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205-096
• Image Project Well History File .cover Page XHVZE This page identifies those items that were not scanned during the initial production scanning phase. They are available in the original file, may be scanned during a special rescan activity or are viewable by direct inspection of the file. ~~j - 1J_ ~ Well History File Identifier __. Organizing (done) ^ Two-sided III IIII II VIII VIII ^ Rescan Needed III II~III II II III III RESCAN DIGITAL DATA OVERSIZED (Scannable) Color Items: ^ Diskettes, No. ^ Maps: ~j Greyscale Items: ^ Other, No/Type: ^ Other Items Scannable by a Large Scanner ^ Poor Quality Originals: OVERSIZED (Non-Scannable) ^ Other: ^ Logs of various kinds: NOTES: ^ Other:: , BY: Maria Date: ~ Q /s/ ProjectProofing IIIIIIIIIIIIII VIII BY: Maria Date: D /s/ Scanning Preparation ~ x 30 = ~ + ~~ =TOTAL PAGES ~ 1 ~ (Count does not include cover sheet) BY: Maria Date: ~ ~ ~ n /s/ Production Scanning Stage 1 Page Count from Scanned t=ile: ~~ (Count does include cover sheet) Page Count Matches Number in Scanning Pre aration: ~ YES _ BY: Maria Date:.-~ ~, © S Stage 7 If NO in stage 1, page(s) discrepancies were found: YES NO /s/ ~ 't~ NO ` BY: Maria Date: /s/ Scanning is complete at this point unless rescanning is required. II I N II II I II II I I III ReScanned III lI ~I II II III I I III BY: Maria Date: /s/ Comments about this file: a., ~, ~„,~.e< III IIIIIIIIIIIII III 10/6/2005 Well History File Cover Page.doc STATE OF ALASKA t ALA. OIL AND GAS CONSERVATION COM1PSION WELL COMPLETION OR RECOMPLETION REPORT AND LOG 1a. Well Status: Oil ❑ Gas ❑ SPLUG ❑ Other ❑ Abandoned • • Suspended 1b. Well Class: 20AAC 25.105 20AAC 25.110 Development ❑ Exploratory GINJ ❑ WINJ ❑ WAG ❑ WDSPL ❑ No. of Completions: Service ❑ Stratigraphic Test ❑ 2. Operator Name: 5. Date Comp., Susp., or 12. Permit to Drill Number: Teck Alaska Incorporated Aband.: 8/5/2012- 205 -096 1 P 3/Z- 1552 -- 3. Address: 6. Date Spudded: 13. API Number: 3/2 3105 Lakeshore Drive, Bldg A, Anchorage, AK 99517 8/7/2005 50 073 - 20003 - 00 • 4a. Location of Well (Governmental Section): 7. Date TD Reached: 14. Well Name and Number: Surface: 254' FWL, 2923' FSL, Sec 17, T31 N, R18W, KRM 8/18/2005 NB - 02 - Top of Productive Horizon: 8. KB (ft above MSL): N/A 15. Field /Pool(s): As Above GL (ft above MSL): N/A Field: Red Dog Total Depth: 9. Plug Back Depth(MD +TVD): Pool: Kivalina Undefined Gas. As Above Surface 4b. Location of Well (State Base Plane Coordinates, NAD 27): 10. Total Depth (MD + TVD): 16. Property Designation: Surface: x- 583,596.34 y - 5,150,118.16 Zone- 7, • 3110' MD, 3104' TVD NANA Regional Corp (FEE -NANA) TPI: x- As Above y - As Above Zone- 7 11. SSSV Depth (MD + TVD): 17. Land Use Permit: Total Depth: x - As Above y As Above Zone 7 N/A NANA LOA 18. Directional Survey: Yes ❑ No U 19. Water Depth, if Offshore: 20. Thickness of Permafrost MD/TVD: (Submit electronic and printed information per 20 AAC 25.050) N/A (ft MSL) 640' ` 21. Logs Obtained (List all logs here and submit electronic and printed information per 20AAC25.071): 22.Re- drill /Lateral Top Window MD/TVD: Triple combo, cased hole neutron, CBL N/A 23. CASING, LINER AND CEMENTING RECORD WT. PER SETTING DEPTH MD SETTING DEPTH TVD AMOUNT CASING GRADE TOP BOTTOM TOP BOTTOM HOLE SIZE CEMENTING RECORD PULLED 13 -3/8" 54.5# K -55 Surface 75' Surface 75' 18" 25 sx permafrost 0' 8 -5/8" 24# K -55 Surface 480' Surface 480' 12 -1/4" 400 sx permafrost 0' 5 -1/2" 15.5# J -55 Surface 3071' Surface 3071' 7 -7/8" 146 sx permafrost + 0' 295 sx Type 1 24. Open to production or injection? Yes ❑ No 0 • If Yes, list each 25. TUBING RECORD interval open (MD +TVD of Top & Bottom; Perforation Size and Number): SIZE DEPTH SET (MD) PACKER SET ( MD/TVD) No tbg in well RECEIVED 26. ACID, FRACTURE, CEMENT SQUEEZE, ETC. DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED SEP 0 6 2012. See previous 10-407 submitted AOGCC 27. PRODUCTION TEST Date First Production: Method of Operation (Flowing, gas lift, etc.): See previous 10 submitted Date of Test: Hours Tested: Production for Oil -Bbl: Gas -MCF: Water -Bbl: Choke Size: Gas -Oil Ratio: Test Period ■ • Flow Tubing Casing Press: Calculated Oil -Bbl: Gas -MCF: Water -Bbl: Oil Gravity - API (corr): Press. 24 -Hour Rate •••■ 28. CORE DATA Conventional Core(s) Acquired? Yes ❑ No 0 Sidewall Cores Acquired? Yes ❑ No 0 If Yes to either question, list formations and intervals cored (MD +TVD of top and bottom of each), and summarize lithology and presence of oil, gas or water (submit separate sheets with this form, if needed). Submit detailed descriptions, core chips, photographs and laboratory analytical results per 20 AAC 25.071. SCANNED MAR 2 0 2013 RBDMS SEP 0 7 2011_ ,x ` Form 10 -407 Revised 12/2009 CONTINUE (1)41,NA L �/ Submit original only lo 7""` Z- Z. S • /3 �k \`''.\ G • 29. GEOLOGIC MARKERS (List all formations and markers encountered): 30. FORMATION TESTS NAME MD TVD Well tested? Yes ± No If yes, list intervals and formations tested, briefly summarizing test results. Attach separate sheets to this form, if needed, Permafrost - Top Surface Surface and submit detailed test information per 20 AAC 25.071. Permafrost - Base 640' 640' Kivalina - Kayak Facies Surface to TD Surface to TD Formation at total depth: Kivalina - Kayak 31. List of Attachments: P &A Operational Summary, Final Wellbore Schematic, Photographic Documentation of P &A 32. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Bill Penrose 264 - 6114 Printed Name: Tom Farr Title: Chief Mining Engineer Signature: 4anza),) 1 j- _ Phone: 907 - 426 - 9326 Date: 4 uG us T is 2012_ INSTRUCTIONS General: This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Alaska. Submit a well schematic diagram with each 10-407 well completion report and 10-404 well sundry report when the downhole well design is changed. Item 1 b: Classification of Service wells: Gas Injection, Water Injection, Water - Alternating -Gas Injection, Salt Water Disposal, Water Supply for Injection, Observation, or Other. Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPI (Top of Producing Interval). Item 8: The Kelly Bushing and Ground Level elevations in feet above mean sea level. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits (ex: 50- 029 - 20123- 00 -00). Item 20: Report true vertical thickness of permafrost in Box 20. Provide MD and TVD for the top and base of permafrost in Box 28. Item 23: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 24: If this well is completed for separate production from more than one interval (multiple completion), so state in item 1, and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval). Item 27: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut -in, or Other (explain). Item 28: Provide a listing of intervals cored and the corresponding formations, and a brief description in this box. Submit detailed description and analytical laboratory information required by 20 AAC 25.071. Item 30: Provide a listing of intervals tested and the corresponding formation, and a brief summary in this box. Submit detailed test and analytical laboratory information required by 20 AAC 25.071. Form 10 -407 Revised 12/2009 Teck Alaska Incorporated +1 907 426 2170 Tel Red Dog Operations +1 888 900 1179 Fax 3105 Lakeshore Drive www.teck.com Building A, Suite 101 Anchorage, AK USA 99517 Teck August 15, 2012 Ms. Cathy Foerster, Chair Alaska Oil and Gas Conservation Commission 333 West 7th Ave., Suite 100 Anchorage, Alaska 99501 RE: Well Completion Report, Plug and Abandonment Teck Alaska Incorporated, NB -02 (PTD 205 -096) Sundry No. 312 -219 Dear Ms. Foerster, Teck Alaska Inc. hereby submits its Well Completion Report for the plugging and abandonment of its NB- 02 well. The well has been completely filled with cement, cut off below ground level, a marker plate installed and the stub buried. Enclosed please find: • Form 10-407 Well Completion or Recompletion Report and Log • As -P &A'd Wellbore Schematic • Summary of P &A Operations • Photographic Documentation of the Well's Surface Abandonment If you have any questions or require additional information, please contact me at (907) 426 -9326 or Bill Penrose of SolstenXP at (907) 264 -6114. Sincerely, Teck Alaska Incorporated irnw -T Thomas J. Farr Chief Mining Engineer cc: Bill Penrose - SolstenXP Attachments Teck Alaska Incorporated +1 907 426 2170 Tel Red Dog Operations +1 888 900 1179 Fax 3105 Lakeshore Drive www.teck.com Building A, Suite 101 Anchorage, AK USA 99517 Teck Red Dog Well NB -02 P &A Operations Summary August 01, 2012 Move all equipment From NB -05 to NB -02. Mix 10 bbls of 9.3 ppg brine and pump downhole. Monitor well, well on slight vacuum. Mix and pump another 10 bbls of 9.3 ppg brine and monitor well. Still on slight vacuum. Load warm water, mix and pump 30 bbls of 10.7 ppg cement at 2 bpm, 200 psi. Clean ✓ equipment and shut down for night. August 03, 2012 Load and heat water, mix 40 bbls of 10.7 ppg permafrost cement and pump into well at 2 bpm, 0 psi. Well took 33 bbls to fill. Total cement pumped into NB -02 is 63 bbls. Pump remaining cement to slop tank, clean up equipment and ship to NB -04A. August 05, 2012 Excavate around NB -02, locate liner delineating original ground level from pad. Excavate 5' below original ground level. Take measurements and photographs. Sniff excavation with gas sniffer and cut 13 -3/8 ", 8 -5/8" and 5 -1/2" casings. Clean up stub and photograph. Install marker plate, photograph and backfill excavation, building up a burial mound. Photograph mound. • • NB -02 As P & A'd Wellbore Diagram 4' $1 ...:4:4 . : 18" Hole 13 - 3/8 Casing t•Y „ • k • K-55, 54 .5 Ibs / ft ..$4 '�• ° ' TD @ 75' •z :. 5 14 ;`44.4∎ 1 2 -1 /4” Hole 4 . • • 8 - 5/8" Casing � K - 55, 24 lbs / ft 4 *:t; TD @ 480' 4 ���:" ��• " — Base of Permafrost 640' ,••1 ,,.,...c, do $$ 7 - 7/8" Hole ii ■• • '' 1,130' - 1,150', 1,210' - 1,230' M 's'� .; 1,555' - 1,575', 1,690' - 1,710' �: 1,900' - 1,920', 2,020' - 2,030' a�+'+ 2,070' - 2,080', 2,125' - 2,135' s ss4 2,170' - 2,180' - 2,690' - 2,710' ;. s ti• > *�'+ ®'s•o 2,750' - 2,770' - 2,810' - 2,830' '�'; � 2,895' - 2,915' - 2,920' - 2,940' `'•• 5 - 1/2" Casing ;'0: iti*fr> ' . J - 55, 15.5 lbs / ft . � TD @ 3,076' �.• •' TD 3,110' REV 13 AUGUST 2012 i it "' ''''' 14.. ' to e ip ,.._ -- ,r, t . . ,. - _ . , A w, s *a , • y k .. N it t j • r , 1" „fir" , • ; 4 .. ' ?4 , v , x. 'fir ; . "1 x S tr fix' , 44 F r7 ms a^ tie . ,.: �,.� Y r r 7f% 1 „ 4. �„ar. -7 <, k i . :•� . . `� ate• _ - r s Xt ,r,t +M .. ^J ... .. -4444 'qp •' Ilk a a M/ 4 . � E . a • : i a 4 1 M �v ' ., Ott s s : i '! ',AV k:15, • t '54 1 1 : 41 7 7. 0 , i A do e a 4 s l . , ,,...,. ,, ,. '., ., . : —..., . ,.. .., a . .. -. . .,. , • ♦c . . . ,. ' I', . ''''' ' ,gy, ' d ,a 3, , # • ' f x a - . a _ , t 4 1 iito I. j " +d+ a m °Ak � a a � 1 I fir it". i6 * . '' ' o a . , „ - , „! f a' . ra 4 �• - 1+,..= �.. �.. _ - � i � � � 4; 1 it'''' 4 `, . :j( t f.' ' '` s " ! y + ' I � , ' a , t; y 5 # r k 4 • : '� y = ;. T " t . f ,rst is �g *, y '• > k" 4 t y .bar, 1 r r^, .1 �Y ? t l.. rC. : : I r t d ' "a. 0 .. i t a ` .,.,,,,,;,,.,„,,,,.....„,,,,,„.,, ... , . „,„,... N''' i „,,,,,,$), ' •.., '.4 r • r �� 9 fill. ; � � . ef”) Olt \ 3. ,,.. c ii„,a, . . . , .... .., , 4P J . If 4 N. „404 (...."*"%117 . * lirt.. il /IP —..4"'"Nilikt,, 4 1 c\ „i f o .... . c INS, ,rte,., 0 x . 0 , , a Q �r x ' 4 �as � • o. .:x 2 * 4 ,,,c. 4.1 44.1 et 41.41 it 4 4.t.' 44 - 4.'1 ' ' '. ' ' ' '* # t • r 9q k!� • • U f ' a '1 - . ' 1 SEAN PARNELL, GOVERNOR ALASKA OIL AND GAS 333 W. 7th AVENUE, SUITE 100 CONSERVATION COM IISSION ANCHORAGE, ALASKA 99501 -3539 PHONE (907) 279 -1433 FAX (907) 276 -7542 Michael Harvie Senior Mining Engineer Teck Alaska Incorporated " JUN 2 9 LO12 ,_ 09,6 3105 Lakeshore Dr., Bldg A off,© Anchorage, AK 99517 Re: Red Dog Field, Kivalina Undefined Gas Pool, NB -02 Sundry Number: 312 -219 Dear Mr. Harvie: Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for reconsideration. A request for reconsideration is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. Sincerely, P;re..111-1,__, Cathy . Foerster Chair DATED this /a day of June, 2012. Encl. � :�► b.� ''/ RECEIVED . f STATE OF ALASKA JUN 1 3 2012 ALASKA OIL AND GAS CONSERVATION COMMISSION • APPLICATION FOR SUNDRY APPROVALS AOGCC 20 AAC 25.280 1. Type of Request: Abandon 0 • Plug for Redrill ❑ Perforate New Pool ❑ Repair Well ❑ Change Approved Program ❑ Suspend ❑ Plug Perforations ❑ Perforate ❑ Pull Tubing ❑ Time Extension ❑ Operations Shutdown ❑ Re -enter Susp. Well ❑ Stimulate ❑ Alter Casing ❑ Other: ❑ 2. Operator Name: 4. Current Well Class: 5. Permit to Drill Number: Teck Alaska Incorporated Development ❑ Exploratory 19 205 - 096 3. Address: Stratigraphic ❑ Service ❑ 6. API Number: 3105 Lakeshore Dr., Bldg A, Anchorage, AK 99517 50 - 073 - 20003 - 00 • 7. If perforating, closest approach in pool(s) opened by this operation to nearest 8. Well Name and Number: property line where ownership or landownership changes: NB - 02 Spacing Exception Required? Yes ❑ No 0 9. Property Designation (Lease Number): 10. Field / Pool(s): NANA Regional Corporation (FEE -NANA) Field: Red Dog / Pool: Kivalina Undefined Gas 11. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD (ft): Effective Depth TVD (ft): Plugs (measured): Junk (measured): 3,110' , 3,110' - 3,076' 3,076' None None Casing Length Size MD . TVD Burst Collapse Structural Conductor 75' 13 -3/8' 75' 75' 2,730 psi 1,130 psi Surface 480' 8 -5/8" 480' 480' 2,950 psi 1,370 psi Intermediate 3,076' 5 -1/2" 3,076' 3,071' 4,810 psi 4,040 psi Production Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): 1,130' - 2,940' 1,130' - 2,940' N/A N/A N/A Packers and SSSV Type: Packers and SSSV MD (ft) and TVD (ft): None None 12. Attachments: Description Summary of Proposal ❑ 13. Well Class after proposed work: Detailed Operations Program 0 BOP Sketch ❑ Exploratory El - Development ❑ Service ❑ 14. Estimated Date for 15. Well Status after proposed work: Aug - 2012 Commencing Operations: Oil ❑ Gas ❑ WDSPL ❑ Suspended ❑ 16. Verbal Approval: Date: WINJ ❑ GINJ ❑ WAG ❑ Abandoned 113 ' Commission Representative: GSTOR ❑ SPLUG ❑ 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Bill Pnrose 907 - 264 - 6112 Printed Name Micheal Harvie Title Senior Mining Engineer Signature .+u4,, Phone Date tot $/ it 907 -426 -9233 / COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: 3 k 2 -2. l Plug Integrity BOP Test le Mechanical Integrity Test ❑ Location Clearance l Other: 130 'f51 IC) 1 ✓ ©O p L 1\10 fifJ ✓l 15p r z - 6i -0 a,5 1h G d)at L Phoft? c/a '1-1 rn1 evt g r7d we i cfrd plet Subsequent Form Required: APPROVED BY l Approved by: ,,e../...icif"..____ COMMISSIONER THE COMMISSION Date: ....7f Z ` Vf \ Form 10-40 Re �� J 1 it in Duplicate licate ��� Revised 1/2010 �J omINNEDMS 9 20 P i • • June :8, 2012 Ms. Cathy Foerster, Chair Alaska Oil and Gas Conservation Commission 333 West 7 Ave., Suite 100 Anchorage, Alaska 99501 RE: Sundry Application to Plug and Abandon Teck Alaska Incorporated, NB -02 (PTD 205 -096) Dear Ms. Foerster, Teck Alaska Inc. proposes to plug and abandon its NB - 02 well. It is intended to plug the well back to surface, install the required marker plate and bury the stub. Teck plans to plug the well from 3,076' MD /TD to surface by pumping 10.7 ppg permafrost cement as indicated on the enclosed wellbore schematic. The abandonment of NB - 02 will be accomplished as indicated in the attached P &A procedure. The work is expected to commence in August of this year. If you have any questions or require additional information, please contact me at (907)- 426 -9233, Thomas Farr at (907)- 426 -9326 or Bill Penrose at 264 -6114. Sincerely, Teck Alaska Incorporated Micheal Harvie Sr. Mine Engineer cc: Bill Penrose - SolstenXP Attachments 1 • • P &A Procedure: NB - 02 1. MIRU P &A equipment. Do not commence well operations until all equipment and materials required for this job are onsite. 2. Check all annuli for pressure. If any is found, document pressure and attempt to bleed it off. If it does not bleed off or if it re- builds, contact Anchorage office for plans to deal with it. 3. Remove the existing hammer union from the wellhead and set aside. Unscrew the wellhead from the casing and set aside. 4. Mix 10 bbls of 9.3 ppg brine. Fill well with brine. If additional brine is needed to fill well, mix and add in 10 -bbl batches until well is full. 5. Make up a 5 -1/2" casing x 1502 union crossover onto the casing stub sticking up. Install a 1502 union onto the crossover. Make up the crossover and union as tightly as possible. 6. Rig up pump and lines onto the 1502 union to pump down 5 -1/2" casing. Pressure test lines to 1,000 psi. 7. Mix an additional 10 bbls of brine and attempt to bullhead down well. Do not exceed 3,800 psi (80% of the burst rating of the 5 - 1/2" casing). 8. If fluid can be pumped into the well at less than 3,800 psi, mix and pump cement into the well Per Step 9 below. If the well will not take fluid at less than 3,800 psi, skip to Step 10 below. 9. Mix 73 bbls of permafrost cement as: Density 10.70 ppg Yield 2.47 cu ft/sk Mix Water 11.724 gal /sk Thickening Time 6.0 hrs Setting Time 30.0 hrs Use both batch mixer tanks to mix this volume. Place 23 bbls of warm water in each tank and establish circulation within the batch mixer. Mix 83 sacks of cement into each tank, continually mixing. Once the cement in both tanks is at the design density of 10.7 ppg WJP 05/25/12 • • (as determined by weighing samples using a mud balance), commence bullheading cement down the 5-1/2" casing. Continue pumping cement until all cement in the batch mixer is pumped away. If the pumping pressure reaches 3,800 psi, divert any remaining cement in the batch mixer to the well fluid return tank(s) and treat the pH to prevent the cement from setting up. Do not stop rotation of the paddles until tanks are empty. • Note: The cement slurry is designed with a pumping time of 6 hours. Skip to Step 17 below. 10. If bullheading cement into the well proves unfeasible, bleed off pressure, break the pumping line from the well and back off the crossover and 1502 connection. Notify AOGCC field inspector at Prudhoe Bay that BOPE are going to be rigged up and tested and obtain a witness waiver from the inspector. 11. Reinstall the wellhead and install the wellhead x BOP flange fabricated for this purpose. h 12. N/U 4- 1/16 ", 10K psi BOPs on BOP flange. RU choke manifold, associated piping and fluid return tank. Pressure test BOPE to 1,500 psi. 13. R/U work platform and false rotary assembly on top of BOPs. 14. RIH with 1" tubing to +3,076' TD or to any shallower obstruction. If an obstruction is found above 1,130' (top perf), attempt to work past it while circulating. If tubing cannot be run all the way to TD, call the Anchorage office which will coordinate with the AOGCC on the next step. 15. With the 1" tubing at TD, mix and pump cement as follows: 16. Mix 73 bbls of permafrost cement as: 11 � � 4 5 � 1 P1 n X38 bbL /p Density 10.70 ppg J z Yield 2.47 cu ft/sk Mix Water 11.724 gal /sk 3 o b O Y. 0 Z 3 $) �> 73 "do 1 5 Thickening Time 6.0 his Setting Time 30.0 hrs Use both batch mixer tanks to mix this volume. Place 23 bbls of warm water in each tank and establish circulation within the batch mixer. Mix 83 sacks of cement into each tank, continually mixing. Once the cement in both tanks is at the design density of 10.7 ppg WJP 05/25/12 • • (as determined by weighing samples using a mud balance), commence pumping cement down the 1" tubing using the triplex pump, taking returns out of the 1" x 5 -1/2" annulus. Continue pumping cement until uncontaminated cement returns are observed at the surface then divert any remaining cement in the batch mixer to the well fluid return tank and treat the pH to prevent the cement from setting up. Do not stop rotation of the paddles until tanks are empty. Note: The cement slurry is designed with a pumping time of 6 hours. 17. Clear and clean lines and cementing equipment. 18. Rig down BOPE and all mixing, pumping and related equipment and prepare them for moving to the NB - 03 location. 19. Using excavator, excavate around the wellhead to a depth of five feet below original, surrounding ground level. 20. After at least 12 hours of WOC time, use a cutting torch to cut all casing/tubing strings off to leave well severed 4' below original, surrounding ground level. 21. Remove original guardrail, cellar, wellhead and severed casing/tubing. 22. Top off all annuli and tubing in well with cement if necessary. AOGCC and Teck representatives to witness. photo do C v ,-,r L a *® ern 23. Photographically document the condition of the top of the well before welding on the marker plate. 24. Weld a 1/4" thick, 13%2" diameter steel marker plate over the top of the cut -off well casings. AOGCC and Teck representatives to witness. Marker plate to have the following information bead welde• • 1 to it: Teck Alaska Inc. NB - 02 API #50- 073 - 20003 -00 PTD #205 -096 25. Photographically document the welded -on marker plate. 26. Back -fill excavation with original soil. Top excavation with clean gravel recovered from elsewhere on the well location, mounding it over the well to a height of 4' to compensate for later settling. WJP 05/25/12 • • 27. Clean location, obtain site clearance approval from AOGCC representative on location (if any) and transport all personnel, equipment and materials to NB - 03. Photographically document the final location condition. WJP 05/25/12 . • • NB -02 Current Wellbore Diagram ki$044#4 WI Vow 18" Hole 13 - 3/8" Casing K - 55, 54.5 Ibs / ft �- iv omo TD @ 75' VW po t.44 v �- 12-1/4" Hole r: Pil ON 8 - 5/8" Casing K - 55, 24 Ibs / ft TD @ 480' OW Base of Permafrost 640' :4 lifii : torr �- 7 - 7/8" Hole kV ill as vs 49: c 1,130' - 1,150', 1,210' - 1,230' fits iilti 1,555' - 1,575', 1,690' - 1,710' i:::Is. itt* 1,900' - 1,920', 2,020' - 2,030' 2,070' - 2,080', 2,125' - 2,135' ` i . 2,170' - 2,180' - 2,690' - 2,710' 2,750' - 2,770' - 2,810' - 2,830' om PI. to 2,895' - 2,915' - 2,920' - 2,940' 5 - 1/2" Casing J - 55, 15.5 Ibs / ft ,' ` TD @ 3,076' TD 3,110' REV 6 JUNE 2012 . • • NB -02 P & A Wellbore Diagram Cement Bullheaded In 4 . �. 4: : ,. • • . ` . , � --...- 18" Hole 13 - 3/8" Casing , ' K - 55, 54.5 Ibs / ftV*' TD @ 75' "' so : •+ %e: ao L41:•••:44 * . + --.• — 12-1/4" Hole : r l + y 8 - 5/8" Casing ' "' K -55, 24 /ft TD @480' ;.• • V41.4 —F— Base of Permafrost 640' '1V +tit.oi 444 . • a �o —.- 7 - 7/8" Hole +. kV 440:4401P0 OM Peososo•Nos.4 CO: it 1,130' - 1,150', 1,210' - 1,230' 1,555' - 1,575', 1,690' - 1,710' 02 te4 1,900' - 1,920', 2,020' - 2,030' L'i r. !, 2,070' - 2,080', 2,125' - 2,135' 2,170' - 2,180' - 2,690' - 2,710' lis 2,750' - 2,770' - 2,810' - 2,830' 2,895' - 2,915' - 2,920' - 2,940' 4 s 6164 5 - 1/2" Casing re `' w oet J - 55, 15.5 Ibs / ft • c TD @ 3,076' . TD 3,110' REV 6 JUNE 2012 • NB -02 P &A Wellbore Diagram Cement Circulated In ovemk emosft: . 13% • `X+� 1. 18" Hole 13 - 3/8" Casing K - 55, 54.5 Ibs / ft TD @75' W 044 C44 $. ito , 444 , .,„ 40 44 ON '014 12-1/4" Hole 8 - 5/8" Casing K -55, 241bs /ft milt4 3.. 444 TD @ 480' -∎-- Base of Permafrost 640' ON 40 0:4 •. . —+-- 7 -7/8" Hole 1 :SSW Kf4 fitso 44140 10: 1,130' - 1,150', 1,210' - 1,230' ttopeit 1,555' - 1,575', 1,690' - 1,710' 1,900' - 1,920', 2,020' - 2,030' 1 '4.4 2,070' - 2,080', 2,125' - 2,135' ,. 2,170' - 2,180' - 2,690' - 2,710' ", R 2,750' - 2,770' - 2,810' - 2,830' 2,895' - 2,915' - 2,920' - 2,940' ktol S od 5 - 1/2" Casing J - 55, 15.5 Ibs / ft 1" Tubing TD @ 3,076' � — TD @ +/- 3,000' TD 3,110' REV 6 JUNE 2012 • • Page 1 of 1 Schwartz, Guy L (DOA) From: Bill Penrose [bill @solstenxp.com] Sent: Thursday, June 14, 2012 8:57 AM To: Schwartz, Guy L (DOA) Cc: Ferguson, Victoria L (DOA) Subject: RE: Red Dog P & A Thanks, Guy. Please withdraw the sundries you list below and replace them with those submitted for those same wells dated June 8, 2012. Regards, Eiti Pomade Drilling Manager X FullColor_sma 5t-hiMED JUL 12 2012 310 K Street, Suite 700 Anchorage, Alaska 99501 Main 907 - 279 -6900 Direct 907 - 264 -6114 Cell 907 - 250 -3113 From: Schwartz, Guy L (DOA) [ mailto:guy.schwartz @alaska.gov] Sent: Thursday, June 14, 2012 8:52 AM To: Bill Penrose Cc: Ferguson, Victoria L (DOA) Subject: Red Dog P & A Bill, Since the sundries originally processed for the P & A are not going to be used (due to no production tubing being left in well and changing the procedure) you will need to officially ask them to be withdrawn... Just respond to this email requesting that. The sundries impacted are listed below. We are working on the new sundries you submitted and should have them reviewed soon. Red D 312 -15 a,-, - • o • NB -02 205 -096 31 -152 -4" r.0 Red Dog ` :-03 206-091 - Red Dog NB -04A 206 -089 312 -154 Red Dog NB -05 206 -097 312 -155 Guy Schwartz Senior Petroleum Engineer AOGCC 793 -1226 (office) 444 -3433 (cell) 6/14/2012. a • • G C r SEAN PARNELL, GOVERNOR ALASKA OIL AND GAS 333 W. 7th AVENUE, SUITE 100 CONSERVATION COMiMIISSION ANCHORAGE, ALASKA 99501 -3539 PHONE (907) 279 -1433 FAX (907) 276 -7542 Tom Farr Chief Mining Engineer Teck Alaska Incorporated 3105 Lakeshore Drive, Bldg. A '"`��� 1 �� Anchorage, AK 99517 q Re: Red Dog Field, Kivalina Pool, NB -02 Sundry Number: 312 -152 Dear Mr. Farr: Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for reconsideration. A request for reconsideration is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. Sincerely, Cathy Foerster Chair DATED this (q day of April, 2012. Encl. Teck Alaska Incorporated +1 907 426 2170 Tel Red Dog Operations +1 888 900 1179 Fax 3105 Lakeshore Drive www.teck.com Building A, Suite 101 Anchorage, AK USA 99517 Teck April 10, 2012 RECEIVED Ms. Cathy Foerster, Chair RECEIVED Oil and Gas Conservation Commission APR 1 U L 333 West 7 Ave., Suite 100 ���� Anchorage, Alaska 99501 RE: Sundry Application to Plug and Abandon Teck Alaska Incorporated, NB -02 (PTD 205 -096) Dear Ms. Foerster, Teck Alaska Inc. proposes to plug and abandon its NB - 02 well. It is intended to plug the well back to surface, install the required marker plate and bury the stub. Teck plans to plug the well from 2,628' MD to surface by pumping 10.7 ppg permafrost cement as indicated on the enclosed wellbore schematic. The abandonment of NB - 02 will be accomplished as indicated in the attached P &A procedure. The work is expected to commence in August of this year. If you have any questions or require additional information, please contact me at (907)- 426 -9326 or Bill Penrose at 264 -6114. Sincerely, Teck Alaska Incorporated i Thomas Farr Chief Engineer cc: Bill Penrose - SolstenXP Attachments W A E CEI 0 ` ; VET e STATE OF ALASKA APR 1 6 2012 ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS AOGCC 20 AAC 25.280 1. Type of Request: Abandon 0 • Plug for Redrill ❑ Perforate New Pool ❑ Repair Well ❑ Change Approved Program ❑ Suspend ❑ Plug Perforations ❑ Perforate ❑ Pull Tubing ❑ Time Extension ❑ Operations Shutdown ❑ Re -enter Susp. Well ❑ Stimulate ❑ Alter Casing ❑ Other: ❑ 2. Operator Name: 4. Current Well Class: 5. Permit to Drill Number: Teck Alaska Incorporated Development ❑ Exploratory 0 • 205 -096 . 3. A dd r ess : Stratigraphic ❑ Service ❑ 6. API Number: 3105 Lakeshore Dr., Bldg A, Anchorage, AK 99517 50 -073- 20003 -00 • 7. If perforating, closest approach in pool(s) opened by this operation to nearest 8. Well Name and Number: property line where ownership or landownership changes: Spacing Exception Required? Yes ❑ No El NB -02 9. Property Designation (Lease Number): 10. Field /Pool(s): NANA Regional Corporation (FEE -NANA) • Field: Red Dog / Pool: Kivalina Undefined Gas 11. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD (ft): Effective Depth ND (ft): Plugs (measured): Junk (measured): 3,110' ' 3,104' • KB KB None None Casing Length Size MD ND Burst Collapse Structural Conductor 75' 13 -3/8' 75' 75' 2,730 psi 1,130 psi Surface 480' 8 -5/8" 480' 480' 2,950 psi 1,370 psi Intermediate 3,076' 5 -1/2" 3,076' 3,071' 4,810 psi 4,040 psi Production Liner Perforation Depth MD (ft): Perforation Depth ND (ft): Tubing Size: Tubing Grade: Tubing MD (ft): 1,130' - 2,940' 1,130' - 2,940' 2 -3/8" J -55 2,628' Packers and SSSV Type: Packers and SSSV MD (ft) and ND (ft): None None 12. Attachments: Description Summary of Proposal ❑ 13. Well Class after proposed work: Detailed Operations Program El BOP Sketch ❑ Exploratory 0 • Development ❑ Service ❑ 14. Estimated Date for 15. Well Status after proposed work: Aug -2012 Commencing Operations: Oil ❑ Gas ❑ WDSPL ❑ Suspended ❑ 16. Verbal Approval: Date: WINJ ❑ GINJ ❑ WAG ❑ Abandoned El . Commission Representative: GSTOR ❑ SPLUG ❑ 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Bill Pnrose 907 - 264 -6112 Printed Name Tom Farr Title Chief Mining Engineer Signature ___ „��° Phone Date Mo.) . . /- 907426 -9326 A Pitt t 09 z.oiz. COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: 5 ` 2-r' 52 Plug Integrity M BOP Test ❑ Mechanical Integrity Test ❑ Location Clearance O t h e r : �� ^^ / - 7 ?/ / c 4-f , /” h 0 to c v c 1 i t i'1 / e4 _ 5 1„7 J G° �� pf 2 t ,5/ e it-Ai-4 t� C Subsequent Form Required: ✓ APPROVED BY Approved by: 06 COMMIS T C MMISSION� Date: 4_f q-- / z-- / OD Form 10 -403 Revised 1/2010 `0 7_ Submit in Duplicate Teck Alaska Incorporated +1 907 426 2170 Tel Red Dog Operations +1 888 900 1179 Fax 3105 Lakeshore Drive www.teck.com Building A, Suite 101 Anchorage, AK USA 99517 Teck P &A Procedure: NB - 02 1. MIRU camp and equipment. Do not commence well operations until camp operations have been established, personnel are settled in and all equipment and materials required for this job are onsite. 2. Check all annuli for pressure. If any is found, document pressure and attempt to bleed it off. If it does not bleed off or if it re- builds, contact Anchorage office for plans to deal with it. 3. Rig up pump and lines to pump down 2 -3/8" tubing and take returns from the 2 -3/8" x 5 -1/2" annulus. Pressure test lines to 1,000 psi. 4. Fill one mixin g tank with 15 bbls of warm water. 5. Pump water down 2 -3/8" tubing with 0.5 bbls /min flow rate to establish circulation. Take returns to holding tanks provided by Teck. If no circulation established, RU wireline with pressure control equipment. 6. PT wireline equipment to 250 psi low /3,000 psi high. 7. RIH with 5'of 1- 11/16 ", 4 spf tubing puncher /CCL to 2,600' and punch 2 -3/8 "tubing. 8. POOH with wireline. Confirm shots fired. 9. Pump water down 2 -3/8" tubing with 0.5 bbls /min flow rate to establish circulation. Take returns to holding tanks provided by Teck. 10. Mix 60 bbls of permafrost cement as: Density 10.70 ppg Yield 2.47 cu ft/sk Mix Water 11.724 gal /sk Thickening Time 6.0 hrs Setting Time 30.0 hrs Use both Batch Mixer tanks to mix this volume. Have 19 bbls of warm water in each tank, establish circulation within the Batch Mixer. Add 3.5 super sacks (7,000 lbs) of Teck cement into each tank, continue mixing. Once the cement in both tanks is at the designed density at 10.7 ppg (as determined by weighing samples using a mud balance), commence pumping cement down the 2 -3/8" tubing using the triplex pump, taking returns out of the 2 -3/8" x 5 -1/2" annulus. Continue pumping cement until uncontaminated cement returns are observed at the surface then divert any remaining cement in the batch mixer to the well fluid return tank(s) and treat the pH to prevent the cement from setting up. Do not stop rotation of the paddles until tanks are empty. Note: The cement slurry is designed with a pumping time of 6 hours. 11. When the pump is shut down, immediately shut the well's annulus and tubing valves and disconnect lines. 12. Clear and clean lines and cementing equipment. 13. WOC at least 12 hours. 14. Rig down all mixing, pumping and related equipment and prepare them for moving to the NB - 03 location. 15. Using excavator, excavate around the wellhead to a depth of five feet below original, surrounding tundra level. 16. After WOC period is finished and using a cutting torch and hydraulic jack hammer (for cement), cut all casing and tubing strings off to leave well severed 4' — 5' below tundra level. 17. Remove original guardrail, cellar, wellhead and severed casing/tubing. 18. Top off all annuli and tubing in well with cement if necessary. AOGCC and Teck representatives to witness. 19. Photographically document the condition of the top of the well before welding on the marker plate. 20. Weld a 1 A" thick, 16" diameter steel marker plate over the top of the cut -off well casings. AOGCC and Teck representatives to witness. Marker plate to have the following information bead - welded onto it: Teck Alaska Incorporated NB -02 API #50- 2073 - 20003 -00 PTD #205 -096 21. Photographically document the welded -on marker plate. p 2 Teck 22. Back -fill excavation with original soil. Top excavation with fifteen yards of clean gravel brought out from Red Dog Mine, mounding it over the well to compensate for settling as soil thaws. 23. Clean location, obtain site clearance approval from AOGCC representative on location and transport all personnel, equipment and materials to NB - 03. Photographically document the final location condition. 3 • • NB - Current Wellbore Diagram wove* -11111- 18" Hole 13 - 3/8" Casing K -55, 54.5lbs /ft TD @ 75' 12 -1/4" Hole ,k p 40 or* 00 tos :34 Nikk 8 - 5/8" Casing .44 +44 K - 55, 24 lbs / ft v TD @ 480' os Ni: iiiii ; Base of Permafrost 640' --.._- 7 - 7/8" Hole 04 gi it 3 is 4sis 1,130' - 1,150', 1,210' - 1,230' y 1,555' - 1,575', 1,690' - 1,710' 34 x kl et vla r Vv / `� � y x 1,900' - 1,920', 2,020' -2,030' (,O/93 ��J)) 2S' / �� 2,070' - 2,080', 2,125' - 2,135' f f � lib kids 2,170' - 2,180' - 2,690' - 2,710' ill i e r 2,750' - 2,770' - 2,810' - 2,830' 2 - 3/8" Tubing - 2,895' - 2,915' - 2,920' - 2,940' TD @ 2,628 filil *a 5 - 1/2" Casing J -55, 15.5Ibs /ft �- 1 TD @ 3,076' /i�8 ' (, 1 V 7 ' O /5) F' `-) i 3- 6'4 /3 TD 3,110' REV 7 NOV 2011 NB -02 P &A Weilbore Diagram k ;:� -�-- 18" Open Hole . 1: 13 - 3/8" Casing K - 55, 54.5 lbs / ft TD @ 75' r to 12-1/4" Open Hole Lis kg; r„rsiMotA 1 8 - 5/8" Casing ,". K - 55, 24 Ibs / ft TD @ 480' ot000sx *NA VW - a--- Base of Permafrost 640' 44 tat 4,1 l' 7- 7/8" Open Hole r pee 00 ri 44 1 etts 110 414 wow dteto 1,130' - 1,150', 1,210' - 1,230' o 0,14 1,555' - 1,575', 1,690' - 1,710' + 1,900' - 1,920', 2,020' - 2,030' 2,070' - 2,080', 2,125' - 2,135' 2,170' - 2,180' - 2,690' - 2,710' 2,750' - 2,770' - 2,810' - 2,830' 2 - 3/8" Tubing TD @ 2,628' 2,895' - 2,915' - 2,920' - 2,940' ot-A, rat 5 - 1/2" Casing " 44 44 W Pp J -55, 15.5 Ibs /ft TD @ 3,076' TD 3,110' 3 NOV 2011 • • Teck Alaska Incorporated +1 907 426 2170 Tel Red Dog Operations +1 907 426 2177 Fax 3105 Lakeshore Drive www.teck.com • Building A, Suite 101 Anchorage, AK USA 99517 Teck January 4, 2010 Alaska Oil and Gas Conservation Commission 333 West 7 Avenue Suite 100 Anchorage, AK 99501 App - °/, Attention: Mr. Dan Seamount, Chairman ?OS -cS Re: Wells Nos. NB -01, NB -02, NB -03, NB -04A, NB -05 Teck Alaska Incorporated Dear Mr. Seamount, This is to advise the Commission that effective January 15, 2010, the Teck Alaska, Inc., Point of Contact for all AOGCC related matters is Mr. Thomas Farr, Chief Engineer. Please direct all future communications relating to such matters to Mr. Farr, as noted below: Mr. Thomas Farr, Chief Engineer Teck Alaska, Inc Red Dog Mine 3105 Lakeshore Drive Building A, Suite 101 Anchorage, AK 99517 thomas.farrOteck.com 907.426.9326 Red Dog Office phone Respectfully, Wallace Hendricks Teck Alaska Incorporated cc. Commissioner Cathy P. Foerster Commissioner John Norman 'Mr. Tom Maunder, P.E. Petroleum Engineer, AOGCC Mr. Stephen McMains, Statistical Technician, AOGCC Mr. John Egan, Operations Manager, Red Dog Mine Mr. Warren Draper, Mine Superintendent, Red Dog Mine Mr. Mark Smith, Mine Superintendent, Red Dog Mine Mr. Thomas Farr, Chief Engineer, Red Dog Mine .,_z r~~. ` 2 -c T~~ F & P SERVICcS, INC. avs- ~~~ I~'~ 7 ~~~~~ ,, - ~~~ ~ ~ .~a January 9, 2008 Alaska Oil and Gas Conservation Commission 333 West 7~' Avenue, Suite 100 Anchorage, Alaska, 99501 Attention: John Norman, Chairman Re: Teck Cominco Alaska Incorporated Red Dog Shallow Gas Exploration Wells Nos. NB-O1, NB-02, NB-03, y __- _ _ .__._ _. NB-04A, and NB-O5. Dear Mr. Norman: This is to advise the Commission that effective this date, all monthly production and gas disposition reporting functions have been transferred to the operator, Teck Cominco Alaska Incorporated. The project is moving into a prolonged period of dewatering and production testing, and some efficiencies will be gained by having the reports originate directly from the project office at Red Dog Mine. The Teck Cominco point of contact for all AOGCC related matters is Wally Hendricks. Please direct all future communication relating to such matters to Mr. Hendricks as noted below: Mr. Wally Hendricks Teck Cominco Alaska Incorporated Red Dog Mine 3105 Lakeshore Drive, Building A Anchorage, AK 99517 E-mail: Wallace.Hendricks(a.teekcominco.com Telephone: 907 426 9806 Red Dog Office Direct 907 426 9136 Red Dog PAC 307 232 9639 Wyoming Office Direct 307 267 1342 Cell 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 • (907) 258-3446 • (907) 279-5740 Fairweather E & P Services Inc will remain in the capacity of technical advisor to the project on an as-needed basis, but is no longer involved in matters related to day-to-day operations and AOGCC compliance issues. Sincerely, Fairweather E & ~' Services, Inc. _~ .:. -~ __._ .: ~,. i . ~~"'~ R. C. Gardner Sr. Technical Advisor cc: Commissioner Cathy P. Foerster Commissioner Dan Seamount Tom Maunder, AOGCC Steve McMains, AOGCC Dave Roby, AOGCC Wally Hendricks, Teck Cominco Alaska Incorporated Jerry Booth, G.G. Booth and Associates Maunder, Thomas E (DOA) From: Booth Jerry SPOK [Jerry.Booth@teckcominco.comJ Sent: Wednesday, January 09, 2008 1:28 PM To: bob@fairweather.com; Jessika Russell (jessika.russell@fairweather.com); jkelafant@adv-res.com; sbumgardner@adv-res.com; Maunder, Thomas E (DOA); Copoulos, Arthur E (DNR); Michael Jungreis; Bill Van Dyke (vandykpp@rogershsa.com); Greene Marie NANA; Paul Glavinovich (Paul.Glavinovich@nana.com); kdawson@alaska.com; Clough, James G (DNR); Lively Jeff VANM; Platt, Dudley (DOR sponsored); JCaballero@adv-res.com Cc: Hendricks Wallace RDOG; Thornton George RDOG; Draper Warren RDOG; Kulas Jim RDOG; Turner Kent SPOK; DiLuzio Bruce SPOK Subject: Red Dog Gas Project All Noted: Please note that Wally Hendricks will be the new contact for all gas related issues for the Red Dog Project. Please direct atl questions and communication to Mr. Hendricks as noted below: Mr. Wally Hendricks Teck Cominco Alaska Incorporated Red Dog Mine 3105 Lakeshore Drive, Bldg. A Anchorage, Ak 99517 Email: Wallace,Hendricks@teckcominco.com Phone: 907-426-9806 Red Dog Office Direct 907-426-9136 Red Dog PAC 307-232-9639 Wyoming Office Direct 307-267-1342 Cell Phone Thanks for all your help on this new and innovative project. Jerry Booth 509.979.3620 -Cell Phone ~ S -O~,`~ was- ~~. ~-~ ~ - o~, ~~--~ Cc, - ~ c~ a~~ - o~ 1 /9/2008 ~ ~~ ~~ DATA S4JBMITTAL COMPLIANCE REPORT 10/29/2007 Permit to Drill 2050960 Well Name/No. NB 02 Operator TECK COMINCO ALASKA INCORPOR API No. 50-073-20003-00-00 MD 3110 TVD 3104 Completion Date 9/10/2005 Completion Status 1-SBNG Current Status 1-SBNG UIC N REQUIRED INFORMATION Mud Log No DATA INFORMATION Types Electric or Other Logs Run: Triple combo, cased hole neutron, CBL Well Log Information: Log/ Electr Data Digital Dataset Med/Frmt Number Name Samples No Directional Survey Yes (data taken from Logs Portion of Master Well Data Maint Log Log Run Interval OH / Scale Media No Start Stop CH Received Comments Porosity /Log Porosity og Cement Evaluation Log Cement Evaluation I Log Cement Evaluation f Log Porosity D C -~(.~ 13830 wGement Evaluation ED C ,..}pg(~ 13830~'Porosity Well Cores/Samples Information: Name 2 Blu 1 30 1945 Case 4/26/2006 Porosity log compensated sonic cased hole neutron ~~'~~`~ 22-Aug-2005 5 Blu 1 30 1945 S%z+se 4/26/2006 Porosity log compensated sonic cased hole neutron 22-Aug-2005 2 Blu 1 30 2945 Case 4/26/2006 Cement Bond Log 20-Aug- 2005 5 Blu 1 30 2945 Case 4126/2006 Cement Bond Log 20-Aug- 2005 2 Myl 1 30 2945 Case 4/26/2006 Cement Bond Log 20-Aug- 2005 2 Myl 1 30 1945 ~ 4/26/2006 Porosity log compensated sonic cased hole neutron 22-Aug-2005 2 1 30 2945 Case 4!26/2006 Cement Bond Log 20-Aug- 2005 2 1 30 1945 ( 4/26/2006 Porosity log compensated sonic cased hole neutron 22-Aug-2005 Sample Interval Set Start Stop Sent Received Number Comments DATA SUBMITTAL COMPLIANCE REPORT 10/29/2007 Permit to Drill 2050960 Well Name/No. NB 02 Operator TECK COMINCO ALASKA INCORPOR API No. 50-073-20003-00-00 MD 3110 TVD 3104 ADDITIONAL INFORMATION Well Cored? Y~hT~ ~ / Chips Received? --'f? 1 ~ Analysis ~L6N Received? Completion Date 9/10/2005 Completion Status 1-SBNG Current Status 1-SBNG UIC N Daily History Received? ~N Formation Tops ~l / N Comments: Compliance Reviewed By: Date: .~ i a~~. i vi ~ ~ ~`~ ~~~, Maunder, Thomas E (DOA) From: Maunder, Thomas E (DOA) Sent: Monday, October 29, 2007 8:56 AM To: °Bob Gardner' Cc: Booth Jerry SPOK Subject: RE: Teck Cominco Alaska Incorporated, Red Dog Shale Gas Exploration Project, Wells Nos. NB- a05-O~S' 01, -02, NB-03, NB-04A, and NB-05 -~ a0~_ ,~r1~ L ao~-ono Bob and Jerry,'~b5-C7C1fo a0`1-O~S~ I confirm our call. Halting the weekly reports is appropriate. As proposed, please keep the Commission advised regarding the resumption of pumping operations. Call or message with any questions. Tom Maunder, PE AOGCC From: Bob Gardner [mailto:bob@fairweather.com] Sent: Monday, October 29, 2007 8:22 AM To: Maunder, Thomas E (DOA) Cc: Booth Jerry SPOK Subject: Teck Cominco Alaska Incorporated, Red Dog Shale GasExploration Project, Wells Nos. NB-01, NB-02, NB-03, NB-04A, and NB-05 Tom: As per our recent telephone conversation, and the last Weekly Operations Summary Reports covering the above referenced wells, the Red Dog Shale Gas Exploration Project will be shut-in for an indefinite period due to electrical problems with the power fine between the mill at Red Dog mine, and the project site. This line supplies 100% of the power required to operate the wells during the planned extended dewatering period. We are still uncertain about the exact duration of the shut-in period, as the Red Dog Engineering and Electrical Departments are still trying to make a determination on whether a mill shutdown will be required to install an isolation switch and ancillary equipment. This extended shut-in period is caused by an electrical malfunction that has nothing to do with the condition of the wells or surface facilities at the GasEx project site. The problem is being addressed by the aforementioned Red Dog Mine Departments with an eye toward both maintaining the productivity of the minetmill complex, and getting the dewatering pumping resumed as soon as reasonably possible. The equipment and materials necessary to correct the electrical problem have been ordered, and installation will occur at the most opportune time after they are delivered to Red Dog. We are told that under the most optimistic scenario, a restart of dewatering pumping could occur in the December 2007-January 2008 time frame. If a mill shutdown is required in order to install the equipment, the shut-in period could extend into April 2008 when the next regularly scheduled mill shutdown will occur. We will keep the AOGCC advised on developments as they are made known to us. Now that all wells in the initial five-spot pattern are completed, we respectfully request that the requirement for Weekly Operations Summary Reports be suspended. Monthly Production Reports (Form 10-405) will be filed both during the shut-in period, and far so long thereafter as there are ongoing productions operations at the GasEx project site. Thank you for your consideration of this request, and your «nderstanding of the electrical problems that :ve are currently experiencing. Sincerely, R. C. Gardner 10/29!2007 E & P SERVICES, INC. October 24, 2007 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 _a Attention: Mr. Tom Maunder, P.E., Petroleum Engineer Re: Weekly Operations Status Report Teck Cominco Alaska Incorporated, Red Dog Shallow Gas Exploration Program. Report Period: October 14-October 20, 2007 Well Nos: NB-O1 (PTD 205-095), and NB-02 (PTD 205-096) Dear Mr. Maunder: FOR THE PERIOD ENDING SATURDAY, October 20, 2007: Well No. NB-02 remained shut-in during this report period. Red Dog Engineering Department advises that pumping cannot be restarted until an isolation switch in the main power line to the GasEx project site can be installed. The equipment has been ordered, but it remains to be determined if it can be installed without shutting down the mill. The preliminary estimate for abest-case dewatering restart is in the December 2007-January 2008 time frame. The restart could be delayed until the next regularly scheduled mill shutdown in Apri12008 if a mill shutdown is required before the switch can be installed. As a precautionary measure, the tubing and pump stator were pulled on October 16, 2007, and the well will be freeze protected during the shut-in period. The final water level reading in NB-02 was 463 ft belowground level, which is roughly consistent with previous static water level measurements in this well. Well No. NB-Ol remained shut-in during this report period. Red Dog Engineering Department advises that pumping cannot be restarted until an isolation switch can be installed in the main power line to the GasEx project site. This equipment has been ordered, but it remains to be determined if it can be installed without shutting down the mill. The preliminary estimate for abest-case dewatering restart is in the December 2007-January 2008 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 • (907) 258-3446 ~ (907) 279-5740 "'~ v 1~l time frame. The restart could be delayed until the next regularly scheduled mill shutdown in April 2008 if a mill shutdown is required before the switch can be installed. As a precautionary measure, the tubing and pump stator will be pulled form NB-Ol within the next few days, and the well will be freeze protected during the shut-in period. The accuracy of water level measurements are suspect in this well for unknown reasons, but the well appears to be gradually refilling since it was shut-in. Sincerely, ,,i" ,.~ .~ -~ ~ ~~ `~R:fC. Gardner For Teck Cominco Alaska Incorporated Cc: Jerry Booth, Teck Cominco Alaska Incorporated • October 17, 2007 Alaska. Oil and Gas Conservation Commission 333 West 7~' Avenue, Suite 100 Anchorage, AK 99501 Attention: Mr. Tom Maunder, P.E., Petroleum Engineer Re: Weekly Operations Status Report Teck Cominco Alaska Incorporated, Red Dog Shallow Gas Exploration Program. Report Period: October 7-October 13, 2007 Well Nos: NB-O1 (PTD 205-095), and I'-0~ ~]`~t3!~-~ Dear Mr. Maunder: FOR THE PERIOD ENDING SATURDAY, October 13, 2007: Continued with dewatering pump, ~t N&-Q~2 .~ U20~31irs on October 9, 2007, when electrical problems in the main Skv line to the GasEx project site caused an electrical disruption in the Red Dog mill. This resulted in Red Dog disconnecting the GasEx power system from the grid. All dewatering pumping has been shut down for the remainder of the report period... The separator and surge vessel at NB-02 were drained and blown down. A portable generator was set up on the NB-01 pad so the buildings at both NB- 02 and NB-01 can remain heated. Water produced during this report period was 624 bbls, and gas produced averaged 1.4 MCF/D during the period when the well was in operation. The water level in NB-02 at the end of the report period had risen to 463 ft below ground level after pumping was stopped. The well remains shut-in while Red Dog works the electrical problem, and evaluates re-start options. Continued with dewatering pumping at NB-0l until 0200 hrs on October 9, 2007, when electrical problems in the main Skv line to the GasEx project site caused an electrical disruption in the Red Dog mill. This resulted in Red Dog disconnecting the GasEx power system from the grid. All dewatering 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 • (907) 258-3446 • (907) 279-5740 ` ~ • pumping has been shut down for the remainder of the report period. The separator and surge vessel at NB-Ol were drained and blown down. A portable generator was set up on the NB-0 i pad so the buildings at both NB-01 and NB-02 ean remain heated. Water produced during this report period was 63 bbls, and gas produced averaged 1.2 IVICF/D during the period when the well was in operation. The water level in NB-Ol at the end of the report period had risen to 1079 ft below ground level after pumping was stopped. The well remains shut-in while Red Dog works the electrical problem, and evaluates re-start options. Sincerely, r ,.~ ~,, R. C, Gardner For Teck Cominco Alaska Incorporated Cc: Jerry Booth, Teck Cominco Alaska Incorporated E & P SERVICES, INC. October 11, 2007 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 __ _ Anchorage,-AK 9950.1... _ _ __ _ _ _ _. __ Attention: Mr. Tom Maunder, P.E., Petroleum Engineer Re: Weekly Operations Status Report Teck Cominco Alaska Incorporated, Red Dog Shallow Gas Exploration Program. Report Period: September 30-October 6, 2007 Well Nos: NB-Ol (PTD 205-095}, and NB-02 (PTD 205-096) Dear Mr. Maunder: FOR THE PERIOD ENDING SATURDAY, October 6, 2007: Continued with dewatering pumping at NB-02. Water produced during this report period was 2815 bbls. Water level in NB-02 at close of report period was 1044 ft below ground level. Gas produced averaged 1.84 MCF/D during this report period. Equipment operating OK, but not much change in well performance. Continued with dewatering pumping at NB-0l . Well is apparently pumped off. Water produced during this report period was 286 bbls. Water level in NB-Ol at close of report period was 1565 ft below ground level on echo meter reading, but echo meter reading is suspect. Gas produced averaged 1.84 MCF/D during this report period. Since ly, p: r .~~ ~. ,-- ;~ Fes' ~/ R. C. Gardner For Teck Cominco Alaska Incorporated Cc: Jerry Booth, Teck Cominco Alaska Incorporated 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 • (907) 258-3446 • (907) 279-5740 • • October 2, 2007 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 Attention: Mr. Tom Maunder, P.E., Petroleum Engineer Re: Weeldy Operations Status Report Teck Cominco Alaska Incorporated, Red Dog Shallow Gas Exploration Program. Report Period: September 23-29, 2007 Well Nos: NB-01 (PTD 205-095), and NB-02 (~~TD 205-t1) Dear Mr. Maunder: FOR 'THE PERIOD ENDING SATURDAY, SEPTEMBER 29, 2008: Continued with dewatering pumping at NB-02. Water produced during this report period was 2871 bbls. Water level in NB-02 at close of report period was 1091 ft below ground level. Gas produced averaged 1.91 MCFlD during this report period. Equipment operating OK, but not much change in well performance. Continued with dewatering pumping at NB-01. Well is apparently pumped off. Water produced during this report period was 230 bbls. Water level in NB-0l at close of report period was i 915 ft below ground level. Echo meter readings are suspect. Gas produced averaged O.bS MCF/D during this report period. Sincerely, 9 ' ~~~.. C~ ~- ~~ R. C. Gardner For Teck Cominco Alaska Incorporated Cc: Jerry Booth, Teck Cominco Alaska Incorporated 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 ~ {907} 258-3446 • {907) 279-5740 E & P SERVICES, INC. September 25, 2007 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 Attention: Mr. Tom Maunder, P.E., Petroleum Engineer Re: Weekly Operations Status Report Teck Cominco Alaska Incorporated, Red Dog Shallow Gas Exploration Program. Report Period: September 16-22, 2007 Well Nos: NB-O1 (PTD 205-095), and NB-02 (PTD 205-096) Dear Mr. Maunder: FOR THE PERIOD ENDING SATURDAY, SEPTEMBER 22, 2008: Continued with dewatering pumping at NB-02. Increased pump speed in effort to lower water level. Water produced during this report period was 3032 bbis. Water level in NB-OZ at close of report period was 1052 ft below ground level. Gas produced averaged 1.39 MCF/D during this report period. Continued with dewatering pumping at NB-0l . Well is apparently pumped of£ Water produced during this report period was 263 bbls. Water level in NB-Ol at close of report period was 1564 ft below ground level. Echo meter readings are suspect. Gas produced averaged 1.42 MCF/D during this report period. Sincerely, ,,,~~ .... ~.: .~ _.__.. ~,' - ~`" R. C. Gardner For Teck Cominco Alaska Incorporated Cc: Jerry Booth, Teck Cominco Alaska Incorporated 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 • (907) 258-3446 • (907) 279-5740 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 Attention: Mr. Tom Maunder, P.E., Petroleum Engineer Re: Weekly Operations Status Report Teck Cominco Alaska Incorporated, Red Dog Shallow Gas Exploration Program. Report Period: September 9-15, 2007 Well Nos: NB-Ol (PTD 205-095), and NB-02 (PTD 205-096) Dear Mr. Maunder: FOR THE PERIOD ENDING SATURDAY, SEPTEMBER 15, 2008: Continued with dewatering pumping at NB-02. Water produced during this report period was 2281 bbls. Water level in NB-02 at close of report period was 882 ft below ground level. Gas produced averaged 1.37 MCF/D during this report period. Continued with dewatering pumping at NB-O1. Well acts like it is pumped off. Water produced during this report period was 289 bbls. Water level in NB-Ol at close of report period was 1565 ft below ground level. Echo meter readings are suspect. Gas produced averaged 2.4 MCF/D during this report period. Sincerely, ,.~ ~: .y - , R. ~~. Gardner For Teck Cominco Alaska Incorporated Cc: Jerry Booth, Teck Cominco Alaska Incorporated 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 • (907) 258-3446 • (907) 279-5740 • • i ,~, .~ a~JUi .._ _, September 13, 2007 Alaska Oil and Gas Conservation Commission 333 West 7t" Avenue. Suite 100 Anchorage, Alaska 99501 Attention: Mr. Tom Maunder, P.E., Petroleum Engineer Re: Weekly Operations Status Report Teck Cominco Alaska Incorporated, Red Dog Shallow Gas Exploration Program. Report Period: September 2-September 8, 2007 Wells Nos: NB-O1 (PTD 205-095), and N$-02 (PTD 205-096) Dear Mr. Maunder: FOR THE PERIOD ENDING SATURDAY, SEPTEMBER 8, 2007 Continued with dewatering pumping at NB-02. Water produced during report period was 2296 bbls. Water level in NB-02 at close of report period was 846 ft below ground level. Some improvement in rate of drop of water level this report period. Working to continue with dewatering pumping at NB-Ol, but well still experiencing mechanical problems with drive head. Water produced during report period was 258 bbls. Water level in NB-Ol at close of report period was 1869 ft below ground level. Well is close to being pumped off, and is now making between 1 and 3 MCF/D. Since ly, `!' ~:-~'-` R. C. Gardner For Teck Cominco Alaska Incorporated Cc: Jerry Booth, Teck Cominco Alaska Incorporated 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 • (907) 258-3446 • (907) 279-5740 • a~a S} E ~ P SERVICES, (NC. September 5, 2007 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue. Suite 100 Anchorage, Alaska 99501 Attention: Mr. Tom Maunder, P.E., Petroleum Engineer ~. t Re: Weekly Operations Status Report Teck Cominco Alaska Incorporated, Red Dog Shallow Gas Exploration Program. Report Period: August 26-September 1, 2007 Wells Nos: NB-Ol (PTD 205-095), and NB-02 (PTD 205-096) Dear Mr. Maunder: FOR THE PERIOD ENDING SATURDAY, SEPTEMBER 1, 2007 Continued with dewatering pumping at NB-02. Water produced during report period was 2343 bbls. Water level in NB-02 at close of report period was 787 ft below ground level. Water level dropping at an average rate of approximately 10 ft per week. Working to continue with dewatering pumping at NB-O1, but well down for four days at beginning of report period due to mechanical problems with drive head. Resumed pumping on August 30, 2007. Water produced during report period was 300 bbls. Water level in NB-O1 at close of report period was 1869 ft below ground level. Sincerely, ~- -~ ~z ~- R. C. Gardner For Teck Cominco Alaska Incorporated Cc: Jerry Booth, Teck Cominco Alaska Incorporated 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 • (907) 258-3446 • (907) 279-5740 C~ j''~~J ~~~ August 28, 2007 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue. Suite 100 Anchorage, Alaska 99501 Attention: Mr. Tom Maunder, P.E., Petroleum Engineer ?~,l1C ~ ?a07 :~ - Re: Weekly Operations Status Report Teck Cominco Alaska Incorporated, Red Dog Shallow Gas Exploration Program. Report Period: August 19-August 25, 2007 Wells Nos: NB-Ol (PTD 205-095), and NB-02 (PTD 205-096) Dear Mr. Maunder: FOR THE PERIOD ENDING SATURDAY, August 25, 2007 Continued with dewatering pumping at NB-02. Water produced during report period was 2334 bbls. Water level in NB-OZ at close of report period was 771 ft below the surface. Water level dropping, but very slowly. Re-set pump and rods in NB-O1, and resumed dewatering pumping on August 20, 2007. Water produced during report period was 984 bbls. Water level in NB-Ol at close of report period was 1651 ft below the surface. Sincerely, ~~ ~~'" ~~ -; ,. R. C. Gardner For Teck Cominco Alaska Incorporated Cc: Jerry Booth, Teck Cominco Alaska Incorporated 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 • (907) 258-3446 • (907) 279-5740 E & P SERVICES, INC. August 20, 2007 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue. Suite 100 Anchorage, Alaska 99501 .~~ ~~ -~ Attention: Mr. Tom Maunder, P.E., Petroleum Engineer RECEIVED aUG 2 1 2007 Alaska nil $ Gas Cons. Commission Anchorage Re: Weekly Operations Status Report Teck Cominco Alaska Incorporated, Red Dog Shallow Gas Exploration Program. Report Period: August 12-August 18, 2007 Wells Nos: NB-O1 (PTD 205-095), and NB-02 (PTD 205-096) Dear Mr. Maunder: FOR THE PERIOD ENDING SATURDAY, August 18, 2007 Resumed dewater of NB-02 on August 12, 2007. Water production during .~- report period was 158181 bb slsl Water level in NB-02 at close of report period was 744 ft below surface. Ran tubing, pump and rods in NB-O1, but rotor at wrong depth and would not seat in pump. Pulled rods and verified tally. Re-ran rods, but rotor still would not seat. Working on problem at close of report period. Sincerely, ~,... ~~. R. C. Gardner For Teck Cominco Alaska Incorporated Cc: Jerry Booth, Teck Cominco Alaska Incorporated • 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 • (907) 258-3446 • (907) 279-5740 • ~ '~ ~~ ..~>;~ E & P SERVICES, INC. August 15, 2007 Alaska Oil and Gas Conservation Commission 333 West 7t" Avenue. Suite 100 Anchorage, Alaska 99501 Attention: Mr. Tom Maunder, P.E., Petroleum Engineer ~~~~ Re: Weekly Operations Status Report Teck Cominco Alaska Incorporated, Red Dog Shallow Gas Exploration Program. Report Period: August 5-August 1 1, 2007 Wells Nos: NB-Ol (PTD 205-095), and NB-02 (PTD 205-096) Dear Mr. Maunder: FOR THE PERIOD ENDING SATURDAY, August 1 1, 2007 Completed re-running tubing, rods and pump in NB-02. Pump at 2951 ft. Repairing drive head for NB-02 at close of report period. Re-ran tubing, rods and pump in NB-O1. Pump at 2575 ft. Dewatering of both wells anticipated to resume during next report period following arrival of ARI dewatering/pumping engineer. /~ . Sincerely, ~ ~~ n`~,., ~;~''~ ~ R. C. Gardner For Teck Cominco Alaska Incorporated Cc: Jerry Booth, Teck Cominco Alaska Incorporated 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 • (907) 258-3446 • (907) 279-5740 - _ ~. ~9 ~fi_^ ~~~ f h E & P SERVICES, INC. August 11, 2007 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue. Suite 100 Anchorage, Alaska 99501 Attention: Mr. Tom Maunder, P.E., Petroleum Engineer Re: Weekly Operations Status Report Teck Cominco Alaska Incorporated, Red Dog Shallow Gas Exploration Program. Report Period: July 29-August 4, 2007 Wells Nos: NB-O1 (PTD 205-095), and NB-02 (PTD 205-096) Dear Mr. Maunder: FOR THE PERIOD ENDING SATURDAY, August 4, 2007 Pulled rods, tubing and pump on NB-02 for clean-out and installation of new pump. Found 30 ft of sand on bottom. Bailed hole clean. Repairing drive head and re-running tubing in NB-02 at close of report period. NB-01 cleaned out and awaiting re-run of pump when crew and equipment become available. Sincerely, w..... ~,~-~ °- R. C. Gardner For Teck Cominco Alaska Incorporated Cc: Jerry Booth, Teck Cominco Alaska Incorporated 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 • (907) 258-3446 • (907) 279-5740 3.%'~;'7 ~ - '~ .i'~i .y E & P SERVICES, IIVC. July 30, 2007 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue. Suite 100 Anchorage, Alaska 99501 Attention: Mr. Tom Maunder, P.E., Petroleum Engineer .. ;7 Re: Weekly Operations Status Report Teck Cominco Alaska Incorporated, Red Dog Shallow Gas Exploration Program. Report Period: July 22-28, 2007 Wells Nos: NB-01 (PTD 205-095), and NB-02 (PTD 205-096) Dear Mr. Maunder: FOR THE PERIOD ENDING SATURDAY, July 28, 2007 Continued with dewatering operations at NB-02 through July 25, 2007. Shut-in dewatering at NB-02 effective July 26, 2007 at direction of Teck Cominco management due to lack of replacement pumping engineer, and in preparation for pump change. Fluid level at time pumping ceased was 1072 ft. Total NB-02 water production during report period was 1805 bbls (avg. 451 bbls/day). Pulled tubing at NB-O1. Found minimal fill under pump. Still no full time crew for production hoist, so work at NB-0l being done when personnel are available. Will re-run pump, tubing and rods at NB-01 as soon as replacement crews arrive. Sincerely, ~~' _~ ., ~~/' _... R. C. Gardner For Teck Cominco Alaska Incorporated Cc: Jerry Booth, Teck Cominco Alaska Incorporated 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 • (907) 258-3446 • (907) 279-5740 z '~' E & P SERVICES, INC. July 25, 2007 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue. Suite 100 Anchorage, Alaska 99501 ~~- ~ ' ~ r' .- - Attention: Mr. Tom Maunder, P.E., Petroleum Engineer Re: Weekly Operations Status Report Teck Cominco Alaska Incorporated, Red Dog Shallow Gas Exploration Program. Report Period: July 15-21, 2007 Wells Nos: NB-Ol (PTD 205-095), and NB-02 (PTD 205-096) Dear Mr. Maunder: FOR THE PERIOD ENDING SATURDAY, July 21, 2007 Continuing with dewatering operations at NB-02. Fluid level at close of report period was at 1040 feet. Pumping continuous at 24 hrs/day during report period. Total water production for period was 3226 bbls (avg.=461 bbls/day). Small amount of gas observed breaking out of water stream, but volume too small to measure. Well No. NB-Ol remained shut-in during report period due to production hoist being still down awaiting replacement hydraulic power unit, and crew shortage. Will resume work on NB-0I as soon as replacement crews arrive, now estimated at around month-end. Sincerely, . ~l'~ ~. ,;- R. C. Gardner For Teck Cominco Alaska Incorporated Cc: Jerry Booth, Teck Cominco Alaska Incorporated 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 • (907) 258-3446 • (907) 279-5740 July 17, 2007 Alaska Oil and Gas Conservation Commission 333 West 7`t' Avenue. Suite 100 Anchorage, Alaska 99501 Attention: Mr. Tom Maunder, P.E., Petroleum Engineer Re: Weekly Operations Status Report Teck Cominco Alaska Incorporated, Red Dog Shallow Gas Exploration Program. Report Period: July 08-14, 2007 Wells Nos: NB-0l {PTD 205-095), and T[I~02._~ 2~5 Dear Mr. Maunder: -FOR THE PERIOD ENDING SATURDAY, July 14, 2007 Continuing with dewatering operations at NB-02. Fluid level at close of report period was at 1036 feet. Pumping continuous at 24 hrs/day during report period. Total water production. for period was 3455 bbls (avg.=494 bbls/day). Small amount of gas observed breaking out of water stream, but volume too small to measure. Well No. NB-O1 remained shut-in during report period due to production hoist being still down awaiting replacement hydraulic power unit. Sincerely, ., e..-x..._~.__ ~ ~--~ R. C. Gardner For Teck Cominco Alaska Incorporated Cc: Jerry Booth, Teck Cominco Alaska Incorporated 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 • (907j 258-3446 • (907j 279-5740 • E & P SERVICES, INC. RECEfVED JUL 1 0 2007 July 10, 2007 Alaska Oil and Gas Conservation Commission 333 West 7~' Avenue. Suite 1.00 Anchorage, Alaska 99501. Attention: 1VIr. Tom Maunder, P.E., Petroleum Engineer Alaska Oil & Gas Cons. Commission Anchorage Re: Weekly Operations Status Report Teck Cominco Alaska Incorporated, Red Dog Shallow Gas Exploration Program. Report Period: July 01-07, 2007 Wells Nos: NB-01 (PTD 205-095), and NB-02 (PTD 205-096) Dear Mr. Maunder: FOR THE PERIOD ENDING SATURDAY, July 07, 2007 Continuing with de-watering operations and making adjustments to PCP rpm rates to improve drawdown on well No. NB-02. NB-Ol shut-in during report period for clean-out and lowering of pump. Pump hoist lost hydraulic power unit while pulling rods. Waiting on replacement power unit. NB-02 pumping 24 hrs/day during report period. Fluid level at NB-02 at 890 ft at close of report period, with water production averaging 510 bbls/day. Small amount of gas observed breaking out of water stream, but volume too small to measure. Sincer , C. Gardner For Teck Cominco Alaska Incorporated Cc: Jerry Booth, Teck Cominco Alaska Incorporated 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 • (907) 258-3446 • (907) 279-5740 • July 2, 2007 Alaska Oil and Gas Conservation Commission 333 West 7`~ Avenue. Suite 100 Anchorage, Alaska 99501 Attention: Mr. Tom Maunder, P.E., Petroleum Engineer ~~>` 0 ~ 2007 Aiasi~a oi4 & Gas Cogs. G~r~issio~ Anc~ara~a Re: Weekly Operations Status Report Teck Cominco Alaska Incorporated, Red Dog Shallow Gas Exploration Program. Report Period: June 24-30, 2007 Wells Nos: NB-Ol (PTD 205-095), and NB-02 {PTD 205-096) Dear Mr. Maunder: FOR THE PERIOD ENDING SATURDAY, 3une 30, 2007 Continuing with de-watering operations and making adjustments to PCP rpm rates to improve drawdown. Shut-in NB-01 on June 26~' due to alignment problems with drivehead and wellhead. NB-02 pumping 24 hr/day during this report period. Fluid level at close of report period: 652 ft. Water production during report period: NB-Ol : 148.2 bbls; NB-02: 3270.4 bbls. No gas production measured during this report period. Sincer , ,., - -~C-` ~' R. .Gardner For Teck Cominco Alaska Incorporated Cc: Jerry Booth, Teck Cominco Alaska Incorporated 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 • (907) 258-3446 • (907) 279-5740 • E & P SERVICES, INC. June 27, 2007 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue. Suite 100 Anchorage, Alaska 99501 Attention: Mr. Tom Maunder, P.E., Petroleum Engineer ~... ~UL 4 3 2007 #las~ Oil Oas C~~s~ C~mmissi~n ~n~h~r~~ Re: Weekly Operations Status Report Teck Cominco Alaska Incorporated, Red Dog Shallow Gas Exploration Program. Report Period: June 17-23, 2007 Wells Nos: NB-Ol (PTD 205-095), and NB-02 (PTD 205-096) Dear Mr. Maunder: FOR THE PERIOD ENDING SATURDAY, June 23, 2007 Continuing with de-watering operations and making adjustments to surface equipment, which limited pumping operations to 12 hrs per day through June 22, 2007. Pumping 24 hrs per day thereafter. Water production during report period: NB-O1: 551.8 bbls; NB-02: 868.8 bbls. NB-Ol showing significant drawdown with fluid level at end of report period at 1138 ft. NB- 02 not showing much response in fluid level yet. R C. Gardner For Teck Cominco Alaska Incorporated Sincerely, ~~~~ Cc: Jerry Booth, Teck Cominco Alaska Incorporated 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 • (907) 258-3446 • (907) 279-5740 ;~ '_ ~~ E & P SERVICES, INC. June 19, 2007 Alaska Oil and Gas Conservation Commission 333 West 7`~° Avenue. Suite 100 Anchorage, Alaska 99501 Attention: Mr. Tom Maunder, P.E., Petroleum Engineer Re: Weekly Operations Status Report Teck Cominco Alaska Incorporated, Red Dog Shallow Gas Exploration Program. Report Period: June 10-16, 2007 Wells Nos: NB-Ol (PTD 205-095), and NB-02 (PTD 205-096) Dear Mr. Maunder: POR THE PERIOD ENDING SATURDAY, June 16, 2007 Continuing with de-watering operations and making adjustments to surface equipment. Monitored fluid levels in wells daily. No gas production during report period. Sincerely, ~~ll~-----~. R. C. Gardner For Teck Cominco Alaska Incorporated Cc: Jerry Booth, Teck Cominco Alaska Incorporated i • 2000 East 88th Avenue, Suite 200 ~ Anchorage, Alaska 99507 ~ (907) 258-3446 ~ (907) 279-5740 ____ __ - _~, ~____, E ~ P SERU~CE~, I1UC. June 11, 2007 C~ Alaska Oil and Gas Conservation Commission 333 Nest 7`~ Avenue. Suite 100 Anchorage, Alaska 99501 • e _ :~~:~. Attention: Mr. Tom Maunder, P.E., Petroleum Engineer Re: Weekly Operations Status Report Teck Cominco Alaska Incorporated, Red Dog Shallow Gas Exploration Program. Report Period: June 3-9, 2007 Wells Nos: NB-O1 (PTD 205-095), and NB-d2 (PTD 205-096) Dear Mr. Maunder: FOR THE PERIOD ENDING SATURDAY, June 9, 2007 Continuing with de-watering operations and fine-tuning surface equipment. Monitored fluid levels in wells daily. No gas production during report period. Sint ely, '~~ . ~W ~ J R. C. Gardner For Teck Cominco Alaska Incorporated Cc: Jerry Booth, Teck Cominco Alaska Incorporated 2000 East 88th Avenue, Suite 200 ~ Anchorage, Alaska 99507 m (907) 258-3446 ~ (907) 279-5740 __ __ E a P SEl3VlCES, IIVC. June ~, 2007 C~ Alaska Oil and Gas Conservation Commission 333 West 7`t' Avenue. Suite 100 Anchorage, Alaska 99501 Attention: Mr. Tom Maunder, P.E., Petroleum Engineer Re: Weekly Operations Status Report Teck Cominco Alaska Incorporated, Red Dog Shallow Gas Exploration Program. Report Period: May 27-June 2, 2007 Wells Nos: NB-Ol (PTD 205-095), and NB-02 (PTD 205-096) Dear Mr. Maunder: FOR THE PERIOD ENDING SATURDAY, June 2, 2007 Continuing with de-watering operations and fine-tuning surface equipment. No gas production during report period. Since y, s, s G ~- -~®.~-......~-.... .- ,~° =~ R. C. Gardner For Teck Cominco Alaska Incorporated Cc: Jerry Booth, Teck Cominco Alaska Incorporated 2000 East 88th Avenue, Suite 200 ~ Anchorage, Alaska 99507 ~ (907) 258-3446 ~ (907) 279-5740 --~ __ , E a P SERVICES, I~UC. .lone 6, 2®07 Alaska Oil and Gas ConserFration Co 'ssion 333 West 7`~ Avenue. Suite 100 Anchorage, Alaska 99501 • Attention: Mr. Tom Maunder, P.E., Petroleum Engineer Re: Weekly Operations Status Report Teck Cominco Alaska Incorporated, Red Dog Shallow Gas Exploration Program. Report Period: May 20-26, 2007 Wells Nos: NB-Ol (PTD 205-095), and NB-02 (PTD 205-096) Dear Mr. Maunder: FOR THE PERIOD ENDING SATURDAY, MAY 26, 2007 Dewatering crew assembled in Red Dog by Saturday, May 19, 2007. Conducted NSTC and other site-specific training necessary to work at Red Dog. De-winterized surface equipment, and engaged in testing and trouble- shooting same. Bumped downhole pumps to confirm rotation. Re-started de-watering operations on May 24, 2007. Continuing with de-watering operations and fine tuning surface equipment. No gas production during report period. Sincerely, R. C. Gardner For Teck Cominco Alaska Incorporated Cc: Jerry Booth, Teck Cominco Alaska Incorporated 2000 East 88th Avenue, Suite 200 ~ Anchorage, AVaska 99507 ~ (907) 258-3446 ~ (907) 279-5740 R.C. Gardner Sr. Technical Advisor Teck Cominco Alaska Incorporated 3105 Lakeshore Drive, Building "A" Anchorage, AK 99517 Re: Exploration, Wildcat, NB-02 Sundry Number: 307-153 Dear Mr. Gardner: Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. When providing notice for a representative of the Commission to witness any required test, contact the Commission's petroleum field inspector at (907) 659-3607 (pager). As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. A person may not appeal a Commission decision to Superior Court unless rehearing has been requested. Sincerely, ~~~ Dan T. Seamount Commissioner DATED this day of May, 2007 Encl. STATE OF ALASKA ~7 5 `~ j~ ~~~~~~/ED ALA~OIL AND GAS CONSERVATION COM LION APPLICATION FOR SUNDRY APPROVALS''3 MAY Q 2 2007 ~n nnn ~~ gun 1. Type of Request: Abandon ^ Suspend ^ Operational shutdown ^ Perforate ^ ~~8Sk8 Other ^ Alter casing ^ Repair well ^ Plug Perforations ^ Stimulate ^ Time Extensio~ ttrti~eme dewatering ,. Change approved program ^ Pull Tubing ^ Perforate New Pool ^ Re-enter Suspended Welf ^ operations 2. Operator Name: 4. Current Well Class: 5. Permit to Drill Number: Teck Cominco Alaska Incorporated Development ~ Exploratory ^ / 205-096 3 Add . ress: Stratigraphic ^ Service ^ 6. API Number: 3105 Lakeshore Drive, Bldg "A", Anchorage, Alaska 99517 50-073-20003-00 ' 7. It perforating, closest approach in pool(s) opened by this operation to nearest 8. Well Name and Number: property line where ownership or landownership changes: N/A Spacing Exception Required? Yes ^ No ^ NB-02 ~- 9. Property Designation: 10. KB Elevation (ft): , 11. Field/Pool(s): NANA Re Tonal Corporation ~ 911.41 Ex lorato f 12. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): ~ Effective Depth MD (ft) : Effective Depth TVD (ft): Plugs (measured): Junk (measured): 3110 3104 2950 2946 2950-3110 None Casing Length Size MD TVD Burst Collapse Structural Conductor 75' 13 3/8" 75' 75' Surface 480' 8 5/8" 480' 480' 2950 1370 Intermediate Production 3076' 51/2" 3076' 3071' 4810 4040 Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): See attached See attached 2 7/8 6.5#, J-55 P628 Packers and SSSV Type: No packer and no SSSV Packers and SSSV MD (ft): N/A 13. Attachments: Description Summary of Proposal ^V 14. Well Class after proposed work: Detailed Operations Program ® BOP Sketch ^ Exploratory Q ' Development ^ Service ^ 15. Estimated Date for 19-May-07 16. Well Status after proposed work: Commencing Operations: Oil ^ Gas ~ Plugged ^ Abandoned ^ 17. Verbal Approval: Date: WAG ^ GINJ ^ WINJ ^ WDSPL ^ Commission Representative: 18. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Printed Name R.C. Gardner Title Sr. Technical Advisor for Teck Cominco Alaska Incorporated Signature ~* Phone 907-258-3446 Date 27-Apr-07 COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: ~~~ r l Plug Integrity [] BOP Test ^ Mechanical Integri ty Test ^ Location Clearance ^ + Other: ~~>~"'t~~ G't~-~ C ~~G St ~~ ~ C'C~.`t`IOR G'c~'~+~ WG~~ ~~GG:T't~~i~ Subsequent Form Required: ~ •° ~~S ~ ~~~-~~~ \'~C~~~Di ~ ~~ ~~ APPROVED BY ~ /~ / Approved by: COMMIS IONER THE COMMISSION Date: Form 10-403 Revised 06!200 Submit in Duplicate ~ sz-~7 • Teck Cominco Alaska Incorporated Nell No. NB-02 PTD® 205-096 API No. 50-073-20003-00 Attachment to Form 10-403, dated April 27, 2007 Proposal to Resume Operations Perfoi°ation Depths (MD and TVD), Bottom to Top 2920'-2940' 6 jspf 2895'-2915' 6 jspf 2810'-2830' 6 jspf 2750'-2770' 6 jspf 2690'-2710' 6 jspf 2170'-2180' 6 jspf 2125'-2135' 6 jspf 2070'-2080' 6 jspf 2020'-2030' 6 jspf 1900'-1920' 6 jspf 1690'-1710' 6 jspf 1555'-1575' 6 jspf 1210'-1230' 6 jspf 1130'-1150' 6 jspf Teck Cominco Alaska Incorporated Well No. NB=02 PTD: 205-096 API No. 50-073-20003-00 Attachment to Form 10-403, dated Apri127, 2007 Proposal to Resume Operations This Application for Sundry Approvals covering the resumption of dewatering and testing operations is required under the conditions of approval to shut-in the well in October, 2005 (Sundry Number 305-289). Dewatering operations were suspended due to the onset of freezing temperatures at Well No. NB-02 on October 5, 2005. The well was freeze protected before being shut in for the winter season. Dewatering operations did not resume in summer 2006 due to engineering and construction delays in completing the installation ofall-season water handling facilities. This proposal describes plans to resume dewatering and production testing operations on or about May 19, 2007. The work includes start-up of the aforementioned water handling facilities, and bringing the well back on line as per the attached start-up procedure. Gas and water production, and annulus pressure will be continuously ~' recorded, and reported to the AOGCC monthly. Fluid levels will be checked at frequent intervals. Absent mechanical problems, it is planned that the well will be kept pumped off, and a flow test continued for up to one year, which is a reasonable dewatering/test period for shale gas wells. • WELL PRODUCTION STARTUP AND OPERATION-WELL No. NB-02 1. Inform the mill operator that the North Basin wells are to be powered up. 2. Go through North Basin facilities, ensure all switches and breakers are turned to the off position. 3. Solicit the Mine Electrical group to provide an Electrician to inspect the main disconnect for the North Basin power distribution system and insure that power is available at the main disconnect. 4. Throw main breaker to Gas-Ex 5 KV power line 5. Power heat trace on Mainline Segment #1 and the automation controls and all transformers at each segment and on the well locations. Confirm heat trace and communications are on at mine sump. 6. Ready the surge vessel for start up, set electric ball valve to manual. 7. NB-O1 & NB-02 well houses, confirm the Moyno Pump manual switch is off. Throw breakers to power control panel and heat trace, transfer pumps, heating, and lighting. 8. Tour the North Basin facilities to verify: A. Lighting operates properly B. Check heatingloperating/up to temperature C. Check RTUs/operating/communicating D. Verify communication with the Mill Control Room 9. Set valves at wellheads to flow into the separators and open the two inch ball valve off top of separator to the gas vent. 10. Switch the NB-01 and NB-02 drive head manual switches to on. Insure the drive head turning rods properly. Bump the down hole pump, start and immediately stop the pump, check for sticking. Then fill separator with w~cter. ~~ i 1. Insure the 2-inch ball. valve is open, set the electric ball valve manual open. Bump the Ebara transfer pump, verify proper turn and operation, then set the pump switch to auta. Close the two inch electric ball valve and set to Auto. 12. Start the pumps at 250 rpm for 5 minutes, monitor for sticking. Reduce to 150 ipm after 2-hours. 13. Verify fluid to surface and monitor the pumps closely for the first 2~ hours foi° solids production, sticking, and water production. Watch the returns through the cleai° nipple at the separator inlet. • i ~~EIVED E & P SERVICES, Iruc. MAY 0 2 2007 Alaska Oii ~ Gas Cans. Commission Apri127, 2007 Anchorage Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 Attention: Tom Maunder, P.E., Petroleum Engineer Re: Request for Sundry Approval (Form 10-403) Resume Dewatering Operations Teck Cominco Alaska Incorporated (Teck Cominco) Well No. NB-02, PTD No. 205-096 Dear Mr. Maunder: The above referenced shale gas exploration well has been shut-in since October 5, 2005 due to a lack of water handling facilities that are necessary for long-term dewatering and production testing. The shut-in was authorized under Sundry Number 305-289. In May 2006 Teck Cominco requested a Sundry Approval to re-start the dewatering process. The approval was granted by the Commission under Sundry Number 306-175. This resumption of dewatering never occurred due to engineering and -'" construction delays in finalizing the installation of the aforementioned water handling facilities; and the well remained shut-in during 2006. Subsequent to receiving the 306-175 approval, the operator elected to defer start-up until a prolonged (possibly up to one year) dewatering effort could be sustained, It made little sense to dewater only for the summer, and then shut-in the well again for the winter, as what little dewatering progress was made during the short summer season would only be lost, and the whole process would have to begin again in 2007. - Dewatering is now scheduled to resume in late May 2007, as facilities to handle the water are nearing completion. The attached Request for Sundry Approval reflects this start-up. Once started, it is anticipated that dewatering 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 • (907) 258-3446 • (907) 279-5740 r~G • • and production testing will continue for up to one year in order to adequately evaluate the potential commerciality of the Red Dog Shale Gas Prospect. Should you have any questions on this Request for Sundry Approval, please contact the undersigned at 907-258-3446, or by e-mail at bob(a7 fairweather. com. Thank you for your consideration of this request. Sincerely, _~-__ R. C. Gardner For Teck Cominco Alaska Incorporated Attachments Cc: Jerry Booth, Teck Cominco Alaska Incorporated ~~I V E~ ~faska Ali! ~ Gas Cons. Commission E & P SERVICES, LLC Anchorage March 15, 2007 Cath P. Foerster ~~ ~~ r O y Commissioner Alaska Oil and Gas Conservation Commission 333 West 7"' Avenue, Suite 100 Anchorage, AK 99501-3539 Re: Resumption of De-watering Operations, Teck Cominco Alaska, Red Dog Shallow Gas Exploration Wells. Dear Ms. Foerster: During our meeting in early February, 2007, re improving communications between Teck Cominco Alaska and the AOGCC, the subject of when de-watering operations would be resumed at the Red Dog Shallow Gas Exploration Program wells was raised. I believe I told you that we expected this to be in mid to late March, 2007. Weather and other factors have made it impossible to adhere to this schedule, and we now anticipate resuming de-watering operations in mid to late April, 2007. I was concerned that, based on my earlier comments, the Commission would be looking for production reports for March, 2007 during the coming weeks. It appears that the best we can hope for is the April, 2007 start-up. Sincerely, rt ~• r ~/ R. C. Gardner For Teck Cominco Alaska Incorporated Cc: Dave Roby, AOGCC Jerry Booth, Teck Cominco Alaska Incorporated 2000 East 88th Avenue • Anchorage, Alaska 99507 • (907) 258-3446 • (907) 279-5740 E & P SERVICES, LLC January 25, 2007 Cathy P. Foerster Commissioner Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501-3539 '~+ ~" ~\ i J n ~.i ~ ~; J[11J~ Re: Reporting Practices, Teck Cominco Alaska Incorporated, Red Dog Shale Gas Exploration Wells, Nos. NB-O1, (PTD 205-095); NB-02, (PTD 205-096); NB-03, (PTD 206-090); NB-04, (PTD 206-091); and NB-O5, PTD 206-097). Dear Ms. Foerster: Thank you for your letter of January 8, 2007 concerning reporting issues involving the above referenced wells. Hopefully the following paragraphs will satisfactorily address your concerns, and the attachments hereto will fill in the data gaps in Commission files. Perhaps the best way for me to respond to your concerns is to address the points that you have raised in the same order, and using the same paragraph numbers that were used in your January 8th letter. Weekly status reports for wells Number NB-03 and NB-04 were mailed to the Commission while operations were underway on these wells, and I have attached copies for Commission files. In addition, detailed well histories in day-to-day format were included in the Completion Reports for both of these wells. I have attached copies of these histories, as well. As a point of clarification, please advise if we are to submit weekly status reports for the periods when there are no well site operations in progress. I have always assumed that these reports were only required when drilling, completion, or related operations were being done. If this is not the case, I owe you a lot of reports for periods when the wells were idle. In the case of wells Nos. NB-O1 and NB-02, the wells have been idle since 2005, with the exception of the minimal stimulation work discussed in Paragraph 4, below. 2. As previously reported to the Commission, the Completion Reports for NB-O1 and NB-02 were delayed due to the lack of as-built surveys being available from Red Dog. According to information conveyed from Mr. Dave Roby of your office in a recent telephone conversation, we should have submitted the components of the completion reports that we had, and taken our lumps over the missing surveys rather than waiting until we had the complete packages 2000 East 88th Avenue • Anchorage, Alaska 99507 • (907) 258-3446 • (907) 279-5740 y~ _~ i assembled. We have already received a letter from Commissioner Norman chastising us for the late reports, and I do get the message! No more delayed reports! In the case of NB-fl3 there was unclear communication with the Commission about what reports were required by the condition in which the well was left at the end of the 2006 season, and which was covered in my letter of January 18, 2007. 3. Wells Nos. NB-O1 and NB-02 were not produced or de-watered during the 2006 season, and since the wells were idle, no production reports were filed. Water handling facilities were designed, and installation started during the 2006 season, but no attempts were made to produce or test the wells. De-watering requires a sustained effort, and anything less serves no purpose in evaluating the wells. The initial dewatering efforts in 2005 were for the most part inconclusive, albeit encouraging, as the wells could not be satisfactorily de-watered to develop meaningful production evaluation data. When the wells were freeze protected and shut-in at the end of the 2005 summer season, they quickly refilled with water, and the de-watering process will have to start again from scratch. During the 2005 season dewatering operations, production reports were submitted to the Commission. When the wells were shut-in, I asked Steve Davies of your office if we needed to continue to file these reports while the wells were idle, but show zero production. I was told that we did not need to file the reports during this period, but to be sure to recommence reporting when de-watering and testing resumed. At that time I believe we anticipated that this would be in 2006. Mr. Roby indicates that there is some information in the files to this effect, and that we should have informed the Commission of our change in plans. In hindsight, I believe that he is correct, but I frankly did not recall that we had anything on file committing us to a resumption of testing in 2006. Nevertheless, I think the main issue here is that we have no production to report for 2006. 4. The requested Form 10-404 is attached. In recent months the oil and gas media has published several articles on the Red Dog shale gas exploration effort. In my view, these articles have served to "over hype" the program in the eyes of those who are not intimately acquainted with it. The articles seem to be based on information taken from various technical presentations, and from attachments to a Unit Agreement which was negotiated with DNR covering some shallow gas State leases which adjoin the NANA lands on which the current project is located. There is really no way to counter some of these misconceptions, but they do have the potential for making people believe that the program is farther along than it is. In order to better inform the Commission about the current status of the program, and our plans for the 2007 summer season, Mr. Jerry Booth, Teck Cominco Project Manager, and I would welcome an opportunity to meet with the Commissions and any of your staff that you wish to involve, and basically tell you where we are on this project, and to re-affirm our pledge to improve our reporting practices. We are suggesting Thursday afternoon, February 8, 2007 for this meeting, as Mr. Booth will be in Anchorage on that date. ,~ • Teck Cominco Alaska Incorporated and Fairweather E & P Services, Inc. are committed to improving the communication between our companies and the AOGCC, and to eliminating any future shortfalls in proving your agency with the information you require in a timely manner. We believe that the suggested face-to-face meeting would be beneficial to these objectives, and to clearing up any misconceptions the Commission may have about progress that the Red Dog exploration program has made in evaluating this unconventional source of energy for the Red Dog Mine, and perhaps the surrounding area. Sincerely, ,.~: ,r -,~ - .< R.C. Gardner For Teck Cominco Alaska Incorporated Attachments Cc: Dave Roby, AOGCC Jerry Booth, Teck Cominco Alaska Incorporated SARAH PALIN, GOVERNOR 333 W. 7th AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 January 8, 2007 Mr. Robert Gardner Sr. Technical Advisor for Teck Cominco Alaska Incorporated 3105 Lakeshore Dr., Bldg. A, Ste. 101 Anchorage, AK 99517 Subject: Shortfalls in Reporting Practices Related to Exploratory Shale Gas Wells NB-O1 (PTD 205-095) NB-02 (PTD 205-096) NB-03 (PTD 206-090) NB-04 (PTD 206-091) NB-OS (PTD 206-097) Dear Mr. Gardner: The Alaska Oil and Gas Conservation Commission ("Commission") wishes to bring to your attention that, to date, Teck Cominco Alaska Incorporated ("Teck Cominco") has either failed to comply with Commission reporting requirements or been seriously late in providing reports related to this exploratory shale gas program. 1) The Commission issued a drilling permit for each of the five wells in this project, and each of those permits requires a weekly status report for the well from spud until suspension or plugging and abandonment. These reports were submitted for wells NB-O1 and NB-02 during the 2005 drilling season, but no weekly status reports were submitted for activities during 2006. Please provide the missing weekly reports or a summary of that information to the Commission no later than close of business Friday, February 2, 2007. 2) Records indicate that wells NB-Ol and NB-02 were completed on September 10, 2005. Commission regulation 20 AAC 25.070(3) requires submittal of a completion report and logs within 30 days of the completion of a well, but Teck Cominco was over 5 months late submitting this information to the Commission. A similar but shorter delay was experienced with well NB-03. 3) It is presumed, but cannot be confirmed due to the lack of weekly status reports, that attempts to produce the NB-O1 and NB-02 wells resumed as planned this • Mr. Robert Gardner January 8, 2007 Page 2 of 2 year. As required by 20 AAC 25.230 the Commission should have received monthly production reports, presuming an attempt was made to produce the wells}, but has not received reports since the September 2005 production was reported. A November 8, 2006, email from you to Mr. Tom Maunder with the Commission indicated that the wells were currently shut-in but did not indicate the status of the wells over the summer months. If there was production from either of these wells, please provide the production reports to the Commission no later than close of business Friday, February 2, 2007. 4) On August 28, 2006, the Commission approved Sundry Application 306-292, allowing perforation and stimulation of additional zones within well NB-O1. The application indicated that operations were imminent, but the Commission has not received the required Form 10-404 or any other documents to indicate whether or not these operations have occurred. Please provide the Form 10-404 (or a status report if the workover operations were not completed) to the Commission no later than close of business Friday, February 2, 2007. Proper and timely reporting is required by Commission regulations. If reporting practices do not comply, the Commission will consider taking enforcement action in accordance with 20 AAC 25.535. If you have any questions on this matter please contact Mr. Dave Roby of the Commission's staff at (907) 793-1232. Sincerely, ~,.~ Cathy, Foerster Commissioner ~a~~i~~ U~ ° ~L~I~~~W I~EPTo OF ENVIRONMENTAL CONSERVATION DIVISION OF SPILL PREVENTION AND RESPONSE Iv'DUSTRY PREPAREDNESS PROGRAM EXPLORATION PRODUCTION & REFINERIES NIr. Robert Gardner FRANK H. MURKOWSKI, GOVERNOR 555 Cordova Street Anchorage, AK 99501 PHONE: (907) 269-3072 FAX: (907) 269-7687 http://www.dec.state.ak. us __. ~ _ ' November 17, 2006 File No: 305.0 Red Dog Shallow Gas 1 all vii. piiiir Ei3i.i v..., r . , ~l lam. r ~C.:~ T 2000 East 88`h Avenue Anchorage, AK 99507 Subject: Exemption from Oil Discharge Prevention and Contingency Plan Requirement for Red Dog Shallow Gas Exploration Drilling Program, DeLong Mountains, Alaska Dear Mr. Gardner: The Alaska Department of Environmental Conservation (ADEC} has received a determination from the Alaska Oil and Gas Conservation Commission (AOGCC} regarding your request for an exemption from the Oii Discharge Prevention and Contingency Pian (ODPCr) and Financial Responsibility (FR) requirements. The exemption was requested for the Red Dog Shallow Gas Exploration Drilling Program ("Red Dog Program"} conducted in the DeLong Mountains of northwestern Alaska. AOGCC made its determination based on geologic information submitted by Fairweather and a review Of AOGCC well files. The Red DOg Program is 1n0atPd in cPOtinn.c 17 and 1 R of T~1N _.'_"tit' , [=_;`.:.il ~:ver ~/7e;-ir~,l;µr _n*_!,r~ l7PT Or j ~TO~_l.??taiP.S. The DT'Ogram Cp17S1StS Of S S11aIlOw wells (all less than 4,000' below ground level) on NANA Corporation lands approximately 1.5 miles north of the Red Dog Mine. Sixty mineral exploration holes have been drilled into the Kuria formation, the target of the Red Dog Program. Four shallow gas wells have 'oeen drilled within the project area. Fairweather has reported that no significant hydrocarbons other than methane were encountered in any of these mineral or gas exploration holes. AOGCC staff concurs that no liquid hydrocarbons or hydrocarbon gases other than methane were encountered based on a careful review of drilling records from the shallow gas exploration holes. On October 6, 2006, AOGCC determined that exploration wells drilled to less than 4,000' depth within the Red Dog Shallow Gas Exploration Drilling Program area are highly unlikely to encounter formations bearing liquid hydrocarbons or hydrocarbon gases other than met'nane. ~~ ~1r. Robert Gardner Fairweather November 17, 2006 Based upon A®GCC's eealuateon and determination, AI)EC hereby finds that a well drilled within the Red I)og Shallow has Exploration Drilling Program to depths less than 4,000' will not encounter liquid hydrocarbons and therefore meets the standards for exemption as a natural gas exploration facility under AS 46.04.050(c) and is exempt from tJDPCP and F'R requirements found in ~S =~~.040.030 and ~S 46.040.040, Be advised that should Fairweather/Teck Cominco penetrate a formation capable of flowing oil to the ground surface during the drilling of this well, operations must immediately be suspended and ADEC must be immediately notified. You must obtain ODPCP and FR approval by :4DEC prior to proceeding. This exemption does not relieve Fairweather/Teck Cominco of the responsibility for securing other federal, state or local approvals or permits. You are still required to comply with all other applicable laws. APPEAL: This is a final decision. Aggrieved persons with standing may appeal this decision to the Alaska Superior Court within 30 days as provided by the Alaska Rules of Appellate Procedure. If you have env questions, please contact me at 269-7680. Sincerely. ~~~~'~ Ly is Miner Section Manager cc: Betty Schorr, IPP Manager, ADEC Daniel Seamount, AOGCC Chris Pace, ADEC, Juneau ~,%alter Porter, Northwest Arctic Borough Planning Director aos =v96 ;~ ~ ~ i 1 1 I ~ t' . .i 'u ~ ~ a ~ J 4 ~ 7i ~ q . 1 ALASSA OIL A1~TD (><A$ COI~TSERQATI011T C011II-iISSIOIQ R.C. Gardner Sr. Technical Advisor Teck Cominco Alaska Incorporated 3105 Lakeshore Dr., Bldg A Anchorage, AK 99517 Re: Exploratory, Exploratory, NB-02 Sundry Number: 306-175 Dear Mr. Gardner: j/ FRANK H. MURKOWSKI, GOVERNOR ~~ v s 333 W. 7"" AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 ~~ PHONE (907) 279.1433 FAX (907) 276-7542 Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. When providing notice for a representative of the Commission to witness any required test, contact the Commission's petroleum field inspector at (907) 659-3607 (pager). As provided in AS 31.05.080, within 20 days after written notice of .this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. A person may not appeal a Commission decision to Superior Court unless rehearing has been requested. Sincerely, DATED this,~day of May, 2006 Encl. Cathy P. Foerster Commissioner aos = 0 9b w STATE OF ALASKA ~ S~~Z ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVAL~I -. 2O AAC 25 2A~ ~ :. .; 1. Type of Request: Abandon Suspend Operational shutdown Perforate Waiver Other Alter casing ^ Repair well ^ Plug Perforations ^ Stimulate ^ Time Extension ^ Re sums Change approved program^ Pull Tubing^ Perforate New Pool ^ Re-enter Suspended Well ^ Operations 2. Operator Name: 4. Current Well Class: 5. Permit to Drill Number: Teck Caminco Alaska Incor orated Development ^ Exploratory ~] ~ 205-096 3. Address: 3105 Lakeshore Dr . , Bldg A Stratigraphic ^ Service ^ 6. API Number: Anchorage, AK 99517 50-073-20003-00 7. KB Elevation (ft): 9. Well Name and Number: 911.41 NB-02 8. Property Designation: 10. Field/Pools(s): NANA Regional Corporation Exploratory ' 11. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD (ft): Effective Depth TVD (ft): Plugs (measured): Junk (measured): 3110 3104 2950 2946 2950-3110 None Casing Length Size MD TVD Burst Collapse Structural Conductor 75 13 3/8 75 75 Surface 480 8 5/8 480 480 2950 1370 Intermediate Production 3076 5 1/2 3076 3071 4810 4040 Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): See Attached See Attac hed 2 3/8" 4.79, J-55 2628 Packers and SSSV Type: Packers and SSSV MD (ft): None None 12. Attachments: Description Summary of Proposal 13. Well Class after proposed work: Detailed Operations Program ^ BOP Sketch ^ Exploratory ® Development ^ Service ^ 14. Estimated Date for 15. Well Status after proposed work: Commencing Operations: June 12, 2006 Oil ^ Gas ® Plugged ^ Abandoned ^ 16. Verbal Approval: Date: WAG ^ GINJ ^ WINJ ^ WDSPL ^ Commission Representative: 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact R. C . Gardner Printed Name R.C. Gard r 258-3446 Title Sr. Technical Advisor Signature ~ Phone Date May 11, 2006 + COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: .-' Plug Integrity ^ BOP Test ^ Location Clearance ^ Mechanical Integrity Test ^ Other. i p `'"~~~? 14?~~.. ~;L~Y ~~ ~ ~()~~ C~'~ G ~ ~ `~~~~~ ~ Subsequent Form Required: ~ ~ iG ~ ` T APPROVED BY Approved by: COMMISSIONER THE COMMISSION Date: / . ~[. -~i~ S. /Z •0~ Form 10-403 Revised 07/2005 ~ f ~ ~ ~ 1 n ~ Subm' ' D~,~~ • • TECK COMINCO ALASKA INCORPORATED WELL No. NB-02 PTD: 205-096 Attachment to Form 10-403, dated May 11, 2006 PERFORATION DEPTHS This well was fraced in 4 stages, with the perforations grouped as follows: Stage I: 2690' - 2710'; 2750' - 2770'; 2810' - 2830'; 2895' - 2915'; 2920' - 2940'; 6 jspf Stage II: 1900' -1920'; 2020' - 2030'; 2070' 2080'; 2125' - 2135'; 2170' - 2180'; 6 jspf Stage III: 1555' - 1575'; 1690' - 1710'; 6 jspf Stage IV: 1130' - 1150'; 1210' - 1230'; 6 jspf ~. • TECK COMINCO ALASKA INCORPORATED WELL No. NB-02 PTD: 205-096 Attachment to Form 10-403, dated May 11, 2006 Proposal to Resume Operations 0~ b'~a This Application for Sundry Approvals covering the resumption of operations ~ required by the conditions of approval to shut-in the well in October 2005 (Sundry Number 305- 289). De-watering operations were suspended at Well No. NB-02 on October 5, 2005 due to the onset of freezing temperatures. The well was freeze protected, and shut-in for the winter season. This proposal describes plans to resume dewatering and production testing operations on or about June 12, 2006. The work includes re-activation of surface facilities, re-running the pump and rods, and bringing the well back on line. Gas. and water production, and annulus pressure will be continuously recorded, and reported to the AOGCC monthly. Absent mechanical problems it is planned that the well will kept pumped off, and the flow test continued for most of the summer, at a minimum. Fluid levels will be checked at frequent intervals. I May 1, 2006 Alaska Oil and Gas Conservation Commission 333 West 7`" Avenue, Suite 100 Anchorage, Alaska 99501 Attention: Steve Davies, Petroleum Geologist Re: Status Report, Teck Cominco Alaska Incorporated Period of September 25-October 5, 2005, and Form 10-405 for September, 2005 Wells Nos. NB-O1 and NB-02. Dear Mr. Davies: Per your recent request, please find the above referenced reports. The production report covers all of the gas and water production from both wells during the brief Late-summer, 2005 test period. I have requested a clean as-built survey plat for the Teck Cominco GIS Department. I will send it to you under separate cover as soon as I receive it. Sincerel ,,~ , ._ ~'~ R. C. Gardner Fairweather E & P Services, Inc. For Teck Cominco Alaska Incorporated Attachment Cc: Jerry Booth, Teck Cominco 2000 East 88th Avenue • Anchorage, Alaska 99507 • (907) 258-3446 • FAX (907) 279-5740 650 North Sam Houston Parkway East, Suite 505 • Houston, Texas 77060 ^ (281) 445-5711 • FAX {281) 445-3388 • Weekly Status Report Teck Cominco Alaska Incorporated Red Dog Shallow Gas Exploration Project Wells Nos. NB-01 and NB-02 Period of September 25-October 5, 2005 Well No. NB-Ol PTD ZOS-095 Report Period 0001 hrs September 25 to 2400 hrs October 5, 2005 Continued to de-water well and assess gas production potential. Pumped well off on September 26~'. Onset of freezing temperatures forced suspension of testing and de- watering operations. Freeze-protected well on September 30, 2005. Drained and winterized surface facilities. All wellsite operations suspended for winter on October 5, 2005. Final weekly report for the season. Test results to date to be submitted with Completion Report. Well No. NB-02 PTD 205-096 Report Period 0001 hrs September 25 to 2400 hrs October 5, 2005 Continued to attempt to de-water well. Water being produced at up to 149% of pump capacity due to gas influx. Gas bubbles observed in produced water tank. Unable to lower fluid level below approximately 400 ft. Insufficient time remaining before freeze-up to change pump. Onset of freezing temperatures forced suspension of testing and de-watering operations. Freeze protected well on September 30, 2005. Drained and winterized surface facilities. All wellsite operations suspended for winter on October 5, 2005. Final report for the season. Report S mitte y: ,- ~ .~ - R. C. Gardner Fairweather E & P Services, Inc. STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION MONTHLY PRODUCTION REPORT 20 AAC 25.230 Name of Operator: Teck Cominco Alaska Incorporated 1. Well No. 2. API No. 3. Type 50-XXX-XXXXX-XX-XX (see instruct.) Field and Pool: Month and Year: Exploratory Sep-05 4. Field & 5. Method 6. Days in Oper. 7. Avg. FTP DAILY AVG. PRODUCTION TOTAL MONTHLY PRODUCTION Pool Code (see psig (see 8. OIL 9. WATER 10. GAS 11. OIL 12. WATER 13. GAS instruct.) instruct.) (BBL) (BBL) (MCF) (BBL) (BBL) (MCF) NB-01 50-073-20002-00 2 3 17 28 0 47.64 2 0 762 2 27 3 NB-02 50-073-20003-00 2? 3 17 0 0 120.76 0 0 2053 0 Note: The gas and water prod uction sho wn above oc curred during the de-watering ph ase of testing. Th e gas was vent ed. These production figures refle ct the only production f rom these we lls before they were freeze protected and shut-in for t he 2005-2006 winter s so ea n. I hereby certify that the foregoing is true and correct to the best of my knowledge . 14 Printed Name: R.C. Gardner Title: Sr. Tech Adv for Teck Cominco Alaska Inc 1~,,,,., Signature: - Date: 1-Ma -06 TOTAL 0 2815.2 27 3 s Form 10-405 Rev. 0412006 INSTRUCTIONS ON REVERSE SIDE Submit in Duplicate i ~ ~~ ~ NB-02 Conformance to AS 31.05.030 (j) (j) For exploration and development operations involving nonconventional gas, the commission NB-02 is a shale-gas (nonconventional gas) exploration well. (1) may not (A) issue a permit to drill under this chapter if the well would be used to produce gas from an aquifer that serves as a source of water for human consumption or agricultural purposes unless the commission determines that the well will not adversely affect the aquifer as a source of water for human consumption or agricultural purposes; or The NB-02 well is located on private property (NANA Corporation lands) on the side of a hill, 1-1/2 miles north of the Red Dog Mine. This area has been extensively drilled for mineral exploration purposes to similar depths. The Red Dog Mine obtains water for industrial and doa¢estie use from the Bons Creek Reservoir, which is located in a separate drainage basin about 5 miles away. The nearest native villages are Noatak, located over 40 miles away, and Kivalina, located about 60 miles away. NB-02 is located on a 7 percent grade hillside, 150 feet above and 2,250 feet away from a 50-foot wide creek that meanders through a 400-foot-wide valley. The location of this well and the abundant surface water nearby make it highly unlikely that any potential aquifers affected by the well will ever be used to provide water for human consumption or agricultural purposes. (B) allow injection of produced water except at depths below known sources of water for human consumption or agricultural purposes; Wastewater is not injected. Any wastewater from drilling operations, fracturing and production testing is disposed in the Red Dog Mine tailings pond. The operator reports that EPA granted approval for this disposal by letter dated October 27, 2004. (2) shall (A) regulate hydraulic fracturing in nonconventional gas wells to assure protection of drinking water quality; 8-5/8" surface casing was set at 480 feet and cemented to surface. The well was then drilled to a total depth of 3110 feet, $-1/2° casing was run to 3076 feet, and the casing was cemented. Cement returns were not observed at the surface. Later, a CBL indicated good cement bond through and above all zones of interest. The CBL indicated that the top of cement is located at 420 feet. On August 26, 200, the Commission approved perforating and fracturing operations. Four intervals were perforated and fractured: 2940 to 2710 feet, 2180 to 1900 feet, 1710 to 1555 feet, and 1230 to 1130 feet. • • These operations did not and will not affect drinking water quality because: the site is remotely located; the shallowest perforation lies 1130 feet below the ground surface; the well has been cased and adequately cemented from TD to surface; and the well is located 2,250 feet from the nearest stream. (B) regulate the disposal of wastes produced from the operations unless the disposal is otherwise subject to regulation by the Department of Environmental Conservation or the United States Environmental Protection Agency; Wastewater from drilling operations, fracturing and production testing was disposed in the Red Dog Mine tailings pond. The EPA reportedly granted approval for this disposal by letter dated October 27, 2009. (C) [Repealed, Sec. 6 ch 79 SLA 2005]. (D) as a condition of approval of a permit to drill a well for production or production testing of coal bed methane, require the operator to design and implement a water well testing program to provide baseline data on water quality and quantity; the commission shall make the results of the water well testing program available to the public. Not applicable to this shale-gas exploration well. Steve Davies AOGCC Novem er 28, 2005 [Fwd: NB-O1 and NB-02 As-Built Plats] • • Subject: [Fwd: NB-O1 and NB-02 As-Built Plats] From: Stephen Davies <steve davies@admin.state.ak.us> Date: Fri, 28 Apr 2006 15:15:00 -0800 To: bob@fairweather.com Bob, One other thing: the latest summary of operations in the Commission files for these wells covers the period from Sept. 18-24, 2005. I have no way of verifying the shut-in date of Oct. 5, 2005. Could you please provide operations summary reports from Sept. 25 on? Thanks, Steve Davies ------- Original Message -------- Subject:NB-01 and NB-02 As-Built Plats Date:Fri, 28 Apr 2006 14:38:45 -0800 From:Stephen Davies <steve davies(u admin.state.ak.us> Organization:State of Alaska To:Bob Gardner <bob!a~fairweather.com> Bob, Could you please have someone on your staff provide two original copies of the as-built survey plat for the NB-O1 and NB-02 wells? The fine print on the plats accompanying the completion reports is not legible. Please note also that any production from these wells (including water produced during the de-watering phase) must be reported to the Commission on a monthly basis using Form 10-405 (regulation 20 AAC 25.230). Commission forms are available on the Internet at http:/jwww.aogcc.aaska.govjforms/formsindex.htm. Thanks for your help, Steve Davies AOGCC 793-1224 1 of 1 5!15/2006 12:46 PM ~ • ~~ ~,-~ ' v.~. d'; E ~ P SERVICES, I~IC. Apri126, 2006 Alaska Oil and Gas Conservation Commission 333 7th Avenue, Suite 100 Anchorage, AK 99501 Attention: Mr. Tom Maunder, P.E. RE: Well Completion Reports (Form 10-407) far Teck Cominco Alaska Incorporated Wells Nos. NB-Ol and NB-02 Dear Mr. Maunder: Please find enclosed the long awaited completion reports and logs for the above referenced wells. It has taken longer than anticipated to get the data products assembled, and I regret any inconvenience this has caused. Thank you for your patience. Sincere , ,~ _ R. .Gardner Sr. Technical Advisor for Teck Cominco Alaska Incorporated Enclosures 2000 East 88th Avenue • Anchorage, Alaska 99507 • (907) 258-3446 • FAX (907) 279-5740 650 North Sam Houston Parkway East, Suite 505 • Houston, Texas 77060 • (281) 445-5711 • FAX (281) 445-3388 I a05 _~~~ STATE OF ALASKA ALASK.. LAND GAS CONSERVATION COMMIS WELL COMPLETION OR RECOMPLETION REPORT AND LOG 1a. Well Status: Oil . t~ ~ Plugged Abandoned^ "' IV ~ 20AAC 25.105 GINJ^ WINJ^ WDSPL^ No. of Completions Suspended WAG 2oAac zs.~ ~ o OtherSl ~~ 1b. Well Class: evelopment ^ Exploratory Q ervice ^ StratigraphicTest^ 2. Operator Name: Teck Cominco Alaska Incorporated 5. Date Cowm~pO, S sp/bores / Aba~.: I - ~I 90/05/05 12. Permit to Drill Number: 205-096 3. Address: 3105 Lakeshore Dr., Bidg 'A', Anchorage, AK 99517 6. Date Spudded: August 7, 2005 13. API Number: 50-073-20003-00 4a. Location of Well (Governmental Section): Surface: '254.36ftFWL,2923.27ftFSL,SEC17,T.31N.,R.18W.,KRM ' 7. Date TD Reached: Aug. 18, 2005 14. Well Name and Number: NB-02 Top of Productive Horizon: As Above 8. KB Elevation (ft): 911.41 15. Field/Pool(sj: Exploratory Total Depth: As Above 9. Plug Back Depth(MD+TVD): ' 2950' MD, 2946' TVD 4b. Location of Well (State Base Plane Coordinates): Surface: x- 583,596.34 ' y- 5,150,118.16 Zone- 7 10. Total Depth (MD + TVD): - 3110 MD, 3104 TVD ~ 16. Property Designatian: NANA Regiortiaf Car oratloh ;,•k TPI: x- As Above y- As Above Zone- 7 Total Depth: x- As Above y- As Above Zone- 7 11. Depth Where SSSV Set: N/A 17. Land Use Permit: - NANA LOA 18. Directional Survey: Yes No ~ 19. Water Depth, if Offshore: N/A feet MSL 20. Thickness of Permafrost: 640ft 21. Logs Run: Triple Combo, cased hole neutron, CBL 22. CASING, LINER AND CEMENTING RECORD CASING WT. PER GRADE SETTING DEPTH MD SETTING DEPTH TVD HOLE SIZE CEMENTING RECORD AMOUNT FT TOP BOTTOM TOP BOTTOM PULLED 13 3/8 54.5 K-55 Surface 75' Surface 75' 18" 25 SXS Permafrost None 8 5/8 24 K-55 Surface 480' Surface 480' 12 1/4" 400 SXS Permafrost None 5 1/2 15.5 J-55 Surface 3076 Surface 3071' 7 7/8" 146 SXS Permafrost + 295 SXS type 1. None 23. Perforations open to Production (MD + TVD of Top and Bottom 24. TUBING RECORD Interval, Size and Number; if none, state "none"): SIZE DEPTH SET (MD) PACKER SET (MD) Stage I: 2690'-2710',2750'-2770',2810'-2830, 2 3/8" 2628' None 2895'-2915', 2920'-2940'. 6jspf. ' ' ' ' ' ' Stage !I: 1900 -1920 ,2020 -2030 ,2070 -2080 , 2170' 2180' f 2125'-2135' 6j 25. ACID, FRACTURE, CEMENT SQUEEZE, ETC. - . , sp Stage III: 1555'-1575',1690'-1710' 6jspf DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED , Stage 1V: 1130'-1150',1210'-1230'. 6jspf See previously submitted Post Treatment Report,dated Aug, 27, 2005 26. PRODUCTION TEST Date First Production: No Production Method of Operation (Flowing, gas lift, etc.): Rod um for dewaterin ,unable to lower water ' Date of Test: 9/10/05-9/28/05 Hours Tested: 408 Production for Test Period Oil-Bbl: 0 Gas-MCF: 0 Water-Bbl: 2053 Choke Size: 1/2" Gas-Oil Ratio: N/A Flow Tubing Press. Um Casing Press: 0 Calculated 24-Hour Rate ~ Oil-Bbl: 0 Gas-MCF: 0 Water-Bbl: Avg. 121.8 bwpd Oil Gravity -API (corr): N/A 27. CORE DATA Brief description of lithology, porosity, fractures, apparent dips and presence of oil, gas or water (attach separate sheet, if necessary). Submit core chips; if none, state "none". No cores were taken in this well. Lithologic descriptions of drill cuttings are attached. ,.- i ~ . ~ - ~~N~S ~F~. ~A~ ~ ~ Zoos ~ t `~' k~µr~._~ Form 10-407 Revised 12!2003 CONTINUED ON REVERSE S : /,~ :~~ v s. - GEOLOGIC MARKE 29. FORMATION TESTS NAME TVD Include and briefly su aze test results. List intervals tested, and attach ,Kivalina-Kayak facies Surface to TD - detailed supporting data as necessary. If no tests were conducted, state "None". None Notes to Complete Report, Production Test Summary, Production Test Data As-built survey, well-bore diagram Description of cuttings samples, Logs 30. List of Attachments: See Above 31. I hereby certify that the foregoing is true and correct to the best of my know{edge. Contact: (907) 258-3446 Printed Name: R.C. Gardner Title: Sr. Technical Advisor for Teck Cominco Alaska Incorporated Signature: ~m Phone: (907) 258-3446 Date: ~ ~/ t7l INSTRUCTIONS General: This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Alaska. Submit a well schematic diagram with each 10-407 well completion report and 10-404 well sundry report when the downhole well design is changed. Item 1a: Classification of Service wells: Gas Injection, Water Injection, Water-Alternating-Gas Injection, Salt Water Disposal, Water Supply for injection, Observation, or Other. Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPI (Top of Producing Interval). Item 8: The Kelly Bushing elevation in feet above mean low low water. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits (ex: 50-029-20123-00-00). Item 20: True vertical thickness. Item 22: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 23: If this well is completed for separate production from more than one interval (multiple completion), so state in item 1, and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval). Item 26: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut-in, or Other (explain). Item 27: If no cores taken, indicate "none". Item 29: List all test information. If none, state "None". Form 10-407 Revised 12/2003 ~ s ~ Teck Cominco Alaska Incorporated Well No. NB-02 Notes to Well Completion Report Weekly operations report were filed with the AOGCC covering the period between the spud date and suspension of testing (July -September, 2005). It is assumed that these reports currently on file with the AOGCC cover the requirement for a summary of daily well operations as per 20AAC 25.070(3). Well NB-02 was drilled with air. No mud log was made, however. a lithologic description of cuttings samples is submitted herewith. No conventional or side wall cores were taken. The entire well bore is within the Kivalina limestone/shale sequence, and no significant geologic markers are noted. Cuttings. samples have been submitted as per 20AAC 25.471 (b) (2). A production test summary is submitted as an attachment to Form 10-407. • • Teck Cominco Alaska Incorporated Well No. NB-02 Production Test Summary Well No. NB-02 was the second of two wells drilled in the North Basin area by Teck Cominco Alaska Incorporated in 2005. The well was drilled to test the potential for natural gas production from the organic rich shales of the Kivalina formation. The formation is an unconventional gas resource requiring extensive fracturing of selected intervals, followed by a sustained period of de-watering, in order to allow gas to de-sorb from the shales. Until these wells were drilled, there had been no attempt to test the productivity of this potential resource. Rod pumping was used in an attempt to de-water the well. Water was produced up the tubing, with gas production anticipated up the tubing-casing annulus, once the fluid level had been sufficiently lowered (see wellbore diagram). The well consistently produced water at or above the capacity of the pump without significant lowering of the fluid level. ,-.~ The last water production rate before the well was shut in for the winter was 149 bwpd, which is 150% of the pump capacity. Gas apparently assisted the pump in lifting the -- water, as gas bubbles were observed in the produced water tank. However even at the gas assisted rate, water inflows were high enough to keep the fluid level at slightly under 400 ft below the surface. For example, the fluid level was measured at 413 ft on 9/18/05 and at 432 ft on 9/27/05. This equated to approximately 700ft of fluid over the top perforations, 1600ft over the middle perforations, and 2500ft over the bottom perforations. The comparative back pressures are 300psi at the top perforations, 700psi on the middle perforations and 1,100psi on the bottom perforations. Obviously the gas production potential of this well cannot be determined until the well is pumped off, and this can only be accomplished with a larger pump. Unfortunately, a pump change could not be completed in the limited time available before the on-set of freezing temperatures. Water production data is attached. In summary, the de-watering attempts at NB-02 were necessarily hurried due to the season. The well was freeze protected and shut in the for the winter on 10/OS/O5. Gas observed in the produced water streams, and the gas assisted pump rates were considered encouraging. A larger capacity pump will be employed when de-watering operations resume in June, 2006. • Teck Cominco Alaska Incorporated Well No. NB-02 Water Production Test Data Date BWPD Fluid Level Notes 9/10/05 95 9/11/05 94 9/12/05 100 9/13/05 107 9/14/05 108 9/15/05 116 9/16/05 105 9/17/05 129 9/18/05 128 413 9/19/05 144 9/20/05 134 9/21/05 0 Adjustments to surface equipment 9/22/05 145 9/23/05 149 9/24/05 0 Adjustments to surface equipment 9/25/05 149 9/26/05 148 401 9/27/05 148 432 9/28/05 54 Total 2053 :~ TECK COMINCO ALASKA INCORPORATED WELL No: NB-02 WELL-BORE DIAGRAM 13 318" Conductor ~ 75' MD 8 5/8" 24# @ 480' MD 2 3/8" Tubing @ 2628' 5'/z' 15.5# @ 3076' MD PTD: 205-096 API No: 50-073-20002-00 SPUD DATE: AUGUST 7, 2005 Stage IV :1130' -1150',1210'-1230' 6 jspf. Stage III :1555'-1575',1680'-1710' 2 jspf. Stage II :1900'-1920', 2020'-2030', 2070'-2080', 2125'-2135', 2170'-2180' s jspf. Stage I :2690'-2710', 2750'-2770', 2810'-2830', 2895'-2915', 2920'-2940' 6 jspf PBTD :2950' TD @ 3110' MD .'., Cement s • TECK COMINCO ALASKA INCORPORATED DESCRIPTION OF CUTTINGS SAMPLES WELL No. NB-02 PTD No. 205-096 • • WELL:NB02 Elev: ' T No Samples No Samples No Samples No Samples No Samples Cemented 103-123' Sh,Dgy,Occ Gy,Smth,Sl Calc,Fiss-Blky 10-20% Caving 30-40% 123-143 Sh Dgy,Blk,Occ Gy,Smth,Fiss-B1ky,Calc,Tr Wh Calcite Large Cavings 143-163 Sh,Dgy,Blk,Calc,Fiss-B1ky,Smth,Tr-5% Gy Calcarinite? Vfg,Calc Cem,Tr Wh calcite 80-90% 163-183 Sh, DGy, Gy,Calc,Smth,Fiss-B1ky,Fm,Tr Wh Calcite Large'/4"-1" Cavin s 183-203 Sh,DGy,Blky-Fiss,Smth, Calc,Tr LS Gy,FXtl,Micr,Tr Wh Calcite 10-20% Cavings 5-10% Small 203-223 Sh, Blk, DGy,Blky-Fiss,SCalc,Sm,Tr-1% Wh Calcite '/4"-112" Cavin s 223-243 Sh,Dgy,Occ Gy,SCalc,Fiss,Sm,Tr GyBrn Weath Chrt,Tr Wh 10-IS%'/a"- Calcite 3/4" Cavings 243-263 Sh,Dgy,Gy,Ca1c,VFm,Blky-Fiss Tr Wh Calcite Tr Dis Pyr ' 70-80%'/x"- 3/4" Cavings 263-283 Sh,AA,More Calc,Occ Arg FXtI LS,Gy,Tr Wh Calcite 20-35%'/x"- 1 a in v gs C 283-303 Sh, B1k,DGy,Oco Lam gy w Blk Org, Diss Pyr,Calc,Tr Gy No Cavings Chrt,Trans1,5-10% Wh Calcite,Tr Clr Calcite 303-323 Sh,B1k,DGy,Calc,Tr-2% Wh Calcite,Occ Dgy Argll LS 323-343 AA, Fiss-B1ky,5-~% Wh Calcite 1 • • W ELL:NB-02 DEPTH DESCRIl'TION ~ COMMENT 666-686 Sh,B1k,Sm,B1ky,Calc,Dissem Pyr,15-20% Wh Calcite FW Flow Small 686-706 Sh,B1k,Sm,SCaI,VFm,Sm,B1ky,Tr Wh Calcite,SDolic? 706-726 Sh,B1k,Calc,Sm,VFm,Fiss-B1ky,Tr Wh Calcite 726-746 Sh,AA,,Dissem Pyr, l-2% Wh Calcite 746-766 Sh,B1k,AA,Tr Wh Calcite 766-785 Sh,DGy,B1k,Calc,Sm,Blky-Fiss,2-3% Wh Calcite,Tr Gy LS, Arg,Micrite. 785-805 Sh,B1k,DGy,Sm,Blky-Fiss,calc,Tr Dissem Pyr,l-3% Wh Calcite 805-825 Sh,Dgy,VCalc,Sm,B1ky,LS,DGy,Arg,Micrite,Tr Wh Calcite 825-844 Sh,Dgy,Blk,Gy,Fiss,VFm,Calc,Sm,1-2% Wh Calcite 5-10% Cavings'/4"- ~~2~, 844-864 Sh,DGy,SCalc,Sm,Fiss-5Blky,B-10% Wh Calcite,Tr SS,1Gy,Carb Cem,VCalc. 864-884 Sh,B1k,VOrg,Dissem Pyr,VCa1c,Blky,Sm,3-5% Wh Calcite 884-904 Sh,B1k,AA,10-15% Wh Calcite,Less Pyr 904-923 Sh,B1k,Tr Dissem Pyr,Blky,VFm,VCa1c,10-15% Wh Calcite 923-943 Sh,B1k,AA,Calc,3-5% Wh Calcite 943-963 Sh,DGy,B1k,Fiss,Sm,Occ B1ky,SCa1c,VFm,l-3% LS,Gy,Arg,Micr 962-982 Sh,DGy,Gy,Fiss-SB1ky,VFm,Calc,Tr Foliations?,1-2% Wh Calcite 3 • WELL:NB02 Elev: DEPTH DESCRII'TION COMMENT Sh,B1k,DGy,Occ Lam Blk w/DGy Sh,SCalc,Sm,Fiss-B1ky,Tr-1% 343-363 Wh Calcite 363-383 Sh,B1k,DGy,AA,Dissem Pyr,l-2% Wh Calcite 383-403 Sh,BIk,DGy,Sm,Fm,VFm,Fiss-B1ky,Calc,Tr-1% Wh Calcite Tr Dissem Pyr 403-423 Sh,BIk,DGy,Calc,Fiss-B1kySm,Dissem Pyr,3-5% Wh Calcite * 423-443 Sh,AA,Occ Bitumen? In Calcite,Tr-1% Wh Calcite, Large ' 20-30% ~ „ Cavings /a - -~ Volume of Fresh Water @ 430 1/2" 443-460 Sh,DGy,BIk,Sm,Fiss-B1k,Vfm,SCalc,12-20% Wh Calcite Few Small Cavings 460-480 Sh,BIk,DGy,Sm,VFm,Calc,Blky-Fiss,Tr Arg LS,DGy,S-10% Wh Tr Small Calcite Occ Clr Calcite. SET & CEMENT SURFACE CASING Cavings 480-506 Sh,B1k,DGy,NonCalc,Sm,Fiss,Tr Dissem Pyr,Tr Wh Calcite 506-526 Sh,B1k,DGy,SCa1c,AA 30-40% 526-546 Sh,DGy,Fiss,Sm,Ca1c,VFm,Tr Dissem Pyr Cavings'/4- 1/2" 546-566 Sh,DGy,Occ B1k,AA,Tr DGy,LS,Arg,Micr,Tr DGy Arg Chrt,Tr- 10-20% 3% Wh Calcite Cavings AA 566-586 Sh,DGy,B1k,SCalc,Sm,Blky-Fiss,Tr Wh Calcite,Dissem Pyr 586-606 Sh,B1k,DGy,SCalc,Sm,Blky-Fiss,Tr Wh Calcite,Dissem Pyr 606-626 Sh,BIk,DGy,SCalc,Sm,Fiss-B1ky,Fm-VFm,Tr Wh Sparry Dol Frac Fill, 1-2% Wh Calcite 626-646 Sh,AA,l-2% Wh Calcite,Tr Wh Calcarenite,Fg,WSrt 646-666 Sh,B1k,DGy,Sm,Dissem Pyr,Calc„VFm-Fm,Fiss-B1ky,Tr-1% Wh Calcite ! • W ELL:NB-02 DEPTH DESCRIl'TION COMMENT 10-20% 982-1002 Sh,Dgy,Gy,Sm,Fiss,VFm,Tr Dissem Pyr,VCalc Cavings'/4- 3/4" 1002-1022 MISSING SAMPLE NO SAMPLE 1022-1042 Sh,DGy,Gy,Sm,Fiss,VFm,Tr Dissem Pyr,VCalc 1042-1061 Sh,Dgy,Intbdd w/ Blk Org Sh,VCalc,Sm Blky,l-3% Wh Calcite 1061-1080 Sh,Gy,DGy,Calc-VCalc,Tr Dissem Pyr,Sm,Fiss-SBlky 1080-1100 Sh,DGy,B1ky,Sm,Fiss,SCalc,Tr Wh Calcite 1100-1120 Sh,Blk,Dgy,Sm,Ca1c,Blky,Fiss,VFm,1-3% Wh Calcite 1120-1139 Sh,BIk,DGy,Sm,Ca1c,Blky,Fiss,VFm,Dissem Pyr, 5-8% Wh Calcite 1139-1159 Sh,B1k,Fiss,Mod Calc,High Organic,Dissem Pyr,Tr Wh Calcite 1159-1179 Sh,B1k,DGy,B1ky,Mod Ca1c,LS,DGy,SArg,Micritic 1179-1198 Sh,B1k,Calc,Sm,Dissem Pyr,Blky,LS,DGy,Argl,Micritic 1198-1218 Sh,BIk,DGy,Dissem Pyr,MCa1c,Blky,Tr DGy LS,AA,S-8% Wh Calcite 1218-1238 Sh,DGy,AA, Pyr Vein Fill, Dissem Pyr,SCa1c,20-25% Wh Calcite, Tr DGy LS,Micritic 1238-1258 Sh,DGy,B1k,Sm,Fiss-B1k,Calc,Tr Gy LS, Micritic.5-8% Wh Calcite Sh,DGy,SCalc,Sm,Blky-Fiss,Tr Lamm Gy W Black Ofg,l-2% Wh 1258-1277 Calcite 1277-1297 Sh,DGy,Occ Gy,Sm,Fiss,Fm,MCalc,Tr-1% Wh Calcite 5-10%'/4" Cavings • W ELL: N8 ~ 02 C DEPTH DESCRIl'TION COMMENT 1297-1317 Sh,AA,NonCalc,Tr DGyGn S1tSt,vfg,Wind,Tr Wh Calcite 1317-1336 Sh,DGy,Occ Gy,AA,Tr S1St,AA,1-2% Wh Calcite 20-30°l0 Cavings,l/4"- 1/2" Rdd 1336-1356 * Sh,DGy,Gy,Fiss,MCalc,Tr-1% Wh Calcite Bit Torque some @ 1350 1356-1376 Sh,B1k,DGy,SCalc,Sm,Fiss,VFm,tr Wh Calcite 1376-1395 Sh,B1k,DGyTr Pyr,Calc,Sm,Blky-Fiss,Tr LS,DGy,Argl,Micritic,Tr Wh Calcite 1395-1415 Sh,B1k,Sm,Fm,Fiss,Diss Pyr,SCalc,2-3% Wh Calcite, 1415-1435 Sh,BIk,AA,LS,DGy,Micritic,SArg1,3-5% Wh Calcite 1435-1455* Sh,B1k,AA Ca1c,LS,B1k,Arg1, Pyr Vein Fi11,Tr-1% Wh Calcite Frac Fill Pyr 1455-1474 Sh,DGy,Sm,Fiss,MCalc,Fm,Mica,Sh,B1k,B1ky,Sm,VFrm,Calc,Tr- 1 /o Wh Calcite 1474-1494 Sh,B1k,DGy,BIky,Occ Fiss,Dissem Pyr,Calc,VFm,Tr LS,Gy- DGy,Argill,Tr-1% Wh Calcite 1494-1514 Sh,B1k,AA,LS,AA,Tr Wh Calcite 1514-1533 Sh,DGy,B1k,MCalc,Sm,B1ky,Dissem Pyr, Non Calc, 6-8% Wh Calcite 1533-1553 Sh,DGy,B1k,MCalc,Fm,Sm,Fiss-B1ky,Tr GryGrn S1tSt,Vfg,Wind,6-8% Wh Calcite 1553-1573 Sh,Dgy,Blk,Calc,Sm,Fm,LS,Dgy,Arg11,2-4% Wh Calcite 1573-1592* Sh,DGy,MCalc,Sm,Fiss,"Ground Up" Texture,Tr Calcite 5-10% Cavings'/4- 1/2" • • DEPTH DESCRIl'TION COMMENT W ELL: Section 18 Section 17 T31 N R18W T31 N R18W 254.36ft Well NB-0 Well N B-02 State Plane N 5,150,118 E 583,596 Lat/Long N 68deg 05min 12.15sec 2,923.27f W 162deg 51 min 05.84sec Elevation 906.4 ft amsl Note: all data In NAD27, Alaska Zone 7 '" x Red Dog Mine Gas Exploration Project Well site As-Built Survey 1000 0 1000 2000 Feet Wel{ N -02 Date: 03 May 200 ~ D ed by: urner Drawing Approved • • I ~ ~, ~~~~ ~~~., !,\~fa ~ ~'~'~ ,~~" ~ `~ x ~~~;~ g~/ FRANK H. MURKOWSKi, GOVERNOR i JX;f Dit[>•-7~~ o~ ~ Vrva7 ~~'y 333 W. 7"' AVENUE, SUITE 100 Co1~T5ERVA7`IO1~T CoMi~II55IOK ANCHORAGE, ALASKA 99501-3539 y PHONE (907) 279-1433 FAX (907) 276-7542 R.C. Gardner Senior Technical Advisor Teck Cominco Alaska Incorporated 3105 Lakeshore Dr., Bldg. "A" Anchorage, Alaska 99517 Re: Exploration NB-02 Sundry Number: 305-289 Dear Mr. Gardner: Enclosed is the approved Application for Sundry Approval relating to the above referenced well. As discussed with Commission staff, it is not possible to grant an operational shut down as requested. Based on the operations accomplished this season, the well is properly considered completed. Accomplishing the planned work will secure the well for the coming winter. Please note the conditions of approval set out in the enclosed form. Please provide at least twenty-four (24) hours notice for a representative of the Commission to witness any required test. Contact the Commission's petroleum field inspector at (907) 659-3607 (pager). As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. A person may not appeal a Commission decisio Superior Court unless rehearing has been requested. ,,, ~~rr G G~ DATED this day o Se tuber, 2005 Encl. E & P SERVICES, INC. Septrmber 27, 2005 • ~~ Alaska Oil $~ Cas G~-ns• l;~€~l~issia~ kncheta~e Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501 Attention: Tom Maunder, P. E., Petroleum Engineer Re: Applications for Sundry Approvals (Form 10-403) Temporary Operations Shutdown Wells Nos. NB-O1 and NB-02 Dear Mr. Maunder: Please find attached the above referenced applications and supporting documentation. If you have any questions, please contact the undersigned at 907 258 3446 at your convenience. Sincerely ~~ ~-~ R. C. Gardner Fairweather E & P Services, Inc. For Teck Cominco Alaska Incorporated Attachment Cc: Jerry Booth, Teck Cominco 2000 East 88th Avenue • Anchorage, Alaska 99507 • (907) 258-3446 • FAX (907) 279-5740 650 North Sam Houston Parkway East, Suite 505 • Houston, Texas 77060 • (281) 445-5711 • FAX (281) 445-3388 STAT "~~ IP' ~F-OS R ~~~ ~ ~ ~~ c ALA~OIL AND GAS CONSERVA ION COMM~N `~~~~~ `~ APPLICATION FOR SUNDR PPROVALS ~P ~ ?~05 20 AAC 25 280 /~~~ ~ 1. Type of Request: Abandon Suspend eration tdow ~ Pertor a ~~~~ ~t5 ~ Alter casing [] Repair well ~ Plug Pertorations [] Stimulate [] Time Extension L -'J~~ :: ~ C ~ Change approved program[] Pull Tubing Pertorate New Pool ~ Re-enter Suspended Well ' ! l ~ Y1.1 2. Operator Name: 4. Current Well Class: 5. Permit to Drill Number: Teck Cominco Alaska Incorporated Development ~ Exploratory ~ 205-096 3. Address: Stratigraphic ~ Service ~ 6. API Number: 3105 Lakeshore Drive, Bldg "A" Anchorage, AK 99517 50-073-20003-00 7, KB Elevation (ft): 9. Well Name and Number: 910 ft NB-02 8. Property Designation: 10. Field/Pools(s): NANA Regional Corporation Exploratory 11. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD (ft): Effective Depth TVD (ft): Plugs (measured): Junk (measured): 3110 3110 3076 3076 None None Casing Length Size MD TVD Burst Collapse Structural Conductor 75 13 3/8 75 75 Surface 480 8 5/8 480 480 2950 1370 Intermediate Production 3076 5112 3076 3076 4810 4040 liner Perforation Depth MD (ft): Pertoration Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): See Attached See Attached 2 3/8 4.7#, J-55 2660 Packers and SSSV Type: None Packers and SSSV MD (ft): None 12. Attachments: Description Summary of Proposal 13. Well Class after proposed work: Detailed Operations Program 0 BOP Sketch ~ Exploratory 0 Development ~ Service [] 14. Estimated Date for 15. Well Status after proposed work: Commencing Operations: Oct. 1, 2005 Oil ~ Gas Q Plugged ~ Abandoned [] 16. Verbal Approval: Date: WAG ~ GINJ ~ WINJ ~ WDSPL [] Commission Representative: 17. f hereby certify that the foregoing is true and correct to the best of my knowledge. Contact R.C. Gardner Printed Name R.C, Gardner 258- 6 Title Sr. Technical Advisor Sept. 26, 2005 Signature Phone Date MISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: ~~+a ~. Plug Integrity [] BOP Test [] Mechanical Integrity Test ~ Location Clearance Other:;~~ ~ hn~~ ~ ~W ~ ~ U.~~aC'~S ~ ~~ ~~J~~~~~~~ . ~~~ ~F~, ~cF ~ ~ 200 Subsequent For wired: ~S ~~~~ ~ APPROVED BY Appro COMMISSIONER THE COMMISSION D ~ ~ ate: ~ Form 10-403 Revised 07/2005 ~ , ~ , 4 Submit in Duplicate ~~~ f Teck Cominco Alaska Incorporated i Well No. NB-02, PTD 205-096 Plan for Winter Operations Shutdown, 2005-2006 Statement of Purpose Dewatering and production testing operations at Well No. NB-02 have been ongoing since September 9, 2005, and considerably more time is needed to evaluate the production potential of this well, and of the shale reservoir itself. The onset of freezing temperatures make it prudent to temporarily shutdown these activities until spring of 2006 in order to prevent freeze-up and damage to surface equipment. Teck Cominco Alaska Incorporated requests approval of a temporary Operations Shutdown for this well under 20 AAC 25.072, and proposes to use the shutdown period to evaluate the test. data acquired thus far, and to develop plans for additional de-watering and production testing when more favorable temperatures return next spring. Well Status The current status of Well No. NB-02 is reflected on the attached Form 10-403. Four (4) stages were perforated in this well as follows: ` Stage I; 2895'-2915', 2920'-2940', 2810'-2830', 2750'-2770', and 2690'-2710 , w/6 j spf. Stage II: 2170'-2180', 2125'-2135', 2070'-2080', 2020'-2030', and 1900'-1920' w/2 j spf Stage III: 1690'-1710', and 1555'-1575', w/2 jspf Stage IV: 1210'-1230', and 1130'-1150', wl6 jspf These stages were individually hydraulically fractured, as reported in the attached Post Treatment Report, dated August 27602005. Following the initial flow-back of frac water, the static water level in the well bore stabilized at approximately 100 ft. Tubing (2 318", 4.71b, J-55) was run to 2628 ft, and a rod pump installed to de-water the well. De-watering has been on-going for 18 days, but the pumping rate has been insufficient to reduce the hydrostatic head enough to release measurable gas from the formation. The pump has been delivering formation water at rates in excess of 100% of the pump capacity, which indicates that the pump has been getting some "help" from formation gas, however no gas has been produced from the well thus far. . • • Operations Shutdowa Scope Permafrost exists in Well No. NB-02 to a depth of approximately 640 ft. Temperature limitations on the operation of surface equipment require that this well be shut-in during the fall, winter and spring months when freeze-up is a problem. Down-hole production equipment will be pulled before the shut-in period so that only the 2 3/8" tubing will be in the well-bore. Formation water will return to pre de-watering levels, approximately 100 ft below ground level. This water within the permafrost zone will be subject to freezing if precautions are not taken to prevent such an occurrence. Should this happen, the associated expansion of the freezing water will expand the production casing (particularly at the joints) and can cause failure in the collars that connect the joints. This failure will result in leaks into the 5 'h in production casing that can allow excess water to enter the well-bore. Gas production could also be lost to leaks in the casing, and other adverse production consequences could occur. The Red Dog Gas Project Group recommends the use of methanol to prevent freezing of the NB-02 well bore during the 2005-2006 winter shut down. Methanol was determined to be the best choice after evaluating several alternatives. It is readily available at Red Dog, as it is used extensively with water to make drilling fluid for mineral exploration holes, and in the drilling of blast holes at the mine itself. It is easily handled, and mine personnel are familiar with the required safely precautions, transportation, and pumping of this product. Methanol readily mixes with water, and will not stratify in the well bore or precipitate out of solution. Approximately 650 gallons of methanol-will be required to fill the NB-02 well bore to 700 ft, which includes the permafrost zone plus a safety factor. Using 50/50 methanol water mixture will reduce the amount of pure methanol required. Stratification should not be a problem, since the specific gravity of the mix is very close to that of water. Pumping an initial pad. of 100% methanol should prevent any loss of freeze protection due to mixing that may occur with water in the well bore. When de-watering and production testing resume next spring, a pump and sucker rods will be run in the 2 3/8" tubing and the methanol will be pumped out with the produced water stream and recovered to the degree possible. Some methanol will be unavoidably discharged to the mine tailings pond for disposal along with produced water. Methanol currently used in Red Dog mineral exploration is routinely disposed of in a similar manner. Operations Shutdown Procedures 1. Permafrost is estimated to extend to approximately 640 ft in the North Basin area. In order to be sure the entire permafrost interval is covered, methanol will be placed in the well bore to a depth of 700 ft. The total volume to fi11700 feet of well bore annulus and 2 3/8" tubing is 15.52 bbls, or 652 gallons. The 2 3/8" X 5 i/z" annular volume down to 700 ft (0.0183 bbls/ft) is 12.81 bbls, and the Z 3/8" tubing volume (0.00387 bbls/ft) is 2.71 bbls to 700 ft. • • 2. A total of 390 gallons of 100 % methanol is required for the job. Mix 6.5 bbls (280 gals) each of methanol and water in a water truck or other portable tank, as is done with other mine-site drilling. Keep 2 drums (110 gals) of 100% methanol separate for the initial methanol "pad". 3. Pull the 3/a" sucker rods and pump from the well with a boom truck or other available crane capable of lifting approximately 6600 lbs in 30 foot lengths. Allow the well bore to refill with formation water to the original static water level at approximately 100 ft below ground level. 4. While the well bore is refilling with formation water, completely blow down all surface equipment with compressed air and secure to prevent any water or snow entry during the winter months. 5. Remove the stuffing box from the flow T on the well and replace with a 2" ball valve. Screw a 2" tapped bull plug into the top of the "swab valve" with a pressure gauge rated to 2000 psi. 6. Using a "bean" pump, or similar equipment, connect the pump into the casing annulus valve and pump 1.5 drums (85 gals) of 100% methanol into the 2 3/8" X 5 llz" casing annulus with the tubing valve open, and follow with 11 bbls (460 gals) of the 50/50 methanoUwater mixture. This will place a 100 ft methanol "pad" at the bottom of the column, with the mixture above. Recover any water flowing from the tubing while the methanol is being pumped in a tank for disposal. Close the annulus valve. 7. Connect the pump to the wellhead (tubing) valve and bullhead 0.5 drum (27 gals} of 100% methanol into the 2 3/8" tubing, followed by 2.25 bbls (100 bbls) of the 50/50 methanoUwater mixture. Record pressures while bullheading. Close the tubing valve and disconnect the pump. Record initial pressure showing on the wellhead gauge after closing the tubing valve. 8. Monitor and record pressures on the wellhead gauge frequently during the winter months. The road to the well site will in all likelihood not be kept open, but the well site will be accessible by snow machine or other tracked vehicle. R • ~ Proposal No: /~ i 100190989A POST TREATMENT REPORT Teck Cominco Alaska Inc. North Basin No. 2 Wolverine Shale Red Dog Alaska August 27, 2005 as s-~~ b PO-WERVISI~7N~` ~- ~ ~ August 27, 2005 Teck Cominco Ataska Incorporated 3105 Lakeshore Drive Bldg. A, Suite 101 Anchorage, Alaska 99517 Treatment Summary North Basin No. 2 Completion The attached report outlines the fracture treatment performed on NB-02. This report includes graphs and data detailing each of the four stages. A frac data summary form separates each stage and includes volumes, pump times, and treatment schedules. The graphs include overall treatment data, Nolte-Smith, fluid inventory, regression analysis. Comments were added to the graphs and summary sheets for clarification. We pumped the four stages according to the design and a maximum sand concentration of 2.5 ppg was mixed. The total volume of water pumped on this well was 1834 bbls. Should you have any questions, please contact the Santa Fe Springs Engineering Department. BJ Services appreciates the opportunity to perform pumping services for you in acost-effective manner that focuses on safety and quality. Sincerely, Gabriel Coria District Engineer Santa Fe Springs District, California H L Frac Data Summary Customer: Teck Cominco Customer Rep: Steve Bumgardner WeIU Field NBO-2 Job Date: 26-Aug-OS Size/wt Len th bblift bbls Casin 5 l%2" I5.5# 2690 0.0238 64.0 0.0 0.0 0.0 0.0 Volume to Top PerF 64.0 In'ection Main Frac Volume to fill 0 STP 1650 Rate 24 FG 0.46 Volume 544 ET~c~Startu 0.1 ET ti:Shtttdown 26.0 Pump Time 25.9 Break Pressure 2080 ISIP 1486 1 min SIP 1.478 5 min S1P 1343 l0 min S1P 1240 15 min SIP 1268 Closure time 10.5 Pclosure (surf.) 1288.0 FG closure 0.89 Ffficiencv 24°ib STP STP i Formation: Watverine Shale IntervaUStage: Stage 1 - 4 BH5T: 68°F BJ Rep: David Archuleta / Gabriel Coria To Perf 2690 2690 ft Bottom Perf 2940 2940 ft Mid Zone 2815 2815 ft Gross Interval 250 ft Iv et Interval 105 ft Fluid SG / HH 1 122] si Shots/foot 6 480 holes Size 0.60 inch STP( si) 1660 1610 1533 1524 Rate(b m) 24 19 l4 11 i~ Program 10,462 lbs Computer 11,715 lbs 2.65 SG Blender 11,715 lbs 0.0452 lbs/bbl BH Sand 11.7 i 5 lbs Dirty bbls 557 Placed i 12°/, b deli n Clean bbls 544 Comments: No pressure chan~c when sand hit perforations (no near wellborc problems). Onened the wellhead after closure and 17 5 bbls water returned to surface. 0 ~ 0 ~ Inj. ~ ~ Ld Hole % f I 300 Pad 300 Pad 2 6$ 0.5 b6 0.5 3 65 t .5 65 1.5 ; 4 69 2 63 2.3 ; 5 64 Flush 64 Flush Start Pumping ~a. 1:29 PM End Pumpin:i ~ 1:54 P.M S CATION TREATMENT REPORT Date 26-AUG-05 _ District Kenai - F.Receipt 121264636 Customer Teck Cominco Alaska IncorQorated Lease North Basin No. 2 Well Name North Basin No. 2 Field~De _eng Mountains _ Location County De Lono Mts _ State Alaska Stage No 1 _ Well API , WELL DATA Well Type: NEW Well Class: GAS Depth TD/PB: 2950 Formation: Wolverine Shaie Geometry Type Tubular Type OD Weight ID Grade Top Bottom ~ Perflntervals TUBULAR CSG 5.5 15.5 4.95 0 2950 Top Bottom SPF Diameter 2690 2710 6 .5 2750 2770 6 2810 2830 6 2920 2940 6 2895 2915 6 Packer Type Packer Depth FT TREATMENT DATA LIQUID PUMPED AND Fluid Type Fluid Desc Pumped Volume(Gals) Prop. Description Volume Pumped(Lbs) CAPACITIES IN BBLS. PAD Water 12.600 Sand, White, 20!40 11,715 Tubing Cap. 0 TREATMENT FLUID Water 7,896 64 Casing Cap Total Prop Qty: 11,715 . Annular Cap. 0 Open Hde Cap. 0 Fluid to Load 0 Pad Volurr~ 300 Previous Treatment N/A Previous Production N/A Treating Fluid 193 Hole Loaded WithH20 __ Treat Via: Tubing [ using ~nul. tubing & Anul. ^ Flush 64 Ball Sealers:__~___ I n_ _-~_Stages Type _ _ __ Overtlush 0 Atodliary Materials sEt< REC- R 557 ecover Fluid to PROCEDURE SUMMARY Time Surface Slurry Slurry Rate AM/pM Treating Pressure-Psi BBLS. Pumped BPM Cots STP Annulus Stage Total 13:24 1667 0 300 0 24 Open wellhead/ Start Pad 13:27 1837 0 64 24 Pad on Formation 13:44 1647 0 65 300 24 Start .5 a 20/40 W hite 13:47 1616 0 65 365 24 Start 1.5 a 20/40 W hite 13:51 1564 0 63 430 24 Start 2 a 20/40 White 13:53 1498 0 64 493 24 Start Flush 13:56 1607 0 0 557 0 Shut Down ISDP-1570 13:57 1492 1 min. ressure 14:02 1343 5 min. ressure 14:07 1297 10 min. ressure 14:12 1268 15 imn. ressure reating Pressure Injection Rates Shut In Pressures Customer Rep. Matt Minimum 1498 Treating Fluid 24 ISDP 1570 BJ Rep. David Archuleta Maximum 1837 Flush 24 5 Min. 1343 Job Number 121264636 Average 1647 Average 24 10 Min. 1297 Rec. ID No. 100190989 A Operators Max. Pressure 15 Min. 1268 Distribution 2500 Final 1268 In 15 Min. Flush Dens. Ib./gal. 8.34 Report Pru~tec an_ Augsst 20. 2005 8.06 PM Jr8000 ,' BJ Services JobMaster Program Version 3.00 . Job Number: 1212 64636 Customer: Teck Cominco Alaska Incor Well Name: NB-02 (1st stage) 4000x- 40 3r?00 30 a a H 00 ~ .°: ~ a ~ ea .; . ~ ~ULO _ d 20 ~ ~ i a ~ V v N .N a a N 1000 10 0 0 0 10 PRC Chart - Frac G 20 Elapsed Time (min) 30 ., c~ rn a .. c ca m rn Q c m 0 1000 0 0 0 a 2000 a v :r ca ... O v a 2 3000 ~ 4000 BJ Services Job Start: Friday, August 26, 2005 ~ ~ BJ Services JobMaster Program Version 3.00 Job Number: 1212 64636 Customer: Teck Cominco Alaska Incor Well Name: NB-02 (1st stage) Nolte Plot 10000 10 1000 ~ .~ 'r ~ ~ ~ ~. - ~ ~ 0 ~ ~ ` ~ 5 ~ ~ ~ ~ !~ ~ L a a a ~ _ 1 z 00 ~ ~ m 10 10 ~ 30 20 .-. ~. ~ c~ a ~ ~ a .,., 5 ~ ar ~ ~ N J 10 ~ 0 1 Elapsed Time (min) 0 BJ Services Job Start: Friday, August 26, 2005 0 10 20 1700 0.2 0.8 1.C r 100 80 60 \ r~ V .°. 20 0 1600 ^~ 1500 ?-+-I ~/ L/1 ~ 1400 ~--~ U 1300 1200 1100 Regression Analysis (NB02- Stage # 1) DGiLa Ili - 1V.JUGI Surface ISIP = 1485.8 Surface Closure Pres. = 1287.72 BH Closure Pres. = 2507.55 Net Pressure = 198.081 Efficiency* = 0.257711 Residual = 20.3565 Slope 1 = -428.183 Slope 2 = -133.502 ETC 0 MinFrac-NB02-1 -8/26/2005 0.4 0.6 Nolte G Time ~ ~ BJ Services JobMaster Program Version 3.00 . Job Number: 1212 64636 Customer: Teck Cominco Alaska Incor Well Name: NB-02 (1st stage) BJ Services 0 Design 564.0 10485 300.0 1.0 65.0 65.0 ~>>J.U 1000 64.0 2000 • Job Start: Friday, August 26, 2005 MD=2690 ft, Slurry/Sand are bbl/Ibm ' Actual Stage ' 546.2 Slurry 6154 Sand 288.4 01. Pad 0.0 02. Pad 66.0 03. 1st Conc.White 20/40 64.5 04. 2nd Conc White 20/40 E~1.~ OJ. 3rd Cork V"v"r"li;_ 64.4 06. FLUSH Injection Test - NB-02 - 1st stg 2000 1900 1800 1700 1600 1500 1400 1300 1200 1100 1000 30 3.5 3 2.5 • 2 1.5 ,~ 0.5 0 40 31 32 33 34 35 36 37 38 39 Frac Data Summary Customer: Teck Cominco Customer Rep: Steve Bumgardner WeIU Field NBO-2 Job Date: 27-Aug-OS Size/wt Len th bbl/ft bbls Casin 5 U2" t5.5# 1900 0.0238 45.2 0.0 0.0 0.0 0.0 Volume to Top Perf 45.2 In'ection Main Frac Volume to fill 0 STP 1.650 Rate 24 FG 0.93 Volume 608 ET(~LStartu 0. GT~uShutdown 26.0 Pump Tune 25.9 Break ressure 2290 ISiF 1010 1 min SIP 960 5 min SIP 874 10 min SIP 821 15 min SIP 787 Closure time 4.6 Pclosure (surf) 840.0 FG closure 0.85 Lfficiencv 20% S STP( si) 1250 Za[e(bpm) 24 Program 18,270 lbs Computer 18,702 ibs Blender 18,702 lbs BH Sand 18,702 lbs Placed 102%~ by 1190 1123 1090 19.3 14 11 2.65 SG 0.0452 lbs/bbl Dirty bbls 628 Clean bbls 608 i3 Formation: Wolverine Shale IntervaUStage: Stage 2 - 4 BHST: 68°F BJ Rep: David Archuleta i Gabriel Coria To Perf 1900 1900 tt Bottom Perf 2180 2180 f1 vlid Zone 2040 2040 ft Gross lnterval 280 ft Net lnterval 60 ft Fluid SG / HH 1 885. si Shots/foot 6 360 holes Size 0.60 inch 0 ~ 0 ~ Ini. ~ ~Ld ttolc 1 220 Pad 224 Pad 2 11.5 1 118 1 3 117 1.5 122 1.5 4 87 2 120 2 5 45 Flush 45 Flush Start Pumping [«a` 7:25 AM End Pumning (a% 7:53 A.M 1~ TION TREATMENT REPORT Date 27-A1~G-0_5 _ _ District Kenai _ F.Receipt 121264638 Customer Teck Cominco Alaska Inca~r orated Lease North Basin No. 2 _ Well N~ne _ North Basin No. 2 _ Field DeLona Mountains _ Location County De Long Mts _ State Alaska Stage No 1 _ Well API _ WELL DATA Well Type: NEW WeN Class: GAS Depth TD/PB: 2950 Formation: WaverineSh~e Geometry Type Tubular Type OD Weight ID Grade Top Bottom ~ Perflntervals TUBULAR CSG 5.5 15.5 4.95 0 3500 Top Bottom SPF Diameter 1900 1920 2 .6 2020 2030 2 .6 2070 2080 2 .6 2125 2135 2 .6 2170 2180 2 .6 Packer Type Packer Depth FT TREATMENT DATA LIQUID PUMPED AND CAPACITIES IN BBLS. Fluid Type Fluid Desc Pumped Volume(Gals) Prop. Description Volume Pumped(Lbs) PAD Water 9,408 Sand, White, 20/40 18,702 Tubing Cap. 0 TREATMENT FLUID Water 15.078 Casing Cap. 45.2 Total Prop Qty: 18,702 Annular Cap. 0 Open Hde Cap. 0 Fluid to Load 0 Pad Voume 224 Previous Treatment NA Previous Production NA Treating Fluid 359 Hole Loaded With_Fresh Water __ Treat Via: Tubing [using ~nul: ~ubing & Anul. ^ Flush 45 Ball Sealers:_____~___ In_ ___.(L_Stages Type _ _, Overflush 0 Auraliary Materials SEE REC_ Fluid to Recover 628 PROCEDURE SUMMARY Time Surtace Slurry Slurry Rate AM/PM Treating Pressure~si BBLS. Pumped BPM Comments STP Annulus Stage Total 07:19 169 0 224 0 24 O en Well Head/ Start Pad 07:23 1415 0 45 24.1 Pad on Perfs. 07:31 1287 0 118 224 24 Start 1# 20740 W hits 07:33 1208 0 269 24 1# 20/40 W hits on Perfs. 07:36 1171 0 122 342 24 Start 1.5# 20140 W hits 07:37 1161 0 387 24 1.5# 20/40 W hits on Perfs. 07:41 1163 0 119 464 24.1 Start 2# 20/40 W hits 07:42 1155 0 509 24 2# 20!40 W hits on Perfs. 07:46 1196 0 45 583 24.1 Start Flush 07:48 1007 0 628 0 Shut Down ISDP-1010 07:49 1-Min. -960 si 07:53 5 min: 874 si 07:58 10 min.-821 si 08:03 15 min :787 si Treating Pressure Injection Rates Shut In Pressures Customer Rep. Matt Belgum Minimum 1155 Treating Fluid 24 ISDP 1010 BJ Rep. David Archuleta Maximum 1415 Flush 24 5 Min. 874 Job Number 121264638 Average 1175 Average 24 10 Min. 821 Rec. ID No. 100190989 A Operators Max Pressure 15 Min. 787 Distribution 2500 Final 787 In 15 Min. Flush Dens. Ib./gal. 8.34 RePert PnnteFJ on: August 27. 20~fi i 1 %.2 AM Jr3Gt1C ~ , BJ Services JobMaster Program Version 3.00 Job Number: 121264638 Customer: Teck Cominco Alaska Incor Well Name: NB-02 (2nd stage) PRC Chart - Frac 3000 40 0 5 4 30 ., a ~ ~ ~ 2000 a i, 1000 0 0 H ~ I' ~--~--~ ~ 3 `° o + m ~ ~ ' c o. ~ _ ... 20 ------- '------ --------------'-------------- I ------, ~ N H ~ ~ ~. _ m a ~ v tr ~ - ~ ~ N {. ~' 2 .-. ~ fn ~i a 1000 ~U^;; ~ i i 'r~ ~ 2000 ~ -__ ~. y 10 ' -------------- ~ ------ --- ~ - -,~-- ----------- - - -- y ;~.U ~ m ~ ~ ~~ 1 ~ I ~~ , ~ + fill 1 I I I 0 0 . -ai I ~ I,.1_.M._~,lw~dM ,,,!_ ~ _,^', ~ ~ ~,ti~,l ....~J^, ' ~~-k'/~,' h~.~w~ 0 3000 0 10 20 30 4 0 ~i Elapsed Time (min) 1 BJ Services Job Start: Saturday, August 27, 2005 ~ ~ BJ Services JobMaster Program Version 3.00 Job Number: 121264638 Customer: Teck Cominco Alaska Incor Well Name: NB-02 (2nd stage) 10000 1000 ^_ N a a~ N 100 as L a ~.. Z 10 1 10 .-. c~ N a ~ 5 C ea 2 m 0 Nolte Plot 100 X10 E a ~ 50 a~ 5 ~ ea c iY ~ N ~ 0 BJ Services Job Start: Saturday, August 27, 2005 0 10 30 Elapsed Time (min) 1100 1050 1000 ~-. 950 ~ soo f~ N U C„H 850 ~-I 800 750 700 U.1 0.4 0.6 0.8 Nolte G Time Regression Analysis (NB02- Stage #2) Surface Pressure -G dP/dG (ISIP - ~--~" U MinFrac -NB02-2.8/27/2005 Pump Time = 27.3469 Delta TC = 8.61645 Surface ISIP = 1013.6 Surface Closure Pres. = 840.8 BH Closure Pres. = 1724.8 Net Pressure = 172.8 Efficiency* = 0.203719 Residual = 8.32534 Slope 1 = -398.021 Slone 2 = -175.69 Frac Data Summary Customer: Teclc Cominco Customer Rep: Steve Bumgardner WeIU Field NBO-2 Job Date: 27-Aug-OS Sizeiwt Len th bbUft bbls Casing > li2" 15.5# 1575 0.0238 37.5 0.0 0.0 0.0 0.0 Volume to To Perf 37.5 In'ection Main Frac Volume to fill 0 STP 1490 Rate 24 FG 0.97 Volume 344 ET(cuStartu 4.5 ET~r1Shutdown 21.0 Pump Time 16.5 Brcak ressurc 1725 ISIP 886 1 min S1P 831 5 min SIP 747 10 min S1P 698 15 min SIP 672 Closure time 5.4 Pclosure (surf.) 739 FG closure 0.88 EITiC1enCV 20% b STP( si) 1490 1342 1100 1000 Rate(b m) 24 19 11 8 Program 16,170 Ibs Computer 13,200 Ibs 2.65 SG Blender 13.,200 Ibs 0.0452Ibs/bbl BH Sand 13,200 Ibs Dirty bbls 361 Placed 82% by deli n Clean bbls 344 Comments: Pressure increases 270 psi as soon as the sand hit the perforation Chanced max. sand conc. to avoid nremature screen out. Pumne i Formation: WTverine Shale IntervaUStage: Stage 3 - 4 BHST: 68°F BJ Rep: David Archuleta / Gabriel Coria To Perf 1575 1575 tt Bottom Perf 1710 1710 ft Mid Zone 1643 1643 ft Gross Interval 135 ft Net Interval 40 ft Fluid SG / HH 1 712 si Shots/foot 6 240 holes Sizc 0.60 inch 0 I 0 I Ini. I I Ld Hole / 1 80 Pad 85 Pad 2 84 1 86 1 3 98 2 99 1.5 4 % 2.5 56 2 5 37 Flush 37 Flush Start Pumping ~ 1:30 PM End Pumping ~a; 1:47 P.M Very high near wellbore friction was recorded. 1.5 pne instead of 2 ppa and 2 ppg instead of 2.5 ppg S CATION TREATMENT REPORT Date 27-AUG-4~- _ District Kenai F.Receipt 121264640 Customer Teck Caninco Alaska Inco_pr orated Lease North Basin No. 2 Well Name North Basin No. 2 Field DeLong_Mountains _ Location- Sec. 17-T31N-R18W County De Lang Mts _ State Alaska Stage No 1 WTI Apl ` -API 50073200030000 ____ WELL DATA Well Type: NEW Well Class: GAS Depth TD/PB: 2950 Formation: Wdverine Shale Geometry Type Tubular Type OD Weight ID Grade Top Bottom I Pert Intervals TUBULAR CSG 5.5 15.5 4.95 0 2950 Top Bottom SPF Diameter 1555 1575 2 .6 1690 1710 2 .6 Packer Type Packer Depth FT TREATMENT DATA LIQUID PUMPED AND CAPACITIES IN BBLS. Fluid Type Fluid Desc Pumped Volume{Gals) Prop. Description Volume Pumped(Lbs) PAD Water 3,570 Sand, White, 20(40 13,198 Tubing Cap. 0 TREATMENT FLUID Water 10,080 Casing Cap. 37 Total Prop Qty: 13,198 Annular Cap. 0 Open Hole Cap. 0 Fluid to Load 0 Pad Voume 85 Previous Treatment NA _ Previous Production NA Treating Fluid 240 Hole Loaded WithFresh Water ___ Treat Via: Tubing [ using ~nul. tubing & Anul. ^ Flush 36 Ball Sealers:__~__ In_ _ 0 Stages Type _ __ Overflush -1 Au~dliary Materials SEE REC. Fluid to Recover 361 PROCEDURE SUMMARY Time Surtace Slurry Sluny Rate AM/PM Treating Pressure-Psi BBLS. Pumped BPM Comments STP Annulus Stage Total 13:21 260 0 86 0 24 O en Well Head/ Start Pad 13:30 1254 0 86 86 24 Start 1# 20/40 White 13:31 1187 0 122 24 1# 20/40 on Perfs. 13:33 1325 0 98 171 24 Start 1.5# 20/40 W hite 13:35 1345 0 208 24 1.5# 20140 W hite on Perfs. 13:37 1418 0 56 269 24 Start 2# 20/40 W hite 13:39 1400 0 306 24 2# 20140 W hite on Perfs. 13:40 1493 0 36 325 24 Start Flush 13:42 1489 0 361 24 Shut Down ISDP-886 13:43 1 min. si-831 13:48 5 min. si-747 13:53 10 min. si-698 13:58 15 min. si-672 Treating Pressure Injection Rates Shut In Pressures Customer Rep. Matt Belgum Minimum 1187 Treating Fluid 24 ISDP 886 BJ Rep. David Archuleta Maximum 1493 Flush 24 5 Min. 747 Job Number 121264640 Average 1350 Average 24 10 Min. 698 Rec. ID No. 100190989 A Operators Max. Pressure 15 Min. 672 Distribution 2500 Final 672 In 15 Min. Flush Dens. Ib./gal. 8.34 Report Printed on: nu9llst 2>. <C105 5:30 PtA .1r~0~a ~ ~ BJ Services JobMaster Program Version 3.00 . Job Number: 121264640 Customer: Teck Cominco Alaska Incor Well Name: NB-02 (3rd stage) PRC Chart - Frac ]AAA AA BJ Services Job Start: Saturday, August 27, 2005 ~ ~ BJ Services JobMaster Program Version 3.00 . Job Number: 121264640 Customer: Teck Cominco Alaska Incor Well Name: NB-02 (3rd stage) Nolte Plot 10 40 1000 10 - X:8.21894 Y:371.568 S:-1.15 i~ rJ~' 30 ~~ I ,~ .-. ~ .-. ~ N - ~, ~ _ E -- as c i ~ N a a ~ L N - ~ 5 i - v 5 ~ ~ 20 +; L ~ c ~ a. ~ `., ~ ~ ~ ~ m Z in ~~ ~ I I %' ~ ;i ~ ~ ~ 10 ~ ~ ~ i L ~ ~~ 100 0 ,~ - - ~+ _ ~,,w~.sy_ ~4~„~., 0 0 i , 10 3 0 Elapsed Time (min) BJ Services Job Start: Saturday, August 27, 2005 900 885 IS~P 870 855 840 825 810 ~ 795 ~ 780 ~-1 765 V] ~ 750 a 735 ~ 720 ~-I--~ 705 690 675 660 645 630 615 600 0 Re ression Analysis (NB02- Stage #3) g 200 - - - - -- 190 5UI'taCe ~T~55UI-e' _- G dP/dG 180 Pump Time = 16.3533 Delta TC = 5.37456 ,170 0.2 'C i Surface ISIP = 886.857 I, Surface Closure Pres. = 739.429' BH Closure Pres. = 1623.43 Net Pressure = 147.429 Efficiency* = 0.209752 Residual = 3.18288 Slope 1 = -246.2 Slope 2 = -88.4384 160 150 140 ' 130 ~ 1zo 110 V 100 a -- - 90 r M~ v 80 70 -r- ----- - 60 50 40 30 20 10 0 0.8 1.0 0.4 0.6 Nolte G Time MinFrac - N802-3.8/27/2005 ~ ~ BJ Services JobMaster Program Version 3.00 . Job Number: 121264640 Customer: Teck Cominco Alaska Incor Well Name: NB-02 (3rd stage) -0 Desi n 355.0 16207 80.0 84.0 98.0 56.0 ;37. MD=1555 ft, Slurry/Sand are bbl/lbm Slurry Sand 01. Pad 02. 1st Conc. 20/40 Wh 03. 2nd Conc.20/40 Wh 04. 3rd Conc. 20/40 Wh (~~. ~=~U~t-i BJ Services Job Start: Saturday, August 27, 2005 Frac Data Summary Customer: Teck Cominco Customer Rep: Steve Bumgardner WeIU Field NBO-2 Job Date: 27-Aug-OS Size/wt Len th bbl/ft bbls Casin 5 lit" 15.5# 1130 0.0238 26.9 ~~ Formation: W~rine Shale IntervaUStage: Stage 4 - 4 BHST: 68°F B7 Rep: David Archuleta / Gabriel Coria 1 To Perf ~ 1130 1130 ft Bottom Pcrf 1230 1230 ft Mid Zone 1180 1180 ft Gross lnterval 100 ft Net Interval 40 ft Fluid SG i HH 1 512 si Shots/foot 6 240 holes Size ~ 0.60 inch 0.0 0.0 0.0 0.0 Volume to Top Perf 26.9 Main In'ection Frac Volume to fill 0 STP 1490 Rate 24 FG 1.05 Volume 338 ET(i`;Startu 4.5 ET~ci?Shutdown 2.1.0 Peemp Time 16.5 Break ressurc 2120.0 1S1P 730 1 min S1P 690 5 min S1P 616 10 min S1P 577 15 min SIP 550 Closure time 4.9 Pclosure(surE) 614 FG closure 0.95 F.fficiencv 20%i STP( si) 1010 880 838 790 Rate(b m) 24 13.5 ll 7.6 ~. Program 15 540 lbs Computer , 13 653 Ibs 2.65 SG Blender , 13 653 Ibs 0.0452 Ibsibbl BH Sand , 653 Ibs 13 Dirty bbls 355 Placed , 88%, b deli n Clean bbls 338 Comments: _Total sand pumped after 4 stages completed: 57290 lbs Total water pumped after 4 stages completed : 1834 bbls Total water returned after 4 stages completed :849 bbls Total water in formation :985 bbls 0 ~ 0 ~ lnj. ~ ~ Ld Holc 1 1 80 Pad 80 Pad 2 41 0.5 41 0.5 3 63 1 64 1 e 4 76 2.0 p 79 2.0 ; 5 67 2.5 64 2.5 1 6 27 Flush 27 Flush Start Pumping ~ 5:52 PM End Pumaln~ (a 6:10 P.M I TION TREATMENT REPORT Date 27-AUG-05 _ Lease North Basin No. 2 Field DeLong Mountains County De Long Mts District Kenai State Alaska F.Receipt 121264642 Customer_ Teck Cominco Alaska Inco~r orated _ Well Name_ North Basin No. 2 _ Locafion_ Sec.17-T31N-R18~V _ Stage No 1 Well API _ -API 50073200030000 _ WELL DATA Well Type: NEW Well Class: Geometry Type Tubular Type OD Weight ID TUBULAR CSG 5.5 15.5 4.95 Packer Type _ Packer Depth GAS Grade Top 0 FT Depth TD/PB: 2950 Formation: wolverine shoe Bottom ~ Perf Intervals 2950 Top Bottom SPF Diameter 1130 1150 6 .6 1210 1230 6 .6 TREATMENT DATA Fluid Type Fluid Desc Pum ed Volume(Gals) Prop. Description Volume Pumped(Lbs) LIQUID PUMPED AND CAPACITIES IN BBLS. p PAD Water 3,360 Sand, White, 20/40 TREATMENT FLUID Water 10,458 revious Treatment ~ NA _ Previous Production Hole Loaded With_Fresh Water ` Treat Via: Tubing [using ~nul. Ball Sealers:____~___ In___~_Stages Type - - AuXlliary Materials SEE REC. 13,653 Total Prop Qty: 13,653 A - Dubing & Anul. ^ ___ Tubing Cap. 0 Casing Cap. 27 Annular Cap. 0 Open Hde Cap. 0 Fluid to Load 0 Pad Voume 80 Treating Fluid 249 Flush 26 Overflush -1 Fluid to Recover 355 PROCEDURE SUMMARY Time ~/pM Treating Pressure-Psi Surface Slurry BBLS. Pumped Slurry Rate BPM Comments STP Annulus Stage Total 17:48 100 0 80 0 24 O n well head( start ad 17:51 1370 0 27 24 Pad on Perfs. 17:53 1143 0 41 80 24 Start .5# 20/40 W hite 17:54 1098 0 107 24 .5# 20/40 on Perfs. 17:55 1100 0 64 121 24 Start 1# 20/40 W hite 17:56 1096 0 148 24 1# 20/40 W hite on Perfs. 17:58 1066 0 80 185 24 Start 2# 20/40 W hite 17:59 1040 0 212 24 2# 20/40 W hite on Perfs. 18:01 1026 0 63 265 24.1 Start 2.5# 20/40 W hite 18:02 998 0 292 24.1 2.5# 20/40 W hite on Perfs. 18:04 1010 0 26 329 24 Start Flush 18:05 730 0 355 0 Shut down ISDP-730 18:06 1 Min.-690 si 18:11 5 Min.-616 si 18:16 10 Min.-577 si 18:21 15 Min.-550 reating Pressure Injection Rates Shut In Pressures Customer Rep. Matt Belgum Minimum 998 Treating Fluid 24 ISDP 730 BJ Rep. David Archuleta Maximum 1143 Flush 24 5 Min. 616 Job Number 121264642 Average 1050 Average 24 10 Min. 577 Rec. ID No- 100190989 A Operators Max. Pressure 15 Min. 550 Distribution 2500 Final 550 In 15 Min. Flush Dens. Ib./gal. 8.34 Report Frlnted on'. august 17. 2005 9:52 PM JrBOGO ~ ~ BJ Services JobMaster Program Version 3.00 . Job Number: 121264642 Customer: Teck Cominco Alaska Incor Well Name: NB-02 (4 th stage) 3000x- 40 30 c. " J00 a H = m it ~ ° ' ~ a - .. `° 3 J~ m 20 w ~ ~ a ~ v ~ 1000 ~- a N 10 0 PRC Chart - Frac 5 ~0 4 ~ N ' O 1000 °o ::+ 3 ~ ~ N ~ + -. ~ ~ tN a ca ~ N ~ ` = m a 2 H H a c 2000 ~a = m 1 0 ~ 3000 BJ Services Job Start: Saturday, August 27, 2005 0 0 10 20 Elapsed Time (min) 1 ~ BJ Services JobMaster Program Version 3.00 Job Number: 121264642 Customer: Teck Cominco Alaska Incor Well Name: NB-02 (4 th stage) Nolte Plot 60 10 10000 10 I 1000 .-. 40 .-. ra - -- ~ `~ --~- fl i L -- - -- -- _ - -- - .__-- _ - ~ v i _ a N I ~+ ~ 5 ~ c ~ ~ ~ ~ ~ L Q. ~ _ ~ -.. ~ - -.n.... ~. ~ - _ - - _. _ -~ . _ ,. ,.. ~ N ~-+ Z 100 = I ~ 20 ~ in m r I ~ ~" it i 10 0 - __ _~ L_~.~~_ _- :. _ ..0 0 10 Elapsed Time (min) BJ Services Job Start: Saturday, August 27, 2005 8~ 785 770 Regression Analysis (NB02- Stage #4) Surface Pressure /dG ', C ~._ _-.-. t. _ Pump Time = 16.1524 Delta TC = 4.93703 Surface ISIP = 731.478 Surface Closure Pres. = 614.012 BH Closure Pres. = 1125.34 Net Pressure = 117.466 Efficiency* = 0.199445 Residual = 2.51202 Slope 1 = -227.057 Slope 2 = -80.5118 ,~ 0.2 0.4 0.6 0.8 Nolte G Time 1.0 1.2 740 725 ~ S ~ P 710 . r.., v~ ss5 ~ s8o 665 L/] V1 ~ 650 p"~ 635 ~ 620 ~I--I 605 590 575 560 545 530 515 ~ 500 0 Mi nFrac - N602-4 - 8/2712005 ~ ~ BJ Services JobMaster Program Version 3.00 Job Number: 121264642 Customer: Teck Cominco Alaska Incor Well Name: NB-02 (4 th stage) ~. MD=1130 ft, Slurry/Sand are bbl/lbm - 0 Design Actual Stage 354.0 15548 80.0 41.0 63.0 76.0 07.0 27.0 - 1000 355.1 ~ 14046 80.0 41.1 63.8 79.6 ,::~ 1 26.6 Slurry Sand 01. Pad 02. 1st Conc. 20/40 Wh 03. 2nd Conc.20/40 Wh 04. 3rd Conc. 20/40 Wh 05. 4~i~ Cor~i~. ~.U~`40 1~'~'h 06. FLUSH BJ Services Job Start: Saturday, August 27, 2005 T -~~ i ~ ~~~~~ E ~ P SE,~VIC£~, I~IC. • • ~,p7 September 21, 2005 Alaska Oil and Gas Conservation Commission 333 West 7~` Avenue, Suite 100 Anchorage, Alaska 99501 Attention: Tom Maunder, P. E., Petroleum Engineer Re: Weekly Status Report, Teck Cominco Alaska Incorporated Week of September 18-September 24, 2005 Wells Nos. NB-O1 ''` ~1B-02 Dear Mr. Maunder: Please find attached the above referenced weekly status report. If you have any questions, please contact the undersigned at 907 258 3446 at your convenience. Sincerely P •~. .'~ • R. C. Gardner Fairweather E & P Services, Inc. For Teck Cominco Alaska Incorporated Attachment Cc: Jerry Booth, Teck Cominco 2000 East 88th Avenue • Anchorage, Alaska 99507 • (907) 258-3446 • FAX (907) 279-5740 650 North Sam Houston Parkway East, Suite 505 • Houston, Texas 77060 • (281) 445-5711 • FAX (281) 445-3388 ~ ~ • Weekly Status Report Teck Cominco Alaska Incorporated Red Dog Shallow Gas Exploration Project Wells Nos. NB-O1 and NB-02 Week of September 18-September 24, 2005 Well No. NB-O1 PTD 205-095 Report Period 0001 hrs September 18 to 2400 hrs September 24, 2005 Continue de-watering well, and assessing gas production potential. Test results will be submitted with Completion Report. Well No. NB-02 PTD 205-096 Report Period 0001 hrs September 18 to 2400 hrs September 24,2005 Continue de-watering well, and assessing gas production potential. Test results will be SUViia.~iP.(# ~~yith ('nm..,lotinll ~2_afnrt Report Submitted by: ~~. R. C. Gardner Fairweather E & P Services, Inc. -. E & P SERVICES, INC. September 19, 2005 Alaska Oil and Gas Conservation Commission 333 West 7~' Avenue, Suite 100 Anchorage, Alaska 99501 Attention: Tom Maunder, P. E., Petroleum Engineer • Re: Weekly Status Report, Teck Cominco Alaska Incorporated Week of September 11-September 17, 2005 Wells Nos. NB-01 and NB-02 Dear Mr. Maunder: Please find attached the above referenced weekly status report. If you have any questions, please contact the undersigned at 907 258 3446 at your convenience. Sincerely .~ . ~~~ R. C. Gardner Fairweather E & P Services, Inc. For Teck Cominco Alaska Incorporated Attachment Cc: Jerry Booth, Teck Cominco 2000 East 88th Avenue • Anchorage, Alaska 99507 • (907) 258-3446 • FAX (907) 279-5740 650 North Sam Houston Parkway East, Suite 505 • Houston, Texas 77060 • (281) 445-5711 • FAX (281) 445-3388 c Weekly Status Report Teck Cominco Alaska Incorporated Red Dog Shallow Gas Exploration Project Wells Nos. NB-Ol and NB-02 Week of September 11-September 17, 2005 Well No. NB-Ol PTD 205-095 Report Period 0001 hrs September 11 to 2400 Ilrs September 17, 2005 Continue de-watering well, and assessing gas production potential. Test results will be submitted with Completion Report. Well No. NB-02 PTD 205-096 .~ Report Period 0001 hrs September 11 to 2400 hrs September 17,2005 Continue de-watering well, and assessing gas production potential. Test results will be submitted with Completion Report. Report Sub ' ted by: _- . R. C. Gardner Fairweather E & P Services, Inc. ,; ~ t '1 1 E ~ a~ J~~ Il~li~~,'IV Ii. September 12, 2005 Alaska Oil and Gas Conservation Commission 333 West 7~' Avenue, Suite 100 Anchorage, Alaska 99501 Attention: Tom Maunder, P. E., Petroleum Engineer Re: Weekly Status Reports, Teck Cominco Alaska Incorporated Week of August 28-September 3, 2005, and Week of September 4-September 10, 2005 Wells Nos. NB-O1 and` ''tl2 " Dear Mr. Maunder: Please find attached the above referenced weekly status reports. If you have any questions, please contact the undersigned at 907 258 3446 at your convenience. Sincerely ~~ e~-~~ R. C. Gardner Fairweather E & P Services, Inc. For Teck Cominco Alaska Incorporated Attachment Cc: Jerry Booth, Teck Cominco 2000 East 88th Avenue • Anchorage, Alaska 99507 • (907) 258-3446 • FAX (907) 279-5740 650 North Sam Houston Parkway East, Suite 505 • Houston, Texas 77060 • (281) 445-5711 • FAX (281) 445-3388 • • Weekly Status Report Teck Cominco Alaska Incorporated Red Dog Shallow Gas Exploration Project Wells Nos. NB-O1 and NB-02 Week of August 28-September 3, 2005 Well No. NB-Ol PTD 205-095 Report Period 0001 hrs August 28 to 2400 hrs September 3, 2005 Selected Kivalina formation perforation intervals for frac and production test. Sequentially perforated and fraced the following intervals: Stage I (@ 6 jspf): 2640'-2660', (Total = 20') Stage II (@ 6 jspf): 2380'-2400'; 2410'-2450'; (Total=60') Stage III (@ 2 jspf): 2070'-2080'; 2110'-2120'; 2170'-2180'; 2200'-2210'; 2250'- 2270'; (Total=70') Stage IV (@ 6 jspf): 1820'-1840'; 1860'-1900'; (Total=60') Hauled off flowback water, rigged down Precision Wireline and BJ frac equipment, and demobed same to Port of Kivalina. Drilled out composite frac zone isolation plugs and cleaned out hole. Ran 2 3/8" tubing, pump and rods. Moved rig from NB-O1 location to NB-O2. Awaiting installation of production equipment. Well No. NB-Q2 PTI~! 2(35-flab Report Period 0001 hrs August 28 to 2400 hrs September 3,2005 Completed frac operations, hauled off flowback water, and moved Precision Wireline and BJ frac equipment to NB-O1 location. Removed frac valve on wellhead and installed production head. Awaited return of rig from NB-01 to drill out composite frac zone isolation plugs. Rig back on NB-02 on 9/1/05. Drilled out isolation plugs and cleaned out hole Ran 2 3/8" tubing, pump, and rods. Prep to rig down and move out rig in preparation for installation of production test equipment. Report Submitted b R. C. Gardner Fairweather E & P Services, Inc. • Weekly Status Report Teck Cominco Alaska Incorporated Red Dog Shallow Gas Exploration Project Wells Nos. NB-Ol and NB-02 Week of September 4-September 10, 2005 Well No. NB-Ol PTD 205-095 Report Period 0001 hrs September 4 to 2400 hrs September 10, 2005 Removed frac valve on wellhead and installed production head. Installed pump jack, generator, and production test equipment. Started to de-water well. Well No. NB-02 PTD 205-096 Report Period 0001 hrs September 4 to 2400 hrs September 10,2005 Installed pump jack, generator, and production test equipment. Started to de-water well. Report Submitted by: r .c. _. R. C. Gardner Fairweather E & P Services, Inc. ~ ~, August 30, 2005 Alaska Oil and Gas Conservation Commission 333 West 7~' Avenue, Suite 100 Anchorage, Alaska 99501 Attention: Tom Maunder, P. E., Petroleum Engineer Re: Weekly Status Report, Teck Cominco Alaska Incorporated Week of August 21-August 27, 2005 Wells Nos. NB-O1 and NBI-02 Dear Mr. Maunder: `~ ~ S ' ~ Please find attached the above referenced weekly status report. • If you have any questions, please contact the undersigned at 907 258 3446 at your convenience. Sincerely ~~ :r ~~ ~... R. C. Gardner Fairweather E & P Services, Inc. For Teck Cominco Alaska Incorporated Attachment Cc: Jerry Booth, Teck Cominco 2000 East 88th Avenue • Anchorage, Alaska 99507 • (907) 258-3446 • FAX (907) 279-5740 650 North Sam Houston Parkway East, Suite 505 • Houston, Texas 77060 • (281) 445-5711 • FAX (281) 445-3388 -~ , • Weekly Status Report Teck Cominco Alaska Incorporated Red Dog Shallow Gas Exploration Project Wells Nos. NB-01 and NB-02 Week of August 21-August 27, 2005 Well No. NB-O1 PTD 205-095 Report Period 0001 hrs August 21 to 2400 hrs August 27, 2005 Ran cased hole neutron log from 2674 ft to 0015 ft. Selected Kivalina formation perforation intervals. Awaiting perforating and frac equipment working at Well No. NB-02 at close of report period. Well No. NB-02 PTD 205-096 Report Period 0001 hrs August 21 to 2400 hrs August 27,2005 Ran cased hole neutron log from 2945 ft to 0030 ft. Perforated 2895 ft to 2940 ft interval for injection test to assess interval as possible future produced water disposal zone. Broke down perfs at 2077 psi. Ran injection test with water as test fluid. Interval would not accept fluid below frac pressure. Selected Kivalina formation perforation intervals for frac and production test. Sequentially perforated and fraced the following intervals: Stage I (@ 6 jspf): 2895'-2915'; 2920'-2940'; 2810'-2830'; 2750'-2770'; 2690'- 2710'. Stage II (@ 2 jspf): 2170'-2180'; 2125'-2135'; 2070'-2080'; 2020'-2030'; 1900'- 1920' . Stage III (@ 2 jspf): 1690'-1710'; 1555'-1575'. Stage IV (@ 6 jspf): 1210'-1230'; 1130'-1150'. Frac reports to be submitted with Report of Sundry Operations. Continuing with perforating and frac operations at close of report period. Report Su fitted b R. C. Gardner Fairweather E & P Services, Inc. • ~-- '~~ ~~ I ~ + ' ~ ~ A'"? ' ~ ~ ~aa~ ~ ~ FRANK H. MURKOWSKI, GOVERNOR ~~ OIJ4 ~ ~a7 333 W. 7"' AVENUE, SUITE 100 COI~TSERQATIOIQ CODIDIISSIOrIT ,~~ ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 R.C. Gardner Senior Technical Advisor Teck Cominco 3105 Lakeshore Drive, Building A Anchorage, Alaska 99517 Re: Exploration NB-02 Sundry Number: 305-247 Dear Mr. Gardner: Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. Please provide at least twenty-four (24) hours notice for a representative of the Commission to witness any required test. Contact the Commission's petroleum field inspector at (907) 659-3607 (pager). As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on 'day or weekend. A person may not appeal a Commission decisi to S erior Court unless rehearing has been requested. ~--~ K. N DATED this!' da of Au ust, 2005 Y g Encl. • STATE OF ALASKA " ~~ ©~ ~'~. ;~~~~~~ -~ ' '~ ~ - ALA~ OIL AND GAS CONSERVATION COM ~~ ION ~ ~ ~ _, L;1~,~j ~ • APPLICATION FOR SUNDRY APPROVAL ~`~~ '~ j~ ~ 20 AAC 25.280 ~ ~~~, i,, ~ ~ ~ ~ " 1. Type of Request: Abandon Suspend Operational shutdown Perforate ~~ Waiver ,., ~1nr~#ftr Dispos. ~ Alter casing ^ Repair well ^ Plug Perforations ^ Stimulate ime Extension ^ Other ^ Change approved program ^ Pull Tubing ^ Perforate New Pool ^ Re-enter Suspended Well ^ 2. Operator Name: TECK COMINCO 4. Current Well Class: 5. Permit to Drill Number: ALASKA INCORPORATED Development ^ Exploratory Q 205-096 ;`~ 3. Address: 3105 LAKESHORE DR. BLDG A Stratigraphic ^ Service ^ 6. API Number: ANCHORAGE AK 99517 3 00 , - 50-073-2000 7. KB Elevation (ft): 910 FT. 9. Well Name and Number: NB-02 --~, 8. Property Designation: 10. Field/Pools(s): NANA REGIONAL CORPORATION EXPLORATORY 11. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD (ft): Effective Depth TVD (ft): Plugs (measured): Junk (measured): 3110 3110 3076 3076 NONE NONE Casing Length Size MD TVD Burst Collapse Structural Conductor 75 13 3/8 75 75 Surface 480 8 5/8 480 480 2950 1370 Intermediate Production 3076 51/2 3076 3076 4810 4040 Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): NONE NONE NONE NONE Packers and SSSV Type: Packers and SSSV MD (ft): NONE NONE 12. Attachments: Description Summary of Proposal ~ 13. Well Class after proposed work: Detailed Operations Program ^ BOP Sketch ^ Exploratory ^~ Development ^ Service ^ 14. Estimated Date for 15. Well Status after proposed work: Commencing Operations: 8/27/2005 Oil ^ Gas ~ Plugged ^ Abandoned ^ 16. Verbal Approval: Date: WAG ^ GINJ ^ WINJ ^ WDSPL ^ Commission Representative: EXPLORATORY 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact R.C. GARDNER Printed Name R.C. GARD R (907) 258-3446 Title SR. TECHNICAL ADVISOR Signature Phone Date 24-Aug-05 COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: ~v ~ _ a y~ Plug Integrity ^ BOP Test ^ Mechanical Integrity Test ^ Location Clearance ^ Other: Ai~ 5t-~cC3.~~ s'~C ~~~ ACS ~5~ ~ ~ C~ ~~ I~SY~ DAIS AFL AUG 3 Q 2UU5 Subsequent F R ed: u~ 4~~ ®~ +1JC `~ ~~~~~~' C-Q ~}~~ CaS P~~~®vS`'i~ Approved by: COMMISSIONER THE COMMISSION D t ~~ ~~ a e: Form 10-403 ev' d 12/2003 INSTRUCTIONS ON REVERSE Submit i Duplicate f Teck Cominco Alaska Incorporated Well No. NB-02 PTD: 205-096 Summary Perforating and Frac Schedule Proposed Perforations Picked perforations for NB-02 using Neutron, Sonic, Gamma Ray, and CBL. Plan to shoot then frac the following: Stage I - 2895'-2915', 2920'-2940' 6 jspf, 120 shots Perf: 2810'-2830', 2750'-2770', 2fr90'-2710' (60') 6 jspf, 366 shots. Set composite bridge plug (CBP) @ 2550' Stage II - Perf 2170'-2180', 2125'-2135', 2070'-2080', 2020'-2030',1900'-1920' (60'} 2 jspf, 130 shots, set CBP @ 1800'. Stage III -Pert: 1690'-1710',1555'-1575' (40'), 2 jspf, $4 shots. Set CBP @ 1400'. Stage IV - Perf 1210'-1230',1130'-1150' (40'), 6 jspf, 244 shots. Each stage will be hydraulically fractured according to the following schedule: ARI FA97FRAC - Advanced Resources Intematlonal, mc. Red Dog Frac Design Formation Pfo stiles Sand er Foot Desl n Parameters E 600,000 /psi 72 Iblft Fracture Gradient O.S6 psifR k 0.3 and Zone Depth 2,815 R m 0.03 sec Target Sand Base ~scosiry 1 cp Frac Mult 1.0 19,500 Ibs Proppant Specific Gravity 2.65 Pres. Grad. 0.433 Pa ft - Specific Density 22.10 Ibmlgal _ Perf Diameter 0.50 In. d tacement Number Perfs 480 TbI DlCsOD ft Facts' bbl Pad 53 % - Tbg Depth 2.375 - 0.0178 - Pump Ra[e 25 bpm Frm Depth 4.892 2, 815.0 OA232 65.4 Fracture Height 145 ft Total F" 3 Fracture Treatment Sche dule Clean Sand Slurry Stage Cum Stage Cum Stage Cum Surf. Hyd Time Rate Conc. Rate Water Water Slurry Slurry Sand Sand Press. HP Sta a tmini bpm4 sa) b m bl b b61 bbl Ib lb si R pAD 12.00 25.0 - 25.0 300.0 300 300 300 - - 1,427 874 STAGE 1 2.60 24.4 0.50 25.0 63.5 363 65 365 t,333 1,333 1,391 852 STAGE2 2.60 23.4 -'' 1.50 25.0 60,9 424 65 430 3,335 5,167 1,323 810 STAGE 3 2.75 22,9 2.00 25.0 63.0 487 69 499 5,296 10,463 1,291 791 STAGE 4 - 25.0 - 25.0 487 - 499 - 10,463 1 427 874 3TAGE5 - 25.0 - 25.0 - 487 - 499 - 10.463 1,427 874 STAGE 6 - 25.0 - 25.0 487 - 499 - 10,463 1.427 374 STAGE 7 25.0 - 25.0 - 487 - 499 - 10,463 1,327 374 STAGE 8 25.0 25.0 - 487 499 - 10,463 1,427 874 DISP. 2.55 25A - 25.0 64 551 64- 562 - 10.463 1,427 674 22.50 551 562 10,463 4 t • Weekly Status Report Teck Cominco Alaska Incorporated Red Dog Shallow Gas Exploration Project Wells Nos. NB-O1 and NB-02 Week of August 14-August 20, 2005 Well No. NB-O1 PTD 205-095 Report Period 0001 hrs August 14 to 2400 hrs August 20, 2005 Ran CBL-good cement bond through entire cemented interval. Otherwise, well idle; awaiting arrival of frac equipment.. Well No. NB-02 PTD 205-096 Report Period 0001 hrs August 14 to 2400 hrs August 20,2005 Air-hammer drilled 7 7/8" hole to 2601'. Made trip to change to tri-cone due to increased water flows. Air-rotary drilled 7 7/8" hole 3110 ft. Geologists determined that 3110 ft is TD, as hole as been advanced sufficiently into melange. Conditioned hole for logs. RIH with triple combo, but encountered bridge at 2634 ft. Logged from 2634 to shoe of surface casing. Made clean-out run and reamed from bridge to TD. Subsequent logging attempt still unable to get past bridge at 2634 ft. Decision made to log lower section of hole with neutron tool after casing run. Cleaned out hole for casing. Ran 142 joints of 5 1/z", 15.5 lb, J-55, LT&C, Range 1 casing to 3076 ft. Had to wash casing down from bridge at 2634. Cemented casing with 146 sxs Cold Set III cement, followed by 295 sxs Type I cement. Displaced cement with water and bumped plug. Had good returns of formation water at surface during cement job, but no returns of cement. WOC 12 hrs. Installed 5 '/2" casing head and 3000 psi wp frac valve. Ran CBL. Found good cement bond through and above all zones of interest Top of cement at 420 ft. Prep to run cased hole neutron log at report time. Encountered numerous water-filled fracture zones in 7 7/8" hole section. Formation: Kivalina formation, shale and siltstone, black, calcareous Report Submitted ~~ ~~~ R. .Gardner Fairweather E & P Services, Inc. ~°. E ~ P SERl11CE~,1~1C. August 24, 2005 Alaska Oil and Gas Conservation Commission 333 West 7~' Avenue, Suite 100 Anchorage, Alaska 99501 Attention: Tom Maunder, P. E., Petroleum Engineer Re: Weekly Status Report, Teck Cominco Alaska Incorporated Week of August 14-August 20, 2005 Wells Nos. NB-O1 and NB-02 Dear Mr. Maunder: Please find attached the above referenced weekly status report. If you have any questions, please contact the undersigned at 907 258 3446 at your convenience. Sincerely R. C. Gardner Fairweather E & P Services, Inc. For Teck Cominco Alaska Incorporated Attachment Cc: Jerry Booth, Teck Cominco 2000 East 88th Avenue • Anchorage, Alaska 99507 • (907) 258-3446 • FAX (907) 279-5740 650 North Sam Houston Parkway East, Suite 505 • Houston, Texas 77060 • (281) 445-5711 • FAX (281) 445-3388 Weekly Status Report Teck Cominco Alaska Incorporated Red Dog Shallow Gas Exploration Project Wells Nos. NB-01 and NB-02 Week of July 17-23, 2005 Well No. NB-0l PTD 205 0~, ~ ~~~ ~ ~~ Report Period 0001 hrs July 17 to 2400 hrs July 23, 2005 Moved in and rigged up NANA-Dynatec Rig 070-001 Spudded well at 0045 lrrs on July 17, 2005 Air-rotary drilled 12 1/a" hole to 704 ft MD Made short trip and POH for casing Prep to run 8 5/8" casing at 2400 hrs, July 23, 2005 Drilling slowed by booster compressor problems Formation: Kivalina formation, shale and siltstone, black color, calcareous. Well No. NB-02 PTD 205~OcL~ ~~'r(~, No Activity /a~ Report Subnutted by: . ~ ~~~ R. C. dner Fairweather E & P Services, Inc. • Weekly Status Report Teck Cominco Alaska Incorporated ~~ ~~~~ Red Dog Shallow Gas Exploration Pro ¢' ~~~ ~~~~~ ~~r'SS^~ss~~Et~ ~~~o~~ Wells Nos. NB-01 and NB-02 Week of July 24-3 0, 2005 Well No. NB-O1 PTD 205-095 Report Period 0001 hrs July 24 to 2400 hrs July 30, 2005 Ran 31 jts, 8 5/8", 24 lb, K-55, ST&C, Range 1 casing to 694 ft. Base of permafrost at approximately 620 ft. Cemented casing with 614.5 sx Cold Set II. Displaced cement with 42 bbls water, had good cement returns to surface. Cut off conductor at G.L., nipple up 8 5/8" starting head, test diverter, RIH and tag cement at 647 ft. Drilled out cement and air-rotary drilled 7 7/8" hole to 2014 ft @ 2400 hrs, July 30,2005. Drilling ahead Hole made approximately 13 gpm water through drilled interval. Primary compressor and booster handled water OK. Drilling slowed by intermittent booster compressor mechanical problems. Formation: Kivalina formation, shale and siltstone, black color, calcareous. Well No. NB-02 PTD 205-096 No Activity Report Submitted by: .~~' o ~ t I ~~ R. C. ardner Fairweather E & P Services, Inc. • • • Weekly Status Report Teck Cominco Alaska Incorporated Red Dog Shallow Gas Exploration Project Wells Nos. NB-O1 and NB-02 Week of July 31-August 6, 2005 Well No. NB-Ol PTD 205-095 Report Period 0001 hrs July 31 to 2400 hrs August 6, 2005 Air-rotary drilled 7 7/8" hole to 2745 ft. Geologists determined that desired section of Kivalina formation had been penetrated to test gas potential after frac. Hole TD at 2745 ft. Made wiper trip and ran wireline logs. Ran triple combo from shoe of surface casing to TD, and gamma ray through surface casing interval. Cemented casing with 146 sx Cold Set LII cement followed by 237 sxs Type I cement. Displaced cement with 65 bbls water. Good cement returns to surface. WOC 12 hrs, RIH and tagged top of cement at 2714 ft. Begin rig move to NB-OZ location. Hole made approximately 18 gpm water while drilling approaching TD. Formation: Kivalina formation, shale and siltstone, black color, calcareous. Well No. NB-02 PTD 205-096 Moved in and rigged up Major Drilling Rig 070-001. Installed and tested diverter. Cleaned out conductor to shoe and found shoe collapsed (probably due to over-zealous driving during installation}. Milled out shoe and re-cemented shoe. Preparing to resume drilling surface hole. Report Submitted by: R. G Gardner Fairweather E & P Services, Inc. Weekly Status Report Teck Cominco Alaska Incorporated Red Dog Shallow Gas Exploration Project r: ,, ~~" ~~,'~ {~ ~tluu . ~ ~ , ~ ~~~, w u~, Wells Nos. NB-Ol and NB-02 Week of August 7-August 13, 2005 Well No. NB-Ol PTD 205-095 Report Period 0001 hrs August 7 to 2400 hrs August 13, 2005 Well idle-awaiting arrival of frac equipment. Well No. NB-02 PTD 205-096 ~"-' Air-rotary drilled 12 1/a" surface hole to 480 ft, at which point bit penetrated water-filled fracture zone. Water influx did not flow to the surface with compressors turned off, but with sufficient air supplied to clear the hole of water and cuttings, water migrated to the surface outside the conductor pipe. Continuing to drill under these conditions would have jeopardized the integrity of the drilling pad under the rig in a short time. Decision was made to run surface casing at 480 ft. Ran 21 joints of 8 5/8", 241b, K-55, STC, Range 1 casing. Cemented casing with 399 sxs Cold Set II cement. Displaced casing with 37 bbls water. Good cement return to surface. WOC 12 hrs. Made written report to AOGCC on reason for setting short surface string. Cu~'off conductor and installed 8 5/8" casing head. Nippled up and tested diverter. Drilled out 8 5/8" csg and float shoe. Air-hammer drilled 7 7/8"hole to 2562 ft at close of report period. Continuing to drill. Encountered numerous water-filled fracture zones in 7 7/8" hole section. Formation: Kivalina formation, shale and siltstone, black, calcareous Report Submitted by: `~ R. C. dner Fairweather E & P Services, Inc. Re: Teck Cominco Alaska Incorporated Well No NB-02 PTD No. 2... Subject: Re: Teck Cominco Alaska Incorporated Well No NB-02 PTD No. 205-096 From: Thomas Maunder <tom maunder@admin.state.ak.us> _ r--~ ~ --- Date: Wed, 10 Aug 2005 15:26:30 -0800 ~;..,~~~ `- To: Bob Gardner <bob@fairweather.com> CC: Booth Jerry SPOK <Jerry.Booth@teckcominco.com>, Matt Belgum <mbelgum@gci.net> Bob, et al: Thanks for the call and message. It would appear that you response was appropriate. Casing and cement are designed to isolate problems and it would appear that has been accomplished. Since there is essentially no risk of encountering shallow gas, setting high should not compromise drilling to .the ultimate objective. Please keep us informed of any further changes from the plan. Nothing further is needed on this matter. Tom Maunder, PE AOGCC Bob Gardner wrote, On 8/10/2005 3:19 PM: Dear Mr. Maunder: At approximately 2250 hours on Tuesday, August 9th, 2005, while air-rotary drilling 12 %4" surface hole at 480 ft in the above reference well, the bit penetrated a water filled fracture zone. The water influx did not flow to the surface with the compressors turned off, but with sufficient air supplied to clear the hole of the water/cuttings mix, a problem developed with water migrating to the surface around the outside of the conductor pipe. Continuing to drill under these conditions would have jeopardized the integrity of the drilling pad under the rig in a short period of time. The decision was made to stop drilling, and run 8 5/8" surface casing at 480 ft. The original programmed depth for the surface pipe was 700 ft. The casing run was uneventful, and the string was successfully cemented with good cement returns observed at the surface. Drilling will be resumed in 7 7/8" hole once adequate WOC time has passed. The formation that was being penetrated at the time of the incident was shale, containing numerous water-filled fracture zones, the highest of which was encountered at 260 ft. The well plan calls for the 5'/z' production casing to be cemented back to surface, which will result in the extra 210 ft of formation exposed due to the short surface string being cemented off at that time. Please contact the undersigned should you have any questions. Sincerely, R. C. Gardner Sr. Technical Advisor Fairweather E & P Services, Inc. Acting for Teck Cominco Alaska Incorporated Telephone; 907 258 3446 Cell: 907 360 3000 Fax: 907 258 5557 E-mail: bob _fairweather.com 1 of 1 8/10/2005 3:26 PM Notice of Recusal r • Subject: Notice of Recusal From: John Norman <john_norman@admin.state.ak.us> Date: Wed, 27 Ju12005 15:38:43 -0800 To: Cathy P Foerster <cathy foerster@admin.state.ak.us>, Dan T seamount <dan_seamount@admin.state.ak.us>, Kevin A Brooks <kevin_brooks@admin.state.ak.us> CC: Jody J Colombie <jody_colombie@admin.state.ak.us>, Winton G Aubert <wnton_aubert@admin.state.ak.us>, Thomas E Maunder <tom_maunder@admin.state.ak.us>, Stephen F Davies <Steve_davies@admin.state.ak.us>, Robert P Crandall <bob_candall@admin.state.ak.us>, Mary J Williamson <jape_williamson@admin.state.ak.us>, Dan T Seamount <dan_seamount@admin.state.ak.us>, John D Hartz <jack hartz@admin.state.ak.us>, James B Regg <jim regg@admin.state.ak.us>, Kari J Wheeler <kari wheeler@admin.state.ak.us> I am hereby recusing myself from participation in any matters coming before the Commission involving the shallow gas exploration program currently being conducted by Teck Cominco Alaska Incorporated, in Northwest Alaska, in the area around the Red Dog lead and zinc Mine. The reason for this recusal is that prior to joining the Commission I worked on this specific project for the operator, Teck Cominco Alaska; and, therefore, it will be inappropriate for me to participate in decisions of the Commission relative to this project. All applications, spacing hearings and other issues which may come before the Commission related to this project, including but not limited to Well Nos. NB-01 and NB-02, are to be handled exclusively by Commissioners Seamont and Foerster without any involvem1ent by me. Copies of this notice shall be placed in all relevant files. 1 ~ ~ "~ John K. Norman Chairman 1 of 1 7/28/2005 8:17 AM .. ~; ,~ ~ d ;~ ~'~ ~ ~"'+~ ~,~ ~~ s FRANK H, MURKOWSKI, GOVERNOR ~~~ OIL ~ ~ >~ 333 W. 7TM AVENUE, SUITE 100 COI~TSERQA7'IO1~T COMIrIISSIOIQ ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Mr. Rob Scott General Manager Teck Cominco Alaska Incorporated 3105 Lakeshore Drive Bldg A, Suite 101 Anchorage, AK 99517 Re: NB-02 Teck Cominco Alaska Incorporated Permit No: 205-096 Surface Location: 272' FWL, 2898' FSL, Sec. 17, T31N, R18W, KRM Bottomhole Location: 272' FWL, 2898' FSL, Sec. 17' T31 N, R 18W, KRM Dear Mr. ott• ~~ Enc sed is the approved application for permit to drill the above referenced exploration 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. This application requires waivers to four Commission requirements. Attached please find a tabular listing of the requested waivers, a citation for the relevant regulation, and an analysis of each request. Based on the information provided, the Commission approves these waivers. Please note these waiver approvals are specific to NB-02. Waiver requests for other planned wells will be evaluated on a case-by-case basis. The location of this well requires an exception to regulation 20 AAC 25.055(a)(4). This permit does not authorize opening the wellbore to test or regular production, which requires issuance of a conservation order granting a spacing exception. By commencing drilling operations before receiving a spacing exception, Teck Cominco assumes the risk that a spacing exception may not be granted and that Teck Cominco may be required to plug and abandon the well without enjoying any benefit from the well. A weekly status report is required from the time the well is spudded until it is suspended or plugged and abandoned. The report should be a generalized f • • synopsis of the week's activities and is exclusively for the Commission's internal use. 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 petrole field inspector at (907) 659- 2714 or 659-3607 (pager). N DATED this day of July, 2005 cc: Department of Fish 8v Game, Habitat Section w/o encl. Department of Environmental Conservation w/o encl. Exploration, Production and Refineries Section ~ • Waiver Requested Regulation Recommendation and Discussion This ended i 1-Underbalanced 25.033(b) and . s recomm Approval of this waiver imilar air- A i drilling 25.033(1) s r. well is planned to be drilled using a drilling program has been previously employed drilling shallow wells for coalbed methane (CBM). Teck Cominco (TC) provided a core study performed at UAF designed to determine the porosity and permeability of cores obtained in nearby mineral exploration wells. The study determined that the "best" permeability in the samples examined was about 0.2 md. With such low permeability, it is most unlikely that natural flow would occur while drilling with air. TC has provided a description of the equipment to be employed. In the unlikely event of a flow, TC plans to have 1500 bbls of water in tanks on site to allow the well to be killed. Based on the submitted information, it is determined that the proposed underbalanced drilling operations can be conducted without loss of well control. Underbalanced operations are a roved er 20 AAC 25.033 i . 2-Employing a 20.035(c) and Approval of this waiver is recommended. In air- a rotating head is employed to ns ti ~°rotating head" rather , o 25.035 (h) (2) drilling opera direct return flow from the well away from the rig than a diverter. floor. A rotating head is a diverter whose design allows the annulus to be continuously sealed while drilling operations are being conducted. Based on the submitted information, it is determined that use of the proposed rotating head will provide an equally effective means of diverting flow away from the rig floor per 20 AAC 25.035 (h) 3-Not to employ a 2. 25.035 (e) and Approval of this waiver is recommended. A BOP ed to provide additional control ability if lo m i 1 gpp y p s e ) 25.035 (h) ( the hydrostatic pressure of the drilling fluid were insufficient to contain any formation pressure. The porosity and permeability studies provided by TC have shown that the rock is very "tight." Given the low perrneabilities determined, conventional flow is essentially impossible. Based on the submitted information, it is determined that equipment planned to be used by TC is appropriate for the anticipated subsurface environment and that this equipment will provide an equally effective means of well control per 20 AAC 25.035 h 1 . 4-Requiring near 25.061(a) and Approval of this waiver is recommended. The TC i " surface seismic 25.061 (c) nce. mineral prov general area is a "hard rock has conducted an extensive mineral core surreys exploration effort in the area resulting in over 100 core holes. No shallow gas or abnormal pressure hazards were encountered during this drilling ro ram. • ~ Based on the submitted information, it is determined that the mineral exploration drilling program conducted by TC is an equally effective means of determining the likelihood of potential shallow gas per 20 AAC 25.061 (c). TEM with SFD 7/12/2005 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION PERMIT TO DRILL ~n nn~ ~~ nnti ~ ~ ~~~ ~~~3 1a. Type of Work: Drill Redrill ~ Re-entry 1b. Current Well Class: Exploratory ® Development Oil `' [] Multiple one Stratigraphic Test ~ Service ~ Development Gas ~ ~nyie Zone 0 2. Operator Name: Teck Cominco Alaska Incorporated 5. Bond: Blanket Single Well ~,, BondN 1 ~ ~ 11. Well Name and Number: NB-02 3. Address:3105 Lakeshore Drive, Bldg A, St. 101 Anchorage,. AK 99517 6. Praposed Depth: , MD: 3500' TVD:3500' 12. Field/Pool(s): Exploratory 4a. location of Well (Governmental Section): r ~ J 17• Surface: '272'FWL,2898'FSL,SECI7,T~3-IN',R1~~3,K 7. Property Designation: ~ NANA Regional Corporation Top of Productive Horizon: Same 8. Land Use Permit: NANA Agreement 13. Approximate Spud Date: July 14, 2005 ' Total Depth: Same 9. Acres in Property: 66,000 14. Distance to Nearest Property: 5552 ft. 4b. Location of Well (State Base Plane Coordinates): Surface:x- 583, 714 'y_5,150, 083 Zone- 7 10. KB Elevation (Height above GL): approx. 6 feet 15. Distance to Nearest Well Within Pool: No Wells 16. Deviated wells: Kickoff depth: feet N/A Maximum Hole Angle: Vertica]iegrees 17. Maximum Anticipated Pressures in psig (see 20 AAC 25.035) Downhole: 800PSI Surface: 100PSI 18. Casing Program: Slz.. Specifications Setting Depth To^ Boµo- ~, Quantity of Cement c f or e .. sack= Hole Casing Weight Grade Coupling Length MD TVD MD TVD (including stage data) 13 3/~8 54.5 K-55 Weld 75 SURF CE 75' 75' 25s>3 ermafrost 2 1/4" 8-5-/8" 24 K-55 ST+C 700 SURF CE 700' 700' 700sx ermafrost 7.7/8" 5'i/2" 15.5 J-55 LT+C 3500 SURF CE 3500' 3500' 171sx ermafrost lus 4 OsxT e 19. PRESENT WELL CONDITION SUMMARY (To be completed for Redrill and Re-Entry Operations) Total Depth MD (ft): Total Depth TVD (ft): Plugs (measured): Effect. Depth MD (ft): Effect. Depth TVD (ft): Junk (measured): Casing Length Size Cement Volume MD TVD Stnrctural Conductor Surtace Intermediate Production Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): 20. Attachments: Filing Fee BOP Sketch Drilling Program x Time v. Depth Plot Shallow Hazard Analysis Property Plat ~ Diverter Sketch ~ Seabed Report ~ Drilling Fluid Program ~ 20 AAC 25.050 requirements 21. Verbal Approval: Corn Representative: Date 22. I hereby certify that th foregoi is true and the best of my knowledge. Contact Printed Name ( Title FpJ+~~ Signature Phone `~(v ~-C(, ~I. ate Commission Use Only Permit to Drill API Number: Number: ~~~ "d ~ 50- ~ ~~ - ~ ~ - ~ Permit Approval Date: See cover letter for o er requirements. Conditions of approval Sa ples re uired Yes ~ No ~ Mud log required Yes ~ No ®' drogen ulfide measures Yes ~ No ~ Directional survey required Yes ~~ No Other: ~ ~ea.s~:•{a~i.- ae~ tom' • ' APPROVED BY ~ r~~" Approve THE COMMISSION Date: FomT'f0-401 Re~icQd06/2004 / r bmit inDuplicate .~JC, 'B S- ~ • RED DOG SHALLOW SHALE GAS EXPLORATION PROJECT ~ ~~ Y Y o'i ~i ~ ~ Sec 12 Z Z Sec 7 Sec 8 M M H H ' ~ ~ I 1000' WeII Number NB-01 p-- w ~ ; ~ 2 2' ~ ~ B-off Sec 13 Sec 18 b~ ~ ec ~ ~j N Sec 24 Sec 19 Sec 20 f d Well Coordinates are in Alaska State Plan Zone 7 in US Survey Feet Welt Number NB-01 x= 582,242 y= 5,150,884 Well Number NB-02 x= 583,714 y= 5,150,083 • s- s • Red Dog Shallow Shale Gas Project Background and Operations Summary Teck Cominco Alaska Incorporated (Teck Cominco) plans to drill two (2) . shallow shale gas exploration wells in the North Basin Area, north of the Red Dog zinc mine in northwestern Alaska to test the potential for natural gas production from the black organic-rich shales of the Kivalina formation. The concept of de-sorbing natural gas from this formation was developed by Advanced Resources International, under contract to Tech Cominco, foiiowing extensive analyses of Kivalina cores taken from numerous core holes drilled as part of the ongoing mineral exploration work in the area. If commercial gas production can be demonstrated, the potential environmental and economic benefits gained through development of the resource would be significant, as at present the Red Dog Mine consumes approximately 18,000,000 gallons of diesel fuel annually. The first step in this exploration project will be the drilling, fracing and testing of the aforementioned two wells in 2005. If results are encouraging, three additional wells would be drilled in 2006 to complete a standard five- spot pattern, followed by an extended production test period. The attached map shows the location of the two wells scheduled for 2005 (NB-O1, and NB-02), as well as the other well locations in the five-spot pattern. Red Dog Mine Shallow Gas Testing Program 2005 North Basin Access Roads 2005 Proposed Gas Testing Well Sites 2005 Initial Test Well Sites Follow-up Test Well Sites 2005 Proposed Access Road Alignments N2005 Proposed Alignment Follow-up Program Alignment y~4,~2004 Proposed Road Alignment i ^V 300ft Creek Set-back Buffer NB2005-Gas-Test-Plan.apr 09 November 2004 a s • Teck Cominco Alaska Incorporated Summary Drilling Program Exploration Well No. NB-02 Surface Location: 272'FWL, 2898'FSL, Sec. 17, T.31N., R.18W., KRM x = 583,714 ft., y = 5,150,083 ft ASPC Zone 7 ~ Synopsis: This well will be drilled to a total measured depth of 3500ft. to test selected zones in the Kivalina formation for natural gas, and assess the potential of the Wolverine Plate, which lies below 3000ft, for the future disposal of produced water. The well is programmed as straight hole. The drilling contractor is Major Drilling of Salt Lake City, Utah. An Ingersoll -Rand RD-20 rig will be used on this well. Drilling Fluid: This well will be drilled with air using a downhole hammer. ' i Drilling Hazards: No Abnormal pressures or other drilling hazards are anticipated. Tech Cominco core hole 1107 (drilled as a mineral exploration hole) is located approximately 1350 ft. north of the NB-02 location, and penetrated the complete interval that will be encountered in the NB-02 well. Core hole 1107 was drilled without incident and without any well control equipment (none required in mineral exploration) using water as the drilling fluid. A lithologic log of core hole 1107 is attached. Casing Program Conductor: A 13 3/8" conductor will be pre-set at 75' in an 18" hole during pad construction. The conductor will be cemented from the surface. Surface Casing: Hole size -12 %4"; Casing - 8 5/8" 24# K-55, ST+C; Depth - 700' (Base of permafrost @ ~ 640' MD); Collapse: 1370psi; Burst: 2950psi Cement: 700sx Coldset II Production Casing: Hole Size,- 7 7/8"; Casing 5 %2", 15.5#, J-55, LT+C; Depth 3500' to surface; Collapse: 4040psi; Burst 4810psi; Cement: Lead - 171 sx Cold Set III, Tail - 400 sx Type I ~ • Cementing Program: See Attached Well Control: Since this well is being drilled with air, a Washington Series 2000 Rotating Control Head (Diverter) will be used from surface to TD. See attached data sheet. Shallow Gas: Shallow gas as considered in 20AAC 25.061(a) is not a factor in this well, as evidenced by numerous core hole penetrations in the North Basin as part of an extensive mineral exploration program in the area. The North Basin is not a typical petroleum province, in that the Kivalina formation overlies a mineralized zone. The gas that is the target of the well is absorbed within a dense shale body of extremely low porosity and permeability, and will at a minimum require extensive hvdraulic fracturing to liberate. Drill Cuttings and Water Disposal: Waste water from drilling operations, fracturing, and production testing will be disposed of in the Red Dog Mine tailings pond. Approval for this disposal was granted by the EPA by letter dated October 27, 2004. Since this well will be drilled with air, and no drilling mud is involved, drill cuttings are basically uncontamintated rock fragments. This material will be trucked to the Red Dog solid waste disposal site. • • Well Number NB-02 Procedure 1. Hold pre-operations safety meeting, as per established Fairweather procedures 2. Move-in and rig-up Major Drilling RD-20 rig and ancillary equipment. 3. Nipple up diverter on 13 3/8" 3M x 13 3/8" S.O.W diverter head. Function test diverter on single joint of drill pipe. 4. RIH with hammer and drilling assembly to bottom of conductor. Function test diverter. 5. Hammer drill 12 '/a" hole to 700' M.D. Sample cuttings as directed by ARI geologist. ' At 700 ft M.D. blow hole clean and P.O.O.H for surface casing. 6. Make up float shoe on 8 5/8" surface casing shoe joint. Run surface casing as directed. Rig up BJ cementers and cement surface casing as per cementing program. If cement does not circulate to surface, do top job as directed. Drain cement out of conductor/ surface casing annulus to bottom of cellar. W.O.C as directed. 7. Cut off conductor at base of cellar and install 11" 3M x 8 5/8" S.O.W diverter head on surface casing. Function test diverter on single joint of drill pipe. 8. RIH with hammer and drilling assembly to float shoe. Close diverter and pressure test casing to SOOpsi for 15 minutes. Drill out float shoe, and dri117 7/8" hole to 3500 $. M.D. Sample drill cuttings as directed by ARI geologist. At 3500' M.D., blow hole clean and P.O.O.H for logs. 9. Rig up Precision Energy Services wire line unit and run array induction, compensated sonic, gamma ray and caliper as directed. ~ 10. Make up float shoe on 5 %" production casing shoe joint. Run production casing as directed. Rig up BJ cementers and cement production casing to surface as per cementing program. Drain cement slurry out of 8 5/8" x 5 %2" annulus to base of cellar. W.O.C. as directed. • • 11. Cut off surface casing at base of cellar and recover 8 5/8" diverter head and cut off casing. Insta117 1/16" 3M w/ lockscrews x 5 %2" S.O.W. tubing head and 7 1/16" 3M x 7 1/16" bore drilling valve. 12. Rig up Precision Energy Services wire line unit and run cement bond log from T.D. to 700' M.D. If necessary to achieve zonal isolation, squeeze production casing as per supplementary program to be prepared after analysis of bond log. 13. Perforate selected zones in Wolverine plate below 3500ft. as directed by ARI geologists. Run infection test in Wolverine plate to assess potential for use as disposal zone in possible future production wells. 14. Set cement plug from TD to 3000ft. across Wolverine perforations. Prepare to perforate intervals in Kivalina formation. 15. Zones to be perforated and fraced will be selected by ARI geologists after analysis of open hole logs. Perforate selected zones and frac as per supplemental program to be prepared after analysis of open hole logs. 16. Completion and testing program will be prepared following analysis of open hole logs. • • DDH-1107 Drill Hole Geologic Summary From To Geology 0 10 No Core Recovered 10 2792.5 MLk- Kivalina limestone/shale 368-388: Kayak facies non-talc shale with Calc-arenites 566-598: Kayak facies non-talc shale with Calc-arenites 619-668: Kayak facies non-talc shale with Calc-arenites 691-713: Kayak facies no~i-caic shale with Caic-arenites 955-990: Kayak facies non-talc shale with Calc-arenites 1079-1114: Kayak facies non-talc shale with Calc-arenites 1625-1647: Kayak facies non-talc shale with Calc-arenites 1851-1882: Kayak facies non-talc shale with Calc-arenites 1980-2030: Kayak facies non-talc shale with Calc-arenites 2070-2195: Kayak facies non-talc shale with Calc-arenites 2694-2713: Kivalina-dominated Melange 2792.5 2824 Me- Melange: Multilithic: Kivalina, Siksikpuk, Ipewik 2824 2901 Mlk- Kivalina limestone/shale - 2901 2909 Me- Melange: Kivalina dominant - 2909 2926 Mlk- Kivalina limestonelshale 2926 3005 Me- Melange: Multilithic: Kivalina, Siksikpuk, Ipewik, Otuk 3005 3016 Kss- Okpikrouk sandstone/siltstone TD DDH-1107 Drill Hole Geologic Summary Date: 03-Jan-03 (Downhole Geophysical Log Available) Gas Gas Perm Perm From To Geology Sample scflT Sample Range and 0 10 No Core Recovered 10 2792.5 Mlk- Kivalina limestone/shale 368-388: Kayak facies non-talc shale with Calc-arenites 398-554 4.88 566-598: Kayak facies non-talc shale with Calc-arenites 500-2123 0.40 619-668: Kayak facies non-talc shale with Calc-arenites 547-704 2.59 691-713: Kayak facies non-talc shale with Calc-arenites 698-854 0.94 848-1004 0.94 955-990: Kayak facies non-talc shale with Calc-arenites 998-1154 0.69 1079-1114: Kayak facies non-talc shale w/ Calc-arenites 1148-1304 0.15 1298-1454 10.48 1477-1528.6 0.01 1448-1604 3.00 1625-1647: Kayak facies non-talc shale w/ Calc-arenites 1598-1754 4.54 1851-1882: Kayak facies non-talc shale w/ Calc-arenites 1748-1904 0.30 1980-2030: Kayak facies non-talc shale w/ Calc-arenites 1898-2054 2.84 2070-2195: Kayak facies non-talc shale w/ Calc-arenites 2048-2204 0.04 2106-3016 0.37 2198-2354 0.45 2348-2504 1.84 2560-2611.6 8.50 2498-2654 96.22 2694-2713:Kivalina-dominated Melange 2696-2747.6 0.03 2648-2804 0.07 2792.5 2824 Me- Melange: Multilithic: Kivalina, Siksikpuk, Ipewik 2820.5-2821 19.24 2798-2954 0.10 2824 2901 Mlk- Kivalina limestone/shale 2901 2909 Me- Melange: Kivalina dominant 2909 2926 Mlk- Kivalina limestone/shale 2926 3005 Me- Melange: Multilithic: Kivalina, Siksikpuk, Ipewik, Otuk 3005 3016 Kss- Okpikrouk sandstone/siltstone TD Skin n/a -5 n/a Golder Slug/Scan Test, Permafrost Golder Pump Test Golder Slug/Scan Test, Permafrost Golder SluglScan Test Golder Slug/Scan Test Golder SluglScan Test Golder Slug/Scan Test Golder Slug/Scan Test ARI Permeability Golder Slug/Scan Test Golder Slug/Scan Test Golder Slug/Scan Test Golder Slug/Scan Test Golder SluglScan Test Golder Pump Test Golder Slug/Scan Test Golder Slug/Scan Test ARI Permeability Golder Slug/Scan Test ARI Permeability Golder Slug/Scan Test Golder Slug/Scan Test • • Red Dog Shallow Gas Exploration Project: ffll~~~fllfl~~ Well No~ NBB-2 E & P SERVICES. INC. Cement NOTE: Exact depths and set point to be determined when drilled and casing tallied. 3/8" 54.5# K-55 conductor stalled during pad nstruction 5 ft 12'/<" Hole Base of Permafrost @ X640 ft M D ", 24# K-55 Surface Casing )ft MD " Hole rforated intervals to be :ermined from open-hole ~s. 3000 ft 5# J-55 Production teasing 3500 ft MD & TVD a+~li~"Ivi~?a`t~Y ~u~ti' ~~'~`+IiC,BSy F~~, i`S~N. ~.~, ~~~}~%~'~ I~~'~1Ad36? ~'.~7~'10 P3'C±:d02 -riV • • 1 Proposal No: 100189603A Teck Cominco Alaska Incorporated North Basin Well No. 2 TBD Rig Red Dog Mine Field De Long Mts County, Alaska May 24, 2005 Well Recommendation Prepared for: Prepared by: Bof] Gardner 1, lay (:arncr Project Manager Manager, City Sales Fairweather E & P Services, Inc. Kenai, Alaska Bus Phone: (907) 349-6518, Anchorage Email: jgarner@bjservices.com Mobile: (907) 229-6536 r,,,,"ri~r"" err POWERVISION~ F'ow~rtl'~o + l'owc~Tkr~x • Poti~cRL~!~~ Service Point: Service Representatives: Kenai, AK J. Jay Garner Bus Phone: (907) 776-4084 Manager, City Sales (907) 659-2329 Kenai, Alaska Fax: (907) 776-4087 Bus Phone: (907) 349-6518, Anchorage Email: jgarner@bjservices.com Mobile: (907) 229-6536 Gr4105 ~ 4 • Operator Name: Teck Cominco Alaska Incorporated , Well Name: North Basin Well No. 2 , Job Description: Surface Casing Date: May 24, 2005 Proposal No: 100189603A JOB AT A GLANCE Depth (TVD) 700 ft Depth (MD) 700 ft Hole Size 12.25 in Casing Size/VNeight : 8 5/bin, 24 Ibs/ft Pump Via 8 5/8" O.D. (8.097" .I.D) 24 # Total Mix Water Required 2,873 gals Spacer Fresh Water Spacer 15 bbls Density 8.3 ppg Cement Slurry CS II 696 sacks Density 15.0 ppg Yield 1.02 cf/sack Displacement Displacement 39 bbls Density 8.6 ppg Report Punted on: May 24, 2005 2:43 PM Page 1 Gt4109 ~~ ! ~ Operator Name: Teck Cominco Alaska Incorporated , Well Name: North Basin Well No. 2 Job Description: Surface Casing Date: May 24, 2005 Proposal No: 100189603A WELL DATA ANNULAR GEOMETRY ANNULAR LD. DEPTH ft (in) MEASURED TRUE VEf2TICAL 12.615 CASING ~ 75 ~ 75 12.250 HOLE ~ 700 ~ 700 SUSPENDED PIPES Float Collar set @ 620 ft Mud Density 8.60 ppg Mud Type Water Based Est. Static Temp. 32 ° F Est. Circ. Temp. 40 ° F VOLUME CALCULATIONS 75 ft x 0.4622 cf/ft 625 ft x 0.4127 cf/ft 80 ft x 0.3576 cf/ft with 0 % excess = with 150 % excess = with 0 % excess = TOTAL SLURRY VOLUME _ 34.7 cf 644.9 cf 28.6 cf (inside pipe} 708.2 cf 126 bbls Report Printetl on: May 24, 2005 2:43 PM page 2 Gr4715 • i Operator Name: Teck Cominco Alaska Incorporated `~ Well Name: North Basin Well No. 2 , Job Description: Surface Casing Date: May 24, 2005 Proposal No: 100189603A FLUID SPECIFICATIONS Spacer 15.0 bbls Fresh Water Spacer @ 8.34 ppg VOLUME VOLUME FLUID CU-FT FACTOR AMOUNT AND TYPE OF CEMENT Cement Slurry Displacement CEMENT PROPERTIES Slurry Weight (ppg) Siur r y Yi°vid (vfiuavkl Amount of Mix Water (gps) 708 / 1.0 = 696 sacks Cold Set II 39.5 bbls Displacement @ 8.6 ppg SLURRY NO. 1 14.95 1.02 4.13 1. Slurry performance to be confirmed through pilot blend testing at PRTC. Slight additive adjustments should be expected. Report Printed on: May 24, 20052:43 PM Page 3 Gr4129 • Operator Name: Teck Cominco Alaska Incorporated , Well Name: North Basin Well No. Z Job Description: Production Casing Date: May 24, 2005 Proposal No: 100189603A JOB AT A GLANCE Depth (TVD) 3,500 ft Depth (MD) 3,500 ft Hole Size 7.875 in Casing Size/V1/eight : 5 1/2 in, 15.5 Ibs/ft Pump Via 5 1/2" O.D. (4.950" .I.D) 15.5 # Total Mix Water Required 4,074 gals Spacer MCS-4D Spacer 30 bbls Density 9.5 ppg 1st Lead Slurry Lead Cement 171 sacks Density 12.2 ppg Yield 1.64 cf/sack 1st Tail Slurry Tail Cement 367 sacks Density 14.5 ppg Yield 1.48 cf/sack Displacement Displacement 81 bbls Report Printed on: May 24, 2005 2:43 PM Page 6 Gf 109 .~ • i Operator Name: Teck Cominco Alaska Incorporated Well Name: North Basin Well No Z, ~ Job Description: Production Casing Date: May 24, 2005 Proposal No: 100189603A WELL DATA ANNULAR GEOMETRY SUSPENDED PIPES Float Collar set @ 3,420 ft Mud Density 9.00 ppg Mud Type Water Based Est. Static Temp. 63 ° F Est. Circ. Temp. 50 ° F VOLUME CALCULATIONS 700 ft x 0.1926 cf/ft 600 ft x 0.1733 cf/ft 2,200 ft x 0.1733 cf/ft 80 ft x 0.1336 cf/ft with 0 % excess = with 40 % excess = with 40 % excess = with 0 % excess = TOTAL SLURRY VOLUME _ 134.8 cf 145.5 cf 533.6 cf 10.7 cf (inside pipe) 824.6 cf 147 bbls Report Printed on: May 24, 2005 2:44 PM Page 7 Gr4115 . • Operator Name: Teck Cominco Alaska Incorporated Well Name: North Basin Well No. Z. Job Description: Production Casing Date: May 24, 2005 Proposal No: 100189603A FLUID SPECIFICATIONS Spacer 30.0 bbls MCS-4D Spacer + 7 Ibs/bbl MCS-D + 31 Ibs/bbl Bentonite + 34 Ibs/bbl Barite -Sacked @ 9.5 ppg VOLUME VOLUME FLUID CU-FT FACTOR AMOUNT AND TYPE OF CEMENT 1st Lead Slurry 280 / 1.6 = 171 sacks Cold Set III 1st Tail Slurry 544 / 1.4 = 367 sacks Type I Cement + 8% bwoc BA-90 + 0.4% bwoc BA-10 + 0.5% bwoc CD-32 + 1 gals/100 sack FP-6L + 0.05% bwoc Static Free + 62.1 % Fresh Water Displacement 81.4 bbls Displacement CEMENT PROPERTIES SLURRY SLURRY NO. 1 N0.2 Slurry Weight (ppg) 12.20 14.50 Slurry Yield (cf/sack) 1.64 1.48 Amount of Mix Water (gps) 8.80 7.00 Amount of Mix Fluid (gps) 8.80 7.01 1. Slurry performance to be confirmed through pilot blend testing at PRTC. Slight additive adjustments should be expected. Report Printed on: May 24, 2005 2:44 PM Gr4129 Page 8 Series 200 -Rotating Control Heads (Top Drive Rigs) Sk~T>~ N 1Ftt' `I' rr ~`~.~, ~ G~7?!u'f7 r fP.f9 7 I~-:rt3~ 1 t!P.7.'!~ 7+-: °7 ,.): i::f ~~fi ,t "--i~ F31 ~: .:Ai g :: ......^..f..Cf'119f i)I~ .,1, ,; SACK TO PRO®UCTS • Page 1 of 1 SERIES 2000 ROTATING CONTROL HEADS (Top Drive Rigs) The Washington Series 2000 is a low profile rotating control head designed for "top-drive rigs" or "work-over rigs." The frictional engagement betweer the drill string and stripper rubber rotates the control head with the drill string, sealing ofF the well bor. t~, continuously, while diverting all ~ cuttings and debris. 1 This unit is designed to be used with our Part #2010 Stripper Rubbers, and can seal off from 2" to 5" drill steel. Whether you are drilling gas, oil, o geothermal wells, Washington Rotating can accommodate all you diverter needs. Call or send us your inquiry for pricing. 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I~~pias, ~vir~~nsat~. gar Ida ~~ virota~ C~~ ~+Y~ ~/.wai/4 ~/ YLLy~Vi ~iY~ A' ~iV. ~ V a~.chorege, ~3 Y 7 R~:..Rad dog Mine; biac~rarge a f' III 1e~r8 t~teij f~, 1~, 20193, ~ 3a operatinn:a ~t R~ Clog ~iaa. aeiiviq,es at ar rimer the , ~ a ne~v ~ ~loration welly ~a tiu~e lettes~s, a~ ®v! th tkt~ It~inw+~ ,~~ wd~t~r~bcr ~ t'!a~ c cQmbinerd wastnw+~ter after trot, tom, g DES t (~ taa3s~s-a~. ~ r t~ letters ~rcd their ~, Pph TV.B oft Iviirae's NPI `~ ghysic~l elt~tioa~s cu' atlditaan~ ~m canld si$~+~atly c~Zangs the ae That per~uit proVieion as requieed by ~. prea~bk ~ that aeait explaias that whetherr the ' "ty ~ vI-aT!'a~ a 1~ ana rv~arch ~ ~, aoc~, you nDtifed ug o~yc cr~m~. A permit modificaUnst as w iai atbd. s~sttmtfial alfiera~rsns ©r adt' $p~IOA Of pert ~p,$ that Sz8 suggests that a parmrt motli~c~~t is lII ~ 11y's p61711t~'C C~~tJ.t~ill3. I#~Ct9~ sub~ind to det$ wb~Zer ~ p~q permit c~-nd3tio~. a 44 ~.F..32. ~ f2~_~i~t~Cll(ii~. z ~9 I~e~. Reg. 37,98, Sedan Iilw1 ~Oa2 ~. a2~'Q3 _~ aOS-a~ ~ ,~ ~ ~~ ~L' ~ ~~° ~°~'~'~ ~u~ ` ~~; ; ~.. ~ ~ ~ ~f~~i~~~~ .y frrnta ~a#~ai Cras ~cploratiom 11. ?Oa4> You nntifiPrrl t,g of ~; ,~g itav+ohnca y swLueea ~ ~!'.ai~tioai. con&i~g Qf s~durced wsti:r" frasn the x Tic-may cambia thhe Prac~uned watez ngc ~tft+[+Lmammst, sane! thoaa e:ise~,,aw;gw !~Lprw Id's a~ist~g mra~, au'k~at1, ~ifiec tI~ is below is baaeci Qn the it,1~D~i.G.Sl:iga ~ ' ~ 'I'mo tQ aatify ~A ~:if aay ~ P .fed ~s ~vhaa `the alter: ar e or ' e the quaa#i#y of pollutants; ~~m ~xhsti •' ~i+6 ~ this regula#eh~ in 1+84; the ~ I~ ~ ~ 's F~ is t+o enabl$ ~"~I±- t4 det~mo~ei • ou.~ ~Y3+tn~x Iettecs c+fr,~-~~~y ls, 2003, ~~~~~~Q~ {Yto ~P~l regniafiions, w,~~h~{e7~~n(.~ "[1!„dare are 111 5~38~}.t ili'~ e7C7sti71~ p~DI~."'' 'l'lli8 ~ h~ a ity ahaage aat.Na}~ fY a image w ~v~ anaiy~irl the ~tian ~':~~ Teak ~i change warrants any ~ tQ ;hc fity"s 1 X84). 11~'J8~0~ Mini X7:52 P:13 5c19 2591 Ter_.k C-ominro Elmer ~ U03 ~. ~~~~~ pextiait omits for 'ara~ts sty limits, or water tIUBEity bassi ~~ ~ the expe~~1 haw volume ;~f tha nevv ~, flaw vcl,; a~r;d the cortl~en'~ ara sQ • ianil; of this new wastesaeam would n+ot ~$ ~~BE,T~. Sp the ~vV vvast8 9ttF~ wa qr~ sir ~vast~ is aubjeat to tee~Q gy~.~ ~18V~ L't, ~10W~V~s ~ B~~p ~ ~ ~$ exploratioII ntaanec~ ~ t~-e Us about the ~enla~ia~l fiarnOris, aAd ~~tuents. Thus #echnvlagy-based eta "best profess jet" (F~P7}. We ~ infer that Teck aub~,t~, aad bav~ elPPli ~ the new ~ovaste ,~ wau1 airea~dy eonxaiaed fa tba A~iae's current ~~ tI~B~ r~,88ariS= ~1C p~pp8~ 9V Jet ~~~ aqd therefore a peru~it ~n ~vtruld nat be necessary, ta~dar 4~ Q.F.R. ~1 ~~D Of'the ne~c+ tv~ au~tasixed by t1~ pmt, If you v~rould Cow at ~2Q6) SS3-2I~9, ar Patricia cc; Z.~arly I3artig ~ Rhadas et ~. 7i7 x stt-eec image, Alaska. 99S~OY-3397 ~. would ba lather ta~~~o~-~,a~s~ ~,~~tt ~~Y,s~ wlur~ a~ mar+e sfri~. ~ e~ause u sa small txmapareri t~ Mi~~?3 C~t1t the ~i,ae''s at~r waaa^~ra#~, tip intradncti~ nlatioaats uudedyuig fhe ~~! p~rit's t chaffs fn the ~ne'a p~uix;,limits on1~ i~' ! lim,~ts that are t sttinge~t ~,~ the a+~rent L1t1 }~` C~111C~tt ~lfi1t g1I[~, if a~,yp ~~ ~/~ ~ - 11~ '~D t21G "~dtICES~I '~ g ~-'*~~ $w~ia via *au~ '"usi~il"pit ~~1t j $'~" - ~ ~bnutted'to Bt~.~S ~,~8 tIOW volUms clod =nt ' woad be detea~mined ~ al~Pdicat~a of ~~ ~ a spx a' bra ~u ~~ that the te+cchIIOlog~ba~sd ~~ttee~t Irmits ~ si ~ ]css stivn~t ~a tiio ~fi~QrgLLs ~' a-c3uid not waxrarit any eb~~+~ i~. 1V~ne's rdifi ~'cau to ~ this near u-~ste , , !2.fi~ ~(1~. As a result, we believe tduit the r Wit~i tiaw wits m the 1VYiae's exiatiag:,pe~~, ~ ~]t at 06) 553-09'"!9. R Rpb~i~ . . ate Drreckcr of 1~at~ at~„d '~'ateccst~eds Subject: RE: NB Wells • From: Bob Gardner <bob@fairweather.com> Date: Tue, 12 Jul 2005 13:46:17 -0800 To: Thomas Maunder <tom maunder@admin.state.ak.us> Tom: I will make you a copy of the EPA letter and deliver it to your office this afternodn. Re sending an inspector to the site: There are currently only two charter flights a week. They are on Wednesdays and Saturdays. Special charter flights out of Kotzebue are pretty much out for the summer, as the Red Dog runway is being paved and closed to all air traffic except the two charters. Your inspector would have to go in one charter and return on the next one coming out. The mine requests as much notice as possible on charter travel, as the flights are understandably crowded due to the limited number available. They would like a one week notice, but we can push this a little if there is only one person involved. I hope this is the information that you need. Regards, Bob -----Original Message----- From: Thomas Maunder [?:ailtc:tem e;aundercad::tin.state.ak.us] Sent: Tuesday, July 12, 2005 11:24 AM To: Bob Gardner Cc: Steve Davies; Jim Regg Subject: NB Wells Bob, Steve and I are moving ahead on the NB permits. Just a couple of questions. 1. Is it possible to obtain a copy of the EPA letter with regard to disposing of waste water in the Red Dog tailings pond?? 2. If it was desired to send an Inspector to the rig site, how would that be accomplished?? Thanks, your assistance is appreciated. Tom Maunder, PE AOGCC 1 of 1 7/12/2005 2:01 PM s ~~ ~ ~~~5 July 11, 2005 Mr. Tonx Maunder, P.E. Petroleum Engineer Mr. Steve Davies Petroleum Geologist Alaska Oil and Gas Conservation Commission 333 7~' Avenue, Suite 100 Anchorage, AK 99501 Aias~a ail has Cogs, Oorar~ission anchorage Re: Teck Cominco Alaska Incorporated: Application for Exception to 20 AAC 25.055(a) (4), Spacing Exemption for Well No. NB-02, Red Dog Gas Exploration Project. Dear Mr. Maunder and Mr. Davies: The 2005 Red Dog Gas Exploration Project consists of drilling two (2) shallow shale gas exploration wells (Wells Nos. NB-O1 and NB-02) to determine if natural gas will desorb from the organic-rich shales of the Kivalina formation. These two wells are part of a five- spot pattern of test wells which will be completed if the results of NB-01 and NB-02 demonstrate the feasibility of the desorption process. Well NB-02 is located less than 3000 feet from well NB-O1 (the first well to be drilled in the five-spot pattern). Under 20 AAC 25.055 (a) (4), Well NB-OZ will require a spacing exemption. The following information is submitted on behalf of Teck Cominco Alaska Incorporated in support of this application for a spacing exemption: l . 20 AAC 25.055 (d) (1): The names of all owners, landowners and all properties within 1000 ft of a well drilling for oil, or within 3000 ft of a weld drilling for gas for which and exemption is sought. There is only a single landowner involved, which is: NANA Regional Corporation P. O. Box 49 Kotzebue, Alaska 99752 The operator of the NB-02 well and all the surrounding acreage affected by the Red Dog Gas Exploration Project is: 2000 East 88th Avenue • Anchorage, Alaska 99507 • (907) 258-3446 • FAX (907) 279-5740 650 North Sam Houston Parkway East, Suite 505 • Houston, Texas 77060 • (281) 445-5711 • FAX (281) 445-3388 s • Teck Cominco Alaska Incorporated 3105 Lakeshore Drive, Bldg. A Anchorage, Alaska 99517 Since Teck Cominco Alaska Incorporated is the applicant, a copy of this application has only been sent by Certified Mail to Nana Regional Corporation at the above address. 2. 20 AAC 25.055 (d) (2): A plat drawn to scale of one inch equaling 264D feet or larger showing the location of the well for which the exemption is sought, all other drilling and completed wells on the property, and adjoining properties and wells: The plat is attached. 3. 20 AAC 25.055 (d) (3): An affidavit by a person acquainted with the facts ver Eying that the facts are true, and that the plat correctly portrays pertinent and required data: The affidavit is attached. Teck Cominco Alaska Incorporated believes that 20 AAC 25.055, as presently written, was never intended to cover the situation presented by the Red Dog Gas Exploration Project, where a closely spaced five-spot well pattern is required to test the gas desorption potential of the Kivalina shales. The objectives of the five spot program are to confirm geologic and reservoir properties over a large area relative to the near well-bore data obtained from the the test wells; to simulated the fully bounded conditions of interior wells in a full field development setting by allowing for dewatering the center well; to determine relative permeability through simulation history matching of the gas, water, and pressure data obtained from producing the five-spot wells; and to prove the capabilities of the target shale body to produce gas in commercial quantities. The center well in the pattern will provide an analog of how wells will perform field-wide once a regional pressure drawdown is attained through dewatering, and will prove the capability to produce methane. Previous studies have shown that a single unconfined well will produce significantly less than fully bounded wells due to ability of the surrounding formation, to replenish water to the shale fractures near the producing well, and therefore may not provide a reliable indicator of future field production. Furthermore, reservoir simulation history matching of a single well may yield unreliable relative permeability data. Once reservoir simulation history matching has been successfully completed, the results can be used to make certain critical determinations prior to proceeding with the full field development, such as optimal well spacing, well field layout, and optimal stimulation and operating practices. Advanced' Resources International, under contract to Teck Cominco, has developed the five- spot well location spacing to be used in the pilot project. Based on this spacing, and on the forgoing information, Teck Cominco respectively requests that the Commission consider and alternative interpretation of 20 AAC 25.055 for the Red Dog pilot project which considers the five-spot pattern to be a single interactive penetration of the reservoir. • ~ Thank you for your consideration of these matters. Sincerely, .a R. C. Gardner Sr. Technical Advisor For Teck Cominco Alaska Incorporated Enclosures • • RED DOG SHALLOW SHALE GAS EXPLORATION PROJECT ~ ~~ ~ ~~ Y F Y ~ 2 '~ ~ rn ~ ~ ~~ S@G 12 Z f Z Sec 7 Sec 8 M ~ M t 1- I `:, I- ppi { ~ I i {i } 1 000' -- Well Number NB-01 p - I 2 2' ~ er N 02_ Sec 13 ~ Sec 18 I ec '~"` til M I I f I I I I N I i f i ((! Sec 24 3 , ec 19 ec 20 i Well Coordinates are in Alaska State Plan Zone 7 in US Survey Feet Well Number NB-01 x= 582,242 y= 5,150,884 Welf Number NB-02 x= 583,714 y= 5,150,083 • ~ • AFFIDAVIT This affidavit will certify that I, R. C. Gardner, am acquainted with the information in the Application of Permit to Drill for the Teck Cominco Alaska Incorporated Well No. NB- 02: the subsequent responses to questions from the AOGCC regarding the drilling and operations procedures relating to this well; the application for spacing exempting for this well as defined in 20 AAC 25.055; and the plat showing the location of this well with respect to surrounding wells. I further certify that the facts presented in these documents are true, and correctly portray the pertinent and required data. Signed.` - R. . ~ ardner 5r. Technical Advisor Fairweather E & P Services, Inc. Date: ~~. ,~Z~~S'"~ Signed and sworn before me this 12th day of July, 2005: `~ Nofarv Public `" Lisa Love/ Larmi, Rotary Public My Commission Expires February 15, 20(i~ NB-02 spacing exception ~~c''-'_ L~' ~~ Subject:NB-02 spaciub exception From: Stephen Davies <steve_davtes@admin.state.ak.us> Daic: '~iun, I l TuI ?CKj; 17:1 ~):~ ~ -i1~i"~0 To: hoh'a Fair~~cather.c~~m ('C': 7 o~ii lluun~ler <tum maur~~ierl~i~admin.stale.aku~> Bob, One additional item I overlooked with respect to NB-02 is a notarized affidavit from you stating that you are acquainted with the facts and information in the NB-02 permit to drill application and the subsequent response to Commission questions regarding well construction, operations and spacing. The affidavit must state that all of these facts and information are true. This affidavit will complete the spacing exception requirements for NB-02. A spacing exception usually takes about 6 weeks, including a 30-day public comment period. The decision on how Fairweather may proceed with NB-02 is up to the Commissioners, but you will probably be allowed to drill the well and complete it, because of your rig schedule, but not test or produce the well until the spacing exception is approved. Teck Cominco bears all responsibility and associated costs if the spacing exception is denied. Upon receipt of the affidavit, I will submit a public notice regarding the spacing exception for publication in the newspaper. My apologies for the oversight on the affidavit. Steve Davies AOGCC 793-1224 1 of 1 7/11/2005 5:33 PM • • ,~ ~:~ .~. July, 5, 2005 ~. ,~~'~`~ Mr. Tom Maunder, P. E. Petroleum Engineer Alaska Oil and Gas Conservation Commission 333 7~' Avenue, Suite 100 Anchorage, AK 99501 ~~ ~ ., ~~i ~!~ s~ ~>` Re: Teck Cominco Alaska Incorporated, Wells Nos. NB-Ol and NB-02 Dear Mr. Maunder: Thank you for your e-mail of June 28, 2005 which lists several questions and comments regarding the procedures for drilling the above referenced wells, as well as the authority by which Teck Cominco Alaska Incorporated will operate these wells. I believe we satisfactorily addressed these issues during our meeting on July 1, 2005, subject to the written responses to your questions presented herein. The points listed below follow the same numbering system used in your original a-mail: 1. Need bond or letter of credit in place before permit applications can be approved (20 AAC 25.025): The blanket bond was electronically transmitted to your office this date, with the hard copy following by overnight mail. 2. Need a lease map showing affected lease and those immediately surrounding it. Need ownership/land ownership information for the affected lease and all adjoining leases: The requested map is attached. The NANA lands are not subject to a traditional oil and gas lease, but rather to a confidential exploration agreement between NANA and Teck Cominco, and also to a specific Letter of Intent between the parties referencing the subject gas exploration project, which is also confidential. 3. Need Designation of Operator Form (20 AAC 25.020)------: The completed Designation of Operator form (10-411) is attached. 4. Need Notice of Change of Ownership-------: It was determined during our aforementioned meeting that this form is not required. 5. 20 A.AC 25.033 (i) allows the Commission to approve under balanced drilling. The request for under balanced drilling must include-- :The subject wells will be drilled with air using a Washington Control Head as described in the APD's. The Washington Control Head is basically a rotating head, with all i 2000 East 88th Avenue • Anchorage, Alaska 99507 • (907) 258-3446 • FAX (907) 279-5740 650 North Sam Houston Parkway East, Suite 505 • Houston, Texas 77060 • (281) 445-5711 • FAX (281) 445-3388 • cuttings and return air diverted through a "blooie" line to a cuttings bin and sampling cyclone located a minimum of 30 ft away from the wellbore. 1500 bbls of water will be stored on location during drilling and will be available to fill the wellbore as a well control contingency. The extremely low porosity and permeability of the shales being penetrated limit gas flows during drilling to what gas is absorbed within the shale that is pulverized during drilling. Air flows during drilling (1000 cfm or more) will keep any gas in the wellbore below the LEL. The Commission has approved an almost identical drilling procedure during the Evergreen CBM program (PTO's Nos: 242-178 and 202-179). 6. 20 AAC 25.035 (h) (1) allows the Commission to approve a variance from the BOP requirements---------: See No. 5, above. 7. 20 AAC 2S. 035 (h) (2) allows the Commission to approve a variance from the diverter requirements if an equally effective means is provided to divert f low away from the rig --: The Washington Control Head accomplished this function. A separate diverter, as used in conventional mud/rotary drilling operations is not planned for this drilling program. In the subject case, the "diverter" is the Washington Control Head. 8. A diagram of the diverter and rotating head arrangements should be provided. A plan of the rig and support equipment should be provided.• These diagrams are attached. 9. 20 AAC 25.061 (c) allows the Commission to waive the shallow site survey if other effective means can identify the likelihood of encountering shallow gas: We submit that the density of mineral exploration core holes in the area adequately addresses this issue. None of these core holes (all of which were drilled without any means of well control under mineral exploration regulations) encountered any shallow gas. 10. 20 AAC 25.066 covers gas detection requirements. There is no waiver clause for gas detection equipment absent a hearing, etc. -------: Teck Cominco will provide gas detection equipment during the drilling of NB-O1 and NB-02. If the results of this pilot shale gas project are encouraging, and subsequent wells are proposed, we reserve the right to make a formal waiver request for all subsequent wells, recognizing that a hearing will be required. , 11. Inclination survey--------: Surveys will be run every 500 ft. 12. Mud log or lithologic log---------: A geologist will be on site to construct a ~~ l~ continuous lithologic log as the wells are drilled. A conventional mud log will I,~/°~ /o„~ ~! not be possible, as the wells are being drilled with air. ~`~'~~ f t ~` ~ s~~ ~ Your e-mail addressed the need for a spacing exemption for Well No. NB-02. This ~ ~c a lication is bein submitted under se arate cover. ' ~'~' /~~ Pp g p ~~~" `y ~ Your e-mail also listed 14 "Questions and Comments", which are addressed in the same ~~ ~ f format below: 1. We presume that gas detection will be part of the mud logging equipment: See Nos. 10 and 12 above. :~ L Z. We presume there is not any seismic data in the area--------: There is no seismic data in the area, neither is there any velocity information available. We submit that the extensive mineral core hole data that has been accumulated in the area adequately addresses shallow gas concerns that would otherwise be addressed by the seismic data. 3. Have there been any observed over pressured gas or fluids in any boring or core holes within the area?: No ' 4. Can you provide more detail on previous drilling operations in the area? How many core or test holes have been drilled in the area, etc.---: One hundred twenty three mineral exploration holes have been drilled in the area. A map is attached that shows the locations of these core holes. 5. Is Core Hole 1107 plugged?: The hole is plugged by ice through the permafrost zone. Mineral exploration regulations do not require the plugging (in the conventional oil field sense) of core holes. See No. 4, above. ' 6. Has signifa'cant shallow gas ever been encountered in the area?: No ' 7. Has and H2S ever been demonstrated in this area? A stronger case must be made before the Commission can waiveH2S requirements in 20 AAC 25.065: There has never been HZS encountered in any of the core holes in the area, ar in any of the extensive mining operations at Red Dog. I don't know how to make a "stronger case". 8. What is the basis for calculating the BHP and surface pressure listed in Block 17 on Form 401 ?: The pressures shown on Forms 401 are not locally based, but rather are based on Barnett Shale experience in Texas. We used the Barnett shale case, a lithologically it represents some similarity to the Kivalina formation at Red Dog, is organic-rich, and when fractured and de-watered, produces gas in commercial quanties. 9. When the various hole sections are completed will logging be accomplished with fluid in the hole?: It will be necessary to fill the hole with water to achieve the logging products desired. 10. Will casing be run and cemented with fluid in the hole?: The production string will be run and cemented with fluid in the hole, since the hole will be filled with ~t~ater ~n girder to obtain the desired logs (See No. 9, above). Surface casing will be run through the permafrost zone without fluid in the hole, except that which , occurs from natural seepage. 11. Basis for not requiring BOP equipment and request for additional porosity/permeability data------: During our aforementioned meeting we have provided you with a Scoping Study developed by Advanced Resources International, and P&P report from the University of Alaska which addresses this request. 12, The request to be under balanced will also be supported by the "answers" to the questions above: Understood 13. Elimination of gas detection equipment: Previously addressed. Gas detection equipment will be provided. 14. Are there any drinking or industrial water wells within the area--------?: No. • n I hope this information adequately addresses your concerns. Please call or a-mail at any time should you have further questions or comments. Sincerely, ~~ ,~ R. C. Gardner Sr. Technical Advisor For Teck Cominco Alaska Incorporated Enclosures ~ 2005 Gas Holes 1 ~ Future Gas Holes .._ - -------- --- ------____ ----- ~ --- _.Wulik Basin ! ADL389248 NANA Lands ADL389249 I ADL389250 t t TCAK Shallow'Gas Leases ,l, _ -- ---------- o ---- ~~'~s No ADL389251 ~/~ n'h ~ eas~n cos East f B-01 ' ~ -02 i ' ~ Red Dog y ~' NANA Lands -_ _ _ - - --- 0 2 4 Miles `~ ,~ i ' ~ ~ ! I~! .i~ ! ! ~! ! +a ,~ ~, /~ r / /~ ~ 2005 Gas Holes Future Gas Holes • Mineral Holes , ~ F; ~ ~ \1 i i i i' ! ! a~kss `' NANA Lands ! , ~ "; a ~ 1 ~! ,~ ! !! ! , ! ! bDL3$9 4 , ! i ,J i ,!! AD~3~925U i' - ~ . ~ ' ! ' /J ' T.,~ gas L,leases ,~, ~y 0 Y" ~~ ~~ i \ ~ ~a\ .. i ,,' ~ l i ). ! , I ! I ^~ ! -s~ _~ ~ ~~~ ~'~~y ~ ~ t ~ {i ! A ,;,,_ ~, I I~ 1 ~ J I~' 1i ~ I/ ,,! ;ed Dog ' ,, ~ f ! ;y-- ! ~ i I ~~~' 0~~~' ~ ~2 ~ 4 ~l r ~..,, ~ Miles __.J_..r ~ -''w~ C • • Washington Control Head SOW Casinghea • Tech Cominco Shale Gas Cuttings Discharge Line Water Fill-up (kill) Line North Basin Wells Nos. NB-O1 and NB-02 Control Head Diagram • • 90 ft. 0 N ICementl Unit 0 ~, o U ~ ~ ~ ~-~J ~..~ ON ~ Dr~li ~ Rig isoo bbis 1 (~~ ` 1 &loo~yL'~~ Work Deck Cuttings Bin y~ ~~ Pipe Pike ~ Sled Sled ~a ~~~ ,~ A~~ess F~~~de~k ~--- Teck Cominco Alaska er Red Dog. Gas PP®graes~ Drilling Pad gay®uf I Date:12f3/2002 By Talknadge G!S ~ DrafDn~ LLC Noatak_Gas_prngramlGlSlReport FigureslPfan_of_Cper-2pp3_Gas_Ver_9l'=~~. F1%g_3. f.apr [Fwd: [Fwd: Comments and Questions on NB-O1 and NB-02]] _ p~ d~S ~ G/ / So Subject: [Fwd: [Fwd: Comments and Questions on NB-O1 and NB-02]] From: Thomas Maunder <tom maunder@admin.state.ak.us> Date: Tue, 28 Jun 2005 07:43:50 -0800 To: Steve Davies <steve_dav~es@admin.state.ak.us> Steve, Sorry I didn't cc you on this. Tom -------- Original Messag -------- Subject: [Fwd: Comme is and Questions on NB-01 and NB-02] Date: Tue, 28 Jun 20 5 07:43:15 -0800 From: Thomas Maunder atom maundersadmin.state.ak.us> Organization: State f Alaska To: Bob Gardner <bob'fairweather.com> Bob, Steve Davies and I have eviewed the applications for the Red Dog project. Here is a listing of our comments. You an I discussed in particular the gas detection yesterday. Have a look and we can discuss later today. Tom Maunder, PE AOGCC Tom, Looks good. Could you se morning. Thanks, Steve D. it over to Bob Gardner? We can discuss it with him later this 050627_NB-O1_a~d NB-02_Comments_.doc Content-Type: application/msword Content-Encoding: base64 1 of 1 7/13/2005 10:24 AM Here are AOGCC's questio~/ comments /needs for the NB-O1 we~ far: Prior to permit approval: 1. Need bond or letter f credit in place before permit applications can be approved. (20 AAC 25.025). 2. Need a lease map sh wing affected lease and those immediately surrounding it. Need ownership / landownership info ation for the affected lease and all adjoining leases (owners /landowners, percentages}. 3. Need Designation o Operator form filed with the Commission beforepermit can be approved. (20 AAC 25.020). 4. Need a Notice of Ch ge of Ownership form filed with the Commission before permit can be approved (if applica le) (20 AAC 25.022). 5. 20 AAC 25.033 (i) a lows the commission to approve under balanced drilling. The request for UBD must include, "...a d scription of all equipment and procedures to ensure proper containment of formation and return fluids." The rotating head is all that is described in the application. 6. 20 AAC 25.035 (h) 1) allows the Commission to approve a variance from the BOP requirements if the variance provide at least an equally effective means of well control and 7. 20 AAC 25.035 (h) ( )allows the Commission to approve a variance from the diverter requirements if an equally effectiv means is provided to divert flow away from the rig. It appears a diverter is planned to be used a cording to the procedure, step 3. Is the surface hole being drilled with fluid? Is the diverter actually he rotating head? 8. A diagram of the div rter and rotating head arrangements should be provided. A plan view of the rig and support equipme t should be provided. 9. 20 AAC 25.061 (c) lows the Commission to waive the shallow site survey if other effective means can identify the likel hood of encountering shallow gas. 10.20 AAC 25.066 cov s gas detection requirements. There is no "waiver clause" for gas detection requirements. This eans a hearing is required. CO 479, addressing Evergreen's request to waive gas detection equip ent was issued October 29, 2002. They had made an application for the waiver on August 16, 2002 d a hearing was set for September 19. 11. Similar requests for der balance drilling, BOP, shallow hazards survey and gas detection were addressed in the Eve green program. Well files 202-178 and 202-179 are public and available on our web site. Refere ce should be made to the documents in those files for examples. NB-02 requires a spacing ex eption because, once NB-O1 is drilled, NB-02 will be less than 3,000' from a well drilled to and capable o producing from the same pool (20 AAC 25.055). The spacing exception application is described in 2 AAC 25.055 (d). Such exceptions typically take 6 weeks to process and approve, including a mandat ry 30-day public comment period. In the spacing exception application, an operator may request they b allowed to drill and complete the well, but may not test and produce the well prior to approval of the spaci g exception. However, if such a condition is granted, the operator bears all risk and assumes all liability of any protest to the spacing exception that may occur. Additional well data require ents (beyond those proposed in the permit to drill application): 1. Will need an inclination survey. (20 AAC 25.050). 2. Will need a mud log r lithology log and a set of drill cuttings in addition to any electric or nuclear logs run in the well b re. (20 AAC 25.071). Questions/Comments: 1. We presume that gas etection will be part of the mud logging equipment. 2. We presume that ther is not any seismic data in the area. Correct? If there is, has it been examined by a geophysicist for hallow gas hazards? Any velocity information available? If so, has it been examined by a geoph sicist for abnormal pressure indications? 3. Have there been an observed over-pressured gas or fluids iy borings or core holes within the area? 4. Can you provide more detail on previous drilling operations: How many other core holes or test holes have been drilled in the immediate area? To what depth? Can you provide a location map? 5. Is core hole 1107 plugged? If so, with what (list material and depths/thicknesses of plugs)? Are there any other core holes in the vicinity of NB-O1 and NB-02? 6. Has significant shallow gas ever been encountered in this area? 7. Has any H2S ever been demonstrated in this area? A stronger case must be made before the Commission can waive the H2S requirements listed in 20 AAC 25.065. 8. What is the basis for calculating the BHP and surface pressure listed in block 17 on Form 401? 9. When the various hole sections are finished, will logging be accomplished with fluid in the hole? 10. Will the casing be run and cemented with fluid in the hole? 11. The basis for not requiring BOP equipment is that Core Hole 1107 was drilled without incident using water. If air is employed as planned, the hydrostatic pressure at 3000' true vertical depth will be reduced by 1300 psi. Although it is stated in the cover letter that "...The shale has very low permeability and porosity...", have there been any measurements/studies to quantify P&P? Some information must be provided that considers how/whether the draw down might affect potential gas flow. 12. The request to be under balanced will also be supported by the "answers" to the questions above. 13. The purpose of the well is to find formations containing gas. The earth will be pulverized so whatever gas is contained should be liberated. There is no statement in the application to support eliminating the gas detection requirement. 14. Are there any drinking or industrial water wells within the area? If so, a land plat and a description of the location of each water well, it's use and it's depth are needed. Z~ ~~~' ~ ~~ a a Q FRANK N. MURKOWSKI, GOVERNOR DEPARTMENT OF NATURAL RESOURCES OFF}CE OF PROJECT MANAGEMENTIPERM}TT}NG ALASKA COASTAL MANAGEMENT PROGRAM D SOUTHCENTRAL REGIONAL OFFICE Q CENTRAL OFFICE X PiPELlNE COORDINATOR'S OFFICE 550 W 7"' AVENUE SUITE 1660 302 GOLD STREET 411 WEST 4"' AVENUE, SU/TE?C ANCHORAGE, ALASKA 44501 JUNEAU, ALASKA 99801 ANCHORAGE. ALASKA 99501 PH: (907) 269-7470 FAX: (907j 269-3841 Ph: /907) 4653562 FAX.' (907) 4653075 PH,• (90T) 2857-1351 FAX' (90Tj Q72-3829 June 9, 2003 u~tiru•.n/nskncnart..rinle.t~k.us Mark Thompson and James Kuias Teck Cominco Alaska Incorporated 3105 Lakeshore Drive, Building A, Suite 101 Anchorage, AK 995 i 7 SUBJECT: North Basin Shallow Gas Project STATE ID NO. AK 0304-030G Final Consistency Determinsriion Gentlemen The State of Alaska, Office of Project Management Permitting, Alaska Coastal Management Program (ACMP) completed coordinating the State's review of your proposed project, North Basin Shallow Gas Project, for consistency with the ACMP. The ACMi' coordinated the review with the Alaska Departments of Environmental Conservation and Natural Resources for consistency with the Alaska Coastal Management Program. Based on the evaluation of your project by the Alaska Departments of Environmental Conservation {ADEC) and Natura[ Resources {DNR), the State concurs with your certification that the project is consistent with the ACMP and the Northwest Arctic Borough coastal district's enforceable policies to the maximum extent possible. This concurrence includes your agreement to adopt the alternative measures required by ADEC for the Section 401 certification for this project. This consistency determination is only for the project review as described in your project description and Coastal Policy Questionnaire {CPQ). You must contact this office immediately for potential further review if there are any changes to the approved shallow gas exploration project. If you have questions regarding this process, please contact me for questions or concerns (947.257-1351) or email ktaughli a jpo.doi.gov. Sincerely, Kaye Laughlin Project Review Coordinator "l)erelnp, Conserve, unrt E-rfrnrtce )V~rrurnf Resources fnr,Present rrnrJ FtrtureAl~tskans " ~:~: -,,.a Rcd Dog Final Consistcnc~• Q 'uinatian Page 2 of 2 June 9, 2U£}3 Cc: Victor Ross, USACE Tim Rwnfelt. ADEC, Anchorage (Cnukcr,~ sea u, w-t9s4ooiz) Matt Rader. DNR/DORG Stan Foo, DNR Stefanie Ludwig, DNR/SHPO, Anchorage Kern ~Valsh. DNR/DOL. Fairbanks lack W'snters, DNR, Offce of Habitat Permitting, Fairbanks Noa4~ Nay4or, F{anner, NWAB. Kotzebue Native Village of Kotzebue. Mr. Pete Schaefer, P.O. Box 296, Kotzebue, AK 99752 Native Village of Noatak, Mr. Elmer Ho~~•arth. Sr.. President. P.O. Box 89, Noatak. AK 99761 Kiva{ina IRA Council. Mr. Jerre Norton. Sr.. P.O. Box 5005I, Kivalina. AK 99750 Lovell Sage Sr., Platuiing Cotntnissioner, Iv'WAB, c/o Genera{ Delivers; Kiva{ina, AK 99750 Ra~~mond Lee Sr., Planning Commission. NWAB, P.O. Box 5, Buckland. AK 99727 Barbara MacManus. Planning Commisision. NWAB. P.O. Box 6R. Ambler. AK 99761 Alex Whiting, Panning Commission. NWAB, P.O. Box 296, Kotzebue )9752 Gordon Newlin. Ptanniiig Commission. NWAB, P.O. Box =t~. Noorvil:.:lK 997h3 Wa~~1c Jones. P{arming Commission. NWAB. P.O. Box R97, Kotzebue. AK 9972 Frank Adarns, Planning Commission, NWAB. c!o Genera{ Deliven•, Noataf:. AK 99761 Dennis 1. Tiepelman, Maniilaq Association, Kotzebue Jennifer Curtis, Manislaq Association, Kotzebue Subsistence Coordinator, Nana Corp., Kotzebue G{enn Grav, OPMPJACMP Svdncv Mitcltcli. OPMP/ACMP W~~n ~4cnafee. DNR/AFC __ ___ 14136 ~' fAIRWEATHER EXPLORATION FIRST NATiaNAL 6ANK A L A s K a I & PRODUCTION St=RVICES INC. s9-s-1252- j GENERAL ACCOUNT P.O. BOX 1-03296 DATE ANCHORAGE, AK 99510-3296 AMOUNT PH. (907)259-3446 6/13/2005 $100.00 i = PAY ° One H nd d D tl ~J ~ u re o ars And 00 Cents t1 L~ s: °i TO THE STATE OF ALASKA -fFc76C.C- _ ORDER 333 WEST 7TH AVE SUITE 100 i OF S m ANCHORAGE AK 99501 USA ~~ „ ~ _ ~ -----.~. ~ _ ~` ~ ~ ----- --- - ~I 11'0L>iL3611' ~:1 2 5 200060: O~L2 823 0 11' FAIRWEATHER EXPLORATION & PRODUCTION SERVICES INC -GENERAL ACCOUNT Fairweather E&P Services, Inc. . 1413 B 0014136 VENDOR ID NAME PAYMENT NUMBER CHECK DATE 1049 TATS OF ALASKA 0014921 /13/2005 OUR VOUCHER NUMBER YOUR VOUCHER NUMBER DATE AMOUNT AMOUNT PAID DISCOUNT WRITE-OFF N F T 00018533 50613*CKREQ*N602 /13/2005 5100.00 5100.00 _ _ 50.00 $0.00 $100.00 COMMENT FILING FEE, APPLICATION FOR PERMIT TO DRILL 5100.00 I 5100.00 I So.oo I So.oo I 5100.00 • • TRANSMITAL LETTER CHECK LIST CIRCLE APPROPRIATE LETTER/pARAGRAPHS TO BE INCLUDED IN TRANSMITTAL LETTER WELL NAME /V L~ ~ Z.- PTD# ~~ `.~~ ' ~~~ CHECK WHAT ADD-ONS "CLUE" APPLIES (OPTIONS) MULTI The permit is for a new wellbore segment of LATERAL existing well , 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. PILOT HOLE In accordance with 20 AAC 25.005(fj, all (per records, data and logs acquired for the pilot hole must be clearly differentiated in both name (name on permit plus PH) and API' number (50 - 70/80) from records, data and logs acquired for well (name on permit). SPACING The permit is approved subject to full EXCEPTION compliance with 20 AAC 25.055. Approval to perforate and produce/infect is contingent upon issuance of a conservation order a proven a spacing exception. /.~~ C~u~~~~' (Company Name) .assumes the liability of any protest to the spacing exception that may occur. DRY DITCH All dry ditch sample sets submitted to the ,,e.~'`~ `~ ' (~ SAMPLE Commission must be in no greater than 30' sample intervals from below the permafrost ,q 1~ or from where samples are first caught and 10' sample intervals tough target zone~s+. ~ ~ `~ r - ~ ~~ s ~- rYle ~ !~~ ~ t1t. Rev: 04/01/05 C\jody\trans mittal_checklist J ~ z~ // 6~ ,/~ / d'i G-7 ~c ~~~ ~~ ~ ~- ~~ ~~ ~ / / ~~ ®ll~~-- ~~- !- ~~ . ~l- -~ • CHECKLIST -SPACING EXCEPTION APPLICATION API NUMBER 50073200030000 PROPERTY ID/LEASE //~ N~ /~~ t tw(~ n~a . L~~ OPERATOR TECK COMINCO ALASKA INCORPORATED / ~ ~ ~, 3 c~y'- FIELD/POOL WELL NAME NB 02 VERTICAL / EXPLORATORY Yes GAS DEVIATED DEVELOPMENT OIL SURFACE LOCATION 2898 FSL and 272 FWL in T31 N R18W M K PRODUCTION INTERVALS NO LOCATION (Top and Bottom) NO LOCATION BOTTOM HOLE NO LOCATION Check applicable reason(s) for spacing exception per 20 AAC 25.055(a): No Spacing Exception requested to (1) to drill a well for oil within 500 feet of a property line where ownership or landownership changes No Spacing Exception requested to (2) to drill a well for gas within 1500 feet of a property tine where ownership or landownership changes No Spacing Exception requested to (3) to drill and complete more than one oil well in a governmental quarter section; or No Spacing Exception requested to (3) to drill and complete an oil well closer than 1000' to any well drilling to or capable of producing from the same pool No Spacing Exception requested to (4) to drill and complete more than one gas well in a governmental section; or Yes Spacing Exception requested to (4) or to drill and complete a gas well closer than 3000' to any well drilling to or capable of producing from the same pool. Yes Does the application contain a brief explanation for why the operator has chosen to drill the specified location. Yes Does the application contain a plat drawn to a scale of one inch equaling 2,640 feet or larger, showing the location of the well or portion of the well for which the exception is sought, a{I other completed and drilling wells on the property, and all adjoining properties and wells within 1,000 feet of a well or portion of the well requiring the spacing exception that is drilling for oil or within 3,000 feet of a well or portion of the well requiring the spacing exception ` that is drilling for gas. Yes Does the application contain the names of all owners, landowners, and operators of all properties within 1,000 feet of a well or portion of the well requiring the spacing exception that is drilling for oil or within 3,000 feet of a well or portion of the well requiring the spacing exception that is drilling for gas. Yes Does the application contain acopy of the notice sent by certified mail to the owners, landowners and operators described above, the date of mailing, and the addresses to which the notice was sent. Yes Does the application contain an affidavit by a person acquainted with the facts verifying that all facts are true and that the plat correctly portrays pertinent and required data. NA If the operator requests a variance from the notice requirements of 20AAC25.055(d), does the application contain sufficient information to demonstrate that it is not feasible to comply with the notice requirements because of the complexity of ownership within the notice area. WELL PERMIT CHECKLIST Field & Pool Well Name: NB 02 Program EXP- Well bore seg ^ PTD#:2050960 Company TECK COMINCO ALASKA INCORPORATED Initial ClasslType EXP ! PEND GeoArea 885 Unit OnlOff Shore 4n Annular Disposal ^ Administration 1 Permitfee attached_ -- - Yes _ - - - 2 Lease number appropriale_ _ - _ Yes _ - - NANA Regional-Co-rp. lands governed by_a_confdential explo[ationagre_ementbetween NANA & Teck_Cominco._ _ 3 Uniquewell_nameandnumbe[________________-____.___ ________--_,Yes_ _-___-__-__-_________-- 4 Well located in a.defned-pool _--_____________ _____________N_o__ ----_.Exploratorywell_______--_____-__-__----_--______--_ 5 Well located proper distance from drilling unitboundary_ Yes _ - - - - -Only well-within_governmental quarter section.- _ i6 Well located proper distance_ from other wells_ _ . - No_ If drilled, NB-01 will be-about 1,530' from this well, 25.055 requires 3,000' separation-between gas wells. 7 Su_fficientacreageavailablein-drillinqunit-------------------- -_-_- -__-Yes_ _______-_-__--__--__-.__ -------------------------------------------------- 8 If deviated,is,wellboreplat_included----------------------- ------------NA_. ____-Vertical-well,__--__--__ -_--_--_____---__--__--__-__--_---____-----.---- 9 Ope[atoronlyaffectedparty_--_____--_________________ ____-.--__-Yes- -_____Nearestprope_rtyline_isw~h_ADL389251,whichis~550'-toweSt.__--_____--_-._______-_--_____ 10 Operator has.app[opriate bond in farce _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ No_ _ _ _ . _ _ _ Bond received and submitted.to CCmissioneisfor signatu[e on 7,11-2005. _ . _ - - _ _ _ _ _ .. _ _ _ - _ _ _ - _ _ _ . 11 Permit-can be issued without ~nservation order- - - - - - - - - - - - - - - _ . - No_ - - - SPACING EXCEPTION NEEDED:_ N6,01 exploratory well will be Less than-3000' away. _ - - _ - - - Appr Date 12 Permit-can be issued without administrative-appr_oval__---_______ ____________Yes- ---____-__._-____-__-----__-__--_ SFD 7!1312005 13 Can permit be approved before 15-day wait Yes 14 Well located within area and sfrataauthorizedbylnjectionOrder#(puk1O#in_comments)_(FQrNA__ __________________________________________________----._---__-------_---- 15 All wells withinll4.mileareaof[eyiewident(fled(FOrserviicewellonly)___ ____________NA_. ____-_.___--_______._____-..._._____,_.____-__._.__--_ 16 Pre-produced injector_ duration of pre production lessthan_ 3 months-(For_ service well_ only) - NA- _ - - - 17 ACMP.Finding of Consistency_has been issued-for_this pr_oject_ - _ - _ _ - Yes - - - - - Project was determined to tie-consistent with regulations on June 9, 2003_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Engineering 18 Canductorstring_provided__________________--____---_ -___.-_____-Yes_ --____--._ - - 19 Surface casing-protects all-known- USDWS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _Yes - - - _ _ - - Surface and_production Casing will_be_cemented_tosvrface, protecting any shallow water, - _ _ _ _ _ _ - .. - - - - _ 20 CMT_voladequate_tocircul_ate-onconducto[&sun`csg------------ -------------Y_es_ _--______-_--_______--_-______-__-___--_--______--_- --------------------- 21 CJNT-vol_adeguate_totie-in long string tosurfcsg_______________ ___-----___Yes_ -____-----_-____--_-.-_-----_-______--_---___--_--_ 22 CMT-will coyer all known-productiyehorizons--_____-_-___--_ _-_-------,Yes_ _____ _______________________________-_-.-______-__--_--__--__:-__--_---- 23 Casing designs adequate for C,_T,B&_permaf[ost--------------- ------ - Yes_ __---______-______---_________---------------------- 24 Adequate tankage_or reserve pit _ _ Yes - _ _ - Hydrocyelone and cuttings bin will capture returns. Solid waste_to Red Dog solid waste site.-W_aterto_ _ - - _ - _ - 25 If a_re-drill, has_a 1.0-403 far abandonment been approved , - NA- - tailingspond_ per EPA approval, 1500_ bbls water planned on location to_"kil_I"well if necessary. - _ _ _ - - - 26 Adequatewellboreseparation-proposed____________________ _-__,_.__--,Yes. _____-_,..________.._______-.._._- 27 Ifdiverterrequired,doesitmeetregulations------------------- ------ __-, NA__ __-_-_Rotatinghead-in use todiyertcirculatedair.___-,_____----_____---__-__--__--__---_-- Appr Date 28 Drilling fluid_program schematic & equip list adequate_ - _ - - - _ _ - _ Yes _ _ _ - Drilling fluid is-air, Permeability studies-by UAF show targetformatiQn_tp have a very low perm (40,2_md)_ TEM 711312005 ~ 29 BOPEs, do they meet_regulation - _ , NA- - _ 123 mineral exploration wells have_been drilled without-problems._ Underbalance acceptable. _ _ - - _ J ~~ ` 30 BOPE_press rating appropriate; test to (put prig in comments) _ _ _ - - _ - NA_ - - _ BOP wtll notbe employed, See comments above. _ _ _ h Y~ 31 Choke-manifold complies w/API_RP-53~May 84)_______________ __-_----.__ NA__ _--__Achokemanifoldwillnotbeemployed._-_-______--__-___--_--__-______-__-- 32 Work willoccu[withoutoperationshutdown___________________ _______----Yes_ _---_______--_______-_---_-_____-_---__--___-__-_---_- ----------------- 33 Is presence_of H2Sgos-probable - - - - - - Nc - - - - - - - 34 Mechanical condition of wells within AOR verified (Forservice well only) - _ NA_ - _ - _ - - - _ _ - , _ - - - --------------------------------------- Geology 35 Permit-can be issued wlo hydrogen-sulfide measures _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _Yes _ _ _ _ _ _ _ Mineral_core_h_ole #1107 was drilled about 1800'_away whhin this geologiesection without incident. _ _ _ - - . - - 36 Data-presented on potential ove-rpressure zones _ _ _ - Yes Scores of miner_at exploration_borings have-been made in this area-without encountering abnormal pressure, , - . - Appr Date 37 Seismic analysis of shallow gas_zones_ _ _ - - NA_ shallow gas or H2$. _ _ _ , SFD 7111!2005 38 Seabed condition survey_(ifoff-shore) - . _ - _ - _ - , N_A_ - - 39 Contact name/phone_for weekly progress_reports [exploratory only]- - - Yes - - - Rob-Scott 907.426-9127_ ~~~70r _ Geologic Commissioner: Engineering ub'c Date: Commissioner: Date mi ~ er Date SPACING EXCEPTION REQURIED: Well ma not test or roduce until exce tion is a roved b the Commission. 0 erator Y P p ~ Pp Y P n assumes all risk for well drilled without a spacing exception. Mud log or lithology log and cuttings samples not required if they ~~ ~~ ~ ~ /~ /~~' " "~/~ 7 / ~'~ j( (, ~ _ /~ O are acquired in nearby NB-01 well. ry „~ v
