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Home My WebLink About203-207! ~ Image Projeet 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. Q 3 - ~ ~ ~ Well History File Identifier Organizing (done> ^ Two-sided III IIIIII II III II III ^ Rescan Needed III (I'lII II II III III RESCAN DIGITAL DATA OVERSIZED (Scannable) ~olor Items: ^ Diskettes, No. ^ Maps: ^ 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: ~ I ~Q ~ lsl Protect Proofing III 111111 IIIII II III BY: Maria Date: ~ ~ © (7 !s/ ~, Scanning Preparation ___~___ x 30 = ~ + c7~_ =TOTAL PAGES BY: Maria Date: 4 ~ ~ (~ (' (Count does not include cover sheet) /s/ _~ Production Scanning III II'lll IIIII II III ~ Stage 1 Page Count from Scanned File: " (Count does include cover sheet) Page Count Ma tches Number in Scanning Preparation : V YES NO BY: .Maria Date: I I ~~ ~ ~ ©~ /sJ ~/1 /1 ~ Stage 1 If NO in stage 1 , page(s) discrepancies were found: YES NO BY: Maria Date: /s/ Scanning is complete at this point unless rescanning is required. II I II II II III II IIIII Rescanned II I IIIIIIIIIII IIIII BY: Maria Date: /s/ Comments about this file: Qu ality Checked I II 1 111 11 II I (I'I II I P P 10/6/2005 Well History File Cover Page.doc • • MEMORANDUM State of AI as ka Alaska Oil and Gas Conservation Commission TO: Jim Regg ~ 111ZE~ P. I. Supervisor ~~ DATE: June 5, 2009 FROM: John Crisp, SUBJECT: Onshore Location Clearance Petroleum Inspector Pioneer Natural Resources Willow-Fishhook #1 PTD 203-207 June 5, 2009: John Crisp (AOGCC Petroleum Inspector), Aaron Kohring (AOGCC Petroleum Engineer Intern), & Mr. Dale Hoffman (Pioneer Natural Resources Senior Staff Landman) traveled to Willow, Alaska to conduct an Onshore Location Clearance inspection of the Willow-Fishhook #1 Coal Bed Methane well location. Willow-Fishhook #1 location was found using directions provided by PNR & confirmed with aerial photos provided by AOGCC Inspection Supervisor Jim Regg. Location was also verified by the description of the one-acre gravel pit owned by the State of Alaska (ADOT) land use permit ADL 25125. Reviewing photos of the P&A in August 2005 made further verification of the correct location for Willow-Fishhook #1. Casing strings were cut off approximately 5' below excavated gravel pit bottom & location was graded after the P&A in August 2005. No sign of any drilling debris or drilling activity were found on the Willow-Fishhook #1 location during my inspection June 5th 2009. Trash & debris was all over the gravel pit but this garbage could in no way be associated with drilling activity. No signs of pits or any standing water associated with drilling activity were found during my Inspection. 360-degree walk around of the area outside of the gravel pit was performed & no signs of any drilling debris were found. Summary: Willow-Fishhook #1 Location Clearance was performed in accordance with 20 AAC 25.170. Attachments: Photos 1142-1143-1144-1145 y Non-Confidential ~v ~ ;> • Location Clearance Inspection: Willow-Fishhook #1 (PTD 203-207) Photos by AOGCC Inspector J. Crisp 6/5/2009 ?009-0605 Location Clearance Pioneer Willow-Fishhook-l,jc.doc • • ~ ; ,,~' W~ ,~, - ~. ,. .~ .f .~r r - tea[ ~~~~' Jn 1 : "' . ~,- ~y:, .: k tt + 7~ ~ ~ M,,,'r Rikk` T;~, Y~~_' M `~ ~ ~ ti ~i 4M1µ, ~~ err w 'y~',K 7Ci~ ~ jJ F ,E ~ ~. -x - - . V ``~ _ . u ~ a .. ks v 2009-0605_Location_Clearance_Pioneer_Willow-Fishhook-l,jc.doc 3 • Page 1 of 2 ,, Regg, James B (DOA) _._.__.___.___.-..._...~ _w_ ~~ Z.~~~-Zug From: Regg, James B (DOA) ~~~ Z~~Z7y 71 Sent: Tuesday, June 02, 2009 3:22 PM ~~~`l ~ ~2,~2 To: 'Hoffman, Dale' Cc: Davies, Stephen F (DOA); Foerster, Catherine P (DOA); Scheve, Charles M (DOA); Crisp, John H (DOA) Subject: RE: ~Ilow Fishhook well inspection Attachments: 2007-0612_Location Clearance Pioneer LittleSu-1_cs.pdf; Little_Su-1_plate_2009- 0511_cs.jpg; Little_Su-1_mkr 2009-0511_cs.jpg You will be contacted in next day or so from one of our Inspectors -John Crisp -about making arrangements to visit the Willow Fis___hhook #1 site.,f~~ The Little Su #1 location surprised us. Chuck Scheve did a location clearance inspection there back in June 2007. The location was recommended for final clearance based on there being no evidence of past drilling activity (including no marker post). His 6/12/2007 inspection report with photo is attached. We would be interested in knowing what has transpired such that there is now a 6-foot marker post with a large square plate welded to the top as indicated in the photo from inspection done 5/11/2009 (photos attached). While 20 AAC 25.120 provides for the installation of a marker post that extends 4 to 6 ft above ground level, the Commission normally requires the marker plate to be installed directly on the cut casing stub -which is required to be least 3 feet below ground level (per 20 AAC 25.170(a)(1)) -and buried without any surface marker post. The AOGCC did not witness the surface P&A at Little Su #1, but surface abandonent of all other coalbed methane wells we witnessed in the Wasilla-Willow area were "marked" with a plate installed on the buried casing stub (no marker post). Based on the 6-12-2007 location clearance inspection (deemed acceptable); the.marker post at Little Su #1 location needs to be removed before we can grant final location clearance and authorize releasing the bond. Jim Regg AOGCC 333 W.7th Avenue, Suite 100 Anchorage, AK 99501 907-793-1236 From: Hoffman, Dale {mailto:Dale.Hoffman@pxd.com] Sent: Monday, June O1, 2009 8:12 AM To: Regg, James B (DOA) Subject: Willow Fishhook well inspection Jim, Please let me know when an inspector is available to examine the Willow fishhook site. I've pulled the plat from the archive and know right where it is. Sorry about the inconvenience on the last trip. Dale Hoffman, Senior Staff Landman Pioneer Natural Resources Alaska, Inc. 700 G St., Suite 600, Anchorage, AK 99501 6/2/2009 Page 2 of 2 907 343 2108 office, 907 830 2571 cell dale.hoffman@pxd.com Statement of Confidentiality: This message may contain information that is privileged or confidential. If you receive this transmission in error, please notify the sender by reply e-mail and delete the message and any attachments. 6/2/2009 Location Clearance -Little Su #1 PTD 203-205 ~otos by AOGCC Inspector C. Scheve 5/11/2009 ~: t. I ;~~~~~~~ _, , , , O } ~, y .t ~ ~ m ., tr v ~ ~~ ~!~~+~''sy~~j ~,. •~S..Cr:H, .~ ./ `...ice C ~~ t hr `7T y.-~" i.ti 1-y-f~ ` ti~ .. r,~:. ' .fir ~~.~Y,~~ti'~ '~v~E'I. 2009-0511 _Location_~iearance_Pioneer_~ittleSu-1 _cs.doc • • =~: MICROFILMED 03/01/2008 DO NOT PLACE ,;,w.° ~_ ,,.~ *:u ~~ ANY NEW. MATERIAL UNDER THIS PAGE F:~LaserFiche\CvrPgs_InsertslMicrofilm_Marker.doc ~~~ DATA SUBMITTAL COMPLIANCE REPORT 10/25/2007 Permit to Drill 2032070 Well Name/No. WILLOW FISHHOOK 1 Operator PIONEER NATURAL RESOURCES AL API No. 50-009-20029-00-00 MD 335 TVD 335 Completion Date 8/14/2005 Completion Status P&A Current Status P&A UIC N REQUIRED INFORMATION Mud Log Yes DATA INFORMATION Types Electric or Other Logs Run: Well Log Information: Log! Electr Data Digital Dataset Type Med/Frmt Number Name Samples No Directional Survey No (data taken from Logs Portion of Master Well Data Maint Log Log Run Interval OH / Scale Media No Start Stop CH Received Comments A Mud Log is required to ~ V O ~ be submitted. This record S ~p~,~ automatically created frorr _1 Permit to Drill Module on: 12/22/2003. Well Cores/Samples Information: Interval Name Start Stop ADDITIONAL INFORMATION Well Cored? ~/ N C>v~la, ~- b^r ~ ~ G ~- Chips Received? ~' Analysis Y Received? Sample Set Sent Received Number Comments Cores and/or Samples are required to be submitted. This record automatically created from Permit to Drill Module on: 12122/2003. Daily History Received? ~~/,N(~ Formation Tops Y / LJ Comments: Compliance Reviewed By: Date: v u E~~ STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION ~~.~ 3 "j ~~~' WELL COMPLETION OR RECOMPLETION REPO ~ ~,,,-~,~, ~~~;, 1a. Well Status: Oil Gas Plugged ., Abandoned0 Suspended WAG^ 1b. Well Class: As~l=~ll~~a zoaa,czs.~os 2oaaczs.~~o Development ^ x~lorato GINJ ^ WINJ ^ WDSPL^ No, of Completions Other Service ^ Stratigraphic Test [i~ ~ 2. Operator Name: 5. Date Comp., Susp., or 12. Permit to Drill Number: Pioneer Natural Resources Alaska, Inc. Aband.: Aug 18, 2005 203-207 /~ 3. Address: 6. Date Spudded: 13. API Number: 700 G Street, Suite 600 Anchorage, AK 99501 January 25, 2004 50-009-20029-00 -' 4a. Location of Well (Governmental Section): 7. Date TD Reached: 14. Well Name and Number: Surface: ~ 2073 FNL, 2075 FEL, T19N, R4W, SM January 29, 2005 Willow Fishhook #1 ~ Top of Productive Horizon: 8. KB Elevation (ft): 15. Field/Pool(s): NA 258 Total Depth: 9. Plug Back Depth(MD+TVD): Pioneer Unit Same Surface 4b. Location of Well (State Base Plane Coordinates): 10. Total Depth (MD + TVD): 16. Property Designation: Surface: x- 1644475 y- 2837865 (NAD 83) Zone- 4 335 TPI: x- Same y- Same Zone- 11. Depth Where SSSV Set: 17. Land Use Permit: Total Depth: x- Same y- Same Zone- NA NA 18. Directional Survey: Yes ^ No ~ 19. Water Depth, if Offshore: 20. Thickness of Permafrost: NA feet MSL NA 21. Logs Run: None 22. CASING, LINER AND CEMENTING RECORD WT. PER SETTING DEPTH MD SETTING DEPTH TVD AMOUNT CASING FT GRADE TOP BOTTOM TOP BOTTOM HOLE SIZE CEMENTING RECORD PULLED 6" NA NA Surface 335 Surface 335 Drill & Driven None 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) 25. ACID, FRACTURE, CEMENT SQUEEZE, ETC. DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED ~' r a' ~ ~ ~ ~~ 26. PRODUCTION TEST Date First Production: Method of Operation (Flowing, gas lift, etc.): 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 ~ 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". None ~. Form 10-407 Revised 12/2003 CONTINUED ON REVERSE ~~ ~~ t~~- ~~~~ ,~0\ c 28. GEOLOGIC MARKERS 29. RMATION TESTS NAME MD TVD Include and briefly summarize test results. List intervals tested, and attach detailed supporting data as necessary. If no tests were conducted, state "None". None 30. List of Attachments: Final Well Schematic, Operations Summary 31. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Printed Name: Joe Polva Title: Sr. Staff Drilling Engineer Signature: _ Phone: 907-343-2111 Date: O O s 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 a: 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 • • Pioneer Natural Resources Alaska, Inc. Pioneer Unit Willow Fishhook #1 Plug and Abandonment Operations Summary August 6, 2005 Recon well, water at 24 feet, fill at 170 feet. RIH with 170 feet of 1 inch pipe, set 15 ppg Type I cement plug from 170 feet to surface. Clean up equipment. Move back to BLT#l. August 17, 2005 Cut off well 5 feet below grade. Cement to surface in 6 inch casing. August 18, 2005 Chuck Sheve of AOGCC inspected well for P&A. Welded marker plate on 6 inch casing stub and backfilled excavation. -1- • • Pioneer Natural Resources Alaska, Inc. Willow Fishhook #1 Plug and Abandonment Photos _: ~~„ "k' _.. , :. ~ ~w - .~~ ~, _~ w...,.it... ,, ~' ,. 4 _ ,sr •~. s _. • yyyV 'r `' s ,„ ., ,_ _.. ~. ~ ~}i ,. :w~- '~ , fir,,,,,,-... .~ +. Try -.r . _, ., . ,,. Photo 1: Running 1 inch in Willow Fishhook #1 well. w ~ Photo 2: Cementing operations at Willow Fishhook #1. -2- • )~ _ ~ ,. . ,s. ./ .,,,. .~ '~~. ..' ,- s ,~ .~ .. ^~ • ' ', . ~, ~, t .1. ~, `.r .. .~, ,.Ei ., ~~ ~, ~ ,1;~ ~ '~~ .!~' a ~, ` ~~ ~ f ~y ~ ~-• i Y , ~ i', ,~ i t ti ~; ~~, Photo~3: Willow Fishhook #1 well cut off and cement to surface. -3- ' + ~r . a.. t ..- t .. - ....~ Photo 4: Willow Fishook #1 with marker plate installed. • ~ Pioneer Unit Willow Fishook#1 Final Well Schematic 2 4 ,' 3 htLL:` 1 Well Willow Fishook #1 API 50-009-20029-00 QtrlQtr sec s Pioneer Natural Resources Alaska, Inc. Twp 19N Rng 4W Size Weight Grade Thread Depth County Matanuska,Susitna State Alaska Casing 6.625 NA NA Welded 335 Field Pioneer Unit Country USA Casing GLIKB 269/281 Tubing No. Depth Len th OD ID Description 1 335 335 6.625 6 Drilled and driven to 335 feet 2 Surface Well cuttoff five feet below round level. 3 170 165 Fill in casin 4 170 165 Cement surface lu from 170 b Ito surface. Moaitied by JKM 9-Sep-O; _- • • MEMORANDUM State of Alaska TO: Jim Regg, '-' P. I. Supervisor k`~~`~ FROM: Chuck Scheve, Petroleum Inspector Alaska Oil and Gas Conservation Commission -~ ~i~~ ~~~ DATE: August 1$, 2005 SUBJECT: Surface Abandonment Pioneer Unit Willow. Fishhook #1 ~~PTI~#~~fJk~-2t~7 " 1702 14CC PTD# 199-065 1702 15DA-WD PTD# 199-064 1702 15DD PTD# 199-066 BLT-01 PTD# 199-068 Thursday, August 18,2005: I traveled to Pioneer's Coal Bed Methane exploratory locations to inspect the casing cut off and abandonment of the above listed wells. All casing strings on the above listed wells were cut off at approximately 5' below original ground level. All 5 wells were found full of cement to within 18" of surface in all strings and will be topped off prior to instailation of the marker plates. The marker plates with the required information bead welded to them were on location and will be welded to the outer most casing. SUMMARY: I inspected the casing cut off depth, cement to surface and the P&A marker plates on the \Willow Fishhook #1, BLT-01, 1702 14CC, 1702 15DA-WD and 1702 15DD wells and found all to be in order. Attachments: Willow Fishhook #1.JPG 1702 14CC.JPG 1702 15DA-WD .JPG 1702 15 DD .JPG BLT-01. JPG • • Pioneer Unit Surface Abandonments Photos from AOGCC Inspector Chuck Scheve August 18, 2005 Willow Fishhook # I Casing Stub; Cement to Surface Pioneer 1702 l4CC Casing Stub; Cement to Surface; Marker Plate Pioneer 1702 ISDA Casing Stub; Cement to Surface • • Pioneer 1702 I SDD Casing Stub; Cement to Surface Pioneer BLT'-01 Casing Stub; Cement to Surface; Marker Plate 3 ~~~ ~~ ~~~ ~ ~ ~..~'~~~ ~ ~ ,; )~ F ~ FRANK H. MURKOWSKI, GOVERNOR ~~~~ ~~~~++ ~T~v~1~ pDiIL>•7~~T ~]~ oisi/ Vrt1-7 ~° 333 W. T" AVENUE, SUITE 100 C01~-7f/AQ~~~ls COI~YMIS-$IU1Q ~~ ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Joe Polya Senior Staff Drilling Engineer Pioneer Natural Resources Alaska, Inc. 700 G Street, Suite 600 Anchorage, Alaska 99501 Re: Pioneer Unit Willow Fishhook # 1 Sundry Numer: 305-198 Dear Mr. Polya: 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 a holiday or weekend. A person may not appeal a Commission decision to Superior Court unless rehearing has been requested. ~~ DATED thisZZ day of July, 2005 Sincerely, Daniel T. Seamount, Jr. Commissioner Encl. • • July 19, 2005 Mr. Winton Aubert ~ ~~~ Alaska Oil and Gas Conservation Commission ~~1- 333 W. 7th Ave #100 Anchorage, Alaska, 99501-3539 Alaska Oit & Gss Corer Commrssi°~ Ancharage RE: Sundry Approval (Form 10-403) Pioneer Unit -Willow Fishhook #1 Well Plug and Abandon Dear Mr. Aubert: Attached is the 10-403 form requesting approval to Plug and Abandon the Willow Fishhook #1 well. Pioneer Natural Resources acquired the Pioneer Coal Bed Methane Project through the acquisition of Evergreen Resources Corporation. Evergreen Resources attempted various stimulation techniques in an effort to produce the methane from these wells; however, the wells did not prove economical. Pioneer has determined that this project is not economically feasible at this time based on a thorough evaluation which included peer assists with experts involved in the profitable coal bed methane projects in Colorado and Canada. Pioneer plans to plug the well according to the enclosed P&A procedure. If you have any questions, please feel free to contact me at 907-343-2111 or polyai ~pioneernrc.com. Sincerely, ~^ Joe Polya Sr. Staff Drilling Engineer Pioneer Natural Resources Company 700 G Street, Suite 600 Anchorage, AK STATE OF ALASKA (,~ Z'OS ALAS~IL AND GAS CONSERVATION COMMIS~i APPLICATION FOR SUNDRY APPROVAL ~n AA('. ~~ ~Rn ~U A- 7~ta/Zc~a~ ~~~~~ JUG +~ ~~05 1. Type of Request: Abandon ~ Suspend Operational shutdown Perforate $ gtt8. ~p ' Alter casing ^ Repair well ^ Plug Perforations ^ Stimulate ^ Time Extension ~~(~r~g~ Change approved program ^ Pull Tubing ^ Perforate New Pool ^ Re-enter Suspended Well ^ 2. Operator Name: 4. Current Well Class: 5. Permit to Drill Number: Pioneer Natural Resources Alaska, Inc. Development ^ Exploratory Q 203-207 ~ 3. Address: Stratigraphic ^ Service ^ 6. API Number: 700 G Street Suite 600 Anchorage, AK 99501 50-009-20029-00-00 ~ 7. KB Elevation (ft): 9. Well Name and Number: 258.4' Willow Fishhook #1 8. Property Designation: 10. Field/Pools(s): State of Alaska ADL 389238 Pioneer Unit 11. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth ND (ft): Effective Depth MD (ft): Effective Depth ND (ft): Plugs (measured): Junk (measured): 117' 117' 0' 0' None None Casing Length Size MD ND Burst Collapse Structural n/a n/a n/a n/a n!a n/a Conductor 335 feet 6.500 inches 335 feet 335 feet NA NA Surface nia n/a n/a n/a n/a n/a Intermediate n/a n/a n/a n/a n/a nia Production n/a n/a nia n/a n/a n/a Liner n/a n/a n/a n/a n/a n/a Pertoration Depth MD (ft): Perforation Depth ND (ft): Tubing Size: Tubing Grade: Tubing MD (ft): None None None None None 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 ^ BO P Sketch ^ Exploratory Q Development ^ Service ^ 14. Estimated Date for 15. Well Status after proposed work: Commencing Operations: 7/25/2005 Oil [] Gas ^ Plugged ^J Abandoned Q 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 Joe Polya Printed Name Joe Polya Title Sr. Staff Drilling Engineer Signature ~~ Phone 907-343-2111 Date '"f ?A pps COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: „~ps=/ ~~ Plug Integrity ^ BOP Test ^ Mechanical Integrity Test ^ Location Clearance [~ Other: ~~pp~~~~~~++ p~ RDYI1r1~7 DrL ~~~ ~ ~ ~(JQ~ Subsequent Form Required: `~ ~ ~ , APPROVED BY Approved by: COMMISSIONER THE COMMISSION Date: ~ ~ G... t Form 10-403 Revised 11/2004 t,,,° ~ rti ' `~,.< 4 ~ ~ ~ ~ ~ ~ Submit in Duplicate • Pioneer Natural Resources Alaska, Inc. Plug and Abandon Procedure Willow Fishhook #1We11 The Willow Fishhook # 1 well consists of 6 inch line pipe that was drilled and driven to 335 feet in January 2004. Afield inspection of this site found the casing to be covered by a tack welded steel plate so no fill level was able to be determined, however, some fill is expected. Current and proposed final well schematics for the Willow Fishhook # 1 well are presented in Attachments 1 and 2, respectively. Pioneer proposes the following abandonment procedure for this well. 1. Verify all permit paperwork is in place and give AOGCC 24 hour notice of intent to begin well work operations and intent to cement well and give AOGCC representative chance to witness same. 2. Mobilize necessary equipment and personnel to location. 3. Install circulating riser on top of 6 inch casing for fluid recovery. 4. RIH with cementing hose to bottom of hole. 5. Rig up batch cement mixer. Mix and seta 15 ppg cement plug in the casing. POOH with cement hose. WOC. 6. Excavate around casing to minimum six (6) feet below existing ground level. Cut ~ off well casing a minimum of 5 feet below grade or original ground level, whichever is deeper. 7. Weld on well ID marker plate (114" x 24" x 24") with the following information bead welded on plate: Pioneer NRA APD: 203-207 Pioneer Unit Willow Fishhook # 1 API: 50-009-20029-00 Collect photo documentation of surface cement and cutoff well. Backfill well excavation and grade for positive drainage. Perform complete site inspection immediately after P&A operations if AOGCC inspector is available. ~ 8. Pick up any debris and demobilize equipment to the next well in the program. ~Y i • Attachment 1. Pioneer Unit Willow Fishook #1 Current Well Schematic J ~, Pioneer Natural Resources Alaska, Inc. 335 Created by JRM 9-JUL-05 Attachment 2: Pioneer Unit Willow Fishook#1 Proposed Final Well Schematic 2 Well Willow Fishook#1 API 50-009-20029-00 QtdQtr Sec 3 Pioneer Natural Resources Alaska, Inc. Twp 19N Rng 4W Size Weight Grade Thread Depth County Matanuska,Susitna State Alaska Casing 6.625 NA NA Welded 335 Field Pioneer Unit Country USA Casing GLlKB 2691281 Tubing No. Depth Len th OD ID Descri tion 1 335 335 6.625 6 Drilled and driven to 335 feet, fill level unknown. 2 Surface Well cuttoff five feet below around level. 1 Slats #I Core Disposition ®~-~~~ Subject: Slats #1 Core Disposition From: Shane Gagliardi <shaneg~evergreengas.com> Date: Thu, 20 May 2004 09:33:35 -0800 To: bob_crandall@adniin.state.ak.us CC: Corri Feige <CorriF~),EvergreenGas.com>; Scott Linunernian<ScottZ al/~rer~eenGas.com>, Chris Cornelius <ChrisC(a>EvergreenGas.com> sob, >From this year's core program, we have extracted approximately 8,000' of core. Of this core about 3,000' will be slabbed. Evergreen Alaska will donate all of the core to the state to fulfill the AOGCC requirements of 20 AAC 25.071 (b)(4). We understand that the donated core will be kept confidential for a minimum of two years. The slabbing and photographing process is lengthy; the anticipated approximate date for completion of the process and transferring the core to the state is March 05. If you have any further questions, please contact me @ 907-355-8569. Thanks, Shane I of 1 5/20/2004 9:40 AM \~=IZC-IZ.=1~I* RESOURCES (ALASKA) CORP. A Subsidiary of Evergreen Resources, Ir~c. April 19, 2004 APR 1 ~a0• Winton Aubert Alaska Oil & Gas Cons. Commission Petroleum Engineer Anchorage Alaska Oil and Gas Conservation Commission (AOGCC} 333 West 7th Ave. #100 Anchorage, AK 99501-3539 RE: Request for Operational Shutdown for the Willow Fishhook #1 Dear Mr. Aubert: Attached is a 10-403 application for sundry approval requesting that an operational shut down be granted for the Willow Fishhook #1. The anticipated date for resuming operations is 19 April 2005.'° Due to the results of the other core wells in the area and some newly acquired j geophysical data, it is necessary to update our geologic model of the area to determine the need for coring this well. The well has 6.5 inch casing set to 335' and cemented from the top down. ~ If you have any questions, please feel free to contact me at 907-355-8569 or shanegCa~evergreengas.com. Sincerely, .Shane Gagli rdi Petroleum Engineer • ~~~ Y 1075 Check Street, Suite 202 Wasilla AK 99654 P.O. Box 871845 Wasilla, AK 99687 TEL 907.357.8130 FAX 907,357.8340 ~~- ~fz~ ~~o¢ STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVAL 20 AAC 25.280 1. Type of Request: Abandon ^ Suspend ^ Operation Shutdown ® Perforate ^ Variance ^ Annular Disposal ^ Alter Casing ^ Repair Well ^ Plug Perforations ^ Stimulate ^ Time Extension ^ Other ^ Change Approved Program ^ Pull Tubing ^ Perforate New Pool ^ Re-enter Suspended Well ^ 2. Operator 4. Current Well Class: 5. Permit to Drill Number: Name: Evergreen Resources Alaska Corp. Development ^ Exploratory ^ 203-207 3. Address: P.O. Box 871845 Stratigraphic ® Service ^ 6. API Number:/ 009 20029 50 Wasilla, AK 99687 - - 7. KB Elevation (ft): ' 9. Well Name and Number: /f 258.4 Willow Fishhook #1 r 8. Property Designation: 10. Field/Pool(s): State of Alaska ADL 389238 Wild Cat 11. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth ND (ft): Effective Depth MD (ft): Effective Depth ND(ft): Plugs (measured): Junk (measured): 117' 117' 0' 0' None None Casing Length Size MD ND Burst Collapse Structural Conductor 335' 6.5" 335' 335' / 1620 1370 Surface Intermediate Production Liner Perforation Depth MD (ft): Perforation Depth N (ft): ~ Tubing Size: Tubing Grade: Tubing MD (ft): None None None None None Packers and SSSV MD (ft): Packers and SSSV Type: 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: / ~c.1~7 Commencing Operations: 20 April 2004 ~ Oil ^ Gas ^ Plugged Ly 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 Shane Gagliardi Printed Name Sh a Ga liardi Title Petroleum Engineer Signature Phone 907-355-8569 Date 4/19/04 COn1n11S510t1 USe ~Il~y Sundry Number: ~ ' / .3 p `~'• Conditions of approval: Notify Commission so that a repre sentative may witness Plug Integrity ^ BOP Test ^ Mechanical Integrity Test ^ Location Clearance ^ Other: ~~~ %~ ~~ 1.~/ ~ 11 ~ L.e / ~ ._.., L /.~ / ~ ~~ ~ / `~.-~-Y~' ~ ~~~ r ~ ~~V~ ~PR Subsequent Form Required: ~ ptaska Oit & Gas ConseCommissiot~ Anchorag BY ORDER OF ,rt '~~ Q ~ D Appro d by: j ate: COMMISSIONER THE COMMISSION Form 10-403 wed /2 3 ~~ ~uomitnn oupucate ~, ~~~,,~~~ '~ ~ ~ F ~ .~ ~. N ( (° ~ g ~ ~ s i E € f ~ s 3 AI,ASSA OII. A1~TD GAS COI~TSERQATI011T COMI~IISSYOI~T Shane Gagliardi Petroleum Engineer Evergreen Resources (Alaska), Corp. PO Box 871845 Wasilla, AK 99687 Re: Willow Fishhook #1 FRANK H. MURKOWSKI, GOVERNOF~ 333 W. 7"' AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Evergreen Resources (Alaska), Corp. Permit No: 203-247 Surface Location: 2073' FNL and 2075' FEL, Sec. 3, T19N, R4W, SM Bottomhole Location: 2073' FNL and 2075' FEL, Sec. 3, T19N, R4W, SM Dear Mr. Gagliardi: Enclosed is the approved application for permit to drill the above referenced development well. This permit to drill does not exempt you from obtaining additional permits or approvals required by law from other governmental agencies, and does not authorize conducting drilling operations until all other required permits and approvals have been issued. In addition, the Commission reserves the right to withdraw the permit in the event it was erroneously issued. Operations must be conducted in accordance with AS 31.05 and Title 20, Chapter 25 of the Alaska Administrative Code unless the Commission specifically authorizes a variance. Failure to comply with an applicable provision of AS 31.05, Title 20, Chapter 25 of the Alaska Administrative Code, or a Commission order, or the terms and conditions of this permit may result in the revocation or suspension of the permit. Please provide at least twenty-four (24) hours notice for a representative of the Commission to witness any required test. Contact the Commission's North Slope petroleum field inspector at 659-3607 (pager). Sincere Daniel T. Seamount, Jr. Commissioner BY ORDER OF THE COMMISSION DATED this, day of December, 2003 cc: Department of Fish & Game, Habitat Section w/o encl. Department of Environmental Conservation w/o encl. STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION PERMIT TO DRILL 20 AAC 25.005 ~z~~~ 1 a. Type of Work: Drill ® Redrill ^ Re-entry ^ 1 b. Current Well Class: Exploratory^ Development Oil ^ Multiple Zone ^ Stratigraphic Test ~ Service [] Development Gas^ Single Zone^ 2. Operator Name: Evergreen Resources (Alaska) Corp. 5. Bond; ®Blanket ^Single Well Bond No. RLB0003430 11. Well Name and Number: Willow Fishhook #1 3. Address: P.O. Box 871845, Wasilla, AK 99687 6. Proposed Depth: MD: 3000 ft TVD: 3000 ft 12. Field/Pool(s): .Wildcat 4a. Location of Well (Governmental Section): Sec 3, TWN 19N, Rng 4W Surface: 2073' FNL and 2075' FEL 7. Property Designation: State of Alaska Top of Productive Horizon: Same as above 8. Land Use Permit: ADL 389238 13. Approximate Spud Dater 10 Dec 03 Total Depth: Same as above 9. Acres in Property: 200 acres 14. Distance to Nearest Property: 480 feet 4b. Location of Well (State Base Plane Coordinates): NAD 83 Surface: x- 1644475.07 y- 2837864.81 Zone- 4 10. KB Elevation (Height above GL): 250.3' feet 15. Distance to Nearest Well within Pool: 46,992 feet 16. Deviated Wells: N/A Kickoff Depth: N/A ft. Maximum Hole Angle: NIA 17. Anticipated Pressure (s1e~~,07AAC 25.035) /® ~ Max. Downhole Pressure:~488A•psig. Max.Surface Pressure: psig. 18. Casing Program: Size Specifications Setting Depth Top Bottom Quantity of Cement c.f. or sacks. Hole Casing Weight Grade Coupling length MD TVD MD TVD (Including Stage Data) 6 4.5 10.8 LP LP 200 0 0 204 204 17.1 cu. Ft. 19. PRESENT WELL CONDITION SUMMARY (To be completed for Redrill and Re-Entry Operations) Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD (ft): Effective Depth TVD(ft): Plugs (measured}: Junk (measured): Casing Length Size Cement Volume MD TVD Structural Conductor Surface Intermediate Production Liner OI1S. ~OITN111SS1011 Perforation Depth MD (ft): None Perforation Depth TVD (ft): None Anchorage 20. Attachments: Filing Fee ~ BOP Sketch ~ Drilling Program ~ 7ime v. Depth Plot ~] Shallow Hazard Analysis (~ Property Platy Diverter Sketch[] Seabed Report[ Drilling Fluid Programs 20 AAC 25.050 Requirements [] 21. Verbal Approval: Commission Representative: Date: 22. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Shane Gagliardi Printed Name Shane Ga liardi Title Petroleum Engineer I Signature ~ Phone 907-355-8569 Date ~Z/j/dam Commission Use Only Permit to Drill Number:203-~ 2D API Number. 50-~© - .2 G6,Z. Permit Approval Date: See cover letter for other requirements. Conditions of approval Samples required J~Yes , ^No Mud log required. Yes ^No pp ((~~ __ _rr__~ H droge sulfide measures ^Yes o Directional survey required ^Yes 1$No Other: R~'F-~ i' T~ ~d ~,ev~~~{avo S [~ ~~ 1(~ ~ - BY ORDER OF Approved by: !, MISSIONER THE COMMISSION Date: corm ~u-4ui rcev~a~sfzuus Core Program 2003 APDJJ ~..~ . i ~ F.,..~~ t i i. E ~Z ~~U~~~~~ ~~~ uuN~~~« GctG ~ Nad 27 Coords for Core Wells CJ w Subjer.t: Nad 27 Coords for Core wells From: Shane Gagliardi <ShaneG@Ever~reenGas.cc~m~=~ Date: 1'~'Ian, l Dec 2003 15:12:46 -0900 To: Bob Fleckenstein ~~bob__fleckensteinrcc admin.state.~ik.us= Bob, Here are the coords (in NAD 27) for the core wells. Little Su - N = 2813373.15 E = 633118.22 Sc~.v~Q--~' ~cw~~~'~us Houston Pit - N = 2791671.87 E = 526782.80 Willow Fishhook - N = 2838106.12 E = 504445.60 Kashwitna Lake - N = 2866054.57 E = 487747.09 Sheep Creek - N = 2918957.46 E = 489689.87 I think that most Internet converters can convert Lat Long coords to NAD 27 without a problem. I have found several free programs that can do this. At this point, the standard has become NAD 83 due to the increasing number of handheld GPS tools. Thanks, Shane. 1 of 1 12/16/2003 8:48 AM Dec 05.03 05:56p DH .~ No~ES: 1. COORDINATES SHOWN ARE NADB3 ALASKA STATE PLANE ZONE 4 RASED ON PROTRACTED VALUES. 2 GEOGRAPHIC COORDINATES ARE NAD 83 BASED DN PROTRACTED VALUES. 3. ALL DISTANCES ARE GROUND IN U.S. SURVEY FEET. 4. VERTlCA1 DATUM IS BASED ON ADOT CLIVTROL BENCHMRRK TBM50, EL = 258.35' 1MLLOW-FISHHOOK ~1 LOCATED 2073' FROhI THE NORTH l1NE OF SECTION 3 AND Zfl75' FROM THE EAST LINE OF 5ECT10N 3 T 19 N, R 4 W, SEWARD MERIDIAN AT LAT. fil'46'01.8fi8"N LaNG_ l49'S8'35.647"W A5P ZONE 4 N=2837864.81 E=1644+75.07 (NAD 83) GROUND ELEVATION = 25D.3' 1/4 34 3 cD pl~ GV SCALE 1° ~ 600' N SECTION 3 T19N, R4W, S.M., ALASKA 907.357.8340 p.7 • 32 33 34 I 35 T20N ~.iev T19N 5 3 4 THIS PERMIT' 2 cm g 11 °°" 9 10 ~~~ ~ i I ~ VICINTY MAP SCALE 1" = 1 MILE N 89'58'49 W 2640.82' ~"' '~ 3 2 M M N 3 0 0 P O z Willow Fishhook #1 r-Z 2075.48' wluow FlsHrrDDx RoaD /a~2 3 WILLOW-FISHHOOK #') LOUNSBURY & ASSOCIATES, INC. SU R VEYORS-ENGI NE ERS-PLANNERS 723 W. 6th AVE. ANCHaRAGE, ALASKA 99501 PERMIT DRAWING (907) 272-5451 FAX (907) 272-9065 DRAWN KWA CHECKED KWA SCALE 1' = 600' November 25, 2003 DWG NAME 03-031-8.DWG ro osed Drillin Procedure p 9 Core Program 2003 Matanuska-Susitna Borough, Alaska Objective The objective of this operation is to core the intended wells for geologic study to determine coal bed methane exploration potential and begin to describe the Mat Su Basin Casing Program Surface casing will be run from surface through the glacial gravels to protect fresh water. The surface hole will be 6 inch diameter and the surface Casin will be X-42 4 inch nominal schedule 40 line i e. Hole Size Casing Size Casing Weight Casing Casing Approx Casing Cement (in) OD (in) (Ibslft) Grade Connection Depth Interval ft Surface 6 4.5 10.8 LP LP 200 to surface Mud Program Water will be the primary drilling fluid used. Bentonite and EZ-Mud DP or other fresh water polymer may be used if hole conditions warrant. After the well has reached TD, this mud will be conditioned and transported to the next site. The cuttings will be tested and either spread on location, sent to an off site disposal facility or placed back in the hole as part of the abandoning process. Open Hole Logging Program Memory tools will be latched into the landing sub above the core barrel being pulled out of the hole. The hole will be logged as the drill pipe is Lo Interval Single Induction TD tot 20 ft in Surface Casing Sonic Porosit TD tot 20 ft in Surface Casin Gamma Ra TD tot 20 ft in Surface Casin Cali er TD tot 20 ft in Surface Casin Compensated Density TD tot 20 ft in Surface Casing Neutron Porosity TD tot 20 ft in Surface Casing Formation Tops Formation Estimated Tops (ft KB) Quarternary Gravel Surface Tertiary Tyonek 50-200 General Information All information not publicly available is considered Tight Hole and confidential. Spill Prevention Plan and Bear Mitigation measures must be adhered to at all times. Core Program 2003 APD • Proposed Drilling Procedure Core Program 2003 Matanuska-Susitna Borough, Alaska SURFACE AND CORE HOLE 1. MIRU DJ excavation. Make any necessary changes to location to accommodate core drilling rig. a. .Dig 6' cellar w/ 6' diameter and place culverts. 2. MIRU Discovery Drilling. 3. Drill 6" hole through base of gravel (50'-200' anticipated) and set 4" casing to bottom. a. Evergreen personnel will call TD on surface hole. 4. Cement casing in place w/ 1-3 bbl cmt w/ cmt wt @ 15.6 ppg ~ a. Water requirements - 5.2 gal/sk b. Slurry volume -1.18 cu ft/sk c. Leave 1" to 2" of cement in cellar for seal 5. RDMO Discovery drilling to next well. 6. MIRU Layne Christiansen CS 4000 core drilling rig. 7. Fill mud tanks w/ city water. Make sure there is enough mud on site to mix kill wt mud if necessary. 8. WOC for 6 hours. 9. NU and test BOP. ~ 10. Pressure test casing to 1500 psi. 11. Drill cmt and csg shoe. Drill 20 feet into new formation and POOH. 12. RIH with HQ core bit and barrel. 13. Core to Arkose Ridge formation. The well will be TD'd above this level if significant hole problems occur. a. Arkose Ridge formation: Fluvitile and alluvial feldsparic sandstone, conglomerate, siltsone and shale containing abundant plant. fragments. b. The core will be described on site by Evergreen personnel or contractors in the following manner: i. Apparent texture variations 1. Fractures 2. Bedding plane attitudes ii. Apparent fluid variations 1. Presence of hydrocarbons iii. Apparent lithologic variations 1. Rock type 2. Porosity 3. Sedimentary structure 4. Grain size 14. Evergreen personnel will call final TD. POOH w/ last core inner tube. 15. Condition hole. 16. PU 30 ft off of bottom to make room for logging tools. 17. MIRU Reeves Wireline. Drop memory tools consisting of Gamma Ray, Sonic Porosity, Array Induction, Compensated Neutron Density and Caliper. 18. POOH and LD drill pipe, rods, core barrel and core bit and logging tools. 19. TIH w/ "B" rods to TD. (Cmt calculations are based on TD=2500' and surface csg @ 200'). a. Surface casing - (0.01574bb1s/ft)(200') = 3.14 bbls b. HQ Hole - (0.01440 bbls/ft)(2300') = 33.12 bbls c. Total fluid required to fill hole - 36.26 bbls 20. Pump 3 bbls cmt and POOH 210 ft. 21. Pump 18 bbls (1250ft) of mud and cuttings and POOH to 1000 ft. 22. Pump 15.1 bbls cmt 23. POOH w/ "B" rods. 24. Clean-up well site. 25. RDMO Layne Christianson to next hole. 26. WOC 24 hours. ~/ 27. MIRU DJ Excavation. l$" a. Cut 4" casing 3' below orig~ round IeveL b. Weld %." thick plate w/~diameter onto 4" casing. c. Plate must have the following bead welded information: i. Evergreen Resources ii. Permit to drill number (Number will be provided as soon as it is issued by AOGCC) Core Program 2003 APD iii. Well number iv. API number (Number will be provided as soon as it is issued by AOGCC) d. Remove culvert and back fill cellar. 28. RDMO DJ Excavation. Core Program 2003 APD Proposed Drilling Procedure Core Program 2003 Matanuska-Susitna Borough, Alaska Core Hole Diagram 6" Hole to ± 100' 4" LP (4.5" OD, 4.026" ID, 3320 psi) @ ± 200' Cemented w/ 25 sx Portland cmt Tyonek Formation HQ Diameter Hole (3.850") to 1800' 2.5" core. Log hole using memory tools latched into landing sub while pulling drill pipe. Rig Layout Diagram Core Program 2003 APD ~' Solids Control Van 40' De-gasser 23' Core Drill 20' Core Handling Rods Parts Trailer Water Truck Vehicle Parking 45' 60' Proposed Telephone Contact List Core Program 2003 Matanuska-Susitna Borough. Alaska Company Address Name Telephone Evergreen Resources Inc. Suite 1200 Dennis Carlton Office: 303-298-8100 1401 Seventeenth Street Senior Vice President of Fax: 303-298-7800 Denver, Colorado 80202 Operations Evergreen Resources Inc. Suite 1200 Scott Zimmerman Office: 303-298-8100 1401 Seventeenth Street Vice President of Operations Cell: 303-981-3314 Denver, Colorado 80202 and Engineering Fax: 303-298-7800 Evergreen Resources Alaska P.O. Box 871845 Shane Gagliardi Office: 907-357-8130 Wasilla, AK 99687 AK Project Engineer Cell: 907-355-8569 Fax: 907-357-8340 Evergreen Resources Alaska P.O. Box 871845 Mike Bellowich Office: 907-357-8130 Wasilla, AK 99687 AK Project Geologist Cell: 907-232-9538 Fax: 907-357-8340 Evergreen Resources Inc. Suite 1200 Jerry Jacobs Office: 303-298-8100 1401 Seventeenth Street Environmental Manager Fax: 303-298-7800 Denver, Colorado 80202 Hampton &Waechter Suite 300 Noel Waechter Office: 303-825-7140 1645 Court PL Denver, Colorado 80202 Layne Christiansen 2370 Steese Hwy. Shane Crum Office:918-322-3095 Fairbanks, AK 99712 Mobil 918-625-1668 Fax:918-322-3829 MI Swaco 721 West 1St Ave. Dennis Jackson Office: 907-274-5501 Anchorage, AK 99501 Reeves Wireline 121 South Country Estates Bob Gales Office: 785-331-2933 Road, Liberal, KS 67901 Core Program 2003 APD Well Control Diagrams Core Program 2003 Matanuska-Susitna Borough, Alaska Manufacturer: Cavins Oil Well Tools Size: 4" Rating: 3000 psi Usage: Used for mineral exploration core drilling in Nevada. The combination Blowout Preventer and Sucker Rod Stripper combines safety and economy m a tool aesignev iv perrvnn uie necessary function of line wiping. It can be operated from anywhere on the derrick floor utilizing pressure from bottled nitrogen, an optional hand operated hydraulic pump, or the optional BOP control system. When swabbing, a short lubricator the length of the swab between the master gate and the Blowout Preventer is all that is required. Pressure connection is for 1/4" A.P.I. pipe. The units are tested to give full closure up to 3000 psi well pressure with no leakage. The full closure feature of the Blowout Preventer will give a temporary seal, allowing ample time to close the master gate should a well blowout occur. BALL LOCK OIL SAVER The use of the Ball Lock Oil Savers by drilling and production departments has earned this service proven tool a reputation for trouble-free operation with simplicity. The CAVINS Ball Lock Oil Savers are made of high carbon steel and precision machined for demanding dependability and safety in a wide range of service applications. Exhaustive testing in the excess of 3000 psi is further assurance against failure or leakage. Incorporated in its design, which affords a cleanly wiped wire line, is its safeguard against blow out. One important feature of the Oil Saver is its automatic ball release design. Hardened Steel Balls hold the traveling assembly securely in the body until released by the upward travel of the Rope Socket. The Rubber Packing unit with its internal fins provide the ultimate in wire characteristics with only a normal pressure, or drag, on the line. The Packing Rubber is compounded of special abrasive and oil resistant properties to give the rubber longer wear. A tough spark-proof die cast alloy is utilized in the top and bottom line guides and enhances reduced wear in the rubber packing unit. A high quality leather hydraulic packing ring wards against leakage in the area between the body and the traveling assembly. The Hydraulic Bonnets provide an even greater degree of wiping efficiency. The wire line can be completely stripped of all oil, or water and an Oil Saver outfitted with a Hydraulic Bonnet foregoes the necessity of tools for "taking up" wear in the packing element. The one hand operation requires only a few strokes of the pump handle to give complete wiping action or turn the release valve when no wiping is required. The Hydraulic action affords a greater rubber contact surface as the packing rubber is compressed around the line. The line is completely surrounded and sealed from blow-out leakage by-the action of the Hydraulic unit. There is no danger of packing rubber or other elements falling into the well. Core Program 2003 APD • Well Control Dia rams 9 Core Program 2003 Matanuska-Susitna Borough, Alaska 1. Oil saver fitted with stripping rubbers to fit 3/16" slick line. Gan be operated manually and/or hydraulically. 2. Cross over from drill pipe thread to 4" API LP thread. 3. Relief valve for lubricator. 4. Lubricator made of HQ drill pipe.. Rated to 4600 psi. 5. TIW (stabbing valve). Rated for 3000 psi. Used for shutting in drill pipe ID to rig up for pulling core. 6. Drill pipe sitting in foot clamps during coring operation. 7. Cavins 4" 3000 psi Annular BOP. BOP can be operated manually or hydraulically. Will be fit with rubbers to provide pressure control on the outer tube of the coring assembly. 8. 4" Full port 3000 psi valve. 9. Standard spool threaded to fit 4" line pipe connections w/ two 2" -ports that will be fitted w/ 3000 psi full port ball valves. 10. 4" API line pipe surface casing. NOTE: ALL CONNECTIONS ARE THREADED Core Program 2003 APD .Tubular Information Core Program 2003 Matanuska-Susitna Borough, Alaska Drill Pine IHQ) Size Pipe Weight ID Drift Collapse Burst Tensile Capacity Capacity 6" Hole s A 6" Hole A u s (in) Grade (ppt) (in) (in) (psi) (psi) (k-Ibs) (bbl/ft) (ft/bbl) bbl/ft ~b bi 3.5 HMQ 4.5 3.188 3.188 3910 4600 88.46 0.00911 109.7 0.02307 43.35 Surface Casino Size Pipe Weight ID Drift Collapse Burst Tensile Capacity Capacity 6" Hole Annulus 6" Hole Annulus (in) Grade (ppt) (in) (in) (psi) (psi) (k-Ibs) (bbls/ft) (ft/bbl) bbl/ft ft/bbl 4 5" LP X42 10.8 "4.026 4.026 2650 3320 0,01574 63.51 0.0153 65.36 . Sch 40 Core Program 2003 APD Core Program 2003 Matanuska-Susitna Borough, Alaska List of Exceptions For Drilling • Exception #1 Regulation 20 AAC 25.030 -CASING AND CEMENTING. (f) Except for through-tubing drilling, a formation integrity test must be performed if BOPE is installed on a casing. The test must be performed to a predetermined equivalent mud weight, leak-off, or fracture pressure as specified in the application for the Permit to Drill. The test must be conducted after drilling out of the casing shoe into at least 20 feet but not more than 50 feet of new formation. The test results must demonstrate that the integrity of the casing shoe is sufficient to contain anticipated wellbore pressures identified in the application for the Permit to Drill. The test procedure followed and the data from the test and any subsequent tests of the formation must be recorded as required by 20 AAC 25.070 (1). Authority 20 AAC 25.030 -CASING AND CEMENTING. (g) Upon request of the operator, the commission will, in its discretion, approve variances from the requirements of (b) - (f) of this section to allow for special or unusual conditions if the design requirements of (a) of this section are satisfied. Justification No intermediate casing will be set and surface casing will be set relatively close to surface; therefore, a formation integrity test is not valid. Exception #2 Regulation 20 AAC 25.033 -PRIMARY WELL CONTROL FOR DRILLING: DRILLING FLUID PROGRAM AND DRILLING FLUID SYSTEM. c) A drilling fluid system intended to maintain the wellbore in overbalanced condition must include (1) a recording drilling fluid pit level indicator with both visual and audible warning devices located in the immediate area of the driller's station; (2) a drilling fluid measuring system or trip tank for accurately determining drilling fluid volumes required to fill the wellbore on trips; (3) a drilling fluid flow sensor with a readout convenient to the driller's station to enable the operator to determine whether drilling fluid returns equal drilling fluid pump discharge rates; Authority 20 AAC 25.033 -PRIMARY WELL CONTROL FOR DRILLING: DRILLING FLUID PROGRAM AND DRILLING FLUID SYSTEM. Q) Upon request by the operator, the commission will, in its discretion, approve a waiver of the requirements of (c) - (g) of this section if the alternative drilling fluid program and drilling fluid system meet the design criteria of (b) of this section and the corresponding equipment and procedures are at least equally effective in preventing the loss of primary well control Justification The steel mud tank will be placed next to the drillers console in plain sight. There will be constant circulation of drilling fluids taking retums into the cellar. The mud system will have adequate volumes for maintaining the fluid level in the hole while tripping. For this process a couple of bit trips are anticipated per hole. Lost circulation is not anticipated as indicated by the previous drilling in the area. Other wells drilled in the area were drilled using air; during that drilling operation, gas influx was not an issue. There is no indication from past drilling that hydrogen sulfide gas will be encountered. Exception #3 Regulation 20 AAC 25.035 -SECONDARY WELL CONTROL FOR PRIMARY DRILLING AND COMPLETION: BLOWOUT PREVENTION EQUIPMENT AND DIVERTER REQUIREMENTS. (c) (1) (A) of at least 16 inches, unless a smaller diameter is approved by the commission to account for smaller hole size, geological conditions, rig layout, or surface facility constraints. (B) the actuating mechanism for the vent line valve must be integrated with the actuating mechanism for the annular pack-off device in a fail-safe manner so that the vent line valve automatically opens before full closure of the annular pack-off; (C) the vent line must extend to a point at least 75 feet Authority 20 AAC 25.035 -SECONDARY WELL CONTROL FOR PRIMARY DRILLING AND COMPLETION: BLOWOUT PREVENTION EQUIPMENT AND DIVERTER REQUIREMENTS. Core Program 2003 APD (h) Upon request of the operator, the commission will, in its discretion, approve a variance (1) from the BOPE requirements in (e) of this section if the variance provides at least an equally effective means of well control; and (2) from the diverter system requirements in (c) of this section if the variance provides at least equally effective means of diverting flow away from the drill rig or if drilling experience in the near vicinity indicates that a diverter system is not necessary. Justification The largest hole size being cored is only 3.85 inches. A 16 inch diverter vent line is not necessary. Due to the size of the location, manual valves and adjustable chokes would be sufficient to provide pressure control. The DNR states that the locations should be placed such that minimal surface damage is caused; therefore, the. proposed location sizes are 45' x 65'. The location size is smaller than the required length of the vent line. Exception #4 Regulation 20 AAC 25.035 -SECONDARY WELL CONTROL FOR PRIMARY DRILLING AND COMPLETION: BLOWOUT PREVENTION EQUIPMENT AND DIVERTER REQUIREMENTS. (e) (1) (A) for an operation requiring a BOP stack equal to or less than API 5K, BOPE must have at least three preventers, including (i) one equipped with pipe rams that fit the size of drill pipe, tubing, or casing being used, except that pipe rams need not be sized to bottom-hole assemblies (BHAs) and drill collars; (ii) one with blind rams, except that a subsea BOPE assembly must have blind/shear rams in place of blind rams; and (iii) one annular type Authority 20 AAC 25.035 -SECONDARY WELL CONTROL FOR PRIMARY DRILLING AND COMPLETION: BLOWOUT PREVENTION EQUIPMENT AND DIVERTER REQUIREMENTS. (h) Upon request of the operator, the commission will, in its discretion, approve a variance (1) from the BOPE requirements in (e) of this section if the variance provides at least an equally effective means of well control; and (2) from the diverter system requirements in (c) of this section if the variance provides at least equally effective means of diverting flow away from the drill rig or if drilling experience in the near vicinity indicates that a diverter system is not necessary Justification Being a mineral exploration rig, this equipment is not set up to easily accommodate blow out prevention equipment. The size of the rig and the size of the surface casing indicate that a small bore BOP is required. A Cavins 3000 psi annular BOP is requested to satisfy this portion of the secondary well control requirements.. There will be no pipe rams and the blind rams will consist of a full port valve placed below the annular preventer. The annular can be closed either manually using a hand pump or by using rig hydraulics. Exception #5 Regulation 20 AAC 25.035 -SECONDARY WELL CONTROL FOR PRIMARY DRILLING AND COMPLETION: BLOWOUT PREVENTION EQUIPMENT AND DIVERTER REQUIREMENTS. (e) (4) (A) a hydraulic actuating system with (B) locking devices on the ram-type preventers, (D) in rotary drilling rig operations, one complete set of operable remote BOPE controls on or near the driller's station, in addition to controls on the accumulator system (F) a kill line and a choke line each connected to a flanged or hubbed outlet on a drilling spool, the BOP body, or the tree, with two full-opening valves on each outlet, conforming to the following specifications: ii) the outer valve on the choke side must be a remotely controlled hydraulic valve; (H) a choke manifold equipped with (i) two or more adjustable chokes, one of which must be hydraulic and remotely controlled from near the driller's station if the operation requires a BOP stack equal to or greater than API 5K; Authority 20 AAC 25.035 -SECONDARY WELL CONTROL FOR PRIMARY DRILLING AND COMPLETION: BLOWOUT PREVENTION EQUIPMENT AND DIVERTER REQUIREMENTS. (h) Upon request of the operator, the commission will, in its discretion, approve a variance (1) from the BOPE requirements in (e) of this section if the variance provides at least an equally effective means of well control; and (2) from the diverter system requirements in (c) of this section if the variance provides at least equally effective means of diverting flow away from the drill rig or if drilling experience in the near vicinity indicates that a diverter system is not necessary. Core Program 2003 APD Justification • The proposed BOP does not have rams. This rig is not configured to have an additional set of BOP controls near the driller's console, this rig does not use ROPE on a regular basis when conducting mineral exploration. This rig is not equipped to run hydraulically operated chokes; therefore, manual adjustable chokes are requested. Due to anticipated low pressure, threaded connections are requested for the entire operation. Exception #6 Regulation 20 AAC 25.035 -SECONDARY WELL CONTROL FOR PRIMARY DRILLING AND COMPLETION: BLOWOUT PREVENTION EQUIPMENT AND DIVERTER REQUIREMENTS. (e) (10) (F) be assembled without hammer unions or internally clamped swivel joints, except that hammer unions and intemally clamped swivel joints may be used on the kill line upstream of the valves that are flanged to the wellhead or tree. (e) (9) connections directly to the BOPE, other than connections described in (8) of this subsection, must be flanged or hubbed, except that suitably pressurerated quick connects may be used if a positive seal manual valve, hydraulic valve; or BOPE blind ram and an annular type preventer or sealing ram are flanged to the wellhead or tree below the quick connection; Authority 20 AAC 25.035 -SECONDARY WELL CONTROL FOR PRIMARY DRILLING AND COMPLETION: BLOWOUT PREVENTION EQUIPMENT AND DIVERTER REQUIREMENTS. (h) Upon request of the operator, the commission will, in its discretion, approve a variance (1) from the BOPE requirements in (e) of this section if the variance provides at least an equally effective means of well control; and (2) from the diverter system requirements in (c) of this section if the variance provides at least equally effective means of diverting flow away from the drill rig or if drilling experience in the near vicinity indicates that a diverter system is not necessary. Justification The proposed BOP does not have rams. Request that all connections be threaded and hammer unions be approved. Anticipated surface pressure will be well within the pressures ratings of all BOPE. This welt head is not intended to be a permanent fixture for production. Exception #7 Regulation 20 AAC 25.035 -SECONDARY WELL CONTROL FOR PRIMARY DRILLING AND COMPLETION: BLOWOUT PREVENTION EQUIPMENT AND DIVERTER REQUIREMENTS. (e) (6) (F) be assembled without hammer unions or internally clamped swivel joints, unless the commission determines that those joints do not compromise maintenance of well control; (e) (8) connections attached directly to the wellhead, tree, or BOPE must be flanged or hubbed; Authority 20 AAC 25.035 -SECONDARY WELL CONTROL FOR PRIMARY DRILLING AND COMPLETION: BLOWOUT PREVENTION EQUIPMENT AND DIVERTER REQUIREMENTS. (h) Upon request of the operator, the commission will, in its discretion, approve a variance (1) from the BOPE requirements in (e) of this section if the variance provides at least an equally effective means of well control; and (2) from the diverter system requirements in (c) of this section if the variance provides at least equally effective means of diverting flow away from the drill rig or if drilling experience in the near vicinity indicates that a diverter system is not necessary. Justification Request that all connections be threaded and hammer unions be approved. Hammer unions to be used are rated for 5,000 psi. Anticipated surface pressure will be well within the pressures ratings of all BOPE. This well head is not intended to be a permanent fixture; and intended annular BOP is threaded. Exception #8 Regulation 20 AAC 25.035 -SECONDARY WELL CONTROL FOR PRIMARY DRILLING AND COMPLETION: BLOWOUT PREVENTION EQUIPMENT AND DIVERTER REQUIREMENTS. (e) (9) (A) an inside BOP and afull-opening drilling assembly safety valve in the open position on the drill rig floor to fit all connections that are in the drilling assembly; Authority 20 AAC 25.035 -SECONDARY WELL CONTROL FOR PRIMARY DRILLING AND COMPLETION: BLOWOUT PREVENTION EQUIPMENT AND DIVERTER REQUIREMENTS. (h) Upon request of the operator, the commission will, in its discretion, approve a variance (1) from the BOPE requirements in (e) of this section if the variance provides at least an equally effective means of well control; and Core Program 2003 APD (2)~ the diverter system requirements in (c) of thision if the variance provides at least equally effective means of diverting flow away from the drill rig or if drilling experience in the near vicinity indicates that a diverter system is not necessary. Justification The use of a continuous core system prevents the use of internal check valves. A lubricator system will be employed when the core is to be retrieved. Exception #9 Regulation 20 AAC 25.050 WELLBORE SURVEYS. (a)(3) surveyed by a complete continuous directional survey if a portion of the well path is less than 500 feet from a property line where the ownership by owner or landowner is not identical on both sides of the line, or if a portion of the well path is less than 200 feet from any other vertical or deviated well; the survey must be taken at intervals not more than 100 feet apart, beginning within 100 feet of the surface. Authority 20 AAC 25.050 WELLBORE SURVEYS. (h) Upon application, the commission will, in its discretion, waive all or part of the directional survey requirements of this section or approve al4emate means for determining the location of a wellbore if the variance at least equally ensures accurate surveying of the wellbore to prevent well intersection, to comply with spacing requirements, and to ensure protection of correlative rights. Justification Request that inclination surveys every 500 feet as stipulated in 20 AAC 25.050 (a) (2) be adequate for this operation. There will be no production from these wells; therefore, spacing requirements and correlative rights should not be an issue. Exception #10 Regulation 20 AAC 25.055 -DRILLING UNITS AND WELL SPACING. (a)(2) for a well drilling for gas, a wellbore may be open to test or regular production within 1,500 feet of a property line only if the owner is the same and the landowner is the same on both sides of the line Authority 20 AAC 25.055 -DRILLING UNITS AND WELL SPACING. (d) The commission will review an application for an exception to the provisions of this section in accordance with 20 AAC 25.540. The applicant for an exception shall send notice of the application by certified mail to the owners, landowners, and operators described in (1) of this subsection and shall furnish the commission with a copy of the notice, the date of mailing, and the addresses to which the notice was sent. The application must include (1) The names of all owners, landowners, and operators of all properties within 1,000 feet of a well drilling for oil or within 3,000 feet of a well drilling for gas for which an exception is sought; (2) A plat drawn to a scale of one inch equaling 2,640 feet or larger, showing the location of the well for which the exception is sought, all other completed and drilling wells on the property, and all adjoining properties and wells; and (3) An affidavit by a person acquainted with the facts, verifying that all facts are true and that the plat correctly portrays pertinent and required data. Justification These wells are intended for stratigraphic testing only; therefore, no gas production or sales will result from any of these wells. The above listed requirements will be met. Exception #11 Regulation 20 AAC 25.061 (a) -Well Site Surveys For an exploratory or stratigraphic test well, near surface strata to a depth of 2,000 feet in the vicinity of the well must be evaluated seismically by common depth point refraction or reflection profile analysis, or by another method approved by the commission, to identify anomalous velocity variations indicative of potential shallow gas sources. Analysis results must be included with the application for the Permit to Drill (Form 10-401). Authority 20 AAC 25.061 (c) -Well Site Surveys Upon request by the operator, the commission will, in its discretion, waive the requirements of this section if the operator can identify, by other equally effective means, the likelihood of encountering potential shallow gas or seabed hazards or if the commission already has information that substantiates the presence or absence of shallow gas or seabed hazards. Core Program 2003 APD Justification • Several wells have been drilled in the area through the intended formations without incident. Drilling history in the area indicates that over pressured shallow gas is not going to be a problem; therefore, seismic data collection and interpretation would be an unnecessary expense. Core Program 2003 APD Dec 17I 03 02:57p DH. RESOURCES (ALASKA) CORP. A Subsidiary of Evergreen Resources, Inc. December 12,2003 Mr. Bob Crandall Alaska Oil and Gas Conservation Commission 333 W. 7th Ave #100 Anchorage, Alaska, 99501-3539 907 .7.8340 p.2 RE: Additional Information for Evergreen Resources Alaska's Core Program 2003 Resulting from Conversation with Commissioner Seamount Dear Mr. Crandall: As a result of conversations with Commissioner Seamount, Evergreen will monitor water produced during the surface hole drilling process far salinity. Evergreen professionals will be on location with field measuring equipment to determine the depth at which a significant change in water salinity occurs. The change in water salinity as measured by Evergreen professionals will dictate the surtace casing set depth for each of the wells in the core drilling program.' The use of this method will ensure that the portion of the surface hole used for drinking water is protected. In the event that a deviation in water conductivity is not noticed, the Alaska Oil and gas Conservation Commission will be notified before casing is set. If you have any questions, please feel free to contact me at 907-355-8569 or shaneq(u7evergreengas.com. Sincerely, Shane Gagliardi Petroleum Engineer 1075 Check Street. Suite 2D2 Wasitla AK 99654 P.O. Box 871845 Wasilla. AK 99687 7E! 9073S78i30 FAX 907.357,8340 \~=IBC-I~.=1~1~ ~ RESOURCES (ALASKA) CORK A Subsidiary of Evergreen Resources, Inc. December 5, 2003 Ms. Sara Palin, Chair Alaska Oil and Gas Conservation Commission 333 West Ave., Suite 100 Anchorage, Alaska 99501 RE: Application for Permit to Drill: Core Program 2003 Target: Tertiary Tyonek Proposed TD: 3000 Feet ...Proposed Spud Date: 10-December-2003 Dear Ms. Palin, Evergreen Resources Alaska Corporation hereby applies for a Permit to Drill for the subject core wells located approximately 30 miles north of Anchorage. The wells are planned as a shallow, straight holes drilled to evaluate the producibility of the Tyonek Coals. A core drilling company currently operating in the Fort Knox gold mine will be used to provide a continuous wireline coring operation. The rig to be used is a CS-4000 that is typical for mineral exploration. A six inch hole will be drilled through the glacial gravel section and a string of 4.5 inch line pipe will be cemented in place. Once the cement has hardened and the appropriate test has been conducted for casing integrity, an HQ hole (3.875" diameter) will be drilled to TD. A logging suite consisting of gamma ray, array induction, compensated neutron density, caliper and sonic porosity tools .will be run. After all cores have been retrieved and logs run, the hole will be permanently abandoned. Attached. is information required by 20 AAC 25.005 (a) .and (c) for your review. Due to the differences in equipment and methods used for mineral core drilling, Evergreen requires several variances from current AOGCC regulations. , The designated contact for reporting responsibilities to the Commission is Shane .Gagliardi; Alaska Projects Engineer, office: 907-357-8130 or cell: 907-355-8569. Sincerely, Evergreen Resources (Alaska) Corporation Shane Gagliardi Alaska Projects Engineer enclosures ~~C~~ i! ~L.l DEC - 5 ~QO~ Alaska Oil & Gas Cons. Commissl0n Anchorage Core Pr~gram 2003 APD ~~, `~ ~ 4 ~ ~ ~~ ~ ~ :,. 1075 Check Street, Suite 202 Wasilla AK 99654 Conditions of Approval Evergreen Resources (Alaska) Corp. Willow Fishhook #1 (PTD 203-207) 1. Per 20 AAC 25.030 (g), the formation integrity test requirement is waived. 2. Per 20 AAC 25.033 Q), the drilling fluid system requirements are waived. 3. Per 20 AAC 25.035 (h) (1) and (2), the BOPE and diverter requirements are waived. 4. Per 20 AAC 25.050 (h), alternate well bore directional survey intervals are approved. 5. Per 20 AAC 25.061 (c), the near surface survey requirement is waived. 6. Test BOPE to 1500 psi. 7. Abandonment plug cement volumes may be adjusted dependent upon actual subsurface conditions. ! ~ Permit to Core Drill hate of Petnait: December Z, 2p03 Core Hole: Willow Fishhook #1 PERMIT TO CORE DRILL WHEREAS, Nano A. Hohmann of TCeith County, Nebraska hereinafter called "Gran#or" (whether one or more), is the owner of certain shallow gas leasehold rights ("Lease Rights") covering the following described land situated in SEE ATTACIT.C;D EXHIBIT "A" containing ___ 514.87 _ _ acres more or less, to-wit: NOW THEREFOR)/, for and in consideration ofthe sum of ten_and more ($10_QOtI Dollars, cash in hand paid, receipt of which is hereby acknowledged, and other good and valuable considerations, Grantor hereby Gives and grants to __ Eyer:tireen Resources_ Inc. Of Denver County, Colorado ,hereinafter called "Grantee", the right, to the extent and only to the extent that Grantor has such rights under the Lease Rights, to enter upon said land or premises with such equipment, and machinery as may be needed, and to explore and test for geological information and to drill and. core to evaluate ail minerals, including oil and gas. Grantee agrees to pay Grantor herein the sum of ten and more dollars ($10.00+) for each .hole actually drilled by Grantee on said land or premises as fiall liquidated damages, payable after said hole or holes have been drilled; and, Grantee agrees to be responsible for any damage to growing crops, gates, fcantes, buildings and other improvements on said land or premises caused by its operations thereon and shall release and inderunify Grantor from any claims arising from such operations. Grantee agrees to comply with all federal and state laws, zules and regulations, and will comply with all provisions ofthe applicable lease. All terms and conditions of this agreement will extend to and be binding upon the heirs, administrators, executors, successors and assigns ofthe respective parties hereto. Grantor makes no warranties of title of any nature relating to the Lease Rights or the lands covered hereby. This Fernait may be executed in counterparts, which collectively shall comprise a single document. To facilitate and expedite completion of this Permit, rfie parties agree that a facsimile copy of an executed counterpart of this Permit shall be binding on the signing party and shall be treated as an original document. Signed for IdentiCcation dais ~ day of December 2003. Nancy A. Hollntann vt, e a Rgsources, Inc. L'y Jo D. B cicley, d Manager ACKNOWLrnGMENTS FOI:USE IN ARIZONA, OREC4N, NEBRASKA, KANSaS, COLORADO WYpM[NCr, NORTii DAKOTA, NEW 1Vf1rXiC;O STATE OF NEBRASKA ) ss. (Indlvldual(s) Acknowledgment) COUNTY OF KETTH ) The fomgoing msinrment was acknowledged before me this-. „-day of 2003 By .,, Nancv A. Hotlm:t~o„ lwy Commission expires Notary Public STATE OF COLORADO ) ss. {Corporate Acknowledgment) COUNTY OF DENVER ) The ['oregoing instn~ntent was aclmowlGdgcd before me this'7 ~ day or;~~~~~~$~'~- .2003 RY_.-~hn D. Buckley. [.and MAt}2gCr „ Of Everprecn Resourc~s._]nc. .a^ Colorado co oratio on behalf of the eo '~~ y ~'' My Commi~iotl t:xpires ~-'; . ~.,, -:.. .,~~': ;.,,•. M Commission ex ire '~ ~ `~ ~ 4`"` Y p s' Oil29J2007 ~ r ~v Notary bile ~,.r_ N," ~. +., .,~ . :.. •.a*. ~ 1~ 900/%OO l~j S~~2i110S~2i lQd~2I02ISA~ 008E 86Z ~Ot'; Xy3 £Z ~ 9i t';OOZ/9T/ZT .-..v Exhibit `A' Attached to and made apart hereof to that certain Permit to Core Drill dated i Aecember 2, 2043, by and between Na~~cy A. i~allmann, ("Grantor") and Evergreen Resources, inc., ("Grantee") ADL 389238 Nan A. I~Yolinnann ~Y ~: 19 N., R. 4 W., SEW.ARD h1ERIDL4N, ALASKA. SECTION 3, SUR VEYE.D, FRAG~TIONAL, ALL, .EXCLUDING S2SE4NW4SE4NW4, NE4SW~{SE4N~'4, N2SE4SW4SE4NW4, AND ULO Lt~TS 1, 2 AND3 INCLUDING TH,F BED DI' WILLOW. CREEK WITfiIN TIIE DESCRI,BEI) LANDS, 514.87 ACRES THIS TRACT CONTAINS 514.87 ACRES MORE UR LESS 900/900 ~ S3~2IIIOS32i N~32i~?I~r13 0086 86Z COC Xt~3 fiZ ~ ST C40Z/9T/ZT 12/17!2003. 09:05 9073337889 W D VALLEE . T19N, 1~4W, SEWARD MERIDIAN, ALASKA WILLOW FISHHOOK # 1 PAGE 04 From U.S.G.S. Topographic Map ANCHORAGE (C~8 & D-8), TYONEK (C-1 & p~1), ALASK~- 12/17/2003 09:05 9073337884 W 0 VALLEE • ~CTIQN 3, T19N, R4W, ~.M. WfLLCaV1/-~1SMH~QK RC)A[] PAGE 06 12/17/2003 09:05 9073337889 W 0 VALLEE PAGE 07 Alaska Department of Natural Resources Recorder's Offi... r ~.. 5 r ~ .3 .. ._ http:!/www.dnr.state.ak.us/las/Case Abstract.cfm?Filer ler?ti Credil__~ar<~ ~'ae~ar€~~£ LQnd Administration .system Case Abstract Information File Type: 'ADL File Number: ~ 389238 See Township, Range, Section and Acreage? ~1ew Search ~'` Yes ~` No Vase Surrin~ary ~ CaseDetail ~ Land Abstr-.~~~t File: AUL 389238. As of 12115r~003 Customer: 00(10 X5509 NANO Y A HOLLMANN 1310 HIGHLANDS DR. OGALL,4L,A NE. 69153 Case Type: 789 O&G SI [ALLt)\~' NA"T.GAS DNR L-'nil: 780 LEASE OIL AND GAS File Locatio~~: DOG I)IV OIL ANb GAS Case Status: 35 ISS/APPRVi':1C~T~V .<~UTH ..Status Date: 10/O (~'~'(11)> Total Acres: 4919.590 Date Iuitiatecl: 0/29/2000 Office ofPr-ilr~cary Respousibilzty: DOG DIV OIL AND G~1S Case Subly~e.~ SC SOUTHCENTRAL LastTranszrciiorzDate: i2lOS12003 REGION Last Ti~~t~~sac~iinn: CTT'~iGSUI3 CHANGE CASE SUBTYPE _ll~~r•<<Gc~n: ~ 7'uxvtshi/~: O I q1~ R~~n~>e~ l)U~~~~ Secrir~ra: 0> 1 i~r~rl : fci~es: ~ I ,~1c~riili~tit: S Tnivnship: Ol9N R~rn,~~~_ 001~D S'~~ctiuir.~ 0'~ 7ulu/:1ci~~~.~~: ~>> ~llcricli~rn: ~ 7~~11~n~Jtip: 019N Range: 00~W Sc~c~~iun: Ol 7~utul.ac~~c~s: SOU -~tf~~riclian: S /inr~n~~ftij~.~ 0 19N R~nt~c: UO-~\~' Sectinn.~ 10 /'~~tul ,1rrt ~~_ (~0 }lIL'/'1(jl~ln.' ~ ~Ult'/1.5~11~).' ~)I~1~ RLn1~rC': QO~~` SL'CIIU/!: ~ ~ ~U(ul.'IC/"C'.C: (1-~~) ;1-lcriclrc~n: S 7rn~~u~hi~~.~ 019N R~rn~>c•: IJ(i=~W S~~ciir~fi: !~' 7'~~I~rl ~irr~t~.5: X80 ~~~C'/7cll~nl: ~ ~Ult'J1S~11~).~ ~) ~ n~i RQ11~,2': ~~~) ~~~~ ~~L'C(LU/1: I J I (IfUI ,~1(.~YE'.C. ~1~~) _tlc~ridiun: S Tnl~ ~rshi/~: 019N Riln~~c°: UO ~~' .S~~ctr~,n: 1=~ T~~t~~l : icr~~s.~ 6-~(_i ;t.Ic~rirli~rn: S Iint-nslrif~: 019N K~m~;e~ 00~1~~` .Sec~iuu: I ~ Tc~Icrl:~lcres: 6~0 Case Actions 1 of 4 12/15/2003 2:54 PM Alaska Department of Natural Resources Recorder's Offi... http://www.dnr.state.ak.us/las/Case Abstract.cfm?FileT... • • 0~'-~'9-?000 :~~f'PI.IC.~IIC)N RECL-~1VI~U 51~:~7~US 1 1 1 1 ~~PPLIC,1TIOi~! KECD ,S',~~~.tl'/'L/C:-1TIU;1 FI/. F,/) PI~ 1'-1.A'C}~.4, II(1/,/.;1~L1;1;,~"/~~UR T 1S~:V R -/ 11`.S'_l9 SI~( S l-~ c~ I(1-I~. 06-~0-?000 I'Uf3LIC:ITION DIRI~:C~I~LD l'CIJI.1C.97~/O,'~' Ol~ PCI3LIC ~~~UUCE ORDERI~1> FOR 6~'(! ?(IU(1 h1~~7HE ~1 r~CHUR,9GZ D_-11L}";V b'!I',S'. hE.~',]]I'F..~~I:~:S1'L_1 ~'L_1RIl").~'.a:~%I) f~'RU,'~~TIL'I~<S'lL~i:V. 06-?0-~l(i0 C01~11/1I~:N 1 P[_%I3LIC ~1~OTIC'E .1 DDEI) I~O SI:1 TE'.S ~);~-LL~VI' YC"RLIC :VOTIC'E lf~"/_'/3S'I`TI; .~1;~~7~ .56;x' %' TU I'OS7=1~9.5'TF_R.~' /:1%:1RE.1 (JF.~PPI IC.~T]O,'V Fl)K I'C'hL~TC I'OS'T/:VG. 06-30-000 PROOF QF PUBI,ICAT"ION KECF,IVED PROOF OF I'C%I3L lC',1 TIOa ~ '6K I7/~ I6D E; 1' .1,1-C'HO/z: a GE D.-11L }' ;1't'Gi :S RO;~'lI6KS',11.1,~' U~V h ?3'2000:a:Vl~ P6~17l:ti'CTI:1 CL~-}RIDr~ O?1"6~~(I ~?UUO. O1-16-?003 LAND W'ITIIIN SECTION (S) CHnNGED NEW ~[~O'T~~l. AC X919.590000 OLD ~I'OT,AL ~~C X760 C'ORREC'T/O:'1':~IFTF,R TIi1.E,SE.dRC"11. '0 3-~~-?003 CO~1MENl'S S'/1.1LLUII".~'-I Tl'R.9L G.~LS I.6_~IS'1; :11'I'I_/C':~1 TIO.l".~'l 'S'I'L'.AI)I:IJ I'6:~'DI,'~-(; .:11'l'Z.a L. '1)9-1?-?0(13 ~~W.4RL)-'NON-OI3JECTION!IN~I~Ehitii AI!"I~HORI7,A'I~1(:)N R~~I3 ST:~~FUS ? 1 ? 1 ;~~1'KDiNON-OI3J%INTER1~11 I(I-OG-x'003 NOl'IFiC,~ f10N LI SSC;L UI:SIGNf1I'ID NF,W RI~;I. (20) ~0 NO"I'IFIC~1~1-ION LISSEL-. OLD Rf~.L CUDI~. ? 1 DISI'C)S~~L N~~i~11 NO hIFIC',1~I1ON CID NU~113ER 3509 I IULL(t1,WN. N:~NCY .~ C)LU CID ;~ 3~~U9 HOLl.\1%1NN. NANCY .1 '~]O-Oh-003 1M7I~~L OWNER SLG(\1E:N~1~ CODk~; I CID Nl_I(t1[3LR 00003~i~09 FIOLLti~I,~~~NN. N;~~NC~' ,~ WORKING IN~I I:IZESI~ "4, 100 R(il'~1L11' INTEREST°~~ ~>.?~(i001) `1(1-06-?1=i03 IN1"I~L-1L O~VNEK sEC,n1r-N r cODL I 2 of 4 12/15/2003 2:54 PM Alaska Department of Natural Resourc~Recorder's Offi... http://www.dnr.statgak.us/las/Case Abstract.cfm?Filer ClD ~ L~1~1BFR 00000>=l6? [?NR DOG ROYALTY IN~i F:Rf,S"I ~~ ~~, G.?~(1(~tlf) lU-i)6-?U03 ISSUE;%,~PPK(_)VE~,-~C~HVE~~ ~1UT[lORI7A~l'ION R<<B LF F[~:C17~%E DATE 1 1-O 1-003 EXPIRATN UA"l~E 10-31-'~OU(~ ST;1"fl~S ;~ ~ ISS%,1PPR~',~1C' I ~' ~11ITH I10-07-003 ST~ITUS PL:A~I~ UPDATE RI~QUESi~ED AT"f ACHMEN~i~S SENT (l'.N ): N NU ~1DD 1~<~ S7_~I T<i,S l'L,'1T 10-1 ~-?003 ~"T,~~I~US PL~1~1~ l'PDA"I~ID RE(;>UGSTED ~I~RATySAC~I~ION: SPUR STATES PL.nT UI'D~I~ RE(D) ACTION TAhLN: C CONIPLI:'i`E.D .~ DU TO S7:~t %Z.;S PL:7 T 1?-()~-003 CIIANGI~. CASE St!BTYPI: CASE SUBTYPE SC SOUCIICEN-hRAL RI~GION I Legal Description 01-16-2003 * * * APPLICATION LEGAL DESCRIPTION T. 19 N., R. ~ W, SEWARD MERMAN, ALASKA. SECTION 1, SURVEYED, FRACTIONAL, SE4, N2SiT~-~, S2NW~, GLO LOTS ~, 5, AND 6, INCLUDING ?'HE BED OF WILLOW CREEK WITHIN THE DESCRIBED LANDS, 399.88 ACRES; SECTION 2, SURVEYED, FRACTIONAL, S2SW4,NW4SW4, SW4NW4, E2NE4SE4.SESE4, GLO LOTS 1 THRU-~ INCLUSIVE, INCLUDING THE BED OF WILLOW CREEK WITHIN THE DESCRIBED LANDS, 324.84 ACRES; SECTION 3, SURVEYED, FRACTIONAL, ALL, EXCLUDING S2SE~NW-~SE4NW-~, NE=lSW4SE4NW~, N2SE~ISW~SE4NW~, AND GLO LOTS 1, 2 AND 3 INCL UDING THE BED OF WILLOW CREEK WITHIN THE DESCRIBED LANDS, ~ 14.87 ACRES; SECTION 10, SURVEYED, ALL, 640.00 ACRES, SECTION 11, SURVEYED, ALL, 640.00 ACRES; SECTION 1 ~, SURVEYED, FRACTIONAL, N2, S2S2, =180.00 ACRES; 3 of 4 12/15/2003 2:54 PM -- Alaska Department of Natural Resources Recorder's Offi... http://www.dnr.state.ak.usllas/Case Abstract.efm?FileT... SECTION 13. SURVEYED, ALL, 60.00 ACRES; SECTION 14, SURVEYED, ALL, 610.00 ACRES; SECTION 1 S, SURVEYED, ALL, INCLUDING THE BED OF STEVEN LAKE WITHIN THE SECTION, 6~t 0.00 ACRES; THIS TIZ~4CT CONTAINS ~, 919.59 ACRES MORE OR LESS. End ~ Cage ~bstrac~ $a~ !_:~a~~R ;~e~ra~s~~~v~:~ ~a8~~~~~z ~~~f~;a~~ >_~a_ra~~ ~ t~~ ~~t~ ~.~:c:~art3ti ~ta~~~~~ Iat~ ~ ~~xt~i:. 2r~ ;~2}~~~~Q~ 1~~~~,~~r~~cS }t€~~~~~ 14a~~~ ~ `~8_tt~; aa~` Y l 8 F ....~ _ ~._.._. , C't~g~~°right ~ !'rie~acc ~ 1)iaet~i~t~€~• Last updated on 12/15/2003. Report technical problems with this page to the «'e£~=~.~ster. This site works best with 4.x or newer versio~r of Internet Explorer and Netscape. This site also requires that all CC3~~1~:4 must be accepted. 4 of 4 12/15/2003 2:54 PM • 0 ~ ~ L! FRANK H. MURKOWSKI, GOVERNOR DEPARTMENT OF NATURAL RESOURCES DIVISION OF OIL AND GAS December 16, 2003 Evergreen Resources Alaska Corp. Attn. Scott Zimmerman PO Box 871845 Wasilla, AK 99687 Re: Plan of Operation Mat-Su Core Holes 2003 LO/CI 03-17 Activity Subsurface Surface Kashwitna Lake #1 ADL 389316 DNR Willow Fishhook #1 ADL 389238 DNR Access Road ADL 389238 ADL 25334 to Burrow Material Site ADL 389238 ADL 25125 to DOT Sheep Creek #1 ADL 389302 DNR Material Site ADL 389302 ADL 43689 to DOT Dear Mr. Zimmerman: Evergreen Resources Alaska Corp. (Evergreen) applied for a Plan of Operations approval to drill three core holes on shallow gas leases in the Mat-Su Valley. The three core holes are part of a larger plan to drill mineral core holes at seven possible locations to gather information on coal seams. The holes are being drilled for geological information only and do not involve dewatering the coal seams, or gas production. Core holes are drilled from small pads over atwo-week period. The core is removed, the hole is plugged, and the site abandoned. The program will last approximately 8 weeks beginning in December 2003. Initial plans call for drilling 5 core holes this winter. A DNR plan of operations is required for activities at the following three sites. Kashwitna Lake #1 T20N,R4W Sec. 7: NW1/4 Willow Fishhook #1 T19N,R4W Sec. 3: SW1/4NE1/4 Sheep Creek #1 T22N,R4W Sec. 20: Nl/2N1/2 These sites are on state owned surface and subsurface. Site preparation may require a few days at each drill site to clear the access route and construct the pads. The drill pads will be approximately 45 ft. x 60 ft. Drilling will be conducted 24 hours per day for about two weeks at each site utilizing a compact truck-mounted unit. Drilling fluids will be plain water and additives such as soda ash, cellulose fiber, bentonite, and barite. The proposed additives are widely used for water well drilling and mineral 550 WEST 7T" AVENUE, SUITE 800 ANCHORAGE, ALASKA 99501-3650 PHONE: (907) 269-8800 FAX: (907) 269-8938 LO/CI 03-17 Mat-Su Core Holes 2003 • coring in Alaska. Approximately 100 barrels of water per core hole will be utilized from existing permitted off-site sources. Each core hole will result in approximately 7 cubic yards of cuttings. Cuttings from coring will be permanently disposed of in the core hole or buried in the cellar when the core hole is abandoned. Cuttings from unconsolidated materials such as surface gravels may be disposed of to the surface of the pad in a manner similar to the disposal of cuttings from a water well. Muds and drilling fluids will remain in the portable, above ground tanks and will be removed from the site. Drilling fluids will be re-injected into an approved Class II disposal well. The core holes will be abandoned with cement plugs in accordance with AOGCC regulations immediately after operations are completed. All man-made materials will be removed and the sites left in a clean and graded condition. Public Outreach Public Notice was published in the Frontiersman and the Anchorage Daily News on November 7, 2003. Landowners of record with the Mat-Su Borough within'/z mile of each site were sent direct mail notifying them of the proposed activity. Surface interest holders were also notified. Information was included in a direct mahout to individuals who had expressed an interest in shallow gas leasing at a previous public meeting. The full application, including maps and other exhibits, was available on DNR's website. Public Comment Summary Public comments have been overwhelmingly against approving the plan of operations for the core holes. The primary concern is not with drilling the core holes themselves. The concern is with the . existence of the leases and uncertainty over impacts to drinking water aquifers, surface property rights, lifestyles, existing land use, and the quality of life that might result if the leases are developed- for coal bed methane (CBM). A large majority of the public comments request a moratorium on all hallow gas permitting and activity until a buyback of the leases can be explored. Also, the public comments requested comprehensive methane seep, aquifer recharge, social, and environmental studies before any core holes are approved. Public and agency comments also discussed the applicant's stated request for an exception to lease mitigation measures concerning solid waste. DNR Jurisdiction Many of the comments addressed all the core locations. Of the seven core locations, three are on shallow natural gas leases managed by DNR, three are on Mental Health Trust subsurface, and one is on private subsurface. DNR's management authority over the proposed activities is limited to surface and sub-surface state lands. A number of approval conditions have been developed in response to the public and agency concerns and will be applied to the three core holes under DNR jurisdiction. Lease Buyback Whether these shallow gas leases should be bought back by the state is a question that is generating a great deal of public attention. The Governor recently clarified his position on this matter by stating that buying back the leases is a last resort. Ultimately, the question of whether to buy back these leases is a political one that would require a legislative grant of authority to DNR to negotiate and execute any such buy back. Without any authority to consider buying back these leases, it is inappropriate for DNR to deny this application based on the possibility that these leases may be considered for buy back. These leases are valid. In approving a Plan of Operations the commissioner can require amendments he determines necessary to protect the state's interest, but cannot require an amendment that deprives Page 2 U LO/CI 03-17 Mat-Su Core Holes 2003 LJ the lessee of reasonable use of the leasehold interest (11 AAC 83.158(e)). These core holes, subject to the conditions contained in this decision, are a reasonable use of the leasehold interest. Exploration v. Development Core hole drilling does not present the same issues and concerns as CBM development. Core holes are drilled from small pads over atwo-week period. The core is removed, the hole is plugged, and the site abandoned. The coal seams are not fractured or dewatered and there is no residual activity required at the site. If laboratory tests reveal gas content and geological conditions that justify further testing, a pilot project could be proposed in the future at or near the site. A future pilot project will require a new public notice, review, and plan of operations approval. Alternatively, the information acquired might exclude the area from further consideration by the company. Most of the concerns center on development issues being considered in the Mat-Su CBM project. As things progress over the next several months, the issues associated with CBM development will be thoroughly examined. Copies of the comments received during this review have been provided to the CBM project team for consideration in their process. Environmental Studies Performing comprehensive methane seep, aquifer recharge, social, and environmental studies at this time is premature. The potential effects of exploration activities such as those proposed here are too small to justify the types of studies requested. If exploration is successful, the impacts of field development will be examined and the suggested information needs can be addressed prior to making a decision on whether to approve development. If exploration is unsuccessful (as a majority of oil and gas exploration projects turn out to be), any studies concerning the impacts of development become moot. Requiring such comprehensive studies now would require expenditures of time and resources to generate information for a decision that may never need to be made. There may be a time when: conducting such studies is appropriate, however that time has not yet come. Confidentiality The state (DNR and AOGCC) will obtain confidential data from the core holes that will offer insights into the character and extent of the methane resource and an opportunity to review other geological and hydrological information at these locations. This information will allow wiser management of the surface and subsurface resources by DNR and AOGCC for the benefit of all the citizens of the. state. It has been suggested that the lessee or the state share information from the core holes with the public. AS 38.05.035(a)(9)(C) provides that upon the request of the person supplying the information to DNR, all geological, geophysical, and engineering data supplied must be kept confidential. The lessee is free to share the data if they so choose. Information acquired, sometimes at great expense, is proprietary and provides a business advantage over others who are not as well informed. Until a company's land position is assembled or prospect is explored it is common to not release much information. Well data and information collected by AOGCC is routinely held confidential for two years and that data will then be available for public consumption if it does not qualify for extended confidentiality. Page 3 LO/CI 03-17 Mat-Su Core Holes 2003 Disposal of Drilling Wastes Evergreen proposes to discharge cuttings and well bore solids to the pad surface as explained on page 11 and 12 of the plan of operations. Evergreen requests an exemption from the lease mitigation measures concerning solid waste disposal. However, DNR finds that the exemption request is based on an erroneous interpretation of the lease mitigation measures, and that Evergreen's plan of operations meets the requirements of the mitigation measures as proposed. Shallow natural gas mitigation measure 26 and 27 discuss these discharges: 26. New solid waste disposal sites, other than for drilling waste, will not be approved or located on state property during the exploration phase of leasehold activities. Dis,Rosal sites may be provided for drilling waste if the facility complies with 18 AAC 60. 27. Drilling mud and cuttings cannot be discharged into lakes, streams, rivers, or important wetlands. On pad temporary cuttin sg storage will be allowed. Injection ofnon-hazardous oilfield wastes is regulated by AOGCC through its Underground Injection Control (UIC) Program for oil and gas wells. Mitigation measure 26 allows onsite drilling waste disposal if it complies with the DEC Solid Waste Management Regulations (18 AAC 60). These regulations are promulgated and administered by DEC to implement state statutes. DNR consulted ADEC regarding this issue, and ADEC concluded that Evergreen's proposed activity should be regulated as mineral drilling which is exempt from ADEC solid waste permitting requirements by statutory exemption (AS 46.03.100(f)(1)). From a physical operations and impact perspective, this activity is no different than mineral coring activity.. Since ADEC has concluded that the activity complies with 18 AAC 60, the activity meets mitigation measure 26. Mitigation measure 27 allows temporary cuttings storage on the pad. There are instances where cuttings are temporarily stored on the pad pending final disposition in compliance with 18 AAC 60, and by extension mitigation measure 26. Mitigation measure 27 does not preclude permanent disposal on pad when such disposal is in compliance with 18 AAC 60. The Office of Habitat Management and Permitting (OHMP) requested containment and testing of the well bore solids and cuttings prior to disposal on site. OHMP reasons that Evergreen has not provided any evidence to support their claim that disposal on the pad would not harm fish or wildlife. The proposed measure does not list the substances to be tested or justify thresholds that might be appropriate. ADEC is the state agency with expertise in the proper disposal of solid waste. ADEC has determined that solid waste associated with mineral core hole drilling in Alaska does not pose a significant risk to humans, fish, or wildlife. Imposing a testing requirement on these core holes is not consistent with the ADEC requirements for the same activity elsewhere in Alaska. Drilling wastes remain subject to the commissioner's ability to amend the plan of operation as necessary to protect the state's interest. To assure that state lands are left in a condition that is compatible with present and future uses, DNR is requiring additional mitigation as set out later in Attachment (1) to this approval. Page 4 • • LO/CI 03-17 Mat-Su Core Holes 2003 Plan of Operation Approval The Plan of Operation has been reviewed and found. in compliance with the mitigation measures and advisories contained in the shallow gas lease. The Plan of Operation is approved for the Kashwitna Lake #1, Willow Fishhook #1, and the Sheep Creek #1 subject to the approval conditions found in Attachment (1) Operation Conditions; Attachment (2) DOT Requirements; Attachment (3) Well Data Submittal Requirements; and the following: 1. Where the state does not own the subsurface, surface entry is not an exercise of the rights granted in the state lease and such entry is governed by the operator's subsurface and surface agreements with the respective owners of those estates. 2. Lessee will notify this office at 269-8776 when drilling commences at each well site. 3. A Status Report for the activities conducted under this approval must be filed with this office on May 1 and November 1 each year, from the date this approval is issued and until a Completion Report is filed with the Division. Failure to file in a timely manner may result in revocation of this approval. The report shall contain a statement describing clean-up activities conducted, the method of debris disposal, and a narrative description of known incidents of surface damage. 4. The applicant shall defend, indemnify and hold the State of Alaska harmless from and against any and all claims, damages, suits, losses, liabilities and expenses for injury to or death of persons and damage to or loss of property arising out of or in connection with the entry on and use of State lands authorized under this approval by the applicant, its contractors, subcontractors and their employees. 5. The applicant shall inform and insure compliance with any and all conditions of this approval by its employees, agents and contractors, including subcontractors at any level. 6. The Commissioner of the Department of Natural Resources may require that an authorized representative be on-site during any operations conducted under this approval. 7. Rehabilitation shall be completed to the satisfaction of the Commissioner. 8. The Alaska Historic Preservation Act (AS 41.35.200) prohibits the appropriation, excavation, removal, injury, or destruction of any state-owned historic, prehistoric (paleontological) or archaeological site without a permit from the commissioner. Should any sites be discovered during the course of field operations, activities that may damage the site will cease and the Office of History and Archaeology in the Division of Parks and Outdoor Recreation ((907) 762-2622). 9. This approval does not authorize activity on Mental Health Trust lands, school land, or lands owned by the University of Alaska. Legal Basis for Decision and Appeal This Plan of Operation Approval is approval is issued in accordance with Alaska Statute 38.05, 46.40.205, and Alaska Administrative Code 11 AAC 83..158 or l 1 AAC 83.343. A person affected by this decision may appeal it, in accordance with 11 AAC 02. Any appeal must be received by January 6, 2004 and may be mailed or delivered to Thomas E. Irwin, Commissioner, Department of Natural Resources, 550 W. 7th Avenue, Suite 1400, Anchorage, Alaska 99501; faxed to 1-907-269- 8918, or sent by electronic mail to dnr appeals@dnr.state.ak.us. This decision takes effect Page 5 i LO/CI 03-17 Mat-Su Core Holes 2003 immediately. If no appeal is filed by the appeal deadline, this decision becomes a final administrative order and decision of the department on the 31st day after issuance. An eligible person must first appeal this decision in accordance with 11 AAC 02 before appealing this decision to Superior Court. A copy of 11 AAC 02 may be obtained from this office or any regional information office of the Department of Natural Resources. This approval does not constitute certification of any property right or land status claimed by the applicant nor does it relieve the applicant of responsibility to obtain approvals or permits from other persons or governmental agencies that may also be required. All stipulations contained in the original lease and subsequent approvals remain in effect. If activities have not commenced, this approval expires at midnight, December 16, 2006. Failure to comply with the terms and conditions outlined in the lease, the attached stipulations, and this authorization may result in revocation of this plan of operations approval. If you have any questions please contact Matt Rader at the Division of Oil and Gas in Anchorage, at 269-8776, fax 269-8943, or a-mail mwr@dnr.state.ak.us. Sincerely, /S/ Matt Rader Natural Resources Specialist Attachments: (1) Operation Conditions (2) DOT Requirements (3) Well Data Submittal Requirement Page 6 controlled Disbursement Account Evergreen Resources (Alaska) Corp 1 ernia National Bank 1401 17th Street Suite 1200 Denver CO 80202 303-298-8100 Check No Check Date Check Amount .0077000727 12/08/2003 ~~*~~~"*~*''~`$100,00 PAY One Hundred Dollars and Zero Cents TO Alaska Oil and Gas THE Conservation Commission ORDER 333 West 7th Avenue #100 Anchorage AK 99501 OF Void After 90 Days . ~L~Mu 11'00 7 7000 7 2 711' ~:LLLL04879~: 5 4 20 2 4 70 411' M "PLEASE DETACH AT PERFORATION ABOVE" ~ "PLEASE DETACH AT PERFORATION ABOVE" Evergreen Resources Alaska) Corp ^ 1401 17th Street Suite 200 ~,~.~~,-1f~~~\I Denver CO 80202 ', EVERGREEN AESGURCE$ MC. sos-zsa-slop Check Number 0077000727 112403SG2 11/24/2003 permit fee Wasilla Fishhook 1 100.00 0.00 100.00 ~, V~.I~i ® C - 9 203 Alaska Oil Gas Oons. Co 'ssipn Anchorage 009195 ~ Vendor Check Date: 12/08/2003 Check Amount 100.00 • • TRANSMITAL LETTER CHECK LIST CIRCLE APPROPRIATE LETTER/PARAGRAPHS TO BE INCLUDED IN TRANSMITTAL LETTER WELL NAME PTD# CHECK WART 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(f), 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 is contingent upon issuance of a conservation order approving a spacing exception. (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 SAMPLE Commission must be in no greater than 30' sample intervals from below the permafrost or from where samples are. first caught and 10' sample intervals through target zones. Rev: 07/10/02 C\j ody\templates WELL PERMIT CHECKLIST Field & Pool Well Name: KASHWITNA LAKE 1 Program STR Well bore seg ^ PTD#:2032090 Company EVERGREEN RESOURCES GALAS ~ CORPORATION Initial Class/Type STR /INFO GeoArea Unit On10ff Shore On Annular Disposal ^ Administration 1 Permit_feeattached______________________-______________-_- -Yes_ ____--_--_----____ -- - - 2 Lease number appropriate________________________________________ _Yes- ---_______--__-_____ - - -- 3 Un[quewell-n_ameandnumb_er--________________________________- -Yes- _______--__- -------------------------------------------------------------- 4 Well locatedin_a-defined_pool-------------------------------- N°-- ------------.--- ----------------------------- ------------------------ 5 Well located proper distance-from drilling unitboundary_ _ - _ - - - _ - - _ Yes - - - This is a stmt test, no production or testing_will occur, There are no correlative rights issues associated _ - - _ - 6 Well located proper distance_ f[o_m other wells_ _ _ _ _ - _ - - - , Yes _ _ - _ - -with-the drilling of this well. RPC- - - - - - - - - --------------- ------------------------ 7 Sufflcientacreageavail_ablein-drillingunit_______________________________ _Yes- -_______ 8 If_deviated,is_wellboreplat_included___-_____________________________ _ NA_- ---_____--_----_____--__--_-__--_-----_- ---------------------------------- 9 Operator only affected party - - - - - - - - - - - - - Yes - - - - - - - - - - 10 Ope[atorhasappropriate-bondinforce ------------------------- ----- -Yes. ..------- ---------- ------------------------------ ---------------- --- 11 Permitcanbeissuedwithoutconservationorder___________________________ _Yes_ _____--_--______--__--____---------_----_ _ _ Appr Date 12 Pe[mit_can be issued without administrative-approval _ _ _ - - _ - _ - -Yes _ _ _ _ - - _ - ------------------------------------------------------------------- RPC 12117/2003 13 Can permit be approved before 15-day wait Yes 14 Well located within area and strata authorized ay-Injection Order# (put10# in_comments)_(Fgr - NA_ - - _ - - _ - - _ - - _ _ - _ _ - - _ - _ _ - _ _ - - _ - - - - _ 15 All wells-within 114-mile area of review identified (For service well only}- - - - - - - - - - - - - - - NA_ _ _ - - - - - - _ _ _ _ _ - _ _ - - - - _ - ----------------------------------------------------- 16 Pre-prgduced injector duration-of pre p[oduction less than_ 3 months-(For service well only} - - NA_ _ - - _ - - - - _ _ - - - - - - - - _ --------------------------------------------- 17 ACMP_FindingofConsistency_hasbeenissued_for-this project____________________ NA-_ ____-___-__----___-_-_--_-_ - -- - - - Engineering 18 _C_onductorstring-p_ravided________________________________________ NA-- __-_ -- -- - -- - 19 Surface casing_protectsallknownUSDWs------------------------- -- Yes- -----_$et@200-it._____---____-___-_---_____----.------------ -_----- 20 CMT-vol_adequate_toci[culate_onconducto[&surf_csg________________________ Yes_ _____--_--_-____--__- -- -- -- -- 21 CMT_vol adeguate_to tie-in long string tosurf csg_ - - - - - - - - - - - NA- - No casing below surface. - _ - _ - --- - - 22 CMT-will coverall knownproductiyehorizons____________________________ No__ __-__-$ttafigr_aphictest.---_-___--_-__________-_-_--__-- 23 Casing designsadequaleforC,T,B&-permafrost------------------- - Yes- ----------------------------------------------------------.-------------- 24 Adequate tankage_orreseryepit_____________________________________ Yes_ __-__-Core rig tanks,_-______--_-________-____--__---____-__ _ -- - 25 If_a_re-drill, has_a 1.0-403 for abandonment been app-roved - _ - - _ _ - NA- _ - - ---------------------------------------------------------- 26 Adequatewellboreseparationproposed_______________________________- Yes_ _-_---____-_ 27 If_diverterrequired,doesitmeetregulations______________________________ NA_- ______Requirementwaived,__--________-____-__________----------_ ___ ----------- Appr Date 28 _D_ril_lingfluid-program schematic-&equiplistadequate----_----_-------------- Yes- ____-Water.-_-_____-__--______-____--_---______ WGA 12118!2003 2g BOPEs, do they meet regulation - _ _ - -- -- NA_ _ _ _ _ - - _ Annular only. - - _ _ - - ------------------------- 30 _B_OPE_press rating appropriate; test to_(put prig in comments)- - - _ _ Yes - Test to 1500_ psi. _M$P 1080 psi._ _ _ _ _ - ---------------------------------------- 31 Choke-manifold complies wlAPl_RP-53(May84)-__-_-_________--__-._____ NA__ _-_-:- -------------------------------------------------------------------- 32 Work willoccurwilhoutoperationshutdown_____________________-----_-- Yes_ -__--_-_______--_--- - - - - -- -- 33 Ispresence_ofH2Sgas_probable___--_______________________-- -__ No__ --_--_____-___-_-__ ------------------------------------------------------ 34 Mechanical_condition of wells within AOR verified (Fg[service well only) _ _ NA- - ---------------------------------------------------------------------- Geology 35 Permit-can be issued w/o hydrogen_sulfidemeasures___-_______-__-.----__ Yes_ _______________________ --------------------------------------------------- 36 Data-presented on potential overpressure zones__________________________ NA__ ________-___----__ Appr Date 37 Seismicanalysisofshallowgas-zones__________________________________ NA-_ ----------------------------- - - - ___ RPC 12/17/2003 38 Seabed conditionsuruey-(ifoff-sho[ej___________________________ ______ NA__ -_--__--______---_-__--_--_---_-_ - - - - - - _ 39 -Contact namelphone forweekly prggressrepoCts [exploratory only] - _ _ _ - - _ _ - - NA_ _ - - _ - Geologic Engineering Public ~ Date: Date at e missioner: Co Commissioner: Commissioner° %y~ „ (m\ ~1 ~ ~ ~1~ ~~~ ¢//~ %