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Home My WebLink AboutDIO 034ImaProject Order file Coveage 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. ~I© (~~ ~-~- Order File Identifier r r Organizing (done) ^ Two-sided ~I I II I ~) II ~) I II ~I RESC N DIGITAL DATA Color Items: ^ Diskettes, No. ^ Greyscale Items: ^ Other, No/Type: ^ Poor Quality Originals: ^ Other: ~, ae,~a. ~eea~ IIIIII!IIII'Illlf, OVERSIZED (Scannable) ^ Maps: Other Items Scannable by a Large Scanner ~~~,cJ OVERSIZED (Non-Scannable) ^ Logs of various kinds: NOTES: ^ Other:: BY: Maria Date: y ~ O /s/ Project Proofing II I II II I) I ~ III I ~ II1 BY: Maria Date: ~ ~ Q$ /s/ Scanning Preparation x 30 = + =TOTAL PAGES BY: aria Date: ~ ~ ~~(L 1~g (Count does not include cover sheet) T /s/ Production Scanning Stage 7 Page Count from Scanned File: ~ V (Count does include cover sheet) Page Count Matches Number in Scan~~nir~ng Preparation: _~~~YES _ BY: Maria Date:',.,Lfa ~8 Stage 1 If NO in stage 1, page(s) discrepancies/were found: YES BY: Maria Date: Scanning is complete at this point unless rescanning is required. NO ,s/ ~P NO ~I!IIIIIIII!IY IIII ReScanned BY: Maria Date: /s/ Comments about this file: o~a„~~e~k~ iuuiiiiiiiiiiui 1016/2005 Orders File Cover Page.doc • C. INDEX DISPOSAL INJECTION ORDER NO. 34 1. August 20, 2008 2. September 2, 2008 3. September 10, 2008 4. November 4, 2008 5. November 19, 2008 6. -------------------- 7. December 12, 2008 Marathon's application for Disposal of Class II Oilfield Waste by Underground Injection for KU 12-17 Notice of Hearing-Anchorage Daily News, affidavit of publications and mailing lists Additional information submitted by operator Marathon's addendum to Section 15 of Application Additional information submitted by operator Various e-mails Marathon's request for disposal of injection fluids (dio34-001) DISPOSAL INJECTION ORDER NO. 34 • • FILE CHECKED FOR CONFIDENTIALITY MATERIALS 12/3/2008 ~ • STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501 Re: THE APPLICATION OF Marathon Oil Company for disposal of Class II oil field wastes by underground injection in the Sterling Formation in the Kenai Unit Well 12-17, Section 17, T4N, Rl l W, S.M. Disposal Injection Order No. 34 Docket No. DIO-08-10 Sterling Formation Kenai Unit Well 12-17 November 20, 2008 NOTICE CLOSING DOCKET BY THE COMMISSION: The Commission has the closed the Docket in the above captioned matter. ENTERED AND EFFECTIVE at Anchorage, Alaska and this 20th day of November, 2008. BY DIRECTION OF THE COMMISSION to the Commission • ~ STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501 Re: THE APPLICATION OF Marathon Oil Company for disposal of Class II oil field wastes by underground injection in the Sterling Formation in the Kenai Unit Well 12-17, Section 17, T4N, Rl l W, S.M. Disposal Injection Order No. 34 Docket No. DIO-08-10 Sterling Formation Kenai Unit We1112-17 November 20, 2008 IT APPEARING THAT: 1. By correspondence received by the Alaska Oil and Gas Conservation Commission (Commission) August 22, 2008, Marathon Oil Company (Marathon) requested that the Commission issue an order authorizing underground disposal of Class II oil field waste fluids into the Sterling Formation through the Kenai Unit (KU) 12-17 wellbore. 2. Notice of opportunity for a public hearing was published in the ANCHORAGE DAILY NEws on September 2, 2008, on the State of Alaska Online Notices on September 2, 2008, and on the Commission's Web site on September 2, 2008, in accordance with 20 AAC 25.540. The scheduled hearing date was October 7, 2008. The Commission requested additional information regarding the construction of KU 12-17 on September 9, 2008. Marathon provided the requested information on September 23, 2008. 4. Marathon was requested to provide further information about the evaluation of the KU 12-17 well construction on September 23, 2008. Marathon provided the requested information on October 1, 2008 5. As part of the evaluation of the technical content of Marathon's application, the Commission requested an expanded area of review around the proposed disposal injection well. Marathon responded with additional information on November 4, 2008. 6. The Commission did not receive any comments, protests or requests for a public hearing. Disposal Injection Order 34 ~ • Page 2 of 8 KU 12-17 November 20, 2008 7. The public hearing was vacated on September 29, 2008. 8. The information submitted by Marathon and public well history records are the basis for this order. FINDINGS: 1. Location of Adiacent Wells (20 AAC 25.252(c)(1)) KU 12-17 is an existing well directionally drilled in June-July 2008 to a total depth of 5786 feet true vertical depth (TVD). The bottom hole location for KU 12-17 is in Section 17, Township 4N, Range 11 W, Seward Meridian (2823 feet from north line, 163 feet from east line). The surface location is on the Marathon-operated 41-18 drill site within the Kenai Gas Field in Section 18, Township 4N, Range 11 W (848 feet from north line, 742 feet from east line). The plat included with Marathon's application shows the location of all wells within a '/4-mile radius of KU 12-17. 2. Notification of Operators/Surface Owners (20 AAC 25.252(c~2) and 20 AAC 25.252(c)(3)) Marathon is the only operator within a '/4-mile radius of the proposed disposal well. Surface owners within a '/4-mile radius of KU 12-17 are Salamatof Native Corporation and Cook Inlet Regional Corporation. All surface owners were notified by letter regarding the proposed injection using KU 12-17 according to the "Affidavit of Notice to Surface Owners and Operators" provided by Marathon. 3. Geological Information on Disposal and Confining Zones (20 AAC 25.252(c)(4)) The Sterling Formation consists of thick, sandy, meandering stream bar deposits alternating with coals and shales. Sterling B1 and B2 are the intended injection zone, from 4002 feet to 4147 feet TVD. Porosity and permeability in the disposal interval range up to 28 percent and 1000 millidarcies, respectively. The disposal injection zone is within the aquifer exemption area defined by EPA in 40 CFR 147.102(b)(1)(iii). Marathon states that Sterling B2 (4052 feet to 4147 feet TVD) in KU 12-17 will be perforated for primary waste disposal injection. Approximately 50 feet of shale and coal immediately overlaying Sterling B 1 is identified by Marathon as providing upper confinement for injected fluids. Interpreted cross sections indicate the upper confining layer is laterally continuous across the Kenai Gas Field. Lower confinement is provided by a laterally continuous shale and coal sequence. Structure maps provided by Marathon indicate there are no transmissive faults in the drillsite 41-18 vicinity at the depths that correlate to the injection zone and confining layers. 4. Evaluation of Confining Zones (20 AAC 25.252(c)(9)) Fracture modeling specific to KU 12-17 disposal injection was not performed. Instead, Marathon indicates that the recent fracture model updates for waste disposal wells KU 11-17 and 24-07RD (which, also located on the 41-18 drill site, dispose into the Sterling Formation) appropriately characterize fracturing for planned injection into KU 12-17. The model Disposal Injection Order 34 ~ ~ Page 3 of 8 KU 12-17 November 20, 2008 updates evaluated a range of factors to determine the sensitivity of those factors to fracture dimensions. Historical performance data (i. e., rate, pressure, and fluid composition data) for the KU 11-17 and 24-07RD disposal injection wells were also used in the model updates to estimate fracture geometry for an injected volume of up to 2 million barrels. Marathon reports that similar rock and fluid properties allow these well fracture model updates to predict fracture behavior for KU 12-17. A copy of the KU fracture model update is in the Commission's files. Marathon predicts a fracture height of 200 feet, growing into the Sterling B1, and ahalf- length of 4,000 feet as the most likely case based on the fracture model updates and nearby waste injection performance in the Sterling Formation. The modeling predictions indicate neither the upper nor lower confining layers would be penetrated because of the planned injection operations in KU 12-17. Additional evidence that the confining layers would be effective barriers includes the historic injection in the Sterling Formation within the KU 11- 17,14-4, 24-07, and 24-07RD wells. 5. Standard Laboratory Water Analysis of the Formation (20 AAC 25.252(c)(10)); Aquifer Exemption (20 AAC 25.252(cZ 11)~ By regulation [40 CFR 147.102(b)(1)(iii)], EPA has exempted those portions of aquifers below 1300 feet TVD in the Kenai Gas Field. As additional confirmation, Marathon provided the water analysis for a Sterling Formation water sample taken from KU 14-6 indicating total dissolved solids greater than 10,000 mg/1. 6. Well Logs (20 AAC 25.252(c)(5)) Log data from KU 12-17 are on file with the Commission. 7. Demonstration of Mechanical Integrity and Disposal Zone Isolation (20 AAC 25.252(c)(6)) KU 12-17 was drilled to be a Class II waste disposal injector. The well was completed in July 2008, and operations were suspended without perforating, pending approval of the disposal injection order. The well was directionally drilled south to a depth of 5786 feet TVD; constructed with 20-inch conductor casing set at 189 feet TVD, 10-3/4-inch surface casing set at 1492 feet TVD, and 7-5/8-inch production casing set at 5786 feet TVD; and plugged back to 5682 feet TVD. The injection completion will consist of 4.5-inch injection tubing run to 3896 feet TVD and a permanent packer installed at 3865 feet TVD, thereby establishing the Sterling Formation as the intended zone for underground injection control (UIC) Class II disposal. The surface casing is cemented from shoe depth to the surface. The production casing is constructed with sufficient cement to cover from total depth to 2517 feet TVD. Cement bond log was run in KU 12-17 to evaluate the cement placement and bond integrity of the casing string isolating the planned injection zone. Marathon evaluated the 7-5/8-inch casing interval with a cement bond log from 5680 feet to 2373 feet TVD. An estimated cement top of 2586 feet TVD with good to excellent cement bond is interpreted from the log Disposal Injection Order 34 ~ ~ Page 4 of 8 KU 12-17 November 20, 2008 data. Cement bond appears to be excellent throughout, above and below the proposed Sterling B1 and B2 injection zone. The interpreted top of the cement is approximately 360 feet above the top of the upper confining zone. A mechanical integrity test will be performed before injection commences and at intervals required by the Commission. Marathon will continuously monitor wellhead pressures using a supervisory-controlled automated data acquisition system supplemented with daily visual inspections and pressure recordings. Additionally, Marathon indicates that annual due diligence reviews will be performed for all active slurry injection on the 41-18 drill site that will include pressure trend data and fracture modeling updates. 8. Disposal Fluid Type Composition Source Volume and Compatibility with Disposal Zone (20 AAC 25.252(c)(7)) KU 12-17 will be the third active waste disposal well on the KU 41-18 drill site injecting into the Sterling Formation; there are another three active waste disposal wells within the Kenai Gas Field (2 Kenai Gas Field waste disposal wells are plugged and abandoned). Marathon intends to use KU 12-17 to dispose of drilling, production, completion, and workover wastes originating from exploration and development well activities on the Kenai Peninsula in a manner and to an extent that is similar to the use of the other KU 41-18 drill site waste disposal wells. Marathon projects the injection volume into KU 12-17 could exceed 1,000,000 barrels of Class II wastes over the expected life of the field. Marathon expects the injection rate to average 1000 barrels per day (with a maximum injection rate of 7200 barrels per day), with rates of up to 5 barrels per minute. The expected performance is less than the injection performance used in fracture modeling for this project. No compatibility concerns relating to the injected fluids and in-situ formation fluids have been identified by Marathon while injecting more than 6.5 million barrels of Class II wastes into the KU disposal wells. 9. Estimated Infection Pressures (20 AAC 25.252(c)(8)) Marathon estimates that the average surface injection pressure will be 1600 psig. The maximum surface injection pressure is limited by the 3000 psig working pressure of the injection pump, which is equipped with a 2400 psig pressure safety relief valve. 10. Mechanical Condition of Wells Penetrating the Disposal Zone Within '/4-Mile of KU 12-17 (20 AAC 25.252(c)(12)) No wells penetrate the Sterling Formation within a'/4-mile radius of KU 12-17. The fracture modeling results led the Commission to request a larger area of review-i.e., a radius equivalent to the 4000-foot fracture half-length around the proposed disposal well-to evaluate the mechanical condition of wells penetrating the disposal zone. Eleven wells were identified: 8 wells within the Kenai Unit (KU 11-17, 14-8, 24-7, 24-7RD, 41-18, 41-18X, 41-19, and 44-18); and 3 wells within the Kenai Beluga Unit (KBU 13-8, 24-7X, and 33-7). Marathon indicates the cement and casing in each of the wells appear to be adequate to prevent the movement of injected fluids outside of the disposal zone. Disposal Injection Order 34 ~ ~ Page 5 of 8 KU 12-17 November 20, 2008 CONCLUSIONS: 1. The requirements and conditions for approval of an underground disposal application in 20 AAC 25.252 are met. 2. The Sterling disposal zone is approximately 145 feet thick. Upper confinement will be provided by a 50-foot shale and coal sequence that is shown on structural cross sections derived from logging data to be laterally continuous across the field. Lower confinement of injected fluids will be provided by a shale and coal sequence that is also laterally continuous across the field. No significant faults are in the vicinity of the proposed operations. Past injection operations into Sterling B1 and B2 in active disposal injection wells located on the KU 41-18 drill site show the confining layers are effective barriers to fluid movement. 3. Kenai Gas Field aquifers below 1300 feet TVD are exempted by EPA as underground sources of drinking water for Class II injection activities. See 40 CFR 147.102(b)(1)(3). The total dissolved solids content of the water within Sterling B 1 and B2 exceeds 10,000 mg/1. 4. Commercial gas accumulations are in the Sterling Formation in other parts of the KU. In the section of the Sterling penetrated by KU 12-17, all intervals but the deepest-i. e., Sterling Poo16-are water wet. Fracture height growth will not likely reach Sterling Poo16. 5. For disposal operations, fluid compatibility in the Sterling B 1 and B2 is not an issue. Operating experience and data from disposal injection involving similar materials and performance parameters (i. e., pressures, rates, and volumes) elsewhere within the Kenai Unit Sterling Formation provide an analogy for underground disposal in KU 12-17. 6. Based on the modeled injection rates in nearby waste disposal injectors operating analogously to what is planned for KU 12-17, reasonable grounds exist to conclude that waste fluids should be contained within the proposed disposal zone by the lithologies above and below the Sterling B1 and B2, cement isolation of the wellbore, and operating conditions. Modeling predicts a zone of influence (i. e. , waste plume area) for injected materials equal to a fracture domain extending approximately 4,000 feet laterally from the well. The Commission concurs with Marathon's assessment that the casing, cement, and cement evaluation tool records indicate that all wells penetrating the disposal zone within an area of review described by a 4000-foot radius around KU 12-17 have sufficient mechanical integrity to prevent the migration of injected fluids outside of the proposed disposal zone. 7. Disposal injection operations in KU 12-17 will be conducted at rates and pressures below those estimated to fracture through the confining zones. Therefore, oil field wastes injected into KU 12-17 will be confined to the isolated Sterling B1 and B2. 8. Supplemental mechanical integrity demonstrations and the surveillance of injection operations-including temperature surveys, monitoring of injection performance (i. e. , pressures and rates), and analyses of the data for indications of anomalous events-are appropriate to ensure that waste fluids remain within the disposal interval. Disposal Injection Order 34 KU 12-17 November 20, 2008 Page 6 of 8 NOW, THEREFORE, IT IS ORDERED THAT disposal injection is authorized into the Sterling Formation within Kenai Unit Well 12-17 subject to each of the following requirements: RULE 1: Infection Strata for Disposal The underground disposal of Class II well oil field waste fluids is permitted into the Sterling Formation within KU 12-17 in the interval from 4002 feet to 4147 feet TVD. The Commission may immediately suspend, revoke, or modify this authorization if injected fluids fail to be confined by the upper or lower confining zone. RULE 2: Fluids This authorization is limited to Class II oil field waste fluids generated during drilling, production or workover operations. RULE 3: Infection Rate and Pressure Disposal injection is authorized at (a) rates that do not exceed 5 barrels per minute and (b) surface pressures that do not exceed 2400 psig. RULE 4: Demonstration of Mechanical Integrity The mechanical integrity of KU 12-17 must be demonstrated before injection begins and before returning the well to service following a workover affecting mechanical integrity. A Commission-witnessed mechanical integrity test must be performed after injection is commenced for the first time in KU 12-17; that test must be scheduled when injection conditions (temperature, pressure, rate, etc.) have stabilized. Subsequent mechanical integrity tests must be performed at least once every two years after the date of the first Commission-witnessed test. The Commission must be notified at least 24 hours in advance of each such test to enable a representative to witness the test. Unless an alternate means is approved by the Commission, mechanical integrity must be demonstrated by a tubing/casing annulus pressure test that meets the following conditions: (1) pressure of either 1,500 psig or 0.25 psi/ft. multiplied by the vertical depth of the packer, whichever is greater is applied; (2) the test shows stabilizing pressure; and (3) pressure does not change more than 10 percent during a 30-minute period. The results of all mechanical integrity demonstrations and Marathon interpretation of those results shall be provided to the Commission and be readily available for Commission inspection. RULE 5: Well Integrity Failure and Confinement Whenever any pressure communication, leakage or lack of injection zone isolation is indicated by the injection rate, an operating pressure observation, a test, a survey, a log, or any other evidence, the operator shall notify the Commission by the next business day and submit a plan of corrective action on Form 10-403 for Commission approval. The operator shall immediately shut in the well if continued operation would be unsafe or threaten contamination of freshwater, or if so directed by the Commission. A monthly report of daily tubing and casing annuli pressures and injection rates must be provided to the Commission for KU 12-17 indicating any well integrity failure or lack of injection zone isolation. Disposal Injection Order 34 ~ ~ Page 7 of 8 KU 12-17 November 20, 2008 RULE 6: Surveillance The operator shall run a baseline temperature log and perform a baseline step-rate test prior to initial injection. A subsequent temperature log must be run one month after injection begins to delineate the receiving zone of the injected fluids. Surface pressures and rates must be monitored continuously during injection for any indications of anomalous conditions. Results of daily wellhead pressure observations in KU 12-17 must be documented and available to the Commission upon request. The conduct of subsequent temperature surveys or other surveillance logging (e.g., water flow; acoustic) will be based on the results of the initial and follow-up temperature surveys and injection performance monitoring data. A report evaluating the performance of the disposal operation must be submitted to the Commission by July 1 of each year. The report shall include data sufficient to characterize the disposal operation, including, among other information, the following: injection and annuli pressures (daily average, maximum and minimum); fluid volumes injected (disposal and clean fluid sweeps); injection rates; an assessment of fracture geometry; a description of any anomalous injection results; and a calculated zone of influence for the injection fluids. Wellhead pressures shall be monitored daily and maintained for KU 41-18 drill site wells penetrating the disposal zone within an area of review described by a 4000-foot radius around KU 12-17. Pressure records shall be made available for inspection upon Commission request. The annual surveillance report shall include for these KU 41-18 drill site wells a summary wellhead pressure plot and an assessment of their mechanical integrity. RULE 7: Notification of Improver Class II Infection The operator must immediately notify the Commission if it learns of any improper Class II injection. Complying with the notification requirements of any other local, state or federal agency remains the operator's responsibility. RULE 8: Administrative Action Unless notice and public hearing are otherwise required, the Commission may administratively waive or amend any rule stated above as long as the change does not promote waste or jeopardize correlative rights, is based on sound engineering and geoscience principles, and will not result in fluid movement outside of the authorized injection zone. Disposal Injection Order 34 KU 12-17 November 20, 2008 Page 8 of 8 RULE 9: Compliance Operations must be conducted in accordance with the requirements of this order, AS 31.05, and (unless specifically superseded by Commission order) 20 AAC 25. Noncompliance may result in the suspension, revocation, or modification of this authorization. ENTERED at Anchorage, Alaska, a 5K4 O/r / _.. ~ ~.~ --~.• J i ~ ~~ ~f1~ t :0~~~_ RECONSIDERATION AND APPEAL NOTICE As provided in AS 31.05.080(a), within 20 days after written notice of the entry of this order or decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for reconsideration of the matter determined by it. If the notice was mailed, then the period of time shall be 23 days. An application for reconsideration must set out the respect in which the order or decision is believed to be erroneous. The Commission shall grant or refuse the application for reconsideration in whole or in part within 10 days after it is filed. Failure to act on it within 10-days is a denial of reconsideration. If the Commission denies reconsideration, upon denial, this order or decision and the denial of reconsideration are FINAL and may be appealed to superior court. The appeal MUST be filed within 33 days after the date on which the Commission mails, OR 30 days if the Commission otherwise distributes, the order or decision denying reconsideration, UNLESS the denial is by inaction, in which case the appeal MUST be filed within 40 days after the date on which the application for reconsideration was filed. If the Commission grants an application for reconsideration, this order or decision does not become final. Rather, the order or decision on reconsideration will be the FINAL order or decision of the Commission, and it may be appealed to superior court. That appeal MUST be filed within 33 days after the date on which the Commission mails, OR 30 days if the Commission otherwise distributes, the order or decision on reconsideration. As provided in AS 31.05.080(b), "[t]he questions reviewed on appeal are limited to the questions presented to the Commission by the application for reconsideration." In computing a period of time above, the date of the event or default after which the designated period begins to run is not included in the period; the last day of the period is included, unless it falls on a weekend or state holiday, in which event the period runs until 5:00 p.m. on the next day that does not fall on a weekend or state holiday. Cathy P. F erster, Commissioner 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 Mark Wedman Schlumberger Ciri Halliburton Drilling and Measurements Land Department 6900 Arctic Blvd. 2525 Gambell Street #400 PO Box 93330 Anchorage, AK 99502 Anchorage, AK 99503 Anchorage, AK 99503 Baker Oil Tools Ivan Gillian Jill Schneider 4730 Business Park Blvd., #44 9649 Musket Bell Cr.#5 US Geological Survey Anchorage, AK 99503 Anchorage, AK 99507 4200 University Dr. Anchorage, AK 99508 Gordon Severson Jack Hakkila Darwin Waldsmith 3201 Westmar Cr. PO Box 190083 PO Box 39309 Anchorage, AK 99508-4336 Anchorage, AK 99519 Ninilchick, AK 99639 James Gibbs Kenai National Wildlife Refuge Penny Vadla PO Box 1597 Refuge Manager 399 West Riverview Avenue Soldotna, AK 99669 PO Box 2139 Soldotna, AK 99669-7714 Soldotna, AK 99669-2139 Richard Wagner Cliff Burglin Bernie Karl PO Box 60868 PO Box 70131 K&K Recycling Inc. Fairbanks, AK 99706 Fairbanks, AK 99707 PO Box 58055 Fairbanks, AK 99711 North Slope Borough PO Box 69 Barrow, AK 99723 G1/IL~C~ ~~~~~ Page 1 of 1 Colombie, Jody J (DOA) From: Colombie, Jody J (DOA) Sent: Thursday, November 20, 2008 2:16 PM Subject: co608 (KRU) and dio34 (KU) Attachments: dio34.pdf; co608.pdf BCC:'Aaron Gluzman'; caunderwood@marathonoil.com; 'Dale Hoffman'; Fridiric Grenier; 'Joe Longo'; 'Lamont Frazer'; Marc Kuck; 'Mary Aschoff; Maurizio Grandi; P Bates; Richard Garrard; 'Sandra Lemke'; 'Scott Nash'; 'Steve Virant'; Tom Gennings; 'Willem Vollenbrock'; 'William Van Dyke'; Woolf, Wendy C (DNR); 'Aleutians East Borough'; 'Anna Raff; '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'; 'Charles O'Donnell'; 'Chris Gay'; 'Cliff Posey'; 'Dan Bross'; 'dapa'; 'Daryl J. Kleppin'; 'David Brown'; 'David Hall'; David House; 'David L Boelens'; 'David Steingreaber'; 'ddonkel'; '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'; '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'; 'Marguerite kremer'; 'Matt Rader'; Melanie Brown; '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'; 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) Attachments: dio34.pdf;co608.pdf; Jody J. Colombie Special Assistant to the Commission Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501 (907) 793-1221 Direct Line (907) 276-7542 Fax 11/20/2008 • • o ~ d b o SARAH PALIN, GOVERNOR ALASSA OIL A1`D G ~ 333 W 7th AVENUE, SUITE 100 COI~TSI,iRQA7`IO1~T COI~IDIISSIOI~T ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 ADMINISTRATIVE APPROVAL NO. DIO 34.001 Mr. Lyndon Ibele Production Coordinator Marathon Oil Company P.O. Box 196168 Anchorage, AK 99519-6168 Re: Disposal Injection Fluids DIO 34 Dear Mr. Ibele: Disposal Injection Order (DIO) 34 approved the injection of Class II waste fluids into the Sterling formation within Kenai Unit (KU) Well 12-17. Verbally on December 10, 2008 and by electronic mail on December 12, 2008, Marathon Oil Company (Marathon) requested clarification concerning the fluids eligible for Class II disposal injection. Marathon's specific request to include precipitation that accumulates within containment areas and pad storm water retention basins associated with exploration and development activities is APPROVED. In its DIO application, Marathon provided a partial list of fluids it considers eligible for Class II disposal injection based on an exemption to the Resource Conservation Recovery Act (RCRA), i.e., EPA Publication 530-K-95-003 (May 1995), Crude Oil and Gas Exploration and Production Wastes: Exemption from RCRA Subtitle C Regulations. Typical waste streams Marathon considers RCRA exempt and Class II disposal eligible include drilling, completion, workover fluids; glycol dehydration wastes; drilling mud slurries; tank bottoms; pipe scale (including naturally occurring radioactive material); precipitation within containment areas and pad storm water retention basins; drum rinsate; equipment wash water; and soil and organic materials that are contaminated with crude oil or natural gas liquids. Rule 2 of DIO 34 authorizes the disposal injection of "Class II oil field waste fluids generated during drilling, production or workover operations." The Commission's use of the broad term "Class II oil field waste fluids" is intended to cover those fluids obviously eligible for Class II disposal injection (fluids returned to surface from downhole), and to allow for other fluids to be injected into KU 12-17 that the Commission deems appropriate on a case by case basis. The Commission agrees with Marathon's position that the fluids listed in the RCRA exemption are eligible for Class II disposal injection. Marathon operates several production pads and facilities on the Kenai Peninsula, each with a variety of secondary containment areas designed to capture any release of solid and liquids that could result in pollution. Secondary containment areas include but are not limited to areas around drilling rigs; grind and inject equipment; drilling and production material storage; well cellars; reserve pits; and pad storm water retention basins. Materials within these secondary containment areas include both fluids that have been downhole or are intended to be placed in the well to accomplish a specific purpose. The volume of DIO 34.001 • . December 17, 2008 Page 2 of 2 precipitation that collects within these areas can be significant. Recovered fluids from secondary containment areas can provide some beneficial reuse (e.g., periodic flushes of KU 12-17; make-up water for injected solids-laden slurries). Confinement of fluids to the intended .injection zone in KU 12-17 has been evaluated and is a basis for approved DIO 34. Well integrity has been demonstrated by evaluating the well construction (cement and casing). Required pressure testing of the well's tubing-casing annulus prior to injection and monitoring the well's tubing and annuli pressures during injection will confirm the well's mechanical integrity. The disposal injection of precipitation and any spilled materials recovered from secondary containment areas - as noted above -into KU 12-17 will have no detrimental effect on the confinement of fluids. Well integrity and correlative rights will not be negatively impacted because of the proposed inclusion of the recovered precipitation and any spilled materials in the disposal injection fluid stream. Waste will also not occur because of the addition of recovered fluids from the secondary containment/production impoundment areas. Approval applies only to this specific request and is not intended to provide for a blanket authorization to inject these or similar non-hazardous fluids down other Class II disposal wells. :~ DONE at Anchorage, Alaska and dated December 17, 2008. f ti, ~,~~ ` ~- x ~ ~ ~- U Ca by P oerster Commi sinner w .~ = r~-.r ~ .tit ~, 't ~~:` RECONSIDERATION AND APPEAL NOTICE As provided in AS 31.05.080(x), within 20 days after written notice of the entry of this order or decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for reconsideration of the matter determined by it. If the notice was mailed, then the period of time shall be 23 days. An application for reconsideration must set out the respect in which the order or decision is believed to be erroneous. The Commission shall grant or refuse the application for reconsideration in whole or in part within 10 days after it is filed. Failure to act on it within 10-days is a denial of reconsideration. If the Commission denies reconsideration, upon denial, this order or decision and the denial of reconsideration are FINAL and may be appealed to superior court. The appeal MUST be filed within 33 days after the date on which the Commission mails, OR 30 days if the Commission otherwise distributes, the order or decision denying reconsideration, UNLESS the denial is by inaction, in which case the appeal MUST be filed within 40 days after the date on which the application for reconsideration was filed. If the Commission grants an application for reconsideration, this order or decision does not become final. Rather, the order or decision on reconsideration will be the FINAL order or decision of the Commission, and it may be appealed to superior court. That appeal MUST be filed within 33 days after the date on which the Commission mails, OR 30 days if the Commission otherwise distributes, the order or decision on reconsideration. As provided in AS 31.05.080(6), "[t]he questions reviewed on appeal are limited to the questions presented to the Commission by the application for reconsideration." In computing a period of time above, the date of the event or default after which the designated period begins to run is not included in the period; the last day of the period is included, unless it falls on a weekend or state holiday, in which event the period runs until 5:00 p.m. on the next day that does not fall on a weekend or state holiday. • • 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 Mark Wedman Schlumberger Ciri Halliburton Drilling and Measurements Land Department 6900 Arctic Blvd. 2525 Gambell Street #400 PO Box 93330 Anchorage, AK 99502 Anchorage, AK 99503 Anchorage, AK 99503 Baker Oil Tools Ivan Gillian Jill Schneider 4730 Business Park Blvd., #44 9649 Musket Bell Cr.#5 US Geological Survey Anchorage, AK 99503 Anchorage, AK 99507 4200 University Dr. Anchorage, AK 99508 Gordon Severson Jack Hakkila Darwin Waldsmith 3201 Westmar Cr. PO Box 190083 PO Box 39309 Anchorage, AK 99508-4336 Anchorage, AK 99519 Ninilchick, AK 99639 James Gibbs Kenai National Wildlife Refuge Penny Vadla PO Box 1597 Refuge Manager 399 West Riverview Avenue Soldotna, AK 99669 PO Box 2139 Soldotna, AK 99669-7714 Soldotna, AK 99669-2139 Richard Wagner Cliff Burglin Bernie Karl PO Box 60868 PO Box 70131 K&K Recycling Inc. Fairbanks, AK 99706 Fairbanks, AK 99707 PO Box 58055 Fairbanks, AK 99711 North Slope Borough PO Box 69 Barrow, AK 99723 {'~ai / ~/ • • Colombie, Jody J (DOA) From: Colombie, Jody J (DOA) Sent: Thursday, December 18, 2008 8:25 AM Subject: aio3-023 (PBU) and dio34-001(KU) Attachments: aio3-023.pdf; dio34-001.pdf Page 1 of 1 BCC:'Aaron Gluzman'; caunderwood@marathonoil.com; 'Dale Hoffman'; Fridiric Grenier; 'Gary Orr'; 'Joe Longo'; 'Lamont Frazer'; Marc Kuck; 'Mary Aschoff; Maurizio Grandi; P Bates; Richard Garrard; 'Sandra Lemke'; 'Scott Nash'; 'Steve Virant'; Tom Gennings; 'Willem Vollenbrock'; 'William Van Dyke'; Woolf, Wendy C (DNR); 'Aleutians East Borough'; 'Anna Raff; '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'; 'Charles O'Donnell'; 'Chris Gay'; 'Cliff Posey'; 'Dan Bross'; 'dapa ; 'Daryl J. Kleppin'; 'David Brown'; 'David Hall'; David House; 'David L Boelens'; 'David Steingreaber'; 'ddonkel'; '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'; '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'; 'Marguerite kremer'; 'Matt Rader'; Melanie Brown; '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'; Von Gemmingen, Scott E (DOR); 'Walter Featherly'; 'Walter Quay'; 'Wayne Rancier'; 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) Attachments:aio3-023.pdf;dio34-001.pdf; Jody J. Colombie Special Assistant to the Commission Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501 (907) 793-1221 Direct Line (907) 276-7542 Fax 12/18/2008 ~ 7 KU 12-17 DIO 34 • • Regg, James B (DOA) From: Miranda, Kyle [kmiranda@marathonoil.com] Sent: Friday, December 12, 2008 4:58 PM To: Regg, James B (DOA) Subject: KU 12-17 DIO 34 Jim Regg, Page 1 of 1 stormwater is not currently listed as an authorized injection fluid into well KU 12-17. Marathon requests that stormwater be added to the fist of fluids approved for injection into well KU 12-17. Marathon plans to inject Class Il oil field waste fluids as previously approved on the DIO 34, as well as stormwater. This inclusion would fall under DIO 34, Rule 2. Thank you, Kyle Miranda Production Engineer I Marathon Oil Company-Alaska Asset Team 907-2$3-1370 (office) 907-394-6271 (cell) N'Ut~ d ~~ , ~~J~Jzt~s~ ~c ~ fie. L~ ~,t, T ~ lCr..((e ~(. , ~~.~ c~ ~~ ~~ ~Zl,~l 1211 si2oog ~~ • • Colombie, Jody J (DOA) From: Regg, James B (DOA) Sent: Thursday, November 20, 2008 9:45 AM To: Walsh, Ken Cc: Ibele, Lyndon; Skiba, Kevin J. Subject: RE: Emailing: ku 12-17.pdf Thank you for the information; I believe the DIO for KU 12-17 is being reviewed by the Commissioners and could be signed within the next few days. Jim Regg AOGCC 333 W.7th Avenue, Suite 100 Anchorage, AK 99501 907-793-1236 -----Original Message----- From: Walsh, Ken [mailto:kdwalsh@marathonoil.com] Sent: Wednesday, November 19, 2008 1:45 PM To: Regg, James B (DOA) Cc: Ibele, Lyndon; Walsh, Ken; Skiba, Kevin J. Subject: Emailing: ku 12-17.pdf «ku 12-17 . pdf» Jim, Attached please find a letter response to you regarding the estimated cement top information that you requested over the phone last week. This information is additional to the DIO application for the KU 12-17 slurry injector and is in support of the application. Please let me know if you need anything else to help expedite the processing of this DIO. Sincerely, Ken Ken D. Walsh Senior Production Engineer Marathon Oil Company-Alaska Asset Team 907-283-1311 (office) 907-394-3060 (cell) 1 Page 1 of 2 Regg, James B (DOA) From: Maunder, Thomas E (DOA) Sent: Friday, October 03, 2008 8:14 AM To: Regg, James B (DOA) Subject: FW: KU 12-17 (208-089) DIO Assessment from Marathon as requested. From: Walsh, Ken [mailto:kdwalsh@marathonoil.com] Sent: Wednesday, October 01, 2008 1:41 PM To: Maunder, Thomas E (DOA) Cc: Skiba, Kevin J.; Ibele, Lyndon Subject: RE: KU 12-17 (208-089) DIO Tam, Ken D. aisn Senior Production Engineer Marathon Oil Company-Alaska Asset Team 907-283-1311 (office) 10/3/2008 Page 2 of 2 907-394-3060 (aell) .,~..~ From: Ibele, Lyndon Sent: Tuesday, September 23, 2008 9:06 AM To: Walsh, Ken Cc: Skiba, Kevin J. Subject: RE: KU 12-17 (208-089) DIO I spoke to Tam, he just wants us to send a brief assessment of our interpretation of the cement band integrity. Please put this on year short list far the next week. Shouldn't be much more than a paragraph or two. I also asked if a hearing has been requested; he was net sure. From: Maunder, Thomas E (DOA) [mailto:tom.maunder@alaska.gov] Sent: Tuesday, September 23, 2008 8:53 AM To: Ibele, Lyndon; Skiba, Kevin J. Cc: Regg, James B (DOA) Subject: RE: KU 12-17 (208-089) DIO Lyndon, Thanks for supplying the operations reports and bond log for this well. The operations summary is interesting, it appears that the 9-7/8" hole was drilled with significantly more "hole problems" than I remember when compared with other recent wells although I can't say that I remember many others drilled recently from this same pad. With regard to KU 12-17, would you please have one of your engineers supply an assessment of the external isolation as evidenced by the operations summary and bond log? Thanks in advance. Call or message with any questions. Tom Maunder, PE AOGCC From: Maunder, Thomas E (DOA) Sent: Tuesday, September 09, 2008 2:38 PM To: Ibele, Lyndon Cc: Regg, James B (DOA) Subject: KU 12-17 (208-089) DIO Lyndon, AOGCC Staff is completing review of Marathon's application for the KU 12-17 DIO. As part of that review, we need to confirm the construction of the well. At this time it is understood that mechanical construction has been completed however the well has not been perforated. In order to allow the well construction to be reviewed, would you or one of your colleagues please submit copies of the daily operations report for the well and the bond log? It is acceptable to send the operations reports and log via email. Thanks in advance. Call or message with any questions. Tom Maunder, PE AOGCC 10/3/2008 Page 1 of 1 • • Maunder, Thomas E (DOA) From: Colombie, Jody J (DOA) Sent: Friday, September 12, 2008 3:00 PM To: Regg, James B (DOA); Maunder, Thomas E (DOA) Subject: Dl0 Kenai 12-17 I received in the mail today operations summary covering the work completed to-day and Bond log from Marathon for the above well. Jody J. Colombie Special Assistant to the Commission Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501 (907) 793-1221 Direct Line (907) 276-7542 Fax 9/16/2008 Page 1 of 1 • • Maunder, Thomas E (DOA) From: Maunder, Thomas E (DOA) Sent: Tuesday, September 09, 2008 2:38 PM To: Ibele, Lyndon Cc: Regg, James B (DOA) Subject: KU 12-17 (208-089) DIO Lyndon, AOGCC Staff is completing review of Marathon's application for the KU 12-17 DIO. As part of that review, we need to confirm the construction of the well. At this time it is understood that mechanical construction has been completed however the well has not been perforated. In order to allow the well construction to be reviewed, would you or one of your colleagues please submit copies of the daily operations report for the well and the bond log? It is acceptable to send the operations reports and log via email. Thanks in advance. Call or message with any questions. Tom Maunder, PE AOGCC 9/16/2008 Page 1 of 1 • • Maunder, Thomas E (DOA) From: Maunder, Thomas E (DOA) Sent: Tuesday, September 09, 2008 11:52 AM To: Regg, James B (DOA); Saltmarsh, Arthur C (DOA); Williamson, Mary J (DOA) Subject: RE: Kenai Unit 12-17 DIO All, I just completed reviewing the DIO. I agree with Jim, it looks pretty complete. I did add a few "stickies" with some questionsJcomments. Most are editorial in style. So far as I know, Marathon has not submitted the 407 nor the specific cementing records or bond log. I will pass to Jane for review. Tom From: Regg, James B (DOA) Sent: Thursday, August 28, 2008 3:10 PM To: Maunder, Thomas E (DOA); Saltmarsh, Arthur C (DOA); Williamson, Mary J (DOA) Subject: Kenai Unit 12-17 DIO Copy is circulating for your review. Application appears to be complete, so I have begun working on draft injection order. Jody is working on hearing notice. Jim Regg AOGCC 333 W.7th Avenue, Suite 100 Anchorage, AK 99501 907-793-1236 9/16/2008 ~5 Marathon M . MARATHON OBI Company November 19, 2008 .Marathon Oil Company Alaska Asset Team P.O. Box 1949 Kenai, AK 99611 Telephone 907/283-1371 Fax 907/283-1350 Mr. Jim Regg ~- Alaska Oil & Gas Conservation Commission 333 West 7th Avenue Anchorage, Alaska 99501 ~.' , ; Reference: Marathon Oil Company Application for Authorization to Inject Class II Waste Fluids Well KU 12-17 Reauest for Additional Information Dear Mr. Regg, In a telephone conversation last week, you requested cement top information for wells operated by Marathon Oil Company whose wellbores are within a 4000 foot radius of the KU #12-17 well. I had previously stated in a letter to you dated November 4, 2008, with specific reference to an addendum to Section 15 of Marathon's DIO Application, that there are a total of eleven wellbores within the 4000 foot radius. You said that you did not require the cement top information for the three P&A'd wellbores; KU 24-7, KU 44-18, and KU 41-19. You also said that you had completed research on the KU 24-7rd and KU 11- 17injection wells and did not need cement top information for those two wells. The requested cement top information for the six remaining well bores is provided below. Permit to Drill Estimated Source of Information Well Name Number Cement Top for Cement Top Estimate KBU 14-8 208-048 5116' MD Expro CBL of 06-02-2008 KBU 13-8 177-029 Surface Morning Report of 8/7/77 KBU 24-7X 206-127 4304' MD Expro CBL of 11-18-2006 KBU 33-7 185-181 4530' MD Morning Report of 12/15/85 KBU 41-18X 208-126 4570' MD Expro CBL of 04-22-2008 KU 41-18 171-010 Surface Morning Report of 6/26/71 If you have any additional questions, or need additional information, please feel free to call Ken Walsh at 907-283-1311. Sincerely, ;>n /'`~ ~'~y ~ 1 ~_-~-_ Ken D. Walsh Senior Production Engineer Marathon Oil Company • Cc: Houston Well File Kenai Well File B. Schoffmann L. Ibele K. Walsh K. Skiba • ~ 4 ~, ` M Marathon MARATHON Oil Company November 4, 2008 • j . . , ~ "~. ^, Mr. Jim Regg Alaska Oil & Gas Conservation Commission 333 W 7th Ave Anchorage, Alaska 99501 Marathon Oil Company Alaska Asset Team P.O. Box 1949 Kenai, AK 99611 Telephone 907/283-1311 Fax 907/283-1350 Reference: Marathon Oil Company Application for Authorization to Inject Class II Waste Fluids Well KU 12-17 Addendum to Section 15 Mechanical Integrity of Other Wells Within 4000ft. Radius (20 AAC 25.252)(c)(12) and (h)) Dear Mr. Regg: Marathon Oil Company respectfully submits this letter as an addendum to the application dated August 20, 2008. Per your request, Section 15 is amended as follows to address the mechanical integrity of all wells within the expected fracture half-length of 4000' radius, rather than the %4 mile radius specified under statute. Please supplement Marathon's application by replacing Section 15 with the following: Mechanical Integrity of Other Wells Within 4000ft. Radius (20 AAC 25.252)(c)(12) and (hU Reference is made within Section 11 Waste Confinement and Fracture Information under the subheadings Wells 24-7 and KU 24-7RD and Well KU 12-17 on pages #9 and #10 within this application to a most likely fracture half- length of 4000 feet. Not including the KU 12-17, there are eleven wellbores in the Kenai Gas Field (KGF) that have all or a portion of their trajectories within this 4000 foot radius of the KU 12-17 well path. These wells include KU 11-17, KU 41-18, KBU 13-8, KBU 33-7, KBU 24-7X, KBU 24-7, KBU 24-7rd, KBU 41- 18X, KBU 14-8, KU 44-18, and KU 41-19. An engineering review of the well construction and mechanical integrity of these eleven offset wells was performed, including a review of the cement bond quality across the equivalent Sterling injection intervals proposed for the KU 12-17. The cement and casing in each of the wells appear to be adequate to prevent cross flow of injected fluids outside of the intended injection zone. As referenced in Section 11, inner and outer annulus pressures for all wells on Pad 41-18 (which includes all wells within a 4000 ft radius of KU 12- 17), are recorded daily during all injection cycles, and annulus pressures for all other wells throughout the Kenai Gas Field are read and recorded weekly. Fracture confinement and the mechanical integrity of offset wells are .continuously monitored in this manner. w ~ ~ . November 4, 2008 Mr. Jim Regg Alaska Oil & Gas Conservation Commission Page 2 Thank you for the opportunity to amend this application. If you have any additional questions, or need additional information, please feel free to call Ken Walsh at 907-283-1311. Sincerely, Ken D. Walsh. Senior Production Engineer Marathon Oil Company cc: Houston Well File Kenai Well File B. Schoffmann L. Ibele K. Skiba ~3 M Marathon MARATHON Oil Company • ~~~~, ~~ ~cF ~ ~ 2008 Marathon Oil Company Alaska Asset Team P.O. Box 1949 Kenai, AK 99611 Telephone 907/283-1371 Fax 907/283-1350 September 10, 2008 Mr. Tom Maunder Alaska Oil & Gas Conservation Commission 333 W 7t" Ave Anchorage, Alaska 99501 Field: Kenai Gas Field Well: Kenai Unit 12-17 Dear Mr. Maunder: I was informed that the AOGCC needed additional information to complete the DIO application review for KU 12-17 well. Enclosed please find the KU 12-17 Bond Log and Operations Summary, covering the work completed to-date. Please contact me at (907) 283-1371 if you have any questions or require additional information. Sincerely, .~ Kevin J. Skiba Engineering Technician Enclosures: Operations Summary Expro Dual Receiver Cement Bond Gamma/CCL Log M IVlara'thon ~ Operations Summary Report raaaTxoM ®Oil(~~/ Well Name: KENAI UNIT 12-17 Qtr/Qtr, Block, Sec, Town, Range Field Name License No. State/Province Country KENAI ALASKA USA Daily Operations Report Date: 6/19/2008 Job Cate o DRILLING 24 Hr Summary MIRU GD1 over slot KU 12-17. o KU12-17 06:00 hrs on 6/18/08. Ops Trouble Start Time End Time Our (hrs) I Ops Code Activity Code , Status Code Comment 06:00 12:00 6.00 RURD RIG AF __ PJSM w/ Weaver Bros. Load out & move pit house, pump house, mud boat, sub base, manlift, hydraulic power unit, mechanics house, dog house & carrier. Rig down camp. 12:00 17:00 5.00 RURD RIG AF PJSM: Spot & pull pits together. Spot & scope up sub base. Spot mud boat, carrier, generator house, boiler, water & hanson tanks. Put up hand rails. String electric lines to pits. Lower wings on sub base. 17:00 00:00 7.00 RURD RIG AF PJSM w/ crane operator. Crane up fuel tank, derrick house, poorboy degasser, flow line, v-door, wind walls, grey iron, choke house, panic line, stairs & landings. Raise mast. Rig up camp. Note: Inspected blue tugger sheaves. 00:00 06:00 6.00 RURD RIG AF PJSM: Crane in dog .Set BOP connex & stairs to rig floor. Set back landing & wind walls together. Pull wires to rig floor & plug in. Install dresser sleeves between pumps & pits. Make up pop-off lines. Organize wires coming off of bulkhead on generator house. Report Date: 6/20/2008 Job Cate o DRILLING 24 Hr Summary Con't rigging up GD1. Ops Trouble Start Time EndlTime Dur(hrs) OpsCode Ac6vityCode Status Code< Comment 06:00 12:00 6.00 RURD RIG AF PJSM. Plug in console and PLC. Straighten line on drum. PJSM. Scope up derrick and secure. Install lights in derrick. Set in trip tank. Pull test blue tugger. 12:00 18:00 6.00 RURD RIG AF PJSM: Spot parts house & mechanic shack. Install cat walk, beaver slide, stairs to rig floor, shock hoses to pumps & socks on derrick rams. C/O blue tugger line. C/O lifting chains on blue & red tugger. 18:00 00:00 6.00 RURD RIG AF PJSM: Rig up top drive rail. Pick up top drive. Install choke hose. Repair belt adjustment hinge on mix pump #1. Spotted & rigged up pump #3. 00:00 06:00 6.00 RURD RIG AF PJSM: Install 4-1/2" saver sub on top drive. Check COM. Test drive #1 carrier transmission & troubleshoot same. Rig up rig floor mud manifold. Drop 2" kill line & floor bleeders in place. Repair 2" flowline jetting manifold. Function test top drive & carrier (making final adjustmentment). Prep to install starter head. Report Date: 6/21/2008 Job Cate o DRILLING 24 Hr Summary Install starter head. N/U diverter. Respond to fire alarm. Finish installing diverter system. Function test diverter system. Complete rig audit. P/U 4" dp, 5" hwdp, jars & shock sub. . _._ _ .. - -. - --- Ops . Trouble '. Start Time End Time Dur (hrs) Ops Code .Activity Code Status Cade Comment -- _. 06:00 09:00 3.00 NUND WLHD AF PJSM. Set in cellar grating. Cut and dress 20" conductor 6.5" AGL. Install 20" VG-Loc X 21 1/4" 2M starter head.Test seals to 500psi/15min. Weld on 2" valve on 20" conductor. 09:00 12:00 3.00 NUND BOPE AF PJSM. Prep to N!U diverter. N/U 21 1/4" diverter stack. 12:00 16:00 4.00 NUND BOPE AF PJSM: Move pump #3 forward for diverter line. Install two 3" ball valves on starter head & 2" ball valve on 20" conductor for kill line. 16:00 16:30 0.50 SAFETY DRIL AF Respond to fire alarm on pad 41-18. Report to muster station & gather head count. False alarm. Return to work. 16:30 21:00 4.50 NUND EOIP AF PJSM: Install 16" diverter line, knife valve, riser, flowline & trip tank hoses. Primed all 3 mud pumps & checked for leaks. 21:00 22:00 1.00 TEST EOIP AF PJSM: Run & test all mix & charge pumps. Calibrate pit volume sensors. 22:00 00:00 2.00 TEST BOPE AF PJSM: Test all as alarms. Function test diverter s stem & all related components. All while mixing spud mud. Install mouse hole. 00:00 01:00 1.00 INSPCT RIG AF PJSM: Check elevator inserts. Hang back red tugger. Load pipe rack w/ 40 jts 4" drill pipe. Complete rig audit @ 01:00 hrs on 6/21/08. 01:00 03:00 2.00 PULD DP AF PJSM: P/U & drift 40 jts 4" drill pipe, & stand back in derrick. 03:00 06:00 3.00 PULD DP AF PJSM: C/O elevator inserts to 5". P/U & drift 21 jts 5" hwdp & jars, & stand back in derrick. C/O hydraulic hose on elevators. www.peloton.com Page 1/10 Report Printed: 9/10/2008 M ~ ~ Operations Summary Report MnanTxoN ®Qj~(;pry~ny Well Name: KENAI UNIT 12-17 Casing Flange Elevation (ft) Ground Elevation (ft) KB-Casing Flange Distance (ft) KB-Ground Distance (ft) Spud Date Rig Release Date 67.00 22.00 6/21 /2008 Daily Operations Re ort Date: 6/22/2008 Job Cate o DRILLING 24 Hr Summary M/U 13-1/2" directional assy. Clean 20" conductor out f/ 133'-189'. Dir drill f/ 133'- 844'. Sweep hole clean. C/O saver sub on top drive f/ 4-1/2" IF to HT38. Con't drill f/ 844'-1034'. Ops :Trouble Start Time End Time. Dur (hrs) Ops Code Activity Cade Status Code .Comment _ _ 06:00 10:00 4.00 PULD BHA AF PJSM. P/U 13.5" bit, 8" motor, MWD, 2-NMCSDP. Tag @ 133'. 10:00 10:30 0.50 DRILL ROT AF S ud well 10:OOhrs 6/21/2008. Clean 20" conductor to 189' 400GPM 500psi 45RPM. ART: 0.7 hrs. 10:30 12:30 2.00 DRILL ROT AF Drill and survey F/189' to 257' 400GPM 500psi 45RPM. ART: 1.3 hrs. AST: 0 hrs. 12:30 14:00 1.50 TRIP BHA AF POOH. Rack back 2 stands 5" HWDP. M/U 1-NMCSDP, 8" Shock sub. RIH and tag fill @ 220'. Wash fill to 257'. 14:00 18:00 4.00 DRILL ROT AF Dir drill and survey F/257'(KO) to 426'. ART: 1.2 hrs., AST: 1.1 hrs. 18:00 00:30 6.50 DRILL ROT AF Directional drill 13-1/2" surface hole f/ 426'- 844' @ 550 gpm, 1250 psi, wob 5-15 klb, 40 rpm, tq 1-2 kft-Ibs, p/u 63 klbs, s/o 58 klbs, rot wt 60 klbs. ART: 0.4 hrs. AST: 4.2 hrs. 00:30 01:00 0.50 CIRC MUD AF Pump sweep &circ until hole clean @ 550 gpm. Saw 50% cuttings increase over shakers. 01:00 02:30 1.50 RURD OTHR AF PJSM: Rack last std hwdp. C/O saver sub on top drive f/ 4-1/2 IF to HT38. C/O grabber dies & stabbing guide to 4". 02:30 03:30 1.00 CIRC MUD AF PJSM: Pick up last std &RIH. Tagged 6' fill on bottom. Connect up top drive & wash down f/ 784'-844'. 03:30 06:00 2.50 DRILL ROT AF Directional drill 13-1/2" surface hole f/ 844'- 1034' @ 600 gpm, 1500 psi, wob 5-20 klb, 40 rpm, tq 1-2 kft-Ibs, p/u 63 klbs, s/o 60 klbs, rot wt 61 klbs. ART: 0.1 hrs. AST: 1.2 hrs. Re ort Date: 6123/2008 Job Cate o DRILLING 24 Hr Summary Drill 13-1/2" hole to 10-3/4" csg pt @ 1690'. Sweep hole clean. Wiper trip to 185'. Service rig. RIH. Pump sweep &circ hole clean. POOH. UD BHA. - - Ops Trouble Start Time End Time, Dur (hrs) Ops Code Activity Code Status Code Comment 06:00 12:00 6.00 DRILL ROT AF Dir. Drill 13 1/2" hole F/1034' to 1420'. ART= .4hrs AST=2.9hrs 550GPM 1150psi 65RPM 4-5KFt-Ib UP 69K DN 60K ROT 63K. 12:00 16:30 4.50 DRILL ROT AF Dir Drill 13 1/2" hole F/1420' to 1690'. ART=.9hrs AST=1.8hrs 550GPM 1150psi 65RPM 4-5K Ft-Ib 16:30 17:30 1.00 CIRC MUD AF Pump 50bb1 Hi-vis sweep and circ. clean. CBUX2 600GPM 1600psi 65RPM. 17:30 20:30 3.00 TRIP DP AF PJSM: POOH f/ 1690'-185'. SLM. No depth corrections. Hole pulled slick. 20:30 21:00 0.50 SERVIC RIG AF PJSM: Service carrier & top drive. Grease blocks, crown, etc. 21:00 22:30 1.50 TRIP DP AF PJSM: RIH f/ 185'-1602'. Wash down f/ 1602'-1690'. No fill on bottom. Hole slick. 22:30 00:00 1.50 CIRC MUD AF PJSM: Pump hi-vis sweep w/ nut plug. CBU x 2 @ 600 gpm & 65 rpm. No visible increase in cuttings over shakers. Sweep indicated gauge hole. 00:00 02:30 2.50 TRIP DP AF PJSM: POOH w/ 4" drill pipe. C/O elevator inserts & slips. Stand back 11 stds hwdp & jars. 02:30 06:00 3.50 PULD BHA AF PJSM: UD shock sub & directional BHA components. Threads on 3 sets of Inteq non-mag 6-5/8" H-90 connections found galled. Re ort Date: 6/24/2008 Job Cate o DRILLING 24 Hr Summary Finish UD BHA. Run & cement 10-3/4" csg @ 1672'. Flush stack & mud lines. Empty & clean pits. N/D diverter. Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 06:00 07:00 1.00 PULD BHA AF Cont. UD Bit and motor. 07:00 10:30 3.50 RURD CSG AF PJSM. R/U to run 1 4" 10:30 11:30 1.00 RUN CSG AF PJSM. Run CSG. M/U shoe track and Bakerlok. X-threaded last joint of shoe track. 11:30 13:30 2.00 RUN CSG TA CSOT Back out X-threaded joint. Clean off Bakerlok as it had partually set. Inspect threads. Apply new coating of Bakerlok. Attempt 4 times to M/U. Threads made up on fourth attempt. 13:30 14:00 0.50 RUN CSG AF M/U swedge and circ. through shoe track and check floats. 14:00 15:00 1.00 RUN CSG AF Ran joints 5-12 OK. X-threaded joint13. 15:00 15:30 0.50 RUN CSG TA CSOT PJSM. Deployed CSG stabbing board. Started having person stab CSG from stabbing board. M/U joint#13. www.peloton.com Page 2/10 Report Printed: 9/10/2008 M Marathon ~ Operations Summary Report ,Y,,,,~,,,,op ®Qj~( Well Name: KENAI UNIT 12-17 Casing Flange Elevation (ft) Ground Elevation (ft) KB-Casing Flange Distance (ft) K&Ground Distance (ft) Spud Date Rig Release Date 67.00 22.00 6/21/2008 -_ Ops Trouble --- - -_ _ _ Start Tme End Time Dur (hrs) Ops Code ' Activity Code Status Code Comment 15:30 16:30 1.00 -- REPAIR RIG TA MSPW Troubleshoot #1 carrier engine controls. Decided to continue operation with only engine#2. 16:30 18:30 2.00 RUN CSG AF Cont. Run CSG(total 39 'oints 10 3/4" 45.5PPF L-80 BTC and 1 'oint 10 3/4" 45.5 f -55 BT 18:30 20:00 1.50 CIRC MUD AF PJSM: M/U circulating swedge & circulate 1-1/2 x casing volume @ 6 bpm & 250 psi. All while pump 130 bbls mud directly over to G&I to make room in pits. Mix 40 bbl spacer & prep for 10-3/4" cement job. Rig down casing tools. 20:00 23:00 3.00 PUMP CMT AF PJSM w/ BJ services: Install cmt head & pump 40 bbls Mud Clean II s a~cer w/ rig pump. Turn over to BJ unit & pump ahead~Ti~ls wa~'if~cm~t Ines. Test cmt lines to 2000 psi (ok). Drop bottom wiper p ug. ump s s ype cmt w ° - ° -1, 1 % A-2, 0.3% CD-32, 2% CaCl2, 0.05% Static Free, 1 gal/100 sks FP-6L, 12.0 ppg, 2.483 cu.ft./sk yield (220.23 bbls tot I m sl r 10.328 gal water/sk (122.46 bbls mixing water), s thickening time. Drop top plug & kick out w/ 5 bbls water. Turn over to rig & dis lace cmt w/ 147.5 bbls mu .Bump plug ca cu a ed strokes w/ 500 psi over displacement pressure. Bleed off & check floats. Cement in place @ 22:45 hrs on 6/23/2008. 100% mud returns & 42 bbls cmt returns to surface. Float shoe set @ 1672.84', top of float collar set @ 1586.87'. 23:00 00:00 1.00 BLOWDN EOIP AF Flush mud lines & stack. R/D cmt head. Blow down surface equipment. 00:00 06:00 6.00 CLEAN TANK AF PJSM: WOC. Preliminary N/D on diverter system & prep for rough cut on 10-3/4" casing. All while cleaning mud pits. Daily Operations Report Date: 6/25/2008 Job Cate o DRILLING 24 Hr Summary N/D diverter line & knife valve. Make rough cut on 10-3/4" csg & UD stump. N/D diverter stack & remove from cellar. Remove 20" starter head. Make final cut on & dress 10-3/4" csg. Install multibowl wellhead & test to 1800 psi f/ 10 min(ok). N/U BOP stack. C/O lower pipe rams. Test gas alarms. Test BOPE. R/U to test 10-3/4" csg. Witness waived by John Crisp (AOGCC) @ 18:30 hrs. on 6/24/2008. R/U to test 10-3/4" casing. Ops Trouble <Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment -- 06:00 10:00 4.00 NUND BOPE AF _...- - PJSM. N/D diverter line and knife valve. Make rough cut on 10 3/4" CSG and UD cut joint. N/D riser. N/D 21 1/4" Diverter. 10:00 12:00 2.00 NUND WLHD AF PJSM. Remove 21 1/4" starter head. Cut 20" and UD cut piece. Make final cut on 10 3/4" CSG. UD cut piece and dress 10 3/4" stub. Flush trip tank. 12:00 13:30 1.50 NUND WLHD AF PJSM. Install 10 3/4" X11" 5M SOW. Test seals to 1800psi/10min. - 13:30 14:30 1.00 NUND WLHD AF N/U 11" 5M X 13 5/8" 5M DSA. N/U 24" X 13 5/8"5M spacer spool. 14:30 21:30 7.00 NUND BOPE AF PJSM: N/U 13 518" 5M R,S,Rd,A BOP. 21:30 23:30 2.00 TEST BOPE AF PJSM: Test gas alarm system. Function test BOP control lines. P/U test tool. 23:30 05:00 5.50 TEST BOPE AF PJSM: Test BOPE & all related equipment to 250/2500 psi for 5 min. e orm accumu ator drawdown test. C/O 2 steel ring gaskets in greylock clamp on choke line. Repaired needle valve on test pump. Witness waived by John Crisp (AOGCC) @ 18:30 hrs. on 6/24/2008. 05:00 05:30 0.50 RUNPUL WBSH AF UD test plug & install wear ring. 05:30 06:00 0.50 TEST CSG AF PJSM: Rig up & test 10-3/4" casing. Re ort Date: 6/26/2008 Job Cate o DRILLING 24 Hr Summary P/U drill pipe & stand back. P/U directional BHA. UD galled NMDC's. RIH w/ P/U 24 jts 4" dp. Drill ahoe track & 20' new hole. Circ & displace hole w/ new flo-pro mud. Perform F.I.T. w/ 9.2 ppg mud, 1503' tvd, 300 psi (EMW=13.0 ppg). POOH to P/U NMDC's. M/U NMDC's. Ops Trouble _Start Time .End Time Dur (hrs) Ops Code .Activity Code Status Code Comment _ 06:00 06:30 0.50 TEST CSG AF Con't test 10-3/4" casing to 1500 psi f/ 10 min. (ok). Bleed off & rig down. 06:30 13:30 7.00 PULD DP AF P/U drift and rih with 4" drillpipe Stand back and tally in mast total of 166joints P/U 13:30 14:00 0.50 SAFETY MTG TA ESSI Pad alarm. All personnel report to muster station & gather head count. All accounted for. 14:00 16:30 2.50 PULD DP AF Finish P/U drift and rih with 4" drillpipe Stand back and tally in mast total of 166joints P/U 16:30 18:30 2.00 PULD BHA AF PJSM: P/U 9-7/8" directional assy. Galled (2) NMDC's & NM X/O . 18:30 20:00 1.50 PULD BHA TA MSDE Lay down 2-NMDC's & NM X/O sub. 20:00 21:30 1.50 PULD DP AF RIH w/ P/U 24 jts 4" drill pipe. www.peloton.com Page 3/10 Report Printed: 9/10/2008 fOfl ®oi~Corr~snv Operations Summary Report' Well Name: KENAI UNIT 12-17 _ _ - - -- , - OpS _ Trouble . --_ Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 21:30 00:30 3.00 DRILL CMT AF Drill out cement & float equipment f/ 1586'-1672. Con't clean out 13-1/2" rat hole f/ 1672'-1690'. 00:30 01:00 0.50 DRILL ROT AF Drill new formation f/ 1690'-1710' @ 386 gpm, 1000 psi, 65 rpm. P/U 65 klbs, S/O 43 klbs, Rot Wt 55 klbs. ART: 0.2 hrs. 01:00 02:45 1.75 CIRC MUD AF Circulate hole clean. Pump 30 bbl sweep. Displace hole w/ new 9.2 ppg Flo-Pro mud. 02:45 03:15 0.50 TEST LOT AF Rig up & perform F.I.T. w/ 9.2 ppg mud @ 1503' tvd, 300 psi. = 13.Oppg EMW ' 03:15 06:00 2.75 TRIP DP TA MSDE POOH to pick up (3) NMDC's & NM X/O sub. Daily Operations Re ort Date: 6/27/2008 Job Cate o DRILLING 24 Hr Summary P/U (3) NMDC's & NM X/O. RIH to 1656'. Remove & replace carrier #1 transmission & make any final adjustments. ', Ops Trouble ~ --- Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 06:00 07:00 1.00 PULD BHA TA MSTB Pick up and make up 3 x 6-314" monels. Note: Cleaned up new threads with buffing wheel and moly coated Threads. made up with out any galling of threads. 07:00 08:30 1.50 TRIP DP TA MSDE RIH to 1656' 08:30 06:00 21.50 REPAIR RIG TA MSHS Remove #1 Carrier Transmission And Replace. Make test run. Replace broken hoses. Shifter assembly not shifting properly. Make necessary repairs to continental valve on Bennett shifter. Re ort Date: 6/28/2008 Job Cate o DRILLING 24 Hr Summary Complete transmmission repairs & adjustments. Drill 9-7/8" directional hole f/ 1710'-3347' Ops Trouble Start Time End Time Dur hrs Ops Code Activity Code Status Code Comment 06:00 09:30 3.50 REPAIR RIG TA MSHS ---- Continue Repair on Transmission. Test run and change out oil and Filter 09:30 12:00 2.50 DRILL ROT AF Dir.Drill 9 7/8 hole f/ 1710'- 1898' @ 510gpm 255spm 1000psi wob 5-10k tq 3-4k p/u 65k. s/o 43k. RT. 55K Art=.6hr. Ast=.9hr Adt 1.7 hrs No gain/loss 12:00 18:00 6.00 DRILL ROT AF PJSM: Directional drill 9-7/8" intermediate hole f/ 1898'-2465' @ 500 gpm, 1100 psi, wob 5-10 klb, 60 rpm, tq 4 kft-Ibs, p/u 62 klbs, s/o 50 klbs, rot wt 58 klbs. ART: 3.0 hrs. AST: 0.5 hrs. No gain/loss. 18:00 00:00 6.00 DRILL ROT AF Directional drill 9-7/8" hole f/ 2465'-2969' @ 550 gpm, 1500 psi, wob 5-10 klb, 70 rpm, tq 4 kft-Ibs, p/u 65 klbs, s/o 55 klbs, rot wt 62 klbs. ART: 2.4 hrs. AST: 0.7 hrs. No gain/loss. 00:00 06:00 6.00 DRILL ROT AF PJSM: Directional drill 9-7/8" hole f/ 2969'-3347' @ 500 gpm, 1275 psi, wob 5-10 klb, 72 rpm, tq 4-5 kft-Ibs, p/u 75 klbs, s/o 60 klbs, rot wt 68 klbs. ART: 2.1 hrs. AST: 1.2 hrs. No gains or losses. Re ort Date: 6/29/2008 Job Cate o DRILLING 24 Hr Summary Drill f/ 3347'-4430'. Circulate hole clean. Make 22 std short trip. Service rig. RIH. Wash 1 std to bottom. Pump 30 bbl sweep around &circ until clean. Drill 9-7/8" hole f/ 4166'-4430'. ~ Ops Trouble Start Time ' End Time Dur (hrs} Ops Code Activity Code Status Code Comment 06:00 12:00 6.00 DRILL ROT AF Dir Drill 9 7/8 hole f/ 3347'- 3755' @500gpm 1350psi, wob 5-10k ,72rpm, tq 4-5kft-Ibs p/u 88klbs, s/o 65 klbs, rt 77 klbs. Art=2 Ast=1.2 No gain loss. Run centrifuge van cut mud weight from 9.4+ ppg to 9.2ppg 12:00 18:30 6.50 DRILL ROT AF PJSM: Dir Drill 9 7/8 hole f/3755'- 4166' Note: pump 30bb1 hi vis sweep.@ 3820'. Sweep returned with 4X increase in cuttings over shakers. Increase rotary to 95rpm continued cicrulating until shakers cleaned up.Sweep returned at calculated hole volume. Mud weight 9.2 in and out. dress out shakers with 230 on shaker # 1 and 200 on #2 shaker. Art=1.3, Ast=2.7. No gain/loss. 18:30 20:00 1.50 CIRC MUD AF PJSM: Circulate bottoms up @ 500 pgm & 90 rpm's. Saw 250% cuttings ~ increase over shakers. Con't circ until shakers clean up. Monitor well (ok). ! 20:00 22:00 2.00 TRIP WIPR AF PJSM: Make 22 std short trip out of hole f/ 4166'-2842'. No tight spots. Pulled slick over entire interval. Hole took proper fillup. 22:00 22:30 0.50 SERVIC RIG AF PJSM: Service rig. Lube top drive, carrier drive lines & blocks. 22:30 23:30 1.00 TRIP WIPR AF PJSM: RIH slowly f/ 2842'-4105'. Wash last std down f/ 4105'-4166'. No led es or ti ht s ots while runnin in. No fill on bottom. Hole dis lace~as calculated. No ains or losses. www.peloton.com Page 4/10 Report Printed: 9/10/2008 M ~ . Operations Summary Report ,W,,,,~„o„ ®OI~C Well Name: KENAI UNIT 12-17 - ' -----~ --- Ops Trouble Start Time ' End Time Dur (hrs) Ops Cade Activity Cdde Status Code Comment 23:30 00:30 1.00 CIRC MUD AF Pump 30 bbl hi-vis sweep around & con't circ until hole clean. Sweep returned with 200% increase in cuttings. Pump @ 500 gpm, 1500 psi, 90 rpm's, tq 5 kft-Ibs, p/u 100 klbs, s/o 75 klbs, rot wt 85 klbs. 00:30 06:00 5.50 DRILL ROT AF PJSM: Directional drill 9-7/8" hole f/ 4166'-4430' @ 500 gpm, 1650 psi, wob 5-10 klb, 70 rpm, tq 5-6 kft-Ibs, p/u 105 klbs, s/o 70 klbs, rot wt 88 klbs. ART: 0.7 hrs. AST: 2.7 hrs. No gains or losses. Daily Operations Report Date: 6/30/2008 Job Cate o DRILLING 24 Hr Summary Drill f/ 4430'-5543'. Pump 30 bbl hi-vis pill &circ hole clean. Drill f/ 5543'-5611'(lost circulation). Pump 2 x 45 bbl LCM pills. POOH to 4070'. Spot 45 bbl LCM pill. Con't POOH to 2210'. Work stuck pipe @ 2210'. Ops Trouble Start Tlme End Time Dur (hrs) OpS Code Activity Code Status Code Commehf 06:00 12:00 6.00 DRILL ROT AF Drill 9 7/8 hole f/4430'- 4922' @430gpm 1450psi wob 5-15klbs. 90rpm. tq 7-8.5klbs fdlbs p/u 112k1bs. s/o 80klbs rt. 95klbs. Art=3.60 hrs Ast=O No gain, slight loss to hole. ECD 9.3mw 1450psi 4186tvd = 9.7. Start Centrifuge van mud wt = 9.3+ 12:00 19:15 7.25 DRILL ROT AF PJSM: Directional drill 9-7/8" hole f/ 4922'-5543' @ 425 gpm, 1650 psi, wob 5-10 klb, 90 rpm, tq 8-9 kft-Ibs, p/u 115 klbs, s/o 95 klbs, rot wt 105 klbs. ART: 3.9 hrs. AST: 0.0 hrs. Losing fluid Cad 10 bbh to formation. 19:15 20:30 1.25 CIRC MUD AF Pump 30 bbl hi-vis sweep around & con't circ until shakers clean. Sweep returned with 200% increase in cuttings. Pump @ 425 gpm & 90 rpm's. 20:30 21:30 1.00 DRILL ROT AF PJSM: Drill 9-7/8" hole f/ 5543'-5611' @ 425 gpm, 1650 psi, wob 5-10 klb, 90 rpm, tq 8-9 kft-Ibs, p/u 115 klbs, s/o 95 klbs, rot wt 110 klbs. ART: 1.6 hrs. AST: 0.0 hrs. Loss complete circulation Cad 5611'. 21:30 22:00 0.50 PUMP LCM TA NDLC Pump 45 bbl LCM pill w/ 1.25 ppb Flo-vis, 3 ppb Dualflo, 2 ppb aspersol, 15 ppb ea. SafeCarb 2/10/20/40/250, 2.5 ppb ea. Mix IIfine/med, 10 ppb G-Seal. Spot on bottom. Attempt to fill hole down backside(no go). All_while mixin another 45 bbl LC t . 22:00 22:30 0.50 PUMP LCM TA NDLC Pump 2nd 45 bbl LCM pill w/ 1.25 ppb Flo-vis, 3 ppb Dualflo, 2 ppb Aspersol, 15 ppb ea. SafeCarb 2/10/20/40/250, 3.5 ppb ea. Mix IIfine/med, 15 ppb G-Seal. Spot on bottom. Attempt to fill hole down backside(no go). 22:30 02:00 3.50 TRIP DP TA NDLC PJSM: POOH f/ 5611'-4070'. Pipe hanging up while pulling off bottom. Pump & rotate free. Pulling free from 3rd stand off bottom. Pumpin down backside all while tri in .Hole filled u 4 '. Tot ho e w uid = 480 bbl. Monitor from trip tank. Mix 45 bbl LCM pill. Static losses 10 bph. 02:00 .02:30 0.50 PUMP LCM TA NDLC PJSM: Pump 45 bbl LCM pill w/ 1.25 ppb Flo-vis, 3 ppb Dualflo, 2 ppb aspersol, 15 ppb ea. SafeCarb 2/10/20/40/250, 2.5 ppb ea. Mix II fine/med, 10 ppb G-Seal. Spot 4070'. Static losses 10 bph. 02:30 06:00 3.50 WORK PIPE TA NDSP PJSM: Con't POOH f/ 4070'-2210'. Tight spot @ 2210'. Attempt to rotate through(no go). Connect up & attempt to rotate out(no go). Work stuck pipe 2210'. Hole a ears static. Re ort Date: 7/1/2008 Job Cate o DRIL LING 24 Hr Summary Work stuck pipe @ 2200'. Hole safety meeting prior to back off operation. P/U surface jars .Jar on drill string 3X & pull free. UD jars. circ & backream f/ 2200'-2203'. P/U drilliing jars & 9-1/4" string mill. RIH f/ 2203'-3948'. Ream f/ 3948'-4018' (string mill 2250' behind bit). Start Time ~ End Time ; Dur (hrs) i Ops Code Ops Activity Code Status Trouble Code Comment 06:00 12:00 6.00 WORK PIPE TA NDSP Continue to work Stuck pipe at 2210' Spot tube tex pill. attempt to establish rotation with no success. wait on fishing tools and service hand. Continue to work stuck pi e. 12:00 12:30 0.50 SAFETY MTG TA NDSP PJSM; Discuss rig up of surface jars and hazards. 12:30 14:00 1.50 JAR FISH TA NDSP Rig up and break out single 1T above rotary. P/u surface iars. Setjar to fire at 25k over pull of string. Jar 3X with 25k overpull of string weight. Stuck i e came free. circ B/U. Rig down jars 14:00 18:30 4.50 REAM OH TA NDSP Back ream 2200-2203'. Ti ht hole. No progress. Con't reaming while wait on 9-1/4" string mill. www.peloton.com Page 5/10 Report Printed: 9/10/2008 M ~ ~ Operations Summary Report +lutwaxor ®DIIC:Orr~y Well Name: KENAI UNIT 12-17 _ _- __ Ops __ _ Troutife Start Time End Time Dur (hrs) I Ops Code Activity Codp Status Code Comment 18:30 06:00 11.50 REAM OH TA NDHI P/U 9-1/4" string mill & 6-1/4" drilling jars. RIH f/ 0'-1690'(mill depth). Hit ledge @ 2812', 2910' & 2946'(bit depth). Ream tight hole f/ 1690'-1768' @ 450 gpm, 1300 psi, 90 rpm's, tq 10-16 kft- s, p u , s o 85 klb. Pumped 30 bbl 10 ppg weighted sweep @ 1690'(mill depth). Hole unloaded with 5 X cuttings increase over shakers. Pumped 2nd weighted sweep @ 4016'(bit depth). Saw 2 X cuttings increase. Got 415 units gas after reamin o en s of 3945' bit de th . Daily Operations Report Date: 7/2/2008 Job Cate o DRILLING 24 Hr Summary Ream hole f/ 1768'-1777'. POOH & remove string mill. RIH. Wash & ream f/ 4026'-5425'. Circ hole clean @ 5425'. Wash & ream f/ 5425'-5528. Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code ' Comment 06:00 13:00 7.00 REAM OH TA NDHI PJSM: Ream hole f/ 1768'-1777' @ 450 gpm, 1300 psi, 90 rpm's, tq 10-15 kft-Ibs, p/u 105 klb, s/o 70 klb, rot wt 85 klb. 13:00 15:00 2.00 TRIP EQIP TA NDHI PJSM: POOH w/ string mill & jars f/ 1777'-0. No problems pulling out of hole. 15:00 15:30 0.50 PULD EOIP TA NDHI PJSM: Remove string mill, jars & crossover subs from drill string.. 15:30 02:00 10.50 REAM OH TA NDHI PJSM: RIH w/ drillin assembl to 4026' (started taking weight). Wash & ream f/ 4026'-5425'. ump gpm, psi, rpm s, orque - s. D namic losses 15 b h. Static losses 0 b h. Got 571 units as 4972'. Average background gas while pumping in hole = 280 units. Dense amount of cuttin s returnin over shakers throu hout entire tri in. 02:00 04:30 2.50 CIRC MUD TA NDHI Circ hole clean @ 5425' & con't circ until shakers clean. Pump @ 350 gpm, 85 rpm's, torque 7 kft-Ibs. Had 2 X increase in cuttings return over shakers on 1st bottoms up. P/u 125 kft-Ibs, s/o 75 kft-Ibs, rot wt 95 kft-Ibs. Dynamic losses 15 b h. No static losses. 04:30 06:00 1.50 REAM OH TA NDHI Wash & ream f/ 5425' to 5528'. Pump @ 250 gpm, 750 psi, 50 rpm's, torque 7 kft-Ibs. Dynamic losses 15 bph. Static losses 0 bph. Got 571 units gas @ 4972'. Average background gas 20 units. Dynamic losses 15 bph. No static losses. Re ort Date: 7/3/2008 Job Cate o DRIL LING 24 Hr Summary Circ. hole clean, spot LCM pill, POOH t/2467', Monitor well serv. rig, P/U RWD assy., RIH with bit at 4453', and RWD at 1672', Wash and ream with RWD F/ 1782' to 2400', Circ B/U, Monitor well losing 1.5 BPH, POOH Ops Trouble Start Timg End Time ' Dur (hrs) Ops Code Activity Code Status Code Comment _ 06:00 06:30 0.50 CIRC MUD TA NDHI Wash and ream F/5528' to 5611'. 250GPM 700psi 50RPM 7K ft-Ib. 06:30 09:00 2.50 CIRC MUD TA NDHI Circ. clean 250GPM 700psi 50 RPM 7 Kft-Ib. Dynamic losses 156PH P/U 140K S/O 75K ROT 105K. 09:00 09:30 0.50 SPOT PILL TA NDHI Sot 50bb1 LCM ill outside of bit 75PP6 CaCo3 15PPB ea 2/10/20/40/250, 10PP6 G-seal, 5PP6 Mix-2 2.5PP6 ea fine and med.. 09:30 13:30 4.00 TRIP DP TA NDHI PJSM. Flow check POOH to 2467' wet. Tight(25K over) @ 5388', 5361', 5325', 5321', 5307', 5301', 5298', 5290', 5270', 5240', 5235', 5228'. Reduced pulling speed and no other tight pulls observed. Losses 1-1.5BPH while POOH. 13:30 15:00 1.50 SERVIC RIG TA NDHI PJSM. Change oil in carrier engine#2. Service rig. Static losses 1 BPH. 15:00 15:30 0.50 SERVIC RIG TA NDHI PJSM. Measure BHA components. Static losses 1 BPH. 15:30 16:00 0.50 TRIP DP TA NDHI PJSM. RIH to 2781'. 16:00 16:30 0.50 TRIP BHA TA NDHI PJSM. Prep to P/U RWD BHA. 16:30 18:00 1.50 TRIP BHA TA NDHI P/U 9 7/8" RWD assy. 18:00 19:00 1.00 TRIP DP TA NDHI Cont. RIH with clean out assy. Bit at 4453', and RWD at 1672'. 19:00 01:00 6.00 REAM OH TA NDHI Start Washin and reamin with RWD at 1672' start reamin ti ht hole from 1782' Up wt.= 120K Dn wt.= 72K Rt. wt= 90K Tq.=7-9K , 50 RPM, Pump =125 stks. 300 psi. =250 GPM Cont. to Ream with RWD to 2400' Up wt.=142K Dn wt.=75K RT wt.=105K 65 RPM, 01:00 02:30 1.50 CIRC MUD TA NDHI Circ. bottoms up, Check flow. Hole losing 1.5 BPH 02:30 05:00 2.50 TRIP DP TA NDHI PJSM; POOH with 4" drill pipe to 2829' 05:00 05:30 0.50 TRIP BHA TA NDHI PJSM;POOH, lay down RWD and jars. 05:30 06:00 0.50 TRIP DP TA NDHI PJSM; POOH, with 4" drill pipe.from 2782'to 2205' www.peloton.com Page 6/10 Report Printed: 9/10/2008 ~ ~ Operations Summary Report ,~,,,,at„op ~Qj~(;pry Well Name: KENAI UNIT 12-17 Daily Operations Re ort Date: 7/4/2008 Job Cate o DRILLING 24 Hr Summary POOH, UD BHA, Serv. Rig, Make up BHA, RIH test MWD,'RIH to 1644', Slip drilling line, RIH to 5550' wash and ream to 5611', Drill F/5611' to 6050' Starr Time rind Time Dur (hrs) Ops Code Activity de Ops Status Trouble Code I Comment 06:00 07:00 1.00 TRIP BHA I TA NDHI Cont. POOH. 15 K overpull F/1800'. Rotated through shoe. Test MWD OK. 07:00 09:00 2.00 TRIP DP TA NDHI Cont. POOH. 09:00 12:00 3.00 TRIP BHA TA NDHI PJSM. UD bit, motor,MWD and 9 3/4" string stabilizer. Filter sub half full of scale and plastic film. Empty filter and clean. All backreaming cutters on bit broken and chiped. Some gauge cutters on bit also chipped. Some hard facing on string stabilizer chipped off. 12:00 12:30 0.50 SERVIC RIG TA NDHI PJSM. Adjust electrical wiring harness for top drive. Inspect and sercure derrick light. 12:30 13:30 1.00 TRIP BHA TA NDHI M/U bit, motor, and MWD 13:30 16:00 2.50 TRIP BHA TA MDOT Dress threads on NM X/O, Filter sub, and CSDP. 16:00 17:30 1.50 TRIP BHA TA NDHI PJSM. RIH to CSG shoe 17:30 18:00 0.50 SLPCUT DLIN TA NDHI PJSM. Slip drilling line. Static losses .56PH. 18:00 22:00 4.00 TRIP DP TA NDHI PJSM; Cont. RIH from 1644'-5550'. Wash and ream thru casing shoe f/1672' - 1700' Wash and ream Tight hole at 3129', 5400',5550'. Still losing 1-3 BPH. While tripping in hole.RlH to 5611'. 22:00 06:00 8.00 DRILL ROT AF Drill surv F - 'ART=6.0 AST=O Pump=200 stks. 400 GPM, 1400 psi Up wt.=150k Dn wt.=85K Rt wt.=110K Tq.=8-9K Losing 5 BPH fluid. Re ort Date: 7/5/2008 Job Cate o DRIL LING 24 Hr Summary Drill f/6050'-6585' Circ B/U, POOH, Back ream tight hole f-6230'-5108',POOH to 1590',Change Clutch boot on drawworks,serv. rig,TlH '`Start Time ' End Time Dur (hrs) Ops Code Activity Code Ops ,, Status ~ Trouble Dade -- _ Comment 06:00 12:00 6.00 DRILL ROT AF ~ Dir drill and survey F/6050' to 6351' ART=4.6hrs 390GPM 1450psi UP 150K DN 85K ROT 115K RPM 90 W0B20/25K TQ 8-9K Ft-Ib 12:00 17:30 5.50 DRILL ROT AF PJSM•Dir drill and surve F/6351' to 6585' ART=4.6 hrs 400GPM 1500psi UP 160K S/O 90K Rot=116K 90RPM 7-8 Ft-Ib WOB 20-25K 17:30 19:00 1.50 CIRC MUD AF Circ.bottoms up, clean hole. For wiper trip to csg. shoe. 19:00 03:00 8.00 TRIP WIPR AF PJSM; POOH , F-6585'-6230', Back ream f/6230'-5108' Hole pulling tight 40K over. Tight hole at 6468',6410',6357',6300',6280',4120',Pull pipe from 5108'-1590'. 03:00 03:30 0.50 SERVIC RIG AF PJSM; Serv. Rig and equip. 03:30 04:30 1.00 REPAIR RIG TA MSHS PJSM;Repair boot on drawworks drum clutch. 04:30 06:00 1.50 TRIP DP AF PJSM;RIH f1590'-3200' Report Date: 7/6/2008 Job Cate o DRIL LING 24 Hr Summary Wiper trip ,circ. sweep, POOH,UD BHA, P/U shuttle and quad combo tools.,RIH, Circ. B/U, Deploy Quad combo tool, POOH and survey F-6585' bps Troutile -__ Start Time End Time Dur{hrs) Ops Code ' Activity Code Status Code _ Comment 06:00 07:00 1.00 TRIP DP AF RIH and tag tight spot @ 6409'. 07:00 08:00 1.00 CIRC MUD AF W/R F/6389' to 6585'. Tight @ 6478' and 6526'. No fill. 08:00 10:00 2.00 CIRC MUD AF Pump 50bb1 Hi-vis sweep and circ. clean(2 X B/U). Shakers cleaned up after 2nd B/U. 400GPM 1450psi 90RPM 7K Ft-Ib. Max trip gas 78 units. P/U 150K S/O 90K Rot 120K MW increased to 9.75PPG and was centrifuged down to 9.65PPG. Dynamic losses 2-3 BPH. Static losses.5-1 BPH. 10:00 16:30 6.50 TRIP DP AF PJSM. Flow check and drop 2 1/4" drift. POOH w/DP (wet)(SLM, no correction). 16:30 18:30 2.00 PULD BHA AF PJSM. UD BHA. Filter sub 3/4 full of what appears to be scale. 18:30 20:00 1.50 PULD LOG AF PJSM; Pick up and drift shuttle for Quad combo. 20:00 00:30 4.50 LOG OH AF RIH with Weatherford Quad combo Iogs.Pressure test tools in stages going in hole. 00:30 02:00 1.50 CIRC MUD AF Circ. bottoms up.200 stks. = 1070 psi Up wt.=150K Dn wt.=80K 02:00 03:00 1.00 TRIP DP AF POOH to 6445' drop messenger to deply logging tools, tool deployed properly. 03:00 06:00 3.00 LOG OH AF POOH from 6548', logging with Quad combo. www.peloton.com Page 7110 Report Printed: 9/10/2008 ~ • Operations Summary Report ®Qj~( Well Name: KENAI UNIT 12-17 NWNAIHON Daily Operations Re ort Date: 7/7/2008 Job Cate o DRILLING 24 Hr Summary POOH w/ logging tools, UD tools, -- ~ Start Time End Time Dur (hrs) Ops Code Activity Code ~ Ops Status Trouble Code Comment 06:00 09:00 3.00 LOG OH AF Cont. POOH w/Shuttle Quad Combo logging tools on DP. 09:00 10:30 1.50 PULD LOG AF UD logging tools. Observe well on trip tank 1 BPH static losses. Report Date: 7/7/2008 Job Cate o DRILLING 24 Hr Summary M/U 9 7/8" bit and cleanout assy and RIH to 6585. Circ. clean. POOH spot LCM pill @ 5700'. Cont. POOH and UD bit. C/O upper pipr rams ro 7 5/8" . Test rams. R/U to run 7 5/8" CSG. ~ Start Time ~ End Time Dur (hrs) Ops.Code Activity Code Ops- Sta#us Trouble Code Comment 10:30 12:00 1.50 TRIP BHA AF PJSM. P/U 9 7/8" bit and bit sub. RIH w/5" HWDP and jars. 12:00 15:00 3.00 TRIP DP AF RIH w/4" DP. Tag tight spot @ 6557'. W/R tight spot. Cont. RIH to 6585'. 15:00 17:00 2.00 CIRC MUD AF Circ. clean. CBUX2. 400GPM 1100psi 90RPM. Centrifuge MW F/9.75ppg to 9.65ppg. Dynamic losses 3-46PH. 17:00 18:00 1.00 TRIP DP AF POOH w/DP. from 6585' to 5700' 18:00 19:00 1.00 CIRC MUD AF Circ. and spot LCM pill at 5700'. 10.5ppb ea SC 2,10,20,40,250(52.5ppb total). 7PP6 G-seal, 1.5ppb ea Mix 2 med and fine(3ppb total) 19:00 23:30 4.50 TRIP DP AF Cont. pull out of hole from 5700', stand back HWDP ,break off bit bit sub and lay down. 23:30 00:00 0.50 RUNPUL WBSH AF Pull wear ring 00:00 00:30 0.50 RURD CSG AF Test run csg. hanger UD Pipe spinners for repair. 00:30 02:00 1.50 NUND BOPE AF Chan e i e rams to 7 5/8 cs .rams. Test 200 si / 2000 si 02:00 06:00 4.00 RURD CSG AF Rig up Weatherford to run 7 5/8 csg. Monitering well losing 16PH Report Date: 7/8/2008 Job Cate o DRIL LING 24 Hr Summary R/U to run 7 5/8" CSG. Run 7 5/8" CSG to 6563'. Circ. CSG.R/U cmt hd., Pump cmt. Cmt.in place@0130,ck. floats,R/D cmt. hd.,UD landing joint, Install packoff, test 5000psi 10 min.,R/D stabbing board. Start Time End Time. Dur (hrs) Ops Code Activity Code Dps :'. Status ...Trouble Code _ Comment _ 06:00 06:30 0.50 RURD CSG AF Cont. to R/U CSG tools. 06:30 07:00 0.50 SAFETY MTG AF PJSM prior to running 7 5/8" CSG. 07:00 08:30 1.50 RUN CSG AF P/U shoe joint and set in rotary. P/U joint#2 and Bakerlok. RIH. P/U joint#3 w/float collar on pin end and Bakerlok. RIH. P/U joint#4 and Bakerlok. Circ. through shoe track and check floats. 08:30 11:00 2.50 RUN CSG AF Cont. to Run 7 5/8" 29.7PPF L-80 Butt-mod CSG to shoe @ 1672'. Break circ. at shoe. 11:00 18:30 7.50 RUN CSG AF Cont. to run 7 5/8" CSG (total 160jnts) and land on Vetco 10 3/4" X 7 5/8" Hanger assy. Shoe ~ 6564'. Float collar Cc~ 6480'. Up 215K DN 115K.Lost 10 bbls. while running casing. 18:30 23:00 4.50 CIRC MUD AF Circ. 7 5/8" CSG 195GPM 560psi. Reci rocating CSG 5' every 5min. PJSM prior to cementjob.Csg. stuc whi a installing cmt. hd. Not able to recipicate 23:00 01:30 2.50 PUMP CMT AF PJSM; Pump 2 bbls. water ahead, pressure test to 3000 psi., Mix and pump 20 bbls. Seal bond spacer, 10ppg, Pump 184.75 bbls. of Class G cement W ° - + ° - + ° - + ° + ° - +. o Static Free + 1 % Calcium chloride + 1 gps FP-6L DisDlace with 298 bbls. mt with rig pump bumped plug@01:30hrs w/ 600 psi over circ. pressure, cement in place @ 0130. Lost 5 bbls. during cement job. 01:30 02:00 0.50 RURD CMT AF Rig down cement lines and cement head, lay down landing joint. 02:00 03:30 1.50 TEST WLHD AF Install 7 5/8 pack off and test to 5000 psi for 10 min. 03:30 06:00 2.50 RURD CSG AF PJSM; Rig down stabbing board, lay down casing elevators.Change bails, pick up DP tongs. Re ort Date: 7/9/2008 Job Cate o DRIL LING 24 Hr Summary P/U spinners, UD 5" HWDP, Change pipe rams to varibles, Rig up test BOPs, Redress test plug, Test BOPS, P/U drift scraper and pick up mill RIH to 6481', CBU, Pump dry job, POOH Lay down BHA, R/U for CBL ,RIH w/ CBL and log, Start Time . End Time. Dur (hrs) Ops Code Activity Code Ops Status Trouble Code Comment 06:00 07:00 1.00 CHANGE EQIP AF R/U DP tongs and adjust torque tube for running DP. Empty pits 1 and 2. Clean pit#1. 07:00 08:30 1.50 PULD DP AF UD 5" DP and 6 1/4" Jars from derrick in mouse hole. www.peloton.com Page 8/10 Report Printed: 9/10/2008 -' ~ • Operations Summary Report• ~' ®Qj~(;p~ny Well Name: KENAI UNIT 12-17 Start Time End Time Qur (hrs} Ops Code:.. :Activity Cade Ops Status Troutile --- _i Code Comment 08:30 09:30 1.00 RURD OTHR AF C/O upper pipe rams to 2 7/8" X 5 1/2" variables. 09:30 12:00 2.50 TEST BOPE AF Instal test plug and 4" test joint. R/U BOP test equipment. Test Annular, upper variable rams, IBOP, TIW, Upper kelly cock, Lower kelly cock 250/2500psi 5min. Attempted next test and pressure up to 2500psi and pressure test failed. 12:00 13:30 1.50 TEST BOPE TA MSBO Pull test plug and discovered that a piece of metal had wedged into the o-ring seat and cut the o-ring. Dress o-ring seat and replace o-ring. Run ', test plug and attempt next test. Very slight pressure loss. Found isolation valve on test pump leaking. Replace leaking valve. 13:30 15:00 1.50 TEST BOPE AF Cont. Test BOPE. Test Inside kill, outside kill, check valve, HCR, manual choke, 1-12CMV, lower 4" pipe rams, and blind rams 250/2500psi 5min. Test all gas alarms. Perform koomey performance test. Witness waved by AOGCC Tom Maunder. 15:00 17:00 2.00 PULD BHA AF Run wear bushing. PJSM. P/U 6 3/4" mill and 7 5/8" scraper. P/U 4" HWDP and jars. 17:00 20:00 3.00 TRIP DP AF PJSM; RIH with 7 5/8 scraper and 6 3/4 junk mill.To 6481' Tag Landing. collar 20:00 20:30 0.50 CIRC MUD AF Circ. Bottoms up from 6481' Pump? BPM@1550 psi. 20:30 23:30 3.00 TRIP DP AF PJSM; Pump dry job POOH from 6481' to 741' 23:30 01:30 2.00 TRIP BHA AF PJSM; POOH with BHA, Lay down mill and scraper, Clear rig floor. 01:30 06:00 4.50 RUNPUL ELEC AF PJSM; Rig up wireline for Cement bond log. And run logs Daily Operations Report Date: 7/10/2008 Job Cate o DRILLING 24 Hr Summary P/U 7 5/8" Scraper RIH to 1164'. Slip drilling line. Cont. RIH.Test csg. to 2400 psi f/30 min.,RIH f/6400'-6481', Displace drill pipe with 67bbls., Fill pits with water mix 6% kcl, Pump soap spacer, displace mud with 6% KCL, POOH lay down drill pipe, Clear floor, Pull Wear ring, R/U Weatherford. Run completion. - tart Time End Time -- Dur (hrs) j -- Ops Code ctivity Code Ops StaWS Trouble ' Code - -- --- Comment _ _ 06:00 07:00 1.00 PULD BHA AF _ ____ _ PJSM. P/U 6 5/8" scraper open ended and RIH to 1146' 07:00 08:30 1.50 SLPCUT DLIN AF PJSM. Slip drilling line. 08:30 11:00 2.50 TRIP DP AF Cont. RIH to 6400'. 11:00 12:00 1.00 TEST CSG AF Test 7 5/8" CSG to 2400psi/30min. Lost 50 psi. 12:00 12:30 0.50 TRIP DP AF Cont. RIH and TAG @ 6481'. 12:30 13:00 0.50 CIRC CFLD AF Displace DP w/fresh water 67bbls 140GPM 432 psi. 13:00 18:00 5.00 CLEAN TANK AF PJSM. Empty and clean pits. Strap and drift 4 1/2" TBG. Mix 6% KCL brine. 18:00 19:00 1.00 CIRC CFLD AF PJSM;Pump 60 bbl. soap pill, and displace mud with 6% KCL. 19:00 21:00 2.00 TRIP DP AF PJSM; Rig up and POOH,Iay down 4"drill pipe, F/6581-4580'. 21:00 21:30 0.50 TRIP DP AF PJSM;RIH with drill pipe from derrick. F/4580'-5210'. 21:30 02:30 5.00 TRIP DP AF PJSM;Continue to pull out of hole F/5210' laying down 4" drill pipe. 02:30 03:30 1.00 RURD RIG AF PJSM; Change bails, elavators, R/D rig tongs, 03:30 04:00 0.50 RUNPUL WBSH AF Pull wear bushing. 04:00 05:30 1.50 RURD CSG AF PJSM;Rig up Weatherford tubing tongs. 05:30 06:00 0.50 PULD TBG AF Pick u acker ass .run 4 1/2 - 12.6# L-80 H dril 563 Tubin .Running Weatherford Jam on M/U of tubing. Re ort Date: 7/11/2008 Job Cate o DRILLING 24 Hr Summary Run 4 1/2" TBG completion. Run GR-CCL correlation. Reverse Circ. inhibited brine. Land hanger. Run "N" Test tool on slick line. Set Packer.POOH w/ N-test tool 100', Test packer 1000 psi 10 min.,POOH w/ N-test tool, Set two way check, N/D BOP :Start Time End Time Dur (hrs) 'i Ops Code ~ Activi Code Ops Status Trouble Code Comment 06:00 12:00 6.00 RUNPUL TBG AF Cont. to run 4 1/2" 12.6PPF L-80 H dril 563 TBG total of 114 joints) 4663'. 12:00 14:30 2.50 LOG CSG AF PJSM. R/U Expro E/L. Run GR-CCL log to 4800'. POOH and R/D Expro. 14:30 16:00 1.50 RUNPUL TBG AF Mouse hole joint #114 and M/U 3.75' pup joint. M/U joint#114. M/U Vetco 10 3/4" X 4 1/2" TBG hanger and landing joint. 16:00 16:30 0.50 CIRC CFLD AF Reverse circulate 110bb1s 8.7ppg 6%KCL brine w/corrosion inhibitor. 16:30 17:00 0.50 RUNPUL TBG AF Drain stack and land TBG hanger. Test TBG hanger seals to 5000psi/10min. 17:00 19:00 2.00 RUNPUL EQIP AF PJSM. R/U Pollard slick line. RIH and seat N" Test tool. 19:00 19:30 0.50 SETREL PKR AF PJSM; with BJ, test lines to 5000 psi, Set acker with 4000 psi for 10 min. , no leak off Set acker at 4663' Wireline measurement measurements . www.peloton.com Page 9/10 Report Printed: 9/1012008 X101'1 M ®oi~comp>any Operations Summary Report) Well Name: KENAI UNIT 12-17 - - - - - -- Ops Trouble - - - Start Time End Time -- Dur (hrs) Ops Code Activity Code ' Status Code Comment 19:30 20:00 0.50 TEST PKR -- AF - Pull "N" test tool up hole 100'. Test packer down tubing with 1000 i fo 1 min.Good test no leak off. 20:00 20:30 0.50 RUNPUL SLIK AF POOH with "N" test tool rig down Pollard wireline. 20:30 21:00 0.50 RUNPUL VLVE AF Set two way check valve in tubing hanger. Lay down landing joint. 21:00 22:00 1.00 CIRC CFLD AF Flush surface lines, choke manifold, and stack with fresh water 22:00 02:30 4.50 NUND BOPE AF PJSM; Nipple down BOP stack and equip. 02:30 06:00 3.50 NUND TREE AF PJSM;Install tree and test void to 5000 psi. Pull TWC. Daily Operations Re ort Date: 7/12/2008 Job Cate o DRILLING 24 Hr Summary Test casing 2000 psi, 10 min. R/D GD-1 Ops Trouble --- -_ - Start Time End Time Dur(hrs) OpsCode - .4ctivityCode Status Code Corrrr.-t 06:00 07:00 1.00 TEST PKR AF ~ R/U kill line to u er annulus and test acker down 41/2" X 7 5/8" annulus to 2000 si w B o en 10min. et 07:00 12:00 5.00 RURD RIG AF R/D DP spinners. L/D subs and sub rack and slips. R/D snub post, choke hose, kill hose, bleeder hose and fill up hose. R/D mud manifold. Clean pits. C/O steering pump and shim clutch. PJSM. Remove long bales. R/D and pickle pump#3. R/D poorboy gasbuster, top drive service loop, kelly hose, and top drive slide. R/D shock hoses. R/D MWD shack and Epoch unit. Offload excess fuel. Set top drive in rack and install clamps. 12:00 00:00 12.00 RURD RIG AF PJSM; R/D and unpin top drive, load out, Remove turnbuckles, Lay down torque tube, T bar, and strong back.Rig down cylinder tarps in derrick,and carrier. Rig down derrick board.Prep derrick to scope down, Rig down BOP connex stairs. Lay down beaver slide. Change out two suction valves in pits. Change out both compensator cylinder on top drive. Unplug BOP connex, choke house, and dog house. Empty water tank. PJSM; Load out trailers and organize yard, Move pump #3.Cement silo, hanson tank, cent. van, BOPS, Prep to lower derrick. 00:00 06:00 6.00 RURD RIG AF PJSM; Hold safety meeting with crane operator. Crane off grey iron,choke house, dog house, fuel tank.BOP connex. and load out.Load out fuel tank. Report Date: 7/12/2008 Job Cate o DRILLING 24 Hr Summary R/D Rig _. Ops Trouble Start Time End Time - Dur (hrs) Ops Code Activity Code Status Code Comment -- 06:00 08:00 2.00 RURD RIG -- AF -- - R/D sub base. Load trailers. 08:00 08:30 0.50 RURD RIG AF PJSM to move rig. 08:30 09:00 0.50 RURD RIG AF R/D sub base. Prep to move rig. www.peloton.com Page 10/10 Report Printed: 9/10/2008 . L.Lj% �:Wjd 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 DATE SPECIAL INSTRUCTIONS: Advertisement to be published was e-mailed Type of Advertisement Legal® ^ Display Classified ^Other (Specify) SEE ATTACHED )ICE IN TRIPLICATE AOGCC, 333 W. 7th Ave., Suite 100 TO Anchora e AK 99501 REF TYPE NUMBER AMOUNT 7 VEN z ARn 02910 FIN AMOUNT SY CC PGM ~ 08 02140100 2 REQUISIT NE Y: ~, AGENCY CONTACT DATE OF A.O. Jod Colombie Au ust 29 2008 PHONE PCN DATES ADVERTISEMENT REQUIRED: September 2, 2008 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. PAGE 1 OF I TOTAL OF 2 PAGES ALL PAGE LC ACCT FY NMR DIST LIO 73451 DIVISION APPROVAL: 02-902 (Rev. 3/94) ~ 1 ~ Publisher/Original Copies: Department Fiscal, Department, Receiving ADVERTISING ORDER NO. NOTICE TO PUBLISHER INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED A O_02914007 AFFIDAVIT OF PUBLICATION (PART2 OF THIS FORM) WITH ATTACHED COPY OF !1 ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE AO.FRM • • Notice of Public Hearing State of Alaska Alaska Oil and Gas Conservation Commission Re: Request for Disposal Injection Order for Kenai Unit (KU), Well 12-17, located within the Kenai Peninsula Borough, Alaska Marathon Oil Company (Marathon), by letter dated August 20, 2008 and received on August 22, 2008 has applied for a disposal injection order in accordance with 20 AAC 25.252. An order would authorize disposal of Class II drilling and production wastes into the Sterling formation using existing well KU 12-17. The proposed disposal injection is located within Section 17, T4N, R11 W, Seward Meridian. The receiving zone for this well is proposed at an approximate depth range of 3915 to 4060 feet true vertical depth subsea. Marathon's application may be reviewed at the offices of the Commission, 333 West 7th Avenue, Suite 100, Anchorage, Alaska, or a copy may be obtained by phoning the Commission at (907) 793-1221. The Commission has tentatively scheduled a public hearing on this application for October 7, 2008 at 9:00 am at the offices of the Alaska Oil and Gas Conservation Commission at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. A person may request that the tentatively scheduled hearing be held by filing a written request with the Commission no later than 4:30 pm on September 18, 2008. If a request for a hearing is not timely filed, the Commission may consider the issuance of an order without a hearing. To learn if the Commission will hold the public hearing, please ca11793-1221 after September 26, 2008. In addition, a person may submit a written protest or written comments regarding this application and proposal to the Alaska Oil and Gas Conservation Commission at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. Protests and comments must be received no later than 4:30 pm on October 3, 2008, except that if the Commission decides to hold a public hearing, protests or comments must be received no later than the conclusion of the October 7, 2008, hearing. If you are a person with a disability who may .need special accommodations in order to comment or to attend the public hearing, lease contact the Commission's Special Assistant Jody Colombie at 3-1221. aniel T. eamount, Jr. Chair STOF0330 #544389 $219.12 • AFFIDAVIT OF PUBLICATION STATE OF ALASKA THIRD JUDICIAL DISTRICT Shane Drew being first duly sworn on oath deposes and says that he/she is a 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 September 2, 2008 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~~(,n~,~.. ~ ~ ~ =~ -1VoUce of Pttblic Hearing . ~ State ofAlaska Alaslc`JItNI end Gas Conservation Commission Re: Reque~tfor Dispoealln)ectlon Order for Kenai Uult (K[-), WeU 12-17, located trithln U,e ICe~I P.eninsnla soro,agh, nlaska Marathon Oll Company (MarathoN, by letter dated August 20, 208 and received'on August 22, 2008 has applied~fof a disposal fniectiorrorder m accordance with 20 v4AC 25:252. An order would authorize disposal of Class JI drilAng and production wastes into the Sterl(ng formation using existing well KlJ 1~i-17. The proposed disposal (n)ection is located within Section 17, T4N, R11W, Seward Meridian. The receiving zone fol his well is proposed at an approximate depth range of 3915 to 4060 feet true vertical depth subsea. Marathon's application mayy be reviewed at the offices of the Comm)ssion 333 West 7th Avenua, Suite 100, Anchora e, Alaska, or a cppy ma~be obtained by phoning the Commission at x907) 7 3-1221: The Commission has tentatively scheduled a public hearing on this a lication for October 7, 2008 at 9:00 am at'the offices of the Alaska Oil and Gas Conservation Gommssiomat 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. A pperson may request that the Tentatively scheduled hearing be heltl byfiting a writfieh request with the Commission no later than 4:30. pm on September 18, zoo8. if a request for a hearing is nottimely tiled; the Commission may consider the issuance of an order without a heafing. To learn if the Commission will hold the publichearing, please call 793-1221 after .' September 26, 2008.' In addition, a person may submit a written protest or written comments regarding this applicatibn and proposal. to the Alaska oil and Gas Conservation Commission af333 West 7th Avenue, Suite 900; Anchorage, Alaska 9450E Protests and Comments must be received ndlater than 4:30. pm on October 3,.2008, except that if the Commission decides to hold a public hearing protests or Comments must be received no later than the condusionof the October 7, 2008, hearing: If you are a person with a disability who may need spepial accommodations in°order to comment or to attend the public hearing, please contactthe &ommission's Special Assistant Jody Colombie at 793-122L Daniel T: Seamount, Jr. Chair AO-02914007 Published: September 2, 2008 Subscribed and sworn to before me this ~ day of ~C/ 20 L~ ~ ' ((!f(!/~~~ ` ~ ;. PRY .- `, ~ r_ Notary Public in and for ~ } : ®~ •• "^ The State of Alaska. V ' _ B~~G Third Division °- ~ •• ~° ~ Anchorage, Alaska "' ~' • s• ~ MY COMMISSION EXP~S ~~ ~~qj'E ~ Q'• ~ ~1, ~ ~ ADVERTISING INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED /~ 0_02914007 ` ORDER AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF 1 I 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 Anchorage. AK 995(11 PHONE PCN M 907-793-1238 - DATES ADVERTISEMENT REQUIRED: o Anchorage Daily News September 2 2008 , PO Box 149001 Anch AK 99514 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ora e g ~ 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 1 Colombie, Jody J (DOA) From: Colombie, Jody J (DOA) Sent: Friday, August 29, 2008 2:03 PM Subject: Public Notice Kenai 12-17 and aio5-15 McArthur River Attachments: DIO Kenai 12-17.pdf; aio5-015.pdf BCC:'Dale Hoffman'; Fridiric Grenier; Joseph Longo; 'Lamont Frazer'; 'Mary Aschoff; Maurizio Grandi; P Bates; 'Scott Nash'; Tom Gennings; 'Willem Vollenbrock'; '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'; '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'; 'Marguerite kremer'; 'marty'r 'Matt Rader'; 'Meghan Powell'; Melanie Brown; 'Mike Bill'; 'Mike Mason'; 'Mikel Schultz'; 'Mindy Lewis'; 'MJ Loveland'; 'mjnelson'; 'mktn7200'; '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'; 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) Attachments:DIO Kenai 12-17.pdf;aio5-O15.pdf; Jody J. Colombie Special Assistant to the Commission Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501 (907) 793-1221 Direct Line (907) 276-7542 Fax 8/29/2008 • 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 Mark Wedman Baker Oil Tools 200 North 3rd Street, #1202 Halliburton 4730 Business Park Blvd., #44 Boise, ID 83702 6900 Arctic Blvd. Anchorage, AK 99503 Anchorage, AK 99502 Schlumberger Ciri Ivan Gillian Drilling and Measurements Land Department 9649 Musket Bell Cr.#5 2525 Gambell Street #400 PO Box 93330 Anchorage, AK 99507 Anchorage, AK 99503 Anchorage, AK 99503 Jill Schneider Gordon Severson Jack Hakkila US Geological Survey 3201 Westmar Cr. PO Box 190083 4200 University Dr. Anchorage, AK 99508-4336 Anchorage, AK 99519 Anchorage, AK 99508 Darwin Waldsmith James Gibbs Kenai National Wildlife Refuge PO Box 39309 PO Box 1597 Refuge Manager Ninilchick, AK 99639 Soldotna, AK 99669 PO Box 2139 Soldotna, AK 99669-2139 Penny Vadla Richard Wagner Cliff Burglin 399 West Riverview Avenue PO Box 60868 PO Box 70131 Soldotna, AK 99669-7714 Fairbanks, AK 99706 Fairbanks, AK 99707 Bernie Karl North Slope Borough Williams Thomas K&K Recycling Inc. PO Box 69 Arctic Slope Regional Corporation PO Box 58055 Barrow, AK 99723 Land Department Fairbanks, AK 99711 PO Box 129 Barrow, AK 99723 ~-~~t~ ~~'~~ ~ ~ *1 • M Marathon MARATHON Oil Company August 20, 2008 AUG 2 2 ~i?08 Mr. Daniel T. Seamount, Chairman Alaska Oil and Gas Conservation Commission 333 West 7~' Avenue, Suite 100 Anchorage, AK 99501 RE: Application for Authorization to Inject Class II Waste Fluids Well KU 12-17, Kenai Gas Field Kenai Unit Kenai Peninsula Borough, Alaska Dear Chairman Seamount: Alaska Oil & Gas Cons. Commission Anchorage Enclosed is Marathon Oil Company's (Marathon) application for authorization to inject Class II waste fluids in connection with a new UIC Class II disposal well (KU 12-17) located in the Kenai Gas Field. Marathon is the operator for the KU 12-17 well and for the Kenai Gas Field. This well is designed, and will be operated similar to the existing UIC Class II disposal wells in the Kenai Gas Field. The KU 12-17 well permit to drill was approved by the AOGCC (Permit #208- 089). The well has been drilled and completed. Injection operations will not begin until this application is approved by the Commission and the required mechanical testing on the well is completed. Disposal wells in the Kenai Gas Field operate under an Aquifer Exemption granted by the EPA for all intervals below 1300 feet true vertical depth. The new well will inject fluids only within the exempted interval. For AOGCC monthly reporting, this is referred to as the Kenai Undefined WDSP, Pool Code 448057 (when the injected fluids are water) or Kenai Undefined WDSP G&I, Pool Code 448036 (when the injected fluids are processed waste slurry). This application meets all the requirements of 20 AAC 25.252. If you have any questions concerning this application please contact me at (907) 565-3042. ~~; Sincerely, j ,%~ "~ ~, ~~ ~.yndon C. Ibele, PE Production Coordinator • Alaska Asset Team North America Production Organization P.O. Box 196168 Anchorage, AK 99519-6168 Telephone 907/561-5311 Fax 907/565-3076 Enclosures • Marathon Oil Company Kenai Gas Field Application for Authorization to Inject Class II Waste Fluids Well KU 12-17 TABLE OF CONTENTS 1. Letter of Application (20 AAC 25.252 (a)) 2. Burden of Proof (20 AAC 25.252(b)) 3. Location/Plat Maps (20 AAC 25.252 (c)(1)) 4. Operator and Surface Owners (20 AAC 25.252(c) (2)) 5. Affidavit of Notice to Surface Owners and Operators (20AAC 25.252(c)(3)) 6. Geological/Reservoir Information Concerning Injection Zone (20 AAC 25.252(c)(4)) 7. Well Logs for KU 12-17 (20 AAC 25.252(c)(5)) 8. Well Casing Information and Mechanical Integrity (20 AAC 25.252(c)(6)) 9. Injection Fluids (20 AAC 25.252(c)(7)) 10. Average/Maximum Injection Pressures (20 AAC 25.252(c)(8)) 11. Waste Confinement and Fracture Information (20 AAC 25.252(c) (9)) 12. Formation Water Quality Information (20 AAC 25.252(c) (10)) 13. Aquifer Exemption (20 AAC 25.252(c) (11)) 14. Mechanical Integrity Demonstration and Testing (20 AAC 25.252 (c)((d) Through (g))) 15. Mechanical Integrity of Other Wells Within '/ mile Radius (20 AAC 25.252(c) (12) and (h)) 16. Well Design, Construction and Testing (20 AAC 25.412(a) through (e)) KGF: KU 12-17 Injection Application 1 LIST OF FIGURES & EXHIBITS Figure 1 Grind and Inject Facility Plot Plan Figure 1A Drill Site 41-18 Lay Out Figure 2 Cook Inlet Locator Map Figure 2A Kenai Gas Field Map Figure 3 Enlarged Kenai Gas Field Map Figure 4 Affidavit of Notice to Owners and Operators Figure 5 Well Log: Well KU 12-17 Figure 5A North-South Cross Section Figure 5B East-West Cross Section Figure 5C Sterling Formation Structure Map Figure 6 Well Construction Schematic Figure 6A Well Path Design Figure 7 Well Head Schematic Figure 8 Packer and Tubing Design Figure 9 Casing Design Figure 10 Fracture Simulation Results Part 1 Figure 10A Fracture Simulation Results Part 2 Figure 11 Water Sample Data Figure 12 EPA Aquifer Exemptions • KGF: KU 12-17 Injection Application 2 • • 1. Letter of Application (20 AAC 25.252 (a)) Marathon Oil Company (Marathon) is making application for authorization to inject Class II waste fluids in connection with a new UIC Class II disposal well. The well, KU 12-17, has an approved permit to drill (#208-089). The well has been drilled and completed. The well will be used primarily to dispose of produced fluids, slurried and ground drill muds and cuttings, pipe scale, miscellaneous production waste, storm water and workover fluids originating from wells in the Kenai Gas Field, Cannery Loop Gas Field, Ninilchik Unit, Beaver Creek Field, Sterling Gas Field, and other Cook Inlet properties operated by Marathon and others, as well as Marathon's and others' exploration wells on the Kenai Peninsula. Amore complete description of the injected fluids is contained in Section 9, herein. A schematic of Marathon's grind and inject facility is shown in Figure 1. This facility will be used to process wastes for injection into Well KU 12-17. The facility was upgraded in 2007 and 2008 to improve operability and safety. Figure 1A shows the lay out of drill site 41-18 where the grind and inject facility and Well KU 12-17 are located. The proposed injection interval in KU 12-17 is the Sterling B1 and B2 Formation at 4002 to 4148 feet true vertical depth (TVD) in this wellbore, which is within the defined aquifer exemption (see Section 13). At this location, these intervals are water-wet sands (i.e., sands with no productive gas). A detailed description of the disposal interval is included later in Section 6. The well was drilled to 5788 feet TVD or 6585 feet measured depth (MD). The well is located on oil and gas lease ADL 22330. The perforated interval in the well will lie between 4033 and 4141 feet TVD (4830 and 4938 ft MD), although it is unlikely that the entire interval will require perforation. The well has not yet been perforated. 2. Burden of Proof (20 AAC 25.252(b)) Marathon believes that the information contained in this application meets the burden of proof to protect the public interest and demonstrates that the injected waste streams will not move into sources of freshwater. KGF: KU 12-17 Injection Application 3 • • 3. Location/Plat Maps (20 AAC 25. 252 (c) (1)) Well KU 12-17 was drilled from the existing 41-18 drill site in the Kenai Gas Field on the Kenai Peninsula. See Figure 2 for a Cook Inlet locator map and Figure 2A for a detailed map of the Kenai Gas Field. The surface location is 848 feet FNL, 742 feet FEL, Sec. 18, T4N, R11W, S.M. The bottom hole location is 2823 feet FNL, 163 feet FWL, Sec. 17, T4N, R11W, S.M. Figure 3 shows the location of wells nearby the KU 12-17 well. All the nearby wells are operated by Marathon. No wells are within '/ mile of the perforated interval of the KU 12-17 well. Figure 3 is an enlargement of the 41-18 drill site area shown on Figure 2A. Although there are other wells on the 41-18 drill site, their wellbores are greater than '/ mile away from KU 12-17 in the disposal zone interval. 4. Operator and Surface Owners (20 AAC 25.252(c) (2)) Operator: Marathon Oil Company 3201 C Street, Suite 800 Anchorage, AK 99519-6168 Surface/Subsurface Owners: Salamatof Native Corporation Ms. Penny Carty, President P O Box 2682 Kenai, AK 99611 Cook Inlet Region Corporation Kim Cunningham, Director Land and Resources 2525 C Street, Suite 500 P O Box 93330 Anchorage, AK 99509-3330 Oil and Gas Operator, Lessee and Royalty Owner: Marathon Oil Company 3201 C Street, Suite 800 Anchorage, AK 99519-6168 KGF: KU 12-17 Injection Application 4 • • 5. Affidavit of Notice to Surface Owners and Operators (20AAC 25.252(c)(3)) An affidavit affirming written notice to Owners and Operators is enclosed as Figure 4. The radius from the KU 12-17 surface and bottom-hole locations used to identify the third parties to notify is included with Figure 4. 6. Geological/Reservoir Information Concerning Infection Zone (20 AAC 25.252(c)(4U The Sterling formation consists of thick, sandy, meandering, stream bar deposits alternating with well preserved bog and floodplain coals and shales. The Sterling B1 and B2 gross sand package (Figure 5) is between 4002 and 4148 feet TVD (4799 and 4945 ft MD) in the KU 12-17 well (API: 501332057700). The B1 and B2 sands are within the defined aquifer exemption. The Sterling formation also contains the shallowest gas producing intervals in the Kenai Gas Field, which have been designated as Pools 3, 4, 5.1, 5.2 and 6. Natural gas production and reserve recovery of the gas-bearing Sterling Pools are not affected by injection operations in this area of the field. In Well KU 12-17, perforations in the Sterling B2 sand will be utilized for the purpose of primary injection, with an expected upward fracture growth into the B1 interval. These intervals have a total net sand thickness of 85 feet with effective porosities between 15-28% and permeabilities between 90-1000 millidarcies. All of the Sterling sands are wet in this area of the field, with possible exception of the deepest sands, Pool 6, which are near to the edge of the gas accumulation and the water contact. In the unlikely event that vertical fracturing extends downward to the Pool 6, its location this far downdip and at the edge of the gas accumulation is of no concern. A thick (>50 ft) shale and coal sequence is identified immediately above the B1 interval. This sequence is laterally extensive and is correlated across the field. Additionally, a series of relatively thick (20-100 ft) shale, silt, and coal sequences occur in Pool 3 sands overlying the injection interval (Pool 4). Past operating experience and injection modeling and monitoring of existing disposal wells have shown that the upper-confining intervals are effective barriers to prevent migration of the injected wastes beyond the defined aquifer exemption. Figures 5A and 5B are north-south and east-west cross sections in the drill site 41-18 area (the surface location for Well KU 12-17). These cross sections show KGF: KU 12-17 Injection Application 5 • • the lateral continuity of the disposal interval, Kenai Pool 4, and the upper and lower confining coals and shales. Figure 5C is a structure map on top of the Sterling. It shows that faulting is not an issue in the 41-18 drill site area and that reservoir structure is relatively uncomplicated in the area. There are no known transmissive faults in the drill site 41-18 vicinity at the depths in question. The gross sand interval into which injection will occur is more than 2600 vertical feet below the non-exempt freshwater strata. Because of this significant depth of injection, the numerous confining coal and shale intervals within the Sterling Formation, and the safe history of injection into the Sterling sands, no problems of disposal fluid containment or fracture growth into freshwater aquifer zones are foreseen (see Section 11, Waste Confinement and Fracture Information.) 7. Well Logs for KU 12-17 (20 AAC 25.252(c)(5)) Well logs for the KU 12-17 well have been submitted to the Commission. Enclosed as Figure 5 is a section of the KU 12-17 well log showing the disposal interval, the perforated interval and the upper and lower confining intervals. 8. Well Casing Information and Mechanical Integrity (20 AAC 25.252(c)(6)) Figures 6 and 6a show the well construction schematic and well path. The well is cased and cemented in accordance with Commission regulations and will be tested prior to commencing injection in accordance with Commission regulations. The integrity of the tubing and packer will also be tested in accordance with Commission regulations prior to commencing injection. A schematic of the well head is also enclosed as Figure 7. Specifications for the packer, tubing and casing are enclosed as Figures 8 and 9. 9. _Iniection Fluids (20 AAC 25.252(c)(7)) Injected wastes will be Class II wastes generated by Marathon and others from Cook Inlet area oil and gas E & P operations, that meet the EPA definition of RCRA E & P Exempt Wastes per 53 CFR 25446 July 6, 1988 and Crude Oil and Natural Gas Exploration and Production Wastes: Exemption From RCRA Subtitle C Regulation, May 1995, EPA 530-K-95-003. KGF: KU 12-17 Injection Application 6 ~ • Typical Class II waste streams which are anticipated to be disposed in KU 12-17 include but are not limited to: drilling, completion, workover and production fluids, glycol dehydration wastes, drilling mud slurries, tank bottoms, pipe scale (including NORM), precipitation within containment areas and pad storm water retention basins, drum rinsate, equipment wash water, and soil and organic materials that are contaminated with crude oil or natural gas liquids. Expected Operating Parameters: 1. Injection Rates: 2-5 BPM 2. Daily Average Volume: 1000 bbls per day 3. Daily Maximum Volume: 7200 bbls per day 4. Expected Injected Volume Over the Life of the Well: >1,000,000 bbls 10. Average/Maximum Infection Pressures (20 AAC 25.252(c)(8)) Expected average surface injection pressure is estimated to be 1600 psi during injection of slurried mud and cuttings. The maximum injection pressure will be limited by the 3000 psi working pressure of the injection pump which is equipped with a pressure safety relief valve set at 2400 psi. 11. Waste Confinement and Fracture Information (20 AAC 25.252(c)(9)) Based upon fracture simulation studies and the many years of experience that Marathon has in operating and monitoring the performance of UIC Class II injection wells in the Kenai Gas Field, Marathon believes that no freshwater aquifers are at risk of being affected by the proposed injection activity. The injected waste will be confined to the disposal interval in both the vertical and horizontal directions and remain within the defined aquifer exemption interval. The following is a discussion concerning the modeling and performance of the mud/cutting disposal projects conducted in wells KU 14-4, KU 11-17, KU 24-7, and KU 24-7RD. A discussion of anticipated fracture dimension results for the KU 12-17 well is also presented. Well KU 14-4: Numerical model studies of the past injection in KU 14-4 were conducted throughout the life of the project. The model studies were not well defined because of lack of accurate rock property and stress data in the large KGF: KU 12-17 Injection Application 7 • • interval affected by the injection. A post-mortem analysis of the project was conducted after the injected slurry established communication with the casing annulus above the cement top. This analysis revealed that a diagnostic plot of instantaneous shut-in pressure (ISIP) versus cumulative injected volume could be used to detect major instances of fracture height growth. In principal, major breaks, or drops in ISIP correspond to growth of a vertical fracture through bounding shales or coals. This analysis is somewhat subjective and .can be difficult to substantiate without other direct observation of fracture height. In the KU 14-4 project, the arrival of fluid at the cement top provided this additional data. While the ISIP analysis is subjective, it has provided consistent results in all four disposal projects, thus, improving the degree of confidence in the results. This project accomplished the disposal of about 460,000 bbls of slurry into a 40 to 50 feet perforated interval in the Sterling B1-B2 sands at 4194 feet TVD. After parting through an upper shale, the fracture grew rapidly through a lower stress sand until it communicated with the wellbore at the casing cement top at about 3560 feet TVD. The KU 14-4 was plugged and abandoned in July 1996. Well KU 11-17: A similar ISIP versus cumulative injection analysis was performed for injection periods in the KU 11-17 well. Injection occurred in two different time frames: early injection was in the Sterling C1-C2 sands, with later injection occurring into the Sterling B3-B4 sands. Fracture modeling of the approximate 600,000 bbls of slurry injected into the Sterling B3-B4 sands was conducted by Bob Barree, formerly of Marathon Oil Company and presently of Barree and Associates, located in Littleton, Colorado. This modeling predicts a developed fracture system of roughly 750 feet in height with the main fracture half-length of 2400 feet with numerous transverse components and possible thin fingers extending up to 4800 feet half-length in local sand stringers. The top of the 750 feet frac height models at about 4230 feet TVD which is well below the 1300 feet TVD lower limit (base) for protection of the freshwater sources as described in the approved aquifer exemption for the. Kenai Unit. Both the KU 14-4 and KU 11-17 wells indicate a similar rate of height growth with cumulative volume injected. Both yield similar pressure ISIP behavior at about 650 feet of upward height growth for approximately 500,000 barrels of total injection. Because of lithostatic stress gradients and gravity segregation of injected solids, significant downward fracture growth was not anticipated. Modeling also confirms this behavior. Overall rate of height growth is related to several factors including degree of pressure depletion in the Sterling sands, thickness of overlying shales and coals, and overall sand/shale ratio in the overlying sediments. It appears that wells intersecting a more shale-rich sequence will allow for more injection capacity. Modeling also confirms this KGF: KU 12-17 Injection Application 8 • • behavior. This is consistent with North Sea operations, where massive shale intervals are typically selected for disposal. Sand, or reservoir quality, does not substantially affect slurry placement, other than to somewhat increase overall fluid loss. Wells KU 24-7 and KU 24-7RD: Fracture modeling was also completed for slurry injection into the Sterling A10-A11 sands for the KU 24-7 from 1996 until the well was sidetracked in 2005 and then in the KU 24-7RD from 2005 through late 2007. Slurry injection continues into the KU 24-7RD in the Sterling A10-A11 sands. Prior to a 2007 fracture model update, all previous models on the KU 24- 7 and KU 24-7RD. predicted fracture height growth at 300 to 400 feet with the top of the predicted fracture at 3681 feet TVD and the bottom at 3968 feet TVD. These previous models predicted a fracture half-length of about 1900 feet in length at a cumulative injection volume of 225,000 bbls. The latest study was performed in October 2007 at cumulative injection volume of 770,000 bbls, including 581,000 bbls of cuttings laden slurry. This model was run to reflect sensitivities based on factors that influence fracture length. The fracture length is impacted by a number of factors, such as volume and particle size of solids to be disposed, pore size of the reservoir rock, vertical containment (confining shales and coals), and distribution of rock properties including lateral and vertical transverse fracture components (secondary fracture swarms). It was determined that the overriding factor was the transverse component. Using low, moderate, and high values for transverse fracture components, modeling results predicted a range of fracture dimensions. The most reasonable predicted fracture height of 210 feet and fracture length of 4000 feet are well within the boundaries set forth in the Kenai Unit aquifer exemption and are largely consistent with historic work. Please refer to Figure 10 for a summary of the modeling results. Figure 10A shows that a number of other wellbores on drill site 41-18 penetrate the Sterling formation within this 4000 foot fracture radius at the bottomhole location of Well KU 24-7RD. These offsetting wellbores are subject to daily pressure monitoring of inner and outer casing annuli during all injection cycles. In the history of all of the Kenai Gas Field injection/disposal wells, there has been no evidence of breakthrough of injected fluids to any other wellbore. Past experience has shown that injected tracers do not adequately indicate the position of the fracture top for these large scale injection treatments. If the fracture deviates from the axis of the wellbore by more than a few degrees it will leave the detection range of a wellbore tracer tool within 50-100 feet of the KGF: KU 12-17 Injection Application 9 • ~ injection perforations. This shortcoming applies to both temperature and radio- active tracers. None of the pressure behavior responses observed in any disposal project in the Kenai area to date has indicated horizontal fracture development. To propagate a horizontal fracture the fluid injection pressure must equal or exceed the total overburden pressure (roughly 1.0 psi/ft). All of the observed injection (ISI) pressures are well below the overburden pressure, and are consistent with vertical fracture propagation. Well KU 12-17: Marathon proposes to begin slurry injection into the Sterling B1- B2 sands in the newly drilled KU 12-17 well. These sand packages lie between 4002 and 4148 feet TVD (4799 and 4945 ft MD). The proposed perforated interval is 4033 to 4141 feet TVD (4830 to 4938 ft MD). The well has not yet been perforated. Based on similar rock and fluid properties and injection parameters, it is anticipated that the same fracture behavior response as that described above for the KU 11-17 and KU 24-7RD wells will result. A fracture with height of 200 feet and half-length of 4000 feet is the most likely result for this well once injection has begun and slurry cumulative volumes exceed 500,000 bbls. Once actual injection pressure, volume, and ISIP data have been gathered for this well, numerical modeling will be performed to verify these predictions. Marathon plans to continue to conduct annual internal due-diligence reviews for all active slurry injection wells including as appropriate: reviews of MIT's, pressure trends, and model updates. On an on-going basis, Marathon will conduct continuous electronic (SCADA) monitoring of inner and outer annulus pressures on all Kenai Gas Field slurry injection wells. Additionally, annulus pressures for all wells on the 41-18 drill site are recorded daily, and annulus pressures for all other wells throughout the Kenai Gas Field are read and recorded weekly. Marathon is confident that wastes injected into KU 12-17 will be confined to the disposal interval in both the vertical and horizontal directions and will remain within the interval approved in the aquifer exemption. 12. Formation Water Quality Information (20 AAC 25.252(c)(10)) Figure 11 is a water analysis of a Sterling formation sample taken from the Kenai Gas Field, Well KU 14-6. The Sterling disposal interval has previously been granted an aquifer exemption by the EPA. There has been no indicated incompatibility between the injected waste streams and the in-situ formation KGF: KU 12-17 Injection Application 10 • • fluids over the many years Marathon has injected similar waste at the Kenai Gas Field into the same formation. 13. Aquifer Exemption (20 AAC 25.252(c)(11)) The US EPA has previously granted an aquifer exemption under 40 CFR 147(b)(1)(iii) for the strata in the Kenai Gas Field below 1300 feet from the surface. A copy of the CFR is enclosed as Figure 12. 14. Mechanical Integrity Demonstration and Testing (20 AAC 25.252.(c)((d) through (g))) A mechanical integrity test in accordance with 20 AAC 25.412 will be conducted on the well prior to injection. The inner and outer annulus pressures of Well KU 12-17 will be continuously monitored (via SCADA) and reported to the Commission on Form 10-406. Additionally, annulus pressures for all wells on the 41-18 drill site are recorded daily, and annulus pressures for all other wells throughout the Kenai Gas Field are read and recorded weekly. 15. Mechanical Integrity of Other Wells Within'/4 mile Radius (20 AAC 25. 252(c)(12) and (h)) There are no wells with a'/ mile radius of the proposed perforated interval in the KU 12-17 well. There are other wells drilled from the 41-18 drill site, but they are greater than '/ mile from the disposal well in the disposal interval. See Figure 4. 16. Well Design, Construction and Testing (20 AAC 25.412(a) through (e)) The KU 12-17 well is constructed in accordance with 20 AAC 25.412. The well will be tested and monitored in accordance with this regulation. Tubing in the well will be 4 %2 inch, 12.6 Ib/ft, L80, Hydril 563. The wellhead is rated for 5000 psi. The top of the packer is set at 4663 feet. The packer specifications are shown on Figure 8. Casing specifications are shown in Figure 9. END KGF: KU 12-17 Injection Application 11 FIGURE 1 e - ~'~~~ _ SCHEMATIC DRAWING OF CUTTINGS GRINDING AND INJECTI®N SYSTEM HM4171 :-%idseB.sp el n~reeP"®a"". uP .ssa v _ _ _ i ~. I ~ 3t ~ JJ ~ .e s0 8 cnfi IQtD 6 5 ~ s C 12 ~ 8 i 9 ..~J6E.zpp -y ~ 13 X16' ~ I> I6 \TI I7, r s4~ , .1 up, _ I / I I ~\ / 1 \ ~~ ~I III \ / / P -- I li', III ~~.i I 1 ~ i/ \ / I - It~1F+.aN.le iTx1aG o a Y.iJSe,eS).rr ` ~~~ ` ~F V u ` TANKS ` -_ a o --- _ W:~ y fGU. Z4-] i -I ~ ~ ' b'p I / ~ __- ___ _____ _________.1 w.Erna+ ~. N I ® WA1FA N]L 1 ' ~,~ ~ /~ C~v / eero...}_. B~csRV/.Tex II ~ I I II C Kl4 41-16 e^ ~~ a~ ~ o4A t >asi~g ~ .n ~ rnx \\~~yy~, Pwl'a.ES.tB• II I ~ 1 q~ v-zasas''sia ~~ ~\ ~: ea+ma qPE Ei.suor J. III 1 gzpp' B1D"" ~w ~ 11 et~ ~u~l~e ~> ~ yx$ ~~W ~ ' 1 .z.X3.YM61 I s ~. ttlP Tyr .f II / ~ i ~\ B ~ ~~ _ 1 \ I (RINgNO 6 v elm ~I </ \ I ~ :I \ RIJEC110N SiS1EN _ 5 / ttl •® II it .~ I 1 ~ I,' I •` `,' ~ .e 11: :~ i '~ -~ ~' `' PAO ~pln ~ Kv. ]J-] I I 16.P N44 xvusE Figure 1A ~- + ~~ ;I ,I~, ICI iIl •- I I M~1a+Sfi].Rl 1 Y_E~nAas ~~ x%YVV~VY~CV ~>3SST5nT 8 ~ Iv~P Y PIPE ~, n.3Y Y' ~ ~ k ^'~y uWlipaNV aFTl ~ ~ D~D, ement ,Duna tl„~ ~, r o Rrom.<a I/z' rmar a, neeen Fuynt a'olxoy monament PI ~eenra. Exlaling v I mrlplmas Ime ® Monilnr Well pp vvl.e -o Pipm9 under Duna o EIOCMCO cwi cF box Septic Vent t Area of expect a pooling Evpoclpa tlralnagv fa. ABBREIhATIONS O.H.E. OVERHEAD EIECTi?IC O.H. P/W OVERHEAD PIPE WAY E.M. ELECTRIC ME1ER ~~~glltl I ~p'~F'~'F'A~s ~ ~ )~~IPne at mp I u eN or top of pipe Ipr monitoring Weil, ere taken ~ W .{. y~~ ~ `9 /WI ~ 2) Rafe~enm avtum e I ' ~k:~49~ r~ i .............. .....::. . ~ moon aaa oxm= D.DD mr moaanona anown. .. j / J) All beoringa arc gritl pnlevv noletl otnerniae. ~~:,Y H9. 1T WIAtE' ~ 4) Bvaly o! Covrtllnvtee is U.6.C. & G.S. Tri Station AIIDRY In If ~,_ 4@-S .~_~ , 0.6.P. Zane 4. Alerage conmgmce pt points eRpm~ -01'04'56' ~~~ ~~~ ,Il~ 6) T.6.N, elev.= 6].BO' SW comer top yell eallor KU It-IT l 6) ANGRY Ipcvllm~ lat.: 80'JO'S0668'N Leng.: 161 8'}].446'W Ye269,866.]6 ~z.Jazods.dz ®P~t010fl ®ts ~°s0~~~@!~ M,r~a R,pIPn nurcvcT AAARATHON OPERATIONS IN l1PPER COOK INLET MnRnrxoN Kenai Gas Field -Location Map Kenai Unit ~~ _ ,. Figure 2A ~t~ ~„- ,; ,; ~ ,~, a,a.. n . - ~. _ Kenai Unit Boundary ~~~~ 1..x. KEewn..o rn ~ ~ ~ =,.. a Ki ~wi rvu r ~~ ck bo add noties Show Figure 4 AFFIDAVIT Comes now Christine D. Gay, and first being duly sworn upon her oath, states and deposes as follows: 1. That I am over the age of 21 years and mentally competent to make this affidavit. 2. That I am knowledgeable and fully informed concerning the facts contained in this affidavit. 3. That for approximately the past three years I have worked in Alaska for Marathon Oil Company (Marathon) in the Alaska Land Department. 4. That I have assisted in preparing a notification list for an Application for Authorization to Inject Class II Waste Fluids for the Marathon Kenai Unit, Well KU 12-17, Kenai Gas Field, Kenai Unit, Kenai Peninsula Borough, Alaska with a surface location in Section 18, T4N, R11W, S.M. and bottom hole location in Sec. 17, T4N, R11W, S.M. That on or about August 22, 2008 Marathon employees mailed notice of the KU 12-17 Well Application for Authorization to Inject Class II Waste Fluids to all of the mineral owners, working interest owners, and overriding royalty owners within aone-quarter mile radius of the proposed well location by certified mail, return receipt requested. A list of these noticed owners is attached to this affidavit as Exhibit "A." The postal return receipts will be made available for inspection by proper parties. These notices were mailed to their last known address or record address, and I believe that we have mailed the notice letters to good current addresses. In view of the foregoing facts, affiant herein states and deposes that Marathon, as operator of the KU 12-17 Well, has made a reasonable and diligent effort to identify, locate and contact all parties legally due notice of the said application. her i t eth n 1l 22 ~~ 1 hristine .Gay (affian Date STATE OF ALASKA ) )ss. THIRD JUDICIAL DIS ICT ) ~,~ f This certifies that on ~~ YV `?'~ 2008, before me, a notary public in and for the State of Alaska, duly commissioned and swo ersonally appeared Christine D. Gay of Marathon Oil Company, known to me (or proved to me on the basis of satisfactory evidence) to be the person described in, and who executed the foregoing agreement, who then a8er being duly sworn according to law, acknowledged to me under oath that she executed same freely and voluntarily for the uses and purposes therein mentioned. WITNESS my hand and official seal the day and year in this certificate first above written. ~~~tt~ c ~ c r~~~ -~ / ~~~~o~/~~~ ~~~~ NOTARY in and for Alaska ,, . ___ ,. i3 ~oj/ v ~' ~ P(~gL~C, My Commission Expires. ~ .. QQQQQQ ~p~ 1 IJ ~ Av • ~.~,,.~~ i®~~)1 j~~1~~`~~ ~~f5 Exhibit "A" Notification List Application for Authorization to Inject Class II Waste Fluids KU 12-17 Well, Kenai Gas Field Kenai Unit Kenai Peninsula Borough, Alaska Interest Name Attention Address City, State ZIP Surface Owner Cook Inlet Region, Inc. Kim Cunningham P.O. Box 93330 Anchorage, AK 99509-3330 Surface Owner Salamatof Native Association, Inc. Ms. Penny Carty, President/CEO P.O. Box 2682 Kenai, AK 99611 Royalty Owner Marathon Oil Company Charles A. Underwood, Jr. 3201 "C" Street, Ste. 800 Anchorage, AK 99503-3934 Overriding Royalty Owner M B Kirkpatrick Trust William W Watkins Trustee C-O Wellspring Group 10900 NE Fourth St., Ste 920 Bellevue, WA 98004 Overriding Royalty Owner Kirkpatrick Walkowski Watkins Trust For Doris L Ervin C-O Wellspring Group 10900 NE Fourth St., Ste 920 Bellevue, WA 98004 ~'I cQ C fD N ~ O Figure 4 M Marathon MARATHON Oil Company August 22, 2008 Alaska Asset Team North America Production Organization P,O. Box 196168 Anchorage, AK 99519-6168 Telephone 907/561-5311 Fax 907/565-3076 Marathon Oil Company Attn: Charles A. Underwood, Jr. 3201 "C" Street, Ste. 800 Anchorage, AK 99503-3934 ~P`~j RE: AOGCC Notice of Application Application for Authorization to Inject Class II Waste Fluids Well KU 12-17 Kenai Gas Field Kenai Unit Kenai Peninsula Borough, Alaska To Whom It May Concern: Please find enclosed a copy of Marathon Oil Company's (Marathon) Application for Authorization to Inject Class II Waste Fluids into Kenai Gas Field Well KU 12-17. By this application, Marathon seeks Alaska Oil and Gas and Conservation Commission's (AOGCC) authorization for underground disposal of oil field wastes. Marathon employees are happy to discuss this application with any interested parties. Should you wish to discuss this application with Marathon's representative, please call Chick Underwood at 907-565-3044. If you wish to speak to a representative of the AOGCC, please call Art Saltmarsh at 907-793-1230. Sincerely, ~~ Charles A. Underwood, Jr. Land Professional Enclosures ~0~5 Figure 4 M Marathon ~~rxo~ Oil Company Alaska Asset Team North America Production Organization P.O. Box 196168 Anchorage, AK 99519-6168 Telephone 907/561-5311 Fax 907/565-3076 August 20, 2008 Mr. Daniel T. Seamount, Chairman Alaska Oil and Gas Conservation Commission 333 West 7`h Avenue, Suite 100 Anchorage, AK 99501 RE: Application for Authorization to Inject Class II Waste Fluids Well KU 12-17, Kenai Gas Field Kenai Unit Kenai Peninsula Borough, Alaska Dear Chairman Seamount: Enclosed is Marathon Oil Company's (Marathon) application for authorization to inject Class II waste fluids in connection with a new UIC Class II disposal well (KU 12-17) located in the Kenai Gas Field. Marathon is the operator for the KU 12-17 well and for the Kenai Gas Field. This well is designed, and will be operated similar to the existing UIC Class II disposal wells in the Kenai Gas Field. The KU 12-17 well permit to drill was approved by the AOGCC (Permit #208- 089). The well has been drilled and completed. Injection operations will not begin until this application is approved by the Commission and the required mechanical testing on the well is completed. Disposal wells in the Kenai Gas Field operate under an Aquifer Exemption granted by the EPA for all intervals below 1300 feet true vertical depth. The new well will inject fluids only within the exempted interval. For AOGCC monthly reporting, this is referred to as the Kenai Undefined WDSP, Pool Code 448057 (when the injected fluids are water) or Kenai Undefined WDSP G&I, Pool Code 448036 (when the injected fluids are processed waste slurry). This application meets all the requirements of 20 AAC 25.252. If you have any questions concerning this application please contact me at (907) 565-3042. Sincerely, i ~,~ ~~ ti.- don C. Ibele, PE Production Coordinator Enclosures ~ aF 5 M Marathon MARATHON Oil Company Figure 4 • a . 3 I a ,, .3 b ~ ~ I -s 13-8 1 3327 4Rll~ .~ I s -0 .e ~ 7 e I 43-~?C 43 - I ,s ~ Section 7 Section 8 i ~ ~ '3 a-a-ls I 24-7 ~ ,y v~ Jz I a I 4 11117 -z .,, 1 vo ~ Notitication "' Radius _ .~ ~ ......; •~ . SHLiBHL , .~• ;' Section 18 ection 17 KU 12-17 44-18 T4N-R11 W S.M. I , 1/2 Ivlile Notification Area KU 12-17 Disposal Injection Well Kenai Unit T4N-Rl 1 W, S. M. Sections 7, 8, 17 and 18 ~0~5 KU 12-17 Proposed Injection Interval A KU_21-7X KU 31-7X rvoss _ _ - - _ _ ~~ feet ~__ . ,, - _ ~ _ _~ -.~t- ~` -- _ _. ~' i~r -..... -.. - ~~ ` j~ ~ - ~ } } _ " _ - y.~ j ~_ c _3>= . ' ~ __ -~ ~~ i , • ~ • • -w _l Pooi 4 Coal Sand KENAI GA5 FIELD NORTH -SOUTH STRUCTURAL CROSS-SECTION (STERLING FORMATION) _ ~ ].f' miles KU_12-17 Figure 5A A' • J u z 0 a 0 LL Z J W F ~_ 0 Z O W U LL `~ N 0 a~ Z U Y ~ U N W H fA a w rn w m zr m v =1 Y ~~ ~~~ ~{ +~r ^ Mr/'~,, I ?~ 1J'I~ I i Y ~ y i J ~ i i .~1 , a I Y~ Y {. 1 .L '~LJ ~' " ~_. ~ y~.~~ i ~~,~ 4~'F y ~ ~ !I ^ N ~ I ^I Y ! ;,, l 1 +Y ' a. ~i il~ v ° v o a o ~ v rn I~ '~ ~ I ~~ '~ f'+tih. r'~''` ~ "~ ~ Y f t, y~' ~.~. ~~- r II fl 1 I'~ Z ~ ~~ MI ~ I ~ y I i N . 1 ~ 1y~ ~w; ~; ~~ J I r E i~~0~ ,W,AA Y/ W L _~ Kenai Gas Field -Top of Sterling Structure 50-133-20577-00-00 s: ADL 22330 Ilion: 88' (21' AGL) 60° 26' 33.990" N (NAD1') le: 151° 14' 43.803" W (NAD~'7} 275,071 (NAD27) 2,355,883 {NAD27) 6/21!2008 @ 06:00 hr~ 7/412008 @ 17:30hrs tsed: 7/12/2008 @09:00 hr; 300 MDITVD 4 deg1100' from 300' MD 45-50 deg from 1480' MD 3 deg/100' to 4400' MD -1 deg from 4400' to TD at6585' MG uth: 155 deg Kenai Unit 12-1.7 Waste Disposal Pad 41-18 848' FNL, 742' FEL Sec. 18, T4N, R11 W, S.M. 4.5" 12.6 t ,f L-80 Hydril 563 Produdiw. tubing 114jts Baker S-3 Permanent Pac! 3r, lop @ 4663' RKBMD~ Crossover, 10' pup and Baker 3.813 BXN N 10' pup and BakerMule Shoe W/L Re-entry F side @ 4694.5 MDRKB Proposed perforation interval 4,858' t 4,900' MDRKB _~~': ~,., , i •'. u. ,ism x .,t . TD: PBTD: 6,585' MD 6,481' MD 5,786' TVD 5,682' TVD MARATNOM Conductor 20" K-55 133 ppf PE T_p Bottom MD 0' 189' TVD 0' 199' Surtace Casino 10-314" L-80 55.5 ppf BTC J-55 45.5 ppf BTC TOe Bottom MD 0' 1,672' RKB TVD 0' 1,492' RKB 13-1/2" hole cmt wl 498 sks (220.2 bbls) of 12.0 ppg, wl 95 sks (42 bbls) of cmt to surtace. 100% returns. 7 518" L-80 29.7 ppf BTC T~ Bottom MD 0' 6,564' RKB TVD 0' 5,765' RKB procated while 5' every 5 m inutes, while RU ant head pipe stuck, pum ped job landed on ier. Cemented with 184 bbls 10 ppg Class G with :Ives, lost 5 bbls while displacing job. indicated cement top at 3,292' RKB. Well Name & Number: Kenai Unit 12-17 Lease: Kenai Gas Fleld County or Parish: Kenai Penisula Borough State: Alaska Country: USA Perforations (MD): Sterling Pool (ND): Mgle @KOP a!td [)cpth: Pngle'Perfs: Date Completed: RKB: 21' Pre~~~red By: Kevin Skiba Last Revision Date: 07/07108 ~~~~~~~~ IVIARAH®N Oi! ®rnany Location: Cook Intel, Alaska (Kenai Penninsula) Slot: slot #KU12-17 Field: Kenai Gas Field (NAD83) Well: KU12-17 Facilit : Pad #41-18 Wellbore: KU12-17 rge KBEs Plot reference wellpath is KU12-17 Version #3 True vertical depths are referenced to Glacier #1 (RKB) Grid System: NAD83 ! TM Alaska State Plane, Zone 4 (5004), US feet Measured depths are referenced to Glacier #1 (RKB) North Reference: True north Glacier #1 (RKB) to Mean Sea Level: 88 feet Scale: True distance Mean Sea Level to Mud line (Facility: Pad #41-18): 0 feet Depths are in feet Coordinates are in feet referenced to Slot Created by: jonethoh on 30-May-08 m -425 N 1 0 o.oo° 425 12.OD° B50 24.1 ~ 2550 t Q N ~ 2975 U r N U1 3400 H 4250 -425 0 425 650 1275 1700 2125 2550 2975 Vertical Section (ft) $wlelincM1=849999fl Azimuth 155.39° with reference 0.00 N, D.OD E Z 0 7~ s~iellncM1=350ft Easting (ft) _1-- ~ oio-casing rroauaion -; KU 12-1 i!~ 20" X 10-3/4"X 7-5/8" X 4-1/2" OD, 5M MSP MB-235 SLIMHOLE ASSY ~/ SP-6728-3; H806020; KU #12-17 (83.86") • BAKER OIL TOOLS TUBEMOVET"' ©1993-BAKER HUGF~SINC. CUSTOMER: Marathon WELL NAME: KU12-17 G & I RUN NUMBER: 3 Packer Depth (ft) 5600 Packer/Tubing (Anchor=1, Locator=0) 1 Packer Bore (in) 4.000 Slack-off (+Ib) [Tension (-Ib)] 0 BRA Tubing NO High Space-out [Locator ONLY) (in) 0 Vumber Sections 1 Max Wireline Tool OD (in) 2.750 5/6/2008 9:19 AM REL.3.2 TBG/CSG CONFIGURATION Tubing O.D. (in) Tubing I.D. (in) Tubing Wt (Ibs/ft) Casing I.D. (in) Depth (ft) (M~ @ Btm of Sect) Tubing Yield Strength (psi) Bottom Section 4.540 3.958 12.60 6.875 5600 64000 INITIAL CONDITIONS TEMPERATURE Surface Bottomhole (deg F) 50 105 FLUID WEIGHTS (Ibs/gal) Tubing Annulus Bottom Section 8.35 8.35 SURF. PRES. Tubing Annulus (psi) 0 0 INITIAL LENGTH CHANGE COMRESSION/ in TENSION BUCKLING Bottom Section 0.00 0.00 TOTAL 0.00 FORCES and STRESSES FORCE (Ibs) STRESS (psi) Bottom Section Top -64073 16495 Bottom 6487 0 ac er - u mg DEVIATED WELL K P 400 D ft 3850 INITIAL HELIX ANGLE Helix Angle 0.0 Deg/100' Maximum Tool Length Unlimited Feet Page 1 of 2 • C~ BAKER OIL TOOLS TUBEMOVEr"^ FINAL CONDITIONS CONDITION = Injection Customer: Marathon Well Name: KU12-17 G & I RUN NUMBER: 3 TEMPERATURE Surface Bottomhole (deg F) 40 40 5/6/2008 9:19 AM SURF. PRES. Tubin Annulus (psi) 3000 0 FLUID WEIGHTS (Ibs/gal) Tubing Annulus Bottom Section 14.00 8.35 PRESSURES (psi) Initial Tubing Annulus Final Tubing Annulus Final Diff. Pres. Surface 0 0 3000 0 3000 At Packer 1670 1670 5800 1670 4130 LGTH. CHANGE(in) Piston Buckling Ballooning Temperature TOTAL Bottom Section -0.61 -1.41 -14.93 -17.39 -34.34 TOTAL -0.61 -1.41 -14.93 -17.39 -34.34 MOVEMENT IF PERMITED (in) -34.34 FORCES and STRESSES FORCE (Ibs) STRESS (psi) Bottom Section Top -121047 30628 Bottom -50487 29854 Packer -Tubing -58058 FINAL HELIX ANGLE Helix Angle 0.0 Deg/100' Maximum Tool Length Unlimited Feet Negative movement is up Negative force is tensile This program is based on S.P.E. paper#5143 (Entitled "Movements, Forces, and Stresses Associated With Combination Tubing Strings Sealed In Packers"), and, as such, is subject to the same assumptions and limitations as said paper. Baker Oil Tools does not warrant that the functions contained in this program will meet customers' requirements or will operate in the combinations selected for use. This program and the results produced by it are not warranted to be error free. Page 2 of 2 • File: Fina! INTEO Plan (Design Filed -- _ __ WELL SCHEMA?-IC (DEPTH - MD) 21.00 ft TOC 1700.39 ft 3200.00 ft TOC 6573.21 ft • _Date: May 30, 2008_ Page:. 1 Ground Level (21.00 ft) 10 3/4", (13 1/2"), 45.500 ppf, K-55, Surface Casing Connection: BTC, K-55 7 5/8", (9 7/8"), 29.700 ppf, L-80, Produckion Casing Connection: BTC, L-80 Original Wellbore StressCheck 2003.16.0.1 Build 857 • a rue: rmat irv i cc,! Tian tuesign rue) Date: May 30, 2008 GENERAL DATA Description: Well Options, Deviated: Well Options, Offshore: Well TD (MD): Reference Point: Air Gap: Origin N: Origin E: Azimuth: Comments: 2008 Grind & Inject Well Kenai Gas Field Kenai Peninsula Borough, Alaska Original Wellbore Yes No 6573.20 ft OTR 21.00 ft 0.00 ft 0.00 ft 155.393 ° Original .Wellbore StressCheck 2003.16.0.1 Build 857 File: Final INTEQ Plan (Design File) Date: May 30, 2008 Page: 3 Section View ' ' ' ' ' ' ' I I I - Section ~ I I I I I I I I I I 1 I I I I I I 1 I I I I I I I I I I I I I I I I 400 7------r-----t------I------r------r------r-----r-----7------r-----r------I I I I I I I I I I I I I I I I I I I I I I I I I 1 I I I I I I I I I I I 1 I I I~ I 1 I I I I I I 800 -- ---1-----I------+- I------I------~------1------t------,------1------+-----~ I I I I I I I I 1 I I I I I I I I I I I I I I I I I I I I I I I I I I 1 I I I I I I I I I I I 1 200 _ _ _ _ _ ~ _ _ _ _ _I_ _ _ _ _ _ 1 _ _ _ _ _ _I_ _ _ _ _ _ ~ _ _ _ _ _ ~ _ _ _ _ _ _I_ _ _ _ _ _ L _ _ _ _ _ ~ _ _ _ _ _ -I_ _ _ _ _ _ 1 _ _ _ _ _ ~ I I I I I I I 1 I I I I I I I I I I I I I I I I I I I I I I I I 1 1 I I I I I I I I I I I I 1600 J------'------1--- --'------L-----1------1------L-----~------'------1------1 1 ~ I I I I I I I I I I I I 1 I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I 2000 ------'------'------=------'-----'- -' ------'--- I I 1 -'-------' I I I I , ---- ~ --- ~ ----- ~------I----- I I I I I I I I I I I I I I I I I I I 1 I I I I I I I I I I I I I I I I I 2400 I I I I I I ! f I I I I 1------r -----~-------~------r 7------I------ 1------r -----T-----, I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I 1 I I I I ~.. I I I I I 1 I I I I I I 12800 - -1 -r-----t------I------r 7------r-----r-----~--- --r-----t------I Q. I I I I I I I I I I I I 41 I I I I I I I I I I I 0 I I I I I I I I I I 1 I I I I I I I I I I I I I X3200 ------~------~------+------1------~------~------I------+ -----~------I-- +------~ I I I I I - I I I I I I I ~ I I I I I I I I I I I I ' I I I I I I I I I I I I I I I I I I I I I I I I _ _ _ _ L _ _ - - _ J _ _ - _ _ _I_ _ _ _ _ 1 _ _ _ _ _ J 33600 J------I------1------'------~ 1------'- I I I I I - I I I I I I I ~ I I I I I I I I I I I I I I I I I I I I I I I I I I 1 ! ! I I I 1 I I I 4000 -----!------'------! ------'------! -----! ------'- I I I I I I I 1 I I I I I I I I I I I I I I I I I I I I I I I I I I I 1 I I I I I I I I I I I I 4400 I I I I I I I I----- '------'----- '----- ' ----- ~------~ ----- ~------I--'---, ----- ~------,------ ~ I I I I I I I I I I I I I I I I 1 I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I 4800 ------,------1 r------I------r------r------1------r------1------r---- r-----~ I 1 I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I 1 I 5200 1------I------+------I------F------+------I------+-----1------I----- + -I I I I I I I I I I I 1 I I I I I I I I I I I I I 1 1 ! ~ I I I I I I I I I I I I I I I I I I I f 5600 ------~------I------+------I------~-------+------1------~------~------I----- +------+ I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I 1 I I I I I 1 I I I I 6000 -1------1------1------'------~-----1------1------L-----~------'------1-----~ I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I 200 400 600 800 1000 1200 1400 1600 1800 2000 2200 VSection (ft) Original Wellbore StressCheck 2003.16.0.1 Build 857 3 • File: Final INTEQ Plan (Design File) Plan View • Date: May 30, 2008 Page: 4 1 I f I I I 1 l I 7 1 ! ! ' I ' ! ! ' ' ' I 1 - Plan\ ! ! 50 --- ----- ------ ----- - ----- ----- ---- ------ ------ --- I I I I I I I I I I I I I I I I I I I I I I I I I -- ----- -- I I I I I I I 1 I 0 I I I I I I I I I I I I I I I I I I 1 I I I I I I ---+-----+-----~-----1-----~-----+-----+-----~-----------~--- I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I --+-----+-----~--+ I I I I I I I I -150 I I I I I I I I I I I l I ! I 1 I I I I I ' 1 I I I I I I I - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - I I I I I I I I J I I I - - - - - - - 1_ T T 1 I 7 I r T r I I I I I I I I I I I 1 I I I I I I I I - 1 T r 7 I I I 1 I I I I -300 I I I I I I I I' I I I 1 I I I I I I I I ---1-----L-----1------1-----J-----1-----L-----1------I--- --1--- I I I I 1 I 1 I I I I I I I I I I I I I I I I I I I I I --1-----1-----L-J I I I I 1 I I I 450 I I I I I I I I I I I I I I 1 I I I 1 I I I I I I I I I I I ---+-----r-----r-----I-----1------r-----r-----r-----I---- -1--- I I I I I I I I I I I I I I. I I I I I I I I I I I I I I I I ( I ---r-----+-----r-1 I I I I I 1 I 1 c -600 I I I I I I I I I I I I I I I I I I I I I I I I I I I I ---~-----,------,------I------1-----~-----~-----,------I------, -- I I I I I I I I I I I I I I I I I 1 I I I I I I I I I I I I I I --~-----,------I-- ~ I I I I I I I I -750 I I I I I I I I I I I I I I I I I I I f - _ _ 1 _ _ _ _ _ L _ _ _ _ _ L _ _ _ _ _I- _ _ _ _ J _ _ _ _ - 1 _ _ _ _ _ 1 _ _ - _ _ L _ _ _ _ -I_ _ _ _ _ _I_ _ _ I I I 1 I I I I I I I I I I 1 I ! I _ - 1 _ _ _ _ _ 1 - - _ _ _ L _ J I I I I I I I I I I I I I I I I I I I I I I I 1 I I I I I I I I I I I I I I I I I I I I I I N -900 1 I I I I I I I I I ---t-----r-----r-----r----~------r-----r-----r-----1------I--- I I I 1 --r-----r-----r--I Z I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I -1050 1 I I I I 1 1 I r r I I I I I --- ~_ I 1 I I I ___-' -----I______'------I___ 1---'~ -----~ -----1------I----- ~- I I -I I I I I I I I I I I I I 1 I I I I I I I I I I ! ! 1 1 -- I I I I I-----~ -----~ - ~ I I I 1200 I I I I I I I I I I I I I I I I I I I I I I ---+-----~-----r-----1-----~------~-----~-----~------I------I I I I I I I I I I I I I I 1 I I I I I I I I I I I I I 1 I I I ~ ---~------r-~ 1 I I I I I I I 1350 I I I I I I I I I I 1 1 I 1 I 1 I I I I I I I I I I I I I I --- ----- ----- ----- ----- -- -- - I I I I I I I I I I I I r r 1 T ~ -- --r 1------I ~ T- I I I I I I I I I I I I I I I I I I I I ~-- --r r-~ I I I I I I I I -1500 I I I I I I I I I I I I I I I I I I I I ---! -----! -----'------'------'-----! -----! -----! -----'------' I I I I I I 1 I I 1 I I I I I I I I I I I 1 I I I I I I I I I I I I I I I I I 1650 I I I I I I I I I I I I I I I 1 I I I I I I I I I I I ---+-----+-----~-----1------.-----+-----+-----~-----I-----+--- I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I --~----- -----~-~ I I I I I I I I -1800 I I I I I I I I I 1 I I I I I 1 I I I I I I I I I I I I I I . - - ~ - - - - - _ - . - - _~ - - . _ -I- - - - _ _ _ . - - - ~ - - _ _ - T - - - - _~ . - - - -1- _ - - - -I- - . I I I I I I I I I I I I I I I I I I I 1 I 1 I I I I I I I I I I - - ~ - - _ - - T _ . - - ~ - _ I I I I I I I I -1950 1 I I I 1 I I 1 I I I I I I I I I f I 1 ---1-----L-----L-----I-----J-----1-----1-----L-----1------1--- I I I I i 1 I l --1-----1-- --1---1 -2000 -1750 -1500 -1250 -1000 -750 -500 -250 0 250 500 750 1000 1=NV (ft) Original Wellbore StressCheck 2003.16.0.1 Build 857 i File: Final INTEQ Plan (Design File} Date: May 30, 2008 Page: 5 Dogleg Severity Profile t a d D .0 d y Qt L I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I 1 I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I r-----1-----~ ~ T r-----I -I-----~----- -----r-----~-----n I I I I I I I I I I I 1 1 I 1 1 1 I I I I I I I 1 1 I I I I I I I I I I I 1 1 I I I I I f I I I I I I I I I I I I I I I I I I I I 1----- ~-----~ ---- I ~ I I I I I I I I I I I I I I I I I I I I I I I I I I 1 1 I I I I I I I I I I I I I I I I I I I I I I I I I I I I -----r-----I~-----1------F-----+-----F-----1------I------i-----+-----~-----r-----1-i I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I 1 I I I I I I I I I I I I I 1 I I I I I I I I I I I I -I`------I----- ~----- ~ -- 1 1 -I----- ~----- ~ -.---- ~-----~ - I I I I I I I I 1 I I I I I I ! I I 1 I I I 1 I I I I I I I I I I I I I I I I I I I I I I I I I I I I I - I I I I - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -I- - - - _ J _ - - - - 1 - - - - - L _ _ _ _ _ L - - - - _IJ I I I I I I I I I I I I I I I I I I I I I I I I I I I I 1 I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I -----r-----r-----~------+ +-----r-----I------I-----1-----+-----r-----r-----1-1 I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I - - - I I I I - _ _ _ _ T _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _I_ _ 1 _ _ _ _ _ _ _ _ _ _ _ _ . _ _ .I II I I I I I I I I I I I 1 I I I f I 1 I I I I I I 1 I I I I I I I I I I I I I I I I I I I I I I I I I I I I 1 I I - _ _ _ _ L _ _ _ _ _I_ _ _ . _ J _ _ _ _ _ 1 _ _ _ _ _ 1 _ _ _ _ _ L _ _ _ _ _I_ _ _ _ _ _I_ _ _ _ _ J _ _ _ _ _ 1 _ _ _ _ _ L _ _ _ _ _ L _ _ _ _ _IJ I I I I I I I I I I I I 1 I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I 1 I I I I I I I I I I I I I 1 I I 11 _ _ _ __ r _ _ _ _ _1_ _ _ _ _ y _ _ _ _ _ rt _ _ _ _ _ t _ _ _ _ _ r _ _ _ _ _I_ _ _ _ _ _1_ _ _ _ _ y _ _ _ _ _ t _ _ _ _ _ .r _ _ _ _ _ r _ _ _ - -17 I I I I I I I I I 1 I I I I I I I I I I I 1 I I I I I I I I I I I I I I I I I I I I I I I I I I f I I I I I I I _____I______1______1_____ ~ ____- ~ _____~ _____I______I_____ ~_____ ~ _____ ~ ___-_~ _____I I I I 1 I I I I I I I I I I I I I I I I I I I I 1 I I I I I I I ! I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I _ _ _ _ _ L - - _ _ _I_ _ _ _ _ J _ _ _ _ _ 1 _ _ _ _ _ 1 _ _ _ _ _ L _ _ _ _ _I_ _ _ _ _ _I_ _ _ _ _ J _ _ _ _~_ 1 _ _ _ _ _ 1 L _ . _ _ _IJ I I I I I I 1 I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I 1 I I I I I I I I I I I I I I I I I I I I _ _ _ _ _ r _ _ _ _ _I_ _ _ _ _ , _ _ _ _ _ ~ _ _ _ _ _ T r _ _ _ _ _1_ _ _ _ _ _1_ . _ _ _ , _ _ _ . _ 7 _ _ _ _ _ T _ . _ _ _ r _ _ _ _ _1, I I I I I I I I I I I I I I 1 I I I I I 1 I I I I I I I I I I I I I 1 I I I I I I I I I I I I I I I I I I I I I _____1______1______I_____ ~ _____ ~ _____~ _____I______1_____ ~_____ ~ _____ ~ _.____~ _____I 1 I I I I I I I I I I I I I I I I I I 1 I I I I I I I I I 0.0 0.4 0.8 1.2 1.6 2.0 2.4 2.8 3.2 3.6 4.0 4.4 4.8 5.2 Dogleg Severity (9'100ft) Original Wellbore StressCheck 2003.16.0.1 Build 857 S • File: Final INTEO Plan (Design File) Pore, Fracture & MW 1500 'O d N d 4500 Date: May 30, 2008 Page: 6 I I I I I I 1 , I I - Pore Pressure I I I I I I I I I , I I , , I I , , - Fracture Gradient I I I I I r----- ~-,- -----,------~ ~-- -- I I I I I I I I I I I I I I I I I I I I ------I--------I--- I- I ---!--- ----- --------- I I -- I-- - ----I---- ~- I I I I I I I I --I-------I--- ' ' $ Mud Wei ht ----I------ 1---- I I I I I I I I I I I I I I I I I I I I ~ I -- I I I I I I I I I I I I I I I I I I I I I I I I I I I 1 - - - - - - I- - - - - - -I- - - - - -- ~ - - - - - - -I - - - - - - + - - - I I I I I I I I I I I I I I I - - ~ - - - -~ - -I- - - I I - -- ------- ------ ------ I I I I I I I I I I I I I I I I I I I I I I - - - -I- - - - - - -~ - - - - - - ~ -a I I I I I I I I I I I I I I I I l O I I I I I I I I I I I I I I I I I I I I I I I I I _ _ . _ _ _ r I --~ 7 r--- I I I I I I I I I I I I I I I I I I I I ----I-------I-- --I------I------~--- _ I I --r I I I I I 1 I 1 I --~-------I--- I I I-----~------ I I I I I I I I ----I------ ~----- I I ------r~ I I I I I I I I ~ I - - I I I I I I I I I I I I I I I I I I I I I I I I --- - ---~ -- ----I--. _ - ----I-------~------+- -- I I I I I I I I I I I I I I I I I I I I I I I i -- ~ - -----~1--- I I I 1 - I I I I I I I I I I ----I- --- ----+------ I I I I - - -- I I I I I I I I I I ------~-I I I I I I I I I I I I I I I I -- --r I ~------~ r--- I I I I I I I I I I I 1 I I I I I I I I ------I-------I-------I------ ~------~ - - - I I I I I I --r------i-- I I I I 1 I I I --~ ------1--- I I I I I I ----I------~------ I I I I I I I I --- I- I I I I I I I ------rte I I I I I I I I ~ ~ I I I I I I I I I I I I I I I I 1 I I I I I I I I -------~------I-------a-------I------~--- I I I I I I I I I - ------ I I I - - - - - ~ - - - - - - I I I I I I I I I I I I I I I I I I I I I I I I I I ----I-------I--- -- I--- --- ~ -- ---- ---- ---1--J I I I I I I I I I I -- __ I I I I I I I I I I I - - ------I-------I -~ r--- I I I I I I I I I I I I I I I I I I I I __I_______I_______I______~______~___ I I I -- -r--- I I I I ___L___ I I I --I--- I I I I __I___ I I I I I I I I I I I I I I I ----I-------1-------r------rte I I I I I I I I I I I I I I I I I I I I 1 I ____I__ x _ 1 I I I I I I I I I I I I I I I I I I I I I I - _ _ _ _ _ _ _ _ _ _ _I_ _ _ _ _ _ ~ _ _ _ _ _ _ ~ _ _ _ _ _ _ ~ _ _ _ I I I I I I I I I I I I I I I I _ _ _ ~ _ _ _ _ _ _ _ _ I I ____ __ ___ ______ I I I I I I I I I I I I I I I I I I I I I I I I I _ _ _ _I_ _ _ _ _ _ -~ _ _ _ _ _ _ .} _ _ _ _ _ _ a. ~ I I I I I I I I I I I 1 I I I _ _ _ - _ _ _ - _ _ _ _ _ . - _ ~ _ _ _ _ I I I r I I I I I I _ _ _ _ - _I_ _ _ I I I I I I _ _ _I_ _ _ _ _ _ _ _ _ _ _ _ _ I I I I I I _ . _ _ _ _ r -I I I I I I I I I - I I I I I I I I I I I I __ ___-I-__ ____I-___ ___1--____ ~ _ __ _ _ _ ~ _ _ _ I I 1 I I I I I I I I ~ I I I I I I I ___~ ______I_ __ I 1 I I I I I I I I I I I I I I I I I I I I I __ _-I__ ____ ~_ _____ ~ ______ I _I I I I I I I I I I I 0.00 1.50 3.00 4.50 6.00 7.50 9.00 10.50 12.00 13.50 15.00 16.50 Equivalent Mud Weight (ppg) Original Wellbore StressCheck 2003.16.0.1 Build 857 • File: Final INTEQ Pian (Design File) • Date: Mav 30- 2008 Paae~ 7 PORE PRESSURE Vertical Pore Pressure/EMW Permeable Depth (ft) (psi) (ppg) Zones 1 21.00' 0.0' 0_00' N 900.00, ____----- 43.21 ____ --- • 8.321 __ --------------- N 3 1500.00' -- --------1- 654.1' --------------- + 8.39' ' - Ye 3761.99~ ----- --------------- 1641.1 i ------ -- - 8.40 ----------------- Ye 5 3762.99 195.4 1.00; Ye __ _ _ _ _ _ _ _ _ _ _ _ 4886.99 -- 253.8' 1.00 Ye 7 -_-4887.99,- ----------~------380.8;----------- 1.50; Ye 5400.00' 420.8' 1 50' Ye - --------,- 5401.00, ---- 1964.0,--------------- . --- 7.00,---- ---------------- - Ye 10 5788.00' 2104.7' 7.00' Ye FRACTURE GRADIENT Vertical Fracture Pressure/EMW - -- Depth (ft) - ----(psi) (PPg) 1 21.001 _ _ 0.0~ 0.00 100.00; _ _ _ 67.5, 13.00 3 - ____ ------------- _ 1500.00' Y _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 1168.8' _ _ _ _ _ 15.00 3761.99, ___________ _ 2930.6, _ _ _ _ _ _ _ _ 15.00 ------------- _ _ 3762.99' t------------------- ~ -----1954.8 10_00 4886.99, 1-------------------- 2538.71 ----- 10 00 7 4887.99' 2666.2' . 10 50 _ _ --------- ---a------------------- 5400.00, --------~-------------------- 2945.51 . -------- 10.50 5401.00' 4208.6' 15 00 10 _ ---------- J _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ - 5788.001 _ _ _ _ _ _ _ _ J _ _ _ - _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ - 4510.1 ~ . _. _ _ _ _ _ _ _ 15.00 CASING AND TUBING SCHEME OD (") Name Type Hole Size Measured Depths (ft) ' Mud at _ ( 7 Hanger Shoe TOC Shoe (ppg) 1 10 3/4" ,Surface ,Casing , 13.500, 21.00, 1700.39, 21.00, 9.20 7 5/8" 'Production 'Casing ' 9.875' 21.00' 6573.20' 3200.00' 9.40 PRODUCTION DATA Packer Fluid Density; 8.60 ppg Packer Depth, MD: 4599.99 ft Perforation Depth, MD: 4819.99 ft Gas Gravit : 0.70 DESIGN PARAMETERS DATA (10 3/4" Surface Casing) Design Factor (Pipe) -Axial Tension: 1.300 Design Factor (Pipe) -Axial Compression: 1.300 Design Factor (Coupling) -Axial Tension: 1.300 Design Factor (Coupling) -Axial Compression: 1.300 Design Factor (Pipe) -Burst: 1.100 Design Factor (Coupling) -Burst: 1.100 Design Factor (Pipe) -Collapse: 1.000 Design Factor (Pipe) -Triaxial: 1.250 Minimum Internal Drift Diameter: 0.000 " Single External Pressure Profile: Yes Temperature Deration: No Limit to Fracture at Shoe: Yes Buckling: No Use Burst Wall Thickness in Triaxial: No Original Wellbore StressCheck 2003.16.0.1 Build 857 7 • • File: Final INTEO Plan (Design Films _ Date: May 30, 2008 Pa e: 8 INITIAL CONDITIONS (10 3/4"Surface Casing) Mix-Water Density: 8.33 ppg Lead Slurry Density: 12.00 ppg Displacement Fluid Density: 9.20 ppg Slackoff Force: 0 Ibf Temperatures: Default Vertical Depth (ft) Temperature (~) 21.00 ft 80.0 `F 300.00 ft 84,2 ~ 597.81 ft 88.7 ~' 789.91 ft 91.5 `F 882.61 ft 92.9 ~ 972.47 ft 94.3 ~ 1059.05 ft 95.6 `F 1141.94 ft gg,g ~ 1220.72 ft 98.0 ~ 1295.02 ft 99.1 `F 1364.52 ft 100.2 `F 1500.00 ft 102.2 `F Original Wellbore StressCheck 2003.16.0.1 Build 857 g U rne: rmao oN i thi Tian wesi~n rneJ uate: May 3u, zuut3 BURST LOADS DATA (10 3/4" Surface Casing- Drilling Load: Displacement to Gas Influx Depth, MD: 6573.20 ft Pore Pressure: 2104.7 psi Gas Gradient: 0.1000 psi/ft Fracture at Shoe: 1168.8 psi Fracture Margin of Error: 0.00 ppg Gas/Mud Interface, MD: 0.00 ft Mud Weight: 9.40 ppg Assigned External Pressure: Fluid Gradients (w/ Pore Pressure) Pressure is Limited by Fracture Gradient at Shoe Drilling Load: Gas Kick Profile .Influx Depth, MD: 6573.20 ft Kick Volume: 41.7 bbl Kick Intensity 0.00 ppg Maximum Mud Weight: 9.40 ppg Kick Gas Gravity: 0.70 Fracture at Shoe: 1168.8 psi Fracture Margin of Error: 0.00 ppg Drill Pipe OD: 5.000 " Collar OD: 5.000 " Collar Length: 800.00 ft Assigned Extemal Pressure: Fluid Gradients (w/ Pore Pressure) Pressure is Limited by Fracture Gradient at Shoe Drilling Load: Pressure Test Test Pressure: 2000.0 psi Mud Weight: 9.20 ppg Assigned External Pressure: Fluid Gradients (w/ Pore Pressure) Drilling Load: Green Cement Pressure Test Test Pressure: 2000.0 psi Mud Weight at Shoe: 9.20 ppg TOC, MD: 21.00 ft Lead Slurry Density: 12.00 ppg Displacement Fluid Density: 9.20 ppg Float Collar Depth, MD: 1610.00 ft External Pressure: Fluid Gradients (w/ Pore Pressure) TOC, MD: 21.00 ft Prior Shoe, MD: 21.00 ft Mud Weight Above TOC: 9.20 ppg Fluid Gradient Below TOC: 8.33 ppg Pore Pressure In Open Hole: No Original Wellbore StressCheck 2003.16.0.1 Buitd 857 File: Final INTEO Plan (Design File) Date: May 30, 2008 Page: 10 Burst Pressure Profiles (10 3/4" Surface Casing) I I I I I I I I I I I I I I I I - Displacement to Gas I I I I I I I I I I I I I I I I - Gas Kick (41.7 bbl, 0.00 ppg) I I I I I I I I 150 -----~---- - 1----- ~ - ---~ -----I------ I ---- -I------~- --- - Pressure Test ~ ~ ~ ~ i ; ; ; - Green Cement Pressure Test (Int) 1 I I I I I I I Green Cement Pressure Test (Ext) I I I I I I I I I I I I I ' ' I - Fluid Gradients w/Pore Pressure I I I I I I 1 1 300 -- --T--- - - -r -- ---r-- ---I------I------ r-- ---I------r-----~------r------r-----~ I I I I I I I I I I 1 I I I I I I I I I I I I I I I I I I I I I I I I I 1 I I I I I I I I I I I ~ I I I I I I I I 1 I I 450 ---- ! ------'------! -----!- ----'- ---! ---'------! ---- !------'------! -----! I I I I I-_ I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I 600 - - - - - - - - - - -I- - - - - - ~ - - - - -~ - - - - -I- - - - - - + - - - - - -I- - - - - - ~ - - - - - -~ - - - - -I- - - - - - + - - - - - -I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I 1 I I I I I I I I 750 __.___-_ ____I__-___~____ ___ _________~__-_-_I-----_~________ __-~_-_-_T I I I I I I I I I I I I I 1 I I I I I I I I I I I I I I I I I I I I I L I I I I I I I I I I I I .r. I I I I I I I I I I I I ~ 900 -~ -- - - -I- -- -- - L ----- -- - --I---- - --~ --- -- -I------ L ----- J---- -I------ 1----- J Q I I I I I I I I I I I I I I I I I I I I I I I ~ I I I I I I I I I I I ~ I I I I I 1 I I I I I 3 I I I I I I I I I I I I N I I I I I I I I I I I I y1050 -----r---- -I------r------I - ---r-----r------I------r-----~----- I------+-----~ I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I 1200 ----- ~ ----- '------~ ----- ~--- --'------ ~ - -----'------~ ----- ~------I- ---- ~ ----- ~ I I I I I I I I I I I I I I I I I I I I I 1 I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I 1350 -----~------I- ----~-----~- - --I------~------I------~-----~------I-- ---~------~ I I I I I I I I I I I I I I I I I 1 I I I I I I I I I I I I I I I I I I I I I I I I I I I 1 1 I I I I I I I I I I I I I I I 1 I I I I I I I I I 1500 T-_-___I-- ---r_____~__ __1______T______I_____-r_____,-_____I___ __T I I I I I I I I I I I I I I I I I 1 I I I I I I I I I I I I I I I I I I I I I I I 1 I I I I I I I I I I I 1650 ! ------'--- --! --- --!--- --'------! ------'-- ----! -----!------I----- ! -----! I I I I I I I I I I I I I I I 1 I I I I I I I I 1 I I I I I I I I I I I 1 I I I I I I I I I I I I I I I I I I I I I I I I I I I I I 1 I I I I I 1800 F -----~ -I------1--- ---~------I------~-- -----I------~----- ~----- -I------+------+ I I I 1 I I I I I I I I I I I I I I I I I I I I 250 500 750 1000 1250 1500 1750 2000 2250 2500 2750 Pressure (psi) Original Wellbore StressCheck 2003.16.0.1 Build 857 /D • • File: Final INTEQ Pian_(Design File) _ _ _ _ _Da_t_e:_~ 30, 2008_ _ Page: 11 BURST DESIGN (10 314" Surface Casing) 100 200 300 400 500 600 700 ~ 800 L a -0 900 N to ~ 1000 1100 1200 1300 1400 1500 1600 1700 1800 - -- +-- --I--- I I I I --- +----1--- I I _ _- __-_1--_ + I I 1 1 1 I 1500 3000 4500 6000 7500 9000 10500 + Design Load Line Pie Rating I I I I I I _ -- -- _ _. _I_ _ _ _ _ _ _ _ J _ _ _ _ _ _ _ _ J _. _ _ _ _ _ _ _ 1 _ _ _ _ _ _ _ _ L _ _ _ _ _ _ _ _ L _ _ _ _ _ _ _ _I_ _ _ _ _ _ _ __ I I I I I I I I I I I I I 1 I I I I I I I I I I I I I I I I I I I I I -----I-------7---------r--------r--------r--------r--------1-------- I I I I I I I I I I I I I I I 1 - - - - -I- - - - - - - - I I I I I - - - - -I- - - - - - - - I I I I I 1 I -I- I I I I I ~ - I I I I I I I - _' - - - - - ~ - - ' - ' - - I I I I I - - - - - - - rt - - - - - - - I I 1 I ~ I I I I - ~ - - - - - - - - ~ - - - - - - - - I I I I I 1 I I I I - + - - - - - - - - r - - - - - - - - I I 1 I I I I I ~ ~ I I I 1 I- - - - - - - - -I- - - - I I I I I I 1 I 1 I r - - - - - - - -I- - - - I I I I I I I I I 1 _ _ _ _ _ _ _ _ _ _ _ _ _ I I I I I - - - - -1- - - - - - - - _ _ I I I I I ~ - _ _ _ _ _ _ _ _ _ _ _ _ _ _ I I I I I - - - - - - - ~ - - - - - - - _ _ _ _ _ _ _ _ _ _ _ _. _ _ _ _ I I - I I I I I I I I - + - - - - - - - - ~ - - - - - - - - _ _ - _ _ _ _ _ _ _ _ _ _ I I 1 I 1 I I I 1 I F - - - - - - - -1- - - - _ _ _I_ _ _ _ _ _ _ _ ~ _ _ _ _ _ - - _ 1 _ _ _ _ _ _ _ _ 1 _ _ _ _ _ _ _ _ L _ _ _ _ - _ _ _ L _ _ _ _ _ _ _ _I_ _ _ _ _ _ _ _ I I I I 1 I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I ------- -----I--------1--------7 r ---r-- r------- I I I I I I I I I I 1 I I I I I I I I I I I I I I I I I I _I_ _ _ _ _ _ _ _ J _ _ _ _ _ . _ - 1 _ _ _ _ _ _ _ _ 1 _ _ _ _ _ _ _ _ L _ _ _ _ _ _ _ _ L _ _ _ _ _ _ _ _I- _ _ _ _ _ _ 1 I I I I I I 1 I I I I I I I I I I I I I I I I I I I 1 I I I I I 1 I -----1---------I---------r--------r--------r--------r--------r------- - - - - -I- - - - - - - - -t - - - - - - - - Y - - - - -- - - - t - - - - - - - - r - - - - - - - - r - - - - - - - -1- - - - - - - - I I I I 1 I I 1 I I I I I I I I I I I I I I I I I I I I - - - - -I- - - - - - - - -I- - - - - - - - I - - - I I I - - - - - - - -1- - - ' - - - - ------------------------ I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I _ _ _I_ _ _ _ _ _ _ _ ~ _ _ _ _ _ _ _ _ ~ _ _ _ _ _ _ _ _ + _ _ _ _ _ _ _ _ ~ _ _ _ _ _ _ _ _ F _ _ _ _ _ _ _ _I_ _ _ _ _ _ I I I I I I I I I I I I I I I 1 I I 1 1 I I I I 1 1 I I _ _ _ _ _I_ _ _ _ _ _ _ _ _I_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 1 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _I_ _ _ I I I I I I I I I I I I I I I I I 1 I I I I 1 I 1 I I I _ _ _ _I_ _ _ _ _ _ _ _ J _ _ _ _ _ _ _ _ 1 - _ _ _ _ _ _ _ 1 - - _ _ _ _ _ _ l _ _ _ _ _ _ _ _ L _ - _ _ _ _ _ _I- _ _ _ _ _ _ _ I I I I I I I I I I I I I I I I I I I I I I I 1 I I 1 I I I I I I I I Burst Rating (psi) Original Wellbore 12000 13500 15000 StressCheck 2003.16.0.1 Build 857 // C~ File: Final INTEQ Plan (Design File) • Date: Mav 30. 2008 Paae: 12 COLLAPSE LOADS DATA (10 3/4" SurFace Casingl Drilling Load: Mud Weight: Mud Level, MD: Assigned External Pressure: Full/Partial Evacuation 9.40 ppg 1700.39 ft Fluid Gradients (w! Pore Pressure) Drilling Load: Mud Weight at Shoe: TOC, MD: Lead Slurry Density: Displacement Fluid Density:. Float Collar Depth, MD: Assigned External Pressure: Drilling Load: Lost Returns Depth, MD: Pore Pressure at Lost Returns Depth: Pore Pressure Gradient at Lost Returns Depth: Mud Weight: Mud Drop Level, MD: Assigned External Pressure: External Pressure: TOC, MD: Prior Shoe, MD: Fluid Gradient Above TOC: Fluid Gradient Below TOC: _Pore Pressure In Open Hole Below TOC: Cementing 9.20 ppg 21.00 ft 12.00 ppg 9.20 ppg 1610.00 ft Fluid Gradients (w/ Pore Pressure) Lost Returns with Mud Drop 6185.22 ft 253.8 psi 0.90 ppg 9.40 ppg 5665.47 ft Fluid Gradients (w/ Pore Pressure) Fluid Gradients (w/ Pore Pressure) 21.00 ft 21.00 ft 9.20 ppg 9.20 pP9 No Original Wellbore StressCheck 2003.16.0.1 Build 857 !2 • File: Final INTEQ Plan (Design File) Date: May 30, 2008 Page: 13 Collapse Pressure Profiiles (10 314" Surface Casing) I I I I I I I I I I I I I I I I I I I I I I I I I I I - Full/Partial Evacuation I I I I I - I I I I I I I I I I I I I I I I - Cementing (Int) 150 I I I I I ----= - ---~-----I-----I-----~-- --~---- a-----~--- --r----~- I ---~ - Cementing(Ext) I I I I I I I I I I I I 1 I I I I I , , I , - Lost Returns with Mud Drop I I 1 I I 1 I I I I I I I I I I I I I I I Fluid Gradients w/ Pore Pres I I I I I I I I I I 300- I I I I I I I I I I ----- ---- -- - ----- ---- ---- ---- ----- - I I I I I I I I I I 7 ~ I 7 r , r ----r----r- ~ I I I 1 I I I I I I I I I I I I I I I ---7-----1-----r----r--~ I I I I I I I I I I 50 I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I '-----'--------- '-----! -----!-----'-----'-----'-----! - I I I I I I I I I 1 I I I I I I I I I I I I I I I I I I I I I I I I ---!-----'-----'-----'---! I I I I I I I I I I I I 1 I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I 1 I I I I I I I I I 600 I I I I I I I I I ----+-----~-----I-----I ----~ ---+----~-----1-----~----+-- I I I I I I I I I I I I i I I I I I I I I I I I I I I I I I I 1 I I I ---+-----+-----I-----~--~ I I I I I I I I I I I I I I I 750 I I I I I I I I I I I I I t l I I I I I I I I I I I I I I ----,-----,-----,-----r----;-- --,-----,-----,-----,-- I I I I I I I I I I 1 i I I I I I I I I I I I I I I I I I I I I I I I I I ---;-----,-----,-----,---; I I I I I I I I I I 00 I I I I I I I I I I I I I I I I I I I I I I I I I I I ----1----~-----'-----'-----L---------~--- '------L----L- I I I I I I I I I I I I I I I I I I I I I I ---1----J-----1-----L--J I I I I 1 I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I 1050 I I I I I I I I I I I I I I I I I I I I ----rt----y-----I----- ----- ----- - I I 1 I I I I I I I I r r --- i-----I----- ----r- I I I I I I I I I I ---t----~-----I-----r--~ I I I I I I I I I I I I I I I I I I I I I I I I I I I I , I I I I I I I I I I 1 I I I I I I I I I I 1200 I I I I I I I I I I -----'-----'-----'-----I I ____ I ----'---- ' ' I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I ----'-----'-----'-----'----' I I I I I I I I I I I I I I I 350 I I I I I I I I I I I I I I 1 I I I I I I I I I I I I I I I ----~----~-----~-----~-----~----~----~-----~-----~----~-- I I I I I I I I I I I , I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I ---~ ---~-----I-----~----~ I I I I I I I I I 1 I I I I I 500 I I I I I I I I I I I I I I I I I I I I I I I I I I I I I ----T----1-----I-----I r----7-----I-----I-----r----r- I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I ---7----1 ----I r--1 1 I I I I I I I I I 650 I I I I I I I I I I I I I I I I I I I I I I I ----! ----!-----'-----'-----! ----! -----I-----'-----'-----'-- I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I ---! -----'----- ----'---! I I I I I I I I I 1 I I I I I I I I I I 1800 I I I I I I I I I I I I I I I I I I I I ----+-----+-----1-----I-----+-----+-----~-----1-----~----~- I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I ---i-----1-----I-----~---+ I I I I 1 1 I I I I t Q m d 3 y Qf 70 140 210 280 350 420 490 560 Pressure (psi) Original Wellbore 630 700 770 840 910 980 StressCheck 2003.16.0.1 Build 857 l~ • U File:_Final INTEQ Plan Design File) - _ __ _ - Date: May 30, 2008 Page: 14 COLLAPSE DESIGN (10 3/4" Surface Casing) 0~ - ~ I X I I 1 I I I I I 1 I I I I I I 1 00 - - _ _ _ _ _ _I_ _ _ _ _ - _ _I_ _ _ _ _ _ _ _ J _ _ _ _ _ _ _ _ 1 _ _ . I I I I I I I I I I I I I I I I 200 I I I I - _ _ _ _ _ _ _I_ _ _ _ _ _ _ _I_ _ _ _ _ _ _ _ ~ _. _ _ _ _ _ _ _ .~ _ _ . I I I I I I 1 I I I I I I I I I 300 --------'---------'---------'------. '-- I I I I I I I I I I I I I I I I I I I I 400 -------I---------~-----------------~-- I I I I I I I I I I I I I I I I 500 - -------'----~-----'---------'--------'--- I I I I I I I I I I 1 I 1 I I I I I 1 I 600 --------I--- -----I--------~--------~--- I I I I I I I I I I I I I I I I 700 -- I I ' - - - - - -I- - - - - - - -,- - - - - - - - -, - - - - - - - - j - - - I I I I I I I 1 I I I I I I I I 000 _ _ _ _ _ _ _I- _ _ _ _ _ _ _I- _ _ _ _ _ _ _ ~ _ _ _ _ _ _ _ - 1 _ _ _ L V 1 I I I a I I I I I I I I Q I I I I I I I I ~ 900 - -- ----- ------- ------I- I- ,------'-1--- I I I I ~ I I I I 7 I I I I I I I I C 1 000 _ _ _ _ _ _ _ _ L _ _ - _ _ _ _I_ _ _ _ _ _ _ _ J _ _ _ _ _ _ _ _ 1 _ _ _ L I I I I I I I I I I I I I 1 1 I 1100 I I I I - - - - - - -I- - - - - - - 'I - , - - - - - - - - , - - - I I I I I I I I I I I I I I I I 1200 -- -----'--- -----'---------'--------!--- I I I I I I I I I I I I I I I I I I I 1300 -- -----I--- -----I---------,--------,--- I I I I I I I 1 I I I I I I I I 1400 --------'--- -----'---------'--------'--- I I I I I 1 I I I I I I I I I I I I I I 1500 --------~--- -----I--------~--------~--- I I I I I I I I I I I I I I I 1 1600 I ' I I I I I I I I I I I I I I I I 1700 ---+----I---y-----I---------~- 1- I I 1 - - - - - - - I - - I I I I I I I I I I I 1800 I I I ' 0 1500 3000 4500 6000 7500 Collapse Rating (psi) ~~ ~ + Design Load Line 9000 10500 12000 135001 Original Wellbore StressCheck 2003.16.0.1 Build 857 !y • File: Final INTEO Plan [Des~ci n File Date: Mav 30, 2008 Paae: 15 AXIAL LOADS DATA (10 3/4"Surface Casinai Running in Hole -Avg. Speed: Overpull Force: Post-Cement Static Load: Green Cement Pressure Test: Service Loads: 1.0 ft/s 100000 Ibf Yes 2000.0 psi Yac Original Wellbore StressCheck 2003.16.0.1 Build 857 IS L a N d 7 H `° 1 m File: Final INTEQ Plan (Design File) • Date: May 30, 2008 Page: 16 Axial Load Profiles -Apparent (wlBending) (10 314" Surface Casing) I I I I I I I I I I I I I I I I I I I I I I I I I - Running in Hole I I I I I I I I I I I I I I - Overpull Force 150 I I I I --- ~------1------1-------J----- -~------I- --- -~------ ~ I -----~----- - Post-Cement Static Load I I I I I I I I I I I I I I , , I , - Green Cement Pressure Test I I I I I I I I I I , , , , , , I I I I I I I I ~ I , Service Loads I I I I 1 300 I I I I I I I I ---- ----- - ------ --- I I I I I -- -- r 1 I r I I I I I I I I I I I I I I I I I I I I I I I r ~ ~ I ~ I I I ~ I I I I I I 50 I I I I I I I I I I I I I I I I I ---!------'------'------! -----!------'------'--- I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I - 1_-_ I _ _I_ __ I I I I I I I I I I I I nn 6W I I I I I I I I I I I 1 I I I I I I I I I I I I _ _ _ ~ _ _ _ _ _ _1_ _ _ _ _ _I- _ _ _ _ _ ~- _ _ _ _ _ + _ _ _ _ _ _I_ _ - - _ _I_ _ _ _ _ ~ I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I _ _ -. _ + _ _ _ _ _ ~ _ . _ _ _1_ _ - - - _ ~ _ _ ~ I I I I I 1 I I I I I I I I I 7C^ JV I I I I 1 I I 1 I I I I I I I 1 - 1 _--I I I I I I I - - - - - - - - - - - - - - - - - - - - - - - - - - - - - I I I I I I I I~ I I I I I' I I - - - - - - - - - - - - - - - - - - - - - - - - , , , I ~ , , ; I I I I I I I I I I I I I I I I I I I ~ , , r j I I I I I I I I I I 00 I I I I I I I I I 1 I I I I I I I I I I I --- -----1- I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I --- -1-----J- ----'------~--~ I I 1 I I I I I I I I I I I I 50 I I I 1 I I I I I I I I I I I I I I I I I I I I -- 7------I------r-----r-----rt------I------r-----r I I I I I I I I I I I I I I 1 I I I I I I I I I I I I I I I I I I I I I I 1 I -- --rt------I ---.`-I------r--ti I I I I I I I I I I I I I I I 200 I I I I I I I I I I I I I I I I I I I I I I I I - - - _ _ _ _ _ _I_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _I_ _ _ _ _ _ _ - - - _ - _ I I I I I I I I I I I I I I I I I I I I I I I I I I I I - _ _ _ - _ _ _ _ - - - _ _ _ -I_ _ _ _ - - _ - - _ I I I I I I I I I 1 50 I I I I I I I I I I I I I I I I I I I I I I I I - - ~ I - - - - - - I- - - - - - ~ - - - - - ~ - - - - - -I - - - - - ~-~ I- - - - - - ~ I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I - - - - ~ - - - - -1 - - - - - - I- - - - - - 1'- - - ~ I I I I I I I I I 1 I I I I 00 I I I I I I I I I I I I I I I I I I I I I --- ------ ------ - --- ------ - ------ -- ---~ I - I I I I I I I I I ----- - ---- - - I ~ r r r I I I I I I I I I I 7 -- -~- -r- -- r--~ I I I I I I I I I I I I I I I 1 I I I I I I I I I I I I I I I I I I 1 I I I I I I I I I I I I I I I I 650 ---!------'------'---- -! -----!------'------'----- ! --- --!------'------'------! --! - I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I B00 I I I I I I I I I I I I I I I I --- ~ ------I------I------~ -----~ ------I------1------1- I I I I I I I I I I I I I I I I I I I I I I I I I I -----+-----~------1------I--- ~ I I I I I I I I I I -120000 -80000 -40000 0 40000 80000 120000 160000 200000 240000 280000 320000 Axial Force (Ibfl Original Wellbore StressCheck 2003.16.0.1 Build 857 !6 File: Final INTEQ Plan (Design Fiie) AXIAL DESIGN (10 3/4" Surface Casin 0 -r + I I k I I I I I I I I I I 100 ------ -I--------~--------1------ I I I I 1 I 1 1 I I I I I I I 200 ______ _,________~_______________ I 1 I I I I I 1 I I I I 300- ------ - --- '---~-----! ------ I I I 1 I I 1 I I 1 I 1 I I I 400 --------I-- -----i--------------- I I I I I I I I I I I I 500 --------;-- -- --;--------;------ I I I I I I I I I 1 I I 600 -------I- +------I--------+----- I I I - - I 1 I I I I I I I 700 I 1 I I I I I I I I I I I I I ~ 800 --------I- ~- -----~--------1- w I I I d I I I I I I Q I I I _ _ _ _ _ _ _ _I_ + _ _ _ _ _ _ , _ _ _ _ _ _ _ _ T _ _ _ _ _ _ . ~ 900 I I I I I I I ~ I I I ~ I I 1 I I I ~ 1000 -~-+------J--------1 - I 1 I 1 I I I I I 1100 I I --------- --- ---- 1 --- -I---- T------- I I 1 I 1 I I I I I I I 1 1200 --------;-+------;--------;------ I I I I I I I I I 1300 --------~+------=--------t I I I I I I I I I I 1400 -' + ------ '---- 1 - - - - ~ - I I I ~ I I I 1500 -------+ -------~--------+------ I I ~ I II I I I I I I I 1600 -- I 1 I } I I I I I I I I I I i I I I I 1700 +________~__, ____1 _. I I I 1 I I I I I I I 1800 I I 1 C~ _ Date: May 30,_2008 Page: 17 0 300000 600000 900000 1200000 1500000 1800000 2100000 2400000 2700000 Axial Force (Ibf) Original Wellbore StressCheck 2003.16.0.1 Build 857 /7 i File: Final INTEO Plan (Design File DESIGN PARAMETERS DATA (7 5/8" Production Casing) Design Factor (Pipe) -Axial Tension: Design Factor (Pipe) -Axial Compression: Design Factor (Coupling) -Axial Tension: Design Factor (Coupling) -Axial Compression: Design Factor (Pipe) -Burst: Design Factor (Coupling) -Burst: Design Factor (Pipe) -Collapse: Design Factor (Pipe) -Triaxial: Minimum Internal Drift Diameter: Single External Pressure Profile: Temperature Deration: Limit to Fracture at Shoe: Buckling: Use Burst Wall Thickness in Triaxial: Date: May 30, 2008 Page: 18 1.300 1.300 1.300 1.300 1.100 1.100 1.000 1.250 0.000 " Yes No Yes No No INITIAL CONDITIONS (7 5/8" Production Casing) Mix-Water Density: Lead Slurry Density: Displacement Fluid Density: Slackoff Force: 8.33 ppg 10.50 ppg 9.40 ppg 0 Ibf Temperatures:. Default Vertical Depth (ft) Temperature (~') 21.00 ft 80.0 ~ 300.00 ft 84.2 ~ 597.81 ft 88,7 ~ 789.91 ft 91.5 ~ 882.61 ft 92.9 `F 972.47 ft 94.3 `F 1059.05 ft 95.6 `F 1141.94 ft 96,8 ~ 1220.72 ft 98.0 `F 1295.02 ft 99.1 `F 1364.52 ft 100.2 ~ 2378.86 ft 115.4 `F 2449.63 ft .116.4 `F 2524.00 ft 117.5 `F 2601.76 ft 118.7 ~ 2682.71 ft 119.9 ~ 2766.62 ft 121.2 ~ 2853.26 ft 122.5 ~ 2942.39 ft 123.8 ~ 3127.15 ft 126.6 `F 3318.88 ft 129.5 ~ 3614.93 ft 133.9 `F 5714.78 ft 165.4 ~ 5787.99 ft 166.5 `F 5787.99 ft 166.5 `F 5787.99 ft 166.5 ~ Original Wellbore StressCheck 2003.16.0.1 Build 857 /~ • rne. rmai nv a tit rtan (ues~n rneL _` BURST LOADS DATA (7 5/8'° Production Casing) Drilling Load: Test Pressure: Mud Weight; Assigned External Pressure: Production Load: Packer Fluid Density: Packer Depth, MD: Perforation Depth, MD: Gas Gravity: Reservoir Pressure: Assigned External Pressure: Production Load: Injection Pressure: Injection Density: Assigned External Pressure: Drilling Load: Test Pressure: Mud Weight at Shoe: TOC, MD: Lead Slurry Density: Displacement Fluid Density: Float Collar Depth, MD: External Pressure: TOC, MD: Prior Shoe, MD: Mud Weight Above TOC: Fluid Gradient Below TOC: Pore Pressure In Open Hol Uate: May ;iU,LUUtS Nape: ~ y Pressure Test 2000.0 psi 9.40 ppg Fluid Gradients (w/ Pore Pressure) Tubing Leak 8.60 ppg 4599.99 ft 4819.99 ft 0.70 209.5 psi Fluid Gradients (w/ Pore Pressure) Injection Down Casing 3000.0 psi 8.33 ppg Fluid Gradients (w/ Pore Pressure) Green Cement Pressure Test 2500.0 psi 9.40 ppg 3200.00 ft 10.50 ppg 9.40 ppg 5782.99 ft Fluid Gradients (w/ Pore Pressure) 3200.00 ft 1700.39 ft 9.40 ppg 8.33 ppg No Original Wellbore StressCheck 2003.16.0.1 Build 857 /~ File: Final INTEQ Plan (Design File) Date: May 30, 2008 Page: 20 Burst Pressure Profiles (7 5/8" Production Casing) t n. Gl d 7 N !C d I I I I I I I I I I I I I_. _. ---~ I I I 1 I I ~ - Pressure Test I I I I I I I I I I I I I I I ( I - Tubing Leak -- - 1-----~----r-----I----- I -----,-----,-----r--- -- - Green Cement Pressure Test(Int) I ~ ~ ~ ~ ~ ; ; ; - Green Cement Pressure Test (Ext) I I I I I I I I I I I I I I I I I I In ection Down Casin 1 g _ _ _ _ I _ - I I I I I I I I I I ' _ _ _ _ _ I- _ - - I I I I -- -- - Fluid Gradients w/ Pore Pressure I I I I I I I I I I I I I I I I I I I I I I I I I i I I I I I I I I I I I I I 1 I I I I I I I I I I I I I I I _ _ _ _ _I_ _ _ 1 _ - _ _ _ L _ _ _ _ _I_ _ _ _ _ 1 _ . _ _ I I I I I L - _ _. _ _ _ _ _ .l _ - _ _ _ L - _ _ i , I _ _I- _. _ _ _ ~ _ _ _ _ _ L _ _ _ _ _I_ _ J I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I _ _ _ _ _I_ _ _ . ~ _ _ _ _ r I_ _ _ _ _ Y _ _ _ _ I I I I I I I I I I I I I _ r _ _ _ _ _I_ _ _ _ ~ _ _ _ _ _ r _ _ _ I I I I I I I I I I I I I _ _I_ _ _ - _ ..r _ _ _ - _ r _ _ _ _ _I_ _ .~ I I I I I I I I I I I I I I I I I I I _--_ _I _ I -__- I - I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I 1 I I I I -_____I-____1__ _~___... _I--___1____ I I I I I I I I I I I I I I I I I I I I I I I I I _~_____ ____.1 ---_1-___ I I I I I I I I I I I I I I I I I I I I I I I -_I_____J.____-r__-__I__J I I I I I I I I I I I I I I I I I I -----I-----~----- ----I-----~---- I I I I I I I I I I I I I I I I I I I I I I I I I I -r I-- --7-- --r--- I I I I I I I I I I 1 I I I I I I I I I I I I I I I I --r----7-----r-----r-7 I I I I I I I I I I I I I I I I I I I I _ _ _ _ _I_ - _ _ _ ~ _ _ _ _ _ ~ _ _1_ _ _ _ _ ~ - _ _ _ I I I I I I I I I I I I I I I I I I I I I I I I I I I _ ~ _ _ _ _ _1_ _ _ _ _ I _ _ I I ----- I - I I I I I I I I I I I I I I I I I I I I I _ _I_ _ _ _ _ ~ _ _ _ - _ ~ _ _ _ _ _1_ _ ~ I I I I I I I I I I I I I I I I I I I I I I I I _ _ _ _ _I_ _ _ - _ ~ _ _ _ _ _ ~ _ _ _ _ _I _ _ _ _ ~ _ _ _ _ I I I I I I I I 1 I _ ~ _ _ _ _ _I_ _ _ _ _ ~. _ _ _ ._ ~ _ _ I I I I I I I I _ _I_ _ _ - _ .1 _ _ _ _ _ )_ _ _ _ _ _I_ _ ~ I I I I I I I I I I I I I I I I I I I I _ _ _ _1_ _ _ _ _ Y r _ _ _ _ _I- . _ _ ~ _ _ _ _ I I I I I I I I I I I I _ r _ _ _ _ _I_ _ _ _ _ ~ _ - - _ _ _ _ _ I I I I I I I I I I I I I _ _I _ _ _ - ~ _ _ _ _ . r _ _ _ _ _I_ _ ~ I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I _ _ _ _ ~ _ _ _ _ _ I_ _ _ _ _ _1_ _ _ _ I _ _ I I I I I I I I I I I I I I I I I I _ ~ _ _ _ _ _I_ _ _ _ _ ~ _ _ _ - _ ~ I I I I I I I I I I I I I I I I I _ ~ _ _ _ _ _ ~ _ _ _ _ _I_ _ ~ I I I I I I I I I I I I I I I I I I I I _____I___ _~_____~_____I_____~_ __ I I I I I I I I I _ _____I_____..y_____~___ I I I I I I I I I I I __I ____.1___.._~_____I__~ I I I I I I I I I I I I I I i I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I -----r----~ ----r-----I ~---- I I I I I I I I I I I I I I I I I I I I ____.I_____!_____~ _____I_.___ ~____ I I I I I I I I I I I I I I r-- --r----~-----r--- I I I I I I I 1 I I I I I I I I _~ _____I_____ ~-____~ ___ I I I I I I I I I I I I I --I--- --r-----r-----1--~ I I I I I I I I I I I I I I I I I I I I __I___-_ ~___-_~ _-___I___I I I I I I I I I I I 450 900 1350 1800 2250 2700 3150 3600 4050 4500 4950 5400 5850 Pressure (psi) Original Wellbore StressCheck 2003.16.0.1 Build 857 20 File: Final BURST INTEQ Plan (Design DESIGN (7 5/8" Prod File) uction Casing) - --- __ Date: Maa~30,_2008 _ - Pag e: 21 O 1- ~ :~ T T T --. I I I I I I I + Design Load Line I I I I ' I I I ~ ~ I I ~ ~ x Pipe Ratir~ 400 ---- ---I------- i I I --~--------J---- I I I I I I ----1--------1------ I I I I 1 -'_ -_~-.------~--------'----- I I I I I I - ---- 800 I I I - - - - - - I-. .. -' - - - - I I I I I 1 I I -I- - - - - - - - 7 - - - - I I I I I I I I I 1 - - - - 7 - - - - - - - - t - - - - - - I I I I I 1 I I I I I I I - _ - - r - - - - - - - - r - - - - - - - -I- - - I I I I I I _ - - 1200 I I -+ -----'------- I I I I I I I ~--'---------'---- I I I I I I I I I ----!---- --'------ I I I I I I I I I I - '- '- - - , - '- -- - - - - - I - - - - - - - -, - - - I I I - - - 600 I I --------I------ I I I I I --I---------+---- I I I I I 1 ----t--------~------ I I I I I I 1 I I --r--------•---------I----- --- ~. I I I I I I I I I I I I I I I I I I I I I I I I 2000 I -- ------'------ I I 1 I I --'---------'---- I I I I I I I I ----'--------=------ I I I I I I I I 1 -----------'-------- ' I I -,-- --- I I I I 1 I ---- 2400 I I - ------I------ I I I I I I --1--------~---- I I I I I I I I ----~--------+------ I I I I I I I I I I --~--------~--------I----- I I I I I I ---- 2800 I I I I I I I I I I I - - - ~ I I I I I I - - - - j - - - - - - - - 7 - - - - - - I I I I I I I I - - I- - - - - - - - - ,- - - - I ' I I I + I I I I I I I I I I 1 I I I I I ^~ ~ I I I I 1 I I I 3200 ---- - - - ~------ --I--------~---- ----~--------i------ --~--------~---------I----- ---- s I I I I I I I I Q I + I I I I I I I I I I I 1 I I I I I Q ~ I ~ ~ I I I I I -o 3600 - ------------ i -- r ~ r--------r I r--------r--------I----- ' ---- ~ I I I I I I I I 1 I I ~ I I I I I I + I I I I i I I I I 1 I I I I I 4000 _ _ _ _ _ _ _I_ _ _ _ _ _ _ _I_ _ - _ _ _ _ _ J _ _ _ _ _ _ _ _ 1 _ _ _ _ _ _ _ _ 1 _ _ _ _ _ _ _ _ L _ _ _ _ _ _ _ - L _ _ _ _ _ _ _ _I_ _ _ _ _ _ _ _ _ I I I I I I I I I I 1 I I I I I I I I I I I I I 4400 I I -+------I------ 1 I it I I I I --I--- ,- I I I I I I I I --,--------r------ I I I I I I I I I I --r--------~--------I----- I I I I I I ---- 4800 I I -+------'------ I I I I I I I --'--- -' I I I I I I I I I I ---!------- !------ I I I I I I I I I I I I --~--------'---------'----- I I I I I I ---- 5200 I - - - - - - -I- - - - - - ~ I I I I ~ - -I- - - - - - - - y - - I I I I I I -r - - - - - - - - t - - - - - - I I I I I I I I I 1 I I I - - r - - - - - - - - r - - - - - - - -I- - - - - I I I I I I - - - 5600 I I - ------'------ I I I I I --'---------'---- I I I I I I ----'------ , - - ~ - - - - - - I I I I I I ---'---------'----- - - ,- - - - - - I I ---- I + I I I I I I I I I I I I I I I I I I I 1 I I I 6000 I - ------I------ I I I I --I--------~-- I I I I I I ~--------+------ I I I I I I I --~--------~--------I----- I I I I I I ---- 6400 I I - - - - - -,- - - - - - - I I I I I - -,- - - - - - - - ~ I I I I I I ------------------- I I I I I I I I I I 1 ------------------------- I I I ---- + I I I I I I I I + I .~ I 1 1 I I I I I I I I I I I I 6800 I --------~------- I I I I --~--------~ I I I I I I ~--------~------ I I I I I I I --~--------~--------I----- I I I I I I ---- 7200 I I I I I I ~ I I I I I I I I I I I ' 2500 5000 7500 10000 12500 15000 17500 20000 22500 25000 Burst Rating (psi) Original Wellbore StressCheck 2003.16.0.1 Build 857 z~ File: Final INTEO Plan_~Design File _ - -- COLLAPSE LOADS DATA (7 5/8°' Production Casing) Drilling Load: Mud Weight at Shoe: TOC, MD: Lead Slurry Density: Displacement Fluid Density: Float Collar Depth, MD: Assigned External Pressure: Production Load: Assigned External Pressure: External Pressure: TOC, MD: Prior Shoe, MD: Fluid Gradient Above TOC: Fluid Gradient Below TOC: Pore Pressure In Ooen Hole Below TOC: s Date: May 30, 2008 Pac~e:_ 22 Cementing 9.40 ppg 3200.00 ft 10.50 ppg 9.40 ppg 5782.99 ft Fluid Gradients (w/ Pore Pressure) Full Evacuation Fluid Gradients (w/ Pore Pressure) Fluid Gradients (w/ Pore Pressure) 3200.00 ft 1700.39 ft 9.40 ppg 9.40 ppg No Original Wellbore StressCheck 2003.16.0.1 Build 857 ~2 • File: Final INTEQ Plan (Design File) Date: May 30, 2008 Page: 23 Collapse Pressure Profiles (7 5/8" Production Casing) L a m D .D CI l0 41 g I I I I I I I i I I I I I 1 I I I I I I I I I I I I I - Cementing (Int) I I I I I I I I I I I I I I - Cementing (Ext) I I I I ---- -----I - ----r-----r-----I------I----- ~-----r-----I-- - --- - Full Evacuation I I I I I I I I I I I I I I I , I , I I I I I I I I I I I I I I I I I I - - - - - I- - - - - I - - - -' - - - - '- - - - - -'- -- - - - -1 - - - - - I - - - - - '- - - - - -'- - I - I - I I I I I I - Fluid Gradients w/ Pore Pres I I I I I I I I 1 I I __ _-_-_ _ I I I - - - _I - ' - - - I- - - - - -'- -' I I I I I I I I I i I I I I I I I I I I I I I I I I I I I I I I I I I I _ _ _ _ _ I_ _ _ _ _ _I _ _ _ _ 1 _ _ _ _ _ L _ _ _ _ _ I_ - _ - _ _I _ _ _ _ _ 1 _ _ _ _ _~ L _ _ _ _ _ I- _ 1 I I I I I I I I I I I I I I I I 1 I I I I i I I I I I I I 1 I I I I I I I I I I I _ _ _ _I - _ - _ - 1 _ _ _ _ _ L _ _ _ _ _ I_ J I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I _ _ _ _ _ I_ _ _ _ _ _I _ _ _ .. T _ _ _ _ r. _ _ _ _ _ 1_ _ _ _ _ _I _ _ _ _ _ T _ _ _ _ _ r _ _ _ _ _ I_ - I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I -- I --- I I I I I I I I I I I I I I I I I I I I I I I _ _ _ _1 _ _ _ _ _ T _ _ _ _ _ r - - - - - I_ -I I I I I I I I I i I I I I I I I I I I I I I I I I I I I 1 I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I _ _ _ _ _I_ _ _ _ _ _I- - - _ - 1 _ _ _ _ _ L _ _ . _I_ _ . _ _ _I_ _ _ _ _ 1 _ _ _ _ _ L _ - _ _ -I_ _ I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I 1 I I I I I I I I I I I _ _ _ ~ _ - _ _ _ 1 _ _ _ _ _ L _ _ _ _ _I_ ~ I I I I I I I I I I I I I I I I I I I I I , I I I I I I I I I I -----I---- --I------T -----r-----I-- ---I T-----r-----I-- 1 I I I I 1 I I I I I I I I I I I I I I I I I I I I I I I I I I I I - - _ 1- - - - -I - - - - _ I _ - - - I I I I I I I I I I I I I I I I I I I I I ----I-----T-----r-----I- 1 I I I I I I I I I I I I I I I I I I I I I I I I I _ _ I I I I I I I I I I I I I I I I I , I I I I I I I I I I I I I I I I I I I I I I I I I _ _ _ _ _ I_ _ - _ _ _I _ _ _ _ _ ~ _ _ _ _ _ ~ _ _ _ _ _ I_ _ _ _ _ _I _ _ _ _ _ ~ _ _ _ L - _ _ _ _ I_ _ I I I i I I I I I I I I I I I I 1 I I 1 I I I I I _ _ _ _ _ I I 1 I I I I I I I I I I I I I I I I I I I I I I _ _ _ _I _ _ _. _ _ 1 _ _ _ _ _ ~ _ _ _ _ _ I_ ~ I I I I I I I I I I I I I I I I I I I I I I I I 1 I I I - _ _ _ - I- _ _ _ _ _I T _ - _ _ _ r I_ _ _ _ _ _I _ _ _ _ _ T _ _ _ _ _ r - - _ 1_ _ I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I _ _ _ _ _ I_ _ _ _ _ _I _ _ _ _ _ I _ ~ _ _ _ _ _ I_ _ _ I ~ ~ 1 I I I I I I I I I I I I I I I _ _ _ _I _ _ _ _ - T _ _ _ _ - r _ _ _ _ _ I_ ~ I I I I I I I I I I I I I I I I I I I I I ~ ~ 1 ~ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ I I I I I I I I I I I I I 1 I I I I 1 I I I I I I I I I I I I I I I I I I I 1 I I I I I I _ _ _ _ _ I_ _ _ _ _ _I _ _ _ _ _ ~ _ _ _ _ _ ~ _ _ _ _ _ I_ _ _ _ _ _I _ _ _ _ _ ~ _ _ _ _ _ )_ _ - . _ _ I_ _ I I I I I I I I I I I I I I I I I I I I I I I I _ _ _ _ _ _ _ - _ _ _ _ _ - _ _ _ _ I I I I I I I I I I I I I I I I I I I I I I _ _ _ _I _ _ _ 1 - _ _ _ _ ~ _ _ _ _ _ 1_ .~ I I I I 1 I I 1 I I I I I I I I I I I I I I I I I I I I I I -- ---I------I- -----f --- -- r I------I T----- r--- - -I-- I I I I I I I I I I I I I I I I I I I I I I I I I I I 1 1 I 1 1 I I I I - _ _ _ _ ~_ _ _ _ _ _1 ~ _ _ _ _ - r _ _ _ _ _ I_ _ _ _ _ _I _ _ _ - _ ~ _ _ _ _ _ ~ _ - _ _ _ 1_ _ I I I I I I I I I I I I I I I I I I I I I I I I I I 1 I I I I I -- --I----- T --- r---- -I--I I I I I i I I I I I I I I I I I I I I 1 _ _ _ _1 _ _ _ _ _ ~ _ _ _ _ I _ _ _ _ _ I_ _I I I 1 I I I I I I I 0 250 500 750 1000 1250 1500 1750 2000 2250 2500 2750 3000 3250 Pressure (psi) Original Wellbore StressCheck 2003.16.0.1 Build 857 23 • File_ Final INTE(~ Pian (Design File) COLLAPSE DES_I~N (7 5/8" Production Casin ~ I ~ I I I I I I 400- --------'----- ---'--------~--------- I I I I I I I I I I I I - - - - - - -I-- - - - ---I---------1- - ~- ---- - 800 ~ ~ I I I I I I I I I I I I I 1200 --------'----- ---'---------'-------- I I I I I I I I I I I I I I I 1600 - ------I----- ---I- ---,- ----- -------- I I I I I I I I I I I I 2000 - - ----;----- ----;-------- ;--------- I I I I I 1 I I I I I I 2400 --------I- --- ---~--------~--------- I I I I I f I I I I I I 2800 -- -----'----- I I I I I I I I I I I I ~ I I I I ~ 3200 -- -----~----- ---I---------~--------~ ~ I I 1 ~ Q I I I I I I I I ~ I I I I - -- - -- -~ - --- -- -I- -- - ----,-- -, -~ 3600 ~ I ~ ' I I I I ~ I I I I ~ I I I I (Q I I I I ~ 4000 --- ----'----- ---~--------J--------~ I I I I I I I I I I I I I I I - - - - - - -I- - - ' - - - -I- - - - - - - - - - - - - - - - - - 4400 ~ ~ I I I I I I i I I I I I I I I I I 4800 --------'----- ---'---------'--------1 I I I I I I I I I I I I I I I I I I I I _ _I _ _ _ y _ _ _ _ _ _ _ _ Y 5200 ----- --I----- - I I I I I I I I I I I I I I ~ I I 5600 ---'----- ---'---------'--------' I I I I I I I I I I I I I I I I I I I 6000 ------ -~----- ---~--------~--------i I I I I I I I I I I I 1 I I I I 6400 ' I ~ I I I + ~ I I I I I I I I I I I 6800 --------~---------~--------~- I I I I I I ~ I I I I I I I I 7200 ~ ~ ' 0 3000 6000 9000 - Date:- May 30, 2008_Pa~e:_24 T Original Wellbore StressCheck 2003.16.0.1 Build 857 ~4 12000 15000 18000 21000 24000 2700 Collapse Rating (psi) • • File: Final INTEQ Plan Design Filed _ _ _ AXIAL LOADS DATA (7 5/8'° Production Casingl Date: Mav 30, 2008 Page: 25 Running in Hole -Avg. Speed: Overpull Force: Post-Cement Static Load: Green Cement Pressure Test: Service Loads: 1.0 ft/s 100000 Ibf Yes 2500.0 psi Yes Original Wellbore StressCheck 2003.16.0.1 Build 857 2~ File: Final INTEQ Plan (Design File) • Date: May 30, 2008 Page: 26 Axial Load Profiles -Apparent (w/Bending) (7 518" Production Casing) I ; ~ ~ I ; ; ' / ~/ -Running in Hole ~ 550 ' ------'_____-_-~-_____; I I ~ ; ' ` I -OverpullForce I ____ _ _ I I I I I I , I ___---,------ ; ------' --_-_! __ ____I___ - Post-Cement Static Load I ~ I I ; ; ~ I - Green Cement Pressure Test ; ' I I ; I I ~ Service Loads 1100 - - - -. ' I -~ _____-___. _. _.. I _ _ _ _ _ _ _ _ I I I _ I I _ _ _ _ _ I ' I I I I I I I I I I I I I I I _ _ _ I I I I I I I I _ _ I I - _ - _ - _ _ _ _ _ _ _ _ _ _ _ _ I ____________ I I I I I I I I I ~ 1650 I I I I I I I ----- I i I I I I I ;~ I I .. -.- I I I r------I------I------Y- -- I ' I -- - - - , ~ ' I I I , I I I I I , I I , - - - t - - - - - -I , I I I , - -- - t - - - - - - I ' ' ~~ I----~ -t------I------I I I I , I 1 2200 I , I I I I ---- -~-----~------I-------~- I I i I , I I I - I I ---I------ --- I I I i I , I I I ' I I ' ' I I I I , I I I , I I I -- - I I , I I , ' -- --a------- ' I i- - - _ - ~ - - - - - -I- - - - - ~ I I I ' 2750 I I , I I I _ _ _ _ _I- _ _ _ _ ' 1 I I I I I I I I I , I I I I I I , I I _ _ _ _ _ _ _ _ _ _ _ _ _ 1 - I I I - _ _ I_ _ _ _ _ _ _ _ _ I I I i I I I I I I I I _ _ - I I I I _ s, _ _ - _ I_ _ _ -- - I'1. - -_-L --_ ---I-- ----~ I I I .~ I I I ' I I I I I I I I I I I I~ I I P I I I ' I I I I 3300 I I I I I , - ----- I - - - - - I I I I~ I I I I Q I - - - - - - - I I - I _ _ _ _ _ -- _. _ _. -___ I I I I I I I I I _ _ _ _ _ _ _ _ I I ____ __________ I _ Q I I I i I I I I I I I _-I____- ~ I I I I I I I I I I I 4) I I I I ' I I I ~ I 33850 y -----I ' ' I ----- r ~ - - - - - - - - - - I ' I I I ~ ' I I ' I ~ GI I I I - - - - I _ _ _ _ I I_ _ _ __~ ______I_ I I I I I - - - _ _ _ _ _ _ ._ I I------ ----- I I I I ~ I I I I I I I I I I I T -I----- ~ I I I II I I 0 I I I I I I - _ _ _. _ ~ _ _ _ _ _ { _ _ _ _ _ -I_-_ __+ I I I I I I I I -1 I I I ~ I I I I I I I I __ _ _i _ _ _ _ _ __ I I I I I I I I I I I I I I-- __--I I I I I I I 950 I I I I I I I I - _ - - - L - - - - -~ - - - - - - L - - - - - 1 - - I I I I I I I I - -I- - - - - - 1 I ~ I I I I I I I I I I I i I 1 I I I I ' I , I , I I I - - - - - - - - I I I I , I I - - 1 - - - - - - _ '- - - - - - L - - - - - -I- - - - - -~ I I i I , I I 5500 i I I I I I -----I ------'- ' ~ - - - - - - - - - - - ~ I _ I , I I I I I I I I ; ' I I - - - - - - - - - - - _ - - - , - - ' I I I I I I I I I , ~ ~ I I I I I I I - - - - - - - - - - -I- - - - - - - I I ' I 50 - I , I ~ ~ I - - - - - I I I I I I' ~ ~ , I I I , I I I I I ~ ~ ~ ~ - - - - ~ - - - - - -;- - - - - - - -- - - - - I ' I - ; ' ' I I I I , - - - - - --- - - - - I I- I I - I -- T - - - - - -I- - - - - - r - - - - - -I I ----- I I I I I I I I I I I I I I I , I I I I _ _ 600 I I I I I I I I _ _ _ _ ' I I I I I I I I I I i I I I r ____ _y___ ___I_ _ __ __ I I I I I I I- - - - - _ t - - - - - -I- - - I I I - _ - I I I I I I I I I I I I I I I I I I I + - - - - - - I-_----t--_---I------I I I i I I I I I I I I I I I I 50 - - - - - L - - - - - 1 - _ - - - -I- - - - - - -~ - - - I I I I I I I I _ _I_ _ _ _ _ _ 1 - I I I I I I I I I I I I I I I _ _ _ _ _ _I_ _ _ I _ _ _ 1 _ _ _ _ _ _I_ _ _ _ _ _ L _ _ _ _ 0 30000 60000 90000 120000 150000 180000 210000 240000 270000 300000 Axial Force (Ib~ Original Wellbore StressCheck 2003.16.0.1 Build 857 2~ • File: Final INTE_Q Plan (Design File _ - Date_ May 30, 2008 Page: 27 AXIAL DESIGN (7 5/8" Production Casing) 0 - + ~ - -r- ~ -r- - - ~- -- -- + Design Load Line x Pi a Ratin p --,~-- 400 _ _ _ _ _ _ _I_ _ _ _ _ _ _ J _ _ _ _ _ _ _ _ 1 _ _ _. _ _ _ _. _ L _ _ _ _ _ _ _ _I_ _ _ _ _ _ _. _ J _ _ _ _ _ _ _ _ 1 _ _ _ _ _. _ _ _ L - _ _ _ _ _ _ _ 1 1 I I I I I I I I I I 1 I I I -~- I I I I 1 I I I I 1 I I I i I I I - I I I I I I I 800. _ i _7________T________1________I______._._y________T________r________ I I I I I I I i + I I I 1 I I I 1 I I I I I I I I I I I I I I I I I 1200 --------'------ -!---- --'--------'- - ---' _---- --'--------!--------'--------- I I I I I I I I I I I I I I 1 I + I I I I 1 I i I I I I I I I I I 1600 ~ ~ I 1 I 1 I -- -----1------ -ti--------+--------r--------I--------y--------+--------r-------- i I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I 2000 - - - - - - - -'- - - - - - - -'- - - - - - - - I - I I I I I --------------------------------------------- I I I I I I I I I 1 I I I i I I I 1 1 I I I 1 I I I I I I I I I I 1 I I I I I I 2400 - ------1------ -~--------+--------~--------1---------~--------+--------~-------- I I I I I I I i I I I I I I I I I I I 1 I I I 1 1 I 1 I I I I I 2800 I I I I I I I 1 _ _ _ _ _ _ _ _I_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ r _ _ _ _ _ _ _ _I_ _ _ _ _ __ _ _ _I _ _ _ _ _ _ _ _ ~ _ _ - - - _ - _ _ _ - - _ _ _ _ _ I I I I I I I I + I I I I I I I I I I 1 I I I I I ~_ I I I I I I I I 3200 - - _ _ _ _I_ _ _ _ _ _ _ J _ _ _ - _ _ _ _ 1 _ _ _ _ _ _ _ _ L _ _ _ _ _ - _ _I_ _ _ _ _ _ _ _ J _ _ _ _ _ _ _ _ 1 _ _ _ _ _ _ _ _ ~ _ _ _ _ _ _ _ _ L + I I I I I I I I 1Z 1 1 1 I I I I I I I 1 I I 1 I I Q I I I I I I I I 3600 I ' 1 I I I 1 1 -Q - ------I------ -~--------r--------r--------r-------~ r- r i- I I I I I I I I ~ I 1 I I I 1 I 1 I 1 1 I I I I I I I I I 1 I I I [~] 4000 _+ _ _ _ _ _ _I_ _ _ _ - _ _ J _ _ _ _ _ - . _ 1 _ _ _ _ _ _ _ _ L. _ _ _ _ _ _ _ -I_ _ _ _ _ _ _ _ J _ _ _ _ _ _ _ _ 1 _ _ _ _ _ - _ _ L _ _ _ _ _ _ _ _ 2C I I I I 1 I I I I I I I I 1 I I I I I I I I I I I I I I I I I I 4400 I I I I I I I I - - - - - - -I- - - - - - - ~ - - - - - - - - t - - - - - - - - r - - - - - - - -1- - - - - - - - ~ - t - - - - - - - - r - - - - - - - - i I I I I I I I } I I I I I I I I I I I 1 I I I I I I I I I I I I 4800 --------'--------'--------=--------'---------'--------'--------~------- '-------- I I I I I I I I I I I I I I 1 I I I I I I I I I I I I I I I I I I I I I I I I I 5200 --I--------~--------T--------1---------1---------,--------Y--------r-------- I I I I I I I I I I I I I I I I 1 I I I I I I I I I I I I I I I 5600 --------'---------'--------=--------'---------'---------'--------=--------'- -------- I I I I 1 I I I I I I I I I I I F I I I I I 1 I I I I I I I I I I I I I I I I I I 6000 --------1---------~--------+--------~--------1---------~---------+--------~-------- I I I I I 1 I I I I I I I I I I I I I I I I I I I 1 I I 1 I I I 6400 --------I- I I I I I I I 6 I 1 I I I I I I F I I I I I 1 I I I I I I I I I 1 I I I I 1 I I 1 6800 --------I--------~--------~--------~---------I--------~--------~--------~-------- I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I 1 7200 ~ ~ I 1 250000 500000 750000 1000000 1250000 1500000 1750000 2000000 2250000 2500000 Axial Force (Ibf) Original Wellbore StressCheck 2003.16.0.1 Build 857 ~7 • File: Final INTEQ Plan (Design Filer Date: Mav 30. 2008 Paae: 28 WELL SUMMARY String ODNVeighUGrade Connection MD Interval Drift Dia. Minimum Safety Factor (Abs) Design Cost (ft) (") Burst Collapse Axial Triaxial ($) 1 urtace Casing - - - - - - - ' 10 3/4", 45.500 ppf, K_55_ _ ~ _BTC, K-55 ' 21.00-1700.39 I _I- - - ~ 9.875 A' 1.73 I 2.92 1 2.35 ' 1.94 ' 1 - + - - - - ~ - 33,901 I 2 1 I - - - 1 I _ _ _ _ - - - - ~ - - - - "~ - - - - - - 1 I I I I - - - - - - - - _ Total = 33,901 3 I 1 I L I I I I I I I I Production Casing _ _ I 7 5/8", 29.700 ppf, L-80 _ I BTC, L-80 _ i. _ _ ~ 121.00-6573.20 1 _ _ J . _ L _ _ J _ . I_ _ _ 1 _ 6.750 I 2.30 I 1.70 I 2.31 I 2.30 I _ _ _ - _I 119,132 5 I I I I I I I 1 1 I I I 1 I 1 I I I I 1 I Total = 119,1321 __ _ _ _ _ _ _ _ _ _ _ T _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ I r _ _ _ _ _ _ _ , I I _I_ _ _ _ _ _ _ _ r 1 I I I I I I _ _ _ _ _ , _ _ _ _ _ r _ _ _ _ l _ _ _ _ -I_ _ _ _ _ T _ , , , I I 1 _ _ _ - _ _ _ _ _ Total = 153,033 8 Alternate Drift 1 I . I I I I I Original Wellbore StressCheck 2003.16.0.1 Build 857 :Z $ • File: Final INTEQ Plan (Design_File~ __Date: May 30, 2008 ---------------------- - MMS REPORT -------------- ------- -- - __ APD INFORMATION SHEET ~ Lease : Well : Area / Blk : Field Company : Approx. date work will start Surface Location : Gas Gradient (psi/ft) : 0.100 Bottom Hole Location : Salt-water Gradient (psi/ft) Rig Name : Type : W D : RKB Well Type 1 HOL CASING CASIN WEIGH BURST LLAPS TYPE SAFETY CASING WELL SHOE WP TEST CEMEN MU E (Indicate if G T CO CONNECTI MASP DEPTH FACTORS HEAD BOP ANNULA T D SIZE liner) SIZE GRADE E R ING ON MD RATIN SIZE R ANNULA CASIN SHO CUBIC E R TYPE AT B C T TVD Pp MW FG G /RAM G FT 13 " Surface 10 314" 45.500 3581.40 BTC 851 1 73 2 92 3 1700.39 8 39 9 20 15 00 1/2 Casing K-55 2094.00 . . . 1500.00 . . . 7/8„ Production 7 5/8" 29.700 6885.25 gTC 851 30 1 70 31 6573.20 7 00 9 40 15 00 Casing L-80 4789.00 . . 5787.99 . . ®riginal Wellbore StressCheck 2003.16.0.1 Build 857 2~ 0 ~A' W L V. • ® ~ ~ ~ ~ o ) ~ ~ ~ ~a ~ 0 M ~ 0 9600 ft '----- 0 .~ V ~ _ ~ ~ ~ y- ~ 7200 ft ------ ~ 0 N ~ O ~ V ~ = ~ t/~ 4800 ft W ~ L ~ ~ L Q~ 2400 ft ----- O ~ ~ '~ W • ~ ., ~ M M E------------ --- -- 1 __~, i I - - ~~~ - ~ xf N ~'., O i --~~»_ ~ I N ;~ O R i ~ r r 43 :`I i Figure 10A Unit Boundary i ' X1`,1, \ `k ~~ ,.,j} ~~ ,i, +~ '--~, i6a ~' i 'e..__...-~ /: , ,.,` /6~0.~./ \~ ~~~i ``• `000 .~ \_ ~- --- y ~. `,.- ,,, 9 --° `~ y' R `~ i l .~ (~ ,3~C 1 ~M 4 '• `'`' i \ 't" =,;, ~ ~~ ~ ~ ~ ~~~~ K U 24-7 rd Slurry ,; x ~` ,~ `~ Injection ~~`'~`~~ ~ ~ i ~ a ~ - 4000 ft radius - { ~ - ~ / ;`,. most likely ', ~ i ' _ j ~ ' 1 f I /~ ~ / I O ~ ~ / !!~ ! I f~ ,~~~ ~ 1 ~ ~ iii i }}~ 1 ~~ r+ Pr I (~~ 1 t ! CJ - •--~ • &E E1ivltonmsrtta~ Setvlces inc. a rrr~r~arrw~v~ra~rrororra~r CT&E Ref.# 1028010001 Cheat NAU-e MaradtaA Ott Co AK jLepion Rro3ect Ptasae4# Water 14-6 Clieut Ssipapk iA Water 14-6 Matrix Water (Swrface, Bff:, Gratimlj Figure 11 AU Aates4Times are Alaska Standard Time PrintedDate/Time 12/12(20112 9:09 CaliectedDatelTitne '_..""_;20112 0:00 Received Date47'ltne 11/22/2002 15:Q0 Tecittu~d Airectar Stepp Rdc Released sy Sample Remarks: 150.1 - pFF Sample was retxived and analyzed after holding time 31ad expired. Atlowubk 1'r~ "~ Itut Resalts PQL Units Method LiastR [Arta DRto ~. D'sfferanoe 13 9~o SMTO 19308 12!10492 AS Roltt:laa Oiiiiaid, lta-tas Ana7.ysis 4+[Italitlizy 910 200 mg41. SM20 23205 11130/02 AS t~tlatide 667 10.0 tgg/L El'A 390.0 i 14Z3/t12 3S C03 Alkalinity 0.110 mg/L $NI7A 2320.6 11/39/02 AS HC03 AAcalinfty 910 mglL SrM29 23205 11139/02 l 14302 AS A5 ~ ,,,;ty 9.9D mglL sM2o 232115 ' 11/25402 A3 ~ 8.19 0.100 pIi units I3PA 150.1 - 1 U25/02 AS g,~gp~,yy 2.74 1.00 ohtn-m SMl9 23I QA 11/27/02 IS Sulfxre 7.79 S.OD 11131[. EPA 300.0 lfatals Dapartsoaat 585 0 O.QI00 mg4L 1+PA 2110.7 Dissolved 11/25/02 12/04402 Mnr 13ariant . 8 28 0.200 mg/L EPA 200.7 Dissolved i 1/T5^D2 12/04492 MTC3 ' Catciym . 0 143 0400 0 tt1g2 S1'A 200.7 Dissalved 11424102 l T/041UT CC 119. ' ' iron . 540 . 200 ~I- F-.PA 200.7 ]3is~lvcd 11t351D2 1 T/044DT I ta M Sodiwn 383 0 0100 0 tng/L 14PA 200.7 Dissolved 11/25402. 12/Q4492 &TTG ~ . 303 . 200 0 mg/L EPA?A0.7Dissalved 11/25402 12104!02 ATfG Megpeslum . ~aatz~.a ~ xcr/r~rs 4 73 2.00 ug1L El'A 200.8 ~ivcd 11/25/02 11/27402 ICGI Arsetlia . 49700 S00 ug/L EPA 200.8 Dissalved 111«5102 11127402 Kql Pwassiutn § 147.2 administ in those' failed to al or w; does not and regu promulgated the state has for approv- ted program um statutory nts. c c) In programs ap- proved t to section 1422 of r tats subpart describe ~ ents of such program s_ statutes and regulati ~ f Legal Au- tllority, al Agreement, a nd Pro j,L .State stat- utes an hat contain st, radar and proce- dures a rs or opera- tors hav ted by refer- el;ce pu bons of the O' ~ ° o ister. Materi- al ,or w.... .,, a„~.,rence is avail- able for inspection in the appropriate EPA Regional Office, in EPA Head- quarters, and at the Office of the Fed- eral Register Information Center, Room 8301, 1100 L Street, NW, Wash- in8ton, DC 20408. Other State statutes and regulations containing standards and procedures that constitute ele- rncnts of the State program but do not apply directly to owners or operators have been listed but have not been in- corporated by reference. (d) In the case off State programs (?rornulgated under section 1422 that are to be administered by EPA, the State salbpart makes applicable the provisions of Parts 124, 144, and 196, and provfdes additional requirements pertinent to the specific State pro- bram. P egulatory provisions incorporat- es. ~ 1°eference (in the case of ap- proved State programs) or promulgat- ed by EPA (in the case off EPA-admin- istered programs), and all permit con- . ditions or permit denials issued pursu- ant to such regulations, are enforcea- ble by the Administrator pursuant to section 1423 of the SDWA. (f) The information requirements lo- cated in the following sections have been cleared by the Offl.ce of Manage- ment and Budget: Sections 147.104, 147.304, 147.754, 147.904, 147.1154, 147.1354, 147.1454, 147.flF54, 147.1954, and 147.2154. The OMB clearance number is No. 2040-0042. 40 CFR Ch. I p-1-90 Edition) 9147.2 Severability of provisions. The provisions in this part and the various applications thereof are dis- tinct and severable. If any provision of this part or the application thereof to any person or circumstances is held in- valid, such Invalidity shall not. affect other provisions or application of such provision to other persons or circum- stances which can be given effect with- out the invalid provision or applica- tion. Subpart B-Alabama 9147.50 State-administered program- Class ll wells. The UIC program for Class II wells in the State of Alabama, except those on Indian ]ands, is the program admin- istered by the State Oil and Gas Board of Alabama, approved by EPA pursu- ant to section 1425 of the SDWA. Notice of this approval was published in the FEDERAL REGISTER On AugUSt 2, 1982 <47 FR 33268); t•he effective date of this program is August 2, 1982. This program consists of the following ele- ments, as submitted to EPA in the State's program application: (a) Incorpor¢tion by reference. The requirements set forth in the State statutes and regulations cited in this paragraph are hereby incorporated by reference and made a part of the ap- plicable UIC program under the SDWA for the State of Alabama. This incorporation by reference was ap- proved by the Director of the Federal Register on June 25, 1984. (1) Code of Alabama 1975, sections 9-17-1 through 9-17-110 (1980 and Supp. 1983 ); (2) State Oil and Gas Board of Ala- bama, OIl and Gas Report i (supple- mented) (1981), General Order Pre- scribing Rules and Regulations Gov- erning the Conservation of Oil and Gas in Alabama (Order No. 76-100) as amended by Board Order No. 82-96 (May 14, 1982) amending Rule E-4). <b) The Memorandum of Agreement between EPA Region IV and the Ala- bama Oil and Gas Board, signed by the EPA Regional Administrator. on June 15, 1982. (c) St¢te~nent of legal ¢uthority. "State Oil and Gas Board has Author- 780 Environmental Protection Agency ity to Carry Out Underground Infec- tion Control Program Relating to Class II Wells as Described in Federal Safe Drinking Water Act-Opinion by Assistant Attorney General," May 28, 1982. (d) The Program Description and any other materials submitted as part of the application or as supplements thereto. [49 FR. 20197, May 11, 1984, as amended at 53 FR 43086, Oct. 2b, 1988] 0147.51 State-administered program- Class i, 1[i, IV, and V wells. The UIC program for Class I, III, IV and V wells in the State of Alabama, except those on Indian lands, is the program administered by the Alabama Department of Environmental Man- agement, approved by EPA pursuant to section 1422 of the SDWA. Notice of this approval was published in the FEDERAL REGISTER On August 25, 198$ <48 FR 38640); the effective date of this program is August 25, 1983. This program consists of the following ele- ments, as submitted to EPA in the State's program application: (a) I~tcorporation by reference. The requirements set forth in the State statutes and regulations cited in this paragraph are hereby incorporated by reference and made a part of the ap- plicable UIC program under the SDWA for the State of Alabama. This incorporation by reference was ap- proved by the Director of the Federal Register on Jl:ne 25, 1984. (1) Alabama Water Pollution Con- trol Act, Code of Alabama 1975, sec- tions 22-22-1 through 22-22-14 (1980 and Supp. 1983); (2) Regulations, Policies and Proce- dures of the Alabama Water Improve- ment Commission, Title I (Regula- tions) (Rev. December 1980), as amended May 17, 1982, to add Chapter 9, Underground Infection Control Reg- ulations (effective June 10, 1982), as amended April 6, 1983 (effective May 11, 1983). (b) The Memorandum of Agreement between EPA Region IV and the Ala- bama Department of Environment Management, signed by the EPA Re- gional Administrator on May 24, 1983. (c) St¢tement of legal authority. (1D "Water Pollutlorl-Public. Health- § r~r.,oo State has Authority to Carry Out Un- derground Injection Control Program Described in Federal Safe Drinking Water Act-Opinion by Legal Counsel for the Water Improvement Commis- sion,°' June 25, 1982; (2) Letter from Attorney, Alabama Water Ymprovement Commission, to Regional Administrator, EPA Region IV, "Re: AWIC Response to Phillip Tote's (U.S. EPA, Washington) Com- ments on AWIC's Final Application ffor Class I, IIY, IV, and V UIC Pro- gram,°' September 21, 1982; (3) Letter from Alabama Chief As- sistant Attorney General to Regional Counsel, EPA Region IV, "Re: Stat of Independent Legal Counsel in A)~ bama Water %mprovement Comr sion's Underground Injection Cont. Program," September 14, 1982. (d) The Program Description and any other materials submitted as part of the application or as supplements thereto. i49 ~R, 20197, May 11, 1984, as amended at 53 ~R, 43086, Oct. 25, 1988) 9147.60 EPA-administered progrnm- lndian lands. (a) Contents. The UIC program for all classes of wells on Indian lands in Alabama is administered by EPA. This program consists of the UIC program requirements of 40 CFR Parts 124, 144, ,146 and any additional regerire- ments set forth in the remainder of this subpart. Injection well owners and operators and EPA shall comply wit these requirements. (b) Effective d¢te. The effective d~ off the UIC program for Indian lands in Alabama is November 25, 1988. [53 1:`R, 43086, Oct. 25, 1988] Subpart C®Alaska 9147.100 State-administered program- Class 11 wells. Tile UIC program for Class II wells in the State of Alaska, other than those on Indian lands, is the program administered by the Alaska Oil and Gas Conservation Commission ap- proved by EPA pursuant to Section 1425 of the SDWA. Notice of this ap- proval was published in the FEDERAL '~81 Page 1 of 2 § 147.101 REGYSTER [May 6, 1986]; the effective date of this program is June 19, 1980. This program consists of the following elements, as submitted to EPA in the State's program application. (a> fncorporation by reference. The requirements set forth In the State statutes and regulations cited in this paragraph are hereby incorporated by reference and made a part of the ap- plicable UIC program under the SDWA for the State off Alaska. This incorporation by reference was ap- proved by the Director of the FEDExnL REGYSaER effective June 19, 1986. (1) Alaslta Statutes, Alaska Oil and Gas Conservation Act, Title 31, § § 31.05.005 through 31.30.010 (1979 and Cum. Supp. 1984); (2) Alaska Statutes, Administrative Procedures Act, Title 44, § § 44.62.010 through 44.62.650 (1984); (3) Alaska Administrative Code, Alaska Oil and Gas Conservation Com- mission, 20 AAC 25.005 through 20 AAC 25.570 (Supp. 1986). (b) The Memorandum of Agreement between EPA Region 10, and the Alaska Oil and Gas Conservation Com- mission, signed by the EPA Regional Administrator on January 29, 1986. (c) Statement of Legal Aulhority. Statement from the Attorney General of the State of Alaska, signed by the Assistant Attorney General on Decem- ber 10, 1985. (d) The Program Description and any other materials submitted as part of the original application or as sup- plements thereto. C51 ~ 16G84. May 6. Il986] ~ 147.101 Ii;PA-administered program. (a) Contents. The UIC program in ilea State off Alaska for Classes I, III, I'(1 and i/ wells, and for all classes of wells on Indian lands, is administered by EPA. This program consists of the UIC program requirements of 40 CFR Parts 124, 144, and 146, and additional requirements set forth in the remain- der off this subpart. Injection wells owners and operators and EPA shall comply with these requirements. (b) Effective dates. The effective date of the UIC program for all non- Class II wells in Alaska and for all wells on Indian lands, Is June 25, 1984. 40 CFR Ch. ! (7-'I-90 Edition) [52 F'R 17880, May 11, 1987] 0147.102 Aquifer exemptions. (a> This section identifies any aquifers or their portions exempted in accordance with §§ 144.7(b) and 146.4 of this chapter at the time of program promulgation. EPA may in the future exempt other aquifers or portions, ac- cording to applicable procedures, with- out codifying such exemptions in this section. An updated list of exemptions will be maintained in the Regional office. (b) The following aquifers are ex- empted in accordance with the provi- sions of §§ 144.7(b) and 146.4 of this chapter for Class II injection activities only: (1) The portions of aquifers in the Kenai Peninsula, greater than the in- dicated depths below the ground sur- face, and described by a '/, mile area beyond and lying directly below the following oIl and gas producing fields: (i) Swanson River Field-1700 feet. (ii) Beaver Creek Field-1650 feet. (Iii) Kenai Gas Field-1300 feet. (2) The portion of aquifers beneath Cook Inlet described by a '/a mile area beyond and lying directly below the following oil and gas producing fields: (i) Granite Point. (ii) McArthur River Field. (iii) Middle Ground Shoal Field. (iv) Trading Bay Field. (3) The portions of aquifers on the North Slope described by a '/a mile area beyond and lying directly below the Kuparuk River Unit oil and gas producing field. 0147.103 Existing Class I, II (except en- hanced recovery and hydrocarbon stor- age) and III wells authorized by rule. Maximum injection pressure. The owner or operator shall limit injection pressure to the lesser of: (a) A value which will not exceed the operating requirements of § 144.28(f)(3) (i) or (ii) as applicable; or (b) A value for well head pressure calculated by using the following for- mula: Pm=(0.733-0.433 Sg)d where Pm=infection pressure at the well head In pounds per square Inch 782 Environmental Protection Agency Sg=speclfle gravity of lnJect fluid (unitlessD d=iniectlon depth iii feet. 0147.104 Existing Class II enhanced re- covery and hydrocarbon storage wells authorized by rule. (a) Maximum injection pressure. (1) To meet the operating requirements of § 144.28(f)(3)(Ii) (A) and (B) of this chapter, the owner or operator: (i) Shall use an injection pressure no greater than the pressure established by the Regional Administrator for the field or formation in which the well is located. The Regional Administrator shall establish maximum injection pressures after notice, opportunity for comment, and opportunity for a public hearing, according to the provisions of Part 124, Subpart A of this chapter, and will Inform owners and operators in writing of the applicable maximum pressure; or (ii) May inject at pressures greater than those specified in paragraph (a)(1)(i) of this section for the field or formation in which he is operating provided he submits a request in writ- ing to the Regional Administrator, and demonstrates to the satisfaction of the Regional Administrator that such in- f action pressure will not violate the re- quirement of § 144.28(f)(3)(ii) (A) and (B). The Regional Administrator may grant such a request after notice, op- portunity for comment, and opportu- nity for a public hearing, according to the provisions of Part 124, Subpart A of this chapter. (2) Prior to such time as the Region- al Administrator establishes rules for maximum injection pressure based on data provided pursuant to paragraph (a)(2)(ii) of this section the owner or operator shall: (i) Limit injection pressure to a value which will not exceed the oper- ating requirements of § 144.28(fD<3)(ii>; and (ii) Submit data acceptable to the Regional Administrator which defines the fracture pressure of the formation in which injection is taking place. A single test may be submitted on behalf of two or more operators conducting operations in the same formation, if the Regional Administrator approves such submission. The data shall be submitted to the Regional Adminlstra- § 147,151 for within 1 year of the effective date of this program. (b) Casing and cementing. Where the Regional Administrator deter- mines that the owner or operator of an existing enhanced recovery or hy- drocarbon storage well may not be in compliance with the requirements of § § 144.28(e> and 146.22, the owner or operator shall comply with paragraphs (b) (1) through <4) of this section. when required by the Regional Admin- istrator: (1) Protect USDWs by: (i) Cementing surface casing by re- circulating the cement to the surface from a point 50 fleet below the lo~ most USDW; or (ii) Isolating all USDWs by ph cement between the outermost cas'.;g and the well bore; and (2) Isolate any injection zones by (ilacing sufficient cement to fill the calculated space between the casing and the well bore to a point 250 fleet above the injection zone; and (3) Use cement: (i) Of sufficient quantity and quality to withstand the maximum operating pressure; <ii) Which is resistant to deteriora- tion ffrom formation and injection fluids; and (iii) In a quantity no less than 120mo off the calculated volume necessary to ceanent off a zone. (4) The Regional Administrator ma3~ specify other requirements in additt to or in lieu of the requirements forth in paragraphs (b> (1) througl as needed to protect USDWs. 5ubport ®®Arlxono 0147.150 State-administered program. (Reserved] 0 147.151 EPA-administered program (a) Contents. The UIC program Lhat applies to all injection activities In Ari- zona, including those on Indian lands, Is administered by EPA. The UIC pro- gram for Navajo lands consists of the requirements contained in Subpart HHH of this Part. The program for aIP Injection activity except that on Navajo Indian land consists of the UIC program requirements of 40 CFR °~~~ Page 2 of 2