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206-090
• Image Project Well History File Gover 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. o~Q ~ - Q ~ Q Well History File Identifier Organizing (done> RESCAN ~olor Items: (~Greyscaie items: ^ Poor Quality Originals: ^ Other: NOTES: BY: Maria _ Project Proofing BY: Maria ^ Two-sided IIIIIIIIIIIIIIIIIII DIGITAL DATA ^ Diskettes, No. ^ Other, No/Type: Date Date: g og Liuumuiisiui r~P Scanning Preparation ~ x 30 = ~~~ + =TOTAL PAGES ~ ~~ (Count does not include cover sheet) BY: Maria Date: (~ I Q ~~~ lsl ~/ V 1 Production Scanning Stage 1 Page Count from Scanned File: ~ ~- (count does include cover sheet) Page Count Matches Number in Scanning Preparation: YES NO BY: Maria Date: ~ ~ g/~ S /s/ J/~ /~ Q p~''~ 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. III II'I I) III II I I III Rescanned III IIIIIIIIIII IIIII BY: Maria Date: aes~.~~eeded iuiaiiiaiiiuii OVERSIZED (Scannable) ^ Maps: ^ Other Items Scannable by a Large Scanner OVERSIZED (Non-Scannable) ^ Logs of various kinds: ^ Other:: /s/ Comments about this file: o , ~~ea iuumuuuiui P 10/6/2005 Well History File Cover Page.doc STATE OF ALASKA ALADA OIL AND GAS CONSERVATION COMOSION WELL COMPLETION OR RECOMPLETION REPORT AND LOG la. Well Status: Oil ❑ Gas ❑ SPLUG ❑ Other ❑ Abandoned 1151 - Suspended 1b. Well Class: 20AAC 25.105 20AAC 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.: 8/5/2012. 206 - 090 Z."' Z./ g 3. Address: 6. Date Spudded: 13. API Number: 3105 Lakeshore Drive, Bldg A, Anchorage, AK 99517 7/17/2006 50 073 - 20004 - 00 4a. Location of Well (Governmental Section): PO 11A1 , 7. Date TD Reached: 14. Well Name and Number: Surface: 1655' EWL, 3407' SNE, Sec 17, T31N, Ik18W, KRM 9/8/2007 NB - 03 - Top of Productive Horizon: 8. KB (ft above MSL): N/A 15. Field /Pool(s): 1699' EWL, 3092' SNL, Sec 17, T31N, R18W, KRM GL (ft above MSL): N/A Field: Red Dog Total Depth: 9. Plug Back Depth(MD +TVD): Pool: Kivalina Undefined Gas - 1709' EWL, 3655' SNL, Sec 17, T31N, R18W, KRM Surface 4b. Location of Well (State Base Plane Coordinates, NAD 27): 10. Total Depth (MD + TVD): 16. Property Designation: Surface: x- 584,985.38 y 5,149,048.91 Zone- 7 . 2983' MD, 2966' TVD NANA Regional Corp (FEE - NANA). TPI: x- 585,039.87 y 5,149,003.42 Zone- 7 11. SSSV Depth (MD + TVD): 17. Land Use Permit: Total Depth: x - 585029.63 y - 5148734.01 Zone 7 N/A NANA LOA 18. Directional Survey: Yes U No U Previously submitted 19. Water Depth, if Offshore: 20. Thickness of Permafrost MD/TVD: (Submit electronic and printed information per 20 AAC 25.050) N/A (ft MSL) 640' • 21. Logs Obtained (List all logs here and submit electronic and printed information per 20AAC25.071): 22.Re- drill /Lateral Top Window MD/TVD: Array induction, Compensated density neutron,Caliper, Gamma ray N/A 23. CASING, LINER AND CEMENTING RECORD WT. PER SETTING DEPTH MD SETTING DEPTH TVD AMOUNT CASING GRADE TOP BOTTOM TOP BOTTOM HOLE SIZE CEMENTING RECORD PULLED 13 -3/8" 61# J -55 Surface 91' Surface 91' 18" 26 sx permafrost 0' 8 -5/8" 24# J -55 Surface 695' Surface 695' 12 -1/4" 435 sx Coldset 11 0' 5 -1/2" 15.5# K -55 Surface 2789' Surface 2733' 7 -7/8" 82.4 sx Coldset II + 0' 372 sx Type 1 24. Open to production or injection? Yes ❑ No p 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 RecEPIED 26. ACID, DEPTH INTERVAL (MD) AC AMOUNT AND KIND OF MATERIAL USED SEP 0 6 n17 See previous 10-407 submitted p GOC 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 lig Sidewall Cores Acquired? Yes ❑ No 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. SCANNED MAR 2 0 2013 RE3DMS SEP 0 7 261 Form 10-407 Revised 12/2009 CCOM 911.Rpt.EFtS1 f i Submit original only , ti�b • • 29. GEOLOGIC MARKERS (List all formations and markers encountered): 30. FORMATION TESTS NAME MD TVD Well tested? U 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' Mississippian Kuna Fm. Kivalina Member Top Surface Surface Base 2145' 2139' Ikalukrok Member Top 2145' 2139' Formation at total depth: Ikalukrok Member 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: dean w Phone: 907 - 426 - 9326 Date: 4u6 usf js 2' /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 1 b: Classification of Service wells: Gas Injection, Water Injection, Water - Alternating -Gas Injection, Salt Water Disposal, Water Supply for Injection, Observation, or Other. Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPI (Top of Producing Interval). Item 8: The Kelly Bushing and Ground Level elevations in feet above mean sea level. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits (ex: 50- 029 - 20123- 00 -00). Item 20: Report true vertical thickness of permafrost in Box 20. Provide MD and TVD for the top and base of permafrost in Box 28. Item 23: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 24: If this well is completed for separate production from more than one interval (multiple completion), so state in item 1, and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval). Item 27: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut -in, or Other (explain). Item 28: Provide a listing of intervals cored and the corresponding formations, and a brief description in this box. Submit detailed description and analytical laboratory information required by 20 AAC 25.071. Item 30: Provide a listing of intervals tested and the corresponding formation, and a brief summary in this box. Submit detailed test and analytical laboratory information required by 20 AAC 25.071. Form 10 -407 Revised 12/2009 Teck Alaska Incorporated +1 907 426 2170 Tel Red Dog Operations +1 888 900 1179 Fax 3105 Lakeshore Drive www.teck.com Building A, Suite 101 Anchorage, AK USA 99517 Teck August 15, 2012 Ms. Cathy Foerster, Chair Alaska Oil and Gas Conservation Commission 333 West 7 Ave., Suite 100 Anchorage, Alaska 99501 RE: Well Completion Report, Plug and Abandonment Teck Alaska Incorporated, NB -03 (PTD 206 -090) Sundry No. 312 -218 Dear Ms. Foerster, Teck Alaska Inc. hereby submits its Well Completion Report for the plugging and abandonment of its NB- 03 well. The well has been completely filled with cement, cut off below ground level, a marker plate installed and the stub buried. Enclosed please find: • Form 10 -407 Well Completion or Recompletion Report and Log • As -P &A'd Wellbore Schematic • Summary of P &A Operations • Photographic Documentation of the Well's Surface Abandonment If you have any questions or require additional information, please contact me at (907) 426 -9326 or Bill Penrose of SolstenXP at (907) 264 -6114. Sincerely, Teck Alaska Incorporated 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 -03 P &A Operations Summary July 25, 2012 Pump 20 bbls water through choke to heat to 70 degrees. Mix 26 bbls of 8.8 ppg brine and pump downhole. Mix and pump another 25 bbls 8.8 ppg brine. Max pressure 150 psi. Mix 66 bbls of 10.7 ppg permafrost cement and pump into well at 2 bpm. Max pressure 400 psi. Well on vacuum — shut in. July 27, 2012 Load and heat water, mix 15 bbls of 10.7 ppg permafrost cement and pump into well at 2 bpm, 0 psi. Well took 10 bbls to fill. Total cement pumped into NB -03 is 76 bbls. Pump remaining cement to slop tank, clean up equipment and ship to NB -05. July 28, 2012 Excavate around NB -03, locate liner delineating original ground level from pad. Cut off casings and wellhead. Install marker plate and backfill excavation. August 5, 2012 Re- excavate NB -03 (photos sent to town indicate inadequate cement top -off in annulus). Remove marker plate, top off well and all annuli with cement, re- install marker plate and back -fill. .. • • NB -03 As P & A'd Wellbore Diagram ` 4 ,.:444:::4v4:4 K A a� � --•s -- 18 Hole �• , . 13 - 3/8" Casing J - 55, 61 lbs / ft 34.4.414,31$.4 ' TD @ 91' r . • ' .' ,,S440•449, ..,. $ y .;Y :C 4.,Z '� �- 12 -1/4" Hole 4;. ut �- Base of Permafrost 640' 8 5/8 Casing €. *444 .ti J -55, 24 lbs / ft . 4 V AV iv: TD @ 695' e", Or .. . .• :•;: fp + 4 4 ► -- 7-7/8" Hole *4.3444 PA ,••�y , �.. • . '' ky9 '� f . : 1,436' - 1,446', 1,680' - 1,700' y : a 1,810' - 1,830', 1,830' - 1,850' ' ' 1 910' - 1 930' 1 970' - 1 990' "`4 + ' + . +' i 1,4%.4:441 2,014' - 2,034', 2,075' - 2,095' ` 4.;$014: + : 2,120' - 2,140', 2,170' - 2,190' �i ''f�� + , 2,230' - 2,250', 2,260' - 2,270' n ► . �. ".. 2,365' - 2,385', 2,390' - 2,410' it, **;§:11 2,420' - 2,440', 2,450' - 2,460 ••day 2,504' - 2,514', 2,590' - 2,600' 5 1/2" Casing 2,625' - 2,645', 2,690' - 2,700' K - 55, 15.5 Ibs / ft s 4 . N. st Cement Plug 2,765' - 2,789' TD @ 2,733 . f Fish (Bit & DC's) 2,794' - 2,983' _,W: TD 2,983' REV 13 AUGUST 2012 gilic,,,,. . 3 „,,,,,.,,,,.., ,,.,..,_ 111 lijI4'h I I I 1 1 - ' , , , 1 il, ,- ‘, , . • • 4 • alli AIL d igir ■ _ li*i tea. iii. ...„ . i t 0 a I t . 1 . 1 „- , 1, - --1: , :. ..., 4 . 4 ..r 4y, t;= v i i {...�^ s f l • n � t ' t ��yl� �, fE , � 5 ' v 4 r ' j 4 / #3.: . t, ,.,, s , ' 4,- \ jilt... 8 / , , } is ' . ' ' 111 : •iii ray 1 _`# cr " " s ; ;, ,� y x 4 , .,:f.1 ''''', '' : 1: 'ti 4 $• -je ''';;••••,,, V, ; R ' . . " s i b > 1 "1 ' . ' ,,, . Or , lt ya,� . AYr� , t , fi ' y fr q� . y a '` 1 ' . r ,. ' } " STS _ ,, - ' 'I* u , * ' f . a te ' ? * .1. t E .0 , a K - °; i (ty •t .. i`- � � a 'it ,l' Arr , ' ' * . . , * . ,` \ ''`'' l + k * ;A I " ' ' ''' 1 , , , faist * , w 3 � 41' w '.. • a Ilk" * a ' • ' , st vJ i w + a w v 4 • ri - a .1 r f • r • , -. k 1 S4° t .' 4 alke, • M MIN • /� 4 . M. ,ti fi . • • r� �e� + * r , k► t .�. k , v s yk irb. r * ,�b °d� r f. f., t'f . * , ` N � , r r t , 7C ; * �' • " � t.+r. .4444-4 oR ' ' ' 411 * 4. V t • ' , e, Ill' r 4. ,�, 'Y. f • t Y s ,' ' # „1 4,.. ' ' / . 4,* . - ' ' ' • ._ "� F D v / ' •:,' #. ,' - 11 * - ft/. 1 4 p /�. i{ ti f�� * - i a' f r r ` I 4 , • 1 45 _.. li e I . ' ! ''eft g $^ '�* / i' # 1 + ' Di * ,r' 1-.4 . s , ■ 111 44 t 4 - 7'1 - .1'. e * . A V ic ' 0 . ''',t ;-''''' ' 4.. /''' '' r , ,,/ sJ .i.,, ; 0,, 4..., - 44_ . i , j....,,if t . 1 A .4):fr • ,, s 4 ,� t , 4' - ! / i 1 ir 4 r i t e • • \ LIE DT Lii\LASA 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 a©6 --e, 3105 Lakeshore Dr., Bldg A Anchorage, AK 99517 Re: Red Dog Field, Kivalina Undefined Gas Pool, NB -03 Sundry Number: 312 -218 Dear Mr. Harvie: SLANNEDJUN 2 9 ZO1L Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for reconsideration. A request for reconsideration is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. Sincerely, Cathy . Foerster .� Chair DATED this I D day of June, 2012. Encl. • SI It ,, RECEIVED STATE OF ALASKA JUN 1 3 2012 • ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS AOGCC 20 AAC 25.280 1. Type of Request: Abandon 0 • Plug for Redrill ❑ Perforate New Pool ❑ Repair Well ❑ Change Approved Program ❑ Suspend ❑ Plug Perforations ❑ Perforate ❑ Pull Tubing ❑ Time Extension ❑ Operations Shutdown ❑ Re -enter Susp. Well ❑ Stimulate ❑ Alter Casing ❑ Other: ❑ 2. Operator Name: 4. Current Well Class: 5. Permit to Drill Number: Teck Alaska Incorporated Development ❑ Exploratory 0 • 206 - 090 ' 3. Address: Stratigraphic ❑ Service ❑ 6. API Number: 3105 Lakeshore Dr, Bldg A, Anchorage, AK 99517 50 - 073 - 20004 - 00 . 7. If perforating, closest approach in pool(s) opened by this operation to nearest 8. Well Name and Number: property line where ownership or landownership changes: NB - 03 . Spacing Exception Required? Yes El 0 No 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): 2,983' • 2,966' . 2,733' 2,733' None None Casing Length Size MD TVD Burst Collapse Structural Conductor 91' 13 -3/8' 91' 91' 2,730 psi 1,130 psi Surface 695' 8 -5/8" 695' 695' 2,950 psi 1,370 psi Intermediate 2,789' 5 -1/2" 2,789' 2,733' 4,810 psi 4,040 psi Production Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): 1,436' - 2,700' 1,436' - 2,644' 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 El BOP Sketch ❑ Exploratory El r Development ❑ Service ❑ 14. Estimated Date for 15. Well Status after proposed work: Aug - 2012 Commencing Operations: Oil ❑ Gas ❑ WDSPL ❑ Suspended ❑ 16. Verbal Approval: Date: WINJ ❑ GINJ ❑ WAG ❑ Abandoned o 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 Name Micheal Harvie Title Senior Mining Engineer Signature Phone Date ( /G / , Z 907- 426 -9233 OO COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: 3 2•- 21 t Plug Integrity BOP Test V Mechanical Integrity Test ❑ Location Clearance Other: B" 1 S 1- to 15 p 5 L A/ h f 1 n 5p re1 = ar as I r /e4c1-eci 1 Ph Ott v n d 6' 6 Li , r- 1 6. v f ofF e a S J r) c1 c� w? /d re p I4 tz° Subsequent Form Required: l 0 - 4 APPROVED BY a -t a � ^� Approved by: , COMMISSIONE THE COMMISSION Date: 6 - /�'..l C./ v �� 0RIGINALREoms Jur'I � � �t` Submit in Duplicate �� ` Form 10 -403 Lsed 1/2010 // rJ /r L, J • . 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 -03 (PTD 206 -090) Dear Ms. Foerster, Teck, Alaska Inc. proposes to plug and abandon its NB - 03 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 +2,733' MD /TD to surface by pumping 10.7 ppg permafrost cement as indicated on the enclosed wellbore schematic. The abandonment of NB -03 will be accomplished as indicated in the attached P &A procedure. This work is expected to commence in August of this year. If you have any questions or require additional information, please contact me at (907)- 426 -9233, Thomas Farr at (907)- 426 -9326 or Bill Penrose at 264 -6114. Sincerely, Teck Alaska Incorporated Micheal Harvie Sr. Mine Engineer cc: Bill Penrose - SolstenXP Attachments 1 • • P &A Procedure: NB - 03 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 • • (as determined by weighing samples using a mud balance), commence bullheading cement down the 5 -1/2" casing. Continue pumping cement until all cement in the batch mixer is pumped away. If the pumping pressure reaches 3,800 psi, divert any remaining cement in the batch mixer to the well fluid return tank(s) and treat the pH to prevent the cement from setting up. Do not stop rotation of the paddles until tanks are empty. Note: The cement slurry is designed with a pumping time of 6 hours. Skip to Step 17 below. 10. If bullheading cement into the well proves unfeasible, bleed off pressure, break the pumping line from the well and back off the crossover and 1502 connection. Notify AOGCC field inspector at Prudhoe Bay that BOPE are going to be rigged up and tested and obtain a witness waiver from the inspector. 11. Reinstall the wellhead and install the wellhead x BOP flange fabricated for this purpose. b 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. Op 13. R/U work platform and false rotary assembly on top of BOPS. 14. RIH with 1" tubing to +3,076' TD or to any shallower obstruction. If an obstruction is found above 1,130' (top perf), attempt to work past it while circulating. If tubing cannot be run all the way to TD, call the Anchorage office which will coordinate with the AOGCC on the next step. 15. With the 1" tubing at TD, mix and pump cement as follows: 16. Mix 65 bbls of permafrost cement as: Density 10.70 ppg 5'Z el�sI rj 0 3 Z / f'i Yield 2.47 cu ft/sk , Mix Water 11.724 gal /sk c7 73C� � , o2 3 b J �' �'� b /S 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 mixer. Mix 74 sacks of cement into each tank and establish circulation within the batch e . 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 — 04A 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 h o f0 c/ G vvv1 Z P1 t <i C e) 23. Photographically document the condition of the top of the well before welding on the marker plate. 24. Weld a' /4" thick, 13'/2" diameter steel marker plate over the top of the cut -off well casings. AOGCC and Teck representatives to witness. Marker plate to have the following information bead - welded onto it Teck Alaska Inc. NB -03 API #50- 073 - 20004 -00 PTD #206 -090 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 — 04A. Photographically document the final location condition. WJP 05/25/12 • • • NB -03 Current Wellbore Diagram kA pr '411:4 ., tO . 18" Hole 13 - 3/8" Casing VO 4: K J - 55, 61 lbs / ft TD @ 91' ,. .00 a m r Res 12-1/4" Hole L tvse 4g 4 8 - 5/8" Casing �` - f Base of Permafrost 640' J -55, 241bs /ft TD @ 695' ,s4 .1 f 7 - 7/8" Hole 1,436' - 1,446', 1,680' - 1,700' tt 1,810' - 1,830', 1,830' - 1,850' to tkil 1,910' - 1,930', 1,970' - 1,990' tifti 2,014' - 2,034', 2,075' - 2,095' 2,120' - 2,140', 2,170' - 2,190' { 2,230' - 2,250', 2,260' - 2,270' 2,365' - 2,385', 2,390' - 2,410' 4 2,420' - 2,440', 2,450' - 2,460 piti 2,504' - 2,514', 2,590' - 2,600' 5 - 1/2" Casing 2,625' - 2,645', 2,690' - 2,700' it. K - 55, 15.5 Ibs / ft Po- Cement Plug ' - TD @ 2,733' g ,765 2,789 ' Fish (Bit & DC's) 2,794' - 2,983' TD 2,983' REV 6 JUNE 2012 • • NB -03 P & A Wellbore Diagram Cement Bullheaded In 0 40 044* -.NE - 18" Hole 13 - 3/8" Casing • 4 4 J - 55, 61 Ibs / ft , TD @ 91' 4 t4 V4 0 -.; 0 4 E t 12-1/4" Hole 8 - 5/8" Casing; --0---- Base of Permafrost 640' J - 55, 24 lbs / ft TD @ 695' off .� r + e ,t -•f 7 - 7/8" Hole tt 03 1,436' - 1,446', 1,680' - 1,700' 1,810' - 1,830', 1,830' - 1,850' 1,910' - 1,930', 1,970' - 1,990' to lits 2,014' - 2,034', 2,075' - 2,095' Ete. wit 31 tki: 2,120' - 2,140', 2,170' - 2,190' 2,230' - 2,250', 2,260' - 2,270' 2,365' - 2,385', 2,390' 2,410' 2,420' - 2,440', 2,450' - 2,460 .` 104, 2,504' - 2,514', 2,590' - 2,600' 5 - 1 /2" Casing ".: 2,625' - 2,645 2,690' - 2,700' K - 55, 15.5 Ibs / ft , TD @ 2;733 Cement Plug 2,765' - 2,789 - Fish (Bit & DC's) 2,794' - 2,983' TD 2,983' REV 6 JUNE 2012 NB -03 P & A Wellbore Diagram Cement Circulated In stti .,' 18" Hole 13 - 3/8" Casing , k % , J - 55, 61 lbs / ft `` TD @ 91' ' M +4 'w0 12-1/4" Hole f,► 4 ti 8 - 5/8" Casing 111001114ir f- Base of Permafrost 640' J -55, 241bs /ft T to ■INt-i4440:4 D @ 695' WI 41 NI Pi (44 •P4 ',;� • ,. i '. 7 - 7/8" Hole ii$1, .404 4104 . 1,436' - 1,446', 1,680' - 1,700' `� , 1,810' - 1,830', 1,830' - 1,850' 1,910' - 1,930', 1,970' - 1,990' + 2,014' - 2,034', 2,075' - 2,095' 2,120' - 2,140', 2,170' - 2,190' 44 VO t 14* 2,230' - 2,250', 2,260' - 2,270' 04.0.04 tit4 614 2,365' - 2,385', 2,390' - 2,410' 1' Tubing 2,420' - 2,440', 2,450' - 2,460 TD @ +/- 2,700' -�� y 2,504' - 2,514', 2,590' - 2,600' 5 - 1/2" Casing 40. >,, xt 2,625' - 2,645', 2,690' - 2,700' K -55, 15.5Ibs /ft z TD @ 2,733' Cement Plug 2,765' - 2,789' 0\ Fish (Bit & DC's) 2,794' - 2,983' TD 2,983' 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, ecti Pepvufde Drilling Manager FullCotor_sma 310 K Street, Suite 700 asAMED 't Anchorage, Alaska 99501 JUL 1 r 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 -02 205 -096 312 -152 - ed Do. • - -' I . -1 i 31 - Red Dog NB -04A 06-089 - Red Dog NB -05 206 -097 312 -155 Guy Schwartz Senior Petroleum Engineer AOGCC 793 -1226 (office) 444 -3433 (cell) 6/15/2012 • \ 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 Tom Farr Chief Mining Engineer Teck Alaska Incorporated 3105 Lakeshore Drive, Bldg. A e),0 j d Anchorage, AK 99517 Re: Red Dog Field, Kivalina Pool, NB -03 Sundry Number: 312 -153 Dear Mr. Farr: Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for reconsideration. A request for reconsideration is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. Sincerely, Cathy . Foerster Chair C DATED this 1 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 Ms. Cathy Foerster, Chair Alaska Oil and Gas Conservation Commission RECEIVED 333 West 7 Ave., Suite 100 Anchorage, Alaska 99501 APR 16 201z RE: Sundry Application to Plug and Abandon pp ��±± Teck Alaska Incorporated, NB -03 (PTD 206 -090) �` OGCC Dear Ms. Foerster, Teck Alaska Inc. proposes to plug and abandon its NB - 03 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 2,660' MD to surface by pumping 10.7 ppg permafrost cement as indicated on the enclosed wellbore schematic. The abandonment of NB -03 will be accomplished as indicated in the attached P&A procedure. This work is expected to commence in August of this year. If you have any questions or require additional information, please contact me at (907) -426 -9326 or Bill Penrose at 264 -6112. Sincerely, Teck Alaska Incorporated Thomas Farr Chief Engineer cc: Bill Penrose - SolstenXP Attachments II, • a Ilk '� RECEIVED STATE OF ALASKA APR 1 b 2012 ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS AOGC C 20 AAC 25.280 1. Type of Request: Abandon El • Plug for Redrill ❑ Perforate New Pool ❑ Repair Well ❑ Change Approved Program ❑ Suspend ❑ Plug Perforations ❑ Perforate ❑ Pull Tubing ❑ Time Extension ❑ Operations Shutdown El Re -enter Susp. Well ❑ Stimulate ❑ Alter Casing El Other: ❑ 2. Operator Name: 4. Current Well Class: 5. Permit to Drill Number: Teck Alaska Incorporated Development ❑ Exploratory Ei • 206 -090 • 3. Address: Stratigraphic ❑ Service ❑ 6. API Number: 3105 Lakeshore Dr., Bldg A, Anchorage, AK 99517 50- 073 - 20004 -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 NB -03 0 9. Property Designation (Lease Number): 10. Field / Pool(s): NANA Regional Corporation (FEE -NANA) Field: Red Dog / Pool: Kivalina Undefined Gas • 11. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD (ft): Effective Depth TVD (ft): Plugs (measured): Junk (measured): 2,983' • 2,966' • KB KB None None Casing Length Size MD TVD Burst Collapse Structural Conductor 91' 134/8' 91' 91' 2,730 psi 1,130 psi Surface 695' 8 -5/8" 695' 695' 2,950 psi 1,370 psi Intermediate 2,789' 5 -1/2" 2,789' 2,733' 4,810 psi 4,040 psi Production Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): 1,436' - 2,700' 1,436' - 2,644' 2 -7/8" J -55 2,660' 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 151 BOP Sketch ❑ Exploratory 0 • Development ❑ Service ❑ 14. Estimated Date for 15. Well Status after proposed work: Aug -2012 Commencing Operations: Oil ❑ Gas ❑ WDSPL ❑ Suspended ❑ 16. Verbal Approval: Date: WINJ ❑ GINJ ❑ WAG ❑ Abandoned El • Commission Representative: GSTOR ❑ SPLUG ❑ 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Bill Penrose 907 - 264 -6114 Printed Name Tom Farr Title Chief Mining Engineer Signature Phone Date pry T, ,,,- 907 -426 -9326 April 9, 2012 COMMISSION USE ONLY C � Conditions of approval: Notify Commission so that a representative may witness Sundry Number: 3 i 2 3 .1 Plug Integrity V BOP Test ❑ Mechanical Integrity Test ❑ Location Clearance LJ Other: /r0 /'`I ! 1 , '259 r ,- 4.5 !kzdi Fed , pL2o to Gt' °c'"k'',fva �`S /n� Cv,� S1lG �'6�c r- 66 Subsequent Form Required: / VAA./7 �/� AP PROVED BY Approved by: / i�4�`t'7� COMMISSIONER THE COMMISSION Date: 4'— 1q I R BS APR 1 2011 •''° � �`z j kr,fr Form 10-403 Revised 1/2010 R 1 G 1 N ,A D M t Dlit iii // • 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 - 03 • 1. MIRU camp and equipment. Do not commence well operations until camp operations have been established, personnel are settled in and all equipment and materials required for this job are onsite. 2. Check all annuli for pressure. If any is found, document pressure and attempt to bleed it off. If it does not bleed off or if it re- builds, contact Anchorage office for plans to deal with it. 3. Rig up pump and lines to pump down 2 -7/8" tubing and take returns from the 2 -7/8" x 5 -1/2" annulus. Pressure test lines to 1,000 psi. 4. Fill one mixing tank with 10 -15 bbls of warm water. 5. Pump water down 2 -7/8" tubing with 0.5 bbls /min flow rate to establish circulation. Take returns to holding tanks provided by Teck. If no circulation established, RU wireline with pressure control equipment. 6. PT wireline equipment to 250 psi low /3,000 psi high. 7. RIH with 5'of 1- 11/16 ", 4 spf tubing puncher /CCL to 2,600' and punch 2 -7/8 "tubing. 8. POOH with wireline. Confirm shots fired. 9. Pump water down 2 -7/8" tubing with 0.5 bbls /min flow rate to establish circulation. Take returns to holding tanks provided by Teck. 10. Mix 60 bbls of permafrost cement as: Density 10.70 ppg Yield 2.47 cu ft/sk Mix Water 11.724 gal /sk Thickening Time 6.0 hrs Setting Time 30.0 hrs Use both Batch Mixer tanks to mix this volume. Have 19 bbls of warm water in each tank, establish circulation within the Batch Mixer. Add 3.5 super sacks (7,000 lbs) of cement into each tank, continue mixing. Once at designed density at 10.7 ppg (as determined by weighing samples using a mud balance), commence pumping cement lb Teck down the 2 -7/8" tubing using the triplex pump, taking returns out of the 2 -7/8" 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 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 — 04a location. 15. Using excavator, excavate around the wellhead to a depth of five feet below original, surrounding tundra level. 16. After WOC period is finished and using a cutting torch and hydraulic jack hammer (for cement), cut all casing and tubing strings off to leave well severed 4' — 5' below tundra level. 17. Remove original guardrail, cellar, wellhead and severed casing /tubing. 18. Top off all annuli and tubing in well with cement if necessary. AOGCC and Teck representatives to witness. 19. Photographically document the condition of the top of the well before welding on the P g marker plate. 20. Weld a' /4" thick, 16" diameter steel marker plate over the top of the cut -off well casings. AOGCC and Teck representatives to witness. Marker plate to have the following information bead - welded onto it: Teck Alaska Incorporated NB - 03 API #50- 073 - 20004 -00 PTD #206 -090 21. Photographically document the welded -on marker plate. 2 Teck 22. Back -fill excavation with original soil. Top excavation with fifteen yards of clean gravel brought out from Red Dog Mine, mounding it over the well to compensate for settling as soil thaws. 23. Clean location, obtain site clearance approval from AOGCC representative on location and transport all personnel, equipment and materials to NB — 04a. Photographically document the final location condition. 3 • • NB -03 Current Wellbore Diagram x - , - .;$.41•4 0. 173 4 4. IV ,t4 .......E_____ 18" Hole itti Ni '�` 13 - 3/8" Casing ' J -55, 61lbs /ft TD @ 91' *::Iii 12 -1/4" Hole 8 - 5/8" Casing s �- Base of Permafrost 640' 4 At J - 55, 24 1bs / ft TD @ 695' X NV fl Oti 6 lit) -...--- 7 - 7/8" Hole ISI 6: 1,436' - 1,446', 1,680' - 1,700' IN et( 1,810' - 1,830', 1,830' - 1,850' 1,910' - 1,930', 1,970' - 1,990' kii tit vo / 2,014' - 2,034', 2,075' - 2,095' r- 1/ w i' 3 „ `6 1 'iiii 41 2,120' - 2,140', 2,170' - 2,190' fiii Ni t ® / 3 4 76,60 5 2,230' - 2,250', 2,260' - 2,270' Pot Fr q P in Mi 2,365' - 2,385', 2,390' - 2,410' 2 - 7/8" Tubing _ 2,420' - 2,440', 2,450' - 2,460 TD @ 2,659.84' 2,504' 2,514', 2,590' - 2,600' 5 - 1/2" Casing 2,625' - 2,645', 2,690' - 2,700' K - 55, 15.5 lbs / ft TD @ 2,733' _, Fish (Bit & DC's) 2,794' - 2,983' Fe 1 - :E r:-.? X b +i 3 TD 2,983' REV 7 NOV 2011 . • • NB -03 P &A Wellbore Diagram ilifits24401041 :Ns, 51/40044 440.4.4 18" Open Hole 13-3/8" Casing J -55, 61 lbs / ft .:- TD @ 91' 12 -1/4" Open Hole 8-5/8" Casing Base of Permafrost 640' J - 55, 24 lbs / ft -► TD @ 695' 000 ototogig AAUP ' VON CA 0 PA ifti i 4+7 KV 30000 MPS, - 7- 7/8" Open Hole $10 e i tows 1:41:4 ttekt091 0; 1,436' - 1 ,446', 1,680' - 1,700' itgrt:sizs 1,810' - 1,830', 1,830' - 1,850' Al 4 4 WOW 04 P 1,910' - 1,930', 1,970' -1,990' • 2,014' - 2,034', 2,075' - 2,095' VS 2,120' - 2,140', 2,170' - 2,190' $ 2,230' - 2,250', 2,260' - 2,270' dst + 2,365' - 2,385', 2,390' - 2,410' 2-7/8" Tubing v. 2,420' - 2,440', 2,450' - 2,460 TD @ 2,659.84' .1.44.1444 Itoi; 2,504' - 2,514', 2,590' - 2,600' 5-1/2" Casing r : 2,625' - 2,645', 2,690' - 2,700' K -55, 15.5Ibs /ft -- -,►- TD @ 2,733' Vt. 44 04 italw: TD 2 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 Aidt Oa APR 1 . 2011 Anchorage, AK 99501 Attention: Mr. Dan Seamount, Chairman ao' - O c sO 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.farr c(�teck.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. Thornas Farr, Chief Engineer, Red Dog Mine 5. !r . ~~ ~ ~~ _,~ _ ,~~ Y "f a `,fit, . a~ { ~ ~ • ~~, ., ,»~, MICROFILMED. 6/30/2010 DO NOT. PLACE ANY NEW MATERIAL UNDER THIS PAGE C:\temp\Temporary Internet Files\OLK9\Microfilm_Marker.doc 3~ ~~, DATA SUBMITTAL COMPLIANCE REPORT 7i7izoos Permit to Drill 2060900 Well Name/No. NB 03 Operator TECK COMINCO ALASKA INCORPOR API No. 50-073-20004-00-00 MD 2985 TVD 2983 Completion Date 7/31/2006 Completion Status SUSP Current Status 1-SBNG UIC N REQUIRED INFORMATION Mud Log No Samples No Directional Survey No DATA INFORMATION Types Electric or Other Logs Run: Array Induction, Comp. Density, Neutron, Caliper, Gamma Ray (loggin (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 og 14505 Gamma Ray 5 Blu 695 3435 Open PB 1 MD Borehole Direction, GR 29-Jul-2006 ~og 14505 Sonic 5 Blu 695 3435 Open PB 1 MD Waveform Sonic, GR 29-Jul-2006 '~k6g 14505 Induction/Resistivity 5 Blu 695 3435 Open PB 1 MD Array Induct, !, Comp Den, Nuetron, Caliper, GR 29-Jul-2006 l~'~ EA C Las 14505 Induction/Resistivity 183 1048 Open PB 1 Precision Energy Services Wave, ML and CM Quad in LAS C Las 15724 Induction/Resistivity 596 2793 Open 12/6/2007 Precision Energy Services ~, Plus Graphics !~ Induction/Resistivity 25 Blu 695 2788 Open 12/5/2007 Weatherford Array Denss/Neut onmCalipereGR '„rL'og Sonic 5 Blu 695 278$ Open 12/5/2007 Weatherford Waveform Sonic ~g Cement Evaluation 5 Blu 0 2755 Case 12/5/2007 Weatherford Cement Bond Well Cores/Samples Information: __ ___ Sample Interval Set - -Name Start Stop Sent Received Number Co me nts Cuttings 1707 2986 1180 DATA SUBMITTAL COMPLIANCE REPORT 7i~~zoos Permit to Drill 2060900 Well Name/No. NB 03 Operator TECK COMINCO ALASKA INCORPOR API No. 50-073-20004-00-00 MD 2985 ND 2983 Completion Date 7/31/2006 Completion Status SUSP Current Status 1-SBNG UIC N ADDITIONAL INFORMATION Well Cored? Y /~ Daily History Received? / N Chips Received? ~J Formation Tops ~/ N Analysis Received? Comments: -- -------------- -- ------- t v ~ ~~ n -- Compliance Reviewed By: _____ Date: __-__ Wr .c,.cJ'~ -:~ _,<~ ~~_ ~.~~ E & P SERVICES, INC. 1 a~~ -bid ~ ~~ ~ .~a;~i £, 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 i 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(a.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 & P Services, Inc. .,,E _~ ~/ ,; ._. :=~' 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 1 itb'G 1 Vl 2 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.russell@fairweather.com}; jke{afant cer adv-res.com; sbumgardner@adv-res.com; Maunder, Thomas E (DOA}; Copoulos, Arthur E (DNR); Michael Jungreis; Bill Van Dyke (vandykpp@rogershsa.com); Greene Marie NANA; Paul Glavinovich (PauLGlavinovich@nana.com); kdawson@alaska.eom; Clough, James G (DNR}; Lively Jeff VANM; Platt, Dudley (DOR sponsored}; JCaballero@adv-res.com Cc: Hendricks Wallace RDOG; Thornton George RDOG; Draper Warren RDOG; Kulas Jim RDOG; Turner Kent SPOK; DiLuzio Bruce SPOK Subject: Red Dog Gas Project All Noted: Please note that Wally Hendricks will be the new contact for aA 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, Bldg. A Anchorage, Ak 99517 Email: Wallace Hendricks@teckcominco.com Phone: 907-426-9806 Red Dog Office Qirect 907-426-9136 Red Dog PAC 307-232-9639 Wyoming Office Direct 307-267-1342 Cell Phone gas-~~,c~ ~o~-o~~ Thanks for all your help on this new and innovative project. Jerry Booth 509.979.3620 -Cell Phone ao~- a~ 1/9/2008 • E & P SERVICES, INC. October 31, 2007 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 • R.~~ y ~Q i~QV ~ 1 ZOCi? A(a~k~ Qil & G~~ ~r3~~. Corrtr~i~sion . Ancharag~ Attention: Mr. Tom Maunder, P.E., Petroleum Engineer Re: Completion Report, Form 10-407 Teck Cominco Alaska Incorporated Red Dog Shallow Shale Gas Exploration Program Well No. NB-03 (Sidetrack Hole) PTD No. 206-090, API No. 50-073-20004-00 Dear Mr. Maunder: The above referenced Completion Report and supporting documentation is enclosed. The Completion Report includes the following attachments: • Lithologic log (Description of Drill Cuttings) • Wellbore Diagram • Well History • As-built Location Plat • Completion Summary (Perforation depths, hydraulic frac descriptions) • Array Induction, Comp Density/Neutron, Caliper/Gamma Ray Log • Waveform Sonic Log • Cement Bond Log • CD with TIFF, PDF, and LAS files • Gyro survey of remaining part of original hole, and sidetrack hole survey data • One (1) set washed and dried drill cuttings samples (submitted in separate box due to size) ORIGINAL 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 • (907) 258-3446 • (907) 279-5740 ~ • C~ Both the Operator (Teck Cominco Alaska Incorporated), and the landowner (NANA Regional Corporation) respectfully request that the Completion Report with attachments, as well as previously submitted Requests for Sundry Approvals, and Weekly Operations Summary Reports for this well be held confidential for the period allowed under 20 AAC 25.537 (b) and (d). Thank you for your attention to this request, and for your clarif cation on various regulatory issues during the drilling of the Red Dog shale gas exploration wells. Sincerely, ~ ~ ~~ ~~''---W--~--.._._......_ w~ R. C. Gardner for Teck Cominco Alaska Incorporated Enclosures cc: Jerry Booth, Teck Cominco Alaska Incorporated ~L~~ oiL A~®oAS Co~vs~~v~,~io~ Connnni iorv ~10V 0 I I 1a. Well Status: Oil^ Gas^/ Plugged ^ Abandoned ^ Suspended ^ 20AAC25.105 zoaaczat~o GINJ^ WINJ^ WDSPL^ WAG^ Other^ No. of Completions: 1b. e : pCg. L'Of-i(I1jSS Development ~IChOfa~@Exploratory~ Service ^ StratigraphicTest^ 2. Operator Name: Teck Cominco Alaska Incorporated 5. Date Comp., Susp., or ~ Aband.: 10/10/2007 12. Permit to Drill Number: \ 206-090 f ~O'1-o1~4, '~~~ - 3. Address: 3105 Lakeshore Dr.Bldg A, Ste 101, Anchorage, AK 99517 6. Date Spudded: 7/17/2006 13. API Number: 50-073-20004-00 ' 4a. Location of Well (Governmental Section): Surface: 1654.848. EWL,3407.OOft SNL, Sec.17,T.31 N.,R.18 W. I{RM 7. Date TD Reached: g/g/2007 14. Well Name and Number: NB-03 , Top of Productive Horizon: 1699.09ft EWL,3092.1 Oft SNL, Sec.17;T:31N.,R.18ViT TERM 8. KB (ft above MSL): 1080- Ground (ft MSL): 1075 15. Field/Pool(s): Exploratory - Total Depth: 1709.33ft. EWL,3654.518. SNL, Sec.17,T.31N.,R.18W.,KRM 9. Plug Back Depth(MD+TVD): 2765 MD 2749 TVD 4b. Location of Well (State Base Plane Coordinates, NAD 27): Surface: x- 584, 985.38 Y- 5,149, 048.91 Zone- 7 10. Total Depth (MD + TVD): ~ 2983 MD 2966 TVD 16. Property Designation: NANA Regional Corporation TPI: x- 585, 039.87 v- 5,149, 003.42 Zone- 7 Tota! Depth: x- 585, 029.63 Y- 5,148, 734.01 Zone- 7 11. SSSV Depth (MD +TVD): No SSSV 17. Land Use Permit: _ NANA Agreement 18. Directional Survey: Yes ~ No Gyro to 1758 f t (Submit electronic and printed information per 20 AAC 25.050) 19. Water Depth, if Offshore: N/A (ft MSL) 20. Thickness of Permafrost (TVD): Est. 640 ft 21. Logs Obtained (List all logs here and submit electronic and printed information per 20 AAC 25.071); Array Induction, Comp. Density Neutron, Caliper, Gamma Ray 22. CASING, LI NER AND CEMENTING RECORD CASING WT. PER GRADE SETTING DEPTH MD SETTING DEPTH TVD AMOUNT ~ TOP BOTTOM TOP BOTTOM HOLE SIZE CEMENTING RECORD PULLED 13 3/8 61# J-55 Surface 91' Surface 18" 18" 26 sx Permafrost None 8 5/8 24# J-55 Surface 695' Surface 695' 12 1/4" 435 sx ColdSet II None 5 1!2 15.5# K-55 Surface 2789' Surface 2733' 7 7/8" 82.4 sx ColdSet III None and 372 sx Type I 23. Open to production or injection? Yes® No^ If Yes, list each 24. TUBING RECORD interval open (MD+TVD of Top & Bottom; Perforation Size and Number): SIZE DEPTH SET (MD) PACKER SET (MD) See Attached ~ 2 7/8" 2659.84 No Packer ~ ~ ' ~ 25. ACID, FRACTU RE, CEMENT SQUEEZE, ETC. DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED See Attached 26. PRODUCTION TEST Date First Production: pewatering not started at time of report Method of Operation (Flowing, gas lift, etc.): PUfn PCP Date of Test: Hours Tested: Production for Test Period OiI-Bbl; Gas-MCF: Water-Bbl: Choke Size: Gas-Oil Ratio: Flow Tubing Press. Casing Press: Calculated 24-Hour Rate Oil-Bbl: Gas-MCF: Water-Bbl: Oil Gravity -API (corr): 27. CORE DATA Conventional Core(s) Acquired? Yes ^ No ^~ Sidewall Cores Acquired? Yes ^ No ^~ If Yes to either question, list formations and intervals cored (MD+TVD of top and bottom of each), and summarize lithology and presence of oil, gas or water (submit separate sheets with this form, if needed). Submit detailed descriptions, core chips, photographs and laboratory analytical results per 20 AAC 25.071. ~ftRT~..E`i"tn~P3 O-~o ~~~ ~ 5~ is ~~ Form 10-407 Revised 2/2007 ~ ~ ~ /'1 I A ,C¢t~~INUED ON REVERSE IVY +\v' H L ~_ ~)~~ ~- f 20Dfi 28. GEOLOGIC MARKERS (List all formations and markers encountered): 29. FORMATION TESTS NAME MD TVD Well tested? Yes ~ No If yes list intervals and formations tested , , briefly summarizing test results. Attach separate sheets to this form, if Permafrost -Top 4 f t 4 f t needed, and submit detailed test information per 20 AAC 25.071. Permafrost -Base 640 f t 640 f t ississippian Kuna fm. Kivalina Member Top Surface Surface Base 2145 ft 2139 ft Ikalukrok Member Top 2145 ft 2139 ft J~~ ~' Formation at total depth: ~~„ J/ Ikalukrok Member 30. List of Attachments: Wireline Logs and LAS, Lithologic Log, Well History, Survey Plat, Wellbore Diagram 31. 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, Inc ® ~ ~, Signature ~ - ~.% Phone: 907-258-3446 Date: 10/30/2007 INSTRUCTIONS General: This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Alaska. Submit a well schematic diagram with each 10-407 well completion report and 10-404 well sundry report when the downhole well design is changed. Item 1a: Classification of Service wells: Gas Injection, Water Injection, Water-Alternating-Gas Injection, Salt Water Disposal, Water Supply for Injection, Observation, or Other. Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPI (Top of Producing Interval). Item 8: The Kelly Bushing 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: P.eport true vertical thickness of permafrost in Box 20. Provide MD and TVD for the top and base of permafrost in Bo~c 28. 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: 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 29: 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 2/2007 Red Dog Shallow Gas Exploration Project ~~A~ 6~; `~. Well No. NB-03 ~d ~~~ PTD No. 206-090 API No. 50-073-20004-00 Well History (Attachment to Completion Report Dated October 30, 2007) Synopsis The NB-03 well was spudded on July 17, 2006, and drilled with air to a TD of 3502 ft. Numerous hole problems were encountered in the course of drilling, all of which were related to high water influx rates, and severely fractured formation. These hole problems prevented a successful open hole wireline logging run, and the well was finally incompletely logged through drill pipe. An unsuccessful attempt to case the hole followed under steadily deteriorating hole conditions, but the casing could not be advanced beyond 2252 ft due to a hard bridge. The casing was withdrawn from the hole, and an attempt was made to clean out bridges with a drilling assembly, but was only successful to 2400 ft, as the hole was basically "unraveling" faster than it could be opened using air as the circulating medium. A 123 sx cement plug was set at 2400 ft. in an attempt to stabilize the most unstable zone, but the drill pipe could no longer be moved once the plug was set. The original hole was basically lost at / this point. The drill pipe was explosively severed at 2013 ft, and a 50 sx Type I cement plug was set on top of the fish at 1850-2013 ft in preparation for a sidetrack. The well was placed in ,operations shut down., status pending the sidetrack, which was deferred until the 2007 drilling season. A well history on the original hole and other detailed information was filed with the AOGCC in support of the Application for Sundry Approval for the operations shutdown. The following Well History covers NB-03 activities during the 2007 drilling season, and includes the sidetrack and the eventual completion of the well. NB-03 Detailed Well History, 2007 Season Date Description August 8, 2007 Ran gyro survey on remaining part of original hole to index KOP for Sidetrack. August 19, 2007 MIRU. Installed and tested diverter. Mixed mud. Made.. up BHA. August 20, 2007 RIH with slick BHA and tagged cement plug @ 1800 ft. Polished plug to 1840 ft. Attempted blind sidetrack off plug. Drilled hard cement 1840-1973 ft, ~~~ ~e-, ~~ ~~" ~~ August 21, 2007 but could not get off plug, as formation harder than plug. Plug quality diminishing with depth. POH w/BHA and RIH with open end dp to set new plug. Set 85 sk Type 1 balanced densified cement plug 1670-1973 ft. Pulled 8 stands dp and reversed out. POH, and WOC. Crew moved to NB-02 to rerun tubing and rods while WOC at NB-03. August 22, 2007 WOC at NB-03. Complete work at NB-02. Waiting on new pump for mud puppy. Repaired mud puppy. August 23, 2007 RIH With slick BHA and attempted blind sidetrack off hard densified cement plug between 1700-1892 ft, but bit followed old hole due to extremely hard formation. Stopped drilling @ 1892 ft. to preserve enough plug to initiate sidetrack with mud motor. Ordered mobilization of mud motor, monels, orienting sub, and directional driller from Salt Lake City. August 24, 2007 W.O. mud motor and directional driller from Salt Lake City. Equipment arrived late in day. August 25, 2007 Hauled mud motor to NB-03 location. PU mud motor, motor, orienting sub and two steel dc's. RIH, CBU and survey. Slide motor drilled 1892 ft to 1940 ft but still followed old hole. Started TOH with motor assembly. August 26, 2007 Finished TOH. Rigged up Weatherford and ran in open hole with casing perforating charges. Shot 4 j spf between 1790-1810 ft, and 1690-1710 ft. in open hole with objective of creating weak zones in wellbore that would encourage initiation of sidetrack in very hard formation. Rigged down Weatherford, and made clean out run with bit and one dc. Recovered approximately 1 bbl mixed shale and cement. Repaired rig radiator hose and cellar pump. August 27, 2007 As backup, fabricated poor boy whipstock and shear sub in Red Dog machine shop. RIH and set poor boy whipstock at 1928-1940 ft, and sheared out. Set 127.6 sk densified Type 1 cement plug 1600 (est)-1928 ft. Pulled up, and reversed out. POH i~ ~~~ ~C~~~~~~TIA~. w/dp. WOC. August 28, 2007 Adjust bent sub to 2°. RIH with motor assembly and tagged hard cement at 1700 ft. Polished off plug, and ran survey to orient tool face. Drilled on plug, sliding for 12 ft. Cuttings showed 60% new formation. August 29, 2007 Motor drilled 40 ft. of new hole and POH to re-set bent sub to 1.15° degrees to minimize dog leg and allow rotation of drill string. RIH, reamed and conditioned sidetrack entry. Jets plugged and could not circulate. POH and found cement in bit from remaining cement sheath in dp following numerous cement jobs to set plugs. Pulled jets, rattled dp on TIH. Conditioned mud. August 30, 2007 Reamed and conditioned sidetrack entry. Alternatively slide and rotate to 1860 ft. with surveys every 50 ft. August 31, 2007 Continued to slide and rotate to 1900 ft. Reamed newly drilled sections. Rig shut down for 3 hrs to repack No. 2 pump. Resumed sliding and rotating to 1949 ft. September 1, 2007 Motor drilled, alternatively sliding and rotating to 1990 ft. Reamed newly drilled hole section, CBU, and POH for BHA change. Laid down motor assembly, picked up new bit and 12 dc's, RIH slick and resumed drilling to 2030 ft. Sidetrack hole now past fish. September 2, 2007 Conventional rotary drilled 7/8" hole 2030-2153 ft. Reamed and conditioned new hole section. Shut down 1 hour to repack No. 1 pump. September 3, 2007 Drilled 2153-2285 ft. Made 2 stand short trip at 2216 ft. w/no fill. September 4, 2007 Drilled 2285-2490 ft. Reamed and worked pipe through tight spot at 2313 ft. Conditioned mud. September 5, 2007 Drilled 2490-2638 ft. Survey at 2500 ft = 6.8°. Down 1 hr to repack No. 1 pump. POH for bit change. September 6, 2007 TIH w/new bit, no fill. Drilled 2638-2760 ft. Shut down 2 hrs to repair charge pump and shaker. September 7, 2007 Drilled 2760-2970 ft. September 8, 2007 COt~DENTIAL Drilled 2970-2983 ft, at which point, lost pump pressure (possible washout). POH in singles and discovered do pin twisted off. Left bit and do fish in hole. Total length = 189 ft. Operator elected to TD hole at this point due to lateness of season, and barge schedule for demobilization of equipment. Rigged up Weatherford and ran open hole logs. Confirmed top offish. Rigged down loggers. Prep to run production casing. September 9, 2007 Ran 74 jts, 5 1/2", 15.5 lb., K-55 casing. FS @ 2789 ft, FC @ 2765 ft. Cemented casing with 30 bbls spacer ahead, followed by 82.4 sks Cold Set II, followed by 372 sks Type 1 cement. Displaced cement with 66 bbls water. Bumped plug on calculated displacement with 1300 psi. Floats held ok. ,Good returns throughout job, Cement to surface. CIP @ 2130 hrs. WOC and clean mud tanks for demobilization. September 10, 2007 Continued WOC. Developed 4 stage perforating and hydraulic fracturing program based on open hole logs. Ran CBL. Good bond throughout. Rigged up to perforate and frac. Perforated and fracced Stage I, as described on attached Completion Summary. September 11, 2007 Perforated and fracced stages II, III and IV as per attached Completion Summary. September 12, 2007 Rigged down perforating and frac spread, and demobed to port. Rigged up to drill out composite bridge plugs (CBL) and clean out well. Started drilling out CBL's. September 13, 2007 Continuing to drill out CBL's using water and reverse Circulation. Not working well. Switched to air, with improved performance. September 14, 2007 Completed drilling out CBL's. Circulated hole clean. Secured well. Started moving out rig and cleaning up location. September 15 - 30, 2007 Weli shut-in. Installing surface facilities during this period for dewatering and production testing. October 1, 2007 Ran 2 7/8" tubing with PCP stator at 2600 ft. October 2 - 9 2007 Continuing with installation of surface facilities. Well shut-in. October 10, 2007 Ran PCP rotor and rods. Well completed as of this date, but remains shut-in, as surface facility installation still in ~ progress. October 11, 2007 Surface facility installation complete. Well No. NB-03 ready to initiate dewatering pumping, pending resolution of electrical problem in main power line supplying GasEx project site. CONFAENfIAI Log sheet for Gas Exploration Program drill cuttings North Basln Welis -Summer 2007 Drilling Contractor: MaJor Drilling America, Inc. Well No.: NB-03 Page 1 of Red Dog Mine, Alaska Sam le Interval Lltholo Colo r % Part icle S ha a Min eraliza tion % White Cons tituen ts Comments (feet below surtace) A ~ L °i ` a N E ~ W Y v N B ~ o (A~ O a N a « ~o O d va O (mp U ~ c~ .;. °~ N o V .N ~ .V 8 NN L f0 'c d_. a 1699 SIDETRACK WELL KICK OFF OF CEMENT PLUG 1699-1707 40% SHALE 30 70 X X 5 60% Cement Chi s 1707-1719 50 % SHALE 30 70 X X 5 50% Cement Chi s 1719-1739 80% SHALE 30 70 X 80 20 5 20% Cement chi s 1739-1759 80% SHALE 30 70 X X 5 20% Cement chi s 1759-1779 MISSING 1779-1799 100% SHALE 50 50 X X 2 Trace cement chi s 1799-1819 98% SHALE 50 50 X X 5 2% Cement chi s 1819-1839 98% SHALE 70 30 X X 5 2% Cement chi s 1839-1859 98% SHALE 70 30 X X 5 2 % Cement chi s 1859-1879 95% SHALE 60 40 X X 2 5% SANDSTONE Ve fine rain, Calcareous, Dark ra 1879-1899 100% SHALE 60 40 X 70 30 5 1899-1919 100% SHALE 40 60 X X 5 Trace Ve fine rain, Calcareous, Dark ra ,sandstone 1919-1939 99% SHALE 30 70 X X X 5 1 % SANDSTONE Ve fine rain, Nonralcareous, Li ht ra 1939-1959 95% SHALE 80 20 X X X 5 5% SANDSTONE Ve fine rain, Noncalrareous, Dark_Gray ~~~~ ~ ~ EN,- M C 3 V 'C 10 L L a c 0 .~ L 0 Q K W R W m d t N O J ti C m a O C N mG E N ~ N O 3~ c c 0 m U ao ~ ~ c oz zo Q m Z Log sheet for Gas Exploration Program drill cuttings Red Dog Mine, AJaskn North Basin Welis -Summer 2007 Drilling Contractor: MaJor Orllling America, Inc. ~* R h ;~i \\ Well No.: NB-03 Page 3 of ~ ~ H C w ... 7 V .` .6 R !~ O a C O O. x W N R W d t N J d e 3 E °e N E y ~ ~ O 3 C CO m D) = e o Z ~ > > C - C C C r C t¢ U` O d ~ d Vl O d C d O d O O `1 N O gy ~ O N O d ~ O N N3 O d J O d pJp N W (~ ry C:7 ~ C~ ~ ~p U ~ U ~ U ~ ( p U ~ ~p U ~ {p U ~ ~ - N N C N O ~ p U O ~ p O O ~ p U O ~ p C O ~ p U O ry U C N N N V U (p U Z C_ ~ Z Z C_ ~ Z Z C_ ~ Z Z _C ~ Z Z C ~ Z Z C ~ Z ~ Z _U U U U U V o f° f•O m L" ~ ~ O O o Z C w C _ C w C Y= C w G 4= Z Z Z C d w o aWeq U zUenb r r r r ~ al!oleo r r r r r e . snoaog!s x x x x x x x x x x x ~ ~~ a o!UJRd X x X x x x c ~ snoa~eoleo m m r m aleBuo!a C a Rale!d x R~!oo!q x x x x x x x x x x x ~aylo O ~IoeIQ pp fD (00 N top N m m N N N N Re~6 N~eP ~ V M V N M N po N m O O ~la1B 'paw o 0 N 0 N 0 0 Re~B ly6!I M N o o t°, w w O w w O w w O w w O w w O w w Z ~ J w w J J ~ J _ r (n ^ J Q x r fn p J Q x r f// o J Q x r fn o J Q x r f/7 o J Q x (q o Q x ~ x ~ x Q x Q x Z tlJ m ~ zQ vi ¢ rn zQ h a m za m ¢ rn m cn cn <n e ~ ~ e O e ~ ~ e ~ e ~ ~ a° O ~ ~ ~ e ~ e ~ N ~ N ~ ~ ~ e e O ~ O ~ O ~ O o O M ~ ~ ? ~ K ~ V ~ O M N M N HMO ~ r N OMl N M cD M O ~ C y o N M N CS N M N CS N M N CS N M N ,{ N CS N M N c7 N t~ g 7 a V a V ~ c~~ c ~O ~ 5 ~O ~ J ~ fD ~ E $ N N N N N N N N N N N N (/) "' 9 m 2 Log sheet for Gas Exploration Program drill cuttings Red Dog Mine, Alaska North Basin Wells -Summer 2007 Drilling Contractor: MaJor Drilling America, Inc. ~~~~~ .~~` J~~, ~~! ~~~ Well No.: NB-0S Page 5 of Log sheet for Gas Exploration Program drill cuttings North Basin Wells -Summer 2007 Drilling Contractor: Major Drilling America, Inc. Well No.: NB-03 Page 6 of Red Dog Mine, Alaska Sam le Interval Litholo I Colo r % Part icle Sh a Mln eraliza tlon % Whlte Cons tituen ts Comments (feet below surface) T ~ L O1 ` a d E >` ~ Y a s N n L o tTt~~ O H ), ip n O m~ O d O cep' U ~ a T ° j y = ~'~ m O ~ j Q ~ t6 a 2873-2893 50% SHALE 30 70 X X T T Noncalcareous 50% SANDSTONE Ve fine rain, Noncalcareous, Medium ra 2893-2913 95% SHALE 30 70 X X T T Noncalcareous, Gas in ba 5% SANDSTONE Ve fine rain, Noncalcareous, Medium ra 29132933 98% SHALE 2 28 70 X X T T Noncalcareous 2 % SANDSTONE Ve fine rain, Noncalcareous, Medium ra 29332953 98% SHALE 30 70 X X X T T Noncalcareous 2 % SANDSTONE Ve fine rain, Noncalcareous, Medium ra 2953-2973 100 % SHALE 40 60 X X X T T Noncalcareous, Gas in ba 2973-2986 100% SHALE 40 60 X X X X T 1 Noncalcareous, Gas in ba ! ~ Red Dog Shallow Gas Exploration Project Well No. NB-03 Wellbore Diagram PTD: 206-090 API No.: 50-073-20004-00 No Scale Wellhead, Motor and Drive Head not shown Legend O Cement ~,;,~,~ ~'~'~' Drilling Mud 12-1/4" hole - 7-7/8" hole - Cement Plug 2765'-2789' PE 2765' MD ~_~, '/,~ `~ ~';, ~~"` ~99 4a ~~ ~- Conductor @ 91' MD Base of Permafrost @ 640' MD 8-5/8" 24# J-55 Surface Casing - @ 695' MD itage IV 1436'-1850' 80 perfs otal in 4 zones itage III 1910'-2190' MD, 240 ~erts total in 6 zones itage II 2230'-2460' MD, 202 ~erts total in 6 zones itage 12504'-2700' MD, 103 >erfs total in 4 zones MCP a(7, 2628' MD i-1/2", 15.5#, K-55 Prod. Casing 2789' MD =ish (Bit an DC's) 2794'-2983' fD 2983' MD Attachment to Completion Report dated October 30, 2007 • i Teck Cominco Alaska Incorporated Well No. NB-03 (PTD No. 206-090). 2007 Completion Summary Perforated and fracced in 4 stages: All depths are MD. Stage I: 2504 ft - 2700 ft Zone 1: 2504 ft - 2514 ft (10 ft net w/2 ea 0.4 " jspf) Zone 2: 2590 ft - 2600 ft (10 ft net w/2 ea 0.4 " jspf) Zone 3: 2625 ft - 2645 ft (20 ft net w/2 ea 0.4" jspf) Zone 4: 2690 ft - 2700 ft (10 ft net w/2 ea 0.4" jspf) Total formation open to production. = 50 ft. Total shots = 103 Fracced with 63,330 lbs 20/40 Ottawa sand in 440.5 bbls water mixed with 25 lbs guar gel per 1000 gal water. Rate = 21.5 bpm. No perf balls Stage II: 2230 ft - 2460 ft Zone 1: 2230 ft - 2250 ft (20 ft net w/2 ea 0.4" jspf) Zone 2: 2260 ft - 2270 ft (10 ft net w/2 ea 0.4" jspf) Zone 3: 2365 ft - 2385 ft (20 ft net w/2 ea 0.4" jspf) Zone 4: 2390 ft - 2410 ft (20 ft net w/2 ea 0.4" j spf) Zone 5: 2420 ft - 2440 ft (20 ft net w/2 ea 0.4" j spf) Zone 6: 2450 ft - 2460 ft (10 ft net w/2 ea 0.4" jspf) Total formation open to production. = 100 ft. Total shots = 202 Fracced with 63,3601bs 20/40 Ottawa sand in 440.5 bbls water mixed with 25 lbs guar gel per 1000 gal water. Rate: 21.5 bpm. 10%perf balls. Stage III: 1910 ft - 2190 ft Zone 1: 1910 ft -1930 ft (20 ft net w/2 ea 0.4" jspf) Zone 2: 1970 ft -1990 ft (20 ft net w/2 ea 0.4" jspf) Zone 3: 2014 ft - 2034 ft (20 ft net w/2 ea 0.4" j spf) Zone 4: 2075 ft - 2095 ft (20 ft net w/2 ea 0.4" jspf) Zone 5: 2120 ft - 2140 ft (20 ft net w/2 ea 0.4" jspf) Zone 6: 2170 ft - 2190 ft (20 ft net w/2 ea 0.4" jspf) Total formation open to production. = 120 ft. Total shots = 240 Fracced with 63,360 lbs 20/40 Ottawa sand in 440.5 bbls water mixed with 25 lbs guar gel per 1000 gal. water. Rate: 21.5 bpm. 10%perf balls. 4( • Stage IV: 1436 ft -1850 ft Zone l: 1436 ft -1446 ft (10 ft net w/2 ea 0.4" jspf) Zone 2: 1680 ft -1700 ft (20 ft net w/1 ea 0.4" jspf) Zone 3: 1810 ft - 1830 ft (20 ft net w/1 ea 0.4" jspf) Zone 4: 1830 ft -1850 ft (20 ft net w/ 1 ea 0.4" jspf) Total formation open to production. = 70 ft. Total shots = 80 Fracced with 56,4921bs 20/40 Ottawa sand in 392.6 bbls water mixed with 25 lbs guar gel per 1000 gal. water. Rate 21.5 bpm. 10% perf balls. Note: Stages were isolated by composite bridge plugs, which were drilled out after frac work was completed. --- l ~` SEC-17 0 ~ R-18-W T-31-N ;SEC 18 R-18-W T-31-N ,~ ~ Well - ¢O ~ NB-03 ~+ 1 ~ GRID N:5149048.974 GRID E 584985 ~ O 1654:84ft : .376 LATITUDE: 68°05'07.816" LONGITUDE: -162°50'28.881" Elevation 1075 ft. DEPTH:3,502' L O - ~ ~' z Red DOg MICIe Drawn by: SOH Date: 9/14/06 Department Reviewed By Date NOTE: Coordinates Shown are Alaska Gas Ex loration Project Checked B : y Check date: Mi i r State Plane, zone 7 p ne Eng neering Well Asbuilt 2006 Mine Operations SCaie In Feet teck~ ~ ~~ .~ survey - Geology 0 500' 1000' 2000' Revision: 0 Scale: 1" = 1000' Approved by: Date: Computer Flle Y:4~linetech\Intra\Geologic\DWGS\GO-06-GasWell-ASB.dwg A Gyrodata Directional Survey for TECK COMINCO ALASKA INC. Location: RED DOG MINE Well: NB - 03 Job Number: AK0807G 534 Run Date: 8/8/2007 Surveyor: Steve Thompson c`y Calculation Method: MINIMUM CURVATURE Survey Latitude: 68.083780 deg. N Longitude: 162.841350 deg. W ~+ Azimuth Correction: •.,r„~ Gyro: Bearings are Relative to True North i'"'~. Vertical Section Calculated from Well Head Location Closure Calculated from We11 Head Location Horizontal Coardinates Calculated from Well Head Location A Gyrodata Directional Survey TECK COMINCO ALASKA INC. Location: RED DOG MINE We11: NB - 03 Job Number: AK0807G 534 MEASURED INCL AZIMUTH BORE HOLE DEPTH BEARING feet deg. deg. deg. min. DOGLEG VERTICAL CLOSURE HORIZONTAL SEVERITY DEPTH DIST. AZIMUTH COORDINATES deg./ feet feet deg. feet 100 ft. 0.00 0.00 0.00 N 0 0 E 0.00 0.00 0.0 0.0 0.00 N 0.00 E RATE GYRO SURVEY RUN INSIDE 2 7/8" TUBING ALL SURVEY DEPTHS REFERENCED TO GROUND LEVEL AT 1074 FT AMSL 100.00 0.50 60.20 N 60 12 E 0.50 100.00 0.4 60.2 0.22 N 0.38 E 200.00 0.86 111.79 S 68 12 E 0.67 199.99 1.5 83.9 0.15 N 1.45 E 300.00 1.32 126.49 S 53 31 E 0.54 299.97 3.2 104.8 0.81 S 3.07 E 400.00 1.75 124.31 S 55 41 E 0.43 399.94 5.8 114.2 2.36 S 5.26 E 500.00 2.00 125.01 S 54 59 E 0.25 499.88 9.0 118.0 4.22 S 7.94 E 600.00 2.67 125.83 S 54 10 E 0.68 599.80 13.0 120.3 6.58 S 11.26 E 700.00 3.21 126.33 S 53 40 E 0.54 699.67 18.2 121.9 9.61 S 15.41 E 800.00 3.68 125.07 S 54 56 E 0.48 799.49 24.2 122.9 13.11 S 20.29 E 900.00 4.06 124.70 S 55 18 E 0.38 899.26 30.9 123.3 16.97 S 25.83 E 1000.00 4.52 125.64 S 54 22 E 0.47 998.98 38.4 123.7 21.28 S 31.94 E 1100.00 4.63 131.16 S 48 51 E 0.45 1098.66 46.3 124.5 26.23 S 38.18 E 1200.00 4.58 139.81 S 40 12 E 0.70 1198.34 54.2 126.1 31.94 S 43.80 E 1300.00 5.08 141.08 S 38 55 E 0.51 1297.98 62.4 128.0 38.43 S 49.15 E 1400.00 5.08 144.74 S 35 16 E 0.32 1397.59 71.0 129.9 45.49 S 54.49 E ~l4( TECK COMINCO ALASKA 1NC. Location: RED DOG MINE Well: NB - 03 Job Number: AK0807G 534 A Gyrodata Directional Survey MEASURED 1NCL AZIMUTH BORE HOLE DOGLEG VERTICAL CLOSURE HORIZONTAL DEPTH BEARING SEVERITY DEPTH DIST. AZIMUTH COORDINATES feet deg. deg. deg. min. deg./ feet feet deg. feet 100 ft. 1500.00 5.56 143.57 S 36 26 E 0.49 1497.16 80.0 131.5 53.00 S 59.92 E 1600.00 5.89 140.08 S 39 55 E 0.48 1596.66 89.8 132.6 60.84 S 66.10 E 1700.00 6.02 141.13 S 38 52 E 0.16 1696.12 100.1 133.5 68.86 S 72.68 E 1758.00 6.67 139.61 S 40 23 E 1.16 1753.77 106.5 133.9 73.79 S 76.77 E Final Station Closure: Distance: 106.48 ft Az: 133.87 deg. ~~ ~OF l ~. • Red Dog Shallow Gas Exploration Project Well No. NB-03 PTD No. 206-090 API No. 50-073-20004-00 Sidetrack Hole Survey Data Measured Depth Hole Inclination Azimuth Notes 1670 5.6° 65° original hole 1760 3.4° 133° sidetrack hole 1770 3.4° 132.6° " 1820 5.3° 160.7° " 1860 6.3° 145.0° " 1900 7.9° 130.0° " 1920 8.7° 137.0° " 1940 6.3 ° 146.0° " 1960 5.0° 154.0° " 1990 7.0° 172.0° " 2500 6.8° sin le shot 2900 5.0° single shot ia~~ivl~ ~ ~ ~ `~r~~, Maunder, Thomas E (DOA) From: Maunder, Thomas E (DOA) Sent: Monday, October 29, 2007 8:56 AM To: 'Bob Gardner' Cc: Booth Jerry SPOK Subject: RE: Teck Cominco Alaska Incorporated, Red Dog Shale Gas Exploration Project, Wells Nos. NB- aOS-O~S' 01, NB-02, NB-03, NB-04A, and NB-05 --~ a0~_ ~r,~ L ao~-ova Bob and Jerry, SOS-C~5(o aOt1-04~5~ confirm our call. Halting the weekly reports is appropriate. As proposed, please keep the Commission advised regarding the resumption of pumping operations. Call or message with any questions. Tom Maunder, PE AOGCC From: Bob Gardner [mailto:bob@fairweather.com] Sent: Monday, October 29, 2007 8:22 AM To: Maunder, Thomas E (DOA) Cc: Booth Jerry SPOK Subject: Teck Cominco Alaska Incorporated, Red Dog Shale GasExploration Project, Wells Nos. NB-01, NB-02, NB-03, NB-04A, and NB-05 Tom: As per our recent telephone conversation, and the last Weekly Operations Summary Reports covering the above referenced wells, the Red Dog Shale Gas Exploration Project will be shut-in for an indefinite period due to electrical problems with the power line between the mill at Red Dog mine, and the project site. This line supplies 100% of the power required to operate the wells during the planned extended dewatering period. We are stilt uncertain about the exact duration of the shut-in period, as the Red Dog Engineering and Electrical Departments are still trying to make a determination on whether a mill shutdown will be required to install an isolation switch and ancillary equipment. This extended shut-in period is caused by an electrical malfunction that has nothing to do with the condition of the wells or surface facilities at the GasEx project site. The problem is being addressed by the aforementioned Red Dog Mine Departments with an eye toward both maintaining the productivity of the mine/mill 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 wilt occur at the most opportune time after they are delivered to Red Dog. We are told that under the most optimistic scenario, a restart of dewatering pumping could occur in the December 2007-January 2008 time frame. If a milt shutdown is required in order to install the equipment, the shut-in period could extend into April 2008 when the next regu{arty scheduled mill shutdown will occur. We wil! keep the AOGCC advised on developments as they are made known to us. Now that all wells in the initial five-spot pattern are completed, we respectfully request that the requirement for Weekly Operations Summary Reports be suspended. Monthly Production Reports (Form 10-405) will be filed both during the shut-in period, and far so tong thereafter as there are ongoing productions operations at the GasEx project site. Thank you for your consideration of this request, and your underst?nding of the electri~t probte:ns that :see are currently experiencing, Sincerely, R. C. Gardner 10/29/2007 E & P SERVICES, INC. October 24, 2007 Alaska Oil and Gas Conservation Commission 333 West 7t'' Avenue, Suite 100 Anchorage, AK 99501 Attention: Mr. Tom Maunder, P.E., Petroleum Engineer .; ~ ~~ ~.~ _~ I ,~ ~ ZOQ~ ,f "~`~ ~~R?~s. ~~'~~t~~r,~9e ~'~issiun Re: Weekly Operations Status Report Teck Cominco Alaska Incorporated, Red Dog Shallow Gas Exploration Program. Report Period: October 14-October 20, 2007 Well No: NB-03 (PTD No. 206-090) Dear Mr. Maunder: FOR THE PERIOD ENDING SATURDAY, October 20, 2007: Well No NB-03 remained shut-in during this report period. Red Dog Engineering Department advises that pumping cannot be started at this well until an isolation switch is 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. A preliminary estimate for abest-case dewatering start-up at NB-03 is in the December 2007-January 2008 time frame. It is also possible that the start-up 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 were pulled from NB-03 on October 18, 2007, and the well will be freeze protected during the shut-in period. The surface facilities at the NB-03 well site are fluid-free as dewatering pumping at this well has never been started. 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. October 17 2007 ~ 0 ~s'~aaii C'~x 7 Alaska Oil and Gas Conservation Commission q cgs®~s ~~0~ th 333 West 7 Avenue Suite 100 Anchora e, AK 99501 ~~a~e ~~~`ss%~ g 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 No: NB-03 (PTD No. 206-090) Dear Mr. Maunder: FOR THE PERIOD ENDING SATURDAY, October 13, 2007: Finished downhole work for well completion on October 10, 2007. Well completion date will be carried as that date. Also completed installation of surface facilities during this report period. Well is ready for dewatering start-up, pending resolution of electrical problems in Skv main electrical line supplying GasEx project site, and start-up schedule from Red Dog. Well shut-in at close of report period. Sincerely, ~ ~~ ~`~ ...~ _. ._ ~~`~ ~ _ _. R. C. Gardner For Teck Cominco Alaska Incorporated Cc: Jerry Booth, Teck Cominco Alaska Incorporated 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 • (907) 258-3446 • (907) 279-5740 • E & P SERVICES, INC. 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 No: NB-03 (PTD No. 206-090) Dear Mr. Maunder: FOR THE PERIOD ENDING SATURDAY, October 6, 2007: Continued working on installation of surface facilities for dewatering phase. Installed pump stator, and ran 2 7/8" tubing during this report period. Stator at 2660 ft. 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. 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 No: NB-03 (PTD No. 206-090) Dear Mr. Maunder: FOR THE PERIOD ENDING SATURDAY, SEPTEMBER 29, 2007: Well shut-in. Working on installation of surface facilities for dewatering phase. Awaiting installation of tubing, pump and, rods, after surface facilities installation are complete. Sincerely, ~" a~~ 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. September 25, 2007 Alaska Oil and Gas Conservation Commission 333 West 7'~ Avenue, Suite 100 Anchorage, AK 99501 Attention: Mr. Tom Maunder, P.E., Petroleum Engineer Re: Weekly Operations Status Report Teck Cominco Alaska Incorporated, Red Dog Shallow Gas Exploration Program. Report Period: September 16-22, 2007 Well No: NB-03 (PTD No. 206-090) Dear Mr. Maunder: FOR THE PERIOD ENDING SATURDAY, SEPTEMBER 22, 2007: Drilled out composite bridge plugs and circulated hole clean. Moved out drilling rig and cleaned up location. Well shut in, awaiting installation of tubing, pump, rods. Preparing to install surface facilities to handle produced water during dewatering phase.. Sincerely, ~.~ 1~---~ ~E~ «. 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. September 20, 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 9-15, 2007 Well No: NB-03 (PTD No. 206-090) Dear Mr. Maunder: FOR THE PERIOD ENDING SATURDAY, SEPTEMBER 15, 2007: Completed running open hole logs. Ran and cemented 74 jts 5 1/2" 15.5 lb. J- 55 casing. FS @ 2789 ft, and FC @ 2765 ft. CBU while rigging up cementers. Cemented casing as follows: 30 bbls spacer, followed by 82.4 sacks Cold Set II, followed by 372 sacks Type I cement. Displaced cement with 66 bbls water. Bumped plug with 1300 psi. Floats held OK. Good returns throughout job with cement to surface. WOC. Developed 4 stage perforating and hydraulic fracturing program after analysis of open hole logs. Stage 1 (2504'-2700'): Perfed in 4 intervals with 103 shots total. Fracced with 225 bbls, 25# guar gel, and 26,000 lbs Ottawa sand. Stage 2 (2230'- 2460'): Perfed in 6 intervals with 202 shots total. Fracced with 550 bbls, 25# guar gel, and 111,000 lbs Ottawa sand. Stage 3 (1910'-2180'): Perfed in 6 intervals with 240 shots total. Fracced with 565 bbls, 25# guar gel, and 120,000 lbs Ottawa sand. Stage 4 (1436'-1850'): Perfed in 4 intervals with 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 • (907) 258-3446 • (907) 279-5740 ~~- ~ 80 shots total. Fracced with 325 bbls, 25# guar gel, and 60,000 lbs Ottawa sand. All stages isolated by composite bridge plugs. Perforating and frac details to follow with Completion Report. Prep to drill out composite bridge plugs at end of report period Sincerely, ,,, ,~`' ~- ,~-- . --- _y___~___~.~~ ..~... . R .Gardner For Teck Cominco Alaska Incorporated Cc: Jerry Booth, Teck Cominco Alaska Incorporated SARAH PALIN, GOVERNOR ~~ ~D ~ 333 W. 7th AVENUE, SUITE 100 CO1~SE-RQA-1`I011T ~.rOM1~T15sI0I~T ANCHORAGE, ALASKA 99501-3539 -7 -7 ~ PHONE (907) 279-1433 FAX (907) 278-7542 R.C. Gardner Sr. Technical Advisor Teck Cominco Alaska Incorporated 3105 Lakeshore Dr. Bldg A, Ste 101 Anchorage, AK 99517 Re: Exploration Wildcat, NB-03 Sundry Number: 307-287 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 September, 2007 Encl. w~ -v~ b STATE OF ALASKA ~ A ALA~OIL AND GAS CONSERVATION COMMi~510N APPLICATION FOR SUNDRY APPROVALS ~r~ 20 AAC 25.280 ~RE~VEO ~~P 1 0 2007 1. Type of Request: Abandon ^ Suspend ^ Operational shutdown ^ Perforate ^ ~ ~1a~aa~lf ~ has Cons `~t~~ . Alter casing ^ Repair well ^ Plug Perforations ^ Stimulate ~ ~ Time Extension ^ """ An h c orage 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 ^ , 206-090 ~ 3. Address: Stratigraphic ^ Service ^ 6. API Number: 3105 Lakeshore Dr. Bldg A, Ste 101 Anchorage, AK 99517 50-073-20004-00 ' 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: (~ S?(6953 f t L s~ ^ Spacing Exception Required? Yes ^ No q•/(.off NB-03 ' 9. Property Designation: 10. KB Elevation (ft):f 11. Field/Pool(s): ,+~ ~/ ,- ~ ~ NANA Re Tonal Cor oration 1080 ~lwa.~~n~ C~C~e~- Explorato 12. PRESENT WELL CONDITION SUMMARY ~~~ Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD (ft): Effective Depth TVD (ft): Plugs (measured): Junk (measured): 2985 . 2983 2765 2763 2789-2794 2794-2985 Casing Length Size MD TVD Burst Collapse Structural Conductor 91 13 3/8" 91 91 Surface 695 8 5/8" 695 695 3930 1370 Intermediate Production 2789 5 1/2" 2789 2788 4810 4040 Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): See Attached See Attached None N/A N/A Packers and SSSV Type: No Packers or SSSV Packers and SSSV MD (ft): N/A 13. Attachments: Description Summary of Proposal ~ 14. Well Class after proposed work: Detailed Operations Program ~ BOP Sketch ^ Exploratory Q ~ Development ^ Service ^ 15. Estimated Date for 11-Aug-07 16. WeII Status after proposed work: Commencing Operations: Oil ^ Gas ~ Plugged ^ Abandoned ^ 17. Verbal Approval: Date: WAG ^ GINJ ^ WINJ ^ WDSPL ^ Commission Representative: 18. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Printed Name R.C.Gardner Title Sr. Technical Advisor for Teck Cominco Alaska Inc. Signature Phone Date Sept. 8, 2007 .~,~ .~.w.,., .~ _. 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: ~~ ~~ c~:~`~,4. ~- ~, i E ~~~ ~ "'~~1 ~ ~~ ~Liti~~~:~-~ r~~rc:~~~;~`~~ c~w~.-~'C~i c~.v~~rirZ - ``~~ t t i -~-~~~ ~~ ~~5~'~ ~1vC~`~;~G CC C~~,~~'R'S S1 ~"Li\C~Z-'C',~ (~'t~~ ~`fi-\~S , e ~ Subsequent Form Required: APPROVED BY , Approved by: COMMISSIONER THE COMMISSION D te ~ 7 : a lon 7 Form 10-403 Re IV Sed 06/2006 G R I G 1 ~ A L ~ ~~~" SEP ~ ~ ZDD7 Sub • ~'l~~ ~/''/v~ ~ r Teck Cominco Alaska Incorporated Red Dog Shale Gas Exploration Program Well No. NB-03 (PTD 206-090) Application for Sundry Approval Perforating and Fraccing Program Summary of Proposal Well No. NB-03 is the final well in the 2007 shale gas drilling program to be drilled and cased to TD in preparation for perforating and hydraulic fracturing. The attached .operations program describes these proposed activities. The well will be perforated and / fracced in four stages from the bottom up. The stages will be isolated by composite bridge plugs (CBP's) as the stages are completed. The CBP's will be drilled out and the welled cleaned out to the effective depth in preparation of running a progressive cavity ~ pump, and the initiation of dewatering operations. Teck Cominco Alaska Incorporated Red Dog Shale Gas Exploration Program Well No. NB-03 (PTD 206-090) Application for Sundry Approval Perforating and Fraccing Program Detailed Operations Program (See Attached) 43EPTI DEuCF.Ip'PION r-T. CSG S6-!OE trole 100 13 3/A", 61# Q 80' 10^ CMT grouted 200 400 500 CSG SHOE h01•~ 950 CMT, Coldsel 'i: 9/4" 950' ,,,,,~ iooo a 5(A°, 24/a Sfaye " 1 9 i 00 Zone 1A38'-1446', 1880'- 9)00', 1890'-1639', 'iA00 perry 80 1830'-1860' ft 4. 1900 Iona 2 ~~ , 9910'•9930', 1079'•I9~ 1990', 2014'-2034', ze7s'-2osa•, z9ao'• 2940', 2970'-2190' ,., 2x3o'-nso•, z2ea- xa7o', zsss•-aaest 238tl'-6490', 2420'- 2440`, 2450'•1480' _ 4 2494' •2694', 2499' - 260D', 2626'•16461 pert6 '103 2890'-2700' fc i P~TC I I ~I M '~ 30 4 G1 t ~I 1 122 V i 752 aso soy 518 549 57s G90 671 701 732 2500 ~ ~ 7az C r CSG SFIOE - ~~ i II 'iA00 I 5 ti" t 5.5#, J-55 11o1e ~ /~~ ~ esa CMT, Coldsel ~ 7 7,3" '; '~" 2900 ;;000 6&1 -~,,,J, 2,985 'CD Teck Cominco WELL NUMBEF NB-03 LEASE NAME NANA LEASE # DISTRICT Red Dog QUAD DATE 9!3/2007 COUNTY API# TARGET 3,000 ELEVATION 1000+ 7nNFre9 r4.e,o.,.o- ewnn„e UNITS API I M API COMPLETION Descri Ka ak Pro ram ISIP Pad % #sand/ ert Canc Rate, b m Water, bbis Sand # HHP Pi e 2504'-2514', 2690°- Stage1 2800', 2825' -2845', 2sao'-z799' 26% 615 1-6 21.5 440.5 63,33p 554 CSG erfs 103 psi 112.7 soo ppg za 450 6s,eoo 2290'-2260', 2280'- 2x7o', a3es-zaes•, g~ge 2 23ee•.za9a•, a4xo•- z44o', 2460' - zaea' 26% 314 1 - 6 21.5 440.5 63,330 552 csG perfs 202 10% pert balls psi 112.7 50o ppg zs Aso eS,Geo 1910'-9890', 1870'- 1990', 209A'-2034', Stage3 2075'-2096', 2920'- 2149', 2170'-219°' 26% 264 1-6 21.5 440.5 63,330 513 CSG perfs 240 10°!o pert balls pSi 112.7 500 ppg zs 450 Gs,ooo 9436'-1448', 9880'- stage4 9700', 9810'-1830', 9a3o'-9aw• 23% 708 9-6 21.5 392.6 56,492 489 csG perfs 80 '10°!o pert balls pSi 92.0 50o ppg zs 250 55.000 Stage 5 perfs psi ppg DESIGN 29.0 1,300 250,000 55q ~; TOTALS 625 pSl % pad #8d/hOi2 bpm 429 246,481 554 CSG AVGs holes #DIV/0! 25% 475 21 bblS # MAX HHP Cmt. Yield #1 I 1.43 I #2 °1.43 #3 #4 # 1.43 I #6 1.43 Siae Description ID VOI VOI Yield Column VOlume # SdCk9 Bbis BBL CMT ' inches inches bbls/ft cu fVft CU ft/Sk ft cu ft sk/ft xcess-. 25% °d8 18.000 0.07437 0.41759 1.43 95.0 8.264 0.29202 4.38 1.12 '!3316 61#, J55 12.515 0.04048 0.22730 300.0 68.189 12.14 Hole 13 318° x 16" _ _________ _-___------••___--_____ •_________________ _ 0.14095 _ _ 0.7814 _---_-._.____ 1.43 .___»__________ 300.0 ____________ 237.435 w-__-_-_____.w 0.55346 _..-_.-_____.._ 166.04 __.. _ --_--__ 42.29 .__-_-______._.. 54.25 Csg _____.._ 12114 An_____-__ 6516 24#,J55 Hole 8 518" x 12114" Csg 7 718 7.875 0.03794 0.21303 1.43 95.0 3.198 0.14A97 2 23 0.57 ,4n 51/2 15.5 #, J-55 4.052 0.01595 0.08956 2,600.0 232.854 41.47 --------._' Hole I 5112°° x 7 7/S" 0.03086 0.1733 1.43 2,200.0 381.160 0.12116 266.55 67.88 85.56 Csg TOTAL Cmt ft' Sks m3 bbls An 785.T 549:0 22.23 139.82 t LOG Teck Cominco NB-03 Stage 1 2504' - 2514', 2590' - 2600'. 2625' - 2645', perfs 2sso' - 200' ft 103 Ikalukrok, Kivalina PRESSURES iN P.S.I. FRAC GRAD 0.63 psi/ft VOLUMES IN BBLS BRAKDOWN 1240 MAXIMUM LOAD AND BREAKDOWN 5 PAD 112.7 AVERAGE DISPLACEMENT psi TREATMENT 327.8 DISPL 58 ISIP 5 MIN 10 MIN TOTAL VOLUME 445.5 Chemicals 637 Time min Cumui min Rate Vol b m bbl Cum Vol bbl Sand Conc pp Sand # Cum Sa # 1 0.0 0 0.0 0.0 0 0 0 2 0.0 29.0 5.0 5.0 0 0 0 3 4.9 4.9 23.0 112.7 117.7 0 0 0 4 1.s 6.4 22.0 33.0 150.7 1 1,386 1,386 5 1.5 7.9 21.1 31.6 182.3 2 2,658 4,044 6 1 8.9 20.3 20.3 202.6 3 2,552 6,595 1 9.9 19.5 19.5 222.1 4 3,272 9,867 s 1 10.9 18.8 37.5 259.6 5 7,878 17,745 9 10 20.9 18.1 180.9 440.5 6 45, 585 63, 330 10 0 20.9 0.0 440.5 0 0 63,330 1 i o 20.9 0.0 440.5 0 0 63,330 12 0 20.9 0.0 440.5 0 0 63,330 ressure CSG OVERALL DESCRIPTION OF STAGE OR EVENT Lei ioaa Fluid Loss Surfactant Biocide Breaker CHEMICALS u/loon gaulooc 1#l1000ga1' Q/1000 gal Concen 4.51N GUAR 467.7 # 25 Fill Wellbore FLUID LOSS #DIV/0! # Bkdn, est. Rate RANSFOAM 68.8 gal 5 740 PUMP PAD BIOCIDE 18.7 # 1 689 START SAND BREAKER 2.8 is o.2 643 SAND ON BOTTOM eoo.o - 5 601 START SAND ' ~ao.o see,a gt9, `m` ''° ~~ 563 FINNISH SAND I a 528 FLUSH ~° I ~ ~ ` ~ ~~ aao.o ~ ' -'`. -- . 3ao.o ~ zoo.° j.~'~ ~ i ~ ~~' / ~~ ` ' _ - J 20.9 21.5 440.5 6 63,330 740 T a 1 2 3 4 5 6 7 S 9 10 11 12 13 a ISIP 0 p$i - ~ Cum Vol ud ~~-Pressure a Rate bqn ~ ~Santl Canc ppg i o TOTAL SAND 633.3 sx sand _ _ ~ soo.o -. 700.0 I ~ soo.o 500.0 -~ 400.0 -! 300.0 - j 200.0 - 100.0 - I 0.0 m 1 'i 30 25 20 15 10 '/ i5 m ___--___ _._--_ Q 0 C ~...._~_-_ _-._._-i --.--___-___.., .i .-.-___-_-- ___-__-_ T T 0.0 4.9 6.4 7.9 8.9 9.9 10.9 20.9 20.9 20.9 20.9 ~ -Cum Vol bbl --Pressure -Rate bpm --Sand Con p m SEB 1-6 Stg 1 frac Sta e 2 2230' - 2zso', 2zso' - 220', 2365' - 2385', 2390' - 2410', 2420' - 2440', perfs 2450' - 2aso' ft 202 Ikalukrok, Kivalina 1100 MAXIMUM LOAD AND BREAKDOWN 5 PAD 112.7 DISPLACEMENT psi TREATMENT 327.8 DISPL 30 5 MIN 10 MIN TOTAL VOLUME 445.5 Chemic~ USED 637 TREA' Time min Cumul min Rate Vol b m bbl Cum Vol bbl Sand I 1 0.0 0 0.0 0.0 0 2 0.0 29.0 5.0 5.0 0 s a.s 4.9 23.4 112.7 117.7 0 a 1.s 6.4 22.0 33.0 150.7 1 5 1.5 7.9 21.1 31.6 182.3 2 6 1 8.9 20.3 20.3 202.6 3 ~ 1 9.9 19.5 19.5 222.1 4 a 1 10.9 18.8 37.5 259.6 5 s 10 20.9 18.1 180.9 440.5 6 10 0 20.9 0.0 440.5 0 11 0 20.9 0.0 440.5 0 12 0 20.9 0.0 440.5 0 RATE IN B.P.M DISPL Sand Cum Sai # # 0 0 0 0 0 0 1,386 1, 386 2,658 4,044 2,552 6,595 3,272 9,867 7,878 17,745 45,585 63,330 0 63,330 0 63,330 0 63,330 2o.s 21.5 440.5 6 63,330 ISIP 0 TOTAL SAND 633.3 u Gelloatl ~rlooogal Fluid Loss OVERALL Surtactant gaulooogat Biocide 1#/1000 gal Pressure DESCRIPTION OF STAGE Breaker q~looo gal CSG OR EVENT CHEMICALS Conran 4.51N GUAR 467.7 # 25 i Fill Wellbore FLUID LOSS #DIV/0! # Bkdn, est. Rate TRANSFORM 68.8 gal 5 740 PUMP PAD BIOCIDE 18.7 # 1 i 689 START SAND BREAKER 2.8 is o.2 643 SAND ON BOTTOM ~.° , 601 START SAND 70g° ,I SEB 1.5 Stg 2 frac `~, t _ 563 FINNISH SAND 528 FLUSH ~°°° j ~: 0 500 ~ it _ , . 400.0 '~.a.>_w~ -~._._ ~~ ~ ? a°o.o ~ +,~ ~ zoo.o i .' ~! ~. ~~ '~~~ - ~70 1 too.o ; / ` ~i .~ =. i 5 ~. 740 g.g , _ ~ _~ -~- -~ -_,.__ -___ __,_ , _ .T ~ _ _.-; g ~ 1 2 3 4 5 6 7 8 9 10 11 12 13 a tl M`S~ ~ ~ Cum Vol bbl -~+-~Praswre Rate bpm ~ Send Conc ppg sx sand =-- • M M N N - ~ - ~ V L N tG r m w 0 0 0 0 0 0 o ® o o ® o ~ o ~ ~ ~ M to O --+--- -Bdd `Wd8 I i I i ~ i o N N ~Q U ~ ~ . O _. ~ _ C I ~ ~ O N ~ I- ~ .L O ~ ry I.L ~ III i~a ~~ ~ ~ ~~ I- ~ i ~ ~U ~ i I rn ~ I ~ ~~ o 0 - I 0 i 0 0 0 ~ o ~ o N ~ isd `I88 3 LOG Teck Cominco NB- Sta e 3 1910' -1930', 1970' -1990', 2014' - 2034', 2075' - 2095', 2120' - 2140', perfs 2170' - 21so' ft 240 Ikalukrok, Kivalina BRAKDOWN AVERAGE ISIP PRESSURES IN P.S.I. 1240 MAXIMUM DISPLAGEMENT 5 MIN FRAC GRAD psi 0.65 10 MIN psi/ft VOLUMES IN 6i3L5 LOAD AND BREAKDOWN 5 PAD 112.7 TREATMENT 327.8 DISPL 46 TOTAL VOLUME 445.5 Chemicals Gel load /1000 gal HYDRAULIC HORSEPOWER AVERAGE RATE IN B.P.M Fluid Loss USED 637 TREATING DISPL OVERALL Surfactant gall1000 gal BIOCIde 1#/1000 gal Time Cumul Rate Vol Cum Vol Sand Conc Sand Cum Sand Pressure DESCRIPTION OF STAGE Breaker q/1000 gal min min b m bbl bbl # # CSG OR EVENT CHEMICALS Concen 4.51N GUAR 467.7 # 25 1 0.0 0 0.0 0.0 0 0 0 Fill Wellbore FLUID LOSS #DIV/0! # 2 0.0 29.0 5.0 5.0 0 0 0 Bkdn, est. Rate TRANSFORM 68.8 gal s 3 a.s 4.9 23.0 112.7 117.7 0 0 0 633 PUMP PAD BIOCIDE 18.7 # 1 4 1.s 6.4 22.0 33.0 150.7 1 1,386 1,386 590 START SAND BREAKER 2.8 is o.2 5 1.5 7.9 21.1 31.6 182.3 2 2,658 4,044 551 SAND ON BOTTOM ~~oo.o . r s 1 8.9 20.3 20.3 202.6 3 2,552 6,595 515 ~ START SAND ~~ _ SEe 7S Stg JTlec 7 1 9.9 19.5 19.5 222.1 4 3,272 9,867 482 FINNISH SAND ~ ~ s 1 10.9 18.8 37.5 259.6 5 7,878 17,745 452 FLUSH ~ ~.o ~ > s 10 20.9 18.1 180.9 440.5 6 45,585 63,330 I 40D 0 { ~,___ -- i Zo 10 0 20.9 0.0 440.5 0 0 63,330 . Il 11 0 20.9 0.0 440.5 0 0 63,330 f ~~ , ~ ,s 1z o 20 9 0.0 440.5 0 0 63,330 i ~~ t . zooo i i / ,o j i - , ~ L 1 ~~~ ~ o 2os ? 1.5 ,, 440.5 6 63,330 633 ~ J~ ~T`- T T 1 2 3 4 5 8 7 8 9 10 11 -- -- 12 13 @ Ia71 P 0 psi a ~ ~CUm Vcl bhl ~'Preawro Rate bpm ~ ~Santl Canc pp® TOTAL SAND 633.3 sx sand 700.0 ---+ ---- - -- - j 1600.0 -~ r 500.0 400.0 300.0 200.0 100.0 °~, 0.0 m m SEB 1-6 Stg 3 frac -II 35 I i ~- 30 I 25 20 15 10 5 QO a m • ~_ __ i ---~--_._T_.___.__- _. _____-__ \ 0.0 0.0 4.9 6.4 7.9 8.9 _ 9.9 10.9 20.9 20.9 p.g p.9 ~ --Gum Vol bbl -Pressure Rate nr,n, __ c,r,~ ~...._ _._ --- ---- Sta e 4 1436' -1446', 1680' -1700', 187A' - 1830', perfs 1830' - 1850' tt 80 Ikalukrok, Kivalina FRAC MAXIMUM LOAD AND BREAKDOWN 5 PAD 92.0 ~i DISPLACEMENT psi TREATMENT 300.6 DISPL 40 • ISIP 5 MIN 10 MIN TOTAL VOLUME 397.6 Chemicals Gel load #»ooo gai HYDRAULIC HORSEPOWER AVERAGE RATE IN B.P.M Fluid Loss USED 637 TREATING DISPL OVERALL Surfactant gaV1000 gal BIOCIde 1#/1000 gel Time Cumul Rate Vol Cum Vol Sand Gonc Sand Cum Sand Pressure DESCRIPTION OF STAGE Breaker q/1000 gal min min bpm bbl bbl # # CSG OR EVENT CHEMICALS Concen 4.51N GUAR 417.5 # 25 0.0 0 0.0 0.0 0 0 0 Fill Wellbore FLUID LOSS #DIV/0! # 0.0 29.0 5.0 5.0 0 0 0 Bkdn, est. Rate TRANSFORM 63.1 gal s a 4.0 23.0 92.0 97.0 0 0 0 485 PUMP PAD BIOCIDE 16.7 # 1 1.s 5.5 22.0 33.0 130.0 1 1,386 1,386 453 START SAND BREAKER 2.5 is o.2 1.5 7.0 21.1 31.6 161.6 2 2,658 4,044 424 SAND ON BOTTOM ~° .5 1 8.0 20.3 20.3 181.9 3 2,552 6,595 397 START SAND see~a stgarmc 1 9.0 19.5 19.5 201.4 4 3,272 9,867 373 FINNISH SAND 500'° ' ~~ 1 10.0 18.8 37.5 238.9 5 7,878 17,745 351 FLUSH a.5 18.5 18.1 153.8 392.6 6 38,747 56,492 ~ 0 18.5 0.0 392.6 0 0 56,492 ,~.° , ~ '`~- 0 18.5 0.0 392.6 0 0 56,492 0 18.5 0.0 392.6 0 0 56,492 =~~° ` ~,~~ ~~ ~ ~~ "~ / {- 70 i 100.0 ~ ' 1 _~~~ :5 ~ _~~ o.o ;--1T 3!- r5- 6-r 7 ~_$._-i- 9.__x--10 ~ ~ ---;---._.° 18.5 21.5 392.6 6 56,492 485 11 12 13 ~ ISIP ~ p$i ~ ~ Cum V°I bbl -~~~Pressure Rate bpm ` °Santl Conc ppg ~ d `u O`id~,L SAND 564.9 sx sand m • ~.r~ o ~.n M M N L ~i V //~~ V/ 1 r m I.I.I N o ~ o N ~ ~- ~ o _._____._-I------.__ ___-~__---------f--.__----.__~._~-_....__.- .__. ~~d `Wd8 i ao ~ ~ ~ U ~ ~ i °° U j ~ $ _.- - (A ~n I I ~ ~ o .a ~~ ~ o a~ .r _ ~ i j s I 1 i ~ ^N^'' C L ~ i ~ ~ i I ~I ~ ~ i ! ti ~ ~_ ~ u~ U o v o II o ~a o ~ , !lo 0 0 0 0 ~ o M N t ~ 0 o 'i ~ SCI `I88 E & P SERVICES, INC. September 8, 2007 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 Attention: Tom Maunder, P.E., Petroleum Engineer sip ~ 0 200 Alaska Oil & Gas Cons. Commission Anch~ra~a Re: Application for Sundry Approvals (Form 10-403), Teck Cominco Alaska Incorporated, Red Dog Shallow Shale Gas Exploration Project. Well No. NB-03, PTD No. 206-090 Perforating and Hydraulic Fracturing Program Dear Mr. Maunder: The above referenced Application for Sundry Approvals is attached in duplicate: We would appreciate an expedited review of this application and a verbal approval, if at all possible, so the work can go forward as scheduled on -~ ~ August 11, 2007. Thank you for your consideration of this application. Sincerely, ;, ;~ R. C. Gardner For Teck Cominco Alaska Incorporated Attachment 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, AK 99501 Attention: Mr. Tom Maunder, P.E., Petroleum Engineer ~~ SAP 1 3 2Q07 ~~~s~ 0~~ ~~s C~~.~. Connmission ~~chc~~ac~~ Re: Weekly Operations Status Report Teck Cominco Alaska Incorporated, Red Dog Shallow Gas Exploration Program. Report Period: September 2-September 8, 2007 Well No: NB-03 (PTD No. 206-090) Dear Mr. Maunder: FOR THE PERIOD ENDING SATURDAY, SEPTEMBER 8, 2007: Drilled 7 7/8" hole 2030 ft to 2638 ft. Made round trip for new bit and continued drilling to 2983 ft, at which point lost pump pressure indicative of a wash out. POH in singles, and discovered drill collar pin twisted off. Left bit and drill collar fish in the hole (total length = 189 ft). Operator elected to TD hole at this point due to lateness of season and barge schedule for demobilization of equipment. Running open hole logs at close of report period. Prep to run production casing. Sincerel , ~~ ~, . , 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 ~ i E & P SERVICES, INC. September 5, 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: August 26-September 1, 2007 Well No: NB-03 (PTD 206-090) Dear Mr. Maunder: FOR THE PERIOD ENDING SATURDAY, SEPTEMBER 1, 2007: Rigged up Weatherford and ran in open hole with casing perforating charges. Shot 4 jspf at intervals 1790'-1810' and 1690'-1710' in open hole with objective of creating weak zones in wellbore that would encourage initiation of sidetrack in very hard formation. Rigged down Weatherford and RIH with drilling assembly for cleanout run. Recovered approximately 1 bbl of mixed shale and cement, indicating that shots may have been helpful. Set new balanced desified cement plug at 1600'-1928' through open end drill pipe. WOC. Picked up motor, monels, orienting sub and drill collars. Motor set at 2 degrees. RIH and tagged cement plug at 1700 ft. Polished off plug, and ran survey to orient tool face. Drilled on plug, sliding 12 feet. Cuttings showed approximately 60% new formation. Motor drilled 40 ft of new hole, and POH to re-set motor to 1.15 degrees to minimize dog leg and allow rotation of drill-string. RIH and reamed and conditioned sidetrack entry. Oriented tool face and alternately slid 10 ft and rotated 10 ft 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 • (907) 258-3446 • (907) 279-5740 ~ ~ to 1900 ft. Rig down for 3 hours to re-pack pump. Motor drilled and reamed motor runs to 1990 ft. POH to lay down motor and pick up slick BHA. RIH and drilled ahead to 2030 ft at close of report period. Sidetrack hole is now past fish. Sincerely, F ~~ ~.. R. C. Gardner For Teck Cominco Alaska Incorporated Cc: Jerry Booth, Teck Cominco Alaska Incorporated ~~ E & P SERVICES, INC. ~ti/~~ Y E~ AIJG 2 9 2007 Alaska pil & Gas Dons. Commission Ancho~a~e August 28, 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: August 19-25, 2007 Well No: NB-03 (PTD 206-090) Dear Mr. Maunder: FOR THE PERIOD ENDING SATURDAY, AUGUST 25, 2007: Moved in and rigged up on NB-03. Installed and tested diverter. Mixed mud. RIH with slick BHA and tagged cement plug placed in 2006. Attempted blind sidetrack off cement plug, but formation harder than cement plug, and could not get off plug. Plug quality diminishing with depth. Drilled plug to 1973 ft (fish @ 2013 ft). Set new balanced densified cement plug through open-end drill pipe 1670 ft-1973 ft. WOC. Repaired mud puppy. RIH with slick BHA, but still not able to initiate sidetrack due to extremely hard formation. Re-set densified cement plug and WOC. Mobilized mud motor, monels, orienting sub, and directional driller from Salt Lake City. RIH with mud motor set at 1.5 degrees, monel, orienting sub, and two steel drill collars. Oriented tool face 180 degrees from azimuth of hole deviation. Slide motor drilled to 1940 ft, but assembly still followed old hole. POH with motor assembly. Prep to set another densified plug, increase motor angle to 2 degrees, and make another motor run. Evaluating 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 • (907) 258-3446 • (907) 279-5740 t ~ • alternative ways to initiate sidetrack in "gun barrel" formation at close of report period. Sincerely, , -. ~L~<~/ :~ ,,,. R. G Gardner For Teck Cominco Alaska Incorporated Cc: Jerry Booth, Teck Cominco Alaska Incorporated • ~~Q~[~ 0~ G1~1~!~~K~;;'i' C011TSERYO C 1-II-II~SS O1sY R.C. Gardner Sr. Technical Advisor Teck Cominco Alaska Inc. 3105 Lakeshore Dr., Bldg A, Ste 101 Anchorage, AK 99517 Re: Exploration, Wildcat, NB-03 Sundry Number: 307-249 Dear Mr. Gardner: SARAH PALIN, GOVERNOR 333 W. 7th AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. When providing notice for a representative of the Commission to witness any required test, contact the Commission's petroleum field inspector at (907j 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 Commissioner DATED this ~ day of August, 2007 Encl. .~0~-04 d Dan T. Seamount _ __ __ h~ 1 ~3~, 3~ATE OF ALASKA \~,\ Y" J ALAOIL AND GAS CONSERVATION COM SION ,~ ~7 `~~`?i/~ APPLICATION FOR SUNDRY APPRO~/~LG. ~n aa~ ~~ ~Rn Ala"~kaIIll & G: s Co,~~. ~~1al~~~rnis.~ia 1. Type of Request: Abandon ^ Suspend ^ Operational shutdown ^ Perforate ^ n ~~] Other Q Alter casing ^ Repair well ^ Plug Perforations ^ Stimulate ^ Time Extension ^ Resume Change approved program 0 ~ 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 a 206-090 3. Address: Stratigraphic ^ Service ^ 6. API Number: 3105 Lakeshore Dr., Bldg A, Ste 101, Anchorage, AK 99517 50-073-20004-00 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 ^ N/A NB-03 9. Property Designation: ~ 10. KB Elevation (ft): 11. Field/Pool(s): NANA Re Tonal Corporation 1080 Exploratory ' 12. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): ~ Effective Depth MD (ft): Effective Depth TVD (ft): Plugs (measured): Junk (measured): 3502 3502 1852 1852 1850-2013 2013-2027 Casing Length Size MD TVD Burst Collapse Structural Conductor 91 13 3/8" 91 91 Surface 695 8 5/8" 695 695 3930 1370 Intermediate Production Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): No Perfs No Perfs No Tubing N/A N/A Packers and SSSV Type: No Packers or SSSV Packers and SSSV MD (ft): N/A 13. Attachments: Description Summary of Proposal Q 14. Well Class after proposed work: Detailed Operations Program ~ BOP Sketch ^ Exploratory Q ~ Development ^ Service ^ 15. Estimated Date for 8/1/2007 16. Well Status after proposed work: Commencing Operations: Oil ^ Gas ^~ ' Plugged ^ Abandoned ^ 17. Verbal Approval: Date: WAG ^ GINJ ^ WINJ ^ WDSPL ^ Commission Representative: 18. I hereby certity 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 Signature Phone 907-258-3446 Date 20-Jul-07 ~°'. COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: °~ ~ a Plug Integrity ^ BOP Test ^ Mechanical Integrity Test ^ Location Cleara nce ^ cc Other: ~~~~ virccc~~~S Cl~~~~~~ ~ n ~~~ G~Q~4~~T~~ ~ ~lo`~~~o Cx~~~y ¢ 1 Ae ~ ~ ~ I 1 ` a ©,~ ®5- -ro~~ ~~c~©hbe\ovJ iG:.~ c,1~ o-f~- ~abE• ~~.r,~.~Ec~ c~S Subsequent Form Required: L.~~'1 ~\ r ~ M ~hi~s'" ~\,CC~~~~ APPROVED BY ~~ / Approved by: COMMISSIONER THE COMMISSION Date: O R I G I NA ~ e.e~seaeaead eves ~ HtlU ar d LUU/ ~2 Form 10-403 Revised 06/2006 Submi in D~li~'%!~ -~ ~~ • Teck Cominco Alaska Incorporated Well No. NB-03 PTD No. 206-090 API No. 50-073-20004-00 Summary of Proposal to Resume Operations and Initiate Sidetrack Well No. NB-03 encountered severe hole deterioration during the 2006 drilling season. This problem culminated in the loss of a BHA in the hole. "An open hole cement plug was set on top of the fish in preparation for a routine sidetrack. The sidetrack could not be executed in the 2006 drilling season due to the rig being engaged on another well in the project. The well was placed in Operational Shutdown status (Sundry Number 307- 026) until operations could be resumed during the 2007 drilling season. The operator proposes to resume operations at well number NB-03 on or about August 1, 2007, as per the attached operations program. Assuming that wellbore integrity through the open hole section can be demonstrated, a blind sidetrack off of the existing cement plug will be attempted. If this is unsuccessful, a densified cement plug maybe set and the sidetrack attempted again. If this also fails due to the compressive strength of the formation possibly being greater than that of the plug, the sidetrack will be initiated using a mud motor. Once the sidetrack hole is past the fish, the remainder of the well will be conventionally rotary drilled with mud to the programmed total depth of 3500ft MD. ' • U Teck Cominco Alaska Incorporated Well No. NB-03 PTD No. 206-090 API No. 50-073-2004-00 Operations Program Resume Operations and Initiate Sidetrack Current Condition: Casing: Open hole: Cement Plu Fish: (See attached wellbore diagram) 8 s/g" 24# J-55 surface casing @ 695ft MD 7 7/8" open hole from 695ft to top of cement plug at 1850 ft (1155ft). g: 1850 ft to 2013 ft (163ft) 2013ft to 2026.Sft (13.Sft) consisting of bit, tea xo, 1 ea stabilizer and Eft dill collar section. Total Depth of old hole: 3502ft. Concerns: 1) Open hole section has been exposed to well bore fluids (mainly water) for one year, and present condition is unknown. Areas within this section showed signs of instability when originally drilled with air. 2) Cement plug has not been weight tested. Procedure: 1. Hold pre-operations safety meeting, as per established Teck Cominco and Fairweather procedures. 2. MIRU Major Drilling America Schramm T 130 XD rig (Major Rig 24) and ancillary equipment. Nipple up diverter on 8 s/g" starting head. Function test diverter on single joint of drill pipe. 3. Mix simple extended bentonite mud system as directed. ' 4. RRI with 7 ~/8" bit, slick BHA and drill pipe to shoe of surface casing and displace hole to mud. 5. Slowly advance drill string through open hole section. Record depth and thickness of any bridges encountered. Set partial string weight on bridges before cleaning out to assess condition. It is important to determine the condition of the open hole section as thoroughly as possible before initiating sidetrack. If • • condition of open hole section is suspect, advise project manager and technical staff before initiating sidetrack. 6. Clean out to top of cement plug at 1850ft . Dress top of plug. Test plug with 15,OOOlbs string weight. If OK, attempt blind sidetrack off cement plug. If successful, advance sidetracked hole as directed before POH for BHA change. Do not drill more than 60ft into cement plug if sidetrack cannot be initiated. In this instance, operator may elect to set densified cement plug for another try before initiating sidetrack with mud motor. 7. If sidetrack off cement plug(s) cannot be initiated due to compressive strength of formation being greater than that of cement plug(s)(a real possibility), POH and pick up mud motor with adjustable defilation angle, and initiate sidetrack as directed by directional driller. Be sure sidetrack hole is sure to clear fish before POH for conventional rotary drilling assembly. 8. Drill to 3500ft NID as per original program. • • ~E~F~ ~ I LAS A i ~E ELL ®e ELL RE iA A PT: 206-090 AP! M®: 50®0T3p20004-00 S~SPEN®E®JIJLY 31, 2006 r' 988/8' J-55 _ N. uctor ~ 91' MD " ': ` - 12'/." Hole Base of Permafrost ~ ' ,~ ~^ 640'MD `_ ~.; 8 5l6" 24# J~5 Surface ~' CasM9 set ~ 695' MD No Casing below surtace skiing ~° T 7/8° Hole NOTE Hole contains formation water only TopofiFish~2098'MD ` ~_~°~~ ~, ,~.:~, Flsh Bindudes: ~ ~`' " ~'" - Cement plug set ~ 1850' 2 ea ms's 2018' NIO 1 ea 8tabU F Afld I 6' Drill Phm S Total length ®98.5' g Blt ~ 2026.5' MD 8502' AA Total Depib ~ C ent ~J E & P SERVICES, INC. July 22, 2007 Alaska Oil and Gas Conservation Commission 333 West Seventh Avenue, Suite 100 Anchorage, AK 99501 Attention: Tom Maunder, P.E., Petroleum Engineer Re: Application for Sundry Approvals (Form 10-403) Teck Cominco Alaska Incorporated Well Number NB-03, PTD No. 206-090 Proposal to Resume Operations and Initiate Sidetrack Dear Mr. Maunder: }~ ~ ~d.d ~;:, The above referenced Application for Sundry Approval is attached in duplicate. If you have any questions following your review of the application, please contact the undersigned at 907-258-3446, or by e-mail at bob(a~fairweather. com. Thank you for your consideration of this application Sincerely, R. C. Gardner For Teck Cominco Alaska Incorporated. Attachments Cc: Jerry Booth, Teck Cominco Alaska Incorporated CJ 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 • (907) 258-3446 • (907) 279-5740 • • a a a a SARAH PALIN, GOVERNOR va/v-7~~ OII/ ~ ~ 333 W. 7th AVENUE, SUITE 100 C01~5ERQA7'I011T COlrII-II55IO1~T 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-03 Sundry Number: 307-026 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. As discussed in other correspondence, aSundry Application for the activity described should have been filed in advance of conducting the operations or shortly thereafter. In the future your close attention to the filing and reporting requirements pertaining to well activities will be expected. When providing notice for a representative of the Commission to witness any required test, contact the Commission's petroleum field inspector at (907j 659-3607 (pagerj. As provided in AS 31, 05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. A person may not appeal a Commission decision to Superior Court unless rehearing has been requested. DATED this day of February, 2007 Encl. ,.. ,. E & P SERVICES, LLC January 25, 2007 Cathy P. Foerster Commissioner Alaska Oil and Gas Conservation Commission 333 West 7t1i Avenue, Suite 100 Anchorage, AK 99501-3539 3 ~~,~ ~ ., , .. 'sa r; ~'~ Re: Reporting Practices, Teck Cominco Alaska Incorporated, Red Dog Shale Gas Exploration Wells, Nos. NB-Ol, (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 8~' letter. Weekly status reports for wells Number NB-03 and NB-04 were mailed to the Commission while operations were underway on these wells, and I have attached copies for Commission files. In addition, detailed well histories in day-to-day format were included in the Completion Reports for both of these wells. I have attached copies of these histories, as well. As a point of clarification, please advise if we are to submit weekly status reports for the periods when there are no well site operations in progress. I have always assumed that these reports were only required when drilling, completion, or related operations were being done. If this is not the case, I owe you a lot of reports for periods when the wells were idle. In the case of wells Nos. NB-O1 and NB-02, the wells have been idle since 2005, with the exception of the minimal stimulation work discussed in Paragraph 4, below. 2. As previously reported to the Commission, the Completion Reports for NB-O1 and NB-02 were delayed due to the lack of as-built surveys being available from Red Dog. According to information conveyed from Mr. Dave Roby of your office in a recent telephone conversation, we should have submitted the components of the completion reports that we had, and taken our lumps over the missing surveys rather than waiting until we had the complete packages 2000 East 88th Avenue • Anchorage, Alaska 99507 • (907) 258-3446 • (907) 279-5740 '_- 9 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-O1 and NB-02 were not produced or de-watered during the 2006 season, and since the wells were idle, no production reports were filed. Water handling facilities were designed, and installation started during the 2006 season, but no attempts were made to produce or test the wells. De-watering requires a sustained effort, and anything less serves no purpose in evaluating the wells. The initial dewatering efforts in 2005 were for the most part inconclusive, albeit encouraging, as the wells could not be satisfactorily de-watered to develop meaningful production evaluation data. When the wells were freeze protected and shut-in at the end of the 2005 summer season, they quickly refilled with water, and the de-watering process will have to start again from scratch. During the 2005 season dewatering operations, production reports were submitted to the Commission. When the wells were shut-in, I asked Steve Davies of your office if we needed to continue to file these reports while the wells were idle, but show zero production. I was told that we did not need to file the reports during this period, but to be sure to recommence reporting when de-watering and testing resumed. At that time I believe we anticipated that this would be in 2006. Mr. Roby indicates that there is some information in the files to this effect, and that we should have informed the Commission of our change in plans. In hindsight, I believe that he is correct, but I frankly did not recall that we had anything on file committing us to a resumption of testing in 2006. Nevertheless, I think the main issue here is that we have no production to report for 2006. 4. The requested Form 10-404 is attached. In recent months the oil and gas media has published several articles on the Red Dog shale gas exploration effort. In my view, these articles have served to "over hype" the program in the eyes of those who are not intimately acquainted with it. The articles seem to be based on information taken from various technical presentations, and from attachments to a Unit Agreement which was negotiated with DNR covering some shallow gas State leases which adjoin the NANA lands on which the current project is located. There is really no way to counter some of these misconceptions, but they do have the potential for making people believe that the program is farther along than it is. In order to better inform the Commission about the current status of the program, and our plans for the 2007 summer season, Mr. Jerry Booth, Teck Cominco Project Manager, and I would welcome an opportunity to meet with the Commissions and any of your staff that you wish to involve, and basically tell you where we are on this project, and to re-affum 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. ,r ~- _, Teck Cominco Alaska Incorporated and Fairweather E & P Services, Inc. are committed to improving the communication between our companies and the AOGCC, and to eliminating any future shortfalls in proving your agency with the information you require in a timely manner. We believe that the suggested face-to-face meeting would be beneficial to these objectives, and to clearing up any misconceptions the Commission may have about progress that the Red Dog exploration program has made in evaluating this unconventional source of energy for the Red Dog Mine, and perhaps the surrounding area. Sincerely, R. C. Gardner For Teck Cominco Alaska Incorporated Attachments Cc: Dave Roby, AOGCC Jerry Booth, Teck Cominco Alaska Incorporated .- • • E & P SERVICES, INC. January 18, 2007 Alaska Oil and Gas Conservation Commission 333 West 7~' Avenue., Suite 100 Anchorage, AK 99501-3539 Attention: Ms. Cathy P. Foerster, Commissioner Re: Teck Cominco Alaska Incorporated Well No. NB-03 Dear Ms. Foerster: We are in receipt of your letter dated January 8, 2007 re the status of the above referenced well. The requested Form 10-403 applying for operational shutdown status for this well in accordance with 20 AAC 25.072(a), and the rationale for this application is attached in duplicate. Previously submitted reports on this well (Forms 10-404 and 10-407) have described events that resulted in severe hole deterioration after reaching TD, an aborted attempt to run casing, and the subsequent loss of a BHA while attempting aclean-out run. At the time the side-track cement plug was set, it was planned to complete operations on the well during the 2006 drilling season. While drilling procedures for the side-track were being developed that would avoid a replay of the hole deterioration problems previously encountered, operational continuity in the short summer drilling season was maintained by moving the drilling rig to the NB-041ocation and spudding that well. Unfortunately the downhole difficulties encountered in NB-04, which ultimately led to premature abandonment of that well, consumed most of the remaining 2006 drilling window. When it became apparent that there insufficient time remaining in the season to side-track NB- 03, the Form 10-404 was filed to advise the Commission that operations on the well would not be resumed until 2007. We now realize and understand that it was procedurally the incorrect course of action to take, as technically we had not suspended the well in accordance with 20 AAC 25.110(d), but rather shutdown operations for the winter. From a practical perspective, setting the required suspension plugs as per 20 AAC 25.110(d) would have amounted to a P & A of this well, minus the surface plug, and this would have required more time to implement than remained in our season due to pre-existing barge schedules for demobilization. 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~C • • In hindsight, we should have done a better job of keeping the Commission informed of these changes in plans. For what it is worth, I did discuss the NB-03 situation with Tom Maunder and Steve Davies at the AOGCC during the same meeting where we evaluated P & A options for the NB-04 well, although admittedly NB-03 was not the primary focus of the meeting. Our current plans for the 2007 Red Dog drilling season include the side track of NB-03. If for any reason the operator elects to not move forward with these plans, the well will be plugged and abandoned during 2007. In addition, we will do a better job of keeping the Commission informed on our activities. Initially we will file another Form 10-403 before operations resume at NB-03 that will describe the drilling plan for the well. We have learned from experience in 2006 that the hole section below surface casing is best not drilled with air due to the fractured and unstable formation encountered. Please contact me if you have any questions at 907 258 3446, or by e-mail at bobs fairweather.com. Sincerely, f'"~~.~- ;~ R. C. Gardner For Teck Cominco Alaska Incorporated Attachments Cc: Dave Roby, AOGCC Jerry Booth, Teck Cominco Alaska Incorporated. ~, ~ ~ ;' ,~~ ' ;~, , ALASSA OII. A11TD GAS CO1~T5ERQATIOi1T COrIIKI551O~T January 8, 2007 Mr. Robert Gardner Sr. Technical Advisor for Teck Cominco Alaska Incorporated 3105 Lakeshore Dr., Bldg. A, Ste. 101 Anchorage, AK 99517 SARAH PALIN, GOVERNOR 333 W. 7th AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Subject: Status of Exploratory Well NB-03 (PTD 206-090) Dear Mr. Gardner: On December 7, 2006, the Alaska Oil and Gas Conservation Commission ("Commission") received a Well Completion or Recompletion Report and Log (Form 10- 407) and a Report of Sundry Well Operations (Form 10-404) for Well NB-03 indicating that the subject well has been suspended. However, the work on NB-03 fails to meet the specific plugging requirements of 20 AAC 25.110(d), and is therefore not suspended. Of addition concern, Teck Cominco Alaska Incorporated did not comply with 20 AAC 25.110 that requires Commission approval before plugging operations are begun. Based on the description provided by the Form 10-404, NB-03 is more properly classified as being temporarily shutdown in accordance with 20 AAC 25.072. Please submit an Application for Sundry Approvals (Form 10-403) requesting an operational shutdown that meets the requirements of 20 AAC 25.072(a) no later than close of business Friday January 19, 2007. If you have any questions on this matter please contact Mr. Dave Roby of the Commission's staff at (907) 793-1232. Sincerely, ~ ~,;~,~- Cathy P. Foerster Commissioner STATE OF ALASKA (' ~~- ALAS~IL AND GAS CONSERVATION COMMI~ON APPLICATION FOR SUNDRY APPROVALS 20 AAC 25.280 ~~IVED ,.JAN 1 S 2Q07 ~SSIOh 1. Type of Request: Abandon ^ Suspend ^ Operational shutdown ~ 'Perforate ^ giver Other Alter casing ^ Repair well ^ Plug Perforations ^ Stimulate ^ Time Extension ^ ~11t:~®!'8~e 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 ^ , 206-090 , 3. Address: Stratigraphic ^ Service ^ 6. API Number: 3105 Lakeshore Dr.Bldg A,Ste101Anch., AK 99517 50-073-20004-00 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: N/A Spacing Exception Required? Yes ^ No ^ NB-03 9. Property Designation: 10. KB Elevation (ft): 11. Field/Pool(s): NANA Re Tonal Cor oration ` 1080 Ex lorato 12. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD (ft): Effective Depth TVD (ft): Plugs (measured): Junk (measured): 3502 3502 1852 1852 1850-2013 2013-2027 Casing Length Size MD TVD Burst Collapse Structural Conductor 91 13 3/8" 91 91 Surface 695 8 5/8" 695 695 3930 1370 Intermediate Production Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): No Perfs No Perfs No Tubing N/A N/A Packers and SSSV Type: No Packers or sssv Packers and SSSV MD (ft): N/A 13. Attachments: Description Summary of Proposal ~ 14. Well Class after proposed work: Detailed Operations Program ^ BOP Sketch ^ Exploratory 0 - Development ^ Service ^ 15. Estimated Date for 16. Well Status after proposed work: Commencing Operations: Oil ^ Gas ~ Plugged ^ Abandoned ^ 17. Verbal Approval: Date: WAG ^ GINJ ^ WINJ ^ WDSPL ^ Commission Representative: 18. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Printed Name R.C. Gardner Title Sr. Technical Advisor for Teck Cominco Alaska Signature ~ / Phone (907) 258-3446 Date COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number:` r, Plug Integrity ^ BOP Test ^ Mecha nical Integrity Test ^ Location Clearance ^ \ Other: ~b ~ ~'~, ASV ~~ E~~~..tTU-`~~C~~~ ~ ~ ~F~ ~~~ ~ ~ ~~~~ . Subsequent Form Required: ~-~ ~ i APPROVED BY Approved b : I STONE THE COMMISSION Date: Q y ., . Form 10-403 Revised 06/2006 ~'~(I ~y i ~'~-~, ~~ .Submit in Duplicate • Teck Cominco Alaska Incorporated Well No. NB-03 PTD No. 206-090 API No. 50-073-20004-00 Summary of Proposal to Place Well In Operations Shutdown Status f Well No. NB-03 encountered severe hole deterioration due to a series of events which are described on the attached well history. These problem culminated in the loss of a BHA in the hole (see attached wellbore schematic). An open hole cement plug was set on top of the fish in preparation for a routine side-track. While plans that would avoid a repetition of the hole deterioration problems in the side-track hole were being developed, the rig was moved to another location to maintain operational continuity during the short summer drilling season. Unfortunately, downhole difficulties encountered at the new location consumed most of the remaining 2006 drilling window, such that insufficient time remained for the NB-03 side-track. 'T'his well is now shutdown for the 2006-2007 winter season. Application is made to place the well in operations shutdown status pending a return to the well during the summer 2007 drilling season, when the side-track will be resumed. A Form 10-403 will be submitted in advance to resuming operations which will describe the drilling program. • TECK COMINCO ALASKA INCORPORATED WELL No: NB-03 WELL-BORE DIAGRAM PTD: 206-090 API No: 50-073-2000400 SUSPENDED JULY 31, 2006 183/8" J-55 Conductor ~ 91' MD 8518" 24# J-55 Surface Casing set ~ 695' MD ~.E r4 ~ « ~~ i *, E,.. ~~ ~~: .~ ', ~c~ .T \,. r; •; 12'/," Hole Base Of _ Permafrost ~ a 840'MD ,. -3 '..• No Casing below surface string 7 718" Hole NOTE: Hole contains formatiar water only Top of Fish ~ 2013' MD Fish includes: Bit 2 ea XO's 1 ea Stabilizer-- And 6' DHII pipe Total length ®13.5' Bit ~ 2026.5' MD < 3502' MDff1/0 Totat Depth F I S H Cement Plug set ~ 1850' - - 2013' MD Cement /- ~~ Well History Teck Cominco Alaska Incorporated Well No. NB-03 PTD No. 206-090 API No. 50-073-20004-00 Date Description July 16, 2006 Completed conductor installation. Completed rig-up. Installed diverter July 17, 2006 Cleaned cement out of conductor. Spudded well at 1100hrs, July 17, 2006. Hammer drilled 121/a" hole to 522ft. Water influx at < 5 gpm. Survey at 500 ft = 2.1 ° July 18, 2006 Drilled surface hole 522-702 ft MD. Ran 8 s/g" surface casing to 695ft. Rigged up cementers and cemented surface casing with 435 sx Cold Set II. Good returns throughout job. Cement to surface. WOC 12 hrs. July 19, 2006 Nipple up wellhead, and re-install diverter. RIH with hammer drill and tagged cement at 670 ft. Cleaned out surface casing and drilled 7 ~/g" hole to 1120 ft. Survey at 100 ft = 2.3 °. Water influx rate 5-7 gpm. July 20, 2006 Hammer drilled 7 ~/s" hole from 1120 ft to 1800 ft. Formation severely fractured. Survey at 1500 ft = 4.0°. Water influx rate = 7 gpm. July 21, 2006 Hammer drilled 7 ~/8" hole from 1800 ft to 2300 ft. Survey at 2000 ft = 4.2°. Water influx rate increased to ~ 25 gpm. July 22, 2006 Hammer drilled 7 ~/g" hole from 2300 ft to 2730 ft. Survey at 2500 ft = 4.5°, Water influx rate increased to 40 gpm at 2720 ft. Formation severely fractured. July 23, 2006 Hammer drilled 7 ~/g" hole from 2730 ft to 3083 ft. Survey at 3000 ft = 4.2°. Water influx rate through drilled interval averaged 40-45 gpm. July 24, 2006 Hammer drilled 7 ~/g" hole from 3083 ft to 3465 ft. No change in water influx rate. Formation severly fractured. July 25, 2006 Hammer drilled 7 ~/8" hole from 3465 ft to TD at 3502 ft M.D. Survey at 3500 ft = 4.0°. Water influx rate at TD = 45 gpm. TD reached at 1100 hrs, July 25, 2006. POOH, repaired rotary table on trip out. Rigged-up loggers, and discovered internal damage to logging equipment due to seawater spray during barge voyage. Replacement equipment ordered from Kenai. Waited on arrival of replacement equipment. July 26, 2006 Waiting on arrival of replacement logging computer and other equipment. Weather down at Red Dog. Finally received logging equipment at 1900 hrs this date. Installed same and worked on bugs. July 27, 2006 RIH with logging tools at 0500 hrs this date. Hit bridge at 2000 ft. Geologists advise this in the area of a thrust zone between the Kivalina and Ikalukrock formations. Aborted logging run, and RIH with drill pipe. Rigged up BJ and circulated drill pipe to TD. Pulled drill pipe to 2510 ft, and rigged up loggers. RIH through drill pipe with gamma ray and sonic waveform. Sonic tool failed at 3433 ft. POOH with logging tools. RIH with compensated density/neutron tool, and logged from 3433 ft to 2510 ft. Accumulated fill at bottom of hole precluded getting any deeper. Pulled out of hole with tools and pulled drill pipe up 160 ft. Resumed logging attempt, but tools would not exit drillpipe. Hole conditions deterating rapidly. July 28, 2006 Rigged up BJ to attempt to pump through drillpipe. No luck.. POOH with drillpipe and found pipe plugged with large rock and rock fragments. Made final logging attempt in openhole above problem zone. Hole logged successfully 2008 ft to 695 ft. Elected to run 51/z" casing due to deteriorating hole conditions. Red Dog communications to town out .~ of order. RIH with casing to 2252 ft and hit hard bridge. Rigged up BJ to try to circulate casing, but unable to get casing any deeper. July 29, 2006 Made on-site decision to POOH with casing. Red Dog communications with town still down. RIH with BHA and tricone (no jets) to clear bridge. Hit new bridge at 1980 ft. cleaned out bridges to 2400 ft. Hole in very poor condition. Elected to set cement plug through problem zone. Set 123 sx Type I cement plug at 2400 ft. Unable to move drillpipe after setting plug. Acts suspiciously like pipe. cemented in hole. Waited on orders. July 30, 2006 Elected to explosively sever drillpipe above BHA. Red Dog communications restored this date. Ran sinkers bar on wireline down drillpipe to confirm that shot would go. Waited on availability of blaster. July 31, 2006 RIH hole with drillpipe severing charge to 2013 ft and successfully detonated charge. POOH with drillpipe. Top of fish at 2013 ft.. Set 50 sx Type I cement plug (161 ft in 8" hole) on top of fish. Pulled drillpipe dry. WOC 8 hrs. RIH with wireline and confirmed top of plug at 1850 ft. Rigged down and started move to NB-041ocation. Well NB-03 to be sidetracked in 2007 season. Well suspended as of 2100 hrs July 31, 2006 s January 8, 2007 Mr. Robert Gardner Sr. Technical Advisor for Teck Cominco Alaska Incorporated 3105 Lakeshore Dr., Bldg. A, Ste. 101 Anchorage, AK 99517 • SARAH PAL/N, GOVERNOR 333 W. 7th AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Subject: Shortfalls in Reporting Practices Related to Exploratory Shale Gas Wells NB-O1 (PTD 205-095) ~I .l~-~)2~P D 5-096) NB-03 PTD 206-090) NB-04 (PTD 206-09 ) NB-OS (PTD 206-097) Dear Mr. Gardner: The Alaska Oil and Gas Conservation Commission ("Commission") wishes to bring to your attention that, to date, Teck Cominco Alaska Incorporated ("Teck Cominco") has either failed to comply with Commission reporting requirements or been seriously late in providing reports related to this exploratory shale gas program. 1) The Commission issued a drilling permit for each of the five wells in this project, and each of those permits requires a weekly status report for the well from spud until suspension or plugging and abandonment. These reports were submitted for wells NB-O1 and NB-02 during the 2005 drilling season, but no weekly status reports were submitted for activities during 2006. Please provide the missing weekly reports or a summary of that information to the Commission no later than close of business Friday, February 2, 2007. 2) Records indicate that wells NB-Ol and NB-02 were completed on September 10, 2005. Commission regulation 20 AAC 25.070(3) requires submittal of a completion report and logs within 30 days of the completion of a well, but Teck Cominco was over 5 months late submitting this information to the Commission. A similar but shorter delay was experienced with well NB-03. 3) It is presumed, but cannot be confirmed due to the lack of weekly status reports, that attempts to produce the NB-O1 and NB-02 wells resumed as planned this ,,. Mr. Robert Gardner January 8, 2007 Page 2 of 2 year. As required by 20 AAC 25.230 the Commission should have received monthly production reports, presuming an attempt was made to produce the 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-O1. The application indicated that operations were imminent, but the Commission has not received the required Form 10-404 or any other documents to indicate whether or not these operations have occurred. Please provide the Form 10-404 (or a status report if the workover operations were not completed) to the Commission no later than close of business Friday, February 2, 2007. Proper and timely reporting is required by Commission regulations. If reporting practices do not comply, the Commission will consider taking enforcement action in accordance with 20 AAC 25.535. If you have any questions on this matter please contact Mr. Dave Roby of the Commission's staff at (907) 793-1232. Sincerely, i~~° / Cathy.~~ Foerster Commissioner 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: Status of Exploratory Well NB-03 (PTD 206-090) Dear Mr. Gardner: On December 7, 2006, the Alaska Oil and Gas Conservation Commission ("Commission") received a Well Completion or Recompletion Report and Log (Form 10- 407) and a Report of Sundry Well Operations (Form 10-404) for Well NB-03 indicating that the subject well has been suspended. However, the work on NB-03 fails to meet the specific plugging requirements of 20 AAC 25.110(d), and is therefore not suspended. Of addition concern, Teck Cominco Alaska Incorporated did not comply with 20 AAC 25.110 that requires Commission approval before plugging operations are begun. Based on the description provided by the Form 10-404, NB-03 is more properly classified as being temporarily shutdown in accordance with 20 AAC 25.072. Please submit an Application for Sundry Approvals (Form 10-403) requesting an operational shutdown that meets the requirements of 20 AAC 25.072(a) no later than close of business Friday January 19, 2007. If you have any questions on this matter please contact Mr. Dave Roby of the Commission's staff at (907) 793-1232. Sincerely, {///\/ ~j /J ~ ,i~ %J `i ice/ ^qv//J~ !// ~ / Cathy P. Foerster Commissioner ~, r< STATE OF ALASKA ALA OIL AND GAS CONSERVATION COM LION REPORT OF SUNDRY WELL OPERATIONS ~tE~EIVED DEC072006 _ir_ rizl~ 1. Operations Abandon Repair Well Plug Perforations Stimulate Alaska. 0 Performed: Alter Casing ^ Pull Tubing ^ /~~~P` ~Forate New Pool ^ Waiver^ Time Extensio~~~~end well. Change Approved Program ^ Operat. Shutdown ,Ol" y~~0~ Perforate ^ Re-enter Suspended Well 2. Operator Teck Cominco Alska Incorporated 4. Well Class Before Work: 5. Permit to Drill Number: Name: Development ^ Exploratory 206-090 3. Address: 3105 Lakeshore Dr., Bldg A, Ste 101 Stratigraphic^ Service^ 6. API Number: Anchorage, AK 99517 50-073-20004-00 7. KB Elevation (ft): 9. Well Name and' Number: 1080 ft NB-03 8. Property Designation: 10. Field/Pool(s): NANA Regional Corporation + Exploratory 11. Present Well Condition Summary: Total Depth measured 3502 feet Plugs (measured)1852-2013 ' true vertical 3502 ~ feet Junk (measured) 2013-2026 ' Effective Depth measured 1852 feet true vertical 1852 feet Casing Length Size MD TVD Burst Collapse Structural 91' 13 3/8" 91' 91' Conductor 695' 8 5/8" 695' 695' 3930 1370 Surface Intermediate Production Liner Perforation depth: Measured depth: None True Vertical depth: None Tubing: (size, grade, and measured depth) None Packers and SSSV (type and measured depth) None 12. Stimulation or cement squeeze summary: Intervals treated (measured): None Treatment descriptions including volumes used and final pressure: 13. Representative Daily Average Production or Injection Data No Production Oil-Bbl Gas-Mcf Water-Bbl Casing Pressure Tubing Pressure Prior to well operation: Subsequent to operation: 14. Attachments: 15. Well Class after work: Copies of Logs and Surveys Run Exploratory0 Development ^ Service ^ Daily Report of Well Operations Summary 16. Well Status after work: Oil ^ Gas ^~ 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. pt: Contact Printed Name R.C Gardner Title Sr. Technical Advisor for Teck Cominco Alaska Inc. .~''" Signature, Phone (907) 258-3446 Date Nov. 28, 2006 Form 10-404 Revised 04/20q"o f !-C I ~ ~ 1 v ~ L ~ ~~ .''~ ~ ~) ~ 1 ~`~! Submit Original Only V t ~ lJ ~p ~z• ~3•oG .~ a r Well History Teck Cominco Alaska Incorporated Well No. NB-03 PTD No. 206-090 API No. 50-073-20004-00 Date Description July 16, 2006 Completed conductor installation. Completed rig-up. Installed diverter July 17, 2006 Cleaned cement out of conductor. Spudded well at 1100hrs, July 17, 2006. Hammer drilled 121/a" hole to 522ft. Water influx at < 5 gpm. Survey at 500 ft = 2.1° July 18, 2006 Drilled surface hole 522-702 ft MD. Ran 8 s/g" surface casing to 695ft. Rigged up cementers and cemented surface casing with 435 sx Cold Set II. Good returns throughout job. Cement to surface. WOC 12 hrs. July 19, 2006 Nipple up wellhead, and re-install diverter. RIH with hammer drill and tagged cement at 670 ft. Cleaned out surface casing and drilled 7 ~/8" hole to 1120 ft. Survey at 100 ft = 2.3°. Water influx rate 5-7 gpm. July 20, 2006 Hammer drilled 7 ~/g" hole from 1120 ft to 1800 ft. Formation severely fractured. Survey at 1500 ft = 4.0°. Water influx rate = 7 gpm. July 21, 2006 Hammer drilled 7 ~/g" hole from 1800 ft to 2300 ft. Survey at 2000 ft = 4.2°. Water influx rate increased to ~ 25 gpm. July 22, 2006 Hammer drilled 7 ~/8" hole from 2300 ft to 2730 ft. Survey at 2500 ft = 4.5°, Water influx rate increased to 40 gpm at 2720 ft. Formation severely fractured. ~. • • July 23, 2006 Hammer drilled 7 ~/g" hole from 2730 ft to 3083 ft. Survey at 3000 ft = 4.2°. Water influx rate through drilled interval averaged 40-45 gpm. July 24, 2006 Hammer drilled 7 ~/g" hole from 3083 ft to 3465 ft. No change in water influx rate. Formation severly fractured. July 25, 2006 Hammer drilled 7 ~/g" hole from 3465 ft to TD at / 3502 ft M.D. Survey at 3500 ft = 4.0°. Water influx rate at TD = 45 gpm. TD reached at 1100 hrs, July 25, 2006. POOH, repaired rotary table on trip out. Rigged-up loggers, and discovered internal damage to logging equipment due to seawater spray during barge voyage. Replacement equipment ordered from Kenai. Waited on arrival of replacement equipment. July 26, 2006 Waiting on arrival of replacement logging computer and other equipment. Weather down at Red Dog. Finally received logging equipment at 1900 hrs this date. Installed same and worked on bugs. July 27, 2006 RIH with logging~ools at 0500 hrs this date. Hit bridge at 2000 ft. Geologists advise this in the area of a thrust zone between the Kivalina and Ikalukrock formations. Aborted logging run, and RIH with drill pipe. Rigged up BJ and circulated drill pipe to TD. Pulled drill pipe to 2510 ft, and rigged up loggers. RIH through drill pipe with gamma ray and sonic waveform. Sonic tool failed at 3433 ft. POOH with logging tools. RIH with compensated density/neutron tool, and logged from 3433 ft to 2510 ft. Accumulated fill at bottom of hole precluded getting any deeper. Pulled out of hole with tools and pulled drill pipe up 160 ft. Resumed logging attempt, but tools would not exit drillpipe. Hole conditions deterating rapidly. ~ July 28, 2006 Rigged up BJ to attempt to pump through drillpipe. No luck.. POOH with drillpipe and found pipe plugged with large rock and rock fragments. Made final logging attempt in openhole above problem zone. Hole logged successfully 2008 ft to 695 ft. Elected to run S lh" casing due to deteriorating hole conditions. Red Dog communications to town out +~, • • of order. RIH with casing to 2252 ft and hit hard bridge. Rigged up BJ to try to circulate casing, but unable to get casing any deeper. July 29, 2006 Made on-site decision to POOH with casing. Red Dog communications with town still down. RIH with BHA and tricone (no jets) to clear bridge. Hit new bridge at 1980 ft. cleaned out bridges to 2400 ft. Hole in very poor condition. Elected to set cement plug through problem zone. Set 123 sx Type I cement plug at 2400 ft. Unable to move drillpipe after setting plug. Acts suspiciously like / pipe. cemented in hole. Waited on orders. July 30, 2006 Elected to explosively sever drillpipe above BHA. Red Dog communications restored this date. Ran sinkers bar on wireline down drillpipe to confirm that shot would go. Waited on availability of blaster. July 31, 2006 RIH hole with drillpipe severing charge to 2013 ft and successfully detonated charge. POOH with drillpipe. Top of fish at 2013 ft.. Set 50 sx Type I ~' cement plug (161 ft in 8" hole) on top of fish. Pulled drillpipe dry. WOC 8 hrs. RIH with wireline and confirmed top of plug at 1850 ft. ~ Rigged down and started move to NB-041ocation. Well NB-03 to be sidetracked in 2007 season. Well suspended as of 2100 hrs July 31, 2006 • E & P SERVICES, INC. November 28, 2006 Alaska Oil and Gas Conservation Commission 333 7th Avenue, Suite 100 Anchorage, AK 99501 Attention: Mr. Tom Maunder, P.E. ~--~ ~ ~ 4 7 2006 ~~'~,v *sEi teas Corns. Commission Anchorage Re: Well Completion Report (Form 10-407) for Teck Cominco Alaska Incorporated, Well Number NB-03, PTD No. 206-090 (Suspended) Dear Mr. Maunder: Per your e-mail of November 17, 2006, please find the Completion Report and attachments for the above referenced well. This well is currently suspended and awaiting a sidetrack during the 2007 drilling season. Also enclosed is Form 10-404 which reports on setting a cement plug above a fish in preparation for sidetracking the well. At the time this plug was set it was planned to effect the sidetrack as soon as drilling operations were completed at well number NB-04. Difficulties encountered while drilling NB-04 used up much of the remaining 2006 drilling season, which forced postponement of NB-03 ~- sidetrack until the 2007 season. f This situation has unavoidably placed well number NB-03 into suspended status until next year, and the Completion Report reflects this change. We are cognizant of the fact that NB-03 cannot remain suspended indefinitely. If the sidetrack cannot be timely executed, the well will be plugged and abandoned in accordance with AOGCC regulations. Please contact the undersigned at 907 258 3446, or by e-mail at bob(a~fairweather.com if you have any questions. Sincerely; i _ ~_.... /~ "~ . C. Gardner For Teck Cominco Alaska Incorporated Enclosures 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 ~EPTo OF ENVIRONIVIENTAL CONSERVATION DI'V'ISION OF SPILL PREVENTION AND RESPONSE I~'DUSTRY PREPAREDNESS PROGRAlv1 EXPLORATION PRODUCTION & REFINERIES FRANK H. MURKOWSKI, GOVERNOR 555 Cordova Street Anchorage, AK 99501 PHOiVE: (907) 269-3072 FAX: {907) 269-7687 htt~://w ww. dec. state. ak :us __, ~ ~ P ~ ~-L ~~ b- ~~. Mr. Robert Gardner loll v~~.uli i~..r i:" 1 vv~ .. , 11;v. 2000 East 88`" Avenue Anchorage, AK 99507 November 17, 2006 _ ~~ ;;;;~_ File No: 30~.0~ 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 (ODPCP} 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 locatPrl in cectinnc 17 and 1 R of T31N, '~ =~~~', .Trt~:e':. five:'~:?eridian, r. the DeLor:g VIo~_t.ntairs. The Drogram 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 'peen 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. ~~ m~ a~1n~z~ ~, ,~~_ -. _ Mr. Robert Gardner Fairweather November 1?, 2406 Based upon A®GCC's evaluation and determination, ADEC hereby finds that a well drilled within the Iged I)og Shallow has Exploration I9rilling 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 ~S 46.04.050(c) and is exempt from ODPCP and Ff8 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-?680. Sincerely. _ ~ ~~~ 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 FZEGEIVE® ,~ ,~' STATE OF ALASKA ALASI~IL AND GAS CONSERVATION COMMI~N ~E~ ~ ~ ZOO6 WELL COMPLETION OR RECOMPLETION REPORt~Tas1~N0 Q~O~Q$S• COfnmissian 1a. Well Status: Oil Gas Plugged Abandoned Suspended ~ WAG 2o~uczs.~os zoaac2s.~~o GINJ ^ WINJ ^ WDSPL^ No. of Completions Other 1b. Well Class: I1C 01'888 Development ^ Exploratory^ Service ^ Stratigraphic Test^ 2. Operator Name: Teck Cominco Alaska Incorporated 5. Date Comp., Susp., or Aband.: 7/31/2006 12. Permit to Drill Number: 206-090 . 3. Address: 3105 Lakeshore Dr,Bldg A, Ste101 Anch, AK 99517 6. Date Spudded: 7/17/2006 13. API Number: 50-073-20004-00 4a. Location of Well ((Governmental Section): Surtace: 1654.84 ft FWL, 3407.OOft FNL, Sea 17 T.31 N., R. 18 W., KRM ~ 7. Date TD Reached: .7/25/2006 14. Well Name and Number: NB-03 Top bf Productive Horizon: N/A 8. KB Elevation (ft): 1080ft 15. Field/Pool(s): Exploratory Total Depth: Same 9. Plug Back Depth(MD+TVD): 1852 ft 4b. Location of Well (State Base Plane Coordinates): Surface: x- 584,985.376 y- 5,149,048 ~ Zone- 7 10. Total Depth (MD + TVD): ~ 3502 MD & TVD ' 16. Property Designation: NANA Regional Corporation' TPI: x- y- Total Depth: x- 584,985.376 y- 5,149,048 Zone- Zone- 7 11. Depth Where SSSV Set: N/A 17. Land Use Permit: NANA Agreement 18. Directional Survey: Yes No ~ 19. Water Depth, if Offshore: N/A feet MSL 20. Thickness of Permafrost: Est. 640 ft 21. Logs Run: Array Induction, Comp. Density, Neutron, Caliper, Gamma Ray (Logging run incomplete due to hole conditions) 22• CASING, LI NER AND CEMENTING RECORD CASING WT. PER GRADE SETTING DEPTH MD SETTING DEPTH TVD AMOUNT FT TOP BOTTOM TOP BOTTOM HOLE SIZE CEMENTING RECORD PULLED 13 3/8 - 61 J-55 Surface 91 Surface 91 ~ 18" 26 sx Permafrost None 8 5/8 24 J-55 Surface 695 Surface 695 12 1/4" 435 sx Cold Set II None 23. Perforations open to Production (MD + TVD of Top and Bottom 24. TUBING RECORD Interval, Size and Number; if none,. state "none"): SIZE DEPTH SET (MD) PACKER SET (MD) None None 25. ACID, FRACTURE, CEMENT SQUEEZE, ETC. DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED None 26. PRODUCTION TEST Date First Production: No Test Method of Operation (Flowing, gas lift, etc.): Date of Test: Hours Tested: Production for Test Period Oil-Bbl: Gas-MCF: Water-Bbl: Choke Size: Gas-Oil Ratio: Flow Tubing Press. Casing Press: Calculated 24-Hour Rate ~ Oil-Bbl: Gas-MCF: Water-Bbl: Oil Gravity -API (con-): 27. CORE DATA Brief description of lithology, porosity, fractures, apparent dips and presence of oil, gas or water (aftach separate sheet, if necessary). Submit core chips; if none, state "none". S~ ~«y-r,~. No cores cut in this well ra~.~}} :~t~TE I Form 10-407 Revised 12/2003 TI UED ON REVERSE ~~ /Z • /j D~, 2R. GEOLOGIC MARKE 29. ORMATION TESTS NAME TVD Include and briefly su ize test results. List intervals tested, and attach Kivalina Surface to - 2000' detailed supporting data as necessary. If no tests were conducted, state Ikalvkrok - 2000" "None". No Drillstem test were conducted on this well 30. List of Attachments: As-built survey, wellbore diagram, well history, Description of drill cuttings, Logs, From 10-404 31. 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 Inc. Signature: ..~_--- Phone: (907) 258-3446. Date: 11/28/2006 ~~~ INSTRUCTIONS General: This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Alaska. Submit a well schematic diagram with each 10-407 well completion report and 10-404 well sundry report when the downhole well design is changed. Item 1a: Classification of Service wells: Gas Injection, Water Injection, Water-Alternating-Gas Injection, Salt Water Disposal, Water Supply for Injection, Observation, or Other. Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPI (Top of Producing Interval). Item 8: The Kelly Bushing elevation in feet above mean low low water. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The APi number reported to AOGCC must be 14 digits (ex: 50-029-20123-00-00). Item 20: True vertical thickness. Item 22: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 23: If this well is completed for separate production from more than one interval (multiple completion), so state in item 1, and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval). Item 26: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut-in, or Other (explain). Item 27: If no cores taken, indicate "none". Item 29: List all test information. If none, state "None". Form 10-407 Revised 12/2003 • • • • TECK COMINCO ALASKA INCORPORATED WELL No: NB-03 WELL-BORE DIAGRAM PTD: 206-090 API No: 50-073-2000400 SUSPENDED JULY 31, 2006 13 3/8° Conductor 8 5/8" 24# J Casing set Top of Fi: Fish 2~ 1 ea 6' [ Total le Bit ~ 35 12'/.° Hole Base of Permafrost ~ 640'MD No Casing below surface string 7/8' Hole NOTE: Hole contains fonmation water ony cement Plug set ~ 1850' - 2013' MD Cement • • Well History Teck Cominco Alaska Incorporated Well No. NB-03 PTD No. 206-090 API No. 50-073-20004-00 Date Descri tion July 16, 2006 Completed conductor installation. Completed rig-up. Installed diverter July 17, 2006 Cleaned cement out of conductor. Spudded well at 1100hrs, July 17, 2006. '` Hammer drilled .121/a" hole to 522ft. Water influx at < 5 gpm. Survey at 500 ft = 2.1° July 18, 2006 Drilled surface hole 522-702 ft MD. Ran 8 s/8" surface casing to 695ft. Rigged up cementers and cemented surface casing with 435 sx Cold Set IL Good returns throughout job. Cement to surface. WOC 12 hrs. July 19, 2006 Nipple up wellhead, and re-install diverter. RIH with hammer drill and tagged cement at 670 ft. Cleaned out surface casing and drilled 7 ~/8" hole to 1120 ft. Survey at 100 ft = 2.3°. Water influx rate 5-7 gpm. July 20, 2006 Hammer drilled 7 ~/8" hole from 1120 ft to 1800 ft. Formation severely fractured. Survey at 1500 ft = 4.0°. Water influx rate = 7 gpm. July 21, 2006 Hammer drilled 7 ~/8" hole from 1800 ft to 2300 ft. Survey at 2000 ft = 4.2°. Water influx rate increased to ~ 25 gpm. July 22, 2006 Hammer drilled 7 ~/8" hole from 2300 ft to 2730 ft. Survey at 2500 ft = 4.5°, Water influx rate increased to 40 gpm at 2720 ft. Formation severely fractured. • • July 23, 2006 Hammer drilled 7 ~/8" hole from 2730 ft to 3083 ft. Survey at 3000 ft = 4.2°. Water influx rate through drilled interval averaged 40-45 gpm. July 24, 2006 Hammer drilled 7 ~/8" hole from 3083 ft to 3465 ft. No change in water influx rate. Formation severly fractured. July 25, 2006 Hammer drilled 7 ~/s" hole from 3465 ft to TD at 3502 ft M.D. Survey at 3500 ft = 4.0°. Water influx rate at TD = 45 gpm. TD reached at 1100 hrs, July 25, 2006. POOH, repaired rotary table on trip out. Rigged-up loggers, and discovered internal damage to logging equipment due to seawater spray during barge voyage. Replacement equipment ordered from Kenai. Waited on arrival of replacement equipment. July 26, 2006 Waiting on arrival of replacement logging computer and other equipment. Weather down at Red Dog. Finally received logging equipment at 1900 hrs this date. Installed same and worked on bugs. July 27, 2006 RIH with logging tools at 0500 hrs this date. Hit bridge at 2000 ft. Geologists advise this in the area of a thrust zone between the Kivalina and Ikalukrock formations. Aborted logging run, and RIH with drill pipe. Rigged up BJ and circulated drill pipe to TD. Pulled drill pipe to 2510 ft, and rigged up loggers. RIH through drill pipe with gamma ray and sonic waveform. Sonic tool failed at 3433 ft. POOH with logging tools. RIH with compensated density/neutron tool, and logged from 3433 ft to 2510 ft. Accumulated fill at bottom of hole precluded getting any deeper. Pulled out of hole with tools and pulled drill pipe up 160 ft. Resumed logging attempt, but tools would not exit drillpipe. Hole conditions deterating rapidly. July 28, 2006 Rigged up BJ to attempt to pump through drillpipe. No luck.. POOH with drillpipe and found pipe plugged with large rock and rock fragments. Made final logging attempt in openhole above problem zone. Hole logged successfully 2008 ft to 695 ft. Elected to run 5 1/z" casing due to deteriorating hole conditions. Red Dog communications to town out • • of order. RIH with casing to 2252 ft and hit hard bridge. Rigged up BJ to try to circulate casing, but unable to get casing any deeper. July 29, 2006 Made on-site decision to POOH with casing. Red Dog communications with town still down. RIH with BHA and tricone (no jets) to clear bridge. Hit new bridge at 1980 ft. cleaned out bridges to 2400 ft. Hole in very poor condition. Elected to set cement plug through problem zone. Set 123 sx Type I cement plug at 2400 ft. Unable to move drillpipe after setting plug. Acts suspiciously like pipe. cemented in hole. Waited on orders. July 30, 2006 Elected to explosively sever drillpipe above BHA. Red Dog communications restored this date. Ran sinkers bar on wireline down drillpipe to confirm that shot would go. Waited on availability of blaster. July 31, 2006 RIH hole with drillpipe severing charge to 2013 ft and successfully detonated charge. POOH with drillpipe. Top of fish at 2013 ft.. Set 50 sx Type I cement plug (161 ft in 8" hole) on top of fish. Pulled drillpipe dry. WOC 8 hrs. RIH with wireline and confirmed top of plug at 1850 ft. ' Rigged down and started move to NB-041ocation. Well NB-03 to be sidetracked in 2007 season. Well suspended as of 2100 hrs July 31, 2006 Log sheet for Gas ~pCoration Program drilCeutti7tgs North Baaln Walla -Summer 2008 Drllang contraetor: Major Drilling AmeHea, Ina. Well No.: NB-g3 a ® ~~~ Paea of !]~iRTrd Sample Interval oi We prim t Co ary N lor tholo y~ P tak ercen en b t of s y "wh prea itd' d are mate a rial P take a ercen n by t Isas t of s paRl t two prea cles dire d are >1 c ction a m In s Pre s domin hape o artkle ant f a Dtmenslons of taryeat particle cm 10 96 HC d I aci ark m d fizz ateri test al on 10% HCI teat on mat geld fizz "white" erial Py pres rke ent? Comments et below auHaca ~ I ~ ~ ' O1 ~ ~ ~ O ~ ep ~ ~ ~ ~ N ~ ~ O ~ h . ~ ~ N rr3Q~ A (,3$Q~L m- ~ ~3 S lL ~ m L X W X H c ~~ ~ 3 ~ E ~~ ~ ~^ ~~ ~ ~ ,. ~E ; :45~ Lt awl k g6 ~ any erenaceous material? large particles ropresenl gouge or rubble? whNe-metedal miheral9 dry cobr7 calcareous or non-eeleareoue7 final deacrl .7 fm/uniVmembsr nema7 other? p k 106-126 X X X X X 3.8X2 X > > > X 8 X CALCAREOUS. SHALE 128-142 X X X X SM S/L 2.8Xt.b x > X X M CALCAREOUS SHALE 142-162 X X X X x X 2.28X1 x > X X 9 CALCAREOUS SHALE 162-182 X X X X X S+X1.8 X > > x x S X WEAK CALCAREOUS SHALE 182-202 X X X X X 2.8X1.78 x > X x S X CALCAREOUS SHALE 202-222 X X X X 8/L x 2.8X2 X x M X NON-CALCAREOUS SHALE 222-242 X X X X x X 2X1.8 x > > > > X x W CALCAREOUS SHALE 242-262 X X X X X 2.8X1.8 X > x x M X CALCAREOU8 SHALE 282-282 X X X X X 2X1.5 x X X W X CALCAREOUS SHALE 282-302 X X X X X 2.8X1.6 x > X S CALCAREOUS SHALE 302-322 X X X X X FIB 4X1.6 X > 9 > > X X M X CALCAREOUS SHALE; LO PIECE NON•CALC 322-342 X X X X X 2.8X1.8 x > > > X x M X CALCAREOUS SHALE 342-362 X X X X X 2.8X1.8 X > > > x x M WEAK CALCAREOU&SHALE 362-382 X X X X X 1.76X1.28 X x W X CALCAREOUSSHALE(MtNORREDntIN.i 382-402 X X X X X 1X1 X > X X W X NON-CALCAREOUS SHALE; aLACK WHEN DRY 402-422 X X X X X 3.8X1.8 X X X M NON-CALCAREOUS 8HAlE; BLACK WHEN DRY 422-442 X X X X X 2X1.8 X > > X X M NON-CALCAREOUS 8HALE; BLACK WHEN DRY 442-462 X X X X LO X 1.25X7 x > X x W X WEAK CALCAREOUS SHALE 462-482 X X X X X 1.28X1 x > x M X CALCAREOUS SHALE 482-502 X X X X X 1X1 X > > > x X M V. WEAK CALCAREOUS SHALE Gog skeet for Gas ~ploratwn Program ~l7ill'cuttings , North Baalrt Wells -Summer 2008 Drilling contractor: MsJor DNlling America, Inc. XC!llkg Well No.: NB-OS ® 0 ~~~ Paae of .918.cka Sample Interval of We prim t Co ary Ii br tholo y) P tak ercen en b t of s y "wh prea ite" d are mate a ral P take a erce n by t leas nt of s parti t two prea cles dlre d are >1 c cUon a m In s Pre s domin hape article ant of s Dlmensbns of largest particle cm 10 % HC d I aci ark m tl flu ateri test al on 10% HCI teat on mat acid fizz "white" srtal Py Pros rks ent? Comments (feet bebw surface) ~ ~~„ ~ gg O ~ g Y V ~ O ~ ~ ~ ~ ~ ~ N ~ X O ~ ~ ~ ~ ~ ~ N ~bTQi A_ C F'~ :gR 9 li d L X W X H c ~~ QNC Z ~ ~ 3 ~~ E ~~ ~ '$Q 2 ~ i?' rq '~ ~ w -'E' ~ ~ ~ arty arenaceous materiel? large panicba reprosent gouge or rubbte7 whko-materiel mineral? dry color? caieareous or non-ealcaroous7 anal descrip.? fm/uniUmember name? other? 502-522 X X X X X 1.28X1 x > > > X x S WEAK CALCAREOUS SHALE 522-542 X X X X X 2.26X1.6 x > > > X x S WEAK CALCAREOUS SHALE 542-562 X X X X X 1.76X1 x > > > X M X CALCAREOUS SHALE 562-582 X X X X X 3X1.76 x X M X WEAK CALCAREOUS SHALE 582-602 X X X X X X S.6X2X1.8 X > > x x S X NON-CALCAREOUS SHALE 602-622 X X X X x X SX7.6X.78 x > > > X x 3 CAiCARE0U3 SHALE 622-642 X X X X X 3.26X2.26X7.5 X > > > X x 8 X WEAK CALCAREOUS SHALE 642-662. X X X X X 2.76X2.6X1 X > > x X S X NON-CALCAREOUS SHALE; L,AROE$T PIECE VEINED WITH CALCITE 682-682 X X X X SM X 1.8X1 X > > > x M NON TO WEAK CALCAREOUS 8HALE 682-702 X X X X X F 1.26X.76 X > X x S X NON TO WEAK CALCAREOUS SHALE 702-723 X X X X X X 1.76X1.28 X S X NON-CALCAREOUS SHALE 723-743 X X X X SM X 2X1 X > > 9 X $ CALCAREOUS 8HALE; MED GRAY WHEN DRY; V. MUDDY WIFINE8 IN aA0 743-763 X X X X X 2.26X2.26 X X $ CALCAREOUa 8HALE; MED ORAV WHEN ORV; V. MUDDY VNFINEB IN BAO 783-783 X X X X X 1.6X1 X > > x x M WEAK CALCAREOUS SHALE 783-803 X X X X X B 1.8X1.26 x > > a X S CALCAREOUS SHALE 803-823 X X X X SM 1X1 x > > X X S CALCAREOUS SHALE 823-843 X X ee% X SM 1X1 X x x 8 NON-CALCAREOUS 8HALE 843-863 X X X X X 2.28X.76X.6 x > > > X x M CALCAREOUS SHALE 863-883 X X X X X 2.26X1.6 x > > > X M CALCAREOUS SHALE 883-903 X X X X SM X 2.28X7.26X.76 X > > x X M WEAK CALCAREOUS SHALE Gog sheet for Gas ~pCofl2tum Program [ff7tQ cuttings , North Basin Wells - Summer 2006 OrIIIMg contractor: NMJor Drlllinp Amanca, Inc. k~~ . Well No.: NB-03 ca o ^~~ I~ ~ ~~3 Sample Interval of We prim t Co ary Ik br holo y) P tak ercen en b t of s y "wh prea ite" d are mate a rial P take a ercen n by t leas t of s parti t two prea cles dire d are >1 c ction a m in s Pre s domin hape article ant of s Dimensions oT largest particle cm TO % HC d I aci ark m d fizz alari test al on 10% HCI test on mat acid fizz "white" erial Py pres rke ent? Comments feet below surface I I SSyr~ m ~ ' ~ ~ ~ ' O1 .~ ~ ~ O ~ tl) R ~ ~ O ~ N ~ A ~ O ~ X ~ ~ O S N ~ A 'II m ~ ~ LL Ii ~ d ~ ss W L X W X H e ~~ ~ 3 „ -~ ~ E gat ~ ~ S' " ° ~ w ~ ~, g N any aronacooua matenal7 large panicles reprosent gouge or rubble? white-material mineral? dry eolor9 eakarooua or non•celcareous? final desulp9 Rn/unitlmember name? other? 903-923 X X X X X 2X1 x > > X X S CALCAREOUS SHALE 923-943 X X X X x X 2X1.6 X x W CALCAREOUS SHALE 943-983 X X X X x X 1.76X1.26 x > > X X M WEAK CALCAREOUS SHALE 983-993 X X X X X 1X.87 X > > X X M WEAK CALCAREOUS SHALE; BLACK WHEN DRV 983-1003 X X X X X 1.6X1 X X M CALCAREOU88HALE; BLACK WHEN DRV 1003-1023 X X X X LG X 1X1 x > > > X x M CALCAREOUS SHALE 1023.1043 X X X X X .76X.87 X M NON-CALCAREOUS SHALE 1043-1063 X X X X X 1.76X1 X M CALCAREOUS SHALE 1063-1083 X X X X LG X 1.33X1.35 X > > X M WEAK CALCAREOUS SHALE 1083-1103 X X X X S/L SM 1.6X1 X > X x M WEAK CALCAREOUS SHALE 1103-1123 X X X X x X 3X1.6 x > > X x W X CALCAREOU88HALE 1123-1143 X X X X X 1X1 X > X X W X WEAK CALCAREOUS SHALE 1143-1183 X X X X X 2.28X1 X > X x M WEAK CALCAREOUS SHALE 1183-1183 X X X X SM X 2.6X1 X > x x M NON-CALCAREOU8 8HALE 1183-1203 X X X X F 1.6X1.6 X X W NON-CALCAREOUS SHALE 1203-1223 X X X X X X 1.76X1.6 X $ CALCAREOUS SHALE; DARK OKAY WHEN DRY 1223-1243 X X X X LG X 2.6X1.6 x > > X M X CALCAREOUS SHALE 1243-1283 X X X X X 2.6X1 X x M NON-CALCAREOUS SHALE 1263-1293 X X X X X 1.75X1.76 x X z M CALCAREOUS SHALE 1283-1303 X X X X LG X 2X1.33 X > X x M WEAK CALCAREOUS SHALE ~ m N N 0 N N N N N A A A A w w w w w 7 Of A N O m W A N fJ O ao ~f A N O aD N A N O o W W W W w W W W W fJ W W W W W W W W W W £ V O O aD m 01 W A W N 0) O N W N N N A N N N O A aD A On A A A N A O W eD w 01 W A W N ~ ~ w w w w w w w w w w w w w w w w w w w w o 2 °- x x X X X X X K X X X X X X X X X X X X Blanc p x X X X X X x X X X X x X X X X X X x X Grayish Beek 13 ~ ^- ~ ~ Dark Gmy ~ n e O Med gray o 0 other ~ X X X X X x X X X X X 0-5% ~ x o m X X x X -1(Y96 ~ ~ '~ . . x 11-15% £ ~ S p X X X 16 - 2(1% m a ~ x 1 - aox, r :a '~ m . - X X X X X X X X x X X X X X X X x X X X -5% s .p. m o -111% w ` a o d ~_ 1A 11-15% . . . C ~ M i6-20% n ~ ~ a 1-ao% a o~m a 3 '~ 3 X X x X x x X 3 Blocks (smug) s a m ~ X X ; 3 X ~ ~ X X x X X X X X X X 3 X =Flats (sMlg) ~ m 3 a ~ s T m m Ebngate (F7B) ~ T am O X ~ ® a X X N a .NXi k ~ ~ N K ~ ~ a ~ N ~ , K ~ W ~i ~ ~ ~ r X ~ C W 3~ n a V x N M X Cr N a J ~ a ~ X T a X N to X 2 Y' '1 R v ~ ® O x X X x x X x X x >K =n P W k v v v v v v x v v v . ea x m n X x X X X X x x x x x v v v x v =w ~'~ da x x x x x x v v v x oaerate = m m p x v x Mod. Strong w X X X X Strong = s 0 = x X x X X X X x x K x x x x x x Non~reaclrve e $ °~ m n j ~ Y m ~~ 3 ?s ~ ~ ~ 3 3 3 3 $ to 3 to w ~ ; ; ~ 3 ~ Reactive (w/mis) - $ y :~ X X X irrot w ~ m Sgruficant „3. o v O •rL ~ ~ z z m m c `~ ~ 1 p ~ n ~c D ~c ~ •1 z z z m ~+ 'H z z ~ ~ ° ~ m O V ~ ~ D ° ° x x ~ a Z Z Z a a ~ a Z a g ~ a o-°° r 3 S ° ° ~" r ° n s ~ n a r n r ° x r a ii a r ° i7 a x r ° -+ '" ~, 3 D v D ~ ~ 7C D r r r D D !^ D r D r > D ~ ~~_ 3 n m D D D D D m D D D m rail a m D m D ~ m a~~ m 3 +~ D O r r ~ ~ r O m m ~ O O = O m O m a O ~ g •+ 3 r c ~ n n m m n c ~ 0 0 n o c c ,~ c o c ~ o ~ c rA m;°~ ° D (A a A a .~ o C pp C a 7a tl1 C C C rA ~ w ~ ~ p ca ~ C , ~ C O W ym®~ Si A m x D m O m O tlr N O x D W m m rA N w x D x A ~ < Y D to rA x D to ~ C ra x D ~ 3 3 O r c c w x m x c r x x x r r g r x r' x m r m o A. c m w w D y m ^' r ~ ~ m m m m r m r x m S m y y _ _ s m m = m m m c m m ~ °z-'°o D r ~ ~ < m '°S~ " m m m m - o a=- h m° z v, o to `''' w o~ S `t o m 3 o A o R tY. h a 3 } Gog sheet for Gas E~ptoratEOn Program dfiCl'cuttiftgs . North Basln Wells -Summer 2008 Drllling eoMractor: Ma)or Drilling Amerlea, Inc. kCl~~ . Well No.: NB-D3 © [~ ~'~ Pase m A6TS,ta Sample Interval of We prim t Co ary Ii lor tholo y) P tak ercen en b t of s y "wh prea ke" d are mate a rial P take a ercen n by t leas t of s parti t two prea cles dire d are >7 c ction a m In s Pre s domin hape article ant of s Dimensions of largest particle cm 10 ^/o HC d I aci ark m tl fizz atert test al on 10% HCI test on mat acid fizz "white" eNal Py Pres rlle ent4 Comments feet beWw surtece 1 3 S ~ ,m~ B ~' ,~ '~ * E ~ o ~ ~ ~ ~ ~ ~ N ~ N ~ ~ ~ ~ ~ II(( m ~ ~ W L X W X H c n ~a! Z 3 ,l E lu ~ ~ "' ~~ ~ 't 3 ~ ~ f/1 any arenaceoua meterial7 large partklea represent gouge or rubble? whtte-materiel minerel4 dry color? cakarooua or norrcakareous7 final descnp.9 fm/uniUmember name? other? 1703-1723 X X X X X x 2X1.8X.6 X x x S WEAK CALCAREOUS SHALE 1723-1743 X X X X X f 1.5X1.6 x X x M X CALCAREOUS SHALE 1743-1763 X X X X X 2X1 X X X WEAK TO MED CALCAREOUS SHALE 1763-1783 X X X X x X 2.5X1.26 X > X x S WEAK TO MED CALCAREOUS SHALE 1783-1803 NO SAMPLE 1803-1823 X X X X SM 1.8X1.67 X > X X M NON TO V. WEAK CALCAREOUS SHALE 1623-1843 X X X X X 2.25X1.6 x > X x M X CALCAREOUS 8HALE 1643-1883 X X X X X 1.76X1.5 X M CALCAREOUS SHALE; LS? 1863-1883 X X X X X 2.26X2 X X M CALCAREOUS SHALE 1883-1903 X X X X X 2X1.33 X M CALCAREOUS SHALE 1903-1923 X X X X X X 1.75X1.75X1 X X S WEAK CALCAREOUS SHALE 1923-1943 X X X X X 1.87X.76 X > X X M X NON-CALCAREOUS SHALE 1943-1963 X X X X X 1.5X1.6 X > x X M NON•CALCAREOUS SHALE 1983-1983 X X X X X 1.8X1,88 X X M WEAK CALCAREOUS SHALE 1983-2003 X X X X X X 2.8X1.8 X X M WEAK CALCAREOUS 8HALE 2003-2023 X X X X SM x 1.5X1.88 X > X X M X WEAK CALCAREOUS SHALE 2023-2043 X X X X SM x 2X1X.76 X X X FROM H6Re ON GOWN OET WNITa FARTICLe Fla ONLY WNeN wHITa Y. INORaasF.B SIONM. 2043-2063 X X X X SM x 2X1.5X.67 X X X NON-CALCAREOUS SHALE 2063-2083 X X X X SM x 2.3SX1.33X1 X X X NON•CALCAREOUS 8HALE; LRO "BRECCIATED" PIECE 2083-2103 X X X X SM x 1.57X1.3SX.76 X X X NON-CALCAREOUS SHALE Log sheet for has ~pComtzon Program driQ'euttings , North Basin Wells • Hummer 2006 DHlling contractor: MaJor DNlling America, Inc. Well No.: NB-o9 © ~ ~~ aape °t IJGxcka l Sample Interval oP We prtm t Co ary Il lor tholo y) P tak ercen en b t of y "wh sprea ite" d are mate a rial P take o ercen n by f Isas t of s partl t two prea clea dire d are >7 c ction a m In s Pre s domin hape article anf of s Dimensions of largest particle cm 10 % HC d I aci ark m d flu ateH teat al on 10Yo HCI .test on mat acid flu "white" erial Py Pros rke ent7 Comments (feet below surtaee) " ,~ a ~ ~ ~ ~ ~ a ~ N ee "' m = ~ ~ ~ ~ ~ ~ m ~ ~ CEq v ~ gyp" V ~ ~, ~ L X W X H c n ~ K $ 3 ^ '~ E m ~ ~ ~~ ~, ~ ~ y ~ ~ ~ y any arenaeeous mateHal? large paHiclea ropresent gouge or rubble? white-mateHal mineral? dry color? calcareous ornon-calcareous? Bnal deserlp.7 fmlunWmember name? other? 2103-2123 X X X X SM x 2.Z6X1.25X.67 X X X NON-CALCAREOUS SHALE 2123-2143 X X X X SM x 1.6X1 X X X NON•CALCAREOUS SHALE 2143-2163 X X X X SM x 2X1.5 X X X NON-CALCAREOUS SHALE 2163-2183 X X X X SM x 1.5X7.33X.87 X X X BLACK WHEN DRY 2183-2203 X X X X X x 2X1.5X1.5 X X X NON•CALCAREOUS SHALE 2203-2223 X X X X SM x 1.57X1.bX.87 X X X BLACK WHEN DRY 2223-2243 X X X X X 1.25X1X.6 X X X NON•CALCAREOUS SHALE 2243-2263 X X X X SM x 2.25X1.75X1 X X X NON-CALCAREOUS SHALE 2263-2283 X X X X SM x 1X.75 X X X NON•CALCAREOUS SHALE 2283-2303 X X X X 8M x 1.5X1X.8 X X X NON•CALCAREOUS SHALE 2303-2323 X X X X SM x 1X1 X X X NON-CALCAREOUS SHALE 2323-2343 X X X X SM x 1.5X1.99X.75 X X X NON-CALCAREOUS SHALE 2343-2383 X X X X SM x 3.S3X2.25X7 X X X NON-CALCAREOUS SHALE; V. L4ROE PIECE OF RUBBLE 2363-2383 X X X X SM x 2X7.5X1.99 X X X NON•CALCAREOU9 9HALE 2383-2403 X X X X SM x 1.26X1 X X X NON•CALCAREOUS SHALE 2403-2423 X X X X X 2X1.25 X X X NON•CALCAREOUS SHALE 2423-2443 X X X X X 2X1.6X7 X X X NON-CALCAREOU8 SHALE 2443-2463 X X X X SM x zxtzt; zxt.sxs X X X NON-CALCAREOUS SHALE 2463-2483 X X X X SM X 2.87X7.e7X1.33; 3%2X1.6 X X X NON-0ALCAREOUa aFULE, SaVOrAL LARGE PIECES OF RUBLLE f2 ANGULAR OTZ PaiCEa) 2483-2503 X X X X SM x 1.87X7.26X.6 X X X NON-GALCAREOUS SHALE ~' N W W N aD O/ N CD A N aD N N m O N V OD N V 41 N N V V P N N V O N O) aD N O1 d) N W A N Of N N O1 O N tli m N N d7 N N P N N N N N O 3 °~ ° ~ N N N N N N N N gJ N W N W N W W N N W N W N W N W N W N W N W N W N W N W N W N £ m ~ O O N QD aD N O) O1 N DD P N O) N N m O IW V aD W V V 01 A W W V N W V O W 01 W W O) Ol W ~ A W O) N W O/ O W N OD W N W W N P W w N W ~ Z m X X X X X X X X X x X X X X X X x X X X `p X X X X X X X X X X X X X X X X X X X X rayish Blaek C 3 m m Dark Gray Z n .o S Med gray o 0 ~. X X X X X X X X X X X X x X X X X X X X 0-5% ~ ~ 9 -10% p ~ 'C w 11 - 15% ~ y 16-20% ~, m m 4 1 - 30% „m~ m >30% m °i X X X x X X X X X X X -5% m ° O x x x -10% ~m' ° s o m ~~ X x x x 11-15% ~ o ~ 16-20% n m a m o x x 1- 30% n v a c a m u B m ~~ 3 ~, 3 ~, 3 ~, 3 rb w ~, ~, ~, w rA w ~, w ~, ~t~~ (erg) 3 3 $ 3 3 3 3 3 3 3 3 m a x x x x x x x x x x x 3 x ~ x ; ~. x 3 3 F=Flats (slnllg) m s a e o 3 m a o Elongate (F1B) . s ~ _ m N N N r P N 7 x ~ X ~ r °i W r ~ K a ~ ® a X x X K Y X X n o as ~ w ~ x ~. X ~„ x K x X ~ x ~ '~.+ x ~ ~ x X 3 °m a ~ a x ~ a v a w X a ~ rn ~ 2 ~ m m ~ X X X x X X X X X X x x X X X x X X X X Nate = n ' o e Weak 2 m 1? ~=M' ~ n m a Moderate = m y ~ q m Mod. SUOn9 ro 0 Stmng = s 3 X X X X X X X X x x X x X X X X x X X x NorfreaUive 'o ,m., ~ ~ p Z 7 n m ~ ~ r _f m eactive (w/MS) . 6 ~ ~ :~ X X X x X X X X X X X X X X X X x X x X Nla 9 N ~ m nificant w O N ~ 2 ~ m z o Z ~ ~° ° 2 ~ ~ z ~ 2 2 2 Z Z Z 2 Z Z n D 2 Z Z 2 D Z 2 m ° 0~ m O y 5 O a O z O z o z O O o z O z O z t' ~ O z O z O z O z m O z O z ~`° ~®Q8 ~ p p v C1 n C1 !~) z f7 z A n f7 n p Cl lt/ Cl C7 ° f7 l'1 ~ ° ° c ° m D D D D D D D D D m D D D D c y° D D ~~~3 ° a f xm ~ m r A D r n s r A a r A a r A a r CS a r A a r A a r A a p C r A r ~ r Cf r A o a cx r A r A ~ ~ 3'00 t7 0 .'O m ~~ m m o m ~ 11111 ~ A m .~ m A m A m .~ m A m ~ m A m ~ N ~ m ~ m A m ~ m °m m o ~ m A m u- 3 m-i ~°- 33 O _ m 5 m O O O O O O O O O = D O O O O v m rn ~ O O ° °° ~. ~' ~ 3 3 C M m ~i 5 C rA C fA C N C to C to C to C W C d/ C w r C to C f/1 ~ w C (a n m ^' C ~ C N c ?~ n ~ .°~ ~ v ~ w m ° m w w m m a ra w w a m m w m m A w w oa3® ~ D ~ T x D x D x D s D x D x D x D x D x D m p x D x D x D s D o ~ x D x D ~ A ° °-° ° o = r m y m ~ r m r m r m r m r m r m r m r m r m v m r m r m r m r m z o r m {il ~oy° ° a a ~ a y Fr Cl ~ ~ ?°4 ° ~ ~ ~ S m O h ~a° z ~, 0 m `"'' m ph S `e o m C 1~ 3 ® A N ~' O ~• ~ e~ Q h 3 r as ~• ti~' 9 Gog sheet for Gas ~pCoration ~Frogram cf7ill"cuttings , North Basln Wells -Summer 2006 Drllling comrector: MaJor Dglling AmeNea, Inc. Xcd llvg Well No.: NB-03 ® 08 Ali~C Pape of .~li7.Sj'd 1 r Sample Interval of ~ We rim p t Co e Il ry lor tholo y- P tak ercen en b t of y "wh sprea ite" d are mate a rial P take a erce n by t leas nt of part t two sprea icles dire d are >1 c ction a m in s Pre s domin hape article ant of s Dimensions of largest particle cm 10 % HC d I aci ark m d flu ater test al on 10% HCI test on mat acid flu "vrhlte" erial Py pres rRe ent? Comments (teat below surface) $~ C1 ~ 'E' 0 g a ~ ~ ~ ~ ~ ~ ~ m ~ ~ ~ n ~ ~ ~ ~ b N '~ ~ba "~ ~ ~ LL ~ k~ ¢~ w L X W X H c ~yS~~ Z ; „ E ~~ ~ ~ ~ a ,~$qrr N ~ ,~ ~' ~ ~ N any eronaeeous material? large partklea represent gouge or rubble? whge•materlal minerall dry color? eakareoua or non-ealeareoua7 flnel deserlp.9 fmluniVmember name? other? 2902-2922 X X X X SM x 2.87X2X.76 X X X NON-CALCAREOUS SHALE 2922-2942 X X X X SM x 2.76X2X.76 X X X NON-CALCAREOUS SHALE 2942-2982 X X X X SM x 2X1X7.8 X X X NON-CALCAREOUS SHALE 2962-2982 X X X X SM x 1.6X1.26 X X X NON•CALCAREOUS SHALE 2982-3002 X X X X SM x 2.6X7.78X1 X X X NON-CALCAREOUS SHALE 3002-3022 X X X X 8M x 2.93X7.33X1 X X X NON-CALCAREOUS SHALE 3022-3042 X X X X SM x 2X2X1 X X X NON-CALCAREOUS SHALE 3042-3062 X X X X $M x 2.S3X1.6X7 X X X NON•CALCAREOUS SHALE 3082-3082 X X X X 9M x 2.33X2X1 X X X NON•CALCAREOUS SHALE 3082-3102 X X X X 8M x 1.26X1 X X X NON-CALCAREOUS SHALE 3102-3122 X X X X SM x 2.SSX1.87X7.93 X X X NON•CALCAREOUB SHALE 3122-3142 X X X X SM x 2.8X1.8X7.6 X X X NON-CALCAREOUS SHALE 3142-3162 X X X X SM x 1X1X1 X X X NON-CALCAREOUS SHALE 3182-3182 X X X X SM x 1.6X1.6X.87 X X X NON-CALCAREOUS SHALE 3182-3202 X X X X SM x 7.6X1 X X X NON-CALCAREOUS SHALE 3202-3222 X X X X SM x 1.67X1X7 X X X NON•CALCAREOUS SHALE 3222-3242 X X X X SM x 1.87X1 X X X NON-CALCAREOUS SHALE 3242-3262 X X X X SM x 1.8X1.6X7.87 X X X NON-GLLCAREOUB aHALE; BRECCIATED PIECE? 3282-3282 X X X X 8M x 1X.87 X X X NON-CALCAREOUS SHALE 3282-3302 X X X X SM x 2X1.8X1 X X X NON-CALCAREOUS SHALE Gog sheet for Gas ~pCoration Program driacuttiregs , North Basin Wells • Summer 2008 DNlling contractor: MaJor Dvllling Amedea, Ina. IYC(ILiPg Well No.: NB•o3 08 o M~ Pie m AJxsI'a Semple Interval 01 We prim t Co ary Ii lor tholo y) P tak ercen en b t of y "wh sprea ite" d are mate a rial P take a ercen n by t leas t of parti t two sprea cles dire d are >1 c ction a m In s Pre s domin hape article ant of s Dimensions of largest particle cm 10 % HC d I aci ark m d fizz ateri teat al on 10% HCI test on mal acid flu "white" arial Py pres rite eM7 Commonts (feet below surface) '~ ~ ~ .E ~ .~ ~ ~ ~ ~ ~ ~ ~ A ~ e a ~ z~R N zap m ~ ~ Y3 ~ LL ~ ~ ~ L X W X H c ~ ; o E ~~ or 'f $ ~ w 1~ ~ ~ Z ~ ; K ~ any arenacaous matedal7 large padlcbe represent gouge or rubble? white-materiel mineral? dry voYOr7 calcareous or non-cekareous7 final descr .7 fmlunif/membar name? other? ~ 3302-3322 X X X X SM x 2.78X2.BX1 X X X NON-CALCAREOU8 SNALE 3322-3342 X X X X SM x 1.87X1.BX.76 X X X NON•CALCAREOU8 SHALE 3342-3362 X X X X SM x 1.78X1.28X.87 X X X NON•CALCAREOUSSHALE 3382-3382 X X X X SM x 1.BX1.28X.87 X X X NON-CALCAREOUS SHALE; ODD LARGE PIECE PEPPERED 012 3382-3402 X X X X SM x 2X2X1 X X X NON•CALCAREOUS SHALE 3402-3422 X X X X SM x 2.BX1.78X1 X X X NON•CALCAREOU8 SHALE; PIECES FROM BRECCIATED 20NE7 3422-3442 X X X X SM x 3.67X3X1.8 X X X NONCALCAREOUB 8HALE; V. LARGE PIECE (FALI9ACK7) 3442-3462 X X X X SM x 2XSX1 X X X NOOFCALCAR~UB aHALF PIEC fi FRDM aR[CCIA7eD ZDN64 soaeaRUUCeowPleeesa 3462-3482 X X X X SM x 2.87X2X1 X X X NINI•CALCAREOUS SHALE; SOME ARENACEOUS LARGE PIECES 3482-3502 X X X X SM x S.BX2.28X7 X X X NON•CALCAREOUB SHALE Re: Teck Cominco Well Status • • Subject: Re: TeckComineo Well Stah~s From: Thomas Maunder <tom_maunder@admin.state.ak.us> Date: Fri, 17 Nov 2006 08:11:38. -0900 'Tv: C3ot~G~~rdnur~~~~-huh~ufair~~calhcr.eom=~ Bob, I am sorry I didn't get back to you sooner. I understand that the first two wells are SI as you note, but was anything done on NB-O1 or -02 during this past warm season? I saw an article in Petroleum News with some photos including gas burning out of a line. Was all that at Red Dog? On NB-03 if you did any drilling operations then a report should be filed. Based on the description you included below, it would appear that the well is suspended. Suspension is like abandonment, it takes a sundry but we are way after the fact for that. In the cover letter you should include a discussion of what operations were done on the well and the determination to set cement for the planned sidetrack. Call or message with any questions. Tom Maunder, PE AOGCC Bob Gardner wrote, On 11/8/2006 8:55 AM: Tom: Bill Penrose forwarded me your inquiry re the status of various Teck Cominco wells. Here is a summary of where they all stand: NB-O1 and NB-02: Still shut-in, awaiting completion of surface facilities for long tem de-watering and production testing. NB-03: 150 ft cement plug on top of severed drill pipe at 2013 ft. Awaiting return of drilling rig next season for sidetrack. 8 5/8" surface casing at 695 ft. Well bore freeze protected-for the winter. NB-04: P & A, and Form 407 filed. Cuttings samples ready for delivery to AOGCC. NB-05: Not yet drilled. Planned for 2007 season. Give a call if you have any questions. Regards, Bob 1 of 1 12/14/2006 1:10 PM ~' ~ • -<<:. _. E ~ P SERVICES, LLB" August 9, 2006 Alaska Oil and Gas Conservation Commission 333 West 7~' Avenue, Suite 100 Anchorage, AK 99501 Re: Weekly Status Report Teck Cominco Alaska Incorporated `,,r~r =~~1 Well No. NB-03, P 206-0~~ .~~ ~~ lrs3~d~7 Gentlemen: FOR THE WEEK ENDING SATURDAY, AUGUST 5, 2006 Unable to move dp. Elected to sever dp above BHA. Waited on blaster. Explosively severed dp at 2013 ft, and POH with dp. Set 50 sx cement plug on top of fish at 2013 ft, top at 1850 ft. Tagged plug. Elected to move to NB-04 while developing sidetrack plans. Will sidetrack after NB-04. Well suspended on July 31, 2006. Sincerely, .. R. C. Gardner For Teck Cominco Alaska Incorporated 2000 East 88th Avenue • Anchorage, Alaska 99507 • (907) 258-3446 • (907) 279-5740 w~ • . E & P ~SERVIt~ES, LLC August 1, 2006 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 Re: Weekly Status Report Teck Cominco Alaska Incorporated `~~ Well No. NB-03, PXD 206-06~" %~/'~ ~" ~~ ~~ ~`~d~ Gentlemen: FOR THE WEEK ENDING SATURDAY, JULY 29, 2006 Hammer drilled 7 7/8"hole to TD @ 3502 ft. Formation highly fractured, with water influx rates up to 45 gpm. Rigged up for wireline logs, Discovered major saltwater damage to logging equipment (occurred on barge trip). Down 2 days waiting on arrival of replacement equipment. Replacement equipment arrived late July 26th. R1H to log, but could not get to bottom due to bridge at 2000 ft. Hole in very poor shape. Made c/o attempts, and finally started logging through dp. Sonic tool failed. Finally managed to get some hole sections logged through dp, but hole deteriorating rapidly. Attempted to run 5 1/2" casing, but no ga due to hole conditions. Pulled out of hole with casing. Attempted to set 123 sx cement plug at 2400 ft to stabilize problem section. Unable to move dp after setting plug-acts like cemented in. Sincerely, ----.. r R. C. Gardner For Teck Cominco Alaska Incorporated 2000 East 88th Avenue • Anchorage, Alaska 99507 • (907) 258-3446 • (907) 279-5740 • ~ • well History Teck Cominco Alaska Incorporated .Well No. NB-03 PTD No. 206-090 API No. 50-073-20004-00 Date July 16, 2006 Desch Completed conductor installation. Completed rig-up. Installed diverter July 17, 2006 Cleaned cement out of conductor. Spudded well at 1100hrs, July 17, 2006. Hammer drilled 121/a." hole to 522ft. Water influx at < 5 gpm. Survey at 500 ft = 2.1° July 18, 2006 Drilled surface hole 522-702 ft MD. Ran 8 s/8" surface casing to 695ft. Rigged up cementers and cemented surface casing with 435 sx Cold Set II. Good returns throughout job. Cement to surface. WOC 12 hrs. July 19, 2006 Nipple up wellhead, and re-install diverter. RIH with hammer drill and tagged cement at 670 ft. Cleaned out surface casing and drilled 7 ~/g" hole to 1120 ft. Survey at 100 ft = 2.3°. Water influx rate 5-7 gpm. July 20, 2006 Hammer drilled 7 ~/8" hole from 1120 ft to 1800 ft. Formation severely fractured. Survey at 1500 ft = 4.0°. Water influx rate = 7 gpm. July 21, 2006 Hammer drilled 7 ~/g" hole from 1800 ft to 2300 ft. Survey at 2000 ft = 4.2°. Water influx rate increased to ~ 25 gpm. July 22, 2006 Hammer drilled 7 ~/8" hole from 2300 ft to 2730 ft. Survey at 2500 ft = 4.5°, Water influx rate increased to 40 gpm at 2720 ft. Formation severely fractured. • • July 23, 2006 Hammer drilled 7 ~/8" hole from 2730 ft to 3083 ft. Survey at 3000 ft = 4.2°. Water influx rate through drilled interval averaged 40-45 gpm. July 24, 2006 Hammer drilled 7 ~/8" hole from 3083 ft to 3465 ft. No change in water influx rate. Formation severly fractured. July 25, 2006 Hammer drilled 7 ~/s" hole from 3465 ft to TD at 3502 ft M.D. Survey at 3500 ft = 4.0°. Water influx rate at TD = 45 gpm. TD reached at 1100 hrs, July 25, 2006. POOH, repaired rotary table on trip out. Rigged-up loggers, and discovered internal damage to logging equipment due to seawater spray during barge voyage. Replacement equipment ordered from Kenai. Waited on arrival of replacement equipment. July 26, 2006 Waiting on arrival of re lacement to P gging computer and other equipment. Weather down at Red Dog. Finally received logging equipment at 1900 hrs this date. Installed same and worked on bugs. July 27, 2006 RIH with logging tools at 0500 hrs this date. Hit bridge at 2000 ft. Geologists advise this in the area of a thrust zone between the Kivalina and Ikalukrock formations. Aborted logging run, and RIH with drill pipe. Rigged up BJ and circulated drill pipe to TD. Pulled drill pipe to 2510 ft, and rigged up loggers. RIH through drill pipe with gamma ray and sonic waveform. Sonic tool failed at 3433 ft. POOH with logging tools. RIH with compensated density/neutron tool, and logged from 3433 ft to 2510 ft. Accumulated fill at bottom of hole precluded getting any deeper. Pulled out of hole with tools and pulled drill pipe up 160 ft. Resumed logging attempt, but tools would not exit drillpipe. Hole conditions deterating rapidly. July 28, 2006 Rigged up BJ to attempt to pump through drill i e p p . No luck.. POOH with drillpipe and found pipe plugged with large rock and rock fragments. Made final logging attempt in openhole above problem zone. Hole logged successfully 2008 ft to 695 ft . Elected to run S'/s" casing due to deteriorating hole conditions. Red Dog communications to town out I~ r • of order. RIH with casing to 2252 ft and hit hard bridge. Rigged up BJ to try to circulate casing, but unable to get casing any deeper. July 29, 2006 Made on-site decision to POOH with casing. Red Dog communications with town still down. RIH with BHA and tricone (no jets) to clear bridge. Hit new bridge at 1980 ft. cleaned out bridges to 2400 ft. Hole in very poor condition. Elected to set cement plug through problem zone. Set 123 sx Type I cement plug at 2400 ft. Unable to move drillpipe after setting plug. Acts suspiciously like pipe. cemented in hole. Waited on orders. July 30, 2006 Elected to explosively sever drillpipe above BHA. Red Dog communications restored this date. Ran sinkers bar on wireline down drillpipe to confirm that shot would go. Waited on availability of blaster. July 31, 2006 RIH hole with drillpipe severing charge to 2013 ft and successfully detonated charge. POOH with drillpipe. Top of fish at 2013 ft.. Set 50 sx Type I cement plug (161 ft in 8" hole) on top of fish. Pulled drillpipe dry. WOC 8 hrs. RIH with wireline and confirmed top of plug at 1850 ft. Rigged down and started move to NB-041ocation. Well NB-03 to be sidetracked in 2007 season. Well suspended as of 2100 hrs July 31, 2006 • .-~-, F ~ P 5E'RVICE3, LLB" August 9, 2006 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 Re: Weekly Status Report Teck Cominco Alaska Incorporated ~~ Well No. NB-03, P 206-0~~ ~~ ®~ ~y .~~~ Gentlemen: ~! FOR THE WEEK ENDING SATURDAY, AUGUST 5, 2006 Unable to move dp. Elected to sever dp above BHA. Waited on blaster. Explosively severed dp at 2013 ft, and POH with dp. Set 50 sx cement plug on top of fish at 2013 ft, top at 1850 ft. Tagged plug. Elected to move to NB-04 while developing sidetrack plans. Will sidetrack after NB-04. Well suspended on July 31, 2006. Sincerely, ` _ - R. C. Gardner For Teck Cominco Alaska Incorporated 2000 East 88th Avenue • Anchorage, Alaska 99507 • (907) 258-3446 • (907) 279-5740 Well History Teck Cominco Alaska Incorporated Well No. NB-03 PTD No. 206-090 API No. 50-073-20004-00 Date July 16, 2006 Description Completed conductor installation. Completed rig-up. Installed diverter July 17, 2006 Cleaned cement out of conductor. Spudded well at 1100hrs, July 17, 2006. Hammer drilled 121/a" hole to 522ft. Water influx at < 5 gpm. Survey at 500 ft = 2.1 ° July 18, 2006 Drilled surface hole 522-702 ft 1VID. Ran g s/8" surface casing to 695ft. Rigged up cementers and cemented surface casing with 435 sx Cold Set II. Good returns throughout job. Cement to surface. WOC 12 hrs. July 19, 2006 Nipple up wellhead, and re-install diverter. RIH with hammer drill and tagged cement at 670 ft. Cleaned out surface casing and drilled 7 ~/S" hole to 1120 ft. Survey at 100 ft = 2.3°. Water influx rate 5-7 gpm. July 20, 2006 Hammer drilled 7 ~/8" hole from 1120 ft to 1800 ft. Formation severely fractured. Survey at 1500 ft = 4.0°. Water influx rate = 7 gpm. July 21, 2006 Hammer drilled 7 ~/8" hole from 1800 ft to 2300 ft. Survey at 2000 ft = 4.2°. Water influx rate increased to ~ 25 gpm. July 22, 2006 Hammer drilled 7 ~/g" hole from 2300 ft to 2730 ft. Survey at 2500 ft = 4.5°, Water influx rate increased to 40 gpm at 2720 ft. Formation severely fractured. ~~ July 23, 2006 Hammer drilled 7 ~/8" hole from 2730 ft to 3083 ft. Survey at 3000 ft = 4.2°. Water influx rate through drilled interval averaged 40-45 gpm. July 24, 2006 Hammer drilled 7 ~/8" hole from 3083 ft to 3465 ft. No change in water influx rate. Formation severly fractured. July 25, 2006 Hammer drilled 7 ~/8" hole from 3465 ft to TD at 3502 ft M.D. Survey at 3500 ft = 4.0°. Water influx rate at TD = 45 gpm. TD reached at 1100 hrs, July 25, 2006. POOH, repaired rotary table on trip out. Rigged-up loggers, and discovered internal damage to logging equipment due to seawater spray during barge voyage. Replacement equipment ordered from Kenai. Waited on arrival of replacement equipment. July 26, 2006 Waiting on arrival of replacement logging computer and other equipment. Weather down at Red Dog. Finally received logging equipment at 1900 hrs this date. Installed same and worked on bugs. July 27, 2006 RIH with logging tools at 0500 hrs this date. Hit bridge at 2000 ft. Geologists advise this in the area of a thrust zone between the Kivalina and Ikalukrock formations. Aborted logging run, and RIH with drill pipe. Rigged up BJ and circulated drill pipe to TD. Pulled drill pipe to 2510 ft, and rigged up loggers. RIH through drill pipe with gamma ray and sonic waveform. Sonic tool failed at 3433 ft. POOH with logging tools. RIH with compensated density/neutron tool, and logged from 3433 ft to 2510 ft. Accumulated fill at bottom of hole precluded getting any deeper. Pulled out of hole with tools and pulled drill pipe up 160 ft. Resumed logging attempt, but tools would not exit drillpipe. Hole conditions deterating rapidly. July 28, 2006 Rigged up BJ to attempt to pump through drillpipe . No luck.. POOH with drillpipe and found pipe plugged with large rock and rock fragments. Made final logging attempt in openhole above problem zone. Hole logged successfully 2008 ft to 695 ft. Elected to run 51/z" casing due to deteriorating hole conditions. Red Dog communications to town out • of order. RIH with casing to 2252 ft and hit hard bridge. Rigged up BJ to try to circulate casing, but unable to get casing any deeper. July 29, 2006 Made on-site decision to POOH with casing. Red Dog communications with town still down. RIH with BHA and tricone (no jets) to clear bridge. Hit new bridge at 1980 ft. cleaned out bridges to 2400 ft. Hole in very poor condition. Elected to set cement plug through problem zone. Set 123 sx Type I cement plug at 2400 ft. Unable to move drillpipe after setting plug. Acts suspiciously like pipe. cemented in hole. Waited on orders. July 30, 2006 Elected to explosively sever drillpipe above BHA. Red Dog communications restored this date. Ran sinkers bar on wireline down drillpipe to confirm that shot would go. Waited on availability of blaster. July 31, 2006 RIH hole with drillpipe severing charge to 2013 ft and successfully detonated charge. POOH with drillpipe. Top of fish at 2013 ft.. Set 50 sx Type I cement plug (161 ft in 8" hole) on top of fish. Pulled drillpipe dry. WOC 8 hrs. RIH with wireline and confirmed top of plug at 1850 ft. Rigged down and started move to NB-04 location. Well NB-03 to be sidetracked in 2007 season. Well suspended as of 2100 hrs July 31, 2006 F ~ P SERVI~'E,S, LLC August 1, 2006 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-03, PXD 206-06~' j2'/°~~'p`~~ ~' g~' o~ ``~`~l Gentlemen: FOR THE WEEK ENDING SATURDAY, JULY 29, 2006 Hammer drilled 7 7/8"hole to TD @ 3502 ft. Formation highly fractured, with water influx rates up to 45 gpm. Rigged up for wireline logs, Discovered major saltwater damage to logging equipment (occurred on barge trip). Down 2 days waiting on arrival of replacement equipment. Replacement equipment arrived late July 26~'. RIH to log, but could not get to bottom due to bridge at 2000 ft. Hole in very poor shape. Made c/o attempts, and finally started logging through dp. Sonic tool failed. Finally managed to get some hole sections logged through dp, but hole deteriorating rapidly. Attempted to run 5 %2" casing, but no go due to hole conditions. Pulled out of hole with casing. Attempted to set 123 sx cement plug at 2400 ft to stabilize problem section. Unable to move dp after setting plug-acts like cemented in. Sincerely, R. C. Gardner For Teck Cominco Alaska Incorporated 2000 East 88th Avenue • Anchorage, Alaska 99507 • (907) 258-3446 • (907) 279-5740 ~~~ J ~` ~! 2 ~ 2007 July 25, 2006 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-03, P~D 206-0 -}' B~'~~~ T ~~' ~~~~~ r~j~~0 ? Gentlemen: FOR THE WEEK ENDING SATURDAY, JULY 22, 2006 • ~las~ 0~~ ~a~s ~~~s, Oammissan Installed conductor. Completed rig-up, and installed diverter. Spudded well at 1100 hrs, July 17, 2006. Hammer drilled 121/4" hole to 702 ft. Ran 8 5/8" surface casing to 695 ft, and cemented to surface with Cold Set II cement. Hammer drilled 7 7/8" hole to 2730 ft through severely fractured formation„ and with water influx rates up to 40 gpm. Sincerely, ~` r R. C. Gardner For Teck Cominco Alaska Incorporated 2000 East 88th Avenue • Anchorage, Alaska 99507 • (907) 258-3446 • (907) 279-5740 >~^ ~ ~ ~~ ~ '~ ~ I , . ~ ~ ~ ~,'~~ ~ ~ ~ i„ ~ ~ FRANK H. MURKOWSKI, GOVERNOR a ~~~~ ~~~~++ ~r~ ~t~~ ~.7SA OII, A1~TD riA$ Y~, 333 W. T" AVENUE, SUITE 100 COI~TSF.RQA'1~IO1Q COD'Il~'IISSI011T 3., ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 R.C. Gardner FAx (9o7>27s-7542 Sr. Technical Advisor Teck Cominco Alaska Incorporated 3105 Lakeshore Dr. Bldg A, Ste 101 Anchorage, AK 99517 Re: Exploratory Well NB-03 Teck Cominco Alaska Incorporated Permit No: 206-090 Surface Location: 1655' FWL, 1855' FNL, SEC. 17, T31 N, R 18W, KRM Bottomhole Location: 1655' FWL, 1855' FNL, SEC. 17, T31N, R18W, KRM Dear Mr. Gardner: Enclosed 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 an approval 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 the application, reference is made to the waiver of four Commission requirements granted for the NB-Ol and NB-02 wells drilled in 2005. The waivers are applicable for NB-03. 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. The permit is approved subject to full compliance with 20 AAC 25.055. Approval to perforate, test and produce is contingent upon issuance of a conservation order approving a spacing exception. Teck Cominco Alaska Inc. assumes the liability of any protest to the spacing exception that may occur. Please note the following special condition of this permit: production or production testing of coal bed methane is not allowed for NB-03. .r Teck Cominco ~ ~ ~' NB-03 Permit No: 206-090 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. When providing notice for a representative of the Commission to witness any required test, contact the Commission's petroleum field inspector at (907) 6>S~"'~3607 (pager). Si K. DATED this day of July, 2006 cc: Department of Fish 8v Game, Habitat Section w/o encl. Department of Environmental Conservation w/ o encl. r E & P SERVICES, INC. June 14, 2006 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 200 Anchorage, AK 99501 Attention: John Norman, Chairman R~~~IV~D JUN 2 7 CU(;~6 Alaska Oil ~ Gas Cons. Corrnnission Anchorage Re: Application for Permit to Drill: Teck Cominco Alaska Incorporated, Red Dog Shale Gas Exploration Well No. NB-03 Gentlemen: Teck Cominco Alaska Incorporated (Teck Cominco) submits herewith the above referenced Application for Permit to Drill (APD) in duplicate, and the requisite filing fee. Well No. NB-03 is the third well in a five-spot pattern of exploration wells which will test the potential of the Kivalina formation to produce natural gas. If commerciality can be demonstrated, the ultimate objective will be to develop this resource as fuel for power generation at the Red Dog mine. The first two wells in the five-spot pattern (wells No. NB-O1 and NB-02) were drilled in 2005 without incident. It is proposed that Well No. NB-03 adhere to the same basic drilling program that was used in the previous wells. Air will be used as the circulating medium, and a downhole hammer will be utilized. The attached drilling program requires the following waivers from the AOGCC: 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. 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~ ~ • When APD's were submitted for well No. NB-O1 and NB-02 in 2005, AOGCC staff requested clarifications on a number of issues relating to our proposed drilling approach, and the waivers of certain regulations that were requested. Since Well NB-03 is identical to the previous wells in geometry and drilling procedures, it is hoped that our responses to the questions submitted by Commission staff last year will prove adequate to support the current APD. A copy of our responses (letter to Mr. Tom Maunder, P.E., dated July 5, 2005) is also attached. Well NB-03 will require a spacing exemption due to the proximity of Well NB-02 within the five-spot pattern. The rational for the requested exemption is enclosed with the submitted documents. Thank you for your consideration of this application. If you have questions, please contact the undersigned at (907) 258-3446, or by email at bob@fairweather.com. Since ly, . Gardner Sr. Technical Advisor for Teck Cominco Alaska Incorporated Enclosures • 206 - o9a Subject: Re: Exemption???? From: Stephen Davies <steve_davies@admin.state.ak.us> Date: Tue, 11 Jul 2006 10:48:22 -0800 To: "Miner, Lydia" <Lydia Miner@dec.state.ak.us> Lydia, The primary contact for this Teck Cominco project is Bob Gardner at Fairweather here in Anchorage. His phone number is 258-3446. This project is testing whether it is possible to recover methane gas from shale neaz the Red Dog mine. Many core holes have been drilled in the azea under mineral exploration regulations. Based on this previous drilling, there is a very little chance of encountering liquid hydrocazbons capable of flowing to the surface in these shale-gas wells. I can make a formal determination, if requested. The second well, NB-02, required a spacing exception, which can be found on AOGCC's website at http~//www state ak us/locaUakpagesJADMIN/ogc%rders/co%o500 599/co564.pd£ The project is outlined in that spacing exception decision. You may already have a copy of this exception in your files: it was emailed to Susan Hill at DEC Last Dec. 14th. Permits to drill for the next round of drilling (for wells NB-03, NB-04 and NB-OS) were approved on July 6, 2006 . Spacing exceptions aze required for these three wells. Public notices were published in eazly July, and the spacing exception hearing for these wells is scheduled for August 8 (see AOGCC's public hearing calendaz at http-//www aogcc alaska gov/hearlhear.shtml). Let me know if I can help further. Steve Davies 793-1224 Miner, Lydia wrote: Hi Steve: Hope your summer is going well. What do you folks know about this gas exploration at Red Dog? To my knowledge, there was no request for an exemption for this drilling that apparently happened last year. That could have been missed due to the changes to the statute last year -and I'm not interested in pursuing that. I am interested in making sure that they have an exemption (or a o-plan) this year. I'd like to know who at Red Dog might be the best person for me to speak with regarding the exemption process. !f you aren't working on this project, could you please forward this to the right person? (Sorry - I had to start somewhere!) Thanks!! Lydia Miner Alaska Department of Environmental Conservation Exploration, Production ~ Refineries Section Manager 555 Cordova Street Anchorage, AK 99501 Ph: (907) 269-7680 Fax: (907) 269-7687 Email: (ydia miner@dec.state.ak.us Gas exploration to resume at Red Dog Exemption???? Subject: Exemption???? From: "Miner, Lydia" <Lydia_Miner@dec.state.ak.us> Date: Mon, 10 Ju12006 16:34:37 -0800 To: steve_davies@admin.state.ak.us Hi Steve: Hope your summer is going well. What do you folks know about this gas exploration at Red Dog? To my knowledge, there was no request for an exemption for this drilling that apparently happened last year. That could have been missed due to the changes to the statute last year -and I'm not interested in pursuing that. I am interested in making sure that they have an exemption (or a c-plan) this year. Pd like to know who at Red Dog might be the best person for me to speak with regarding the exemption process. If you aren't working on this project, could you please forward this to the right person? (Sorry - I had to start somewhere!) Thanks!! Lydia Miner Alaska pepartment of Environmental Conservation Exploration, Production & Refineries Section Manager 555 Cordova Street Anchorage, AK 99501 Ph: (907) 269-7b80 Fax: (907) 2b9-7b87 Email: lyd ia_m iner@dec.state.ak.us Gas exploration to resume at Red Dog Expert: Tests show shale gas resource near zinc and lead mine compares favorably with huge Lower 48 deposits By Rose Ragsdale Petroleum News The more explorers learn about shale gas deposits neaz the huge Red Dog Mine in northwest Alaska the more they like the idea of exploiting the resource to replace costly diesel supplies now being shipped there to power the zinc and lead mining operation. But the jury is still out on whether natural gas locked within shale rock formations neaz the mine can be produced economically, Red Dog General Manager John Knapp said June 28. "We know the gas is there, but we don't know if it's there in sufficient quantities and at sufficient pressure to be produced," Knapp said told Petroleum News. Teck Cominco Ltd., the mine's owner, will spend $6 million to $8 million this summer on a second yeaz of drilling wells and conducting tests of gas deposits in the vicinity, Knapp said. Modest output could be economic Jonathan Kelafant, senior vice president of Advanced Resources International Inc., said the 2006 exploration program will include drilling another three or four holes for production wells and further injection testing looking for an underground area suitable for disposing of water produced with the methane. Consultant ARI is directing the gas exploration effort for Teck Cominco. Mineral exploration crews doing small-diameter core drilling discovered natural gas neaz Red Dog on NANA Regional Corp. land in the late 1990s. NANA also owns the land where Red Dog is located. 1 of 2 7/11/2006 10:50 AM Exemption???? Kelafant said the idea to produce the gas to power the Red Dog Mine first surfaced in 1998. During the next four years, about 200 gas content analyses were collected and eight whole geophysical logging sets were run. Last year, Teck Cominco budgeted nearly $4 million to drill two wells, conduct flow tests and build aone-mile access road. In addition to the follow-up drilling this year, mine officials say it will take another three to five years for permitting and drilling more wells before first gas might flow in 2010-2012. With 25 years of defined ore reserves left to mine at Red Dog, plus the possibly of extracting other nearby lead/zinc deposits still being explored, Teck Cominco will need plenty of fuel in the future. The mine, which can produce more than 600,000 tonnes of zinc concentrate a year, uses about 18 million gallons of diesel annually. It would take 60 billion cubic feet over 20 years to replace the diesel, and some 40 to 60 wells likely will be required for adequate production. Estimates of shale gas in the area have ranges as high as 3 trillion cubic feet. Still, producing as little gas as 70,000 to 80,000 cubic feet a day would be economic for Red Dog, with diesel currently costing the equivalent of $12-$15 per thousand cubic feet of gas, Kelafant said. Shale quality looks promising Tests, so far, show shale basins near Red Dog compare favorably with the geology of some of the hottest unconventional gas plays in the Lower 48, Kelafant told members of the American Association of Petroleum Geologists attending a conference in Anchorage May 8. "The shales at Red Dog compare favorably in permeability, gas content and recoverability," with such formations at the Barnett Shale in the Fort Worth basin in Texas and the Ohio Shale in the Appalachian basin, Kelafant said. The 2005 exploration program was a learning experience, according to Kelafant. "We learned we could produce gas from the shale," he said. The exploration team also found it could reduce the time required to drill the wells, which had targeted depths of about 1,500 feet to 2,600 feet. They also found the gas quality was good at 98 percent methane, Kelafant said. "We had an 81 percent test rate on hydraulic fracturing, and I thought that was pretty good in a frontier reservoir like this. It will require tweaking as we go along." Kelafant said the second well drilled last summer produced water at a rate of 100 barrels a day. Disposal of water produced with any future gas output will not be allowed in the mine, so part of the challenge of producing the gas will be finding a suitable way to dispose of the produced water. "There was a lot of gas in that water, and we are looking at water injection issues," Kelafant said. A model for rural gas exploration? Ultimately new technologies maybe required to make the project economic. If slim-hole production methodologies can be designed for implementation in rural areas the cost savings would be phenomenal, ARI officials have said. Knapp said rural communities in Northwest Alaska are monitoring ~e project. "They are optimistic the technologies we're developing can be used to find gas in their communities," he added. 2 of 2 7/11/2006 10:50 AM ~G~~\! STATE OF ALASKA ,l~ ALA OIL AND GAS CONSERVATION COM~ION~'2~~ JUN ~ ~ ;t; ) PERMIT TO DRILL 20 AAC 25.005 Alaska Oil & Gas ~~~u. y~~l~rtissian 1a. Type of Work: Drill 0 Redrill ^ Re-entry ^ 1b. Current Well Class: Exploratory ~ Development Oil ^ Stratigraphic Test ^ Service ^ Development Gas ^ Multiple Zone ^ Single Zone ^ 1c. Specify if well is proposed fo . Coalbed Methane ^ Gas Hydrates ^ Shale Gas^ 2. Operator Name: Teck Cominco Alaska Incorporated 5. Bond: Blanket ~ Single Well ^ Bond No. 6218218 11. Well Name and Number: NB-03 3. Address: 3105 Lakeshore Dr,BIdgA,Ste101 Anch.,AK 99517 6. Proposed Depth: MD: 3500ft TVD: 3500ft' 12. Field/Pool(s): Exploratory 4a. Location of Well (Governmental Section): Surface: ~ 1655ft.EWL,1855ft.NSL.Sec17,T.31N;R.18W;KRM 7. Property Designation: NANA Regional Corporation Top of Productive Horizon: As Above 8. Land Use Permit: NANA A reement 13. Approximate Spud Date: Total Depth: As Above 9. Acres in Property: 66000 14. Distance to Nearest Property: 6935 ft 4b. Location of Well (State Base Plane Coordinates): Surface: x- 584985 ~ y- 5,149,029 Zoi 7 10. KB Elevation (Height above GL): 1075 feet 15. Distance to Nearest Well Within Pool: 1765' - 16. Deviated wells: Kickoff depth: N/A feet Maximum Hole Angle: N/A degrees 17. Maximum Anticipated Pressures in psig (see 20 AAC 25.035) Downhole: 560 Surface: 110 18. Casing Program: Specifications Top -Setting Depth -Bottom Cement Quantity, c.f. or sacks Hole Casing Weight Grade Coupling Length MD TVD MD TVD (including stage data) 18" - 13 3/8 61# J-55 ST&C 75' Surface Surface 75' _ 75' 25 sx Permafrost 12 1/4" 8 5/8 24# J-55 ST&C 700' Surface Surface 700' 700' 493 sx Permafrost 7 7/8" 5 1/2 15.5# K-55 LT&C 3500' Surface Surface 3500' 3500' 178 sx Permafrost plus 5 sx Type 1 19. PRESENT WELL CONDITION SUMMARY (To be completed for Redrill and Re-Entry O perations) ~~ ~5 ~. e~ Total Depth MD (ft): Total Depth TVD (ft): Plugs (measured): Effect. Depth MD (ft): Effect. Depth TVD (ft): Junk (measured): Casing Length Size Cement Volume MD ND Con d u ctor/Stru ctu ra I Surface Intermediate Production Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): 20. Attachments: Filing Fee ~ BOP Sketch Q Drilling Program 0 Time v. Depth Plot ^ Shallow Hazard Analysis ^ Property Plat ^~ Diverter Sketch ~ Seabed Report ^ Drilling Fluid Program ^ 20 AAC 25.050 requirements ^ 21. Verbal Approval: Commission Representative: Date 12-Jun-06 22. I hereby certify that the foregoing is true and correct. Contact R. C. Gardner Printed Name R.C. Gardner Title Sr. Technical Advisor Signature c'"~ Phone (907) 258-3446 Date 12-Jun-06 Commission Use Only Permit to Drill ~\ Number: ~~p - [~(v API Number: ~ / 50- ~7,~- Z~ Y' - ~ Permit Approval Date: See cover letter for other requirements. Conditions of approval : If b/ox is checked, ell may not be used to explore/for-, to/st, or produce Coalbed methane, gas hydrates, or gas contained in shales:^ Other: ~ //~.~f -~ „(~yL,p~Ct7G 9~d'~ ~ -f#T'/ Samples req'd: Yes^ No [~ Mud log req'd: Yes^ No a.rv ~ du,~,~~ a,vCa,.77I Uy~~~ ~~ HZS measures: Yes^ No[~ Directional svy req'd: Yes^ No[~ i~c~~~^" ~4-"'. ~ ? ~ ` p,~ ~iC y+tiel~i7~.-F~mw. 3 K./1~'e~( r env i r~. J U .6b d •286 PPROVED BY THE COMMISSION DATE: ~ ~ ~ ,COMMISSIONER Form 10-401 Revise 1~/~Q 5~ ~ ~ n~ ~ ~~ / v ~ v ~ Submit i Duplicate V (~l tY ~y 6.Zg.L~6 G~^ G/Z~/06 • r Red Dog Shallow Shale Gas Project Background and Operations Summary Teck Cominco Alaska Incorporated (Teck Cominco) plans to drill three (3) additional shallow shale gas exploration wells (wells No. NB-03, NB-04 and NB-OS) in the North Basin area, north of the Red Dog zinc mine in northwestern Alaska during the 2006 summer season. These wells will complete a five spot pattern of wells designed to evaluate the potential for natural gas production from the organic-rich shales of the Kivalina formation. The concept of de-sorbing natural gas from the formation was developed by Advanced Resources International, under contract to Teck Cominco, following extensive analyses of Kivalina cores taken from numerous mineral exploration borings across the North Basin area. If commercial gas production can be established, the environmental and economic benefits gained through the development of the resources would be significant, as Red Dog mine operations currently consume approximately 18,000,000 gallons of diesel fuel annually. The first phase of this exploration project was accomplished in 2005 with the drilling and completion of the first two (2) wells in the five-spot pattern (wells No. NB-O1 and NB- 02). These wells demonstrated encouraging, but inconsistent results, as dewatering operations were pre-maturely suspended due to the on-set of winter conditions. Teck Cominco had elected to complete the five-spot pattern in 2006, and provisions have been made to continuously dewater and flow test all five wells simultaneously through the winter 2006-2007 season. It is believed that this extended test period will adequately evaluate the feasibility of the desorbtion process. The attached map shows the locations of the wells in the five-spot pattern. Red Dog Mine Shallow Gas Testing Program 2005 North Basin Access Roads 2005 Proposed Gas Testing Welf Sites 2005 Initial Test Well Sites Follow-up Test Well S(tes 2005 Proposed Access Road Alignments 2005 Proposed Alignment Follow-up Program Alignment ~~.~%2004 Proposed Road Alignment ~~/~ 300ff Creek Set-back Buffer N 82005-Gas-Test-Plan. apr )9 November 2004 r' Section 18 T 31N R18 W NB-04 NB-01 2005 Existing GasEx Roads Dog _ Roads 500 0 500 1000 1500 2000 Feet NB-05 2 2006 Planned GasEx Roads Section 17 T 31N R 18 W NB-03 ,liEi~ ~' '~?ij ~~~ NB-03 NB-04 NB-05 Alaska State Plane Easting 584,985 ~ 584,455 583,287 NAD27, Ak Zone 7 Northing 5,149,029. 5,150,954 5,148,312 Lat/Long W Longitude 162.84135 162.84543 162.85370 Decimal Degrees N Latitude 68.08378 68.08902 68.08176 UTM Easting 589,904 589,714 589,398 1927 UTM Zone 3 Northing 7,553,594 7,554,172 7,553,351 TeckCominco Red Dog Mine Shale Gas Project Planned 2006 Well Locations Date: 14Apr112006 By: KTurrlBr NB-03 1,655 feet East of West Line Sed 17 1,855 feet North of South Line NB-04 1,100 feet East of West Line Sect 17 3,770 feet North of South Line NB-05 35 feet West of East Line Sect 18 1,110 feet North of South Line Section 18 T 31 N R 18 W NB-Ol TeckCominco Red Dog Mine Shale Gas Project Planned Location Well No. NB-03 N A Section 17 T31 N R18W NB - 02 1655 ft. N 8-03 Lat: 68.08378 N Long: 162.84135 W ASP Nad 27 Zone 7 X = 584,985 $ Y = 5,149,029 Elev. = 1070 0 500 1,000 1,500 2,000 Feet '~'" Red Dog Shallow Gas Exploration Project: ~flI~~J~fllfl~~ Well No cNBtr03 E~asERVrcES riv^ b'~"; Cement NOTE: Exact depths and set poii to be determined when drilled an casing tallied. 3/8" 61 # K-55 conductor stalled @ 75' MD 121/x" Hole Base of Permafrost @ 640' M D 1", 24# K-55 Surface Casing )0' MD !" Hole ~rforated intervals to be ~termined from open-hole ~s. ~.5# J-55 Production MD & TVD Fairweather E&P Services, Inc. Rev. 2.0 6119106 Drawin Nat to Scale adh • • Teck Cominco Alaska Incorporated Summary Drilling Program Exploration Well No. NB-03 Surface Location: 1655ft. EWL, 1855ft. NSL, Sec. 17, T.31N., R. 18W., KRM x = 584,985ft., y = 5,149,029ft ASPC Zone 7 Synopsis: This well will be drilled to a total measured depth of 3500ft. to test selected zones in the Kivalina formation for natural gas, and assess the potential of the Wolverine Plate, which lies below 3000ft, for the future disposal of produced water. The well is programmed as straight hole. The drilling contractor is Major Drilling America, Inc, of Salt Lake City, Utah. A Schramm T130XD 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. Wells No. NB-O1 and NB-02, drilled in 2005, and located 3299ft northwest, and 1765ft northwest respectively, penetrated the same Kivalina formation interval that will be encountered in the NB-03 well. The wells were drilled without incident, and the same drilling procedures as are proposed for the NB-03 well were employed. Completion reports and logs for the NB-O1 and NB-02 wells are on file with AOGCC. Casing Program: Conductor: A 13 3/8" conductor will be pre-set at 75' in an 18" hole before the start of drilling. The conductor will be cemented to the surface. Surface Casing: Hole size -12 1/4"; Casing - 8 5/8" 24# J-55, ST+C; Depth = 700' (Base of permafrost @ ~ 640' MD); Collapse: 1370psi; Burst: 2950psi Cement: 493sx Coldset II Production Casing: Hole size - 7 7/8"; Casing 5 '/2", 15.5#, K-55, LT+C; Depth 3500' to surface; Collapse: 4040psi; Burst 4810psi; Cement: Lead - 178sx Coldset III, Tail - x Type I Cementing Program: See Attached ~~~ S~ l ~~~ ~S • • 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 drilled as part of an extensive mineral exploration program in the area, and by the drilling of Wells No. NB-O1 and NB-02. The North Basin is not a typical petroleum province, in that the Kivalina formation overlies a mineralized zone. The gas that is the target of the well is absorbed within a dense shale body of extremely low porosity and permeability and will at a minimum require extensive 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 uncontaminated rock fragments. This material will be trucked to the Red Dog solid waste disposal site. Series 200 -Rotating Control Heads (Top Drive Rigs) ,~ { ''~Ttz:SHIEIV'+~~'l Il~'~1;,71`Il~ C[~F~1T>RO-]L ~~~5~ Iii. ~, ..~ ,, Gla~ as9;trirers ~t R°+tzt ~ ~ ~~R '+ ° ~~,;~srt=r; ., •.d ~ F:Sr Zi ~+$ 3a..s (ik'#t^'r'117+ 7r .;!•„~ BACK TO PRODUCTS .] Page 1 of 1 SERIES 2000 ROTATING CONTROL HEADS (Top Drive Rigs) The Washington Series 2000 is a low profile rotating control head designed for "top-drive rigs" or "work-over rigs." The frictional engagement betweer the drill string and stripper rubber rotates the control head with the drill string, sealing off the well borr t~, continuously, while diverting all i 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 SIZEL FLANGE HEIGHT 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" L~~~ 8" - 400 25-3/4" ~8~" 5-5/8" 11" 10"- 400 17-1/2" 11-1/8" 11" 10"- 400 23-1/2" 11-1/8" 5-5/8" li" 10" - 900 15-1/2" 11-1J8" 11" 10" - 900 23/3/4" 11-1/8" 5-5/8" ----- -----~---~- ~--~-_- 14" 1Z" - 900 22" 14" 5-5/8" wE CAtd MANUFACTURE ANY SIZE BOWL TO MEET YOUR SPECIFIC NEEDS [HOME] [ABOUT US] [OUR PRODUCTS] [CONTACTING US] [SEND US YOUR INQUIRY] [VENTS] http://www.washingtonrotating.com/2000.htm1 4/25/2005 +~ i~1 I+ 4 Sib' ~ ~i =~ ~~ Proposal No: 1795512050 Teck Cominco Alaska Incorporat North Basin No. 3 Red Dog Mine Field De Long Mts County, Alaska March 13, 2006 Well Recommendation Prepared for: Prepared by: Bob Gardner Dave Susko Project Manager Region Engineer Fairweather E & P Services, Inc. Bakersfield, California Bus Phone: 661-396-4446 Mobile: 661-201-0873 POWERVISION~ f'owc:RPsv • Pow~tt'I'e.a~c Pow~,RL[:~~ Service Point: Service Representatives: Kenai, AK Rod Edwards Bus Phone: (907) 776-4084 Account Manager (907) 659-2329 Kenai, Alaska Fax: (907) 776-4087 Bus Phone: 907-349-6518 Mobile: 907-229-6536 Q4105 Operator Name: Teck Cominct ~a Incorporat ! ' Well Name: North Basin No. • - Job Description: Surface Casing Date: March 13, 2006 Proposal No; 1795512050 JOB AT A GLANCE Depth (TVD) 700 ft Depth (MD) 700 ft Hote Size 12.25 in Casing SizeMleight : 8 5/8 in, 24 Ibs/ft Pump Via 8 5/8" O.D. (8.097" .I.D) 24 Total Mix Water Required 2,035 gals Spacer Fresh Water Spacer 15 bbls Density 8.3 ppg Cement Slurry CS II 493 sacks - l Density pp ~ Yield 1.02 cf/sack Displacement Displacement 39 bbls Density 8.6 ppg Re,«,~t~~,:Ma~h,5.24os,:,~~~ Page 7 a4,~ Clperator Name: Teck Cominc Incorporat Well Name: North Basin No. Job Description: Surface Casing Date: March 13, 2006 Proposal No: 1795512050 ~~~ WELL DATA ANNULAR GEOMETRY ANNULAR LD. P fn) MEASURED TRUE VERTICAL 12.615 CASING ~ 75 ~ 75 12.250 HOLE 700 700 SUSPENDED PIPES DIAMETER in WEIGHT DEP TH ft O.D. 1.D. {Ibs/ft) MEASURED tRUE VERTICAL 8.625 8.097 24 700 700 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 fl x 0.4127 cf/ft 80 ft x 0.3576 cf/ft with 0 % excess with 70 % excess = with 0 % excess = TOTAL SLURRY VOLUME _ 34.7 cf 438.5 cf 28.6 cf (inside pipe) 501.8 cf 89 bbls Report Printed on: March 75.20091:13 PM Page 2 Gr4115 Operator Name: Teck Cominc, ~a Incorporat i Well Name: North Basin No. 3 Job Description: Surface Casing ~' Date: March 13, 2006 Proposal No: 1795512050 FLUID SPECIFICATIONS Spacer 15.0 bbls Fresh Water Spacer cLD 8.34 ppg VOLUME VOLUME FLUID CU-F1' FACTOR AMOUNT AND TYPE OF CEMENT Cement Slurry Displacement CEMENT PROPERTIES Slurry Weight (ppg) Slurry Yield (cf/sack) Amount of Mix Water (gps) 502 / 1.0 = 493 sacks Cold Set II 39.5 bbls Displacement ~ $.6 ppg SLURRY N0.1 14.95 1.02 4.13 1. Slurry performance to be confirmed through pilot blend testing at PRTC. Slight additive adjustments may be necessary. Report Printed on: March 15.2906 7:73 PM page 3 C,r4129 Cfperator Name: Teck Comincc ~ Incorporat t Well Name: North Basin No. 3 '~ Job Description: Production Casing Date: March 13, 2006 Proposal No: 1795512050 JOB AT A GLANCE Depth (TVD) 3,500 ft Depth (MD) 3,500 ft Hole Size 7.875 in Casing SizelWeight : 51/2 in, 15.5 Ibs/ft Pump Via 51/2" O.D. (4.950" .I.D) 15.5 Total Mix Water Required 4,317 gals Spacer MCS-4D Spacer 30 bbls Density 9.5 ppg 1st Lead Slurry Lead Cement 178 sacks Density 1 Yield 1.64 cf/sack 1st Tail Slurry ~~ Tail Cement 393 sacks Density g _._ _ Yield 1.48 cf/sack Displacement --- Displacement 81 bbls Report Panted on: March 15.2(1061:73 PM Page 6 ~`" 09 Qperator Name: Teck Comincr Incorporat We!! Name: North Basin Nc,. Job Description: Production Casing Date: March 13, 2006 Proposal No:179551205C WELL DATA ANNULAR GEOMETRY SUSPENDED PIPES DIAMETER in WEIGHT DEP TH it O.D. I.D. (Ibs/ft) MEASURED TRUE VERTICAL 5.500 4.950 15.5 3,500 3,500 Float Collar set ~ 3,420 ft Mud Density 9A0 ppg Mud Type Water Based Est. Static Temp. 63 ° F Est. Circ. Temp. 50 ° F VOLUME CALCULATIONS 700 ft x 0.1926 cf/ft 600 ft x 0.1733 cf/ft 2,200 ft x 0.1733 cf/ft 80 ft x 0.1336 cf/ft with 0 % excess = with 50 % excess = with 50 % excess = with 0 % excess = TOTAL SLURRY VOLUME _ 134.8 cf 155.9 cf 571.7 cf 10.7 cf (inside pipe) 873.2 cf 156 bbls Report Fretted on: Match 15, 29061:13 PM Page ~ G74116 ~~ iJperator Name: Teck Coming ~a Incorporat ~ ! Well Name: North Basin No. Job Description: Production Casing Date: March 13, 2006 Proposal No: 1795512050 ~~ FLUID SPECIFICATIONS Spacer 30.0 bbls MCS-4D Spacer + 7 Ibs/bbl MCS-D + 31 Ibs/bbl Bentonite + 34 Ibs/bbl Barite -Sacked (d3 9.5 ppg VOLUME VOLUME FLUID CU-FT FACTOR AMOUNT AND TYPE OF CEMENT 1st Lead Slurry 291 / 1.6 = 178 sacks Cold Set III 1st Tail Slurry 582 / 1.4 = 393 sacks Type I Cement + 8%bwoc BA-90 + ~--~ 0.05% bwoc Static Free + 0.4%bwoc BA-10 + 0.5%bwoc CD-32 + 1 gals/100 sack FP-6L + 62.1 % Fresh Water Displacement 81.4 bbls Displacement CEMENT PROPERTIES SLURRY SLURRY N0.1 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 adjustmehts may be necessary. Report Ported on: March 15, 200fi 1:13 PM Page 8 Gr4729 .` • • Well Number NB-03 Procedure 1. Hold pre-operations safety meeting, as per established Fairweather Procedures. 2. Move-in and rig-up Major Drilling America Schramm T130XD rig and ancillary equipment. 3. Nipple up diverter on 13 3/g" 3M x 13 3/g" 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 1/4" hole to 700' M.D. Sample cuttings as directed by ARI geologist. At 700ft M.D. blow hole clean and P.O.O.H. for surface casing. 6. Make up float shoe and float collar on 8 s/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. \_ rao ~-~ ~~~ ~ovKrllsSbr~`~ ~ ;~ ~l 7. Cut off conductor at base of cellar install 11" 3M x 8 s/g" S.O.W. diverter head on V~e~~~ surface casing. Function test diverter on single joint of drill pipe. ~~~~~ 8. RIH with hammer and drilling assembly to float collar. Close diverter and pressure test casing to SOOpsi for 15 minutes. Drill out float collar, shoe joint and float shoe, and drill 7 ~/8" hole to 3500ft. M.D. Sample drill cuttings as directed by ARI geologist. At 3500' M.D., blow hole clean and P.O.O.H. for logs. 9. Rig up Weatherford Precision Energy Services wire line unit and run array induction, compensated sonic, compensated neutron, photo density, sonic waveform, gamma ray, caliper and directional survey as directed. 10. Make up float shoe and float collar 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/g" x 5 %2" annulus to base of cellar. W.O.C. as directed. ~ • 11. Cut off surface casing at base of cellar and recover 8 s/8" diverter head and cut off casing. Instal171/16" 3M w. lock screws x 5 '/z" S.O.W. tubing head and 7 1/16" 3M x 7 1/16" bore drilling valve. 12. Rig up Weatherford 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. Perforated selected zones in Wolverine plate below 3500ft. as directed by ARI geologists. Run injection test in Wolverine plate to assess potential for use as disposal zone in possible future production wells. 14. Isolate Wolverine perforations with cement retainer set at 3000ft M.D. Prepare to perforate intervals in Kivalina formation. 15. Zones to be perforated and fraced will be selected by ARI geologists after analysis of open hole logs. Perforate selected zones and frac as per supplemental program to be prepared after analysis of open hole logs. Form 10-403 will be submitted in advance of this work. 16. Completion and testing program will be prepared following analysis of open hole logs. • ~ NB-03 Conformance to AS 31.O5.O3O(j) (j) For exploration and development operations involving nonconventional gas, the commission NB-03 is a shale-gas (nonconventional gas) exploration well. (1) may not (A) issue a permit to drill under this chapter if the well would be used to produce gas from an aquifer that serves as a source of water for human consumption or agricultural purposes unless the commission determines that the well will not adversely affect the aquifer as a source of water for human consumption or agricultural purposes; or The NB-03 well is located on private property (NANA Corporation lands) on the side of a hill, about 1-1/2 miles north of the Red Dog Mine. This area has been extensively drilled for mineral exploration purposes to similar depths. The Red Dog Mine obtains water for industrial and domestic use from the Bons Creek Reservoir, which is located in a separate drainage basin about 5 miles away. The nearest native villages are Noatak, located over 40 miles away, and Kivalina, located about 60 miles away. NB-03 is located on a 4 percent grade hillside, about 120 feet above and 3,500 feet away froma a 50-foot wide creek that meanders through a 400-foot-wide valley. The location of this well and the abundant surface water nearby make it highly unlikely that any potential aquifers affected by the well will ever be used to provide water for human cons~rption or agricultural purposes. (B) allow injection of produced water except at depths below known sources of water for human consumption or agricultural purposes; Wastewater is not injected. Any wastewater from drilling operations, fracturing and production testing is disposed in the Red Dog Mine tailings pond. The operator reports that EPA granted approval for this disposal by letter dated October 27, 2004. (2) shall (A) regulate hydraulic fracturing in nonconventional gas wells to assure protection of drinking water quality; 8-5/8" surface casing will be set about 700 feet below the surface and cemented to surface. The well will then be drilled to a total depth of 3,500 feet, 5-1/2" casing will be run to total depth, and the casing will be cemented to surface. .hater, a cement bond Zog will be run to indicate good cement bond through and above all zones of interest. Zones to be perforated and fractured will be selected after analysis of open hole logs. Applications for Sundry Approvals will be submitted for Covmlission approval prior to perforating and fracturing operations. .. .. ~, • • These operations will not affect drinking water quality because: the site is remmotely located; the shallowest perforation will lie at least 700 feet below the ground surface; the well will be cased and adequately cemented framz TD to surface; and the well will be located at least 3,500 feet from the nearest stream. (B) regulate the disposal of wastes produced from the operations unless the disposal is otherwise subject to regulation by the Department of Environmental Conservation or the United States Environmental Protection Agency; iiastewater frcan drilling operations, fracturing and production testing was disposed in the Red Dog Mine tailings pond. The EPA reportedly granted approval for this disposal by letter dated October 27, 2004. (C) [Repealed, Sec. 6 ch 79 SLA 2005]. (D) as a condition of approval of a permit to drill a well for production or production testing of coal bed methane, require the operator to design and implement a water well testing program to provide baseline data on water quality and quantity; the commission shall make the results of the water well testing program available to the public. Not applicable to this remotely located, shale-gas exploration well. ~con~cv ~- teve Davies ~ %~ AOGCC 1 ~ S r 0 ~ June 29, 2006 • E & P SERVICES, IIVC. July, 5, 2005 Mr. Tom Maunder, P. E. Petroleum Engineer Alaska Oil and Gas Conservation Commission 333 7~' Avenue, Suite 100 Anchorage, AK 99501 ~,;r ;k °~ !/`~, ; ,~ Re: Teck Cominco Alaska Incorporated, Wells Nos. NB-O1 and NB-OZ 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 fVorth 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 2S. 03S (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 identify the likelihood of encountering shallow gas: We submit that the density of mineral exploration core holes in the area adequately addresses this issue. None of these core holes (all of which were drilled without any means of well control under mineral exploration regulations) encountered any shallow gas. 10. 20 AAC 25.066 covers gas detection requirements. There is no waiver clause for gas detection equipment absent a hearing, etc.----: Teck Cominco will provide gas detection equipment during the drilling of NB-O1 and NB-02. If the results of this pilot shale gas project are encouraging, and subsequent wells are proposed, we reserve the right to make a formal waiver request for all subsequent wells, recognizing that a hearing will be required. 11. Inclination survey--------: Surveys will be run every 500 ft. 12. Mud log or Zithologic 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. Your e-mail addressed the need for a spacing exemption for Well No. NB-02. This application is being submitted under separate cover. Your e-mail also listed 14 "Questions and Comments", which are addressed in the. same format below: We presume that gas detection will be part of the mud logging equipment: See Nos. 10 and 12 above. <t ~`. `,7~ ~,.. i~~ • 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 sign cant shallow gas ever been encountered in the area?: No 7. Has and H2S ever been demonstrated in this area? A stronger case must be made before the Commission can waiveH2S requirements in 20 AAC 25.065: There has never been H2S 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. r. ~' _. - • I hope this information adequately addresses your concerns. Please call or a-mail at any time should you have further questions or comments. Sincerely, R. C. Gardner Sr. Technical Advisor For Teck Cominco Alaska Incorporated Enclosures C7 Waiver Requested 1-Underbalanced drilling ~~~~~~ ~ ~~ ~~~ ~~ ~ ~ ~ S `"~ a ~~ ~ ~`~'~ ~v i ~ ~ ~~ ~~~ ~ ~~~; i ~~i Regulation 25.033(b) and 25.033(1) 2-Employing a ' 20.035(c) and "ratating head" rather j 25.035 (h) (2) than a diverter. ', • Recommendation and Discussion Approval of this waiver is recommended. This well is planned to be drilled using air. A similar a.ir- 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 approved per 20 AAC 25.033 (i). Approval of this waiver is recommended. In air drilling operations, a rotating head is employed to 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 gpp 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 I porosity and permeability studies provided by TC I, have shown that the rock is very "tight". Given the ~! !low permeabilities determined, conventional flow is ~, ~, essentially impossible. I ~ Based on the submitted information, it is ~I determined that equipment planned to be used by ' ~ TC is appropriate for the anticipated subsurface I '. environment and that this equipment will provide j an equally effective means of well control per 20 I 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 i has conducted an extensive mineral core exploration effort in the area resulting in over 100 i core holes. No shallow gas or abnormal pressure ~~ ~. hazards were encountered during this drilling • • 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). TEiVI with SFD 7/12/2005 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 <jape_williamson@admin.state.ak.us>, Dan T Seamount <dan_seamount@admin.state.ak.us>, John D Hartz <jack_hartz@admin.state.ak.us>, James B Regg <jim_regg@admin.state.ak.us>, Kari J Wheeler <kari wheeler@admin.state.ak.us> I am hereby recusing myself from participation in any matters coming before the Commission involving the shallow gas exploration program currently being conducted by Teck Cominco Alaska Incorporated, in Northwest Alaska, in the area around the Red Dog lead and zinc Mine. The reason for this recusal is that prior to joining the Commission I worked on this specific project for the operator, Teck Cominco Alaska; and, therefore, it will be inappropriate for me to participate in decisions of the Commission relative to this project. All applications, spacing hearings and other issues which may come before the Commission related to this project, including but not limited to Well Nos. NB-O1 and NB-02, are to be handled exclusively by Commissioners Seamont and Foerster without any involvement by me. Copies of this notice shall be placed in all relevant files. John K. Norman Chairman 1 of 1 7/28/2005 8:17 AM 2 O 6 --f3 ~'O - FAiRWEATHER EXPLOf~ON FIRST NATION~NK A L A S K A & PRODUCTION SERVICES INC. 89- 52 GENERAL ACCOUNT 15807 2000 EAST 88TH AVENUE, SUITE 200 DATE AMOUNT .ANCHORAGE, AK 99507-3804 PH, (907)258-3446 614/2006 $100.00 PAY .One Hundred Dollars and 00 Cents TO THE ORDER STATE OF ALASKA - AOGCC OF .333 WEST 7TH AVE SJITE 100 ~~ ANCHORAGE AFC: 99501 USA _ -___-------m- - _ - -- --------- _ ~~r~__-~w_-_- "P 11'0 L 580 714` ~~ 2 5 2000601: 0 L L Z 8 2 3 0t4' FAIRWEATHER EXPLORATION & PRODUCTION SERVICES INC. -GENERAL ACCOUNT 15 8 O 7 Fairwe h v' VENDORID NAME PAYMENT NUMBER CHECK DATE STAK.AOGCC STATE OF ALASKA - AOGCC 00017432 6/14/200 OUR VOUCHER NUMBER YOUR VOUCHER NUMBER DATE AMOUNT AMOUNT PAID DISCOUNT WRITE-OFF NET 00021250 060612*CKREQ*NB03 6/12/2006 $100.0 $100.0 $0.0 $0.0 $100.0 $100.0 $100.00 $0.0 COMMENT FILING FEE - APPL FOR PERMIT TO DRILL WELL $0.0~ $100.0 • • TRANSMITTAL LETTER CHECKLIST WELL NAME ~/~ PTD# ~ ~ - ~ ~~ Development Service ~ Exploratory Stratigraphic Test Non-Conventional Well Circle Appropriate Letter /Paragraphs to be Included in Transmittal Letter CHECK ADD-Olv'S TEXT FOR APPROVAL LETTER WHAT (OPTIONS) APPLIES MULTI LATERAL The permit is for a new wellbore segment of existing wel l (If last two digits in API number r permit No. , API No. 50- - a e between 60-69) I Production should continue to be reported as a function of the original API number stated above. ~ PILOT HOLE In accordance with 20 AAC 25.005(f), all records, data and logs acquired for the pilot hole must be clearly differentiated in both well name ( PH) and API number (50- - -____) from recojjdsd~~~L- nd logs a i d f ll ~5'G cqu re or we . ~ SPACING The permit is approved subject full o liance with 20 AAC / EXCEPTION 25.055. Approval to perforate nd roduc l in'ect is contingent I ~// upon issuance~o~ a co seryatton o r approving a spacing ~ ~C i ! ~ T 5~4 ' c. , except on /- tfr1~ .a 4 .. .~t~.assumes the liability of any protest to the spacing exception that may occur. DRY DITCH All dry ditch sample sets submitted to the Commission must be in ~ SAMPLE no greater than 30' sample intervals from below the permafrost or from where samples are first caught and 10' sample intervals through target zones. Please note the following special condition of this permit: I, Non-Conventional production or production testing of coal bed methane is not allowed Well for na e of well -- .~ Rev: 1/25/06 C:\j ody\transmittal_checklist x,03 WELL PERMIT CHECKLIST Field & Pool - _ _-._.-.__Well Name: NB 03 Program EXP , Well bore seg ^ PTD#:2060900 Company TECK COMINCO ALASKA INCORPORATED Initial ClasslType EXP / PEND GeoArea 890 Unit OnlOff Shore On Annular Disposal n u Administration 1 Permit-fee attached - Yes - 2 Lease number appropriate_ _ _ . - - - Yes Well will be on NANA Land governed by_a-eonf dential exploration_agreement-between NANA and_Teck. - - - - _ - - 3 Uniquewell_nameandnumber-__-__._________________ -_____-__-_Yes__ _______--_ 4 Well located in a-de_finedpool - N0 - - - 5 Well located proper distance_ from drilling unitboundary_ - . - . - _ No_ _ Nearest property line_ is ADL 389251., 6935' west. - - - - - . .. . . . . .... . . 6 Well located proper distance from other wells_ _ _ . _ _ - - _ No- _ _ - - _ - Will be located 1765'_f[om NB-02, also in_Sec._17, - - - 7 Sufficient acreage ayail_able in_drilling unit_ _ No- SPACING EXCEPTION REQQUIRD): -2nd well in Sec. 17.- 8 Ifdeviated,is-wellboreplatincluded____________ __________ ____________NA___ _____Vertica/well-_-________-__-__-_--- 9 Operator only affected patty- - - - - - Yes - - - - 10 Operatorhas-appropriate.bondinfQrce_____________________ ____._-__--Yes__ -__._l3ond6218218,effective-7112/2095.--__--_-------------_.-..._.-.---_--_-------_- 11 Permit_canbeissuedwithoulconservationorder---------------- ------------ No_-_ ____SPACINGEXCEPTIONRE_QUIRED______--_--._-_-__--___-__--_-_--_-____----_- Appr Date 12 -Pe[mit-can be issued wjthout admini&trative_approyal - - - - - - - - - - - - - - - - - - Yes - - _ _ - - _ - - _ _ _ _ _ _ _ - - -- - SFD 6!28/2006 13 Can permit be approved before 15-day wait Yes 14 Well located within area and strata authorized by-InjectionOrder#(putlQ# in-comments)-(For_ NA___ _________________________________________________________________________ 15 All wells within 114_mile area of review identified (For service well only) _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ NA_ - - _ _ _ _ _ _ _ _ _ _ _ _ - _ ---------------------------------------------------------- 16 Pre-produced injector; duration of pre production less than_ 3 months-(For service well only) NA_ - - _ _ - - - -- -- -- 17 Nonconven, gas conformsfo A$31,05,030O.1.A),O.2.A-D) - _ - - - - - - Yes See_a_ttached doc: "NB-03_Conformance to_A$ $1,05.030Q)" - Engineering 18 Condu_ctorst[ing-provided_____---___________________ ____________Yes__ _______.-..-------__--_--.--.._- 19 Surface casing-protects all known_ l1SgWs _ _ _ _ , _ -Yes - - . Surface & production casing will be cemented to surface, protecting any shallow water._ See 17, above, $FD - 20 CMT_vol_adequate_to circulateon conductor&surf_csg _ _ _ _ _ _ - - - _ - - _ _ _ - _ _ _ Yes _ - - _ _ - - - _ - _ _ 21 CMT_v°ladeguate_totie-in long string to surfcsg________-____.- _____Yes_- -_________ 22 CMT-willcoyerallknown_productiyehorizon_s_________________ _____--_---_Yes_ ___-__..--.---_---_ -- -- - 23 Casing designs adequate forC,TB&-permafrost--------------- ------------Yes__ __________-__-__-______________-__._. 24 Adequate tan_kage_or reserve pit - _ - - _ _ _ - - Yes Hydrocyclone and cuttings bin will capture returns. _Solid waste_to Red Dog solid waste site.- Waterto_ _ - - _ _ . - 25 If a-re-drill, has_a_ 10-403 for abandonment been approved - - - - - - NA_ _ - _ _ _ - . tailings pond-per EPA approval. 1500_ bbls water planned on location to_"kill"well if necessary. - 26 Adequatewellboreseparationproposed--------- -- ---- ----- --Yes-- ---- -- - --- ------- - --- ---- ----------------- ------_- ----- 27 If diverter required, does it meet regulations_ _ - _ _ - _ - - _ _ - _ NA_ _ - - _ _ - -Rotating head_in use to diverteirculated air_. ----------------------------- Appr Date 28 Drilling fluid_ program schematic & equip list adequate- Yes - . - - - - -Drilling fluid is_air, Permiability studies by IJAF show target formation to-have very low perm_ (50.2 md). _ _ _ _ _ _ _ TEM 7!5!2006 29 BOPEs,.do they meet regulation _ . - _ - _ - - _ - NA_ - No issues drilling last year or in-123 mineral core holes. - lJnderbalance is acceptable. ~ ,~~ 30 BOPE_press rating appropriate; test to_(put prig incomments)_ _ _ - _ _ - NA_ - - _ _ - -BOP will not_be employed, See comments above. _ _ _ _ _ _ - - ~y 31 Choke_manifold complies wlAPt RP-53 (May 84)_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ NA_ _ _ _ _ _ - - A choke manifold will not be employed.- - _ - _ _ _ 32 Work will occur without operation shutdown _ _ _ Yes _ _ _ _ _ 33 Js presence of H2$ gas probable - - - - N0 - - - - - - 34 Mechanical contl_ition of wells within AOR verified (FOrseNice well only) - - _ - - - - - - - NA_ _ _ - _ - . - _ - - - Geology 35 Permit_can be issued who hydrogen_ sulfide measures _ Yes In 2005, Tec_k drilled N6-01 & NB-02 nearby without incident, using same_d_rilling procedures- - - - - - - - - - - - - - 36 Data_presented on potential oye_rpressure zones_ Yes - . - - No abnormal pressure or shallow gas expected based on drjlling of NB-01 & NB-02 and Appr Date 37 Seismic analysis of shallow gas zones_ _ - _ _ - - _ _ - . _ _ NA_ numerous mineral exploration boreholes in_area, _ - - - 5FD 6128/2006 38 Seabed condition survey_(if off shore) _ - _ _ _ _ _ - - _ _ - - _ _ - - NA - - - 39 Contact namelphone for weekly-progress reports [exploratory only] . - _ - Yes _ - - Bob_Gardner -Q07-258-$446 _ _ _ _ _ _ _ _ _ _ - Geologic Engineering Publi Date: Date Date Third well in a 5-s of attern bein drilled and de-watered to test feasibilit of roducin as from shale as an alternative P P 9 Y P 9 9 Commissioner: i s Commissioner: Co ~' 6 I ~ / 7 j ~ ~~ ~ r ~ / source of fuel for the Red Dog Mine. Well will be drilled using air and a downhole hammer. SPACING EXCEPTION REQUIRED: 2nd well within Sec. 17 & well will be located within 3,000 of other shale-gas test wells. June 9, 20D3: ACMP r _~~ J ( ~ ~ ~> ~ !~ Q/~ i i , ~ determ nat on found project to be consistent with regulatory requirements. Lithology log and samples were obtained in NB- c~ 01. SFD •
