraper. e e 2) Because of the casing size, we will be required to rent a 13 5/80 5M BOP stack to use for re-entry operations. We do not have a rotating head that will fit so we will use conventional circulating technique, i.e. pump down the work string with returns up the annul us. 3) As soon as the 70 casing string is set and cemented into place it is our intent to change out the 13 5/80 BOP stack with the 110 3M BOP stack owned by AWS. The 110 BOP stack will then be used until the well is completed and a wellhead is installed. The BOPE will be configured for reverse circulation. Please see the attached drawing to update your files. The same choke manifold as described in original permit application paperwork will be used. I apologize for the omission. 4) Good point, after OH logging operations, we will displace in a balanced cement plug from 3550' - 3600' and tag the top after set up to verify a solid bottom prior to running and cementing in casing. 5) Based on a review of the original logs and well records, there are no plans to perforate and test above the 13 3/80 shoe at 2515' at this time. Thanks and please do not hesitate to call me at 258-3446 with any more questions or concerns. Duane Vaagen Fairweather E&P Services, Inc. e e West Moquawkie No.1, 11 " BOPE Stack configuration Aurora Well Service Rig No.1: Proposed 3M BOP Configuration for well re-entry, work-over and completion. System designed to work in reverse circulation mode, where returns taken up workstring and through power swivel to pits, during re-entry procedures and completion. 3M Grant Rotating Head for 3 1/2" DP 3" 3M Manual Valve on spool for either pumping into or taking returns above rams. 3M Schaffer Annular Preventer Pipe Rams sized to work string. 11" 3M Double Gate Blind Rams /3" 5M Manual Valve (Choke Line) .---- 3" 5M Hydraulic Valve (Choke Line) 13318" SM Casing Head 13 5/8" 5M X 7 1/16" 3M Tubing Spool wI 2" 3M Manual Valves [p 2" 3M Manual Valve On Wellhead 20" Surface Casing 13 3/8" Casing 7" Casing Aurora Well Service #1 BOP System Fairw eather E&P Services, Inc. Rev. 03 DHV 28-Apri1-2003 Draw ing Not to Scale W. Moquawkie #1 . Subject: W. Moquawkie #1 Date: Mon, 21 Apr 200315:58:59 -0800 From: Tom Maunder <tom_maunder@admin.state.ak.us> To: Duane Vaagen <duane@fairweather.com> Hi Duane, I was looking at the West Moquawkie #1 and had a couple of questions. Some are the same as for Long Lake and Moquawkie #1. 1. In step 5 of your procedure, as I read it there is an instruction to run the casing scraper beyond the shoe and then pull back in. I may be reading this wrong but as I remember, one should never run a scraper out of the casing. 2. I note this BOP drawing is changed from the others and does not include the rotating head. 3. It is noted that you will be changing out the stack after the 7" casing is run. Is that correct?? You should provide a drawing and listing of the equipment. 4. As you clean out, there will again be an "interval" between the cleanout depth and the cement plug top listed at 4875'. As in the other wells, how will "flip-flop" of the cement be prevented?? 5. It does not appear that there any plans to test intervals above the 13-3/8" shoe. Thanks for you attention to these questions. Also, has the letter regarding the gas determination been sent to DEC?? Tom Maunder, PE AOGCC . Tom Maunder <tom maunder@admin.state.ak.us> Sr. Petroleum Engineer Alaska Oil and Gas Conservation Commission 1 of 1 4/21/20034:00 PM RE: Lone Creek #3 . . Subject: RE: Lone Creek #3 Date: Wed, 16 Apr 200312:08:19 -0800 From: duane vaagen <duane@fairweather.com> To: 'Tom Maunder' <tom_maunder@admin.state.ak.us> Tom: Per your request, the following applies. I'll respond in the order of the questions below. 1. Yes, we have a formal meeting tomorrow afternoon with DGC, ADF&G, COE, DNR and TLO to discuss this and other wells in Aurora's program. In regards to Lone Creek No.3, we are hoping they give the green light to proceed as the only disturbance will be pad construction. No wetlands are being crossed and access will be via road constructed to drill the Chuit State wells years ago. Based on the meeting tomorrow, we will obtain all permits necessary. One thing we do know we need is a survey for a wetlands determination, site suitability and for archaeological or cultural resources. Another permit application submitted is for the Kaloa No.2. I am not so sure we will even get to this as we need a bridge. By the time we get through Corp of Engineers and ADF&G, the odds are it will not happen. 2. Waste will be handled as last year, and the following is applicable for the entire multi-well program this summer. Brines and muds will be recycled and used to the fullest extent possible. Drilling and workover wastes not recyclable will be transported offsite for treatment and disposal by Enviro~Tech. My apologies for not including this information in the permit application. I realized after I submitted the paper work that I omitted this information on all the wells. I will be submitting a Sundry application for testing and workover of the Simpco Moquawkie No.2 well soon. Base on log analysis and review of historical test results, I will be putting together a permit application for conversion of the SM No.2 well to disposal. This is one of the back-burner wells, but I think we will find that we really need a disposal well. 3. The proposed Lead Slurry design calls for a yield of 2.1 cf/sack. 4. Attached is tentative outline of work progression. This may have been pushed back now as we are not moving the rig across Inlet until the 2nd of May. We are working on a Gantt chart and will forward a copy as soon as we have it ready. Thank you please call if you need more information or clarification. Duane Vaagen Fairweather E&P Services, Inc. -----Original Message----- From: Tom Maunder [mailto:tom maunder@admin.state.ak.usl Sent: Wednesday, April 16, 200310:52 AM To: duane vaagen Cc: Steve Davies Subject: Lone Creek #3 Duane, I left a message for you, but wanted to send this email as well. I am reviewing the Lone Creek #3 application and have a couple of questions. 10f2 4/16/20033:48 PM RE: Lone Creek #3 . . 1--ls this well being reviewed in the "Coastal Zone" process?? I am not sure what other permitting requirements are out there or how they are now handled, but could you elaborate on what other permits are being sought. 2--How will the drilling waste be handled?? I am aware that Aurora has submitted a request to enter one of the Moquawkie wells with the potential to complete it as a class II well and Aurora has a disposal injection order for Nicolai Crk #5. Are there any plans to do the work on Nicolai Crk #5?? The AOGCC only has authority for annular disposal and class II injection. If other methods are being planned, permits for DEC and/or DNR and maybe others will be necessary. 3--What is the yield on the lead slurry for the 7" cement job?? 4--Could you or Aurora please provide a schedule of the coming planned work with approximate operation dates?? This will help us start to get our Inlet summer schedule set up. Thanks. Tom Maunder, PE AOGCC 1...... Name: Aurora Gas POD Well Schedule.doc DAurora Gas POD Well Schedule. doc Type: WINWORD File (application/msword) Encoding: base64 2of2 4/16/20033:48 PM 2003 ~oposed Cook Inlet Basin Projects...ations - Additional Information I Needs .-" e e Subject: 2003 Proposed Cook Inlet Basin Projects: Permit to Drill Applications - Additional Information / Needs Date: Mon, 21 Apr 2003 08:52:49 -0800 From: Steve Davies <steve_davies@admin.state.ak.us> To: rjones@aurorapower.com, duane vaagen <duane@fairweather.com> CC: Tom Maunder <tom_maunder@admin.state.ak.us> Gentlemen: This is a re-transmission of an email sent on Friday. I received a transmission error notice on the copy sent to Randy Jones. I phoned Aurora Power to confrim the email address, and it appears to be correct. So, I'll try again and follow-up with a phone call tomorrow morning to ensure receipt (I understand Randy is out of the office today) . Also, the C-Plan exemption determination needed from AOGCC applies to each of these proposed projects, not just Long Lake #1. I am awaiting a request letter before I undertake a review. Thanks, Steve Davies ----------------------------------------------------------------------- Gentlemen: The attached notes are my comments and needs for your permit to drill applications for Aurora's 2003 Cook Inlet Basin program. Please call or email if you have any questions. Sincerely, Steve Davies Petroleum Geologist Alaska Oil and Gas Conservation Commission Telephone: (907) 793-1224 Fax: (907) 276-7542 steve davies@admin.state.ak.us L~""~_~~~'''.^~''____~m._ ··'···_,····_"",,·~·_~~~~~~·.,,"'''''~_~~.~~,,~''''~~..·_w.,,''"",,"w.·.·. ".w_.··.,""".wwww,w.~w_,~.~_~~.www.~ww__ wwwww·""···,··w···,,"",w··,·^·_,,,w·,,~,'^,w,~ .....w.~,-^W~~WW"w~w~,! Narne:030418_Aurora_VV_CI_Projec~ ~030418 Aurora VV CI Proiect Deficiencies Emai1.doc Type: WINWORD File (application/m Encoding: base64 I'"", ~ e e Aurora Gas LLC 2003 Proposed Cook Inlet Basin Projects Permit to Drill Applications - Additional Information / Needs Lone Creek #3: Permit to Drill number 203-062, expected spud date is May 15, 2003. a. Logging program is not specified in well permit application. b. Need determination rrom Glen Gray as to whether an ACMP Consistency Determination is needed. Long Lake #1: Permit to Drill number 203-068, expected spud date is May 20, 2003. a. SPACING EXCEPTION REQUIRED: due to close proximity (less than 500') to property line with an Escopeta lease to the south and apparently unleased Mental Health Trust land to the east. Our regulation states: ".. . 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;" (see attached regulations, below). Landowner means "the owner of the subsurface estate of the tract affected," and owner means "the person who has the right to drill into and produce rrom a pool and to appropriate the oil and gas the person produces rrom a pool for that person and others." The spacing exception process takes about 6 weeks. Spacing exception application requirements are published in AOGCC's regulation 20 AAC 25.055 (d), which can be found on the Internet at: http://www.state.ak.us/locaVakpages/ADMIN/ogc/artI99.htm. b. Designation of Operator and Notice of Change of Ownership forms must be submitted to AOGCC. I thorougWy searched AOGCC's files, and Designation of Operator and Notice of Change of Ownership forms are not on file for this lease. These forms can be obtained rrom AOGCC's web site at: http://www.state.ak.us/locaVakpages/ADMIN/ogclhomeogc.htm. Pertinent regulations are attached to the end of this letter. My notes concerning ownership and operatorship records for the Moquawkie area that are on file at AOGCC are also attached to the end of this letter. c. C-Plan exemption determination needed rrom AOGCC. I am awaiting a request letter rrom ADEC. d. Logging program is not specified in well permit application. Moquawkie #1: Permit to Drill number 203-069, expected spud date is June 1,2003. a. Designation of Operator and Notice of Change of Ownership forms are not on file for this lease. b. Logging program is not specified in well permit application. Alaska Oil and Gas Conservation Commission 1 e e c. Spacing exception not required as long as re-completion operations III Moquawkie #1 are restricted to intervals above 2900' MD. Moquawkie #1 is 1704' from the nearest lease line, which exceeds the required 1500' setback distance from property lines for a gas well. Moquawkie #1 is 2500' away from, and in same section as, Simpco Moquawkie 2 (178-088), a shut-in gas well capable of production. Perforations in Simpco Moquawkie 2 are open in Tyonek Fm. from 5666' - 5708' MD and 5880' - 5945' MD. Perforations in shallower intervals have all reportedly been squeezed. Since the Moquawkie #1 re-completion will be in the Moquawkie SS member between 2735' - 2874' MD (an interval about 2800'shallower) a spacing exception is not required as long as re-completion operations are restricted to 2900' MD and shallower. West Moquawkie #1: Pennit to Drill number 203-070, expected spud date is June 20, 2003. a. SPACING EXCEPTION REQUIRED: Simpco Moquawkie 1, 1,400' to the Southeast, is classified as a shut-in gas well, and is completed in the same interval as proposed for the West Moquawkie #1 re-completion. Simpco Moquawkie 1 also lies within the same section (Section 36). b. Designation of Operator and Notice of Change of Ownership fonns are not on file for this lease. c. Logging program is not specified in well pennit application. Kaloa #2: Pennit to Drill number 203-071, expected spud date is July 1, 2003. a. Designation of Operator and Notice of Change of Ownership fonns are not on file for this lease. b. Logging program is not specified in well pennit application. c. Need detennination from Glen Gray as to whether an ACMP Consistency Detennination is needed. d. Spacing exception is not required. Although nearby well Simpco Kaloa 1 is perforated in the same interval and is classified as shut-in, it is not capable of producing in its current condition (bridge plug set at 3552' MD, cement on top of the bridge plug, plus two plugs in casing at 2705' MD and 900' MD). Steve Davies Petroleum Geologist Alaska Oil and Gas Conservation Commission Telephone: (907) 793-1224 Fax: (907) 276-7542 steve _ davies@admin.state.ak.us Alaska Oil and Gas Conservation Commission 2 , . . e e Moquawkie Field Area Ownership and Operatorship Records in AOGCC Files April 17, 2003 Nov 1990: Notice of Change of Ownership from Simasko assigning ownership of Simpco Moquawkie No 1, Simpco Moquawkie No 2, and Simpco Kaloa No 1 to COO. Jun 1998: Mobil and COO designate Anadarko as operator for S18, T12N, Rll W. Aug 2000: Notice of change of Ownership from CIRI to Anadarko (50%) and Phillips (50%) for C- 061388 and C-061389. Designation of operator fonn from Phillips designating Anadarko as operator of COO Lease C-061388. Anadarko also provided an Assignment of Oil and Gas Lease document for C-061389, immediately to west, but there is no designation of operator fonn for that lease. Apr 2001: Designation of Operator fonn from Anadarko naming ARCO Alaska as operator of COO lease C-061500, which is S18, TI2N, Rll W. Jan 2003: Designation of Operator fonn designating Aurora as Operator of Moquawkie "Unit" area only. ------------------------------------------------------------------------------------------------------------ Pertinent AOGCC Regulations 20 AAC 25.055 DRILLING UNITS AND WELL SPACING. (a) The commission will, in its discretion, establish drilling units to govern well spacing and prescribe a spacing pattern by pool rules adopted in accordance with 20 AAC 25.520. In the absence of an order by the commission establishing drilling units or prescribing a spacing pattern for a pool, the following statewide spacing requirements apply: (1) for a well drilling for oil, a wellbore may be open to test or regular production within 500 feet of a property line only if the owner is the same and the landowner is the same on both sides ofthe line; (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; Alaska Oil and Gas Conservation Commission 3 . ~\ ( '., .. e . (3) if oil has been discovered, the drilling unit for the pool is a governmental quarter section; not more than one well may be drilled to and completed in that pool on any governmental quarter section; a well may not be drilled or completed closer than 1,000 feet to any well drilling to or capable of producing from the same pool; (4) if gas has been discovered, the drilling unit for the pool is a governmental section; not more than one well may be drilled to and completed in that pool on any governmental section; a well may not be drilled or completed closer than 3,000 feet to any well drilling to or capable of producing from the same pool. 20 AAC 25.020 DESIGNATION OF OPERATOR If an owner of a property wishes to designate a new operator for the property, the owner shall submit to the commission for approval a Designation of Operator (Form 10-411). The commission will not approve the designation of a new operator without the signature of the newly designated operator on the same Designation of Operator form. By signing the Designation of Operator form, the newly designated operator agrees to accept the obligations of an operator. The newly designated operator shall furnish a bond and, if required, security as provided for in 20 AAC 25.025. The commission's acceptance of the designated operator's bond constitutes the release ofthe former operator's bonding obligation for the property indicated on the Designation of Operator form. 20 AAC 25.022 NOTICE OF OWNERSHIP Within 15 days after a person becomes an owner of a property on which operations subject to this chapter are proposed to the commission or are being conducted, the person shall file a Notice of Ownership (Form 10-417). Alaska Oil and Gas Conservation Commissioni 4 VI 2 Vi II! 1 II! o 1 z z ~Aurora Gas, Lfé www.aurorapower.com April 7, 2003 Oil and Gas Commissioners Alaska Oil and Gas Conservation Commission 333 West 7th Ave., Suite 100 Anchorage, Alaska 99501 RECEIVED APR 0 9 2003 Alaska Oil & Gas Cons. Commission Anchorage RE: Application for Permit to Drill: West Moquawkie No.1 Dear Commissioner(s), Aurora Gas, LLC hereby applies for a Permit to Drill, a prerequisite for re-entering and re-completing the abandoned well, West Moquawkie No.1. It is Aurora's intent to re- enter, log, test and re-complete West Moquawkie No. 1 as a natural gas production well. West Moquawkie No.1 was drilled by Mobil Oil Corporation in 1970 in search of oil. Due to lack of commercial quantities of oil, the well was summarily plugged and abandoned with a series of cement plugs in the wellbore to surface. West Moquawkie No. 1 is in an area known as the Moquawkie Gas Field. The well is located onshore approximately 5 miles north of Granite Point and 5.5 miles northwest ofthe Village of Tyonek. Aurora plans to begin well re-entry and re-completion operations on June 20th, 2003. The site is readily accessible via road so no new roads are required. Upon receipt of all necessary permits and approvals, contractors will clear the original well site of overgrowth and repair the surface. A new wellhead will be installed and the rig, Aurora Well Service No.1, will be rigged up over the well to commence well operations. Pertinent information in and attached to this application includes the following: 1) Form 10-401 Application for Permit to Drill- 3 copies 2) Fee of $100.00 payable to the State of Alaska 3) A plat map and information detailing the surface location and proposed bottomhole location 20 AAC 25.050 (c)(2) 4) Diagrams and description of the BOP equipment to be used as required by 20 AAC 25.035 (a)(l) and (b) 5) The drilling fluid program, in addition to the requirements of 20 AAC 25.033 are attached 6) A copy of the well history, proposed re-entry, recompletion procedure and operational considerations is attached 10333 Richmond Avenue, Suite 710· Houston, Texas 77042· (713) 977-5799· Fax (713) 977-1347 1029 West 3rd Avenue, Suite 220 · Anchorage, A. ./aska 99501.~907) 277-1003 · Fax (907) 277-1006 nD'f"tN L ~ ~ J ".J t \: O· It e Commissioner( s) Page 2 7) Aurora Gas LLC. does not anticipate the presence ofH2S in the formation to be encountered in this well. However, H2S monitoring equipment will be functioning on the rig at all times during sidetracking, drilling and completion operations 8) A Summary of Potential Well Hazards 9) Pressure Information 10) The following are Aurora Gas LLC's designated contacts for reporting responsibilities to the Commission . Completion Report (20 AAC 25.070) Duane Vaagen, Project Engineer (907) 258-3446 · Geologic Data and Information (20 AAC 25.071) Andy Clifford, Vice President (713) 977-5799 . Well Records, Testing and Production Reporting (20 AAC 25.070) Ed Jones, Vice President (713) 977-5799 If you have any questions or require additional information, please contact the undersigned at (713) 977-5799, or Duane Vaagen at (907) 258-3446. Sincerely, t./--:;:? . Edward Jones Aurora Gas, LLC Vice President, Operations and Engineering Enclosures RECEIVED APR 0 9 2003 cc: Duane Vaagen Andy Clifford Alaska Oil & Gas Cons. Commission Anchorage OR!GIf~AL F'AlAWewrHE¡I¡ !XÞEeR'AmN JpPRODUCTION SERVICES INC. I GENERAL ACCOUNT 10869 10869 NAME VENDOR 1.0. PAYMENT NUMBER NET 100.00 OUR IIOlJCHER NUMBER YOUR VOUCHER NUMBER $100.00 $100.00 $0.00 $0.00 $100.00 COMMENT --- - - -- ---- -----------------~-----_. FAIRWEA THER EXPLORATION & PRODUCTION SERVICES INC. GENERAL ACCOUNT P.O. BOX 103296 ANCHORAGE, AK 99510-3296 PH. (907) 258-3446 FIRST NATIONAL BANK OF ANCHORAGE ANCHORAGE, AK 99501 89"611252 - 1 DATE 4/9/2003 10869 AMOUNT $100.00 PAY One Hundred Dollars And 00 Cents TO THE ORDER OF STATE OF ALASKA AOGCC 333 WEST 7TH AVE SUITE 100 d"",iiAiù"-~- .,'..' _ ___ _,,_J' ANCHORAGE AK 99501 ~._o· ._..<~..M.~,._.·,,~"~_·_ 1I10¡08b~1I1 1:¡252000bOI: 0¡¡2 823 Dill F.(iRW'£Am~ b'ÞEffifÄ'ñÖN ~PRODUCTION SERVICES INC. I GENERAL ACCOUNT 10869 10869 :;; ~ N ~ ~ '" 15 ¡:: g UJ '" UJ ¡¡ UJ Ii! '" z 3 .. It UJ a: " r- .. o UJ ~ o :¡¡ ~ o .. " .. z ~ VENDOR 1.0. I NAME I PAYMENT NUMBER I CHECK DATE' I I 1049 I STATE OF ALASKA AOGCC 100008868 14/9/2003 I I OUR \'()UCHER NUMBER YOUR VOUCHER NUMBER DATE AMOUNT AMOUNT PAID DISCOUNT WRITE-OFF NET 00013346 1049030409*WM#1 4/9/2003 $100.00 $100.00 $0.00 $0.00 $100.00 RECEIVED APR 0 9 2003 A'aska Òil & Gas Cons. Commission Anchorage $100.00 $100.00 $0.00 $0.00 $100.00 I COMMENT . 51N321 . e e TRANSMJT AL LETTER CHECKLIST CIRCLE APPROPRJATELETTERlPARAGRAPHS TO BE INCLUDED IN TRANSMITTAL LETTER WELL NAME tV, M(}I'..U1.Wi/~ :if I PTD# 2O.3-07ð CHECKWBAT ADD-ONS "CLUE" APPLIES (OPTIONS) MULTI The permit is for a new wellbore segment of LATERAL existing weD . Permit No, API No. . (If API number Production. should continue to be reported as last two (2) digits a function· of the original API number. stated are between 60-69) above. Pn,OT HOLE In accordance with 20 AAC 25.005(1), all (PH) records, data and logs acquired for the pilot hole must be dearly differentiated in both name (name on permit plus PH) and API Dumber (50 - 70/80) from records, data and logs acquired for well (name on permit). SPACING The permit is approved subject to fuD EXCEPTION compliance with 20 AAC 25.055. Approval to .J perforate and produce is contingent upon issuance of a conservati~ order aP6roving a :z. spacing . e:JCeption.o.(¡.-c;>~ t!t.S. I-J-. (Company Name) assumes the liability óf any protest to the spacing . exception that may occur. DRY DITCH An dry ditch sample sets submitted to the SAMPLE Commission must be in no greater than 30' sample intervals from below the permafrost or from where samples are first caught and 10' sample intervals through target zones. Rev: 07/] 0/02 C\jody\tempJates D D Well bore seg Annular Disposal On Program DEV 00000 OnlOff Shore Unit UAWKIE Well Name: DEV I PEND GeoArea ç¡$. a gé!.s.pro.duçer. t (eCQmRI~t~ R~-en.try .of ~x¡stin9. F?&A'd. w~II.lQ I='QoJ ba.s noty.et be.eo defined SF?ACI~GEXCI;:1='110N REQUJREQ:Sjmpco.Mo.c¡uawi~ #1 (1 AOQ' 51;:). is ç¡ gç¡s. w~lIcompleted withjn $.ameJnterv SF?ACI~G EXCI;:1='110N REQ.UJREQ: Gas bas been discov~red~ drjIJinguoit is a 90llernental s.ection.- :I welJ I sect V~rtjcal weJ Leiter. 0.1 Cre~1ii SF?ACI~G .EXC1;:1='110N REQUJREQ. e .Yes .Yes .Yes No .Yes No. No NA .Yes .Ye$ .Yes Yes Yes NA NA NA NA nitial ClassfType Pe(mitJe~ attached Lease mJmb~r aPRropriate bpul1dary . __,,_... u_w__I'!':"'~....Y"{1 _V'l'c)1 WeJ indrilJing unjt ,.çreage .ayailable 2 3 4 5 6 7 8 9 Administration js weJlbore plç¡til1cJuded bé!.s .appropriate. b.ood ill JQrce. PeJJ11it.cao be i$su.ed wjtbo.ut Pe(mit.cao be i$sued wjtbo.ut Can permit '-~ ~""'~',~-' '-~.~ WeJlJo.cate( , strç¡ta authQrized by.lojection Order All wells.witl I cons~rvatiOI1 Qrd~r administr.ativ.e .apprOllaJ 5-day wait onJy affected Pé!.rty Operator Oper.ator uc ...........'....v....U Uvlvre in.commeots)(fQr 10# # (put Ol1ly) .serviœ well. .1/4.mile.are.a.of (eyiew dur<ltion.of pre-produ~tion less. than. 3 mOl1ths. (for ideotified (F O( s.ervjce welJ iojector Pre.-produœd. 10 11 12 13 14 15 16 17 Date Appr SFD 12/11/2003 only) Glel1n Gray state$. thatanACMP.relli~w is nol.needed for thjs. weJ 4/17JQ3; ACMP.F?re-apR me~ting: drjIJed @2525' when. Qriginal.wel 79.0', :13-3/8' S~t 20" ceme.nted to $.urfç¡ce, BQtb @ planned. Any .drilJiog wa.ste.lo I;:ovjro- Tech for. djspO$.aJ No r~serve pit Rig has. $.t~eJ pits, e Q.O. with. up.lo rig height to.3.00Q psj .Yes .Yes .Yes .Yes .Yes .Ye$ .Yes NA .Yes NA .Ye$ .Yes .Yes .Yes .Yes No. NA CQn$isteocy.has b~en Jssued. for.lbis prolect ACMPFjnding .of Cpoduçtor Surface ~9 known. USQWs CMT.vol jequate.lo circul<lte.oncOl1duçtor. st(in9prQvided & surfcsg v",$.in-9.prQtects. al tie-in JQng $tring t.osurf CS-9. CMT. vol adequ.ate.lo .CMTwill coyer all known productive bOJil:Qn.s C, re.serve pit 10-4.03 fOJ <lba.ndonment beeo ç¡pprQved T, B& permafrost .Casiog de.si90s ad.eCluat~ for Adequate Jan.kage.or Jf.aJe-d(iII, has.a. Adequ<lte .wellbore. $.eparç¡tjon propO$.ed 8.6. .F~lan.i$ to.cJeaOQut 1='1ç¡11 is to. use 2 .different. sté!.cks duetQ ça.sing sil:es. a.nd MASF? estimated at Maxjmum expected. MWat TO, Auror<l.usuallY tests 1.224 psi reguJatiOl1s Jisl.adequate .BOPEs, .do they meet.reguJa.tiOI1 .BOPEpre.ss ratiog approp(ié!.te; t~st tp(pu.t p$.ig in .commel1ts) .Choke.mé!.nifQld cQmpJies. w/AI='I.Rf>-53 (May 84) WOJk will OCCU( without .operation .shutdown t m.eet .DrilJilJg fIuid.pJQgram schematic.&. ~quip H.diver:t~r r~quir~d, dQes 8 19 20 21 22 23 24 25 26 27 28 29 30 31 Engineering Date 4/21/2003 Appr TEM H2S gas.pJQbable Mechanicç¡lcolJdjtion of Js. Rres.ence. 0.1 32 33 34 ~Q 1::i2S is koownJI1 r.egiOIJ. Offset w~lIC9ntrol indiça.t~s.nprmaJ press.ure.gradjent (PA5 psi/Jt). .Yes .Yes NA NA NA weJls wlthil1 AOR verified (For. service welJ QnJy) c.ao be i$su.ed wlo. hydrogen s.ulfide meaSures Pe(mit .Data.Pf~sented Qn Rote.ntié!.1 OlleJRressure ~ones .U.ni.c¡ue well.n.arne .aod ou.mber WeJI Jocç¡ted :~ ~ d0<:ne-' "",,0 . \"0' Jo.cated j 'rom driJling ul1it Jo.cated j 'rom other wells ciel1t n viatec 35 36 Date 37 4/17/2003[38 39 Geology Appr SFD Sei$micanalysjs of shaJlow gaszolJe.s .(if off-$.hore) .SeabedcOl1djtioo survey SPACING EXCEPTION REQUIRED: well may be drilled, but approval to perforate, test and produce the well is contingent upon the Commission's issuance of a conservation order approving a spacing exception. Aurora has not applied for a spåcing exception. 12/11/03 SFD CQntact l1ame/Phon.eJor weekly progressreRorts [e~ploratoryonly] Public ~ Date Commissioner / 2..?-d1'~ Date Engineering Commissioner: /s/J Date: I <../ Geologic Commissioner b~