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205-095
Image Project Well History File Cover Page XHVZE This page identifies those items that were not scanned during the initial production scanning phase. They are available in the original file, may be scanned during a special rescan activity or are viewable by direct inspection of the file. aL1~- ~ ~~ Well History File Identifier Organizing (done) RE CAN olor Items: Greyscale Items: ^ Poor Quality Originals: ^ Other: Two-sided IIIIIIIIIIIIIIIIIII DIGITAL DATA ^ Diskettes, No. ^ Other, No/Type: o a„v~ ~ttaea III IIIIIIpllllllll OVERSIZED (Scannable) ^ Maps: ^ Other Items Scannable by a Large Scanner OVERSIZED (Non-Scannable) ^ Logs of various kinds: NOTES: ^ Other:: BY: Maria Date: /s/ Project Proofing III IIIIIIIIIII II III BY: Maria Date: ~, ~ Q 8 /s/ Scanning Preparation (Y x 30 = ~ + ~ =TOTAL PAGES (Count does not include cover sh t) BY: Maria Date: r`~, I p~~ D g /s/ I~ Production Sca»ning Stage 7 Page Count from Scanned File: ~~ (Count does include cover sheet) Page Count Matches Number in Scanning Pre aration: ~ES NO BY: Maria Date: ~ a ~ D g Is/ 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'I II I II II II III ReScanned III IIIIIIIIIII VIII BY: Maria Date: /s/ Comments about this file: Quality Checked III iIIIII III III III P P 10/6/2005 Well History File Cover Page.doc STATE OF ALASKA ALS OIL AND GAS CONSERVATION COM ION WELL COMPLETION OR RECOMPLETION REPORT AND LOG la. Well Status: Oil ❑ Gas ❑ SPLUG ❑ Other ❑ Abandoned II •• Suspended 1 b. Well Class: 20AAC 25.105 20MC 25.110 Development ❑ Exploratory 0' GINJ ❑ WINJ ❑ WAG ❑ WDSPL ❑ No. of Completions: Service ❑ Stratigraphic Test ❑ 2. Operator Name: 5. Date Comp., Susp., or 12. Permit to Drill Number: Teck Alaska Incorporated Aband.: 8/10/2012 - • 205 - 095' /3fL - 2 Zb 3. Address: 6. Date Spudded: 13. API Number: 3105 Lakeshore Drive, Bldg A, Anchorage, AK 99517 7/17/2005 . 50 073 - 20002 - 00 • ' 4a. Location of Well (Governmental Section): 7. Date TD Reached: 14. Well Name and Number: Surface: 1099' FEL, 3663' FSL, Sec 18, T31N, R18W, KRM - 8/2/2005 ' NB - 01• . Top of Productive Horizon: 8. KB (ft above MSL)S:g,N/A 15. Field /Pool(s): As Above GL (ft above MSL): - 7 i N/� 1 Feld: Red Dog Total Depth: 9. Plug Back Depth(MD +TVD): Pool: Kivalina Undefined Gas • As Above Surface • 4b. Location of Well (State Base Plane Coordinates, NAD 27): 10. Total Depth (MD + TVD): 16. Property Designation: Surface: x- 582,251.37 • y 5,150,876.38 - Zone- 7 •2745' MD, 2740' TVD • NANA Regional Corp (FEE -NANA) ■ TPI: x- As Above y - As Above Zone- 7 11. SSSV Depth (MD + TVD): 17. Land Use Permit: Total Depth: x - As Above y As Above Zone 7 N/A NANA LOA 18. Directional Survey: Yes U No Q 19. Water Depth, if Offshore: 20. Thickness of Permafrost MD/TVD: (Submit electronic and printed information per 20 AAC 25.050) N/A (ft MSL) 640' 21. Logs Obtained (List all logs here and submit electronic and printed information per 20AAC25.071): 22.Re- drilULateral Top Window MD/TVD: Triple combo, cased hole neutron, caliper, CBL N/A 23 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 13 -3/8" 54.5# K -55 Surface 75' Surface 75' 18" 25 sx permafrost 0' 8 -5/8" 24# K -55 Surface 694' Surface 693' 12 -1/4" 615 sx permafrost 0' 5 -1/2" 15.5# J -55 Surface 2728' Surface 2725' 7 -7/8" 146 sx permafrost + 0' 237 sx Type 1 24. Open to production or injection? Yes ❑ No MI If Yes, list each 25. TUBING RECORD interval open (MD +TVD of Top & Bottom; Perforation Size and Number): SIZE DEPTH SET (MD) PACKER SET (MD/TVD) No tbg in well R EC E I V E D 26. ACID, FRACTURE, CEMENT SQUEEZE, ETC. 5 ED 0 2��. � DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED '• See previous 10-407 submitted AOGCC 27 PRODUCTION TEST Date First Production: Method of Operation (Flowing, gas lift, etc.): See previous 10 submitted Date of Test: Hours Tested: Production for Oil -Bbl: Gas -MCF: Water -Bbl: Choke Size: Gas -Oil Ratio: Test Period -► Flow Tubing Casing Press: Calculated Oil -Bbl: Gas -MCF: Water -Bbl: Oil Gravity - API (corr): Press. 24 -Hour Rate -■ 28. CORE DATA Conventional Core(s) Acquired? Yes ❑ No El . Sidewall Cores Acquired? Yes ❑ No el If Yes to either question, list formations and intervals cored (MD +TVD of top and bottom of each), and summarize lithology and presence of oil, gas or water (submit separate sheets with this form, if needed). Submit detailed descriptions, core chips, photographs and laboratory analytical results per 20 MC 25.071. I SCANNED MAR 2 0 2013 RBDMS SEP 07 2012 :1 M 7 .- Form 10 -407 Revised 12/2009 CONTINUED E SE Submit original o y \ v) ft/43 22 3 Z/ 3-7/3 y4 y.0 6 L ' • • 29. GEOLOGIC MARKERS (List all formations and markers encountered): 30. FORMATION TESTS NAME MD TVD Well tested? J Yes - No If yes, list intervals and formations tested, briefly summarizing test results. Attach separate sheets to this form, if needed, Permafrost - Top 4' 4' and submit detailed test information per 20 AAC 25.071. Permafrost - Base 640' 640' Kivalina - Kayak Facies Surface to TD Surface to TD . Formation at total depth: Kivalina - Kayak 31. List of Attachments: P &A Operational Summary, Final Wellbore Schematic, Photographic Documentation of P&A 32. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Bill Penrose 264 - 6114 Printed Name: Tom Farr Title: Chief Mining Engineer Signature: l Phone: 907 - 426 - 9326 Date: , Q UG c4.s1 - t s zot 2. 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 lb: Classification of Service wells: Gas Injection, Water Injection, Water - Alternating -Gas Injection, Salt Water Disposal, Water Supply for Injection, Observation, or Other. Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPI (Top of Producing Interval). Item 8: The Kelly Bushing and Ground Level elevations in feet above mean sea level. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits (ex: 50- 029 - 20123- 00 -00). Item 20: Report true vertical thickness of permafrost in Box 20. Provide MD and TVD for the top and base of permafrost in Box 28. Item 23: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 24: If this well is completed for separate production from more than one interval (multiple completion), so state in item 1, and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval). Item 27: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut -in, or Other (explain). Item 28: Provide a listing of intervals cored and the corresponding formations, and a brief description in this box. Submit detailed description and analytical laboratory information required by 20 AAC 25.071. Item 30: Provide a listing of intervals tested and the corresponding formation, and a brief summary in this box. Submit detailed test and analytical laboratory information required by 20 AAC 25.071. Form 10 -407 Revised 12/2009 Teck Alaska Incorporated +1 907 426 2170 Tel Red Dog Operations +1 888 900 1179 Fax 3105 Lakeshore Drive www.teck.com Building A, Suite 101 Anchorage, AK USA 99517 Teck August 15, 2012 Ms. Cathy Foerster, Chair Alaska Oil and Gas Conservation Commission 333 West 7' Ave., Suite 100 Anchorage, Alaska 99501 RE: Well Completion Report, Plug and Abandonment Teck Alaska Incorporated, NB -01 (PTD 205 -095) Sundry No. 312 -220 Dear Ms. Foerster, Teck Alaska Inc. hereby submits its Well Completion Report for the plugging and abandonment of its NB- • 01 well. The well has been completely filled with cement, cut off below ground level, a marker plate installed and the stub buried. Enclosed please find: • Form 10 -407 Well Completion or Recompletion Report and Log p p 9 • As -P&A'd Wellbore Schematic • Summary of P &A Operations • Photographic Documentation of the Well's Surface Abandonment If you have any questions or require additional information, please contact me at (907) 426 -9326 or Bill Penrose of SolstenXP at (907) 264 -6114. Sincerely, Teck Alaska Incorporated 7ionzew 6 Thomas J. Farr Chief Mining Engineer cc: Bill Penrose - SolstenXP Attachments Teck Alaska Incorporated +1 907 426 2170 Tel Red Dog Operations +1 888 900 1179 Fax 3105 Lakeshore Drive www.teck.com Building A, Suite 101 Anchorage, AK USA 99517 Teck Red Dog Well NB -01 P &A Operations Summary August 06, 2012 Move all equipment except batch mixer from NB -04A to NB -01. Check well for pressure, confirm dead. Remove stuffing box and install pump -in sub and associated jewelry. Repair and perform maintenance on equipment. August 07, 2012 Stage brine and cement on location. Level spot for batch mixer. Transport batch mixer from NB -04A to NB -01 location and set same. Load water, mix 9.3 ppg brine and pump 20 bbls down well. Initial pumping pressure 1,500 psi at 2 bpm but broke over to 200 psi with 5 bbls away. Water truck broken down, shut down for night. August 08, 2012 Water truck still broken down. Check pH of rainwater filling lined pit on location. PH is 8.8. Load water from pit into batch mixer and apply steam to heat. Mix 31 bbls of 10.7 ppg permafrost cement and pump into well at 2 bpm, 0 psi. Mix additional batch of 30 bbls 10.7 ppg permafrost cement and pump into well 3 v at 2 bpm, 0 psi. Clean up equipment and monitor well — on vacuum. Fill batch mixer tank with water and pre -heat for morning cementing. August 08, 2012 Mix 15 bbls of 10.7 ppg permafrost cement and top off well with 9 bbls. To of 70 bbls cement in NB -01. (S Demob cementing equipment. August 10, 2012 Excavate NB -01 to 5' below original ground level. Mark and cut all casings 4' below original ground level. Dress stubs, take photos and weld on marker plate. Backfill excavation, build burial mound. Demob equipment. III • • NB -01 As P & A'd Wellbore Diagram � - r. : +4 • • " .. '6`� ♦ � ':' 18 Hole 13 - 3/8" Casing � :*:‘,401k14•• � K - 55, 54.5 Ibs / ft *'''�� g % a . ".1..•: ♦.t ' 0 : ' 12 -1/4" Hole *i* ire• % �. ♦ SS K. Base of Permafrost 640' 8 - 5/8" Casing K - 55, 24 lbs /ft ► ® :•` .: ' TD @ 694' Ri 3+. 3 �- ,r��, *0; 7 - 7/8" Hole .' i 4► . • ♦ .O ti 3 ♦• 1,820' - 1,840' - 1,860' - 1,900' a . •0 4 .4,S1 N 2,200' - 2,210' - 2,250' - 2,270' 001 s.. ; yq 2,070' 2,080 2,110 2,120 vto :4 11 4. 2,170' - 2,180' - 2,380' - 2,400' 1: 2,410' - 2,450' - 2,640' - 2,660' 4 , • ?►W .•' 5 - 1/2" Casing J - 55, 15.5 lbs / ft TD @ 2,728' TD 2,745' REV 13 AUGUST 2012 r ►. ` v y c - ,..-.4 � . �� 4 ti M ..,a¢ ile.` 1 ` 'F: '` �4' �'' ,r ' ' - A -. 4 " . k . r " 7 •. 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' 11 4 ,, i *If I , .. ) 4 1 , , A 1%\ [F AMA SEAN PARNELL, GOVERNOR ALASKA OIL AND GAS 333 W. 7th AVENUE, SUITE 100 CONSERVATION COMMISSION ANCHORAGE, ALASKA 99501 -3539 PHONE (907) 279 -1433 FAX (907) 276 -7542 Michael Harvie Senior Mining Engineer Teck Alaska Incorporated x 5- 3105 Lakeshore Dr., Bldg A Anchorage, AK 99517 Re: Red Dog Field, Kivalina Undefined Gas Pool, NB -01 Sundry Number: 312 -220 Dear Mr. Harvie: , S CANNED JUN 2 9 ZOi2 Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for reconsideration. A request for reconsideration is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. Sincerely, Cathy 'I. Foerster Chair DATED this / day of June, 2012. Encl. • A..IV RECEIVED STATE OF ALASKA le t JUN 1 3 2017_ ALASKA OIL AND GAS CONSERVATION COMMISSION • APPLICATION FOR SUNDRY APPROVALS AOGCC • 20 AAC 25.280 1. Type of Request: Abandon 0 , Plug for Redrill ❑ Perforate New Pool ❑ Repair Well ❑ Change Approved Program ❑ Suspend ❑ Plug Perforations ❑ Perforate ❑ Pull Tubing ❑ Time Extension ❑ Operations Shutdown ❑ Re -enter Susp. Well ❑ Stimulate ❑ Alter Casing ❑ Other: ❑ 2. Operator Name: 4. Current Well Class: 5. Permit to Drill Number: Teck Alaska Incorporated Development ❑ Exploratory El • 205 -095 • 3. Address: Stratigraphic ❑ Service ❑ 6. API Number: 3105 Lakeshore Dr:, Bldg A, Anchorage, AK 99517 50 -073- 20002 -00 • 7. If perforating, closest approach in pool(s) opened by this operation to nearest 8. Well Name and Number: property line where ownership or landownership changes: Spacing Exception Required? Yes ❑ No 0 NB -01 9. Property Designation (Lease Number): 10. Field / Pool(s): NANA Regional Corporation (FEE -NANA) Field: Red Dog / Pool: Kivalina Undefined Gas 11. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD (ft): Effective Depth TVD (ft): Plugs (measured): Junk (measured): 2,745' • 2,740' • KB KB None None Casing Length Size MD TVD Burst Collapse Structural Conductor 75' 13 -3/8' 75' 75' 2,730 psi 1,130 psi Surface 694' 8 -5/8" 694' 693' 2,950 psi 1,370 psi Intermediate 2,728' 5 -1/2" 2,728' 2,725' 4,810 psi 4,040 psi Production Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): 1,820' to 2,660' 1,820' to 2,660' N/A N/A N/A Packers and SSSV Type: , Packers and SSSV MD (ft) and TVD (ft): None None 12. Attachments: Description Summary of Proposal ❑ 13. Well Class after proposed work: Detailed Operations Program 0 BOP Sketch ❑ Exploratory 0 ' Development ❑ Service ❑ 14. Estimated Date for 15. Well Status after proposed work: Jul - 2012 Commencing Operations: Oil ❑ Gas ❑ WDSPL ❑ Suspended ❑ 16. Verbal Approval: Date: WINJ ❑ GINJ ❑ WAG ❑ Abandoned 0 , Commission Representative: GSTOR ❑ SPLUG ❑ 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Bill Penrose 907 - 264 - 6114 Printed N Micheal Harvie Title Senior Mining Engineer Signature — "). .r.,4Ti Phone Date (D D ' / f z 907-426 -9233 / COMMISSION USE ONLY 7� Conditions of approval: Notify Commission so that a representative may witness Sundry Number: 5\ 2 •-22� . Plug Integrity 0 BOP Test Mechanical Integrity Test ❑ Location Clearance W Other: Aft 4 _t 9 , ,r_ ,4 .,...t- I h�( r 'k P/o7b / 4ae,u.. ' c- ,,,,7 '- f ( C 4 it t btaiJ / O G+t 4 ' $ BOP `t t 15 p34. Subsequent Form Required: ' b °- 4 /0 7 ' APPROVED BY Approved by: COMMISSIONER THE COMMISSION Date: ` -/9_ , - 74 6 vit• rL,, O R 1 1 X7 (� 1 N A S JUN 19 0 1/� y` , 0/ Form 10-403 Revised 1/2010 ubmit in Duplicate , • • June 8, 2012 Ms. Cathy Foerster, Chair Alaska Oil and Gas Conservation Commission 333 West 7 Ave., Suite 100 Anchorage, Alaska 99501 RE: Sundry Application to Plug and Abandon Teck Alaska Incorporated, NB -01 (PTD 205 -095) Dear Ms. Foerster, Teck Alaska Inc. proposes to plug and abandon its NB - 01 well. It is intended to plug • the well back to surface, install the required marker plate and bury the stub. Teck plans to plug the well from 2,728' MD /TD to surface by pumping 10.7 ppg permafrost cement as indicated on the enclosed wellbore schematic. The abandonment of NB -01 will be accomplished as indicated in the attached P &A procedure. The work is expected to commence in late July of this year. If you have any questions or require additional information, please contact me at (907)- 426 -9233, Thomas Farr at (907)- 426 -9326 or Bill Penrose at 264 -6114. Sincerely, Teck Alaska Incorporated Micheal Harvie Sr. Mine Engineer cc: Bill Penrose - SolstenXP Attachments 1 • • P &A Procedure: NB - 01 1. MIRU P &A equipment. Do not commence well operations until all equipment and materials required for this job are onsite. 2. Check all annuli for pressure. If any is found, document pressure and attempt to bleed it off. If it does not bleed off or if it re- builds, contact Anchorage office for plans to deal with it. 3. Remove the existing hammer union from the wellhead and set aside. Unscrew the wellhead from the casing and set aside. 4. Mix 10 bbls of 9.3 ppg brine. Fill well with brine. If additional brine is needed to fill well, mix and add in 10 -bbl batches until well is full. 5. Make up a 5 -1/2" casing x 1502 union crossover onto the casing stub sticking up. Install a 1502 union onto the crossover. Make up the crossover and union as tightly as possible. 6. Rig up pump and lines onto the 1502 union to pump down 5 -1/2" casing. Pressure test lines to 1,000 psi. 7. Mix an additional 10 bbls of brine and attempt to bullhead down well. Do not exceed 3,800 psi (80% of the burst rating of the 5 - 1/2" casing). 8. If fluid can be pumped into the well at less than 3,800 psi, mix and pump cement into the well Per Step 9 below. If the well will not take fluid at less than 3,800 psi, skip to Step 10 below. 9. Mix 65 bbls of permafrost cement as: Density 10.70 ppg Yield 2.47 cu ft/sk Mix Water 11.724 gal /sk Thickening Time 6.0 hrs Setting Time 30.0 hrs Use both batch mixer tanks to mix this volume. Place 21 bbls of warm water in each tank and establish circulation within the batch mixer. Mix 74 sacks of cement into each tank, continually mixing. Once the cement in both tanks is at the design density of 10.7 ppg WJP 05/25/12 III • • (as determined by weighing samples using a mud balance), commence bullheading cement down the 5 -1/2" casing. Continue pumping cement until all cement in the batch mixer is pumped away. If the pumping pressure reaches 3,800 psi, divert any remaining cement in the batch mixer to the well fluid return tank(s) and treat the pH to prevent the cement from setting up. Do not stop rotation of the paddles until tanks are empty. Note: The cement slurry is designed with a pumping time of 6 hours. Skip to Step 17 below. 10. If bullheading cement into the well prove unfeasible, bleed off pressure, break the _ T pumping line from the well and back off the crossover and 1502 connection. Notiify AOGCC field inspector at Prudhoe Bay that BOPE are going to be rigged up and tested and obtain a witness waiver from the inspector. 4 ,(-by 11. Reinstall the wellhead and install the wellhead x BOP flange fabricated for this purpose. � t'i 12. N/U 4- 1/16 ", 10K psi BOPs on BOP flange. RU choke manifold, associated piping and fluid return tank. Pressure test BOPE to 1,500 psi. 13. R/U work platform and false rotary assembly on top of BOPs. 14. RIH with 1" tubing to +2,728' TD or to any shallower obstruction. If an obstruction is found above 1,820' (top perf), attempt to work past it while circulating. If tubing cannot be run all the way to TD, call the Anchorage office which will coordinate with the AOGCC on the next step. 15. With the 1" tubing at TD, mix and pump cement as follows: 16. Mix 65 bbls of permafrost cement as: - r7i /2 GSJ Density 1 0.70 ppg ,o.2311 �� C 1r Yield 2.47 cu ft/sk , Qom ®z3al See-- Mix Water 11.724 gal /sk Thickening Time 6.0 hrs Setting Time 30.0 hrs Use both batch mixer tanks to mix this volume. Place 21 bbls of warm water in each tank and establish circulation within the batch mixer. Mix 74 sacks of cement into each tank, continually mixing. Once the cement in both tanks is at the design density of 10.7 ppg WJP 05/25/12 • • (as determined by weighing samples using a mud balance), commence pumping cement down the 1" tubing using the triplex pump, taking returns out of the 1" x 5 -1/2" annulus. Continue pumping cement until uncontaminated cement returns are observed at the surface then divert any remaining cement in the batch mixer to the well fluid return tank and treat the pH to prevent the cement from setting up. Do not stop rotation of the paddles until tanks are empty. Note: The cement slurry is designed with a pumping time of 6 hours. 17. Clear and clean lines and cementing equipment. 18. Rig down BOPE and all mixing, pumping and related equipment and prepare them for moving to the NB - 02 location. 19. Using excavator, excavate around the wellhead to a depth of five feet below original, surrounding ground level. 20. After at least 12 hours of WOC time, use a cutting torch to cut all casing/tubing strings off to leave well severed 4' below original, surrounding ground level. 21. Remove original guardrail, cellar, wellhead and severed casing/tubing. 22. Top off all annuli and tubing in well with cement if necessary. AOGCC and Teck representatives to witness. -- P 01.6 ,.1 ` itrv'. 23. Photographically document the condition of the top of the well before welding on the marker plate. 24. Weld a'A" thick, 13'/2" diameter steel marker plate over the top of the cut -off well casings. AOGCC and Teck representatives to witness. Marker plate to have the following information bead - welded onto it: Teck Alaska Inc. NB -01 API #50- 073 - 20002 -00 PTD #205 -095 25. Photographically document the welded -on marker plate.✓ 26. Back -fill excavation with original soil. Top excavation with clean gravel recovered from elsewhere on the well location, mounding it over the well to a height of 4' to compensate for later settling. WJP 05/25/12 • • 27. Clean location, obtain site clearance approval from AOGCC representative on location (if any) and transport all personnel, equipment and materials to NB - 02. Photographically document the final location condition. WJP 05/25/12 • • NB -01 Current Wellbore Diagram I IU U" __ 18" Hole 0 aft:11 13-3/8" Casing; K -55, 54.5Ibs /ft 1'X' TD @75' 0:40i ti141$ NM OA 12-1/4" Hole *� -4-- Base of Permafrost 640' 8-5/8" Casing K - 55, 24 1bs / ft T ks D @ 694' 7 -7/8" Hole • stsi 1,820' - 1,840' - 1,860' - 1,900' 2,200' - 2,210' - 2,250' - 2,270' 2,070' - 2,080' - 2,110' - 2,120' may'' 2,170' - 2,180' - 2,380' - 2,400' 2,410' - 2,450' - 2,640' - 2,660' ati 5-1/2" Casing J -55, 15.5Ibs /ft TD @ 2,728' ax3ie �Bz/ TD 2,745' REV 6 JUNE 2012 I • • NB -01 P &A Wellbore Diagram Cement Bullheaded In i Xi ., :* 4.11 4 • : . . �- 18" Hole 13 -3/8" Casing K-55, 54.5 Ibs ft e TD @ 75' A$. . , i tvti -f- 12-1/4" Hole : `" ---.-- Base of Permafrost 640' 8-5/8" Casing ). .,. K-55, 24 Ibs /ft TD @ 694' t ,. *� • . 0 b s kki 4e, MO -..0 7- 7/8" Hole » MO .tea..'.. . �' ; . 1,820' - 1,840' - 1,860' - 1,900' Lsit it 2,200' - 2,210' - 2,250' - 2,270' 1 lit 2070'- 2080'- 2110' -2120' 2,170' - 2,180' - 2,380' - 2,400' « .t F` '' 2,410' - 2,450' - 2,640' - 2,660' At to 5-1/2" Casing V J -55, 15.5 Ibs /ft $9:4:4— ,' TD @ 2,728' TD 2,745' REV 6 JUNE 2012 • II I • • NB -01 P & A Welibore Diagram Cement Circulated In ♦ , . V.3$0' 'Sr Or 4 10:441 ♦• • NI-- 18" Hole 13 - 3/8" Casing ;a. ♦ K - 55, 54.5. Ibs / ft '" *CV :$4 TD @ 75' L 12-1/4" Hole 1 $ * " 4 " 11- Base of Permafrost 640' 8 - 5/8" Casing _ o K- 55, 24Ibs /ft TD @ 694' +� CXX a ••• 7 - 7/8" Hole '114 ' ♦* OM O 1,820' - 1,840' - 1,860' - 1,900' 494 tos 2,200' - 2,210' - 2,250' - 2,270' 2,070' - 2,080' - 2,110' - 2,120' 2,170' - 2,180' - 2,380' - 2,400' ., 2,410' - 2,450' - 2,640' - 2,660' 5-1/2" Casing, w J-55, 15.5 Ibs / ft $.* �_ 1" Tubing TD @ 2,728' v.. TD @ +/- 2,700' a., TD 2,745' REV 6 JUNE 2012 • Page 1 of 1 Schwartz, Guy L (DOA) From: Bill Penrose [bill @solstenxp.com] Sent: Thursday, June 14, 2012 8:57 AM To: Schwartz, Guy L (DOA) Cc: Ferguson, Victoria L (DOA) Subject: RE: Red Dog P & A Thanks, Guy. Please withdraw the sundries you list below and replace them with those submitted for those same wells dated June 8, 2012. Regards, Fitt Petetode Drilling Manager X FullColor_sma 2 ZU1 310 K Street, Suite 700 Anchorage, Alaska 99501 Main 907 - 279 -6900 Direct 907 - 264 -6114 Cell 907-250-3113 From: Schwartz, Guy L (DOA) [ mailto:guy.schwartz @alaska.gov] Sent: Thursday, June 14, 2012 8:52 AM To: Bill Penrose Cc: Ferguson, Victoria L (DOA) Subject: Red Dog P & A Bill, Since the sundries originally processed for the P & A are not going to be used (due to no production tubing being left in well and changing the procedure) you will need to officially ask them to be withdrawn... Just respond to this email requesting that. The sundries impacted are listed below. We are working on the new sundries you submitted and should have them reviewed soon. Red Dog NB-01 205 -095 312 -151 Red Dog NB -02 20g-096 312 -152 Red Dog NB -03 206 -090 312 -153 Red Dog NB-04A 206 -089 312 -154 Red Dog NB -05 206 -097 312 -155 Guy Schwartz Senior Petroleum Engineer AOGCC 793 -1226 (office) 444 -3433 (cell) 6/15/2012 J 0 )TPA L i - 1 SEAN PARNELL, GOVERNOR L ALASKA OIL AND GAS 333 W. 7th AVENUE, SUITE 100 CONSERVATION COMMISSION ANCHORAGE, ALASKA 99501 -3539 PHONE (907) 279 -1433 FAX (907) 276-7542 Tom Farr Chief Mining Engineer Teck Alaska Incorporated 3105 Lakeshore Drive, Bldg. A Anchorage, AK 99517 )N,e O l_ Re: Red Dog Field, Kivalina Pool, NB -01 Sundry Number: 312 -151 Dear Mr. Farr: APR 4 24i Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for reconsideration. A request for reconsideration is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. Sincerely, Cath P. Foerster Chair DATED this 1q day of April, 2012. Encl. Teck Alaska Incorporated +1 907 426 2170 Tel Red Dog Operations +1 888 900 1179 Fax 3105 Lakeshore Drive www.teck.com Building A, Suite 101 Anchorage, AK USA 99517 Teck April 10, 2012 RECEIVED Ms. Cathy Foerster, Chair APR 16 2012 Alaska Oil and Gas Conservation Commission AOGCC Anchorage, Alaska 99501 AOGCC 333 West RE: Sundry Application to Plug and Abandon Teck Alaska Incorporated, NB -01 (PTD 205 -095) Dear Ms. Foerster, Teck Alaska Inc. proposes to plug and abandon its NB - 01 well. It is intended to plug the well back to surface, install the required marker plate and bury the stub. Teck plans to plug the well from 2,628' MD to surface by pumping 10.7 ppg permafrost cement as indicated on the enclosed wellbore schematic. The abandonment of NB -01 will be accomplished as indicated in the attached P&A procedure. The work is expected to commence in late July of this year. If you have any questions or require additional information, please contact me at (907)- 426 -9326 or Bill Penrose at 264 -6114. Sincerely, Teck Alaska Incorporated /L r Thomas Farr Chief Engineer cc: Bill Penrose - SolstenXP Attachments • • RECEIVED STATE OF ALASKA a ALASKA OIL AND GAS CONSERVATION COMMISSION 1 i G k `'✓ APR 16 2012 APPLICATION FOR SUNDRY APPROVALS Dry gpGCC 20 AAC 25.280 1. Type of Request: Abandon 0 • Plug for Redrill ❑ Perforate New Pool ❑ Repair Well ❑ Change Approved Program ❑ Suspend ❑ Plug Perforations ❑ Perforate ❑ Pull Tubing ❑ Time Extension ❑ Operations Shutdown ❑ Re -enter Susp. Well ❑ Stimulate ❑ Alter Casing ❑ Other: ❑ 2. Operator Name: 4. Current Well Class: 5. Permit to Drill Number: Teck Alaska Incorporated Development ❑ Exploratory El • 205 - 095 • 3. Address: Stratigraphic ❑ Service ❑ 6. API Number: 3105 Lakeshore Dr., Bldg A, Anchorage, AK 99517 50 - 073 - 20002 - 00 • 7. If perforating, closest approach in pool(s) opened by this operation to nearest 8. Well Name and Number: property line where ownership or landownership changes: Spacing Exception Required? Yes ❑ No 111 NB - 01 • 9. Property Designation (Lease Number): 10. Field / Pool(s): NANA Regional Corporation (FEE -NANA) • Field: Red Dog / Pool: Kivalina Undefined Gas • 11. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD (ft): Effective Depth TVD (ft): Plugs (measured): Junk (measured): 2,745' • 2,740' • KB KB None None Casing Length Size MD TVD Burst Collapse Structural Conductor 75' 13 -318' 75' 75' 2,730 psi 1,130 psi Surface 694' 8 -5/8" 694' 693' 2,950 psi 1,370 psi Intermediate 2,728' 5 -112" 2,728' 2,725' 4,810 psi 4,040 psi Production Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): 1,820' to 2,660' 1,820' to 2,660' 2 - 3/8" J - 55 2,628' Packers and SSSV Type: Packers and SSSV MD (ft) and ND (ft): None None 12. Attachments: Description Summary of Proposal ❑ 13. Well Class after proposed work: Detailed Operations Program 151 BOP Sketch ❑ Exploratory III • Development ❑ Service ❑ 14. Estimated Date for 15. Well Status after proposed work: Jul - 2012 Commencing Operations: Oil ❑ Gas ❑ WDSPL El Suspended ❑ 16. Verbal Approval: Date: WINJ ❑ GINJ ❑ WAG ❑ Abandoned E • Commission Representative: GSTOR El SPLUG ❑ 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Bill Penrose 907 - 264 - 6114 Printed Na Tom Farr Title Chief Mining Engineer Signature Phone Date 747174A) S Ccw,-- 907 -426 -9326 APRIL oq Zdrz. COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: �l 2 ' 5 k Plug Integrity BOP Test ❑ Mechanical Integrity Test ❑ Location Clearance Other: Ai<J¢f /15/7(C/0/ rSi,5 /hdical ph o f o G'I0 c vkfr, Cvt 1 C'asj i-2 y G ✓f et °'° le el ?.4 v-4 " , Subsequent Form Required: APPROVED BY Approved by: P 4(/‘4(//—*---- COMMISSIONER THE COMMISSION Date: 4- - /1' -/ -2__ . Form ��F O R t / DA MS APR 19 �0 •, orm 10 -403 evised 1/2010 I S I I Submit in uplicate • • Teck Alaska Incorporated +1 907 426 2170 Tel Red Dog Operations +1 888 900 1179 Fax 3105 Lakeshore Drive www.teck.com Building A, Suite 101 Anchorage, AK USA 99517 Teck P &A Procedure: NB — 01 1. MIRU P &A equipment. Do not commence well operations until all equipment and materials required for this job are onsite. 2. Check tubing and all annuli for pressure. If any is found, document pressure and attempt to bleed it off. If it does not bleed off or if it re- builds, contact Anchorage office for plans to deal with it. 3. Rig up pump and lines to pump down 2 -3/8" tubing and take returns from the 2 -3/8" x 5 -1/2" annulus. Pressure test lines to 1,000 psi. 4. Fill one mixing tank on the batch mixer with 15 bbls of warm water. 5. Pump water down 2 -3/8" tubing at 0.5 bbls /min flow rate to establish circulation. Take returns to holding tanks provided by Teck. If no circulation established, RU wireline with pressure control equipment. 6. PT wireline equipment to 250 psi low /3,000 psi high. 7. RIH with 5'of 1- 11/16 ", 4 spf tubing puncher /CCL to 2,600' and punch 2 -3/8 "tubing. 8. POOH with wireline. Confirm shots fired. 9. Pump water down 2 -3/8" tubing with 0.5 bbls /min flow rate to establish circulation. Take returns to holding tanks provided by Teck. 10. Mix 60 bbls of permafrost cement as: Density 10.70 ppg Yield 2.47 cu ft/sk Mix Water 11.724 gal /sk Thickening Time 6.0 hrs Setting Time 30.0 hrs Use both batch mixer tanks to mix this volume. Place 19 bbls of warm water in each tank and establish circulation within the batch mixer. Mix 3.5 super sacks (7,000 lbs) of cement into each tank, continually mixing. Once the cement in both tanks is at the design • • Teck density of 10.7 ppg (as determined by weighing samples using a mud balance), commence pumping cement down the 2 -3/8" tubing using the triplex pump, taking returns out of the 2 -3/8" x 5 -1/2" annulus. Continue pumping cement until uncontaminated cement returns are observed at the surface then divert any remaining cement in the batch mixer to the well fluid return tank(s) and treat the pH to prevent the cement from setting up. Do not stop rotation of the paddles until tanks are empty. Note: The cement slurry is designed with a pumping time of 6 hours. 11. When the pump is shut down, immediately shut the well's annulus and tubing valves and disconnect lines. 12. Clear and clean lines and cementing equipment. 13. WOC at least 12 hours. 14. Rig down all mixing, pumping and related equipment and prepare them for moving to the NB - 02 location. 15. Using excavator, excavate around the wellhead to a depth of five feet below original, surrounding ground level. 16. After WOC period is finished and using a cutting torch and hydraulic jack hammer (for cement), cut all casing and tubing strings off to leave well severed 4' below ground level. 17. Remove original guardrail, cellar, wellhead and severed casing/tubing. 18. Top off all annuli and tubing in well with cement if necessary. AOGCC and Teck representatives to witness. 19. Photographically document the condition of the top of the well before welding on the marker plate. 20. Weld a 1 /4" thick, 13Y2" diameter steel marker plate over the top of the cut -off well casings. AOGCC and Teck representatives to witness. Marker plate to have the following information bead - welded onto it: Teck Alaska Inc. NB -01 API #50- 2073 - 20002 -00 PTD #205 -095 21. Photographically document the welded -on marker plate. 2 • Teck 22. Back -fill excavation with original soil. Top excavation with clean gravel or topsoil brought out from Red Dog Mine, mounding it over the well to a height of 4' to compensate for later settling. 23. Clean location, obtain site clearance approval from AOGCC representative on location and transport all personnel, equipment and materials to NB - 02. Photographically document the final location condition. 3 y • 0 NB -01 Current Wellbore Diagram : F * v, %.. tvi r- Kt :::: ' �" F= _o_____ 18" Hole w tit 13 - 3/8" Casing ► . K - 55, 54.5 lbs / ft —IN— VX TD @ 75' el MO 00.0 k : F -...1111- 12 -1 /4" Hole s g ki. til W 4 ets: ow Base of Permafrost 640' 8 - 5/8" Casing K - 55, 24 lbs / ft ow gl TD @ 694' VV4 VA ftiV F:* F` WI t mi to" �— 7 - 7/8" Hole 444 4.44 :sit; s�iFb` iiiii _� x 3,N 1,820' - 1,840'- 1,860' - 1,900' frh nv /�rvQ/ y i (043 6 s 2 G Z� 2,200' - 2,210' - 2,250' - 2,270' -o- 2,070' 2,070' - 2,080' 2,110' - 2,120' g �' 2,170' - 2,180' - 2,380' - 2,400' ill :4 2,410' - 2,450' - 2,640' - 2,660' 2 - 3/8" Tubing R ki TD @2,628' ilt w. 5 - 1/2" Casing cox J - 55, 15.5 lbs / ft ► t TD @ 2,728' / 64) 1, t1 2 9'� f p 2'61 "i S TD 2,745' REV 7 NOV 2011 • • NB -01 P &A Wellbore Diagram iK4 4,4V 41 AMA mil:, ' f- 18" Open Hole t k•34M 4$1 13 - 3/8" Casing ;, ; it K - 55, 54.5 lbs / ft i #*p s�; * TD @ 75' wipoi 12 -1/4" Open Hole :031g : : . � Base of Permafrost 640' 8 - 5/8" Casing K - 55, 24 lbs / ft � TD @ 694' ' w s itt *vow Y ti4 $ m Kszfre 114:1114$0 7 - 7/8" Open Hole $i4 ebiti .1 ." � 'as; 1,820' - 1,840' - 1,860' - 1,900' 4 2,200' - 2,210' - 2,250' - 2,270' 2,070' - 2,080' - 2,110' - 2,120' 2,170' - 2,180' - 2,380' - 2,400' Pg *Y C 2,410' - 2,450' - 2,640' - 2,660' 2 - 3/8" Tubing ` TD @ 2,628' 5 - 1/2" Casing J - 55, 15.5 lbs / ft 3 TD @ 2,728' TD 2,745' 3 NOV 2011 • • Teck Alaska Incorporated +1 907 426 2170 Tel Red Dog Operations +1 907 426 2177 Fax 3105 Lakeshore Drive www.teck.com Building A, Suite 101 Anchorage, AK USA 99517 Teck January 4, 2010 Alaska Oil and Gas Conservation Commission 333 West 7 Avenue Suite 100 Anchorage, AK 99501 Attention: Mr. Dan Seamount, Chairman )l7S OSC Re: Wells Nos. NB -01, NB -02, NB -03, NB -04A, NB -05 Teck Alaska Incorporated Dear Mr. Seamount, This is to advise the Commission that effective January 15, 2010, the Teck Alaska, Inc., Point of Contact for all AOGCC related matters is Mr. Thomas Farr, Chief Engineer. Please direct all future communications relating to such matters to Mr. Farr, as noted below: Mr. Thomas Farr, Chief Engineer Teck Alaska, Inc Red Dog Mine 3105 Lakeshore Drive Building A, Suite 101 Anchorage, AK 99517 thomas.farrateck.com 907.426.9326 Red Dog Office phone Respectfully, Wallace Hendricks Teck Alaska Incorporated cc. Commissioner Cathy P. Foerster Commissioner John Norman Mr. Tom Maunder,P_E. Petroleum Engineer, AOGCC Mr. Stephen McMains, Statistical Technician, AOGCC Mr. John Egan, Operations Manager, Red Dog Mine Mr. Warren Draper, Mine Superintendent, Red Dog Mine Mr. Mark Smith, Mine Superintendent, Red Dog Mine Mr. Thomas Farr, Chief Engineer, Red Dog Mine r' r E & P SERVICES, INC. ~EVE~ Y ~b~i JAN ®9 200 ~#taska Qil ~ Gas Cons. Ct~rr~ntissiA~a Anchorage January 9, 2008 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, Alaska, 99501 Attention: John Norman, Chairman Re: Teck Cominco Alaska Incorporated Red Dog Shallow Gas Exploration Wells Nos. NB-Ol, NB-02, NB-03, NB-04A, and NB-O5. Dear Mr. Norman: This is to advise the Commission that effective this date, all monthly production and gas disposition reporting functions have been transferred to the operator, Teck Cominco Alaska Incorporated. The project is moving into a prolonged period of dewatering and production testing, and some efficiencies will be gained by having the reports originate directly from the project office at Red Dog Mine. The Teck Cominco point of contact for all AOGCC related matters is Wally Hendricks. Please direct all future communication relating to such matters to Mr. Hendricks as noted below: Mr. Wally Hendricks Teck Cominco Alaska Incorporated Red Dog Mine 3105 Lakeshore Drive, Building A Anchorage, AK 99517 E-mail: Wallace.Hendricks~teckcominco.com Telephone: 907 426 9806 Red Dog Office Direct 907 426 9136 Red Dog PAC 307 232 9639 Wyoming Office Direct 307 267 1342 Cell 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 • (907) 258-3446 • (907) 279-5740 ~ • Fairweather E & P Services Inc will remain in the capacity of technical advisor to the project on an as-needed basis, but is no longer involved in matters related to day-to-day operations and AOGCC compliance issues. Sincerely, Fairweather E & ~' Services, Inc. r F*,...~~. ,~ R. C. Gardner Sr. Technical Advisor cc: Commissioner Cathy P. Foerster Commissioner Dan Seamount Tom Maunder, AOGCC Steve McMains, AOGCC Dave Roby, AOGCC Wally Hendricks, Teck Cominco Alaska Incorporated Jerry Booth, G.G. Booth and Associates • ra~clvil • Maunder, Thomas E (DOA) From: Booth Jerry SPOK [Jerry.Booth@teckcominco.com} Sent: Wednesday, January 09, 20081:28 PM To: bob@fairweather.com; Jessika Russell (jessika.russet)@fairweather.com}; jketafant@adv-res.com; sbumgardner@adv-res.com; Maunder, Thomas E (DOA); Copoulos, Arthur E (DNR}; Michael Jungreis; Bill Van Dyke (vandykpp@rogershsa.com); Greene Marie NANA; Paul Gtavinovich (Paul.Glavinovich@nana.com); kdawson@alaska.com; Clough, James G (DNR}; Lively Jeff VANM; Platt, Dudley (DOR sponsored); JCaballero@adv-res.com Cc: Hendricks Wallace RDOG; Thornton George RDOG; Draper Warren RDOG; Kulas Jim RDOG; Turner Kent SPOK; Dit_uzio Bruce SPOK Subject: Red Dog Gas Project All Noted: Please note that Wally Hendricks will be the new contact for all gas related issues for the Red Dog Project. Please direct all questions and communication to Mr. Hendricks as noted below: Mr. Wally Hendricks ~,~ ~ „~~~ Teck Cominco Alaska Incorporated Red Dog Mine 3105 Lakeshore Drive, B{dg. A Anchorage, Ak 99517 Email: Wailac__e.Hendricks_@teckcominco.com Phone: 907-426-9806 Red Dog Office Direct 907-426-9136 Red Dog PAC 307-232-9639 Wyoming Office Direct 307-267-1342 Cetl Phone Thanks for all your help on this new and 'innovative project. Jerry Booth 509.979.3620 - Ce11 Phane aes- o~i~ 3~~- o~ ~ ~~R- O~ 1 /9/2008 DATA SUBMITTAL COMPLIANCE REPORT 10/29/2007 Permit to Drill 2050950 Well Name/No. NB 01 Operator TECK COMINCO ALASKA INCORPOR API No. 50-073-20002-00-00 MD 2745 TVD 2740 Completion Date 9/10/2005 Completion Status 1-SBNG Current Status 1-SBNG UIC N REQUIRED INFORMATION Mud Log Yes Samples No Directional Survey Yes DATA INFORMATION Types Electric or Other Log s Run: Triple Combo, cased hole neutron, caliper, CBL (data taken from Logs Portion of Master Well Data Maint Well Log Information: Log/ Electr Data Digital Dataset Log Log Run Interval OH / Type Med/Frmt Number - --- Name Scale Media No Start Stop CH Received Comments Cement Evaluation 2 Blu 1 15 2674 Case 4/26/2006 Bond Log 14-Aug-2005 Tog Porosity 2 Blu 1 2668 2670 Case 4/26/2006 Triple Combo Sonic Porosity Cased Hole ~ _ Neutron 23-Aug-2005 Log Cement Evaluation 5 Blu 1 15 2674 Case 4/26/2006 Bond Log 14-Aug-2005 ~g Porosity 5 Blu 1 2668 2670 Case 4/26/2006 Triple Combo Sonic Porosity Cased Hole Neutron 23-Aug-2005 -Cog Porosity 25 Myl 1 2668 2670 Case 4/26/2006 Triple Combo Sonic Porosity Cased Hole Neutron 23-Aug-2005 "Cog Cement Evaluation 25 Myl 1 15 2674 Case 4/26/2006 Bond Log 14-Aug-2005 eJ~D C Jpg 138311~Cement Evaluation 25 1 15 2674 Case 4/26/2006 Bond Log 14-Aug-2005 C Jpg 13831 `Porosity 25 1 2668 2670 Case 4/26/2006 Triple Combo Sonic I Porosity Cased Hole Neutron 23-Aug-2005 Well Cores/Samples Information: Sample Interval Set Name Start Stop Sent Received Number Comments -- Cores and/or Samples are required to be submitted. This record automatically created from Permit to Drill Module on: 7/18/2005. DATA SUBMITTAL COMPLIANCE REPORT 10/29/2007 Permit to Drill 2050950 Well Name/No. NB 01 Operator TECK COMINCO ALASKA INCORPOR API No. 50-073-20002-00-00 MD 2745 TVD 2740 Completion Date 9/10/2005 Completion Status 1-SBNG Current Status 1-SBNG UIC N ADDITIONAL INFORMATION Well Cored? Y~N Daily History Received? ~ N Chips Received? ~'~'4'TI~" Formation Tops '~N Analysis i` hfd~ Received? ____ - - _. .__._ _.- -__,_____~4 - -._-___-_ _._ _.._..._ -_.. Comments: Date: Compliance Reviewed By: -/ Page 1 of ~ ~ ~mM `J-~~ Maunder, Thomas E {DOA) From: Maunder, Thomas E (DOA) Sent: Monday, October 29, 2007 8:56 AM To: 'Bob Gardner' Cc: Booth Jerry SPOK Subject: RE: Teck Cominca Alaska Incorporated, Red Dog Shale Gas Exploration Project, Wells Nos. NB- ~: ~ Q't NB-02, NB-03, NB-04A, and NB-05 -~ aO~o- C~~`~ L a06-o~0 Bob and Jerry, aOS-C75(o ~ a0~-OSS~ I confirm our call. Halting the weekly reports is appropriate. As proposed, please keep the Commission advised regarding .the resumption of pumping operations. Call or message with any questions. Tom Maunder, PE AOGCC From: Bob Gardner [mailto:bob@fairweather.com] Sent: Monday, October 29, 2007 8:22 AM To: Maunder, Thomas E (DOA) Cc: Booth Jerry SPOK Subject: Teck Cominco Alaska Incorporated, Red Dog Shale GasExploration Project, Wells Nos. NB-01, NB-02, NB-03, NB-04A, and NB-05 i Tom: As per our recent telephone conversation, and the last Weekly Operations Summary Reports covering the above referenced wells, the Red Dog Shale Gas Exploration Project will be shut-in for an indefinite period due to electrical problems with the power fine between the mill at Red Dog mine, and the project site. This line supplies 400% of the power required to operate the wells during the planned extended dewatering period. We are still uncertain about the exact duration of the shut-in period, as the Red Dog Engineering and Electrical Departments are still trying to make a determination on whether a mill shutdown wilt be required to instal{ an isolation switch and ancillary equipment. This extended shut-in period is caused by an electrical malfunction that has nothing to do with the condition of the wells or surface facilities at the GasEx project site. The problem is being addressed by the aforementioned Red Dog Mine Departments with an eye toward both maintaining the productivity of the minetmilt complex, and getting the dewatering pumping resumed as soon as reasonably possible. The equipment and materials necessary to correct the electrical problem have been ordered, and installation witE occur at the most opportune time after they are delivered to Red Dog. We are told that under the most optimistic scenario, a restart of dewatering pumping could occur in the December 2007-January 2008 time frame. ff a mill shutdown is required in order to instaCt the equipment, the shut-in period could extend into Apri12008 when the next regularly scheduled mill shutdown wilt occur. We will keep the AOGCC advised on developments as they are made known to us. Now that all wells in the initial five-spot pattern are completed, we respectfully request that the requirement for Weekly Operations Summary Reports be suspended. Monthly Production Reports (Form 40-405) will be filed both during the shut-in period, and for so long thereafter as there are ongoing productions operations at the GasEx project site. Thank you for your consideration of this request, and your understanding of the electrical problems that we are currently experiencing. Sincerely, R. C. Gardner 10/29/2007 -.. E & P SERVICES, INC. October 24, 2007 • • '~~~® C 7 2 5 2007 Alaska Oil and Gas Conservation Commission ~iasi~a Oii ~ Gas irons. Commission 333 West 7th Avenue, Suite 100 anchorage Anchorage, AK 99501 Attention: Mr. Tom Maunder, P.E., Petroleum Engineer Re: Weekly Operations Status Report Teck Cominco Alaska Incorporated, Red Dog Shallow Gas Exploration Program. Report Period: October 14-October 20, 2007 Well Nos: NB-O1 (PTD 205-095), and NB-02 (PTD 205-096) Dear Mr. Maunder: FOR THE PERIOD ENDING SATURDAY, October 20, 2007: Well No. NB-02 remained shut-in during this report period. Red Dog Engineering Department advises that pumping cannot be restarted until an isolation switch in the main power line to the GasEx project site can be installed. The equipment has been ordered, but it remains to be determined if it can be installed without shutting down the mill. The preliminary estimate for abest-case dewatering restart is in the December 2007-January 2008 time frame. The restart could be delayed until the next regularly scheduled mill shutdown in Apri12008 if a mill shutdown is required before the switch can be installed. As a precautionary measure, the tubing and pump stator were pulled on October 16, 2007, and the well will be freeze protected during the shut-in period. The final water level reading in NB-02 was 463 ft belowground level, which is roughly consistent with previous static water level measurements in this well. Well No. NB-01 remained shut-in during this report period. Red Dog Engineering Department advises that pumping cannot be restarted until an isolation switch can be installed in the main power line to the GasEx project site. This equipment has been ordered, but it remains to be determined if it can be installed without shutting down the mill. The preliminary estimate for abest-case dewatering restart is in the December 2007-January 2008 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 • (907) 258-3446 • (907) 279-5740 fi • • time frame. The restart could be delayed until the next regularly scheduled mill shutdown in April 2008 if a mill shutdown is required before the switch can be installed. As a precautionary measure, the tubing and pump stator will be pulled form NB-Ol within the next few days, and the well will be freeze protected during the shut-in period. The accuracy of water level measurements are suspect in this well for unknown reasons, but the well appears to be gradually refilling since it was shut-in. Sincerely, .~-'~ -~ ,~- j,,; .~ .+' _, -c ~,, ~ .~,~~f .__.___-.~-~-...,~ . ~~IZ:~C. Gardner For Teck Cominco Alaska Incorporated Cc: Jerry Booth, Teck Cominco Alaska Incorporated J • E & P SERVICES, INC. October 17, 2007 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 nom,. ~.,~ ~l~sk _ ` ~ 7 ~~~~ e Ui! ~ ~~~ xi Attention: Mr. Tom Maunder, P.E., Petroleum Engineer Re: Weekly Operations Status Report Teck Cominco Alaska Incorporated, Red Dog Shallow Gas Exploration Program. Report Period: October 7-October 13, 2007 Well Nos: NB-Ol (PTD 205-095), and NB-02 (PTD 205-096) Dear Mr. Maunder: FOR THE PERIOD ENDING SATURDAY, October 13, 2007: Continued with dewatering pumping at NB-02 unti10200 hrs on October 9, 2007, when electrical problems in the main Skv line to the GasEx project site caused an electrical disruption in the Red Dog mill. This resulted in Red Dog disconnecting the GasEx power system from the grid. All dewatering pumping has been shut down for the remainder of the report period. The separator and surge vessel at NB-02 were drained and blown down. A portable generator was set up on the NB-O1 pad so the buildings at both NB- 02 and NB-0l can remain heated. Water produced during this report period was 624 bbls, and gas produced averaged 1.4 MCF/D during the period when the well was in operation. The water level in NB-02 at the end of the report period had risen to 463 ft below ground level after pumping was stopped. The well remains shut-in while Red Dog works the electrical problem, and evaluates re-start options. Continued with dewatering pumping at NB-O l until 0200: hrs on October 9, 2007, when electrical problems in the main Skv line to the GasEx project site caused an electrical disruption in the Red Dog mill. This resulted in Red Dog disconnecting the GasEx power system from the grid. All dewatering 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 • (907) 258-3446 • (907) 279-5740 -.~~. ~ \J pumping has been shut down for the remainder of the report period. The separator and surge vessel at NB-O1 were drained and blown down. A portable generator was set up on the NB-O1 pad so the buildings at both NB-Ol and NB-02 can remain heated. Water produced during this report period was 63 bbls, and gas produced averaged 1.2 MCF/D during the period when the well was in operation. The water level in NB-O1 at the end of the report period had risen to 1079 ft below ground level after pumping was stopped. The well remains shut-in while Red Dog works the electrical problem, and evaluates re-start options. Sincerely, ~.~ ,, ..~ -?,.f-- r,. ..-~ ~- ~ ~~~ R. C. Gardner For Teck Cominco Alaska Incorporated Cc: Jerry Booth, Teck Cominco Alaska Incorporated E & P SERVICES, INC. October 11, 2007 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 Attention: Mr. Tom Maunder, P.E., Petroleum Engineer Re: Weekly Operations Status Report Teck Cominco Alaska Incorporated, Red Dog Shallow Gas Exploration Program. Report Period: September 30-October 6, 2007 Well Nos: NB-Ol (PTD 205-095), and NB-02 (PTD 205-096) Dear Mr. Maunder: FOR THE PERIOD ENDING SATURDAY, October 6, 2007: Continued with dewatering pumping at NB-02. Water produced during this report period was 2815 bbls. Water level in NB-02 at close of report period was 1044 ft below ground level. Gas produced averaged 1.84 MCF/D during this report period. Equipment operating OK, but not much change in well performance. Continued with dewatering pumping at NB-O1. Well is apparently pumped off. Water produced during this report period was 286 bbls. Water level in NB-Ol at close of report period was 1565 ft below ground level on echo meter reading, but echo meter reading is suspect. Gas produced averaged 1.84 MCF/D during this report period. Smce~,ely, ~,..,< ~~ -~~ R. C. Gardner For Teck Cominco Alaska Incorporated Cc: Jerry Booth, Teck Cominco Alaska Incorporated 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 • (907) 258-3446 • (907) 279-5740 E & P SERVICES, INC. October 2, 2007 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 Attention: Mr. Tom Maunder, P.E., Petroleum Engineer Re: Weekly Operations Status Report Teck Cominco Alaska Incorporated, Red Dog Shallow Gas Exploration Program. Report Period: September 23-29, 2007 Well Nos: NB-O1 (PTD 205-095), and NB-02 (PTD 205-096) Dear Mr. Maunder: FOR THE PERIOD ENDING SATURDAY, SEPTEMBER 29, 2008: Continued with dewatering pumping at NB-02. Water produced during this report period was 2871 bbls. Water level in NB-02 at close of report period was 1091 ft below ground level. Gas produced averaged 1.91 MCFlD during this report period. Equipment operating OK, but not much change in well performance. Continued with dewatering pumping at NB-01. Well is apparently pumped off. Water produced during this report period was 230 bbls. Water level in NB-O1 at close of report period was 1915 ft below ground level. Echo meter readings are suspect. Gas produced averaged 0.65 MCF/D during this report period. Sincerely, ~~ ,.,., ~,, .~~`t ""'" tic ~`~-- R. C. Gardner For Teck Cominco Alaska Incorporated Cc: Jerry Booth, Teck Cominco Alaska Incorporated 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 • (907) 258-3446 • (907) 279-5740 E & P SERVICES, INC. September 25, 2007 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 Attention: Mr. Tom Maunder, P.E., Petroleum Engineer ~~~ ~ ~~. `~°°~ } r: -.,_ Re: Weekly Operations Status Report Teck Cominco Alaska Incorporated, Red Dog Shallow Gas Exploration Program. Report Period: September 16-22, 2007 Well Nos: NB-01 (PTD 205-095), and NB-02 (PTD 205-096) Dear Mr. Maunder: FOR THE PERIOD ENDING SATURDAY, SEPTEMBER 22, 2008: Continued with dewatering pumping at NB-02. Increased pump speed in effort to lower water level. Water produced during this report period was 3032 bbls. Water level in NB-02 at close of report period was 1052 ft below ground level. Gas produced averaged 1.39 MCF/D during this report period. Continued with dewatering pumping at NB-O1. Well is apparently pumped off. Water produced during this report period was 263 bbls. Water level in NB-O1 at close of report period was 1564 ft below ground level. Echo meter readings are suspect. Gas produced averaged 1.42 MCF/ID during this report period. Sincerely, .° .- , A R. C. Gardner For Teck Cominco Alaska Incorporated Cc: Jerry Booth, Teck Cominco Alaska Incorporated 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 • (907) 258-3446 • (907) 279-5740 • E & P SERVICES, INC. September 20, 2007 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 • ~~~~° :~~` ~"` rv a: ~~P ~ ~ ~~cj Attention: Mr. Tom Maunder, P.E., Petroleum Engineer Re: Weekly Operations Status Report Teck Cominco Alaska Incorporated, Red Dog Shallow Gas Exploration Program. Report Period: September 9-15, 2007 Well Nos: NB-O1 (PTD 205-095), and NB-02 (PTD 205-096) Dear Mr. Maunder: FOR THE PERIOD ENDING SATURDAY, SEPTEMBER 15, 2008: Continued with dewatering pumping at NB-02. Water produced during this report period was 2281 bbls. Water level in NB-02 at close of report period was 882 ft below ground level. Gas produced averaged 1.37 MCF/D during this report period. Continued with dewatering pumping at NB-Ol . Well acts like it is pumped off. Water produced during this report period was 289 bbls. Water level in NB-01 at close of report period was 1565 ft below ground level. Echo meter readings are suspect. Gas produced averaged 2.4 MCF/D during this report period. Sincerely, , `~ ~'. ~< ~,. - 4° f; R. ~. Gardner For Teck Cominco Alaska Incorporated Cc: Jerry Booth, Teck Cominco Alaska Incorporated 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 • (907) 258-3446 • (907) 279-5740 • • E & P SERVICES, INC. September 13, 2007 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue. Suite 100 Anchorage, Alaska 99501 Attention: Mr. Tom Maunder, P.E., Petroleum Engineer 9 SEP 13 2~0~ Iaska Oil ~ Gas C~n~. Commission Anchar~~s Re: Weekly Operations Status Report Teck Cominco Alaska Incorporated, Red Dog Shallow Gas Exploration Program. Report Period: September 2-September 8, 2007 Wells Nos: NB-O1 (PTD 205-095), and NB-02 (PTD 205-096) Dear Mr. Maunder: FOR THE PERIOD ENDING SATURDAY, SEPTEMBER 8, 2007 Continued with dewatering pumping at NB-02. Water produced during report period was 2296 bbls. Water level in NB-02 at close of report period was 846 ft below ground level. Some improvement in rate of drop of water level this report period. Working to continue with dewatering pumping at NB-01, but well still experiencing mechanical problems with drive head. Water produced during report period was 258 bbls. Water level in NB-Ol at close of report period was 1869 ft below ground level. Well is close to being pumped off, and is now making between 1 and 3 MCF/D. Since ely, ~`' R.`C. Gardner For Teck Cominco Alaska Incorporated Cc: Jerry Booth, Teck Cominco Alaska Incorporated 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 • (907) 258-3446 • (907) 279-5740 • E & P SERVICES, INC. September S, 2007 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue. Suite 100 Anchorage, Alaska 99501 Attention: Mr. Tom Maunder, P.E., Petroleum Engineer V o`~EP 0 5 2007 iasi~a Cii Cas Cons. Commission Ancf;ora~~ Re: Weekly Operations Status Report Teck Cominco Alaska Incorporated, Red Dog Shallow Gas Exploration Program. Report Period: August 26-September 1, 2007 Wells Nos: NB-Ol (PTD 205-095), and NB-02 (PTD 205-096) Dear Mr. Maunder: FOR THE PERIOD ENDING SATURDAY, SEPTEMBER 1, 2007 Continued with dewatering pumping at NB-02. Water produced during report period was 2343 bbls. Water level in NB-02 at close of report period was 787 ft below ground level. Water level dropping at an average rate of approximately 10 ft per week. Working to continue with dewatering pumping at NB-Ol, but well down for four days at beginning of report period due to mechanical problems with drive head. Resumed pumping on August 30, 2007. Water produced during report period was 300 bbls. Water level in NB-O1 at close of report period was 1869 ft below ground level. Sincerely, ~~~ R. C. Gardner For Teck Cominco Alaska Incorporated Cc: Jerry Booth, Teck Cominco Alaska Incorporated 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 • (907) 258-3446 • (907) 279-5740 E & P SERVICES, INC. August 28, 2007 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue. Suite 100 Anchorage, Alaska 99501 Attention: Mr. Tom Maunder, P.E., Petroleum Engineer ~~ AUG 2 9 20d~ Alaska ail ~ Gas Cans, ~ammissinn An,c4t~ra~$ Re: Weekly Operations Status Report Teck Cominco Alaska Incorporated, Red Dog Shallow Gas Exploration Program. Report Period: August 19-August 25, 2007 Wells Nos: NB-Ol (PTD 205-095), and NB-02 (PTD 205-096) Dear Mr. Maunder: FOR THE PERIOD ENDING SATURDAY, August 25, 2007 Continued with dewatering pumping at NB-02. Water produced during report period was 2334 bbls. Water level in NB-02 at close of report period was 771 ft below the surface. Water level dropping, but very slowly. Re-set pump and rods in NB-O1, and resumed dewatering pumping on August 20, 2007. Water produced during report period was 984 bbls. Water level in NB-O1 at close of report period was 1651 ft below the surface. Sincerely, ~:~~~' .. R. C. Gardner For Teck Cominco Alaska Incorporated Cc: Jerry Booth, Teck Cominco Alaska Incorporated 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 • (907) 258-3446 • (907) 279-5740 # • E & P SERVICES, INC. August 20, 2007 Alaska Oil and Gas Conservation Commission 333 West 7t" Avenue. Suite 100 Anchorage, Alaska 99501 t~~ Attention: Mr. Tom Maunder, P.E., Petroleum Engineer RECEIVED AUG 2 12007 Alaska Oil & Gas Cons. Commission Anchorage Re: Weekly Operations Status Report Teck Cominco Alaska. Incorporated, Red Dog Shallow Gas Exploration Program. Report Period: August 12-August 18, 2007 Welds Nos: NB-O1 (PTD 205-095), and NB-02 (PTD 205-096) Dear Mr. Maunder: FOR THE PERIOD ENDING SATj1RDAY, August 18, 2007 Resumed dewater of NB-02 on August 12, 2007. Water production during report period was 1581 bbls. Water level in NB-02 at close of report period was 744 ft below surface. Ran tubing, pump and rods in NB-O1, but rotor at wrong depth and would __ ~ not seat in pump. Pulled rods and verified tally. Re-ran rods, but rotor still .~..- would not seat. Working on problem at close of report period. Sincerely, A .~ ~~" R. C. Gardner For Teck Cominco Alaska Incorporated Cc: Jerry Booth, Teck Cominco Alaska Incorporated 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 • (907) 258-3446 • (907) 279-5740 E & P SERVICES, INC. August 15, 2007 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue. Suite 100 Anchorage, Alaska 99501 Attention: Mr. Tom Maunder, P.E., Petroleum Engineer RECEIVED AUG 1 7 2007 Alaska Oil & Gas Cons. Commission Anchorage Re: Weekly Operations Status Report Teck Cominco Alaska Incorporated, Red Dog Shallow Gas Exploration Program. Report Period: August 5-August 11, 2007 Wells Nos: NB-Ol (PTD 205-095), and NB-02 (PTD 205-096) Dear Mr. Maunder: FOR THE PERIOD ENDING SATURDAY, August 11, 2007 Completed re-running tubing, rods and pump in NB-02. Pump at 2951 ft. Repairing drive head for NB-02 at close of report period. Re-ran tubing, rods and pump in NB-Ol . Pump at 2575 ft. Dewatering of both wells anticipated to resume during next report period following arrival of ARI dewatering/pumping engineer. Sincerely, r ~ R. C. Gardner For Teck Cominco Alaska Incorporated Cc: Jerry Booth, Teck Cominco Alaska Incorporated 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 • (907) 258-3446 • (907) 279-5740 E & P SERVICES, INC. August 11, 2007 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue. Suite 100 Anchorage, Alaska 99501 Attention: Mr. Tom Maunder, P.E., Petroleum Engineer Re: Weekly Operations Status Report Teck Cominco Alaska Incorporated, Red Dog Shallow Gas Exploration Program. Report Period: July 29-August 4, 2007 Wells Nos: NB-Ol (PTD 205-095), and NB-02 (PTD 205-096) Dear Mr. Maunder: FOR THE PERIOD ENDING SATURDAY, August 4, 2007 Pulled rods, tubing and pump on NB-02 for clean-out and installation of new pump. Found 30 ft of sand on bottom. Bailed hole clean. Repairing drive head and re-running tubing in NB-02 at close of report period. NB-0l cleaned out and awaiting re-run of pump when crew and equipment become available. Sincerely, .r .._. ,~. R. C. Gardner For Teck Cominco Alaska Incorporated Cc: Jerry Booth, Teck Cominco Alaska Incorporated 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 • (907) 258-3446 • (907) 279-5740 E & P SERVICES, INC. July 30, 2007 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue. Suite 100 Anchorage, Alaska 99501 Attention: Mr. Tom Maunder, P.E., Petroleum Engineer ~~n~~ ~ _~ Re: Weekly Operations Status Report Teck Cominco Alaska Incorporated, Red Dog Shallow Gas Exploration Program. Report Period: July 22-28, 2007 Wells Nos: NB-O1 (PTD 205-095), and NB-02 (PTD 205-096) Dear Mr. Maunder: FOR THE PERIOD. ENDING SATURDAY, July 28, 2007 Continued with dewatering operations at NB-02 through July 25, 2007. Shut-in dewatering at NB-02 effective July 26, 2007 at direction of Teck Cominco management due to lack of replacement pumping engineer, and in preparation for pump change. Fluid level at time pumping ceased was 1072 ft. Total NB-02 water production during report period was 1805 bbls (avg. 451 bbls/day). Pulled tubing at NB-01. Found minimal fill under pump. Still no full time crew for production hoist, so work at NB-0l being done when personnel are available. Will re-run pump, tubing and rods at NB-Ol as soon as replacement crews arrive. Sincerely, ~-"' r~' ., j~~t'c'--------~-°~..w. R. C. Gardner For Teck Cominco Alaska Incorporated Cc: Jerry Booth, Teck Cominco Alaska Incorporated 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 • (907) 258-3446 • (907) 279-5740 E & P SERVICES, INC. ~U~, ~ 0 2007 July 25, 2007 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue. Suite 100 Anchorage, Alaska 99501 l~ska Oil ~ ~~s ~~ts. ~amr~issioa~ ~a~~c~~~ Attention: Mr. Tom Maunder, P.E., Petroleum Engineer Re: Weekly Operations Status Report Teck Cominco Alaska Incorporated, Red Dog Shallow Gas Exploration Program. Report Period: July 15-21, 2007 Wells Nos: NB-Ol (PTD 205-095), and NB-OZ (PTD 205-096) Dear Mr. Maunder: FOR THE PERIOD ENDING SATURDAY, July 21, 2007 Continuing with dewatering operations at NB-02. Fluid level at close of report period was at 1040 feet. Pumping continuous at 24 hrs/day during report period. Total water production for period was 3226 bbls (avg.=461 bbls/day). Small amount of gas observed breaking out of water stream, but volume too small to measure. Well No. NB-O1 remained shut-in during report period due to production hoist being still down awaiting replacement hydraulic power unit, and crew shortage. Will resume work on NB-01 as soon as replacement crews arrive, now estimated at around month-end. Sincerely, _.. ~~ ~y ~~f R. C. Gardner For Teck Cominco Alaska Incorporated Cc: Jerry Booth, Teck Cominco Alaska Incorporated 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 • (907) 258-3446 • (907) 279-5740 E & P SERVICES, INC. July 17, 2007 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue. Suite 100 Anchorage, Alaska 99501 Attention: Mr. Tom Maunder, P.E., Petroleum Engineer ~; ~a~L ~ ~ ~~~?~~ ,~~sk~ Oi¢ pp~, ;.~,,, . t4":S',~. _. Re: Weekly Operations Status Report Teck Cominco Alaska Incorporated, Red Dog Shallow Gas Exploration Program. Report Period: July 08-14, 2007 Wells Nos: NB-O1 (PTD 205-095), and NB-02 (PTD 205-096) Dear Mr. Maunder: FOR THE PERIOD ENDING SATURDAY, July 14, 2007 Continuing with dewatering operations at NB-02. Fluid level at close of report period was at 1036 feet. Pumping continuous at 24 hrs/day during report period. Total water production for period was 3455 bbls (avg.=494 bbls/day). Small amount of gas observed breaking out of water stream, but volume too small to measure. Well No. NB-O1 remained shut-in during report period due to production hoist being still down awaiting replacement hydraulic power unit. Sincerely, ..~ R: C. Gardner For Teck Cominco Alaska Incorporated Cc: Jerry Booth, Teck Cominco Alaska Incorporated 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 • (907) 258-3446 • (907) 279-5740 • i E & P SERVICES, INC. July 10, 2007 Alaska Oil and Gas Conservation Commission 333 West 7`~ Avenue. Suite 100 Anchorage, Alaska 99501 Attention: Mr. Tom Maunder, P.B., Petroleum Engineer ~~~~~ ~iUL 1 0 2007 ~lasi~a Oil & Gas Cans. Ccrmmissian Ancl~arage Re: Weekly Operations Status Report Teck Cominco Alaska Incorporated, Red Dog Shallow Gas Exploration Program. Report Period: July 01-07, 2007 Wells Nos: NB-O1 (PTD 205-095), and NB-02 (PTD 205-096) Dear Mr. Maunder: FOR THE PBRIOD ENDING SATURDAY, July 07, 2007 Continuing with de-watering operations and making adjustments to PCP rpm rates to improve drawdown on well No. NB-02. NB-O1 shut-in during report period for clean-out and lowering of pump. Pump hoist lost hydraulic power unit while pulling rods. Waiting on replacement power unit. NB-02 pumping 24 hrs/day during report period. Fluid level at NB-02 at 890 ft at close of report period, with water production averaging 510 bbls/day. Small amount of gas observed breaking out of water stream, but volume too small to measure. Sinter , ,~. ,,:. _~~~ ,~ ' ,.- l f C. Gardner For Teck Cominco Alaska Incorporated Cc: Jerry Booth, Teck Cominco Alaska Incorporated 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 • (907) 258-3446 • (907) 279-5740 • E & P SERVICES, INC. July 2, 2007 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue. Suite 100 Anchorage, Alaska 99501 Attention: Mr. Tom Maunder, P.E., Petroleum Engineer ~~~GI V E® JUL 4 3 2007 Alaska Oil & Gas Cons. Commission Anchorage Re: Weekly Operations Status Report Teck Cominco Alaska Incorporated, Red Dog Shallow Gas Exploration Program. Report Period: June 24-30, 2007 Wells Nos: NB-Ol (PTD 205-095), and NB-02 (PTD 205-096) Dear Mr. Maunder: FOR T'HE PERIOD ENDING SATURDAY, June 30, 2007 Continuing with de-watering operations and making adjustments to PCP rpm rates to improve drawdown. Shut-in NB-O1 on June 26th due to alignment problems with drivehead and wellhead. NB-02 pumping 24 hr/day during this report period. Fluid level at close of report period: 652 ft. Water production during report period: NB-Ol : 148.2 bbls; NB-02: 3270.4 bbls. No gas production measured during this report period. Sinter , ~^ ~,.: L~° R. .Gardner For Teck Cominco Alaska Incorporated Cc: Jerry Booth, Teck Cominco Alaska Incorporated • 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 • (907) 258-3446 • (907) 279-5740 E & P SERVICES, INC. June 27, 2007 Alaska Oil and Gas Conservation Commission 333 West T~ Avenue. Suite 100 Anchorage, Alaska 99501 Attention: Mr. Tom Maunder, P.E., Petroleum Engineer ~E~E~ Y CQ JUL Q 3 2007 Alaska Qil & Gas Cons. Commission Anchorag® Re: Weekly Operations Status Report Teck Cominco Alaska Incorporated, Red Dog Shallow Gas Exploration Program. Report Period: June 17-23, 2007 Wells Nos: NB-O1 (PTD 205-095), and NB-02 (PTD 205-096) Dear Mr. Maunder: FOR THE PERIOD ENDING SATURDAY, June 23, 2007 Continuing with de-watering operations and making adjustments to surface equipment, which limited pumping operations to 12 hrs per day through June 22, 2007. Pumping 24 hrs per day thereafter. Water production during report period: NB-O1: 551.8 bbls; NB-02: 868.8 bbls. NB-Ol showing significant drawdown with fluid level at end of report period at 1138 ft. NB- 02 not showing much response in fluid level yet. Sincerely, ~ , ~~ ~.m. .f R. C. Gardner For Teck Cominco Alaska Incorporated Cc: Jerry Booth, Teck Cominco Alaska Incorporated 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 • (907) 258-3446 • (907) 279-5740 r E & P SERVICES, INC. June 19, 2007 Alaska Oil. and Gas Conservation Commission 333 West 7~' Avenue. Suite 100 Anchorage, Alaska 99501 Attention: Mr. Tom Maunder, P.E., Petroleum Engineer ~~ J~.1~ .2 `~ Z~~~ A(aska Gid ~ has ~;~~~~, Ct~tt"imissior~ An~hora~e Re: Weekly Operations Status Report T"eck Cominco Alaska Incorporated, Red Dog Shallow Gas Exploration Program_ Report Period: June 10-16, 2007 Wells Nos: NB-01 (PTD 205-095), and NB-02 (PTD 205-096) Dear Mr. Maunder: FOR THE PERIOD ENDING SATURDAY, June 16, 2007 Continuing with de-watering operations and making adjustments to surface equipment. Monitored fluid levels in wells daily. No gas production during report period. Sincerely, _.. ~~ R. C. Gardner For ~'eck Cominco Alaska Incorporated Cc: Jerry Booth, Teck Cominco Alaska Incorporated 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 • (907) 258-3446 • (907) 279-5740 • • E & P SERVICES, INC. June 11, 2007 Alaska Oil and Gas Conservation Commission 333 West 70' Avenue. Suite 100 Anchorage, Alaska 99501 Attention: Mr. Tom Maunder, P.E., Petroleum Engineer ~~CIVCLd JUN 1 2 200r Alaska Oil & Gas Cons. Commission Anchorage Re: Weekly Operations Status Report Teck Cominco Alaska Incorporated, Red Dog Shallow Gas Exploration Program. Report Period: June 3-9, 2007 Wells Nos: NB-Ol (PTD 205-095), and NB-02 (P'TD 205-096) Dear Mr. Maunder: FOR THP PERIOD ENDING SATURDAY, June 9, 2007 Continuing with de-watering operations and fine-tuning surface equipment. Monitored fluid levels in wells daily. No gas production during report period. Sinc ely, s R. C. Gardner For Teck Cominco Alaska Incorporated Cc: Jerry booth, Teck Cominco Alaska Incorporated 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 • (907) 258-3446 • (907) 279-5740 • E & P SERVICES, INC. June 6, 2007 Alaska Oil and Gas Conservation Commission 333 West 7~' Avenue. Suite 100 Anchorage, Alaska 99501 • Attention: Mr. Tom Maunder, P.E., Petroleum Engineer Re: Weekly Operations Status Report Teck Cominco Alaska Incorporated, Red Dog Shallow Gas Exploration Program. Report Period: May 27-June 2, 2007 Wells Nos: NB-Ol (PTD 205-095), and NB-02 (PTD 205-096) Dear Mr. Maunder: POR THE PERIOD ENDING SATURDAY, June 2, 2007 Continuing with. de-watering operations and fine-tuning surface equipment. No gas production during report period. Sinc y, ,-- .; R. C. Gardner For Teck Cominco Alaska Incorporated Cc: Jerry Booth, Teck Cominco Alaska Incorporated 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 • (907) 258-3446 • (907) 279-5740 E & P SERVICES, INC. June 6, 2007 Alaska Oil and Gas Conservation Commission 333 West 7'~ Avenue. Suite 100 Anchorage, Alaska 99501 Attention: Mr. Tom Maunder, P.E., Petroleum Engineer Re: Weekly Operations Status Report Teck Cominco Alaska Incorporated, Red Dog Shallow Gas Exploration Program. Report Period: May 20-26, 2007 Wells Nos: NB-O1 (PTD 205-095), and NB-02 (PTD 205-096) Dear Mr. Maunder: POR THE PERIOD ENDING SATURDAY, MAY 26, 2007 Dewatering crew assembled in Red Dog by Saturday, May 19, 2007. Conducted NSTC and other site-specific training necessary to work at Red Dog. De-winterized surface equipment, and engaged in testing and trouble- shooting same. Bumped downhole pumps to conf rm rotation. Re-started de-watering operations on May 24, 2007. Continuing with de-watering operations and fine tuning surface equipment. No gas production during report period. Sincerely, ~-~ ~ '~ ~ ~.. ~._~_.~. R: C. Gardner For Teck Cominco Alaska Incorporated Cc: Jerry Booth, Teck Cominco Alaska Incorporated. 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 • (907) 258-3446 • (907) 279-5740 ^~ ~~ ~ ~ SARAH PALIN, GOVERNOR SSA, OII/ ~D ~ t 333 W. 7th AVENUE, SUITE 100 C011TSER'QA'1'IOI~T COMI'IISSIOI~T / ANCHORAGE, ALASKA 99501-3 PHONE (907) 279-1433 FAX (907) 276-7542 R.C. Gardner Sr. Technical Advisor Teck Cominco Alaska Incorporated 3105 Lakeshore Drive, Building "A" Anchorage, AK 99517 Re: Exploration, Wildcat, NB-O1 Sundry Number: 307-152 Dear Mr. Gardner: Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. When providing notice for a representative of the Commission to witness any required test, contact the Commission's petroleum field inspector at (907) 659-3607 (pager). As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. A person may not appeal a Commission decision to Superior Court unless rehearing has been requested. Sincerely, ~~ Dan T. Seamount Commissioner DATED this 'day of May, 2007 Encl. STATE ALASKA ,~ ~ECE~ V ~® ALAS~OIL AND GAS CONSERVATION COMM 510N M APPLICATION FOR SUNDRY APPROVALS AY ~ 2 2007 nn n nn n~ n Ah~L.. A:1 O_n__ n _........ ",.",,, ..._ ..,, .~ uao uuna. t+utnnnSSrOfI 1. Type of Request: Abandon ^ Suspend ^ Operational shutdown ^ Perforate ^ 1~~p~e Other Q Alter casing ^ Repair well ^ Plug Perforations ^ Stimulate ^ Time Extension ^ Resume dewatering Change approved program ^ Pull Tubing ^ Perforate New Pool ^ Re-enter Suspended Well ^ operations 2. Operator Name: 4. Current Well Class: 5. Permit to Drill Number: Teck Cominco Alaska Incorporated Development ^ Exploratory ^ 205-095 3 Add . ress: Stratigraphic ^ Service ^ 6. API Number: 3105 Lakeshore Drive, Bldk "A" Anchorage, Ak 99517 50-073-20002-00 7. If perforating, closest approach in pool(s) opened by this operation to nearest 8. Well Name and Number: property line where ownership or landownership changes: 1V/p Spacing Exception Required? Yes ^ No ^ °° NB-01 9. Property Designation: 10. KB Elevation (ft): 11. Field/Pool(s): NANA Re Tonal Corporation ' 807.66 ft. / Explorato -' 12. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): ~ Total Depth TVD (ft): J Effective Depth MD (ft)~ Effective Depth TVD (ft): Plugs (measured): Junk (measured): 2745 2740 2714 2709 2714-2745 None Casing Length Size MD TVD Burst Collapse Structural Conductor 75' 13 3/8" 75' 75' Surface 694' 8 5/8" 694' 693' 2950 1370 Intermediate Production 2728 5 1/2" 2728 2725 4810 4040 Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): See attached See attached 2 7/8" 6.5#, J-55 P628 Packers and SSSV Type: No packer and no SSSV Packers and SSSV MD (ft): N/A 13. Attachments: Description Summary of Proposal Q 14. Well Class after proposed work: Detailed Operations Program Q BOP Sketch ^ Exploratory 0 ~ Development ^ Service ^ 15. Estimated Date for 19-May-07 16. Well Status after proposed work: Commencing Operations: Oil ^ Gas Q ~ Plugged ^ Abandoned ^ 17. Verbal Approval: Date: WAG ^ GINJ ^ WINJ ^ WDSPL ^ Commission Representative: 18. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Printed Name R.C. Gardner Title Sr. Technical Advisor for Teck Cominco Alaska Incorporated Signature /t Phone 907-258-3446 Date 27-Apr-07 C .~. COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: 3~ ~ _ ~5 a Plug Integrity ^ BOP Test ^ Mechanical integrity Test ^ Location Clearance ^ Other: `~ „_, O f~ ~, Subsequent Form Required: ~ ~ „ ` ` ~~' `,~~~.~~~,~I Q~O~UC~'i®~ ~-~ ~~.,..~~ APPROVED BY Approved by: COMMISSIONER THE CO ISSION D S~¢ /~ ate: ~l Form 10-403 Revised 06/2006 ~ ! \' ~ ~ n' ~ ~ ~"~.=~ ~ ~ ' ' ~~ ~ I ~ -~y ~~ (SubmiCin~ligat~ /~~ C~ • Teck Cominco Alaska Incorporated Well No. NB-O1 PTD: 205-095 API No. 50-073-20002-00 Attachment to Form 10-403, dated April 27, 2007 Proposal to Resume Operations Perforation Depths (NID and TVD), Bottom to Top 2640'-2660' 6 jspf 2510' 2530' 4 jspf 2550'-2570' 4 jspf 2590'-2610' 4 jspf 2410'-2450' 6 jspf 2380'-2400' 6 jspf 2250'-2270' 6 jspf 2200'-2220' 6 jspf 2170'-2190' 6 jspf 2136'-2156' 6 jspf 2110'-2120' 6 jspf 2070'-2090' 6 jspf 1860'-1900' 6 jspf 1820'-1840' 6 jspf 1775'-1795' 2 jspf 1640'-1670' 2 jspf • Teck Corriinco Alaska Incorporated Well No. NB-01 PTD: ZOS-095 API No. 50-073-20002-00 Attachment to Form 10-403, dated Apri127, 2007 Proposal to Resume Operations .~ This Application for Sundry Approvals covering the resumption of dewatering and testing operations is required under the conditions of approval to shut-in the well in October, 2005 (Sundry Number 305-290). Dewatering operations were suspended due to the onset of freezing temperatures at Well No. NB-O1 on October 5, 2005. The well was freeze protected before being shut in for the winter season. Dewatering operations did not resume in summer 2006 due to engineering and construction delays in completing the installation of all-season water handling facilities. This proposal describes plans to resume dewatering and production testing operations on or about May 19, 2007. The work includes start-up of the aforementioned water handling facilities, and bringing the well back on line as per the attached start-up procedure. Gas and water production, and annulus pressure will be continuously recorded, and reported to the AOGCC monthly. Fluid levels will be checked at frequent intervals. Absent mechanical problems, it is planned that the well will be kept pumped off, and a flow test continued for up to one year, -- which is a reasonable dewatering/test period for shale gas wells. ~ ~ WELL PRODUCTION STARTUP AND OPERATION-WELL No. NB-O1 1. Inform the mill operator that the North Basin wells are to be powered up. 2. Go through North Basin facilities, ensure all switches and breakers are turned to the off position. 3. Solicit the Mine Electrical group to provide an Electrician to inspect the main disconnect for the North Basin power distribution system and insure that power is available at the main disconnect. 4. Throw main breaker to Gas-Ex 5 KV power line 5. Power heat trace on Mainline Segment #1 and the automation controls and all transformers at each segment and on the well locations. Confirm heat trace and communications are on at mine sump. 6. Ready the surge vessel for start up, set electric ball valve to manual. 7. NB-01 & NB-02 well houses, confirm the Moyno Pump manual switch is off. Throw breakers to power control panel and heat trace, transfer pumps, heating, and lighting. 8. Tour the North Basin facilities to verify: A. Lighting operates properly B. Check heating/operating/up to temperature C. Check RTUs/operating/communicating D. Verify communication with the Mill Control Room 9. Set valves at wellheads to flow into the separators and open the two inch ball valve off top of separator to the gas vent. 10. Switch the NB-01 and NB-02 drive head manual switches to on. Insure the drive head turning rods properly. Bump the down hole pump, start and immediately stop the pump, check for sticking. Then fill separator with water. 11. Insure the 2-inch ball valve is open, set the electric ball valve manual open. Bump the Ebara transfer pump, verify proper turn and operation, then set the pump switch to auto. Close the two inch electric ball valve and set to Auto. 12. Start the pumps at 250 rpm for 5 minutes, monitor for sticking. Reduce to 150 rpm after 2-hours. 1~. Verify fluid to surface and monitor the pumps closely foa° the first 2~ hours for solids production, sticking, and water production. Watch the returns through the clear nipple at the separator inlet. E & P SERVICES, INC. April 27, 2007 • Alaska Oil and Gas Conservation Commission 333 West 7t" Avenue, Suite 100 Anchorage, AK 99501 Attention: Tom Maunder, P.E., Petroleum Engineer k~,~~ ~,~ ,,4, ~. ~ n ~ °~~~~~ ~~~~ gas Cons. Commission Anchorage Re: Request for Sundry Approval (Form 10-403) Resume Dewatering Operations Teck Cominco Alaska Incorporated (Teck Cominco) Well No. NB-Ol, PTD No. 205-095 Dear Mr. Maunder: The above referenced shale gas exploration well has been shut-in since October 5, 2005 due to a lack of water handling facilities that are necessary for long-term dewatering and production testing. The shut-in was authorized under Sundry Number 305-290. In May 2006 Teck Cominco requested a Sundry Approval to re-start the dewatering process. The approval was granted by the Commission under Sundry Number 306-174. This resumption of dewatering never occurred due to engineering and construction delays in finalizing the installation of the aforementioned water handling facilities; and the well remained shut-in during 2006. Subsequent to receiving the 306-174 approval, the operator elected to defer start-up until a prolonged (possibly up to one year) dewatering effort could be sustained, r, It made little sense to dewater only for the summer, and then shut-in the well again for the winter, as what little dewatering progress was made during the short summer season would only be lost, and the whole process would have to begin again in 2007. Dewatering is now scheduled to resume in late May 2007, as facilities to handle the water are nearing completion. The attached Request for Sundry Approval reflects this start-up. Once started, it is anticipated that dewatering 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 • (907) 258-3446 • (907) 279-5740 ~, ~ and production testing will continue for up to one year in order to adequately evaluate the potential commerciality of the Red Dog Shale Gas Prospect. Should you have any questions on this Request for Sundry Approval, please contact the undersigned. at 907-258-3446, or by e-mail at bob(a~fairweather.com. Thank you for your consideration of this request. Sincerely, ~~~ R. C. Gardner For Teck Cominco Alaska Incorporated Attachments Cc: Jerry Booth, Teck Cominco Alaska Incorporated --- - _ - -v n i] r~ri'71 nY-n ,;.~ I J_ll ~~wCJ. ~ ~ v March 1 ~, 2007 ~~ . -_~, _ _ ~~Ju _. _'~y` Cathy P. Foerster Commissioner Alaska Oil and Gas Conservation Commission 333 West 7"' Avenue, Suite 100 Anchorage, AK 99501-3539 Re: Resumption of De-watering Operations, Teck Cominco Alaska, Red Dog Shallow Gas Exploration Wells. Dear Ms. Foerster: During our meeting in early February, 2007, re improving communications between Teck Cominco Alaska and the AOGCC, the subject of when de-watering operations would be resumed at the Red Dog Shallow Gas Exploration Program wells was raised. I believe I tald you that we expected this to be in mid to late March, 2007. Weather and other factors have made it impossible to adhere to this schedule, and we now anticipate resuming de-watering operations in mid to late April, 2007. I was concerned that, based on my earlier comments, the Commission would be looking for production reports for March, 2007 during the coming weeks. It appears that the best we can hope for is the April, 2007 start-up. Sincerely, --- GGaa G `' y .. 1 e- -----~------~... R. C. Gardner For Teck Cominco Alaska Incorporated Cc: Dave Roby, AOGCC Jerry Booth, Teck Cominco Alaska Incorporated 2000 East 88th Avenue • Anchorage, Alaska 99507 • (907) 258-3446 a (907) 279-5740 E & P SERVICES, LLC January 25, 2007 Cathy P. Foerster Commissioner Alaska Oil and Gas Conservation Commission 333 West 7~' Avenue, Suite 100 Anchorage, AK 99501-3539 ~:;~~~ ~iaska G:~ Oar '" art<:. $~e?¢T!(CtlS5lUb*~ ~~~:l~v r --; Re: Reporting Practices, Teck Cominco Alaska Incorporated, Red Dog Shale Gas Exploration Wells, Nos. NB-O1, (PTD 205-095); NB-02, (PTD 205-096); NB-03, (PTD 206-090); NB-04, (PTD 206-091); and NB-O5, PTD 206-097). Dear Ms. Foerster: Thank you for, your letter of January 8, 2007 concerning reporting issues involving the above referenced wells. Hopefully the following paragraphs will satisfactorily address your concerns, and the attachments hereto will fill in the data gaps in Commission files. Perhaps the best way for me to respond to your concerns is to address the points that you have raised in the same order, and using the same paragraph numbers that were used in your January 8th letter. 1. Weekly status reports for wells Number NB-03 and NB-04 were mailed to the Commission while operations were underway on these wells, and I have attached copies for Commission files. In addition, detailed well histories in day-to-day format were included in the Completion Reports for both of these wells. I have attached copies of these histories, as well. As a point of clarification, please advise if we are to submit weekly status reports for the periods when there are no well site operations in progress. I have always assumed that these reports were only required when drilling, completion, or related operations were being done. If this is not the case, I owe you a lot of reports for periods when the wells were idle. In the case of wells Nos. NB-O1 and NB-02, the wells have been idle since 2005, with the exception of the minimal stimulation work discussed in Paragraph 4, below. 2. As previously reported to the Commission, the Completion Reports for NB-01 and NB-02 were delayed due to the lack of as-built surveys being available from Red Dog. According to information conveyed from Mr. Dave Roby of your office in a recent telephone conversation, we should have submitted the components of the completion reports that we had, and taken our lumps over the missing surveys rather than waiting until we had the complete packages 2000 East 88th Avenue • Anchorage, Alaska 99507 • (907) 258-3446 • (907) 279-5740 -~ • L` assembled. We have already received a letter from Commissioner Norman chastising us for the late reports, and I do get the message! No more delayed reports! In the case of NB-03 there was unclear communication with the Commission about what reports were required by the condition in which the well was left at the end of the 2006 season, and which was covered in my letter of January 18, 2007. 3. Wells Nos. NB-Ol and NB-02 were not produced or de-watered during the 2006 season, and since the wells were idle, no production reports were filed. Water handling facilities were designed, and installation started during the 2006 season, but no attempts were made to produce or test the wells. De-watering requires a sustained effort, and anything less serves no purpose in evaluating the wells. The initial dewatering efforts in 2005 were for the most part inconclusive, albeit encouraging, as the wells could not be satisfactorily de-watered to develop meaningful production evaluation data. When the wells were freeze protected and shut-in at the end of the 2005 summer season, they quickly refilled with water, and the de-watering process will have to start again from scratch. During the 2005 season dewatering operations, production reports were submitted to the Commission. When the wells were shut-in, I asked Steve Davies of your office if we needed to continue to file these reports while the wells were idle, but show zero production. I was told that we did not need to file the reports during this period, but to be sure to recommence reporting when de-watering and testing resumed. At that time I believe we anticipated that this would be in 2006. Mr. Roby indicates that there is some information in the files to this effect, and that we should have informed the Commission of our change in plans. In hindsight, I believe that he is correct, but I frankly did not recall that we had anything on file committing us to a resumption of testing in 2006. Nevertheless, I think the main issue here is that we have no production to report for 2006. 4. The requested Form 10-404 is attached. In recent months the oil and gas media has published several articles on the Red Dog shale gas exploration effort. In my view, these articles have served to "over hype" the program in the eyes of those who are not intimately acquainted with it. The articles seem to be based on information taken from various technical presentations, and from attachments to a Unit Agreement which was negotiated with DNR covering some shallow gas State leases which adjoin the NANA lands on which the current project is located. There is really no way to counter some of these misconceptions, but they do have the potential for making people believe that the program is farther along than it is. In order to better inform the Commission about the current status of the program, and our plans for the 2007 summer season, Mr. Jerry Booth, Teck Cominco Project Manager, and I would welcome an opportunity to meet with the Commissions and any of your staff that you wish to involve, and basically tell you where we are on this project, and to re-affirm our pledge to improve our reporting practices. We are suggesting Thursday afternoon, February 8, 2007 for this meeting, as Mr. Booth will be in Anchorage on that date. ~ • Teck Cominco Alaska Incorporated and Fairweather E & P Services, Inc. are committed to improving the communication between our companies and the AOGCC, and to eliminating any future shortfalls in proving your agency with the information you require in a timely manner. We believe that the suggested face-to-face meeting would be beneficial to these objectives, and to clearing up any misconceptions the Commission may have about progress that the Red Dog exploration program has made in evaluating this unconventional source of energy for the Red Dog Mine, and perhaps the surrounding area. Sincerely, ri: , _. ~' _ R. C. Gardner For Teck Cominco Alaska Incorporated Attachments Cc: Dave Roby, AOGCC Jerry Booth, Teck Cominco Alaska Incorporated STATE OF ALASKA ALA OIL AND GAS CONSERVATION COMM~ION REPORT OF SUNDRY WELL OPERATIONS ~. ~.. 1.Operations Abandon Repair Well Plug Perforations Stimulate ~ Other Performed: Alter Casing ^ Pull Tubin g ^ Perforate New Pool ^ Waiver^ Time ExtenSiorr~[~ Change Approved Program ^ Operat. Shutdown ^ Perforate Q - Re-enter Suspended Well ^ 2. Operator Teck Cominco Alaska Incorporated 4. Well Class Before Work: 5. F~eKfnitfoa~iiliN ` ~ ~ ' Name: Development ^ Exploratory^ 205-095 ~0C~i0[8~t~ 3 Add 1 . ress: 3 05 Lakeshore Dr., Bldg A,Ste101 Stratigraphic^ Service^ 6. API Number. Anchorage, AK 99517 50-073-20002-00 7. KB Elevation (ft): 9. Well Name and Number: 807.66 - NB-01 8. Property Designation: 10. Field/Pool(s): NANA Regional Corporation 50-073-20002-00 11. Present Well Condition Summary: Total Depth measured 2745 feet Plugs (measured) 2714-2745 true vertical 2740 feet Junk (measured) None Effective Depth measured 2714 feet true vertical 2709 feet Casing Length Size MD TVD Burst Collapse Structural Conductor 75 13 3/8 75 75 Surface 694 8 5/8 694 693 2950 1370 Intermediate Production 2728 5 1/2 2728 2725 4810 4040 Liner Perforation depth: Measured depth: Set Attached True Vertical depth: See Attached Tubing: (size, grade, and measured depth) 2 7/8 J-55 2670 Packers and SSSV (type and measured depth) 12. Stimulation or cement squeeze summary: Intervals treated (measured): See Attached Treatment descriptions including volumes used and final pressure: See Attached 13. Representative Daily Average Production or Injection Data Oil-Bbl Gas-Mcf Water-Bbl Casing Pressure Tubing Pressure Prior to well operation: 0 - 0 0 0 0 Subsequent to operation: 0 0 0 0 0 14. Attachments: 15. Well Class after work: Copies of Logs and Surveys Run Exploratory0 Development ^ Service ^ Daily Report of Well Operations 16. Well Status after work: Oil ^ Gas Q WAG ^ GINJ ^ WINJ ^ WDSPL ^ 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Sundry Number or N/A if C.O. Exempt: 306-292 Contact ~~ - ,14~ ~ to ~DOt= Printed Name R.C. Gardner Title Sr. Technical Advisor, Teck Cominco ' Signature ~ ~'. ~ Phone ~ L~7.-1~,.L~,~~ Date ~, Q° ,,51~ /' 21 • v'j Form 10-404 Revised 04/2006 ~~ Sub riginal Onl ~~29~07 • • ~..~-<_ ~ ~ P SERVhES, LLC Alaska Oil and Gas Conservation Commission 333 West 7~' Avenue, Suite 100 Anchorage, AK 99501 Re: Weekly Status Report Teck Cominco Alaska Incorporated Well No. NB-O1, PTD 205-095 Gentlemen: FOR THE WEEK ENDING SATURDAY, SEPTEMBER 2, 2006 The hydraulic fracturing operations authorized und~ Sundry Notice 306-292 were conducted on September 1 and September 2, 2006. After treating, each zone was isolated with a CBP, and the treatment continued zone by zone up the hole. All the CBP's were drilled out after the last zone was treated, and excess sand circulated out of the hole. A PCP was run on 2 7/8" tubing and set at 2670 ft. The well was then freeze protected for the 2006-2007 winter season. Sincerely, ~, R. C. Gardner For Teck Cominco Alaska Incorporated 2000 East 88th Avenue • Anchorage, Alaska 99507 • (907) 258-3446 • (907) 279-5740 Gasex 2006: NB-01: Recompletion Hydraulic Fracturing Summary Top Bottom Average Inst Perf. Depth' Perf. De th' T t l Job Average Sand Max. Treating . Shut-in p o a Volume Rate Volume Conc. Pressure Pressure NB-01 Recom Lft.,~ pletion ~ Perfs.' bbl bbl/min sacks ~a~ si si Stage 1 Stage 2 2380 2070 2660 2270 563 524 422 15.2 400 7.3 2527 1790 Stage 3 1640 1900 462 458 508 17.4 18 9 502 558 7 2245 161.9 . 7 1553 1323 1 Includes perforations from previous completion ... ca a a ... -~ c ea .-: Q. v a~ 18 16 14 12 10 8 6 NB01 Stage 1 -Main Frac 3500 3000 2500 ... 2000 .Q L 1500 ~ L a 1000 4 2 0 500 0 O N M 6f) I~ 00 O ~ ~ ~ ~ ~ N N N N N N M M M (~ ~ ~ ~ ~ Time (min) 18 .-. ea a a -v c N E fl. ... 16 14 12 10 8 6 4 2 0 O ~ N ~ O CO I~ 00 O ~ N M ~ ~ O O O O ~ N M In O ti O O r' ~ ~ r' ~ ~- r- ~ N N N N N N N N N Time (min) 3000 2500 2000 ._. N a 1500 N N d a. a 1000 500 0 NB01 Stage 2 -Main Frac NB01 Stage 3 -Main Frac 25 - - _ __ ___ - -- _ __ _ _ -- -_ _ _ .1800 1600 20 - - 1400 ,.. ev a .~ 1200 15 ~ ~ 1000 a L a ~ ~ 800 ~ 10 -_ _ - _ - -- _ -- -- ---- _ ---- -- ---- -- ` --- - a 600 - 400 5 - 200 0 0 O ~ M ~ CO f~ 00 O ~- N ~' ~ CO d0 O O N M to CO I` O O ~- M ~' ~ ~ ~ ~ ~ ~ ~ ~ N N N N N N N M M M M Time (min) • SARAH PAL/N, GOVERNOR 333 W. 7th AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 January 8, 2007 Mr. Robert Gardner Sr. Technical Advisor for Teck Cominco Alaska Incorporated 3105 Lakeshore Dr., Bldg, A, Ste. 101 Anchorage, AK 99517 Subject: Shortfalls in Reporting Practices Related to Exploratory Shale Gas Wells NB-O1 (PTD 205-095) NB-02 (PTD 205-096} NB-03 (PTD 206-090) NB-04 (PTD 206-091) NB-OS (PTD 206-097) Dear Mr. Gardner: The Alaska Oil and Gas Conservation Commission ("Commission"} wishes to bring to your attention that, to date, Teck Cominco Alaska Incorporated ("Teck Cominco") has either failed to comply with Commission reporting requirements or been seriously late in providing reports related to this exploratory shale gas program. 1) The Commission issued a drilling permit for each of the five wells in this project, and each of those permits requires a weekly status report for the well from spud until suspension or plugging and abandonment. These reports were submitted for wells NB-O1 and NB-02 during the 2005 drilling season, but no weekly status reports were submitted for activities during 2006. Please provide the missing weekly reports or a summary of that information to the Commission no later than close of business Friday, February 2, 2007. 2) Records indicate that wells NB-O1 and NB-02 were completed on September 10, 2005. .Commission regulation 20 AAC 25.070(3) requires submittal of a completion report and logs within 30 days of the completion of a well, but Teck Cominco was over 5 months late submitting this information to the Commission. A similar but shorter delay was experienced with well NB-03. 3) It is presumed, but cannot be confirmed due to the lack of weekly status reports, that attempts to produce the NB-O1 and NB-02 wells resumed as planned this ~- T Mr. Robert Gardner January 8, 2007 Page 2 of 2 year. As required by 20 AAC 25.230 the Commission should have received monthly production reports, presuming an attempt was made to produce the well(s), but has not received reports since the September 2005 production was reported. A November 8, 2006, email from you to Mr. Tom Maunder with the Commission indicated that the wells were currently shut-in but did not indicate the status of the wells over the summer months. If there was production from either of these wells, please provide the production reports to the Commission no later than close of business Friday, February 2, 2007. 4) On August 28, 2006, the Commission approved Sundry Application 306-292, allowing perforation and stimulation of additional zones within well NB-Ol . The application indicated that operations were imminent, but the Commission has not received the required Form 10-404 or any other documents to indicate whether or not these operations have occurred. Please provide the Form 10-404 (or a status report if the workover operations were not completed) to the Commission no later than close of business Friday, February Z, 2007. Proper and timely reporting is required by Commission regulations. If reporting practices do not comply, the Commission will consider taking enforcement action in accordance with 20 AAC 25.535. If you have any questions on this matter please contact Mr. Dave Roby of the Commission's staff at (907) 793-1232. Sincerely, ` /fir ~ ~ ,~°`~~''~, '~' r Cathy.~P. Foerster Commissioner ~~i21~~s oil w~~ ~ S~~ DEPT. OF ENVIRONMENTAL CONSERVATION DI'V'ISION OF SPILL PREVENTION AND RESPONSE INDUSTRY PREPAREDNESS PROGRAM EXPLORATION PRODUCTION & REFINERIES ~~~~~- IQs-~~,~ FRANK H. MURKOWSKI, GOVERNOR 555 Cordova Street Anchorage, AK 99501 PHONE: (907) 269-3072 FAX: (907) 269-7687 http:!/www.dec.slate.al~.us. ~r ~~~~ ~~-~~~1 ~ ~-off ~~-~~~ Mr. Robert Gardner 2000 East 88`h Avenue Anchorage, AK 99507 .,~~ ~~ . , >> :_ ~ ~~ November 17, 2006 e ~~~~~~ File No: 305.05 Red Dog Shallow Gas Subject: Exemption from Oil Discharge Prevention and Contingency Plan Requirement for Red Dog Shallow Gas Exploration Drilling Program, DeLong Mountains, Alaska Dear Mr. Gardner: The Alaska Department of Environmental Conservation (ADEC) has received a determination from the Alaska Oil and Gas Conservation Commission (AOGCC) regarding your request for an exemption from the Oii Discharge Prevention and Contingency Pian (ODPCr) and Financial Responsibility (FR) requirements. The exemption was requested for the Red Dog Shallow Gas Exploration Drilling Program ("Red Dog Program") conducted in the DeLong Mountains of northwestern Alaska. AOGCC made its determination based on geologic information submitted by Fairweather and a review of AOGCC well files. The Red Dog Program is lc~eated in certinnc 17 and 18 of T'~ 1 N, ~~~r, uz~z.'..el ~:iver'~'le.ridiar., :: the De.Lor:g Mo~:~r?tains. The program consists of 5 shallow wells (all less than 4,000' below ground level) on NANA Corporation lands approximately 1.5 miles north of the Red Dog Mine. Sixty mineral exploration holes have been drilled into the Kuna formation, the target of the Red Dog Program. Four shallow gas wells have been drilled within the project area. Fairweather has reported that no significant hydrocarbons other than methane were encountered in any of these mineral or gas exploration holes. AOGCC staff concurs that no liquid hydrocarbons or hydrocarbon gases other than methane were encountered based on a careful review of drilling records from the shallow gas exploration holes. On October 6, 2006, AOGCC determined that exploration wells drilled to less than 4,000' depth within the Red Dog Shallow Gas Exploration Drilling Program area are highly unlikely to encounter formations bearing liquid hydrocarbons or hydrocarbon gases other than methane. ~~,~ Printed Mr. Robert Gardner Fairweather November 17, 2006 Based upon AOGCC's evaluation and determination, ADEC hereby finds that a well drilled within the Red Dog Shallow Gas Exploration Drilling Program to depths less than 4,000' will not encounter liquid hydrocarbons and therefore meets the standards for exemption as a natural gas exploration facility under AS 46.04.050(c) and is exempt from ODPCP and FR requirements found in AS 46.040.030 and AS 46.040.040. Be advised that should Fairweather/Teck Cominco penetrate a formation capable of flowing oil to the ground surface during the drilling of this well, operations must immediately be suspended and ADEC must be immediately notified. You must obtain ODPCP and FR approval by ADEC prior to proceeding. This exemption does not relieve Fairweather/Teck Cominco of the responsibility for securing other federal, state or local approvals or permits. You are still required to comply with all other applicable laws. APPEAL: This is a final decision. Aggrieved persons with standing may appeal this decision to the Alaska Superior Court within 30 days as provided by the Alaska Rules of Appellate Procedure. If you have any questions, please contact me at 269-7680. Sincerely, ~~tiU~ Ly is Miner Section Manager cc: Betty Schorr, IPP Manager, ADEC Daniel Seamount, AOGCC Chris Pace, ADEC, Juneau Walter Porter, Northwest Arctic Borough Planning Director r~ ~~ • FRANK H. MURKOWSK/, GOVERNOR 333 W. 7TM AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 R.C. Gardner Sr. Technical Advisor Teck Cominco Alaska Incorporated 3105 Lakeshore Dr. Bldg A, Ste 101 Anchorage, AK 99517 Re: Exploration Wildcat, NB-O1 Sundry Number: 306-292 Dear Mr. Gardner: Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. When providing notice for a representative of the Commission to witness any required test, contact the Commission's petroleum field inspector at (907) 659-3607 (pager). As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. A person may not appeal a Commission decision to Superior Court unless rehearing has been requested. Sincerely, ~~~~ Dan T. Seamount Commissioner DATED this ~ day of August, 2006 Encl. ~bS -U95e E & P SERVICES, LLC August 24, 2006 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 Attention: Tom Maunder, P.E. • ~i~l.sC~~~® AUG 2 5 2006 Alaska ©it & Gas Cons. Commission Anchorage Re: Application for Sundry Approvals: Well No. NB-O1 Workover Dear Mr. Maunder: The above referenced Application for Sundry Approvals is attached in duplicate. ' If you have any questions, please contact the undersigned. Thank you for your consideration of this application. Sincerely, - ~~' R. .Gardner for Teck Cominco Alaska Incorporated Attachments cc: Jerry Booth, Teck Cominco Alaska Incorporated 2000 East 88th Avenue • Anchorage, Alaska 99507 • (907) 258-3446 • (907) 279-5740 STATE OF ALASKA vf' S' ~~ ~ AU G 2 5 2006 '' ALA OIL AND GAS CONSERVATION COMI~,IOt~l~ APPLICATION FOR SUNDRY APPROVALr!~ska Oil & Gas Cons. Commission 20 ,4AC 25.2so Anchorage 1. Type of Request: Abandon ^ Suspend ^ Operational shutdown ^ Perforate Q Waiver ^ Other ^ Alter casing ^ Repair well ^ Plug Perforations ^ Stimulate Q ~ Time Extension ^ Change approved program ^ Pull Tubing ^ Perforate New Pool ^ Re-enter Suspended Well ^ 2. Operator Name: 4. Current Well Class: 5. Permit to Drill Number: Teck Cominco Alaska Incorporated Development ^ Exploratory ^ 205-095 3. Address: Stratigraphic ^ Service ^ 6. API Number: 3105 Lakeshore Dr Bldg A Ste 101 Anch, Ak 99517 50-073-20002-00 ` 7. If perforating, closest approach in pool(s) opened by this operation to nearest 8. Well Name and Number: property line where ownership or landownership changes: 4280 f t ' Spacing Exception Required? Yes ^ No ~ NB-01 9. Properly Designation: 10. KB Elevation (ft): 11. Field/Pool(s): NANA Regional Corporation 807.66 ft Expiorato • 12. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth ND (ft): Effective Depth MD (ft): Effective Depth ND (ft): Plugs (measured): Junk (measured): 2745 2740 2714 2709 2714-2745 None Casing Length Size MD TVD Burs Collapse Structural Conductor 75 13 3/8 75 75 Surface 694 8 5/8 694 693 2950 1370 Intermediate 2728 51/2 2728 2725 4810 4040 Production Liner Perforation Depth MD (ft): Perforation Depth ND (ft): Tubing Size: Tubing Grade: Tubing MD (ft): See Attached See Attached 2 3/8" J-55 2628 Packers and SSSV Type: None Packers and SSSV MD (ft): None 13. Attachments: Description Summary of Proposal Q 14. Well Class after proposed work: Detailed Operations Program ~ BOP Sketch ^ Exploratory ~ Development ^ Service ^ 15. Estimated Date for 27-Aug-06 16. Well Status after proposed work: Commencing Operations: Oil ^ Gas 0 Plugged ^ Abandoned ^ 17. Verbal Approval: Date: WAG ^ GINJ ^ WINJ ^ WDSPL ^ Commission Representative: 18. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Printed Name R.C. Gardner Title Sr. Technical Advisor Signature Phone Date ~~_ COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: .. Plug Integrity ^ BOP Test ^ Mechanical Integrity Test ^ Location Clearance ^ Other: Subsequent Form Required: L ~,~ APPROVED BY ~ ~ J~~ Approved by: COMMISSIONER THE COMMISSION Dat ~ /v~ e: Form 10-403 Revised 06/2006 Submit in Duplicate V C~R1~~~~~ Zg~~ ~ • Teck Cominco Alaska Incorporated Well No. NB-O1 PTD 205-095 Summary of Proposal Well No. NB-O1 was drilled and completed in 2005 as a shale gas exploration well. Limited dewatering and production testing was carried out in late summer 2005, but was terminated by the on set of freezing conditions. The well was freeze protected and shut in for the winter. Test results from 2005 were inconclusive. Subsequent detailed log analyses have identified other zones of interest in the well, in addition to those perforated and fraced in 2005. This proposal provides for additional perforations to pick up intervals that are open in Well No, NB-02, and adds perforations in zones that were previously perforated (see attached wellbore diagram). Three stages of hydraulic fracturing are proposed that include some zones that sanded-out early in year 2005 frac work, plus new zones. A workover procedure is attached. Other than the addition of perforations, this workover does not change wellbore geometry. Teck-Cominco DESCRIPT DEPTH CONDUCTOR _ 13 3/8", # @ 285' CMT routed Calc 5.5" CMT CSG SHOE hole 5/8", 24# ~ 700' 1z 1~ CMT thix IV. 6 jap 1620'-1$40' !te 1660'-1900' 360 ~ III. 2o7o'-zoao' ate 2110'-2120' s jsp 2170'-2180' 2200'-2210' 2250'-2270' 720 It, II6 igK 2380'-2400' eta 2410'-2450' 3fin Stage I. Kivalina jgK erforate 2sao'-2sso' 120 CSG SHOE 5.5", 15.5# @ 2675' hole K-55 CMT pozmix 7 7r NANA Regions{ Corporation WELL NUMBER NB-01 LEASE NAME RED DOG MINE LEASE # , DISTRICT NANA Reg Corp. QUAD S18 - T31 N - R 18W KRM DATE 8/23/2006 COUNTY DeLong Mtns API # 50-073-20002-00 TARGET KIVALINA ELEVATION 805 ft STATE ALASKA Ikalukrek Kayak $-05 COMPLETION Sta a Interval (ft Perfs / # shots Pbd Rate Pmax / Pavg Pad% / Vol Sand Max Conc ISIP I, 2640'-2860' 6 jspf / 120 shots 2332 15 2681 / 2600 30% / 329 2,689 2.5 2060 net design 18,270 2p' i bpm si bbls Ibs p psi II. zssa-2400' 6 jspf / 360 shots 3225 24 2900 /2600 25% 1394 9,519 2 0 net 2410'-2450' design 19,110 60' si b m si bbls Ibs p si 2o7a-2oso' III. 211o'-a12o' 6 jspf / 360 shots 2772 24 1749 / 1650 30% / 575 22,200 2.5 1400 z17a-21sa z2aa'-2z1o' net 2250'-2270' design 22,470 60' si b m si bbls Ibs si IV. lsao'-1s4a 6 jspf /360 shots 3007 24 2660 / 2100 16% / 932 35,333 3 2170 net lsso'-lsocr design 36,330 60' psi bpm psi bbls Ibs ppg psi TOTALS 200' 1200 shots 2230 bbls 69,741 # 8-06 COMPLETION 2380:uoo' a V. 2A10:24b0' 6 jspf / 360 shots neHa 10-15 30% / 450 0 4 net 60' z51 a - 2530' design 40,000 las 60 2550'-2570' 25so'-2810' 4 jspf / 126 shots si b m si bbls Ibs i za7a' - aoso' VI. 213x' - 2156' 2 jspf / 164 shots 10-15 25% / 400 0 4 0170 - 21sa net 80' zzao' - 2220' design 40,000 plus P0~ zsso' • z2~a 929 shots old ~e-fs psi bpm psi bbls Ibs ppg psi VII. 1640' - 1670' Z jspf / 102 shots 25% /400 net 50' 1775' - 1795' 40,000 psi bpm psi bbls Ibs ppg psi TOTALS 120,000 100' shots Ibs brm ho-e HOLE VOLUME ID bbls / ft cu ft / ft 2 7/8" 6.5 # 2.441 0.00579 0.03250 2.875"x5" Annulus 0.0158 0.08856 51/2" 15.5 # 4.95 in. 0.0238 0.13364 p$ C: Teck Cominco NANA Regional Corporation WELL NUMBER NB-01 LEASE NAME RED DOG MINE LEASE # DISTRICT NANA Reg Corp. QUAD S18 - T31 N - R 18W KRM PTD No. 205-095 50-073-20002-00 DATE 8/17/2006 COUNTY DeLong Mtns API # TARGET KIVALINA ELEVATION 805 ft STATE ALASKA ~~ Ikalukrok, Kayak Mat'Is needed Step WORKOVER PROCEDURE 2,700 ft 2 7/8" 1 MIRUSU. TOOH w/ 3/4-inch rods, pump, & 2 3/8-inch tubing. Lay down, move off location. 2 7/8" x 5.5" packer RU Weatherford wireline, make au a rin run to bottom. Pick u CCL & erforatin uns loaded a# 4 's f. 2 RIH & perforate 2590'-2610', 2550'- 2570', & 2510' - 2530'. Pick u 2 718-inch work strin and 5 1/2-inch kr w/ 10' u 't. TIH and set kr at 2350'. TAKE CARE RUNNING & SETTING '""` STG V 3 Frac do tbg w/ 30# linear gel from 1-4 ppg sand concentra#ion at 10-15 bpm with 40M Ibs 2U/40 sand and 450 bbls gel. Flow hack well an 1/2" choke to 100 bbl tank. NOTE: Frac to include new erfs lus old erfs at 2380'- 2400' & 2410`- 2450' 4 RU wireline unit, RIH w/ composite bridge plug (CBP) and set at 2340'. R1H w/ CCL & erforatin uns loaded at 2 's f and shoot 2200'- 2220', 2170'- 2190, 2136'- 2156', and 2070'- 2090'. 5 Pick up 5 1/2-in lock-set pkr w/ 10' pup on bottom and TIH and set at 2,040 ft. STG VI RU Universal and pump 40,000# 20/40 Ottawa sand at 10 bpm from 1-4 ppg. Use 30 #HPG system, brkr rate=pump time + 30 m. Flow back well on 1/2" choke to 100 bbl tank. NOTE: Frac to include new erfs lus old erfs at 2250' - 2270'. s RU Weatherford, R1H with CBP and set at 2,000 ft. Pick u CCL & erf uns correlate #o CBL to and erforate 1,775 - 1,795 ft. and 1,640 - 1,670 ft at 2 's f. 7 Pick up 5112-in lack-se# pkr and TIH to 1,610 ft. Set packer per instructions. STG VII RU to frac and pump 40,000# 20/40 Ottawa sand at 10-15 bpm from 1-4 ppg. Use 30 #HPG system, brkr rate=pump time + 30 m. Flow back well on 1/2" choke to 100 bbl tank. NOTE: Take care when running and setting alock-set packer. The dogs can catch going in the hole and set the slips if handled roughly. During setting procedure take care not to set dawn greater than the 10,000 /b string weight saecified. Unlike a tension pkr the slips cannot be released by dropping weight on this packer. Workover Procedure n U • a~~ ~~~r .J ~ i~ ~ i t ~ ~ 'I I ~ i ~ t ;~ r 3 ~ ~ ~ ~ ~ ~ ~ ~ i ~ 1 ~ ~ . s, :~ ~ ~. ~ .~.is ~A-7i~[>• O~ ~ ~17 C01~TSF.RQATIOI~T CO1rIIrIISSIOI~T R.C. Gardner Sr. Technical Advisor Teck Cominco Alaska Incorporated 3105 Lakeshore Dr., Bldg A Anchorage, AK 99517 Re: Exploratory, Exploratory, NB-Ol Sundry Number: 306-174 Dear Mr. Gardner: i f FRANK H. MURKOWSKI, GOVERNOR ~` ~j 333 W. T" AVENUE, SUITE 100 ANCHORAGE, ALASKA 995013539 PHONE (907) 279-1433 FAX (907) 276-7542 Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. When providing notice for a representative of the Commission to witness any required test, contact the Commission's petroleum field inspector at (907) 659-3607 (pager). As provided in AS 31.05.080, within 20 days after written notice of this decision; or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. A person may not appeal a Commission decision to Superior Court unless rehearing has been requested. Sincerely, /~~ Cathy P. Foerster Commissioner --~~~" DATED thisL~° day of May, 2006 Encl. X05=0~5' ~ • fi ~flIR~ERiNER May 11, 2006 Alaska Oil and Gas Conservation Commission 333 T1' Avenue, Suite 100 Anchorage, AK 99501 Attention: Tom Maunder, P.E. Re: Teck Cominco Alaska Incorporated Wells Nos. NB-Ol and NB-02 Applications for Sundry Approvals to Resume Operations Dear Mr. Maunder: Please find attached two (2) copies of the above referenced Applications for Sundry Approvals, covering plans to resume dewatering and testing operations. If you have any questions, please contact the undersigned at your convenience. Thank you for your consideration of these applications. Sincerely, ~~. .__ . C. Gardner Sr. Technical Advisor Fairweather E & P Services, Inc. On behalf of Teck Cominco Alaska Incorporated Attachments Cc: Jerry Booth, Teck Cominco Alaska Incorporated 2000 East 88th Avenue • Anchorage, Alaska 99507 • (907) 258-3446 • FAX (907) 279-5740 650 North Sam Houston Parkway East, Suite 505 • Houston, Texas 77060 • (281} 445-5711 • FAX (281} 445-3388 STATE OF ALASKA ~~~ "- ~ ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS ~n aAC ~s ~Rn 1. Type of Request: Abandon Suspend Operational shutdown Perforate Waiver Other Altercasing^ Repair well ^ Plug Pertorations ^ Stimulate ^ Time Extension ^ Resume Change approved program ^ Pull Tubing^ Perforate New Pool ^ Re-enter Suspended Well ^ Operations 2. Operator Name: 4. Current Well Class: 5. Permit to Drill Number: Teck Cominco Alaska Incor orated Development ^ Exploratory ~ 205-095 3. Address: 3105 Lakeshor. e Dr . , Bldg A Stratigraphic ^ Service ^ 6. API Number: Anchorage, AK-99517 50-073-20002-00 7. KB Elevation (ft): 9. Well Name and Number: 807.66 NB-O1 8. Property Designation: 10. Field/Pools(s): NANA Re Tonal Coro ration ~ Ex lorator 11. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD (ft): Effective Depth TVD (ft): Plugs (measured): Junk (measured): 2745 2740 2714 2709 2714-2745 None Casing Length Size MD TVD Burst Collapse Structural Conductor 75 13 3/8 75 75 Surtace 694 8 5 8 694 694 2950 1370 Intermediate Production 2728 5 1/2 2728 2725 4810 4040 Liner Pertoration Depth MD (ft): Pertoration Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): See Attached See Attached 2 3/8" 4.7~~, J-55 628 Packers and SSSV Type: Packers and SSSV MD (ft): .None None 12. Attachments: Description Summary of Proposal 13. Well Class after proposed work: Detailed Operations Program ^ BOP Sketch ^ Exploratory ~ Development ^ Service ^ 14. Estimated Date for 15. Well Status after proposed work: Commencing Operations: 6/12/2006 Oil ^ Gas ® Plugged ^ Abandoned ^ 16. Verbal Approval: Date: WAG ^ GINJ ^ WINJ ^ WDSPL ^ Commission Representative: 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact R. C . Gardner Printed Name R.C. rdner 258-3446 Title Sr. Technical Advisor Signature Phone Date Ma 11, 2006 COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: ~ 1 L Plug Integrity ^ BOP Test ^ Mechanical Integrity Test ^ Location Clearance ^ Other: ~ ~F~ ~A~ ~ 7~~~ t~~ Subsequent Form Required: 110 ~MG~` P K~e.~Oti- ~ CAS PSG APPROVED BY Approved by: ~ COMMISSIONER THE COMMISSION Date: S~ ~~-~ Form 1003 Revised 07/2005 f 1 (1 ~ /^1 ~ ~ ~ ~ Subm' in Duplicate TECK COMINCO ALASKA INCORPORATED WELL No. NB-Ol PTD: 205-095 Attachment to Form 10-403, dated May 11, 2006 PERFORATION DEPTHS This well was fraced in 4 stages, with the perforations grouped as follows: Stage I: 2640' - 2660'; 6 jspf Stage II: 2380' - 2400', and 2410' - 2450'; 6 jspf Stage III: 2070' - 2080', 2110' - 2120', 2170' - 2180' 2200' - 2210', and 2250' - 2270'; 2 jspf Stage IV: 1820' -1840', and 1860' -1900'; 6 jspf • • TECK COMINCO ALASKA INCORPORATED WELL No. NB-O1 PTD: 205-095 Attachment to Form 10-403, dated May 11, 2006 Proposal to Resume Operations This Application for Sundry Approvals covering the resumption of operations is required by the conditions of approval to shut-in the well in October 2005 (Sundry Number 305- 290). De-watering operations were suspended at Well No. NB-O1 on October 5, 2005 due to the onset of freezing temperatures. The well was freeze protected, and shut-in for the winter season. This proposal describes plans to resume dewatering and production testing operations on or about June 12, 2006. The work includes re-activation of surface facilities, re-running the pump and rods, and bringing the well back on line. Gas and water production, and annulus pressure will be continuously recorded, and reported to the AOGCC monthly. Absent mechanical problems it is planned that the well will kept pumped off, and the flow test continued for most of the summer, at a minimum. Fluid levels will be checked at frequent intervals. E & P SERVICES, INC. May 1, 2006 ~~~ - ~9~° sW _~ 3 ~ ~'~° ,~, ~~~~ Alaska Oil and Gas Conservation Commission 333 West 7~' Avenue, Suite 100 Anchorage, Alaska 99501 Attention: Steve Davies, Petroleum Geologist Re: Status Report, Teck Cominco Alaska Incorporated Period of September 25-October 5, 2005, and Form 10-405 for September, 2005 Wells Nos. NB-Ol and NB-02. Dear Mr. Davies: Per your recent request, please find the above referenced reports. The production report covers all of the gas and water production from both wells during the brief late-summer, 2005 test period. I have requested a clean as-built survey plat for the Teck Cominco GIS Department. I will send it to you under separate cover as soon as I receive it. Sincerel ,r ~'~ _ . R. C. Gardner Fairweather E & P Services, Inc. For Teck Cominco Alaska Incorporated Attachment Cc: Jerry Booth, Teck Cominco 2000 East 88th Avenue • Anchorage, Alaska 99507 • (907) 258-3446 • FAX (907) 279-5740 650 North Sam Houston Parkway East, Suite 505 • Houston, Texas 77060 • (281) 445-5711 • FAX (281) 445-3388 • Weekly Status Report Teck Cominco Alaska Incorporated Red Dog Shallow Gas Exploration Project Wells Nos. NB-01 and NB-02 Period of September 25-October 5, 2005 Well No. NB-O1 PTD 205-095 Report Period 0001 hrs September 25 to 2400 hrs October 5, 2005 Continued to de-water well and assess gas production potential. Pumped well off on September 26~'. Onset of freezing temperatures forced suspension of testing and de- watering operations. Freeze-protected well on September 30, 2005. Drained and winterized surface facilities. All wellsite operations suspended for winter on October 5, 2005. Final weekly report for the season. Test results to date to be submitted with Completion Report. Well No. NB-02 PTD ZOS-096 Report Period 0001 hrs September 25 to 2400 hrs October 5, 2005 Continued to attempt to de-water well. Water being produced at up to 149% of pump capacity due to gas influx. Ga.s bubbles observed in produced water tank. Unable to lower fluid level below approximately 400 ft. Insufficient time remaining before freeze-up to change pump. Onset of freezing temperatures forced suspension of testing and de-watering operations. Freeze protected well on September 30, 2005. Drained and winterized surface facilities. All wellsite operations suspended for winter on October 5, 2005. Final report for the season. Report S mitt y: ~~ea- R. C. Gardner Fairweather E & P Services, Inc. STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION MONTHLY PRODUCTION REPORT 20 AAC 25.230 Name of Operator: Field and Pool: Month and Year: Teck Cominco Alaska Incorporated Exploratory Sep-05 1. Well No. 2. APt No. 3. Type 4. Field & 5. Method 6. Days in Oper. 7. Avg. FTP DAILY AVG. PRODUCTION TOTAL MONTHLY PRODUCTION 50-XXX-XXX)CX-XX-XX (see Pool Code (see psig (see 8. OIL 9. WATER 10. GAS 11. OIL 12. WATER 13. GAS instruct.) instruct.) instruct.) (BBL) (BBL) (MCF) (BBL) (BBL) (MCF) NB-01 50-073-20002-00 2 3 17 28 0 47.64 2 0 762.2 27.3 NB-02 50-073-20003-00 2? 3 17 0 0 120.76 0 0 2053 0 Note: The gas and water prod uction sho wn above oc curred during the de-watering ph ase of testing. Th e gas was vent ed. These production figures refle ct the only production f rom these we lls before they were freeze protected and shut-in for t he 2005-2006 winter seaso n. I hereby certify that the foregoing is true and correct to the best of my knowledge. 14. Printed Name: R.C. Gardner Title: Sr. Tech Adv for Teck Cominco Alaska Inc .~ Signature: Date: 1-Mav-06 TOTAL 0 2815.2 27.3 v v y Form 10-405 Rev. 04/2006 INSTRUCTIONS ON REVERSE SIDE Submit in Duplicate E & P SERVICES, INC. Apri126, 2006 Alaska Oil and Gas Conservation Commission 333 7th Avenue, Suite 100 Anchorage, AK 99501 Attention: Mr. Tom Maunder, P.E. RE: Well .Completion Reports (Form 10-407) for Teck Cominco Alaska Incorporated Wells Nos. NB-O1 and NB-02 Dear Mr. Maunder: Please find enclosed the long awaited completion reports and logs for the above referenced wells. It has taken longer than anticipated to get the data products assembled, and I regret any inconvenience this has caused. Thank you for your patience. Sincere , ~_ R. .Gardner Sr. Technical Advisor for Teck Cominco Alaska Incorporated Enclosures 2000 East 88th Avenue • Anchorage, Alaska 99507 • (907) 258-3446 • FAX (907) 279-5740 650 North Sam Houston Parkway East, Suite 505 • Houston, Texas 77060 • (281) 445-5711 • FAX (281) 445-3388 ~'~ STATE OF ALASKA ~~~ _ ~~~ ALASK~L AND GAS CONSERVATION COMMIS~I WELL COMPLETION OR RECOMPLETION REPORT AND LOG 1a. Well Status: Oil Gas Q,•,~~,, P/lugged ^ Abandoned ^ Suspended ^ WAG ~•-. ~ (~ ~LI+Y zoAac2s.ios zoAnczs.iio GINJ ^ WINJ ^ WDSPL^ No. of Completions Other SI ~ 1 b. Well Class: Development ^ ExploratoryQ ervice ^ Stratigraphic Test^ 2. Operator Name: TeckCominco Alaska Incorporated 5. Date Comp., Sus or Comp q ~o ~ vS Aband.: ~ S•I 10/05/05 12. Permit to Drill Number: 205-095 3. Address: 3105 Lakeshore Dr., Bldg 'A', Anchorage, AK 99517 6. Date Spudded: July 17, 2005 ~ 13. API Number: 50-073-20002-00 4a. Location of Well (Governmental Section): Surface: 1098.63ftFEL3662.58ttFSL,SEC. 18 T.31 N., R.18W, KRM 7. Date TD Reached: Aug. 02, 2005 14. Well Name and Number: NB-01 - Top of Productive Horizon: As Above 8. KB Elevation (ft): 807.66ft 15. Field/Pool(s): Exploratory Total Depth: As Above 9. Plug Back Depth(MD+TVD): 2714 MD 2709 TVD 4b. Location of Well (State Base Plane Coordinates): Surface: x- 582251.37 ' y- 5,150,876.38 Zone- 7 10. Total Depth (MD +TVD): < 2745 MD 2740 TVD 16. Property Designation: NANA Regional Corporation TPI: x- As Above y- As Above Total Depth: x- As Above y- As Above Zone- Zone- 11. Depth Where SSSV Set: N/A 17. Land Use Permit: NANA 18. Directional Survey: Yes ^ No ~ 19. Water Depth, if Offshore: N/A feet MSL 20. Thickne s r ~~ _, _„ ,..~,~ ; ~ 640ft ~ --. ~,,,~ 21. Logs Run: Triple Combo, cased hole neutron, caliper, CBL =-4 ~'~ ~ ,,,, 22. CASING, LINER AND CEMENTING RECORD CASING WT. PER GRADE SETTING DEPTH MD SETTING D EPTH TVD HOLE SIZE CEMENTING`R~CpRD ,~ , FT. TOP BOTTOM TOP BOTTOM .. PULLED 13 3/8 54.5 K-55 Surface 75' Surface 75' 18" 25 SXS Permafrost None 8 5/8 24 K-55 Surface 694 Surface 693 12 1/4" 615 SXS Permafrost None 5 1/2 15.5 J-55 Surface 2728 Surface 2725 7 7/8" 146 SXS Permafrost + None 237 SXS type 1. 23. Perforations open to Production (MD +TVD of Top and Bottom 24. TUBING RECORD Interval, Size and Number; if none, state "none"): SIZE DEPTH SET (MD) PACKER SET (MD) Stage I: 2640'-2660', 6jspf 2 3/8" 2628' None Stage II: 2380'-2400', and 2410'-2450', 6jspf ' ' ' ' ' ' , 2110 Stage III: 2070 -2080 -2120 , 2170 -2180 , 2200'-2210' 2250'-2270' 2 js f 25. ACID, FRACTURE, CEMENT SQUEEZE, ETC. , p , Stage IV: 1820'-1840', 1860'-1900', 6jspf DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED See previously submitted Post Treatment Report,dated Aug, 29, 2005 26. PRODUCTION TEST Date First Production: See attached production summary Method of Operation (Flowing, gas lift, etc.): Rod um for dewaterin as roduced from annulus Date of Test: 9/11/06-9/28/06 Hours Tested: 408 Production for Test Period Oil-Bbl: 0 Gas-MCF: 27.3 Water-Bbl: 762.2 Choke Size: 1/2" Gas-Oil Ratio: N/A Flow Tubing Press. urp Casing Press: 12-120 psi Calculated 24-Hour Rate ~ Oil-Bbl: 0 Gas-MCF: 2 Water-Bbl: Avg. 47.6 bwpd Oil Gravity -API (corr): N/A 27. CORE DATA Brief description of lithology, porosity, fractures, apparent dips and presence of oil, gas or water (attach separate sheet, if necessary). Submit core chips; if none, state "none". .w.,__....., No cores were taken in this well. Lithologic descriptions of drill cuttings are attached. S' ~~~ ~i~~` ~ 20~rf - t r~ 4. Form 10-407 Revised 12/2003 CONTINUED ON REVERSE ~~iJt S• ~S•~ f/~~i'o6 d GEOLOGIC MARKET 29. ORMATION TESTS ! NAME TVD Include and briefly su ize test results. List intervals tested, and attach Kivalina-Kayak facies Surface to TD detailed supporting data as necessary. If no tests were conducted, state "None". No drillstem tests were conducted on this well. Notes to Complete Report, Production Test Summary, Production Test Data Gas analysis, As-built survey, well-bore diagram, Description of cuttings samples, Logs. 30. List of Attachments: See Above 31. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: (907) 258-3446 Printed Name: R.C. Gardner Title: Sr. Technical Advisor for Teck Cominco Alaska Incorporated Signature: ~--- Phone: (907)258-3446 Date: /~~,f'~Qj INSTRUCTIONS General: This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Alaska. Submit a well schematic diagram with each 10-407 well completion report and 10-404 well sundry report when the downhole well design is changed. Item 1a: Classification of Service wells: Gas Injection, Water Injection, Water-Alternating-Gas Injection, Salt Water Disposal, Water Supply for / njection, 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 } ~ • Teck Cominco Alaska Incorporated Well No. NB-Ol Notes to Well Completion Report Weekly operations report were filed with the AOGCC covering the period between the spud date and suspension of testing (July -September, 2005). It is assumed that these reports currently on file with the AOGCC cover the requirement for a summary of daily well operations as per 20AAC 25.070(3). Well NB-O1 was drilled with air. No mud log was made, however a lithologic description of cuttings samples is submitted herewith. No conventional or side wall cores were taken. The entire well bore is within the Kivalina limestone/shale sequence, and no significant geologic markers are noted. Cuttings samples have been submitted as per 20AAC 25.071 (b) (2). An analysis of formation gas, and a production test summary are submitted as attachments to Form 10-407. • • Teck Cominco Alaska Incorporated Well No. NB-01 Production Test Summary Well No. NB-OI was the first of two wells drilled in the North Basin area by Teck Cominco Alaska Incorporated in 2005. The well was drilled to test the potential for natural gas production from the organic-rich shales of the Kivalina formation. This formation is an unconventional gas resource requiring extensive fracturing of selected intervals, followed by a sustained period of de-watering, in order to allow gas to de-sorb from the shales. Until these wells were drilled, there had been no attempt to test the productivity of this potential resource. Rod pumping was used to de-water the well. Water was produced up the tubing, allowing limited production of gas from the tubing-casing annulus (see wellbore schematic). NB-01 responded quickly to the initiation of rod pumping. Initial gas production was estimated to be approximately 3 mcfd (not able to gauge due to equipment problems) with 25 psi on the tubing- casing annulus. The annular gas pressure increased to 120 psi within 24 hours after pumping started, and then gradually declined throughout the remainder of the test period. Initial water production was 108 bwpd then dropped to 91 bwpd during the next 24 hours. Gas locking of the rod pump was a recurring problem during the test period. NB-Olproduced intermittently for a total of 16 days, with downtime recorded for gas locking of the pump and necessary mechanical adjustments. The pumping unit was re-set on timbers several times during the test period due to the continued subsidence of poorly consolidated fill in front of the pumping unit. Production dropped to 1+mcfd and 56 bwpd midway through the test period which was related to gas locking and pump mechanical problems. Anew rod pump run in the well on 9/21/OS pumped the well off. The fluid level was at 2,465 feet on 9/26/05 and at 2,469 feet on 9/27/05. Production test data is attached. Production testing was necessarily hurried due to the seasonal approach of freezing conditions, and a sustained period of de-watering was not achieved before the well had to be freeze protected and shut-in for the winter. While inconclusive, test results were deemed to be encouraging. Production testing ~ is scheduled to be resumed in June of 2006. • • Teck Cominco Alaska Incorporated Well No. NB-O1 Production Test Data Date BWPD Gas mcfd Annular Pressure psi Separator Pressure psi Fluid Level Notes 9/10/05 9/11/05 81 25 40 9/12/05 108 120 40 9/13/05 91.2 2.2 50 40 9/14/05 56 2.8 48 40 9/15/05 29 1.6 30 9/16/05 68 2.3 25 9/17/05 70 2.3 25 34 9/18/05 56 1.1 24 50 9/19/05 21 1.1 13 20 9/20/05 38 15 9/21/05 Pump gas locked, installed new pump 9/22/05 41 1.9 12 9/23/05 20 2.0 13 9/24/05 2.0 Pump gas locked 9/25/05 20 2.0 13 9/26/05 24 2.0 13 2465 9/27/05 23 2.0 12 2469 9/28/05 16 2.0 12 Totals 762.2 27.3 09~~22~2005 09:6 907283;65 INDUSTRIAL INSTRUMEN PAGE 02/3 SG&G ~ha.zz~.ler Engineering Model 292 BTU ,A,z~aly~er Test time: Sept21 05 14:35 Calibration #: 2 Test #:2 DoCdtiori Na. :921G5 Standard/Dry ,AnaZys~,s SaturatedlWet Ttinalysis Maley BTU* R.Den.* GPfi~** Mole~r $TU* ~,Den.* Metk~.ane 98.292 995.07 0.5445 -- 96.581, 977.75 0.5350 FtYlane 0 . G65 1.1.5 G .0007 0.0174 0.064 1..13 0.0007 c c6+ ~ o.o~.~ o.s7 0.000.E 0.0073 0.017 0.~~ a.oo05 ~oi.sture 0.oati o.00 0.0000 -- x..740 0.8s a.0108 Nitrogen 1.626 0.00 0.{3157 -- 1..598 O.OQ 0.0155 moral 1D0.00 997.1 0.5614 0,0247 100.GG 9aa.6 0.5625 * Uncorreet~:c~ fox C~rnpressibility at 60.0E & 14.73t3PS21~. **: Liquid Volume reported at 60.OF. Standard/Ary A~,alysis Satux'ated/Wet .~rtalysis Molar Gass - 16.26n 16.29G Relative Density W {?.5623 0.5G34 Compressibility Factor w 0.9987 0.9979 Heating Value = 23217. lBtu/Ib 22791.. Btu/].b ~Ieating Value = 999.fl Htu/CF 982.6 Btu/C~' Absolute Gas Density 43.0301 ~.bm/1000CF 43.1154 l.bm/1.OGOCF Wobbe znde~s = 1,310.44 Uz~normalized Total. ; 97.90? Last Calibrated with Calgas of 1,057.2 Btu/CF Jan.14 05 1.2:07 C6+ Last Update: GPA 2251-90. C6+ BTU/CF' 5065.8, C6~ fibril/Gal 5.64250, a nd C6+ Mcal. Wt. 92.00. nor ~+~ ~.,,~, sic-, r F1-1 g-'4Y [-;fl-N hla'~iE: Ccx~cdtr~a8r~^ ~Ygrxvi7 ~v~+Na~s~ "~~zft~ ~P~fM=!, 7x;~t 7 S~ai~ if1 Fed! saa° ti2~ 2400 `~~ .._ '... JR ~ted ~7at~ fi~ine t~raw~r, ay ~ aa~ art ~~nr at~,.~wwa~r rev ~~au~ Gas ~x~lvrati~n Pro~eet ~,~~t~„,~~ 1,~,f p~ a ~._. _.._~_._... Menc ~Wlpr,+nt~iaar a• r.~'., ~ +~. ~iya.^~N~~ { 't f 3 ~N.IYVGY Reversion 0 S+~iB: i" = 121JI~' Avpraua,~ a5" ',r.~~ ,~~ c TECK COMINCO ALASKA INCORPORATED WELL No: NB-01 WELL-BORE DIAGRAM PTD: 205-095 API No: 50-073-20002-00 SPUD DATE: JULY 17, 2005 y~~ '~ ,~ «. ~~ ,. r,.° 133/8" Conductor ~ 75' MD 8 5/8" 24# ~ 694' MD Stage IV :1820' -1900' 6 jspf. „~.~ .. ~- ,,~ ;~; ik~ .1;~ '+.. " ~ . ..~A .F~ „b • Stage III :2070' - 2270' 2 jspf. 2 3/8" Tubing ~ 2628' MD „r' K',+f, Stage II :2380' - 2450' 8 jspf. stage 1:2640' - 2880' 8 jspf. 5'/s" 15.5# C~ 2728' MD i TD ~ 2745' MD PBTD :2714' ~>r~ Cement «i' ~ • TECK COMINCO ALASKA INCORPORATED DESCRIPTION OF CUTTINGS SAMPLES WELL No. NB-O1 PTD No. 205-095 ~ • WELL:NBO1 Elev: 795' T DEPTH DESCRIPTION ~ COMMENT 86-106 Sh., Drk Gry, Blk, Frm, Fiss, Smth,Tr Wh Qtz Min vein, Sl Calc 106-126 Sh, drk gry, Blk, AA Calc,Tr Chert 126-146 Sh., Iyrk Gry, Blk, Frm, Fiss, Smth,Tr Wh Qtz vein fill, Incr Calc 146-166 Sh, Drk Gry, AA, Sl Calc 166-186 Sh, AA, Incr Wh Qtz Vein Fill, Sl Calc 186-206 Sh, Drk Gry, Oc M Gry, Sl Calc, Fiss, Smth, Frm, Wh Qtz Vein fill 206-226 Sh, Drk Gry, Blk, Fiss, Frm, Occ Blky, Sl Calc, Tr Wh Qtz 226-243 Sh, Drk Gry, Blk, Fiss, V. Frm, Smth, Occ Sl Slty, Tr Wh Qtz Abt Cavings 243-263 Sh Drk Gry Blk Fiss Smth Frm-V Frm, 1-3% Wh Qtz Tr Dissem Pyr, ~ ~ ' Abt Cavings 263-283 Sh, Drk Gry, Blk, Fiss, Smth, Sft-Frm, Sl Calc 1-3%Wh Qtz Flt Gouge? 283-303 Sh, M Gry, D Gry, Smth, Fiss, Calc 1-3% Wh Qtz-Sl Calc, 5-10% Brn Qtz? Tr Gluc Sltst, Tr Opal? Cem Cond, Contam? 303-323 Sh, Med Gry, D Gry, Smth, Fiss,' Sl Blky, Calc, Trmica, Tr Dis Pyr, 1-3% Wh Qtz, Slty? 323-343 Sh, Blk, V Drk Gry, Fiss-Blky, Smth, Frm, Incr Blk Org ,Dissem Pyr, 1-2% Wh Qtz 343-363 Sh, Blk, Drk Gry, Blky, Fiss, Frm, Calc, Tr Wh Qtz, Clac 363-383 MISSING SAMPLE 383-403 Sh, Blk, V drk Gry, Carb, Fiss, Frm-V Frm, Occ Blky, Smth, S Calc, Dissem Pyr, 1-3% Wh Qtz, Slty? • WELL:NBO1 Elev: 795' T Dpth 403-707 r~ DEPTH DESCRIl'TION COMMENT 403-423 Sh, Blk, V Drk Gry, Calc, Carb, Tr LS, Gry, Sl Arg, Silic, Tr Wh- L Gry Qtz, Sl Calc? 423-441 Sh, Blk, Drk Gry, Fiss, Frm, Sm, Dissem Pyr, Tr Wh Qtz, Sl Calc 441-461 Sh, Blk, Drk Gry, AA, Sl Calc, Fiss, 5m Abt Cavings 461-480 Sh, Blk, V drk Gry, Inc Calc, Tr Wh Qtz, Dissem Pyr,Sm, Fiss Less Cavings 480-500 Sh, Drk Gry, Occ Blk, Fiss, Smth, Calc, Tr Wh Qtz Few Cavings 500-520 Sh, Blk, Drk Gry, Occ Blky, Fiss, Frm , Some Mod Frm, Sm Calc, Tr Wh Qtz, 520-540 Sh, Blk, D gry, Calc, Sm, Fiss, Frm-VFrm, 1-2% Wh Qtz 540-560 Sh, D Gry, Blk, Fiss, Sm, Frm, Occ Lam. Gry and Blk, Calc, 4-8% Wh Qtz 560-580 Sh, D gry, Gry, Occ Blk, Fiss, Sm, Dissem Pyr, Tr Wh Qtz 580-600 AA 600-619 Sh, D Gry, Blk, Fiss, Sm, Calc, Tr Wh Qtz 619-639 Sh, D Gry, AA, Occ D Gry LS, Tr Wh Qtz 639-658 Sh, Drk Gry, Blk, Occ D Gry LS, Dissem Pyr, Tr Wh Qtz 658-678 AA Some Cavings 678-698 AA No LS, Incr Wh Qtz 1-3% 698-707 Sh, Drk Gry, Occ Blk, Occ Lamm Gry and Blk, Ca1c, Fiss, Frm, Tr Wh Qtz • • WELL: NBO1 DEPTH DESCRIl'TION COMMENT 707-716 Sh, DGry,Fiss,Foll?, Occ Lamm Dgry-Gry Sh calc. Tr Wh Qtz Vein fill 716-735 Sh, Blk, VDrk Gry, Calc, Smth,Frm, Tr dissem Pyr, 3-5% Wh QTz Vein fill. 735-755 Sh, AA, 1-3% Wh Qtz Vein fill 755-775 Sh, AA, V calc, 3-5% Wh Qtz Vein fill, Calc? 775-795 Sh, Blk, V Dk Gry, Pyr, Smth, Flt Gouge Clay?, Fiss, Tr Wh Qtz Some Vein fill. Cavings 795-814 Sh, Blk, V Drk Gry, Tr Lamm Siltst, Gry,Drk Gry, Calc, 3% Wh Abt Cavings Qtz Vein Fill Poss FLT? 814-834 ALMOST ALL CAVINGS, AA, Slickensides, Sl Calc. `~"L Cavings 834-853 Sh, Blk, V Drk Gry, Sl calc, Smth, Fiss, Blky, V Frm, Tr Vfg,Mg SS„ Lamm, Calc Cem 853-873 Sh, V Drk Gry, Blk, Blky-Fiss, Gry to Brn Chrt, Occ Lamm S1tSt, Vfg SS, Qtz Cem„ Sl calc 973-893 Sh, Blk, V Drk Gry, S Slty, Sl Calc, Blky, Dissem Pyr, Tr Mica * Silty Zones *Look 893-914 Sh, D Gry-Med Gry, Slty, Blky, Non Calc, Occ Chrt, S talc For T Kick 913-923 Sh, AA, Occ Chert 923-952 Sh MGry, V Dk Gry, Fiss-Blky, Smth-Sl Slty, Abt Gry-Brn Chrt, * Tr Vf Slt, W Ind, Non Calc. 952-971 Sh, Blk, S. S1ty,Blky-Fiss,VFrm,NonCalc,Tr Mica,Dissem Pyr,Tr * Gry-Wh Qtz 971-991 Pyr,ChalcPyr?, 80-90%, Void Fill? Comcr?, 10-20% Sh, AA Cavings 1" size 991-1011 ABT .25"-1" Cavings, Rdd, Non Calc CAVINGS ~ • Well: NB-O1 DEPTH DESCRIl'TION COMMENT 1011-1031 Sh, Blk, DCrry, Occ Gry, Smth,Blky-Fiss,Vfrm, NonCalc, Tr Calcite, Tr Dissem Pyr 1031-1051 Sh, Blk, Occ DGry, Smth,Blky-Fiss, Occ Pyr Clasts, Tr Disem Pyr, Tr wh Qtz Frac Fill 1051-1070 Sh, Blk, Occ Gry, AA, Occ Sl Calc, Pyr, AA, Tr Wh Qtz Frac Fill 1070-1090 Sh, Blk, D Gry, Blky-Fiss, Sl Calc, 5-10%Pyr Clasts, 3-5% Wh Qtz Frac Fill. 1090-1105 Sh, D Gry, Blk, Calc, Occ Gry Calc, Occ Sh with "Zebra" Organic Some Lamm, 1-3% Wh Qtz Frac Fill, Cavings 1105-1124 Sh, B1k,DGry,Smth,Fiss,VFrm,SCalc, Occ Sft,Tr Wh Qtz Vein Fill 1124-1144 ~ Tr - 1% Slty Gry Sh to Sltst, Vfg, SCalc,Grn-Gry,Wind,Tr- 1 % Wh Qtz 1144-1164 AA, Less Slty, 1-3% Wh Qtz 1164-1184 Sh, Blk, DGry, Smth-Sl Slty, Tr Mica, SCalc, Tr Brn-DGry LS, Micr, Tr Wh Qtz 1184-1203 Sh, DGry,Blk,Fiss,Frm,SlCalc,Tr Grn Vfg s1st,W ind, Tr Wh Qtz Some Cavings 1203-1223 Sh, DGry,Gry,Blk,Smth,Fiss,VFrm,Tr Diss Pyr,Tr-2% Qtz Some Cavings 1223-1243 Sh,B1k,VDCrry,Sm,Fiss,1-3% Wh Qtz Some Cavings 1243-1262 Sh, DGry,Occ Gry,Fiss,Smth,Folliat.?,SCa1c,Tr Wh Qtz Some Cavings 1262-1282 Sh,Dgry,Occ B1k,Sm,Calc,Fiss VFrm Tr Wh Qtz Some , , Cavings 1282-1301 Sh,BIk,DGry,Fiss,Smth,VFrm,Calc,Dissem Pyr,l-3% Wh Qtz 1301-1321 Sh,Blk,Occ DGry, AA, Less Calc, 1% Wh Qtz ~ • DEPTH DESCRIl'TION COMMENT 1321-1338 Sh,B1k,DGry,Fiss,Smth,vFrm,SCalc,tr Mica,<1% Wh Qtz 1338-1358 Sh,B1k,MGry,AA,Occ Gry with Blk "Zebra" Lamm 1358-1378 Sh,B1k,Smth,Fiss-B1ky,VFrm,Non Calc, Occ Dissem Pyr,Tr Wh Calcite Frac Fill 1378-1398 Sh, DGry,Fiss,Frm,Calc,Occ Lamm Blk Sh "Zebra", Tr Gry-LGry Sltst Vfg,wInd,Tr Slickensided samples Slickensides 1398-1417 Sh, DGry, Occ B1k,S1 Calc,Smth,Fiss,Tr Wh Qtz frac fill 1417-1437 Sh,DGry,Gry,Fiss,Calc,Tr Wh-Gry Calc Vein fill, Tr Gry S1st,Vfg,W Ind, 1437-1457 Sh,Gry,DGry,Calc,Fiss,SSlty-Smth,Tr Calc Vein Fill (1-2%) 1457-1477 Sh,Dgry,Occ Blk, Ca1c,Fiss-B1ky,VFrm-Frm,Calc Vein Fill 1% 1477-1496 Sh,Blk,Occ VDk Gry, V Ca1c,Tr Wh Calc (Dol?) Vein Fill 1496-1516 Sh, DGry,Gry,Occ B1k,Fiss, Smth,Calc,m Frm,Tr Wh Calc Vein fill 1516-1535 Sh,DGry,Fiss,Smth,SCalc,Occ Lam w Blk Sh,Tr Wh Calcite Frac fill Abt Large Cavings 1535-1555 Sh,DGry,Blk,Calc,Fiss,Frm,Smth,Dissem Pyr, 1-2% Wh Calcite 10% Cavings 1555-1575 Sh, AA, Tr Calcarenite? F-Mg 10-15% Cavings 1575-1595 Sh, B1k,DGry,Smth,Fiss,Dissem Pyr, SCa1c,Frm-VFrm,Tr Wh Calcite 20-40% Cavings 1595-1615 Sh,DGry,Blk,Calc,Fiss-B1ky,VFrm,Tr Wh Calcite,Tr calcarenite f- Mg 30% Cavings Some 1" 1615-1635 FAULT BRECCIA? Large 2" Cavings,5h, DGry,Blk,Fiss,Smth,Plumose extensional pattern,Tr Wh Calcite Primarily Cavings ~ • DEPTH DESCRIl'TION COMMENT 1635-1655 Sh,B1k,DGry,Smth,Calc,Tr Wh Qtz 1655-1675 Sh,B1k,MGry,Smth,Calc,9-4% Wh Calcite 1675-1695 Sh,DGry,Blk,Fiss,Smth,Tr Slckensides, Min w Calcite, Tr Wh Calcite SLICKENSIDES 1695-1715 Sh,DGry,SCalc,Fiss,Smth,Lamm W Blk Sh,Tr Wh Calcite Abt Large Cavings 1715-1735 Sh.Gry DGry Non Calc Tr Wh Calc fill ' VLarge Amt Cavings .5-1" 1735-1755 Sh,DGry,Gry,Calc,Smth,Occ S1S1ty,Tr Lamm Gry W Blk Sh, l- 2% Wh Calcite Decreased Amt V Small Caving 1755-1775 S h,B1k,DGry„Smth,Fiss,Occ Blky,Occ S1ty,Tr Gry-Wh Calcite (1 /o) 1775-1795 Sh,B1k,DGry,CaIc,VFrm,Smth,Pyr,Tr Wh Calcite 1795-1815 Sh,B1k,DGry,Calc,Fiss,VFrm,Occ Gry,Blk "Zebra" Lam,Tr- 1 /o Wh Calcite,Pyr,Tr Gry-Brn Sltst, vfg,Wind,SCalc 1815-1835 Sh,B1k,dGry,Occ Gry,AA, 1-4% Wh Calcite,Dolic? 1835-1855 Sh,Dgry,B1k,AA,SCalc,l-3% Wh Calcite,Dolic? 1855-1875 Sh,DGry,Gry,Fiss,Smth,Sl Calc,l-2°lo Wh Calcite, Dolic?, FAULT GOUGE BRECCIA? Abt Cavings .5" Oily Film Increase washing 1875-1895 Sh,B1k,DGry,Calc,Dissem Pyr, l-3% Wh Calcite 1895-1915 Sh,Gry,DGry, Occ B1k,Smth-SS1ty,SCalc,Tr Bedded Pyr, l-3% Wh Calcite, FAULT GOUGE BRECCIA? Abt .5"-1" Cavings Oily Film IncreaseWashing 1915-1935 Sh,dgry,Occ Gry,Calc,Fiss,Fm,3-5% Wh Calcite 1935-1954 Sh,DGry,B1k,Calc,Fiss,Sm-SSlty,l-2% Calcite s • DEPTH DESCRIPTION COMMENT 1954-1974 Sh,Dgry,Smth,calc,Frm,Fiss,Occ Lamm DGry&B1k,Tr-1% Wh Calcite 1974-1994 Sh,DGry,Smth,Calc,Frm,Fiss,OccLamm Dgry&B1k,Tr-1% Wh Calcite 1994-2014 Sh,DGry,AA,Tr Calcite Oily film 2014-2034 Sh,AA, FAULT BRECCIA GOUGE? Abt .25"-.75" Cavings, Increase Washin 2034-2054 Sh,DGry,B1k,Frm,Smth,Calc,S-7% Wh Calcite 2054-2074 Sh,DGry,Gry,Smth,Fiss,Calc,Tr Wh Calcite 2074-2094 Sh,DGry,Occ B1k,Frm,Fiss-SB1ky,Calc,2-4% Wh Calcite 2094-2114 Sh,DGry,Occ Gry,Smth,Fiss,Calc-SCa1c,Fiss,Frm,1-2% Wh Calcite 2114-2134 Sh,DGry,OccGry,Smth,Fiss,SCalc-Ca1c,Tr-1% Wh Calcite 2134-2154 Sh,Dgry,Blk,Calc,Smth,frm,Fiss-Occ b1ky,Tr-1% Wh Calcite 2154-74 Sh,AA,Occ Dissem Pyr 2174-93 Sh,DGry,Occ Gry,Less Calc,Occ Non Calc. .25"-.5" Cavings 2193-2213 Sh,DGry,Gry,Smth,Fiss,Calc,Slst,Gry,GryGrn,Vfg,W Ind,Tr Wh Large .75"- Calcite, 10% Cavings, Fault 1" Cavings 2213-33 80-90% 1"-2" Sh Cavings, Gry, Fiss,Smth,Wh M Calc-Non Fault Gouge Ca1c,Calcite Vein Fill Oily Film 2233-53 80-90% 1.5-2.5" Cavings,Fault,Sh,Ca1c,DGry-Blk,Occ Gry Slst Oily Film Turb, Banding, Tr Wh Calcite , 2253-72 Sh, DGry,B1k,Calc,Frm,Smth, Occ Lam Gry w Blk "Zebra " Tr Cavings Lamm , Tr-1% Wh Calcite • • DEPTH DESCRIl'TION COMMENT 2272-92 Sh,BIk,DGry,Calc,Frm,Fiss-SB1ky,Dissem Pyr,Tr-1% Wh Calcite 2292-2312 Sh,DGry,Occ Blk,Occ Gry w Blk "Zebra Lamm", Ca1c,Tr-1% Wh Calcite 2312-2332 Sh,B1k,DGry,Dissem Pyr,Calc,fiss-SB1ky,Smth,Tr Wh Calcite 2332-51 LARGE 1"by2" Pieces,Frac Perp to Calcite Vein Sh Blk dGry ,Ca1c,Tr Wh Calc Oily F1m,Major Gouge? 2351-71 Sh,B1k,DGry,Calc,Smth,Frm,Tr Wh Calcite 2371-91 Sh,B1k,DGry,AA Tr Wh Calcite 2391-2410 AA,1-2%Wh Calcite 2410-31 Sh,AA,Less Ca1c,Tr-1% Wh Calcite 5-10% .25" Cavings 2430-50 Sh,DGry,Occ B1k,Calc,Dissem Pyr,Tr-1% Wh Calcite 2450-70 Sh,DGry,Occ B1k,Calc,Smth,fiss-B1ky,Tr S1st,Gry,GryGrn,WInd,Vfg,Tr Lamm "Zebra" Gry w Blk Sh 2470-89 Sh,B1k,DGry,Calc,Dissem Pyr,Tr S1st,AA,Tr Wh Calcite 2489-2509 Sh,DGry,B1k,Calc,Calcite filled Fractures,Tr Wh calcite 2509-2528 Sh,DGry,Blk,calc,Fiss,Smth,Tr Dissem Pyr,Tr-1% Wh Calcite 2528-2548 Sh,AA,Tr Gy Lamm S1tst,Calc,Tr Wh Calcite 2548-2568 Sh,DGry,Gry,Smth,Fiss,Frm,Calc,Tr Wh Calcite 2568-2588 Sh,Gry,DGry,AA,Occ Sft Folliated? Gry Sh,Tr Wh Calcite • • DEPTH DESCRIl'TION COMMENT 2588-2608 Sh,DGry,Gry,Fiss,Smth,VFrm-Frm,SCa1c,STr "Zebra" Lamm Gry w Blk Sh 2608-2627 Sh,DGry, Calc, AA, Tr "Zebra" Lamm, STr Wh Calcite 5-10% .25" Cavings, Oily Wash Increase 2627-2647 Sh,DGry,Occ Blk„Tr "Zebra" Gry w Blk Lamm,Calc,Smth,Calcite Frac Fi11,Tr-1% Calcite Large .25"- 2" Cavings,Oily Wash Inc 2647-2667 Sh,DGry,BIk,Occ Gry,Smth,VFrm,Fiss-B1ky,Calc,Tr Wh Calcite 2040% .25- .5 Cavings 2667-2687 Sh,Blk,Occ DGry,Calc,Fiss-B1ky,Smth,vFrm,Tr Wh Calcite 5-10% .25- .75" Cavings 2687-2706 Sh,DGry,B1k,AA, S Tr Wh Calcite 2706-2726 Sh,DGry,B1k,Smth,Fiss,MFrm,Mica,Calc,Sl Tr Wh Calcite 5-10% Large .5-1.5" Cavings Stuck @ 2746 E & P SERVICES, INC. May 4, 2006 ~: ~v9~iY ~ 4 Zi~G(~ /*e8~9~~ ~~~ dad` ~"r ?~ !".,1"~a~s"~~w~id~ Alaska Oil and Gas Conservation Commission 333 West 7~' Avenue, Suite 100 Anchorage, AK 99501 Attention: Steve Davies, Petroleum Geologist Re: As-Built Survey Plats Teck Cominco Alaska Incorporated Wells Nos. NB-O1 and NB-02 Dear Mr. Davies: Per your recent request, please find attached two copies each of the above referenced as- builtplats. I think you will find these more legible than the first set. Please let me know if there is anything else your need. Sincerely, ~> ~~ t. ,.. ~... ~~ ~."-. R. C. Gardner Fairweather E & P Services, Inc. For Teck Cominco Alaska Incorporated Attachments 2000 East 88th Avenue • Anchorage, Alaska 99507 • (907) 258-3446 • FAX (907) 279-5740 650 North Sam Houston Parkway East, Suite 505 • Houston, Texas 77060 • (281) 445-5711 • FAX (281) 445-3388 Well NB-01 State Plane N 5,150,876 E 582,251 Section 18 1,098.63 T 31 N R 18 W Lat/Long N 68deg -05min 19.42sec W 162deg 51 min 41.54sec Elevation 802.7 ft amsl Note: ali data in NAD27, Alaska Zone 7 Well NB-02 3,662.58 Section 17 T31N R18W N Red Dog Mine Gas Exploration Project Well site As-Built Survey 1000 0 1000 2000 Feet Well N -01 Date: 03 May 2006 D d by: Turner Drawing Approved • • • Subject: [Fwd: NB-0l and NB-02 As-Built Plats] From: Stephen Davies <steve_davies@admin.state.ak.us> Date: Fri, 28 Apr 2006 15:15:00 -0800 To: bob@fairweather.com Bob, One other thing: the latest summary of operations in the Commission files for these wells covers the period from Sept. 18-24, 2005. I have no way of verifying the shut-in date of Oct. 5, 2005. Could you please provide operations summary reports from Sept. 25 on? 'Thanks, Steve Davies ------- Original Message -------- Subject:NB-O1 and NB-02 As-Built Plats Date:Fri, 28 Apr 2006 14:38:45 -0800 From:Stephen Davies <steve davies(cr~,admin.state.ak.us> Organization:State of Alaska To:Bob Gardner <bob~a,fairweather.com> Bob, Could you please have someone on your staff provide two original copies of the as-built survey plat for the NB-Ol and NB-02 wells? The fine print on the plats accompanying the completion reports is not legible. Please note also that any production from these wells (including water produced during the de-watering phase) must be reported to the Commission on a monthly basis using Form 10-405 (regulation 20 AAC 25.230). Commission forms are available on the Internet at http://www.aoacc.alaska.aov/forms/formsindex.htm. Thanks for your help, Steve Davies AOGCC 793-1224 • • Subject: NB-01 and NB-02 As-Built Plats From: Stephen Davies <steve_davies@admin.state.ak.us> Date: Fri, 28 Apr 2006 14:38:45 -0800 To: Bob Gardner <bob@fairweather.com> Bob, Could you please have someone on your staff provide two original copies of the as-built survey plat for the NB-01 and NB-02 wells? The fine print on the plats accompanying the completion reports is not legible. Please note also that any production from these wells (including water produced during the de-watering phase) must be reported to the Commission on a monthly basis using Form 10-405 (regulation 20 AAC 25.230). Commission forms are available on the Internet at http://www.aogcc.alaska.gov/forms/formsindex.htm. Thanks for your help, Steve Davies AOGCC 793-1224 E & P SERVICES, INC. • ~~~~~~~ ~~~ ~ ~ ZQ~ September 21, 2005 Alaska Oil and Gas Conservation Commission 333 West 7t1i Avenue, Suite 100 Anchorage, Alaska 99501 Attention: Tom Maunder, P. E., Petroleum Engineer Re: Weekly Status Report, Teck Cominco Alaska Incorporated Week of September 18-September 24, 2005 Wells Nos. l~l~ and NB-02 Dear Mr. Maunder: Please find attached the above referenced weekly status report. Alaska Oil & Gas Cnns» Commissian Anchorage If you have any questions, please contact the undersigned at 907 258 3446 at your convenience. Sincerel _ ~~ ~~ R. C. Gardner Fairweather E & P Services, Inc. For Teck Cominco Alaska Incorporated Attachment Cc: Jerry Booth, Teck Cominco 2000 East 88th Avenue • Anchorage, Alaska 99507 • (907) 258-3446 • FAX (907) 279-5740 650 North Sam Houston Parkway East, Suite 505 • Houston, Texas 77060 • (281) 445-5711 • FAX (281) 445-3388 • r i r .~ Weekly Status Report Teck Cominco Alaska Incorporated Red Dog Shallow Gas Exploration Project Wells Nos. NB-Ol and NB-02 Week of September 18-September 24, 2005 Well No. NB-O1 PTD 205-095 Report Period 0001 hrs September 18 to 2400 hrs September 24, 2005 Continue de-watering well, and assessing gas production potential. Test results will be submitted with Completion Report. Well No. NB-02 PTD 205-096 Report Period 0001 hrs September 18 to 2400 hrs September 24,2005 Continue de-watering well, and assessing gas production potential. Test results will be submitted with Completion Report. Report Submitted by: . ~-'~. ~~ R. C. Gardner Fairweather E & P Services, Inc. ~~' ,~L,= _~ __~.~ ~ ~ ~i S~ E ~ (~ ~E,~l/JGcS,1llIC. 1 September 19, 2005 Alaska Oil and Gas Conservation Commission 333 West 7~' Avenue, Suite 100 Anchorage, Alaska 99501 Attention: Tom Maunder, P. E., Petroleum Engineer Re: Weekly Status Report, Teck Cominco Alaska Incorporated Week of September 11-September 17, 2005 Wells Nos. NB-O1 and NB-02 Dear Mr. Maunder: Please find attached the above referenced weekly status report. If you have any questions, please contact the undersigned at 907 258 3446 at your convenience. Sincerely ~~~~ R.~ C. Gardner Fairweather E & P Services, Inc. For Teck Cominco Alaska Incorporated Attachment Cc: Jerry Booth, Teck Cominco 2000 East 88th Avenue • Anchorage, Alaska 99507 • (907) 258-3446 • FAX (907) 279-5740 650 North Sam Houston Parkway East, Suite 505 • Houston, Texas 77060 • (281) 445-5711 • FAX (281) 445-3388 • Weekly Status Report Teck Cominco Alaska Incorporated Red Dog Shallow Gas Exploration Project Wells Nos. NB-Ol and NB-02 Week of September 11-September 17, 2005 Well No. NB-Ol PTD 205-095 Report Period 0001 hrs September 11 to 2400 hrs September 17, 2005 Continue de-watering well, and assessing gas production potential. Test results will be submitted with Completion Report. Well No. NB-02 PTD 205-096 Report Period 0001 hrs September 11 to 2400 hrs September 17,2005 Continue de-watering well, and assessing gas production potential. Test results will be submitted with Completion Report. Report Sub ' ted by: R. C. Gardner Fairweather E & P Services, Inc. ~ • • ~flIN~IERiNER E & P SERVICES, INC. September 12, 2005 Alaska Oil and Gas Conservation Commission 333 West 7~' Avenue, Suite 100 Anchorage, Alaska 99501 Attention: Tom Maunder, P. E., Petroleum Engineer Re: Weekly Status Reports, Teck Cominco Alaska Incorporated Week of August 28-September 3, 2005, and Week of September 4-September 10, 2005 Wells Nos. NB-O1 and®NB-02 Dear Mr. Maunder: "-"'~ ~ ~ ~ - QC's, Please find attached the above referenced weekly status reports. If you have any questions, please contact the undersigned at 907 258 3446 at your convenience. Sincerely R. C. Gardner Fairweather E & P Services, Inc. For Teck Cominco Alaska Incorporated Attachment Cc: Jerry Booth, Teck Cominco 2000 East 88th Avenue • Anchorage, Alaska 99507 • (907) 258-3446 • FAX (907) 279-5740 650 North Sam Houston Parkway East, Suite 505 • Houston, Texas 77060 • (281) 445-5711 • FAX (281) 445-3388 • • Weekly Status Report Teck Cominco Alaska Incorporated Red Dog Shallow Gas Exploration Project Wells Nos. NB-Ol and NB-02 Week of August 28-September 3, 2005 Well No. NB-Ol PTD 205-095 Report Period 0001 hrs August 28 to 2400 hrs September 3, 2005 Selected Kivalina formation perforation intervals for frac and production test. Sequentially perforated and fraced the following intervals: Stage I (@ 6 jspf): 2640'-2660', (Total = 20') Stage II (@ 6 jspf): 2380'-2400'; 2410'-2450'; (Total=60') Stage III (@ 2 jspf): 2070'-2080'; Z110'-2120'; 2170'-2180'; 2200'-2210'; 2250'- 2270'; (Total=70') Stage IV (@ 6 jspf): 1820'-1840'; 1860'-1900'; (Total=60') Hauled off flowback water, rigged down Precision Wireline and BJ frac equipment, and demobed same to Port of Kivalina. Drilled out composite frac zone isolation plugs and cleaned out hole. Ran 2 3/8" tubing, pump and rods. Moved rig from NB-O1 location to NB-02. Awaiting installation of production equipment. Well No. NB-02 PTD 205-096 Report Period 0001 hrs August 28 to 2400 hrs September 3,2005 Completed frac operations, hauled off flowback water, and moved Precision Wireline and BJ frac equipment to NB-O1 location. Removed frac valve on wellhead and installed production head. Awaited return of rig from NB-01 to drill out composite frac zone isolation plugs. Rig back on NB-02 on 9/1/05. Drilled out isolation plugs and cleaned out hole Ran 2 3/8" tubing, pump, and rods. Prep to rig down and move out rig in preparation for installation of production test equipment. . Report Submitted~~,,.,~~ /'~~1 ~' ~~ R. C. Gardner Fairweather E & P Services, Inc. Weekly Status Report Teck Cominco Alaska Incorporated Red Dog Shallow Gas Exploration Project Wells Nos. NB-Ol and NB-02 Week of September 4-September 10, 2005 Well No. NB-Ol PTD 205-095 Report Period 0001 hrs September 4 to 2400 hrs September 10, 2005 Removed frac valve on wellhead and installed production head. Installed pump jack, generator, and production test equipment. Started to de-water well. Well No. NB-02 PTD 205-096 Report Period 0001 hrs September 4 to 2400 hrs September 10,2005 Installed pump jack, generator, and production test equipment. Started to de-water well. Report Submitted by: ___ R. C. Gardner Fairweather E & P Services, Inc. ~-~-- r ~ j ,~, t,~~ ~~ ~r3~ sy ~ ~ ~ ~ ~~~ 4~' ~ ~ ~~ v COI~TSERQA t S 4 '"4 ~ ~ S.a ~ ~~ ~ ' '°~ 1 "~ s-9 ' ~% ~ FR ~ ~ ~ ~ ~ .~ ~ ~ .~ .~ ANK H. MURKOWSKI, GOVERNOR ~ tam ~~~ ~~ ~~++ ~ O~ ~ t][0~7 ~ 333 W 7`" AVENUE S jlOls CO~aSio~ . , UITE 100 ~GE,AIASKA99501-3539 ~ ~ PHONE (907) 279-f 433 R.C. Gardner Senior Technical Advisor Teck Cominco Alaska Incorporated 3105 Lakeshore Dr., Bldg. "A" Anchorage, Alaska 99517 Re: Exploration NB-Ol Sundry Number: 305-290 Dear Mr. Gardner: FAX (907) 276-7542 Enclosed is the approved Application for Sundry Approval relating to the above referenced well. As discussed with Commission staff, it is not possible to grant an operational shut down as requested. Based on the operations accomplished this season, the well is properly considered completed. Accomplishing the planned work will secure the well for the coming winter. Please note the conditions of approval set out in the enclosed form. Please provide at least twenty-four (24) hours notice for a representative of the Commission to witness any required test. Contact the Commission's petroleum field inspector at (907) 659-3607 (pager). As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. A person may not appeal a Commission decision to uperior Court unless rehearing has been requested. Sincerely ..~ cr 0 DATED this day o e tuber, 2005 Encl. - ~ 1~~ (~ h - ~-05 ALAS~OIL AND GAS CONSE V ATION COMMI~N R~C,~j~~~~ lO APPLICATION FOR SUNDR PPROVALS Q05 ~3 20 aac 25.ZSO `°C`3 SEP 2 9 2 1. Type of Request: Abandon Suspend pperati tdow Pertorate Waiv ~ $10t1 ~ ^ ~,{~ska ~i^ s oggns• Alter casing ^ Repair well ^ ~ Plug Pertorations ^ Stimulate Time x ension ~~1~ l Change approved program ^ Pull Tubing ~ Pertorate New Pool ^ Re-enter Suspended Well ^ '2. Operator Name: 4. Current Well Class: 5. Permit to Drill Number: ~ Teck Cominw Alaska Incorporated Development ^ Exploratory Q 205-095 3. Address: Stratigraphic ^ Service ^ 6. API Number: 3105 Lakeshore Dr., Bldg. "A" Anchorage, AK. 99517 50-073-20002-00 7. KB Elevation (ft): 9. Well Name and Number: 800 ft NB-01 8. Property Designation: 10. Field/Pools(s): Nana Regional Corporation Exploratory 1 L PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD (ft): Effective Depth TVD (ft): Plugs (measured): Junk (measured): 2745 2745 2714 2714 None None Casing Length Size MD TVD Burst Collapse Structural Conductor 75 13 3/8 7.5 ~~ Intermediate Production 2728 51/2 2728 2728 4810 4040 Liner Pertoration Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): See Attached See Attached 2 3/8 4,7#, J-55 2628 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 Q BOP Sketch ^ Exploratory Q Development ^ Service ^ 14. Estimated Date for 15. Well Status after proposed work: Commencing Operations; Oct. 1, 2005 Oil ^ Gas Q Plugged ^ Abandoned ^ 16. Verbal Approval: Date: WAG ^ GINJ ^ WINJ ^ WDSPL ^ Commission Representative: 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact R.C. Gardner Printed Name R C G d . . ar ner 258- Title Sr. Technical Advisor, Sept. 26, 2005 Signature hone Date SSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: 3D~' D Plug Integrity ^ BOP Test ^ Mechanical Integrity Test ^ Location Clearance ^ other. ~`~,~+M~t~~~ ~-~~ ~~c~U.~fOI~S ~ ~ll~ G~~~JC~?.~~ ~ ~~'~ ~F~ c~ ~ ~ S b ~oo~ u sequent For uire ~ Gc~ P~GI~hC~ APPROVED BY Approved COMMISSIONER THE COMMISSION Date: ~D Form 10-403 Revised 07/2005 -- Submit in Duplicate ~ • Teck Cominco Alaska Incorporated Well No. NB-Ol, PTD 20S-09S Plan for Winter Operations Shutdown, 2005-2006 Statement of Purpose Dewatering and production testing operations at Well No. NB-01 have been ongoing since September 9, 2005, and considerably more time is needed to evaluate the production potential of this well, and of the shale reservoir itself. The onset of freezing temperatures make it prudent to temporarily shutdown these activities until spring of 2006 in order to prevent freeze-up and damage to surface equipment. Teck Cominco Alaska Incorporated requests approval of a temporary Operations Shutdown for this well under 20 AAC 25.072, and proposes to use the shutdown period to evaluate the test data acquired thus far, and to develop plans for additional de-watering and production testing when more favorable temperatures return next spring. Well Status The current status of Welt No. NB-01 is reflected on the attached Form 10-403. Four (4) stages were perforated in this well as follows: ` Stage I; 2640'-2660', w/ 6 jspf. Stage II: 2380'-2400', and 2410'-2450', w/ 6 jsfp Stage III: 2070'-2080', 2110'-2120', 2170'-2180', 2200'-2210', and 2250'-2270', w/2 jspf. Stage IV: 1820'-1840', and 1860'-1900', w/6 jspf These stages were individually hydraulically fractured, as reported in the attached Post Treatment Report, dated August 29, 2005. Following the initial flow-back of frac water, the static water level in the well bore stabilized at approximately 100 ft. Tubing (2 3/8", 4.71b, J-55) was run to 2628 ft, and a rod pump installed to de-water the well. De-watering has been on-going for 18 days, and the shale reservoir has yielded small amounts of natural gas during this process. Operations Shutdown Scope Permafrost exists in Well No. NB-O1 to a depth of approximately 640 ft. Temperature limitat of ns on the operation of surface equipment require that this well be shut-in during the fall, winter and spring months when freeze-up is a problem. own-hole production equipment will be pulled before the shut-in period so that only the 2 3/8" tubing will be in the well-bore. Formation water will return to pre de-watering levels, approximately 100 ft below ground level. This water within the permafrost zone will be subject to • freezing if precautions are not taken to prevent such an occurrence. Should this happen, the associated expansion of the freezing water will expand the production casing (particularly at the joints] and can cause failure in the collars that connect the joints. This failure will result in leaks into the 5 'h in production casing that can allow excess water to enter the well-bore. Gas production could also be lost to leaks in the casing, and other adverse production consequences could occur. The Red Dog Gas Project Group recommends the use of methanol to prevent freezing of the NB-O1 well bore during the 2005-2006 winter shut down. Methanol was determined to be the best choice after evaluating several alternatives. It is readi,~ available at Red Dog, as it is used extensively with water to make drilling fluid fo-r mineral exploration holes, and in the dulling of blast holes at the mine itself. It is easily handled, and mine personnel are familiar with the required safely precautions, transportation, and pumping of this product. Methanol readily mixes with water, and will not stratify in the well bore or precipitate out of solution. Approximately 650 gallons of methanol will be required to fill the NB-Ol well bore to 700 ft, which includes the permafrost zone plus a safety factor. Using 50/50 methanol water mixture will reduce the amount of pure methanol required. Stratification should not be a problem, since the specific gravity of the mix is very close to that of water. Pumping an initial pad of 100% methanol should prevent any loss of freeze protection due to mixing that may occur with water in the well bore. When de-watering and production testing resume next spring, a pump and sucker rods will be run in the 2 3/8" tubing and the methanol will be pumped out with the produced water stream and recovered to the degree ossible. Some methanol will be unavoidably discharged to the mine tailings pond for disposal along with produced water. Methanol currently used in Red Dog mineral exploration is routinely disposed of in a similar -~ manner. Operations Shutdown Procedures 1. Permafrost is estimated to extend to approximately 640 ft in the North Basin area. In order to be sure the entire permafrost interval is covered, methanol will be placed in the well bore to a depth of 700 ft. The total volume to fi11700 feet of well bore annulus and Z 3/8" tubing is 15.52 bbls, or 652 gallons. The 2 3/8" X 5 '/2" annular volume down to 700 ft (0.0183 bbls/ft) is 12.81 bbls, and the 2 3/8" tubing volume (0.00387 bbls/ft) is 2.71 bbls to 700 ft. 2. A total of 390 gallons of 100 % methanol is required for the job. Mix 6.5 bbls (280 gals) each of methanol and water in a water truck or other portable tank, as is done wioth other mine-site drilling. Keep 2 drums (110 gals) of 100% methanol separate for the initial methanol "pad". 3. Pull the 3/a" sucker rods and pump from the well with a boom truck or other available crane capable of lifting approximately 66001bs in 30 foot lengths. Allow the well bore to .refill with formation water to the original static water level at approximately 100 ft below ground level. • • 4. While the well bore is refilling with formation water, completely blow down all surface equipment with compressed air and secure to prevent any water or snow entry during the winter months. 5. Remove the stuffing box from the flow T on the well and replace with a 2" ball valve. Screw a 2" tapped bull plug into the top of the "swab valve" with a pressure gauge rated to 2000 psi. 6. Using a "bean" pump, or similar equipment, connect the pump into the casing annulus valve and pump 1.5 drums (85 gals) of 100% methanol into the 2 3/8" X 5 1/Z" casing annulus with the tubing valve open, and follow with 11 bbls (460 gals) of the 50/50 methanoUwater mixture. This will place a 100 ft methanol "pad" at-the bottom of the column, with the mixture above. Recover any water flowing from the tubing while the methanol is being pumped in a tank for disposal. Close the annulus valve. 7. Connect the pump to the wellhead (tubing) valve and bullhead 0.5 drum (27 gals) of 100% methanol into the 2 3/8" tubing, followed by 2.25 bbls (100 bbls) of the 50/50 methanoUwater mixture. Record pressures while bullheading. Close the tubing valve and disconnect the pump. Record initial pressure showing on the wellhead gauge after closing the tubing valve. 8. Monitor and record pressures on the wellhead gauge frequently during the winter months. The road to the well site will in all likelihood not be kept open, but the well site will be accessible by snow machine or other tracked vehicle. ~ ao~-o5s ~ dos ~~ (2) "velocity survey" means a survey, the primary purpose of which is to determine velocity of seismic waves through formations penetrated by a well by measuring travel times of seismic pulses from or near the surface to geophones placed at various depths in the well. History: Eff. 4/2/86, Register 97; am 11 /7/99, Register 152 Authority: AS 31.05.030 AS 31.05.035 . ~ S co ~~~E~~~~ ~~ ~o ~ 20 AAC 25.072 ~~, TEMPORARY SHUTDOWN OF DRILLING OR COMPLETION OPERATIONS. ~~- (a) If circumstances prevent the continuation of the program approved on a Permit .to Dril (Form 10-401), or if an operator wishes to change drill rigs, t e operator shall t0~~ apply to the commission for approval to shut down drilling or completion operations temporarily. Based on the information received under this subsection, the commission will decide whether to approve the temporary shutdown of drilling or completion operations. The request for operation shutdown must be submitted on an Application for Sundry Approvals (Form 10-403), providing a full justification for the shutdown, a description of the proposed condition of the wellbore upon shutdown of drilling or completion operations, the approximate date when drilling or completion operations will resume, and a proposed program for securing the well during the period of shutdown. An Application for Sundry Approvals is not required for planned shutdowns of well operations, if those shutdowns are described in the approved Permit to Drill. (b) The operator shall file with the commission, within 30 days after operation shutdown, a complete well record on a :Report of Sundry Well Operations (Form 10-404), including a summary of daily well operations as described in 20 AAC 25.070 (3) and a copy of all logs run in the well as required by 20 AAC 25.071 (b)(6). The commission will, in its discretion, waive the requirements of this subsection if drilling or completion operations are to be resumed within 60 days after operation shutdown. (c) Shutdown of well operations does not establish a completion, suspension, or abandonment date for a well. (d) If well operations are not resumed within 12 months, the operator shall immediately proceed to abandon or suspend the well. Upon application of the operator, the commission will extend the 12-month period, if the operator shows that operational circumstances beyond the operator's control prevent resumption within the 12-month period. History: Eff. 4/2/86, Register 97; am 11/7/99, Register 152 ~ ~~ Authority: AS 31.05.030 L~~ ~'~` o U err-,,, !th ~~ 4 33 ` ~~ ~,~~~ ~ ~J ~ ~ _ ,~ ~~ ~ ~ ~~~r ~~~~ Proposal No: ~~ 100186959E POST TREATMENT REPORT Teck Cominco Alaska Inc. North Basin No. 1 Wolverine Shale Red Dog Alaska August 29, 2005 ~~_~-~~~ ~~ PQWERVISI(:)N~" • • August 29, 2005 Teck Cominco Alaska Incorporated 3105 Lakeshore Drive Bldg. A, Suite 101 Anchorage, Alaska 99517 Treatment Summary North Basin No. 1 Completion The attached report outlines the fracture treatment performed on NB-01. This report includes graphs and data detailing each of the four stages. A frac data summary form separates each stage and includes volumes, pump times, and treatment schedules. The graphs include overall treatment data, Nolte-Smith, fluid inventory, regression analysis. Comments were added to the graphs and summary sheets for clarification. On the first stage we had to cut the sand prematurely and flush due to excessive pressure. Same problem we had on the second stage where we had to stop pumping after flushing 12 bbls due to a screen out. Very high near wellbore friction pressures and closure pressures were found on this well. Step down test analysis showed that most of the friction was due to tortuosity problems. Proppant slugs were used during the pad of the last two stages in order to alleviate this problem. We pumped the last two stages according to the design and a sand concentration of 3 ppg was mixed on the fourth stage. The total volume of water pumped on this well was 2230 bbls. Should you have any questions, please contact the Santa Fe Springs Engineering Department. BJ Services appreciates the opportunity to perform pumping services for you in acost-effective manner that focuses on safety and quality. Sincerely, Gabriel Coria District Engineer Santa Fe Springs District, California Frac Data Summary Customer: Teck Cominco Customer Rep: Steve Bumgardner WeIU Field N$0-1 Job Date: 28-Aug-OS ~~ Formation: Wolverine Shale IntervaUStage: Stage 1 - 4 BHST: 68°F BJ Rep: David Archuleta 1 Gabriel Coria To Perf 1 2640 2640 ft Bottom Perf 2660 2660 ft 'vlid Zone 2650 2650 ft Gross lnterval 20 ft Net lnterval 20 ft Fluid SCi / HH 1 1149 si Shots;foot 6 120 holes Size 0,60 inch Size/wt Len th bbl/ft bbls Casing 5112" 155# 2640 0.0238 62.8 0.0 0.0 0.0 0.0 Volume to Top Perf 62.8 1 In'ection Main Frac Volume to Lill 0 0 STP 2580 2692 Rate 12.8 l7 FG 1.21 L25 Volume 84 245 FT(r~;Startu 0.7 42.0 ET~~;Shutdown 15.1 59.5 Pump Time 14.4 17.5 Break Pressure 2332 2492 IS1P 2060 2150 1 min SIP 1790 2073 5 min SIP 1626 1921 10 min SIP 1560 1854 15 min SIP 1515 1809 Closure time 2.5 5.2 Pclosure (surf) 1655 1905 FG closure 1.06 L I5 Efficicncv 14% 19°l> STP( si) 2580 2460 2268 :atetbnm) 12.8 ]0.4 7.3 1 100 Pad 50 Pad STP( si) 2 61 0.5 220 0.5 Rate(b m) 3 73 1 0 0 g 4 87 2 0 0 STP( si) 2692 2(154 2585 2400 5 78 2.5 e 0 0 Rate(b m) 17 13.5 ll 6.2 6 63 Flush 63 Flush Program 18,270 lbs Computer 2,689 Ibs 2.65 SG Blender 2,689 Ibs 0.04521bs/bb1 BH Sand 2,689 lbs Dirty bbls 332 Start Pum ing ~a` 1:14 PM Placed 15%~ by dcsi n Clean bbls 329 End Pum ing a~ 2:14 P.M Comments: Closure ressure radient was 1.1 si/It. Near wellbore ressure frition was 460 si at 17 b m. From the ste rate down test anal sis we see that most of the near wellbore friction ressure is due to tortuosit roblems. As the pressure did not stop increasing (+2700 psi) we had_to_cut the sand and flush. _ _ _ - ~~ TION TREATMENT REPORT j Date_~~AUG-45 _ District Kenai Lease North Basin No. 1 Field Del ong M~as~ns County De Lona Mts _ State Alaska _ F.Receipt 121264644 Custom~__ Teck CominCO Alaska Inc~ated _ Welt Name North Basin No. 1 _ Location Sec 18T-31 N-R18W KRM Stage No 1 _ Well API ,_._ -API 05073200200000 WELL DATA WeN Type: NEW WeN Class: Geometry Type Tubular Type OD Weight ID TUBULAR CSG 5.5 15.5 4.95 Packer Type Packer Depth GAS Grade Top 0 FT Depth TDlPB: 2667 Formation: Wolverine Shoe Bottom ~ Perftntervals 3500 Top Bottom SPF Diameter 2640 2660 6 .6 TREATMENT DATA e Fluid Desc Fluid T ed Volume(Gals) Pum Prop. Description Volume Pumped(Lbs} LIQUID PUMPED AND CAPACITIES fN BBL5. yp p PAD Fresh water 5.670 Sand, White, 20!40 TREATMENT FLUID Fresh Water 5.670 revious Treatment ____ N? Previous Production Hole Loaded W ith_Fresh Water __ Treat Via: Tubing [using [j~nul. Ball Seaters:__ 0 _ In___ 0^_Stages Type_J_ Atn6liary Materials sEE REC. 2.700 Total Prop Qty: 2,700 A - tubing & Anul. ^ - TUblrtg Cap. 0 C~jng Cam, 63 Annular Cap. 0 Open Hole Cap. p Fluid to Load 0 Pad Vdume 135 Treating Fluid 135 Flush 62 O~~,h _1 Fluid to Recover 332 PROCEDURE SUMMARY Time AM/PM Treating Pressure-Psi Surface Slurry BBLS. Pumped Slurry Rate BPM Comments STP Annulus Stage Total 12:50 368 0 84 0 7 O Well Head/Start Pad 12:53 2450 0 4 0 Shut down ressure out 13:11 2319 0 4 13 Resume Pad/ Break Psi-2336 2 b m 13:23 2590 0 0 84 0 Shut Down 13:50 1460 0 51 0 13.5 Re-Start Pad 13:55 2630 0 135 51 17 Start .5# 20/40 W hite 13:59 2510 0 114 17 .5# 20/40 White on Perfs. 14:03 2681 0 62 186 17 Start Flush 14:08 2450 0 248 0 Shut Down ISDP-2245 14:09 1 Min. 2073 si. 14:13 5 Min.: 1921 si. 14:18 10 Min: 1854 si. 14:23 15 Min.-1809 si. reating Pressure Injection Rates Shut In Pressures Customer Rep. Rodger Parr/Matt Belg Minimum 2510 Treating Fluid 15 ISDP 2245 BJ Rep• David Archuleta Maximum 2681 Flush 17 5 Min. 1921 Job Number 121264644 Aver a 2600 Average 15 10 Min. 1854 Rec. ID No. 100186959 G Operators Max. Pressure 15 Min. 1809 Distribution 2900 Final 1809 In 15 Min. Flush Dens. Ib./gal. 8.34 RzG~rt Prided on_ August t9. 20051'.63 PM JrnuUu 30.0 4.0 27.0 3.6 24.0 3.2 21.0 2.8 18.0 2.4 15.0 2.0 12.0 1.6 9.0 1.2 6.0 0.8 3.0 0.4 10 20 40 50 60 7U 0.0 NB-O l (stage # 1) Real Slurry Rate (bpm) fieai 5~I'P (psi Real Bld Sand Conc. (lbm/gal) _..... - I I - -j- ~ j --- -~ -- _ -_- _-- - ''"~,r~, '~~ 0.0 0 MVew - NB01-1 -8/26!2005 30 ~' BJ Services JobMaster Program Version 3.00 . Job Number: 121264644 Customer: Teck Cominco Alaska Incor Well Name: NB-01 (1st stage) PRC Chart - Frac ^ BJ Services Job Start: Sunday, August 28, 2005 .... - - • BJ Services Job /ob Number.• Master Program Version 3.00 Customer.• 121264644 We// Na Teck Corninco A/aska /ncor me: NB_ 01 (1st stage) 10000 ._ Q i L ~ ~ 1000 i - ~ ~ ~ ~ a ~ c .~.. r- as i ~ ~ Z ~ _ ~- I m 100 BJ Services 0 ~n 50 0 10 .~ a ~ ~ ~ ~ 5 ~" ~ ~ ~ ~ v ~ ~ m o Job Start: Sunday, qu ust 28, 9 2005 -•yN,~a i ime (min) 2300 1st Pumping -Regression Analysis (NBO1- Stg# 1) 200 - 2200. '~ Surface Pressure G dP/dG 2100 "ISIP .^ 2000 -_ ______ ~ f ~ ~ _ - r - _ -- - ~-- ~ ~1B 1900 _- -- ---- - -- -- ~ I P-' 1800 ~ - -- U ~ ~ 1700 ~ ~ --- - --~ ~ .2B I ETC _,_ lsoo _ ' -__~__ - ~- 1500 ~~ ~ ~I ~1A 1400 0 0.3 0.6 0.9 1.2 Nolte G Time MinFrac - N801-i - 8/28/2005 Pump Time = 13.7154 Delta TC = 2.47864 Surface ISIP = 2061.12 Surface Closure Pres. = 1655.51 BH Closure Pres. = 2803.84 Net Pressure = 405.616 Efficiency* = 0.13503 Residual = 12.4013 .140 • Slope 1 = -1100.85 Slope 2 = -116.937 --- - - - - --- 120 100 T F-~ 180 160 80 60 -_-' 40 -'~ - ~2A -- 1.5 1.8 J 20 2.1 2200 2150 2100 .~ 2050 L/~ ~/ 2000 L/~ ~--~ a 1950 U 1900 1850 1800 1750 0 180 160 140 120 100 80 rM~ 60 40 20 0 MinFrac-NB01-1 -8i28i2005 0.3 0.6 0.9 1.2 Nolte G Time • ~~ . NB-01 (1st stage) Near Wellbore Restriction (NWRj Step Rate Down Test Analysis - 2nd pumping Log- Log Rate vs. Delta Pressure Near Wellbore Pressure loon 100 .a a x m 'm 0 10 1 1 10 100 Rate, bpm Slope: m = 0 - 0.5 no near welibare problems m = 0.5 -1 tortuosity problems m = 0.66 _ m = 1 - 2 perforation problems Rate BHP 17 3759 13.5 3750 11 3694 6.2 3536 0 3300 Rate Delta BHP 17 459 13.5 450 11 394 6.2 236 0 0 Comments: Near Wellbore pressure friction is 459 psi at 17 bpm ,very high! Step down test analysis shows that most of the friction is due to tortuosity problems Frac Data Summary . Customer: Teck Cominco Customer Rep: Steve Bumgardner WeIU Field NBO-1 Job Date: 28-Aug-OS ~~~ ~ ~ Formation: Wolverine Shale IntervaUStage: Stage 2 - 4 BHST: 68°F BJ Rep: David Archuleta / Gabriel Coria To Perf 2380 2380 ft Bottom Perf 2450 .2450 ft Mid Zone 241 S 241 S ft Gross Interval 70 fl Net ]nterval 60 ft Fluid SG / HH 1 1047 si Shotstfoot 6 360 holes Size 0.60 inch Size/wt Len th bbl/ft bbls Casing 5 lr2" t5s~ 2380 0.0238 56.6 0.0 0.0 0.0 0.0 Volume to Top Perf 56.6 In'ection Main Frac Volume to Ell 0 5TP 2050;'2800 Rate 24 FG - Volume 394 ET~~rStartu 0-7 ET~nShutdown 24.0 P,unp Time 23.3 Break Pressure 3225 ISIP screen out 1 min SIP - 5 min S1P - 10 min S1P - 15 min SIP - Closure time - Pclosure (surf) - FG closure - f/fllciency 1 100 Pad 100 Pad STP( si) 2 102 0.5 105 0.5 Rate(b m) 3 105 1 109 1.0 4 98 2 81 2.0 STP( si) 2800 screen out - - 5 S6 2.5 0 0 Rate(b m) 24 screen out - - 6 S7 Flush 12 Flush Program 19,110 Ibs Computer 12,919 Ibs 2.65 SG Blender 12,919 Ibs 0.0452 Ibslbbl BH Sand 9,519 Ibs Dirty bbls 408 Start Pu mpin ~a 8:25 PM Placed 50% b deli n Clean bbls 394 End Pu m in (a` 8:50 P.M Comments: Pressure started to increase as soon as 0.5 g sand hit the erf. Pressure increased dramaticall to 2800 si at 2 p in erf.. Cut sand ,flushed 12 bbls and screen out. Total sand in i e was 3400 lbs. The to of the sand was found below the erf. Program to Hump a pronpant sluff during the pad of the next stages to alleviate and evaluate ossible nearweltbore roblems. ~~ CATION TREATMENT REPORT Date 28-AUG-05 _ District Kenai F.Receipt 121264646 Customer- Teck Cominco Alaska Inc~arated Lease North Basin No. 1 _ Well Name North Basin No. 1 Field DeLona Mountains Location- County De Long Mts _ State Alaska Stage No_ 1 _ Well API _ -API 05073200200000 WELL DATA Well Type: NEW Well Class: GAS Depth TD/PB: 2667 Formation: Wdverine Shoe Geometry Type Tubular Type OD Weight ID Grade Top Bottom Perflntervals TUBULAR CSG 5.5 15.5 4.95 0 3500 Top Bottom SPF Diameter 2410 2450 6 .6 2380 2400 6 .6 Packer Type _ Packer Depth FT TREATMENT DATA LIQUID PUMPED AND CAPACITIES IN BBLS. Fluid Type Fluid Desc Pumped Volume(Gals) Prop. Description Volume Pumped(Lbs) PAD Fresh Water 4.200 Sand, White, 20/40 12,919 Tubing Cap. 0 TREATMENT FLUID Fresh Water 12,432 Casing Cap. 566 Total Prop Qty: 12,s1s Annular Cap. 0 Open Hde Cap, 0 Fluid to Load 0 Pad Voume 100 Previous Treatment NA _ Previous Production _ NA - Treating Fluid 296 Hole Loaded With__Fresh Water _ Treat Via: Tubing [ using ~nul. Dubing & AnuL ^ Flush 12 Ball Sealers:__~__ In_ _~__Stages Type _ -- Overflush -44 Auxiliary Materials SEE REC. Fluid to Recover 408 PROCEDURE SUMMARY Time Surface Slurry Slurry Rate AM/PM Treating Pressure-Psi ggLS. Pumped BPM Comm ents STP Annulus Stage Total 20:21 2410 0 100 0 24 O en Well Head! Start Pad 20:28 2162 0 105 100 24 Start .5# 20/40 W hite 20:31 2050 0 157 24 .5# 20/40 W hite on Perfs. 20:33 2142 0 109 205 24 Start 1# 20/40 White 20:35 2144 0 262 24 1 # 20/40 W hite on Perfs. 20:37 2324 0 82 314 24 Start 2# 20/40 W hite 20:40 2480 0 371 24 2# 20!40 W hite on Perfs. 20:41 2671 0 12 396 24 Start Flush 20:45 2900 0 408 0 Shut Down reating Pressure Injection Rates Shut In Pressures Customer Rep. Matt Belgum/Rodger F Minimum 2050 Treating Fluid 24 ISDP p BJ Rep. David Archuleta Maximum 2900 Flush 24 5 Min. 0 Job Number 121264646 Average 2600 Average 24 10 Min. 0 Rec. ID No. 100186959 G Operates Max. Pressure 15 Min. 0 Distribution 3000 Final 0 In 0 Min. Flush Dens. Ib./gal. 8.34 RBGOrt PnnEed on'. nu~~st 29. 265 1 ~< PM Jr80vU BJ Services JobMaster Program Version 3.00 ' Job Number: 121264646 Customer: Teck Cominco Alaska Incor Well Name: NB-01 2nd stage) 50 3000 2000 a a 1000 40 ,.., 30 E a JQ m ~. ea v ~' 20 D PRC Chart - Frac c. 0 t4 'v c R m a N Q ..- C m 0 10 Elapsed Time (min) 28 0 1000 °o M a a~ .. a r ca H O 2000 ~, 3000 BJ Services Job Start: Sunday, August 28, 2005 a 0 10 20 ~ ~ BJ Services JobMaster Program Version 3.00 Job Number: 121264646 Customer: Teck Cominco Alaska Incor Well Name: NB-01 2nd stage) Nolte Plot 50 10 5000 10 _ X:10.0974 Y:249.123 S:1.65 , 1000 ~ __ _ J ___ _ ,. , , ~~~ 40 .-. ~ '~ - I Q ' vs ~ I- ~ j 30 ~ .-. L ~ 100 ~ ca 5 I.~ ~ ~ a 5 . ~ ~ ~ ____~.~ ~~_ ~ ~~.~_ w _ ~__.r~~_.~,.~.~,-~ ^ _..~- ~ v c L a ~ c ~ I ~ 20 ~ ~+ Z '' ^^ v/ _ ', ~ MM W M W ~ ~ 10 -- / I f ~ n~ ~' J I 1 0 _---, - - - - ! _ ___-- L - ~ - - --1=-1- 0 0 1 10 Elapsed Time (min) BJ Services Job Start: Sunday, August 28, 2005 ~ ~ BJ Services JobMaster Program Version 3.00 . Job Number: 121264646 Customer: Teck Cominco Alaska Incor Well Name: NB-01 2nd stage) -~ MD=2380 ft, Slurry/Sand are bbl/lbm A n+~ ~ n 1 Slurry Sand 01. Pad 02. 1st Conc. 20/40 Wh 03. 2nd Conc.20/40 Wh 04. 3rd Conc. 20/40 Wh ~a. ~~+i Conc. 2C~o'40 1~'1r'~o 06. FLUSH BJ Services Job Start: Sunday, August 28, 2005 Frac Data Summary , Customer: Teck Cominco Customer Rep: Steve Bumgardner WeIU Field NBO-1 Job Date: 29-Aug-OS Size/wt Len th bbl/ft Casing 5 12" l5S# 2070 0.0238 to Volume to f STP Rate FG Volume ET(cLStart~ Pump Time Break Pressm IS1P 1 min SIP 5 min SIP 10 min SIP 15 min SIP Closure tim~ Pclosure (sur FG closure S S STP( si) 1862 1750 1533 Rate(b m) 24 17 14 Program 22,470 Ibs bbls 49.3 0.0 OA 0.0 0.0 49.3 Main Frac 0 1862 24 1.08 575 z.0 29.5 27.5 2772 1400 1279 1208 1117 1t03 ND ND ND ND 1524 11 i =~ Formation: Wolverine Shale IntervaUStage: Stage 3 - 4 BHST: 68°F BJ Rep: David Archuleta / Gabriel Coria 1 To Perf 2070 2070 ft $ottom Perf 2270 2270 ft Mid Zone 2170 2170 ft Gross lnterval 200 ft Net Interval 70 ft Fluid SG t HH 1 941 si Shotstl'oot (i 420 holes Size O,bO inch 1 90 Pad 90 Pad Z 37 I Slu 37 t PPS st~~ 3 40 Pad 43 Pad 4 72 0.5 72 0.5 5 los t 111 1 6 117 1,5 125 2 7 109 2 74 2.5 S 49 Flush 49 Flush Computer 22,200 lbs 2.65 SG Blender 22,200 Ibs 0.04521bs~'bbl BH Sand 22,200 lbs Dirty bbls 600 Start Pum ing 2 8:19 AM Placed 99% b desi n Clean bbls 575 End Pum in ~~ 8:47 A.M Comments: Pum ed a ro ant slu (1 ) to evaluate and alleviate ossible near wellbore roblems. Bottom hole ressure did not Chan a when sand hit erforations (na near wellbore roblems). As a result we chanced 1.5 npc by 2 PRC and 2 ppg by 2.5 ppg. !~ CATION TREATMENT REPORT Date 29_AUG-05 _ District Kenai Lease North Basin No. 1 Field DeLong Mountains County De Long Mts _ State Alaska _ F.Receipt 121264648 Customer Well Name_ North Basin No. 1 _ LocaticnT Stage No 1 Well API Teck Cominco Alaska Incorporated _ - WELL DATA Wett Type: NEW Wel! Class: Geometry Type Tubular Type OD Weight ID TUBULAR. CSG 5.5 15.5 4.95 acker Type _ Packer Depth GAS Grade Top 0 T Depth TD/PB: 2667 Formation: Wdverine Shoe Bottom ~ Pertlntervals 3500 Top Bottom SPF Diarrteter 2250 2270 2 .6 2200 2210 2 .6 2170 2180 2 .6 2110 2120 2 :6 2070 2080 2 .6 TREATMENT DATA Fluid Type Fluid Desc Pumped Volume(Gals) Prop. Description Volume Pumped(Lbs) LIQUID PUMPED AND CAPACITIES IN BBLS. PAD Water 5,838 Sand, White, 20/40 TREATMENT FLUID Water 17,346 revious Treatment _ NA Previous Production Hole Loaded With_Fresh Water __ Treat Via: Tubing ~asing ~nul. Ball Sealers:___,_~_,._,__ In__~_0__Stages Type - Auxiliary Materials SEE REC. 22,199 Total Prop Qty: 22,199 A [tJubing & Anul. ~ -_ Tubing Cap. 0 Casing Cap. 49.2 Annular Cap. 0 Open Hde Cap. 0 Fluid to Load 0 Pad Voume 139 Treating Fluid 413 Flush 48 Overflush 0 Fluid to Recover 600 PROCEDURE SUMMARY Time AM/PM Treating Pressure-Psi Surface Sluny gBLS. Pumped Slurry Rate BPM Cornrnents STP Annulus Stage Total 08:13 120 0 90 0 24 O en Well Head/ Start Pad 08:18 1749 0 49 24 Pad on Pens. 08:20 1712 0 38 90 24 Start 1# 20/40 white slu 08:22 1635 0 49 128 24 Start Pad 08:22 1617 0 139 24 1# slu on Perfs. 08:23 1663 0 72 170 24 Start .5# 20/40 W hire p8:25 1610 0 219 24 .5# 20/40 on Perfs. 08:26 1603 0 111 242 24 Start 1# 20/40 W hire 08:28 1560 0 291 24 1 # 20!40 W hire on erfs. 08:31. 1570 0 125 353 24 Start 2# 20140 W hire 08:33 1538 0 402 24 2# 20/40 W hire on Perfs. 08:36 1606 0 74 478 24 Start 2.5# 20!40 W hire 08:38 1677 0 527 24 2.5# 20!40 W hire on Perfs. 08:39 1748 0 48 552 24 Start Flush 08:42 1862 0 600 0 Shut Down ISDP-1400 08:43 1 Min. si-1279 Og,47 5 Min. si-1208 0$:52 10 Min. si-1117 08:57 15 Min. si-1103 rearing Pressure Injection Rates Shut to Pressures Customer Rep. Rodger Parr/Matt Belg Minimum 1538 Treating Fluid 24 ISDP 1400 BJ R®P- David Archuleta Maximum 174g Flush 24 5 Min. 1208 Job Number 121264648 Average 1650 Average 24 10 Min. 1117 Rec. 1D No. 100186959 G Operators Max. Pressure 15 Min. 1103 Distribution 2900 Final 1103 In 15 Min. Flush Dens. Ib./gal. 8.34 P.epor; Printed on. f1~S' st 29, 2005 12'.38 PIA JrtlUUU BJ Services JobMaster Program Version 3.00 Job Number: 1212646468 Customer: Teck Cominco Alaska Incor Well Name: NB-01 3rd stage) PRC Chart - Frac 5 0 3000 40 ~ ~ 4 30 •N °' " rL ~'~(~o ~ ~ 4~f` N 0 1000 o H - ~~ c m ~ ' ' y ~ ~ _ ~ 3 v ~ ~; 20 _ _ ; ._ ca ~ m m a ~ ev ~ ~ v N . ~ ~ ~~ ~~ ~ v~ •-• 2 y tC ^ to °--' 1000 o ~ t•' ~; ~. i ; ', ~; i '~ a v o ~ 2000 ~ d ,~ i c N `~ = ~ 10 -------- -- ~--- F ~ J' i m r ~" ~+' ~N 1 -~ ` - ,~ ~, ~ ' `' ' 0 0 ~tA~,~,. ~~~ ~ ~ ~ ~ ~ ~ ~._ L- - L- _ ;'"' ~,~- ~ '°, 0 3000 0 10 20 30 40 Elapsed Time (min) • BJ Services Job Start: Monday, August 29, 2005 ~ ~ BJ Services JobMaster Program Version 3.00 . Job Number: 1212646468 Customer: Teck Cominco Alaska Incor Well Name: NB-01 3rd stage) 5000 10 Nolte Plot 50 ~ 10 1000 ~. ~- ~ a , .-. ~ r cn ~ L 100'. - N ,. ~ 5 ~ a -a ~ as z - _ m 10 ~ 1~ 0 ~'~ - ~~ ,i '~ ~li~:.,.i .. 10 Elapsed Time (min) 40 ~ 30 ~ .-. a. ~ ~ ~ ~. ~ °: 5 ~ OC ~ 20 N ~ ._ 00 0 10 0 -~ 0 BJ Services Job Start: Monday, August 29, 2005 ~ ~ BJ Services JobMaster Program Version 3.00 Job Number: 1212646468 Customer: Teck Cominco Alaska Incor Well Name: NB-01 3rd stage) MD=2070 ft, Slurry/Sand are bbl/lbm - 0 Design Actual Stage 619.0 22483 90.0 37.0 40.0 72.0 105.0 117.0 109.0 as n - 1000 - 2000 600.8 Slurry 23123 Sand 89.3 01. Pad 37.1 02. Slug 43.1 03. Pad 71.7 04. 1st Conc. 20/40 Wh 111.3 05. 2nd Conc.20/40 VVh 125.0 06. 3rd Conc. 20/40 Wh 74.6 07. 4th Conc. 20/40 Wh dR 7 (1R FI l l~N BJ Services Job Start: Monday, August 29, 2005 Frac Data Summary Customer: Teck Cominco Customer Rep: Steve Bumgardner Weill Field NBO-1 Job Date: 28-Aug-OS Size/wt Len th bblJft bbls Casin 5 tit" 155# 1820 0.0238 43.3 OA 0.0 0.0 0.0 Volume to To Perf 43.3 1st Attem t 2nd Attem 3rd Frac Volume to till 0 0 0 STP 2090 2250 2660 Rate 24 23.4 24 FG - 1.51 L60 Volume 242 68 622 ET(ci;Startu 0.1 2.3 l.0 ET~a Shutdown 12.0 11.0 31.0 Pump Time 11.4 8.7 30.0 Break Pressure 3007 - 1600 ISIP - 2006 2170 1 min SIP - - 1657 5 min SIP - - 1266 10 min SIP - - 1.171 15 min SIP - - 1117 Closure time - - 4.5 Pclosure (surf.) - - 1248 FG closure - - 1.10 Efficiency - - l2% STP STP ~~ Formation: Wolverine Shale IntervaUStage: Stage 4 - 4 BHST: 68°F BJ Rep: David Archuleta / Gabriel Coria 1 To Perf 1 1820 1820 ft Bottom Perf 1900 1900 ft ?vlid Zone 1860 1860 ft Gross Interval 80 ft Net Interval 60 ft Fluid SG / HH 1 807 si Shotslfoot 6 360 holes Size 0.60 inch 1 150 Pad 152 Pad STP( si) 2660 2600 2540 2475 2 115 1 115 1 Rate(b m) 24 19 17 13.4 3 131 2 p 132 2 4 122 2.5 g 123 2.5 Program 36,330 Ibs ~ 5 91 3 97 3 Computer 35,333 Ibs 2.65 SG 6 43 Flush 43 Flush Blender 35,333 Ibs 0.0452 Ibstbbl BH Sand 35,333 Ibs Dirty bbls 976 Start Pum in ~~ 2:28 PM (1st) Ptaecd 97%~ b dcsi n Clean bbls 932 End Pum in ~a 4:53 P.M (3rd) Comments: t st t~ttem t: um ed 242 bbls water and 2400 Ibs sand (1800 lb slu ). Had to shut down because 2" ball valve was washed out and had full return at the tank. Chan ed the valve. 2nd attem t: um ed 68 bbls of water (pad) and had to to shut down a ain due to a leak on the same valve. On the 3rd ahem t um ed 35333 Ibs sand and 622 bbls water :VIaY. sand cone was 3 nne. Total Volumes 3 attempts: sand was 37733 and water was 432 bbls _ __ )~ TION TREATMENT REPORT r Date_~~AUG-05 _ District Kenaj Lease North Basin No. 1 Field DeLono Mountains. _ County De Long Mts -State Alaska ., _ F.Receipt 1 12 264650 Customer Tec ominc Alaska Incomeorated Well Name_ North Basin No. 1 __ Location Sec 18 31NR18W KRM _ Stage No 1 _ Well API _ -API 50073200200000 WELL DATA Geometry Type TUBULAR Packer Type Weri Type: NEW Well Class: Tubular Type OD Weight Ib CSG 5.5 15.5 4.95 Packet Depth GAS Grade Top 0 FT Depth TD/PB: 2667 Bottom ~ 3500 Top 1860 1820 Fprmation; Wdverine Shale PerFlntervals Bottom SPF Diameter 1900 6 .6 1840 6 .6 TREATMENT DATA Fluid Type Fluid Desc Pumped Volume{Gals) Prop. Description Volume Pumped{Lbs) LIQUID PUMPED AND CAPACITIES IN BBLS. aaD Fresh Water 15,624 Sand, White, 20!40 37,722 TREn7MENT F~UiD Fresh Water 23,604 Total Prop Qty. 37,722 revious Treatment NA Previous Production ~N ? Hde Loaded W ith_Fresh Water ~. ,_ Treat Via: Tubing [using ~nul. tubing & Anul. ^ Ball Sealers:_ 0 _ In_~_.,_Stages Type _ ~._ Au~aliary Materials sEE REC. Tubing Cap. 0 Casing Cap. 43 Annular Cap. 0 Open Hole Gap. 0 Fluid to Load 0 Pad Voume 372 Treating Fluid 562 Flush 42 Overflush -1 Fluid to Recrnrer 976 PROCEDURE SUMMARY Time ~/pM Treating Pressure-Psi Surtace Slurry ggLS. Pumped Slurry Rate BPM Cow STP Annulus Stage Total 14:22 80 0 92 0 24 O en Well Head/Start Pad 1429 1954 0 33 92 23.9 Start 1.5 # 20/40 W hits 14:30 1822 0 60 125 23.9 Start Pad 14:31 1814 0 135 23.8 1.5# 20!40 on Perfs. 14:33 1865 0 62 185 23.9 Start 1# 20140 White 14:34 1815 0 228 24 1# 20/40 on Perfs. 14:35 1800 0 247 0 Shut down 2" ball valve washed out 15:09 1390 0 68 0 23.9 Re-start Pad 15:14 1894 0 68 0 Shut down 2" ball valve leakin 16:17 289 0 152 0 24 Re_Start Pad 16:22 1988 0 43 24 Pad on Perfs. 16:26 2061 0 115 152 24 Start 1# 20/40 White 1628 1886 0 195 24 1# 20/40 on Perts. 16:31 1799 0 132 267 24.2 Start 2# 20/40 W hits 16:33 1788 0 3 i 0 24 2# 20/40 W hits on Perts. 1637 1812 0 123 399 24 Start 2.5# 20140 16:38 1865 0 442 24 2.5# 20/40 W hits on Perts. 16:42 2024 0 97 522 24 Start 3# 20/40 White 16:43 2495 0 565 24 3# 20/40 W Mite on Perfs. 16:46 2630 0 42 619 24 Start Flush 16:48 2890 0 661 0 Shut Down ISDP-2170 16:49 1 Min. si-1657 16:53 5 Min. si-1266 16:58 10 Min. si-1171 17:03 15 Min. si-1117 Renort Priitat? gyn. August 29. 2000 9'.~-5 PA4 JrBOGO ~ j BJ Services JobMaster Program Version 3.00 . Job Number: 121264650 Customer: Teck Cominco Alaska Incor Well Name: NB-01 (4 th stage) PRC Chart -Main Frac ~ooo r- 40 3C 2000 E H a ~ a -- v ~, 2I N ~ a ~ ~ ~ 0 1000 1 0 i ~ 1000 ~I c ~I :r •N ;~ a ~I ~ ~I `~ a 2 v m '-' ca •+ H ~~ o vs ~ a ~, ~ 2000 = c `~ am 1 -1 0 ~ 3000 Job Start: Monday, August 29, 2005 BJ Services v 10 20 3 V ~.,, 0 Elapsed Time (min) BJ Services JobMaster Program Version 3.00 Job Number: 121264650 Customer: Teck Cominco Alaska Incor Well Name: NB-01 (4 th stage) Nolte Plot 5000 r- 10 1000 .-. N N ~ a L 100 5 N ~ N ~ a ~ as Z _ m 10 50 40 30 ~ as 20 N ~~~, 10 1 0 10 N 5 a c oi] 0 BJ Services Job Start: Monday, August 29, 2005 10 Elapsed Time (min) 2400 2200 2000 ~\ . r..~ L^/1 ?-~I \~ ~ 1800 C/1 L/1 w Q~ 1600 U 1400 1200 1000 0 Nolte G Time 350 300 250 • 200 150 a ~7 100 50 0 MinFrac- NB01-4 - (1129/2005 0.3 0.6 BJ Services JobMaster Program Version 3.00 Job Number: 121264650 Customer: Teck Cominco Alaska Incor Well Name: NB-01 (4 th stage) MD=1820 ft, Slurry/Sand are bblllbm Slurry Sand 01. Pad 02. 1st Conc. 20/40 Wh 03. 2nd Conc.20/40 Wh 04. 3rd Conc. 20/40 Wh v~. 4th conc. ~ °~t~=~~ 'v`16h 06. FLUSH BJ Services Job Start: Monday, August 29, 2005 BJ Services JobMaster Program Version 3.00 ' Job Number: 121264650 `` Customer: Teck Cominco Alaska Incor Well Name: NB-01 (4 th stage) 3000 50 40 4 3 2000 .-. .N a r a F- 1000 0 ~ 30 a N 20 0 10 0 5 10 Elapsed Time (min) 15 ea ,o 2 ~ fY .-. ~ tin c fl. ~ ~_ ~m ca 1 m ' 0 20 BJ Services Job Start: Monday, August 29, 2005 1 st attempt - PRC-Chart Frac ~' BJ Services JobMaster Progrart~ Version 3.00 . Job Number: 121264650 Customer: Teck Cominco Alaska Incor Well Name: NB-01 (4 th stage) 2nd attempt - PRC Chart - Frac 3200 40 5 0 3000 4 30 --- -_ _ - - - - - a -- ~1 a 1000 a H ?~,r~;~ 2 V I ~, P _o ~ R! _ _ N E a ~ - ~ H - ~ as 20 ~ a o R ~ ~ _ ,_ _ _ __ _ m v ._ ~ v o j ,,,~ 2 N ~ o .y o ~ °~ '-' >+ a 2000 = r 1000 ' ~ o. ~ 10 -_ - _ - _-~ y om 1 0 0 L~ .. _, _ _ _L_-- - ~= 0 3000 0 5 1 0 Pl~psed Time (min) BJ Services Job Start: Monday, August 29, 2005 ~'~ '~~ ~t ~ ~~~~ ~i jji ~ ~ ~ ~ 0 ),,, ~ ~ ~~~ ? ~) ,'~, ~ ~ L>WL~7~ O~ ~ t7ro-7 COI~TSFiRQA'1`I011T COD'Il~'IISSIOI~T ~~ FRANK H. MURKOWSKI, GOVERNOR ~~ 333 W. 7"' AVENUE, SUITE 100 ~ ANCHORAGE, ALASKA 99501-3539 ~ PHONE (907) 279-1433 FAX (907) 276-7542 R.C. Gardner Sr. Technical Advisor Teck Cominco 3105 Lakeshore Drive, Building A Anchorage, Alaska 99517 Re: NB-O1 Sundry Number: 305-256 Dear Mr. Gardner: Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. Please provide at least twenty-four (24) hours notice for a representative of the Commission to witness any required test. Contact the Commission's petroleum field inspector at (907) 659-3607 (pager). As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls o holiday or weekend. A person may not appeal a Commission decis' Superior Court unless rehearing has been requested. ~~ ~. K. DATED this)/ day of August, 2005 Encl. .~ tl~ ~~31-e~ STATE OF ALASKA ALA OIL ANQ GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS ~n nnc ~~ stn '" ~~ '"'L_~QJ , ~~ 1. Type of Request: Abandon Suspend Operational shutdown Pertorate ~ ~, Waiver Other Alter casing ^ Repair well ^ Plug Perforations ^ Stimulate Q Time Extension ^ Change approved program ^ Pull Tubing ^ Pertorate New Pool ^ Re-enter Suspended Well ^ 2. Operator Name: 4. Current Well Class: 5. Permit to Drill Number: TECK COMINCO ALASKA INCORPORATED Development ^ Exploratory ^~ 205-095 ~ 3. Address: Stratigraphic ^ Service ^ 6. API Number: ~' 3105 LAKESHORE DR. BLDG A ANCHORAGE, AK 99517 50-073-20002-00 7. KB Elevation (ft): 9. Well Name and Number: 800 FT. NB-01 j 8. Property Designation: 10. Field/Pools(s): NANA REGIONAL CORPORATION EXPLORATORY ,. 11. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD (ft): Effective Depth TVD (ft): Plugs (measured): Junk (measured): 2745 2745 2714 2714 NONE NONE Casing Length Size MD TVD Burst Collapse Structural Conductor 75 13 3/8 75 75 Surtace 694 8 5/8 694 694 2950 1370 Intermediate Production 2728 51/2 2728 2728 4810 4040 Liner Pertoration Depth MD (ft): Pertoration Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): 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 ^ BOP Sketch ^ Exploratory ~ Development ^ Service ^ 14. Estimated Date for 15. Well Status after proposed work: Commencing Operations: 8/29/2005 Oil ^ Gas Q Plugged ^ Abandoned ^ 16. Verbal Approval: Date: WAG ^ GINJ ^ WINJ ^ WDSPL ^ Commission Representative: 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact R.C. GARDNER Printed Name R.C. GARDNE (907)258-3446 Title SR. TECHNICAL ADVISOR Signature Phone Date 26-Aug-05 COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: ~~5 ~~ ~~ Plug Integrity ^ BOP Test ^ Mechanical Integrity Test ^ Location Clearance ^ Other. Subsequent F equ ed: ~ L^ L~ APPROVED BY ~ Approved by. COMMISSIONER THE COMMISSION Date: ~3i o..S ~ ~ Form 10-403 Revised 07/2005 Submit in Duplicate ~' • • Teck Cominco Alaska Incorporated Well No. NB-01 PTD : 205-095 Summary Perforating and Frac Schedule Proposed Perforations Picked perforations for NB-O1 using Neutron, Sonic, Gamma Ray, and CBL. Plan to shoot then frac the following: Stage I -Perf: 2640'-2660' (20'} 6 jspf, 122 shots Set composite bridge plug (CBP) @ 2600' Stage II - Perf: 2380'-2400', 2410'-2450' (60') 6 jspf, 364 shots, set CAP @2350'. Stage TII - Perf: 2070'-2080', 2110'•2120', 2170'-2180', 2200'-2210', 2250'-2270'. (70'), 2 jspf, 150 shots. Set CBP @ 2040'. Stage IV - Perf: 1820'-1830'& 1830'-1840' (Z-10' guns), 1860'-1900' (60'), 6 jspf, 364 shots. Each stage will be hydraulically fractured according to the following ~ schedule: ARI FASTFRAC-Advanced Resources IMernalionat, Inc. Red Dog Frac pe5ign __ _ - ForrnaHon Pro ernes Sand r F~,,:? Desl n Parameters E 600,000 /psi 72 Iblft ` Fracture Gradient 0.86 psi/ft 2 815 tt k a 0.3 and 0.03 dee ~ Target Sand Zone Depth Base Viscosity , 1 cp Frac Mult 1.0 ~ 19,500 Ibs Proppant Specific Gravity 2.65 Frs. G_r_a_d. 0.433 psi.tt Specific Density 22.10 Ibm/gal _ Perf Diameter 0.50 in. DI IaeemeM Number Perfs 480 TbID/CsOD ft Faeta t~t~i Pad 53"/0 Tbg Depth 2.375 - 0.0178 - Pump Rate 25 hpm - Ftm Depth 4.592 2,815.0 0.0232 65.4 Fracture Hei t 145 ft Total Rg 4 FtaCtUre Treatment Schedule Clean Sand Slurry Stage Cum Stage Cum Stage Cum Surf. Hyd Time Rate Conc. Rate Water Water Slurry Slurry Sand Sand Press. HP a e min i sa b m bb bbl bbl bbl Ib Ib i 427 1 tt 374 ppp 12.00 25.0 - 25.0 300.0 63 5 300 363 300 65 300 365 - 333 1 - 1,333 , 1,391 852 STAGEI 2.60 2 60 24.A 4 23 0.50 1 50 25.0 25 0 . 6Q9 424 65 430 , 3,835 5,767 1,323 810 STAGE 2 STAGE 3 . 2 75 . . 22.9 . 2.00 . 25.0 63.0 - 487 69 499 5,296 10,463 1,291 791 STAGE4 - 25.0 - 25.0 - 487 - 499 - 10,463 1,427 874 STAGE 5 - 25.0 - 25.0 - 487 - 499 - 70,463 1,427 874 STAGE 6 - 25.0 - 25.0 - - 487 - 499 - 10,463 1,427 874 STAGE T - 25.0 - 25.0 - 487 - 499 - 10,463 1,427 874 STAGE 8 - 25.0 - 25.0 - 487 - 499 - 10,463 1.427 874 pigp_ 2.55 25.0 - 25.0 , 64 551 64 562 - 10.463 1,427 874 22.50 551 562 70,463 a i ~' • • E & P SERVICES, INC. August 30, 2005 Alaska Oil and Gas Conservation Commission 333 West 7~' Avenue, Suite 100 Anchorage, Alaska 99501 Attention: Tom Maunder, P. E., Petroleum Engineer Re: Weekly Status Report, Teck Cominco Alaska Incorporated Week of August 21-August 27, 2005 Wells Nos. NB-O1 and NB-02 Dear Mr. Maunder: ~ ~~s '-~~5~ Please find attached the above referenced weekly status report. ,~ If you have any questions, please contact the undersigned at 907 258 3446 at your convenience. Sincerely R. C. Gardner Fairweather E & P Services, Inc. For Teck Cominco Alaska Incorporated Attachment Cc: Terry Booth, Teck Cominco 2000 East 88th Avenue • Anchorage, Alaska 99507 • (907) 258-3446 • FAX (907) 279-5740 650 North Sam Houston Parkway East, Suite 505 • Houston, Texas 77060 • (281) 445-5711 • FAX (281) 445-3388 t • • Weekly Status Report Teck Cominco Alaska Incorporated Red Dog Shallow Gas Exploration Project Wells Nos. NB-Ol and NB-02 Week of August 21-August 27, 2005 Well No. NB-O1 PTD 205-095 Report Period 0001 hrs August 21 to 2400 hrs August 27, 2005 Ran cased hole neutron log from 2674 ft to 0015 ft. Selected Kivalina formation perforation intervals. Awaiting perforating and frac equipment working at Well No. NB-02 at close of report period. Well No. NB-02 PTD 205-096 Report Period 0001. hrs August 21 to 2400 hrs August 27,2005 Ran cased hole neutron log from 2945 ft to 0030 ft. Perforated 2895 ft to 2940 ft interval for injection test to assess interval as possible future produced water disposal zone. Broke down perfs at 2077 psi. Ran injection test with water as test fluid. Interval would not accept fluid below frac pressure. Selected Kivalina formation perforation intervals for frac and production test. Sequentially perforated and fraced the following intervals: Stage I (@ 6 jspf): 2895'-2915'; 2920'-2940'; 2810'-2830'; 2750'-2770'; 2690'- 2710'. Stage II (@ 2 jspf): 2170'-2180'; 2125'-2135'; 2070'-2080'; 2020'-2030'; 1900'- 1920' . Stage III (@ 2 jspf): 1690'-1710'; 1555'-1575'. Stage IV (@ 6 jspf): 1210'-1230'; 1130'-1150'. Frac reports to be submitted with Report of Sundry Operations. Continuing with perforating and frac operations at close of report period. Report S fitted b R. C. Gardner Fairweather E & P Services, Inc. ~ . ,. • • E & P SERVICES, lNC. August 24, 2005 Alaska Oil and Gas Conservation Commission 333 West 7~' Avenue, Suite 100 Anchorage, Alaska 99501 Attention: Tom Maunder, P. E., Petroleum Engineer Re: Weekly Status Report, Teck Cominco Alaska Incorporated Week of August 14-August 20, 2005 Wells Nos. NB-Ol and NB-02 Dear Mr. Maunder: Please find attached the above referenced weekly status report. ;,-- s; If you have any questions, please contact the undersigned at 907 258 3446 at your convenience. Sincerely ~~ R. C. Gardner Fairweather E & P Services, Inc. For Teck Cominco Alaska Incorporated Attachment Cc: Jerry Booth, Teck Cominco 2000 East 88th Avenue • Anchorage, Alaska 99507 • (907) 258-3446 • FAX (907) 279-5740 650 North Sam Houston Parkway East, Suite 505 • Houston, Texas 77060 • (281) 445-5711 • FAX (281) 445-3388 • .Weekly Status Report Teck Cominco Alaska Incorporated Red Dog Shallow Gas Exploration Project Wells Nos. NB-Ol and NB-02 Week of August 14-August 20, 2005 ~--~ Well No. NB-Ol PTD 205-095 Report Period 0001 hrs August 14 to 2400 hrs August 20, 2005 Ran CBL-good cement bond through entire cemented interval. Otherwise, well idle; awaiting arrival of frac equipment.. Well No. NB-02 PTD 205-096 Report Period 0001 hrs August 14 to 2400 hrs August 20,2005 Air-hammer drilled 7 7/8" hole to 2601'. Made trip to change to tri-cone due to increased water flows. Air-rotary drilled 7 7/8" hole 3110 ft. Geologists determined that 3110 ft is TD, as hole as been advanced sufficiently into melange. Conditioned hole for logs. RIH with triple combo, but encountered bridge at 2634 ft. Logged from 2634 to shoe of surface casing. Made clean-out run and reamed from bridge to TD. Subsequent logging attempt still unable to get past bridge at 2634 ft. Decision made to log lower section of hole with neutron tool after casing run. Cleaned out hole for casing. Ran 142 joints of 5 '/2", 15.5 lb, J-55, LT&C, Range 1 casing to 3076 ft. Had to wash casing down from bridge at 2634. Cemented casing with 146 sxs Cold Set III cement, followed by 295 sxs Type I cement. Displaced cement with water and bumped plug. Had good returns of formation water at surface during cement job, but no returns of cement. WOC 12 hrs. Installed 5 '/2" casing head and 3000 psi wp frac valve. Ran CBL. Found good cement bond through and above all zones of interest Top of cement at 420 ft. Prep to run cased hole neutron log at report time. Encountered numerous water-filled fracture zones in 7 7/8" hole section. Formation: Kivalina formation, shale and siltstone, black, calcareous Report. Submitted y ~~ R. .Gardner Fairweather E & P Services, Inc. • • Weekly Status Report Teck Cominco Alaska Incorporated Red Dog Shallow Gas Exploration Project Wells Nos. NB-O1 and NB-02 Week of August 7-August 13, 2005 Well No. NB-Ol PTD 205-095 ~--~ Report Period 0001 hrs August 7 to 2400 hrs August 13, 2005 Well idle-awaiting arrival of frac equipment. Well No. NB-02 PTD 205-096 Air-rotary drilled 12 '/a" surface hole to 480 ft, at which point bit penetrated water-filled fracture zone. Water influx did not flow to the surface with compressors turned off, but with sufficient air supplied to clear the hole of water and cuttings, water migrated to the surface outside the conductor pipe. Continuing to drill under these conditions would have jeopardized the integrity of the drilling pad under the rig in a short time. Decision was made to run surface casing at 480 ft. Ran 21 joints of 8 5/8", 24 lb, K-55, STC, Range 1 casing. Cemented casing with 399 sxs Cold Set II cement. Displaced casing with 37 bbls water. Good cement return to surface. WOC 12 hrs. Made written report to AOGCC on reason for setting short surface string. Cuk'off conductor and installed 8 5/8" casing head. Nippled up and tested diverter. Drilled out 8 5/8" csg and float shoe. Air-hammer drilled 7 7/8"hole to 2562 ft at close of report period. Continuing to drill. Encountered numerous water-filled fracture zones in 7 7/8" hole section. Formation: Kivalina formation, shale and siltstone, black, calcareous Report Submitted by: R. C. dner Fairweather E & P Services, Inc. ~,•c ~RIR~~fliNE~ E & P SERVICES, INC. August 8, 2005 • Alaska Oil and Gas Conservation Commission 333 West 7'a' Avenue, Suite 100 Anchorage, Alaska 99501 Attention: Tom Maunder, P. E., Petroleum Engineer • e, t ~ Re: Weekly Status Report, Teck Cominco Alaska Incorporated Week of July 31-August 6, 2005 ~~~~41 and NB-02 Dear Mr. Maunder: Please find attached the above referenced weekly status report. If you have any questions, please contact the undersigned at 907 2S8 3446 at your convenience. Sincerely ` ~ __. R. C. Gardner Fairweather E & P Services, Inc. For Teck Cominco Alaska Incorporated Attachment Cc: Jerry Booth, Teck Cominco ~;uG ~ ~ zoo ~~s~a Cli4 Osk C~r~s. C~m~ti~s~o.: s~~C~sJ°E ~~~* 2000 East 88th Avenue • Anchorage, Alaska 99507 • (907) 258-3446 • FAX (907) 279-5740 650 North Sam Houston Parkway East, Suite 505 • Houston, Texas 77060 • (281) 445-5711 • FAX (281) 445-3388 ~ • • a Weekly Status Report Teck Cominco Alaska Incorporated Red Dog Shallow Gas Exploration Project Wells Nos. NB-O1 and NB-02 Week of July 31-August b, 2005 ,_~ Well No. NB-O1 PTD 205-095 Report Period 0001 hrs July 31 to 2400 hrs August 6, 2005 Air-rotary drilled 7 7/8" hole to 2745 ft. Geologists determined that desired section of Kivalina formation had been penetrated to test gas potential after frac. Hole TD at 2745 ft. Made wiper trip and ran wireline logs. Ran triple combo from shoe of surface casing to TD, and gamma ray through surface casing interval. Cemented casing with 146 sx Cold Set III cement followed by 237 sxs Type I cement. Displaced cement with 65 bbls water. Good cement returns to surface. WOC 12 hrs, RIH and tagged top of cement at 2714 ft. Begin rig move to NB-02 location. Hole made approximately 18 gpm water while drilling approaching TD. Formation: Kivalina formation, shale and siltstone, black color, calcareous. Well No. NB-02 PTD 205-096 Moved in and rigged up Major Drilling Rig 070-001. Installed and tested diverter. Cleaned out conductor to shoe and found shoe collapsed (probably due to over-zealous driving during installation). Milled out shoe and re-cemented shoe. Preparing to resume drilling surface hole. Report Submitted by: l'~< R. C. Gardner Fairweather E & P Services, Inc. • • Weekly Status Report ~~~~~ Teck Cominco Alaska Incorporated auG a ~ 2005 Red Dog Shallow Gas Exploration Prof ~~ 0'I & Gas Cons CQm~issian Anchorage Wells Nos. NB-o l and NB-Q2 Week of July 24-30, 2005 ,.,---- Well No. NB-Ol PTD 205-095 Report Period 0001 hrs .July 24 to 2400 hrs July 30, 2005 Ran 31 jts, 8 S/8", 24 lb, K-S5, ST&C, Range 1 casing to 694 ft. Base of permafrost at approximately 620 ft. Cemented casing with 614.5 sx Cold Set II. Displaced cement with 42 bbls water, had good cement returns to surface. Cut off conductor at G.L., nipple up 8 S/8" starting head, test diverter, RIH and tag cement at 647 ft. Drilled out cement and air-rotary drilled 7 718" hole to 2014 ft @ 2400 hrs, July 30,2005. Drilling ahead Hole made approximately 13 gpm water through drilled interval. Primary compressor and booster handled water OK. Drilling slowed by intermittent booster compressor mechanical problems. Formation: Kivalina formation, shale and siltstone, black color, calcareous. We11 No. NB-02 PTD 205-096 No Activity Report Submitted by: ~~° ~~.~ R. C. ardner Fairweather E & P Services, Inc. Notice of Recusal • + Subject: Notice of Recusal From: John Norman <john_norman@admin.state.ak.us> Date: Wed, 27 Jul 2005 15:38:43 -0800 To: Cathy P Foerster <cathy foerster@admin.state.ak.us>, Dan T Seamount <dan_seamount@admin.state.ak.us>, Kevin A Brooks <kevin_brooks@admin.state.ak.us> CC: Jody J Colombie <Jody_colombie@admin.state.ak.us>, Winton G Aubert <wnton_aubert@admin.state.ak.us>, Thomas E Maunder <tom_maunder@admin.state.ak.us>, Stephen F Davies <steve_davies@admin.state.ak.us>, Robert P Crandall <bob_candall@admin.state.ak.us>, Mary J Williamson <Jane Williamson@admin.state.ak.us>, Dan T Seamount <dan_seamount@admin.state.ak.us>, John D Hartz <jack hartz@admin.state.ak.us>, James B Regg <jim_regg@admin.state.ak.us>, Kari J Wheeler <kari wheeler@admin.state.ak.us> I am hereby recusing myself from participation in any matters coming before the Commission involving the shallow gas exploration program currently being conducted by Teck Cominco Alaska Incorporated, in Northwest Alaska, in the area around the Red Dog lead and zinc Mine. The reason for this recusal is that prior to joining the Commission I worked on this specific project for the operator, Teck Cominco Alaska; and, therefore, it will be inappropriate for me to participate in decisions of the Commission relative to this project. All applications, spacing hearings and other issues which may come before the Commission related to this project, including but not limited to Well Nos. NB-O1 and NB-02, are to be handled exclusively by Commissioners Seamont and Foerster without any involvement by m//e~~.~~ Copies of this notice shall be placed in all relevant files. (~ Q ~ ` ~,,.J~,~ John K. Norman Chairman 1 of 1 7/28/2005 8:17 AM ~, E & P SERVICES, INC. • .1rJii.. ~ ~ Z~i~~ July 25, 2005 Alaska Oil and Gas Conservation Commission 333 West 7~' Avenue, Suite 100 Anchorage, Alaska 99501 Attention: Tom Maunder, Petroleum Engineer Re: Weekly Status Report, Teck Cominco Alaska Incorporated Week of July 17-23, 2005 Wells Nos. NB-O1 and NB-02 Dear Mr. Maunder: Pleased find attached the above referenced weekly status report. If you have any questions please contact the undersigned at 907 258 3446 at your convenience.. Sincerely, - ~ ~ R. C. Gardner Fairweather E & P Services, Inc. For Teck Cominco Alaska Incorporated Attachment Cc: Jerry $ooth, Teck Cominco ~~ask~ ~~i Cis ~~rt~k l~~n~atiss~o~~ 2000 East 88th Avenue • Anchorage, Alaska 99507 • (907) 258-3446 • FAX (907) 279-5740 650 North Sam Houston Parkway East, Suite 505 • Houston, Texas 77060 • (281) 445-5711 • FAX (281) 445-3388 • • Week of July 17-23, 2005 Well No. NB-Ol PTD 205~,1~5 ©~t 5 ~~..~ ~ ja 6 Teck Cominco Alaska Incorporated Red Dog Shallow Gas Exploration Project Wells Nos. NB-01 and NB-02 Report Period 0001 hrs July 17 to 2400 hrs July 23, 2005 Moved in and rigged up NANA-Dynatec Rig 070-001 Spudded well at 0045 hrs on July 17, 2005 Air-rotary drilled 12 '/a" hole to 704 ft NID Made short trip and POH for casing Prep to run 8 5/8" casing at 2400 hrs, July 23, 2005 Drilling slowed by booster compressor problems Weekly Status Report Formation: Kivalina formation, shale and siltstone, black color, calcareous. Well No. NB-02 No Activity PTD 205 ~~~~~ ~~~.~ Report: Submitted by: ~~- ~`~ R. C. ardner Fairweather E & P Services, Inc. r ;' ~ ~ . ~ k ~ ," ~ ~ r, ~ ~ FRANK H. MURKOWSKI, GOVERNOR ~~~ ~I47~~ OII/ ~ t][~~7 333 W. 7'" AVENUE, SUITE 100 C011TSERQA'1`IO1~T COIrII~IISSIOIQ ANCHORAGE, ALASKA 99501-3539 ~ PHONE (907) 279-1433 FAX (907) 276-7542 Mr. Rob Scott General Manager Teck Cominco Alaska Incorporated 3105 Lakeshore Drive Bldg A, Suite 101 Anchorage, AK 99517 Re: NB-O1 Teck Cominco Alaska Incorporated Permit No: 205-095 Surface Location: 1000' FEL, 3750' FSL, Sec. 18, T31 N, R 18W, KRM Bottomho Location: 1000' FEL, 3750' FSL, Sec. 18, T31 N, R 18W, KRM Dear Mr. t • ~~ Enclo ed is the approved application for permit to drill the above referenced exploration well. This permit to drill does not exempt you from obtaining additional permits or approvals required by law from other governmental agencies, and does not authorize conducting drilling operations until all other required permits and approvals have been issued. In addition, the Commission reserves the right to withdraw the permit in the event it was erroneously issued. In you application, Teck Cominco requests waivers to four Commission requirements. Attached please find a tabular listing of the requested waivers, a citation for the relevant regulation, and an analysis of each request. Based on the information provided, the Commission approves these waivers. Please note these waiver approvals are specific to NB-O1. Waiver requests for other planned wells will be evaluated on a case-by-case basis. A lithology log and one set of dry cuttings samples are required for this well. Please refer to regulation 20 AAC 25.071 for more specific instructions. All dry ditch samples sets submitted to the Commission must be in no greater than 30' sample intervals from the base of the conductor pipe and 10' sample intervals through target zones. A weekly status report is required from the time the well is spudded until it is suspended or plugged and abandoned. The report should be a generalized synopsis of the week's activities and is exclusively for the Commission's internal use. • • Operations must be conducted in accordance with AS 31.05 and Title 20, Chapter 25 of the Alaska Administrative Code unless the Commission specifically authorizes a variance. Failure to comply with an applicable provision of AS 31.05, Title 20, Chapter 25 of the Alaska Administrative Code, or a Commission order, or the terms and conditions of this permit may result in the revocation or suspension of the permit. Please provide at least twenty- four (24) hours notice for a representative of the Commission to witness any required test. Contact the Commission's petrole field inspector at (907) 659- 2714 or 659-3607 (pager). DATED this day of July, 2005 cc: Department of Fish 8v Game, Habitat Section w/o encl. Department of Environmental Conservation w/o encl. Exploration, Production and Refineries Section • Waiver Requested Regulation Recommendation and Discussion 1-Underbalanced 25.033(b) and Approval of this waiver is recommended. This drilling 25.033(1) well is planned to be drilled using air. A similar air- drilling program has been previously employed drilling shallow wells for coalbed methane (CBM). Teck Cominco (TC) provided a core study performed at UAF designed to determine the porosity and permeability of cores obtained in nearby mineral exploration wells. The study determined that the "best" permeability in the samples examined was about 0.2 md. With such low permeability, it is most unlikely that natural flow would occur while drilling with air. TC has provided a description of the equipment to be employed. In the unlikely event of a flow, TC plans to have 1500 bbls of water in tanks on site to allow the well to be killed. Based on the submitted information, it is determined that the proposed underbalanced drilling operations can be conducted without loss of well control. Underbalanced operations are a roved er 20 AAC 25.033 i . 2-Employing a 20.035(c) and Approval of this waiver is recommended. In air "rotating head" rather 25.035 (h) (2) drilling operations, a rotating head is employed to than a diverter. direct return flow from the well away from the rig floor. A rotating head is a diverter whose design allows the annulus to be continuously sealed while drilling operations are being conducted. Based on the submitted information, it is determined that use of the proposed rotating head will provide an equally effective means of diverting flow away from the rig floor per 20 AAC 25.035 (h) 2. 3-Not to employ a 25.035 (e) and Approval of this waiver is recommended. A BOP BOP 25.035 (h) (1) is employed to provide additional control ability if the hydrostatic pressure of the drilling fluid were insufficient to contain any formation pressure. The porosity and permeability studies provided by TC have shown that the rock is very "tight". Given the low permeabilities determined, conventional flow is essentially impossible. Based on the submitted information, it is determined that equipment planned to be used by TC is appropriate for the anticipated subsurface environment and that this equipment will provide an equally effective means of well control per 20 AAC 25.035 h 1 . 4-Requiring near 25.061(a} and Approval of this waiver is recommended. The surface seismic 25.061 (c) general area is a "hard rock" mineral province. TC surveys has conducted an extensive mineral core exploration effort in the area resulting in over 100 core holes. No shallow gas or abnormal pressure hazards were encountered during this drilling ro am. • u Based on the submitted information, it is determined that the mineral exploration drilling program conducted by TC is an equally effective means of determining the likelihood of potential shallow gas per 20 AAC 25.061 (c). TEM with SFD 7/12/2005 ~ • E & P SERVICES, INC. June 7, 2005 Alaska Oil and Gas Conservation Commission 333 W. 7`h Avenue, Suite 200 Anchorage, AK 99501 Attention: John Norman, Chairman Re: Application for Permit to Drill :Teck Cominco Alaska Incorporated, Exploration Wells Nos. NB-O1 and NB-02. Gentlemen: Teck Cominco Alaska Incorporated (Teck Cominco) submits herewith the above referenced Applications for Permits to Drill in duplicate, and the requisite filing fees: At the time of this application Teck Cominco does not have the required $200,000 blanket bond in place, however this bond will be issued shortly, and should be in place before the permits are issued. The exploration wells for which the applications are made will test the potential of the Kivalina formation to produce natural gas; the ultimate objective being to develop this resource (assuming commerciality can be demonstrated) as fuel for power generation at the Red Dog Mine. If this can be accomplished the environmental and economic benefits would be substantial, as at present the mine consumes approximately 18,000,000 gallons of diesel fuel annually. Because the gas is absorbed in organic rich shale units of the Kivalina formation, the drilling procedures used will closely resemble those used in coal bed methane operations. The shale has very low permeability and porosity, and will require hydraulic fracturing to start the de-sorbtion process. It is Teck Cominco's position, as well as the recommendation of Fairweather E&P Services, that the subject wells be drilled with air using a downhole hammer. 2000 East 88th Avenue • Anchorage, Alaska 99507 • (907) 258-3446 • FAX (907) 279-5740 650 North Sam Houston Parkway East, Suite 505 • Houston, Texas 77060 • (281) 445-5711 • FAX (281) 445-3388 fi • • In order to accomplish this, the following waivers will be required from the Commission: AAC 25.033(b) -requiring drilling fluid of sufficient density for over-balance AAC 25.035 -blowout prevention equipment requirements AAC 25.061(a) -requiring seismic surveys of near surface strata. AAC 25.066 -requiring gas detection on drilling rigs Thank you for your consideration of these applications. If you have any questions please contact the undersigned at 907-258-3446 or by email at bob(?ae,fairweather.com Sincerely, .. ~.~. R.C. Gardner Sr. Technical Advisor for Teck Cominco Alaska Incorporated Enclosures STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION PERMIT TO DRILL ~n nnr. ~~ nns !~+"1i~ a wv 1 a. Type of V'Jork: Drill x0 RedriH ~ 1 b. Current Well Class: Exploratory ~ Developgr4~~t~ O~ ~ ~ Itiple Zone ~ Re-entry ~ Single Zone Q ~ Stratigraphic Test ~ Service ~ Development Gas 2. Operator Name: ~ 5. Bond: Blanket Sin le WeU `~ , 1-1. Well Name and N~;mber: Teck Cominco Alaska Incorporated Bond No. f ~~ ,M NB-Ol 3. Address: 3105 Lakeshore Drive, B1dg.A, St. 101 fi. Proposed Depth: 12. FieldlPool(s): MD: 3000 N®3000 Exploratory ~ ~b ~, , 4a. Location of Wetl (Governmental Section): 7. Property Designation: ~ ~~ surface: ~ ~ ~ vl1 1000 FEL,3750 FSL,SEC.18,T.3IN,R18W,K Nana Re Tonal Cor oration Top of Productive Horizon: Same 8. Land Use Perrnit: 13. Approximate Spud Date: Nana Agreement Jul 1 2005 Total Depth: Same - 9. Acres in Property: 14. Distance to Nearest 66,000 Property: 4280- ft. 4b. Location of Well (State Base Plane Coordinates): 10. KB Elevation 15. Distance to Nearest Well Surface:x-582, 242 " y- 5,150, 884 ' Zone-7 ~ (Height above GL):a rox. 6 feet Within Pool: 16. Deviated wells: Kickoff depth: feet 17. Maximum Anticipated Pressures in psig (see 20 AAC 25.038) N/A Maximum Hole Angle~ertlCaldegrees Downhole: g00 1 Surface: 1 S. Casing Program: Setting Depth Quantity of Cement ~ Size Cper~ratinr2c ,r, ~,~µ~,~, cp r f_ nr garkc - Hole Casing Weight Grade Coupling Length MD ND MD ND (including §tage data) . 18" 13'3/8°' 54.5 k-55 Weld 75' SUR ACE 75; 5' 25sx ermafrost 12 1 4' 8.5 8 24 k-55 ST+C 700' SUR ACE 700' 700' 700sx ermafrost 7 7 8" 5 1 2" 15.5 J-55 LT+C . 3000' SUR ACE 3000' 3000' 171sx ermafrost lus 367sx T eI 19. PRESENT WELL CONDITION SUMMARY (To be completed for Redrill and Re-Entry Operations) Total Depth MD (ft): Total Depth ND (ft): Plugs (measured): Effect. Depth MD (ft): Effect. Depth ND (ft): Junk (measured): Casing Length Size Cement Volume MD ND Structural Conductor Surface Intermediate Production Liner Perforation Depth MD (ft): Perforation Depth ND (it): 20. Attachments: Filing Fee BOP Sketch x Drilling Program Time v. Depth Plot Shallow Hazard Analysis Property Plat ~ Diverter Sketch C] Seabed Report ~ Drilling Fluid Program [] 20 AAC 25.050 requirements 21. Verbal Approval: Corn 'on Representative: Date 22. I hereby certify that t efioregoin is true and to the best of my knowledge. Contact Printed-Name Title ate ~~ t ~~. ~ ~ -+ ~ (~ Signature Phon Commission Use Only Permit to Drill API Number. Permit Approval ee cover letter for other Q Number: ,~~- C~ / ~ 50- ~~~ 2~J~L T-~ Date: l~ requirements. Conditions of approval : ~~~~(~, ~~ Ye No 7 j2 g~ s ~ ~ egwred Sam s requi d Yes ® No ~ .J14~td Id H s ide measures Yes ~ No ~ Directional survey required Yes ~'+~ No ~ ~~~(rx~-~e~-i-- SuYV~~ ~~_y Other . APPROVED BY ~ ~ ~ z7 Appro THE COMMISSION Date: DJ `~~ F -401 R ed 06/2004 -_... a C t,,. E e .. t~ ~. ~ ~ Submit inDuplirate • • RED DOG SHALLOW SHALE GAS EXPLORATION PROJECT ~ ~ Y Y rn ~ _ ~ _ ~ Sec 12 Z Z Sec 7 Sec 8 M M I- f... ~ 1 ~ I 1000' - Well Number NB-01 p-- I I 2 2' Well Number NB-02 Sec 13 Sec 18 b ~ I Sec 17 ~I I ~ I I ~ IN I I Sec 24 Sec 19 Sec 20 Well Coordinates are in Alaska State Plan Zone 7 in US Survey Feet Well Number NB-01 x= 582,242 y= 5,150,884 A Well Number NB-02 x= 583,714 y= 5,150,083 w • 1 • • Red Dog Shallow Shale Gas Project Background and Operations Summary Teck Cominco Alaska Incorporated (Teck Cominco) plans to drill two (2) shallow shale gas exploration wells in the North Basin Area, north of the Red Dog zinc mine in northwestern Alaska to test the potential for natural gas production from the black organic-rich shales of the Kivalina formation. The concept of de-sorbing natural gas from this formation was developed by Advanced Resources International, under contract to Tech Cominco, following extensive analyses of Kivalina cores taken from numerous core holes drilled as part of the ongoing mineral exploration work in the axes. If commercial gas production can be demonstrated, the potential environmental and economic benefits gained through development of the resource would be significant, as at present the Red Dog Mine consumes approximately 18,000,000 gallons of diesel fuel annually. The first step in this exploration project will be the drilling, fracing and testing of the aforementioned two wells in 2005. If results are encouraging, three additional wells would be drilled in 2006 to complete a standard five- spot pattern, followed by an extended production test period. The attached map shows the location of the two wells scheduled for 2005 (NB-Ol, and NB-02), as well as the. other well locations in the five-spot pattern. Red Dog Mine Shallow Gas Testing Program 2005 North Basin Access Roads 2005 Proposed Gas Testing Well Sites 2005 Initial Test Well Sites Follow-up Test Well Sites 2005 Proposed Access Road Alignments N2005 Proposed Alignment Follow-up Program Alignment p~~%2004 Proposed Road Alignment /~~% 300ft Creek Set-back Buffer NB2005-Gas-Test-Plan.apr 09 November 2004 • • • Teck Cominco Alaska Incorporated Summary Drilling Program Exploration Well No. NB-O1 Surface Location: 1000'FEL, 3750'FSL, Sec. 18, T.31N., R.18W., KRM x = 582,242 ft., y = 5,150,884 ft ASPC Zone 7 ' Synopsis: This well will be drilled to a total measured depth of 3000ft. to test selected zones in the Kivalina formation for natural gas. The :yell is prog.a:r.:ned as straight hole: The drilling contractor is Major Drilling of Salt Lake City, Utah. An Ingersoll -Rand RD-20 rig will be used on this well. Drilling Fluid: This well will be drilled with air using a downhole hammer. Drilling Hazards: No Abnormal pressures or other drilling hazards are anticipated. Tech Cominco core hole 1107 (drilled as a mineral exploration hole) is located approximately 250 ft. north of the NB-O1 location, and penetrated the complete interval that will be encountered in the NB-O1 well. Core hole 1107 was drilled without incident and without any well control equipment (none required in mineral exploration) using water as the drilling fluid.'A lithologic log of core hole 1107 is attached. Casing Program Conductor: A 13 3/8" conductor will be pre-set at 75' in an 18" hole during pad construction. The conductor will be cemented from the surface. Surface Casing: Hole size -12 '/o"; Casing - 8 5/8" 24# K-55, ST+C; Depth - 700' (Base of permafrost @ ~ 640' MD); Collapse: 1370psi; Burst: 2950psi Cement: 700sx Coldset II Production Casing: Hole Size - 7 7/8"; Casing 5 %Z", 15.5#, J-55, LT+C; Depth 3000' to surface; Collapse: 4040psi; Burst 4810psi; Cement: Lead - 171 sx Cold Set III, Tail - 367 sx Type I Cementing Program: See Attached • • Well Control: Since this well is being drilled with air, a Washington Series 2000 Rotating Control Head (Diverter) will be used from surface to TD. See attached data sheet. Shallow Gas: Shallow gas as considered in 20AAC 25.061(a) is not a factor in this well, as evidenced by numerous core hole penetrations in the North Basin as part of an extensive mineral exploration program in the area. The North Basin is not a typical petroleum province, in that the Kivalina formation overlies a mineralized zone. The gas that is the target of the well is absorbed within a dense shale body - of extremely low porosity and pe_r!1'1eability, and ~x,ill at ? m:n:mum reiluire extensive hydraulic fracturing to liberate. Drill Cuttings and Water Disposal: Waste water from drilling operations, fracturing, and production testing will be disposed of in the Red Dog Mine tailings pond. Approval for this disposal was granted by the EPA by letter dated October 27, 2004. Since this well will be drilled with air, and no drilling mud is involved, drill cuttings are basically uncontamintated rock fragments. This material will be trucked to the Red Dog solid waste disposal site. - • • Well Number NB-Ol Procedure 1. Hold pre-operations safety meeting, as per established Fairweather procedures. 2. Move-in and rig-up Major Drillinu RTC-20 rio and ancillu^r e^~u~ A„* 3. Nipple up diverter on 13 3/8" 3M x 13 3/8" S.O.W diverter head. Function test diverter on single joint of drill pipe. 4. RIH with hammer and drilling assembly to bottom of conductor. Function test diverter. 5. Hammer drill 12 %4" hole to 700' M.D. Sample cuttings as directed by ARI geologist. At 700 ft M.D. blow hole clean and P.O.O.H for surface casing. 6. Make up float shoe on 8 5/8" surface casing shoe joint. Run surface casing as directed. Rig up BJ cementers and cement surface casing as per cementing program. If cement does not circulate to surface, do top job as directed. Drain cement out of conductor! surface casing annulus to bottom of cellar. W.O.C as directed. 7. Cut off conductor at base of cellar and install 11" 3M x 8 5/8" S.O.W diverter head on surface casing. Function test diverter on single joint of drill pipe. 8. RIH with hammer and drilling assembly to float shoe. Close diverter and pressure test casing to SOOpsi for 15 minutes. Drill out float shoe, and drill? 7/8" hole to 3000 ft. M.D. Sample drill cuttings as directed by ARI geologist. At 3000' M.D., blow hole clean and P.O.O.H for logs. 9. Rig up Precision Energy Services wire line unit and run array induction; compensated sonic, gamma ray and caliper as directed. 10. Make up float shoe on 5 %2" production casing shoe joint. Run production casing as directed. Rig up BJ cementers and cement production casing to surface as per cementing program. Drain cement slurry out of 8 5/8" x 5 '/z" annulus to base of cellar. W.O.C. as directed. ~ • 11. Cut off surface casing at base of cellar and recover 8 5/8" diverter head and cut off casing: Install 7 1/16" 3M w/ lockscrews x 5 %2" S.O.W. tubing head and 7 1/16" 3M x 7 1/16" bore drilling valve. 12. Rig up Precision Energy Services wire line unit and run cement bond log from T.D. ' to 700' M.D. If necessary to achieve zonal isolation, squeeze production casing as per supplementary program to be prepared after analysis of bond log. 13. Zones to be perforated and fraced will be selected by ART geologists after analysis of open hole logs. Perforate selected zones and frac as per supplemental program to be prepared after analysis of open hole logs. 14. Completion and testing program will be prepared following analysis of open hole logs. ~ a DDH-1107 From To 0 10 10 2792.5 2792.5 2824 2824 2901 2901 2909 2909 2926 2926 3005 3005 3016 TD • • Drill Hole Geologic Summary Geology No Core Recovered MLk- Kivalina limestone/shale 368-388: Kayak facies non-talc shale with Calc-arenites 566-598: Kayak facies non-talc shale with Calc-arenites 619-668: Kayak facies non-talc shale with Calc-arenites 691-713: Kayak facies iron-caic shale with Caic-arenites 955-990: Kayak facies non-talc shale with Calc-arenites 1079-1114: Kayak facies non-talc shale with Calc-arenites 1625-1647: Kayak facies non-talc shale`with Calc-arenites 1851-1882: Kayak facies non-talc shale~with Calc-arenites 1980-2030: Kayak facies non-talc shale with Calc-arenites 2070-2195: Kayak facies non-talc shaletwith Calc-arenites 2694-2713: Kivalina-dominated Melange' Me- Melange: Multilithic: Kivalina, Siksikpuk, {pewik Mlk- Kivalina limestone/shale Me- Melange: Kivalina dominant Mlk- Kivalina limestone/shale Me- Melange: Multilithic: Kivalina, Siksikpuk, (pewik, Otuk Kss- Okpikrouk sandstone/siltstone r DDH-1107 Drill Hole Geologic Summary Date: 03-Jan-03 (Downhole Geophysical Log Available) Gas Gas Perm Perm From To Geology Sample scf/T Sample Range and 0 10 No Core Recovered 10 2792.5 Mlk- Kivalina limestone/shale 368-388: Kayak facies non-talc shale with Calc-arenites 398-554 4.88 566-598: Kayak facies non-talc shale with Calc-arenites 500-2123 0.40 619-668: Kayak facies non-talc shale with Calc-arenites 547-704 2.59 691-713: Kayak facies non-talc shale with Calc-arenites 698-854 0.94 848-1004 0.94 955-990: Kayak facies non-talc shale with Calc-arenites 998-1154 0.69 1079-1114: Kayak facies non-talc shale w/ Calo-arenites 1148-1304 0.15 1298-1454 10.48 1477-1528.6 0.01 1448-1604 3.00 1625-1647: Kayak facies non-talc shale w/ Calc-arenites 1598-1754 4.54 1851-1882: Kayak facies non-talc shale w/ Calc-arenites 1748-1904 0.30 1980-2030: Kayak facies non-talc shale w/ Calc-arenites 1898-2054 2.84 2070-2195: Kayak facies non-talc shale w/ Calc-arenites 2048-2204 0.04 2106-3016 0.37 2198-2354 0.45 2348-2504 1.84 2560-2611.6 8.50 2498-2654 96.22 2694-2713:Kivaiina-dominated Melange 2696-2747.6 0.03 2648-2804 0.07 2792.5 2824 Me- Melange: Multilithic: Kivalina, Siksikpuk, Ipewik 2820.5-2821 19.24 2798-2954 0.10 2824 2901 Mlk- Kivalina limestone/shale 2901 2909 Me- Melange: Kivalina dominant 2909 2926 Mlk- Kivalina limestone/shale 2926 3005 Me- Melange: Multilithic: Kivalina, Siksikpuk, Ipewik, Otuk 3005 3016 Kss- Okpikrouk sandstone/siltstone TD Skin Na -5 n/a Golder Slug/Scan Test, Permafrost Golder Pump Test Golder Slug/Scan Test, Permafrost Golder Slug/Scan Test Golder Slug/Scan Test Golder Slug/Scan Test Golder Slug/Scan Test Golder Slug/Scan Test ARI Permeability Golder Slug/Scan Test Golder Slug/Scan Test Golder Slug/Scan Test Golder Slug/Scan Test Golder Slug/Scan Test Golder Pump Test Golder Slug/Scan Test Golder Slug/Scan Test ARI Permeability Golder Slug/Scan Test ARI Permeability Golder Slug/Scan Test Golder Slug/Scan Test • • • ~flI~R~1~flIfl~~R E & P SERVICES, fNC. Cement Red Dog Shallow Gas Exploration Project: Hole Geometry Well No: NB-1 s .z ~~ .~ 4 ~,1~ . :~~ r~ ., r r 4_;y„ ~,~ ~. ``_.,~ ~. I ~:,41 ~~. ,." I ~y~ IIIIIrrrrI ~~i ~, 1''' E~ ~> NOTE: Exact depths and set points fo be determined when drilled and casing tallied. 1 ~ ~. ,. ,.y "f. ,:4 .a #.. ;~ r ~." , ,.; "~ J 13 3/8" 54.5# K-55 conductor installed during pad construction "~ ~5 ft 12'/4" Hole Base of Permafrost 4 "'°' @ -640 ft MD - ~~~ ti 8 5/8", 24# K-55 Surface Casing ' X700 ft M D - tl;.y • ~ ; ~4 " 7 7/8 Hole ^ t- z Perforated intervals to be - determined from open-hole logs. ' y. 5'/z", 15.5# J-55 Production Casing 3000 ft MD & TVD s=airw~eati~er ~~~ services, irate. >~~~. 2.L i~{i~~il~aea ~r~~'vi4"1 mat tc~ c~le ~h~ • i I~ Proposal No: 1001$6708C Teck Cominco Alaska Incorporated North Basin Well No. 1 -REVISION TBD Rig Red Dog Mine Field De Long Mts County, Alaska May 24, 2005 Well Recommendation Prepared for: Bob Gardner Project Manager Fairweather E & P Services, Inc. Prepared by: J. Jay Garner Manager, City Sales Kenai, Alaska Bus Phone: (907) 349-6518, Anchorage Email: jgarner@bjservices.com Mobile: (907) 229-6536 POWERVISION~ I'owt;al'at~ I'owr:e`1'kr~x • PUwr:kLivrc Service Point: Service Representatives: Kenai, AK J. Jay Garner Bus Phone: (907) 776-4084 Manager, City Sales (907) 659-2329 Kenai, Alaska Fax: (907) 776-4087 Bus Phone: (907) 349-6518, Anchorage Email: jgarner@bjservices.com Mobile: (907) 229-6536 Gr4105 ~ ~ Operator Name: Teck Cominco Alaska Incorporated j Well Name: North Basin Well No. 1 -REVISION . Job Description: Surface Casing Date: May 24, 2005 Proposal No: 1001867080 JOB AT A GLANCE Depth (TVD) 700 ft Depth (MD) 700 ft Hole Size 12.25 in Casing Size/VNeight : 8 5/bin, 24 Ibs/ft Pump Via 8 5/8" O.D. (8.097" .I.D) 24 # Total Mix Water Required 2,873 gals Spacer Fresh Water Spacer 15 bbls Density 8.3 ppg Cement Slurry CS II 696 sacks Density 15.0 ppg Yield 1.02 cf/sack Displacement Displacement 39 bbls Density 8.6 ppg Report Printed on: May 24, 2005 2:59 PM Page 1 Gr4109 • • Operator Name: Teck Cominco Alaska Incorporated . Well Name: North Basin Well No. 1 -REVISION Job Description: Surface Casing Date: May 24, 2005 Proposal No: 1001867080 WELL DATA ANNULAR GEOMETRY ANNULAR LD. DEPTH ft (in) MEASURED TRUE VERTICAL 12.615 CASING ~ 75 ~ 75 12250 HOLE ~ 700 ( 700 SUSPENDED PIPES Float Collar set @ 620 ft Mud Density 8.60 ppg Mud Type Water Based Est. Static Temp. 32 ° F Est. Circ. Temp. 40 ° F VOLUME CALCULATIONS 75 ft x 0.4622 cf/ft 625 ft x 0.4127 cf/ft 80 ft x 0.3576 cf/ft with 0 % excess = with 150 % excess = with 0 % excess - TOTAL SLURRY VOLUME _ 34.7 cf 644.9 cf 28.6 cf (inside pipe) 7082 cfi 126 bbls Report Printed on: May 24, 2005 2:59 PM p~arye ~ Gr4115 • • Operator Name: Teck Cominco Alaska Incorporated , Well Name: North Basin Well No. 1 -REVISION , Job Description: Surface Casing Date: May 24, 2005 Proposal No: 1001867080 FLUID SPECIFICATIONS Spacer 15.0 bbls Fresh Water Spacer @ 8.34 ppg VOLUME VOLUME FLUID CU-FT FACTOR AMOUNT AND TYPE OF CEMENT Cement Slurry 708 Displacement CEMENT PROPERTIES Slurry Weight (ppg) Slurry Yield (cf/sack) Amount of Mix Water (gps) / 1.0 = 696 sacks Cold Set II 39.5 bbls Displacement @ 8.6 ppg SLURRY NO. 1 14,95 1.02 4.13 1. Slurry performance to be confirmed through pilot blend testing at PRTC. Slight additive adjustments should be expected. Report Printed on: May 24, 2005 2:59 PM Gr4729 Page 3 • -• Operator Name: Teck Cominco Alaska incorporated Well Name: North Basin Well No. ~ . Job Description: Production Casing Date: May 24, 2005 Proposal No: 100189603A JOB AT A GLANCE ~~~~'~ Depth (TVD) ft -fi'c.'~~~, Depth (MD) 3~&B ft Hole Size 7.875 in Casing Size/VUeight : 5 1/2 in, 15.5 Ibs/ft Pump Via 5 1/2" O.D. (4.950" .I.D) 15.5 # Total Mix Water Required 4,074 gals Spacer MCS-4D Spacer 30 bbls Density 9.5 ppg 1st Lead Slurry Lead Cement 171 sacks Density 12.2 ppg Yield 1.64 cf/sack 1st Tai{ Slurry Tail Cement 367 sacks Density 14.5 ppg Yield 1.48 cf/sack Displacement Displacement 81 bbls Report Printetl on: May 24, 20052:43 PM Page 6 Gr4109 Operator Name: Teck Cominco Alaska Incorporated Well Name: North Basin Well No ~ ~ Job Description: Production Casing Date: May 24, 2005 Proposal No: 100189603A WELL DATA ANNULAR GEOMETRY ANNULAR LD. DEPTH ft (in) MEASURED TRUE VERTfCAL 8.097 CASING ~ 700 ~ 700 7.875 HOLE ~ 3~9A-x°Ci'~ ~ -~3;59@'.3~L''~`'' SUSPENDED PIPES Float Collar set @ Mud Density Mud Type Est. Static Temp. Est. Circ. Temp. VOLUME CALCULATIONS 700 ft x 0.1926 cf/ft 600 ft x 0.1733 cf/ft 2,200 ft x 0.1733 cf/ft 80 ft x 0.1336 cf/ft 3,420 ft - `" 9.00 ppg Water Based 63°F 50°F with 0 % excess = with 40 % excess = with 40 % excess = with 0 % excess = TOTAL SLURRY VOLUME _ 134.8 cf 145.5 cf 533.6 cf 10.7 cf (inside pipe) 824.6 cf 147 bbls Repoli Pnntetl on: May 24, 2005 2:44 PM Page 7 Gr4115 Operator Name: Teck Cominco Alaska Incorporated , Well Name: North Basin Well No. d i Job Description: Production Casing Date: May 24, 2005 Proposal No: 100189603A FLUID SPECIFICATIONS Spacer 30.0 bbls MCS-4D Spacer + 7 Ibs/bbl MCS-D + 31 Ibs/bbl Bentonite + 34 Ibs/bbl Barite -Sacked @ 9.5 ppg VOLUME VOLUME FLUID CU-FT FACTOR AMOUNT AND TYPE OF CEMENT 1st Lead Slurry 280 / 1,6 = 171 sacks Cold Set III 1st Tail Slurry 544 / 1.4 = 367 sacks Type I Cement + 8% bwoc BA-90 + 0.4% bwoc BA-10 + 0.5% bwoc CD-32 + 1 gals/100 sack FP-6L + 0.05% bwoc Static Free + 62.1 % Fresh Water Displacement 81.4 bbls Displacement CEMENT PROPERTIES SLURRY SLURRY NO. 1 N0.2 Slurry Weight (ppg) 12.20 14.50 Slurry Yield (cf/sack) 1.64 1.48 Amount of Mix Water (gps) 8.80 7.00 Amount of Mix Fluid (gps) 8.80 7.01 1. Slurry performance to be confirmed through pilot blend testing at PRTC. Slight additive adjustments should be expected. Report Printed on: May 24, 2005 2:44 PM Gr4129 Page 8 Series 200 -Rotating Contro~ads (Top Drive Rigs) ~.TaSf~Il~'~'~"~3P~1 ll~~'~~~'l~ 'T'I. ~~~ll~~s, Y~TC«, fA ~.: ~rl'.t"~i9 ~';f~:?f~ 7'f ~;rfi3~ { F`^3.'~~i 7 :` ~i'4::f fi{:fi 1 '-- F.'~t'S+- X95 9':~ ftb:atRCt'1131 1t .+?7 Page 1 of 1 SERIES 2000 ROTATING CONTROL HEADS (Top Drive Rigs) The Washington Series 2000 is a low profile rotating control head designed for "top-drive rigs" or "work-over rigs." BACK TO PRODUCTS The frictional engagement betweer the drill string and stripper rubber rotates the control head with the drill string, sealing off the well bort ~~~ continuously, while diverting all cuttings and debris. This unit is designed to be used with our Part #2010 Stripper Rubbers, and can seal off from 2" to 5" drill steel. Whether you are drilling gas, oil, o geothermal wells, Washington Rotating can accommodate all you diverter needs. Call or send us your inquiry for pricing. NON-ROTATING CONTROL HEADS BOWL SIZE FLANGE HEIGHT BODY BORE ROTATING CONTROL HEADS 3IZEL FLANGE HEI HT BORE SBOREE 7-1/16" 6"- 900 17-3/4" 7-1/16" 7-1/16" 6" - 900 26" 7-1/16" 5-5/8" 8" 8"- 400 17-1/2" ~ ~ g.. - 400 25-3/4.. 0 5-5/8.. 11" 10"- 400 17-1/2" 11-1/8" li" 10" - 400 23-1/2" 11-1/8" 5-5/8" 11" 10" - 900 15-1/2" 11-1/8" 11" 10"- 900 23/3/4" 11-1/8" 5-5/8" ----" ----- ~~ 14" 12" - 900 22" 14" 5-5/8„ ;,I„ i. z;"ai .i~~,~`t71a tie "~` .... ' ~.~. [Ft0(+tE] [ABOUT US] [OUR PRODUCTS] [CONTACTING US] [SEND US YOUR INQUIRY] [E~l~NTS] http://www.washingtonrotating. com/2000.htm1 4/25/2005 I: t7 ICJ `~ I, s i~t` .I i RE: NB Wells • • Subject: RE: NB Wells From: Bob Gardner <bob@fairweather.com> Date: Tue, 12 Ju12005 13:46:17 -0800 To: Thomas Maunder <tom maunder@admin.state.ak.us> Tom: I will make you a copy of the EPA letter and deliver it to your office this afternoon. Re sending an inspector to the site: There are currently only two charter flights a week. They are on Wednesdays and Saturdays. Special charter flights out of Kotzebue are pretty much out for the summer, as the Red Dog runway is being paved and closed to all air traffic except the two charters. Your inspector would have to go in one charter and return on the next one coming out. The mine requests as much notice as possible on charter travel, as the flights are understandably crowded due to the limited number available. They would like a one week notice, but we can push this a little if there is only one person involved. I hope this is the information that you need. Regards, Bob -----Original Message----- From: Thomas Maunder [mailto:tom maunderiYadmin.state.ak.us] Sent: Tuesday, July 12, 2005 11:24 AM To: Bob Gardner Cc: Steve Davies; Jim Regg Subject: NB Wells Bob, Steve and I are moving ahead on the NB permits. Just a couple of questions. 1. Is it possible to obtain a copy of the EPA letter with regard to disposing of waste water in the Red Dog tailings pond?? 2. If it was desired to send an Inspector to the rig site, how would that be accomplished?? Thanks, your assistance is appreciated. Tom Maunder, PE AOGCC 1 of 1 7/12/2005 2:01 PM 'I1%G*~~'~4 MON 07:51 F~~. 50A °~ 2591 TPck Gomincu Ameri n . ~~'I ~~~-2Q04 THtf 1 ~ ~ 4~ ~?FF ~ ~E 4F WATER fiA~ N~~'~553~ f E5 f i ~~ ~ ,/° UNt'IED R~~- Ta ,Alm ~ (~W~ I3S RG. Scott Q~xit r1m ~l1~SS, ~QV~YO~ ~ ~~ ~ ~~1ts ~ 2 OS Lakesbs~ Drl~, Hld. A, fi to. X A 1 R~:.lted I3og Mine, Di$Ghsrge e Iit letters ~t~ JAnt~aacy 1 S, 2Clt~, ~ iu oper~i~rnn ~t >Z~ Tog b-diaQ. ' ~~~ '~ ~'t #~ euud 8 aew ~ ~loration weld l~n. lettss*s, `q ~ v+l th the ~~~a athvr waa#ew~cr iu the e lile~ WdtB!' C tree t~1 e~stiag 1VPDF.,S potmit (AK-t7o38~S-2~. ~tt~ ~ faun letters aad ~ ~a~t~ph I'V.8 of the M3t~e's NPt " ~hysi~l SlteratiQas a~ add~ions additlaA could sigt~captly chsp,ffi,$ the ne 7~hat t p~r-ision is x~eguieed bar $pA prea~bl~ tQ th~t# ~t explains that Whothec the qty ~ vt~~ats~s a pe¢~ aid M~amh Z 1 ~ 20Q4a you notified vs a~'y~~, ~cglor~ion. A pt~nnit modific~io~ is watr zrxiaF and ~~tatfal ~Iterat~ing er adc s~rglicaa ofpe~t Conditions that a~ s~tg~ests that a paw nuodiScatiost it in the f~%ty's p~'t ~.a~. A,e acted tc~ clete~mi~ whiter t~ plaan pemrit cpndiiicas. 2 ~9 Fcd. lxeg. 3?,9~$, Sec~icaa Il.~ 0 P~'~'i1QNACENCY a~ c I a r A n ti e 1. ~.~.. ... w_,,,y;35 X002 P. D21~~ ~iS-O~t,~ aS~~. vr~f ~ ~ ~~ ~ ~'~ ~~ S ~~ A~~horaAs ~U'`~irss~ a,~ Natt'n~a~l Cras F.~cpiarati~ . ; -: 11 ~ 20[34, yuu nntifi~ »e of ~ g1.~~~ ia+~otv~ca + ~wua1 ~ e~ra~tian ~ carnaistir~g of ~~dueed wat~I;r" fratts the ~r Teen r cc~bi~ the ~~` ~tez ngr iTr~i+nt~atasm~ .anet f1~.max e:~,~~,w ~w la's o~iis~g ~aYn auttatll, ~iz3er t~ is below is bassi on tbe~ n'natian S ~ requ~es 7'er~ to uotity SPA ~af any ~' 'tY'° wl'eest `jthe a4teri~~ nr e or ' the quan#ity of pollutax~: di~.~ _ . ~ 1~PA ~tle~ thi81'egulatiol~~ iu 1~-$4; the ~ 1~ ~ s F~ is Do evab]~ 1wP'~I~- t0 dae ~~ ~Y yaur ietrecs of Jarn!:~ry 15, 2003, '~ ~ ~~ ~ ~-'a,#e~ fivi~ a naafi to l?F'A regr~a~oas, wben R~~3~~~ ire ~. ,ityr ... Bch x~~xsti~,y the :tt al~seact in the exispxtg permit.'°~~ 'F~s d hen a fnc~lit~r image does ntit jvi:a#ity a. cgs w ltav~ onaly~od tote motion ~:;h~Y T~1c... li dzange wacraats any to °~ ~c~lityys 1 ~~4). 3 ~lJ ~.d'.~. ~ 122.G2(s)(X~~ 11~`~8%44 MUN 07:52 F.A.X v09 `~ 2 2591 T~r_.k Cominca r1m~r~ ~~n ~`.~,~:~~'-~~-~t~04 'f~(~ 1:44 A ~FFIC~ ~F ~IA'i'EFt FF~X Nt~"~553~185 a ~ 403 ~. ~~~~~ Thy permit its far ~ - wa~te s~ limns, or wataor ~slity bsrsed ~+~ ' ~ ~ ~Pd ~aa- volume of the new #~ flaw vclt and tl~e ca~n~ite are sa ~ imil. of this ~w w~~, v~oulrt not digs ~C~$ELs. ~p the ~.ew vva~te wo qr~ t~ raw avast ie aub,~eat to teehuo gy~ti p~mit'e'w~lal'.s. ~'~ahaa~,o~r-baste ;ire Yraso h+~va caacltuied, howl, rsa efft~n ~ ~ ~~ ~to~ion pIaanec~ ~ the US 9~OU~ ~@ gCala$ia~l ~i0~, and. ~ c~nstEts. 'Thus technoiogSr-hayed chi "best ,arofessi4nai, j~~ (8PJ). Rre ~ ~'~ tlYat Tech ~, and haul applicable to the near wee a~e,~n ~vat~ aheady con#aiaed iu the tae's courant . would. b~ ai~~er tc~logy-ha~~, went tFlrs~, whYCwmt are more stri~c. ~eeause is so small spared to ~ Mii~'g curry the ~ine"s other ~i+este~r~, t~ ittfradnatian ttla3igaas wsded~raing fhe cazcen~: pit's ' t ~ in the 1VTins's pet~,limits onl.,y i~' liruEts that sre tie stp~g ~ the t oa FIB' effiueut lisriit ,gui~, if aA~p ~p~ , W,~ lmai# ~plfe~'~ tha "prrid~,tcedl ~ ut~~ ~~ ~ si. .o- '~ ~Peipted flow ~v4hurse aimed . =pt ' would. be da~amiaed by aleatinn of ave a SPX a~ai~is based ou ~a tb$t the techaa~o$y-based ~~t limits a~ si 3ess ~vng~ ~ the ~i~i~ggls *.r~e. - ----.. ~~ B 1'~:aBariSi ~! ~ ylr~6 ~'1 permit ca~g~ ~d ire a pt~it ~uartif .; ~vdi~ld nc1t be.nece~sary tesdsx 40 ~~~ ~122.~ of the neyv urn, Witi authorix~ try pmt. Ii~~u vvawTd to di ~- at (ZAP 5532149, ar p~ricis M tih at cc; 1,,ar~ry ~IartYg . Rhodes ~ ~. ~x7 r~ s, ~hc~ag'e, Alaska- 99501-3397 ~c-'fl13id aOt vvar!'aut ~.y ~~ m,'~ Mine's ~ ~ ~ tEtis t~ VNHSt~ Str+e~; .. 1~. Au a 1'eSl?lf, Wt believe twit the emits in the 1VYiae's ex3atln~:,pq~~ ~ : _ s f isms fir, please ~~alt:K,~i#h i~ ~~3--0979. . ~ •~ ~ ~~~ . . >~ of water aad ~r RE: Designation of Operator Form ~ Z~, ~_. ~Q ~. Subject: RE: Desi~ ration of Operator Form From: I;~~h Gzn~lncr ~ hoh u'lairv~~e~~ther.rom=- nate:l~~tun, 1 1 Jul ?U~ ~, I (i:UT:? ; -1iS~~O 1~0: Stephen [~a~~i« ~~steve d~~tiie,"ci~admin.state.~~k.u~~==. CC: [3~wth Deny SPOK ~-Jerre.f3o~~[h~teckcominco.coni% Hello Steve: I have copied Jerry Booth at Teck Cominco on this e-mail, as he is the one who can most expeditiously get the original to you. I don't think it will be a problem. Thanks, Bob -----Original Message----- From: Stephen Davies [mailto:steve daviesC~admin.state.ak.us] Sent: Monday, July 11, 2005 3:44 PM To: Bob Gardner Subject: Designation of Operator Form Bob, For now, the fax copies of the Designation of Operator form will be sufficient, but could you please forward the original copy to the Commission for our records as soon as it is practical? Thanks, Steve Davies Petroleum Geologist 907-793-1224 1 of 1 7/11/2005 4:26 PM Designation of Operator Form Subject: Designation of Operator Form From: ;~tcphen U.~~.vies <steve d~~i~s~~i~a~imin.state.ak.us> Datc: \l~,n. I 1 Jul ?f~l:~j 1>:-1:~ ~6 -t~St)0 To: bi~h~i%hair~~~cnlhcr.c~~m Bob, For now, the fax copies of the Designation of Operator form will be sufficient, but could you please forward the original copy to the Commission for our records as soon as it is practical? Thanks, Steve Davies Petroleum Geologist 907-793-1224 1 of 1 7(11/2005 3:43 PM E & P SERVICES, INC. ~~ ~-. ,. ,_ July, 5, 2005 ~ -'C+~`a ~~~.: Mr. Tom Maunder, P. E. Petroleum Engineer Alaska Oil and Gas Conservation Commission 333 7~' Avenue, Suite 100 Anchorage, AK 99501 Re: Teck Cominco Alaska Incorporated, Wells Nos. NB-O1 and NB-02 Dear Mr. Maunder: Thank you for your e-mail of June 28, 2005 which lists several questions and comments regarding the procedures for drilling the above referenced wells, as well as the authority by which Teck Cominco Alaska Incorporated will operate these wells. I believe we satisfactorily addressed these issues during our meeting on July 1, 2005, subject to the written responses to your questions presented herein. The points listed below follow the same numbering system used in your original a-mail: 1. Need bond or letter of credit in place before permit applications can be approved (20 AAC 25.025): The blanket bond was electronically transmitted to your office this date, with the hard copy following by overnight mail. 2. Need a lease map showing affected lease and those immediately surrounding it. Need ownership/land ownership information for the affected lease and all adjoining leases: The requested map is attached. The NANA lands are not subject to a traditional oil and gas lease, but rather to a confidential exploration agreement between NANA and Teck Cominco, and also to a specific Letter of Intent between the parties referencing the subject gas exploration project, which is also confidential. 3. Need Designation of Operator Form (20 AAC 25.020)------: The completed ' Designation of Operator form (10-411) is attached. 4. Need Notice of Change of Ownership-------: It was determined during our aforementioned meeting that this form is not required. 5. 20 AAC 25.033 (i) allows the Commission to approve under balanced drilling. The request for under balanced drilling must include------: The subject wells will be drilled with air using a Washington Control Head as described in the APD's. The Washington Control Head is basically a rotating head, with all 2000 East 88th Avenue • Anchorage, Alaska 99507 • (907) 258-3446 • FAX (907) 279-5740 650 North Sam Houston Parkway East, Suite 505 • Houston, Texas 77060 • (281) 445-5711 • FAX (281) 445-3388 ~ • • cuttings and return air diverted through a "blooie" line to a cuttings bin and sampling cyclone located a minimum of 30 ft away from the wellbore. 1500 bbls of water will be stored on location during drilling and will be available to fill the wellbore as a well control contingency. The extremely low porosity and permeability of the shales being penetrated limit gas flows during drilling to what gas is absorbed within the shale that is pulverized during drilling. Air flows during drilling (1000 cfm or more) will keep any gas in the wellbore below the LEL. The Commission has approved an almost identical drilling procedure during the Evergreen CBM program (PTD's Nos: 202-178 and 202-179). 6. 20 AAC 25.035 (h) (1) allows the Commission to approve a variance from the BOP requirements---------: See No. 5, above. 7. 20 AAC 25.035 (h) (2) allows the Commission to approve a variance from the diverter requirements if an equally effective means is provided to divert flow away from the rig----: The Washington Control Head accomplished this function. A separate diverter, as used in conventional mud/rotary drilling operations is not planned for this drilling program. In the subject case, the "diverter" is the Washington Control Head. 8. A diagram of the diverter and rotating head arrangements should be provided. A plan of the rig and support equipment should be provided: These diagrams are attached. 9. 20 AAC 25.061 (c) allows the Commission to waive the shallow site survey if other effective means can ident~ the likelihood of encountering shallow gas: We submit that the density of mineral exploration core holes in the area adequately addresses this issue. None of these core holes (all of which were drilled without any means of well control under mineral exploration regulations) encountered any - shallow gas. 10.20 AAC 25.066 covers gas detection requirements. There is no waiver clause for gas detection equipment absent a hearing, etc.--------: Teck Cominco will provide gas detection equipment during the drilling of NB-01 and NB-02. If the results of this pilot shale gas project are encouraging, and subsequent wells are proposed, we reserve the right to make a formal waiver request for all subsequent wells, recognizing that a hearing will be required. 11. Inclination survey--------: Surveys will be run every 500 ft. ' 12. Mud log or lithologic log---------: A geologist will be on site to construct a ~; ~~ continuous lithologic log as the wells are drilled. A conventional mud log will (~- ~' not be possible, as the wells are being drilled with air. ~~~,((~~ ~ ~L~~ Your e-mail addressed the need for a spacing exemption for Well No. NB-02. This 1 ~z~icG ~`~, , application is being submitted under separate cover. a~ `~ C1 ~~ Your e-mail also listed 14 "Questions and Comments", which are addressed in the same ? ° ! format below: 1. We presume that gas detection will be part of the mud logging equipment: See Nos. 10 and 12 above. fi • • 2. We presume there is not any seismic data in the area--------: There is no seismic data in the area, neither is there any velocity information available. We submit that the extensive mineral core hole data that has been accumulated in the area adequately addresses shallow gas concerns that would otherwise be addressed by the seismic data. 3. Have there been any observed over pressured gas or fluids in any boring or core holes within the area?: No 4. Can you provide more detail on previous drilling operations in the area? How many core or test holes have been drilled in the area, etc. ---: One hundred twenty three mineral exploration holes have been drilled in the area. A map is . attached that shows the locations of these core holes. 5. Is Core Hole 1107 plugged?: The hole is plugged by ice through the permafrost zone. Mineral exploration regulations do not require the plugging (in the conventional oil field sense) of core holes. See No. 4, above. 6. Has significant shallow gas ever been encountered in the area?: No ' 7. Has and H2S ever been demonstrated in this area? A stronger case must be made before .the Commission can waiveH2S requirements in 20 AAC 25.065: There has never been HZS encountered in any of the core holes in the area, ar in any of the extensive mining operations at Red Dog. I don't know how to make a "stronger case". 8. What is the basis for calculating the BHP and surface pressure listed in Block 17 on Form 401 ?: The pressures shown on Forms 401 are not locally based, but rather are based on Barnett Shale experience in Texas. We used the Barnett shale case, a lithologically it represents some similarity to the Kivalina formation at Red Dog, is organic-rich, and when fractured and de-watered, produces gas in commercial quanties. 9. When the various hole sections are completed will logging be accomplished with fluid in the hole?: It will be necessary to fill the hole with water to achieve the logging products desired. 10. Will casing be run and cemented with fluid in the hole?: The production string will be run and cemented with fluid in the hole, since the hole will be filled with water in order to obtain the desired logs (See No. 9, above). Surface casing will be run through the permafrost zone without fluid in the hole, except that which , occurs from natural seepage. 11. Basis for not requiring BOP equipment and request for additional porosity/permeability data-----: During our aforementioned meeting we have provided you with a Scoping Study developed by Advanced Resources International, and P&P report from the University of Alaska which addresses this request. 12. The request to be under balanced will also be supported by the "answers" to the questions above: Understood 13. Elimination of gas detection equipment: Previously addressed. Gas detection equipment will be provided. 14. Are there any drinking or industrial water wells within the area--------?: No. ~ • • I hope this information adequately addresses your concerns. Please call or e-mail at any time should you have further questions or comments. Sincerely, ~~ R. C. Gardner Sr. Technical Advisor For Teck Cominco Alaska Incorporated Enclosures ~ 2005 Gas Holes ~ Future Gas Holes NANA Lands ADL389249 ADL389250 2 4 Miles • ~J i 1 I 1 ~ 1 1 . ,.1 .~. ~ ?h I 1 ' i 1 I ` , II ~ ~ ) ill'Itl l Z ~~c _X II ;~!. ~f, ~~ ~ ~ ~ 2005 Gas Holes ~ Future Gas Holes Wuli{c Basffi' Mineral Holes ;~ .~ ~ ~... 1, , ~ \~ atk a~za~ ,;~ ~ NANA Lands ~-, I II /" \~ I 1~_ I 11, .. 1 I I I !I ~ 1!_ b15C3$9 4~ I_ I I ,~ A ! ~ ~~~~~~9i ~~..~ ,, 1 "~ `~ 1 / ! I,I~ 1 J r ~I , f I I~ i I f / II I 1 / \3/~925 ~~ I I I I ~ ~ , 1 1 I , I f I ~ "`` tai s~ , f I 1 1 NB-o~' . ',hl _py , .I~i Ili it II 1 •.I ~I , ---- i 1 li 1 NANA Lang 0 4 ~ Miles • • • • Tech Cominco Shale Gas Washington Control Head SOW Casinghea Cuttings Discharge Line Water Fill-up (kill) Line North Basin Wells Nos. NB-01 and NB-02 Control Head Diagram • • 90 ft. ~' 0 N =N O ICementl Unit i O ~ ~ N y ~ ~ U ~ u u Cuttings Bin Drs!! ~ ~~ ~ 1500 bbls O1~ '$1ooe yLlae ~~~ Deck ~ yva v~ Pipe- Pipe ~ Sled Sied a ~~~ ._-~- Access F-~tdeck ~---~_ Teck Cominco Alaska By. Red Dog Gas Pr®graen Drilling Pad gay®tlt Dale: 12/3/2002 By Tadknadge GSS $ Dv-atmrs0, LLC Noaiak_Gas_ProgramlGlSV2eportFgureslPlan_d_OPer-2903 Gas_Ver 9!F'~~_1~3.t-apr Teck Cominco Surety Bond • Subject: Teck Cominco Surety Bond From: Suda Cathy SPOK <Cathy.Suda@teckcominco.com> Date: Tue, OS Ju12005 09:41:53 -0700 To: tom_maunder@admin.state.ak.us CC: Booth Jerry SPOK <Jerry.Booth@teckcominco.com> Tom Maunder Petroleum Engineer Alaska Oil and Gas Conservation Commission 333 W 7th Ave., Suite 100 Anchorage, Alaska 99501 Dear Tom: The attached file is a scan of the bond in the amount of $200,000. I will be sending the original overnight. Cathy Suda Land Supervisor Teck Cominco American Incorporated 15918 E. Euclid Avenue Spokane, WA 99216-1815 509.892.2567 Fax: 509.459.4400 cathy.suda~teckcominco.com Content-Description: reddog-oandg-bond_2005.pdf reddog-oandg-bond_2005.pdf Content-Type: application/octet-stream Content-Encoding: base64 1 of 1 7/5/2005 8:59 AM [Fwd: [Fwd: Comments and Questions on NB~and NB-02]] Subject: [Fwd: [Fwd: Comments and Questions on NB-Ol and NB-02]] From: Thomas Maunder <tom maunder@admin.state.ak.us> Date: Tue, 28 Jun 2005 07:43:50 -0800 To: Steve Davies <steve_davies@admin.state.ak.us> Steve, Sorry I didn~t cc you on this. Tom -------- Original Message -------- Subject: [Fwd: Comments and Questions on NB-O1 and NB-02] Date: Tue, 28 Jun 2005 07:43:15 -0800 From: Thomas Maunder <tom maunder~admin.state.ak.us> Organization: State of Alaska To: Bob Gardner <bob~5fairweather.com> Bob, Steve Davies and I have reviewed the applications for the Red Dog project. Here is a listing of our comments. You and I discussed in particular the gas detection yesterday. Have a look and we can discuss later today. Tom Maunder, PE AOGCC Tom, Looks good. Could you send it over to Bob Gardner? We can discuss it with him later this morning. Thanks, Steve D. '050627 NB-O1 and NB-02 Comments .doc Content-Type: application/msword Content-Encoding: base64 1 of 1 7/13/2005 9:09 AM Here are AOGCC's uestions /-comments /needs for the NB-O1 well s: q Prior to permit approval: 1. Need bond or letter of credit in place before permit applications can be approved. (20 AAC 25.025). 2. Need a lease map showing affected lease and those immediately surrounding it. Need ownership / landownership information for the affected lease and all adjoining leases (owners /landowners, percentages). 3. Need Designation of Operator form filed with the Commission before permit can be approved. (20 AAC 25.020). 4. Need a Notice of Change of Ownership form filed with the Commission before permit can be approved (if applicable) (20 AAC 25.022). 5. 20 AAC 25.033 (i) allows the commission to approve under balanced drilling. The request for UBD must include, "...a description of all equipment and procedures to ensure proper containment of formation and return fluids." The rotating head is all that is described in the application. 6. 20 AAC 25.035 (h) (1) allows the Commission to approve a variance from the BOP requirements if the variance provides at least an equally effective means of well control and 7. 20 AAC 25.035 (h) (2) allows the Commission to approve a variance from the diverter requirements if an equally effective means is provided to divert flow away from the rig. It appears a diverter is planned to be used according to the procedure, step 3. Is the surface hole being drilled with fluid? Is the diverter actually the rotating head? 8. A diagram of the diverter and rotating head arrangements should be provided. A plan view of the rig and support equipment should be provided. 9. 20 AAC 25.061 (c) allows the Commission to waive the shallow site survey if other effective means can identify the likelihood of encountering shallow gas. 10.20 AAC 25.066 covers gas detection requirements. There is no "waiver clause" for gas detection requirements. This means a hearing is required. CO 479, addressing Evergreen's request to waive gas detection equipment was issued October 29, 2002. They had made an application for the waiver on August 16, 2002 and a hearing was set for September 19. 11. Similar requests for under balance drilling, BOP, shallow hazards survey and gas detection were addressed in the Evergreen program. Well files 202-178 and 202-179 are public and available on our web site. Reference should be made to the documents in those files for examples. NB-02 requires a spacing exception because, once NB-O1 is drilled, NB-02 will be less than 3,000' from a well drilled to and capable of producing from the same pool (20 AAC 25.055). The spacing exception application is described in 20 AAC 25.055 (d). Such exceptions typically take 6 weeks to process and approve, including a mandatory 30-day public comment period. In the spacing exception application, an operator may request they be allowed to drill and complete the well, but may not test and produce the well prior to approval of the spacing exception. However, if such a condition is granted, the operator bears all risk and assumes all liability of any protest to the spacing exception that may occur. Additional well data requirements (beyond those proposed in the permit to drill application): 1. Will need an inclination survey. (20 AAC 25.050). 2. Will need a mud log or lithology log and a set of drill cuttings in addition to any electric or nuclear logs run in the well bore. (20 AAC 25.071). Questions/Comments: ~ ~ 1. We presume that gas detection will be part of the mud logging equipment. 2. We presume that there is not any seismic data m the area. Correct. If there is, has rt been exammed by a geophysicist for shallow gas hazards? Any velocity information available? If so, has it been examined by a geophysicist for abnormal pressure indications? 3. Have there been any observed over-pressured gas or fluids in ar~iorin s or core holes within the g area? 4. Can you provide more detail on previous drilling operations: How many other core holes or test holes have been drilled in the immediate area? To what depth? Can you provide a location map? 5. Is core hole 1107 plugged? If so, with what (list material and depths/thicknesses of plugs)? Are there any other core holes in the vicinity of NB-0l and NB-02? 6. Has significant shallow gas ever been encountered in this area? 7. Has any H2S ever been demonstrated in this area? A stronger case must be made before the Commission can waive the H2S requirements listed in 20 AAC 25.065. 8. What is the basis for calculating the BHP and surface pressure listed in block 17 on Form 401? 9. When the various hole sections are finished, will logging be accomplished with fluid in the hole? 10. Will the casing be run and cemented with fluid in the hole? 11. The basis for not requiring BOP equipment is that Core Hole 1107 was drilled without incident using water. If air is employed as planned, the hydrostatic pressure at 3000' true vertical depth will be reduced by 1300 psi. Although it is stated in the cover letter that "...The shale has very low permeability and porosity...", have there been any measurements/studies to quantify P&P? Some information must be provided that considers how/whether the draw down might affect potential gas flow. 12. The request to be under balanced will also be supported by the "answers" to the questions above. 13. The purpose of the well is to find formations containing gas. The earth will be pulverized so whatever gas is contained should be liberated. There is no statement in the application to support eliminating the gas detection requirement. 14. Are there any drinking or industrial water wells within the area? If so, a land plat and a description of the location of each water well, it's use and it's depth are needed. z~s ~9s ~~=a~~ ~ ~~ a a d FitAIVK N. MUftKOwSKd, ~ovERntoR DEPARTII~'[ENT OF NATURAL RESOURCES OFF}CE OF PROJECT MANAGEMENTIPERMiTTiNG ALASKA COASTAL MANAGEMENT PROGRAM O SOUTHCFNTRAt REG10NAt OFFICE OCENTRAL OFFICE XPIPELINB GOORO/NATOR'S OFFICE 550 W 7'"AVENUE SUITE 1660 302 GOLO STREET 4ii WEST 4"" AVENUE. SUITE ?C ANCHORAGE, ALASKA 99501 JUNEAU, ALASKA 99801 ANCHORAGE. ALASKA 99501 PH: (947) 269.7470 FAX: (407} 269-384! Ph: (907} 4fi5-3562 FAX.' (907) 465.3©75 PH; (907} 2857-J35J FAX• (907} 2M-3829 une 9, 20 ~ svirir.nlnskrrcons/.sl~te.2k,tr.c Mark Thompson and James Kulas Teck Cominco Alaska Incorporated 3145 Lakeshore Drive, Building A, Suite l0I Anchorage, AK 995I7 SUBJECT: North Basin Shallow Gas Project STATE ID NO. AK 0304-030G Firt:tl Consistency Determination Gentlemen: The State of Alaska, Office of Project Management Permitting, Alaska Coastal Management Program {ACMP) completed coordinating the State's review of your proposed project, North Basin Shallow Gas Project, for consistency with the RCMP. The RCMP coordinated the review with the Alaska Departments of Environmental Conservation and Natural Resources for consistency with the Alaska Coastal Management Program. Based on the evaluation of your project by the Alaska Departments of Environmental Conservation {ADEC) and Natural Resources (DNR), the State concurs with your certification that the project is consistent with the ACMP and the Northwest Arctic Borough coastal district's enforceable policies to the maximum extent possible. This concurrence includes your agreement to adapt the alternative measures required by ADEC for the Section 40I certification for this project. This consistency determination is only for the project review as described in your project description and Coastal Policy Questionnaire {CPQ). You must contact this office immediately for potential further review if there are any changes to the approved shallow gas exploration project. If you have questions retarding this process, please contact me for questions or concerns {947-257-1351) or email klaughli r~jpo.doi.gov. Sincerely, Kaye Laughlin Project Review Coordinator "1)erelnp, Consen•e, « 13r! Enh«}rce Nnturrrl Resources for Present troll Future A?'asknns " Red Dog Final Consistcnce~ L? `iiinatian Page 2 of 2 June 9, 2Ufl3 Cc: Victor Ross, USAGE Tim Rwnfelt. ADEC, Anchorage {Ch~kcni Sea >>, w-i9s40ot2) Matt Rader. DNR/DOc~G Stan Foo, DNR Stefanie Ludtiyig, DNR/SHPO, Anclioragc Kern Walsh. DNR/DOL. Fairbanks Jack W'snters, DNR, Offce of Habitat Permitting, Fairbanks Noah Naylor, Planner, NWAB. Kotzebue Native Village of Kotzebue, Mr. Fete Schaefer, P.O. Box 29b, Kotzebue, AK 9972 Native ViItagc of Noatak, Mr. Elmer Howarth. Sr.. President, P.O. Box 39, Noatak, AK 99761 Kiva{ina iRA Council. Mr. Jerry Norton. Sr.. P.O. Box SOE)~ 1, Kivalina. AK 9970 Lovett Sage Sr.. Planning Commissioner, NWAB, c/o General Delivery, Kivalina, AK 9970 Ra1•mond Lee Sr., Planning Commission. NWAB, P.O. Box ~, $uckland. AK 99727 Barbara MacManus. Punning Commisision. NWAB. P.O. Box 6R, Ambler. AK 99761 Alex Whiting. Planning Commission, NWAB, P.O. Box 296. Kotzebue 9972 Gordon Nc~ytin. Planning Commission. NWAB, P.O. Box =lei. Noon~ik. AK 9970 Wa~~~e Jones. Planning Commission, NWAB. P.O. Box $97, Kotzebue. AK 99772 Frank Adams, Planning Commission, NWAB. c/o General Delivery, Noatak. AK 99761 Dennis J. Ticpciman, Maniilaq Association, Kotzebue Jemzifcr Curtis, Maniilaq Association, Kotzebue Subsistence Coordinator. Nana Corp., Kotzebue GIenn Gray, OPMP/ACMP Sydney Mitchell, OPMP/ACMP Wyn ~4cnafee. DNR/PIG 14137 FAIRWEATHER EXP~ATION FIRST NA1~L BANK A L A S K A & PRODUCTION SERVICES INC. 89-6-1252 ' GENERAL ACCOUNT P.O. BOX 103296 DATE ` ANCHORAGE, AK 99510-3296 AMOUNT PH. (907)258-3446 6/13/2005 $100.00 PAY One Hundred Dollars And 00 Cents f o ~, N s, ' TO THE STATE OF ALASKA - AOGCC ORDER 333 WEST 7TH AVE SUITE 100 RR OF C ~ \ ANCHORAGE AK 99501 USA ~ _ ~ ~„ - ~--s. _ ~-^ xr II'0 i 4 i 3 7~~' ~: i 2 5 200060: Oil 2 8 2 3 Oil' `~ , FAIRWEATF~ER E~(PLORQTION & PRODUCTION SERVICES INC. -GENERAL ACCOUNT F 1413 7 airweat er E P Services, Inc. 0014137 VENDOR ID NAME PAYMENT NUMBER CHECK DATE 1049 TATE OF ALASKA - AOGCC 00014922 /13/2005 OUR VOUCHER NUMBER YOUR VOUCHER NUMBER DATE AMOUNT AMOU NT PAID DISCOUNT WRITE-OFF NFT 00018534 050613*CKREQ*NB01 6/13/2005 $100.00 $100.00 $0.00 $0.00 $100.00 COMMENT FILING FEE, APPLICATION FOR PERMIT TO DRILL $100.001 $100.00 I $0.00 I $0.00 I $100.00 I • s TRANSMITAL LETTER CHECK LIST CIS;CLE APPROPRIATE LETTER/PARAGRAPHS TO BE INCLUDED IN TRANSMITTAL LETTER WELL NAME ,~,~ ~ ~% PTD# ~'~ -~~ Develo meet r~ Ex loration p p Service Stratigraphic CHECK WAAT ADD-OHS "CLUE"• APP][:.IES OPTIONS • MULTI The permit is for a new wellbore segment of LATERAL existing well Permit No, ~~ API No. (lf 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 vritb 20 AAC 25.005(f), all (PIS records, data and logs acquired, for the pilot bole must be clearly differentiated 'in both • name (name on permit plus PIS 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 ~ritb 20 AAC 25.055. Approval to perforate and produce is contingent upon issuance of a conservation order approving a spacing ~ exception. ~Company Hamel assumes-the liability of nay protest to the spacing .exception that may occur. . DRY DITCH ~ All dry ditch sample sets submitted to the SAMPLE Commission must be in no greaser than 30' i , 1•~'" sample intervals from below the permafrost or from where samples are first caught and 0' sample intervals through target zones. • • Waiver Requested Regulation Recommendation and Discussion 1-Underbalanced drilling 25.033(b) and Approval of this waiver is recommended. This well is 25.033(1) planned to be drilled using air. A similar air drilling program has been previously employed drilling shallow wells for coalbed methane (CBM). Tech Cominco (TC) provided a core study performed at UAF designed to determine the porosity and permeability of cores obtained in nearby mineral exploration wells. The study determined that the "best" permeability in the samples examined was about 0.2 md. With such low permeability, it is most unlikely that natural flow would occur while drilling with air. TC has provided a description of the equipment to be employed. In the unlikely event of a flow, TC plans to have 1500 bbls of water in tanks on site to allow the well to be killed. Based on the submitted information, it is determined that the proposed underbalanced drilling operations can be conducted without loss of well control. Underbalanced operations are a roved er 20 AAC 25.033 i). 2-Employing a "rotating 20.035(c) and Approval of this waiver is recommended. In air drilling head" rather than a 25.035 (h) (2) operations, a rotating head is employed to direct return flow diverter, from the well away from the rig floor. A rotating head is a diverter whose design allows the annulus to be continuously sealed while drilling operations are being conducted, Based on the submitted information, it is determined that use of the proposed rotating head will provide an equally effective means of diverting flow away from the rig floor per 20 AAC 25.035 (h) (2 . 3-Not to employ a BOP 25.035 (e) and Approval of this waiver is recommended. A BOP is 25.035 (h) (1) employed to provide additional control ability if the hydrostatic pressure of the drilling fluid were insufficient to contain any formation pressure. The porosity and permeability studies provided by TC have shown that the rock is very "tight". Given the low permeaMlities determined, conventional flow is essentially impossible. Based on the submitted information, it is determined that equipment planned to be used by TC is appropriate for the anticipated subsurface environment and that this equipment will provide an equally effective means of well control per 20 AAC 25.035 (h) (1). 4-Requiring near surface 25.061(a) and Approval of this waiver is recommended. The general area seismic surveys 25.061 (c) is a "hard rock" mineral province. TC has conducted an extensive mineral core exploration effort in the area resulting in over 100 core holes. No shallow gas or abnormal pressure hazards were encountered during this drilling program. Based on the submitted information, it is determined that the mineral exploration drilling program conducted by TC is an equally effective means of determining the likehood of potential shallow gas per 20 AAC 25.061 (c). TEM with SFD ~ 7/12/2005 ~' ~ WELL PERMIT CHECKLIST Field & Pool Well Name: NB 01 Program EXP Well bore seg ^ PTD#:2050950 Company TECK COMINCO ALASKA INCORPORATED Initial Class/Type EXP! PEND GeoArea 885 Unit On1Off Shore On Annular Disposal ^ Administration 1 Permit fee attached - - - - - Yes - - - - 2 Lease number appropriate- - _ - _ - Yes 7-11-2005:-received plat; fegai description on desgnation of operator fo[m._ Well will be on NANA land 3 Unique well.name and number - - -- - -- - - - -- - - - - - - - - - -- - - - -- - - - - - - - - - -Yes _ _ - _ _ _ ,governed by_a.eonfidential exploratiogagreementbetween NANA and_Teck.. - - _ _ - - _ _ _ _ _ _ - - _ _ - _ _ , _ _ 4 Well located in a-defined_pool ----__-_____-____.---_____ ___________N_o-- _---__Exploratorywell__--_-._________-__----_____---.- 5 Well located proper distance from drilling unit-boundary_ _ _ .. - Yes . - - _ - -Drilling unit is agov_ernmental section, This will be the first gas well in_Seckion_18, Nearest property line- .. - 6 Well located proper distance from other wells- _ - - _ Yes with_ADL_389251, 4280' to t_hewest.- Nearest recorded-oiVgas well_is Eagle Creek 1_, 56 miles-to the NNE. 7 Sufficient acreageayail_ablein.drillingunit,-___________________ __________Yes- _____-Only well-in govemmentalsection.__--__---_____-_-__--___-__.__-____--__--_ __ 8 If deviated, is-wellboreplat-included___,_------------------- ---- -- -- NA__ -____-Verkicalwell_--__--__ __--___-_-_---_____---_-- ---,-- -------------- 9 Operator only affected party - - - Yes - - - - - - 10 Operator has-approprtale_bond in farce - -- - - - - - - - -- - -- - - -- - - - - - - - - -- - - - - Yes . _ . _ _ _ _ Bondleceived and is in order Bond submitted far Commissioner signatra[e, SFD 711112005. _ _ _ _ - _ _ _ - - _ _ _ 11 Pe[mit_canbeissuedwithoutconseryatiortorder_________ ________ __________Yes- ____-------___--___-____ ___-_______--__---_______--______---_--_---_-. Appr Date 12 Pe[mit_canbeissuedwithoutadministrative-approval______________ --_-______Yes- -________---_____--_--__ ------------------------------------------------- SFD 7/11!2005 13 Can permit be approved before 15-day wait Yes 14 Well located within area and strataauthor(zedbylnjectionOrder#(put_IQ#in- comments)-(For_NA__ _____________________________-_-_-__-----__--_-____--_____--__--_-__- 15 All wells within 1!4_mile area of review identified (For service well only) - - - - - - - - - - - - - - - NA. _ _ _ _ _ _ _ - . _ - - _ _ . _ _ ... , _ _ _ _ - 16 Pre-produced injector;duration_ofpre productionl_essthan3months_(Forservicewellonly)_-NA__ __________________________________________________________________________ 17 AC_M_P-Finding of Consistency_has been issued_for this project- - _ - _ - - Yes - . - - - June 9,-2003: ACMP_determination found project to be_consistenl with regulatory requi[ements._ - - . - - - .. - . Engineering 18 Conducto[ str-ing-P-ravided - . - - - - - Yes - - - - - - - - - - - 19 Surface casing-protects all_kn4wn. USDWs _ - _ _ _ .. - - - - - - - Yes - . - Surface & production casing will be cemented tQ surface, protecting any shallow water.. SFD 20 CMT_vol_adequate_tocircul_ate-onconductor&surf_csg______________ ________Yes_ .-_- _--____-__-_,__-_____---.-_________-- 21 CMT_vol-adequate_totie-in long string to surfcsg------------------ ----------Yes_ -___-__-----________.-__-_____-__---______-__-_,____---...-.__ 22 CMT_willcoyerallknown_pro_ductiyehorizons-------------------- ------- --Yes_ -----_______.__-____.__-_--_______-__-___-____ -__-___ ______--_________ 23 Casing designs adequate for C, T,B&-permafrost_________________ __________Yes_ -----_--_____-_-_______ __-___-____---__--____-___----._______--_- ---__ 24 Adequate tankage_or reserve pit - _ - - _ _ .. Yes - - - - - Hydrocyclone and cuttings bin will capture returns. Solid waste_to Red Dog solid waste site._ Water to_ 25 If a_re-dill, has_a_ 1.0-403 for abandonment been approved _ . _ _ _ . - NA_ tailingspond_perFPA approval. 1500-bbls water planned on location to_"kill"well if necessa_ry_. - _ _ _ . - - - - _ 26 Adequate wellbore_separation-Proposed--------------- ------- -------- -Yes- ---- --- -- ------- - - -- -- -~------ --- -------- -- -------- ----- 27 Ifdiverterrequired,doesitmeetregulations--------------------- --_-----_ NA__ _-_--_Rotatinghead_inusetodivert_circulatedair_.___,--___-_____--__-__-____ --------------- Appr Date 28 Drilling fluid_ prpgram schematic-& equip listadequate- - Yes - - - _ - - Drilling fluid is_air, Permiability studies by UAF show target formation to hays very low perm-(S 0,2 mda, TEM 711212005 29 BOPEs, do they meet regulation _ - NA- _ 123 mineral exploration wells have_been drilled wiihout_problems, Underbala_nce acceptable. - - - - . - - . - _ /n, /) ` 30 BOPE_press rating appropriate; test to_(pu_t psig in comments)_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ NA_ _ - - _ - _ _ BOP will not_be employed. See comments above. _ - - - - _ _ _ _ _ _ _ - _ _ - - - _ - _ _ _ - _ _ _ - - _ _ _ ~ ~ h/ ~ 31 Choke_manifold complieswlAPtRP-53 (M_ay 84)_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _N_A_ _ _ - _ _ - - A choke manifold-will not be employed._ - - _ _ _ _ - _ - - _ _ . _ _ 32 Work willocc-ur-without operation shutdown_____________ _______ __________Yes_ _-__---_.____-__-__-___-__--________-----.-_____-__-_---_______-__-----_ 33 Is presence-ofH2Sgas_probable. - - ND - - - - - - - 34 Mechanical-condition of wells within AOR yerifed (Forseruice well only) - - - - - - - - - - - - - - NA- _ - _ _ _ _ _ _ - _ - _ Geology 35 Permit-can _be issued wlo hydrogen_sulfidemsasures _ - .. - - - Yes _ - - _ Teck Cominco drilled core hole-#1107 without incident through this samegeologic section at a - - 36 Data_presented oq potential oye-rpressure zones - - - - - - - - -- - - - N_o_ - - _ . _ - location about_250' north of this proposed well. Seismic and velocity data are lacking, but none-of the- - . - - Appr Date 37 Seismic analysis ofshallow gas_zones- - _ _ - _ - - _ - NA- scores ofmineral-borings in-the Red_ Dog-Mine area have ever encountered abnormal pressure, shallow-gas 9r- H25, ~}~ SFD 711112005 38 Seabed conditionsurvey_(ifoff-shore)________________ ___-__ ___--_--_ NA_ , ___----_ !~1~ - - - -- - -- 39 Contact namelphone_forweekly progress-reports [exploratory only]_ _ _ - Yes - .. Rob_Scott .907-426-9127- - , _ - _ - - - Geologic Engineering Pu is Commissioner: Date: Commissioner: Date Co i io Date • IZ.v>
