Department of Commerce, Community, and Economic Development
Alaska Oil and Gas Conservation
Commission
HOME
EVENTS
DATA
Data List
Drilling
Production
Orders
Data Miner
Document Search
REPORTS
Reports and Charts
Pool Statistics
FORMS
LINKS
Links
Test Notification
Data Requests
Regulations
Industry Guidance Bulletins
How to Apply
ABOUT US
History
Staff
HELP
Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
O 054
lma Pr®'ect Order File C®Ve~a e J 9 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. Order File Identifier Organizing (done) RESCAN ^ Color Items: ^ Greyscale Items: ^ Poor Quality Originals: ^ Other: NOTES: BY: Project Proofing BY Scanning Preparation BY: Maria Date: Date: _x30= Date: I~ Production Scanning III ^ Rescan Needed I~~II IIIIiIII~I~ OVERSIZED (Scannable) ^ Maps: ^ Other Items Scannable by a Large Scanner OVERSIZED (Non-Scannable) ^ Logs of various kinds: Other:: ~ /s/ III II~I~I~IIII III~I ~ /s/ + =TOTAL PAGES ~ V~ (Count does not include cover sheet)~/~/~ /s/ ~ Y Stage 1 Page Count from Scanned File: ~~~~ (Count does include cove heet) _~e~ Scanning is complete at this point unless rescanning is required. Page Count Matches Number in Scanning Preparation: YES _ BY: Maria Date: ~ O~ ` V ~~ Stage 1 If NO in stage 1, page(s) discrepancies were found: YES BY: Maria Date: v ~P .'muimiiiu~u! ReScanned I~I II II II I III I ~ (I~ BY: Maria Date: /s/ Comments about this file: Quality Checked III II'III III IIII III ~wo-sided III I III DIGITAL DATA ^ Diskettes, No. ^ Other, No/Type: 10/6!2005 Orders File Cover Page.doc • u Index Other 54 Regulation Package Suspended Wells and Requests for Information 1. June 26, 2007 Internal Document re: changes 2. November 28, 2007 AOGCC Request for File Opening 3. November 29, 2007 1St Notice of Hearing, Affidavit of Publication, bulk/e-mail mailing list 4. November 30, 2007 AGO's filing opening 5. November 29, 2007 2"d Notice of Hearing, Affidavit of Publication, bulk/e-mail mailing list 6. January 4, 2008 3rd Notice of Hearing, Affidavit of Publication, bulk/e-mail mailing list 7. January 7, 2008 4th Notice of Hearing, Affidavit of Publication, bulk/e-mail mailing list, transcript of 2/28/08 hearing and exhibits 8. June 17, 2008 Transcript and Exhibits 9. May 1, 2008 Notice of Hearing, Affidavit of Publication, bulk/e-mail mailing list 10. July 30, 2008 Draft Regulation for Public Meeting 7-30-08 11. August 27, 2008 Internal Documents (Memorandum held confidential) 12. ------------------- Various E-mails 13. August 27, 2008 Regulation Package for Legal review 14. October 14, 2008 Agency-Attorney Review Memorandum (Confidential) 15. October 15, 2008 Department of Law's Review and comments 16. October 20, 2008 LT Governors review Amended Regulations Dealing with Suspended Wells and Requests for Information The Alaska Oil and Gas Conservation Commission has fully revised its regulations dealing with suspended well requirements in 20 AAC 25.110 and requests for information in 20 AAC 25.300. The amended suspended wells regulation revises the requirements for suspending wells and maintaining suspended wells and the amended requests for information regulation clarifies and expands requirements relating to information requests. The Lieutenant Governor signed and filed the regulation changes on October 20, 2008, with an effective date of November 20, 2008. For further information or to obtain a copy of the amended regulations, contact Jody Colombie at (907) 793-1221, fax (907) 276-7542, or e-mail jody.colombie~c~alaska.~~,ov. X16 pF Tg~, 8~ ~ PO Box 110015 SEAN PARNELL t~ ~' Juneau, Alaska 99311-0015 LIEUTENANT GOVERNOR 907.465.3520 www.hgov.state.ak.us 907.465.5400 Fax I[.govemorQalaska.gov pF~aa~ STATE OF ALASKA ~.~ OFFICE OF THE LIEUTENANT GOVERNOR ,, ~~, JUNEAU l_.,, ~~ MEMORANDUM ~~~~~~~ . ~ ~, ~~ ~.... To: Carol Beecher, AAC Contact Date: October 20, 2008 Department of Administration From: Jason Hooley Telephone: (907) 465-4082 Special Assistant Re: Filed Permanent Re ations: Alaska Oil and Gas Conservation Commission j~_ Suspended Wells and Requests for Information: 20 AAC 25.110; 20 AAC 25.300 -', ;.' 4 ~' , Attorney General File: 993-08-0084 Regulation Filed: 10/20/2008 Effective Date: 11/19/2008 Print: 188, January 2009 cc with enclosures: Linda Miller, Department of Law Judy Herndon, LexisNexis Eugene Harnett, Administrative Regulation Review Committee Shalon Szymanski, Administrative Regulation Review Committee Jody Colombia, AOGCC Register ~ ~b Joy. ~i MISCELLANEOUS~ARDS 20 AAC 25.110 is repealed and readopted to read: 20 AAC 25.110~,Suspended wells. (a)~If allowed under 20 AAC 25.105, an operator may apply to the commission under this section to approve the suspension of a well or to renew the approval of the suspension of a well. ,~ he operator must state the reasons the well should be suspended, and not .~ completed or abandoned, and must demonstrate to the commission's satisfaction that (1) the well /'~. (A) is mechanically sound; n (B) will not allow the migration of fluids; (C)~will not damage freshwater or producing or potentially producing formations; ~ , po (D)^will not impair the recovery of oil or gas; ~ ' (E) is secure, safe and not a threat to ublic health; and '' n~' geavi~~~ns caf R + 31ao5, -Flu S ;k,~,,P#,~r, at ~-y or¢~t,v~ gti Qulai~ia,., or ~~;i' (F) is in compliance with all • and i°sue.dl. hr -1~.,z tah~.rk,is5'ican~ (2) the well #~ (A) has future utility as an exploratory, development, or service well; (B~s a viable candidate for redrilling; or i(: (C) is located on a pad or platform with active producing or service wells. (b) An Application for Sundry Approvals (Form 10-403) must be approved by the commission before operations to suspend a well commence, except that oral approval may be requested under 20 AAC 25.507(b). In addition to meeting the requirements of (a) of this section, the application must include the following: (1)~wellbore diagrams illustrating the current and proposed mechanical configurations of ~~ the well; (2) information on abnormally geo-pressured or depleted strata; n. Register 1~~, ~~,v.~°I MISCELLANEOUS~ARDS (3) a description of the proposed work plan, including how the integrity of existing and n proposed plugs will be demonstrated. (c)lUnless the commission otherwise requires or approves a variance under 20 AAC 25.112(1), t any well suspended under this section must be plugged in accordance with 20 AAC 25.112, except that the requirements of 20 AAC 25.112(d) do not apply if ~~ >I(1) a wellhead is installed or the well is capped with a mechanical device to seal the { ~. .~'~°~ opening; and 'C ~~2r ~(2)Ja bridge plug capped with 50 feet of cement or a continuous cement plug extending 200 feet within the interior casing string is placed at or above 300 feet below the surface. ~,, ~` (d)~The operator of a suspended well shall maintain the integrity and safety. of the well and surrounding location and clear the location in accordance with 20 AAC 25.170(a)(2) or (b) or with 20 AAC 25.172(c)(2) or (d), as applicable. A before shill (e) For well suspended }~ie~-te~ January 1, 2009, the operator inspect the well site before sh~cll September 30, 2010. For well initially suspended on or after January 1, 2009, the operator ~2 ~ inspect the well site within months after the date of suspension. For well suspended under this ~s~1, a I I befit section, subsequent inspections !tip be conducted within 24 months September 30 of every a not calendar year ending in 0 or 5, except that suspended well is required to undergo a subsequent inspection under this subsection~e-)• if the initial inspection under this subsection~e} occurred within the hccll prior 24-month period. For all inspections under this section, the operator provide the commission 1d e~ore notice at leastdays the inspection and the opportunity for commission inspectors to "= t 2 Register «~ , 0_ MISCELLANEOU~ARDS accompany the operator on the inspection tour. If convenient for the commission, shorter notice periods may be accepted. (f)~Within 30 days after any well-site inspection required under this section, including (e), (h), and (i) of this section, the operator file a Report of Sundry Well Operations (Form 10-404). The r+u~s~ report~~H include (1)~a description of the condition of the wellhead and surface location, including any discoloration, fluidor sheen visible on the ground or in any nearby water; (2)~a plat showing the location of the suspended well and any wells within aone-quarter- mile radius of the wellbore; eF (3)~well pressure readings, ~ practicable; ' n~ ~ ,l . (4)`photographs clearly showing the condition of the wellhead and surrounding location; ` and ~ ;: (5 ^an update of all information and documentation required in (b) of this section. (g ~A suspension or renewal of a suspension approved on or after January 1, 2009 is valid for 10 years from the date of approval. (h) Renewal of an existing suspension may be requested by the submission of an Application for Sundry Approvals (Form 10-403) meeting all requirements of (b) of this section. A renewal is not effective until approved by the commission. If a complete renewal application is submitted at least 60 befa--~ days the expiration of an existing suspension, t the existing suspension will continue until the l~~ re commission acts on the application. Within 24 months the submission of a request for suspension renewal, awell-site inspection must be completed. ba.Fe ~$. (i)~For wells suspended January 1, 2009, an Application for Sundry Approvals (Form 10- 403) requesting a suspension renewal under (h) of this section must be submitted 3 Register (~, Vovw~ ~ ~ MISCELLANEOUS~ARDS befnr~ (1) no later than December 31, 2010 for all wells suspended January 1, 2006; and (2) no later than December 31, 2015 for all wells suspended on or after January 1, 2006. A. $I' (j) The operator shall immediately notify the commission and propose appropriate action if the n ~ ~ operator learns that there is a reasonable risk that a suspended well is (1) mechanically unsound; (2) allowing the migration of fluids; (3)~ ausing damage to freshwater or producing or potentially producing ~ ~ ~ formations; (4) impairing the recovery of oil or gas; (5) a threat to public health or not secure or safe; or (6) not in compliance with all provisions of AS 31.05, and any order, stipulation, or permit ~A CW fia+~ ~ntaer C~ ~ oP -Fti+s section , issued by the commission. rthin working days a er notifying the commission, the operator shall file a A ~ report and all relevant information and documentation regarding the well, including all information and documentation that may be required by the commission. -~t°_: If the operator learns that any, information required under this section is i#o longer complete or f° . accurate, the operator shall, within 30 days, notify the commission in writing, provide updated information, and propose appropriate action. Cw~~ after ihz ~~z c~ At any time, the commission may request that an operator provide within 10 days the ,,~ . request any information concerning whether suspension remains appropriate for a well. If the operator ~ i n!ro r r~ac~-1-i ors does not comply with the information request or if the commission determines that is insufficient iix~to support allowing the well to remain suspended, the commission may take action ~- ' AAC 25.540, including (1) revoking the well's suspended status, effective as of the date determined by the n commission, and (2) prescribing actions the operator must take, which may include plugging and,,.._ #FuS ed~apter, abandonment of the well, ~ action is ordered, including plugging and abandonment under a 4 Register ~~~ , d~ 09 MISCELLANEOU~ARDS separate notice and hearing is not required notwithstanding any other provision of this chapter, including 20 AAC 25.105. ~ tits- wr~crl+=s:~~~n ~cu~ rnod~fc~. a.. Cn) `'-- ~Tpon written request of the operator, deadline~in this section .c:cu~t~issie~upon a showing of good cause. (Eff. 4/2/86, Register 97; am 11/7/99, Register 152; am ((/ 14 /ZO~Register~ f Authority: AS 31.05.03 AS 31.05.04 AS 31.05.095 # ~~~~ ~,. 5 Register 1 ~ Q , ~~ 0 ~ MISCELLANEOU~ARDS 20 AAC 25.300 is repealed and readopted to read: 20 AAC 25.300. Requests for information. Notwithstanding any other provision of this chapter, if the commission requests that a person provide information or documentation regarding a matter within the commission's jurisdiction, that person must provide that information and documentation within 30 days of the date the request was sent or within. another period of time specified by the commission. (Eff. 4/13/80, Register 74; am 4/2/86, Register 97; am ~. 11 /7/99, Register 152; am I ( / 19 /too Register l~ ~; ~`~` .~ Authority: AS 31.05.030 AS 31.05:040 S 31.05.095 '~'_ ~~' r. 1 . ~Z__°~ • • ORDER CERTIFYING THE CHANGES TO REGULATIONS OF ALASKA OIL AND GAS CONSERVATION COMMISSION The attached 6 pages of regulations, dealing with suspended wells and requests for. information under 20 AAC 25, are certified to be a correct copy of the regulation changes that the Alaska Oil and Gas Conservation Commission adopted at its August 27, 2008 meeting, under the authority of AS 31.05.030 and AS 31.05.040 and after complying with the Administrative Procedure Act (AS 44.62), specifically including the notice provisions (AS 44.62.190 and AS 44.62.200) and the opportunity for public comment provision (AS 44.62.210). This action is not expected to require an increased appropriation. On the record, in considering public comments, the Alaska Oil and Gas Conservation Commission paid special attention to the cost to private persons of the regulatory action being taken. The subject regulation changes take effect on the 30th day after they are filed by the lieutenant governor, as provided in AS 44.62.180. DATE: August 27, 2008 Anchorage ;, Dani . Seamount, Jr. Chair FILING CERTIFICATION Effective: N ~ y~~ (Z. ?~? o ~ Register: ~ S6 ~ ~~wvwry l.~of ~Q,1~oy~ M . (.~o.o Tr I, Sean Parnell, Lieutenant Governor for the State of Alaska, certify that on f ~C~ (,~c~~ ZO , 2008 at : 7- b .m., I filed the attached regulations according to the provisions of AS 44.62.040 - 44.62.120. a~ eutenant Governor ,S'uw ~ o.tv+.l~, :~~;_ .. • • FOR DELEGATION OF LIEUTENANT GOVERNOR'S AUTHORITY I, SEAN PARNELL, LIEUTENANT GOVERNOR OF THE STATE OF ALASKA, as authorized by AS 44.62.080, designate the following Special Assistant to the Lieutenant Governor to perform the Administrative Procedures Act filing functions of the Lieutenant Governor: Jason Hooley, Special Assistant, Office of the Lieutenant Governor `' Y:. ,a ;i,: ~~` , IN TESTIMONY WHEREOF, I have signed and affixed the Seal of the State of Alaska, at Anchorage, on July 31, 2007. SEAN PARNELL r LIEUTENANT GOVERNOR ~~~ • MEMORANDUM • State of Alaska Department of Law To: Daniel T. Seamount, Jr., Chair Alaska Oil and Gas Conservation Commission TELEPHONE NO.: FROM: Steven C. Weaver ~ ~ ~_~~` ;? SUBJECT: Assistant Attorney General Legislation/Regulations Section--Juneau onTE: October 15, 2008 ~ ~ '~ FILENO.: 993-08-0084 ~ ~ '~ i* ,~~~~ ~' 465-3600 Al~sk~ !I F; ~ ~ ,. ;H . ~ ; : aiv A~'.'Wi',,'~c~~; Regulations re: suspended wells and requests for information (20 AAC 25.110; 20 AAC 25.300) Under AS 44.62.060, we have reviewed the attached regulations changes by the Alaska Oil and Gas Conservation Commission, and approve the changes for filing by the lieutenant governor. I have reviewed this project under a specific delegation dated September 23, 2008 from the Regulations Attorney. A duplicate original of this memorandum is being furnished to the lieutenant governor, along with the six pages of regulations and the related documents. You might wish to contact the lieutenant governor's office to confirm the filing date and effective date of the attached regulation changes. The May 2, 2008 public notice and the August 27, 2008 certification order both state that this action is not expected to require an increased appropriation. Therefore, a fiscal note under AS 44.62.195 is not required. In accordance with AS 44.62.125(b)(6), some corrections have been made in the regulations, as shown on the attached copy. scw cc w/enc: Cazol Beecher, Special Assistant & Regulations Contact Depaztment of Administration ~ody Colombie, Special Assistant Alaska Oil & Gas Conservation Commission Alan Birnbaum Assistant Attorney General Oil, Gas & Mining Section--Anchorage Register , Z00q MISCELLANEOUS BOARDS 20 AAC 25.110 is repealed and readopted to read: 20 AAC 25.110~,tSuspended wells. (a)~If allowed under 20 AAC 25.105, an operator may apply i~ ~ to the commission under this section to approve the suspension of a well or to renew the approval of the suspension of a well ~,~ he operator must state the reasons the well should be suspended, and not completed or abandoned, and must demonstrate to the commission's satisfaction that (1) the well ~~. (A) is mechanically sound; (B) will not allow the migration of fluids; (C)~will not damage freshwater or producing or potentially producing formations; (D),will not impair the recovery of oil or gas; (E)~s secure, safe and not a threat to ublic health; and .~ ~r9y151~rts ~~F A5 '31,05, -1•kis .J~o,.p±,tr, at any orders sti pula~'~~•~ or ~zrtYv+ (F) is in compliance with all • and ;aue.~l. by -1.1cA. ea-~,ntiis5ivn~ (2) the well #' (A) has future utility as an exploratory, development, or service well; ~. ik (B~s a viable candidate for redrilling; or (C) is located on a pad or platform with active producing or service wells. (b~An Application for Sundry Approvals (Form 10-403) must be approved by the commission before operations to suspend a well commence, except that oral approval may be requested under 20 AAC 25.507(b). In addition to meeting the requirements of (a) of this section, the application must include the following: the well; (1)~` ellbore diagrams illustrating the current and proposed mechanical configurations of ~~ (2) information on abnormally geo-pressured or depleted strata; ands ~. Register 200°1 MISCELLANEOUS BOARDS (3)~ description of the proposed work plan, including how the integrity of existing and a proposed plugs will be demonstrated. (c)nUnless the commission otherwise requires or approves a variance under 20 AAC 25.112(1), any well suspended under this section must be plugged in accordance with 20 AAC 25.112, except that the requirements of 20 AAC 25.112(d) do not apply if ~~ °"'`R >I(1) a wellhead is installed or the well is capped with a mechanical device to seal the ~~ opening; and ~~ `'~''`~ ~(2) a bridge plug capped with 50 feet of cement or a continuous cement plug extending 1~t. ~ ~t 200 feet within the interior casing string is placed at or above 300 feet below the surface. (d)^he operator of a suspended well shall maintain the integrity and safety of the well and surrounding location and clear the location in accordance with 20 AAC 25.170(a)(2) or (b) or with 20 ~ AAC 25.172(c)(2) or (d), as applicable. A beforQ 3'h~U (e) For well suspended ~ie~-te January 1, 2009, the operator inspect the well site before ~, shall September 30, 2010. For ;well initially suspended on or after January 1, 2009, the operator inspect the well site within i2 months after the date of suspension. Fory well suspended under this Sh a t I befio ~, section, subsequent inspections be conducted within 24 months September 30 of every 0. na'1' calendar year ending in 0 or 5, except that suspended well is required to undergo a subsequent inspection under this subsection~e} if the initial inspection under this subsection~a) occurred within the hall prior 24-month period. For all inspections under this section, the operator provide the commission !U before notice at least days the inspection and the opportunity for commission inspectors to 2 Register 200_ MISCELLANEOUS BOARDS accompany the operator on the inspection tour. If convenient for the commission, shorter notice periods may be accepted. (f) Within 30 days after any well-site inspection required under this section, including (e), (h), }~ sH0.,11 and (i) of this section, the operator file a Report of Sundry Well Operations (Form 10-404). The r+u st report include (1)^a description of the condition of the wellhead and surface location, including any discoloration, fluidor sheen visible on the ground or in any nearby water; (2) a plat showing the location of the suspended well and any wells within aone-quarter- mile radius of the wellbore; .F (3)~well pressure readings, practicable; (4) photographs clearly showing the condition of the wellhead and surrounding location; n and (S~n update of all information and documentation required in (b) of this section. (g ^A suspension or renewal of a suspension approved on or after January 1, 2009 is valid for 10 years from the date of approval. (h) Renewal of an existing suspension may be requested by the submission of an Application for Sundry Approvals (Form 10-403) meeting all requirements of (b) of this section. A renewal is not effective until approved by the commission. If a complete renewal application is submitted at least 60 befar+2 days the expiration of an existing suspension, the existing suspension will continue until the b~fnre commission acts on the application. Within 24 months the submission of a request for suspension renewal, awell-site inspection must be completed. bxFor2 (i) For wells suspended~anuary 1, 2009, an Application for Sundry Approvals (Form 10- 403) requesting a suspension renewal under (h) of this section must be submitted 3 • Register 200 ~ MISCELLANEOUS BOARDS before (1)~ o later than December 31, 2010 for all wells suspended January 1, 2006; and A (2) no later than December 31, 2015 for all wells suspended on or after January 1, 2006. .~ (j) The operator shall immediately notify the commission and propose appropriate action if the ~ ~t operator learns that there is a reasonable risk that a suspended well is (1) mechanically unsound; (2)f qi ~ # allowing the migration of fluids; (3)~ausing damage to freshwater or producing or potentially producing ~ ~ 4~ formations; (4) impairing the recovery of oil or gas; (5) a threat to public health or not secure or safe; or ~~-hh i s c oyp erg (6)~ of in compliance with all provisions of AS 31.05, and any order, stipulation, or permit # q~ ~~ five under ~j) of -Phis s¢cfiion ~ issued by the commission. Within working days a e~~ r not~fymg the commission, the operator shall file a A n report and all relevant information and documentation regarding the well, including all information and documentation that may be required by the commission. If the operator learns that any information required under this section is no longer complete or accurate, the operator shall, within 30 days, notify the commission in writing, provide updated information, and propose appropriate action. after t~'t~. ~.~2 r~ Cw~) At any time, the commission may request that an operator provid~~within 10 days the request any information concerning whether suspension remains appropriate for a well. If the operator ~ ~inforrnoi-ion does not comply with the information request or if the commission determines that is insufficient iafe~~to support allowing the well to remain suspended, the commission may take action AAC 25.540, including n (1) revoking the well's suspended status, effective as of the date determined by the commission, and (2^prescribing actions the operator must take, which may include pluggin~as eh~ ter ~ P abandonment of the wel ,I~f action is ordered, including plugging and abandonment under`>I~ ~-~-51 a ~~ _co~ex. 4 • Register 2009 MISCELLANEOUS BOARDS separate notice and hearing is not required notwithstanding any other provision of this chapter, including 20 AAC 25.105. ~- ~+~-~> a~^^ ~. '"®d.{~ °'- Cn) Upon written request of the operator, deadline~in this section .cnuau~iss~ie~upon a showing of good cause. (Eff. 4/2/86, Register 97; am 11/7/99, Register 152; am `/_/_, Register ~ Authority: AS 31.05.03 AS 31.05.04 AS 31.05.095 • • Register 200°1 MISCELLANEOUS BOARDS 20 AAC 25.300 is repealed and readopted to read: 20 AAC 25.300. Requests for information. Notwithstanding any other provision of this chapter, if the commission requests that a person provide information or documentation regarding a matter within the commission's jurisdiction, that person must provide that information and documentation within 30 days of the date the request was sent or within another period of time specified by the commission. (Eff: 4/13/80, Register 74; am 4/2/86, Register 97; am •1t.~ ., 11 /7/99, Register 152; am / /_, Register ~ ~~, Authority: AS 31.05.030 AS 31.05.040 S 31.05.095 v STOF0330 • r #4ii470 $687.20 AFFIDAVIT OF PUBLICATION NOTICE OF PROPOSED CHANGES iN THE REGUTAT[ONS OE THE ALASKA OIL ANU GAS CONSERVATION COMMISSION STATE OF ALASKA THIRD JUDICIAL DISTRICT Shane Drew being first duly sworn on oath deposes and says that he/she is an representative of the Anchorage Daily News, a daily newspaper. That said newspaper has been approved by the Third Judicial Court, Anchorage, Alaska, and it now and has been published in the English language continually as a daily newspaper in Anchorage, Alaska, and it is now and during all said time was printed in an office maintained at the aforesaid place of publication of said newspaper. That the annexed is a copy of an advertisement as it was published in regular issues (and not in supplemental form) of said newspaper on 1Vday 2, 2®®~ and that such newspaper was regularly distributed to its subscribers during all of said period. That the full amount of the fee charged for the foregoing publication is not in excess of the rate charged private individuals. Signed~f ~`~n~e..~,,..3'~ Subscribed and sworn to before me this i t v day of ~~ 20~ ~' -, _ } rr ~~ ~ P ~'hira Div' ,G °° ~hol~g ~ MY C~rtMI5 ELI .®~~ A o ~ ~~ ~ { ~~°® l~~111))11 The Alaska OII and Gas Conservation Commission proposes to adopt reSUlatlon changes to Chapter 25 Of Title 20 of the Alaska Administrative Code, dealing with suspended wells, requests for information, variances from regulations, and. waivers of regulations, Including: 1. 2D AAC 25.110 is proposed to be fully revised (repealed and readopted). Provisions relating to the following are proposed to be amended' S. requirements for well sUSpensl0n approval; b. application for well suspension; c. work requirements applicable to suspended wells; and d. reporting requirements applicable to suspended weNs. Provisions relating to the following are proposed td be added: a. requirements for well suspension renewal approval; b. application for well suspension repewal; c. Inspection requirements for susppended wells; d. term of well suspension and well suspension renewal; e. well suspension renewal requirements generally; f. well suspension renewal regUiremerits for wells suspended prior to January 1, 2009; and g actions relating to suspended wells, Including grounds and procedures for terminating well suspension or well suspension renewal. 20 AAC 25.110(C), relating to Confldentiallty, is proposed to be repealed because confidentiality Is adequate )y covered by other provisions of law, including AS 31.05.035 and 20 AAC 25.537, 2. 20 AAC 25.300 Is proposed to be fully revised (repealed and readopted). a. clarifying and expanding the potential scope of the requested Informatiion and documentation; and b. requiring compliance within 30 days or another specified period of time. 3. 20 AAC 25.508 is proposed to be added: a. providing for variances from regulations. 4. 20 AAC 25.509 is proposed to he added: a. providing for waivers of regulations, You may comment on the proposed regulation changes, including the potential costs to pnvate persons Of complying with the proposed changes, by submltfing written comments to the Alaska OII and Gas Conservation Commission, at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. The comments must be received no later than 5:•00 p.m. on June 17, 2009. Written comments also may be submitted et a hearing to be held on June 17, 2008, at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. The hearing will be held from 9:00 a.m. to 10:00 a.m. and might be extended to accommodate those present before 9:30 a.m. who did not have an opportunity to comment. If you are a person with a disability who needs a special accommodation In order to participate in this process, please contact the COmmis510n's Special Assistant, Jody Colombia, ar. (907) 793-1221, 333 West 7th Avenue. Suite 100, Anchorage, Alaska 99501, Or Jody.colomble®alaska,gov, no later than June 5, 2008 at 5:00 p.m. to ensure that any necessary accommodatldns can be provided. For a copy of the pcoposed regulation changes; contact Jody Colombia, at (907) 793-1121, 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501, or go to yrw~ aoacc aaska xov. After the public comment period ends, the Alaska oil and Gas Conservation Commission well adopt these or other provisions dealing with the same sublIact, without further notice, or decide to take no action on them. the language oP the final regulations mayy be different from that of the proposed regulations. YOU SHOULD COMMENT bURING THE TIME ALLOWEC IF YOUR INTERESTS COULD BE AFFECTEC. Written comments rareived are public records and subject ±o public yAnthorlty: AS 31.05.030 AS 31.05.040 )icing Implemented, led. or Made Spec(Rc AS 31.05.030 AS 3t,D50.095 Fiscal Information; The proposed regulation changes are not expected to require an increased appropriation. DATE: OA/30(2008 /s/: Daniel T. Seamount Clair ADDFffONAL REGl1IATIONS NOTICE INFORMATION (AS 44.E+2.190(d)) 1. Adopting agency: Alaska Oil and Gas Conservation Commis+on (" Commisslon'7- 2 General sublects of regulations: suspended wells; requests for additional information; variances from regulations; and waivers of regulations. 3. G+.atlon of regulations: 20 AAC 25.110; 20 AAC 25.300; 20 AAC 25.508; and 20 0.4C 25.509. d Reason for the prgpeSed ariipn: Clarification and expar!SiOn Of ragUirPments relating to suspended wells; clarification and expanslen of potenrlal ;cops of, end requirements relating to, Commission Information and documentation requests, Including establichmenl of a defattlt deadline fpr complianre; and addlNon of provisions for approval of variances from and waivers Of regi~iaiivns. RDU!CpmpOnent affected: Alaska Otl and Gas Con Servati0n COmmlgSlpn, 6, GO5t of Implementation to the state agency: Zero. 7. Contartperson for the regulations: Name: Daniel T, Seamount, Jr. Title: Chair Address: 333 W. 7th Avenue, Suite 100, Anchorage, AK 99501 Telephone: (907)793-1221 E-mail: jody.colombi~alaska.gov s. origin of the proposed action: Alaska Oil and Gas Conservation Commission staff 9. Date: A.pril23.2008. 10. Prepared by: Jndy ). Colombia, is% SpeGlal Assistant Alaska 011 end Gas Conservation Commission (907)793-1221 Ap-02814D50 Published: May 2, 2008 ~ ~ ~ S/Si2(Al8 ~ Anchorage Daily News ' Affidavit of Publication 1001 Northway Drive. Anchorage, AK 99508 PRICE OTHER OTHER OTHER OTHER OTHER GRAND AD # DATE PO ACCOUNT PER DAY CHARGES CHARGES #2 CHARGES #3 CHARGES #4 CHARGES #5 TOTAL 475470 05/02/2008 02814050 STOF0330 $697.20 $69720 $0.00 $0.00 $0.00 $0.00 ~ $0.00 $697.20 STATE OF ALASKA THIRD JUDICIAL DISTRICT Angelina Benjamin, being first duly sworn on oath deposes and says that she is an advertising representative of the Anchorage Daily News, a daily newspaper. That said newspaper has been approved by the Third Judicial Court, Anchorage, Alaska, and it now and has been published in the English language continually as a daily newspaper in Anchorage, Alaska, and it is now and during all said time was printed in an office maintained at the aforesaid place of publication of said newspaper. That the annexed is a copy of an advertisement as it was published in regular issues (and not in supplemental form) of said newspaper on the above dates and that such newspaper was regularly distributed to its subscribers during all of said period. That the full amount of the fee charged for the foregoing publication is not in excess of the rate charged private individuals. Signed ~9~ Subscribed and sworn to me before this date: Notary Public in and for the State of Alaska. Third Division. Anchorage, Alaska ~ ~ V ~ ~ ,. :~ ,. PUBL~G .i r~+, ~ '1 NOTICE OF PROPOSEq CHANGES IN THE REGULATIONS OF THE ALASIGIOILANO GA$ ~ONSBRVATION COMMISSION The Alaska Oil and Gas Conservation Commission proposes to adopt regulation changes to Chapter 25 of Title 20 of the Alaska administrative Code, dealing with suspended wells, requests for information, variances from regulations, and waivers of regulations, including: 1. 20 AAC 25.110 is proposed to be fully revised (repealed and readopted). Provisions relating to the following are proposed to be amenoed: a. requirements fotwell suspension approval; b: application for well suspension; c. work requirements applicable to suspended wells; and d. reporting requrements applicable to suspended wells. Provisions relating to the following are proposed to be addetl: a. requirements for well suspension renewal approval; b. application for well suspension renewal; c. inspection requirements for suspended wells; d. term of well suspension and well suspensiorcrenewal; e: well suspension renewal requirements ggenerally; f. well suspension renewal requirements for wells suspended prior to Janlaary 1, 2009; and g. salons relahng to suspended wells, includinggrounds and procedures for terminating well suspension or well suspension renewal. -e 2D AAC 25:110(c), relating to confidentiality; is proposed to be repealed because confidentiality`is adequately covered by other provisions of law, includingAS 31.05:035 and 20 AAC 25:537. 2. 20 AAC 25.300 is proposed to be fuly revsed (repealed and readopted);' a: clarifying and expanding the potential scope of the requested :information and documentation; and i b. requiring compliance with)n 30 tlays or anotherspecified period of time: 3. 20 AAC 25.508 is proposed to be added: a. proviiing for variances from regulations. 4. 20 AAC 25.509 is proposed to be added: a: providing. for waivers of regulations. You may comment on the proposed regulation changes, including the potential costs to private persons of complying with. the proposed. changes, by submitting written comments to the Alaska Od and Gas Conservation Commission,,at333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. The=comments must be receivedno later than3:00 p.m: on tune 17, 2008: written comments also may be submitted at a hearing to be held on June 17, 2008, at 333 West 7th Avenue, Suite 100; Anchorage, Alaska 99501. The hearing will be held from 9:00 a:m. to 10:00 a.m. and might be extentled to accommotlate those present before 9:30 a.m. who did not have an opportunity to comment.. If you are a persoq with a disability who needs a special, accommodation in order to parhapate in thisprocess, please dontaa the Commission's Special Assistant, Jody Colombie, at (907) 793-1221, 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501, or jody.colombiedralaska.gov, no;later thanJUne 5,:2008 at 5:00 p.m. to ensure that any necessary accommodationscanbe provided. For a copy of the proposed regulation changes; Cpntact Jodyy Colombie,. at (907) 793-1121, 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501, or go to www.aogcc:alaska:aoV. After the publiccomment period ends, the Alaska Oil and Gas Conservation Commission will adopt these Ar otherprovislonsdea1ing with the same su~~ect, without further notice, or decide to take no action on them. The: language of the final regulations may be different from that of the proposed. regulations. YOU SHOULD COMMENT DURING THE TIME ALLOWED IF YOUR INTERESTS COULD BE' AFFECTED. Written comments received are public records and subject to public .,~~~, StatutoryAuthorlty: A5 31.05.030 AS 31.05.040 Statutes Being Implemented, Interpreted, or Made Specific: AS 31.05.030 AS 31.050.095 PtscallnformAtron: the proposed regulation changes arenot expectedto require an Increased appropriatign. DATE: 04/30/2008 [s/: Daniel T; Seamount Chair ADDITIONAL REGULATIONS NOTICEINFORMATION (AS 44.62.190(d)) 1. Adopting agency: Alaska Oil. and Gas Conservation Commission "Commission"). 2. General subjects of regulations: suspended wells requests for additional information; variances from regulations; and waivers of regulations. 3. Citation Of regulatonS! 20 AAC 25:110; 20 AAC 25.300; 20AAC 25.508; and 20 AAC;25.509: • r 4. Reason for tip proposed action`. clar(fication and expansion of re uirements relating to suspended wells; clarification and expansion of potential scope of, acid requirements relating to, Commission information and documentation requests, including establishment of a default deadline for compliance; and addition of provisions for approval of variances from and waivers of regulations, 5. RDU/component affected: Alaska Oil and Gas Conservation Commission. 6. Cost of implementation to the state agency: zero. 7. Contact person i for the regulations: Name: Daniel L Seamount, Jr.' Title: Chair Address: 333 W. 7th Avenue, Suite 100,. Anchorage, AK 99501 ' Telephone: (907) 793-1221 E-mail: jody.colombie~alaska.gov 8. Origin of the proposed action: Alaska oil and Gas Conservation Commission staff 9. Date: Aprit23, 2008. 10. Prepared by:, lodyJ. Colombie, /s/ Special Assistant - Alaska Oil and Gas Conservation Commission (907)793-1221 AO-021S94o50 NuTlccnl rnOrttracn r:llnr;r.rri u~t I Nr, itl;t;tllnlltrt~';tN 'Iltl', AIASt(A llil, ANI- r;AS C(IN61[R('A 1'll)N rUAtnIItiSH-N the nla;kA Oil artrl (jAS Cvns~rvAlinn f:ronmisintt tnnpv:n; to mfr?i)t +rS;t+lalinsr r r.ir ut?;es lu (,Ira )fnl )'• of 1 stir !0 nl the nla°,I~a . dmiuislr thve (';nrlr d^'alin{; with Ir ,r^rtrlr,rl tvrlls, trrlUCClr; Ir1r Ir11r11rt1AUrm, / 111 tn:C'. hn1I1 rqt III trt,>rtS, antl waiver ; of rePutatintr.;, intaudin{;: t. 70 AnC 7.'i. t to is uropo;erl Iv be fnlh~ reel';^d peer.;+Ierl and readnprert). 1`rovisivns rnrnlint; to the Iotivwinh ;ur' prnprlsrtrl ro br Antendr~d: ~. IctpriicmcrN- hrr wail s+r.^,i+rnsion ilrfnvv:rl; b. AI`I11icaUon for wall su,pensu)n; c. work requirmnents;applir.Ahle In arsix'n(Ierl well;; And d, repatMg rat)uhr.>ments aplslicable, Lo suspentkxl wells. Provisions rr..lAting In the k>Ilowing Are puslxssetl to be adrletl: A. rerprirentrnis fur well sospen Sion renewAl Approval; h. Anpliratirnt for well snsuertsivn renrwal; c inspt'ctivn tegniretnertls Ir~n susixvtdt•d weNS; d. term of well suspension soul wall cn~pen~inn renewAl; c. well snspr~nsinn renr,wal rcrprirr.nrrnls grurrr;tlly: t. welt snspen5ir>n tent`wal rrt)tthentents ti+r well; s:n;pen+ictl {xit+t Iv lanraly 1, 7(1(1'7: mul g. Achcrrrr, relating to Snsprnrlcd well^, including f;rotntd Aod procedurc^ fot tenninAling well suspension yr we.N 5u5)xf+r;rr»t tenwral. 711 MC 75.1 In(c), relalin{; to r;onfidrnlialily, i~; prnpr>sr±d In hn repeArr.d hrrnu':+) r.nniidmltiotity is Adr`+p1Aieiy rnvetetl by nNtet ptnvisions of IAw, incluCling AS 31.05.035 and 7(1 nAC 2!i.!ial. 2. 7.0 Mt; 7.5.300 is propo54d to hr` luny revised (tcpeAigd art±i teadrR)1ndT: a. clnr ilyinp, and erpantfinl; the ~+olctrlial scope of the rcrioeslr.(I ininnnabon And tktcnnu~ntaUrn,; and b. rr,UUiring rornplianut wiUtin 30 drays or Anotlret >pecified perio(I of time. 3. '7.11 AAC 7;, 5gft is lavposed In hn aclrl,~,P A. providing Ivr vAtiances hum tr.);ulAtiuns. A. 20 AnC 25.509 is proposed to br± Added; A. providing, for waivers of regulations. Yvu may rvnnnent on the proposed regulation r:hart(;eS, 6tc1(uliny, the pvlenHal costs u? private.persons of cumplynlf; with the proposed rhart(;es, by snhnutlin{; wrillmt Cornntenls lu lhR nla~ka Oil arfr,l (gas r~-t?;~~)'dlltrrfhe fnrnntenils rtm:Jthr WCSI /lh nvennc, ..nilr. ItlO, Mu:hrnnJ!r, Aln ;ka rrt:rlvetl no hl.er IhAn 5.00 p.nt, on unre 11, 70u8. Written crnnmenls also stay be snhmille(I AI a heAtinJ~ Iv ho helrl on Iu;tR 11, ~, 700A, Al 333 Wr_st 71h Avmnr^, Suif.e. 1(10, AnchorAyc, Alaska 49501 ~Ilu1 hn;rring ~~ will he Ucid Irr)m 4:00 a.m tv tOno a m. and ntil;ht btu r^xtendRd to acronmuxlaU: i those present before T.30 A nt. why did nut have an oppnlunity to ronnnrnt. It yon A+~ A person wills A dlsahillly why ncedr; A sp<)ciai arconnuudaUon in order fn +mlir,ipale In Ibis pox;rss, nleasc contar.l the r:vnttni:;ion's :pCCiAI Asislrnll, tot{y Cp10111bie, AI (9111) 143 1771, 3:1J Well /lh nVertne, Snllr, 10(1, AnrhorAl;e, AfaskA 49501, or )ody.cvlvnthie(~AlaskA.Qov, n<+ later 1.11art June 5, 20l-ft ttt S.Or) Ir.m. to ensure That stay neressAry Ar rnntrnorlarions can br, pruvide<I. ror A r_vpyy of the, proposed regulation changes, conlACl lady Colombie, AI (401) 743-1121, 333 Wrsl llh Avenue, Suite 100, NtdtorAg^, Alaska 94501, or go In www,~gl3c~,ala k?,gay. nflcr Ihe, publir, cnnnnent period rind>, the nlASka r)il curl Gas (:onservArinn (;vmmission will arlvpt these yr other pt ovisions dealing with Ilse same suh~ccl, i without. bother notice, yr decide ?v take no arUon ott Ihem the IAngnAye o~ the final regulAtions may be ditlvrnnl hom Uu)t nl lhn proposed regulalivns. YpU iIIOULD COMMT:NT 11121N(i Tlif: TIM(: AL101NF1) IF YOUR INJlatf$IS rOllll7 f3F AIT LrtE~. Wrill.en comments received are public teen+(Is An(I subjea;l tv ptA)lic inspection. StatuforyAuthorNy; AS3{J)!iA;Sts AS:11.05UA(1 ~laluu•s I1chrR Implr•otcnh•d, II11CYpYl'ICd, nr Dlndc Specl(Ic AS 3t.05.D:10 nS 31.O;,0.095 1'Iscnl hdnrn,nUr,,,: The, proposed rernlAlion clnnges arc net expecl.ed to require mt increASed appropriation. nn I r.~ nn/3t)i7onrl ' !s/: UAniel T. Semnount ...._.._...,_.._.r t;hait __.,,.__...,..~....__............_........~.._...,_~.._ ......___.. Al)1)1'I'I(1NAI,I1 1iG111.A1'If1NS N11'1'ICIi1NF(l1iMK17ON (AS 44.fiL.l!111(dll t, Adopting Agency' Alaska C1il and C;A ~ Consr-rvaliott Conuni>sion " ("rornrnission 1. 2. GenelAl snh~crls n1 tet;ulAlivtr; su;pendttd wrtils; rnquer,L; (ol Additlonnl inknutAlion; varl;utcr?s Item rel;ulalinn:; ;rod walvcr ; rrl u'f;nlalinn5, 3. CIIAlIOn Ctl rr:KrllallUns'. 2U nAC '75.1 I!Y 711 nor 2`.i.3r1(1; 7(1 M(: 2.'i.!i(Ift; And 20 nor r.,.so4. A. RcASOn for thr, protxlsed Action: clarific;tlivn and r,xpmisiorr of rr~(~(thenrcnts relating to sn~•pended wells; chni icalion and expansrnt n( potentiAl scope ol, And rer)uiuynt±nls relnlhtt, k1, Conrnussinn inlonnation And dar.umentatiat rrquesl~,, inchutinp, eslAhlishmrnl M A delAUlt deadline fur compliance; Anrl Additirnt ul provision; ivr AQp1 pV 11 Oi VA11Al1Cr',5 hr)In And waivers of rr..);nlations. 5. Iti)Ul(:ongxatenl. Ailotlerl; AIasY.a Ulf mrti GAs C,onsetvAtion t;Onflnissitttt. G. Cyst, of intplementallon to the state agency: zero. 1. Cvnfar.t person ivr the regulations: tdAnte: Danlei T. Seamvnnt, )r. liilr,: ChAh A(klress: 333 W. llh AvenuC, Suite 100, Anchor At;e, AK ')4'i01 Telr~phvlu?: (9071'1931"721 E-rnA1C wdy.rolombic~AlAkA.gov 8. origin of the prvpttsed Action: MaskA Uil antl GAS Cnnservalion rontmission sla(I 9, bate: April 23, 2008. 10. Prepared by: lady I Cnlvrnirir,, /s/ SpecrAl AssislAnl ' Alaska (tit And (iA C;QtIS(?IVA11011 (.vrnrI115SIQrr (vo1) 743-1721 no n2a1~o5o rublishetl: MAy 2, 2nfIR S j ~ ~~ • • AGENCY-ATTORNEY REVIEW MEMORANDUM CONFIDENTIAL X13 • MEMORANDUM STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION TO: Regulations Attorney DATE: August 27, 2008 Legislation/Regulations Section Department of Law SUBJECT: Request for Legal Review of Regulations Projects on Suspended Wells 20 AAC 25.110 and Requests for Information 20 AAC 25.300 993-08-0084 FROM: Daniel T. Seamount, Jr., Chair Regulations Contact Department of Administration ~_G~~ We are requesting approval of the attached final regulations on the following: 1) changes to the requirements for suspending, and the conditions governing the suspension of, wells; and 2) requests for information. These regulation changes were adopted by Alaska Oil and Gas Conservation Commission on August 27, 2008. Enclosed are the following documents: 1. original and one copy of the final regulations for the Department of Law's use; 2. original signed and dated certification order; 3. original public notice; 4. original additional regulations notice information form distributed with the notice; 5. original publisher's affidavit of publication; 6. original affidavit of notice; 7. original affidavit of oral hearing; 8. original affidavit of commission action; 9. excerpt from unapproved minutes from the August 27, 2008 meeting; 10. affidavit of notice of proposed adoption and furnishing of additional information. We worked with Assistant Attorney General Alan Birnbaum on these projects. Upon completing your review, please forward the regulations to the lieutenant governor for filing. In accordance with AS 44.62.180, the regulation changes'will take effect on the 30th day after filing. Register ~0_ MISCELLANEOUS~ARDS 20 AAC 25.110 is repealed and readopted to read: 20 AAC 25.110. Suspended wells. (a) If allowed under 20 AAC 25.105, an operator may apply to the commission under this section to approve the suspension of a well or to renew the approval of the suspension of a well. The operator must state the reasons the well should be suspended, and not completed or abandoned, and must demonstrate to the commission's satisfaction that (1) the well (A) is mechanically sound; (B) will not allow the migration of fluids; (C) will not damage freshwater or producing or potentially producing formations; (D) will not impair the recovery of oil or gas; (E) is secure, safe, and not a threat to public health; and (F) is in compliance with all laws, regulations, permits, and orders; and (2) the well (A) has future utility as an exploratory, development, or service well; (B) is a viable candidate for redrilling; or (C) is located on a pad or platform with active producing or service wells. (b) An Application for Sundry Approvals (Form 10-403) must be approved by the commission before operations to suspend a well commence, except that oral approval may be requested under 20 AAC 25.507(b). In addition to meeting the requirements of (a) of this section, the application must include the following: (1) wellbore diagrams illustrating the current and proposed mechanical conftgurations of the well; (2) information on abnormally geo-pressured or depleted strata; and Register ~0_ MISCELLANEOU~ARDS (3) a description of the proposed work plan, including how the integrity of existing and proposed plugs will be demonstrated. The operator shall comply with 20 AAC 25.070. (c) Unless the commission otherwise requires or approves a variance under 20 AAC 25.112(1), any welt suspended under this section must be plugged in accordance with 20 AAC 25.112, except that the requirements of 20 AAC 25.112(d) do not apply if (1) a wellhead is installed or the well is capped with a mechanical device to seal the opening; and (2) a bridge plug capped with 50 feet of cement or a continuous cement plug extending 200 feet within the interior casing string is placed at or above 300 feet below the surface. (d) The operator of a suspended well shall maintain the integrity and safety of the well and surrounding location and clear the location in accordance with 20 AAC 25.170(a)(2) or (b) or with 20 AAC 25.172(c)(2) or (d), as applicable. (e) For any well suspended prior to January 1, 2009, the operator must inspect the well site before September 30, 2010. For any well initially suspended on or after January 1, 2009, the operator must inspect the well site within twelve months after the date of suspension. For any well suspended under this section, subsequent inspections must be conducted within 24 months prior to September 30 of every calendar year ending in 0 or 5, except that no suspended well is required to undergo a subsequent inspection under this subsection (e) if the initial inspection under this subsection (e) occurred within the prior 24-month period. For all inspections under this section, the operator must provide the commission notice at least ten days prior to the inspection and the opportunity for commission inspectors to Register Z00_ MISCELLANEOU~ARDS accompany the operator on the inspection tour. If convenient for the commission, shorter notice periods may be accepted. (f) Within 30 days after any well-site inspection required under this section, including (e), (h), and (i) of this section, the operator must file a Report of Sundry Well Operations (Form 10-404). The report shall include (1) a description of the condition of the wellhead and surface location, including any discoloration, fluids(s) or sheens) visible on the ground or in any nearby water; (2) a plat showing the location of the suspended well and any wells within aone-quarter- mile radius of the wellbore; (3) well pressure readings, where practicable; (4) photographs clearly showing the condition of the wellhead and surrounding location; and (5) an update of all information and documentation required in (b) of this section. (g) A suspension or renewal of a suspension approved on or after January 1, 2009 is valid for 10 years from the date of approval. (h) Renewal of an existing suspension may be requested by the submission of an Application for Sundry Approvals (Form 10-403) meeting all requirements of (b) of this section. A renewal is not effective until approved by the commission. If a complete renewal application is submitted at least 60 days prior to the expiration of an existing suspension, then the existing suspension will continue until the commission acts on the application. Within 24 months prior to the submission of a request for suspension renewal, awell-site inspection must be completed. (i) For wells suspended prior to January i, 2009, an Application for Sundry Approvals (Form 10- 403) requesting a suspension renewal under (h) of this section must be submitted Register ''~'JO_ MISCELLANEOUS~vARDS (1) no later than December 31, 2010 for all wells suspended prior to January 1, 2006; and (2) no later than December 31, 2015 for all wells suspended on or after January 1, 2006. (j) The operator shall immediately notify the commission and propose appropriate action if the operator learns that there is a reasonable risk that a suspended well is (1) mechanically unsound; (2) allowing the migration of fluids; (3) causing damage to freshwater or producing or potentially producing formations; (4) impairing the recovery of oil or gas; (5) a threat to public health or not secure or safe; or (6) not in compliance with all provisions of AS 31.05, 20 AAC 25, and any order, stipulation, or permit issued by the commission. Within 5 working days after notifying the commission, the operator shall file a report and all relevant information and documentation regarding the well, including all information and documentation that may be required by the commission. (k) If the operator learns that any information required under this section is no longer complete or accurate, the operator shall, within 30 days, notify the commission in writing, provide updated information, and propose appropriate action. (1) At any time, the commission may request that an operator provide (within 10 days of the request) any information concerning whether suspension remains appropriate for a well. If the operator does not comply with the information request or if the commission determines that there is insufficient information to support allowing the well to remain suspended, the commission may take action under 20 AAC 25.540, including (1) revoking the well's suspended status, effective as of the date determined by the commission, and (2) prescribing actions the operator must take, which may include plugging and abandonment of the well. If action is ordered, including plugging and abandonment under 20 AAC 25, a Register "~00_ MISCELLANEOU~OARDS separate notice and hearing is not required notwithstanding any other provision of this chapter, including 20 AAC 25.105. (m) Upon written request of the operator, any deadlines in this section may be amended by the commission upon a showing of good cause. (Eff. 4/2/86, Register 97; am 11/7/99, Register 152; am _/_/_, Register _) Authority: AS 31.05.030 AS 31.05.040 AS 31.05.095 Register ~0_ MISCELLANEOU~ARDS 20 AAC 25.110 is repealed and readopted to read: 20 AAC 25.110. Suspended wells. (a) If allowed under 20 AAC 25.105, an operator may apply to the commission under this section to approve the suspension of a well or to renew the approval of the suspension of a well. The operator must state the reasons the well should be suspended, and not completed or abandoned, and must demonstrate to the commission's satisfaction that (1) the well (A) is mechanically sound; (B) will not allow the migration of fluids; (C) will not damage freshwater or producing or potentially producing formations; (D) will not impair the recovery of oil or gas; (E) is secure, safe, and not a threat to public health; and (F) is in compliance with all laws, regulations, permits, and orders; and (2) the well (A) has future utility as an exploratory, development, or service well; (B) is a viable candidate for redrilling; or (C) is located on a pad or platform with active producing or service wells. (b) An Application for Sundry Approvals (Form 10-403) must be approved by the commission before operations to suspend a well commence, except that oral approval may be requested under 20 AAC 25.507(b). In addition to meeting the requirements of (a) of this section, the application must include the following: (1) wellbore diagrams illustrating the current and proposed mechanical configurations of the well; (2) information on abnormally geo-pressured or depleted strata; and Register ~'JO_ MISCELLANEOU~ARDS (3) a description of the proposed work plan, including how the integrity of existing and proposed plugs will be demonstrated. The operator shall comply with 20 AAC 25.070. (c) Unless the commission otherwise requires or approves a variance under 20 AAC 25.112(1), any well suspended under this section must be plugged in accordance with 20 AAC 25.112, except that the requirements of 20 AAC 25.112(d) do not apply if (1) a wellhead is installed or the well is capped with a mechanical device to seal the opening; and (2) a bridge plug capped with 50 feet of cement or a continuous cement plug extending 200 feet within the interior casing string is placed at or above 300 feet below the surface. (d) The operator of a suspended well shall maintain the integrity and safety of the well and surrounding location and clear the location in accordance with 20 AAC 25.170(a)(2) or (b) or with 20 AAC 25.172(c)(2) or (d), as applicable. (e) For any well suspended prior to January 1, 2009, the operator must inspect the well site before September 30, 2010. For any well initially suspended on or after January 1, 2009, the operator must inspect the well site within twelve months after the date of suspension. For any well suspended under this section, subsequent inspections must be conducted within 24 months prior to September 30 of every calendar year ending in 0 or 5, except that no suspended well is required to undergo a subsequent inspection under this subsection (e) if the initial inspection under this subsection (e) occurred within the prior 24-month period. For all inspections under this section, the operator must provide the commission notice at least ten days prior to the inspection and the opportunity for commission inspectors to Register ~00_ MISCELLANEOU~OARDS accompany the operator on the inspection tour. If convenient for the commission, shorter notice periods may be accepted. (f) Within 30 days after any well-site inspection required under this section, including (e), (h), and (i) of this section, the operator must file a Report of Sundry Well Operations (Form 10-404). The report shall include (1) a description of the condition of the wellhead and surface location, including any discoloration, fluids(s) or sheens) visible on the ground or in any nearby water; (2) a plat showing the location of the suspended welt and any wells within aone-quarter- mile radius of the wellbore; (3) well pressure readings, where practicable; (4) photographs clearly showing the condition of the wellhead and surrounding location; and (5) an update of all information and documentation required in (b) of this section. (g) A suspension or renewal of a suspension approved on or after January 1, 2009 is valid for 10 years from the date of approval. (h) Renewal of an existing suspension may be requested by the submission of an Application for Sundry Approvals (Form 10-403) meeting all requirements of (b) of this section. A renewal is not effective until approved by the commission. If a complete renewal application is submitted at least 60 days prior to the expiration of an existing suspension, then the existing suspension will continue until the commission acts on the application. Within 24 months prior to the submission of a request for suspension renewal, awell-site inspection must be completed. (i) For wells suspended prior to January i, 2009, an Application for Sundry Approvals (Form 10- 403) requesting a suspension renewal under (h) of this section must be submitted Register ~0_ MISCELLANEOU~OARDS (1) no later than December 31, 2010 for all wells suspended prior to January 1, 2006; and (2) no later than December 31, 2015 for all wells suspended on or after January 1, 2006. (j) The operator shall immediately notify the commission and propose appropriate action if the operator learns that there is a reasonable risk that a suspended well is (1) mechanically unsound; (2) allowing the migration of fluids; (3) causing damage to freshwater or producing or potentially producing formations; (4) impairing the recovery of oil or gas; (5) a threat to public health or not secure or safe; or (6) not in compliance with all provisions of AS 31.05, 20 AAC 25, and any order, stipulation, or permit issued by the commission. Within 5 working days after notifying the commission, the operator shall file a report and all relevant information and documentation regarding the well, including all information and documentation that may be required by the commission. (k) If the operator learns that any information required under this section is no longer complete or accurate, the operator shall, within 30 days, notify the commission in writing, provide updated information, and propose appropriate action. (1) At any time, the commission may request that an operator provide (within 10 days of the request) any information concerning whether suspension remains appropriate for a well. If the operator does not comply with the information request or if the commission determines that there is insufficient information to support allowing the well to remain suspended, the commission may take action under 20 AAC 25.540, including (1) revoking the well's suspended status, effective as of the date determined by the commission, and (2) prescribing actions the operator must take, which may include plugging and abandonment of the well. If action is ordered, including plugging and abandonment under 20 AAC 25, a Register ~0_ MISCELLANEOU~OARDS separate notice and hearing is not required notwithstanding any other provision of this chapter, including 20 AAC 25.105. (m) Upon written request of the operator, any deadlines in this section may be amended by the commission upon a showing of good cause. (Eff. 4/2/86, Register 97; am 11/7/99, Register 152; am /_, Register ~ Authority: AS 31.05.030 AS 31.05.040 AS 31.05.095 Register ~0 MISCELLANEOU~OARDS 20 AAC 25.300 is repealed and readopted to read: 20 AAC 25.300. Requests for information. Notwithstanding any other provision of this chapter, if the commission requests that a person provide information or documentation regarding a matter within the commission's jurisdiction, that person must provide that information within 30 days of the date the request was sent or within another period of time specified by the commission. (Eff. 4/13/80, Register 74; am 4/2/86, Register 97; am 11/7/99, Register 152; am / / ,Register ~ Authority: AS 31.05.030 AS 31.05.040 AS 31.05.095 Register "d0_ MISCELLANEOUS~ARDS 20 AAC 25.300 is repealed and readopted to read: 20 AAC 25.300. Requests for information. Notwithstanding any other provision of this chapter, if the commission requests that a person provide information or documentation regarding a matter within the commission's jurisdiction, that person must provide that information and documentation within 30 days of the date the request was sent or within another period of time specified by the commission. (Eff. 4/13/80, Register 74; am 4/2/86, Register 97; am 11/7/99, Register 152; am _/ / ,Register ~ Authority: AS 31.05.030 AS 31.05.040 AS 31.05.095 • COMMISSION The attached 6 pages of regulations, dealing with suspended wells and requests for information under 20 AAC 25, are certified to be a correct copy of the regulation changes that the Alaska Oil and Gas Conservation Commission adopted at its August 27, 2008 meeting, under the authority of AS 31.05.030 and AS 31.05.040 and after complying with the Administrative Procedure Act (AS 44.62), specifically including the notice provisions (AS 44.62.190 and AS 44.62.200) and the opportunity for public comment provision (AS 44.62.210). This action is not expected to require an increased appropriation. On the record, in considering public comments, the Alaska Oil and Gas Conservation Commission paid special attention to the cost to private persons of the regulatory action being taken. The subject regulation changes take effect on the 30th day after they are filed by the lieutenant governor, as provided in AS 44.62.180. DATE: August 27, 2008 Anchorage Danie . Seamount, Jr. Chair FILING CERTIFICATION I, Sean Parnell, Lieutenant Governor for the State of Alaska, certify that on 2008 at provisions of AS 44.62.040 - 44.62.120. .m., I filed the attached regulations according to the Lieutenant Governor Effective: ORDER CERTIFYING THE CHANGES TO REGULATIONS OF ALASKA OIL AND GAS CONSERVATION Register: • • NOTICE OF PROPOSED CHANGES 1N THE REGULATIONS OF THE ALASKA OIL AND GAS CONSERVATION COMMISSION The Alaska Oil and Gas Conservation Commission proposes to adopt regulation changes to Chapter 25 of Title 20 of the Alaska Administrative Code, dealing with suspended wells, requests for information, variances from regulations, and waivers of regulations, including: 20 AAC 25.110 is proposed to be fully revised (repealed and readopted). Provisions relating to the following are proposed to be amended: a. requirements for well suspension approval; b. application for well suspension; c. work requirements applicable to suspended wells; and d. reporting requirements applicable to suspended wells. Provisions relating to the following are proposed to be added: a. requirements for well suspension renewal approval; b. application for well suspension renewal; c. inspection requirements for suspended wells; d. term of well suspension and well suspension renewal; e. well suspension renewal requirements generally; f. well suspension renewal requirements for wells suspended prior to January 1, 2009; and g. actions relating to suspended wells, including grounds and procedures for terminating well suspension or well suspension renewal. 20 AAC 25.110(c), relating to confidentiality, is proposed to be repealed because confidentiality is adequately covered by other provisions of law, including AS 31.05.035 and 20 AAC 25.537. 2. 20 AAC 25.300 is proposed to be fully revised (repealed and readopted): a. clarifying and expanding the potential scope of the requested information and documentation; and b. requiring compliance within 30 days or another specified period of time. 20 AAC 25.508 is proposed to be added: a. providing for variances from regulations. 4. 20 AAC 25.509 is proposed to be added: a. providing for waivers of regulations. You may comment on the proposed regulation changes, including the potential costs to private persons of complying with the proposed changes, by submitting written comments to the Alaska Oil and Gas Conservation Commission, at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. The comments must be received no later than 5:00 p.m. on June 17, 2008. Written comments also may be submitted at a hearing to be held on June 17, 2008, at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. The hearing will be held from 9:00 a.m. to 10:00 a.m. and might be extended to accommodate those present before 9:30 a.m. who did not have an opportunity to comment. If you are a person with a disability who needs a special accommodation in order to participate in this process, please contact the Commission's Special Assistant, Jody Colombie, at (907) 793- 1221, 333 West 7t" Avenue, Suite 100, Anchorage, Alaska 99501, or jody.colombie@alaska.gov, no later than June 5, 2008 at 5:00 p.m. to ensure that any necessary accommodations can be provided. For a copy of the proposed regulation changes, contact Jody Colombie, at (907) 793-1121, 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501, or go to www.aogcc.alaska.~ov. After the public comment period ends, the Alaska Oil and Gas Conservation Commission will adopt these or other provisions dealing with the same subject, without further notice, or decide to take no action on them. The language of the final regulations may be different from that of the proposed regulations. YOU SHOULD COMMENT DURING THE TIME ALLOWED IF YOUR INTERESTS COULD BE AFFECTED. Written comments received are public records and subject to public inspection. Statutory Authority: AS 31.05.030 AS 31.05.040 Statutes Being Implemented, Interpreted, or Made Specific: AS 31.05.030 AS 31.050.095 Fiscal Information: The proposed regulation changes are not expected to require an increased appropriation. DATE: 3~ Daniel T. Seamount Chair • • ADDITIONAL REGULATIONS NOTICE INFORMATION (AS 44.62.190(d)) 1. Adopting agency: Alaska Oil and Gas Conservation Commission ("Commission"). 2. General subjects of regulations: suspended wells; requests for additional information; variances from regulations; and waivers of regulations. 3. Citation of regulations: 20 AAC 25.110; 20 AAC 25.300; 20 AAC 25.508; and 20 AAC 25.509. 4. Reason for the proposed action: clarification and expansion of requirements relating to suspended wells; clarification and expansion of potential scope of, and requirements relating to, Commission information and documentation requests, including establishment of a default deadline for compliance; and addition of provisions for approval of variances from and waivers of regulations. 5. RDU/component affected: Alaska Oil and Gas Conservation Commission. 6. Cost of implementation to the state agency: zero. 7. Contact person for the regulations: Name: Daniel T. Seamount, Jr. Title: Chair Address: 333 W. 7`" Avenue, Suite 100, Anchorage, AK 99501 Telephone: (907) 793-1221 E-mail: jody.colombie@alaska.gov 8. Origin of the proposed action: Alaska Oil and Gas Conservation Commission staff. 9. Date: Apri123 10. Prepared by: Alaska Oil and Gas Conservation Commission (907) 793-1221 • • Anchorage Daily News 5r5/loos Affidavit of Publication ]001 Northway Drive. Anchorage. AK 99508 PRICE OTHER OTHER OTHER OTHER OTHER GRAND AD # DATE PO ACCOUNT PER DAY CHARGES CHARGES #2 CHARGES #3 CHARGES #4 CHARGES #5 TOTAL 475470 05/02/2008 02814050 STOF0330 $697.20 $697.20 $0.00 $0.00 $0.00 $0.00 • $0.00 $697.20 STATE OF ALASKA THIRD JUDICIAL DISTRICT Angelina Benjamin, being first duly sworn on oath deposes and says that she is an advertising representative of the Anchorage Daily News, a daily newspaper. That said newspaper has been approved by the Third Judicial Court, Anchorage, Alaska, and it now and has been published in the English language continually as a daily newspaper in Anchorage, Alaska, and it is now and during all said time was printed in an office maintained at the aforesaid place of publication of said newspaper. 'That the annexed is a copy of an advertisement as it was published in regular issues (and not in supplemental form) of said newspaper on the above dates and that such newspaper was regularly distributed to its subscribers during all of said period. That the full amount of the fee charged for the foregoing publication is not in excess of the rate charged private individuals. Signed Subscribed and sworn to me before this date: Notary Public in and for the State of Alaska. Third Division. Anchorage, Alaska ~ MY ~`p, ~~5~D .rr ~., ~pTARy• '~ V • ~~~ ~_ !~I ;~ ~ v „~ J ~ ~. 1 J NOTICE OF PROPOSED CHANGES IN THE. REGULATIONS OF THE ALASIUI OIL AND GAS CONSERVATION COMMISSION The Alaska Oil and Gas Conservation Commission proposes to addpt regulation 'changes to Chapter 25 of Title 20 of the Alaska Administrative Code, dea6rig with suspended wells, requests for information, variances from regulations, and waivers of regulations, including: 1. 20 AAC 25.110 is proposed to be fully revised (repealed and readopted). Provisions relating to the following are proposed to be amended: a. requirements for well suspension approval; b application for well suspension; ' c. work requirements applicable to suspended wells; and d. reporting requirements applicable to suspended wells. Provisions relating to the following are proposed to be added: a. requirements for well suspension renewal approval; ~ b. application for well suspension renewal; c inspection requirements for suspended wells; d. term of well suspension and well suspension renewal; e. well suspension renewal requirements ggenerally; f. well suspension renewal requirements fog wells suspended prior to Januaryl, 2009; and g. actions relating to suspended wells, including grounds and procedures for terminating well suspension or well suspension renewal. 20 AAC 25.110(c), relating to confidentiality, is proposed to be repealed, because confidentiality is adequately covered by other provisions of law, including AS 31,05.035 and 20 AAC 25.537. 2. 20 AAC 25.300 is proposed to be fully revised (repealed and readopted): a clarifying and expanding the potential scope of the requested information and documentation; and b. requiring compliance within 30 days or another specified period of time. 3. 20 AAC 25.508 isproposed to be added: a. providing for variances from regulatJOns. a. 20 AAC 25.509 is proposed to beadded: a. providing for waivers of regulations. you may comment on the proposed regulation changes, including the potential costs to private persons of complying with the proposed changes, by submlttirig written commentstothe Alaska Oil and Gas Conservation Commisslon, at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. the comments must be received no later than 5:00 p.m. on June 17, 2008. - Written comments also may be submitted at a hearing to be held on June 17, 2008, at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. The hearing will be held from 9:00 a.m. to 10:00 a.m. and might be extended to accommodate those present before 9:30 a.m. who did not have an opportunity to comment. tf you are a person with a disability who needs a special accommodation in order [o aruapate m this process, please contact the Commission's Special Assistant, Jody Colombie; at (907) 793-1221, 333 West 7th Avenue, SUite 100, Anchorage, Alaska 99501, or jody.colombie~alaska.gov, no later than Junes,-2008 at 5:00 p.m. to ensure that any necessary accommodations can be provided. For a copy of the proposed regulation changes, contact Jody Colombie, at (907) 793-1121, 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501, or go to www aoacc alaska.>?ov. After the public comment period ends, the Alaska Oil and Gas Conservation Commission will adopt these or other provisions dealing with the same subject, without further notice, or decide to take no action on them. The language of the final regulations may be different from that of the proposed regulations. YOU SHOULD COMMENT DURING THE TIME ALLOWED IF YOUR INTERESTS COULD BE AFFECTED. Written comments received are public records and subject to public inspection. Statutory Authority: AS 31.05.030 AS 31.05.040 ' Statutes Being Implemented, ' Interpreted, or Made Specific: AS 3105.030 AS 31.050.095 Fiscal Information: The proposed regulation changes are not expected to requve an increased appropriation. DATE: 04/30/2008 Ys,~: Davie! T. 5eameunt Chair ADDIT[ONALREGULATIONSNOTICEINFORMATION (AS 44.62.I90(dU 1. Adopting agency: Alaska Oi6and Gas Conservation Commission ("Commission"). 12. General subjects of regulations: suspended wells; requests for additional information; variances from regulations; and waivers of regulations. 3. Citation of regulations' 20 AAC 25 110; 20 AAC 25.300; 20 AAC 25.508; and 20 AAC 25.509. 4: Reason#o~the - proposed action: clarification and expansion of requirements relating to suspended wells; clarification and expansion of p6tential scope of, and requirements relating to, Commission information. and documentation requests, including establishment of a default deadline for compliance; and addition of provisions for approval of variances from and waivers of regulations. 5. RDU/component affected: Alaska Oil and Gas Conservation Commission. 6. Cost of implementation to the state agency: zero. 7. Contact person for the regulations: 'Name: Daniel T. Seamount, Jr. Title: Chair Address: 333 W. 7th Avenue, Suite 100, Anchorage, AK 99501 Telephone: (907) 793-1221 E-mail: jody.colombie~alaska.gov 8. Origin of the proposed action: Alaska Oil and Gas Conservation Commission staff 9. Date: April 23, 2008. 10. Prepared by Jody 1. Colombie, /s/ Special Assistant Alaska Oil and Gas Conservation Commission (907) 793-1221 AO-02814050 ~ ~ STATE OF ALASKA ) ss. THIRD JUDICIAL DISTRICT ) AFFIDAVIT OF ORAL HEARING I, Jody J. Colombie, Special Assistant to the Alaska Oil and Gas Conservation Commission, being sworn, state the following: On August 27, 2008, at 9:00 a.m., at 333 West 7~' Avenue, Suite 100, Anchorage, Alaska, a public hearing presided over by Daniel T. Seamount, Jr., Chair, was held in accordance with AS 44.62.210 for the purpose of voting on the adoption of changes to 20 AAC 25.110, dealing with suspended wells, and 20 AAC 25.300, dealing with requests for information. DATE: August 27, 2008 Anchorage Jody .Col b' Special Assistant to the Commission SUBSCRIBED AND SWORN TO before me this 27th day of August, 2008. ~ ~~~ ~ otary Public in and r the State of Alaska My commission expires: 11 / 11 /2010 STATE OF ALASKA ) ss. THIRD JUDICIAL DISTRICT ) AFFIDAVIT OF COMMISSION ACTION I, Jody J. Colombie, Special Assistant to the Alaska Oil and Gas Conservation Commission, being sworn, state the following: The attached motion, dealing with suspended wells and requests for information regulation changes, was passed by the Alaska Oil and Gas Conservation Commission during its August 27, 2008 meeting. Date: August 27.2008 Anchorage Jody Colo bi Specia Assis ant o the Commission SUBSCRIBED AND SWORN TO before me this 27th day of August 2008. No Public in and f he State of Alaska My commission expires: 11/11/2010 ~ ~ ALASKA OIL AND GAS CONSERVATION COMMISSION MEETING August 27, 2008 Unapproved Minutes Commissioner John K. Norman moved and Commissioner Cathy P. Foerster seconded the following motion: "I move to adopt the attached draft amendment to 20 AAC 25.110." The motion carried unanimously. Commissioner Cathy P. Foerster moved and Commissioner John K. Norman seconded the following motion: "I move to adopt the attached draft amendment to 20 AAC 25.300." The motion carried unanimously. ~ ~ STATE OF ALASKA ) ss. THIRD JUDICIAL DISTRICT ) AFFIDAVIT OF NOTICE OF PROPOSED ADOPTION OF REGULATIONS AND FURNISHING OF ADDITIONAL INFORMATION I, Jody J. Colombie, Special Assistant to the Alaska Oil and Gas Conservation Commission, being sworn, state the following: As required by AS 44.62.190, notice of the proposed adoption of changes to 20 AAC 25.110, dealing with suspended wells, and 20 AAC 25.300, dealing with requests for information, was given by being (1) published in a newspaper or trade publication; (2) furnished to interested persons as shown on the attached list; (3) furnished to appropriate state officials; (4) furnished to the Department of Law, along with a copy of the proposed regulations; (5) electronically transmitted to incumbent State of Alaska legislators; (6) furnished to the Legislative Affairs Agency, Legislative Library; (7) posted on the Alaska Online Public Notice System, as required by AS 44.62.175 (a)(1) and (b) and 44.62.190(a)(1); (8) furnished electronically, along with a copy of the proposed regulations, to the Legislative Affairs Agency, the chairs of the Senate Resources Committee and House Special Committee of Oil and Gas, the Administrative Regulation Review Committee, and the Legislative Council. As required by AS 44.62.190(d), additional regulations notice information regarding the proposed adoption of the regulation changes described above was furnished to interested persons as shown on the attached list and those in (5) and (6) of the list above. The additional regulations notice information was posted on the Alaska Online Public Notice System. DATE: August 27, 2008 Anchorage Jody Col b Spec 1 As 'st to the Commission SUBSCRIBED AND SWORN TO before met is 27th day of August 2008. f y/G i. /' ~L l ~ ota~y Public in ana-for the State of Alaska My commission expires: 11/11/2010 r agc i vi ~ Colombie, Jody J (DOA) From: Colombie, Jody J (DOA) Sent: Thursday, May 01, 2008 9:30 AM Subject: Notice of Hearing -Proposed Regulations Attachments: 20 AAC 25.100.pdf; Notice of Hearing Regulations.pdf; 20 AAC 25.509.pdf; 20 ACC 25.508.pdf; 20 AAC 25.300.pdf BCC:Birnbaum, Alan J (LAW); Crisp, John H (DOA); Davies, Stephen F (DOA); Fleckenstein, Robert J (DOA); Foerster, Catherine P (DOA); Grimaldi, Louis R (DOA); Johnson, Elaine M (DOA); Jones, Jeffery B (DOA); Laasch, Linda K (DOA); Mahnken, Christine R (DOA); Maunder, Thomas E (DOA); McIver, C (DOA); McMains, Stephen E (DOA); Noble, Robert C (DOA); Norman, John K (DOA); Okland, Howard D (DOA); Paladijczuk, Tracie L (DOA); Pasqual, Maria (DOA); Regg, James B (DOA); Roby, David S (DOA); Saltmarsh, Arthur C (DOA); Scheve, Charles M (DOA); Seamount, Dan T (DOA); Smith, Chasity R (DOA); Williamson, Mary J (DOA); David Johnson; 'Kara, Danny T'; 'Leslie Adams'; Randy Hicks; 'Aleutians East Borough'; 'Anna Raff ; Arion, Teri A (DNR); 'Arthur Copoulos'; 'Barbara F Fullmer'; 'bbritch'; 'Bill Walker'; 'Brad McKim'; 'Brandon Gagnon'; 'Brian Gillespie'; 'Brian Havelock'; 'Brit Lively'; 'Bruce Webb'; 'buonoje'; 'Cammy Taylor'; 'Cande.Brandow'; 'carol smyth'; 'Cary Carrigan'; caunderwood@marathonoil.com; 'Charles O'Donnell'; 'Chris Gay'; 'Christian Gou-Leonhardt'; 'Cliff Posey'; 'Dan Bross'; 'dapa'; 'Daryl J. Kleppin'; 'David Brown'; 'David Hall'; David House; 'David L Boelens'; 'David Steingreaber'; 'ddonkel'; 'Deanna Gamble'; 'Deborah J. Jones'; 'doug_schultze'; 'Eric Lidji '; 'Evan Harness'; 'eyancy'; 'foms2@mtaonline.net ; 'Francis S. Sommer'; 'Fred Steece'; 'Garland Robinson'; 'Gary Laughlin'; 'Gary Rogers'; 'Gary Schultz'; 'ghammons ; 'Gordon Pospisil'; Gould, Greg M (DEC); 'Gregg Nady'; 'gregory micallef; 'gspfoff; 'Hank Alford ; 'Harry Engel'; 'jah ; 'James Scherr'; 'Janet D. Platt'; 'jejones'; 'Jerry McCutcheon'; 'Jim Arlington'; 'Jim White'; 'Jim Winegarner'; 'Joe Nicks'; 'John Garing'; 'John S. Haworth'; 'John Spain'; 'John Tower'; 'John W Katz'; johnny.aiken@north-slope.org; 'Jon Goltz'; 'Julie Houle'; 'Kari Moriarty'; 'Kaynell Zeman'; 'Keith Wiles'; knelson@petroleumnews.com; 'Krissell Crandall'; 'Kristin Dirks'; 'Laura Silliphant'; 'Lois'; 'Lynnda Kahn'; 'mail=akpratts@acsalaska.net ; 'mail=fours@mtaonline.net'; 'Marilyn Crockett'; 'Mark Dalton'; 'Mark Hanley'; 'Mark Kovac'; 'Mark P. Worcester'; 'Marquerite kremer'; 'marty'r 'Matt Rader'; 'Meghan Powell'; 'Mike Bill'; 'Mike Mason'; 'Mikel Schultz'; 'Mindy Lewis'; 'MJ Loveland'; 'mjnelson'; 'mkm7200'; 'Nick W. Glover'; NSK Problem Well Supv; NSU, ADW Well Integrity Engineer; 'Patty Alfaro'; 'Paul Decker'; 'Paul Winslow'; Pierce, Sandra M (DNR); 'Randall Kanady ; 'Randy L. Skillern'; 'rcrotty'; Rice, Cody J (DNR); 'rmclean'; 'Rob McWhorter '; rob.g.dragnich@exxonmobil.com; 'Robert Campbell'; 'Robert Fowler'; 'Robert Province'; 'Roger Belman'; 'Rudy Brueggeman'; 'Scott Cranswick'; 'Shannon Donnelly'; 'Shannaine Copeland'; 'Sondra Stewman'; 'Sonja Frankllin'; 'Stan Porhola'; 'stanekj ; 'Steve Lambert'; 'Steve Moothart'; 'Steven R. Rossberg'; 'tablerk ; 'Tamera Sheffield'; 'Temple Davidson'; 'Terrie Hubble'; 'Tim Lawlor'; 'Todd Durkee'; Tony Hopfinger; 'trmjrl'; 'Walter Featherly'; 'Walter Quay'; 'Wayne Rancier'; 'Dale Hoffman'; Fridiric Grenier; Joseph Longo; Maurizio Grandi; Tom Gennings; Buch, Bob (LAA); Bunde, Con (LAA); Chenault, Mike (LAA); Cissna, Sharon (LAA); Coghill, John (LAA); Cowdery, John (LAA); Crawford, Harry (LAA); Dahlstrom, Nancy (LAA); Davis, Bettye J (LAA); Doll, Andrea (LAA); Doogan, Mike (LAA); Dyson, Fred (LAA); Edgmon, Bryce E (LAA); Ellis, Johnny (LAA); Elton, Kim S (LAA); Fairclough, Anna (LAA); 'Foster, Richard'; French, Hollis (LAA); Gara, Les (LAA); Gardner, Berta (LAA); Gatto, Carl (LAA); Green, Lyda N (LAA); G-ruenberg, P~Iax F (LAA); Guttenberg, David (LAA); Harris, John (LAA); Hawker, P~iike (LAA); Hoffman, Lyman F (LAA); Holmes, Lindsey (LAA); Huggins, Charlie (LAA); Johansen, Kyle B (LAA); Johnson, Craig W (LAA); Joule, Reggie (LAA); Kawasaki, Scott Jw (LAA); Keller, Wes (LAA); Kelly, Mike (LAA); Kerttula, Beth (LAA); Kookesh, Albert (LAA); Ledoux, Gabrielle R 5/1/2008 • ragc~~i~ (LAA); Lynn, Bob (LAA); McGuire, Lesil L (LAA); Meyer, Kevin G (LAA); Nelson, Mary (LAA); Neuman, Mark A (LAA); Olson, Donny (LAA); Olson, Kurt E (LAA); Ramras, Jay B (LAA); Roses, Bob (LAA); Salmon, Woodie W (LAA); Samuels, Ralph (LAA); Seaton, Paul (LAA); Stedman, Bert K (LAA); Stevens, Gary L (LAA); Stoltze, Bill (LAA); Therriault, Gene (LAA); Thomas, Bill (LAA); Thomas, Joe (LAA); Wagoner, Tom (LAA); Wielechowski, Bill (LAA); Wilken, Gary R (LAA); Wilson, Peggy A (LAA) Attachments:20 AAC 25.100.pdf;Notice of Hearing Regulations.pdf;20 AAC 25.509.pdf;20 ACC 25.508.pdf;20 AAC 25.300.pdf; 5/1/2008 • Mary Jones David McCaleb Cindi Walker XTO Energy, Inc. IHS Energy Group Tesoro Refining and Marketing Co. Cartography GEPS Supply & Distribution 810 Houston Street, Ste 2000 5333 Westheimer, Ste 100 300 Concord Plaza Drive Ft. Worth, TX 76102-6298 Houston, TX 77056 San Antonio, TX 78216 George Vaught, Jr. Jerry Hodgden Richard Neahring PO Box 13557 Hodgden Oil Company NRG Associates Denver, CO 80201-3557 408 18th Street President Golden, CO 80401-2433 PO Box 1655 Colorado Springs, CO 80901 John Levorsen Michael Parks Mark Wedman 200 North 3rd Street, #1202 Marple's Business Newsletter Halliburton Boise, ID 83702 117 West Mercer St, Ste 200 6900 Arctic Blvd. Seattle, WA 98119-3960 Anchorage, AK 99502 Baker Oil Tools Schlumberger Ciri 4730 Business Park Btvd., #44 Drilling and Measurements Land Department Anchorage, AK 99503 2525 Gambell Street #400 PO Box 93330 Anchorage, AK 99503 Anchorage, AK 99503 Ivan Gillian Jill Schneider Gordon Severson 9649 Musket Bell Cr.#5 US Geological Survey 3201 Westmar Cr. Anchorage, AK 99507 4200 University Dr. Anchorage, AK 99508-4336 Anchorage, AK 99508 Jack Hakkila Darwin Waldsmith James Gibbs PO Box 190083 PO Box 39309 PO Box 1597 Anchorage, AK 99519 Ninilchick, AK 99639 Soldotna, AK 99669 Kenai National Wildlife Refuge Penny Vadla Richard Wagner Refuge Manager 399 West Riverview Avenue PO Box 60868 PO Box 2139 Soldotna, AK 99669-7714 Fairbanks, AK 99706 Soldotna, AK 99669-2139 Cliff Burglin Bernie Karl North Slope Borough PO Box 70131 K&K Recycling Inc. PO Box 69 Fairbanks, AK 99707 PO Box 58055 Barrow, AK 99723 Fairbanks, AK 99711 Williams Thomas Arctic Slope Regional Corporation Land Department PO Box 129 Barrow, AK 99723 /1l'Qi/r/ S/~~ ~ ~ SERVICE LIST FOR PROPOSED AMENDMENTS TO 20 AAC 25.110 On Apri122, 2008, the public notice of proposed amendments to 20 AAC 25.110, Additional Regulations Notice Information, and proposed regulation were mailed to: Annette Kreitzer Commissioner Department of Administration PO Box 110200 Juneau, AK 99811 Legislative Reference Library Legislative Affairs Agency State Capitol Juneau, AK 99801 Mail Stop: 3101 Senator Charlie Huggins, Chair Senate Resources State Capitol Juneau, Alaska 99801 Representative Kurt Olson, Chair House Oil & Gas Special Committee State Capitol Juneau, Alaska 99801 Senator Lesil McGuire, Chair Administrative Regulation Review State Capitol Juneau, Alaska 99801 Senator John Cowdery, Chair Legislative Council State Capitol Juneau, Alaska 99801 On Apri122, 2008, the public notice of proposed amendments to 20 AAC 25.110, Additional Regulations Notice Information, and proposed regulation were mailed to: Debra Behr Chief Assistant Attorney General Legislation and Regulations Section Department of La`aI PO Box 110300 Juneau, AK 99811 12 Colombie, Jody J (DOA) Page 1 of 1 From: Colombie, Jody J (DOA) Sent: Monday, January 07, 2008 9:33 AM To: 'Dan Donkel' Subject: RE: Third Notice, Additional Regulations Notice Information and Regulation of 1-3-08 Mr. Donkel: In summary, these regulations cover requirements for inactive wells that have not been properly plugged and abandoned. (One example is exploratory wells that are expected to have future utility during the next exploratory season or the development of a discovery.) In our modifications, we are clarifying the wording in the existing regulations so that there is less likelihood to misinterpret -and therefore not follow -the intent of our requirements. Jody Colombie Special Assistant From: Dan Donkel [mailto:ddonkel@cfl.rr.com] Sent: Thursday, January 03, 2008 3:42 PM To: Colombie, Jody J (DOA) Subject: Re: Third Notice, Additional Regulations Notice Information and Regulation of 1-3-08 Dear AOGCC Why are you doing this now ?What is the intent and what is the rational? Daniel K. Donkel ----- Original Message ----- From: Colombie Jody J._(DOA) Sent: Thursday, January 03, 2008 7:25 PM Subject: Third Notice, Additional Regulations Notice Information and Regulation of 1-3-08 1 /7/2008 Colombie, Jody J (DOA) From: Foerster, Catherine P (DOA) Sent: Friday, January 04, 2008 3:17 PM To: Seamount, Dan T (DOA); Norman, John K (DOA); Colombie, Jody J (DOA) Subject: FW: Fourth Notice of Hearing, Additional Information, Proposed Regulation Page 1 of 1 From: Foerster, Catherine P (DOA) Sent: Friday, January 04, 2008 3:17 PM To: Wielechowski, Bill (L.AA) Subject: FW: Fourth Notice of Hearing, Additional Information, Proposed Regulation Senator Wielechowski, I will be happy to answer any questions you or your staff have concerning the proposed regulation modifications. In summary, these regulations cover requirements for inactive wells that have not been properly plugged and abandoned. (One example is exploratory wells that are expected to have future utility during the next exploratory season or the development of a discovery.) In our modifications, we are clarifying the wording in the existing regulations so that there is less likelihood to misinterpret -and therefore not follow -the intent of our requirements. Please call me if you have further questions. From: Colombie, Jody J (DOA) Sent: Friday, January 04, 2008 3:08 PM To: Foerster, Catherine P (DOA) Subject: FW: Fourth Notice of Hearing, Additional Information, Proposed Regulation From: Sen. Bill Wielechowski [mailto:Senator_Bill_Wielechowski@legis.state.ak.us] Sent: Friday, January 04, 2008 2:15 PM To: Colombie, Jody J (DOA) Subject: RE: Fourth Notice of Hearing, Additional Information, Proposed Regulation Jody, Can you or someone briefly explain what this proposed regulation does. Thank you. Bill Wielechowski From: Colombie, Jody J (DOA) [jody.colombie@alaska.gov] Sent: Friday, January 04, 2008 1:03 PM Subject: Fourth Notice of Hearing, Additional Information, Proposed Regulation I apologize for the inconvenience but the Third Notice that you received yesterday lacked the clarification statement for the proposed amendment. Jody Colombie 1/4/2008 Page 1 of 1 s ~ Colombie, Jody J (DOA) From: Kara Moriarty [moriarty@aoga.org] Sent: Friday, December 28, 2007 11:29 AM To: Colombie, Jody J (DOA) Cc: Crockett@aoga.org Subject: Need Additional 30 days Jody: I've heard back from a few of our members and unfortunately, the same reason still applies -there are just too many that will be gone for extended holidays the first two weeks of January and we are not going to be able to get comments ready in the most appropriate format by Jan. 15 and do need the additional 30 days. We appreciate your accommodation to this request -especially since it takes additional time for the paperwork/process to make this happen. Kara Kara Moriarty Deputy Director Alaska Oil and Gas Association 907-272-1481 Cell: 907-351-1116 moriarty@aoga.org Alaska Oil 8~ Gas Association Confidentiality Notice: This electronic transmission and any attached documents or other writings are intended only for the person or entity to which it is addressed and may contain information that is privileged, confidential or otherwise protected from disclosure. If you have received this communication in error, please immediately notify sender by return e- mail and destroy the communication. Any disclosure, copying, distribution or the taking of any action concerning the contents of this communication or any attachments by anyone other than the named recipient is strictly prohibited. 12/28/2007 Page 1 of 1 Colombie, Jody J (DOA) From: Kara Moriarty [moriarty@aoga.org] Sent: Thursday, December 27, 2007 4:23 PM To: Colombie, Jody J (DOA) Subject: RE: aio2b-24 KRU Jody I have not heard back yet from some of my group...which tells me they could be on vacation so I don't have a good answer for you to let you know if we'll be ready by the 15th with our written comments on the suspended well regulations. I will let you know for sure tomorrow -I'll give them another day to get back to me. Kara Kara Moriarty Deputy Director Alaska Oil and Gas Association 907-272-1481 Cell: 907-351-1116 moriarty@aoga.org Alaska Oil & Gas Association Confidentiality Notice: This electronic transmission and any attached documents or other writings are intended only for the person or entity to which it is addressed and may contain information that is privileged, confidential or otherwise protected from disclosure. If you have received this communication in error, please immediately notify sender by return e- mail and destroy the communication. Any disclosure, copying, distribution or the taking of any action concerning the contents of this communication or any attachments by anyone other than the named recipient is strictly prohibited. From: Colombie, Jody J (DOA) [mailto:jody.colombie@alaska.gov] Sent: Thursday, December 27, 2007 4:20 PM Subject: aio2b-24 KRU 12/28/2007 Colombie, Jody J (DOA) Page 1 of 1 From: Kara Moriarty [moriarty@aoga.org] Sent: Thursday, December 20, 2007 4:02 PM To: Colombie, Jody J (DOA) Cc: Crockett@aoga.org; sheffield@aoga.org Subject: Request for 30-day extension Jody As we discussed at the meeting today at the AOGCC office, AOGA is respectfully requesting an extension of the public comment period for another 30 days for the proposed suspended well regulations. The written comments are scheduled to be due on January 8, 2008, but with holiday and vacation schedules, it will be difficult for AOGA to submit full comments by that date. We look forward to the granting of this extension. If you have any questions or need further information, please do not hesitate to contact me. Thanks, Kara Kara Moriarty Deputy Director Alaska Oil and Gas Association 907-272-1481 Cell: 907-351-1116 moriarty@aoga.org Alaska Oil & Gas Association Confidentiality Notice: This electronic transmission and any attached documents or other writings are intended only for the person or entity to which it is addressed and may contain information that is privileged, confidential or otherwise protected from disclosure. If you have received this communication in error, please immediately notify sender by return e- mail and destroy the communication. Any disclosure, copying, distribution or the taking of any action concerning the contents of this communication or any attachments by anyone other than the named recipient is strictly prohibited. ~~,~~;.-ate ~~'/ ~~- ~/a ~ 12/24/2007 ~~~ • ~ INTERNAL DOCUMENT DATED AUGUST 27, 2008 HELD CONFIDENTIAL Register ~0_ MISCELLANEOUS~ARDS Draft 8/27/2008 20 AAC 25.110 is repealed and readopted to read: 20 AAC 25.110. Suspended wells. (a) If allowed under 20 AAC 25.105, an operator may apply to the commission under this section to approve the suspension of a well or to renew the approval of the suspension of a well. The operator must state the reasons the well should be suspended, and not completed or abandoned, and must demonstrate to the commission's satisfaction that (1) the well (A) is mechanically sound; (B) will not allow the migration of fluids; (C) will not damage freshwater or producing or potentially producing formations; (D) will not impair the recovery of oil or gas; (E) is secure, safe, and not a threat to public health; and (F) is in compliance with all laws, regulations, permits, and orders; and (2) the well (A) has future utility as an exploratory, development, or service well; (B) is a viable candidate for redrilling; or (C) is located on a pad or platform with active producing or service wells. (b) An Application for Sundry Approvals (Form 10-403) must be approved by the commission before operations to suspend a well commence, except that oral approval may be requested under 20 AAC 25.507(b). 1n addition to meeting the requirements of (a) of this section, the application must include the following: (1) wellbore diagrams illustrating the current and proposed mechanical configurations of the well; (2) information on abnormally geo-pressured or depleted strata; and Register ~0_ MISCELLANEOUS~OARDS Draft 8/27/2008 (3) a description of the proposed work plan, including how the integrity of existing and proposed plugs will be demonstrated. The operator shall comply with 20 AAC 25.070. (c) Unless the commission otherwise requires or approves a variance under 20 AAC 25.112(1), any well suspended under this section must be plugged in accordance with 20 AAC 25.112, except that the requirements of 20 AAC 25.112(d) do not apply if (1) a wellhead is installed or the well is capped with a mechanical device to seal the opening; and (2) a bridge plug capped with 50 feet of cement or a continuous cement plug extending 200 feet within the interior casing string is placed at or above 300 feet below the surface. (d) The operator of a suspended well shall maintain the integrity and safety of the well and surrounding location and clear the location in accordance with 20 AAC 25.170(a)(2) or (b) or with 20 AAC 25.172(c)(2) or (d), as applicable. (e) For any well suspended prior to January 1, 2009, the operator must inspect the well site before September 30, 2010. For any well initially suspended on or after January 1, 2009, the operator must inspect the well site within twelve months after the date of suspension. For any well suspended under this section, subsequent inspections must be conducted within 24 months prior to September 30 of every calendar year ending in 0 or 5, except that no suspended well is required to undergo a subsequent inspection under this subsection (e) if the initial inspection under this subsection (e) occurred within the prior 24-month period. For all inspections under this section, the operator must provide the commission notice at least ten days prior to the inspection and the opportunity for commission inspectors to 2 Register 700_ MISCELLANEOUS~OARDS Draft 8/27/2008 accompany the operator on the inspection tour. If convenient for the commission, shorter notice periods may be accepted. (f) Within 30 days after any well-site inspection required under this section, including (e), (h), and (i) of this section, the operator must file a Report of Sundry Well Operations (Form 10-404). The report shall include (1) a description of the condition of the wellhead and surface location, including any discoloration, fluids(s) or sheens) visible on the ground or in any nearby water; (2) a plat showing the location of the suspended well and any wells within aone-quarter- mile radius of the wellbore; (3) well pressure readings, where practicable; (4) photographs clearly showing the condition of the wellhead and surrounding location; and (5) an update of all information and documentation required in (b) of this section. (g) A suspension or renewal of a suspension approved on or after January 1, 2009 is valid for 10 years from the date of approval. (h) Renewal of an existing suspension may be requested by the submission of an Application for Sundry Approvals (Form 10-403) meeting all requirements of (b) of this section. A renewal is not effective until approved by the commission. If a complete renewal application is submitted at least 60 days prior to the expiration of an existing suspension, then the existing suspension will continue until the commission acts on the application. Within 24 months prior to the submission of a request for suspension renewal, awell-site inspection must be completed. (i) For wells suspended prior to January 1, 2009, an Application for Sundry Approvals (Form 10- 403) requesting a suspension renewal under (h) of this section must be submitted Register ~0_ MISCELLANEOU~OARDS Draft 8/27/2008 (1) no later than December 31, 2010 for all wells suspended prior to January 1, 2006; and (2) no later than December 31, 2015 for all wells suspended on or after January 1, 2006. (j) The operator shall immediately notify the commission and propose appropriate action if the operator learns that there is a reasonable risk that a suspended well is (1) mechanically unsound; (2) allowing the migration of fluids; (3) causing damage to freshwater or producing or potentially producing formations; (4) impairing the recovery of oil or gas; (5) a threat to public health or not secure or safe; or (6) not in compliance with all provisions of AS 31.05, 20 AAC 25, and any order, stipulation, or permit issued by the commission. Within 5 working days after notifying the commission, the operator shall file a report and all relevant information and documentation regarding the well, including all information and documentation that may be required by the commission. (k) If the operator learns that any information required under this section is no longer complete or accurate, the operator shall, within 30 days, notify the commission in writing, provide updated information, and propose appropriate action. (1) At any time, the commission may request that an operator provide (within 10 days of the request) any information concerning whether suspension remains appropriate for a well. If the operator does not comply with the information request or if the commission determines that there is insufficient information to support allowing the well to remain suspended, the commission may take action under 20 AAC 25.540, including (1) revoking the well's suspended status, effective as of the date determined by the commission, and (2) prescribing actions the operator must take, which may include plugging and abandonment of the well. If action is ordered, including plugging and abandonment under 20 AAC 25, a 4 Register Z00_ MISCELLANEOUS~OARDS Draft 8/27/2008 separate notice and hearing is not required notwithstanding any other provision of this chapter, including 20 AAC 25.105. (m) Upon written request of the operator, any deadlines in this section may be amended by the commission upon a showing of good cause. (Eff. 4/2/86, Register 97; am 11/7/99, Register 152; am /_/_, Register ) Authority: AS 31.05.030 AS 31.05.040 AS 31.05.095 5 Register ~00_ MISCELLANEOUS~OARDS Draft 8/27/08 20 AAC 25.300 is repealed and readopted to read: 20 AAC 25.300. Requests for information. Notwithstanding any other provision of this chapter, if the commission requests that a person provide information or documentation regarding a matter within the commission's jurisdiction, that person must provide that information within 30 days of the date the request was sent or within another period of time specified by the commission. (Eff. 4/13/80, Register 74; am 4/2/86, Register 97; am 11/7/99, Register 152; am _/_/_, Register ~ Authority: AS 31.05.030 AS 31.05.040 AS 31.05.095 Date: 8/27/08 SUSPENDED WELLS REGULATIONS -RESPONSE TO COMMENTS1 Proposed Subsec.2 Alaska Oil and Gas Association ("AOGA") ConocoPhillips Alaska, Inc. ("CPAI") Alaska Oil and Gas Conservation Commission ("Commission") Response (a) 1. "If allowed under" should not be 1. CPAI objects to the removal of the AOGA (1) /CPAI (2) -The comments are adopted. changed to "[u]nless abandonment is criteria for determining when a well required." should be suspended: "there needs to be AOGA (2) /CPAI (1), (3) -Criteria identifying when clarifications of standards for when a suspension is appropriate are adopted. In response to 2. Retain the criteria in 20 AAC well can be suspended." Also, CPAI the Commission's question whether AOGA 25.110(a): "the current regulations objects to making such determinations considered the replacement of "will" with "may" in contain specific reasons and criteria for subject "to the commission's the existing regulations, AOGA responded: "our the Commission to use when granting satisfaction." main concern was ...that there be some basis of suspended well status. The proposed criteria in the regulation that the Commission would changes lose clarity by removing those 2. "If allowed under" should not be base the suspension upon." The phrase "to the requirements and criteria and providing changed to "[u]nless abandonment is commission's satisfaction" is retained to make clear no guidance for the circumstances under required." that a determination that any criterion is not met which suspended well status may be receives the highest level of deference. Also, granted." 3. CPAI "understands that the retaining the phrase is consistent with the existing commission does not wish to be regulations, which provide that "the commission will a. AOGA is concerned with the phrases involved `paying quantities' ...approve the suspension of a well if ...the "health, safety and the environment" calculations, as the existing subsection operator justifies to the commission's satisfaction and "by ensuring, among other things." 110(a) requires, but the commission is why the well should not be abandoned, and, if the Shorten (a)(1) to "the well." otherwise amenable to continuing to well is not completed, why the well should not be ~ On January 7, 2008, proposed revisions to 20 AAC 25.110 were publicly noticed. A hearing was held on February 28, 2008. The proposed revisions were amended, and the amended proposed revisions were publicly noticed on Apri130, 2008, and the subject of a public hearing on June 17, 2008. (The February 2008 comments are identified by numbers; the June 2008 comments are identified by letters.) Although responses to the February 2008 comments are included, to the extent the February 2008 comments were not included in the June 2008 comments, the Commission understands that they were addressed in the amended proposed revisions or dropped; those comments, therefore, are deemed withdrawn. 2 The subsections without brackets are the June 17, 2008, proposed revisions. The brackets indicate the corresponding February 27, 2008, subsections. Date: 8-27-08 have standards for suspension of a completed ...." The "paying quantities" criterion well." was deleted because this issue is decided by the Alaska Department of Natural Resources, not the a. Replace "among other things" with Commission, and the proposed regulations include 20 "subject to all other requirements of AS AAC 25.110(a)(2)(A) (stating "has future utility as 31.05." an exploratory, development, or service well"). AOGA (a) / CPAI (a) -Subsections (a), (g), and (1) identify when suspension is appropriate; subsections (b) and (h)-(i) identify the circumstances under which suspension will be approved; subsection (c) identifies the requirements for suspending a well; and subsections (d)-(f) and (j)-(1) identify the ongoing requirements for a well to remain in suspended status. Also, the requirement that a suspended well be "safe" and not pose a "threat to public health" is now a separate criterion consistent with AS 31.05.030(e)(1) (providing that the "commission may regulate ... to the extent not in conflict with regulation by the Department of Labor and Workforce Development and the Department of Environmental Conservation, for public health and safety purposes"). 1. Delete the reference to 20 AAC None AOGA (1) -Unless, prior to suspension, an operator 25.507(b), and include specific is violating legal requirements, anon-suspended well language, such as that in 20 AAC is part of an approved program or activity with 25.105(b)(2) because a "decision to respect to which suspending the well will be a suspend a well may not necessarily be a substantive change. Regardless, the reference to 20 change to an approved program, such as AAC 25.507(b) makes clear that operators may referenced in 20 AAC 25.507(b)." request oral approval to commence operations to suspend a well by satisfying the 20 AAC 25.507(b) Date: 8-27-08 a. Change "[t]he application must requirements. Also, adding the suggested language is include all information and contrary to the Commission's interest in using cross- documentation relating to whether references to make the regulations more uniform and suspension is appropriate under (a) of concise. this section and must specifically include the following" to "[i]n addition AOGA (a) -The comment is adopted. to meeting the requirements of (a) of this section, the application must • include." (c) 1. The reference to 20 AAC 1. The reference to 20 AAC AOGA (1) /CPAI (1) -The reference to 20 AAC 25.112(c)(1) "should be broadened to 25.112(c)(1) should be changed to 20 25.ll2(c)(1) is broadened to 20 AAC 25.112; account for uncased sections of the well AAC 25.112(c). exceptions to 20 AAC 25.112(d) are included, and bore, such as the requirements of 20 the applicability of 20 AAC 25.112(1) is expressly AAC 25.112, minus the provision of noted. subsection (d)." AOGA (a) -The phrase "unless the commission a. Add the phrase "unless otherwise otherwise requires or approves a variance under 20 authorized by the commission." AAC 25.112(1)" is added. b. Delete the reference to 20 AAC AOGA (b) -The comment is adopted. 25.070. (d) None None (e)/[(f) - 1. "The requirement for a suspended 1. "CPAI suggests that 48 hours notice AOGA (1)-(2) -Only one suspension-related well- (g)] well inspection within 12 months could should suffice for inspection of a site inspection is required during the first year after a result in the Commission being called to suspended wellbore located on a pad or well is suspended. The 12-month period for sites multiple times in the first year to platform with active producing or subsequent inspections is changed to 24 months prior witness setting and verifying plugs, site service wells." to September 30 of every year ending in 0 or 5. Also, Date: 8-27-08 clearance and to satisfy this an exception is added: a subsequent inspection is not requirement." Require that subsequent 2. "CPAI supports the commission's required if the initial inspection occurred within the inspections occur within 12 months proposal to add ...proposed new prior 24-month period. Under subsection (e), wells prior to or after January 1 of every year subsection (g) as long as the proposed suspended between January 1, 2009, and September ending in 0 or 5. suspended well standards are included 29, 2013, must be inspected twice before September in subsection (a)." 30, 2015; wells suspended between September 30, 2. So that wells suspended in 2008 or 2013, and September 29, 2015, must be inspected 2009 do not require a subsequent once in that period. Under subsections (e) and (i), • inspection in 2010, AOGA wells suspended before January 1, 2006, must be "recommend[s] that the first cycle of inspected twice before September 30, 2015; wells five year inspections ...begin in 2015." suspended on or after January 1, 2006, but before January 1, 2009, must be inspected two or three times 3. For wells suspended before January before September 30, 2015, depending on when the 2005, AOGA recommends a 2-year operator elects to submit a suspension renewal initial inspection and reapplication application. There was no response to the period. "Most sites are best visited observation that "one overall factor that the during summer months. Depending Commission ... is required to consider in changing upon when the regulations become or promulgating new regulations is cost of effective, the planning and logistics compliance .... [A]s you go through the testimony . required may be difficult during the first ..when you use the terms less efficient, multiple year." visits, et cetera, if you intend to say and this will increase the cost then it would he helpful to have you 4. Add "a provision for an alternative specifically indicate so we can determine if we are, in schedule as authorized by the fact, imposing greater costs on operators ...." commission." AOGA (3) -There is a 21-month period (covering 5. "There is no recognition of possible two summers) for the initial inspection of wells offshore suspended wells (25.105(c))." suspended before January 2009. Under subsection (i), a suspension renewal application must be 6. Only 48-hours notice should be submitted within 2 years after January 1, 2009, for required: the 10-day notice wells suspended before January 2006, and within 7 Date: 8-27-08 "requirement could hamper efficient years for wells suspended between 2006 and 2009. planning of field activities and reduce flexibility to take advantage of AOGA (4)-(7) /CPAI (1) -Subsection (m) provides opportunities to combine the inspection that, upon written request by the operator, any 20 visits with other work;" a 48-hour AAC 25.110 deadline may be amended upon a requirement "would be consistent with showing of good cause. AOGA does not explain the proposed Safety Valve System why the absence of an express "recognition" of regulations;" and work planned 10 days possible offshore suspended wells is significant; nor • ahead "could be potentially postponed is the Commission aware of why the proposed due to weather ... or work and revisions are impractical with respect to such wells. equipment may be diverted to other high priority work and therefore we'd lose AOGA (6)-(7) /CPAI (1) - A default, 10-day notice opportunity to do the work planned 10 requirement is necessary given the substantial days earlier." competing demands on the Commission's few field inspectors. Shorter notice periods may be accepted if 7. Provide flexibility in inspections to the timing of the proposed inspection is convenient allow for unpredictable conditions. for the Commission. Inspections can be postponed because of weather or other events. As Mr. Harry Engel testified on behalf of AOGA at the June 2008 hearing: "My experience is that the Commission Staff in the filed have been very flexible in being able to meet notices like that [i. e., 48-hour or 72-hour notices,] and if they couldn't they would ask if there could be other arrangements made to accommodate an inspection at a different time ... to meet their schedule, so there is flexibility on the Commission's Staff " CPAI (2) -See the responses to AOGA (2) /CPAI (1), (3); and to AOGA (a)-(b) /CPAI (a). Date: 8-27-08 (f)/[(h)] ~ None (g)/[(e)] 1. Delete the phrase "or until the reason for granting the suspension is no longer valid, whichever is earlier," and add a notice provision: "Upon notification from the Commission that one or more of the reasons for suspension may no r longer be valid the operator has 60 days to present a plan to address the Commission's concerns." "It is important to be able to clearly identify when, for purposes of enforcement, the Commission considers a reason to be no longer valid such as notice from the Commission. Without clear identification of when a reason is no longer valid operators risk being out of compliance with the regulation ...even if they might otherwise have reasonable bases to think that the reason for suspension is still valid. This proposed regulation would also result in an immediate violation without an opportunity to for the operator to provide information to the Commission to demonstrate that such reason for suspension is still valid." "[O]ur fear is if you don't adopt our suggested language and the criteria for suspension isn't put back in ...the operator may None 1. Delete "until the reasons for granting the suspension are no longer valid." Include a provision requiring updated information, and condition suspension revocation on the Commission's review of new information and notice and hearing. CPAI "suggests that the wording be changed in the proposed regulations to provide that a suspension ...will be valid for 10 years unless terminated sooner due to change in conditions as provided in" CPAI's proposed subsection (j); "[f]ollowed by a provision requiring updates to be filed if the operator becomes aware of changes, and this is the new subsection (i) in ConocoPhillips' submittal, and a provision providing for Commission review of new information to determine if the suspension should be terminated after notice and after a hearing." CPAI "suggests that the proposed Language be clarified to provide the operators notify the Commission if the operator knows of changes or new information[,] and if the Commission receives new information on a suspended well at any time then the Commission may, after notice and an opportunity to be heard, AOGA (I) /CPAI (1) -The phrase "[o]r until the reason for granting the suspension is no longer valid" is deleted. Subsection (a) identifies criteria for when suspending a well and continuing suspension are appropriate. Subsections (j)-(1) require updated information: e.g., under subsection (j), an operator must provide notification and propose action upon learning of a reasonable risk that any subsection (a)(1) criterion is no longer met. Subsection (1) provides for suspension termination and action, which may include plugging and abandonment, but only (i) if the operator does not comply with an information request or insufficient information supports continuing suspension, and (ii) after notice and hearing (under 20 AAC 25.540). Date: 8-27-08 not know what the Commission based .. order a suspension terminated and .the reason for suspension on." require that the well be plugged and abandoned." (h)/[(e)] I. "A provision should be added to None AOGA (1) - If a complete renewal application is allow continued suspended well status submitted 60 days before a suspension expires, then until there is action by the commission the suspension will continue until the Commission on the reapplication." acts on the application. • a. "In the absence of a time period by which the commission shall act upon a submitted renewal request, a provision should be added to allow continued suspended well status until there is action by the commission on the renewal application." (i) None None (j) a. Delete the phrase "the environment." 1. See subsection (g). AOGA (a) -The comment is adopted. The criteria triggering the notification requirement track b. Provide for the report's submission subsection (a)(I). within 5 working days. AOGA (b) -The comment is adopted. CPAI (1) -See subsection (g). (k) None I. See subsection (g). CPAI (1) -See subsection (g). a. "For clarification, CPAI suggests that CPAI (a) -Because the operator must propose at the end of this regulation section, the "appropriate" action, including "as necessary" would words `as necessary' be added. Not not add clarity: if no action is necessary, proposing Date: 8-27-08 every situation where there is a change in status of a well giving rise to the requirement to provide updated information to the Commission will require that any action be taken." (1)~[(i)] 1. The subsection unnecessarily duplicates existing regulations, including 20 AAC 25.535 and 20 AAC 25.539. 2. The subsection "lacks important due process safeguards." 3. The reference to "criterion" is vague and should be replaced with "requirement;" and "[w]ho will make this determination and when" is unclear a. Some situations where the subsection would apply "appear to be already covered by other existing or proposed regulations," including 20 AAC 25.110(b), 20 AAC 25.535, 20 AAC 25.539, and 20 AAC 25.540. b. The introduction "is ambiguous and should be rewritten to provide clarity regarding the situations that may cause the AOGCC to take action." 1. The subsection is vague. For example, "criterion" and "cease to be satisfied" are uncertain. CPAI suggests that operators be required to notify the Commission of new information. CPAI also suggests that "if the commission receives new information on a suspended well at any time, then the commission may, after notice and an opportunity to be heard, order a suspension terminated and require the well to be plugged and abandoned." The Commission should "provide a notice and hearing if the status of a well is changed from suspended status to .. . requiring a P&A." 2. See subsection (g). "no action" would be appropriate. AOGA (1), (a) -Subsection (1) is not duplicative of 20 AAC 25.535, 20 AAC 25.539, or 20 AAC 25.110(b). 20 AAC 25.535 concerns the response to violations of AS 31.05, 20 AAC 25, and Commission orders, permits, or other approvals. 20 AAC 25.539 concerns temporary emergency orders to protect against immediate harm to public heath or safety. 20 AAC 25.110(b) concerns information and documentation that must be provided for approval to suspend a well. Subsection (1) is not concerned with enforcement, temporary emergency action, or suspension approval, but the requests for information regarding whether suspension remains appropriate and action where insufficient information supports continuing suspension. 20 AAC 25.540 is a general provision concerning public notices, opportunities to comment, and hearings. Although without subsection (1), the Commission could, under 20 AAC 25.540, take the action provided for in the subsection, a. Add the following introductory the subsection is not unnecessarily duplicative phrase: "`Upon receipt of an application because it expressly identifies when the Commission for suspension or renewal of suspension, may act and what action it may take under 20 AAC or upon receipt of new or updated 25.540. information regarding a suspended well, ..."' CPAI asserts that, "[w]ithout such AOGA (2) -The comment is adopted. Except for Date: 8-27-08 a phrase, the regulation would appear to requests for information, action under subsection (1) allow the Commission to determine to is subject to 20 AAC 25.540, requiring public notice reverse prior final decisions without any and an opportunity for comment and hearing. change in the information currently on Therefore, subsection (1) includes adequate due record at the Commission." process safeguards. AOGA (3) /CPAI (1), (a) -The comments are essentially adopted; but subsection (1) is not limited to requests for, and action based on the receipt of, only "new or updated" information, but any information bearing on whether a well should remain suspended. If information supports a finding that a well should not remain suspended, the Commission should act on that information regardless of when the Commission received it. AOGA (b) -The comment is adopted. The Commission may take action if the operator does not comply with an information request or the Commission determines that there is insufficient information to support continued suspension. CPAI (1) -See subsection (g). CPAI (a) -The Commission disagrees with the comment. No reason is given for not acting on information that a well should not remain suspended (e.g., because a reasonable risk exists that a suspended well is a damaging freshwater or producing or potentially producing formations) based on when the information was received. Also, given Date: 8-27-08 that Commission action under subsection (1)(1)-(2) is subject to 20 AAC 25.540, an operator can present such reasons, if any, in its comments and at the hearing. (m) Subsection (m) was proposed at the June 17, 2008, hearing in response to AOGA and CPAI comments seeking greater flexibility with respect to deadlines. No comments on the subsection were received at the hearing or between the hearing and June 25, 2008, when the _ public comment period closed. tiality 1. AOGA "strongly suggests that information concerning the completion of a well or considered a trade secret continue to have that protection." 1. AOGA "suggest[s] adding an administrative approval section to allow the commission to deal with special situations." 1. Retain "the provisions of existing subsection (c) regarding confidential protection of information qualifying under 20 AAC 25.071(b) and AS 45.50.940." The regulations should "allow[] flexibility to keep well information confidential upon request." CPAI "requests that the language providing for certain information about the basis for the request of suspension be held confidential, be retained in the new regulations." None AOGA (1) -Subsection (c) incorporates the variance provision of 20 AAC 25.112(1); except for requests for information, action under subsection (1) is subject to 20 AAC 25.540, requiring public notice and an opportunity for comment and hearing; and under subsection (m), 20 AAC 25.110 deadlines may be amended upon a written request and a showing of good cause. No other way in which an "administrative approval" provision is needed has AOGA (1) /CPAI (1) - A confidentiality provision specific to 20 AAC 25.110 is unnecessary; nor does the existing provision add anything that is not covered by 20 AAC 25.537 and the Alaska Constitution, AS 31.05.035, or AS 45.50.940. The comments do not explain why this is not the case. 10 Date: 8-27-08 been identified. 11 ~~o Register ~0_ Latest version of staff recommendations. MISCELLANEOUS~ARDS Draft 6/23/2008 For consideration at July 30, 2008 AOGCC Monthly Public Meeting. 20 AAC 25.110 is repealed and readopted to read: 20 AAC 25.110. Suspended wells. (a) If allowed under 20 AAC 25.105, an operator may apply to the commission under this section to approve the suspension of a well or to renew the approval of the suspension of a well. The operator must state the reasons the well should be suspended, and not completed or abandoned, and must demonstrate to the commission's satisfaction that (1) the well (A) is mechanically sound; (B) will not allow the migration of fluids; (C) will not damage freshwater or producing or potentially producing formations; (D) will not impair the recovery of oil or gas; (E) is secure, safe, and not a threat to public health; and (F) is in compliance with all provisions of AS 31.05, 20 AAC 25, and any order, stipulation or permit issued by the commission; and (2) the well (A) has future utility as an exploratory, development, or service well; (B) is a viable candidate for redrilling; or (C) is located on a pad or platform with active producing or service wells. (b) An Application for Sundry Approvals (Form 10-403) must be approved by the commission before operations to suspend a well commence, except that oral approval may be requested under 20 AAC 25.507(b). In addition to meeting the requirements of (a) of this section, the application must include the following: (1) wellbore diagrams illustrating the current and proposed mechanical configurations of the well; (2) information on abnormally geo-pressured or depleted strata; and (3) a description of the proposed work plan, including how the integrity of existing and proposed plugs will be demonstrated. Register ~0 Latest version of staff recommendations. MISCELLANEOUS~ARDS Draft 6/23/2008 For consideration at July 30, 2008 AOGCC Monthly Public Meeting. (c) Unless the commission otherwise requires or approves a variance under 20 AAC.112(i), any well suspended under this section must be plugged in accordance with 20 AAC 25.112, except that the requirements of 20 AAC 25.112(d) do not apply if (1) a wellhead is installed or the well is capped with a mechanical device to seal the opening; and (2) a bridge plug capped with 50 feet of cement or a continuous cement plug extending 200 feet within the interior casing string is placed at or above 300 feet below the surface. (d) The operator of a suspended well shall maintain the integrity and safety of the well and surrounding location and clear the location in accordance with 20 AAC 25.170(a)(2) or (b) or with 20 AAC 25.172(c)(2) or (d), as applicable. (e) For any well suspended prior to January 1, 2009, the operator must inspect the well site before September 30, 2010. For any well initially suspended on or after January 1, 2009, the operator must inspect the well site within twelve months after the date of suspension. For any well suspended under this section, subsequent inspections must be conducted within 24 months prior to September 30 of every calendar year ending in 0 or 5, except that no suspended well is required to undergo a subsequent inspection under this subsection (e) if the initial inspection under this subsection (e) occurred within the prior 24-month period. For all inspections under this subsection (e), the operator must provide the commission notice at least ten days prior to the inspection and the opportunity for commission inspectors to accompany the operator on the inspection tour. Shorter notice periods may be accepted by the commission if the timing of the proposed inspection tour is convenient with commission inspector work schedules. (f) Within 30 days after any well site inspection required under this section, the operator must file a Report of Sundry Well Operations (Form 10-404). The report shall include (1) a description of the condition of the wellhead and surface location, including any discoloration, fluids(s) or sheens) visible on the ground or in any nearby water; 2 Register ~0 MISCELLANEOUS~ARDS Draft 6/23/2008 Latest version of staff recommendations. For consideration at July 30, 2008 AOGCC Monthly Public Meeting. (2) a plat showing the location of the suspended well and any wells within a one- quarter-mile radius of the wellbore; (3) well pressure readings, where practicable; (4) photographs clearly showing the condition of the wellhead and surrounding location; and (5) an update of all information and documentation required in (b) of this section. (g) A suspension or renewal of a suspension approved on or after January 1, 2009 is valid for 10 years from the date of approval. (h) Renewal of an existing suspension may be requested by the submission of an Application for Sundry Approvals (Form 10-403) containing all information and documentation required by (b) of this section. A renewal is not effective until approved by the commission. If a complete renewal application is submitted at least 60 days prior to the expiration of an existing suspension, then the existing suspension will continue until the commission acts on the application. Within 24 months prior to the submission of a request for suspension renewal, a well-site inspection must be completed and, within 30 days after that well-site inspection, a Report of Sundry Well Operations (Form 10-404), including all information and documentation required under (f) of this section, must be filed with the commission. (i) For wells suspended prior to January 1, 2009, an Application for Sundry Approvals (Form 10-403) requesting a suspension renewal must be submitted (1) no later than December 31, 2010 for all wells suspended prior to January 1, 2006; and (2) no later than December 31, 2015 for all wells suspended on or after January 1, 2006. (j) The operator shall immediately notify the commission and propose appropriate action if the operator learns that there is a reasonable risk that a suspended well is (1) mechanically unsound; (2) allowing the migration of fluids; (3) causing damage to freshwater or producing or potentially producing formations; (4) impairing the recovery of oil or gas; or (5) a threat to public health or not secure or safe. Within 5 working days after notifying the commission, the Register ~0_ Latest version of staff recommendations. MISCELLANEOUS~ARDS Draft 6/23/2008 For consideration at July 30, 2008 AOGCC Monthly Public Meeting. operator shall file a report and all relevant information and documentation regarding the well, including all information and documentation that may be required by the commission. (k) If the operator learns that any information required under this section is no longer complete or accurate, the operator shall, within 30 days, notify the commission in writing, provide updated information, and propose appropriate action. (1) At any time, the commission may request that an operator provide (within 10 days of the request) any information concerning whether suspension remains appropriate for a well. If the operator does not comply with the information request or if the commission determines that there is insufficient information to support allowing the well to remain suspended, the commission may take action under 20 AAC 25.540, including (1) revoking the well's suspended status, effective as of the date determined by the commission, and (2) prescribing actions the operator must take, which may include plugging and abandonment of the well. If action is ordered, including plugging and abandonment, a separate notice and hearing is not required notwithstanding any other provision of this chapter, including 20 AAC 25.105. (m) Upon written request of the operator, any deadlines in this section may be amended by the commission upon a showing of good cause. History: (Eff. 4/2/86, Register 97; am 11/7/99, Register 152; am / /, Register ) Authority: AS 31.05.030 AS 31.05.040 AS 31.05.095 4 C" m r STATE OF ALASKA ~ NOTICE TO PUBLISHER ~ ADVERTISING ORDER NO. ADVERTISING ORDER INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE A O_02814050 I`1 SEE BOTTOM FOR INVOICE ADDRESS F R AOGCC 333 W 7th Ave, Ste 100 AGENCY CONTACT Jod Colombie DATE OF A.O. Aril 30 2008 ° M Anchorage, AK 99501 907-793-1238 PHONE - PCN DATES ADVERTISEMENT REQUIRED: o Anchorage Daily News PO Box 149001 Arichora e AK 99514 g ~ May 1, 2008 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: Advertisement to be published was e-mailed Type of Advertisement Legal® ^ Display Classif ied ^Other (Specify) SEE ATTACHED .SEND INVOICE IN TRIPLICATE TO AOGCC, 333 W. 7th Ave., Suite 100 Anchora e AK 99501 PAGE 1 OF 2PAGES TOTAL OF ALLPAGES$ REF TYPE NUMBER AMOUNT DATE COMMENTS 1 VEN z ARr~ 02910 FIN AMOUNT SY CC PGM LC ACCT FY NMR DIST LIQ ~ 08 02140100 73451 2 REQUISITIONE BY: DIVISION APPROVAL: 02-902 (Rev. 3/94) ~ Publisher/Original Copies: Department Fiscal, Department, Receiving AO.FRM ~ ~ ADVERTISING INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED /~ O-02$14050 AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF !1 ORDER ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE SEE BOTTOM FOR INVOICE ADDRESS F AOGCC AGENCY CONTACT DATE OF A.O. R 333 West 7th Avenue. Suite 100 ° Anch~rage_ AK 995()1 PHONE PCN M 907-793-1238 - DATES ADVERTISEMENT REQUIRED: o Anchorage Daily News 2008 May 1 , PO Box 149001 Anchora e AK 99514 g THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN ~ . SPECIAL INSTRUCTIONS: Account # STOF0330 AFFIDAVIT OF PUBLICATION United states of America REMINDER State of ss INVOICE MUST BE IN TRIPLICATE AND MUST REFERENCE THE ADVERTISING ORDER NUMBER. division. A CERTIFIED COPY OF THIS AFFIDAVIT OF PUBLICATION MUST BE SUBMITTED WITH THE INVOICE. Before me, the undersigned, a notary public this day personally appeared ATTACH PROOF OF PUBLICATION HERE. who, being first duly sworn, according to law, says that he/she is the of Published at in said division and state of and that the advertisement, of which the annexed is a true copy, was published in said publication on the day of 2008, and thereafter for consecutive days, the last publication appearing on the day of , 2008, and that the rate charged thereon is not in excess of the rate charged private individuals. Subscribed and sworn to before me This _ day of 2008, Notary public for state of My commission expires Page 1 of 2 • Colombie, Jody J (DOA) From: Colombie, Jody J (DOA) Sent: Thursday, May 01, 2008 9:38 AM Subject: AOGCC Proposed Regulation Change Attachments: 20 AAC 25.110.pdf BCC:Birnbaum, Alan J (LAW); Crisp, John H (DOA); Davies, Stephen F (DOA); Fleckenstein, Robert J (DOA); Foerster, Catherine P (DOA); Grimaldi, Louis R (DOA); Johnson, Elaine M (DOA); Jones, Jeffery B (DOA); Laasch, Linda K (DOA); Mahnken, Christine R (DOA); Maunder, Thomas E (DOA); McIver, C (DOA); McMains, Stephen E (DOA); Noble, Robert C (DOA); Norman, John K (DOA); Okland, Howard D (DOA); Paladijczuk, Tracie L (DOA); Pasqual, Maria (DOA); Regg, James B (DOA); Roby, David S (DOA); Saltmarsh, Arthur C (DOA); Scheve, Charles M (DOA); Seamount, Dan T (DOA); Smith, Chasity R (DOA); Williamson, Mary J (DOA); David Johnson; 'Kara, Danny T'; 'Leslie Adams'; Randy Hicks; 'Aleutians East Borough'; 'Anna Raff ; Arion, Teri A (DNR); 'Arthur Copoulos'; 'Barbara F Fullmer'; 'bbritch'; 'Bill Walker'; 'Brad McKim'; 'Brandon Gagnon'; 'Brian Gillespie'; 'Brian Havelock'; 'Brit Lively'; 'Bruce Webb'; 'buonoje'; 'Cammy Taylor'; 'Cande.Brandow'; 'carol Smyth'; 'Cary Carrigan'; caunderwood@marathonoil.com; 'Charles O'Donnell'; 'Chris Gay'; 'Christian Gou-Leonhardt'; 'Cliff Posey'; 'Dan Bross'; 'dapa'; 'Daryl J. Kleppin'; 'David Brown'; 'David Hall'; David House; 'David L Boelens'; 'David Steingreaber'; 'ddonkel'; 'Deanna Gamble'; 'Deborah J. Jones'; 'doug_schultze'; 'Eric Lidj i '; 'Evan Harness'; 'eyancy'; 'foms2@mtaonline.net'; 'Francis S. Sommer'; 'Fred Steece'; 'Garland Robinson'; 'Gary Laughlin'; 'Gary Rogers'; 'Gary Schultz'; 'ghammons'; 'Gordon Pospisil'; Gould, Greg M (DEC); 'Gregg Nady'; 'gregory micallef ; 'gspfoff ; 'Hank Alford'; 'Harry Engel'; 'jah'; 'James Scherr'; 'Janet D. Platt'; 'jejones'; 'Jerry McCutcheon'; 'Jim Arlington'; 'Jim White'; 'Jim Winegarner'; 'Joe Nicks'; 'John Garing'; 'John S. Haworth'; 'John Spain'; 'John Tower'; 'John W Katz'; johnny.aiken@north-slope.org; 'Jon Goltz'; 'Julie Houle'; 'Kari Moriarty'; 'Kaynell Zeman'; 'Keith Wiles ; knelson@petroleumnews.com; 'Krissell Crandall'; 'Kristin Dirks'; 'Laura Silliphant'; 'Lois'; 'Lynnda Kahn'; 'mail=akpratts@acsalaska.net'; 'mail=fours@mtaonline.net'; 'Marilyn Crockett'; 'Mark Dalton'; 'Mark Hanley'; 'Mark Kovac'; 'Mark P. Worcester'; 'Marquerite kremer'; 'marty'r 'Matt Rader'; 'Meghan Powell'; 'Mike Bill'; 'Mike Mason'; 'Mikel Schultz'; 'Mindy Lewis'; 'MJ Loveland'; 'mjnelson'; 'mkm7200'; 'Nick W. Glover'; NSK Problem Well Supv; NSU, ADW Well Integrity Engineer; 'Patty Alfaro'; 'Paul Decker'; 'Paul Winslow'; Pierce, Sandra M (DNR); 'Randall Kanady'; 'Randy L. Skillern'; 'rcrotty'; Rice, Cody J (DNR); 'rmclean'; 'Rob McWhorter '; rob.g.dragnich@exxonmobil.com; 'Robert Campbell'; 'Robert Fowler'; 'Robert Province'; 'Roger Belman'; 'Rudy Brueggeman'; 'Scott Cranswick'; 'Shannon Donnelly'; 'Sharmaine Copeland'; 'Sondra Stewman'; 'Sonja Frankllin'; 'Stan Porhola'; 'stanekj'; 'Steve Lambert'; 'Steve Moothart'; 'Steven R. Rossberg'; 'tablerk'; 'Tamera Sheffield'; 'Temple Davidson'; 'Terrie Hubble'; 'Tim Lawlor'; 'Todd Durkee'; Tony Hopfinger; 'trmjrl'; 'Walter Featherly'; 'Walter Quay'; 'Wayne Rancier'; 'Dale Hoffman'; Fridiric Grenier; Joseph Longo; Maurizio Grandi; Tom Gennings; Buch, Bob (LAA); Bunde, Con (LAA); Chenault, Mike (LAA); Cissna, Sharon (LAA); Coghill, John (LAA); Cowdery, John (LAA); Crawford, Harry (LAA); Dahlstrom, Nancy (LAA); Davis, Bettye J (LAA); Doll, Andrea (LAA); Doogan, Mike (LAA); Dyson, Fred (LAA); Edgmon, Bryce E (LAA); Ellis, Johnny (LAA); Elton, Kim S (LAA); Fairclough, Anna (LAA); 'Foster, Richard'; French, Hollis (LAA); Gara, Les (LAA); Gardner, Berta (LAA); Gatto, Carl (LAA); Green, Lyda N (LAA); Gruenberg, Max F (LAA); Guttenberg, David (LAA); Harris, John (LAA); Hawker, Mike (LAA); Hoffman, Lyman F (LAA); Holmes, Lindsey (LAA); Huggins, Charlie (LAA); Johansen, Kyle B (LAA); Johnson, Craig W (LAA); Joule, Reggie (LAA); Kawasaki, Scott Jw (LAA); Keller, Wes (LAA); Kelly, Mike (LAA); Kerttula, Beth (LAA); Kookesh, Albert (LAA); Ledoux, Gabrielle R (LAA); Lynn, Bob (LAA); McGuire, Lesil L (LAA); Meyer, Kevin G (LAA); Nelson, Mary (LAA); 5/1/2008 Page 2 of 2 Neuman, Mark A (LAA); Olson, Donny (LAA); Olson, Kurt E (LAA); Ramras, Jay B (LAA); Roses, Bob (LAA); Salmon, Woodie W (LAA); Samuels, Ralph (LAA); Seaton, Paul (LAA); Stedman, Bert K (LAA); Stevens, Gary L (LAA); Stoltze, Bill (LAA); Therriault, Gene (LAA); Thomas, Bill (LAA); Thomas, Joe (LAA); Wagoner, Tom (LAA); Wielechowski, Bill (LAA); Wilken, Gary R (LAA); Wilson, Peggy A (LAA) Attachments:20 AAC 25.110.pdf; The previous sent document labeled 20 AAC 25.100 should have been labeled 20 AAC 25.110. See attached. 5/1/2008 f+ Register ___, 200_ ~ MISCELLANEOUS BOARDS Draft 7/0$ 20 AAC 25.110 is repealed and readopted to read: 20 AAC 25.110. Suspended wells. (a) If allowed under 20 AAC 25.105, an operator may apply Deleted: [he suspension of to the commission under (b) of this section for~gprovai to suspend a well or renewal of suspension _ ,- " approval. The operator must state the reasons the well should be suspended, and not completed or abandoned, and must demonstrate to the commission's satisfaction that DCleted: health, safety and the (1)'the Well , ' environment are protected by ensuring, - - - - - - among other things, that (A) is mechanically sound; (B) will not allow the migration of fluids; (C} will not damage freshwater or producing or potentially producing formations; (D) will not impair the recovery of oil or gas; and (E) is secure, safe. and not a threat to public health; and (2) the well (A) has future utility assn exploratory, devel~ment, or service well; (B) is a viable candidate for redrilling; or (C) is located on a pad or platform with active producing or service wells. (b) An Application for Sundry Approvals (Form 10-403) must be approved by the commission before operations to suspend a well commence, except that oral approval may be requested under 20 AAC 25.507(b). The application must include all information and documentation relating to whether suspension is appropriate under (a) of this section and must specifically include the following: (1) wellbore diagrams illustrating the current and proposed mechanical configurations of the well; (2) information on abnormally geo-pressured or depleted strata; and (3) a description of the proposed work plan, including how the integrity of existing and proposed plugs will be demonstrated. ~DNHeted: a producer 1 Register _ _200_ MISCELLANEOUS BOARDS Dra~17/08 Deleted: Any (c) Unless otherwise required by the commission_an~~ well suspended under this section must be • - --- - plugged in accordance with 20 AAC 25.112 a - c and (e)-(i). Upon written request of the operator, the p~eted: -_ _ ~' commission may approve a variance of this subsection if the variance provides at least equally effective , - Formatted: Font: (Default) Times ' New Roman, 11 pt, Font color: Auto means of su~endina the well under this subsection. Formatted: Font: (Default) Times New Roman, it pt, Font color: Auto - Deleted' unless otherwise authorized ' by the commission, and the opera t ~d) The. operator of a suspended well shall maintain the integrity and_safety of the well and for mns - - - comply with 20 AAC 25.070.¶ surrounding location and clear the location in accordance with 20 AAC 25.170(a)(2) or (b) or with 20 AAC 25.172(c)(2) or (d), as applicable. (e) For any well suspended prior to January 1, 2009, the operator must inspect the well site before September 30, 2010. For any well initially suspended on or after January 1, 2009, the operator must inspect the well site within twelve months after the date of suspension. For any well suspended under this section, subsequent inspections must be conducted within 24 months prior to September 30 of every calendar year ending in 0 or 5, except that no suspended well is required to undergo a subsequent inspection under this subsection (e) if the initial inspection under this subsection (e) occurred within the prior 24-month period. For all inspections under this subsection (e), the operator must provide the commission notice at least ten days prior to the inspection and the opportunity for commission inspectors to accompany the operator on the inspection tour. (1) Within 30 days after any well site inspection required under this section, the operator must file a Report of Sundry Well Operations (Form 10-404). The report shall include (1) a description of the condition of the wellhead and surface location, including any discoloration fluids(s) or sheens) visible on the ground or in any nearby water; (2) a plat showing the location of the suspended well and any wells within aone-quarter- mile radius of the wellbore; (3) well pressure readings, where practicable; Register and 200 ~ MISCELLANEOUS BOARDS Draft~7/08 (4) photographs clearly showing the condition of the wellhead and surrounding location; (~) an update of all information and documentation required in (b) of this section. Deleted: ten (g) A suspension or renewal of a suspension approved on or after January 1, 2009 is valid for 0 / years from the date of approval. Deleted: A renewal may (h),)iene~al of an existing suspension may be requested by the submission of an Application for , - .Deleted: in Sundry Approvals (Form 10-403) containing all information and documentation required~(b) of this - " section. A renewal is not effective until approved by the commission. Within 24 months prior to the submission of.a request for suspension renewal, awell-site inspection must be completed-and, within 30 - " days after that well-site inspection, a Report of Sundry Well Operations (Form 10-404), including all information and documentation required under (f) of this section, must be filed with the commission. (i) For wells suspended prior to January 1, 2009, an Application for Sundry Approvals (Form 10- 403) requesting a suspension renewal must be submitted (1) no later than December 31, 2010 for all wells suspended prior to January 1, 2006; and (2) no later than December 31, 2015 for all wells suspended on or after January 1, 2006. Deleted: the Deleted: If Deleted: , at Deleted: any time, Deleted: health, safety, or the environment is, or may be, threatened by a suspended well Deleted: ,the operator shall immediately notify the commission and propose appropriate action. (j) The operator shall immediately notify the commission and~ropose appropriate action~i.the ~%'_ operator learns that suspended well is suspected to bed (i l mechanically unsound; (2) allowing the migration of fluids: (31 causing damage to freshwater or producing or potentially nroducing formations: (4) impairing the recovery of oil or gas: or (~) a threat to public health or not secure or safe. Within 5 days after notifying the commission, the operator shall file a report and all relevant information and documentation regarding the well, including all information and documentation that may be required by the commission. Register 200_ MISCELLANEOUS BOARDS Draft /17/08 Deleted • , at any time, (k) IfEthe operator learns that any information required under this section is no longer complete or ,= " accurate, the operator shall, within 30 days, notify the commission in writing, provide updated information, and propose appropriate action. (l) ~t anv time the commission may request an operator to provide (within 10 davs of the request) any information concerning whether suspension remains appropriate for a well If_the o ep rator does not compIv with the information request or if the commission determines that the information in the commission's tiles is insufficient to support allowing the well to remain suspended the commission may take action under 20 AAC 25.540. includineo _ _ ~1) ~evokin~the well's suspended status, effective as of the date determined by the `, commission, and ~` ~),prescribinQ actions the operator must_take, which may includeplugging and `~~ `, - } a ~~ abandonment of the well If action is ordered, including plugging and abandonment, a separate notice and ~~;~ ', hearing is not required notwithstanding any other provision of this chapter, including 20 AAC 25.105. `` .. ~' (ml Upon written reullest of the operator, anv deadlines under this section may be amended by ` Che commission upon a showing of good cause. History: (Eff. 4/2/86, Register 97; am 11 /7/99; Register 152; am / /_, Register ~ Authority: AS 31.05.030 AS 31.05.040 AS 31.05.095 Formatted: Indent: Left: 0" Deleted: [f the commission lacks sufficient information to determine whether suspension is or remains appropriate for a well under (a) of the section, if suspension is no longer appropriate for a well under (a) of this section, including because plugging and abandonment is required under 20 AAC 25.105, or if, with respect to the well, the operator violated a requirement of, or order issued under, AS 31.05 or this chapter, the commission may Deleted: ¶ (1) issue a notice identifying, or approve an Application for Sundry Approvals (Form 10-403) committing to, actions necessary to maintain the well's suspended status, or¶ (2) after a notice and hearing, issue an order that either or both Formatted: Indent: First line: 1" Deleted: i Deleted: revokes Deleted: - Deleted: ii _~ Deleted: prescribes Formatted: Indent: First line: 0.5", No bullets or numbering, Tabs: Not at 0" Formatted: Indent: Left: 1" 4 ~$ 1 l ~~ 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 ALASKA OIL AND GAS CONSERVATION COMMISSION Before Commissioners: Daniel T. Seamount, Chairman John K. Norman Cathy Foerster In the Matter of Proposed Changes ) to Title 20, Chapter 25 of the ) Alaska Administrative Code, ) pursuant to Sections 20 AAC 25.110 ) 25.300, 25.508 and 25.509 ) ALASKA OIL and GAS CONSERVATION COMMISSION Anchorage, Alaska June 17 , 217 9:00 o'clock a.m. VOLUME I PUBLIC HEARING BEFORE: Daniel T. Seamount, Chairman, John K. Norman, Commissioner R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 1 ~ TABLE OF CONTENTS 2 Opening remarks by Chairman Seamount Testimony by Jane Williamson 3 Testimony by Kara Moriarty Testimony by Harry Engel 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 03 05 14 15 • 1 2 3~ 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 P R O C E E D I N G S Tape 1 0050 (On record - 9:00 a.m.) CHAIRMAN SEAMOUNT: Okay. I'd like to call this hearing to order. The date is Tuesday, June 17th, 2008. It's 9:03 a.m. We're located at 333 West Seventh Avenue, Suite 100, Anchorage, Alaska. Those are the offices of the Alaska Oil and Gas Conservation Commission. To my right is Commissioner John Norman. Commissioner Cathy Foerster is indisposed today. I'm Dan Seamount, the Chair. And we have two Commissioners here which means we have a quorum. If anyone has any special needs as noted in the notice we can provide that. Please see Special Staff Assistant Jody Colombie. R & R Court Reporting will be recording the proceedings. You can get a copy of the transcript from Special Assistant Jody Colombie or R & R Court Reporting. Okay. It looks like we have a couple of people -- persons today who have indicated an intention to testify. And I'd like to remind you that when you do your testimony to speak into both microphones. They're for different purposes. One is for the recorder and the other is for people in this room to be able to hear. R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 3 • 11 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 It's the practice to swear witnesses and we will follow that practice. If you intend to be testifying as an expert witness, please, state the subject matter, what your experiences are and what your discipline is that you would like to be considered an expert witness as. The Alaska Oil and Gas Conservation Commission proposes to amend Title 20, Chapter 25, Section 110 of the Alaska Administrative Code. That's dealing with suspended wells including the following, the proposed regulation changes referenced above clarify what is expected of operators with respect to the surveillance, maintenance and reporting requirements for suspended wells throughout the state. Notice of this hearing was published in the Anchorage Daily News on April 30th, 2008 and it's also been posted on the State of Alaska on line services website, as well as AOGCC's own website. This hearing is being held in accordance with 20 AAC 25.540 of the Alaska Administrative Code. And I think I said already the hearing will be recorded. It looks like we've got representatives from the Alaska Oil and Gas Association, the Department of Natural Revenue (sic) and ConocoPhillips. And apparently we're going to have three persons testifying. Commissioner Norman, do you have any comments before we..... R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 4 • i 1' 2 3j 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 COMMISSIONER NORMAN: I have nothing. CHAIRMAN SEAMOUNT: On February 28th, 2008 there was a hearing on the initial proposal for the regulation changes. Today we'll be discussing the new proposal. Our own senior reservoir engineer Jane Williamson will start off with the testimony. And Ms. Williams (sic) would you please raise your right hand and state who you are even though I've already stated it. MS. WILLIAMSON: I'm Jane Williamson. I'm a senior reservoir engineer at the Commission. CHAIRMAN SEAMOUNT: Hold it, excuse me, we have to do this. (Oath Administered) MS. WILLIAMSON: I swear. CHAIRMAN SEAMOUNT: Okay. Now, please state your name? MS. WILLIAMSON: I'm Jane Williamson and I'm a senior reservoir engineer here at the Commission. And I've had 30 years engineering experience in Alaska with six years here at AOGCC. And did you want me to swear in as an expert? CHAIRMAN SEAMOUNT: You're already sworn in. We're going to decide whether you're an expert and I assume you are since we hired you a couple of times. Do you have any objections, Commissioner Norman? COMMISSIONER NORMAN: I have no objection, but I am amazed that such a young person could have 30 years experience.. R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 5 1 2'I 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 CHAIRMAN SEAMOUNT: So be it, I agree. Okay. Ms. Williams (sic) you are designated as an expert witness in the discipline of reservoir -- petroleum reservoir engineering. Please proceed. MS. WILLIAMSON: There are 137 wells designated suspended with 50 being suspended for 15 or more years, 48 are exploratory wells which are located in remote areas, not visited regularly. After audit of information within our files the Commission decided that new regulations were required to set out criteria under which a well may be approved for suspended status and setting out inspection and reporting criteria to help ensure proper monitoring and integrity of each suspended well and its surrounded -- surrounding location. As Commissioner -- or Chair Seamount stated a Public Hearing was held on February 28th to consider initial proposed draft of the suspended well regulations. AOGA and ConocoPhillips testified and provided detailed comments at the hearing. It was decided by the Commission that further review and redraft of the regulations were required in light of the hearing testimony. So this hearing will consider a proposed draft of the suspended well regulations, 20 AAC 25.110 as noticed on April 30th, 2008. Additional regulation changes for 20 AAC 25.300 concerning request for information and new proposed regulations 20 AAC 25.508 and 20 AAC 25.509 concerning variances and R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 6 1 2' 3 4 5 6 7 8 9 10 11 12 13 14 I 15 16 17 18 19 20 21 22 23 24 25 I waivers of requirements to regulations were also noticed. The Commission's Senior Staff have had further discussions with the regulated community, with the Department of Natural Resources and a number of internal discussions and based upon these discussions we have some recommendations concerning the various variance and waiver sections and suggested edits and a few substantive changes to the suspended well regulations draft . First we are recommending that our proposal for new general regulations concerning variances and waivers, and that is 20 AAC 25.508 and .509, be withdrawn from consideration at this time. We are concerned that there may be potential conflicts with 20 AAC 25.505 and other regulatory provisions concerning notice requirements, so we need to review this in more detail internally and with the AG's office. Concerning the suspended well regulations I'd like to enter into the record edits that we are proposing for clarity and I will also point out a few items that are more substantive in content. I believe you have copies on the side and hand out copies. Did you hand out copies to everybody? MS. COLUMBIA: I think so. MS. WILLIAMSON: Okay. CHAIRMAN SEAMOUNT: Ms. Colombie, are these -- this color copy, does that show the new changes that are going to be entered into the record? R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 7 • • 1 2 3 4 5 6 7 8 9 10 11 12 I 13 14 15 16 17 18 19 20 21 22 23 24 I 25 I MS. COLOMBIE: Yes. CHAIRMAN SEAMOUNT: Okay. Then, I don't know, how do we enter this into the record? COMMISSIONER NORMAN: Well, we'll just at the request of Staff we will enter it into the record without objection. This is a revised draft and at the top it is red lined and marked 6/17/08. CHAIRMAN SEAMOUNT: And I assume that this new proposed -- these new proposed regulations are on our website, too? MS. COLOMBIE: They are not. CHAIRMAN SEAMOUNT: They are not. Are they..... MS. COLOMBIE: They were done yesterday. CHAIRMAN SEAMOUNT: Huh? MS. COLOMBIE: They were done yesterday. CHAIRMAN SEAMOUNT: Are they going to be entered or put on the website? MS. COLOMBIE: Yes. CHAIRMAN SEAMOUNT: Okay, good, thank you. MS. WILLIAMSON: As I said these were prepared by the Senior Staff after having discussions with AOGA and the Department of Natural Resources and this may or may not reflect exactly what AOGA will report to you, but we were trying to incorporate some of these items, so I'm going to point out just the more substantive comments. First under Section (a)(1) and (a)(1)(E) we deleted the R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 8 • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 term health, safety and the environment as concerns were raised. about potential -- this potentially going outside of our regulatory authority. And instead added (E) to the requirements that the well be safe and not a threat to public health and this more closely reflects our statutory requirements. Section (a)(2) we substituted the term producer with the terms exploratory and development which coincide with the terms in the statutes. Going to page 2 subsection (c) the requirements for plugging under 20 AAC 25.112 (d) which regards plugging at the surface of the well almost never applied to suspended wells and so they are not included. Also since we are withdrawing the proposed general provision concerning variances we've added in the subsection a specific allowance for the Commission to approve variances to the -- this specific subsection if the proposed variance provides equally effective means of suspending the wells and that would also mean that it would need to apply back to (1)(a) as far as our requirements for securing and safety and so f orth . We had minor edits in Section (e), (f), (g), (h) and (k) which I'm not going to go over. On page 3 at the bottom subsection (j), again, the term health, safety and environment were replaced and we've inserted R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 9 • • 1'I 2~ 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 language that more closely ties into the criteria within subsection (a)(1). Page 4 there were quite a few comments on subsection (1) and it was felt that it wasn't very clear what we were wanting so we streamlined this and substantially edited for clarity. And finally in subsection (m) we added allowance to the Commission to approve changes in some of the deadlines upon showing of good cause, so we added this since the general waiver (ph) provisions have been -- and we're requesting those be withdrawn and that's it for suspended wells. We'd also like the Commission to consider the proposed language as noticed for 20 AAC 25.300 concerning requests for the Commission to -- by the Commission for additional information. We're not proposing any changes to this and we have not had any additional requests for changes. to this. We suggest that the Commission leave the record open until the regularly scheduled monthly Public Meeting on June 25th to allow for comments on the proposed edits to the suspended well regulations and any other comments that come out of this hearing. And this concludes my testimony. Are there any questions? CHAIRMAN SEAMOUNT: Thank you, Ms. Williamson. Commissioner Norman. COMMISSIONER NORMAN: Ms. Williamson, again, the total number of wells that we currently are showing as suspended R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 49501 10 1', 2'~ 3 4 5 6 7 8 9 10 11 12 13 14 15 16 I 17 18 19 20 21 22 23 24 25 wells in the State of Alaska? MS. WILLIAMSON: Now, this was as of our last testimony in January..... COMMISSIONER NORMAN: More or less, I'm not looking for..... MS. WILLIAMSON: But more or less 140 wells are suspended. About 50 of them are suspended for 15 or more years and about 50 are exploratory wells which are located in remote areas. COMMISSIONER NORMAN: Do you happen to know what the longest well that we're carrying suspended would be? MS. WILLIAMSON: I would have to ask one..... COMMISSIONER NORMAN: Sure, that -- it's not --..... MS. WILLIAMSON: .....of the Senior Staff..... COMMISSIONER NORMAN: .....it's not material to this. I was just curious. And my last question is -- and, again, you may not be ready to respond to this now, but I'm looking at 110 on page 1 under section (1) the well is (A) , (B) , (C) , (D) , (E) and (E) reads, is secure, safe, and not a threat to public health and safety was taken out. And I'm looking right now and I'll just read slowly from Alaska Statute 31.05.030(e), the Commission may regulate to the extent not in conflict with Department of Labor or DEC for public health and safety. So I'm just mentioning this as a placeholder, but it would seem to me that safety would belong there. R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 11 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 MS. WILLIAMSON: Although we did put in (E) is secure, safe and not a threat to public health..... COMMISSIONER NORMAN: Ah, I see, I see, okay. Is secure, safe and not a threat to public health. I see what you said right there, okay, that takes care of it. CHAIRMAN SEAMOUNT: Okay, thank you, Ms. Williamson for a very good bit of testimony. Okay. So moving along and abiding by the Alaska Statute concerning first come first serve, we'll hear from the Alaska Oil and Gas Association. MS. MORIARTY: Good morning. CHAIRMAN SEAMOUNT: I'll swear you both in at the same time so, please, raise two right hands. Okay. Those are your good right hands, okay. (Oath Administered) MR. ENGEL: Yes. MS. MORIARTY: Yes, sir. CHAIRMAN SEAMOUNT: And do you both wish to be considered expert witnesses? MS. MORIARTY: (Shakes head in the negative) CHAIRMAN SEAMOUNT: Does one of you? MR. ENGEL: Yes, I do. CHAIRMAN SEAMOUNT: Okay. Please state your name, who you represent, which discipline you'd like to be an expert witness in and what your qualifications are. R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 12 1 2 3~i 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 MR. ENGEL: Yes, Commissioner Seamount. Good morning, Commissioner Norman. Ny name is Harry Engel and I'm an engineering team leader with BP in our Alaska Drilling and Wells organization. This morning I represent the Oil and Gas Association as a member -- as chairman of the AOGCC (ph) task group. I have over 28 years of various experience in the oil and gas industry including drilling and engineering, well site leader roles and various other management roles within the oil and gas industry. I have worked in most areas in Alaska. I worked in the Rocky Mountains and several international assignments. I hold degrees in Civil Engineering and Environmental Engineering from New Mexico Tech. CHAIRMAN SEAMOUNT: Any questions or objections, Commissioner Norman? COMMISSIONER NORMAN: No questions and no objections. CHAIRMAN SEAMOUNT: Where did you work in the Rockies? MR. ENGEL: From North Dakota to New Mexico and from Nevada to Kansas. CHAIRMAN SEAMOUNT: Out of which office? MR. ENGEL: Denver, Grand Junction, Rock Springs, Riverton Dome (ph), Casper, several others, Farmington (ph). CHAIRMAN SEAMOUNT: Okay, I guess that counts. MR. ENGEL: Yeah. CHAIRMAN SEAMOUNT: You are so designated an expert R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 13 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 witness. MR. ENGEL: Thank you. CHAIRMAN SEAMOUNT: Please proceed, Mr. Engel. MR. ENGEL: Well, I think Deputy Director Kara Moriarty will open up with some comments. MS. MORIARTY: Thank you. For the record my name is Kara -- good morning, my name is Kara Moriarty and I serve as the Deputy Director for the Alaska Oil and Gas Association and we appreciate the opportunity for AOGA to provide testimony this morning. As we stated in the hearing on February 28th we do support the spirit and the intention of clarifying the regulations on suspended well status. And we also very much appreciate the consideration that the Commission has given our prior comments in February and also for the continued willingness and cooperation of AOGCC Staff in getting further clarification on intentions to the proposed regulations. We do have some specific comments that Mr. Engel will review for you in the attached document. I will tell you that this document was prepared prior to the changes that we saw this morning from Ms. Williamson and so some of the sections no longer apply because they -- the revised draft do take into consideration our concerns so we will now only comment on three sections and we will revise our hard copy prior to the new deadline of June 25th to take into consideration these new R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 14 ! i 1 2 3~1 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 I changes. So, please, recognize that this was done -- these comments were done at the end of last week after. And so we will be commenting on Section (e), Section (j) and Section (1) as well as two of the -- we will comment briefly on two of the provisions that have been removed at the end, .508 and .509, but with that unless you have any questions I'll be happy to turn it over to Mr. Engel to walk through the three sections we have concerns with. COMMISSIONER NORMAN: Only one question for, perhaps, you and Mr. Engel. I'm understanding that you are both here appearing and speaking for the Alaska Oil and Gas, the AOGA. It's denominated the AOGCC task group..... MS. MORIARTY: Yes. COMMISSIONER NORMAN: .....as opposed to -- so you're speaking for your membership? MS. MORIARTY: Yes, we are and I thank you, Commissioner, I forgot to mention that in our work group meetings that we've had over the past couple of weeks on this revised proposal we have had representatives from both North Slope and Cook Inlet operators and they just are not able to be here today. CHAIRMAN SEAMOUNT: Thank you, Ms. Moriarty. Mr. Engel. MR. ENGEL: First I'd like to echo the comments that Kara made regarding the support and the willingness of the Commission Staff to work with industry and for us to understand the context and background for the regulations. It helped us R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 15 • 1 2 3 4 5 6 7 8 9 10 11 12 13 I 14 I 15 16 17 18 19 20 21 22 23 24 25 to understand the intent of some of these comments so it was really beneficial for us to work with the Staff and we really appreciated all that help we did receive. I'd like to state with Section (e) and Section (e) the current language that we see in the proposed draft is much clearer and workable than the earlier version that we did have so we do appreciate that consideration from the Commission. The one comment that we'd like to talk about is the requirements for a 10 day notice prior to inspection. And basically we feel that the 10 day period can hamper efficient planning and execution of field work associated with inspecting some of the suspended wells. For example, if we were going to be going out and doing some work on a pad that had a suspended well on it we could go some other work such as MITs, mechanical integrity tests or some safety valve inspections and we feel that that could actually hamper the ability to do such work with such a long period of notice to the Commission. And also the work schedule for 10 days out it could be potentially postponed due to weather considerations or work and equipment may be diverted to other high priority work and therefore we'd lose opportunity to do the work planned 10 days earlier. And additionally the Commission does require a 48 hour notice for safety valve system inspections for remote locations R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 16 1 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 so that would be more consistent with current regulations so we would consider -- or recommend that the Commission consider a 48 hour notice as opposed to a 10 day notice. COMMISSIONER NORMAN: I have a question on that point, Mr. Engel. Some times the suspended wells are off the beaten path, if you will, a little more. My question is as a matter of general practice this is 10 days, but it doesn't say that if an inspector were contacted arrangements couldn't be made for a shorter meeting. In your exper- -- well, it says at least 10 days, that's a default provision, but let me say it this way, in your experience, if you know, if our inspectors are contacted and said that we have this to do could we arrange this for 48 or 72 hours, are they generally accommodating or is there difficulty? MR. ENGEL: My experience is that the Commission Staff in the field have been very flexible in being able to meet notices like that and if they couldn't they would ask if there could be other arrangements made to accommodate an inspection at a different time or a different -- you know, to meet their schedule, so there is flexibility on the Commission's Staff. We just felt that the way it's currently worded that at least 10 day notice be given that would require us to plan in advance which could hamper operational flexibility on other pads. 25~~ COMMISSIONER NORMAN: Okay, thank you. R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 17 1 2' 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 MR. ENGEL: Okay. The next section I'd like to comment on would be Section (j) And, again, like Kara mentioned our comments reflect an earlier version of the regulation drafts and please consider that in the evaluation of our comments in consideration of those. The one comment I would like to make is in regard to the five day period to provide a report and we'd like to offer for consideration that the Commission consider changing that to be within five working days to account for periods of long weekends and such so we'd have the time to get the report in, in a timely manner. And the next section would be Section (1) and as Jane Williamson mentioned at the beginning of the testimony this morning that has been changed quite a bit, but I would like to offer our comments and just leave that with the Commission for consideration. And we understand the intent of the regulation is to allow the Commission the ability to take action with an operator in a variety of situations and the new draft language has been changed quite a bit to reflect that. We do, however, think that, that ability may be already in existence in the regulations. For example, application for Sundry Approval is contained in the proposed regulations at 25.110(b), enforcement and emergency actions are covered in 25.535 and .539. And also hearings on the Commission's own motion are already covered in Section 25.540. R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 18 1 2 3 4i 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 So we felt that the ability for the Commission to take action may already exist in the regulations and we consider -- we would recommend that the Commission consider our comments and if the Commission believes that you do need additional regulation on that topic that the section be clear and distinct so the operators know exactly what actions can be taken by the Commission. And just for clarity the last two sections I want to talk about are 25.508 and 25.509. I understand from Ms. Williamson's testimony this morning that they have been withdrawn from the regulations and the AOGA members did support those two sections in the regulations because they do provide operational flexibility to the operator from a field perspective and still (ph) provide due consideration of sound engineering practice. And also allows the Commission to approve any variation or waiver request that may come in so we do support those additions to the regulations. And that's all I have to comment on this morning. I'd be happy to take any questions from the Commission at this point if there are any. COMMISSIONER NORMAN: Mr. Engel, if I could go back over just to make sure that I've understood everything you said, your suggested changes, the first would be to subsection (e) and the concern was over the 10 days notice. And your recommendation was that it be 48 hours or two days -- 48 hours R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 19 l 21 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 I notice? MR. ENGEL: Yes, Commissioner. COMMISSIONER NORMAN: Okay. But your main point is that the 10 days is too long. Your next concerned is expressed with subsection (j) and it was with the five days and your request was that the word working day -- or working be sub- -- be inserted there? MR. ENGEL: Yes. COMMISSIONER NORMAN: And then on subsection (1) you mentioned the existing authority of the Commission and on this one I was trying to follow specifically, are you suggesting then that (1) is unnecessary? MR. ENGEL: Yes. Yes, Commissioner. COMMISSIONER NORMAN: Okay, all right, okay. And then finally the provision of waiver and variance hasn't gone away entirely, but it's been pulled back just so that with benefit of advice of legal counsel we can look at the interaction between that and the other provisions. MR. ENGEL: Very good, thank you for that clarification. COMMISSIONER NORMAN: Nothing more. CHAIRMAN SEAMOUNT: Thank you, Mr. Engel. MR. ENGEL: Thank you, Commissioner. CHAIRMAN SEAMOUNT: Okay. It looks like unless there's anybody else out there we have one more person to testify representing ConocoPhillips. R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 20 • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 MR. EGGEMEYER: I'll waive my testimony. We will have a letter a little later today with some minor comments, but nothing particularly major. COURT REPORTER: I can't..... CHAIRMAN SEAMOUNT: Okay. Let the record show that the representative from ConocoPhillips is -- has decided not to testify, but will follow-up with comments by letter. Okay. Thank you, Mr. Eggemeyer. Are there any other questions or comments? Hearing none, I don't think it's necessary to take a recess unless -- okay. No recess. Okay. As requested we will leave the record opened until the close of business on June 24th for additional public comment. And this issue will be brought up at the open meeting the next day, is that correct? MS. WILLIAMSON: It gust depends on how you want to handle..... CHAIRMAN SEAMOUNT: On the 25th. MS. WILLIAMSON: .....it, do you want to allow people to testify or comment on the 25th during the hearing -- during the meeting -- Public Meeting? CHAIRMAN SEAMOUNT: Is that..... COMMISSIONER NORMAN: Yeah. Yes, I think, of course, that will be a Public Meeting and so if after reviewing this it causes further public comments to be brought forth than that R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 21 1 2~, 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 I 23 24 25 I would be appropriate to do it. We'd listen to them, but I think right now if there are no further comments or even having heard those comments if the Commission is satisfied that we brought this as far as it is, then the Commission would contemplate voting on this at that time. CHAIRMAN SEAMOUNT: So what was the answer, I was distracted? COMMISSIONER NORMAN: The answer is yes, there would be the opportunity for additional comments if that's necessary. If any member of the public or industry or government feels like additional comment is necessary on the 25th and this will be an agenda item and there would be an opportunity for that. CHAIRMAN SEAMOUNT: And would that be part of this hearing or -- I guess -- I guess it would be? COMMISSIONER NORMAN: It would be if we -- we'd make sure that it gets into the record of this hearing, but if there are -- well, if it's appropriate at that time in the view though of the Commission then the Commission would contemplate taking action to approve these regulations at that time. MS. WILLIAMSON: Commissioners, this is Jane Williamson, I was thinking for one more thing. It sounds like all the comments that have come in are quite close and I think that we could instead of putting these changes on the website we possibly within the next day or two could come out with a final version that is actually coincides with what the public has R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 22 1 2, 3I 4 5 6 7 8 9 10 11 12 I 13 14 15 16 17 18 19 20 21 22 23 24 I 25 I been saying, so I don't know, which do you wan- -- would -- which would you prefer? CHAIRMAN SEAMOUNT: I would think we want the most updated version on the website as soon as possible. I mean, there may be other people out in the public that would like to look and comment on these (ph). MS. WILLIAMSON: Okay, so -- okay. CHAIRMAN SEAMOUNT: Okay. I assume everyone in this room has gotten copies of the revised, proposed regulations, if not Ms. Colombie could provide them to you. Any other comments, questions? COMMISSIONER NORMAN: Nothing. CHAIRMAN SEAMOUNT: Any other comments, questions from the public? Hearing none, do I hear a motion to adjourn? COMMISSIONER NORMAN: Move to adjourn. CHAIRMAN SEAMOUNT: I second. All in favor. COMMISSIONER NORMAN: Ayes. CHAIRMAN SEAMOUNT: We're adjourned. (Recessed - 9:39 a.m.) R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 23 1 C E R T I F I C A T E 2 UNITED STATES OF AMERICA ) ss. 3 STATE OF ALASKA ) 4 I, Suzan Kay Olson, Notary Public in and for the State of Alaska, residing at Anchorage, Alaska, and Reporter for R & R 5 Court Reporters, Inc., do hereby certify: 6 THAT the annexed and foregoing Public Hearing In the Matter of the Proposed Changes to Title 20, Chapter 25 of the 7 Alaska Administrative Code, pursuant to Sections 20 AAC 25.110 25.300, 25.508 and 25.509, was taken by Suzan Olson on the 17th 8 day of June, 2008, commencing at the hour of 9:00 a.m., at the Alaska Oil and Gas Conservation Commission, Anchorage, Alaska; 9 THAT this Hearing Transcript, as heretofore annexed, is a 10 true and correct transcription of the proceedings. taken and transcribed by Suzan Olson; 11 IN WITNESS WHEREOF, I have hereunto set my hand and 12 affixed my seal this 24th day of June, 2008. 13 14 Notary li i d for A?.a a My Commission Exp'res: 08/01/0 15 16 17 18 19 20 21 22 23 24 25 R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 i • STATE OF ALASKA OIL AND GAS CONSERVATION COMMISSION Suspended Wells Regulation hearing June 17, 2008 AT 9:00 am NAME AFFILIATION PHONE # TESTIFY (Yes or No) Register 200_ ~ MISCELLANEOUS BOARDS. Draft bT"`T/08 20 AAC 25.110 is repealed and readopted to read: !~~ 20 AAG 25.110. Suspended wells. (a) If allowed under 20 AAC 25.105, an operator may apply Deleted: the suspension of to the commission under (b) of this section forppproval to suspendea well or renewal of suspension , -" approval. The operator must state the reasons the well should be suspended, and not completed or abandoned, and must demonstrate to the commission's satisfaction that Deleted: health, safety and the (1)`the well , ` environment are protected by ensuring, - - - - among other things, that _ J (A) is mechanically sound; (B) will not allow the migration of fluids; (C) will not damage freshwater or producing or potentially producing formations; (D) will not impair the recovery of oil or gas; and (E) is secure. safe, and not a threat to public health; and (2) the well (A) has future utility assn r,xploratory, development, or service well; (B) is a viable candidate for redrilling; or (C) is located on a pad or platform with active producing or service wells. (b) An Application for Sundry Approvals (Form 10-403) must be approved by the commission before operations to suspend a well commence, except that oral approval may be requested under 20 AAC 25.507(b). The application must include all information and documentation relating to whether suspension is appropriate under (a) of this section and must specifically include the following: (1) wellbore diagrams illustrating the current and proposed mechanical configurations of the well; (2) information on abnormally geo-pressured or depleted strata; and (3) a description of the proposed work plan, including how the integrity of existing and proposed plugs will be demonstrated. Deleted: a producer 1 Register 200_ MISCELLANEOUS BOARDS Draft~7/08 Deleted: Any (c) Unless otherwise required by the commission, any well suspended under this section must be plugged in accordance with 20 AAC 25.112(,a)-(c) and (e)--(~. Upon written request of the operator, the ~ Deleted: ,, - _ - _ commission may approve a variance of this subsection if the variance provides at least equall~° effective , - Formatted: Font: (Default) Times . . ' New Roman, 11 pt, Font color: Auto _ _ _ - means of suspending the well under this subsection. Formatted: Font: (Default) Times New Roman, 11 pt, Font color: Auto " Deleted • mless othotherwise authorized f d) The- operator of a suspended well shall maintain the integrity and safety of the well and _- -_ - _ . _ -- _ _ _ _ -_ _ .. _. - -- _ _ _ _ ' by the commission, and the opera t ~ for mus comply with 20 AAC 25.070.¶ surrounding location and clear the location in accordance with 20 AAC 25.170(a)(2) or (b) or with 20 AAC 25.172(c)(2) or (d), as applicable. (e) For any well suspended prior to January 1, 2009, the operator must inspect the well site before September 30, 2010. For any well initially suspended on or after January 1, 2009, the operator must inspect the well site within twelve months after the date of suspension. For any well suspended under this section, subsequent inspections must be conducted within 24 months prior to September 30 of every calendar year ending in 0 or 5, except that no suspended well is required to undergo a subsequent inspection under this subsection (e) if the initial inspection under this subsection (e) occurred within the prior 24-month period. For all inspections under this subsection (e), the operator must provide the commission notice at least ten days prior to the inspection and the opportunity for commission inspectors to accompany the operator on the inspection tour. (f) Within 30 days after any well site inspection required under this section, the operator must file a Report of Sundry Well Operations (Form 10-404). The report shall include (1) a description of the condition of the wellhead and surface location, including any discoloration. fluids(s) or sheens) visible on the ground or in any nearby water; (2) a plat showing the location of the suspended well and any wells within aone-quarter- mile radius of the wellbore; (3) well pressure readings, where practicable; Register , and 200 ~ MISCELLANEOUS BOARDS Draft 6/08 (4) photographs clearly showing the condition of the wellhead and surrounding location; (5) an update of all information and documentation required in (b) of this section. Deleted: ten (g) A suspension or renewal of a suspension approved on or after January 1, 2009 is valid for 0 years from the date of approval. Deleted: A renewal may (h)~Zenewal of an existing suspenslon maybe requested by the submission of an Application for , ~ " _ _ __ Deleted: in Sundry Approvals (Form 10-403) containing all information and documentation required,~y(b) of this section. A renewal is not effective until approved by the commission..Within 24 months prior to the Deleted: the submission oft request for suspension renewal, awell-site inspection must be completed and, within 30 ^- " days after that well-site inspection, a Report of Sundry Well Operations (Form 10-404), including all information and documentation required under (f) of this section, must be filed with the commission. (i) For wells suspended prior to January 1, 2009, an Application for Sundry Approvals (Form 10- 403) requesting a suspension renewal must be submitted (1) no later than December 31, 2010 for all wells suspended prior to January 1, 2006; and (2) no later than December 31, 2015 for all wells suspended on or after January 1, 2006. (j) Thz Operator shall immediately notify the commission and propose appropriate action~~the ~%'_~ operator learns that,p suspended well is suspected to be~,l) mechanically unsound: (2) allowing the migration of fluids; (31 causing dama>?e to freshwater or producinz; or potentially producing formations; (4) impairing the recovery of oil or gas; or (5) a threat to public health or not secure or safe. Within 5 days after notifying the commission, the operator shall file a report and all relevant information and documentation regarding the well, including all information and documentation that may he required by the commission. Deleted: If Deleted: , az Deleted: any time, Deleted: health, safety, or the environment is, or may be, threatened by a suspended well Deleted: ,the operator shall immediately notify the commission and propose appropriate action. v Register 200__, MISCELLANEOUS BOARDS Draft~7/08 Deleted • , at any time, -~ (k) IfEthe operator learns that any information required under this section is no longer complete or , accurate, the operator shall, within 30 days, notify the commission in writing, provide updated information, and propose appropriate action. - lFormatted: Indent: Left: 0" .- - (1) ~t an~ime the commission may rec~ueSt an operator to provide (within 10 days of the requests any information concerningwhether suspension remains appropriate for a well. If the operator does not comply with the information request or if the commission determines that the information in the commission's files is insufficient to support allowine the well to remain sumended, the commission may take action under 20 AAC 25.540, includinQ~ 4 (1) ~evokin~ the well's suspended status, effective as of the date determined by the , - - _ -- _ ~~ commission, and ~~-~rescribin~ actions the operator must take,. which may include plugging and `, _ ~ abandonment of the well. If action is ordered, including plugging and abandonment, a separate notice and i`',,. hearing is not required notwithstanding any other provision of this chapter, including 20 AAC 25.105. .._ ~' jm) Upon written request of the operator any deadlines under this section may be amended by i the commission upon a showine of food cause. .~ History: (Eff. 4/2/86, Register 97; am 11/7/99, Register 152; am / /_, Register ~ Authority: AS 31.05.030 AS 31.05.040 AS 31.05.095 Deleted: If the commission lacks sufficient information to determine whether suspension is or remains appropriate for a well under (a) of the section, if suspension is no longer appropriate for a well under (a) of this section, including because plugging and abandonment is required under 20 AAC 25. I05, or if, with respect to the well, the operator violated a requirement of, or order issued under, AS 31.05 or this c^h_apter_, Jthe commission may Deleted: (1) issue a notice identifying, or approve an Application for Sundry Approvals (Form 10-403) committing to, actions necessary to maintain the well's suspended status, oc¶ (2) afrer a notice and hearing, issue an order that either er both Formatted: Indent: First line: 1" Deleted: i Deleted: revokes Deleted: . Deleted: ii Deleted: prescribes Formatted: Indent: First line: 0.5", No bullets or numbering, Tabs: Not at 0" Formatted: Indent: Left: 1" 4 Alaska Oil and Gas Association 121 W. Fireweed Lane, Suite 207 Anchorage, Alaska 99503-2035 Phone: (907) 272-1481 Fax: (907) 279-8114 Email: moriaty@aoga.org Kara Moriarty, Deputy Director June 17, 2008 Commissioner Dan Seamount Alaska Oil & Gas Conservation Commission 333 W. 7~' Avenue, Suite I00 Anchorage, AK 99501 Re: Proposed Changes to 20 AAC 25.110 -Suspended Wells, 25.300 Request for Information, 25.508 Waivers of Regulations, 25.509 Variances from Regulations Dear Commissioner Seamount: The 17 members of the Alaska Oil & Gas Association (AOGA) account for the majority of oil and gas exploration, development, production, transportation, refining and marketing activities in the state. We appreciate the opportunity to comment on these proposed regulations. As indicated in previous testimony on this subject, AOGA supports the- spirit of the proposed changes to the suspended wells regulations, and agrees that a requirement for periodic review of suspended wells and site inspection is appropriate. We appreciate the consideration the Alaska Oil and Gas Commission (AOGCC) has given to the industry comments submitted in the previous hearing on February 28 and it is apparent that several of our concerns were met in the latest draft of proposed regulations. We also appreciate the willingness of the AOGCC staff to provide additional background for the current proposed regulations. The regulations must provide clear guidance for when suspension of a well is appropriate, under what circumstances a suspension will be approved and the ongoing requirements for suspended wells. We do have some specific comments regarding the details contained in the proposed language, which can be found in the attached document. Please consider this communication and the attachment as part of the public record associated with this subject. If you have any questions, please contact me or Harry Engel, chairman of our AOGCC task group, at 564-4194. Sincerely, KARA MORIARTY Deputy Director Attachment Cc: Commissioner John Norman Commissioner Cathy Foerster f Alaska Oil and Gas Association, Comments on Proposed Alaska Oil and Gas Conservation Commission (AOGCC) Regulation Changes 20 AAC 25..110 Suspended Wells, 25.300 Request for Information, 25.508 Waivers of Regulations, 25.509 Variances from Regulations Specific Comments on Proposed 20 AAC 25 110- Suspended Wells (a) 11' .~ll~~~~ cal ultd~*r ZO ,-'~,,-1,wv; 25.1 tl~~, a~ul oheratoR' ma}` ~hl~ty to floc carni~zissior~ ue~~lcr (b) of this section~fot• tl-e s~rspe~~sio~~ of s~ ti~~ell or rene~+-al of szzspe~ision ~tlal~ro~-al. 'T'l~e operator must s~t~at~° tla.e reasr~us the w~>li sh~~~~ltl he st~shended, and nol con~hletcrl or s~b:~~~~loned, and n~~~st dc-~a~a~ast_eate t~? t1~e c~r~ntn~.ission's sati,sfactio~i th~~t { 1) hcaitf~, saf~ei~~ .tz~cl the ctt~~ironntent ,ire hr€?tectetl b~~ ens~s~~ii~~~,, a-i-o~t=,~ ollter tlui~~~,,, tla;~t tl~s~ ~~~eli (<1) is mecha~~icall}' so~~n{.l; ([3) ~4~ill not ailo«~ the «tigratio~t of lli~ids; (C~) ~i~ill -tot ~,lam~~~;e (~~°esla~~ater oi~ l~~-odt~~.~i~~„; o~~ hotenti~~ll~~ l~~•oclucin~; fot°t~~:~G~-~js . (l?) v~-ill not: i~a~l~air tt~e recavert~ r.~f oil o~• r~<as; a~~~l ([:) is secu~•e; and (~} ll~e ~lcll (t~? has future ntilil}~ :AS ~~ prod~~t-~~t~ oa• set~~~ice well; (E3) is a •~iable ~:andidatc for ~~etl~•illi~~~; or (~~} is located a~i a hall o-- hlaff~ai•~t~ ~~s~ith <uti~~c l~roducinR n:• rte~-s~icc ~+~ells. AOGA Comment: • We appreciate the criteria the AOGCC has included in this section., however, we have concerns with two of the additional phrases that have been included; "health, safety and the environment" and "by ensuring, among other things". • If adopted, the phrase "health, safety and the environment" would appear for the first time in AOGCC regulations and may cause confusion with other regulatory agencies, such as the Department of Environmental Conservation (DEC). We would recommend that 20 AAC 25.110(a)(1) be shortened to simply state "the well". • We recommend the phrase "by ensuring, among other things" be removed because it creates a potentially unlimited scope for the regulation (i.e. if an operator can demonstrate the items in 20 AAC 25.110(a)(l)(A)-(E), what "other things" might it be required to "ensure"?). (b) ~~A~n n.hlllic.~lion ol~ Suntl~y Ahpro~~als (Dorm 10-~t03) mnsl !.-e ahl-ror~ed by~ the co~u~~aissioa~ before operations to suspend :~ well con~~n~ence, except that oral approval may be re~l~lestcd ur~det- ZQ :1,~~(: 25.507(b). Tl~e application nn~sl: inch~de all info-rmation and docume~~t:~tion relating to whether suspension is appropriate under (a) of this section and mull. spccilic:~ily ir~rlpdc the li~llotiiriug: (1) well gore diagrams ilh~stratit~g the current and prol~~osed mechanical cor~figuratioi~s ol'tl~c «ell; (1} inli~rmatio~- on abnor~~~allti~ geo-pressure~l yr depleted strata; and 4 ~4 ~s ai~Ast'~'iplvra t~#~ £1=.~~ If~•ssp~~secl ~~t~p'ic i~1;Fs~, iEtc3s~~li~a~ i~t~e~ tl~t° intc~~;r•it4 of c-~a,~ti~a~; ,~a~cl l~»~oik~~~~ccl i~lt~;~s ~~r~ill lza^ clc~~~na~~S~•ate~i. AOGA Comment; • The phrase "The application must include all information and documentation relating to whether suspension is appropriate under (a) of this section and must specifically include the following ..." could be simplified to state "In addition to meeting the requirements of (a) of this section, the application must include ... ". (c) r1.ny ~~rell sa~slae~aded under this section must be plaagged iaa accoa°danee with 20 r~F\C 25>11? unless otheE~4~ise a~~ihorizcd l,~}~ fine cosiu~wissitnN, a~REI (lie operator ~a~usfi comply t~ritia 20 ~1,,~~(:' 25.1170. AOGA Comment: • The reference to 20 AAC 25.112 indicates the minimum suspension requirement includes all plugs including the surface plug. The existing regulation clearly delineates circumstances under which the requirements of 20 AAC 25. l I2(d} regarding surface plugs do not apply. The proposed regulation lacks this certainty because the specific reference to 20 AAC 25.112(d) has been deleted. AOGA believes it is appropriate to not require a surface plug under the circumstances described in 20 AAC 25.110(d)(1)-(2), as the addition of the surface plug may significantly complicate efforts to re-enter a well. We support retention of the existing regulation, with the proposed addition of the phrase "unless otherwise authorized by the commission". This phrase will allow differing plugging technologies to be employed if authorized by the commission. • The inclusion of a reference .to 20 AAC 25.070 seems out of place in this section. 20 AAC 25.070 contains requirements for records and reporting and is not specifically related to plugging requirements. The operator must already comply with 20 AAC 25.070, so repeating that requirement here seems unnecessary. (d) "1'he operaatoa• of ~a suspended rwell shall maintain the integrity antl safety of tlae ~~•ell and surrouaading location and clear tlae. loc:atian iat accordance ~~~ith 20 .~,~~C' 25.170{a)(2) or (li) or with 20 ~1.~~C 25.172(c)(2} or (d), as al~pticablc:. AOGA comment: None. (e) E~og• a-~y well suspended px-ior to ,la.nuaa;F 1, 2009, the operator must iaaspect tlae ~~-ell site l:~etor~~ ~±eptcmber ;~0, 2010. l~or any ~~~~ell initially suspen~lecl on o~• after January 1, 2009, the oh~~rator must inspect the. well site within hveh•e mo~~ths <~{ter the date al'suspeiasion. nor any ~~•ell suspended under finis section, subsequent inspectioias must be conducted ~~~ithiu 2~! months pri~~-r to Septcaraber 30 of every year ending in 0 or 5, e~iccpfi that no suspe~aded ~~•ell is required to undergo a subsequent inspections unCler this subsectio~a (e) if the initial inspection under this subsection (e) occurred ~i~ithin the prior 2J month period. ~'or all isaspections ~~ncler this subsection (e), dse operator must lyrovidc the commission notice at bast ten drays prior to the inspection and the oplaortussity for cosnnsissioss issspectors to accompany the operator on the inspection toau•. 2 AOGA Comment: The proposed language is much clearer and workable than the earlier version.. The ten. day notice requirement could hamper efficient planning of field activities and reduce flexibility to take advantage of opportunities to combine the inspection visits with other work. We recommend a 48-hour notice period prior to inspections. A 48-hour notice timeframe would be consistent with the proposed Safety Valve System regulations which require 48 hours notice of testing for remote locations. (f) ~~a'ithin ;+0 dae~s after anti- ~~~~cll site iztspectinn requir•ecl ~_~~ide~• this sectio~~, tt-e c-pcr<~to~` ~a~ust file ~_ Relfort oCSund~ti~ «~ell (?lae~•ations (Foa•m 1. (?-4t1~}. ~l~t~e repo°t shall incl~~de ~.1) a description of tl~e condition of th,e wellhead .~iu# su~•f.~ce location, incl~adi~~g any 11~~ids(s) oA• shcen(s) visible on the ~~•onnd or in any ne:~-°b~~ ~~~ <itei; (?? a flat sht~«~ina the location of the saspe~~ded o~~ell ~t~~~l art3- ~~~ells ~o~ithi~i :~ one- quartcr a~~i[~~ radius of the ~~~cllborc' f'tii} ~b~ell hr•css~wrc rea~aints, ~ti~he~rc p-'acticable; (,~) ltihoti~~~•apl~s cle.u•l~~ sho~~~ir-g the co~~cliGon +.~f the z~~ellhead and se~rrot~ncli~A~ location: a~~d (~) ~~~a update of sill iraforruati~n a~~d doc~~~~aent~~tit~~aa rc~:gi~ired in (b) of this section. AOGA Comment: None (~) f1 sa~sp~nsio~~ or reA~e~~-al of ,i suspensio~i aElala~•ovcd on oz• afte~• tlaaa~~ar;~~ 1, 2009 is ~~ali[t 1'or 10 i~c~aa~s. AOGA Comment: None (h) A rene~s°al n~a~, be 1-e~lt~ested I?y the stEbmission of an A1~htication for Sun~l~-~= ,lppro~~als (Dorm 10-~03) containing all information and documentation regi~~ia•ed in (b) of this section. Within ZGd r~aontlts pi°it~~• to the request for suspension re~xeii~al, :~ well-site insl~ectio~i auust be completed and, ti~rithir.~ 30 days after that ~r~ell-site inspection, a :Report of Sundz•~~ Nell Operatioaas (Form 10--t0~1), incit~diia~- afl inforFt~atioii and doc~~me~nts~tion, req~ured t~~~der (f) of this section, ~~i~rst be filed ~i-ith the commission. AOGA Comment: • In the absence of a time period by which the commission shall act upon a submitted renewal request, a provision should be added to allow continued suspended well status until there is action by the commission on the renewal application. (i) For «~clls st~shendcd prior to ~fanna~ti~ I_, 2009, an Application for St~ndE;~~ .1,plarovals (form ~10-=t03) requesting a suspension rene«~al must lie submitted (I) Rio late~• t:hart December 31, 201(1 for all wells suspended prior to Janua~•~~ 1, 2006• and (2) no tatcr than December 31, 2015 for all ~~~ells suspended an or after .lanua~y 1, ~t~o~. 3 AOGA Comment: None (,j) lf, s-t ,--~~= ti-ue, tl-e ape-~,-(-r-• learns t-hat heathl-, s.-l'ct~-, c}-° the e--virt---n-e--f is, a-• -ua4~ tie, th-~e.~-te--ed 1»~ a :~--spc--derl tir~ell, tl-c ahe~~ato-- sl-~~tt i--unccti<-tel~~ ~-atiC~~ tl-e c:oRa-w-ussia-~ and propose ahh-•ol~riate action. ~1'itl-i-- ~ clad-s after --atif~~ing the ca-nn-issio--, the operator shall lile ~e -~epo-~t and all relevar-t i--for-~aation ;tnc# doe--n-entation regardi--g the well, inch~cli-~~; all information and cloct-n-e-~t:aNo-i that rt-a~- be required ta~~ the cau~naissio-~. AOGA Comment: As stated in section (a), the proposed language may create conflicts or duplication between AOGCC regulations and regulations of other agencies regarding "health, safety and environment". We recommend the reference to "the environment" be removed to be consistent with the Emergency Action provisions of 20 AAC 25.539(a). The requirement for a report to be submitted within a five day period may prove difficult in some situations, such as long holiday weekends. AOGA recommends the requirement be changed to "Within 5 working days ...". (l4) lf, at amp ti-ne the operato-° tear--s that. a-i~~ infor--i~ztit--- regz-ired --nele-° this section i4 no longer complete or ace--rate, the operator shall, within 30 da~-s, notif~~ tl-e cam-nission in ~~~riting, provide updated i--fo-•matio--, a-ad propose approl--'iate action. AOGA Comment: None. (tl If tl-e co--i--~issio-- lacks sufficient: information to deter-rune i~~hetl-er suspe--sion is o-• re.-nai--s apt~ropriate for a well ~-nder (:~) of the secdan, if suspensian is no to-~~e-- approp-•iate for a well nndcr (a) of this section, includi--~; l-ecai-se pl--gl;i--~ a--d F-bando~-~ne~at is a•ecfuired under 2t1 ,~t1C 25.105, or if, ~~-ith respect to the ~~~elt, the ope-°ator ~~iolated ~- re-lui-~en-ent o#; or orde-° iss--ed a--de-~, f~S 31.(15 or this cl-apter, the commission -nav (l) issue a notice ideutif~~ing, or al-prove ;--- t1~hplicatian for 5und--~~ ~1,hl~rovals (i~or--~ t0-4(')3) conamitti--g to, actions --ecessary to xt-aintaintl-e well's susl.~ended status, or (2) after <- notice and l-cari--~;, iss--e an order that dither a-• bath (i) revokes the ~~~eii"s si-spended status, effective as t~-f the date deters-ined b~~ the cana--ussion. and (ii) prescri#~es actions the operator must tale, which matt include plugging a--d ,aba--dounae--t of the well. If actin-- i5 ordered, inch-cling plc-aging and abandonu-ent, a separ,ite notice and hearing is not red--ired not~~~ithstauding and- otl-er provisio-- of tl-is chapter, int-ludi--g 20 ,SAC 25.105. • AOGA Comment: We understand the intent of this section is to allow the AOGCC the ability to take action in a variety of situations. Some of these situations appear to be already covered by other existing or proposed regulations. For instance, the requirements for an Application for Sundry Approvals is contained in proposed 20 AAC 25.110 (b), enforcement and emergency actions are covered in 20 AAC 25.535 and 25.539 and hearings on the commission's own motion are covered in 20 AAC 25.540. 4 If the AOGCC believes that (1) is necessary, the introduction section is ambiguous and should be rewritten to provide clarity regarding the situations that may cause the AOGCC to take action. 20 :~1.1(_' 2~.:t0O. Recl~~~°sts f'or lr~fort~~;ttiort. ~~ot~i~itltstandin~; <t~~~. otlEe~` p~•~~a~~isio~~ of'fl~is chalatcr, if the coz»rnissio~i re~~lt~ests f.h,~t a he~•son prop°ide in['o~•-natiotz o~• dot•~~~~-,e~ztatior~ a°ez;a~'din;~ ;~ mater ~~rillun the co~~~anissiou's,jur~•isGliction, that perst~~~i n~nst pro~~icl+e that. ii~fora-~~itiozi ~~~iHiin 3t) d~.vs of the dF~te the ~•eq«est tivas sk*-~t c~~• withi~i ~~i~other tune period speciiierl ho- the ron~kt~ission. AOGA Comment: None. ?0 :i,'~r' 1.~„~t?$. ~'~a•i~a,r.~ces from s~et,~ilations. C'-~less ~tr~tice rt~~~l he.~x~r•ir~~ ar•e rerl~rired nnder this chsil~te~~, uho~z ~4~ritten re~l-~cst from tlae operator, tl~e eo~~~r~~ission n~K~~~ .xl~l~a•~»'c sA ^~~,ari~~~~e+e f~°o~a~ a retli~ircment of this chaptea~ if the ~~a~~ia~~ce provides 1t lesast s~iz e~u,~lly ef~ectivc i-~e~~~~s gal' co~i~hlv~in~ ~~;~itla the a•equi~~enae~~t. AOGA Comment: We support the inclusion of this section within the regulations to provide flexibility. 2O ;'~,1C: 25.:i(19. l~'rtive rs of reh~ElatioiES. t~~iless ttotit'e F~n~t he:~rizi;~ sire retlr~irc~.~ t-nder ti~is chapter, e~lto-s written E~cquest from the oper°ator•, 1~he cot~tt-tissiott R~~~~~~ apl~~•ove :~ waive~• ol~ this tluaptc~r if the w,iiver ti~~ill. not l,~#°on~ote tivast_e o~• jeopa~•dize cor-•elative ~~i~hts, will aaot cona~~~•on~ise tl~e 4.±tti~~t,ate recove~-~- ol` liydroc~t~•borrs, is based on sound en~ineeA~ing and geoscie~tce p~-i~~cil}les, and will ~~ot result i~n ~n iEtcrcasecl risl~ to l~cs~lth, sal`et~~ or the e~~al~iroa~~~~eAat. AOGA Comment: We support the inclusion of this section within the regulations to provide flexibility. Alaska Oil and Gas Association 121 W. Fireweed Lane, Suite 207 Anchorage, Alaska 99503-2035 Phone: (907) 272-1481 Fax: (907) 279-8114 Email: moriarty@aoga.org Kara Moriarty, Deputy Director June 25, 2008 Commissioner Dan Seamount Alaska Oil & Gas Conservation Commission 333 W. 7th Avenue, Suite 100 Anchorage, AK 99501 Dear Commissioner Seamount: ~,°''~r Al~~~~ ~El,~ ~ ~ ~ ~ ~~~~ ~~ ~o ~~E~~ . '~~- ~o Re: Proposed Changes to 20 AAC 25.110 -Suspended Wells, 25.300 Request for Information, 25.508 Waivers of Regulations, 25.509 Variances from Regulations The 17 members of the Alaska Oil & Gas Association (AOGA) account for the majority of oil and gas exploration, development, production, transportation, refining and marketing activities in the state. We appreciate the opportunity to comment on these proposed regulations. As indicated in previous testimony on this subject, AOGA supports the spirit of the proposed changes to the suspended wells regulations, and agrees that a requirement for periodic review of suspended wells and site inspection is appropriate. The regulations must provide clear guidance for when suspension of a well is appropriate, under what circumstances a suspension will be approved and the ongoing requirements for suspended wells. We appreciate the consideration the Alaska Oil and Gas Commission (AOGCC) has given to the industry comments submitted in previous hearings on February 28 and June 17. We have especially appreciated the. willingness and cooperation of the AOGCC staff to provide background and answer questions on the proposed regulations throughout this process. It is apparent that several of our concerns were met in the latest draft of proposed regulations, and we do not have any further comment on the draft that will be submitted by AOGCC staff at your June 25 public meeting. If you have any questions, please contact me or Harry Engel, chairman of our AOGCC task group, at 564-4194. Sincerely, Cc: Commissioner John Norman Commissioner Cathy Foerster f /J ~ KARA MORIARTY Deputy Director ~;« , „~ • • ~ C©nocoPh~ll~ps Alaska, Inc. .. x=.~e June 17, 2008 Mr. Daniel T. Seamount, Jr., Chairman Alaska Oil and Gas Conservation Commission 333 W. 7th Avenue, Suite 100 Anchorage, Alaska 99501-3539 Re: Comments of ConocoPhillips Alaska, Inc. Proposed Regulation Changes to 20 AAC 25.110 Dear Chairman Seamount: Helene E. Harding Vice President North Slope Operations & Development, Alaska P.O. Box 100360 Anchorage, AK 99510-0360 Phone 907.265.6513 Fax 907.263-4438 ..iUN ~ ~ Liii;i~ ~~~~~~~rya~ ~:a4 ?~_ ~uu ~~~iu. ~ui~ir~i~si9n ConocoPhillips Alaska, Inc. ("CPAI") appreciates the opportunity to comment on the proposed revisions to 20 AAC 25.110 regulations addressing suspended wells. The regulations proposed by the Commission reflect the commendable work by the Commission's staff in drafting, soliciting and analyzing input, and incorporating changes where necessary to provide a workable process for suspending wellbores that will continue to protect Alaska's resources. CPAI supports the currently proposed regulations, but requests that the Commission consider a couple of clarifying revisions, as described below. Proposed regulation 20 AAC 25.110(a). Pursuant to subsection (1) of this proposed regulation, an operator "must demonstrate to the commission's satisfaction that (1) health, safety and environment are protected by ensuring, among other things, that the well ... " The phrase "among other things" indicates that the list does not provide adequate notice to the applicant about what all must be demonstrated to the Commission as ensured in order to obtain approval to suspend a well or to continue to suspend a well. CPAI suggests that the phrase "among other things" be replaced by the phrase, "subject to all other requirements of AS 31.05," which should eliminate the notice issue. Proposed regulation 20 AAC 25.110(k). For clarification, CPAI suggests that at the end of this regulation section, the words "as necessary" be added. Not every situation where there is a change in the status of a well giving rise to the requirement to provide updated information to the Commission will necessarily require that any action be taken. Proposed regulation 20 AAC 25.110(1). CPAI suggests that for clarity, an introductory phrase be added to this proposed regulation as follows: "Upon receipt of an application for suspension or renewal of suspension, or upon receipt of new or updated information regarding a suspended well, ..." Without such a phrase, the regulation would appear to allow the Commission to ~ ~ Mr. Daniel T. Seamount Jr~hairman AOGCC June 17, 2008, Page 2 determine to reverse prior final decisions without any change in the information currently on record at the Commission. CPAI appreciates the time and effort the Commission staff has put into this regulatory process, and the Commission's consideration of the comments submitted in this letter. If there are questions regarding CPAI's comments, please contact Randy Kanady at 263-4126, or Jerome Eggemeyer at 265-6049. Sincerely, Helene E. Harding ~ ~ Alaska Oil and Gas Association 121 W. Fireweed Lane, Suite 207 Anchorage, Alaska 99503-2035 Phone: (907) 272-1481 Fax: (907) 279-8114 Email: moriarty@aoga.org Kara Moriarty, Deputy Director June 17, 2008 Commissioner Dan Seamount Alaska Oil & Gas Conservation Commission 333 W. 7~` Avenue, Suite 100 Anchorage, AK 99501 Re: Proposed Changes to 20 AAC 25.110 -Suspended Wells 25.300 Request for Information 25.508 Waivers of Regulations 25.509 Variances from Regulations Dear Commissioner Seamount: The 17 members of the Alaska Oil & Gas Association (AOGA) account for the majority of oil and gas exploration, development, production, transportation, refining and marketing activities in the state. We appreciate the opportunity to comment on these proposed regulations. As indicated in previous testimony on this subject, AOGA supports the spirit of the proposed changes to the suspended wells regulations, and agrees that a requirement for periodic review of suspended wells and site inspection is appropriate. We appreciate the consideration the Alaska Oil and Gas Commission (AOGCC) has given to the industry comments submitted in the previous hearing on February 28 and it is apparent that several of our concerns were met in the latest draft of proposed regulations. We also appreciate the willingness of the AOGCC staff to provide additional background for the current proposed regulations. The regulations must provide clear guidance for when suspension of a well is appropriate, under what circumstances a suspension will be approved and the ongoing requirements for suspended wells. We do have some specific comments regarding the details contained in the proposed language, which can be found in the attached document. Please consider this communication and the attachment as part of the public record associated with this subject. If you have any questions, please contact me or Harry Engel, chairman of our AOGCC task group, at 564-4194. Sincerely, KARA MORIARTY Deputy Director Attachment Cc: Commissioner John Norman Commissioner Cathy Foerster Alaska Oil and Gas Association, Comments on Proposed Alaska Oil and Gas Conservation Commission (AOGCC) Regulation Changes 20 AAC 25.110 Suspended Wells, 25.300 Request for Information, 25.508 Waivers of Regulations, 25.509 Variances from Regulations Specific Comments on Proposed 20 AAC 25 110• Suspended Wells (a) If alltn~-ed under Ztl AAC 2~.10~, and operator may alaply to the eo~umissio~t under (b) of this sectiu~~ .for t ~c s~~spension of a well or renewal of suspension approval. The operator musk state the E•easons the well sho~~ld be suslaended, and tot completed or abandoned, and ~~aust demonstrat~~.~ ko the coamizission's satisfat~tio-a thak (~1) hs~d~lth, safek~~ and the c~ivironrnenk are. protected h~~ ensuri~ag, among other things, that ~lhe well (r~) is rnccha-aically soEUid; (l3~) will not allow tl~e migration of fluids; (C) ~~~~ill not damage f~•esl«vaker or produci~ag or potentially p-•och~cing fornt<ttions (D) will not impair the ~•ecovcr;}~ of oil or gas; and {1±',) is secu~•c, and (2) the ~~-ell (A} has future utility- as a pE•od~.~cer or service well, (13) is a viable candidate for red~•illii~g; or (C) is located on ~~ pad or plaifor-n with active producing or service wells. AOGA Comment: • We appreciate the criteria the AOGCC has included in this section, however, we have concerns with two of the additional phrases that have been included; "health, safety and the environment" and "by ensuring, among other things". • If adopted, the phrase "health, safety and the environment" would appear for the first time in AOGCC regulations and may cause confusion with other regulatory agencies, such as the Department of Environmental Conservation (DEC). We would recommend that 20 AAC 25.110(a)(1) be shortened to simply state "the well". • We recommend the phrase "by ensuring, among other things" be removed because it creates a potentially unlimited scope for the regulation (i.e. if an operator can demonstrate the items in 20 AAC 25.110(a)(1)(A)-(E), what "other things" might it be required to "ensure"?). (h) An ,~~hltlicalion of Simd~•y ~~,l~pro~~als (Dorm 1(}-x{(33} must lie. approved lad- the conrn~issio~x before oper<~kions to suspend a wall com~ucncf~~, eccept thak oral al3prova may he requested under 20 AAC 2~.507(b}. "~hhe~ application musk include all information and documentation relating to whekl~er suspensio~a is appropriate antler (a) of this section and ~~aust specibcalh~ include the following: (1} well hog°e diagrams illustrating the eui•j°ent ;r~~d laroltosed mechanical configurations of the ~~•ell, (2) information o~~i ah~~orEUallp geo-pressured or dcltlete~l st+~ata; and ( ~l :- -1-°s~-•iptic?-- of"the 1--~r-1-o~c~ci ~~s~s--~k ~xl.-n, i--ci--r1i~-<, 1-n~g~ t1-e i-itc~--it~ t-1' c*ris~li--,; ~~nd p-°tatac-~c-1 hl--ss ~a~iil he clen~t-nstr~t-1~~i. AOGA Comment: • The phrase "The application must include all information and documentation. relating to whether suspension is appropriate under (a) of this section and must specifically include the following ..." could be simplified to state "In addition to meeting the requirements of (a) of this section, the application must include ...". (~) Any ~~feli ~--spe-adecl a-~acier this section must be pl-agged in ac-corda-ace with 10 Art{~' 2q.i 1~ ---aicss oilaer~~~ise autf-oa•ized by the c<-nan-issio--, ar.aai fire of-e-~~ator mast co---i~ly evith 1.O A~~(' 25.0.0. AOGA Comment: • Tl~e reference to 20 AAC 25.112 indicates the minimum suspension requirement includes all plugs including the surface plug. The existing regulation clearly delineates circumstances under which the requirements of 20 AAC 25.1 l 2(d) regarding surface plugs do not apply. The proposed regulation lacks this certainty because the specific reference to 20 AAC 25.112(d) has been deleted. AOGA believes it is appropriate to not require a surface plug under the circumstances described in 20 AAC 25.110(d)(1)-(2), as the addition of the surface plug may significantly complicate efforts to re-enter a well. We support retention of the existing regulation, with the proposed addition of the phrase "unless otherwise authorized by the commission". This phrase will allow differing plugging technologies to be employed if authorized by the commission. • The inclusion of a reference to 20 AAC 25.070 seems out of place in this section. 20 AAC 25.070 contains requirements for records and reporting and is not specifically related to plugging requirements. The operator must already comply with 20 AAC 25.070, so repeating that requirement here seems unnecessary. (d} ~i'he olaerat--r• of a suspended ~~-ei1 siaall maintai-~ the integrity and safety of the well and surrounding location and clear t{ae ideation in~ accordance with ZO AAA: 25.170(a)(Z) o-• (h) or with 2(~ :1~1.G Z5.172(c)(,2j o-• (d), as applicable. AOGA comment: None. (e) .For any ~r~ell suspended prior to Janua-_y 1, 2009, the operator must inspect the well site before September 30, 2010. For away well initially suspended ozt or• ;after Janu:--y 1, 2009, the operator mt-st inspect the rcell site within t«~elve months after tlae date of siaspe-asion. For any well suspended under this section, sulisequeut iaaspectio-as mnst be ca--ducled within 2~ -uonths pa•ior to September 30 of every year ending in 0 0-~ ~, except that no suspended well is required to undergo a subsequent. inspection under this subsection (e.) if tlae initial inspection under this subsection (e) deer--•red withiaa tl-e prior 2~ month period. Fo-• all inspections under this subsection (e), the operator must provide. tlae commission --otice at least ten days prior to the i--spection and the opportunity for commission inspectors to .-ccompaa-} ttae operator on the inspection to--a•. 2 ~ " AOGA Comment: • The proposed language is much clearer and workable than the earlier version. • The ten day notice requirement could hamper efficient planning of field activities and reduce flexibility to take advantage of opportunities to combine the inspection visits with other work. We recommend a 48-hour notice period prior to inspections. A 48-hour notice timeframe would be consistent with the proposed Safety Valve System regulations which require 48 hours notice of testing for remote locations. (f')'l~ithi~~ 3(- daz~s after anv well site inspection req~~ired «a~c9e-• this sectio~~. the ohe~`ator mist file a Report of Ssindl'}- ~~4`ell Operatioa~s (l~o~i•-i~ 10-~i0~), The ~'epoa-t shall inclctde (f) a dc,~criptinn ef'tl~e conr.litiun of the tivrtlhc.~d and s~arfacetocation, including any fl~titls(s) or sheens) r~isihle o~~ t ie ground or in anv nearby water; (2) a flat sho~~~i~~g the location oCthe s~~spertded ~~~ell ~~ul an}' a~-ells s~~ithin a one- ~luartea~ mile r:~cli~~s of tl-e ii~ellbore' (,l,) ~~o~ell pA°css~~~~e readings, y~~here practicalalc; (~l) lahotogcaphs clear°ly shor ing the conc.litioi~ of the ~~ ellhc.~ri and snrrot~ndiiag locatio~t, an:l (~) a~~ ul~~date of all ii~formativn and docta~a~entation required in (b) oC this section. AOGA Comment: None (~) ~~1 s~ash~~n5ion od• renewal of a s~~spension aplfrtlvecl on o~~ after tlanu~~i~- 1, 200) is valid Co~• 10 years. AOGA Comment: None (l~) A rene~~-a) inay be requested by the subnaissioEZ of <~n ,Rpplicatiott for Sundrl- Al~hro~~~als (Dorm f0-~t03) containing ail il~formation aid doet~rnentation required in (b) of this section. ~~%ithin 2~t months prior to the req~~est Cor suspension rene~~~al, a well-site inspectio^ rmist he completed a~~cl, ~i~ithir~ 3fl days after that: ~~~~ell-site inspectio~a, a Repo~~t of Sund~-~- Nell Ol~eraNons (f`orm It?-~04), includi~ig all ir~Coi~matiou and cioc~an~el~tation regni~•ed teitde~• (f) of this section, must hc~ filed ~~~ith the coniuaission. AOGA Comment: • In the absence of a time period by which the commission shall act upon a submitted renewal request, a provision should be added to allow continued suspended well status until there is action by the commission on the renewal application. (i) FOI` ~~~clJs s~~sl~ended prior to Janua~~- 1, 2009, ;~~~ ~pplicatior-, for Snndr~~ Al}proe-als (Corm lt)-~t03) requesting a sl~sllension reaie~i-al n:~ust he submitted (1) no later th;~n l)ecernber 31, 2010 for all wells suspended prior to ,lanuary 1, 200ti; ar~d (2) no l,a~ter than Ilecember 31, 2015 ftn~ all t~-ells s~sspended on or after.,larauai-y , i OOG. ,_ AOGA Comment: None (.~) If, a~t. ~-n;' ti--~~, ll-e +.~I-erator fear-~-s~fl-at lief-Itl-, safeta~, or• t1~e e--~~iros-uic--I is, o-~ ntati~ be, threat-~--c~l k~ti' ;- s--spe--dcd ~~~eII, tl-e -tperalor shall i--~mediatcl~~ --t-fits~ the ct---~-aaissi--n and prof,-osc appropriate actio--. ~~'ill-i-- d:-~~s after n--tiii-in~ tl-e con--~~issio-a, ll-e operato-- sl-all Isle :- rcpart and .-0 relevant informatio-- and docu-ne-rtatio-i -•eg,u•dia-„; the v~~ell, inch-di--~ all i--fu-•-naHon and dt~c~n--entation that nay be requi-°cd l~,y (I~c commission, AOGA Comment: As stated in section (a), the proposed language may create conflicts or duplication between AOGCC regulations and regulations of other agencies regarding "health, safety and environment". We recommend the reference to "the environment" be removed to be consistent with the Emergency Action provisions of 20 AAC 25.539(a). The requirement for a report to be submitted within a five day period may prove difficult in some situations, such as long holiday weekends. AOGA recommends the requirement be changed to "Within 5 working days ...". (l~) If, al a--~- time the <.~pe-:rto-' lea-•ns that ;~--~- i--fo-•-t-atio-- -~'etlt-ired -n--,Ier tl-is sectio-a i;~ no (on~:e-~ co---I_~lete or :~ccn-~.-te, the operator sha[I, «~itl-iu :~0 da~~s, -totif~~ She ~°nzn-nissio-- in «~-•,itiug~, p-~oti-ade ul-daled i--formatir.-n, and 1-ropose appropriate action. AOGA Comment: None. (I) If the cornnlissio-2 lac°ks sufficient info-°-~--alio-i to deteru~-ine K~l-ether• susl~ensi.on is o-• -•c-iaai--a app-•olariate for a r~~ell --ncle-- (a) of the scci~ion, if suslaet-sio-- is no to-~ge-° aph-~oltri:-te fo-~ a ~i~ell -rnder (a) of this sectio--, it-cli-d-ng beta--se pl--gging a--d alga-a4l-~a----c=,~t is re~q--ired ~---de~-• 20 r1.~~: 25~.1(?5, or if, rs~itlt -•espect to the e;ell, the olaerato-~ ~riolated a -~eq--ire-t-~--t of, ar order issued under. ~15~ 31.0 or this chapter, the eo-nmission m,-v (I) issue a notice itlentifj-ing, or al~pro~~e an t~,pplicatiou for S--ndr~- Ohl-hro~;-Is (1?0-•--- It}-~0:~) co----nitl~ing to, actions -~ecessa-.y to maintain tt-e ~~~ell's suspended status, or (~) after ~- notice and hearing, issue an o-•de-• that either oz- both (i) ~-e~-okes the ~~-ell's suspended status, effecli~~e as of the dale deter-auned by the co-nn-issio--, a--d (ii) press-•ibe~s actions the operator a-i-st. lake, tivhicl~i naay include plugging and abandonment of tlu ~i~el.l. 11' action is o-•dered, including 1-I--ggi--g :u-d abando-uue--t, a separate --otice and hearing is --ol required i-ot~~~ilhsiandi--g an~~ otl-er provision of this chapter, incl--ding 20 f1,t~,C 25.105. AOGA Comment: We understand the intent of this section is to allow the AOGCC the ability to take action in a variety of situations. Some of these situations appear to be already covered by other existing or proposed regulations. For instance, the requirements for an Application for Sundry Approvals is contained in proposed 20 AAC 25.110 (b), enforcement and emergency actions aze covered in 20 AAC 25.535 and 25.539 and hearings on the commission's own motion are covered in 20 AAC 25.540. 4 • If the AOGCC believes that (1) is necessary, the introduction section is ambiguous and should be rewritten to provide clarity regarding the situations that may cause the AOGCC to take action. 20 f~:1,~." 2~.,i00. [~ecl--ests l'or ir~i'orr-~tttio--. i~'ot«~itlast----li--« at--,- t}tl~er pro~~isio-x al~ ~t-is c~halfte-°, if the commission recl--ests th,~t a pc~rso-- prosicfe i.nfor--~atior- or rta~-c--rr-t°-~ts~tio-- res~a~'tii--~; :- ---atter c~'itlti-- the co-rut-issio-t's jnriscliction, tl~-7t pe-•so-- -a---st l~-•--~%ide tl-at i--fo-•---s-tio-- w~itl-i-- 3O days of t9-e c1Rte ti-e r•ett-.-cst ~.~.-s se-at n-~ ~~%ithi-i anoti-e-° ti-nc l~r-°iod specifie(_l by tl-~~ co--u--,issio--. AOGA Comment: None. Zt) ~~~1~('. 2~.~~!)~3. V~;t-~ia--ces f-•t---~ r'c~;~nit-fions. 1_~nless --oti.cc~ and 1-~~t,-~i-zM a-•e -'c-~--irecl --ntler this chapte-•, uho-- ~~.-~itten recl--es1 f-,o-~- the operator, tl-e co-----fissio-~ nay ahh-~ove a s :~ri~~---re fro--~ a rc~q--ire-~~e--t of dais ch;-pter if the va-~ia-~cc~ laro~~i-ies at least a-- eci--ally tt't~ceti~=e -~-c~a--s ot~co---piyi--~ ~~-itl- the -'e~uiren-e--t. AOGA Comment: We support the inclusion of this section within the regulations to provide flexibility. 7.0 <~<~.(' 2~..4)~). ~~'ai~ crs of re~ulati{---s. U--less --otice and ltcari--~ are resit-i-•ecl t-ncle-~ th.is chapte-•, upon ~~-ritic:-a request. fro-~- tl-e operator, tl-c comtn~issio-- --ta}~ al~i~-•--~•e a ~i~~aii~er of this ch,~i-tcr if the ~ti-ai~-er ~r%ill not pron-otc ~castc or,jcop;-rclizc~ eor-•elati~~e -•ights, Fviil --ot co-npro---isc tl~e tiltirnate recover}- of hydroclrhons, is b:1se-l on soa-nci e-iginee-•i--~ and t:coscicncc hrincihles, and ~~%ill not result in a-~ i-urcase-l rich to health. safct~~ or the Pill%ll'(]il lllPll ~' AOGA Comment: We support the inclusion of this section within the regulations to provide flexibility. 5 • ~ ~OC10Ct)~~1~~1~5 Alaska, Inc. . Helene E. Harding Vice President North Slope Operations & Development, Alaska P.O. Box 100360 Anchorage, AK 99510-0360 Phone 907.265.6513 Fax 907.263-4438 ~~ June 17, 2008 Mr. Daniel T. Seamount, Jr., Chairman Alaska Oil and Gas Conservation Commission 333 W. 7~` Avenue, Suite 100 Anchorage, Alaska 99501-3539 Re: Comments of ConocoPhillips Alaska, Inc. Proposed Regulation Changes to 20 AAC 25.110 Dear Chairman Seamount: Alaska Oil & Gas Cos, ~~flmrra~~si~n 4fUN ~ i till ConocoPhillips Alaska, Inc. ("CPAI") appreciates the opportunity to comment on the proposed revisions to 20 AAC 25.110 regulations addressing suspended wells. The regulations proposed by the Commission reflect the commendable work by the Commission's staff in drafting, soliciting and analyzing input, and incorporating changes where necessary to provide a workable process for suspending wellbores that will continue to protect Alaska's resources. CPAI supports the currently proposed regulations, but requests that the Commission consider a couple of clarifying revisions, as described below. Proposed regulation 20 AAC 25.110(a). Pursuant to subsection (1) of this proposed regulation, an operator "must demonstrate to the commission's satisfaction that (1) health, safety and environment are protected by ensuring, among other things, that the well ... " The phrase "among other things" indicates that the list does not provide adequate notice to the applicant about what all must be demonstrated to the Commission as ensured in order to obtain approval to suspend a well or to continue to suspend a well. CPAI suggests that the phrase "among other things" be replaced by the phrase, "subject to all other requirements of AS 31.05," which should eliminate the notice issue. Proposed regulation 20 AAC 25.110(k). For clarification, CPAI suggests that at the end of this regulation section, the words "as necessary" be added. Not every situation where there is a change in the status of a well giving rise to the requirement to provide updated information to the Commission will necessarily require that any action be taken. Proposed regulation 20 AAC 25.110(1). CPAI suggests that for clarity, an introductory phrase be added to this proposed regulation as follows: "Upon receipt of an application for suspension or renewal of suspension, or upon receipt of new or updated information regarding a suspended well, ..." Without such a phrase, the regulation would appear to allow the Commission to - Mr. Daniel T. Seamount Jr~hairman • AOGCC June 17, 2008, Page 2 determine to reverse prior final decisions without any change in the information currently on record at the Commission. CPAI appreciates the time and effort the Commission staff has put into this regulatory process, and the Commission's consideration of the comments submitted in this letter. If there are questions regarding CPAI's comments, please contact Randy Kanady at 263-4126, or Jerome Eggemeyer at 265-6049. Sincerely, ~~~ Helene E. Harding ~7 1 2 3' 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 ALASKA OIL AND GAS CONSERVATION COMMISSION Before Commissioners: Daniel T. Seamount, Chairman Cathy Foerster John K. Norman In the Matter of the Proposed ) Amendments to 20 AAC 25.110 ) Regarding Suspended Wells ) ALASKA OIL and GAS CONSERVATION COMMISSION Anchorage, Alaska February 28, 2008 9:00 o'clock a.m. VOLUME I PUBLIC HEARING BEFORE: Daniel T. Seamount, Chairman Cathy Foerster, Commissioner John K. Norman, Commissioner R~GEi~/ED MAR 0 3 2008 q{aska Oil & Gas Cons. Commission AnChofd~ R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 1 2 3 4 5 6 7' 81~ 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 TABLE OF CONTENTS Opening remarks by Chairman Seamount Testimony by Steve Davies Testimony by Kara Moriarty Testimony by Harry Engel Testimony by Randall Kanady R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 03 05 08 08 30 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 P R O C E E D I N G S Tape 1 0050 (On record - 9:00 a.m.) CHAIRMAN SEAMOUNT: On the record. We'll call this hearing to order. This is a hearing to consider proposed amendments to regulations of the Alaska Oil and Gas Conservation Commission. Today is Thursday, February 28th, 2008, it is 9:00 o'clock. We're located at 333 West Seventh Avenue, Anchorage, Alaska. Those are the offices of the AOGCC. My name is Dan Seamount, as you can see on the -- I think that's -- yeah, it does say Dan Seamount. Okay. To my right is Commissioner John Norman, to my left is Commissioner Cathy Foerster. And way in the back is Staff Assistant Jody Colombie, she's here to assist anybody that needs -- that has special needs. The Alaska Oil & Gas Conservation Commission proposes to amend Title 20, Chapter 25, Section 110 of the Alaska Administrative Code dealing with suspended wells, including the following. The proposed regulation changes referenced clarify what is expected of operators with respect to the surveillance, maintenance and reporting requirements for suspended wells throughout the state. Notice of the hearing was published in the Anchorage Daily News on January 7th, it was also posted on AOGCC's website. R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 I 23 24 25 I This hearing is proceeding in accordance with the general hearing regulations applicable to this Commission and those regulations are specifically found at 20 AAC 25.540 of the Alaska Administrative Code. R & R Court Reporting will be recording the proceedings, you can get a copy of the transcript from R & R Court Reporters or you can have Jody Colombie assist you if you need further direction. We'd like to remind those that are testifying that there are two microphones -- well, actually they're attached now aren't they? They are? Okay. Good. So just speak into the microphone so that the people in the room can hear you and also so that the recorder can get an accurate transcript of this hearing. Where's the sign in sheet? Okay. Looks like we have a number of people here to -- that would like to testify. We also have on the phone Mr. Jim White. Mr. White, can you hear okay? MR. WHITE: Yes, I can hear well. CHAIRMAN SEAMOUNT: Okay. Great. Welcome, Mr. White. MR. WHITE: Thank you very much. CHAIRMAN SEAMOUNT: So for those that are test -- for the testimony we'll hear from the -- I guess we'll hear from representatives of the AOGCC first since the -- this hearing was initiated by the AOGCC. And then we'll allow opportunity R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 4 i ~ ll 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 for other interested parties to testify. If anybody has any questions the way to ask the question is to write the questions down and forward them to the head table and the Commission will answer the -- will ask the question. It looks like -- let's see, we have testimony from AOGCC staff, Mr. Steve Davies, our Senior Petroleum Geologist. And then we have testimony from representatives from BP, AOGA and ConocoPhillips. Okay. Great. Okay. Let's start with Mr. Davies. Is this sworn testimony? COMMISSIONER NORMAN: No. CHAIRMAN SEAMOUNT: I'm not sure it needs to be. COMMISSIONER NORMAN: No. CHAIRMAN SEAMOUNT: Okay. Please state your name and what you do and who you do it for? MR. DAVIES: Yeah, my name is Steve Davies, spelled D-a-v-i-e-s, I'm a Senior Petroleum Geologist here on the staff of the Commission. And what I'd like to do today is take a few moments to provide some background for the hearing. There are currently 137 wells that are designated suspended under regulation 20 AAC 25.110 and 50 of these wells have been suspended for 15 or more years. Forty-eight of these suspended wells are exploratory wells, many of which are located in remote areas that are not visited regularly. The Commission is exercising powers and responsibilities R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 5 1 2' 31~~ 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 pursuant to Section 31.05.030 of the Alaska statutes. The Commission regulation governing suspended wells, regulation 20 AAC 25.110 is intended to minimize risk to public health, safety, the environment and oil and gas resources by setting out criteria under which a well may be approved for suspended status by the Commission. This regulation also sets reporting criteria so that the Commission is assured that the operating companies are properly monitoring and maintaining the integrity of each suspended well and its surrounding location. Late last spring while reviewing records of suspended wells the Commission senior staff noted that the status reports provided by operating companies varied in form, detail and their degree of conformance to the intent of the suspended wells regulation. Tom Maunder and I undertook a study and then presented our findings and recommendations to the Commission at the Commission's monthly public meeting held June 27, 2007. Our findings and recommendations were submitted to the public record at that meeting and a copy of those findings and recommendations will be entered into the record for this hearing. Following up on our findings and recommendations, the Commission is proposing changes to regulation 20 AAC 25.110. Those proposed changes are the subject of today's hearing. Our intent is to clarify the requirements and conditions governing suspension, including the grounds for suspending wells along R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 6 • l 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 with surveillance, maintenance and reporting requirements. Pursuant to Section 31.05.030 of the statutes, it is within the Commission's responsibility and power to require a reasonable assessment of the future utility of each well. If none can be demonstrated then the well should be plugged and abandoned to eliminate all risk to health, safety, the environment and oil and gas resources. It's also within the Commission's power to require reasonable inspection and reporting to minimize risks associated with each suspended well. This concludes my opening comments. Tom Maunder, Jane Williamson and I are available for any questions that the Commissioners may have. CHAIRMAN SEAMOUNT: Commissioner Norman, do you have any questions? COMMISSIONER NORMAN: I have no questions at this time. CHAIRMAN SEAMOUNT: Commissioner Foerster? COMMISSIONER FOERSTER: I have none right now, I might have some later. CHAIRMAN SEAMOUNT: And I have none either. So that concludes the testimony for AOGCC at this time? MR. DAVIES: Yes, sir. CHAIRMAN SEAMOUNT: Okay. And I would ask you to remain in the room until the hearing is over. Okay. I guess we'll go in order -- well, we'll go first come, first serve. The next R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 7 1 2 3 4' 5 6 7 8' 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 person willing -- willing, wanting to testify is Mr. Engel from BP. And you're also representing AOGA? MR. ENGEL: That's correct. CHAIRMAN SEAMOUNT: Okay. Please come to the table. Ms. Moriarty, are you also going to testify? MS. MORIARTY: Yes. I will give some introductory remarks for AOGA and then turn it over to Mr. Engel to go through some specific comments, if that's okay, Mr. Chairman? CHAIRMAN SEAMOUNT: Okay. Would either of you like to be considered as an expert witness? MS. MORIARTY: That would be Harry. MR. ENGEL: Yes. CHAIRMAN SEAMOUNT: Okay. Mr. Engel, what is the subject? COMMISSIONER FOERSTER: Of your expertise. CHAIRMAN SEAMOUNT: The subj..... MR. ENGEL: Petroleum eng..... CHAIRMAN SEAMOUNT: Right. Well..... MR. ENGEL: Please clarify the question. CHAIRMAN SEAMOUNT: Okay. Them, please, clarify your qualifications as to why you should be an expert witness and on what discipline? MR. ENGEL: Yes, Commissioner. CHAIRMAN SEAMOUNT: I guess just tell us your resume. MR. ENGEL: Okay. My name is Harry Engel. For the record the last name is spelled E-n-g-e-l. I am currently an R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 8 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 engineering team leader for BP and this morning I'm representing AOGA as the chairman of the AOGCC Task Force. I have over 20 years of diverse engineering experience covering drilling engineering, well site leader roles, auditing (ph) and HSE management positions. I have worked in most areas of Alaska, I've also worked in the Rocky Mountains and I've had temporary assignments overseas. I hold undergraduate degrees in civil engineering and environmental engineering. CHAIRMAN SEAMOUNT: Any questions, any..... COMMISSIONER NORMAN: No questions, just a short comment. Most of you are very well known to this Commission, most of you have stated your qualifications previously, but occasionally it's necessary -- many years later we find ourselves going back and reading a record leading up to adoption of legislation or regulations. Long after the people are gone that may even know you, others may read this and so that's why we do need to observe the formality of putting you through the inconvenience of having to state what we're probably already very familiar with. But that way it's spread on the record in -- for posterity and years from now people will know the basis of your experience when you speak. COMMISSIONER FOERSTER: Well, and some of us, not John, but some of the others of us are getting old and forget you. CHAIRMAN SEAMOUNT: Well, I know that other states do it differently. For example Utah, once you're designated an R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 9 • l 2I~ I i 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 expert witness you're an expert for life and you just mention that in the hearing. So, I don't know, maybe we should think about that in order to make the proceedings move along faster. Does anybody have any objection to Mr. Engel being considered as an expert witness? COMMISSIONER FOERSTER: No. CHAIRMAN SEAMOUNT: That was very impressive experience, Mr. Engel, please proceed. MR. ENGEL: Thank you Well, Kara Moriarty will open up with some comments form AOGA. MS. MORIARTY: Thank you, Commissioner. For the record my name is Kara Moriarty, my last name is spelled M-o-r-i-a-r-t-y, and I'm here as the deputy director of the Alaska Oil & Gas Association and we appreciate the opportunity to testify today. The 17 members of AOGA account for the majority of oil and gas exploration, development, production, transportation, refining and marketing activities in the state. We support the spirit of the proposed changes to the suspended well regulations and agree a requirement for periodic review and site inspection is reasonable. However we do have specific comments regarding the details contained in the proposed language and are concerned about the elimination of various provisions in the current regulation. In addition to this cover letter, you -- that I'm reading for you today, you will find two different attachments. One is R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 10 • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 a chart that contains the proposed regulation in one column, our specific comment on that regulation in the middle column and on the far right column is proposed language for you to consider. The other attachment is a proposed redline of the regulations that contain our suggested language recommendations. The regulations should provide clear guidance for when suspended well status is appropriate and under what circumstances such well status will be approved, as well as providing protection of confidential information. The proposed regulations do not include the confidentiality protections contained in the current regulations at 20 A.AC 25.110 section (c) We strongly suggest that information concerning the completion of a well or considered a trade secret continue to have that protection. We believe the current protections are appropriate and necessary and we recommend that you retain them. The new work required by the proposed regulations will require a significant effort by operators and by Commission staff during the first year and during reauthorizations following the effective date of the regulations. We recommend for any wells suspended prior to January lst, 2005, that the inspection and application period be extended to 24 months. This allows sufficient time for operators and the Commission staff to plan and work together to coordinate site inspections R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 11 1 2 3', 4''' 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 and to prepare and process reapplications. We also suggest adding an administrative approval section to allow the Commission to deal with specific -- special situations. These recommendations that I've outlined are general comments. Harry -- Mr. Engel will go through them in more detail, but we would like you to consider this communication and the two attachments as part of the public record associated with this subject. So again thank you for the opportunity to give some general comments about the proposed regulations. I'm happy to take any questions at this time and would turn it over to Mr. Engel to walk through the specific recommendations. CHAIRMAN SEAMOUNT: Okay. We'll put this -- these documents into the record. Do we need to vote on it or anything? COMMISSIONER NORMAN: You just ask if there's objection. CHAIRMAN SEAMOUNT: Is this any objection to..... COMMISSIONER NORMAN: No objection. CHAIRMAN SEAMOUNT: Okay. These are admitted to the record. Commissioner Norman, do you have any questions for Ms. Moriarty? COMMISSIONER NORMAN: I have -- no. CHAIRMAN SEAMOUNT: Commissioner Foerster? COMMISSIONER FOERSTER: No. CHAIRMAN SEAMOUNT: Okay. Thank you, Ms. Moriarty. Mr. R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 12 l 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Engel? MR. ENGEL: Good morning, Commissioners Norman, Seamount and Foerster. First I'd like to open up by acknowledging the AOGCC's technical staff including Steve Davies, Tom Maunder and Jane Williamson, for providing the industry with background and intent content with regard to the development of the proposed regulations. It helped us to understand the Commission's desires and their needs for these requirements. So that was a good job by the staff here at the Commission, we appreciate that. My approach this morning is going to be following through the documents that Kara mentioned a moment ago and I'm going to be looking or referencing the document with three columns that are presented vertically. On the left of that document are the proposed regulations from the Commission, in the middle are AOGA's comments and then on the far right are the proposed language from AOGA. So what I'll do is I'll make comment from the middle column and I'm going to reference the regulations. I'm not -- the proposed regulations from AOGA. I'm not going to go through and read those, just to make it more efficient for our time this morning, you have that in front of you in written format. And as I go through it I would address any questions along the way so, please, feel free to stop me and ask any questions about our comments and our proposed draft of the regulation. R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 13 s • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 I I'll start with -- from the beginning and it's section (a). Section (a) of the proposed regulation addresses the application process to suspend a well in Alaska. The statement included in the proposed language quote, unless abandonment is required under 20 AAC 25.105, is unclear since that -- in other regulations in 25.105 in (b) through (d) a well must be abandoned unless it is suspended. So we suggest that the existing introductory phrase in 20 AAC 25.110(a) and that reads, if allowed under 20 AAC 25.105 rather than unless abandonment is required under 20 AAC 25.105. We feel that makes it more clear for operators to understand the intent. And also under (a), the current regulations that are in place contain specific reasons and criteria for the Commission to use when granting suspended well status. The proposed regulations lose that clarity by removing those requirements and criteria by providing no guidance for circumstances under which suspension in well status may be granted. So we recommend that the -- we recommend retaining the current criteria in 20 AAC 25.110(a) Are there any questions? COMMISSIONER FOERSTER: Can I ask a question? MR. ENGEL: Yes, Commissioner Foerster. COMMISSIONER FOERSTER: Okay. In your proposed regulations you use a very powerful verb, will. And how do you feel about an equally, but differently powerful verb, may, in R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 14 • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 that -- in place of that. The Commission will upon application approve the suspension of the well, replace will with may. And the reason I'm saying that is because will says that it's going to happen..... MR. ENGEL: Uh-huh. COMMISSIONER FOERSTER: .....and may says that we will use our..... MR. ENGEL: Discretion. COMMISSIONER FOERSTER: .....discretion given other factors that are present..... MR. ENGEL: Uh-huh. COMMISSIONER FOERSTER: .....and need to be considered. So has AOGA considered the word may instead of the word will? MR. ENGEL: I don't think we addressed that specifically, Commissioner Foerster, but I don't really see a significant..... MS. MORIARTY: I think -- this is Kara Moriarty. I think what we did is we just used the language that is..... MR. ENGEL: Currently in. MS. MORIARTY: .....currently in regulation. And that's what is in regulation because our main concern was that this criteria -- that there be some basis of criteria in the regulation that the Commission would base the suspension upon. COMMISSIONER FOERSTER: Right. And I think one of the reasons we took it out was because of the word will and we R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 15 11 i I 2' 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 wanted to have the latitude to determine whether other situations that might be going on with the well, the operator, the state, the location, warranted something else. But the word will is kind of a hairball that I don't like. MR. ENGEL: Okay. Okay. Moving on to section (b). Section (b) in the proposed regulations addresses details required for an application to suspend a well. And our comments include a decision to suspend a well may not necessarily be a change to an approved program such as referenced in 20 AAC 25.507. An example of that would be if an operator drilled an exploratory well under an approved permit to drill and subsequent to drilling it an operator decided to suspend it, it wouldn't be under a change of approval, it may be under a 10.403 or sundry application. So we feel that wouldn't be the case in that example I just noticed. And also we believe that providing oral approval is appropriate for these regulations. So we recommend the reference to 25.507 be removed and specific language be included in this section such as that found in 25.015(b)(2) And it says in cases where a prompt approval is needed oral approval may be requested from the Commission. If oral approval is obtained from the Commission, the name of the representative of the Commission who approved oral approval and the date of approval must be included on the application for sundry approvals which must be submitted within R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 16 • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 three days for final approval by the Commission. Are there any questions about our comments on (b) at this point? Okay. I'll move along to section (c) Section (c) addresses plugging all hydrocarbon bearing zones in a suspended well. The reference 20 AAC 25.112(c)(1) is incomplete since it is specific to cased and perforated wells. The reference should be broadened to account for uncased sections of a wellbore such as requirements of 20 AAC 25.112, minus provisions of subsection (d). If there are no questions I'll move along to (d) Section (d) addresses maintaining the integrity of a suspended well location. And AOGA does not have any comments on this section of the proposed regulations. Section (e) addresses the period a suspension is valid for approvals granted after the effective date of the proposed regulations. The phrase in this section quote, until the reason for granting the suspension unquote, we feel is vague. There are multiple reasons why a suspension was granted. If there are multiple reasons why a suspension was granted, is the suspension no longer valid if only one of these reasons is no longer valid. The smaller phrase quote, is no longer valid unquote, is also problematic because of the subjective nature. Reasonable minds may differ regarding when a reason for suspension is no longer valid. R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/fax 274-8982 ANCHORAGE, ALASKA 99501 17 • i 1 2 3' 41 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 It is important to be able to clearly identify when, for purposes of enforcement, the Commission considers a reason to be no longer valid such as notice from the Commission. Without clear identification of when a reason is no longer valid operators risk being out of compliance with the regulation..... COMMISSIONER FOERSTER: Uh-huh. MR. ENGEL: .....even if they might otherwise have reasonable bases to think that the reason for suspension is still valid. This proposed regulation would also result in an immediate violation without an opportunity for the operator to provide information to the Commission to demonstrate that such reason for suspension is still valid. CHAIRMAN SEAMOUNT: Go ahead, Commissioner Norman. COMMISSIONER NORMAN: Doesn't -- this is regarding the concern that -- of the reason for granting a suspension may be vague. If we go back -- if we look on page 1 which is -- continues the wording of the existing regulation under subsection (2), the operator will justify to the Commission why the well should not be abandoned and then it will set forth reasons. So doesn't that provide specific reasons why this well is being suspended as opposed to..... MR. ENGEL: Yes, could you..... COMMISSIONER NORMAN: Let me ask that again. MR. ENGEL: .....point me where you're looking at, Commissioner..... R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 18 ~ ~ 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 COMMISSIONER NORMAN: Sure. MR. ENGEL: .....which page you're on? COMMISSIONER NORMAN: Yes, I'm on the first page of your presentation here..... MR. ENGEL: Yes. COMMISSIONER NORMAN: .....and I'm looking at the right- hand column and I'm looking at subsection (a)(2) and there is a reference there about operator justifying to the Commission why the well shouldn't be abandoned if not completed. And why it -- and sufficient reasons would include (a), (b), (c), et cetera. MR. ENGEL: Yes. COMMISSIONER NORMAN: So those are specific reasons why the well is in a suspended category? MR. ENGEL: Correct. COMMISSIONER NORMAN: So where would the vagueness be then? MR. ENGEL: And we're on section..... COMMISSIONER NORMAN: Am I -- oh, go ahead. I..... MR. ENGEL: Okay. I was referring to section (e) which addresses the period for how long a suspension is valid. And the question was -- the issue we're talking about here is in the proposed regulation the phrase until the reason for granting the suspension is no longer valid. And we felt that the operator may not understand or the Commission may provide R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 19 • l 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 -- pardon me. The vagueness is around the operator may not have information to know that the suspension may be invalid. And without knowing that information there could be a case of -- say there was conditions that happened around a site, say in the peninsula, for example, a road was put in that may change the ability for that well to be suspended. The operator may not be aware of that and it may influence the suspended status down the road. And the Commission wouldn't have information about that change -- or the operator. MS. MORIARTY: And I think part of the reason -- this is Kara Moriarty again, Commissioner Norman, is that, you know, our fear is if you don't adopt our suggested language and the criteria for suspension isn't put back in, we -- the operator may not know what the Commission based your -- the reason for suspension on. And if we also look at what we're recommending is that if you decide that a reason is no longer valid we're asking that the Commission notify the operator and give the operator 60 days to respond back to the Commission as to -- you know, address your concerns or a plan or some rationale why we think that the well should still be suspended. Does that help clarify our concern? COMMISSIONER NORMAN: Yes. Yes, thank you for that clarification. COMMISSIONER FOERSTER: I have a question on this. The -- your proposed wording puts all the responsibility on the R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 20 • l 2 31', 4' 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Commission for changing the status of a suspended well. But there is more likelihood that conditions will change that the operator and not..... MR. ENGEL: Right. COMMISSIONER FOERSTER: .....the Commission is aware of. So where is the responsibility for the operator to notice a change and ask for a..... MR. ENGEL: Right. Right. COMMISSIONER FOERSTER: .....change in status? MR. ENGEL: I think the way the regulations are currently formulated on the five year inspection period, five year and 10 year reapplication, the operator would know by evaluation of the wellbore conditions and future utility of the wellbore if there were reasons to change that suspended status. So we would know that and commit that -- submit that to the Commission for consideration. COMMISSIONER FOERSTER: So the operator's only going to look at the well once every five years and make a determination on whether it should stay suspended or not? MR. ENGEL: Well, the current regulations call for a five year -- a five year inspection. Some operators may choose to do it more frequent than that and evaluate the well's utility based on -- could be the need for a sidetrack or a change in status to make an injection well, for example, a disposal well. So I think operators may choose to look at that well on a more R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 21 • 1 2!, 3~~ 4, 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 frequent basis for utility purposes. Okay. I'll move on to section (f) And section (f) addresses site inspection for any well suspended on or after the effective date of the proposed regulations. The requirement for a suspended well inspection within 12 months could result in the Commission being called to sites multiple times in the first year to witness setting and verifying the plugs, site clearance and to satisfy this requirement. The 10 day notice requirement will hamper efficient planning and field activities. The proposed safety valve system regulations require 48 hours notice of testing for remote locations. So we recommend changing the 10 day notice to 48 hours. Also as currently written wells suspended in 2008 or 2009 would require subsequent inspection in 2010. Such immediate follow-up inspections for newly suspended wells may be unnecessary. We recommend that the first cycle of five year inspections required by this section should begin in 2015. We are also recommending some flexibility in inspections to allow for unpredictable conditions that may occur for the inspection site. COMMISSIONER FOERSTER: Could you explain to me how longer notice would hamper efficient planning of field activities? MR. ENGEL: Commissioner Foerster, it could be around -- a lot of these sites are remote and requiring helicopter planning R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 22 • • 1 2 3 4 5 6~ 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 and scheduling. And it may hamper the ability to get equipment and transportation to a site. So we would like the ability to plan it and then give a notice that would allow for a more efficient use of our planning time to get to a site and do the inspection. COMMISSIONER FOERSTER: Okay. MR. ENGEL: For the -- we did reference the 48 hour note -- requirement for inspecting SVS systems. And..... COMMISSIONER FOERSTER: Right. Well, safety valve system tends to be in places that are easier to get to and, you know, with five inspectors, it -- there are, what were your words, efficient planning issues for us as well that push for a longer notification period..... MR. ENGEL: Right. COMMISSIONER FOERSTER: .....especially in remote locations. MR. ENGEL: And this could be a challenge for both the Commission and operators as we move into these regulations, the manpower requirements to..... COMMISSIONER FOERSTER: Right. MR. ENGEL: .....complete the inspections. COMMISSIONER FOERSTER: Right. COMMISSIONER NORMAN: Mr. Engel, one overall factor that the Commission like other agencies is required to consider in changing or promulgating new regulations is cost of compliance R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 23 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 to..... MR. ENGEL: Yes. COMMISSIONER NORMAN: .....the operators. So if you as you go through the testimony -- I'm -- when you use the terms less efficient, multiple visits, et cetera, if you intend to say and this will increase the cost then it would be helpful to have you specifically indicate so we can determine if we are, in fact, imposing greater costs on operators by virtue of doing this. MR. ENGEL: Okay. COMMISSIONER NORMAN: If we do then we have to balance that. MR. ENGEL: Thank you, Commissioner. The next section is (g) And this section addresses site inspections for any well suspended prior to the effective date of the proposed regulations. Most suspended wells in the state were suspended prior to 2005, we believe. The requirement for site inspections and reapplication for suspended well status within the first year will require significant effort by operators and the Commission staff. Most sites are best visited in the summer months. Depending upon when the regulations become effective, the planning and logistics required may be difficult during the first year. We recommend the one year period be extended to two years to allow efficient planning and adding a provision for an alternate schedule as authorized by the R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Commission. Of note section (g), there is no recognition of possible offshore suspended wells as defined or as noted in 25.105{c). And that section is the section around plugging and abandoning of wells. We also believe a provision should be added to allow continued suspended status until there is an action by the Commission on reapplication of suspended status. COMMISSIONER FOERSTER: I have a question. MR. ENGEL: Yes. COMMISSIONER FOERSTER: If we extended it to two years what -- and use your wording, what would prevent all the operators from waiting 21 months to start the process? Do you see what I'm asking? MR. ENGEL: The intent for our comments, Commissioner, was to allow more time for an operator to plan their business and do it in a more structured approach and not wait to the last moment to do it. COMMISSIONER FOERSTER: But there's nothing in here that would drive to that end. If we say you've got two years to do it there's nothing in this wording that would preclude everyone from waiting until 23 months? MR. ENGEL: No, we didn't put that inside there. COMMISSIONER FOERSTER: Okay. MS. MORIARTY: And, Commissioner, this is Kara Moriarty R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 25 ! • 11 2i 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 I again, you're correct, there's nothing that -- in the language that would preclude an operator to wait, but based on an operator's budgeting practices they wouldn't want to do that anyway. And the reason that we ask for two years is we were just thinking about when the regulations were adopted, we're just doing some hypotheticals, if they were adopted in November you have a year. Well, you may not get to everything in that winter -- in that winter season for some of these remote sites. So it really was to allow better time for everybody because they don't -- the operators don't want to do all of them..... COMMISSIONER FOERSTER: Sure. MS. MORIARTY: .....in one month. So they..... COMMISSIONER FOERSTER: But -- yeah. I understand the intent, but you need to make your words fit your intent. And I would argue that it is in the operator's budgetary interest to delay costs that bring him no extra oil until as late as possible. MR. ENGEL: The next section is (h) and it addresses reporting requirements for the section and AOGA has no comments on this section. The next section is (i) and this addresses failure to satisfy requirements of these proposed regulations. And AOGA recommends this section be deleted. And the reason for that is that we believe that 20 AAC 25.5.35 already allows the R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 26 ~ i 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Commission in its discretion to take enforcement action, including ordering corrective action or remedial work against a person who has violated or failed to comply with a provision of Alaska Statute 31.05 or 25 -- or Chapter 25 of Title 20 of the Alaska Administrative Code including requirements of 20 AAC 25.526. Also in 20 AAC 25.539 it already authorizes the Commission to issue a temporary emergency order without hearing if necessary to protect against immediate public -- harm to public health or safety. We believe the proposed regulation is unnecessary because it is duplicative of existing regulations and because the proposed regulations lack important due process regarding safeguards that are contained in existing regulation. We believe the section is unclear and subject to interpretation. Who will make this determination of when -- and when; the phrase criterion we feel is vague. At the moment we would recommend replacing the word criterion with requirement. The current regulations contain specific reasons and criteria for the Commission to use when granting suspended well status. The proposed changes have lost clarity by removing those requirements and criteria. There are two additional sections that AOGA is recommending be included in the regulations. And on page 7 of our document it would be a new section (i) And this is adding R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/fax 274-8982 ANCHORAGE, ALASKA 99501 27 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 a section addressing administrative approval to allow the Commission to deal with special situation on a case by case basis. We've included proposed language in the document on page 7. And the last comment we have is regarding the -- it's regarding confidentiality protections currently in the regulations that are in effect today. And the proposed regulations do not contain confidentiality protections that are currently in 25.110(c) So we strongly recommend that information concerning the completion of a well or information considered a trade secret continue to have protection in the regulations. And that concludes our comments this morning. I'd be happy to take any questions you may have regarding our comments. CHAIRMAN SEAMOUNT: Any questions or comments, Commissioner Norman? COMMISSIONER NORMAN: No, I think this -- to me at least is very well organized and easy to follow and you've answered the questions that I did have. Thank you. CHAIRMAN SEAMOUNT: Commissioner Foerster? COMMISSIONER FOERSTER: I have one. Mr. Engel, do you think that the proposed regulations adequately protect future utility? MR. ENGEL: Yes, I think it gives the operators sufficient R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 28 11 21 31 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 I and ample time to evaluate the well and to consider utility..... COMMISSIONER FOERSTER: Okay. MR. ENGEL: .....options like sidetracking or other potential uses for the well. I don't think that hampers the operator..... COMMISSIONER FOERSTER: Okay. MR. ENGEL: .....with that regard. COMMISSIONER FOERSTER: Okay. That was my only question. MS. MORIARTY: Commissioner Seamount, I just would like to add, this is Kara Moriarty again, Harry chairs our task force and he does work for a major North Slope operator, but I just wanted to add that during our process that we had internally at AOGA, we did have very active participation from Cook Inlet operators such as Chevron and Marathon and there's a representative from Marathon in the audience today. And I just wanted you to know we did really talk about these regulations in the context of both North Slope operations and Cook Inlet. CHAIRMAN SEAMOUNT: Okay. Thank you, Ms. Moriarty and Mr. Engel. And I ask that you remain until the end of the hearing in case we have additional questions. MR. ENGEL: Thank you. CHAIRMAN SEAMOUNT: Thank you. COMMISSIONER NORMAN: Could I ask Ms. Moriarty just one question? R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 29 ~ ! 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 CHAIRMAN SEAMOUNT: Yes. COMMISSIONER NORMAN: Just following up on your comment for our information without naming operators, but does this pretty much reflect the consensus of all members..... MS. MORIARTY: Yes. COMMISSIONER NORMAN: .....or is it a majority, minority? MS. MORIARTY: Commissioner Norman, thank you for that question. It does represent a unanimous consent of all the AOGA members. COMMISSIONER NORMAN: Thank you. CHAIRMAN SEAMOUNT: Okay. I -- we have one more person to testify on the sign in sheet. I'll ask later if anybody else wants to testify, but that would be Randall Kanady from ConocoPhillips. Welcome, Mr. Kanady. MR. KANADY: That you, Commissioner Seamount. CHAIRMAN SEAMOUNT: Would you like to be considered an expert witness? MR. KANADY: Yes, I would. CHAIRMAN SEAMOUNT: Okay. Please state your name, what is the subject of your expert testimony and what is your qualifications? MR. KANADY: My name is Randall Kanady, I've an undergraduate degree in petroleum engineering and a master's in environmental engineering and I have over 20 years of experience in the state of Alaska in the oil and gas industry R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 30 • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 both in production, operation, engineering, HSE and drilling. I'm a registered petroleum engineering -- engineer with the state of Alaska. CHAIRMAN SEAMOUNT: Do any of the Commissioners not want to consider Mr. Kanady an expert witness for any reason? COMMISSIONER NORMAN: I have no objection. COMMISSIONER FOERSTER: I have no objections. CHAIRMAN SEAMOUNT: You are classified an expert witness. MR. KANADY: Thank you, Commissioner Seamount. I'd like to submit to the Commission ConocoPhillips' comments on the proposed regulations, 20 AAC 25.110. Unfortunately we didn't get these to you, here's the official signed copy. COMMISSIONER FOERSTER: Thank you. CHAIRMAN SEAMOUNT: Does anybody -- do either of the Commissioners have any objection to submitting this for the record? COMMISSIONER FOERSTER: No. COMMISSIONER NORMAN: No objection. CHAIRMAN SEAMOUNT: Okay. So submitted to the record is five page comments with a cover letter from ConocoPhillips dated February 28th, 2008. MR. KANADY: ConocoPhillips appreciates the opportunity to provide input to the proposed revisions to 20 AAC 25.110, regulations addressing suspended wells. There are several issues that we would like to bring to the Commission's R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 31 • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 attention and are covered in our -- in Conoco's submittal on 20 AAC 25.110 which we submitted today. ConocoPhillips has formulated a revised version of the proposed regulations that reflects the suggestions and proposed changes discussed in our written comments. And the submittal has two attachments, the first attachment is our comments in regards to attachment two which is our proposed revisions to the suspended well regulations. In several instances our proposed changes reflect what we understand to be the Commission's intent, but offers suggested language changes to more clearly convene that -- convey that intent. ConocoPhillips has three major areas of concern with the proposed regulations, the first being there's -- we feel there needs to be clarifications of standards for when a well can be suspended; the second being that AOGA [sick provide a notice and hearing if the status of a well is changed from suspended status to P&A -- requiring a P&A; and the third major concern we have is allowing flexibility to keep well information confidential upon request. And I'd like to highlight these and other ConocoPhillips' areas of concern. So specifically moving into the first section, 20 AAC 25.110 subsection (a) The AOGCC's proposed revisions to subsection (a) would remove all standards from determination as to whether appropriate grounds for a well suspension exist. By R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 32 • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 relying on demonstration quote, to the Commission's satisfaction unquote, for such determinations, all such determinations become subjective and there will be no guard against uneven standards being applied from operator to operator and from one panel of commissioners to the next. ConocoPhillips is not aware of and the Commission has not expressed any dissatisfaction with the adverse results from the current list of standards in existing regulations of subsection (a) for determining whether a well suspension should be granted. Therefore ConocoPhillips is proposing that AOGCC maintain the standards that are currently used in 20 AAC 25.110(a) Is there any questions? COMMISSIONER FOERSTER: This is a similar comment to the AOGA comment..... MR. KANADY: Uh-huh. COMMISSIONER FOERSTER: .....provided earlier? Okay. MR. KANADY: Moving on to proposed subsection (c) This section under the current regulation allows that certain well information be kept confidential upon request and approval. ConocoPhillips requests that the language providing for certain information about the basis for the request for suspension be held as confidential information, be retained in the regulations. That language could be moved to the end of the proposed regulations section as a new section, subsection (k), as detailed in ConocoPhillips' submittal. And that's under R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 33 • M 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 attachment two, subsection (k) is the last section. COMMISSIONER NORMAN: Mr. Kanady, there currently is -- as you're probably aware there are currently general provisions for confidentiality that cover broadly the whole area. One area -- one statute is 31.05.035 that provides for confidentiality of information and the other being in the regulations, 20 AAC 25.537. So the question for you is would those -- are those adequate now and do we -- do we need this additional specific provision here? And you could respond to that later, I don't mean that you've got to respond on the fly now, but it's a question that we have as to whether that's really necessary in this specific section of the regulations. MR. KANADY: Commissioner Norman, I guess our point is is that under the suspended well regulations if we include the standards and we specifically list in subsection (k) that those standards be held confidential if we request it and I guess that's the unique piece of it. COMMISSIONER NORMAN: Okay. All right. MR. KANADY: Moving on to subsection (e) ConocoPhillips suggests that the wording be changed in the proposed regulations to provide that a suspension quote, will be valid for 10 years unless terminated sooner due to change in conditions as provided in subsection (j) below, this is our proposed subsection (j), unquote. Followed by a provision R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 34 i • 1 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 requiring updates to be filed if the operator becomes aware of changes, and this is a new subsection (i) in ConocoPhillips' submittal, and a provision providing for Commission review of new information to determine if the suspension should be terminated after notice and after a hearing. And that's the intent of the new subsection (j). COMMISSIONER FOERSTER: So the subsection (i) kind of addresses the question that I asked earlier of Mr. Engel, where is the responsibility of the operator to notice the change and do something about it? MR. KANADY: Yes, in subsection (i) if an operator..... COMMISSIONER FOERSTER: Yeah. MR. KANADY: .....the way the current -- our current proposal is, if we become aware of new information then we submit it to the Commission. COMMISSIONER FOERSTER: Okay. Thank you. MR. KANADY: Next I'd like to comment on our -- ConocoPhillips' proposed subsection (i) and (j) This is a new section that we're proposing. ConocoPhillips suggests that the proposed language be clarified to provide that operators notify the Commission if the operator knows of changes or new information and if the Commission receives new information on a suspended well at any time then the Commission may, after notice and an opportunity to be heard, order a suspension terminated and require that the R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 35 1 2 3 4 5 6~' 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 well be plugged and abandoned. And we reference the new section (i) and (j) in our submittal. COMMISSIONER FOERSTER: Uh-huh. MR. KANADY: Are there any questions? And finally new subsection (k) and this is the confidentiality section. As mentioned above ConocoPhillips requests that the language providing for certain information about the basis for the request of suspension be held confidential, be retained in the new regulations. The language could be moved to the end of the regulation section as a new subsection (k) Are there any questions? CHAIRMAN SEAMOUNT: Questions? COMMISSIONER NORMAN: No questions. MR. KANADY: Okay. Considering the magnitude of the proposed changes, the extensive comments that -- provided in ConocoPhillips' comments as well as AOGA's comments and the potential impacts to the operators, ConocoPhillips requests that the Commission allow industry to comment on the Commission's final version of draft regulations 20 AAC 25.110, prior to submittal to the attorney general's office. Again thank you..... COMMISSIONER FOERSTER: You sure you don't want us just to surprise you? MR. KANADY: Well, no. Again thank you for the opportunity to comment upon these proposed regulations and we'd R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 36 • 1 2 3 4 5 6 7 8 9 10 11 12 I 13 14 15 16 17 18 19 20 21 22 23 24 25 I be happy to discuss with AOGCC staff these comments at any time. COMMISSIONER NORMAN: I have one last question of Mr. Kanady, Mr. Chairman. CHAIRMAN SEAMOUNT: Go ahead, Commissioner Norman. COMMISSIONER NORMAN: Are there any -- you listened to the AOGA testimony and you've seen theirs, and I didn't detect any significant difference and I just want to make sure that my following was correct, that there's no significant differences, some subtleties there, but there's no significant difference? MR. KANADY: I did not see any significant differences..... COMMISSIONER NORMAN: Good. MR. KANADY: .....in the two testimonies. So I appreciate your patience. CHAIRMAN SEAMOUNT: Okay. Thank you, Mr. Kanady. All right. Are there any others at this hearing that wish to testify? Mr. White, do you wish to testify? Okay. Hearing none, I'11..... COMMISSIONER NORMAN: Mr. White, are you there on the line? COMMISSIONER FOERSTER: I think we lost him. COMMISSIONER NORMAN: Mr. Chairman, why don't we get Jody and just so that if he did we don't cut him off, we give him the opportunity? R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 37 1 2 3 4 5 6 7 8 9 10 11 12 I 13 I 14 15 16 17 18 19 20 21 22 23 24 25 CHAIRMAN SEAMOUNT: We will -- what we ought to do while Ms. Colombie's messing with the phones is take a 10 minute recess and we'll be back. Off the record. (Off record) (On record) CHAIRMAN SEAMOUNT: Okay. While we recessed Ms. Colombie checked to see if Mr. White was still on the phone, she called him, and he said he did leave the hearing on purpose by hanging up. That's just for the record. Okay. Again I'm asking are there -- is there anyone else in the public that would like to testify? Hearing none, Commissioner Norman, do you have any comments? COMMISSIONER NORMAN: I have nothing. CHAIRMAN SEAMOUNT: Commissioner Foerster? COMMISSIONER FOERSTER: Can I move that we adjourn? CHAIRMAN SEAMOUNT: I meant to ask you first this time. Next hearing you get to go first. COMMISSIONER FOERSTER: Age before beauty off the record. CHAIRMAN SEAMOUNT: Fair enough. Okay. We'd like to thank you for your testimony, very good from both parties. What we're going to do is come out with a -- staff's going to come out with a revised -- AOGCC staff is going to come out with revised regulations -- revised proposed regulations. And then we'll re-notice for a new hearing. With that I think it's appropriate to adjourn. R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 38 1 COMMISSIONER NORMAN: Move to adjourn. 2 COMMISSIONER FOERSTER: Second. 3 CHAIRMAN SEAMOUNT: We're adjourned. 4 (Recessed - 10:10 o'clock a.m.) 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 39 ! ~- 1 C E R T I F I C A T E 2 UNITED STATES OF AMERICA ) )ss. 3 STATE OF ALASKA ) 4 I, Rebecca Nelms, Notary Public in and for the State of Alaska, residing at Anchorage, Alaska, and Reporter for R & R 5 Court Reporters, Inc., do hereby certify: 6 THAT the annexed and foregoing Public Hearing held on February 28th, 2008 was taken by Lynn Hall, commencing at the 7 hour of 9:00 o'clock a.m, at the Alaska Oil and Gas Conservation Commission of Alaska in Anchorage, Alaska; 8 THAT this Public Hearing, as heretofore annexed, is a true 9 and correct transcription of the proceedings taken and transcribed by Lynn Hall. 10 IN WITNESS WHEREOF, I have hereunto set my hand and 11 affixed my seal this 3rd day of March 2008. 12 ,. ~~. 13 Notary Public in and or Alaska My Commission Expires:l0/10/10 14 15 16 17 18 19 20 21 22 23 24 25 R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 • STATE OF ALASKA OIL AND GAS CONSERVATION COMMISSION SUSPENDED WELLS REGULATION HEARING February 28, 2008 AT 9:00 AM NAME AFFILIATION PHONE # TESTIFY (Yes or No) ~~~ ~ C' ~~1Q~ /(/~ ~ C ~'/~ ~ -'~ o Y ~ ~ ~ /, , ~ ~' Suggested Requirements for Status Reports on S~fspended Wells Problem Well status reports for suspended wells provided to the Commission every five years are dissimilar in content and do not meet the intent of 20 AAC 25.110(e). Proposed Solution For any suspended well not on a pad with active operations, the operator should be required to provide proof of a summertime physical inspection that demonstrate no gaps in the integrity of the well or the well site every five years. Risks to public health, public safety and the environment are the main drivers for this proposed regulatory change. Go~~erning Regulations 20 AAC 25.110(e) Until a suspended well has been abandoned or re-entered, the operator shall maintain the integrity of the location, provide the commission with a well status report every five years, and clear the location in accordance with 20 AAC 25.170(a)(2) or (b) [for onshore wells] or with 20 AAC 25.172(c)(2) or (d) [for offshore wells]. 20 AAC 25.170 (a)(2) unless the operator demonstrates to the commission that the surface owner has authorized a different disposition to facilitate a genuine beneficial use, the operator shall (A) remove all materials, supplies, structures and installations from the location; (B) remove all loose debris for the location; (C) fill and grade all pits or close them in another manner approved by the commission as adequate to protect public health and safety; and (D) leave the location in a clean and graded condition. (b)If a well described in (a) of this section is located on state or federal land, and if the agency acting on behalf of the state or federal government as lessor approves a disposition different from that required under (a)(2) of this section, the commission will accept that disposition instead of requiring the operator to comply with (a)(2) of this section. Discussion There are currently 122 Alaskan wells designated suspended under 20 AAC 25.110, and 41 of these have been suspended for more than 15 years. The intent of 20 AAC 25.110(e) is to minimize risk to public health, safety and the environment by requiring a report every five years that demonstrates the integrity of each suspended well and its surrounding location. Commission senior staff has noted anon-compliance with the intent of 20 AAC 25.110(e) and dissimilar responses by operators when submitting well status reports for suspended wells every five years. We propose modifying Commission regulations to expand and standardize reporting requirements to better meet the intent of 20 AAC 25.110(e). On April 3, 2005, the Commission sent a letter to each operator requesting a suspended well report, listing the governing regulation and requesting the report provide: 1. the current mechanical condition of the well, including the condition of installed tubing and casing strings; Suggested Requirements f~_atus Reports on Suspended Vb"ells ~ Page 2 of 4 June 26, 2007 2. the date the well was suspended and the circumstances surrounding the decision to suspend the well; and 3. an analysis of the future utility of the well. Reports from operators varied in form and detail. Attached are two examples of reports filed (Attachments 1 and 2), with the operator information redacted from each. The differences between these reports and their degree of conformance to the intent of the Commission's regulation and letter of request demonstrate the need to standardize documentation to confirm the condition of each well and each drilling location. This is especially important for wells located off Alaska's road system, which are not readily accessible and, therefore, not visited regularly. Recommendations Commission senior staff proposes that, for every well not located on a well pad with ongoing operations, representatives from the operator and a Commission inspector visit the well and its location during the summer preceeding every fifth anniversary of the date each well was designated suspended. These representatives will inspect the wellhead and the surrounding location and record: A. the condition of the wellhead; B. the presence of any pressure on the wellhead (if gauges have been installed in the wellhead); C. the condition of the location including any fluid(s) or sheens) visible on the ground or in the surrounding waters; and D. photographs clearly showing the condition of the well head and the surrounding location. The operator should then provide a summary report of the findings to the Commission. That report should include each of these items and the ones identified in the April 2005 Letter (and which are noted above). If a site visit was performed in advance of the suspended well reports filed in 2005, any information relating to a suspended well's condition should be submitted to the Commission with Form 10-404 within 60 days of the Commission's action on this recommendation. Conclusions Commission regulations should be modified to include standardized reporting with appropriate supporting documentation that will better meet the intent of 20 AAC 25.110(e). This will help the Commission ensure there are no problems or hazards associated with any suspended well. Operators should be required to submit documentation of past site visits relating to the status of suspended wells and the integrity of locations surrounding them. ~~F Mt ~~a~.~ Tom Maunder, P.E. Steve Davies Sr. Petroleum Engineer Sr. Petroleum Geologist June 26, 2007 /ggested Requirements for Status ~orts on Suspended Wells ~ Page 3 of 4 ~une 26, 2007 ATTACHMENT 1 Suspended Wells Report from Operator 1 V .~ Suspended Well Report '. i I ~` wells on active pads ' I AOGCC i Suspension Well Name I Permit #! API Number Well Status ~ Background Mechanical Condition Date Future Utility i Notes: i ' ~1 179- 50-029-200 Suspended j Exploration well. Well Top of cement at 60-ft. 4!15!1980! None. ,Well located on an ' "suspended Apr80. Reported as!Apr85: Pressure tested to j ~ active service pad i ~ 'suspended on 1995AOGCC i50D-psi 15min. - I i report. i 1 ~ I 50-029-200 iSuspended !Suspended Dec83 with bridge IApr85: Pressure test 13 318"' ~ ,183-~ i ~ 2/10/1983Observation well 'Well located on an i plug in 2.875-in tubing, and 9.6-j- 9 5!8" annulus. Held 500- i i andlor sidetrack active service pad I I Ib/gal brine and diesel freeze I~ psi for 15-min. 9.625-in x ;candidate. ' i ;protect in 4.5-In x 2.875-in 4.5-in Baker FHL packer ; i I ;annulus and 9.625-in x 4.5-in I I ~ !annulus. -4 ~.196~ SD-029-2~-OOSuspended !DrilledMar96.Delineationwell X10-4077May98:Three 11 800 to ~ l s t t 3/3/1996jNone. Well located on an lac6ve producing pad , p ug se . I j- cemen 12,500-ft MD, bodge plug + ', , j cement @ 4,200-ft, surface ' ! I wiper plug 5-ft to 250-ft. f ~l i ~2A ~ 199 50-029-2'-01 ,Suspended Mar01: Attempted coil tubing iCIBP set at 8,770-ft MD. ibi d ' 7/13/2003ISidetrack candidate. I i Welf located on an roducing pad !active te Displaced well to inh isddetrack. Welf flowed and p ', killed. Stuck pipe. Cut coil. !seawater and diesel freeze ' !Well sus ended. ~ rated ' ~ I 185 ; 50-029-2~-00 Suspended 'Dulled Jun85. ESP failed Two cement plugs set with -6 10!27/19931Sidetrack candidate. j Well located on an i i iSep90. Free flowed until ;EZSV retainers - 9700-ft ~ .active producing pad it !, !excess gas production 'with cement from 9,452 to i necessitated suspension. ESP 9,750-ft MD, and 10,014-ft I ' ~~ ~ pulled and well suspended. '.with cement from 9,952 to i ' 11D,018-ftMD. i • I I 150-029-~-00 (Suspended (Drilling operations suspended '1) 9.625-in casing tested to -5 ;196 3l23l1996;Sidetrack candidate. j WeII located on an Mar96 after very poor 9.625-in 3,000-psi and float shoe with I active producing pad surface cement job caused by cement remains intact 2) ~ I~ j , ' !hydrates. Esfimated TOC @ !mud and diesel in the casing, I I 2,800-ft MD. exceeds 8.6-Ib/gal BHP 3) ' ~ j ~ ~ dry hole tree tested to S,D00- j i I si. Page 1 of Z Requirements for Statu~orts on Suspended Wells 00? ATTACHMENT 2 Date of Status Suspended Wells Report from Operator 2 Status P8u4'd suspended suspended suspended suspended suspended suspended P&A'd suspended suspended P&A'd suspended suspended suspended suspended suspended suspended suspended suspended suspended suspended suspended suspended 11 /27/2000 4/25/1994 4/25/1994 4/25/1994 6/29/1999 5/18/1982 4/27/ZD01 12/18!2004 8/8/1997 4/5/2002 3/17/2001 r~ Page 4 of 4 Future Plans sidetracked _ plans to test further plans to perf waiting on test results shut in, no oil rod. renamed sidetrack in future waiting to drill off-set wells permanently abandoned waiting on development drilling waiting on development drilling 4/22!2005 permanently abandoned 4/5/1978 wellbore has utility for operations in the future 4/28/2001 development studies ongoing 4/6/2001 development studies ongoing 4/4/2001 development studies ongoing 4/ eve opmen stu yes ongoing 4/11/2004 development studies ongoing 4/3/1983 surface P&A operations being evaluated 4!1/1976 surface P8A operations being evaluated 4/22/1977 surface P&A operations being evaluated 4/3/1984 surface P&A operations being evaluated 5/15/1973 wellbore has utility for operations in the future 5/15/1973 addressing options for well 10/10/2003 waiting on seismic survey & development studies Alaska Oil and Gas Association A(~\~ 121 W. Fireweed Lane, Suite 207 ~~~ Anchorage, Alaska 99503-2035 Phone: (907)272-1481 Fax: (907)279-8114 Email: moriarty@aoga.org . Kara Moriarty, Deputy Director February 28, 2008 Commissioner Dan Seamount Alaska Oil & Gas Conservation Commission 333 W. 7~' Avenue, Suite 100 Anchorage, AK 99501 Re: Proposed Changes to 20 AAC 25.110 - Suspended Wells Dear Commissioner Seamount: The 17 members of the Alaska Oil & Gas Association (AOGA) account for the .majority of oil and gas exploration, development, production, transportation, refining and mazketing activities in the state. We appreciate the opportunity to comment on the proposed regulation changes to 20 AAC 25.110, suspended wells. We support the spirit of the proposed changes to the suspended wells regulations, and agree that a requirement for periodic review and site inspection is reasonable.. However, we have specific comments regazding the details contained in the proposed language and aze concerned about the elimination of various provisions in the current regulation. In addition to this cover letter, you will fmd two different attachments. One is a chart that contains the proposed regulation, our specific comment on that regulation, and proposed language for the Commission to consider. The other attachment is proposed redline of the regulations .with our suggested language recommendations. The regulations should provide clear guidance for when suspended well status is appropriate and under what circumstances such well status will be approved, as well as providing protection of confidential information. The proposed regulations do not include the confidentiality protections contained in the current regulations 20 AAC 25.110(c). We strongly suggest that information concerning the completion lE ' Commissioner Dan Seamount Alaska Oil and Gas Conservation Commission February 28, 2008 Page 2 of a well or considered a trade secret continue to have that protection. We believe the current protections are appropriate and necessary. and recommend; retaining them. The new work required by the proposed regulations will require a significant effort by operators and by commission staff during the first year and during reautliorizations following the effective date of the regulations. We recommend for any wells suspended prior to January 1, 2005, that the inspection and application period be extended to 24 months. This allows sufficient time for operators and the commission to plan and coordinate site inspections and to prepare and process reapplications. We also suggest adding an administrative approval section to allow the commission to deal with special situations. Please consider this communication and the two attachments as part of the public record associated with this. subject. Again, thank you for the opportunity to comment upon these proposed regulations. We look forward to continuing to work cooperatively with the Commission on this effort. Please contact me or Harry Engel, chairman of our AOGCC task group, at 564-4194. Sincerely, ~~~ ~.~.~ - - t ~-' KARA MORIARTY Deputy Director Attachments (2) Cc: Commissioner John Norman Commissioner Cathy Foerster AOGA Specific Comments on Proposed 20 AAC 25.110: Suspended Wells ~I~~ ~ i3i`~` ~{b1EIId(t~III11E'IIt I4 3'e€jtIII'E't~ Elnder 2t~ ;°~,~;C` 2 .1(t~. .~I1 opel-atol- €I~~Te- ac~paly to tint? ~ominissian IirTdeT- €bT of this section far sT~spensiolt of rE ~~~ell. 'l"he uperatul' must c1c'.ItstlllStl'~Ite to the ealnnlis~ian's s«ti~l'aetian ~~~hy the ~+-ell should oat lre ~~~iEE~cei)L'f. (`. C'f)nll}l~L~'d, The statement "unless abandonment is required under 20 AAC 25.105 is unclear since in 25.105(b)-(d} a well must be abandoned unless it is suspended. We suggest using the existing introductory. phrase in the 20 AAC 25.110(a): "If allowed under 20 AAC 25.105," rather than "Unless abandonment is required under 20 AAC 25.105. Also, the current regulations contain specific reasons and criteria for the Commission to use when granting suspended well status. The proposed changes lose clarity by removing those requirements and criteria and providing no guidance for the circumstances under which suspended well status will be granted. We recommend retaining the current criteria in 20 AAC 25.110(a). taj li Ilila~+ed ul~eiE~r vii :-i,;~~' 2~.ti~~, ~.n oheratar IT~ay apply to the eammission undel• (b) of this section for suspension of a well. The commission ~~°ilE, upan application by the operator under 4b} of this section, approve the suspension of a well if il) .the= ~~°el! (a} encaElntcl•s ll~~dracal-hans of sTlfficient quality and qualTtity to indicate that the well is capable of producing in paying quantities, as reasonably demonstrated by well tests or interpretive formation eyahTatitin data; fur purposes of thlS paratgraph, ccl?ayln (lnanti$IeS" means quantities sufficient to yield a return in excess of operating costs; (B) is a candidate for redrilling; iC') has patential value as a service well; t> r 4~1 is located on a pad ar platfr~rnt Kith active pruducinl; oI- service wells: and (2) the operator justifies to the commission's satisfaction .~-hv the well should not be abandoned, and if the well is not completed, why the well should not bF completed; sufficient reasons i.ncltc€Je tl~e (:~) wiavailability of surface production or transportation facilities; fB) imprudence of security maintenance of a completec€ welt in a shut-in status: (~') need for pool delineation and Pvaluation to determine the prudence of AOGA Specific Comments on Proposed Changes to 20 AAC 25.110, Suspended Wells February 28, 2008 Page 2 ([~} .~,rr A131ilication 4,f `saa~dr;v ~ppr•ovals (l~~orm 1 E~-~6i3) masi be srtbrr~itted to ~tnd approl~ed b~- the eornn~issiorr before ~zi€D~TU.T,rr2~ 43~)C"r~ttr€~=E4 :tf'E ~Df'~«s,rD:i rrl id !9'f'[i f'4Dr• ar l}iciD sasperrsiorr is proposed, except drat Drat rlDpr•ovai may be rearrested rrr~der ?fl ~~.~~ 25.5(t7(bl. "the :rlal~licati4~rr rnrrsi irretatie (t~~ the reason ~tnd a€rppor•tinr doerrrrentatiorr for srrsperrsion; (~) !yell bore diagrarzrs illustrating fhe errrrent and proposed mechanical con~gar•~rtions of the !yell; f3~ inforrt~ation on abnormally heo- l~;°e~;scrre€I or del.rlc:ted strata; AOGA Comment: A decision to suspend a well may not necessarily be a change to an approved program, such as referenced in 20 AAC 25.507 (b). Providing for oral approval is appropriate. We recommend the reference to 25.507 be removed and specific language be included in this section such as found in 25.015(b)(2): "In cases where prompt approval is needed, oral approval may be requested from the commission; if oral approval is obtained from the commission, the name of the representative of the commission who provided oral approval and the date of the approval must be included on the Application for Sundry Approvals, which must be submitted within 3 days for final approval by the commission." {b} .fin application of` Sunda :~.pprovals ~f~ar•m 1Q-~U3) rt~ust be submitted to and approved by the eomrt~ission before l~lahgrIrg 4rljeraiiorrS irre be;.`[6rt itr ifi !yell for lvl~ich srrsperrsiorr is proposed. Ire eases v-~bere prompt ~rpproval to suspend a la-ell is needed, oral approval may be ~•t"arrested ('r•tDn~ tfte r-ari~rt~issiart; if ora! approval is obtained from tlrc C4?n1nrlSSr(1n, the rrartle of the r•€~presenttttive of the commission who provided oral approval and the date of the: apprt» aM must be irrclrrde"d in the applieatiorr for Sandra- :approvals, !l~Irich mast. be submitted la~ithin 3 days for final approval by the commission. "l~'he application must include (=€ } a cl€ scription of the pF oposed a! ork plar; ineladir~g Irow the integrii~' of existing and .proposed plugs hill be €lert~4~rrstrated: acrd evidence that all fresh !later and h~-droe~~r•bon resources are protected. ("I) the re~rson and supporting docrrmentatiorr for suspension; (') !yell boe•e diagrams illersU•ating the carrerrt acrd proposed rrrc:charrical canfigtrratiorrs of the !yell; (3) information orr abnormall~> geo- l~~ressrrred or depleted strata; (4) a description of• the proposed work Ilan including Irow the integrity of existing and proposed plugs will be demonstrated; and Page 2 AOGA Specific Comments on Proposed Changes to 20 AAC 25.110, Suspended Wells February 28, 2008 Page 3 ~(~j '6i1~ l~yclr'Eie'.i$r'bE}r~-13ei[r'rrl~. fr:~sl~~~~:$ter. .$brrorr~tally ~'eo-pressured artEl depleted irrter-t~als mrrst Lie I~rluo~ged in aeeordarice F~ ith the requir•ernertts of Et =~;~(; ~~.~12(c)(1), ue-iess other•~~-ise ~rErtl~or-i~ed try the cart~n~issiort. AOGA Comment: The reference 20 AAC 25.112(c)(1) is incomplete since it is specific to cased and perforated wells. The reference should be broadened to account for uncased sections of the well bore, such as the requirements of 20 AAC 25.112, minus the provisions of subsection (d). (5} evidence: that .zll fresh ~v;rter ~~rrd l~ydroc.~rbon resources are protected. ~c} 1111 hydrocarbon-bearing, fresh«°:rter; abnormally geo-pressured and depleted inter~-a[s must be plugged in accordance with the recluiremer~ts of 2fi Ar1C 25.112, except itre requir•etr~errts of 2O :1AC 25.11?(d) do not apply. unless otlterr~~ise attrtlror•ized by the eort~rarission. iE1F C'',retii rt susljendeEl r~~ell has Lieen art~~€ndcsrsed or r•e-enter•cd, the operator shall ntairZtain the irric~rity of the location and clear tl~e iocaiion in aceor-ElrrEee «~~itFr 2Q ~.1C 25.1?O(a)(2j or• (b} or ~~~itlr Zf) :1.1C 25.1?2(c)~2) Err (d), as ~~l}~~licable. fie) :'~ sEspension apl}roved alter the E~ffeetive date of this section «~ill be valid fo.- r~o nror•e ihart 1tl ,years or• trrrtil the reason for drantirrg the suspension is no lon~er• ~~alid, v~~hiehever is earlier. 1eauthori~ations mad- be requested by tl~E' submission of arr ~l_rpli.cation for °~c.rrdf-s- _rllrpro~~als containing the inforn~atior~ r•eq€$ired in subseet.ion ~E~~e 1}-(~j. AOGA has no comment. AOGA Comment: The phrase "until the reason for granting the suspension" is vague. There may be multiple reasons why a suspension was granted. If there are multiple reasons why a suspension was granted, is the suspension no longer valid if only one of those reasons is no longer valid? The smaller phrase "is no longer valid" is also .problematic because of its subjective nature. Reasonable minds may differ regarding when a reason for suspension is "no longer valid." It is (e} :1 suspension approx~ed ai`tE~r• the effective date of this section ~~ill be valid for no mare than 1(1 ,years. t'port notificiation from the Commission that one or more of the reasons for suspension may rio lorrger be valid the operator has GO days to present a plan to address thE~ Commission's concerns. Rearrthorizations Wray be requested ba- tyre sEbmission of arr Application for Sundrv :11~pro~rals containing the information required in subsection Page 3 AOGA Specific Comments on Proposed Changes to 20 AAC 25.110, Suspended Wells February 28, 2008 Page 4 important to be able to clearly identify when, for purposes of enforcement, the Commission considers a reason to be "no longer valid," such as a notice from the Commission. Without clear identification of when a reason is "no longer valid", operators risk being out of compliance with the regulation, even if they might otherwise have a reasonable basis to think that the reason for suspension is still valid. This proposed regulation would also result in an immediate violation, without an opportunity for the Operator to provide information to the Commission to demonstrate that the reason for suspension is still valid. ~;f} ~'s~F• r,n~- r ett scis3~endec3 a:r or after t=4~~ ef'f€:€~ti~e €l~ate ai' tElis srctian. the ~~ptF-ator must inspect tfle «-e3I site ~sithiFl t2 allotlitls of the date of ~,t~~i~ension. Subsequent inspections %11€€ss be conducted within one year of k3~.F~aa.-~~ .3 al' ever~~ ~~ear ending in G or ~. ~:~:ct~ tinge the aperataF- inspects the ~~~ell 4i~c ender' this subsection, the ope.F'atar 6i?~tE1- f,~ive the cC1I11iniSSian ~ LIIIFIinI€Illl of to=~ €iavs notice of intent to inspect the ~~ ~~Ii site and provide the opportunity far coFilrilissian inspectors to ;ICCanlpailz~ the €~erataF• on the inspections tour. AOGA Comment: The requirement for a suspended well inspection within 12 months could result in the Commission called to the site multiple times in the first year to witness setting and verifying the plug, site clearance and to satisfy this requirement. The ten day notice requirement will hamper efficient planning of field activities. The proposed Safety Valve System regulations require 48 hours notice of testing for remote Iocations, so we recommend changing the ten day notice to 48 hours. t i~ j(I }-(5 j. ~1) Par :~~~~= ~~c-e[3 s~.ispellded a-1 or after the eff'ecti~a>~ date of this section. the alleratoF• 111Etst inspect th€: r~~eiE site wittlin 12 months of the date of suspension. Subsequent inspections must be coilduete€i ~vithisl cjtle ~'ea r• pri«r ar after <laFlnarF~ 1 of ever~~ year ending in E} or ~, beginning in 2{315. ~,ach time the operator inspects tEle ~~~elt site under this subsection, the operator nliest give the commission a nlinimiim of` 48 .hour notice of intent to inspect the ~ve3l site and provide the opportunity for commission inspectors to aecompan~- the Page 4 AOGA Specific Comments on Proposed Changes to 20 AAC 25.110, Suspended Wells February 28, 2008 Page S Also, as currently written, wells suspended in 2008 or 2009 would require a subsequent inspection in 2010. Such immediate follow up inspections for newly suspended wells may be unnecessary. We recommend that the first cycle of five year inspections required by this section should begin in 201S.We are also recommending for some flexibility in inspections to allow for unpredictable conditions. ~~ E ctr .t--~° ~~ E>li strtilac°aE:~€s~l ~~€--;~.• ?g~ th€} ef'f'ective d~~te of t[~ati see~~~ior-. tE~e operator must inspect flat ~~~ell sift: anti r°e-Fappl~~ for suspended status h~, filing ~4ra :~17pfieatiora f'or• caaaacl-~- ~plartrf~~?l cunirriraing flat irrfor•an~atiorr req-airc:d irr sg-bs[~ctiora (1~)(1)-~~) s s f't~llo~vs: 1 ~ ~~ ithin one. rear €af flee e#fec~ive Mate of dais section for• arav well sr-sTaerr€led prio-• to ,lanrraarr l 2€}~~: farad (~} w~itlaiaa ~ nears of the srasperrsiora datE~ fo-• ~~aner i~~ell suspended orr or after ,Turaraa--s• 1, ?f?Q~ brrt laefor•e the effective date of this section. AOGA Comment: Most suspended wells in the state were suspended prior to 2005. The requirement for site inspection and re- application for suspended well status within the first year will require a significant effort by operators and by commission staff. Most sites are best visited in the summer year. Depending on when the regulations become effective, the planning and logistics required may be difficult during the first year. We recommend the 1 year period be extended to 2 years to allow efficient planning and adding a provision for an alternate schedule as authorized by the commission. There is no recognition of possible offshore suspended wells (25.105(c)). A provision should be added to allow continued suspended well status until there is action by the commission on the re- application. olaer•atur- orr tlre. iaaspectiora tau-•. (~) T'or• .iar~~ ~~~el! suspended pr•ir~r to the effective dame of this secti:tr-. flee operator n~rrst is-speet the «-ell site and re-apple foe- suspended siahas la~~ filing an .~pplic:rti€~ra for• Sundr~~ r'~Tt6arras.als. Sarslacnded sty-tus will cantirrue until eomrnissiora r•erader decision. Tlae application wits contain flee inform.-tiora required in suhseetion {la~l;l~-(5} <as 1'0ll0~ s: (11 ~~=ithin t~vo ~°ears of flee eff'ecti~•e date of dais section for ara~- r3~ell suspended prior to Jarauar~~ 1 2f)0~. and (2) within ~+ years of flee suspensitan date for any ~~~ell suspended ore or after ~Iarauaa-~ 1, 2f)0:~ farm licfore the effective date of this section. Page 5 ~~~ OGr`~ Specific Commenta on :Prop~>sed ~~han;;es to 20 AAC 25.110, Suspended Wells F'ebru~;ry 2~~, 20(18 F' age t: &~~! ti~•it~~izt ~t~ xf~?~'c c~f~ .~t~~~ ~~ eC~ site i~a~spection redEflired u~~d€~r this section, the c~perata~• f~~ust file at ~~~purt ut S~incfrt~ ~~'ell Oheratic~-ts (~ ~c~r~~~ f f~_4f)4). 't'he rcpc3rt shall it€cludc: ~~OG.A has no comment. f-1) a s~~n~~~n~ar~~ of a-~v ct~~tnaes ~~otecf sine[ thi last rc~pQ~rt «~~s filed; €2~ ~a pl~~tt sh~~~~~i~ig the. lttcatio~~ E~f the s~~sP>~suEled wc~li astd an}~ uea~~ ~~~e!!s withi~~ c~Bae-quartc~~' mile E:-~di~ts «l' the t~ c•F l l~c~ ~•c:y ~3y well-bead pressure ~•e.Rdings l~) ~s description of the c<~ndition ~>f the e~ ~=!1 ~~~x.~f ~~!l ~~~~•ft=c~~ Ic?<•<Ftic~~~. lr~cludira .~~~~~ fluid(s) o-• sheens(s} ~~isible on the gr€tt~t~cl car in ~~n~, st~rro~~ndic~g watea° a€~d ~~~~€4 he.Ed an€l surrc~uncfi~ag lt~catit~rt. Vii, if and= criterion ~~~ithin this section is A~:~t o6• ceases tc~ be satisfied, the c-perator n.~~st plug and ahaucfoa~ the well in .aecorela«ee with 20 AAC 2`.112 and on r, schedule al~praved f~~~ the e€~cnn~issit~n. ~~OGA Comment: 20 AAC 25.535 already allows the commission, in its c-iscretion, to take enforcement action, including ordering corrective action or remedial work, against a person who has violated or failed to comply with a r~rovision of AS 31.05 or Chapter 25 of Title ~:0 of the Alaska Administrative Code (including the requirements of 20 AAC 2.5.52ti). Also, 20 AAC 25.539 alreadv Page 6 AOGA Specific Comments on Proposed Changes to 20 AAC 25.110, Suspended Wells February 28, 2008 Page 7 ~. authorizes the commission to to issue a temporary emergency order without a hearing if necessary to protect against immediate harm to public health or safety. We believe the proposed regulation is unnecessary because it is duplicative of existing regulations, and because the proposed regulation lacks important due process safeguards that are contained in the existing regulations. This section is unclear and subject to interpretation. Who will make this determination and when? The phrase "criterion" is vague. At a minimum, we would recommend replacing the word "criterion" with "requirement". The current regulations contain specific reasons and criteria for the Commission to use proposed changes have lost clarity by removing those requirements and criteria. AOGA Comment: We suggest adding an (i) 'l he zc~n~r~jissian n~a~° administrative approval section to allow .~dmi~~;strati~ ei~~ a~~~ro~~e, ire its V the commission to deal with special diser('tsc)-~, a variertce f~-~nt tote situations. req~airernent of this secai€~~~ if $:~e ~~«r~~:etce pr~~•ides f€~r .~$ Ic.r~s$ edu~-Ea~ et~zcdi~~e pla~ggiiz~ ~f the «~el[ a~.d prey°e~t~tian of ffisica n~o~°ecue~t irttt~ s(~((~•ces of hvcfr(~rarh~ns or fresht~~ater. AOGA Comment: The ro osed €~ ~~$ tl~e (~~l~r•~t$4r`s rec~(~est Page 7 AOGA Specific Comments on Proposed Changes to 20 AAC 25.110, Suspended Wells February 28, 2008 Page 8 regulations do not include the confidentiality protections contained in the current regulations 25.110(c). We strongly suggest that information concerning the completion of a well or considered a trade secret continue to have that protection. idE'C'f}r3~3`r'or)~rrlf,~, Fllt Srik}rrrrSSrE}rr, Iri~(}2'Tl.i~FQirt 4ra~rtt~iiCfd ~i! S~I~}'4S` l~ii'tt ~}~' ahpiicah~e cr•iter-i~€ ~~~>r- ~~~e~t srrspensi~n rrrrciet° (~ } of ttris sctic}n li.t~~e k~eert rite! ~~ilE be kept corr~cferrtihl (1 } for• fire per'i€}c~ s~}eeiliecf rrncler• ~S .~;.€1~.t135(c:-, €~ the rrrfcrr•nr~tirr}n is ciescr-ihed irr 70 ~~~~; 25.Oi1(1-~; ~r- (2~ fcr the t~n~e tt~Z~ tyre inft~r•r~~~tr€rrr h.rs ~~s~lrre as a tr~rde secret, if the irrftar-rtration i4 nt}t clescr~he€~ in 2Ct A_~C ~~.f} il(h} ~rnt ~s riete.r-r~sz~ed k~- Ehe con~rrriss~~rr to cQrrstitrrte a tr~rde secret under- .~S :#5.f~.~~F~. Page 8 A(?GA Proposed Redline to AC)GCC Regulation Changes to 20 AAC .11.110, Suspended Wells February 28, 2008 20 AAC 25.110 is repealed and readopted to read: 20 AAC 25.110. Suspended wells. (a) ~tralfl~,-~b~€~.t~~€~#xr~r~t-+~ +-~..:t~.€=;€-(€~#--t3-r~~-'~r-r?ci~r,,'tc:-_~s~?;:~>lf allUVVPd ur7dc r ~ 0 ~~ ~ ?_~~. ] (15, an operator may apply to the commission under (b) of this section for suspension of a well. 1-Irf, efir'v'~rT3{-~~i-Ft-T#}-s~.~, r{{.?i}}E3#i%,~ir3~•~ -3ga ~~-1#> tf.~¢i~f-fls?i' #f3}~'s ~iz3}9~~?-f#E;'H4 Y.1}i~,r' i~-3~-:.~:t}}.•.~! ~t~t€!~-i~iot,~fe€fz~xa~f~#~~t4.~r c~afi}r~3l,->t~r~: thF_ c:~~~tirn~~, i~~~~ ~ fll, r~t,cai~ ap~,iic~tioi~ by tl~~ ~i~F r ~tc~r ~n~der (k~~ of tl_~is_sEctionl_~rpprvve_tl_~e suspension of a well if 1 _tfie well I/~)_en<<7uii~ers liydrorarbc~n~ nf;auftir lent rlu~~lity_.~rld-ctu~.~r#titytE? irrdi~ate that tt~re well is capable €~( ~roduci~it; ir~a ire =_ctua-ititie.s, as re~~s~~r~~i~ cie.n~onstrated ley v~ell tests or inte~~ etiv~ formatior# evaluation d<ata~ for~urfroses cif thisparaAraph, " ap .yin ty ataritities" rlieari5 c~raar~_trtir_-sufifrcient triyic>fcl_r_reafurnir7__E xcess_c~f ~~er<3ti~~ce>sts ~G is a candidate for redriilirlp,; I~asLoter~fiial_ value as a service weIIL or ~D) is located on a~ad~~latf_orrn with active~rnclucing or service wells, and ~Ltlre o~aerat~r justifies to the commission's satisfaction w~ the well slr,uld not be abandoned and if tl~~~ ~nrell is not comi>leted, why_the well should not be co_ mt~leted4 sufficient reasons include the jn) unavailability of_s~rrface_t~roduc_tion or tratrst~c~rtation facilities;. ~F3_Lirr~rudence of security maintenance of a completed well in a shut-in status; jC) need for pool delineation and evaluation to determir7e the rudence of pool development. (b) An Application for Sundry approvals (Form 10-403) must be submitted to and approved by tl~e commission before plugging operations are begun in a well for which suspension is proposed-i art tat Page 1 AU(.~A f'ropr~sed Redline to AOGCC Regulation Changes to 20 AAC 25.1.10, Susnencied Wells feL~ruary 28, 2008 ~~~~~s~+r' ~ ;i.r ~ _yi-{x ti .i~s:~ r rti~~'i:~'s :~uj~t~.~ { x.r.l.~-.! i(..,i ,~ ~~i r. ;~ ~:r~rf' ~,7I47n1~)t d~ ~StC1~l~1~ tC~ su~er~c~ a ulell r.a nF cried c>ral ai;~Erroval_rn~~bE reciuesteci from tf~re curnn~n5~ron~ if oral ap~ro~~<al is _.. _. _ _ ._, - _ _ _ _ _ ... _..__ _. _ _ . , ___. a . _ _ , _ ._-- obtained frr>rn the._rommi~tron thc_.r~~ine r7f thc~ ret?resFr.ri~tr~~_of the ~.ciir~rz~i_sic~n ~r~ha prcwicJc>c~ or~~l a_t?i?_r_oval ~~r~d tf~e date ~f tl~e ahprov~~l_tr~u~t he_includc*d ie.tl7c~_~i?plir~~iion_(ar_St~rr~iry ~i;~;~rpval~, wf~ich rTiust bc~ ~ubniitted within 3 ria_y_s fvr_fir~~l approval by_tl~f> ~or7~nrESSi~i~,_The application must include (1) the reason and supporting documentation for suspension; (2) wellbore diagrams illustrating the current and proposed mechanical configurations of the well; (3) information on abnormally geo-pressured or depleted strata; (4j a description of the proposed work plan, including how the integrity of existing and proposed plugs will be demonstrated; and (5) evidence that all freshwater and hydrocarbon resources are protected. (c) All hydrocarbon-bearing, freshwater, abnormally geo-pressured and depleted intervals must be plugged in accordance with the requirements of 20 AAC 25.112-){-~-~,_exc~~t_the rec~rerrinnts of 20 AAC 25.112~d~ do rr_~t at~hly, unless otherwise authorized by the commission. (d) Until a suspended well has been abandoned or re-entered, the operator shall maintain the integrity of the location and clear the location in accordance with 20 AAC 25.170(a)(2) or (b) or with 20 AAC 25.172(c)(2) or (d), as applicable. (e) A suspension approved after the effective date of this section will be valid for no more than l0 years,_ U ion notification frorn_tl~e_Corr~rnission tf_~at one or rnc~re of tF~e reasons for susi~En ion may no Ion ~r be valid tl7e~erator (gas 60 dates to r~reseni a~lar7 to adc{ress it~~ Crar~~mission s_cUncerns.-o:~ t+rati•I--t-Igo-~~~s~r~-fc7r-g~~r-rtir-~;-~f~e-1;tt~pe~r~i~3n-is~~-finger--vt~fi{3; a~#as~#ae~~r--is-~.a~~litr~. Reauthorizations Page 2 AOGA Proposed Redline to AOGCC Regulation Changes to 20 AAC 25.110, Suspended Wells February 28, 2008 may be requested by the submission of an Application for Sundry Approvals containing the information required in subsection (b)(1)-(5). (f) For any well suspended on or after the effective date of this section, the operator must inspect the well site within 12 months of the date of suspension. Subsequent inspections must be conducted within one year K~r ic~r_or_ ~~fter_e~# January 1 of every year ending in 0 or 5,.be,irni rini;_rrr 20,1.5.- _ _- Each time the operator inspects the welt site under this subsection, the operator must give the commission a minimum of #~+~-~lays~lf3_Ixnrr notice of intent to inspect the well site and provide the opportunity for commission inspectors to accompany the operator on the inspection tour. (g) For any well suspended prior to the effective date of this section, the operator must inspect the well site and reapply for suspended status by filing an Application for Sundry Approvals_._ Sc.,>i~~rrcled status will ccmtirn{e until c~rnrnr<Sion rer~~lc,r_ ci~ris_rr>rr__Tlr~ ri~l~lie~~tiorr,v~ill -containir~zithe information required in subsection (b)(1)-(5) as follows: (1) within F~-two_years of the effective date of this section for any well suspended prior to January 1, 2005; and (2) within five years of the suspension date for any well suspended on or after January 1, 2005 but before the effective date of this section. (h) Within 30 days of any well site inspection required under this section, the operator must file a Report of Sundry Well Operations (Form 10-404). The report shall include: (1) a summary of any changes noted since the last report was filed; (2) a plat showing the location of the suspended well and any new wells within a one- quarter mile radius of the wellbore; (3) well-head pressure readings; Page 3 AOGA Proposed Redline to AOGCC Regulation Changes to 20 AAC 25.110, Suspended Wells February 28, 2008 (4) a description of the condition of the well head and surface location, including any fluids(s) or sheens) visible on the ground or in any surrounding water; and (5) photographs clearly showing the weft head and the surrounding location. (i).6#-ar3y-¢~~ii~rfs}+~-wit~~fs~-~tli's.s s~rki~_}r~ i•~;_not-or ~:~~s~+~--sax}~::fi~.; t}a~.~t?~rt~t-o{=-~~~{:t ~.f~.i.~-t,-ar?c~ c1~-?c1414~!?3?.~llf ,!`i~-:~~~fi -3d._c;c}t.~:}¢{F:fa~„ft~s ~i1 "hp0;-- x~.~~ ~-f zf}i~.5~{a_ }-lsl~-i..~~ {~:~:,.~.~n$ {c~ ra?A:~ ~?4t..t~-i{a ±. a.. .f;:ar n 3 r. . x. a t .{}- .{{~.{ ~il..Thc~ cc:~rnn~rssi~n may <?drnir>i,tr_~~li_vcl~a4~t~ro~~E, iti its rlrscr~>tion, a uariance frc~na_the requir^r~iE>.nt of tl?i~ scr trop rf the v~~rian~ E. Earovides f{~r at least e: c~~~-{I!y {~iif_ctive ~7luggnt; ~~f t:he_well and ~re_v_c ntion_of fluid r??cwemc ni into_sourc_es of Iycirc~c:arL~ons or fif*shwatc~r. jjZ ~1t the operatgr s re~firest acronip_?nLring tfte >t~bmr .Sic?n, rnfnrrn~hon s{rk~rr?itt~d to si-row that the applicable criteria for well suJ~~r~si~x~_und~r ~aLof this- 4=cti~;n_f-~art~.re_I.~cen r7~~~t will be I_.e~t confidr-__ntial 1~ for the period s~~eei_ficc{_im~lgr !~~_~1 0~.035(c)_~_if the i€{ffxn?ation is described in ZO AAC 25.071 b ~ or _______~7) for the tirr?e ti~~at the rr~forr~?atiar~_t~a~ yal€ie a5 a tt~{c~e,_~ r,,cret~if tide information is not escnbed in ZO AAC 75.071 b but is deter i~?irt~d b.~thE cUn~rrrlissi~n-t~>-constitute a _tracle sec;ret_under As ~5.5o.~.art. Page 4 `~ u ~U~t)CC~~~'1l ~ ~ 1 ~S Alaska, Inc. February 28, 2008 Mr. John K. Norman, Chairman Alaska Oil and Gas Conservation Commission 333 W. 7~' Avenue, Suite 100 Anchorage, Alaska 99501-3539 Re: Comments of ConocoPhillips Alaska, Inc. Proposed Regulation Changes to 20 AAC 25.110 Dear Chairman Norman: Erec S. Isaacson Vice President Exploration & Land P.O. Box 100360 Anchorage, AK 99510-0360 Phone 907.263.4556 Fax 907.263.6335 ConocoPhillips Alaska, Inc. (CPAI) appreciates the opportunity to provide input to the proposed revisions to 20 AAC 25.110 regulations addressing suspended wells. There are several issues that we would like to bring to your attention and that are discussed in CPAI's attached comments (Attachment 1). We have formulated a revised version of the proposed regulations (Attachment 2) that reflects the suggestions and proposed changes discussed in Attachment 1. In several instances, our proposed changes reflect what we understand to be the Commission's intent, but offer suggested language changes to more clearly convey that intent. Considering the magnitude of the proposed changes, the extensive comments provided in this communication and potential impact to operators, CPAI requests that the Commission allow industry to comment on the Commission's final version of the draft regulations 20 AAC 25..110 prior to submittal to the Attorney General's Office. Again, thank you for the opportunity to comment upon these proposed regulations. We look forward to continuing to work cooperatively with the Commission on this effort. Please contact me or Randall Kanady,_at 263-4126 with any question. Sincerely, Erec S. Isaacson Attachments (2) t i Attachment 1 ConocoPhillips Alaska Inc. comments on proposed changes to 20 AAC 25.110 Suspended Wells Submitted to the Alaska Oil and Gas Conservation Commission on February 27, 2008 By section: 20 AAC 25.110(a). The AOGCC's proposed revision to subsection (a) would remove all standards from the determination as to whether appropriate grounds for a well suspension exist. By relying on a demonstration "to the commission's satisfaction" for such determinations, all such determinations become subjective and there will be no guard against uneven standards being applied from operator to operator and from one panel of commissioners to the next. CPAI is not aware of and the commission has not expressed any dissatisfaction with or adverse results from the current list of standards in the existing regulation at subsection (a) for determining whether a well suspension should be granted. Furthermore, by amending the introductory words to be "[u]nless abandonment is required under 20 AAC 25.105" as opposed to the current wording of "[i]f allowed under 20 AAC 25.105", the proposed regulation would set up a circular reference in some instances. Regulation 20 AAC 25.105 currently provides for situations where abandonment is absolutely required: "before expiration of the owner's rights in the property .. "subsection (a); and "before the platform is removed or dismantled .. " in subsection (b). The same regulation however provides several times that a well "must be abandoned" in certain situations "unless the well is completed ... or is suspended." See 20 AAC 25.105(b), (c), and (d). In those situations, the proposed language allowing suspensions at the discretion of the commission "unless abandonment is required" becomes ambiguous and unclear. Subsections (b), (c) and (d) of 20 AAC 25.105 do require abandonment, but only if the well is not suspended. The proposed amended 20 AAC 25.110(a) allows suspension but only if abandonment is not required. CPAI understands that the commission does not wish to be involved in "paying quantities" calculations, as the existing subsection 110(a) requires, but that the commission is otherwise amenable to continuing to have standards for suspension of a well. CPAI recommends amending -subsection (a) as-shown in Attachment 2, which should address the commission's concerns along ---- with those expressed by CPAI and other operators. 20 AAC 25.110(b), (c) and (d) CPAI does not oppose and could support the changes proposed in the commission's proposed new subsections (b), (c) and (d), but believes that in proposed subsection (c), the reference to "20 AAC 25.110(c)(1)" should be revised to "20 AAC 25.110(c);" and it would be in the best interest of all parties that the provisions of existing subsection (c) regarding confidential protection of information qualifying under 20 AAC 25.071 (b) and AS 45.50.940 continue to be included in the final regulation as revised. The commission has not indicated that any of the protections currently provided by the existing subsection (c) are to be abandoned but continuing these provisions in the regulations will provide clarity and certainty regarding the status of claims for confidentiality of material submitted in support of an application for well suspension. The wording in existing subsection (c) should be continued in the regulations and could be included in a new subsection (k) in the revised regulation. i • 20 AAC 25.110(e). The proposed subsection (e) imposes a new time restriction on wells that are granted suspension under the new regulation, and in doing so, imposes a time standard subject to multiple interpretation and application: "ten years or until the reason for granting the suspension is no longer valid, whichever is earlier." CPAI submits that an operator may well have a valid but different view of whether a well no longer meets the criteria for suspension and when such a change did or did not occur. Furthermore, as the criteria for suspension as currently proposed by the commission is "to the satisfaction of the commission," the operator may not be aware of all of the criteria relied upon for the commission's satisfaction nor if and the extent to which such criteria relied upon by the commission have changed and if the commission would no longer be satisfied with the well status. Furthermore, any well suspension decision based on a situation that may involve factors not directly included in information submitted to the AOGCC on a routine basis (i.e, potential redrill or service well candidates) would present a situation where the operator and the commission may not have the same information available to make that determination unless notice and an opportunity to be heard are provided. Additionally, it is not clear what status would attach to the well if the commission deems that the criteria have changed and are no longer valid, or even if both the commission and the operator agreed that the criteria have changed. Most suspended wells are not located on producing properties and the interim time period could be on the order of a year. CPAI suggests that the wording be changed to provide that a suspension "will be valid for ten years unless terminated sooner due to change in conditions as provided in Q) below", followed by a provision requiring updates to be filed if the operator becomes aware of changes (new subsection (i) in Attachment 2) and a provision providing for commission review of new information to determine if the suspension should be terminated after notice and a hearing (new subsection Q) in Attachment 2). 20 AAC 25.110(f) CPAI can support the commission's proposed new subsection 110(f) but CPAI suggests that, for those suspended wells located on a pad or platform with active producing or service wells, a notice period of less than ten days may be sufficient as access to a production pad or platform is likely more easily arranged than to a remote location where only one suspended wellbore exists. CPAI suggests that 48 hours notice should suffice for inspection of a suspended wellbore located on a pad or platform with active producing or service wells. 20 AAC 25.110(g) CPAI supports the commission's proposal to add the commission's proposed new subsection (g) as long as the proposed suspended well standards are include in subsection (a). 20 AAC 25.110(h) CPAI carrsupport the commission's proposed new regulation. -- 20 AAC 25.110(1) and (j) The proposed subsection (i) is vague and unclear. For example, it is not clear what "criterion in this section" means. "Criterion" is generally defined as a standard, rule or test by which something can be judged. If it is a standard, rule or test by which suspended wells are judged, it would not appear to apply to requirements for submission of reports. Submission of reports are not standards by which something is judged, but rather obligations to be met for compliance with the regulation. Furthermore, for the same reasons discussed above, the provision "or ceases to be satisfied" is vague, unclear and uncertain and may put an operator in the untenable and unfair position of the commission deeming, based on its internal understanding or knowledge, that a criterion is not satisfied but the operator has no basis to know. In some situations, the determination to require plugging and abandonment of a well may affect the status of the lease on which the well is located. CPAI suggests that the language be clarified to provide that 2 • • operators notify the commission if the operator knows of changes or new information and if the commission receives new information on a suspended well at any time, then the commission may, after notice and an opportunity to be heard, order a suspension terminated and require the well to be plugged and abandoned. See sections (i) and (j) of the attached draft. 20 AAC 25.110(k) As mentioned above, CPAI requests that the language providing for certain information about the bases for the request for suspension be held as confidential information be retained in the regulations. That language could be moved to the end of the regulation section as new subsection (k). See subsection (k) in Attachment 2. 3 • Attachment 2 ConocoPhillips Alaska Inc.'s proposed changes to 20 AAC 25.110 Submitted to the Alaska Oil and Gas Conservation Commission on February 27, 2008 Subsection (a) should be revised as shown below, for the reasons stated in Attachment 1: 20 AAC 25.110. Suspended wells. (a) If allowed under 20 AAC 25.105, the commission will, upon application by the operator under (b) of this section, approve the suspension of a well if (1) the well (A) encounters a significant hydrocarbon zone; (B) is a candidate for redrilling; (C) has potential value as a service well; or (D) is located on a pad or platform with active producing or service wells; and (2) the operator justifies to the commission's satisfaction why the well should not be abandoned, and, if the well is not completed, why the well should not be completed; sufficient reasons include the (A) unavailability of surface production or transportation facilities; (B) imprudence of security maintenance of a completed well in a shut-in status; (C) need for pool delineation and evaluation to determine the prudence of pool development. Existing subsections (b) - (d) are deleted and replaced with the following new subsections. The text of existing subsection (c) is moved to subsection (k) below. The provisions of subsections (b), (c), and (d) are substantially as proposed by the commission in its latest published draft. 1 • (b) An Application for Sundry Approvals (Form 10-403) must be submitted to and approved by the commission before plugging operations commence in a well for which suspension is proposed, except that oral approval may be requested under 20 AAC 25.507(b). The application must include (1)the reason and supporting documentation for suspension; (2) wellbore diagrams illustrating the current and proposed mechanical configurations of the well; (3) information on abnormally geo-pressured or depleted strata; (4) a description of the proposed work plan, including how the integrity of existing and proposed plugs will be demonstrated; and (5) evidence that all freshwater and hydrocarbon resources are protected. (c) All hydrocarbon-bearing, freshwater, abnormally geo-pressured and depleted intervals must be plugged in accordance with the requirements of 20 AAC 25.112(c), unless otherwise authorized by the commission. (d) Until a suspended well has been abandoned or re-entered, the operator shall maintain the integrity of the location and clear the location in accordance with 20 AAC 25.170(a)(2) or (b) or with 20 AAC 25.172(c)(2) or (d), as applicable. CPAI proposes the following subsections in lieu of the subsections (e) and (f~ proposed in the commission's draft regulations for those subsections. The subsections reflect the changes described in the comments provided in Attachment 1. ___ (e) A suspension or renewal of an existing suspension approved after the effective date of this section will be valid for ten years unless terminated sooner due to change in conditions as provided in (j) below. Renewals may be requested by the submission of an Application for Sundry Approvals containing the information required in subsection (b)(1)-(5). (f) For any well suspended on or after the effective date of this section, the operator shall 2 inspect the well site within 12 months of the date of suspension. Subsequent inspections must be conducted within one year before or after January 1 of every year ending in 0 or 5. Each tune the operator inspects a suspended well site under this subsection that is not located on a pad or platform with active producing or service wells, the operator must give the commission a ininiinum of ten days notice of intent to inspect the well site and provide the opportunity for commission inspectors to accompany the operator on the inspection tour. For a well site to be inspected under this subsection that is located on a pad or platform with active producing or service wells, the operator must give the commission a minimum of 48 hours notice of intent to inspect the well site and provide the opportunity for commission inspectors to accompany the operator on the inspection tour. CPAI supports the commission's proposal to add the commission's proposed new subsection (g) as long as the proposed suspended well standards are included in subsection (a). (g) For any well suspended prior to the effective date of this section, the operator shall inspect the well site and file an Application for Sundry Approvals containing the information required in subsection (b)(1)-(5) as follows: (1) within one year of the effective date of this section for any well suspended prior to January 1, 2005; and (2) within five years of the suspension date for any well suspended on or after January 1, 2005 but before the effective date of this section. --- _._ - _ __ - The filing of an Application for Sundry Approval pursuant to (g) of this section shall be deemed an application for renewal under (e) of this section. CPAI supports the commission's proposal to add the commission's proposed new subsection (h). (h) Within 30 days of any well site inspection required under this section, the operator shall file a Report of Sundry Well Operations (Form 10-404). The report shall include: 3 (1) a summary of any changes noted since the last report was filed; (2) a plat showing the location of the suspended well and any new wells within cone-quarter mile radius of the wellbore; (3) well-head pressure readings; (4) a description of the condition of the well head and surface location, including any fluids(s) or sheens) visible on the ground or in any surrounding water; and (5) photographs clearly showing the well head and the surrounding location. CPAI proposes the following subsections in lieu of the subsections (i) and (j) proposed in the commission's draft regulations for those subsections. The subsections reflect the changes described in the comments provided in Attachment 1. (i) If at any time prior to a required well site inspection, the operator learns of changes to any information or data required to be submitted under this section, the operator shall notify the commission of such changes. (j) If the commission, upon review of new information or data from a required well site inspection or submitted to update previously filed information or data, determines in a final commission order after notice and an opportunity for hearing, that the well no longer qualifies for suspension based on the criteria stated in (a) of the section, the ' operator must plug and abandon the well in accordance with 20 AAC 25.112 and on a reasonable time schedule approved by the commission. CPAI proposes that the language of existing subsection (c) be continued as proposed subsection (k) below. (k) At the operator's request accompanying the submission, information submitted to show that the applicable criteria for well suspension under (a) of this section have been met will be kept confidential 4 C (1) for the period specified under AS 31.05.035 (c), if the information is described in 20 AAC 25.071 b ; or (2) for the time that the information has value as a trade secret, if the information is not described in 20 AAC 25.071 b but is determined by the commission to constitute a trade secret Linder AS 45.50.940. 5 STATE OF ALASKA OIL AND GAS CONSERVATION COMMISSION SUSPENDED WELLS REGULATION MEETING February 21, 2008 NAME AFFILIATION PHONE # ~~ «k ('ro~~r w oo ~ M cTa'h1o n ~L ~ - 3 o Y 3 ~ c~ a-~ c~.~ ~ ~ ~~G ~ '1~3- `a-Sv 4 STATE OF ALASKA ~ NOTICE TO PUBLISHER • ADVERTISING ORDER NO. ADVERTISING INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED A 0-02814038 AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF I`1 ORDER ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE SEE BOTTOM FOR INVOICE ADDRESS F AOGCC AGENCY CONTACT DATE OF A.O. R 333 W 7th Ave, Ste 100 Jod Colombie Jan 4 2008 ° Anchorage, AK 99501 PHONE PcN M 907-793-1238 - DATES ADVERTISEMENT REQUIRED: o Anchorage Daily News 2008 January 7 , PO Box 149001 A h AK 99514 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ric ora e g ~ ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: Advertisement to be published was e-mailed Type of Advertisement Legal® ^ Display Classified ^Other (Specify) SEE ATTACHED ND INVOICE IN TRIPLICATE AOGCC, 333 W. 7th Ave., Suite 100 TO Anchors e AK 99501 REF TYPE NUMBER AMOUNT DATE 1 VEN z ARD 02910 FIN AMOUNT SY CC PGM ~ 08 02140100 2 REQUISITIONED Q'P\ ( __ DIVISION APPROVAL PAGE 1 OF TOTAL OF 2 PAGES ALL PAGES$ COMMENTS LC ACCT FY NMR DIST 73451 02-902 (Rev. 3/94) U Publisher/Original Copies: Department Fiscal, Department, Receiving AO.FRM STATE OF ALASKA FOURTH NOTICE OF PROPOSED CHANGES IN THE REGULATIONS OF THE ALASKA OIL AND GAS CONSERVATION COMMISSION The Alaska Oil and Gas Conservation Commission ("AOGCC") proposes to amend Title 20, Chapter 25, Section 110 of the Alaska Administrative Code, dealing with suspended wells. The proposed changes are intended to clarify the requirements for suspending and the conditions governing the suspension of wells throughout the State, including the grounds for suspending wells and the surveillance, maintenance, and reporting requirements for suspended wells. Subsections (b), (e), (h), and (i) of the proposed changes have changed since the last public notice. For a copy of the proposed changes, contact Jody Colombie at the AOGCC (333 W. 7cn Avenue, Suite 100, Anchorage, Alaska 99501, 907-793-1221) or visit the AOGCC Web site at http://www.aogcc.alaska.gov. The AOGCC is vacating the January 15, 2008 hearing. The public hearing on this proposed action has been rescheduled for February 28, 2008 at 9:00 a.m. Oral comments on the proposed changes may be submitted at the hearing, and written comments must be received by the AOGCC by close of the hearing. If, because of a disability, you need a special accommodation to submit comments or attend the hearing, contact Jody Colombie by 12:00 p.m. on February 25, 2008, to ensure that any necessary, reasonable accommodations can be provided. After the public comment period ends, the AOGCC will adopt, without further notice, the proposed or other changes to the suspended wells regulations or take no action. The language of the final regulations may be different from that of the proposed regulations. YOU SHOULD COMMENT DURING THE TIME ALLOWED IF YOUR INTERESTS COULD BE AFFECTED. Written and oral comments are public records, subject to public disclosure. Statutory Authority: AS 31.05.030. , Subject Statutes: AS 31.05.030. Fiscal Information: The propos do i t expected to require an increased appropriation. ;' ~_ Date: January 4, 2008 Gas Conse vation Commission ~ ~ ADDITIONAL REGULATIONS NOTICE INFORMATION (AS 44.62.190(d)) 1. Adopting agency: Alaska Oil and Gas Conservation Commission. 2. General subject of regulations: suspended wells. 3. Citation of regulations: 20 AAC 25.110. 4. Reason for the proposed action: clarification of regulatory requirements. 5. RDU/component affected: Alaska Oil and Gas Conservation Commission. 6. Cost of implementation to the state agency: zero. 7. Contact person for the regulations: Name: John K. Norman Title: Chairman Address: 333 W. 7t" Avenue, Suite 100, Anchorage, AK 99501 Telephone: (907) 793-1221 E-mail: jody.colombie@alaska.gov 8. Origin of the proposed action: Alaska Oil and Gas Conservation Commission staff. 9. Date: January 4, 2008. n n ~11 --~. 10. Prepared by: ~ ~- ~ r l~--C Jod J. C m ' Special A istant Alaska Oil and Gas Conservation Commission (907) 793-1221 Register ~0_ MISCELLANEOU~ARDS Revision Date: 1/4/2008 20 AAC 25.110 is repealed and readopted to read: 20 AAC 25.110. Suspended wells. (a) Unless abandonment is required under 20 AAC 25.105, an operator may apply to the commission under (b) of this section for suspension of a well. The operator must demonstrate to the commission's satisfaction why the well should not be abandoned or completed. (b) An Application for Sundry Approvals (Form 10-403) must be submitted to and approved by the commission before plugging operations are begun in a well for which suspension is proposed, except that oral approval may be requested under 20 AAC 25.507(b). The application must include (1) the reason and supporting documentation for suspension; (2) wellbore diagrams illustrating the current and proposed mechanical configurations of the well; (3) information on abnormally geo-pressured or depleted strata; (4) a description of the proposed work plan, including how the integrity of existing and proposed plugs will be demonstrated; and (5) evidence that all freshwater and hydrocarbon resources are protected. (c) All hydrocarbon-bearing, freshwater, abnormally geo-pressured and depleted intervals must be plugged in accordance with the requirements of 20 AAC 25.112(c)(1), unless otherwise authorized by the commission. (d) Until a suspended well has been abandoned or re-entered, the operator shall maintain the integrity of the location and clear the location in accordance with 20 AAC 25.170(a)(2) or (b) or with 20 AAC 25.172(c)(2) or (d), as applicable. (e) A suspension approved after the effective date of this section will be valid for no more than 10 years or until the reason for granting the suspension is no longer valid, whichever is earlier. Reauthorizations may be requested by the submission of an Application for Sundry Approvals containing the information required in subsection (b)(1)-(5). (fj For any well suspended on or after the effective date of this section, the operator must inspect the well site within 12 months of the date of suspension. Subsequent inspections must be conducted ~ ~ STATE OF ALASKA NOTICE OF PROPOSED CHANGES IN THE REGULATIONS OF THE ALASKA OIL AND GAS CONSERVATION COMMISSION The Alaska Oil and Gas Conservation Commission (AOGCC) proposes to revoke and replace Title 20, Chapter 25, Section 110 of the Alaska Administrative Code, dealing with suspended wells. The proposed regulations fully revise and add provisions to Section 110. For a copy of the proposed changes, contact Jody Colombie at the AOGCC (333 W. 7~' Avenue, Suite 100, Anchorage, Alaska 99501, 907-793-1221) or visit the AOGCC Web site at http://www.aogcc.alaska.gnv. Written comments on the proposed changes can be submitted to the AOGCC. They must be received no later than 4:30 p.m. on May 22, 2008. A public hearing on the proposed changes will be held on June 17, 2008 at the AOGCC. The hearing will begin at and might be extended to accommodate those present before 9:30 a.m. who did not have an opportunity to comment. Oral and written comments may be submitted at the hearing. If, because of a disability, you need a special accommodation to submit comments or attend the hearing, contact Jody Colombie by June 5, 2008, to ensure that any necessary, reasonable accommodations can be provided. After the public comment period ends, the AOGCC will adopt, without further notice, the proposed or other changes to the suspended wells regulations or take no action. The language of the final regulations may be different from that of the proposed regulations. YOU SHOULD COMMENT DURING THE TIME ALLOWED IF YOUR INTERESTS COULD BE AFFECTED. Written and oral comments are public records, subject to public disclosure. Statutory Authority: AS 31.05.030. Subject Statutes: AS 31.05.030. Fiscal Information: The proposed changes are not expected to require an increased appropriation. Date: April 15, 2008 Daniel T. Seamount, Jr., Chair Alaska Oil and Gas Conservation Commission Register ~0_ MISCELLANEOU~ARDS Revision Date: 1/4/2008 within one year of January 1 of every year ending in 0 or 5. Each time the operator inspects the well site under this subsection, the operator must give the commission a minimum of ten days notice of intent to inspect the well site and provide the opportunity for commission inspectors to accompany the operator on the inspection tour. (g) For any well suspended prior to the effective date of this section, the operator must inspect the well site and reapply for suspended status by filing an Application for Sundry Approvals containing the information required in subsection (b)(1)-(5) as follows: (1) within one year of the effective date of this section for any well suspended prior to January 1, 2005; and (2) within five years of the suspension date for any well suspended on or after January 1, 2005 but before the effective date of this section. (h) Within 30 days of any well site inspection required under this section, the operator must file a Report of Sundry Well Operations (Form 10-404). The report shall include: (1) a summary of any changes noted since the last report was filed; (2) a plat showing the location of the suspended well and any new wells within a one- quarter mile radius of the wellbore; (3) well-head pressure readings; (4) a description of the condition of the well head and surface location, including any fluids(s) or sheens) visible on the ground or in any surrounding water; and (5) photographs clearly showing the well head and the surrounding location. (i) If any criterion within this section is not or ceases to be satisfied, the operator must plug and abandon the well in accordance with 20 AAC 25.112 and on a schedule approved by the commission. History: Eff. 4/2/86, Register 97; am 11/7/99, Register 152; am / / ,Register ) Authority: AS 31.05.030 • Anchorage Daily News Affidavit of Publication 1001 Northway Drive, Anchorage, AK 99508 .! J/)1~~2rxz~ PRICE O ER OTHER OTHER OTHER OTHER GRAND AD # DATE PO ACCOUNT PER DAY CHARGES CHARGES ff2 CHARGES #3 CHARGES #4 CHARGES #5 TOTAL 407797 01/07/2008 02814038 STOF0330 $408.36 $408.36 $0.00 $0.00 $0.00 $0.00 $0.00 $408.36 STATE OF ALASKA POURTH'NOTICE OF PROPOSED CHANGES IN THE REGULATIONS OF THE ALASKA OIL AND GAS CONSERVATION COMMISSION The Alaska Oiiand Gas Conservation Commission ("AOGCC") proposes to an Title 20, Chapter 25, Section 110 ofthe Alaska Administrative Code, dealing STATE OF ALASKA THIRD JUDICIAL DISTRICT Angelina Benjamin, being first duly sworn on oath deposes and says that she is an advertising representative of the Anchorage Daily News, a daily newspaper. That said newspaper has been approved by the Third Judicial Court, Anchorage, Alaska, and it now and has been published in the English language continually as a daily newspaper in Anchorage, Alaska, and it is now and during all said time was printed in an office maintained at the aforesaid place of publication of said newspaper. 'That the annexed is a copy of an advertisement as it was published in regular issues (and not in supplemental form) of said newspaper on the above dates and that such newspaper was regularly distributed to its subscribers during all of said period. That the full amount of the fee charged for the foregoing publication is not in excess of the rate charged private individuals. C Signed Subscribed and sworn to me before this date: ~OTgR~ ~~ ~„ • ,., ,. ~SL1G .. rI~• " h ~ ~r• •J~ J~1JJ J~:~~1~1~'1 ))))1 The propose changes are intended to clarify the requirements for suspending and the condition governing the suspension of wells throughout the State, including the grounds fors spending wells and the surveillance, mamtehance, and reporting requirements f suspended wells. Subsections (b), ( (h), and (i) of the proposetl changes have changed since the last public notice. For a copy of the prop ed changes, contact Jody Colombia at the AOGCC'i333 W: 7th Avenue, Suite 100, A horage; Alaska 99501, 907-793-1221) Or visit the AOGCC Web site at .a c laska v. The AOGCC is vacating the lan ry 15, 2008 hearing. The public hearing on this proposed action has been resch led for February 28, 2008 at 9:00 a.m. Oral comments on the proposed changes ay be submitted at the hearing, and written comments must be received by the AOGCC by close of the hearing. If, because of a disability, you need a special accommodation to submit comments or attend the hearing, contact Jody Colombia by 12:00 p. ebruary 25, 2008, to ensure that any necessary, reasonable accommodations can be p After the public comment period ends, the AOGCC will adopt, without further notice, the proposed or other changes to the suspended wells regulations or take no action. The language of the final regulations may be different from that of the proposed regulations. YOU SHOULD COMMENT DURING THE TIME ALLOWED IF YOUR INTERESTS COULD BE AFFECTED. Written and oral comments are public records, subject to public disclosure. Statutory Authority: AS 31,05.030. Subject Statutes: AS 31.05.030. Fiscal Information The proposed actionis not expectetl to require an increased appropriation. Date:. January 4,.2008 John K. Norman, Chamnan Alaska Oil and Gas Conservation Commission ADDITIONAL REGUATIONS NOTICE INPO1iMATION (AS44.02.190(d)) 1. Adopting agencyr Alaska Oil and,Gas Conservation;Commission: 2. General subject of regulations: suspended wells. 3. Citation of regulations 20 AAC 25.110. 4. Reason for the proposed. action: clarification. of regulatory requirements. 5. RDU/component affected: Alaska Oil and Gas Conservation Commissidn. 6. Cost of implementation to the state agency: zero. 7. Contact person for the regulations: Name: John K. Norman Title: Chairman Address: 333 W. 7th Avenue, Suite 100, Anchorage, AK 9950T Telephone: (907)793-1221 E-mail: jody.colombiel??alaska.gov 8. Origin of the proposed action: Alaska Oil and.Gas Conservation Commission. staff. 9, Date: January 4, 2008. 10. Prepared by: Jody J. Colombia S ecial Assistant Alaska Oil and Gas Conservation Commission (907)J93-1221 AlJ-02814038 Published: January 7, 2008 Notary Public in and for the State of Alaska. Third Division. Anchorage, Alaska ~ ~, ADVERTISING INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED /L O_02814038 AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF /'1 ORDER ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE SEE BOTTOM FOR INVOICE ADDRESS F AOGCC AGENCY CONTACT DATE OF A.O. R 333 West 7th Avenue. Suite 100 ° Anch~rage_ AK 9951 PHONE PCN M 907-793-1238 - DATES ADVERTISEMENT REQUIRED: o Anchorage Daily News January 7 2008 , PO Box 149001 Arichora e AK 99S 14 g THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN NTIRETY ON ATES SHOWN ~ . ITS E THE D SPECIAL INSTRUCTIONS: Account # STOF0330 AFFIDAVIT OF PUBLICATION United States °f America REMINDER State of ss INVOICE MUST BE IN TRIPLICATE AND MUST REFERENCE THE ADVERTISING ORDER NUMBER. division. A CERTIFIED COPY OF THIS AFFIDAVIT OF PUBLICATION MUST BE SUBMITTED WITH THE INVOICE. Before me, the undersigned, a notary public this day personally appeared ATTACH PROOF OF PUBLICATION HERE. who, being first duly sworn, according to law, says that he/she is the of Published at in said division and state of and that the advertisement, of which the annexed is a true copy, was published in said publication on the day of 2007, and thereafter for consecutive days, the last publication appearing on the day of .2007, and that the rate charged thereon is not in excess of the rate charged private individuals. Subscribed and sworn to before me This _ day of 2007, Notary public for state of My commission expires Colombie, Jody J (DOA) From: Colombie, Jody J (DOA) Sent: Friday, January 04, 2008 9:14 AM To: 'Ads, Legal' Subject: Public Notice Attachments: Additional Regulation Notice 1-4-08.doc; Suspended Wells Notice 1-4-08.doc Please publish on Monday. Page 1 of 1 1 /4/2008 • Colombie, Jody J (DOA) From: Colombie, Jody J (DOA) Sent: Friday, January 04, 2008 2:04 PM Subject: Fourth Notice of Hearing, Additional Information, Proposed Regulation Attachments: Fourth Notice, Additional Info and Proposed Regulation.pdf Page 1 of 1 BCC:McIver, C (DOA); 'Alan Birnbaum <""Alan J Birnbaum "> (alan.birnbaum@alaska.gov)'; 'Aleutians East Borough'; 'Anna Raff ; Arion, Teri A (DNR); 'Arthur C Saltmarsh'; 'Arthur Copoulos'; 'Barbara F Fullmer'; 'bbritch'; 'Bill Walker'; 'Brad McKim'; 'Brandon Gagnon'; 'Brian Gillespie'; 'Brian Havelock'; 'Brit Lively'; 'Bruce Webb'; 'buonoje'; 'Cammy Taylor'; 'Cande.Brandow ; 'carol smyth'; 'Cary Carrigan'; 'Catherine P Foerster'; caunderwood@marathonoil.com; 'Charles O'Donnell'; 'Chris Gay'; 'Christian Gou-Leonhardt'; 'Cliff Posey'; 'Dan Bross'; 'dapa'; 'Daryl J. Kleppin ; 'David L Boelens'; 'David Steingreaber'; 'ddonkel'; 'Deanna Gamble'; 'Deborah J. Jones'; 'doug_schultze'; 'Evan Harness'; 'eyancy'; 'foms2@mtaonline.net'; 'Francis S. Sommer'; 'Fred Steece'; 'Garland Robinson'; 'Gary Laughlin'; 'Gary Rogers'; 'Gary Schultz'; 'ghammons'; 'Gordon Pospisil'; 'Gregg Nady'; 'gregory micallef; 'gspfoff; 'Hank Alford'; 'Harry Engel'; 'jah'; 'James B Regg'; 'James M. Ruud'; 'James Scherr'; 'Janet D. Platt'; 'jdarlington'; 'jejones'; 'Jerry McCutcheon'; 'Jim White'; 'Jim Winegarner'; 'Joe Nicks'; 'John Garing'; 'John S. Haworth'; 'John Spain'; 'John Tower'; 'John W Katz'; johnny.aiken@north-slope.org; 'Jon Goltz'; 'Julie Houle'; 'Kari Moriarty'; 'Kaynell Zeman'; 'Keith Wiles'; knelson@petroleumnews.com; 'Kristin Dirks'; 'Laura Silliphant'; 'Lois'; 'Lynnda Kahn'; 'mail=akpratts@acsalaska.net'; 'mail=Crockett@aoga.org'; 'mail=fours@mtaonline.net'; 'Mark Dalton'; 'Mark Hanley'; 'Mark Kovac'; 'Mark P. Worcester'; 'Marguerite kremer'; 'marty'r 'Matt Rader'; 'mckay'; 'Meghan Powell'; 'Mike Bill'; 'Mike Mason'; 'Mikel Schultz'; 'Mindy Lewis'; 'MJ Loveland'; 'mjnelson'; 'mkm7200'; 'Nick W. Glover'; NSU, ADW Well Integrity Engineer; 'Patty Alfaro'; 'Paul Decker'; 'Paul Winslow'; Pierce, Sandra M (DNR); 'Randall Kanady'; 'Randy L. Skillern'; 'rcrotty'; Rice, Cody J (DNR); 'rmclean'; rob.g.dragnich@exxonmobil.com; 'Robert Campbell'; 'Robert Province'; 'Roger Belman'; 'Rudy Brueggeman'; 'Scott Cranswick'; 'Shannon Donnelly'; 'Sharmaine Copeland ; 'Sondra Stewman'; 'Sonja Frankllin'; 'stanekj'; 'Stephen F Davies'; 'Steve Lambert'; 'Steve Moothart'; 'Steven R. Rossberg'; 'tablerk'; 'Tamera Sheffield'; 'Temple Davidson'; 'Terrie Hubble'; 'Thomas E Maunder'; 'Tim Lawlor'; 'Todd Durkee'; 'trmjrl'; 'Walter Featherly'; 'Walter Quay'; 'Wayne Rancier'; Buch, Bob (LAA); Bunde, Con (LAA); Chenault, Mike (LAA); Cissna, Sharon (LAA); Coghill, John (LAA); Cowdery, John (LAA); Crawford, Harry (LAA); Dahlstrom, Nancy (LAA); Davis, Bettye J (LAA); Doll, Andrea (LAA); Doogan, Mike (LAA); Dyson, Fred (LAA); Edgmon, Bryce E (LAA); Ellis, Johnny (LAA); Elton, Kim S (LAA); Fairclough, Anna (LAA); 'Foster, Richard'; French, Hollis (LAA); Gara, Les (LAA); Gardner, Berta (LAA); Gatto, Carl (LAA); Green, Lyda N (LAA); Gruenberg, Max F (LAA); Guttenberg, David (LAA); Harris, John (LAA); Hawker, Mike (LAA); Hoffman, Lyman F (LAA); Holmes, Lindsey (LAA); Huggins, Charlie (LAA); Johansen, Kyle B (LAA); Johnson, Craig W (LAA); Joule, Reggie (LAA); Kawasaki, Scott Jw (LAA); Keller, Wes (LAA); Kelly, Mike (LAA); Kerttula, Beth (LAA); Kookesh, Albert (LAA); Ledoux, Gabrielle R (LAA); Lynn, Bob (LAA); McGuire, Lesil L (LAA); Meyer, Kevin G (LAA); Nelson, Mary (LAA); Neuman, Mark A (LAA); Olson, Donny (LAA); Olson, Kurt E (LAA); Ramras, Jay B (LAA); Roses, Bob (LAA); Salmon, Woodie W (LAA); Samuels, Ralph (LAA); Seaton, Paul (LAA); Stedman, Bert K (LAA); Stevens, Gary L (LAA); Stoltze, Bill (LAA); Therriault, Gene (LAA); Thomas, Bill (LAA); Thomas, Joe (LAA); Wagoner, Tom (LAA); Wielechowski, Bill (LAA); Wilken, Gary R (LAA); Wilson, Peggy A (LAA) Attachments:Fourth Notice, Additional Info and Proposed Regulation.pdf; I apologize for the inconvenience but the Third Notice that you received yesterday lacked the clarification statement for the proposed amendment. Jody Colombie Special Assistant 1/4/2008 • Mary Jones David McCaleb Cindi Walker XTO Energy, Inc. IHS Energy Group Tesoro Refining and Marketing Co. Cartography GEPS Supply & Distribution 810 Houston Street, Ste 2000 5333 Westheimer, Ste 100 300 Concord Plaza Drive Ft. Worth, TX 76102-6298 Houston, TX 77056 San Antonio, TX 78216 George Vaught, Jr. Jerry Hodgden Richard Neahring PO Box 13557 Hodgden Oil Company NRG Associates Denver, CO 80201-3557 408 18th Street President Golden, CO 80401-2433 PO Box 1655 Colorado Springs, CO 80901 John Levorsen Michael Parks Mark Wedman 200 North 3rd Street, #1202 Marple's Business Newsletter Halliburton Boise, ID 83702 117 West Mercer St, Ste 200 6900 Arctic Blvd. Seattle, WA 98119-3960 Anchorage, AK 99502 Baker Oil Tools Schlumberger Ciri 4730 Business Park Blvd., #44 Drilling and Measurements Land Department Anchorage, AK 99503 2525 Gambell Street #400 PO Box 93330 Anchorage, AK 99503 Anchorage, AK 99503 Ivan Gillian Jill Schneider Gordon Severson 9649 Musket Bell Cr.#5 US Geological Survey 3201 Westmar Cr. Anchorage, AK 99507 4200 University Dr. Anchorage, AK 99508-4336 Anchorage, AK 99508 Jack Hakkila Darwin Waldsmith James Gibbs PO Box 190083 PO Box 39309 PO Box 1597 Anchorage, AK 99519 Ninilchick, AK 99639 Soldotna, AK 99669 Kenai National Wildlife Refuge Penny Vadla Richard Wagner Refuge Manager 399 West Riverview Avenue PO Box 60868 PO Box 2139 Soldotna, AK 99669-7714 Fairbanks, AK 99706 Soldotna, AK 99669-2139 Cliff Burglin Bernie Karl North Slope Borough PO Box 70131 K&K Recycling Inc. PO Box 69 Fairbanks, AK 99707 PO Box 58055 Barrow, AK 99723 Fairbanks, AK 99711 Williams Thomas Arctic Slope Regional Corporation Land Department PO Box 129 Barrow, AK 99723 1 ~ ~ SERVICE LIST FOR PROPOSED AMENDMENTS TO 20 AAC 25.110 On January 7, 2008, the fourth public notice of proposed amendments to 20 AAC 25.110, Additional Regulations Notice Information, and proposed regulation were mailed to: Annette Kreitzer Commissioner Department of Administration PO Box 110200 Juneau, AK 99811 Legislative Reference Library Legislative Affairs Agency State Capitol Juneau, AK 99801 Mail Stop: 3101 Senator Charlie Huggins, Chair Senate Resources State Capitol Juneau, Alaska 99801 Representative Kurt Olson, Chair House Oil & Gas Special Committee State Capitol Juneau, Alaska 99801 Senator Lesil McGuire, Chair Administrative Regulation Review State Capitol Juneau, Alaska 99801 Senator John Cowdery, Chair Legislative Council State Capitol. Juneau, Alaska 99801 On January 7, 2008, the fourth public notice of proposed amendments to 20 AAC 25.110, Additional Regulations Notice Information, and proposed regulation were mailed to: Debra Behr Chief Assistant Attorney General Legislation and Regulations Section Department of Law PO Box 110300 Juneau, AK 99811 ~ • ~onocoPh i I I i ps Alaska, tnc. February 28, 2008 Mr. John K. Norman, Chairman Alaska Oil and Gas Conservation Commission 333 W. 7`~ Avenue, Suite 100 Anchorage, Alaska 99501-3539 Re: Comments of ConocoPhillips Alaska, Inc. Proposed Regulation Changes to 20 AAC 25.110 Dear Chairman Norman: Erec S. Isaacson Vice President Exploration & Land P.O. Box 100360 Anchorage, AK 99510-0360 Phone 907.263.4556 Fax 907.263.6335 ConocoPhillips Alaska, Inc. (CPAI) appreciates the opportunity to provide input to the proposed revisions to 20 AAC 25.110 regulations addressing suspended wells. There are several issues that we would like to bring to your attention and that are discussed in CPAI's attached comments (Attachment 1). We have formulated a revised version of the proposed regulations (Attachment 2) that reflects the suggestions and proposed changes discussed in Attachment 1. In several instances, our proposed changes reflect what we understand to be the Commission's intent, but offer suggested language changes to more clearly convey that intent. Considering the magnitude of the proposed changes, the extensive comments provided in this communication and potential impact to operators, CPAI requests that the Commission allow industry to comment on the Commission's final version of the draft regulations 20 AAC 25.110 prior to submittal to the Attorney General's Office. Again, thank you for the opportunity to comment upon these proposed regulations. We look forward to continuing to work cooperatively with the Commission on this effort. Please contact me or Randall Kanady, at 263-4126 with any question. Sincerely, Erec S. Isaacson Attachments (2) • Attachment 1 ConocoPhillips Alaska Inc. comments on proposed changes to 20 AAC 25.110 Suspended Wells Submitted to the Alaska Oil and Gas Conservation Commission on February 27, 2008 By section: 20 AAC 25.110(a). The AOGCC's proposed revision to subsection (a) would remove all standards from the determination as to whether appropriate grounds for a well suspension exist. By relying on a demonstration "to the commission's satisfaction" for such determinations, all such determinations become subjective and there will be no guard against uneven standards being applied from operator to operator and from one panel of commissioners to the next. CPAI is not aware of and the commission has not expressed any dissatisfaction with or adverse results from the current list of standards in the existing regulation at subsection (a) for determining whether a well suspension should be granted. Furthermore, by amending the introductory words to be "[u]nless abandonment is required under 20 AAC 25.105" as opposed to the current wording of "[i]f allowed under 20 AAC 25.105", the proposed regulation would set up a circular reference in some instances. Regulation 20 AAC 25.105 currently provides for situations where abandonment is absolutely required: "before expiration of the owner's rights in the property .. "subsection (a); and "before the platform is removed or dismantled .. " in subsection (b). The same regulation however provides several times that a well "must be abandoned" in certain situations "unless the well is completed ... or is suspended." See 20 AAC 25.105(b), (c), and (d). In those situations, the proposed language allowing suspensions at the discretion of the commission "unless abandonment is required" becomes ambiguous and unclear. Subsections (b), (c) and (d) of 20 AAC 25.105 do require abandonment, but only if the well is not suspended. The proposed amended 20 AAC 25.110(a) allows suspension but only if abandonment is not required. CPAI understands that the commission does not wish to be involved in "paying quantities" calculations, as the existing subsection 110(a) requires, but that the commission is otherwise amenable to continuing to have standards for suspension of a well. CPAI recommends amending subsection (a) as shown in Attachment 2, which should address the commission's concerns along with those expressed by CPAI and other operators. 20 AAC 25.110(b), (c) and (d) CPAI does not oppose and could support the changes proposed in the commission's proposed new subsections (b), (c) and (d), but believes that in proposed subsection (c), the reference to "20 AAC 25.110(c)(1)" should be revised to "20 AAC 25.110(c);" and it would be in the best interest of all parties that the provisions of existing subsection (c) regarding confidential protection of information qualifying under 20 AAC 25.071 (b) and AS 45.50.940 continue to be included in the final regulation as revised. The commission has not indicated that any of the protections currently provided by the existing subsection (c) are to be abandoned but continuing these provisions in the regulations will provide clarity and certainty regarding the status of claims for confidentiality of material submitted in support of an application for well suspension. The wording in existing subsection (c) should be continued in the regulations and could be included in a new subsection (k) in the revised regulation. 20 AAC 25.110(e). The proposed subsection (e) imposes a new time restriction on wells that are granted suspension under the new regulation, and in doing so, imposes a time standard subject to multiple interpretation and application: "ten years or until the reason for granting the suspension is no longer valid, whichever is earlier." CPAI submits that an operator may well have a valid but different view of whether a well no longer meets the criteria for suspension and when such a change did or did not occur. Furthermore, as the criteria for suspension as currently proposed by the commission is "to the satisfaction of the commission," the operator may not be aware of all of the criteria relied upon for the commission's satisfaction nor if and the extent to which such criteria relied upon by the commission have changed and if the commission would no longer be satisfied with the well status. Furthermore, any well suspension decision based on a situation that may involve factors not directly included in information submitted to the AOGCC on a routine basis (i.e, potential redrill or service well candidates) would present a situation where the operator and the commission may not have the same information available to make that determination unless notice and an opportunity to be heard are provided. Additionally, it is not clear what status would attach to the well if the commission deems that the criteria have changed and are no longer valid, or even if both the commission and the operator agreed that the criteria have changed. Most suspended wells are not located on producing properties and the interim time period could be on the order of a year. CPAI suggests that the wording be changed to provide that a suspension "will be valid for ten years unless terminated sooner due to change in conditions as provided in (j) below", followed by a provision requiring updates to be filed if the operator becomes aware of changes (new subsection (i) in Attachment 2) and a provision providing for commission review of new information to determine if the suspension should be terminated after notice and a hearing (new subsection Q) in Attachment 2). 20 AAC 25.110(f) CPAI can support the commission's proposed new subsection 110(f) but CPAI suggests that, for those suspended wells located on a pad or platform with active producing or service wells, a notice period of less than ten days may be sufficient as access to a production pad or platform is likely more easily arranged than to a remote location where only one suspended wellbore exists. CPAI suggests that 48 hours notice should suffice for inspection of a suspended wellbore located on a pad or platform with active producing or service wells. 20 AAC 25.110(g) CPAI supports the commission's proposal to add the commission's proposed new subsection (g) as long as the proposed suspended well standards are include in subsection (a). 20 AAC 25.110(h) CPAI can support the commission's proposed new regulation. 20 AAC 25.110(1) and Q) The proposed subsection (i) is vague and unclear. For example, it is not clear what "criterion in this section" means. "Criterion" is generally defined as a standard, rule or test by which something can be judged. If it is a standard, rule or test by which suspended wells are judged, it would not appear to apply to requirements for submission of reports. Submission of reports are not standards by which something is judged, but rather obligations to be met for compliance with the regulation. Furthermore, for the same reasons discussed above, the provision "or ceases to be satisfied" is vague, unclear and uncertain and may put an operator in the untenable and unfair position of the commission deeming, based on its internal understanding or knowledge, that a criterion is not satisfied but the operator has no basis to know. In some situations, the determination to require plugging and abandonment of a well may affect the status of the lease on which the well is located. CPAI suggests that the language be clarified to provide that C~ J operators notify the commission if the operator knows of changes or new information and if the commission receives new information on a suspended well at any time, then the commission may, after notice and an opportunity to be heard, order a suspension terminated and require the well to be plugged and abandoned. See sections (i) and Q) of the attached draft. 20 AAC 25.110(kj As mentioned above, CPAI requests that the language providing for certain information about the bases for the request for suspension be held as confidential information be retained in the regulations. That language could be moved to the end of the regulation section as new subsection (k). See subsection (k) in Attachment 2. 3 • Attachment 2 ConocoPhillips Alaska Inc.'s proposed changes to 20 AAC 25.110 Submitted to the Alaska Oil and Gas Conservation Commission on February 27, 2008 Subsection (a) should be revised as shown below, for the reasons stated in Attachment 1: 20 AAC 25.110. Suspended wells. (a) If allowed under 20 AAC 25.105, the commission will, upon application by the operator under (b) of this section, approve the suspension of a well if (1) the well (A) encounters a significant hydrocarbon zone; (B) is a candidate for redrilling; (C) has potential value as a service well; or (D) is located on a pad or platform with active producing or service wells; and (2) the operator justifies to the commission's satisfaction why the well should not be abandoned, and, if the well is not completed, why the well should not be completed; sufficient reasons include the (A) unavailability of surface production or transportation facilities; (B) imprudence of security maintenance of a completed well in a shut-in status; (C) need for pool delineation and evaluation to determine the prudence of pool development. Existing subsections (b) - (d) are deleted and replaced with the following new subsections. The text of existing subsection (c) is moved to subsection (k) below. The provisions of subsections (b), (c), and (d) are substantially as proposed by the commission in its latest published draft. 1 ~ ~ (b) An Application for Sundry Approvals (Form 10-403) must be submitted to and approved by the commission before plugging operations commence in a well for which suspension is proposed, except that oral approval may be requested under 20 AAC 25.507(b). The application must include (1)the reason and supporting documentation for suspension; (2) wellbore diagrams illustrating the current and proposed mechanical configurations of the well; (3) information on abnormally geo-pressured or depleted strata; (4) a description of the proposed work plan, including how the integrity of existing and proposed plugs will be demonstrated; and (5) evidence that all freshwater and hydrocarbon resources are protected. (c) All hydrocarbon-bearing, freshwater, abnormally geo-pressured and depleted intervals must be plugged in accordance with the requirements of 20 AAC 25.112(c), unless otherwise authorized by the commission. (d) Until a suspended well has been abandoned or re-entered, the operator shall maintain the integrity of the location and clear the location in accordance with 20 AAC 25.170(a)(2) or (b) or with 20 AAC 25.172(c)(2) or (d), as applicable. CPAI proposes the following subsections in lieu of the subsections (e) and (~ proposed in the commission 's draft regulations for those subsections. The subsections reflect the changes described in the comments provided in Attachment 1. (e) A suspension or renewal of an existing suspension approved after the effective date of this section will be valid for ten years unless terminated sooner due to change in conditions as provided in (j) below. Renewals may be requested by the submission of an Application for Sundry Approvals containing the information required in subsection (b)(1)-(5). (fj For any well suspended on or after the effective date of this section, the operator shall 2 • inspect the well site within 12 months of the date of suspension. Subsequent inspections must be conducted within one year before or after January 1 of every year ending in 0 or 5. Each time the operator inspects a suspended well site under this subsection that is not located on a pad or platform with active producing or service wells, the operator must give the commission a minimum of ten days notice of intent to inspect the well site and provide the opportunity for commission inspectors to accompany the operator on the inspection tour. For a well site to be inspected under this subsection that is located on a pad or platform with active producing or service wells, the operator must give the commission a minimum of 48 hours notice of intent to inspect the well site and provide the opportunity for commission inspectors to accompany the operator on the inspection tour. CPAI supports the commission's proposal to add the commission's proposed new subsection (g) as long as the proposed suspended well standards are included in subsection (a). (g) For any well suspended prior to the effective date of this section, the operator shall inspect the well site and file an Application for Sundry Approvals containing the information required in subsection (b)(1)-(5) as follows: (1) within one year of the effective date of this section for any well suspended prior to January 1, 2005; and (2) within five years of the suspension date for any well suspended on or after January 1, 2005 but before the effective date of this section. The filing of an Application for Sundry Approval pursuant to (g) of this section shall be deemed an application for renewal under (e) of this section. CPAI supports the commission's proposal to add the commission's proposed new subsection (h). (h) Within 30 days of any well site inspection required under this section, the operator shall file a Report of Sundry Well Operations (Form 10-404). The report shall include: 3 r. , (1) a summary of any changes noted since the last report was filed; (2) a plat showing the location of the suspended well and any new wells within aone-quarter mile radius of the wellbore; (3) well-head pressure readings; (4) a description of the condition of the well head and surface location, including any fluids(s) or sheens) visible on the ground or in any surrounding water; and (5) photographs clearly showing the well head and the surrounding location. CPAI proposes the following subsections in lieu of the subsections (i) and (j) proposed in the commission's draft regulations for those subsections. The subsections reflect the changes described in the comments provided in Attachment 1. (i) If at any time prior to a required well site inspection, the operator learns of changes to any information or data required to be submitted under this section, the operator shall notify the commission of such changes. (j) If the commission, upon review of new information or data from a required well site inspection or submitted to update previously filed information or data, determines in a final commission order after notice and an opportunity for hearing, that the well no longer qualifies for suspension based on the criteria stated in (a) of the section, the operator must plug and abandon the well in accordance with 20 AAC 25.112 and on a reasonable time schedule approved by the commission. CPAI proposes that the language of existing subsection (c) be continued as proposed subsection (k) below. (k) At the operator's request accompanying the submission, information submitted to show that the applicable criteria for well suspension under (a) of this section have been met will be kept confidential 4 (1) for the period specified under AS 31.05.035 (c), if the information is described in 20 AAC 25.071 b ; or (2) for the time that the information has value as a trade secret, if the information is not described in 20 AAC 25.071 b but is determined by the commission to constitute a trade secret under AS 45.50.940. ~ ~ Alaska Oil and Gas Association ~/~\~ 121 W. Fireweed Lane, Suite 207 j'~ Anchorage, Alaska 99503-2035 Phone: (907)272-1481 Fax: (907)279-8114 Email: moriarty@aoga.org Kara Moriarty, Deputy Director February 28, 2008 Commissioner Dan Seamount Alaska Oil & Gas Conservation Commission 333 W. 7~' Avenue, Suite 100 Anchorage, AK 99501 Re: Proposed Changes to 20 AAC 25.110 - Suspended Wells Dear Commissioner Seamount: The 17 members of the Alaska Oil & Gas Association (AOGA) account for the majority of oil and gas exploration, development, production, transportation, refining. and marketing activities in the state. We appreciate the opportunity to comment on the proposed regulation changes to 20 AAC 25.110, suspended wells. We support the spirit of the proposed changes to the suspended wells regulations, and agree that a requirement for periodic review and site inspection is reasonable. However, we have specific comments regarding the details contained in the proposed language and are concerned about the elimination of various provisions in the current regulation. In addition to this cover letter, you will find two different attachments. One is a chart that contains the proposed regulation, our specific comment on that regulation, and proposed language for the Commission to consider. The other attachment is proposed redline of the re lations with our su ested lan a recommendations. g ~ gg The regulations should provide clear guidance for when suspended well status is appropriate and under what circumstances such well status will be approved, as well. as providing protection of confidential information. The proposed regulations do not include the confidentiality protections contained in the current regulations 20 AAC 25.110(c). We strongly suggest that information concerning the completion Commissioner Dan Seamount Alaska Oil and Gas Conservation Commission February 28, 2008 Page 2 of a well or considered a trade secret continue to have that protection. We believe the current protections are appropriate and necessary and recommend retaining them. The new work required by the proposed regulations will require a significant effort by operators and by commission staff during the first year and during reauthorizations following the effective date of the regulations. We recommend for any wells suspended prior to January 1, 2005, that the inspection and application period be extended to 24 months. This allows sufficient time for operators and the commission to plan and coordinate site inspections and to prepare and process reapplications. We also suggest adding an administrative approval section to allow the commission to deal with special situations. Please consider this communication and the two attachments as part of the public record associated with this subject. Again, thank you for the opportunity to comment upon these proposed regulations. We look forward to continuing to work cooperatively with the Commission on this effort. Please contact me or Harry Engel, chairman of our AOGCC task group, at 564-4194. Sincerely, a~~~ ~h.~,~ Y - t ~u- KARA MORIARTY Deputy Director Attachments (2) Cc: Commissioner John Norman Commissioner Cathy Foerster AOGA Specific Comments on Proposed 20 AAC 25.110: Suspended Wells fit} Ltttess :than{l{?tt.,t;itt Is ~e{~ttii•ed ttit{lel- ?i) .'~.~~' ;;.IUD, att o~)erato tu.ls at)p;s~ £{, the eornmissiott under fbl a~ this section foi• s~al)ension of a svett. -I'he i)i)ei•ator tt)ttst detatonstt <tte to £he c{tinntissic)It's satisfacti{ut avity- £tte welt sh{,tdd trot hti abitttdone{t c,r contt)tete{.t. The statement "unless abandonment is required under 20 AAC 25.105 is unclear since in 25.105(b)-(d) a well must be abandoned unless it is suspended. We suggest using the existing introductory phrase in the 20 AAC 25.I 10(a): "If allowed under 20 AAC 25.105,"rather than "Unless abandonment is required under 20 AAC 25.105. Also, the current regulations contain specific reasons and criteria for the Commission to use when granting suspended well status. The proposed changes lose clarity by removing those requirements and criteria and providing no guidance for the circumstances under which suspended well status will be granted. We recommend retaining the current criteria in 20 AAC 25.1 IO(a). t% it alt~~wej 1tttCii, !3 :~.~t_ -'.t~8~ ;is. t)t)'S',tt{)i itl;t4 al3l)ILcf) tali ~'fiil~ji'a's~:9i?531 iii)d4'1' ~~)) {)~ th13 SeCtt{)3t Ii)t' SitS~){''=tSt{)?3 a)1 :i ~r~eti. ~'he eort)naisslon ss'i1t. uu~rt ~t}~plicata;l, ~~:~• the aper-=ttor tutcter (hi o#' this see£itt=~, .It)t)I~ove the suspetzsii~lt r,f a weft it. (~; the welt ~;,! t'1tLt)ttI)te<`; >t!;%%{It':sc:sfl'*'{)1.S i;3 y~tt•#iciet~t gtl<ilitti~ attd ~~ttatttati~ t~) itidicaie ihat itae welt is ea;pahle of I)I-}){lucin= i,i ~:tViftt-7, {~U:tlitttll'ti, itS i'~';i5o€I:t't~V da'u)ottstt'.tt:r{I lei sietl tests ot• nttrts.-~ti{• ~o,'I)t~ttion ivatttatiatt data; t~or• p£fll•pctsrs ,)t this parztgragtt~ '"payiflt~ ttuattti£if~s" trcatts ~Ittatttities stlt~licieat to y'ielc~ a I°etttz•~fl ifl) ;`Y(:lSS ()~ i7l){'i':ittt2?.,~ L'f)1£S; tl?~ is a ~,inctio'~tt~~ t{)t' t'edt•altitt:;; (d~'3 It~ts t)otQtiii~tl v;tltte is ,t ~?ct-s"ace ~~eli; +.) i• (t~) is toc:ited r~ti ,t ~)ttst ol- ~:,iiit'c;-4.tE ~v~it3a ",tL'£90`~ pt'{){£ti(1St,~,~ od' ~;Ct'YiC~ ~'4`°tt>; :lil,£ (_'.j £It~ {3~3c":t£t)3' ~ttdtfllit°ti tiles +~ointntssti)n's sat~4tac-ttort 7vi-~ tA~.' ~vclt shotaltl trot he ab~tndoltd, anct it~ tt~c, •~ ~'lt is in)t cotnptetect, wh~~ the well stt{fttid nr~t he t+.)tnple#ect; sut~~cient i-~asatts ilflcltfltle figs !.:'4.} ttn.tvalt~tt~itiiS {)t~ sut-f~tce i)t•o{?tt+_ti+±i3 ot• transoortatian t'acitities; . f l~# it.lt)t'LICie,Sti::'. of ~eCi.it'?% ijt<titt~!<itt{:~ ~~f <t completed smelt in a shut-in status; (C") need frt- pool delineation and evallzatiou to determine the prtldeuc;v of foot {led~etootnent. AOGA Specific Comments on Proposed Changes to 20 AAC 25.110, Suspended Wells February 28, 2008 Page 2 {f~j _~ia -~pplicatioia of`'iaairdi-~~ <+~f)p£•a)r':ils {Foi•an 10-~=#~.~;~1 ~ra£ast tic ~£~~n~itte3f t~) .end ~~ppi-f;r~ed ~~- the a::aia3,raiss~fl~a 1)ef~)r~~ ~lai`~;;as-~ opei•:iTit)iaS :a:'f' f)c~£aaa 'lit £ r1'eff f~a• rls~:fr susl~ensio.a is proposefl, eXCel~t #h~a# ~ra-,al ~appi•oval na:a~~ fie rc~f~iiested aaiadf=r 20 .'~.,~' ?;.~{;%(133. ~l'fae ~applic:ation n~afst iraclaidc 1? the re:asoia .aiafl sail)por#ing docaaaaaentatis)~a for saisl)eiasioia: ~'; rrclf bor€ afia<~r:aas)~ i1131str:atiii~ tlae caira•ent .aaad proposed rraef;h:aaaical confiaurntioiafi of tlae well; (3 j iuf`oa•ara:atioaa oaa ahaa{)r£;aa11~ ~eo- 1~3-esaar¢3~~' ~'tl=~plett`fi ')~rta*<a; • AOGA Comment: A decision to suspend a well may not necessarily be a change to an approved program, such as referenced in 20 AAC 25.507 (b). Providing for oral approval is appropriate. We recommend the reference to 25.507 be removed and specific language be included in this section such as found in 25.015(b)(2): "In cases where prompt approval is needed, oral approval may be requested from the commission; if oral approval is obtained from the commission, the name of the representative of the commission who provided oral approval and the date of the approval must be included on the Application for Sundry Approvals, which must be submitted within 3 days for final approval by the commission." i;~) .iii ~pl)lia::lti~:a i)f' °'!£iiiffi-~' <~;~ a •:r ~1~; i~oa'=.aa li)-~~)~) ~aaast he `S ii~}11~~$?`~? tt ;I i3C if3p~'f)refl ~)' the f:;):saiilis~~')3, i.e3i)£-; ~'J~ii~?~£da;~ d)~t',i':ac)t)iaS slrt I)t;?aiil :i 1 ,i%?~ far wlaicla saas~)e~asioaa is lrrcapc~g~°+~. In crase~ rvhe£•e prc)saapt apf~ro~:Eal t~ 5ii~~)e~if~ a wefl i~; iaeeff€d, or:ll ,alrl3ra)v<al ~ai:ay he reclaaested fro£aa she eo:aa~aais~ioia: if' oi•:al aippro~~:al is oht:~ii~efi f'rs)a~a tlae couaar3i~sif)ia. the ia:a~aae )f' tlae rppt•eseait~l=iwe f)f' the c£)~~~aaii~~sf)a) rr~lro pr~)r~iffe~f flr:tl ~f~f~ro~-;af ;:~atl taaf~ ~ira~~e a~ the :Ypf)ror~<al iiafat die i~acludeaf i~a the applic;at~io;a f'or Suiadrv ~pl~i-oval~, which ~a~aust be sa~hmitted within 3 davs t'or f3~aaf :~ppa'oval br~ tlae caaariijissioaa. ~,ae :apl)lic,~tit)ia iaaust iiaclaide d-f) a f.lesca•iption of the proposed rr~orl, pl.aaa inclaadiaag horn the in#e;;rity of existing and proposed plaa~s will he demonstrated: a~ntl evidence tl~.at call fresh rr~aater and hs-dfrocar•1~on resources flee protected. I t j t11~' ?'e:l`i<)az ailail '~a3ji~)i)r~'saA; ±l~ieaaa£at:aata~toia foi' saaspi:£asiofa; ~~' ir'ell 13o~e ~ili.a~1'ilaaiS IllI1S~ai~7i$',:,' ~aa t3Srxf:£at :iittl 1)rt3o>eSf !~€'f'.1:£iazaa coaata;;aia•:atioaas of the well; ~3i inf~)rn~<ation oar :alaiaoi•ira:all~> ~?o- pra;~saare; or fis~pletd stra#:;. ~:1} si desc:•il.)tiora of the propose<_! wxxr ~~i:ai9 1iaC~li~aiia~ i3f34r tilt' gi)4«~.:$•l~ {~i existing wand Proposed plan>s will Ire denlonsta•ated; and Page 2 AOGA Specific Comments on Proposed Changes to 20 AAC 25.110, Suspended Wells February 28, 2008 Page 3 le) ~~il i'tti~~{iroesal•t;<)lt-heari~;;, f`1•eshwater, ~tlaltal•tnafl~ i~c:o-pressitrecf a~I{i deplzttal itttervafs nailst ~~~ plunge{1 iIl aiial•c3atlce kvith file req~Iil'etxtettts of ~~ :~~~ 2.1 12X1(1), unless othertivise allth{}rizecl i}v rite eoitllttissioll. AOGA Comment: The reference 20 AAC 25.112(c)(1) is incomplete since it is specific to cased and perforated wells. The reference should be broadened to account for uncased sections of the well bore, such as the requirements of 20 AAC 25.112, minus the provisions of subsection (d). {~) £~-1{leii<'£ tita 1s1 ire'~11 ~~'<li~ i" :.._ IVall'{}Ca9'i}{}11 {'eS{}111`i'L'S ;Ire 1?1'~itECr".'. ~~) elf ll~{lrotal`}t}I~-1}~ 13-~~.: tt•csitsv~lt€:i•, ~~~Iao~•~t~.iild <~.'e~>-l~re~~:.;`~:s allfl cleplet~',i iltt~et•vafs ~ttl~;t he 12111=~,°~~ 111 :ICI{}I'{f~111a';' Lvltlt rile 1't.i~lilt'{'!ti 31:~ .:, 2tD ,~ ~~ ~,,. f f ~, exeel2t rite r,~~111it e~al,~l. 31illcss oth~~t~:vise atttitoriz.~{i h~, ._ t{DitdIttiSSl{}It. ~{f 1 ~11ttil ,i suspclltfe~ ~v~ell has t)et~tl ~l9~=utdollecl or re-entered, the. operatot• shall tlt:utlt.litl the ittte~;I•itz~ of the loc.ttion alttcl cle:lr the loc•atiott iII =accordance with 20 .~,~~ 2~.f'0{aj(2} or {b1 ar ~~ith 20 :~._~~' 2~.172(c}(2) oi- {cl), as applicable. {ej <_~ suspensions al2provetl ~~fter the ef'f'ecti~~e tfatlr of this sectiotl will 12e valid ~f`or Ito nlot•e titan f() ~%earS ol• until t1tc. 1"e;ISOit 'for <„~,r~atttn~ the si13penSiott tS n0 `lols~;er valid, wvhichever is earlier. d2eailthos"izations may be requested 12v the sssl2snissiolt of an ~.pplication foI• Sutlclry approvals cont:iiniitff rise n1fol'Itt~tlOIt r£i~illt'eCl III SIa12SeCttOlt AOGA has no comment. AOGA Comment: The phrase `until the reason for granting the suspension" is vague. There may be multiple reasons why a suspension was granted. If there are multiple reasons why a suspension was granted, is the suspension no longer valid if only one of those reasons is no longer valid? The smaller phrase "is no longer valid" is also problematic because of its subjective nature. Reasonable minds may differ regarding when a reason for suspension is "no longer valid." It is •~'l :~ silsllcltsion !i}pro~~{f If~tc;'• , ,t .~. ,. .:~1L'Cti'y/'i {l.lLZ' {}I this 3d'CTI{}=~ iV'i11 { _; ";11~;.§. ' .t}1` Ito 1t1o2•e tit 2111 ~~~ ~:,.::II•s. • .ItlatlflCt:ttli'}n f`ri3atl tit£ ~+''3,tltltsal)Ix 's'w •?}tte {}t" iltol'1;' of rite 1't:l9~l~~' `;:+s, •SitSl2ettlon Inzt+s tt{} loner ~){', L'a`13~1 ~}" ~{}lleratoa• nls n3~ ~l;l~'s t{) pl•es~ lit ,t ~ 13,11 ,2!{falress the 1,d~Illlllis3i13t:'s Cx;:~'i'.•`i'3xs, .iZeatltolizatxons Itt:1v l,£ recfile~;te~i i} .tire sui}tltissiolt of• <In X12;}licatiol i"~s Sillsdrz~ t~ppt-o~-als coFttaining rite infornt.ation rertuired ira sill2ses~tiots Page 3 AOGA Specific Comments on Proposed Changes to 20 AAC 25.110, Suspended Wells February 28, 2008 Page 4 important to be able to clearly identify when, for purposes of enforcement, the Commission considers a reason to be "no longer valid," such as a notice from the Commission. Without clear identification of when a reason is "no longer valid", operators risk being out of compliance with the regulation, even if they might otherwise have a reasonable basis to think that the reason for suspension is still valid. This proposed regulation would also result in an immediate violation, without an opportunity for the Operator to provide information to the Commission to demonstrate that the reason for suspension is still valid. (f) ,+'or <uav well saaspentied an or at'ter ties ei'fectiv~e €iate of dais sectioaa, the ope~•~ttor naaast iaaspect tine ~veli site vr~ithiaa 1? nau,aths of the €i.ttc of sa~apension. Stai~setia~e~at inspections waist be condaacteal w'it:hin Dees ti'ear of .fan€a~iry 1 ol'eve~•y year ending in 0 or ~. Each tune the operator uaspects the well site auatler this saahsectioaa, the operator ana€~st ~ix,~e the coi~naissio~a a migainau€n of teaa dae~s notice of inteaat to inspect ties ~i~eil site ~aaad provi€ie the opportunity for coraamission inspectors to accaaaapaaay the operator on the inspection toaar. AOGA Comment: The requirement for a suspended well inspection within 12 months could result in the Commission called to the site multiple times in the first year to witness setting and verifying the plug, site clearance and to satisfy this requirement. The ten day notice requirement will hamper efficient planning of field activities. The proposed Safety Valve System regulations require 48 hours notice of testing for remote locations, so we recommend changing the ten day notice to 48 hours. {~ c:',~~• ;t€~~- vweli sa~spe~~€1€:€1 oaa ;r• dtl'e€. the ell~ctas¢ clit€ of tiai~; :fec~ar~~a, tat3 opea'<ator naaast iaas;aect ties ,viii ,its vti°atta~n i' €no~~ths of the €a.ate of saaspee~sioaa. `~lak~se€taje:it ita3~3eCt:3~ €aagast he coax€~isCte€i vv-ithiaa Dias y;~yaa• prior ~~€- aat'ter ~aaaa.aa-w i of every ~~e~ar era€li~~ in 0 or ~, i;e__:iTanin~,; in Ztii~. Facia tines t3ae i)i'~l.'iatE31' i~aspects zili: ~Veii slt€' tlaati€3r tiai5 saihse€;ti~~», tine operator Ia3#,^,t ~;ie the cotnnalssio~a a miaai~nuaaz of 48 iao€ar ~aotice oi' intent to inspect the tiveil site and proF-ide the opport€3aaity for cosaamissioaa iaasi~ecto€•s to accompany the Page 4 AOGA Specific Comments on Proposed Changes to 20 AAC 25.110, Suspended Wells February 28, 2008 Page 5 Also, as currently written, wells suspended in 2008 or 2009 would require a subsequent inspection in 2010. Such immediate follow up inspections for newly suspended wells may be unnecessary. We recommend that the first cycle of five year inspections required by this section should begin in 2015.We are also recommending for some flexibility in inspections to allow for unpredictable conditions. {~) ,for ate>- well sttst)e~aded prior to the effz:ctie~e d,~te of this section, flee olae~-ato~• taattst i*.asl)cct flee ~e~itt site :at~sl re-al)ply for suspcincled states by flit; an Appticatiota for Sundry r'1.pprta~~als containing flee information rc~qui~-ed its subsection {b){1)-{5) :~s follows: { 1) 4~-itlain one ye~t• of flee effccti~~, date of this section for any- ave19 saaspet~ded priot• to Jat~~t,iry 1 2005; a~acl {2~ rdithin 5 years of the suspension date for any welt suspended on or after January 1, 2005 but before flee effective date of dais section. AOGA Comment: Most suspended wells in the state were suspended prior to 2005. The requirement for site inspection and re- application for suspended well status within the first year will require a significant effort by operators and by commission staff. Most sites are best visited in the summer year. Depending on when the regulations become effective, the planning and logistics required may be difficult during the first year. We recommend the 1 year period be extended to 2 years to allow efficient planning and adding a provision for an alternate schedule as authorized by the commission. There is no recognition of possible offshore suspended wells (25.105(c)). A provision should be added to allow continued suspended well status until there is action by the commission on the re- i9i'; :':at3)r t)at isas' ~t~.~t)t~'ix~);a t"i)t.t'. {:) l:i)r .i~~~ ~v~~>ll sttst)~Yttded 1)t'4or to tta~ ei'!'ccti¢~;e date of da#is sect-.ion, tlaz~ ii3)~';•:Ztoi' :ilit~i ':ta~1)~'~'.~ the i4'~~~ ~t1.$~, :l7ts.l r~•-apply t'ot' Silspt:ndid status by tilitt<,~ .tn :~.ppticatiota for 5u~adry :11)}aro~".ats. St~spendcal sta#.us will contita~te ~ttftil cot~)t~nission rpn~c.r decisiota. ~[`l~e ~t1)lalic~atio~~ ~i~ill ct)t~taita flee inti)rna.atiot~ t•ei~~ai.e~i i~t s~tt~~sc:ctio~a {b~{ t ;-{~~ :ts ta)tli)±s: { t j witlaita tai o ~ tars ol` tla~~ ~;fecti,'~k d<at~~ c)t• dais sectio~a t'ot- ~~a., ivc~tt ~L3s1)CSiileCl ~~'tt)r to >iFa3l'xtll#"~' i 2g~i15; and {_'; ~~'itlaitl ~~-~<€~-s t)f flee stta>pe~~siot~ t a%~ ti)t• alia}i ~V"~'.~~ ~iIS~3L'3?~~i' ~3ei t)d• afte~• Januna- 1, 2005 butt befc)re flee et~'ecti~-e date of dais section. Page, 5 AOGA Specific Comments on Proposed Changes to 20 AAC 25.110, Suspended Wells February 28, 2008 Page 6 {h) within 30 days a~ carry sued( site AOGA has no comment. inspection req!liri~d !lnifer' dais seeti~sla, t#~e operator must Bile a (deport of Sundry ~i~'ell Operations {l~orln 1(3-~i)~). ~~he report shalt incl!lde: { 1) a summary of any changes noted since the last report wars fiileil; (2} a plat shoaviug the loc~rtiorr of tdri~ suspended iv~ell and anm new wefts wi#hirr a one-quarter' (oils rrtdiirs o1' the wellbore; {3) ~~rell-head pr•essu!•e reailirr~s {~) a description of the condition o1' the well head and surface location, incluilin~~ arty fluid(s) or sheens{s} visil~de on the :;round or• in any surrounding w.rti:r; .ilicl {~} photographs ilearf~~ slio~~~irig lire well head and surrourrdina location, {i} df any criterion within this sectio!! is not or• ceases to he satisfied, the operator must plug and ab.indon the well in accordance with 20 ~~~ 25.1.12 and on a schedule approved by the carnnZission. AOGA Comment: 20 AAC 25.535 already allows the commission, in its discretion, to take enforcement action, including ordering corrective action or remedial work, against a person who has violated or failed to comply with a provision of AS 31.05 or Chapter 25 of Title 20 of the Alaska Administrative Code (including the requirements of 20 AAC 25.526). Also, 20 AAC 25.539 already Page 6 AOGA Specific Comments on Proposed Changes to 20 AAC 25.110, Suspended Wells February 28, 2008 Page 7 authorizes the commission to to issue a temporary emergency order without a hearing if necessary to protect against immediate harm to public health or safety. We believe the proposed regulation is unnecessary because it is duplicative of existing regulations, and because the proposed regulation lacks important due process safeguazds that are contained in the existing regulations. This section is unclear and subject to interpretation. Who will make this determination and when? The phrase "criterion" is vague. At a minimum, we would recommend replacing the word "criterion" with "requirement". The current. regulations contain specific reasons and criteria for the Commission to use when granting suspended well status. The proposed changes have lost clarity by removing those requirements and criteria. AOGA Comment: We suggest adding an administrative approval section to allow the commission to deal with special situations. AOGA Comment: The '~) ~t9e ~~»~araaassEa~ga^_~~~~ <i~l~~'~,~i~tratiac:ly al~lar~~~e, i~~ if~~: di5cr's~ti0n. ;1 vilrie~l~~ ~3•a~iTp t~ti~ ~";.'ilYtS;'~STI~'i~ ~~ tliiS S£a3~1€)t? ~~ ;:~~~ i.':li'3_~:a~L' ~):'rg4:e{~i~J ~d)Y' ~~ ~t';E:`i~ '"~t'''~ y~ :i ~f#'ect;`-e pl~,r,~~ing ot• ts~~ ~~~~11 a~~atl prev~nt:~n s~~ #3uii1 a~c~'F'a~~ea~t i~t~ oija•~~> ~t }~~~cl~•:~ce~~•bo~~s :~a• ~rsla,~~z~~~s•. €i) -~[ tie oper;~ts~~''S ret~taest Page 7 AOGA Specific Comments on Proposed Changes to 20 AAC 25.1 I0, Suspended Wells February 28, 2008 Page 8 regulations do not include the confidentiality protections contained in the current regulations 25.110(c). We strongly suggest that information concerning the completion of a well or considered a trade secret continue to have that protection. ii~~491':fi1:7~i4)il 541~3i31i~t~~~ i43 ~SEi3'=i' F ~ i;~. ~tl~pii4°a~I~3e critei-ia~ fi~~• ~~~dii ~;i~;~,pe~ai~.a~~ Eit34~C4' ti:1j 4~~ t:39S :54'614341 it<~1'E ~°e3t',''sl Iii: ~vi3i lie kept con~48e41.i~4i (1~ f4ar the ~ers434~ sl~ecili;41 u414~t]'.~.` 31.0~.t)slc), iI' the in~43r111<rti434~ i descrai3e~i i41 2{1 A ~C 2~.J i 1;:b j; 43r (2~ ftar the ti~11e t#1111 file i41f4~r414~~t~434= 111iS L'11~ue 11Sd t1'1~C~e Secret, 4I isi i41#'orr~~11ti4~r1 is nai described i41 `~¢) ~.~~ ?~.J ~ 1(b~ but is cieter111i41e4i i•,~~ %11€a conlnlissi~n t4~ c~l~stitute a trade 5e~4•~~ ~lnder ~S =t5.10.)~0. Page. 8 ,,_ AOGA Proposed Redline to AOGCC Regulation Changes to 20 AAC 25.110, Suspended Wells February 28, 2008 20 AAC 25.110 is repealed and readopted to read: 20 AAC 25.110. Suspended wells. (a) ~r~#e~:~-afaar~r)~r:~r}rer?t--i~+t}{r~d~~c'~~-?t?-,'~-~F-~?':~-~-t~~~31f allgwed under ~0_g/1_C__J5.10`,, an operator may apply to the commission under (b) of this section for suspension of a well. #~#'1P 9~£-'$-*3~43f: f{i#JSt ~f_'ifi-3b?H-,~±-r3~f'. ~C+ ~#~}ta f iaty.~.~•p{t4`-i~.-=##~5'is3t4~.4x3€=t~£3~)';`v~3~{;1:3i,-.;'if~#I s#~c*r;#tt-f~€~t ~_.- ;~b x~r=:#or~uci «,r-rca~:rt #~-#+~~f ThF c~in~rT}is~ior~ ~~er#I trf,r,r~_a~~#~lic-ttion_E~y tl~~_o#rc rator under (ka) of tfris section ap~r~wc~sthe suspension of a well_if ---- 1--- - -- - 1 the well ~Aj_~nc:ourtt_er~ l~y_c~#rocark~ans c_~# suffic_ic~rrt_cf~~ality ancl_y~iar~t~to indieat~ tl_rat the well is ca~~l~le of~~r^ociucjn~, in f~~vicif; car^3ntrires1 a:s re~s~nabl~ciertionstr~tecl by well tests or intersaret%v_e forrrration e~~aluati~t~_clatat_for t~ur~~osvs_of this par_,_a~rapki,"pa iy~ quantities" means quantities sufficient to YiE~l~l ~ rt:trrrn iri e,~coss of ot~eratir~costs; E3) is a candidate for redril#i _(C hits potential value as a service wr.;~II _~r -----LDS is located on a~acl or i~latforrr~ with active f~rUC~ucin~or service wells• and (_LLthe o~eratgr justifies to the c~~rrirrusic~n's satisfackion w#w the we#I_s#rould not be abandoned and if the well is not cornE~lEfied,, why_t.hE.> ~.vell should not be corn leted; _. .._~_.J.r__..__.__..~._ __.._~_.~__ .,.__, _ sufficient reasons include the ll unavailabil~ 01 surface ~rc>~uction or krans~ortation facilities; ~_ imprudence of security maintenance of a_corn_pleted well in a shut-in status; jC) need fo~ool delineation and evaluatio~i to determine ifie t~r.tadence of pool development. (b) An Application for Sundry approvals (Form 10-403) must be submitted to and approved by the commission before plugging operations are begun in a well for which suspension is proposed; ~~ee#.~t Page 1 AOGA Proposed Redline to AOGCC Regulation Changes to 20 AAC 25.110, Suspended Wells February 28, 2008 t~lr'}~-E3~ 3~ aji?T~r4~>d; {~-r~Sr?~ }}~E' 1'F.-F~t~~F?S~c>r~-#~HT "~~"i-`a t-3 ;'~~#{-fir r~ =;~'}. ~rl C~~3ti' --~~/~t 'E f.'_kiJr_Clfnpl_~1J~{~r Ovak iu sus end ~~ wE 11 rs rleeded, oral_<~~?k~rt,_v_-~I_rr~-ay_hr, rc'~luE stF ri-frc~rr~ tf_'ic-r UrnrTtr~>iorr, if Viral a;?}~roval~is _ _ __ obtained from the conuiii~sior~, thc- n~m~ ~,f_tk~e repre 5~r,t~tr,v~ rlf t11~,c~mr7~ission wf~~o~~r ovrd~d oral ~p royal and ~h_e d ~te_c~f tire ~pproual rr~rrst he included rrr tine apk_~Irc ati_Un fc~r a~,n~d~ A{1E,rov<~Ls,_which must be subr~~itted within 3 da_Ys for final ap~~raval by the_ec~n_imis7ion. The application must include (1) the reason and supporting documentation for suspension; (2) wellbore diagrams illustrating the current and proposed mechanical configurations of the well; (3) information on abnormally geo-pressured or depleted strata; (4) a description of the proposed work plan, including how the integrity of existing and proposed plugs will be demonstrated; and (5) evidence that all freshwater and hydrocarbon resources are protected. (c} All hydrocarbon-bearing, freshwater, abnormally geo-pressured and depleted intervals must be plugged in accordance with the requirements of 20 AAC 25.112~~{-1};~, except the reguirements of 20 AAC 25.112 (d) do not ap1~~ unless otherwise authorized by the commission. (d) Until a suspended well has been abandoned or re-entered, the operator shall maintain the integrity of the location and clear the location in accordance with 20 AAC 25.170(a)(2) or (b) or with 20 AAC 25.172(c)(2) or (d), as applicable. (e) A suspension approved after the effective date of this section will be valid for no more than 10years_Ut~on n~tificntioi~-from the Coninussron that orie ~r-rnnr_c of the reas~r75 for s~~~k~ensror~ n ay no loner be valid tt'ie_ o~rator~ has 60 d~3~s_to prc~=er~t a Man to addross tho ComrY~ission's concerns.-~3~x~ ~rr~til-t{~~-re:3 er}#tizr ~#ar~~r-i~-tk}ca-s~~p~-+s+~r~~i~-1~3r~~r-~ficl;-~~+~-#3ev~-~J~-ar-1i~~~. Reauthorizations Page 2 AOGA Proposed Redline to AOGCC Regulation Changes to 20 AAC 25.110, .Suspended Wells February 28, 2008 may be requested by the submission of an Application for Sundry Approvals containing the information required in subsection (b}(1)-(5). (f) For any well suspended on or after the effective date of this section, the operator must inspect the well site within 12 months of the date of suspension. Subsequent inspections must be conducted within one year pr igi~_or after c~# January 1 of every year ending in 0 or 5,_t~e~ini~ir~i;_irr I_t):1.>.- Each time the operator inspects the well site under this subsection, the operator must give the commission a minimum of t-e~{~ays~l8 I ipur notice of intent to inspect the well site and provide the _ - opportunity for commission inspectors to accompany the operator on the inspection tour. (g) For any well suspended prior to the effective date of this section, the operator must inspect the well site and reapply for suspended status by filing an Application for Sundry Approvals__ _;>us~encied status will c~~ntinue unlil_comrniss~on rericlers_d~cisi~n _Th~_~hl.~lcati~,ri will_~containir~gthe information required in subsection (b)(1)-(5) as follows: (1) within one-iwo__.years of the effective date of this section for any well suspended prior to January 1, 2005; and (2) within five years of the suspension date for any well suspended on or after January 1, 2005 but before the effective date of this section. (h) Within 30 days of any well site inspection required under this section, the operator must file a Report of Sundry Well Operations (Form 10-404). The report shall include: (1) a summary of any changes noted since the last report was filed; (2) a plat showing the location of the suspended well and any new wells within a one- quarter mile radius of the wellbore; (3) well-head pressure readings; Page 3 AOGA Proposed Redline to AOGCC Regulation Changes to 20 AAC 25.110, Suspended Wells February 28, 2008 (4) a description of the condition of the well head and surface location, including any fluids(s) or sheens) visible on the ground or in any surrounding water; and (S) photographs clearly showing the well head and the surrounding location. {I) ~~-;?I.#.u-fi#f~'f#£?#1-k'~'it~7#3#-~f1hS-S~ifittf'}~t~~'c-A~-cs:?;~s>f'r,}ti.~:;~.~_r,,3:~is.~ia¢~.i~#Q_~-~~~i~a}.t3#=-t~3s}~.-f?If.3.};-:}.r1£~ c1t-?nl#3k~{.`f# 1.~1t~ ^?:E'.-f}±#? ,3E-r.:~-3f~-~;?f34='.r a,~' 4f:~.y ~:.{a ~ tiL_ ~=_.~-~-sj.r~F~ai 4.;## ) (jd~:~3~.3' ~ :1~2j.4+3?~6::iy ~sq:.{.~1^ ~:; i23;;t1.~::3a:.#..I ~li_TIl(' 0017#n#ISSIOnr1}c#~(.ddrrlll}IStrdtlVE?~i#~]fJIC)V('~ Irl Its (~IS(r~ ~IClll a V~1r1711CE ~rUli1 tI1C'. ___..._.. _ --,.1 _------_-- recLulrr'r~~ent ~rf tl_~is s~~_tton It tt~e__~ ~rlar3r~_LrrwidE s__(~~r ~! I~~"t c'gu ~II~,~ r'ff£ Cii~iE._t~lut>~i_ntt ref ilia. well and preventi_c~n cif fl(tic~ rr oy_emeti _inta xai,lr~£~s._~f I#~dre_x.:arl~e,ns r~r freshvs at(:yr. (j~/~t the operator`s request ac:cornia~~nyln~,tl» uf~rnl7~ion~ information. Suhr~#itted_to show that th~~f~iicat~le criteria far ~reil sus~~~n_ ior~ (racier f alof tlars sc~c trc~n hav(~ f~~?en rTir=t will !?e I_Ppt confidential jl~_fvr the~?errud.st~ecfreci ur#rier_l~S 31 (?~_[~3`~(c)~_1f the= inform ~tlon_i_~ desc_rik~ed in 2O l~AC_25_C)71-jb);_~r Z for the tune th<#t tl3e information his ~~alue ,~s ~ t_r~ciE~~._secret,._ if the information is not t- -------___. described in_20 ABC 25.O~I ljh)„_k~tit Is deterlrrir~ed k~y_the c~~ninal~sion tc~ c~~nstitute a trade secret under !~S 45.50.940. Page 4 ~~ STATE OF ALASKA ~ NOTICE TO PUBLISHER ~ ADVERTISING ORDER NO. ADVERTISING INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED A O_02814037 AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF /'1 ORDER ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE F AOGCC R 333 W 7th Ave, Ste 100 ° Anchorage, AK 99501 M 907-793-1238 o Anchorage Daily News PO Box 149001 Anchorage, AK 99514 PHONE CONTACT ~ DATE OF A.O. 171//1 /77-1GG1 DATES ADVERTISEMENT REQUIRED: January 4, 2008 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: Advertisement to be published was e-mailed Type of Advertisement Legal® ^ Display Classified ^Other (Specify) SEE ATTACHED SEND INVOICE IN TRIPLICATE AOGCC, 333 W. 7th Ave., Suite 100 TO Anchora e AK 99501 REF TYPE NUMBER AMOUNT 1 VEN z ARD 02910 FIN AMOUNT SY CC PGM ~ 08 02140100 2 REQUISITIONED BY: PAGE 1 OF TOTAL OF 2 PAGES ALL PAGES$ COMMENTS DATE LC ACCT FY NMR oisr 73451 DIVISION APPROVAL: 02-902 (Rev. 3/94) Publisher/Original Copies: Department Fiscal, Department, Receiving AO.FRM STATE OF ALASKA THIRD NOTICE OF PROPOSED CHANGES IN THE REGULATIONS OF THE ALASKA OIL AND GAS CONSERVATION COMMISSION The Alaska Oil and Gas Conservation Commission ("AOGCC") proposes to amend Title 20, Chapter 25, Section 110 of the Alaska Administrative Code, dealing with suspended wells, including the following: The proposed regulations changes referenced above clarify what is expected of operators with respect to the surveillance, maintenance, and reporting requirements for suspended wells throughout the State. For a copy of the proposed changes, contact Jody Colombie at the AOGCC (333 W. 7cn Avenue, Suite 100, Anchorage, Alaska 99501, 907-793-1221) or visit the AOGCC Web site at http://www.ao~cc.alaska.gov. Written comments on the proposed changes can be submitted to the AOGCC. They must be received no later than 4:30 p.m. on February 5, 2008. The Commission is vacating the January 15, 2008 hearing and has tentatively rescheduled public hearing on this proposed action for February 28, 2008. The hearing will begin at 9:00 a.m. and might be extended to accommodate those present before 9:30 a.m. who did not have an opportunity to comment. Oral and written comments may be submitted at the hearing. If, because of a disability, you need a special accommodation to submit comments or attend the hearing, contact Jody Colombie by 12:00 p.m. on February 25, 2008, to ensure that any necessary, reasonable accommodations can be provided. After the public comment period ends, the AOGCC will adopt, without further notice, the proposed or other changes to the suspended wells regulations or take no action. The language of the final regulations may be different from that of the proposed regulations. YOU SHOULD COMMENT DURING THE TIME ALLOWED IF YOUR INTERESTS COULD BE AFFECTED. Written and oral comments are public records, subject to public disclosure. Statutory Authority: AS 31.05.030. Subject Statutes: AS 31.05.030. Fiscal Information: The proposed changes are not expected to require an increased appropriation. Date: January 2, 2008 Daniel T. Seamou , Jr. Alaska Oil and Gas Conservation Commission ~I ADDITIONAL REGULATIONS NOTICE INFORMATION (AS 44.62.190(d)) 1. Adopting agency: Alaska Oil and Gas Conservation Commission. 2. General subject of regulations: suspended wells. 3. Citation of regulations: 20 AAC 25.110. 4. Reason for the proposed action: clarification of regulatory requirements. 5. RDU/component affected: Alaska Oil and Gas Conservation Commission. 6. Cost of implementation to the state agency: zero. 7. Contact person for the regulations: Name: John K. Norman Title: Chairman Address: 333 W. 7t" Avenue, Suite 100, Anchorage, AK 99501 Telephone: (907) 793-1221 E-mail: jody.colombie@alaska.gov 8. Origin of the proposed action: Alaska Oil and Gas Conservation Commission staff. 9. Date: January 2, 2008. 10. Prepared by: ~_... ~ Jod . Col m ie Special Assistant Alaska Oil and Gas Conservation Commission (907) 793-1221 Anchorage Daily News 1/4i2a)8 Affidavit of Publication 1001 Norrhway Drive, Anchorage, AK 99508 PRICE OTHER OTHER OTHER OTHER OTHER GRAND AD # DATE I'O ACCOUNT PER DAY CHARGES CHARGES ff2 CHARGES #3 CHARGES #4 CHARGES #5 TOTAL 406109 01/04/2008 02814037 STOF0330 $408.36 $408.36 $0.00 $0.00 $0.00 $0.00 $0.00 $408.36 STATE OF ALASKA THIRD JUDICIAL DISTRICT Angelina Benjamin, being first duly sworn on oath deposes and says that she Js an advertising representative of the Anchorage Daily News, a daily newspaper. That said newspaper has been approved by the Third Judicial Court, Anchorage, Alaska, and it now and has been published in the English language continually as a daily newspaper in Anchorage, Alaska, and it is now and during all said tirrte was printed in an office maintained at the aforesaid place of publication of said newspaper. That the annexed is a copy of an advertisement as it was published in regular issues (and not in supplemental form) of said newspaper on the above dates and that such newspaper was regularly distributed to its subscribers during all of said period. That the full amount of the fee charged for the foregoing publication is not in excess of the rate charged private individuals. Signed ' - ~~~~~P~_'. Subscribed and .sworn to me before this date: Notary Public in and for the State of Alaska. Third Division. Anchorage, Alaska MY COMMISSION E L! t~f r e r ~ ~,{~® . ~®TAI~ y g ... --- ,,, .~ .. ~'!~ J ~ 1 ~ ®-.~~t, ..)~.) $ ~~ f +~a, , STATE OF ALASKA TNDiO N01ICE OF PROPOSED CHANG&4IN THE RHGULATIONSOF THH ALASKA OH,AND GAS CONSERVATION COMMISSION fie Alaska Oil and Gas Conservation Commission ("AOGCC") proposes to amend Title 20, Chapter 25, Section 110pf the Alaska Administrative Code, dealing with suspended wells, including the following: The proposed. regulations changes referenced above clarify what is expected. of operators with respect to the surve(Ilance, maintenance, and reporting requirements for suspended wells throughout the. State.. , For a copy of the proposed changes, contact Jody Colomtiie at the AOGCC (333 w. 7th Avenue; Suite 100, Anchoraagge; Alaska 99501, 907-793-1221) Or visit the AOGCC Web site at httoJ/www.aoerc.a~aska.QOV. Written commentson the proposed changes can tie submitted to the AOGCC. They .must be received no later an 4:30 p.m. on February 5, 2008. The Commission is vacating the January 15,•2008 hearinS and has tentatively rescheduled public hearing on this proposed action for. February 28, 2008. The hearing will begin at 9:00 a.m: and might be extended to accommodate those present before 9:30 a.m. who did not have an oppgrtunityto comment. Oral and written comments maybe submitted at the hearing. If; because of a disability, you need a special accommodation to submit comments w attend the hearing, contact Jody ColornWe by 12:00 p.m. on February 25, 2008, to ensure that anyriecessary; reasonaole accommodations can be providecF. After the public comment period ends, the AOGCC will adopt, without Tnrther notice, the proposed or other changes to the suspended wells regulations or take no action. ' The. language of the final regulations may be different from that of ttte proposed reSUlaUOns. YOU SHOULD COMMENT DURINGTHE TIME ALLOWED IF YOUR INTERESTS COULD BE AFFECTED. Written and Oral comments are publicrecOrds, subject to publi0disclosure. StatutoryAuthority; AS 31:05.030. Subject Statutes: AS 31.05.030. ! Fiscallnforwatlon: The proposed changes are not expected to require an increased approprration. !i Date: January 2,.2008 Daniel T. Seamount, Jr. Alaska Oil and Gas Conservation Commission __ ,.<» ADDITIONAL REGULATIONS NOTICE INFORMATION. (AS 44.62.190(d)) 1: Adopting agency: `Alaska Oil and Gas Conservation Commission.' 2: General subject of reputations: suspended wells. 3. Citation of regulations; 20 AAC 25.110. 4. Reason for the proposed action:: clarification of regulatory requirements. 5. RDU/component affected: Alaska Oil and Gas Conservation Commission. 6. Cost of implementation to the state agency: zero: 7: Contact person fortileYegulations: Name: John K. Norman Title: .Chairman Address: 333 W. 7th Avenue, Suite 100, Anchorage, Als 99501 Telephone: (907)793-1221 E-mail jody;colombie~alaska:gov 8.`" Origin of the proposed action: Alaska Oif and Gas Conservation Commission staff. 9. Date: January 2, 2008. 10. ` Prepared by: Jody 1. Colombia speclat Assistant Alaska Oil and Gas Conservation Commission (907) 793-1221 A0-02814037 Published: January 4, 2008 ~~ r .~ ADVERTISING INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED /~ 0_02814037 ` ORDER AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF 1 / ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE SEE BOTTOM FOR INVOICE ADDRESS F AOGCC AGENCY CONTACT DATE OF A.O. R 333 West 7~' Avenue Suite 100 ° . Anch~rage_ AK 99501 PHONE PCN M 907-793-1238 - DATES ADVERTISEMENT REQUIRED: o Anchorage Daily News January 4, 2008 PO Box 149001 Arichora e AK 99514 g THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN Y ON THE DATES SHOWN S E ~ . IT NTIRET SPECIAL INSTRUCTIONS: Account # STOF0330 AFFIDAVIT OF PUBLICATION United states of America REMINDER State of ss INVOICE MUST BE IN TRIPLICATE AND MUST REFERENCE THE ADVERTISING ORDER NUMBER. division. A CERTIFIED COPY OF THIS AFFIDAVIT OF PUBLICATION MUST BE SUBMITTED WITH THE INVOICE. Before me, the undersigned, a notary public this day personally appeared ATTACH PROOF OF PUBLICATION HERE. who, being first duly sworn, according to law, says that he/she is the of Published at in said division and state of and that the advertisement, of which the annexed is a true copy, was published in said publication on the day of 2007, and thereafter for consecutive days, the last publication appearing on the day of , 2007, and that the rate charged thereon is not in excess of the rate charged private individuals. Subscribed and sworn to before me This _ day of 2007, Notary public for state of My commission expires Sweets Colombie, Jody J (DOA) From: Ads, Legal [legalads@adn.com] Sent: Wednesday, January 02, 2008 4:55 PM To: Colombie, Jody J (DOA) Subject: RE: Public Notice Page 1 of 2 Attachments: Public Notice; 00, ADN Changes.doc; STOF0330 - Preview.pdf; STOF0330 - Verification.pdf Following is the confirmation on your legal notice. Please fully review all attachments and let me know if there are any changes. And, please let me know if you have any questions or need additional information. Payments maybe made by phone with a credit card, by mail with a check, or in person at the ADN. AFFIDAVITS WILL BE MAILED OUT APPROXIMATELY 10 BUSINESS DAYS AFTER THE LAST DATE OF PUBLICATION. PLEASE KEEP THE FOLLOWING INFORMATION AS IT WILL QUICKLY ASSIST IN THE CASE THIS AD NEEDS TO BE PULLED UP IN THE FUTURE. Account Number: Legal Ad Number: Classification: Size of Ad (columns x inches) Publication Date(s): Your AO/ PO/ Reference Number: Total Cost of Legal Notice: STOF0330 406109 Rules & Regulations (9100) 3 x 6.90 January 4, 2008 02814037 $408.36 I have attached a Word document explaining changes to come with the Anchorage Daily News that will take effect as of January 6, 2008. Angelina Benjamin Classified Legal Specialist ~ Anchorage Daily News 1/3/2008 Sweets ~ ~ Page 2 of 2 Direct: 907-257-4296 ~ Fax: 907-279-8170 ABenjamin@adn.com ~ 1001 Northway Drive ~ Anchorage, AK 99508 ~1.ncho~agc Daily i~Tcws Anchorage Daily News products reach more than 300,000 Alaskans every week. Visit us at adn.com and Alaska.com Email legal ads to legala~ts@adn.corn; Viezv legal ads at hatp•llzuwzo egalnotice.orglyl/ar(n/landmgl. asyx 'sw:LiYi...aaen:+z~_m~l.-"-_~!'-~ •_ c--`~ -~c~.~.r-~-..A.~•~,-~~.._..~""°,,,.._~.--^--~~?_.-~.+~_,.,~e.w~' -.3 1/3/2008 Page 1 of 1 Colombie, Jody J (DOA) From: Colombie, Jody J (DOA) Sent: Thursday, January 03, 2008 3:25 PM Subject: Third Notice, Additional Regulations Notice Information and Regulation of 1-3-08 Attachments: Third Notice, Additional Info and Regulation 1-3-08.pdf BCC:McIver, C (DOA); 'Alan Birnbaum <""Alan J Birnbaum "> (alan.birnbaum@alaska.gov)'; 'Aleutians East Borough'; 'Anna Raff ; Arion, Teri A (DNR); 'Arthur C Saltmarsh'; 'Arthur Copoulos'; 'Barbara. F Fullmer'; 'bbritch'; 'Bill Walker'; 'Brad McKim'; 'Brandon Gagnon'; 'Brian Gillespie'; 'Brian Havelock'; 'Brit Lively'; 'Bruce Webb'; 'buonoje'; 'Cammy Taylor'; 'Cande.Brandow'; 'carol smyth'; 'Cary Carrigan'; 'Catherine P Foerster ; caunderwood@marathonoil.com; 'Charles O'Donnell'; 'Chris Gay'; 'Christian Gou-Leonhardt'; 'Cliff Posey'; 'Dan Bross`; 'dapa'; 'Daryl J. Kleppin ; 'David L Boelens'; 'David Steingreaber'; 'ddonkel'; 'Deanna Gamble'; 'Deborah J. Jones'; 'doug_schultze'; 'Evan Harness'; 'eyancy'; 'foms2@mtaonline.net'; 'Francis S. Sommer'; 'Fred Steece'; 'Garland Robinson'; 'Gary Laughlin'; 'Gary Rogers'; 'Gary Schultz'; 'ghammons'; 'Gordon Pospisil'; 'Gregg Nady'; 'gregory micallef; 'gspfoff; 'Hank Alford'; 'Harry Engel'; 'jah'; 'James B Regg'; 'James M. Ruud'; 'James Scherr'; 'Janet D. Platt'; 'jdarlington'; 'jejones'; 'Jerry McCutcheon'; 'Jim White'; 'Jim Winegarner'; 'Joe Nicks'; 'John Garing ; 'John S. Haworth'; 'John Spain'; 'John Tower'; 'John W Katz'; johnny.aiken@north-slope.org; 'Jon Goltz'; 'Julie Houle'; 'Kari Moriarty'; 'Kaynell Zeman'; 'Keith Wiles'; knelson@petroleumnews.com; 'Kristin Dirks'; 'Laura Silliphant'; 'Lois'; 'Lynnda Kahn'; 'mail=akpratts@acsalaska.net'; 'mail=Crockett@aoga.org'; 'mail=fours@mtaoniine.net ; 'Mark Dalton'; 'Mark Hanley'; 'Mark Kovac'; 'Mark P. Worcester'; 'Marguerite kremer'; 'marty'r 'Matt Rader'; 'mckay'; 'Meghan Powell'; 'Mike Bill'; 'Mike Mason'; 'Mikel Schultz'; 'Mindy Lewis'; 'MJ Loveland'; 'mjnelson'; 'mkm7200'; 'Nick W. Glover'; NSU, ADW Well Integrity Engineer; 'Patty Alfaro'; 'Paul Decker'; 'Paul Winslow'; Pierce, Sandra M (DNR); 'Randall Kanady'; 'Randy L. Skillern'; 'rcrotty'; Rice, Cody J (DNR); 'rmclean'; rob.g.dragnich@exxonmobil.com; 'Robert Campbell'; 'Robert Province'; 'Roger Belman'; 'Rudy Brueggeman'; 'Scott Cranswick'; 'Shannon Donnelly'; 'Sharmaine Copeland'; 'Sondra Stewman'; 'Sonja Frankllin'; 'stanekj'; 'Stephen F Davies'; 'Steve Lambert'; 'Steve Moothart'; 'Steven R. Rossberg'; 'tablerk'; 'Tamera Sheffield'; 'Temple Davidson'; 'Terrie Hubble'; 'Thomas E Maunder'; 'Tim Lawlor'; 'Todd Durkee'; 'trmjrl'; 'Walter Featherly'; 'Walter Quay'; 'Wayne Rancier' Attachments:Third Notice, Additional Info and Regulation 1-3-08.pdf; 1/3/2008 . • Page 1 of 1 Colombie, Jody J (DOA) From: Colombie, Jody J (DOA) Sent: Thursday, January 03, 2008 3:46 PM To: Buch, Bob (LAA); Bunde, Con (LAA); Chenault, Mike (LAA); Cissna, Sharon (LAA); Coghill, John (LAA); Cowdery, John (LAA); Crawford, Harry (LAA); Dahlstrom, Nancy (LAA); Davis, Bettye J (LAA); Doll, Andrea (LAA); Doogan, Mike (LAA); Dyson, Fred (LAA); Edgmon, Bryce E (LAA); Ellis, Johnny (LAA); Elton, Kim S (LAA); Fairclough, Anna (LAA); 'Foster, Richard'; French, Hollis (LAA); Gara, Les (LAA); Gardner, Berta (LAA); Gatto, Carl (LAA); Green, Lyda N (LAA); Gruenberg, Max F (LAA); Guttenberg, David (LAA); Harris, John (LAA); Hawker, Mike (LAA); Hoffman, Lyman F (LAA); Holmes, Lindsey (LAA); Huggins, Charlie (LAA); Johansen, Kyle B (LAA); Johnson, Craig W (LAA); Joule, Reggie (LAA); Kawasaki, Scott Jw (LAA); Keller, Wes (LAA); Kelly, Mike (LAA); Kerttula, Beth (LAA); Kookesh, Albert (LAA); Ledoux, Gabrielle R (LAA); Lynn, Bob (LAA); McGuire, Lesil L (LAA); Meyer, Kevin G (LAA); Nelson, Mary (LAA); Neuman, Mark A (LAA); Olson, Donny (LAA); Olson, Kurt E (LAA); Ramras, Jay B (LAA); Roses, Bob (LAA); Salmon, Woodie W (LAA); Samuels, Ralph (LAA); Seaton, Paul (LAA); Stedman, Bert K (LAA); Stevens, Gary L (LAA); Stoltze, Bill (LAA); Therriault, Gene (LAA); Thomas, Bill (LAA); Thomas, Joe (LAA); Wagoner, Tom (LAA); Wielechowski, Bill (LAA); Wilken, Gary R (LAA); Wilson, Peggy A (LAA) Subject: Third Notice, Additional Regulations Notice Information, Regulation 1-3-08 Attachments: Third Notice, Additional Info and Regulation 1-3-08.pdf BCC:Beecher, Carol L (DOA) Attachments:Third Notice, Additional Info and Regulation 1-3-08.pdf; 1/3/2008 SERVICE LIST FOR PROPOSED AMENDMENTS TO 20 AAC 25.110 On January 4, 2008, the amended public notice of proposed amendments to 20 AAC 25.110, Additional Regulations Notice Information, and proposed regulation were mailed to: Annette Kreitzer Commissioner Department of Administration PO Box 110200 Juneau, AK 99811 Legislative Reference Library Legislative Affairs Agency State Capitol Juneau, AK 99801 Mail Stop: 3101 Senator Charlie Huggins, Chair Senate Resources State Capitol Juneau, Alaska 99801 Representative Kurt Olson, Chair House Oil & Gas Special Committee State Capitol Juneau, Alaska 99801 Senator Lesil McGuire, Chair Administrative Regulation Review State Capitol Juneau, Alaska 99801 Senator John Cowdery, Chair Legislative Council State Capitol Juneau, Alaska 99801 On January 4, 2008, the amended public notice of proposed amendments to 20 AAC 25.110, Additional Regulations Notice Information, and proposed regulation were mailed to: Debra Behr Chief Assistant Attorney General Legislation and Regulations Section Department of Law PO Box 110300 Juneau, AK 99811 • Mary Jones David McCaleb Cindi Walker XTO Energy, Inc. IHS Energy Group Tesoro Refining and Marketing Co. Cartography GEPS Supply & Distribution 810 Houston Street, Ste 2000 5333 Westheimer, Ste 100 300 Concord Plaza Drive Ft. Worth, TX 76102-6298 Houston, TX 77056 San Antonio, TX 78216 George Vaught, Jr. Jerry Hodgden Richard Neahring PO Box 13557 Hodgden Oil Company NRG Associates Denver, CO 80201-3557 408 18th Street President Golden, CO 80401-2433 PO Box 1655 Colorado Springs, CO 80901 John Levorsen Michael Parks Mark Wedman 200 North 3rd Street, #1202 Marple's Business Newsletter Halliburton Boise, ID 83702 117 West Mercer St, Ste 200 6900 Arctic Blvd. Seattle, WA 98119-3960 Anchorage, AK 99502 Baker Oil Tools Schlumberger Ciri 4730 Business Park Blvd., #44 Drilling and Measurements Land Department Anchorage, AK 99503 2525 Gambell Street #400 PO Box 93330 Anchorage, AK 99503 Anchorage, AK 99503 Ivan Gillian Jill Schneider Gordon Severson 9649 Musket Bell Cr.#5 US Geological Survey 3201 Westmar Cr. Anchorage, AK 99507 4200 University Dr. Anchorage, AK 99508-4336 Anchorage, AK 99508 Jack Hakkila Darwin Waldsmith James Gibbs PO Box 190083 PO Box 39309 PO Box 1597 Anchorage, AK 99519 Ninilchick, AK 99639 Soldotna, AK 99669 Kenai National Wildlife Refuge Penny Vadla Richard Wagner Refuge Manager 399 West Riverview Avenue PO Box 60868 PO Box 2139 Soldotna, AK 99669-7714 Fairbanks, AK 99706 Soldotna, AK 99669-2139 Cliff Burglin Bernie Karl North Slope Borough PO Box 70131 K&K Recycling Inc. PO Box 69 Fairbanks, AK 99707 PO Box 58055 Barrow, AK 99723 Fairbanks, AK 99711 Williams Thomas Arctic Slo a Re Tonal Cor oration ~~ P 9 P Land Department PO Box 129 ~ Barrow, AK 99723 ~l ~~ ~ nl~ Register ~0_ MISCELLANEOUS~ARDS Revision Date: 1/3/2008 20 AAC 25.110 is repealed and readopted to read: 20 AAC 25.110. Suspended wells. (a) Unless abandonment is required under 20 AAC 25.105, an operator may apply to the commission under (b) of this section for suspension of a well. The operator must demonstrate to the commission's satisfaction why the well should not be abandoned or completed. (b) An Application for Sundry Approvals (Form 10-403) must be submitted to and approved by the commission before plugging operations are begun in a well for which suspension is proposed, except that oral approval may be requested under 20 AAC 25.507(b). The application must include (1) the reason and supporting documentation for suspension; (2) wellbore diagrams illustrating the current and proposed mechanical configurations of the well; (3) information on abnormally geo-pressured or depleted strata; (4) a description of the proposed work plan, including how the integrity of existing and proposed plugs will be demonstrated; and (5) evidence that all freshwater and hydrocarbon resources are protected. (c) All hydrocarbon-bearing, freshwater, abnormally geo-pressured and depleted intervals must be plugged in accordance with the requirements of 20 AAC 25.112(c)(1), unless otherwise authorized by the commission. (d) Until a suspended well has been abandoned or re-entered, the operator shall maintain the integrity of the location and clear the location in accordance with 20 AAC 25.170(a)(2) or (b) or with 20 AAC 25.172(c)(2) or (d), as applicable. (e) A suspension approved after the effective date of this section will be valid for no more than 10 years or until the reason for granting the suspension is no longer valid, whichever is earlier. Reauthorizations may be requested by the submission of an Application for Sundry Approvals containing the information required in subsection (b)(1)-(5). (f) For any well suspended on or after the effective date of this section, the operator must inspect the well site within 12 months of the date of suspension. Subsequent inspections must be conducted Register ~0_ MISCELLANEOUS~ARDS Revision Date: 1/3/2008 within one year of January 1 of every year ending in 0 or 5. Each time the operator inspects the well site under this subsection, the operator must give the commission a minimum of ten days notice of intent to inspect the well site and provide the opportunity for commission inspectors to accompany the operator on the inspection tour. (g) For any well suspended prior to the effective date of this section, the operator must inspect the well site and reapply for suspended status by filing an Application for Sundry Approvals containing the information required in subsection (b}(1)-(5) as follows: (1) within one year of the effective date of this section for any well suspended prior to January 1, 2005; and (2) within five years of the suspension date for any well suspended on or after January 1, 2005 but before the effective date of this section. (h) Within 30 days of any well site inspection required under this section, the operator must file a Report of Sundry Well Operations (Form 10-404). The report shall include: (1) a summary of any changes noted since the last report was filed; (2) a plat showing the location of the suspended well and any new wells within a one- quarter mile radius of the wellbore; (3) well-head pressure readings; (4) a description of the condition of the well head and surface location, including any fluids(s) or sheens) visible on the ground or in any surrounding water; and (5) photographs clearly showing the well head and the surrounding location. (i) If any criterion within this section is not or ceases to be satisfied, the operator must plug and abandon the well in accordance with 20 AAC 25.112 and on a schedule approved by the commission. History: Eff: 4/2/86, Register 97; am 11/7/99, Register 152; am / / ,Register ) Authority: AS 31.05.030 ~5 STATE OF ALASKA ADVERTISING ORDER '" SEE BOTTOM FOR INVOICE ADDRESS F AOGCC R 333 W 7th Ave, Ste 100 ° Anchorage, AK 99501 M 907-793-1238 AGENCY CONTACT DATE OF A.O. Jod Colombie November PHONE PCN REQUIRED: o Anchorage Daily News PO Box 149001 Anchorage, AK 99514 November 30, 2007 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: Advertisement to be published was e-mailed Type of Advertisement Legal® ^ Display Classified ^Other (Specify) SEE ATTACHED SENDINVOICE IN TRIPLICATE AOGCC, 333 W. 7th Ave., Suite 100 TO Anchora e AK 99501 REF TYPE NUMBER AMOUNT 1 VEN 2 ARn 02910 FIN AMOUNT SY CC PGM ~ 08 02140100 z REQUISITIONED ~Y: „ / ~~ DATE PAGE 1 OF TOTAL OF 2 PAGES ALL PAGES$ COMMENTS LC ACCT FY NMR DIST 73451 DIVISION APPROVAL: 02-902 (Rev. 3/94 Publisher/Original Copies: Department Fiscal, Department, Receiving NOTICE TO PUBLISHER ~ ADVERTISING ORDER NO. INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED A 0-02814026 AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF /`1 ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE AO.FRM • STATE OF ALASKA AMENDED NOTICE OF PROPOSED CHANGES IN THE REGULATIONS OF THE ALASKA OIL AND GAS CONSERVATION COMMISSION The Alaska Oil and Gas Conservation Commission ("AOGCC") proposes to amend Title 20, Chapter 25, Section 110 of the Alaska Administrative Code, dealing with suspended wells, including the following: The proposed regulations changes referenced above clarify what is expected of operators with respect to the surveillance, maintenance, and reporting requirements for suspended wells throughout the State. For a copy of the proposed changes, contact Jody Colombie at the AOGCC (333 W. 7cn Avenue, Suite 100, Anchorage, Alaska 99501, 907-793-1221) or visit the AOGCC Web site at http://www.aogcc.alaska.gov. Written comments on the proposed changes can be submitted to the AOGCC. They must be received no later than 4:30 p.m. on January 8, 2008. A public hearing on the proposed changes will be held on January 15, 2008, at the AOGCC. The hearing will begin at 9:00 a.m. and might be extended to accommodate those present before 9:30 a.m. who did not have an opportunity to comment. Oral and written comments may be submitted at the hearing. If, because of a disability, you need a special accommodation to submit comments or attend the hearing, contact Jody Colombie by 12:00 p.m. on January 10, 2008, to ensure that any necessary, reasonable accommodations can be provided. After the public comment period ends, the AOGCC will adopt, without further notice, the proposed or other changes to the suspended wells regulations or take no action. The language of the final regulations may be different from that of the proposed regulations. YOU SHOULD COMMENT DURING THE TIME ALLOWED IF YOUR INTERESTS COULD BE AFFECTED. Written and oral comments are public records, subject to public disclosure. Statutory Authority: AS 31.05.030. ~' Subject Statutes: AS 31.05.030. Fiscal Information: The propose anges r~ ~xpected to require an increased appropriation. Date: November 29, 2007 Oil and Gas Conservation Commission ADDITIONAL REGULATIONS NOTICE INFORMATION (AS 44.62.190(d)) 1. Adopting agency: Alaska Oil and Gas Conservation Commission. 2. General subject of regulations: suspended wells. 3. Citation of regulations: 20 AAC 25.110. 4. Reason for the proposed action: clarification of regulatory requirements. 5. RDU/component affected: Alaska Oil and Gas Conservation Commission. 6. Cost of implementation to the state agency: zero. 7. Contact person for the regulations: Name: John K. Norman Title: Chairman Address: 333 W. 7t" Avenue, Suite 100, Anchorage, AK 99501 Telephone: (907) 793-1221 E-mail: jody.colombie@alaska.gov 8. Origin of the proposed action: Alaska Oil and Gas Conservation Commission staff. 9. Date: November 29, 2007. 10. Prepared by: Jody .Colo 'e Special Assistant Alaska Oil and Gas Conservation Commission (907) 793-1221 Register ~0_ MISCELLANEOU~OARDS Revision Date: 11/29/2007 20 AAC 25.110 is repealed and readopted to read: 20 AAC 25.110. Suspended wells. (a) Unless abandonment is required under 20 AAC 25.105, an operator may apply to the commission under (b) of this section for suspension of a well. The operator must demonstrate to the commission's satisfaction why the well should not be abandoned or completed. (b) An Application for Sundry Approvals (Form 10-403) must be submitted to and approved by the commission before plugging operations are begun in a well for which suspension is proposed, except that oral approval may be requested under 20 AAC 25.507(b). The application must include (1) the reason and supporting documentation for suspension; (2) wellbore diagrams illustrating the current and proposed mechanical configurations of the well; (3) information on abnormally geo-pressured or depleted strata; (4) a description of the proposed work plan including demonstration of integrity of existing and proposed plugs; and (5) evidence that freshwater and hydrocarbon resources are protected. (c) All hydrocarbon-bearing, freshwater, abnormally geo-pressured and depleted intervals must be plugged in accordance with the requirements of 20 AAC 25.112(c)(1), unless otherwise authorized by the commission. (d) Until a suspended well has been abandoned or re-entered, the operator shall maintain the integrity of the location and clear the location in accordance with 20 AAC 25.170(a)(2) or (b) or with 20 AAC 25.172(c)(2) or (d), as applicable. (e) A suspension approved after the effective date of this section will be valid for no more than 10 years. Extensions may be requested by the submission of an Application for Sundry Approvals containing the information required in subsection (b)(1)-(5). (f) For any well suspended on or after the effective date of this section, the operator must inspect the well site within 12 months of the date of suspension. Subsequent inspections must be conducted within one year of January 1 of every year ending in 0 or 5. Each time the operator inspects the well site Register • _ MISCELLANEOUS~JARDS Revision Date: 11/29/2007 under this subsection, the operator must give the commission a minimum of ten days notice of intent to inspect the well site and provide the opportunity for commission inspectors to accompany the operator on the inspection tour. (g) For any well suspended prior to the effective date of this section, the operator must inspect the well site and reapply for suspended status by filing an Application for Sundry Approvals containing the information required in subsection (b)(1)-(5) as follows: (1) within one year of the effective date of this section for any well suspended prior to January 1, 2005; and (2) within five years of the suspension date for any welt suspended on or after January 1, 2005 but before the effective date of this section. (h) Within 30 days of any well site inspection required under this section, the operator must file a Report of Sundry Well Operations (Form 10-404). The report shall include: (1) a summary of any changes noted since the last report was filed; (2) a plat showing the location of the suspended well and any new welts within a one- quarter mile radius of the wellbore; (3) well-head pressure readings; (4) a description of the condition of the well head and surface location including any fluids(s) or sheens) visible on the ground or in the surrounding waters; and (5) photographs clearly showing the well head and the surrounding location. (i) If any criterion within this section is not satisfied, the operator must plug and abandon the well in accordance with 20 AAC 25.112 and on a schedule approved by the commission. History: Eff. 4/2/86, Register 97; am l 1/7/99, Register 152; am / / ,Register ) Authority: AS 31.05.030 Page 1 of 1 Colombie, Jody J (DOA) From: Ads, Legal [legalads@adn.com] Sent: Thursday, November 29, 2007 4:18 PM To: Colombie, Jody J (DOA) Subject: RE: Thank you so much!!! Attachments: STOF0330.pdf; STOF0330(2).pdf The following is the confirmation information on your legal notice. Please review and let me know if you have any changes or questions. Account Number: STOF0330 Ad Number: 388564 PO/AO#: 02814025 Run Dates: NOVEMBER 30, 2007 Total Cost Of Notice: $338.64 -----Original Message----- From: Colombie, Jody J (DOA) [mailto:jody.colombie@alaska.gov] Sent: Thursday, November 29, 2007 4:07 PM To: Ads, Legal Subject: RE: Thank you so much!!! The additional information needs to be added please. Thanks again! From: Ads, Legal [mailto:legalads@adn.com] Sent: Thursday, November 29, 2007 4:04 PM To: Colombie, Jody J (DOA) Subject: RE: Thank you so much!!! The following is the confirmation information on your legal notice. Please review and let me know if you have any changes or questions. Account Number: STOF0330 Ad Number: 388564 PO/AO#: 02814025 Run Dates: NOVEMBER 30, 2007 Total Cost Of Notice: $177.62 -----Original Message----- From: Colombie, Jody J (DOA) [mailto:jody.colombie@alaska.gov] Sent: Thursday, November 29, 2007 3:51 PM To: Ads, Legal Subject: Thank you so much!!! Importance: High 11 /29/2007 .. . ~ ADVERTISING INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED /~ 0_02814025 ORDER AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF M ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE SEE BOTTOM FOR INVOICE ADDRESS F AOGCC AGENCY CONTACT DATE OF A.O. R 333 West 7~' Avenue. Suite 100 ° Anchorage_ AK 9951 PHONE PCN M 907-793-1238 DATES ADVERTISEMENT REQUIRED: o Anchorage Daily News November 30 2007 , PO Box 149001 Anchora e AK 99514 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN g ~ ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: Account # STOF0330 AFFIDAVIT OF PU6LICATION United states of America REMINDER State of ss INVOICE MUST BE IN TRIPLICATE AND MUST REFERENCE THE ADVERTISING ORDER NUMBER. division. A CERTIFIED COPY OF THIS AFFIDAVIT OF PUBLICATION MUST BE SUBMITTED WITH THE INVOICE. Before me, the undersigned, a notary public this day personally appeared ATTACH PROOF OF PUBLICATION HERE. who, being first duly sworn, according to law, says that he/she is the of Published at in said division and state of and that the advertisement, of which the annexed is a true copy, was published in said publication on the day of 2007, and thereafter for consecutive days, the last publication appearing on the day of , 2007, and that the rate charged thereon is not in excess of the rate charged private individuals. Subscribed and sworn to before me This _ day of 2007, Notary public for state of My commission expires STATE OF ALASKA AMENDED NOTICE OF PROPOSED CHANGES IN THE REGULATIONS OF THE ALASKA OIL AND GAS CONSERVATION COMMISSION The Alaska Oil and Gas Conservation Commission ("AOGCC") proposes to amend Title 20, Chapter 25, Section 110 of the Alaska Administrative Code, dealing with suspended wells, including the following: The proposed regulations changes referenced above clarify what is expected of operators with respect to the surveillance, maintenance, and reporting requirements for suspended wells throughout the State. For a copy of the proposed changes, contact Jody Colombie at the AOGCC (333 W. 7tn Avenue, Suite 100, Anchorage, Alaska 99501, 907-793-1221) or visit the AOGCC Web site at http://www.aogcc.alaska.gov. Written comments on the proposed changes can be submitted to the AOGCC. They must be received no later than 4:30 p.m. on January 8, 2008. A public hearing on the proposed changes will be held on January 15, 2008, at the AOGCC. The hearing will begin at 9:00 a.m. and might be extended to accommodate those present before 9:30 a.m. who did not have an opportunity to comment. Oral and written comments may be submitted at the hearing. If, because of a disability, you need a special accommodation to submit comments or attend the hearing, contact Jody Colombie by 12:00 p.m. on January 10, 2008, to ensure that any necessary, reasonable accommodations can be provided. After the public comment period ends, the AOGCC will adopt, without further notice, the proposed or other changes to the suspended wells regulations or take no action. The language of the final regulations may be different from that of the proposed regulations. YOU SHOULD COMMENT DURING THE TIME ALLOWED IF YOUR INTERESTS COULD BE AFFECTED. Written and oral comments are public records, subject to public disclosure. Statutory Authority: AS 31.05.030. ' Subject Statutes: AS 31.05.030. Fiscal Information: The propose anges ~ xpected to require an increased appropriation. / ~ Date: November 29, 2007 J~hn~. lQb~n, Chairr---~'" A aska Oil and Gas Conservation Commission ADDITIONAL REGULATIONS NOTICE INFORMATION (AS 44.62.190(d)) 1. Adopting agency: Alaska Oil and Gas Conservation Commission. 2. General subject of regulations: suspended wells. 3. Citation of regulations: 20 AAC 25.110. 4. Reason for the proposed action: clarification of regulatory requirements. 5. RDU/component affected: Alaska Oil and Gas Conservation Commission. 6. Cost of implementation to the state agency: zero. 7. Contact person for the regulations: Name: John K. Norman Title: Chairman Address: 333 W. 7th Avenue, Suite 100, Anchorage, AK 99501 Telephone: (907) 793-1221 E-mail: jody.colombie@alaska.gov 8. Origin of the proposed action: Alaska Oil and Gas Conservation Commission staff. 9. Date: November 29, 2007. J 10. Prepared by: Jody .Colo 'e Special Assistant Alaska Oil and Gas Conservation Commission (907) 793-1221 Page 1 of 2 • Colombie, Jody J (DOA) From: Colombie, Jody J (DOA) Sent: Thursday, November 29, 2007 4:31 PM Subject: Amended AOGCC Proposed Changes dealing with Suspended Wells Attachments: Amended Notice and Additional Regulations Notice Information and Regulation.pdf BCC:McIver, C (DOA); 'legislative_library@legis.state.ak.us'; 'Alan Birnbaum <""Alan J Birnbaum "> (alan.birnbaum@alaska.gov)'; 'Aleutians East Borough'; 'Anna Raff; Arion, Teri A (DNR); 'Arthur C Saltmarsh'; 'Arthur Copoulos'; 'Barbara F Fullmer ; 'bbritch'; 'Bill Walker'; 'Brad McKim'; 'Brandon Gagnon'; 'Brian Gillespie'; 'Brian Havelock'; 'Brit Lively'; 'Bruce Webb'; 'buonoje'; 'Cammy Taylor'; 'carol Smyth'; 'Cary Carrigan'; 'Catherine P Foerster'; 'Charles O'Donnell'; 'Chris Gay'; 'Christian Gou- Leonhardt'; 'Cliff Posey'; 'Dan Bross'; 'dapa'; 'Daryl J. Kleppin'; 'David L Boelens'; 'David Steingreaber'; 'ddonkel'; 'Deanna Gamble'; 'Deborah J. Jones'; 'doug_schultze'; 'Evan Harness'; 'eyancy ; 'foms2@mtaonline.net'; 'Francis S. Sommer'; 'Fred Steece'; 'Garland Robinson'; 'Gary Laughlin'; 'Gary Rogers'; 'Gary Schultz'; 'ghammons'; 'Gordon Pospisil'; 'Gregg Nady'; 'gregory micallef; 'gspfoff; 'Hank Alford'; 'Harry Engel'; 'jah'; 'James B Regg'; 'James M. Ruud'; 'James Scherr'; 'Janet D. Platt'; 'jdarlington'; 'jejones'; 'Jerry McCutcheon'; 'Jim White'; 'Jim Winegarner'; 'Joe Nicks'; 'John Garing'; 'John S. Haworth'; 'John Spain'; 'John Tower'; 'John W Katz'; johnny.aiken@north-slope.org; 'Jon Goltz'; 'Julie Houle'; 'Kari Moriarty'; 'Kaynell Zeman'; 'Keith Wiles'; knelson@petroleumnews.com; 'Kristin Dirks'; 'Laura Silliphant'; 'Lois'; 'Lynnda Kahn'; 'mail=akpratts@acsalaska.net'; 'mail=Crockett@aoga.org'; 'mail=fours@mtaonline.net'; 'Mark Dalton'; 'Mark Hanley'; 'Mark Kovac'; 'Mark P. Worcester'; 'Marguerite kremer'; 'marty'r 'Matt Rader'; 'mckay'; 'Meghan Powell'; 'Mike Bill'; 'Mike Mason'; 'Mikel Schultz'; 'Mindy Lewis'; 'MJ Loveland'; 'mjnelson'; 'inkm7200'; 'Nick W. Glover'; 'Patty Alfaro'; 'Paul Decker'; 'Paul Winslow'; Pierce, Sandra M (DNR); 'Randall Kanady'; 'Randy L. Skillern'; 'rcrotty'; Rice, Cody J (DNR); 'rmclean'; 'Robert Campbell'; 'Robert Province'; 'Roger Belman'; 'Rudy Brueggeman'; 'Scott Cranswick'; 'Shannon Donnelly'; 'Sharmaine Copeland'; 'Sondra Stewman'; 'Sonja Frankllin'; 'stanekj'; 'Stephen F Davies'; 'Steve Lambert'; 'Steve Moothart'; 'Steven R. Rossberg'; 'tablerk'; 'Tamera Sheffield'; 'Temple Davidson'; 'Terrie Hubble'; 'Thomas E Maunder'; 'Tim Lawlor'; 'Todd Durkee'; 'trmjrl'; 'Walter Featherly'; 'Walter Quay'; 'Wayne Rancier'; Buch, Bob (LAA); Bunde, Con (LAA); Chenault, Mike (LAA); Cissna, Sharon (LAA); Coghill, John (LAA); Cowdery, John (LAA); Crawford, Harry (LAA); Dahlstrom, Nancy (LAA); Davis, Bettye J (LAA); Doll, Andrea (LAA); Doogan, Mike (LAA); Dyson, Fred (LAA); Edgmon, Bryce E (LAA); Ellis, Johnny (LAA); Elton, Kim S (LAA); Fairclough, Anna (LAA); 'Foster, Richard'; French, Hollis (LAA); Gara, Les (LAA); Gardner,. Berta (LAA); Gatto, Carl (LAA); Green, Lyda N (LAA); Gruenberg, Max F (LAA); Guttenberg, David (LAA); Harris, John (LAA); Hawker, Mike (LAA); Hoffman, Lyman F (LAA); Holmes, Lindsey (LAA); Huggins, Charlie (LAA); Johansen, Kyle B (LAA); Johnson, Craig W (LAA); Joule, Reggie (LAA); Kawasaki, Scott Jw (LAA); Keller, Wes (LAA); Kelly, Mike (LAA); Kerttula, Beth (LAA); Kookesh, Albert (LAA); Ledoux, Gabrielle R (LAA); Lynn, Bob (LAA); McGuire, Lesil L (LAA); Meyer, Kevin G (LAA); Nelson, Mary (LAA); Neuman, Mark A (LAA); Olson, Donny (LAA); Olson, Kurt E (LAA); Ramras, Jay B (LAA); Roses, Bob (LAA); Salmon, Woodie W (LAA); Samuels, Ralph (LAA); Seaton, Paul (LAA); Stedman, Bert K (LAA); Stevens, Gary L (LAA); Stoltze, Bill (LAA); Therriault, Gene (LAA); Thomas, Bill (LAA); Thomas, Joe (LAA); Wagoner, Tom (LAA); Wielechowski, Bill (LAA); Wilken, Gary R (LAA); Wilson, Peggy A (LAA) Attachments:Amended Notice and Additional Regulations Notice Information and Regulation.pdf; AI I- Attached is an amended version of the proposed regulation changes that were e-mailed yesterday. 11 /29/2007 Page 2 of 2 Jody Colombie 11 /29/2007 Mary Jones David McCaleb Mona Dickens XTO Energy, Inc. IHS Energy Group Tesoro Refining and Marketing Co. Cartography GEPS Supply & Distribution 810 Houston Street, Ste 2000 5333 Westheimer, Ste 100 300 Concord Plaza Drive Ft. Worth, TX 76102-6298 Houston, TX 77056 San Antonio, TX 78216 George Vaught, Jr. Jerry Hodgden Richard Neahring PO Box 13557 Hodgden Oil Company NRG Associates Denver, CO 80201-3557 408 18th Street President Golden, CO 80401-2433 PO Box 1655 Colorado Springs, CO 80901 John Levorsen Michael Parks Mark Wedman 200 North 3rd Street, #1202 Marple's Business Newsletter Halliburton Boise, ID 83702 117 West Mercer St, Ste 200 6900 Arctic Blvd. Seattle, WA 98119-3960 Anchorage, AK 99502 Baker Oil Tools Schlumberger Ciri 4730 Business Park Blvd., #44 Drilling and Measurements Land Department Anchorage, AK 99503 2525 Gambell Street #400 PO Box 93330 Anchorage, AK 99503 Anchorage, AK 99503 Ivan Gillian Jill Schneider Gordon Severson 9649 Musket Bell Cr.#5 US Geological Survey 3201 Westmar Cr. Anchorage, AK 99507 4200 University Dr. Anchorage, AK 99508-4336 Anchorage, AK 99508 Jack Hakkila Darwin Waldsmith James Gibbs PO Box 190083 PO Box 39309 PO Box 1597 Anchorage, AK 99519 Ninilchick, AK 99639 Soldotna, AK 99669 Kenai National Wildlife Refuge Penny Vadla Richard Wagner Refuge Manager 399 West Riverview Avenue PO Box 60868 PO Box 2139 Soldotna, AK 99669-7714 Fairbanks, AK 99706 Soldotna, AK 99669-2139 Cliff Burglin Bernie Karl North Slope Borough PO Box 70131 K&K Recycling Inc. PO Box 69 Fairbanks, AK 99707 PO Box 58055 Barrow, AK 99723 Fairbanks, AK 99711 Williams Thomas Arctic Slope Regional Corporation Land Department PO Box 129 Barrow, AK 99723 ~,~e ~ l1 .30 0 7 SERVICE LIST FOR PROPOSED AMENDMENTS TO 20 AAC 25.110 On November 30, 2007, the amended public notice of proposed amendments to 20 AAC 25.110, Additional Regulations Notice Information, and proposed regulation were mailed to: Annette Kreitzer Commissioner Department of Administration PO Box 110200 Juneau, AK 99811 Legislative Reference Library Legislative Affairs Agency State Capitol Juneau, AK 99801 Mail Stop: 3101 Senator Charlie Huggins, Chair Senate Resources State Capitol Juneau, Alaska 99801 Representative Kurt Olson, Chair House Oil & Gas Special Committee State Capitol Juneau, Alaska 99801 Senator Lesil McGuire, Chair Administrative Regulation Review State Capitol Juneau, Alaska 99801 Senator John Cowdery, Chair Legislative Council State Capitol Juneau, Alaska 99801 On November 30, 2007, the amended public notice of proposed amendments to 20 AAC 25.110, Additional Regulations Notice Information, and proposed regulation were mailed to: Debra Behr Chief Assistant Attorney General Legislation and Regulations Section Department of Law PO Box 110300 Juneau, AK 99811 Register 0 20 AAC 25.110 is repealed and readopted to read: MISCELLANEOU~ARDS Revision Date: 11/29/2007 20 AAC 25.110. Suspended wells. (a} Unless abandonment is required under 20 AAC 25.1OS, an operator may apply to the commission under {b) of this section for suspension of a well. The operator must demonstrate to the commission's satisfaction why the well should not be abandoned or completed. (b) An Application for Sundry Approvals (Form 10-403} must be submitted to and approved by the commission before plugging operations are begun in a well for which suspension is proposed, except that oral approval may be requested under 20 AAC 25.507(b). The application must include (1) the reason and supporting documentation for suspension; (2) wellbore diagrams illustrating the current and proposed mechanical configurations of the well; (3) information on abnormally geo-pressured or depleted strata; (4) a description of the proposed work plan including demonstration of integrity of existing and proposed plugs; and (5) evidence that freshwater and hydrocarbon resources are protected. (c} All hydrocarbon-bearing, freshwater, abnormally geo-pressured and depleted intervals must be plugged in accordance with the requirements of 20 AAC 25.112(c)(1), unless otherwise authorized by the commission. (d) Until a suspended well has been abandoned or re-entered, the operator shall maintain the integrity of the location and clear the location in accordance with 20 AAC 25.170(a)(2) or (b} or with 20 AAC 25.172{c)(2) oc• (d), as applicable. (e) A suspension approved after the effective date of this section will be valid for no more than 10 years. Extensions may be requested by the submission of an Application for Sundry Approvals containing the information required in subsection (b)(1}-(5). (f) For any well suspended on or after the effective date of this section, the operator must inspect the well site within 12 months of the date of suspension. Subsequent inspections must be conducted within one year of January 1 of every year ending in 0 or 5. Each time the operator inspects the well site Register 0^ MISCELLANEOU~ARDS Revision Date: 11/29/2007 under this subsection, the operator must give the commission a minimum of ten days notice of intent to inspect the well site and provide the opportunity for commission inspectors to accompany the operator on the inspection tour. (g) For any well suspended prior to the effective date of this section, the operator must inspect the well site and reapply for suspended status by filing an Application for Sundry Approvals containing the information required in subsection {b)(1)-(S) as follows: {1) within one year of the effective date of this section for any well suspended prior to January 1, 2005; and (2) within five years of the suspension date for any well suspended on or after January 1, 2005 but before the effective date of this section. (h) Within 30 days of any well site inspection required under this section, the operator must file a Report of Sundry Well Operations {Form 10-404). The report shall include: (1) a summary of any changes noted since the last report was filed; (2) a plat showing the location of the suspended well and any new wells within a one- quarter mile radius of the wellbore; (3) well-head pressure readings; {4) a description of the condition of the well head and surface location including any fluids(s} or sheens) visible on the ground or in the surrounding waters; and (S) photographs clearly showing the well head and the surrounding location. (i) If any criterion within this section is not satisfied, the operator must plug and abandon the well in accordance with 20 AAC 25.112 and on a schedule approved by the commission. History: Eff. 4/2/86, Register 97; am 11/7/99, Register 1 S2; am / / ,Register ~~ Authority: AS 31.OS.030 ~ 4 MEMORANDUM State of Alaska Department of Law To: John K. Norman, Chairman Alaska Oil and Gas Conservation Commission Dept. of Administration ~~~~ From: Deborah E. Behr Chief Assistant Attorney General and Regulations Attorney Legislation and Regulations Section Date: November 30, 2007 File No.: 993-08-0084 Ted. No.: 465-3600 Re: Regulations File Opening Re: Suspended Wells (20 AAC 25.110) We have received your memorandum of November 28, 2007 regarding this project, along with a copy of the proposed regulations and related documents. The project has been assigned to Assistant Attorney General Alan Birnbaum, phone number 269-5100. Our department's file number for this project is 993-08-0084. This file number should be used on any further correspondence pertaining to this project. DEB:pvp cc: Carol Beecher, Regulations Contact Dept. of Administration Jody Colombie, Project Lead Alaska Oil and Gas Conservation Commission Dept. of Administration Jason Hooley, AAC Coordinator Lt. Governor's Office Tina Kobayashi, Acting Supervising Attorney Oil, Gas & Mining Section Alan Birnbaum, Assistant Attorney General Anchorage ~3 ~ ` STATE OF ALASKA ADVERTISING ORDER SEE BOTTOM FOR INVOICE ADDRESS F AOGCC R 333 W 7th Ave, Ste 100 ° Anchorage, AK 99501 M 907-793-1238 o Anchorage Daily News PO Box 149001 Anchorage, AK 99514 AGENCY CONTACT DATE OF A.O. Jod Colombie November PHONE PCN DATES ADVERTISEMENT REQUIRED: November 29, 2007 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: Advertisement to be published was e-mailed Type of Advertisement Legal® ^ Display Classified ^Other (Specify) SEE ATTACHED SEND INVOICE,IN TRIPLICATE AOGCC, 333 W. 7th Ave., Suite 100 TO Anchora e AK 99501 REF TYPE NUMBER AMOUNT 1 VEN z Axle 02910 FIN AMOUNT SY CC PGM ~ 08 02140100 DA PAGE 1 OF TOTAL OF 2 PAGES ALL PAGE COMMENTS LC ACCT FY NMR DIST 73451 DIVISION APPROVAL: 3/94) Publisher/Original Copies: Department Fiscal, Department, Receiving NOTICE TO PUBLISHER ADVERTISING ORDER NO. AFFIODAVITI OF PUBLICATION (PART 200FINTHIS ORM) IW THO ATTACHED COPY IOF AO-02814025 ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE AO.FRM STATE OF ALASKA NOTICE OF PROPOSED CHANGES IN THE REGULATIONS OF THE ALASKA OIL AND GAS CONSERVATION COiVIlv1ISSION The Alaska Oil and Gas Conservation Commission ("AOGCC") proposes to amend Title 20, Chapter 25, Section 110 of the Alaska Administrative Code, dealing with suspended wells. For a copy of the proposed changes, contact Jody Colombie at the AOGCC (333 W. 7`h Avenue, Suite 100, Anchorage, Alaska 99501, 907-793-1221) or visit the AOGCC Web site at http://www.aogcc.alaska.~ov. Written comments on the proposed changes can be submitted to the AOGCC. They must be received no later than 4:30 p.m. on January 8, 2008. A public hearing on the proposed changes will be held on January 15, 2008, at the AOGCC. The hearing will begin at 9:00 a.m. and might be extended to accommodate those present before 9:30 a. m. who did not have an opportunity to comment. Oral and written comments may be submitted at the hearing. If, because of a disability, you need a special accommodation to submit comments or attend the hearing, contact Jody Colombie by 12:00 p.m. on January 10, 2008, to ensure that any necessary, reasonable accommodations can be provided. After the public comment period ends, the AOGCC will adopt, without further notice, the proposed or other changes to the suspended wells regulations or take no action. The language of the final regulations may be different from that of the proposed regulations. YOU SHOULD COMMENT DURING THE TIME ALLOWED IF YOUR INTERESTS COULD BE AFFECTED. Written and oral comments are public records, subject to public disclosure. Statutory Authority: AS 31.05.030. Subject Statutes: AS 31.05.030. Fiscal Information: The proposed a es not xpected to require an increased appropriation. ~ Date: November 28. 2007 v v J orm n, Chair an Alaska Oi d Gas Con rvation Commission ADDITIONAL REGULATIONS NOTICE INFORMATION (AS 44.62.190(d)) 1. Adopting agency: Alaska Oil and Gas Conservation Commission. 2. General subject of regulations: suspended wells. 3. Citation of regulations: 20 AAC 25.110. 4. Reason for the proposed action: clarification of regulatory requirements. 5. RDU/component affected: Alaska Oil and Gas Conservation Commission. 6. Cost of implementation to the state agency: zero. 7. Contact person for the regulations: Name: John K. Norman Title: Chairman Address: 333 W. 7~' Avenue, Suite 100, Anchorage, AK 99501 Telephone: (907) 793-1221 E-mail: jody.colombie@alaska.gov 8. Origin of the proposed action: Alaska Oil and Gas Conservation Commission staff. 9. Date: November 28, 2007. 10. Prepared by: J dy J. o m ' Special Assistant Alaska Oil and Gas Conservation Commission (907) 793-1221 • ADVERTISING INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED /~ 0-02814025 ` AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF 1 I ORDER ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE EE BOTTOM FOR INVOICE ADDRESS P AOGCC AGENCY CONTACT DATE OF A.O. R Suite 100 333 West 7`h Avenue . Anchorage- AK 995(11 PHONE PCN M 907-793-1238 - DATES ADVERTISEMENT REQUIRED: o Anchorage Daily News November 29 2007 , PO Box 149001 Anchora e AK 99514 g THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN ~ . SPECIAL INSTRUCTIONS: Account # STOF0330 AFFIDAVIT OF PUBLICATION United states of America REMINDER State of ss INVOICE MUST BE IN TRIPLICATE AND MUST REFERENCE THE ADVERTISING ORDER NUMBER. division. A CERTIFIED COPY OF THIS AFFIDAVIT OF PUBLICATION MUST BE SUBMITTED WITH THE INVOICE. Before me, the undersigned, a notary public this day personally appeared ATTACH PROOF OF PUBLICATION HERE. who, being first duly sworn, according to law, says that he/she is the of Published at in said division and state of and that the advertisement, of which the annexed is a true copy, was published in said publication on the day of 2007, and thereafter for consecutive days, the last publication appearing on the day of , 2007, and that the rate charged thereon is not in excess of the rate charged private individuals. Subscribed and sworn to before me 'This _ day of 2007, Notary public for state of n"~• commission expires • • Colombie, Jody J (DOA) From: Colombie, Jody J (DOA} Sent: Wednesday, November 28, 2007 3:09 PM To: 'Ads, Legal' Subject: RE: Public Notice perfect. From: Ads, Legal [mailto:legalads@adn.com] Sent: Wednesday, November 28, 2007 3:07 PM To: Colombie, Jody J (DOA) Subject: RE: Public Notice Page 1 of 2 Following is the confirmation on your legal notice. Please fully review all attachments and let me know if there are any changes. And, please let me know if you have any questions or need additional information. AFFIDAVITS WILL BE MAILED OUT APPROXIMATELY 10 BUSINESS DAYS AFTER THE LAST DATE OF PUBLICATION. PLEASE KEEP THE FOLLOWING INFORMATION AS IT WILL QUICKLY ASSIST IN THE CASE THIS AD NEEDS TO BE PULLED UP IN THE FUTURE. Account Number Legal Ad Number: Classification: Publication Date(s): Your Reference Number: Total Cost of Legal Notice: STOF0330 387834 Rules & Regulations (9100) November 29, 2007 02814025 $388.44 Email legal arts to legalads@arfrt.eorn /View legal ads at htty://zaww legainotice org/pl/adrt/lanc~ingl.~s~x Angelina Benjamin Classified Legal Specialist i Anchorage Daily News Direct: 907-257-4296 (Fax: 907-279-8170 ABenjamn@adn.co_m_ i 1001 Northway Drive ~ Anchorage, AK 99508 odn~iarn nchr~ra,~c Daily i~~e«<5 11/28/2007 AFFIDAVIT OF PUBLICATION STATE OF ALASKA THIRD JUDICIAL DISTR3GT _ ,.. ~~,~o`9M~~ ~~ _.. _ .. _ _ being first duly sworn on oath deposes and says that he/she is an representative of the Anchorage Daily News, a daily newspaper. That said newspaper has been approved by the Third Judicial Court, Anchorage, Alaska, and it now and has been published in the English language continually as a daily newspaper in Anchorage, Alaska, and it is now and during all said time was printed in an office maintained at the aforesaid place of publication of said newspaper. That the annexed is a copy of an advertisement as it was published in regulaz issues (and not in supplemental form) , , , of said newspaper on .;, , , ~.. _ ,, ~ _,• ' and that such newspaper was , regulazly distributed to its subscribers during all of said period. That the full amount of the fee charged for the foregoing publication is not in excess of the rate charged private individuals. Signed Subscribed and sworn to before me this day of ~.~ 20 ~~~ u ~ttttddflr~f Notary Publigit~ ~~~° ~R/r~~ the State Third °fA ~`~:. Anobo~g~ ~t,~-o R-Y :~` MY COMIQ~SSION EXPII~`~ G`^ .w ~ ~~ ~' • •' ~ JfJf~~~Jl *) )11>>,1 ULATIONS OP THE . The Alaska Oil and Gas Conservation Commission ("AOG6C") proposes to amend' Tkle 20, Chapter 25, Section 110 of the Alaska Administrative Code, dealing with suspended wells. For a copy of the proposed changes, contact Jody Colombie at the AOGCC (333 W. 7th Avenue, Suite 100, Anchorage, Alaska 99501, 907-793-1221) or visit the AOGCC Well Slte at httn'//www a0£CC a18Ska ¢OV. t.., Written comments on the proposed changes can be submitted to the aoGCC They must be received no later than 4:30. p.m. on January S, 2008. A public hearing on the proposed changes will be held on January 15, 2008, at the AOGCC. The hearing will begin at 9:00 a.m. and might he extended to accommodate those present before 9:30 a.m. who did not have an.opportunity.to comment. oral and written comments maybe submitted at the hearing. If, because of a disability, yyou need a special accommodation to submit comments or attend the heanng,'contact Jody Colombie by 12:00 p.m. on January 10, 2008, to ensure that any necessary, reasonable accommotiationscan be provided. Afterthe public comment period ends, the AOGCC will adopt, without further notice, the proposed or other changes to the suspended wells regulabons or take no action. The language otthe final regulations may be different from that of the proposed re ulations. YOU SHOULD COMMENT DURING THE TIME ALLOWED,IF YOUR INTERESTS COULDt3EAFFECTED. Written and oral comments are public records,. subject to public disclosure. StatutoryAuthorJty: AS 31.05.030. Subject Statutes: AS 31.05.03D. FJacal information; The proposed changes are not expected to require an .increased appropriation. Date:~NOVem~6et 28,~Lbd7' John K Norman, Chairman, ,~ Alaska Oil and Gas Conservation Commission ADDITIONAL REGt~ ~ 62 i9N0~a~)CE INFORMATION 1. Adopting agency: Alaska Oil and Gas Conservation Commission. ~ 2. General subject of regulations: suspended wells. .3. Citadon of regulations: 20 AAC 25.110. 4. Reason for the proposed action: clarification of regulatory requirements. S. RDII/component affected: Alaska Oil and Gas Conservation Commission. 6: Cost of implementation to the state agency: zero: 7. Contact person for: the regulations`. Name: John K. Norman Titte: Chairman Address: 333 W. 7th Avenue, Suite 100, Anchorage, AK 99501 Telephone: (907) 793-1221 E-mail Jody,colombie~alaska.gov 8. Origin of the proposed action: Alaska oil and Gas Conservation Commission staff. 9. Date: November z8, zoo7. 10. Prepared by: Jody ~• Colombie Special Assistant Alaska Oil and Gas Conservation Commission (907) 793-1221 Ao-o281ao2s PutfliSti: November 29, 2007 -- ... v ~n'2~ .~ .. ~:_ ~ _, Anchorage Daily News Affidavit of Publication 1001 Northway Drive. Anchorage, AK 99508 AD# DATE PO ACCOUNT 387834 11/29/2007 02814025 STOF0330 ~~~,/ DEC 1 2 2007 ;~laska Oil & Gas Cons, Commission Anchorage STATE OF ALASKA THIRD JUDICIAL DISTRICT PRICE OTHER OTHER OTHER OTHER OTHER GRAND PER DAY CHARGES CHARGES #2 CHARGES #3 CHARGES #4 CHARGES #5 TOTAL $388.44 $388.44 $0.00 $0.00 Angelina Benjamin, being first duly sworn on oath deposes and says that she is an advertising representative of the Anchorage Daily News, a daily newspaper. That said newspaper has been approved by the Third Judicial Court, Anchorage, Alaska, and it now and has been published in the English language continually as a daily newspaper in Anchorage, Alaska, and it is now and during all said time was printed in an office maintained at the aforesaid place of publication of said newspaper. That the annexed is a copy of an advertisement as it was published in regular issues (and not in supplemental form) of said newspaper on the above dates and that such newspaper was regularly distributed to its subscribers during all of said period. That the full amount of the fee charged for the foregoing publication is not in excess of the rate charged private individuals. Signed "' ,,, ~ Subscribed and savor to e before this date: ~~~ ~~ MY COMMISSION ~+. - ~`~:~~OT~qR'• 4~~ --- ~' ~/ ~BL1G 1~J,,~xp~;,p- ~~.~~ $0.00 $0.00 $0.00 $388.44 STATE OP ALASKA NOTICE OF PROPOSED CHANGES Ed THE REGULATIONS OF THE r ALASKA OILAND GAS CONSERVATION COMMISSION The Alaska Oil :and Gas Conservation Commission ("AOGCC") proposes to amend Title 20, Chapter 25, Section 110 of the Alaska Administrative Code, dealing with suspended wells. For a copy of the proposed changes, contact Jody Colombie at the AOGCC (333 W. 7th Avenue, Suite 100, Anchorage; Alaska 99501, 907.793-1221) or visit the AOGCC Web site at "~^• gyn. „ a^°~c aaska aov. Written comments on the proposed changes can be submitted to the AOGCC. They must be received ho later than 4:30 p:m. on January 8, 2008. A public hearingg on the proposed changes will be held on January 15, 2008, at the AOGCC. The hearing will. begin at 9:00 a:m. and might a extended to accommodate those present before 9;30 a.m. who did not have an opportunity to comment. Oral and written comments maybe submitted at the hearing. If, because of a disability, you need a speciaiaccommodation to submitcomments or attend the hearing, contact Jody Colombie by 12.00 p.m. on7anuary 10, 2008, to ensure-that any necessary, reasonable accommodations can be provided. After the public comment period ends, the AOGCC will adopt, without further notice, the. proposed or other changes to the suspended wells regulations or take no action. The language of the final regulations may be different from that of the proposed regulations. YOU SHOULD COMMENT DURING THE TIME ALLOWED IF YOUR. INTERESTS COULD BE AFFECTED. Written and oral comments are public records, subject to public disclosure. Statutory Authority: AS 31.05.030. Subject Statutes; AS 31.05.030. Fiscal Inforvration: The proposed changes are not expected to require an increased appropriation. lz/~~zoo7 ~~ Date: November 28, 2007 John K. Norman, Chairman Alaska Oil and Gas Conservation Commission ADDTI'IONAL REGULATIONS NOTICE INFORMATION (AS 44.sz.ISO(a~) 1. Adopting agency: Alaska Oil and Gas Conservation Commission. 2 GeneMdl subjectof regulations: suspended wells. 3. Citation of .regulations: 20 AAC 25.110. 4. Reason for the proposed action: clarification of regulatory requirements. 5. RDU/component affected: Alaska Oil and Gas Cohservation Commission. 6. Cost of implementation to the state agency: zero. 7. Contact person for the regulations: Name: john K:NOrman Title: Chairman Address: , 333 W. 7th Avenue, Suite 100, Anchoraggee AK 99501: Telephone: (907)c7o9o~b e~alaska.gov E-mail: lodY• 8. Origin of the proposed action: Gas Conservation Commission staff. 9: Date: November 28 2007. 10. Prepared by: JodyJ. Colombie S~ecial Assistant A asks Oil and Gas Conservation Commission (907) 793-1221 AD-02814025. Publish: November 29, 2007 Notary Public in and for the State of Alaska. Third Division. Anchorage, Alaska Page 2 of 2 Anchorage Daily News products reach more than 300,000 Alaskans every week. Visit us at adn.com and Alaska.com -----Original Message----- From: Colombie, Jody J (DOA) [mailto:jody.colombie@alaska.gov] Sent: Wednesday, November 28, 2007 2:08 PM To: Ads, Legal Subject: Public Notice Please publish tomorrow. 11 /28/2007 • C: • Page 1 of 1 Colombie, Jody J (DOA) From: Colombie, Jody J (DOA) Sent: Wednesday, November 28, 2007 2:08 PM To: Legal Ads Anchorage Daily News Subject: Public Notice Attachments: Suspended Wells notice.doc; Additional Regulation Notice.doc; Ad Order ADN form.doc Please publish tomorrow. 11/28/2007 I~ STATE OF ALASKA NOTICE OF PROPOSED CHANGES IN THE REGULATIONS OF THE ALASKA OIL AND GAS CONSERVATION COMMISSION The Alaska Oil and Gas Conservation Commission ("AOGCC") proposes to amend Title 20, Chapter 25, Section 110 of the Alaska Administrative Code, dealing with suspended wells. For a copy of the proposed changes, contact Jody Colombie at the AOGCC (333 W. 7`i' Avenue, Suite 100, Anchorage, Alaska 99501, 907-793-1221) or visit the AOGCC Web site at http://www.aogcc.alaska.gov. Written comments on the proposed changes can be submitted to the AOGCC. They must be received no later than 4:30 p.m. on January 8, 2008. A public hearing on the proposed changes will be held on January 15, 2008, at the AOGCC. The hearing will begin at 9:00 a.m. and might be extended to accommodate those present before 9:30 a.m. who did not have an opportunity to comment. Oral and written comments may be submitted at the hearing. If, because of a disability, you need a special accommodation to submit comments or attend the hearing, contact Jody Colombie by 12:00 p.m. on January 10, 2008, to ensure that any necessary, reasonable accommodations can be provided. After the public comment period ends, the AOGCC will adopt, without further notice, the proposed or other changes to the suspended wells regulations or take no action. The language of the final regulations may be different from that of the proposed regulations. YOU SHOULD COMMENT DURING THE TIME ALLOWED IF YOUR INTERESTS COULD BE AFFECTED. Written and oral comments are public records, subject to public disclosure. Statutory Authority: AS 31.05.0 Subject Statutes: AS 31.05.030. Fiscal Information: The propo ected to require an increased appropriation. Date: November 28, 2007 30. sed a es not ~ p / A J orm ,Chair an Alaska Oi d Gas Con rvation Commission ~ i ADDITIONAL REGULATIONS NOTICE INFORMATION (AS 44.62.190(d)) 1. Adopting agency: Alaska Oil and Gas Conservation Commission. 2. General subject of regulations: suspended wells. 3. Citation of regulations: 20 AAC 25.110. 4. Reason for the proposed action: clarification of regulatory requirements. 5. RDU/component affected: Alaska Oil and Gas Conservation Commission. 6. Cost of implementation to the state agency: zero. 7. Contact person for the regulations: Name: John K. Norman Title: Chairman Address: 333 W. 7`l' Avenue, Suite 100, Anchorage, AK 99501 Telephone: (907) 793-1221 E-mail: jody.colombieC alaska.gov 8. Origin of the proposed action: Alaska Oil and Gas Conservation Commission staff. 9. Date: November 28, 2007. 10. Prepared by: J dy o m ' Special Assistant Alaska Oil and Gas Conservation Commission (907)793-1221 i ~ SERVICE LIST FOR PROPOSED AMENDMENTS TO 20 AAC 25.110 On November 28, 2007, the public notice of proposed amendments to 20 AAC 25.110, Additional Regulations Notice Information, and proposed regulation were mailed to: Annette Kreitzer Commissioner Department of Administration PO Box 110200 Juneau, AK 99811 Legislative Reference Library Legislative Affairs Agency State Capitol Juneau, AK 99801 Mail Stop: 3101 Senator Charlie Huggins, Chair Senate Resources State Capitol Juneau, Alaska 99801 Representative Kurt Olson, Chair House Oil & Gas Special Committee State Capitol Juneau, Alaska 99801 Senator Lesil McGuire, Chair Administrative Regulation Review State Capitol Juneau, Alaska 99801 Senator John Cowdery, Chair Legislative Council State Capitol Juneau, Alaska 99801 On November 28, 2007, the file-opening memorandum, public notice of proposed amendments to 20 AAC 25.110, Additional Regulations Notice Information, and proposed regulation were mailed to: Debra Behr Chief Assistant Attorney General Legislation and Regulations Section Department of Law PO Box 110300 Juneau, AK 99811 • ~ Page 1 of 1 Colombie, Jody J (DOA) From: Colombie, Jody J (DOA) Sent: Wednesday, November 28, 2007 4:19 PM Subject: Public Notice, Additional Information and Proposed Regulation Attachments: Notice and Additional Regulations Notice Information and Regulation.pdf BCC:McIver, C (DOA); 'legislative_library@legis.state.ak.us'; 'Alan Birnbaum <""Alan J Birnbaum "> (alan.birnbaum@alaska.gov)'; 'Aleutians East Borough'; 'Anna Raff; Arion, Teri A (DNR); 'Arthur C Saltmarsh'; 'Arthur Copoulos'; 'Barbara F Fullmer'; 'bbritch'; 'Bill Walker'; 'Brad McKim'; 'Brandon Gagnon'; 'Brian Gillespie'; 'Brian Havelock'; 'Brit Lively'; 'Bruce Webb'; 'buonoje'; 'Cammy Taylor'; 'carol smyth'; 'Cary Carrigan'; 'Catherine P Foerster'; 'Charles O'Donnell'; 'Chris Gay'; 'Christian Gou- Leonhardt'; 'Cliff Posey'; 'Dan Bross'; 'dapa'; 'Daryl J. Kleppin'; 'David L Boelens'; 'David Steingreaber'; 'ddonkel'; 'Deanna Gamble'; 'Deborah J. Jones'; 'doug_schultze'; 'Evan Harness'; 'eyancy'; 'foms2@mtaonline.net'; 'Francis S. Sommer'; 'Fred Steece'; 'Garland Robinson'; 'Gary Laughlin'; 'Gary Rogers'; 'Gary Schultz'; 'ghammons'; 'Gordon Pospisil'; 'Gregg Nady'; 'gregory micallef; 'gspfoff; 'Hank Alford'; 'Harry Engel'; 'jah'; 'James B Regg'; 'James M. Ruud'; 'James Scherr'; 'Janet D. Platt'; 'jdarlington'; 'jejones'; 'Jerry McCutcheon'; 'Jim White'; 'Jim Winegarner'; 'Joe Nicks'; 'John Garing'; 'John S. Haworth'; 'John Spain'; 'John Tower'; 'John W Katz'; johnny.aiken@north-slope.org; 'Jon Goltz'; 'Julie Houle'; 'Kari Moriarty'; 'Kaynell Zeman'; 'Keith Wiles'; knelson@petroleumnews.com; 'Kristin Dirks'; 'Laura Silliphant'; 'Lois'; 'Lynnda Kahn'; 'mail=akpratts@acsalaska.net'; 'mail=Crockett@aoga.org'; 'mail=fours@mtaonline.net'; 'Mark Dalton'; 'Mark Hanley'; 'Mark Kovac'; 'Mark P. Worcester'; 'Marquerite kremer'; 'marty'r 'Matt Rader'; 'mckay'; 'Meghan Powell'; 'Mike Bill'; 'Mike Mason'; 'Mikel Schultz'; 'Mindy Lewis'; 'MJ Loveland'; 'mjnelson'; 'inkm7200'; 'Nick W. Glover'; 'Patty Alfaro'; 'Paul Decker'; 'Paul Winslow'; Pierce, Sandra M (DNR); 'Randall Kanady'; 'Randy L. Skillern'; 'rcrotty ;Rice, Cody J (DNR); 'rmclean'; 'Robert Campbell'; 'Robert Province'; 'Roger Belman'; 'Rudy Brueggeman'; 'Scott Cranswick'; 'Shannon Donnelly'; 'Sharmaine Copeland'; 'Sondra Stewman'; 'Sonja Frankllin'; 'stanekj'; 'Stephen F Davies'; 'Steve Lambert'; 'Steve Moothart'; 'Steven R. Rossberg'; 'tablerk'; 'Tamera Sheffield'; 'Temple Davidson'; 'Terrie Hubble'; 'Thomas E Maunder'; 'Tim Lawlor'; 'Todd Durkee'; 'trmjrl'; 'Walter Featherly'; 'Walter Quay'; 'Wayne Rancier'; Buch, Bob (LAA); Bunde, Con (LAA); Chenault, Mike (LAA); Cissna, Sharon (LAA); Coghill, John (LAA); Cowdery, John (LAA); Crawford, Harry (LAA); Dahlstrom, Nancy (LAA); Davis, Bettye J (LAA); Doll, Andrea (LAA); Doogan, Mike (LAA); Dyson, Fred (LAA); Edgmon, Bryce E (LAA); Ellis, Johnny (LAA); Elton, Kim S (LAA); Fairclough, Anna (LAA); 'Foster, Richard'; French, Hollis (LAA); Gara, Les (LAA); Gardner, Berta (LAA); Gatto, Carl (LAA); Green, Lyda N (LAA); Gruenberg, Max F (LAA); Guttenberg, David (LAA); Harris, John (LAA); Hawker, Mike (LAA); Hoffman, Lyman F (LAA); Holmes, Lindsey (LAA); Huggins, Charlie (LAA); Johansen, Kyle B (LAA); Johnson, Craig W (LAA); Joule, Reggie (LAA); Kawasaki, Scott Jw (LAA); Keller, Wes (LAA); Kelly, Mike (LAA); Kerttula, Beth (LAA); Kookesh, Albert (LAA); Ledoux, Gabrielle R (LAA); Lynn, Bob (LAA); McGuire, Lesil L (LAA); Meyer, Kevin G (LAA); Nelson, Mary (LAA); Neuman, Mark A (LAA); Olson, Donny (LAA); Olson, Kurt E (LAA); Ramras, Jay B (LAA); Roses, Bob (LAA); Salmon, Woodie W (LAA); Samuels, Ralph (LAA); Seaton, Paul (LAA); Stedman, Bert K (LAA); Stevens, Gary L (LAA); Stoltze, Bill (LAA); Therriault, Gene (LAA); Thomas, Bill (LAA); Thomas, Joe (LAA); Wagoner, Tom (LAA); Wielechowski, Bill (LAA); Wilken, Gary R (LAA); Wilson, Peggy A (LAA) Attachments:Notice and Additional Regulations Notice Information and Regulation.pdf; 11/28/2007 Register ~0_ MISCELLANEOUARDS Revision Date: 11/28/2007 20 AAC 25.110 is repealed: 20 AAC 25.110. Suspended wells. (a) Unless abandonment is required under 20 AAC 25.105, an operator may apply to the commission under (b) of this section for suspension of a well. The operator must demonstrate to the commission's satisfaction why the well should not be abandoned or completed. (b) An Application for Sundry Approvals (Form 10-403) must be submitted to and approved by the commission before plugging operations are begun in a well for which suspension is proposed, except that oral approval may be requested under 20 AAC 25.507(b). The application must include (1) the reason and supporting documentation for suspension; (2) wellbore diagrams illustrating the current and proposed mechanical configurations of the well; (3) information on abnormally geo-pressured or depleted strata; (4) a description of the proposed work plan including demonstration of integrity of existing and proposed plugs; and (5) evidence that freshwater and hydrocarbon resources are protected. (c) All hydrocarbon-bearing, freshwater, abnormally geo-pressured and depleted intervals must be plugged in accordance with the requirements of 20 AAC 25.112(c)(1), unless otherwise authorized by the commission. (d) Until a suspended well has been abandoned or re-entered, the operator shall maintain the integrity of the location and clear the location in accordance with 20 AAC 25.170(a)(2) or (b) or with 20 AAC 25.172(c)(2) or (d), as applicable. (e) A suspension approved after the effective date of this section will be valid for no more than 10 years. Extensions may be requested by the submission of an Application for Sundry Approvals containing the information required in subsection (b)(1)-(5). (f) For any well suspended on or after the effective date of this section, the operator must inspect the well site within 12 months of the date of suspension. Subsequent inspections must be conducted within one year of January 1 of every year ending in 0 or 5. Each time the operator inspects the well site Register Z00_ MISCELLANEOU~ARDS Revision Date: 11/28/2007 under this subsection, the operator must give the commission a minimum of ten days notice of intent to inspect the well site and provide the opportunity for commission inspectors to accompany the operator on the inspection tour. (g) For any well suspended prior to the effective date of this section, the operator must inspect the well site and reapply for suspended status by filing an Application for Sundry Approvals containing the information required in subsection (b)(1)-(5) as follows: (1) within one year of the effective date of this section for any well suspended prior to January 1, 2005; and (2) within five years of the suspension date for any well suspended on or after January 1, 2005 but before the effective date of this section. (h) Within 30 days of any well site inspection required under this section, the operator must file a Report of Sundry Well Operations (Form 10-404). The report shall include: (1) a summary of any changes noted since the last report was filed; (2) a plat showing the location of the suspended well and any new wells within a one- quarter mile radius of the wellbore; (3) well-head pressure readings; (4) a description of the condition of the well head and surface location including any fluids(s) or sheens) visible on the ground or in the surrounding waters; and (5) photographs clearly showing the well head and the surrounding location. (i) If any criterion within this section is not satisfied, the operator must plug and abandon the well in accordance with 20 AAC 25.112 and on a schedule approved by the commission. History: Ef£ 4/2/86, Register 97; am 11/7/99, Register 152; am / / ,Register ) Authority: AS 31.05.030 STATE OF ALASKA NOTICE OF PROPOSED CHANGES IN THE REGULATIONS OF THE ALASKA OIL AND GAS CONSERVATION COMMISSION The Alaska Oil and Gas Conservation Commission ("AOGCC") proposes to amend Title 20, Chapter 25, Section 110 of the Alaska Administrative Code, dealing with suspended wells. For a copy of the proposed changes, contact Jody Colombie at the AOGCC (333 W. 7`h Avenue, Suite 100, Anchorage, Alaska 99501, 907-793-1221) or visit the AOGCC Web site at http://www.aogcc.alaska.gov. Written comments on the proposed changes can be submitted to the AOGCC. They must be received no later than 4:30 p.m. on January 8, 2008. A public hearing on the proposed changes will be held on January 15, 2008, at the AOGCC. The hearing will begin at 9:00 a.m. and might be extended to accommodate those present before 9:30 a.m. who did not have an opportunity to comment. Oral and written comments may be submitted at the hearing. If, because of a disability, you need a special accommodation to submit comments or attend the hearing, contact Jody Colombie by 12:00 p.m. on January 10, 2008, to ensure that any necessary, reasonable accommodations can be provided. After the public comment period ends, the AOGCC will adopt, without further notice, the proposed or other changes to the suspended wells regulations or take no action. The language of the final regulations may be different from that of the proposed regulations. YOU SHOULD COMMENT DURING THE TIME ALLOWED IF YOUR INTERESTS COULD BE AFFECTED. Written and oral comments are public records, subject to public disclosure. Statutory Authority: AS 31.05.030. Subject Statutes: AS 31.05.030. Fiscal Information: The proposed a es not ~ pected to require an increased appropriation. ~ .f Date: November 28. 2007 ~ v J orm ,Chair an Alaska Oi d Gas Con rvation Commission ~ r ADDITIONAL REGULATIONS NOTICE INFORMATION (AS 44.62.190(d)) 1. Adopting agency: Alaska Oil and Gas Conservation Commission. 2. General subject of regulations: suspended wells. 3. Citation of regulations: 20 AAC 25.110. 4. Reason for the proposed action: clarification of regulatory requirements. 5. RDU/component affected: Alaska Oil and Gas Conservation Commission. 6. Cost of implementation to the state agency: zero. 7. Contact person for the regulations: Name: John K. Norman Title: Chairman Address: 333 W. 7`t' Avenue, Suite 100, Anchorage, AK 99501 Telephone: (907) 793-1221 E-mail: jody.colombie@alaska.gov 8. Origin of the proposed action: Alaska Oil and Gas Conservation Commission staff. 9. Date: November 28, 2007. 10. Prepared by: J dy J. o m ' Special Assistant Alaska Oil and Gas Conservation Commission (907)793-1221 Register ~0_ MISCELLANEOUS~ARDS Revision Date: 11/28/2007 20 AAC 25.110 is repealed: 20 AAC 25.110. Suspended wells. (a) Unless abandonment is required under 20 AAC 25.105, an operator may apply to the commission under (b) of this section for suspension of a well. The operator must demonstrate to the commission's satisfaction why the well should not be abandoned or completed. (b) An Application for Sundry Approvals (Form 10-403) must be submitted to and approved by the commission before plugging operations are begun in a well for which suspension is proposed, except that oral approval may be requested under 20 AAC 25.507(b). The application must include (1) the reason and supporting documentation for suspension; (2) wellbore diagrams illustrating the current and proposed mechanical configurations of the well; (3) information on abnormally geo-pressured or depleted strata; (4) a description of the proposed work plan including demonstration of integrity of existing and proposed plugs; and (5) evidence that freshwater and hydrocarbon resources are protected. (c) All hydrocarbon-bearing, freshwater, abnormally geo-pressured and depleted intervals must be plugged in accordance with the requirements of 20 AAC 25.112(c)(1), unless otherwise authorized by the commission. (d) Until a suspended well has been abandoned or re-entered, the operator shall maintain the integrity of the location and clear the location in accordance with 20 AAC 25.170(a)(2) or (b) or with 20 AAC 25.172(c)(2) or (d), as applicable. (e) A suspension approved after the effective date of this section will be valid for no more than 10 years. Extensions may be requested by the submission of an Application for Sundry Approvals containing the information required in subsection (b)(1)-(5). (f) For any well suspended on or after the effective date of this section, the operator must inspect the well site within 12 months of the date of suspension. Subsequent inspections must be conducted within one year of January 1 of every year ending in 0 or 5. Each time the operator inspects the well site Register ~0_ MISCELLANEOUS~ARDS Revision Date: 11/28/2007 under this subsection, the operator must give the commission a minimum of ten days notice of intent to inspect the well site and provide the opportunity for commission inspectors to accompany the operator on the inspection tour. (g) For any well suspended prior to the effective date of this section, the operator must inspect the well site and reapply for suspended status by filing an Application for Sundry Approvals containing the information required in subsection (b)(1)-(5) as follows: (1) within one year of the effective date of this section for any well suspended prior to January 1, 2005; and (2) within five years of the suspension date for any well suspended on or after January 1, 2005 but before the effective date of this section. (h) Within 30 days of any well site inspection required under this section, the operator must file a Report of Sundry Well Operations (Form 10-404). The report shall include: (1) a summary of any changes noted since the last report was filed; (2) a plat showing the location of the suspended well and any new wells within a one- quarter mile radius of the wellbore; (3) well-head pressure readings; (4) a description of the condition of the well head and surface location including any fluids(s) or sheens) visible on the ground or in the surrounding waters; and (5) photographs clearly showing the well head and the surrounding location. (i) If any criterion within this section is not satisfied, the operator must plug and abandon the well in accordance with 20 AAC 25.112 and on a schedule approved by the commission. History: Ef£ 4/2/86, Register 97; am 11/7/99, Register 152; am / / ,Register ) Authority: AS 31.05.030 Mary Jones David McCaleb Mona Dickens XTO Energy, Inc. IHS Energy Group Tesoro Refining and Marketing Co. Cartography GEPS Supply & Distribution 810 Houston Street, Ste 2000 5333 Westheimer, Ste 100 300 Concord Plaza Drive Ft. Worth, TX 76102-6298 Houston, TX 77056 San Antonio, TX 78216 George Vaught, Jr. Jerry Hodgden Richard Neahring PO Box 13557 Hodgden Oil Company NRG Associates Denver, CO 80201-3557 408 18th Street President Golden, CO 80401-2433 PO Box 1655 Colorado Springs, CO 80901 John Levorsen Michael Parks Mark Wedman 200 North 3rd Street, #1202 Marple's Business Newsletter Halliburton Boise, ID 83702 117 West Mercer St, Ste 200 6900 Arctic Blvd. Seattle, WA 98119-3960 Anchorage, AK 99502 Baker Oil Tools Schlumberger Ciri 4730 Business Park Blvd., #44 Drilling and Measurements Land Department Anchorage, AK 99503 2525 Gambell Street #400 PO Box 93330 Anchorage, AK 99503 Anchorage, AK 99503 Ivan Gillian Jill Schneider Gordon Severson 9649 Musket Bell Cr.#5 US Geological Survey 3201 Westmar Cr. Anchorage, AK 99507 4200 University Dr. Anchorage, AK 99508-4336 Anchorage, AK 99508 Jack Hakkila Darwin Waldsmith James Gibbs PO Box 190083 PO Box 39309 PO Box 1597 Anchorage, AK 99519 Ninilchick, AK 99639 Soldotna, AK 99669 Kenai National Wildlife Refuge Penny Vadla Richard Wagner Refuge Manager 399 West Riverview Avenue PO Box 60868 PO Box 2139 Soldotna, AK 99669-7714 Fairbanks, AK 99706 Soldotna, AK 99669-2139 Cliff Burglin Bernie Karl North Slope Borough PO Box 70131 K&K Recycling Inc. PO Box 69 Fairbanks, AK 99707 PO Box 58055 Barrow, AK 99723 Fairbanks, AK 99711 Williams Thomas Arctic Slope Regional Corporation Land Department PO Box 129 ~ ~~ Barrow, AK 99723 ~ f ~1 -"0% 7.WZ MEMORANDUM STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION TO: Deborah E. Behr DATE: November 28, 2007 Chief Assistant Attorney General Legislation Regulations Section SUBJECT: Request to Open Fiie Regarding Amendments to Suspended Wells ~ // 2R0 AAC 25 110 FRO of Administration Please open a file for an Alaska Oil and Gas Conservation Commission ("Commission") project to amend Title 20, Chapter 25, Section 110 of the Alaska Administrative Code, regarding suspended wells. Enclosed is the public notice, Additional Regulations Notice Information, and proposed amendments to 20 AAC 25.110. Please assign Assistant Attorney General Alan Birnbaum to this project. The Commission's contact person is Jody Colombie; her telephone number is 793-1221. Suggested Requirements for Status Reports on Suspended Wells Problem Well status reports for suspended wells provided to the Commission every five years are dissimilar in content and do not meet the intent of 20 AAC 25.110(e). Proposed Solution For any suspended well not on a pad with active operations, the operator should be required to provide proof of a summertime physical inspection that demonstrate no gaps in the integrity of the well or the well site every five years. Risks to public health, public safety and the environment are the main drivers for this proposed regulatory change. Governing Regulations 20 AAC 25.110(e) Until a suspended well has been abandoned or re-entered, the operator shall maintain the integrity of the location, provide the commission with a well status report every five years, and clear the location in accordance with 20 AAC 25.170(a)(2) or (b) [for onshore wells] or with 20 AAC 25.172(c)(2) or (d) [for offshore wells]. 20 AAC 25.170 (a)(2) unless the operator demonstrates to the commission that the surface owner has authorized a different disposition to facilitate a genuine beneficial use, the operator shall (A) remove all materials, supplies, structures and installations from the location; (B) remove all loose debris for the location; (C) fill and grade all pits or close them in another manner approved by the commission as adequate to protect public health and safety; and (D) leave the location in a clean and graded condition. (b)If a well described in (a} of this section is located on state or federal land, and if the agency acting on behalf of the state or federal government as lessor approves a disposition different from that required under (a)(2) of this section, the commission will accept that disposition instead of requiring the operator to comply with (a)(2) of this section. Discussion There are currently 122 Alaskan wells designated suspended under 20 AAC 25.110, and 41 of these have been suspended for more than 15 years. The intent of 20 AAC 25.110(e) is to minimize risk to public health, safety and the environment by requiring a report every five years that demonstrates the integrity of each suspended well and its surrounding location. Commission senior staff has noted anon-compliance with the intent of 20 AAC 25.110(e) and dissimilar responses by operators when submitting well status reports for suspended wells every five years. We propose modifying Commission regulations to expand and standardize reporting requirements to better meet the intent of 20 AAC 25.110(e). On April 3, 2005, the Commission sent a letter to each operator requesting a suspended well report, listing the governing regulation and requesting the report provide: 1. the current mechanical condition of the well, including the condition of installed tubing and casing strings; Suggested Requirements~_ _atus Reports on Suspended Wells ~ Page 2 of 4 June 26, 2007 2. the date the well was suspended and the circumstances surrounding the decision to suspend the well; and 3. an analysis of the future utility of the well. Reports from operators varied in form and detail. Attached are two examples of reports filed (Attachments 1 and 2), with the operator information redacted from each. The differences between these reports and their degree of conformance to the intent of the Commission's regulation and letter of request demonstrate the need to standardize documentation to confirm the condition of each well and each drilling location. This is especially important for wells located off Alaska's road system, which are not readily accessible and, therefore, not visited regularly. Recommendations Commission senior staff proposes that, for every well not located on a well pad with ongoing operations, representatives from the operator and a Commission inspector visit the well and its location during the summer preceeding every fifth anniversary of the date each well was designated suspended. These representatives will inspect the wellhead and the surrounding location and record: A. the condition of the wellhead; B. the 'presence of any pressure on the wellhead (if gauges have been installed in the wellhead); C. the condition of the location including any fluid(s) or sheens) visible on the ground or in the surrounding waters; and D. photographs clearly showing the condition of the well head and the surrounding location. The operator should then provide a summary report of the findings to the Commission. That report should include each of these items and the ones identified in the April 2005 letter (and which are noted above). If a site visit was performed in advance of the suspended well reports filed in 2005, any information relating to a suspended well's condition should be submitted to the Commission with Form 10-404 within 60 days of the Commission's action on this recommendation. Conclusions Commission regulations should be modified to include standardized reporting with appropriate supporting documentation that will better meet the intent of 20 AAC 25.110(e). This will help the Commission ensure there are no problems or hazards associated with any suspended well. Operators should be required to submit documentation of past site visits relating to the status of suspended wells and the integrity of locations surrounding them. /G~ ~G~ Tom Maunder, P.E. Steve Davies Sr. Petroleum Engineer Sr. Petroleum Geologist June 26, 2007 ./g ested Requirements for Status ~orts on Suspended Wells ~ Page 3 of 4 ~une 26, 2007 ATTACHMENT 1 Suspended Wells Report from ®perator 1 V .~ Suspended Well Report ~ i wells on active pads I ; AOGCC i ~ Suspension Well Name 'Permit#! API Number Well Status ~ Back round Mechanical Condition Date Future Utility ,Notes: i ~1 ;179-~ ; 50-029-200 Suspended Exploration well. Well Top of cement at 60-ft. 4/15!1980! None. ;Well located on an 'suspended Apr80. Reported a I s;Apr85: Pressure tested to ' ~ ~ active service pad 'suspended on 1995 AOGCC :500-psi 15min. - ' ireport. ! j I ~ i 183-~ j50-029-200 ,Suspended !Suspended Dec83 with bridge Apr85: Pressure test 13 3/8" ! 2/70/1983] Observation well ;Well located on an plug in 2.875-in tubing, and 9.6j- 9 5l8" annulus. Held 500- i and/or sidetrack active service pad ~ Ilb/gal brine and diesel freeze ,psi for 15-min. 9.625-in x i ;candidate. i I protect in 4.5-in x 2.875-in '4.5-in Baker FHL packer ~ j ]annulus and 9.625-in x4.5-in j ;annulus. _4 :,196 50-029-2~-OO Suspended ;DrifledMar96.Delineationwell X10-4077May98:Three j 3!3/1996~None. Well located on an I j- 'cement plugs set. 11,800 to ! active producing pad j ~ ~ 12,500-ft MD, bridge plug + ' cement @ 4,200-ft, surface ' I i i I i wiper plug 5-ft to 250-ft. ~2A ~ 199 50-029-2~-01 ; Suspended Mar01: Attempted coil tubing iCIBP set at 8,770-ft MD. 7/13/2D03!Sidetrack candidate. Well located on an i i sidetrack. Welf flowed and Displaced well to inhibited I ! active producing pad ;killed. Stuck pipe. Cut croil. seawater and diesel freeze ! i !Well sus ended- i ratect. I ~6 185 ; S0-029-2~-00 Suspended Drilled Jun85. ESP failed ]Two cement plugs set with ~ 10/27/1993; Sidetrack candidate. i Well located on an ' Sep90. Free flowed until I EZSV retainers - 9700-ft I ~ active producing pad excess gas production with cement from 9,452 to j ~ ]necessitated suspension. ESP ]9,750-ft MD, and 10,014-ft ~ j ! (pulled and well suspended. (with cement from 9,952 to j ! i1D,018-ft MD. ' t ~5 ~ 196 ;50-029-2•-00 ;Suspended (Drilling operations suspended 1) 9.625-in casing tested to 3l23l1996iSidetrack candidate. i Well located on an ~ ;Mar96 after very poor 9.625-in 3,000-psi and float shoe with j iactive producing pad 'surtace cement job caused by :cement remains intact 2) ~ , ~ hydrates. Estimated TDC @ mud and diesel in the casing; ~ ! 2,800-ft MD. exceeds 8.6-Ib/ al BHP 3) 9 ~ j i ~ j dry hole tree tested to 5,000 ~ i ~ ~ Si. Page 1 of 2 ~ ogested Requirements for Statu~rorts on Suspended Wells ', Page 4 of 4 Tune 26.200? i ATTAC'H1VIEi~'I' 2 Suspended Wells Report from Operator 2 1 Well Status Date of Status Future Plans P&A'd 11 /27/2000 sidetracked _ suspended 4/25!1994 plans to test further suspended 4/25/1994 plans to pert suspended 4/25/1994 waiting on test results suspended 6/29/1999 shut in, no od rod. 5/18/1982 renamed suspended 4/27/2D01 sidetrack in future suspended 1 2/1 812 004 waiting to drill off-set wells P&A'd 8/8/1997 permanently abandoned suspended 4/5/2002 waiting on development drilling ^ suspended 3/17/2001 waiting on development drilling P&A'd 4/22/2005 permanently abandoned suspended 4/5/1978 wellbore has utility for operations in the future suspended 4/28/2001 development studies ongoing suspended 416!2001 development studies ongoing suspended 4/4/2001 development studies ongoing sus ended 4123 suspen a eve opment stu yes ongomg suspended 4/11/2004 development studies ongoing suspended 4!3/1983 surface P&A operations being evaluated suspended 4/1/1976 surface Pii~A operations being evaluated suspended 4/22/1977 surface P&A operations being evaluated suspended 4/3!1984 surface P&A operations being evaluated suspended 5/15/1973 wellbore has utility for operations in the future suspended 5/15/1973 addressing options for well suspended 10/10/2003 waiting on seismic survey & development studies
