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DISPOSAL INJECTION ORDER NO. 34A March 23, 2009 Marathon's request to amend DIO 34 for disposal of class II oilfield waste by underground injection for KU 12-17 March 26, 2009 Notice of public hearing, affidavit of publication, and mailing lists March 29, 2009 Notice of public hearing, affidavit of publication, and mailing lists June 10, 2009 Email re: injection at KU 12-17 March 8, 2010 Email re: Marathon and commercial disposal through G&I facility ----------------- Annual reports September 28, 2010 Marathon's email re: annual report KU 12-17 February 28, 2011 Marathon's report of disposal 2010 July 9, 2014 Hilcorp's report asked for in RULE 6 establishing the DIO for the Class II G&I Disposal well KU 12-17 located on Pad 41-18 at the Kenai Gas Field for the 11 months Hilcorp operated the well in 2013 June 29, 2015 Hilcorp's report establishing DIO for the Class II G&I disposal well 12-17 for 11 months operated in 2013 July 1, 2016 Hilcorp report establishing DIO for the Class II G&I disposal well 12-17 for 11 months operated in 2015 DISPOSAL INJECTION ORDER NO. 34A • r STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7r" Avenue, Suite 100 Anchorage, Alaska 99501 Re: THE APPLICATION OF Marathon Oil Company for modification of Disposal Injection Order 34 to expand the approved waste disposal injection interval in the Sterling Formation in the Kenai Unit Well 12-17, Section 17, T4N, Rl l W, S.M. Disposal Injection Order No. 34A Docket No. DIO-09-01 Sterling Formation Kenai Unit Well 12-17 May 27, 2009 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 27th day of May, 2009. BY DIRECTION OF THE COMMISSION ie Special As~ist~nt to the Commission ORDERS • ~ 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 modification of Disposal Injection Order 34 to expand the approved waste disposal injection interval in the Sterling Formation in the Kenai Unit Well 12-17, Section 17, T4N, Rl l W, S.M. Disposal Injection Order No. 34A Docket No. DIO-09-01 Sterling Formation Kenai Unit Well 12-17 May 27, 2009 IT APPEARING THAT: Alaska Oil and Gas Conservation Commission (Commission) regulation 20 AAC 25.252 provides the authority to issue an order governing underground injection of Class II oil field wastes. The Commission issued Disposal Injection Order 34 (DIO 34) on November 20, 2008 for Kenai Unit (KU) 12-17 (KU 12-17), operated by Marathon Oil Company (Marathon). 2. The Commission issued administrative approval DIO 34.001 on December 17, 2008 clarifying the fluids eligible for Class II waste disposal in KU 12-17. By application dated March 23, 2009, Marathon requested the Commission amend DIO 34 by expanding the approved underground disposal injection zone in KU 12-17. Marathon also requested an alternate schedule for submitting the annual disposal injection report. 4. Notice of opportunity for a public hearing was published in the ANCHORAGE DAILY NEws on March 26, 2009, in the PENINSULA CLARION on March 29, 2009, on the State of Alaska Online Notices on March 25, 2009, and on the Commission's Web site on March 25, 2009, in accordance with 20 AAC 25.540. The scheduled hearing date was May 4, 2009. 5. The Commission did not receive any comments, protests or requests for a public hearing. 6. The public hearing was vacated on Apri121, 2009. 7. The information submitted by Marathon; the findings, conclusions and administrative record for DIO 34; and public well history records are the basis for this amended order. Disposal Injection Order 34A ~ • Page 2 of 10 KU 12-17 May 27, 2009 FINDINGS: 1. Location of Adjacent 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 6585 feet measured depth (MD), which is equivalent to 5786 feet true vertical depth (TVD). The bottom hole location for KU 12-17 is in Section 17, Township 4N, Range 11W, 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 1/4-mile radius of KU 12-17. 2. Notification of Operators/Surface Owners (20 AAC 25.252(c22) 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 Di~osal 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 intervals as shown on Figures 5 and SA of Marathon's original application 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 perforated the Sterling B2 interval in KU 12-17 from 4110 feet to 4140 feet TVD for primary waste disposal injection. A coal layer from 3919 feet to 3926 feet TVD 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. 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. Gas storage in Sterling Pool 6 is isolated from the shallower Sterling B1 and B2 disposal injection intervals by laterally continuous coal, silt and shale layers. Gas storage injection in the Kenai Gas Field occurs into Sterling Pool 6. KU 12-17 penetrated the Sterling Poo16 at a depth of 4706 feet TVD. The gas storage injection zone is isolated from the Sterling B 1 and B2 intervals by laterally continuous coal, silt, and shale layers as well as well construction (casing and cement). Marathon identifies the specific lower confinement for the Sterling B1 and B2 intervals as being from 4150 feet to 4203 feet TVD. Structure maps provided by Marathon indicate there are no transmissive faults in the vicinity of Drillsite 41-18 at the depths that correlate to the injection zone and confining layers. Disposal Injection Order 34A ~ • Page 3 of 10 KU 12-17 May 27, 2009 Included in Marathon's application for amendment was a request to approve a maximum disposal zone defined by modeling the fracture extension assuming no confining layers. Marathon reports that the extreme case model (no confining layers) would result in fracture extension within the interval 3600 feet to 4150 feet TVD. Marathon's application requests the approved disposal zone be 3500 feet to 4400 feet TVD. 4. Evaluation of Confining Zones (20 AAC 25.252(c)(9)) Marathon's application for DIO 34 relied on the recent fracture model updates for waste disposal wells KU 11-17 and KU 24-07RD (which, also located on the 41-18 drill site, dispose into the Sterling Formation). The KU 11-17 and KU 24-07RD model 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 KU 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 reported that similar rock and fluid properties allow these well fracture model updates to predict fracture behavior for KU 12-17. The KU fracture model updates are in the Commission's files. For DIO 34, Marathon predicted a fracture height of 200 feet, growing into the Sterling B 1 interval, 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, KU 14-4, KU 24-07, and KU 24-07RD wells. More rigorous fracture simulations specific to KU 12-17 were performed at Marathon's initiative using actual well and formation data gathered during drilling and completion activities, including well log and step-rate test results. Simulations evaluated fracture geometry using stress profiles representing different confining layers. A worst case scenario involving no confining layers was also evaluated to determine the maximum possible fracture growth. 5. Standard Laboratory Water Analysis of the Formation (20 AAC 25.252(c)(10)); Aquifer Exemption (20 AAC 25.252(c~ 11)~ By regulation (i. e., 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 that the water below 1300 feet TVD is not fresh water, 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. Disposal Injection Order 34A • ~ Page 4 of 10 KU 12-17 May 27, 2009 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 directionally drilled south to a depth of 5786 feet TVD (6585 feet MD); 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 consists 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. A 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 data. Cement bond appears to be excellent throughout, above and below the proposed Sterling B1 and B2 injection intervals. The interpreted top of the cement is approximately 360 feet above the top of the upper confining zone. A mechanical integrity test (MIT) was performed on December 16, 2008, as required by the Commission prior to commencing injection. A second MIT will be performed after injection commences for the first time; this MIT must be witnessed by the Commission. Marathon will continuously monitor wellhead pressures using asupervisory-controlled automated data acquisition system and daily visual inspections and pressure recordings. Additionally, Marathon states that annual due diligence reviews will be performed for all active slurry injection on the 41-18 drill site; the reviews will evaluate pressure trend data and fracture modeling update results. 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, workover and other Class II 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. Disposal Injection Order 34A ~ • Page 5 of 10 KU 12-17 May 27, 2009 No compatibility concerns relating to injected fluids and in-situ formation fluids have been identified by Marathon although Marathon has already injected more than 6.5 million barrels of Class II wastes into the KU disposal wells. 9. Estimated Injection 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 system. 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 1/4-mile radius of KU 12-17. The fracture modeling results provided with the original injection order application 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, KU 14-8, KU 24-7, KU 24-7RD, KU 41-18, KU 41-18X, KU 41-19, and KU 44- 18); and 3 wells within the Kenai Beluga Unit (KBU 13-8, KBU 24-7X, and KBU 33-7). Marathon indicated 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. Fracture simulations were performed using the actual well data and test results from drilling and completing KU 12-17. Marathon ran several fracture propagation scenarios using stress profile, barrier, and batch volume injection parameters that are more specific to the proposed disposal operations than those that were considered in connection with DIO 34. The more rigorous modeling supports a smaller area of review than the one used for DIO 34. CONCLUSIONS: 1. The requirements and conditions for approval of an underground disposal application in 20 AAC 25.252 are met. 2. The expected Sterling Formation disposal zone is approximately 145 feet thick. Expected upper confinement will be provided by a SO-foot shale and coal sequence that is shown on structural cross sections derived from logging data to be laterally continuous across the field. Expected lower confinement of injected fluids will be provided by a coal, shale and siltstone interval 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 intervals in active disposal injection wells located on the KU 41-18 drill site show the confining layers are effective barriers to fluid movement. Based on the modeled and actual injection rates in nearby waste disposal injectors operating analogously to what is planned for KU 12-17, the Commission concluded in DIO 34 that reasonable grounds exist to find that waste fluids will be contained within the proposed Disposal Injection Order 34A ~ ~ Page 6 of 10 KU 12-17 May 27, 2009 disposal zone by the lithologies above and below the Sterling B 1 and B2 intervals, cement isolation of the wellbore, and operating conditions. 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)(iii). Also, the total dissolved solids content of the water within Sterling B 1 and B2 intervals exceeds 10,000 mg/l. 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 Pool 6-are water wet. Gas storage in Sterling Pool 6 is isolated from the shallower Sterling B1 and B2 disposal injection intervals by laterally continuous coal, silt and shale layers. Therefore, vertical fracture growth will not likely reach Sterling Poo16. 5. More rigorous fracture simulations were performed using well log data and infectivity test results generated during KU 12-17 well construction. Marathon's March 23, 2009 application for an amended DIO 34 summarized the fracture simulations performed. Included in the more rigorous simulations was an extreme case evaluating fracture growth in the vertical and lateral directions assuming no confining layers. Maximum upward fracture growth depth was determined to be 3500 feet TVD; maximum downward fracture growth depth was determined to be 4150 feet TVD; and maximum lateral fracture propagation was determined to be approximately 1000 feet. 6. In DIO 34, the Commission concurred with Marathon's assessment that the casing, cement placement, and cement quality 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. A 4000-foot radius around KU 12-17 was deemed necessary based on information provided with the application for DIO 34. Results of rigorous fracture modeling provided with Marathon's application for an amended DIO 34 (requesting a vertically expanded underground disposal injection zone in KU 12-17) support an area of review defined by a quarter-mile radius around KU 12-17, i. e. , a smaller radius than that used for the well integrity reviews and surveillance requirements in DIO 34. 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 Bl and B2 intervals by an upper coal layer at 3919 feet to 3926 feet TVD and lower coal, shale, and siltstone interval from 4150 feet to 4203 feet TVD. 8. Modeling of a fracture growth scenario considering no confining layers reveals a disposal interval of 3600 feet to 4150 feet TVD, according to information provided by Marathon. The Commission agrees with Marathon's analysis that there would be no impact to freshwater or to production and gas storage zones in the case of no confining layers. A coal interval from 4200 feet to 4203 feet TVD is shown in the modeling results provided by Marathon to provide lower confinement for all scenarios evaluated. Therefore, setting the allowed disposal zone to coincide with the findings of an extreme case - 3600 feet to 4200 feet TVD Disposal Injection Order 34A ~ ~ Page 7 of 10 KU 12-17 May 27, 2009 - will not promote waste, jeopardize the ultimate recovery of hydrocarbons, jeopardize correlative rights, or result in fluid movement into freshwater. 9. There is no basis on which or apparent need to establish a disposal zone that is larger than what is indicated by the extreme case of fracture extension presented by Marathon: i. e., the disposal injection zone does not need to be greater than 3600 feet to 4200 feet TVD. 10. For disposal operations, fluid compatibility in the Sterling B1 and B2 is not a concern. 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. 11. 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. 12. Making the first annual performance report due 6 months following the commencement of injection into KU 12-17 will enable Marathon to undertake a more meaningful review of the well's injection performance. Subsequent annual injection performance reports should be provided to the Commission no later than July 1 of each year. 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 3600 feet to 4200 feet TVD. The Commission may immediately suspend, revoke, or modify this authorization if injected fluids fail to be confined to the approved disposal interval. RULE 2: Fluids This authorization is limited to Class II oil field waste fluids generated during drilling, production or workover operations. Included are drilling, completion, and workover fluids; glycol dehydration wastes; drilling mud slurries; tank bottoms; pipe scale (including naturally occurring radioactive material); produced water; precipitation within containment areas; pad storm water retention basins; drum rinsate; equipment wash water; and organic materials that are contaminated with crude oil or natural gas liquids. The eligibility of other fluids for Class II waste disposal injection will be considered by the Commission on a case-by-case basis upon application by the operator. 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. Disposal Injection Order 34A ~ ~ Page 8 of 10 KU 12-17 May 27, 2009 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's 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. 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 requirement to perform 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; it shall include, 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. The initial injection performance report may be delayed to include 6 months of data if injection commences after February 1. 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 quarter-mile radius around Disposal Injection Order 34A • ~ Page 9 of 10 KU 12-17 May 27, 2009 KU 12-17. Pressure records shall be made available for inspection upon Commission request. The annual surveillance report shall include for each of these KU 41-18 drill site wells a summary wellhead pressure plot and an assessment of the well's mechanical integrity. RULE 7: Notification of Improper Class II Injection The operator must immediately notify the Commission if it learns of any improper Class II injection. Complying with the notification requirements of any 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, jeopardize the ultimate recovery of hydrocarbons, 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. RULE 9: Compliance All 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. Any noncompliance may result in the suspension, revocation, or modification of this authorization. ENTERED at Anchorage, Alaska, and dated May 27, 2009. Daniel T. Seamount, Jr., Chair Alaska Oil and Gas Conservation Commission ~~/% ~~ A P. F Conservation Commission Gas Conservation Commission Disposal Injection Order 34A • KU 12-17 May 27, 2009 Page 10 of 10 RECONSIDERATION AND APPEAL NOTICE As provided in AS 31.05.080(a), within ZO 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. • 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 Kari 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 ~i;~ /, :/ // • Page 1 of 1 Colombie, Jody J (DOA) From: Colombie, Jody J (DOA) Sent: Friday, May 29, 2009 8:34 AM Subject: dio34A Kenai Unit 12-17 Attachments: dio34A.pdf BCC:'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'; caunderwood@marathonoil.com; 'Charles O'Donnell'; Chris Gay; 'Cliff Posey'; 'Dan Bross'; 'dapa'; 'Daryl J. Kleppin'; 'David Brown'; 'David Gorney'; 'David Hall'; David House; 'David L Boelens'; 'David Steingreaber'; 'ddonkel'; Deborah Jones; Decker, Paul L (DNR); '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'; 'gspfoff; 'Hank Alford'; 'Harry Engel'; 'jah'; 'James Scherr'; 'Janet D. Platt'; 'jejones'; 'Jerry Brady'; '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'; 'Kristin Elowe ; 'Laura Silliphant'; 'Lynnda Kahn'; 'mail=akpratts@acsalaska.net'; 'mail=fours@mtaonline.net'; 'Marilyn Crockett'; 'Mark Dalton'; 'Mark Hanley'; 'Mark Kovac'; 'Mark P. Worcester'; 'Marguerite kremer'; Melanie Brown; 'Mike Bill'; 'Mike Jacobs'; '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 Winslow'; Pierce, Sandra M (JPO); Rader, Matthew W (DNR); 'Randall Kanady'; 'Randy L. Skillern'; 'rmclean'; 'Rob McWhorter '; rob.g.dragnich@exxonmobil.com; 'Robert Campbell'; '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'; Teresa Imm; 'Terrie Hubble'; Thompson, Nan G (DNR); 'Tim Lawlor'; 'Todd Durkee'; Tony Hopfinger; 'trmjrl'; Von Gemmingen, Scott E (DOR); 'Walter Featherly'; 'Walter Quay'; 'Wayne Rancier'; 'Aaron Gluzman'; 'Dale Hoffman'; Fridiric Grenier; 'Gary Orr'; Jerome Eggemeyer; '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); Aubert, Winton G (DOA); 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, Bren (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) Attachm ents: dio34A.pdf; Jody J. Colombie Special Assistant Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 (907)793-1221 (phone) (907)276-7542 (fax) 5/29/2009 INDEXES 10 Hilcorp Alaska, LLC I D 3800 Centerpoint Drive Suite 1400 Anchorage, AK 99503 JUL 0 6 2016 {"� Phone:907-777-8441 Fax: 907-777-8580 AOG�jewing@hilcorp.com 7/1/2016 Ms. Cathy P. Foerster, Chair Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501 RE: RULE 6, DIO 34A: KU 12-17 Dear Ms. Foerster: Attached please find the report asked for in RULE 6 of DIO 34A establishing the DIO for the Class II G&I Disposal well KU 12-17 (PTD 208-089) located on Pad 41-18 at the Kenai Gas Field for the 12 months Hilcorp Alaska operated the well in 2015. The G&I water injection pumps run at 4.5 BPM no matter if during wellbore fill up, injection, or flush. Injection volumes and annuli pressures are included in Figure 1. Stress Log KU 12-17 disposes of Class II waste in the B-2 sand of the depleted Sterling Gas Reservoir. The Sterling is composed of weakly consolidated sand sized grains with large shale and smaller coal breaks between sand packages. The Sterling B-1 sand is ideal for cuttings injection because of the high porosity, high leak off of pad fluid, low pore pressure from decades of depletion, and bounding layers of softer shale and coals with higher stresses due the nature of the softer rocks. This is shown in Figure 2 where the stress difference in the rocks reflects the differences in the Poissons's ratio. The difference in Poissons's ratio is important when comparing the sands with the coals or the shale. Coals have the highest difference of Poisson's ratio with the difference upwards of 0.15 which at the stress regime translates to a stress difference of greater than 1000 psi. Along with the high leak off of the B-2 sand, this difference in stresses is important in keeping the injections contained in the disposal strata. This difference is shown in the stress log in Figure 2. Fracture orientation in KU 12-17 is expected to be vertical growing until the bounding layers are encountered above and below the injection strata. This has been proven by pervious temperature logs and by open hole log derived rock mechanics properties. The leak off of the B-2 sands is so high very little net pressure can be built at the rates attained by the G&I facility at 41-18 pad. Alaska Oil and Gas Conservation Commission Kenai Gas Field, KU 12-17 Annual Report July 1, 2016 Page 2 of 2 Zone of Influence Cumulative injection volume from l/l/2009 through 12/31/2015 has been 1,506,400 bbls of both clean water and G&I slurry with 273,100 from 1/1/2015 through 12/31/2015. Assuming a height of 51' between coal bounding layers, a porosity of 30%, and water saturation of 40%, the expected total area of influence is 21.2 acres with 4.0 acres added in 2015. Assuming cylinder geometry the total radius of influence is 542ft with 54ft added between 1/1/2015 and 12/31/2015. The area of influence added as of 1/1/2015 and 12/31/2015 is shown in Figure 3. Mechanical Integrity On 4/21/2015, a mechanical integrity test (MIT) was successfully performed on the KU 12-17. There were no indications of a lack of mechanical isolation. Figure 1 — Injection and Annuli pressures including daily average, daily max, & daily minimum and fluid volumes. Figure 2 — Expected stress log of Sterling B sands and bounding layers Figure 3 — Calculated zone of influence of the injected fluids Rule 6 of DIO 34A calls for a description of any anomalous injection results but for the year 2015 there were no anomalous results. Sincerely, Jason Ewing Reservoir Engineer (907) 777-8441 1000 100 i 10 KEU KU 012-17 Cumulative Gas Production:.0 MMcf -- Oil Production:.0 Mbbl -- Water Production:.0 Mbbl -- Water Injection: 273.1 Mbb) �w 01/2015 02/2015 03/2015 U P "n, 04/2015 05/2015 06/2015 07/2015 08/2015 09/2015 10/2015 11/2015 12/2015 Water Injection (BWPD) — Tubing Pressure (psig) -- Casing Pressure (psig) 2000 - 1500 1000 0 ., Figure 2 - Stress differential and Poisson's Ratio differential by rock type — — &1 Sand Ana is Poisson's ratio 0.4396 4059.73 0 m t N °O m o o • • 0 a • o m � L N O O � a m N o � 0 n 10 U) N v m m m CD a m m t N LUUU LJUU JUUU JJUU YUUU Y.LJ U.JV Y.VY Y.YV U.YV Pcl Poisson's ratio (psi) KBU 13-08 -3,859 KBU 32-08 -3,886 KBU 33-07 r I KU 2407RD -3,854 KBU 43-0 �7X Ks 1-7 KU 41-18X ,900 `_ j - KU 24-07 --- -3,834 . _ 1 -MJ 31-18 - --= - �41-18) ,880 I Hilcorp Alaska Kenai Field -3,972 Bw" B2 sore Am FEET -"v SE : A E:.: AAA MM /aM W iOw�-llf-W_t$�F Cq j Nr t %EET� ATTR!.TE WR .2ae �--'.�3.A�. •-l�=.h3 • OC A �'S h S x i Hilcorp Alaska, LLC 6/29/2015 Ms. Cathy P. Foerster, Chair Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501 RE: RULE 6, DIO 34A: KU 12-17 Dear Ms. Foerster: 3800 Centerpoint Drive Suite 1400 Anchorage, AK 99503 Phone: 907-777-8388 Fax: 907-777-8580 jmardambek@hilcorp.com JUL 0 1, 2015 Attached please find the report asked for in RULE 6 of DIO 34A establishing the DIO for the Class II G&I Disposal well KU 12-17 (PTD 208-089) located on Pad 41-18 at the Kenai Gas Field for the 11 months Hilcorp Alaska operated the well in 2013. The G&I water injection pumps run at 4.5 BPM no matter if during wellbore fill up, injection, or flush. Injection volumes and annuli pressures are included in Figure 1. Stress Log KU 12-17 disposes of Class II waste in the B-2 sand of the depleted Sterling Gas Reservoir. The Sterling is composed of weakly consolidated sand sized grains with large shale and smaller coal breaks between sand packages. The Sterling B-1 sand is ideal for cuttings injection because of the high porosity, high leak off of pad fluid, low pore pressure from decades of depletion, and bounding layers of softer shale and coals with higher stresses due the nature of the softer rocks. This is shown in Figure 2 where the stress difference in the rocks reflects the differences in the Poissons's ratio. The difference in Poissons's ratio is important when comparing the sands with the coals or the shale. Coals have the highest difference of Poisson's ratio with the difference upwards of 0.15 which at the stress regime translates to a stress difference of greater than 1000 psi. Along with the high leak off of the B-2 sand, this difference in stresses is important in keeping the injections contained in the disposal strata. This difference is shown in the stress log in Figure 2. Fracture orientation in KU 12-17 is expected to be vertical growing until the bounding layers are encountered above and below the injection strata. This has been proven by pervious temperature logs and by open hole log derived rock mechanics properties. The leak off of the B-2 sands is so high very little net pressure can be built at the rates attained by the G&I facility at 41-18 pad. Alaska Oil and Gas Conservation Commission Kenai Gas Field, KDU-10 Commingling Application May 1, 2014 Page 2 of 2 Zone of ]Influence Cumulative injection volume from 1/1/2009 through 12/31/2014 has been 1,251,710 bbls of both clean water and G&I slurry with 476,600 from 2/1/2013 through 12/31/2013. Assuming a height of 51' between coal bounding layers, a porosity of 30%, and water saturation of40%, the expected total area of influence is 17.5 acres with 6.6 acres added in 2013. Assuming cylinder geometry the total radius of influence is 494ft with 102ft added between 1/1/2014 and 12/31/2014. The area of influence added as of l/l/20134and 12/31/2014 is shown in Figure 3. Figure 1 — :Injection and Annuli pressures including daily average, daily max, & daily minimum and fluid volumes. Figure 2 — Expected stress log of Sterling B sands and bounding layers Figure 3 — Calculated zone of influence of the injected fluids Rule 6 of DIO 34A calls for a description of any anomalous injection results but for the year 2013 there were no anomalous results. Sincere , eremy Mardambek Reservoir Engineer (907) 777-8388 KEu KU 012-17 2000 1500 - 1000 500 ry V 2C14 021-2014 01'2014 04/2014 05/2014 06/2014 07/2014 08.12014 0912014 10/2014 11/2014 .2-.',.4 — Tubing — IA — OA — Water Injection 5000 '0 4000'0 31000 0 2000 '0 1GCC Well: KU 12-17 Desc: Disposal Permit to drill: 2080890 Admin Approval: DIO #34A API: 50-133-20577-00-00 Date Range: 01/01/2014 - 12/31/2014 Date Tubing IA OA Water Injection 12/31/201 152 215 0 0 12/30/201 203 152 0 0 12/29/201 248 203 0 0 12/28/201 320 248 0 0 12/27/201 415 226 0 0 12/26/201 483 232 0 0 12/25/201 625 236 1 0 12/24/201 1780 245 1 0 12/23/201 1908 272 1 0 12/22/201 1305 689 1 2430 12/21/201 1950 322 1 0 12/20/201 1931 708 1 4757.8 12/19/201 1903 655 1 5010 12/18/201 1862 291 1 3788.3 12/17/201 1788 614 1 4661.6 12/16/201 1788 437 1 2715.5 12/15/201 1792 291 1 1083.4 12/14/201 1833 288 1 798.3 12/13/201 1811 295 0 1406.7 12/12/201 401 276 0 1864.5 12/11/201 444 220 0 0 12/10/201 489 222 1 0 12/9/2014 545 224 1 0 12/8/2014 578 225 1 0 12/7/2014 627 226 1 0 12/6/2014 673 229 1 0 12/5/2014 723 229 1 0 12/4/2014 766 231 1 0 12/3/2014 812 231 1 0 12/2/2014 852 231 0 0 12/1/2014 880 231 1 0 11/30/201 713 230 1 0 11/29/201 809 213 1 0 11/28/201 931 215 1 0 11/27/201 1121 217 1 0 11/26/201 1370 224 0 0 11/25/201 1873 209 0 0 11/24/201 1880 289 0 2018 11/23/201 1880 293 1 1763.9 11/22/201 1887 346 1 2437.9 11/21/201 1867 468 0 2413.4 11/20/201 1842 275 0 1955.7 11/19/201 1870 378 0 3351.6 Date Tubing IA OA Water Injection 11/18/201 1890 381 1 1247.1 11/17/201 1889 136 0 1820.6 11/16/201 1882 285 913.8 11/15/201 1877 286 653.5 11/14/201 1707 238 1429.7 11/13/201 1884 169 0 843.1 11/12/201 1869 215 0 1353 11/11/201 1874 198 0 2366 11/10/201 1840 279 0 1556 11/9/2014 1918 238 0 1023 11/8/2014 1870 289 0 1723 11/7/2014 1844 258 0 2659 11/6/2014 1886 194 0 2092 11/5/2014 1891 311 0 1686 11/4/2014 1893 194 0 2544 11/3/2014 1903 273 1 2723 11/2/2014 1921 260 1 2865 11/1/2014 1874 227 1 2095 10/31/201 1854 205 1 3278 10/30/201 1823 235 0 2607.6 10/29/201 1831 219 0 851 10/28/201 1736 169 1 2035.9 10/27/201 1818 260 2 1098.3 10/26/201 1846 260 2 1301.7 10/25/201 1862 300 2 1199.4 10/24/201 1849 300 2 4572.7 10/23/201 1847 221 0 3773.9 10/22/201 1833 228 2 3543.9 10/21/201 1849 137 1 4542.2 10/20/201 1800 122 1 0 10/19/201 1816 121 0 1035.6 10/18/201 1809 246 0 3819 10/17/201 1790 221 0 1781.3 10/16/201 1795 221 0 2473 10/15/201 1761 166 0 2492 10/14/201 1839 118 0 2686 10/13/201 1793 203 0 3474 10/12/201 1760 134 0 2777 10/11/201 1804 206 0 2296 10/10/201 1758 231 1 2505 10/9/2014 1650 216 0 2282 10/8/2014 0 213 0 2455 10/7/2014 0 210 1 0 10/6/2014 1 210 0 0 10/5/2014 1 210 0 0 10/4/2014 4 212 1 0 10/3/2014 5 212 0 0 10/2/2014 7 245 50 0 10/1/2014 30 212 0 0 9/30/2014 46 213 0 0 9/29/2014 86 221 0 0 Date Tubing IA OA Water Injection 9/28/2014 124 217 1 0 9/27/2014 143 217 1 0 9/26/2014 163 219 0 0 9/25/2014 210 221 0 0 9/24/2014 227 221 0 0 9/23/2014 261 223 0 0 9/22/2014 293 224 0 0 9/21/2014 330 225 0 0 9/20/2014 366 227 0 0 9/19/2014 404 228 0 0 9/18/2014 445 230 0 0 9/17/2014 489 232 1 0 9/16/2014 522 232 0 0 9/15/2014 574 234 1 0 9/14/2014 618 236 1 0 9/13/2014 667 237 1 0 9/12/2014 714 238 1 0 9/11/2014 763 239 1 0 9/10/2014 815 239 0 0 9/9/2014 865 239 0 0 9/8/2014 911 238 1 0 9/7/2014 1871 228 1 0 9/6/2014 1871 237 1 0 9/5/2014 1871 170 1 0 9/4/2014 1871 170 1 0 9/3/2014 1871 170 1 0 9/2/2014 1864 170 1 0 9/1/2014 1830 243 1 3068.3 8/31/2014 1781 243 1 1849.9 8/30/2014 1782 243 1 4726.5 8/29/2014 1784 243 1 2366.1 8/28/2014 1835 243 1 3372.1 8/27/2014 1809.7 243 1 4389.9 8/26/2014 1813.66 243 1 1880.1 8/25/2014 1811.54 243 1 1648.7 8/24/2014 1793 243 1 1571.7 8/23/2014 1781 254 1 2167.6 8/22/2014 1791 254 1 2167.6 8/21/2014 1805 403 1 2095.3 8/20/2014 1817 403 1 2758.5 8/19/2014 1833 385 1 2203 8/18/2014 1790 328 1 1452 8/17/2014 1778 379 1 2528 8/16/2014 1805 495 1 2339 8/15/2014 1790 309 1 1631 8/14/2014 1764 328 1 3110 8/13/2014 1744 482 1 3292 8/12/2014 1749 440 1 1326 8/11/2014 1781 420 1 1871 8/10/2014 1753 400 2 2772 8/9/2014 1755 304 1 2452 Date Tubing IA OA Water Injection 8/8/2014 1772 388 1 2929 8/7/2014 1774 355 1 2815 8/6/2014 1778 316 1 1639 8/5/2014 1778 485 1 1639 8/4/2014 1773 412 1 2232 8/3/2014 1782 431 1 3048 8/2/2014 1810 426 1 3862 8/1/2014 1736 486 1 3511 7/31/2014 1752 438 1 2972.3 7/30/2014 1686 197 0 2319.6 7/29/2014 0 197 0 1990.6 7/28/2014 0 197 0 0 7/27/2014 0 197 0.46 0 7/26/2014 21 191 0.28 0 7/25/2014 47 193 0.5 0 7/24/2014 135 195 0.76 0 7/23/2014 192 197 0.46 0 7/22/2014 256 197 0 0 7/21/2014 319 150 50 0 7/20/2014 377 150 50 0 7/19/2014 438 150 50 0 7/18/2014 466 150 50 0 7/17/2014 470 150 50 0 7/16/2014 251 150 50 0 7/15/2014 431 150 50 0 7/14/2014 1745 150 50 0 7/13/2014 1775 150 50 1376 7/12/2014 1752 150 50 3021 7/11/2014 1735 150 50 2113.4 7/10/2014 1727 252 0.17 1818 7/9/2014 1718 271 0.17 2707.4 7/8/2014 1695 286 0.4 1962.2 7/7/2014 1691 269 0 2367.5 7/6/2014 1681 150 50 2239.2 7/5/2014 1741 150 50 1337.9 7/4/2014 1710 273 0.93 3030 7/3/2014 1710 273 0.93 2743.9 7/2/2014 1711 273 0.93 1179 7/1/2014 1694 360 0.5 2033 6/30/2014 1723 273 0.93 2846 6/29/2014 1740 323 0.81 2273.7 6/28/2014 1687 272.4 0.34 2903 6/27/2014 1710 255 0.11 2904.3 6/26/2014 1666 433 0.93 2738.7 6/25/2014 1641 291 0.52 2145.5 6/24/2014 1651 448 0.81 2133.4 6/23/2014 1668 170 0.3 3032.4 6/22/2014 1564 170 0.3 1645.6 6/21/2014 1634 170 0.3 985.7 6/20/2014 0 170 0.3 3165.3 6/19/2014 0 170 0.3 0 Date Tubing IA OA Water Injection 6/18/2014 0 170 0.3 0 6/17/2014 0 170 0.3 0 6/16/2014 0 170 0.3 0 6/15/2014 1 170 0.3 0 6/14/2014 42 170 0.3 0 6/13/2014 59 170 0.3 0 6/12/2014 143 168 0 0 6/11/2014 207 155 50 0 6/10/2014 427 155 50 0 6/9/2014 507 155 50 0 6/8/2014 619 155 50 0 6/7/2014 874 125 0 0 6/6/2014 1681 125 0 0 6/5/2014 1697 222 0.11 3610.7 6/4/2014 1669 222 0.11 1692 6/3/2014 1709 228.3 0.11 1228 6/2/2014 1665 220 0.3 2326.8 6/1/2014 1682 204 0.64 1153 5/31/2014 1685 175 0.3 1180.1 5/30/2014 1679 193.32 0.64 890.5 5/29/2014 1673 209 0.28 2012.8 5/28/2014 1656 190 0.58 1893.2 5/27/2014 1675 276 0.34 2842.5 5/26/2014 1661 150 0 2385.4 5/25/2014 1620 150 0 3081 5/24/2014 1668 150 0 663 5/23/2014 1645 200 50 3475 5/22/2014 1609 200 50 2795 5/21/2014 1613 200 50 1697 5/20/2014 1629 200 50 1651 5/19/2014 1660 200 50 2105.3 5/18/2014 1620 200 50 2718.3 5/17/2014 1647 439 0.8 862 5/16/2014 1624 222 0.7 1158 5/15/2014 1606 200 0.8 1345 5/14/2014 1605 200 0.5 1591.3 5/13/2014 1611 200 50 2325.1 5/12/2014 1627 200 50 904.2 5/11/2014 1401 200 50 776.9 5/10/2014 0 200 50 1571.8 5/9/2014 2 200 50 0 5/8/2014 37 201 0.2 0 5/7/2014 151 177.06 0.34 0 5/6/2014 204 178.7 0.23 0 5/5/2014 270 75 0.52 0 5/4/2014 319 75 0.52 0 5/3/2014 514 75 0.52 0 5/2/2014 716 75 0.52 0 5/1/2014 913 76.48 0.52 0 4/30/2014 1035 76.48 0.52 0 4/29/2014 1604 76.48 0.52 0 Date Tubing IA OA Water Injection 4/28/2014 1624 76.48 0.52 3209.2 4/27/2014 1618 76.48 0.52 3070.2 4/26/2014 1598 76.48 0.52 1658.5 4/25/2014 1630 76.48 0.52 1579.3 4/24/2014 1594 76.48 0.52 4266.3 4/23/2014 1588 76.48 0.52 1962 4/22/2014 1588 76.48 0.52 0 4/21/2014 1583 76.48 0.52 2423 4/20/2014 1548 42 0.17 1365.7 4/19/2014 1577 93 0.7 1220 4/18/2014 1550 272 0.7 4218 4/17/2014 1554 255 0.7 1098.2 4/16/2014 1563 176 0.2 1345 4/15/2014 1582 179 0.5 2731.7 4/14/2014 1625 254 0.4 1064.4 4/13/2014 1584 174 0.4 1880.3 4/12/2014 1564 252 0.4 975.3 4/11/2014 1602 174 0.4 1830.7 4/10/2014 1613 174 0.4 2430.2 4/9/2014 1588 149 0.6 1229.3 4/8/2014 1550 149 0.6 1160.5 4/7/2014 1510 149 0.6 1503.5 4/6/2014 1589 149 0.6 2298.9 4/5/2014 1586 149 0.6 1487.2 4/4/2014 1589 149 0.6 1398.3 4/3/2014 1473 149 0.6 3061.5 4/2/2014 0.8 149 0.6 1426.3 4/1/2014 13 189 0.52 0 3/31/2014 54 189 0.52 0 3/30/2014 98 189 0.34 0 3/29/2014 139 190 0.58 0 3/28/2014 193 189.25 0.28 0 3/27/2014 232 189.25 0.28 0 3/26/2014 290 189.25 0.28 0 3/25/2014 333 189.25 0.28 0 3/24/2014 480 188.14 0.7 0 3/23/2014 580 186.66 0.28 0 3/22/2014 660 184.1 0.01 0 3/21/2014 771 182.42 0.23 0 3/20/2014 896 159 0.4 0 3/19/2014 1549 159 0.4 0 3/18/2014 1557 166 0.2 2039.9 3/17/2014 1585 68 0.52 2223.4 3/16/2014 1554 241 0.4 2866.2 3/15/2014 1574 195 0.4 2850.4 3/14/2014 1569 205 0.46 2311.2 3/13/2014 1564 184 0.7 1777.6 3/12/2014 1578 146 0.4 2011.5 3/11/2014 0.02 110 50 2429.8 3/10/2014 0.23 110 50 0 3/9/2014 72 191 0.5 0 Date Tubing IA OA Water Injection 3/8/2014 1471 191 0.5 0 3/7/2014 1551 191 0.5 2486 3/6/2014 1551 191 0.5 2929.8 3/5/2014 1532 41 0.5 3073.3 3/4/2014 406 41 0.5 1350 3/3/2014 1551 41 0.5 0 3/2/2014 1516 41 0.5 2042.3 3/1/2014 1496 41 0.5 2489.3 2/28/2014 1504 41 0.5 3014.1 2/27/2014 1527 41 0.5 2537.5 2/26/2014 1540 76 0.7 2821 2/25/2014 1542 37 0.4 3873 2/24/2014 1511 21 0.5 3241 2/23/2014 1519 137 0.5 2230.8 2/22/2014 1496 68 0.34 3600 2/21/2014 0.4 193 0.8 2855 2/20/2014 1.23 193 0.8 0 2/19/2014 1.8 192 0.07 0 2/18/2014 33 192 0.58 0 2/17/2014 71 192 0.17 0 2/16/2014 131 193 0.34 0 2/15/2014 170 194 0.5 0 2/14/2014 211 150 50 0 2/13/2014 273 150 50 0 2/12/2014 322 150 50 0 2/11/2014 403 150 50 0 2/10/2014 1537 150 50 0 2/9/2014 1537 150 50 0 2/8/2014 1537 150 50 0 2/7/2014 1537 150 50 0 2/6/2014 1537 150 50 0 2/5/2014 1518 150 50 1665 2/4/2014 1517 150 50 2525 2/3/2014 1497 150 50 1525 2/2/2014 1493 150 50 1811 2/1/2014 1480 150 50 2111 1/31/2014 1507 150 50 2567 1/30/2014 1509 150 50 1851.1 1/29/2014 1509 150 50 0 1/28/2014 1509 150 50 0 1/27/2014 1509 150 50 0 1/26/2014 1509 150 50 0 1/25/2014 1509 150 50 0 1/24/2014 1509 150 50 0 1/23/2014 1509 150 50 0 1/22/2014 1509 150 50 0 1/21/2014 1501 150 50 2009 1/20/2014 1513 150 50 1586.9 1/19/2014 1483 150 50 1422 1/18/2014 1522 150 50 1278 1/17/2014 1448 150 50 3280 Date Tubing IA OA Water Injection 1/16/2014 1440 150 50 1673.9 1/15/2014 1446 150 50 2032.5 1/14/2014 1470 150 50 2627.9 1/13/2014 1477 150 50 3024.7 1/12/2014 1442 150 50 2530.8 1/11/2014 1469 150 50 1330 1/10/2014 1469 150 50 0 1/9/2014 1469 150 50 0 1/8/2014 1469 150 50 0 1/7/2014 1469 150 50 0 1/6/2014 1469 150 50 0 1/5/2014 1484 150 50 974 1/4/2014 1441 150 50 1623 1/3/2014 1451 190 0 1427 1/2/2014 1457 190 0 1546 1/1/2014 1457 190 0 0 EWSandMaa s 01, � Poisson'sratio O.4 4059.73 0 PC Poisson's rado (psi) KBU 43-07Y -3,765 KBU 13-08 -3,774 KBU 24-07X KBU 33-07 -3,757 KBU 14-08 KU 24-07RD -3,782 KU 11-17 KBU 41-18X -3,817 KU 24-07� -3,770 N KBU 11-17X KBU 31-181 KUH 1 (KU 41-18) -3,819 -3,804 KU 1i-08 -3,874 KU 12-17 -3,916 Hilcorp Alaska i Kenai Gas Field Sterling B subsea depths posted R.dcircI...diu.uf3ez (d.rn.t.rrrr784) em. co -a. —di- a 494• tdi—t.r 0 ase> #s Hilcorp Alaska, LLC RECEIVED 3800 Centerpolnt Drive Suite 1400 JUL 10 2014 Anchorage, AK 99503 Phone:907-777-8388 A0G�i° Fax: arnbe @h11co ��,,// jmardambek@hilcorp.com 7/9/2014 Ms. Cathy P. Foerster, Chair Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501 RE: RULE 6, DIO 34A: KU 12-17 Dear Ms. Foerster: Attached please find the report asked for in RULE 6 of DIO 34A establishing the DIO for the Class II G&I Disposal well KU 12-17 (PTD 208-089) located on Pad 41-18 at the Kenai Gas Field for the I I months Hilcorp Alaska operated the well in 2013. The G&I water injection pumps run at 4.5 BPM no matter if during wellbore fill up, injection, or flush. Injection volumes and annuli pressures are included in Figure 1. Stress Log KU 12-17 disposes of Class II waste in the B-2 sand of the depleted Sterling Gas Reservoir. The Sterling is composed of weakly consolidated sand sized grains with large shale and smaller coal breaks between sand packages. The Sterling B-1 sand is ideal for cuttings injection because of the high porosity, high leak off of pad fluid, low pore pressure from decades of depletion, and bounding layers of softer shale and coals with higher stresses due the nature of the softer rocks. This is shown in Figure 2 where the stress difference in the rocks reflects the differences in the Poissons's ratio, The difference in Poissons's ratio is important when comparing the sands with the coals or the shale. Coals have the highest difference of Poisson's ratio with the difference upwards of 0.15 which at the stress regime translates to a stress difference of greater than 1000 psi. Along with the high leak off of the B-2 sand, this difference in stresses is important in keeping the injections contained in the disposal strata. This difference is shown in the stress log in Figure 2. Fracture orientation in KU 12-17 is expected to be vertical growing until the bounding layers are encountered above and below the injection strata. This has been proven by pervious temperature logs and by open hole log derived rock mechanics properties. The leak off of the B-2 sands is so high very little net pressure can be built at the rates attained by the G&I facility at 41-18 pad. Alaska Oil and Gas Conservation Commission Kenai Gas Field, KDU-10 Commingling Application May 1, 2014 Page 2 of 2 Zone of Influence Cumulative injection volume from 1/1/2009 through 12/31/2013 has been 774,810 bbls of both clean water and G&I slurry with 295,315 from 2/1/2013 through 12/31/2013- Assuming a height of 51' between coal bounding layers, a porosity of 30%, and water saturation of 40%, the expected total area of influence is 7 acres with 4 acres added in 2013. Assuming cylinder geometry the total radius of influence is 311ft with 75ft added between 2/1/2013 and 12/31/2013, The area of influence as of 2/1/2013 and 12/31/2013 is shown in Figure 3. Figure 1 -- Injection and Annuli pressures including daily average, daily max, & daily minimum and fluid volumes. Figure 2 — Expected stress log of Sterling B sands and bounding layers Figure 3 Calculated zone of influence of the injected fluids Rule 6 of DIO 34A calls for a description of any anomalous injection results but for the year 2013 there were no anomalous results. Sincerely, J /emoyoMardainbek Reservoir Engineer (907) 777-8388 P.500 500 Figure 1 - Average, in, max pressure & KEU KU 012-17 (50.0669.00411 02/2013 0312013 04/2013 05/2013 06/2013 07/2013 08/2013 09/2013 10/2013 — Tubing — 7 5/8 — 10 3/4 — Water Injection Well: KU 12-17 Desc: Disposal Permit to drill: 2080890 Admin Approval: DIO #34A API: 50-133-20577-00-00 Date Range: 01/01/2013 - 12/31/2013 Daily Average Values Daily Max Values Di Date Tubing 7 5/8 10 3/4 Water Injection Date Tubing 7 5/8 10 3/4 Tubing (psi) (psi) (psi) (bbls) (psi) (psi) (psi) (psi) 12/31/2013 1457 190 0 012/31/2013 132.0746 132.0746 1.344482 2.110107 12/30/2013 1457 190 0 012/30/2013 143.381 143.381 1.109009 L171.8236 12/29/2013 1394 190 01 1061.2 12/29/2013 224.2923 224.2923 4.818848 409.6699 12/28/2013 1397 190 0 818.912/28/2013 205.5072 205.5072 1.285645 89.49902 12/27/2013 1384 190 0 1074.612/27/2013 107.0475 107.0475 0.814575 49.92664 12/26/2013 1366 190 0 697.412/26/2013 114.1729 114.1729 0.873413 123.8893 12/25/2013 1451 190 0 714.812/25/2013 136.079 136.079 1.050049 5.054443 12/24/2013 1436 190 0 832.912/24/2013 147.6798 147.6798 0.873413 377.6351 12/23/2013 1455 190 0 748.912/23/2013 144.3821 144.3821 1.050049 337.2972 12/22/2013 1450 190 0 1076.112/22/2013 206.6849 206.6849 1.403442 317.5699 12/21/2013 1442 190 0 1386.512/21/2013 121.0626 121.0626 1.226807 386.4682 12/20/2013 1081 190 0 1466.912/2012013 116.4694 116.4694 1.46228 62.5874 12/19/2013 12/18/2013 1394 1379 190 190 0 0 2024.912/19/2013 1728.1 12/18/2013 78.19263 149.2697 78.19263 149.2697 1,285645 1.109009 210.866 389.3537 12/17/2013 1475 190 0 1058 12/17/2013 207.2149 207.2149 1.109009 0 12/16/2013 1475 190 0 0 12/15/2013 176.1813 176.1813 0.991211 0 12/15/2013 12/14/2013 12/13/2013 1475 1475 1475 190 190 190 0 0 0 0 012/14/2013 012/13/2013 12/15/2013 179.0079 180.8334 181.7167 179.0079 180.8334 181.7167 1.697876 1.697876 1.52124 0637817 69.41833 177.0057 12/12/2013 1475 190 0 012/12/2013 181.7756 181.7756 1.403442 295.7816 12/11/2013 1475 190 0 012/11/2013 179.7145 179.7145 1.46228 422.154 12/10/2013 12/9/2013 12/8/2013 12/7/2013 12/6/2013 12/5/2013 1475 1466 1443 1488 1443 1455 175 175 175 175 175 175 0 60 60 60 60 60 0 1150.812/9/2013 102612/8/2013 129712/7/2013 134112/6/2013 1495.9 12/10/2013 12/5/2013 173.708 183.6011 246.7873 258.5059 276.4666 178.8312 173.708 183.6011 246.7873 258.5059 276.4666 178.8312 1.697876 .1.109009 0.991211 1.344482 4.877808 0.932251 619.4268 623.7256 587.5098 672.8966 623.6078 612.$903 12/4/2013 1433 175 60 1949.712/4/2013 215.6947 215.6947 1.226807 14.65308 12/3/2013 1421 175 60 1127.112/3/2013 201.0906 201.0906 4.053345 11.82654 12/2/2013 1469 175 60 1550.312/2/2013 197.4396 197.4396 0.814575 0.04895 12/1/2013 1469 1.75 60 011/30/2013 151.5074 151.5074 0.637817 0 11/30/2013 1469 175 601 011/29/2013 153.6273 153.6273 0.578979 10.520142 11/29/2013 1469 175 60 011/28/2013 156.3951 156.3951 0.814575 13.228882 11/28/2013 1469 175 60 011/27/2013 159.1039 159.1039 1.46228 103.3964 11/27/2013 1469 175 60 011/27/2013 159.1039 159.1039 1.52124 297.3127 11/26/2013 1469 175 60 011/26/2013 155.6296 155.6296 1.580078 564.5439 11/25/2013 1447 175 60 1310 11/25/2013 179.7145 179.7145 1.815674 550.2341 11/24/2013 1449 175 60 997.911/24/2013 208.8638 208.8638 1.93335 575.7913 11/23/2013 0 175 60 1256.111/23/2013 327.9341 327.9341 1.815674 6.997681 11/22/2013 1447 175 60 0 11/22/2013 110.4629 110.4629 1.638916 130.308 11/21/2013 1451 175 60 1432.711/21/2013 129.3069 129.3069 1.167847 302.3181 11/20/2013 1438 175 60 2622.311/20/2013 374.9263 374.9263 1.638916 428.2194 11/19/2013 1432 175 60 1677.611/19/2013 124.6548 124.6548 1,285645 345.4825 11/18/2013 1435 175 601 1706.511/18/2013 170.587 170.587 1.050049 322.5165 11/17/2013 1418 175 60 1148 11/17/2013 128.188 128.188 1.226807 212.1026 11/16/2013 1412 175 60 103311/16/2013 127.0103 127.0103 3.34668 113.4072 11/15/2013 1474 175 60 1492.511/15/2013 212.0437 212.0437 1.226807 1.93335 11/14/2013 1440 175 60 0 11/14/2013 147.9153 147.9153 1.403442 239.8975 11/13/2013 1489 175 60 1550.611/13/2013 184.5433 184.5433 1.93335 600.9362 11/12/2013 1422 175 60 1589.611/12/2013 177.8301 177.8301 1.050049 573.2002 11/11/2013 93 175 60 1516.611/11/2013 Null Null Null Null 11/10/2013 93 175 60 011/11/2013 226.9422 226.9422 1.344482 0 11/9/2013 93 175 601 0 11/10/2013 137.9634 137.9634 1.344482 0 11/8/2013 93 175 60 0 11/9/2013 137.2567 137.2567 1.46228 10 11/7/2013 1475 175 60 011/8/2013 136.3734 136.3734 1.344482 0 11/6/2013 1475 175 60 011/7/2013 133.429 133.429 1.46228 56.1687 11/5/2013 1475 175 60 0 11/6/2013 126.2448 126.2448 1.109009 183.8955 11/4/2013 1457 175 60 2140.911/5/2013 114.585 114.585 1.46228 401.5434 11/3/2013 1445 175 60 1062.811/4/2013 123.8893 123.8893 1.580078 717.4155 11/2/2013 1473 175 60 1649.611/3/2013 164.1093 164.1093 1.226807 289.3629 11/1/2013 1497 175 60 1889.511/2/2013 147.9742 147.9742 1.344482 388.7648 10/31/2013 1454 175 60 2726.911/1/2013 151.7429 151.7429 1.109009 320.2787 10/30/2013 1445 175 60 1610.110/31/2013 161.8716 161.8716 1.580078 1504.9497 10/29/2013 1478 175 60 2182.410/30/2013 165.9349 165.9349 0.873413 162.8138 10/28/2013 1479 175 60 4310.110/29/2013 155.0406 155.0406 1.050049 303.6725 10/27/2013 14741 175 601 1 2609 10/28/2013 1158.4561 158.4561 1.52124 814.1086 10/26/2013 1473 175 60 1648.310/27/2013 158.9272 158.9272 1.638916 961.2094 10/25/2013 1480 175 60 1895.0310/26/2013 248.0239 248.0239 1.226807 708.22.9 10/24/2013 1484 175 60 1383.810/25/2013 140,3777 140.3777 2,81665 846.7911 10/23/2013 1491 175 60 2237.210/24/2013 116.705 116.705 1.697876 777.3629 10/22/2013 1488 175 601 2661.5 10/23/2013 137.6689 137.6689 1.344482 665.4768 10/21/2013 1486 175 60 2940.510/22/2013 219.2869 219.2869 1.580078 568.607 10/20/2013 1490 175 60 2369.310/21/2013 168.3492 168.3492 1.403442 609.7693 10/19/2013 1476 175 60 2069.310/20/2013 273.1688 273.1688 1.46228 529.5646 10/18/2013 1491 175 60 2047.4 10/19/2013 292.3073 292.3073 1,638916 582.2689 10/17/2013 1476 175 60 2392.3 10/18/2013 304.1436 304.1436 1.285645 627.1411 10/16/2013 1529 175 60 2038.510/17/2013 212.2203 212.2203 1.109009 454.7188 10/15/2013 1479 175 60 1591.710/16/2013 356.5534 356.5534 0.932251 479.8636 10/14/2013 1451 175 60 397010/15/2013 209.9826 209,9826 0.991211 532.509 10/13/2013 1443 175 60 2120.210/13/2013 239.3086 239.3086 0.991211 914.3939 10/12/2013 1475 175 60 1613.210/13/2013 290.8939 290,8939 0.578979 639.3896 10/11/2013 1465 175 60 2626.110/12/2013 292.425 292.425 0.873413 704.5192. 10/10/2013 1451 175 60 1722.710/11/2013 220.4646 220.4646 1.109009 746.2703 10/9/2013 1496 175 60 2412.110/10/2013 197.9696 197.9696 1.46228 1674.8988 10/8/2013 1488 175 60 2030.510/9/2013 154.8052 154.8052 1.226807 716.1788 10/7/2013 1477 175 60 926.510/8/2013 237.7186 237.7186 2.051147 661,5313 10/6/2013 1636 175 60 1000.410/7/2013 179.6556 179.6556 1.580078 790.6125 10/5/2013 1699 175 60 1794.410/6/2013 145.0887 145.0887 1.285645 561.835 10/4/2013 1546 175 60 1421.210/5/2013 163.8738 163.8738 1.403442 12.53308 10/3/2013 1540 175 60 1277.210/4/2013 194.083 194.083 1.697876 616.4825 10/2/2013 1588 175 60 1269.710/3/2013 231.7121 231.7121 1.815674 622.6068 10/1/2013 1446 175 60 1339.410/2/2013 243.5485 243.5485 1.697876 691.9172 9/30/2013 1446 175 60 010/1/2013 237.483 237.483 1.52124 503.0064 9/29/2013 1439 175 60 1725.8 9/30/2013 145.5009 145.5009 1.697876 609.0038 9/28/2013 1470 175 60 1907.7 9/29/2013 204.6827 204.6827 1.697876 378.224 9/27/2013 1534 175 60 2113.5 9/28/2013 219.9346 219.9346 1.697876 399.0112 9/26/2013 1447 175 60 2973.19/27/2013 191.1976 191.1976 1.815674 479.9814 9/25/2013 1515 175 60 1690 9/26/2013 222.9379 222.9379 1.52124 765.9976 9/24/2013 1406 175 60 1620.5 9/25/2013 154.334 154.334 1.580078 856.0953 9/23/2013 1477 175 60 1135 9/24/2013 202.8572 202.8572 1.344482 558.0073 9/22/2013 1465 175 60 1110.6 9/23/2013 175.5335 175.5335 1.697876 443,4713 9/21/2013 1504 175 60 1096 9/22/2013 184.5433 184.5433 1.874512 540.0466 9/20/2013 1530 175 60 1370.3 9/21/2013 190.3731 190.3731 1.93335 566.6637 9/19/2013 1468 175 60 1933.2 9/20/2013 182.0111 182.0111 1.93335 593.6342 9/18/2013 1 0 1751 601 1269.8 9/19/2013 318.4532 318.4532 1.99231 588.8643 9/17/2013 1412 245 60 0 9/18/2013 358.0845 358.0845 1.99231 610.0048 9/16/2013 1476.11 245 60 1375 9/17/2013 240.6041 240.6041 1.874512 597.9918 9/15/2013 1448 245 60 1701.5 9/16/2013 261.5091 261.5091 1.874512 316.2155 9/14/2013 1451 245 60 972.6 9/15/2013 301.0815 301.0815 1.580078 571.4336 9/13/2013 1451 245 60 1787.5 9/14/2013 315.6266 315.6266 1.756714 677.902 9/12/2013 1434 245 60 1260.3 9/13/2013 234.362 234.362 1.815674 660.0591 9/11/2013 1434 245 60 1554.2 9/12/2013 256.9748 256.9748 1.756714 507.5996 9/10/2013 1405.51 245 60 1784.2 9/11/2013 266.0435 266.0435 1.815674 609.23.93 9/9/2013 1409.93 245 60 1884.5 9/10/2013 324.4598 324.4598 1.697876 707.5813 9/8/2013 1561 245 60 2080.6 9/9/2013 311.6223 311.6223 1.756714 718.6521 9/7/2013 1580 245 60 1913.7 9/8/2013 385.2905 385.2905 1.756714 857.4498 9/6/2013 1513.75 245 60 2133 9/7/2013 268.5167 '268.5167 2.168945 869.4628 9/5/2013 1501 245 601 2443.6 9/6/2013 273.1099 273.1099 2.286743 863.9863 9/4/2013 1448 245 60 1474.9 9/5/2013 239.5441 239.5441 1.815674 794.3224 9/3/2013 1403 245 60 945.9 9/4/2013 273.4633 273.4633 2.110107 668.5978 9/2/2013 1443 245 60 1722.19/3/2013 251.4983 251.4983 2.110107 422.7429 9/1/2013 1443 245 60 0 9/2/2013 271.52 271.52 1.93335 55.4032 8/31/2013 1501 245 60 698.8 9/1/2013 203.3873 203.3873 1.638916 546.5242 8/30/2013 1435 245 60 852.2 8/31/2013 236.0698 236.0698 1.756714 623,3723 8/29/2013 1435 245 60 0 8/30/2013 273.5222 273.5222 1.697876 605.235 8/28/2013 1415 245 60 1162.7 8/29/2013 232.4188 232.4188 1.756714 647.8105 8/27/2013 1516 245 60 602.3 8/28/2013 244.314 244.314 1.99231 500.1798 8/26/2013 1417 245 60 0 8/27/2013 403.6044 403.6044 1.874512 428.6316 8/25/2013 1404 245 60 933.2 8/26/2013 240.133 240.133 1.93335 521.3204 8/24/2013 1409 245 60 1469.7 8/25/2013 250.7916 250.7916 1.874512 574.9669 8/23/2013 1409 245 60 0 8/24/2013 287.8907 287.8907 1.93335 284.9463 8/22/2013 1351 245 60 1373.18/23/2013 215.577 215.577 0 523.087 8/21/2013 712 245 60 2369.18/22/2013 258.2114 258.2114 0 714.8245 8/20/2013 1444 245 60 0 8/21/2013 331.1729 331.1729 1.93335 630.2621 8/19/2013 1442 245 60 976.3 8/20/2013 236.0698 236.0698 1.52124 733.0206 8/18/2013 420 245 60 1186.4 8/19/2013 267.5156 267.5156 1.697876 549.233 8/17/2013 1432 245 50 0 8/18/2013 389.5303 389.5303 1.93335 347.1314 8/16/2013 475 245 50 1565.4 8/17/2013 217.5791 217.5791 1.697876 437.1703 8/15/2013 1562 245 50 0 8/16/2013 370.6275 370.6275 1.99231 168.2903 8/14/2013 1428 245 50 2036.7 8/15/2013 239.3674 239.3674 1.46228 471.5016 8/13/2013 1428 245 50 0 8/14/2013 421.3884 421.3884 1.638916 70.06616 8/12/2013 182 245 50 1607.9 8/13/2013 222.4667 222.4667 1.285645 1311.6223 8/11/2013 1821 245 50 0 8/12/2013 583.2111 583.2111 0 11.226807 11.580078 8/10/2013 14101 245 50 0 8/11/2013 208.6282 208.6282 119.953 8/9/2013 1410 245 50 853 8/10/2013 205.6838 205.6838 1.697876 67.2395 8/8/2013 1550 245 50 853.18/9/2013 303.7314 303.7314 1.874512 107.754 8/7/2013 1458 245 50 1381.8 8/8/2013 291.0117 291.0117 1.756714 420.5051 8/6/2013 1464 245 50 1395.9 8/7/2013 437.877 437.877 1.99231 13.76978 8/5/2013 415 245 50 1191.8 8/6/2013 472.2672 472.2672 2.168945 327.2864 8/4/2013 1479 245 50 0 8/5/2013 462.9041 462.9041 2.227783 308.5013 8/3/2013 38 245 50 1784.2 8/4/2013 238.4252 239.4252 1.756714 468.1451 8/2/2013 313 245 50 0 8/3/2013 435.6981 435.6981 2.404541 5.290039 8/1/2013 1428 245 50 0 8/1/2013 230,9465 230.9465 1.52124 67.2395 7/31/2013 202 245 50 1877.3 8/l/2013 233.7731 233.7731 1.697876 364.5032 7/30/2013 1483 245 50 0 7/31/2013 405.1355 405.1355 1.815674 13.88757 7/29/2013 563 245 50 898.5 7/30/2013 232.772 232.772 1.580078 281.5897 7/28/2013 1439 245 50 0 7/29/2013 406.0189 1406.0189 1.874512 368.7431 7/27/2013 29 245 50 1151.2 7/28/2013 350,9591 350.9591 1.638916 404.5466 7/26/2013 1458 245 50 0 7/27/2013 364.3854 364.3854 1.580078 6.762207 7/25/2013 1440 245 50 841.8 7/26/2013 237.1886 237.1886 1.580078 88,26233 7/24/2013 1443 245 50 772.17/25/2013 432.8715 432.8715 2.110107 13.876709 7/23/2013 1358 245 50 1090.9 7/24/2013 289.0684 289.0684 1.99231 0.10791 7/22/2013 91 245 50 1452.8 7/23/2013 366.5054 366.5054 1.99231 271.6967 7/21/2013 1379 345 50 0 7/22/2013 368.4487 368.4487 1.874512 15.47754 7/20/2013 1345 345 50 1363.5 7/21/2013 228.5322 228.5322 1.93335 95,85876 7/19/2013 264 345 50 1057.5 7/20/2013 417.6196 417.6196 2.110107 287.4196 7/18/2013 1338 345 50 0 7/19/2013 417.5608 417.5608 2.110107 28.02051 7/17/2013 1322 345 50 934.6 7/18/2013 214,9292 214.9292 2.051147 324.1064 7/16/2013 1329 345 50 2725.17/17/2013 372.3352 372.3352 1.99231 609.946 7/15/2013 1351 345 50 1213.3 7/16/2013 348.7214 348.7214 558.8317 883.7725 7/14/2013 2 345 50 612.8 7/15/2013 476.8015 476.8015 3109.187 369.5087 7/13/2013 355 345 50 0 7/14/2013 436.3458 436.3458 193.1997 0 7/12/2013 885 345 50 0 7/12/2013 345.0704 345.0704 263.6879 13.71094 7/11/2013 650 345 50 824.2 7/12/2013 352.0191 352.0191 211.1015 412.8498 7/10/2013 650 345 50 0 7/11/2013 569.667 569.667 139.0233 182.25586 7/9/2013 650 345 50 973.7 7/10/2013 475.3293 475.3293 56.52197 0.343384 7/8/2013 650 345 50 0 7/8/2013 317.0988 317.0988 24.6051 0.578979 7/7/2013 650 345 50 0 7/7/2013 319.9254 319.9254 14.77087 0.637817 7/6/2013 650 345 50 0 7/7/2013 323.1642 323.1642 2.168945 7.351074 7/5/2013 650 345 50 866.17/6/2013 324.0475 324.0475 2.110107 210.2182 7/4/2013 650 345 50 703.2 7/5/2013 397.009 397.009 1.638916 467.4384 7/3/20 1 650 345 50 0 7/4/2013 1499.9443 1 499.9443 1.815674 0.225708 7/2/20131 6501 345 50 0 7/3/2013 1304.968 304.968 1.697876 0 7/1/2013 650 345 50 0 7/2/2013 304.0847 304.0847 27.3728 0 6/30/2013 650 345 50 0 7/1/2013 302.6125 302.6125 1.99231 0 6/29/2013 650 345 50 0 6/30/2013 301.317 301.317 5.172241 0.284546 6/28/2013 650 345 50 0 6/29/2013 299.8448 299.8448 1.99231 0 6/27/2013 650 345 50 0 6/28/2013 297.1949 297.1949 1.285645 0.402344 6/26/2013 630 345 50 711.7 6/27/2013 294.2505 294.2505 5.054443 10.932251 6/25/2013 554 345 50 1723.6 6/26/2013 303.7314 303.7314 2.345581 69.83057 6/24/2013 554 350 50 0 6/25/2013 358.0256 358.0256 2.168945 25.78284 6/23/2013 1382 350 50 1283.6 6/24/2013 291.1884 291.1884 1.638916 86.37793 6/22/2013 193 350 50 1498.8 6/23/2013 469.0873 469.0873 2.051147 199.1473 6/21/2013 405 350 50 0 6/22/2013 362.3832 362.3832 1.93335 71.47949 6/20/2013 405 350 50 1573.16/21/2013 280.3531 280.3531 1.697876 218.2858 6/19/2013 101 350 50 477.2 6/20/2013 363.0899 363.0899 1.756714 184.4844 6/18/2013 557 350 50 0 6/19/2013 481.6302 481,6302 2.168945 7.468872 6/17/2013 706 350 50 718.5 6/18/2013 302.377 302.377 1.93335 161.2239 6/16/2013 630 350 50 904 6/17/2013 546.8775 546,8775 2.110107 456.2498 6/15/2013 749 350 50 710 6/16/2013 500.592 500.592 2.110107 365.6221 6/14/2013 730 350 50 412.6 6/15/2013 516.2561 516.2561 1.815674 478.7448 6/13/2013 0 350 50 379.6 6/14/2013 347.4258 347.4258 1.344482 518.0816 6/12/2013 0 350 501 325.5 6/13/2013 355.4934 355.4934 1.638916 535.0411 6/11/2013 0 350 501 482 6/12/2013 368.272 1368.272 1.756714 479.3926 6/10/2013 0 350 501 1026.9 6/11/2013 494.1144 494.1144 2.345581 492.76 6/9/2013 0 350 501 0 6/10/2013 495.9988 495.9988 1.99231 15.06531 6/8/2013 0 350 50 0 6/9/2013 322.6931 322.6931 1.52124 254.7371 6/7/2013 0 350 50 941.7 6/8/2013 501.1809 501.1809 1.756714 1180.3034 6/6/2013 0 350 50 0 6/7/2013 559.1261 559.1261 2.404541 2.463379 6/5/2013 0 350 50 767.8 6/6/2013 305.2625 305.2625 1.52124 21.60181 6/4/2013 0 350 50 0 6/5/2013 498.2954 498.2954 1.580078 0.225708 6/3/2013 0 350 50 443.7 6/4/2013 292.0717 292.0717 1.52124 0.991211 6/2/2013 0 350 50 429.16/3/2013 508.8951 508.8951 1.697876 2.934448 6/1/2013 759 300 501 0 6/2/2013 402.6622 402.6622 1.99231 1.050049 5/31/2013 780 300 50 0 6/1/2013 290.6584 290.6584 1.285645 1.52124 5/30/2013 1373 300 50 594.15/31/2013 285.5352 285.5352 1.403442 2.81665 5/29/2013 1 300 50 1183.5 5/30/2013 657.1736 657.1736 1.874512 0 5/28/2013 1 300 50 0 5/29/2013 411.5543 411.5543 2.051147 0.402344 5/27/2013 1 350 50 0 5/28/2013 338.2983 338.2983 1.874512 Null 5/26/2013 1386 350 50 0 5/28/2013 Null Null Null 0.578979 5/25/2013 155 350 50 737.8 5/27/2013 260.9202 260.9202 1.52124 0.04895 5/24/2013 225 3501 50 846 5/26/2013 245.2562 1245.2562 11.403442 10.578979 5/23/2013 93 350 50 707.6 5/25/2013 376.9285 376,9285 1.52124 5.878906 5/22/2013 152 350 50 919.7 5/24/2013 331.4673 331.4673 1.403442 11.47314 5/21/2013 293 350 50 1448.3 5/23/2013 Null Null Null 19.36401 5/20/2013 145 350 50 722.4 5/23/2013 359,8511 359.8511 1.403442 Null 5/19/2013 271 350 501 668.6 5/22/2013 360.4988 360.4988 1.403442 35.08704 5/18/2013 227 350 501 0 5/21/2013 447.4756 447.4756 1.638916 130.0135 5/17/2013 227 150 50 797.7 5/20/2013 396.6558 396.6558 1.403442 6.408813 5/16/2013 227 150 50 0 5/19/2013 345.0115 345.0115 1.697876 7.115479 5/15/2013 227 150 50 823 5/18/2013 267.6334 267.6334 1.756714 15.12415 5/14/2013 227 150 50 665.8 5/17/2013 343.657 343.657 1.815674 5.584473 5/13/2013 227 150 50 1372.4 5/16/2013 270.9311 270.9311 1.697876 20.60071 5/12/2013 227 150 50 0 5/15/2013 384.8782 384.8782 1.874512 190.962 5/11/2013 227 150 50 611.5 5/14/2013 334.1762 334.1762 1.697876 1.348.368 5/10/2013 227 150 50 0 5/13/2013 368.3309 368.3309 2.168945 1.638916 5/9/2013 227 150 50 613.4 5/12/2013 283.7686 283.7686 1.697876 2.87561 5/8/2013 143 150 50 671.4 5/11/2013 428.1016 428.1016 1.638916 6.408813 5/7/2013 143 150 50 0 5/10/2013 275.6421 275,6421 1.344482 64.88403 5/6/2013 143 150 50 1051.5 5/9/2013 362.4421 362.4421 1.580078 53.6366 5/5/2013 143 150 50 1039.7 5/8/2013 329.5241 329.5241 1.52124 3.170044 5/4/2013 143 150 50 756.2 5/7/2013 255.5026 255.5026 1.285645 41.68237 5/3/2013 143 150 50 502.8 5/6/2013 290,1873 290,1873 1.638916 162.4016 5/2/2013 143 150 501 812.3 5/5/2013 310.7979 310.7979 1,52124 133.7823 5/1/2013 0 150 501 636.9 5/4/2013 400.8956 400.8956 2.110107 64.29517 4/30/2013 0 150 501 643.7 5/3/2013 335.825 335.825 1.46228 0.225708 4/29/2013 0 150 50 970.8 5/2/2013 401.3668 401.3668 1.52124 0 4/28/2013 0 150 50 0 5/1/2013 1965.181 1965.181 1.815674 0 4/27/2013 0 200 50 0 4/30/2013 239.8386 239.8386 1.697876 0.04895 4/26/2013 0 200 50 678.8 4/29/2013 313.33 313.33 4.818848 0 4/25/2013 0 200 50 0 4/29/2013 179.8912 179.8912 1.344482 0 4/24/2013 0 200 50 866.6 4/28/2013 166.1704 166.1704 1.403442 0.166748 4/23/2013 0 200 50 0 4/26/2013 273.9932 273.9932 1.697876 0.225708 4/22/2013 0 200 50 0 4/26/2013 144.3231 144.3231 1.756714 0 4/21/2013 0 200 50 1255.5 4/24/2013 273.1099 273.1099 1.93335 0.520142 4/20/2013 0 200 50 1840.9 4/24/2013 183.7189 183.7189 1.226807 0.520142 4/19/2013 0 200 50 0 4/23/2013 162.4605 162.4605 1.167847 0.991211 4/18/2013 0 200 50 0 4/21/2013 215.6358 215.6358 1.580078 2,81665 4/17/2013 0 200 50 766.4 4/20/2013 260.4492 260.4492 1.226807 10.04895 4/16/2013 0 200 50 741.14/20/2013 179.5378 179.5378 1.226807 0.10791 4/15/2013 0 200 501 981.14/19/2013 161.165 1161.165 1.403442 10.873413 4/14/2013 0 200 50 14q58 4/17/2013 285.7708 285.7708 1.697876 5.643311 4/13/2013 0 200 50 144/16/2013 202.1506 202.1506 1.638916 0 4/12/2013 0 200 50 54/15/2013 249.7905 249.7905 1.756714 1.050049 4/11/2013 0 200 50 4/14/2013 164.8749 164.8749 1.403442 0 4/10/2013 0 200 50 504.14/13/2-013 225.1167 225.1167 1.580078 1.93335 4/9/2013 0 200 50 1161.9 4/12/2013 241.5463 241.5463 1.46228 0 4/8/2013 0 200 50 0 4/12/2013 165.6993 165.6993 1.52124 0.10791 4/7/2013 0 200 50 493.8 4/10/2013 219,1691 219.1691 1.874512 0.402344 4/6/2013 0 200 50 542.14/9/2013 230.5344 230.5344 1.93335 0.284546 4/5/2013 0 200 50 729.4 4/9/2013 145.8542 145.8542 1.93335 0 4/4/2013 0 200 50 520.9 4/7/2013 203.9761 203.9761 1.403442 0.814575 4/3/2013 0 200 50 1018.9 4/6/2013 209.4526 209,4526 2.110107 0.873413 4/2/2013 0 200 50 1037 4/5/2013 210.6304 210.6304 1,52124 0.637817 4/1/2013 0 200 50 576.9 4/4/2013 213.1036 213.1036 1.403442 1.226807 3/31/2013 0 200 50 561.3 4/3/2013 217.1669 217.1669 1.344482 0.10791 3/30/2013 0 170 1 0 4/2/2013 238.7197 238.7197 4.28894 0.343384 3/29/2013 0 170 1 1179.6 4/l/2013 317.4521 317.4521 1.580078 0.402344 3/28/2013 0 170 1 0 3/31/2013 314.1545 314.1545 1.46228 10 3/27/2013 0 170 1 849.8 3/31/2013 179,3612 179.3612 1.638916 0 3/26/2013 0 170 1 0 3/29/2013 234.1265 234.1265 1.46228 1.285645 3/25/2013 0 170 1 0 3/29/2013 165.6993 165.6993 1.344482 3.817749 3/24/2013 0 170 1 1569.6 3/27/2.013 253.6771 253.6771 1.815674 0 3/23/2013 0 170 1 254.8 3/26/2013 189.6665 189.6665 1.52124 10 3/22/2013 0 170 1 622.13/25/2013 178.7723 178.7723 1.52124 0 3/21/2013 0 170 1 0 3/24/2013 220.9357 220.9357 1.52124 0 3/20/2013 0 170 1 651.3 3/23/2013 231.9476 231.9476 1.815674 0 3/19/2013 0 170 1 1176.2 3/22/2013 245.5507 245.5507 1.344482 0.520142 3/18/2013 0 170 1 0 3/21/2013 169.2325 169.2325 1.697876 0 3/17/2013 0 170 1 834.8 3/20/2013 243.4896 243.4896 1.815674 1.344482 3/16/2013 0 170 1 0 3/19/2013 250.6738 250.6738 1.52124 0.284546 3/15/2013 0 170 1 868.4 3/19/2013 186.7221 186.7221 1.403442 0.520142 3/14/2013 0 170 1 691 3/17/2013 251.6749 251.6749 1.638916 0 3/13/2013 31 0 3/17/2013 182.0111 182.0111 1.403442 0.343384 3/12/2013 1 648 3/15/2013 227.06 227.06 1.403442 0.520142 3/11/2013 1 833.5 3/14/2013 249.3194 249.3194 1.344482 0.343384 3/10/2013 1 0 3/14/2013 187.4288 187.4288 1.52124 0.578979 3/9/2013 1 0 3/12/2013 228.9444 228.9444 1.52124 0 3/8/2013 1 1566.6 3/11/2013 255.7971 255.7971 11.638916 0 3/7/2013 525 0 3/10/2013 206.2139 206.2139 12.286743 0 3/6/2013 0 621.3 3/9/2013 196.0263 196.0263 1.403442 0 3/5/2013 0 0 3/8/2013 284.8286 284.8286 2.051147 0 3/4/2013 0 798.9 3/7/2013 221.819 221.819 1.46228 1.050049 3/3/2013 0 0 3/6/2013 243.4896 243.4896 1.403442 0 3/2/2013 0 0 3/5/2013 210.1593 210.1593 1.226807 0 3/1/2013 0 1040.13/4/2013 250.5561 250.5561 1.344482 10 2/28/2013 0 0 3/3/2013 215.1647 215.1647 1.285645 10 2/27/2013 0 0 3/2/2013 214.3992 214.3992 1.285645 10.520142 2/26/2013 0 823.13/1/2013 310,739 310.739 1.638916 0 2/25/2013 0 0 2/28/2013 211.337 211.337 1.638916 0.10791 2/24/2013 0 0 2/27/2013 205.0361 205,0361 1.697876 0.10791 2/23/2013 0 0 2/26/2013 326.1675 326,1675 2.168945 0.10791 2/22/2013 0 1354.7 2/25/2013 210.6304 210.6304 1.46228 0 2/21/2013 0 0 2/24/2013 204.6827 204.6827 2.051147 10 2/20/2013 0 736.8 2/24/2013 Null Null Null Null 2/19/2013 0 0 2/23/2013 202.6806 202.6806 1.697876 1.050049 2/18/2013 0 669.5 2/22/2013 250.3205 250.3205 1.697876 0.10791 2/17/2013 0 0 2/21/2013 207.0383 207,0383 1.874512 0.873413 2/16/2013 0 0 2/20/2013 294.3683 294.3683 1.874512 0 2/15/2013 0 0 2/19/2013 211.867 211.867 1.99231 0 2/14/2013 0 689.7 2/18/2013 338.7694 338.7694 1.697876 0 2/13/2013 0 0 2/17/2013 Null Null Null Null 2/12/2013 0 693.4 2/17/2013 214.1047 214.1047 1.52124 0 2/11/2013 0 0 2/16/2013 210.3359 210.3359 1.344482 0 2/10/2013 0 925.8 2/15/2013 252.2049 252.2049 1.52124 0 2/9/2013 0 0 2/13/2013 228.1788 228.1788 1.697876 0.10791 2/8/2013 0 0 2/13/2013 500.2976 500.2976 1.638916 0 2/7/2013 0 808.8 2/12/2013 210.6304 210.6304 1.756714 0 2/6/2013 0 0 2/11/2013 271.6378 271.6378 5.937744 0 2/5/2013 0 0 2/10/2013 217.0491 217.0491 2,227783 0 2/4/2013 0 0 2/9/2013 215.1058 215.1058 2.522217 0 2/3/2013 0 756.8 2/8/2013 276.3488 276.3488 1.52124 0 2/2/2013 0 0 2/7/2013 214.6936 214.6936 1.697876 0 2/1/2013 0 0 2/6/2013 209.9826 209.9826 1.46228 0 1/30/2013 0 0 2/5/2013 203.3873 203.3873 1.52124 0 1/29/2013 0 0 2/4/2013 287.0663 287.0663 1.46228 0 1/28/2013 0 0 2/3/2013 211.337 211.337 1.638916 0.04895 1/27/2013 0 0 2/2/2013 206.3905 206.3905 1.46228 0 1/26/2013 01 0 2/1/2013 200.0306 200.0306 11.344482 10 1/25/2013 0 01/31/2013 360.2044 360.2044 1.285645 0.10791 1/24/2013 0 01/30/2013 182.8944 182.8944 1.285645 0,461182 1/23/2013 0 01/29/2013 220.8179 220.8179 1.52124 0 1/22/2013 0 01/28/2013 196.1441 196.1441 1,46228 0 1/21/2013 0 0 1/27/2013 185.8388 185.8388 1.403442 0 1/20/2013 0 01/26/2013 171.1169 171.1169 1.403442 0.343384 1/19/2013 0 01/25/2013 223.2323 223.2323 1.756714 0 1/18/2013 0 01/24/2013 192.4342 192.4342 1,344482 0.04895 1/17/2013 0 01/23/2013 179.5967 179.5967 1.580078 0 1/16/2013 0 01/22/2013 159.8105 159.8105 1,46228 0 1/15/2013 0 01/21/2013 247.1995 247.1995 1.46228 0 1/14/2013 0 01/20/2013 178.7723 178.7723 1.403442 0 1/13/2013 0 01/19/2013 152,9796 152.9796 1.285645 0 1/12/2013 0 01/18/2013 200.0895 200,0895 1.285645 0 1/11/2013 0 01/17/2013 180.5978 180.5978 1.344482 0 1/10/2013 0 01/16/2013 155.3351 155.3351 1.285645 0 1/9/2013 0 01/15/2013 215.3414 215,3414 1.285645 0 1/8/2013 0 01/14/2013 198,0285 198.0285 1.344482 0 1/7/2013 0 01/13/2013 186.8399 186.8399 1.285645 0 1/6/2013 0 01/12/2013 167.1715 167.1715 1.285645 0 1/5/2013 0 01/11/2013 223.4678 223.4678 Null 0.166748 1/4/2013 0 01/11/2013 Null Null 1.167847 Null 1/3/2013 0 01/10/2013 205.095 205.095 1.167847 0.696777 1/2/2013 0 01/9/2013 197.7341 197.7341 1.52124 0.461182 1/1/2013 0 0 1/8/2013 183.8955 183.8955 1.52124 1.109009 1/7/2013 269.1056 269.1056 1.756714 0.10791 1/6/2013 207.0383 207.0383 1.697876 0.10791 1/5/2013 196.2618 196.2618 1.697876 0.10791 1/4/2013 339.6527 339.6527 1.52124 0 1/3/2013 219,1691 219.1691 1.46228 0.166748 1/2/2013 339.2994 339.2994 1.874512 0.166748 1/1/2013 218.7568 218.7568 1.756714 0.402344 rigure z - orress airrerenuai ana roisson s mauo differential by rock type H-1 SandFitalysis n 3� G Q , G _m Q 61 y 7 L N 47 W L N O Q N L N n �F n qn AN Zauu 306D 000u Iwo -' Pcl Poisson's rs (psi) rom Stf red circle: blue circle 0 A 7/92014 2.30'.55 PM �7 • • RECEIVED AJ Asset Team FEB 2 8 2011 Alaska Od & Gas Cons. Commission Marathon P.O. Box 196168 Anchorage " RAM* Production LLC Anctxxago, AMC 99519 -6168 Telephoce 907/561 -5311 Fax 907/565 -3076 February 28, 2011 Daniel T. Seamount, Jr., Commission Chair Alaska Oil & Gas Conservation Commission Attn: Tom Maunder 333 W. 7 Avenue, Suite 100 Anchorage, AK 99501 Reference: Report on Disposal Injection Operations Well Kenai Unit 12 -17, Kenai Unit Permit to drill # 208 -089 Dear Mr. Maunder, Well Kenai Unit 12 -17 (KU 12 -17) is governed by Disposal Injection Order (DIO) No. 34A, approved May 27, 2009. This report covers the disposal injection operations for KU 12 -17 from January 1, 2010 until December 31, 2010. Well KU 12 -17 daily rate and pressures are monitored by Marathon personnel. Marathon has also contracted with a third - party, Advantek International, Inc. (Advantek) to provide additional monitoring and analysis of KU 12 -17 injection. Advantek's analysis includes a thorough evaluation of fracture geometry to ensure that injected fluids are staying within the zone approved for injection. To date, Advantek has found no indication of out -of -zone fracture growth. The most recent mechanical integrity test was conducted on August 27 2009; the next MIT is due by August 27 2011. • • Marathon Alaska Production LLC February 28, 2011 Report on Disposal Injection Operations Page 2 of 7 Well KU 12 -17, Kenai Unit KU 12 -17's DIO requires a yearly report that includes data sufficient to characterize the disposal operation. This report includes the following information, as specified in the DIO: a. Injection pressures (daily average, maximum and minimum) b. Annuli pressures (daily average, maximum and minimum) c. Fluid volumes injected (disposal and clean sweeps) d. Injection rates e. Fracture geometry (assessment) f. Anomalous results (description of) g. Zone of influence for injected fluids (calculated) h. Wellhead pressure plots for wells penetrating within 1 /4 mile of KU -12's disposal zone Please contact me with any questions at 907 - 565 -3043. Sincerely, l- � - Gi Tiffany Stebbins Compliance Representative cc: M. Dammeyer L. Ibele Well file • • Marathon Alaska Production LLC February 28, 2011 Report on Disposal Injection Operations Page 3 of 7 Well KU 12 -17, Kenai Unit a) Injection pressures (daily average, maximum and minimum) Injection Injection Injection Year Pressure, Pressure, Pressure, Average (psig) Maximum (psig) Minimum (psig) 2010 164 1601 0 KU 12 -17 Injection Pressure (2010) 1800 Tubing Pressure Average (psig) 1600 Tubing Pressure Maximum (psig) 1400 oc 1200 N 1000 a 800 O a 600 C 400 200 0 O O O O O O O O O O O o 'y � � O ti O ti O ti O 'y O ti O ti O ti O ti O 'y >a � � ma c Pi t a J �� J� J � cp 0 o � Oec s • Marathon Alaska Production LLC February 28, 2011 Report on Disposal Injection Operations Page 4 of 7 Well KU 12 -17, Kenai Unit b) Annuli pressure (daily average, maximum and minimum) Inner Annulus Inner Annulus Inner Annulus Year Pressure, Pressure, Pressure, Average (psig) Maximum (psig) Minimum (psig) 2010 105 572 0 KU 12 -17 Inner Annulus Pressure (2010) 700 600 Annulus Pressure Average (psig) Annulus Pressure Maximum (psig) 500 �... _ . _.. a 400 0J a` 300 • 3 C C 200 100 .44%%.44.........**""..."" • 0 d o d o d o d o d o d o d o d o d o d o d o d o o d o y o , o o d o d o , , , , Sao �e`O la c PQ� 4<i> I � J` e c , 0` 7 The outer annulus showed negligible pressure throughout the 2010. • • Marathon Alaska Production LLC February 28, 2011 Report on Disposal Injection Operations Page 5 of 7 Well KU 12 -17, Kenai Unit c) Fluid volumes injected (disposal and clean sweeps) Year Fluid Volumes Injected, (bbl) 2010 160,062 KU 12 -17 Injection Volume (2010) 250,000 2,500 240,000 230,000 220,000 2,000 -a ._7a 210,000 , 200,000 E 190,000 1,500 j 180,000 t 170,000 9 160,000 1,000 v 3 C E 150,000 a 3 140000 CO u 130,000 — —_- 500 a 120,000 Total Cummulative Injection Volume (bbl) .— 110,000 Average Volume Per Injection Day (bbl /day) 100,000 — - 0 o O O O O O O O O O O O oti oti oti oti oti oti oti oti oti oti oti oti >a F �S P ‹t' � >� > QN pi 4� � o4 ' � d) Injection rates Injection rates vary throughout 2010, but at no time has injection rates exceeded the DIO limit on KU 12 -17 of 5 barrels per minute. �i • Marathon Alaska Production LLC February 28, 2011 Report on Disposal Injection Operations Page 6 of 7 Well KU 12 -17, Kenai Unit e) Fracture geometry (assessment) Fracture dimension modeling from recent injection shows similar results to the most recent pressure falloff test analysis. Fracture lengths were calculated using PIE pressure transient analysis software, as well as using PKN, KGF, and Radial models. Advantek performed all the analysis. The results are shown below; there is no evidence of out -of -zone fracture growth. Model type Data Source Fracture Half Length (feet) PIE 11/02/10 Pressure Falloff Test 269 KPN* Injection 4/1/2010 to 12/31/10 100 -244 KGD* Injection 4/1/2010 to 12/31/10 25 -80 Radial* Injection 4/1/2010 to 12/31/10 45 -95 *Note that KPN is the most likely fracture configuration since injection data suggests that the waste fractures are contained. 3D fracture simulation was performed by Advantek to asses fracture propagation and geometry. Fracture height reached 95 feet with a fracture half - length of around 290 feet. Uniform fracture width was found around the fracture initiation depth (4100 feet), with even growth above and below the initiation depth. Model type Data Source Fracture Height (feet) 3D Fracture Simulation 11/02/10 Pressure Falloff Test 95 Time = 340(mins) Injection Volume e 1477.1194(barrels) 4000 Cth(n1 0.9 0.7 0 -c 42061021LWAVA0460411 p 0.2 0 .1 0 0 Y 4200 m I- 4300 <_.. 44000 100 200 300 400 Fracture Length (ft) 3D Fracture Simulation • Marathon Alaska Production LLC February 28, 2011 Report on Disposal Injection Operations Page 7 of 7 Well KU 12 -17, Kenai Unit f) Anomalous results (description of) No anomalous results have been observed in KU 12 -17. g) Zone of influence for injected fluids (calculated) The comparison of the fall -off trends between the 2009 and 2010 tests show that the reservoir permeability has decreased substantially. This is likely due to formation damage and particles deposition from drill cuttings, indicating that the injection operation has been taking place in the same planned target horizon, and shows no evidence of out -of -zone growth, nor evidence of large vertical growth. See item e) Fracture geometry (assessment) for further details regarding the zone of influence. h) Wellhead pressure plots for wells penetrating within 1 /4 mile of KU 12 -17's disposal zone There are currently no wells that penetrate within 1 4 of a mile of KU 12 -17's disposal zone. 0 Page 1 oi`s'tl- Maunder, Thomas E (DOA) From: Maunder, Thomas E (DOA) Sent: Tuesday, September 28, 2010 11:48 AM To: 'Stebbins, Tiffany A.' Subject: RE: Annual Report KU 12-17 (208-089) Tiffany, `) This explanation is acceptable for the present time. For next year's report, please have the engineer determine, as best possible, the actual frac dimensions. An actual versus designed comparison is an important performance measure. Call or message with any questions. Tom Maunder, PE AOGCC From: Stebbins, Tiffany A.[mailto:tastebbins@marathonoil.com] Sent: Friday, August 13, 2010 8:53 AM To: Maunder, Thomas E (DOA) Subject: RE: Annual Report KU 12-17 (208-089) Tom, I apologize for the delay in Marathon's response. Below is our answer. From Michael Dammeyer: "Fracture height is about 100 ft. This number is based on the simulations that were performed in the design stage, combined with the stress barriers from the lithology and the geomechanical modeling. The simulated fractures were contained by these stress barriers." Would you like this information added to the annual report for KU 12-17? Thanks, C � p�b f�, p U�atl4 j 5�t 4 Regulatory Compliance Representative Marathon Alaska Production, LLC Phone 907-565-3043 Cell 907-529-0522 Fax 907-565-3076 From: Maunder, Thomas E (DOA) [mailto:tom.maunder@alaska.gov] Sent: Friday, August 13, 2010 8:46 AM To: Stebbins, Tiffany A. Subject: RE: Annual Report KU 12-17 (208-089) Tiffany, Could you give me a status on this request? Thank you, Tom Maunder, PE AOGCC 9/28/2010 Page 4 9 Maunder, Thomas E (DOA) From: Maunder, Thomas E (DOA) Sent: Friday, July 30, 2010 1:31 PM To: Stebbins, Tiffany A. Subject: Annual Report KU 12-17 (208-089) Tiffany, I have reviewed the annual report submitted for this Class II disposal well and have a question. In the discussion regarding fracture geometry (section e), calculated fracture half lengths are given however there is no information regarding fracture height. Would you please provide that information? Thanks in advance. Call or message with any questions. Tom Maunder, PE AOGCC 7/30/2010 �4 Marathon MAM ®Alaska Production LLC July 14, 2010 Daniel T. Seamount, Jr., Commission Chair Alaska Oil & Gas Conservation Commission Attn: Tom Maunder 333 W. 7th Avenue, Suite 100 Anchorage, AK 99501 Reference: Report on Disposal Injection Operations Well KU 12-17 Permit to drill #208-089 Dear Mr. Maunder, ~~~ V JUI~ j 5 2010 ~j>~~ka tJil & Gay Ger~s. Cotissian ~cttbr~g Well KU 12-17 is governed by Disposal Injection Order (DIO) No. 34A, approved May 27, 2009. This report covers the disposal injection operations for KU 12-17 from January 1, 2009 until December 31, 2009 (including operations to date). This is the first report for KU 12-17; the completion date for this well was December 12, 2008, but no injection occurred until 2009. Well KU 12-17 daily rate and pressure are monitored by Marathon personnel. Marathon has also contracted with athird-party, Advantek International, Inc. (Advantek) to provide additional monitoring and analysis of KU 12-17 injection. Advantek's analysis includes a thorough evaluation of fracture geometry to ensure that injected fluids are staying within the zone approved for injection.. To date, Advantek has found no indication of out-of-zone fracture growth. Alaska Asset l eam P.O.Box196168 Anchorage, AK 99519-6168 Telephone 907/561-5311 Fax 907/565-3076 The most recent mechanical inte~rity test was conducted on August 27th 2009; the next MIT is due by August 27 2011. • Marathon Alaska Production LLC Report on Disposal Injection Operations Well KU 12-17 July 14, 2010 Page 2 of 6 KU 12-17's DIO requires a yearly report that includes data sufficient to characterize the disposal operation. This report includes the following information, as specified in the DIO: a. Injection pressures (daily average, maximum and minimum) b. Annuli pressures (daily average, maximum and minimum) c. Fluid volumes injected (disposal and clean sweeps) d. Injection rates e. Fracture geometry (assessment) f. Anomalous results (description of) g. Zone of influence for injected fluids (calculated) h. Wellhead pressure plots for wells penetrating within '/a mile of KU-12's disposal zone Please contact me with any questions at 907-565-3043. .Sincerely, t~~ ,.'~'I 'a%v"(t-t~-sue Tiffany Stebbins Compliance Representative cc: M. Dammeyer L. Ibele Well file TAS\Permitting\Injection Wells\KU 12-17 Annual (2009) Injection Report 7-14-10.doc • • Marathon Alaska Production LLC Report on Disposal Injection Operations Well KU 12-17 a) Infection pressures (daily average, maximum and minimum) July 14, 2010 Page 3 of 6 Injection Injection Injection Year Pressure, Pressure, Pressure, Avera a (psi) Maximum (psi) Minimum (psi ) 2009 239 1,559 0 2009 -May 2010 231 1,601 0 KU 12-17 Injection Pressure (Daily Sample) January 2009 -May 2010 1500 1400 1300 1200 1100 1000 ~ 900 "w 800 700 g 600 N 500 a 400 300 200 100 0 -100 o°~ o°~ o°~ o°' o°' o°~ o°~ o°~ o°~ o°' o°' o°' ,~o ,~o ,~o ,~o ,~o ~o ~yo ~o ~o ~o ~yo ~o do ~o ~o do ~o ~o ~o do ~o ~o Date TAS\Permitting\Injection Wells\KU 12-17 Annual (2009) Injection Report 7-14-10.doc • Marathon Alaska Production LLC Report on Disposal Injection Operations Well KU 12-17 b) Annuli pressures (daily average, maximum and minimum) July 14, 2010 Page 4 of 6 Year Annuli Pressure, Annuli Pressure, Annuli Pressure, Avera a (psi) Maximum (psi) Minimum (psig) 2009 46 273 0 2009 -May 2010 71 454 0 KU 12-17 Annuli Pressure (Daily Sample) January 2009 -May 2010 Date TAS\Permitting\Injection Wells\KU 12-17 Annual (2009) Injection Report 7-14-10.doc Marathon Alaska Production LLC Report on Disposal Injection Operations Well KU 12-17 c) Fluid volumes infected (disposal and clean sweeps) July 14, 2010 Page 5 of 6 KU 12-17 Injection Volumes (Daily & Cummulative) January 2009 -May 2010 200000 180000 N 160000 - L 140000 - eC m 120000 ~ 100000 0 ~ 80000 - 60000 - ~ 40000 ~ 20000 - 0 ~ ~ ~ ~ ~ ~ 0 0 0 0 0 0 ~O ~o ~O ~O ~o ~o ,?+~ - . 0 O°~ o°' o°~ O°' o°' O°' ,~O ,~o ,~o ,~o ,~O 0 0 0 0 0 0 0 0 0 0 0 ~~\~~\O~\'~~\~~\'~~\~,~ 3~\D~~\h~\f L ~ ~ ~ Date 2500 2000 ° a~ a N d 1500 m a~ 1000 0 0 500 .~ TAS\Permitting\Injection Wells\KU 12-17 Annual (2009) Injection Report 7-14-10.doc ' o Marathon Alaska Production LLC Report on Disposal Injection Operations Well KU 12-17 d) Iniection rates July 14, 2010 Page 6 of 6 Injection rates vary throughout the year between zero and 4.5 barrels per minute, but at no times has injection rates exceeded the DIO limit on KU 12-17 of 5 barrels per minute. e) Fracture geometry (assessment) Fracture dimension modeling from recent injection (April and May of 2010) shows similar results to the most recent pressure falloff test analysis (May 29, 2010). Fracture lengths were calculated using PIE pressure transient analysis software as well as PKN, KG F, and Radial models. Advantek performed all the analysis. The results are shown below; there is no evidence of out-of-zone fracture growth. Model type Data Source Fracture Half Length (feet) PIE Pressure Falloff Test 117 KPN Injection 44-212 KGD Injection 40-92 RADIAL Injection 58-98 f) Anomalous results (description of) No anomalous results have been observed in KU 12-17. g) Zone of influence for infected fluids (calculated) Pressure transient analysis, performed by Advantek, on the most recent pressure falloff test (May 29, 2010) indicates what the well's injection history already suggests: there is containment for the existing fractures, with no out-of-zone growth, and the injected fluid is contained within the disposal limits of the DIO. h) Wellhead pressure plots for wells penetrating within'/4 mile of KU 12-17's disposal zone There are currently no wells that penetrate within '/4 of a mile of KU 12-17's disposal zone. TAS\Permitting\Injection Wells\KU 12-17 Annual (2009) Injection Report 7-14-10.doc ~ 4 Marathon & commercial disp~ through G&I facility ~ Page 1 of 2 Maunder, Thomas E (DOA) From: Stebbins, Tiffany A. [tastebbins@marathonoil.com) ~ `~ ~~ Sent: Tuesday, March 09, 2010 9:27 AM To: Maunder, Thomas E (DOA) ~ ~~-~Q ~-~ Cc: Regg, James B (DOA) Subject: RE: Marathon & commercial disposal through G&I facility Tom, Thanks for responding to the subject. If we do begin third party disposal, I will add a line item to capture the volumes on our annual DIO reporting. Regulatory Compliance Representative Marathon Oil Corporation Phone 907-565-3043 Cell 907-529-0522. Fax 907-565-3076 From: Maunder, Thomas E (DOA) [mailto:tom.maunder@alaska.gov] Sent: Monday, March 08, 2010 2:03 PM To: Stebbins, Tiffany A. Cc: Regg, James B (DOA) Subject: RE: Marathon & commercial disposal through G&I facility Tiffany, Commission Disposal Injection Orders (DIOs) authorize the Operator to dispose of Class II waste. We have not made any distinction regarding whether the injected waste is solely produced by the Operator or results from some third party's well operations. If third party waste is accepted, it is incumbent on Marathon to be satisfied that the waste is indeed Class II and meets the requirements of the DIO. In your annual report it may be appropriate to have a third party line item where such volumes can be listed. Call or message with any questions. Tom Maunder, PE AOGCC From: Regg, James B (DOA) Sent: Monday, March 08, 2010 11:45 AM To: Maunder, Thomas E (DOA) Subject: FW: Marathon & commercial disposal through G&I facility Jim Regg AOGCC 333 W.7th Avenue, Suite 100 Anchorage, AK 99501 3/9/2010 Marathon & commercial disp~ through G&I facility ~ Page 2 of 2 907-793-1236 From: Stebbins, Tiffany A. [mailto:tastebbins@marathonoil.com] Sent: Monday, March 08, 2010 11:00 AM To: Regg, James 6 (DOA) Subject: Marathon & commercial disposal through G&I facility Hi Jim, We are considering commercial disposal. Would we need to convert our current disposal permit to a commercial disposal permit even if we intend to only dispose of approved Class II exempt wastes. Thanks, Uti~~an.~, C~J ke.~~.invz Regulatory Compliance Representative Marathon Oil Corporation Phone 907-565-3043 Cell 907-529-0522 Fax 907-565-3076 3/9/2010 ~3 ~ -KU 12-17 fluid rate ~ • Page 1 of 2 f Regg, James B (DOA) ~- (~ Zc>~_ ~~ .From..... Re99, James B (DOA) -1C~~ q ~~ t Z, vii _ _ _~ 1 Sent: Friday, June 12, 2009 10:17 AM To: 'Miranda, Kyle' Cc: Aubert, Winton G (DOA) Subject: RE: KU 12-17 fluid rate Thank you for the details regarding the injection at KU 12-17. For the purposes of the rate limits noted in DIO 34A, the 5 BPM limit should be viewed as an average rate over the batch injection. Higher instantaneous rates due to the well being on vacuum (allowing the well to draw fluids at its natural rate; injection pump off) do not require modification of the DIO or Marathon's below noted practice. Further, there is no need to choke back the exit from storage tanks while the well remains on vacuum. Actual injection rates (injection pump on) should not exceed 5 BPM per DIO 34A. Jim Regg AOGCC 333 W.7th Avenue, Suite 100 Anchorage, AK 99501 907-793-1236 From: Miranda, Kyle [mailto:kmiranda@marathonoil.com] Sent: Wednesday, June 10, 2009 9:47 AM To: Regg, James B (DOA) Subject: KU 12-17 fluid rate Jim, In our DIO application for KU 12-17 Marathon listed the following: 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 Currently the well is on vacuum with tubing pressure less than 0 psi as we have not commenced injection. As I recall, nearby KU 24-7rd remained on vacuum 1-2 years after falloffs from daily injection cycles. With our injection pump off, the new well KU 12-17 will want to draw fluids down the tubing on its own until the tubing is filled with a full column of injection fluid. This process should take less than 10 minutes after the valves are opened to the well. Essentially the water will just be dropping into the tubing, not injecting per se. Naturally, the rate at which the tubing fills due to the suction of the well (not the rate at which the fluids are injected into the formation) may reach 4-8 bpm for the short time (<10 min). That being said, I ask the question does the filling rate constitute as an injection rate? May we open the well to vacuum and let the well draw fluids at its natural rate until the tubing is filled? After that point the injection pump will be turned on and injection rate will stay below 5 bpm. A second option would be for us to manually choke back the exit from our storage tanks into the injection lines -thereby reducing flow rate as the well fills itself by the vacuum. This however is not as safe as letting the well draw naturally, and we would now be subjecting the chokes to wear. 6/ 12/2009 k KU 12-17 fluid rate ~ ~ Page 2 of 2 Thank you, Kyle Miranda Production Engineer I Marathon Oil Company-Alaska Asset Team 907-283-1370 (office) 907-394-8271 (cell) 6/12/2009 I~'~ -LLo% STATE OF ALASKA ~ NOTICE TO PUBLISHER ~ ADVERTISING ORDER NO. ADVERTISING ORDER INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE A O_02914018 /`1 SEE BOTTOM FOR INVOICE ADDRESS F R AOGCC 333 W 7th Ave, Ste 100 AGENCY CONTACT Jod Colombie DATE OF A.O. March 25 2009 ° M Anchorage, AK 99501 907-793-1238 PHONE - PcN DATES ADVERTISEMENT REQUIRED: ASAP o Peninsula Clarion P.O. Box 3009 Kenai AK 99611 ~ March 29, 2009 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: Advertisement to be published was e-mailed Type of Advertisement Legal® ^ Display Classif ied ^Other (Specify) SEE ATTACHED SEND INVOICE IN TRIPLICATE TO AOGCC, 333 W. 7th Ave., Suite 100 Anchora e AK 99501 PAGE 1 OF 2 PAGES TOTAL OF ALL PAGES$ REF TYPE NUMBER AMOUNT DATE COMMENTS 1 VEN 2 Axn 02910 3 4 FIN AMOUNT SY CC PGM LC ACCT FY NMR DIST LID ~ 08 02140100 73451 z 3 4 ~ --- ~ REQt~1SITIONE i 5J DIVISION APPROVAL: ~. ~ 1 • Notice of Public Hearing State of Alaska Alaska Oil and Gas Conservation Commission Re: Request for Amended Disposal Injection Order for Kenai Unit (KU), Well 12-17, located within the Kenai Peninsula Borough, Alaska Marathon Oil Company (Marathon), by letter dated March 23, 2009 and received on March 24, 2009 has applied for an amended disposal injection order in accordance with 20 AAC 25.252. Disposal Injection Order 34 was issued by the Alaska Oil and Gas Conservation Commission (Commission) on November 20, 2008, authorizing the disposal of Class II drilling and production wastes into the Sterling formation using existing well KU 12-17. The approved receiving zone for this well is 4002 feet to 4147 feet true vertical depth. Marathon's requested amendment would authorize the receiving zone from 3500 feet to 4400 feet true vertical depth. The proposed expanded disposal injection zone remains within Section 17, T4N, R11 W, Seward Meridian. 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 May 4, 2009 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 April 15, 2009. 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 Apri122, 2009. 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 May 1, 2009, except that if the Commission decides to hold a public hearing, protests or comments must be received no later than the conclusion of the May 4, 2009, hearing. If you are a person with a disability who may need special accommodations in order to comment or to attend the public hearing, please contact the Commission's Special Assistant Jody Colombie at 3-1221. Daniel . Seamount, Jr. Chair • • PUBLISHER'S AFFIDAVIT UNITED STATES OF AMERICA, STATE OF ALASKA SS: Denise Reece being first duly sworn, on oath deposes and says: That I am and was at all times here in this affidavit mentions, Supervisor of Legals of the Peninsula Clarion, a news- paper of general circulation and published at Kenai, Alaska, that the Public Hearing AO-02914018 a printed copy of which is hereto annexed was published in said paper one each and every day for nne successive and consecutive day in the issues on the following dates: -- March 29, 2009 SUBSCRIBED AND SWORN to me before t 16th day of April 2009 i NOTARY PUBLIC in favor for the State of Alaska. My Commission expires 26-Aug-12 ~P~. • • •... ~ .FCI ' Notice of Public Hearing State of Alaska Alaska Oil and Gas Conservation Commission ' Re: Request for Amended Disposal Injection Order fore Kenai Unit (KU), Well 12-17, located within the I .Kenai Peninsula Borough, Alaska Marathon Oil Company (Marathon), by letter dated' ' March 23, 2009 and. received on March 24, 2009 has ' applied for. an amended disposal .injection order in' accordance with 20 AAC 25.252. Disposal Injection' .Order- 34 was issued by the Alaska Oii and Gas Conservation Commission (Commission) on November' 20, 2008, authorizing the disposal of Class II drilling I and production wastes into the Sterling formation using existing welt KU 12-17. The approved receiving zone for this well is 4002 feet to 4147 feet true Vertical depth. Marathon's requested amendment would' authorize the receiving zone from 3500 feef to 4400. 'feet true vertical depth. The proposed expanded disposal. injection zone remains wthin Section 17, f T4N, R11 W, Seward Meridian. 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 thisapplication for May 4, 2009 at 9:00 am' at the offices of the Alaska 0i1 and Gas Conservation I 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 April 15, 2009. ' If a request for a hearing is .not .timely filed, the Commission may consider the issuance of an order' 'thehpubl c hear ng, p Blase ccall 793 ~ 221 after April 22' 1 2009. ' In addition, a person may submit a written protest or written comments regarding this application and f proposal to the Alaska Oil and .Gas Conservation '-0ommission at 333 West 7th Avenue, 'Suite 10Q Anchorage, Alaska 99501. Protests .and comments ' mush be received no later #han 4:30 pm on May 1, 2009, except thatrf the Commission decides to hold a' public hearing, protests or comments must be 'received no later than the conclusion of the May 4, 2009, hearing. If you are a pereon with a disability who may need' special accommodations in order to comment or to I attend the public hearing, please contact .the ' Commission's Special Assistant Jody Colombia at' 793-1221: ' Danief T. Seamount, Jr. Chair !PU~LI~H.~~~9~~~~~4~0~4~ ~'JB~.,G 02-902 (Rev. 3/94) Publish~iginal Copies: Department Fiscal, Depart~eceiving AO.FRM STATE OF ALASKA NOTICE TO PUBLISHER ADVERTISING ORDER NO. ADVERTISING INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED /~ 0_02914018 ' AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF 1 ! ORDER ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE SEE BOTTOM FOR INVOICE ADDRESS F AOGCC AGENCY CONTACT DATE OF A.O. R Suite 100 333 West 7~' Avenue ° . Anchnra~e_ AK 99561 PHONE PCN M 907-793-1238 - DATES ADVERTISEMENT REQUIRED: ASAP o Peninsula Clarion March 29, 2009 PO Box 3009 Kenai AK 99611 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN DATES SHOWN N TH ~ . ITS ENTIRETY O E SPECIAL INSTRUCTIONS: AFFIDAVIT OF PUBLICATION United states of America REMINDER State of ss INVOICE MUST BE IN TRIPLICATE AND MUST REFERENCE THE ADVERTISING ORDER NUMBER. division. A CERTIFIED COPY OF THIS AFFIDAVIT OF PUBLICATION MUST BE SUBMITTED WITH THE INVOICE. Before me, the undersigned, a notary public this day personally appeared ATTACH PROOF OF PUBLICATION HERE. who, being first duly sworn, according to law, says that he/she is the of Published at in said division and state of and that the advertisement, of which the annexed is a true copy, was published in said publication on the day of 2007, and thereafter for consecutive days, the last publication appearing on the day of .2007, and that the rate charged thereon is not in excess of the rate charged private individuals. Subscribed and sworn to before me This _ day of 2007, Notary public for state of My commission expires STATE OF ALASKA ADVERTISING ORDER IOTTOM FOR INVOICE ADD F AOGCC R 333 W 7th Ave, Ste 100 ° Anchorage, AK 99501 M 907-793-1238 o Anchorage Daily News PO Box 149001 Anchorage, AK 99514 AGENCY CONTACT Jody Colombie PHONE 17\7/i /7_1 -IGG1 DATES ADVERTISEMENT DATE OF A.O. March 24, 2009 PCN March 26, 2009 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN 1T3 ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: Advertisement to be published was e-mailed Type of Advertisement Legal® ^ Display Classified ^Other (Specify) SEE ATTACHED SEND INVOICE IN TRIPLICATE AOGCC, 333 W. 7th Ave., Suite 100 TO Anchora e AK 99501 REF TYPE NUMBER AMOUNT 1 VEN z A1~ 02910 FIN AMOUNT SY CC PGM ~ 08 02140100 2 ~ A REQUISITIONED Y: ,' f PAGE 1 OF I TOTAL OF 2 PAGES ALL PAGES LC ACCT FY 73451 DIVISION APPROVAL: NMR 02-902 (Rev. 3/94) Publisher/Original Copies: Department Fiscal, Department, Receiving BLISHER ~ ADVERTISING ORDER NO. NOTICE TO PU INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED A O_02914017 AFFIDAVIT OF PUBLICATION (PART 2 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 Amended Disposal Injection Order for Kenai Unit (KU), Well 12-17, located within the Kenai Peninsula Borough, Alaska Marathon Oil Company (Marathon), by letter dated March 23, 2009 and received on March 24, 2009 has applied for an amended disposal injection order in accordance with 20 AAC 25.252. Disposal Injection Order 34 was issued by the Alaska Oil and Gas Conservation Commission (Commission) on November 20, 2008, authorizing the disposal of Class II drilling and production wastes into the Sterling formation using existing well KU 12-17. The approved receiving zone for this well is 4002 feet to 4147 feet true vertical depth. Marathon's requested amendment would authorize the receiving zone from 3500 feet to 4400 feet true vertical depth. The proposed expanded disposal injection zone remains within Section 17, T4N, R11W, Seward Meridian. Marathon's application may be reviewed at the offices of the Commission, 333 West 7t" 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 May 4, 2009 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 April 15, 2009. 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 call 793-1221 after Apri122, 2009. 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 May 1, 2009, except that if the Commission decides to hold a public hearing, protests or comments must be received no later than the conclusion of the May 4, 2009, hearing. If you are a person with a disability who may need special accommodations in order to comment or to attend the public hearing, please contact the Commission's Special Assistant Jody Colombie at 3-1221. Daniel . Seamount, Jr. Chair 3/26/2009 ~~ ~inchorage Daily News APR 1 0 2009 Affidavit of Publication 100LNorthway Drive, Anchorage, AK 99508 ~~iaska Oil & Gas Cons, ~'~ R~1R11SSi~f) PRICE OTHER OTHER OTHER ~~ AD # DATE PO ACCOUNT PER DAY CHARGES CHARGES #2 CHARGES #3 TOTAL 614823 03/26/2009 02914017 STOF0330 $229.08 $229.08 $0.00 $0.00 $0.00 $229.08 STATE OF ALASKA THIRD JUDICIAL DISTRICT Shane Drew, being first duly sworn on oath deposes and says that he is an advertising representative of the Anchorage Daily News, a daily newspaper. That said newspaper has been approved by the Third Judicial Court, Anchorage, Alaska, and it now and has been published in the English language continually as a daily newspaper in Anchorage, Alaska, and it is now and during all said time was printed in an office maintained at the aforesaid place of publication of said newspaper. That the annexed is a copy of an advertisement as it was published in regular issues (and not in supplemental form) of said newspaper on the above dates and that such newspaper was regularly distributed to its subscribers during all of said period. That the full amount of the fee charged for the foregoing publication is not in excess of the rate charged private individuals. Signed ~e-<--~- Subscribed and s•.acr_^. to me before phis dale: ~~~~ Notary Public in and for the State of Alaska. Third Division. Anchorage, Alas/ka MY COMMISSION EXPIRES: l r~- <!~ `tttt((!(€((orr `~~~®~~~~iA A. ~`~® ~. .; y : ~ ~IIBL.IG = ~` :$ '°' •~~p1.P. 1,1 J'J~flfll~l~) )11I>>1~~~ Notlce of Public Heating State ofAlaslka " Alaska Oll and Gas Conservation Commission Re: Request for Amended Disposal Injection Order for Kenai Unit OCU}, Well 12-17; located within the Kenai Peninsula Borough, Alaska ~raance with 20 AAG 25;253. DisposalJrijection ~r 34 was issued by the Alaska oil and Gas nervation Commission (commission) oh ember 20, 2008, authorizing the disposal of s II drilling andproduction wastes mto.the ing formation using existing welt KU 12-17: The aved receiving, zone for this well is 4002 feet to feet true vertical depth. Marathon's requested ~dment would authorize tqe receivin zone. i~ a panded4d spousal in)ecti scion a~'In~s n Section 17, T4N, R11W, Seward Meridian. ttion's application may be reviewed at the- as of the Commission, 333 West 7th Avenue, 100, Anchorage, Alaska, ora copy mayy be fined by phoning the Commission at (907) 221. 1 Commission has tentatively scheduled a :Rearing on thisapplication ter nnav a ~tu,o a« nv pacer man 4:30 pm on gpri1.15,2009 If a request for a hearing is not timely filed, tl Commission may consider the issuance of an ord~ without a hearing. Todearn ff the Commission w holtl the public hearing, please cai1793-1221 afU April 22, 2009. m addition, a person may submit a written prole: or written comments roa~~.~~ .... ...:......_::__.:__ __. ~, ~~,~,u a pu. lic hearing, protests or comments must be receroed no later than the conclusion of the May 4 2009, hearing. If you are a person with a disability who may need special accommodations in order to comment or to attend the Qublic hearing, please contact the Commission s Special Assistant Jody Cotombie at ? 793-1221. Dan)el T. Seamount, N. Chair 40-02914017 " published: March 26, 2009 • STATE OF ALASKA NOTICE TO PUBLISHER ADVERTISING ORDER NO. ADVERTISING INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED /~ 0-02914017 AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF I`1 ORDER ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE 30TTOM FOR INVOICE ADDRESS "~ AOGCC R 333 West 7th Avenue. Suite 100 ° Anchnra~e_ AK 995(11 M 907-793-1238 o Anchorage Daily News PO Box 149001 Anchorage, AK 99514 AGENCY CONTACT J~dv Colombie _ PHONE (9071 793 -1221 DATES ADVERTISEMENT REQUIRED: March 25, 2009 DATE OF A.O. PCN THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: Account # STOF0330 United states of America State of division. AFFIDAVIT OF PUBLICATION REMINDER SS INVOICE MUST BE IN TRIPLICATE AND MUST REFERENCE THE ADVERTISING ORDER NUMBER. 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 2009, and thereafter for consecutive days, the last publication appearing on the day of , 2009, 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 2009, Notary public for state of My commission expires _ Page 1 of 1 Colombie, Jody J (DOA) From: Colombie, Jody J (DOA) Sent: Wednesday, March 25, 2009 11:18 AM Subject: Public Notice DIO -Kenai Well 12-17 Attachments: Public Notice DIO -Kenai Well 12-17.pdf BCC:'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'; caunderwood@marathonoil.com; 'Charles O'Donnell'; 'Chris Gay'; 'Cliff Posey'; 'Cody Rice'; 'Dan Bross'; 'dapa'; 'Daryl J. Kleppin'; 'David Brown'; 'David Gorney'; 'David Hall'; David House; 'David L Boelens'; 'David Steingreaber'; 'ddonkel'; Deborah 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'; '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'; 'Lynnda Kahn'; 'mail=akpratts@acsalaska.net'; 'mail=fours@mtaonline.net'; 'Marilyn Crockett'; 'Mark Dalton'; 'Mark Hanley'; 'Mark Kovac'; 'Mark P. Worcester'; 'Marquerite kremer'; 'Matt Rader'; Melanie Brown; 'Mike Bill'; 'Mike Jacobs'; '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'; 'rmclean'; 'Rob McWhorter'; rob.g.dragnich@exxonmobil.com; 'Robert Campbell'; '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'; Thompson, Nan G (DNR); 'Tim Lawlor'; 'Todd Durkee'; Tony Hopfinger; 'trmjrl'; Von Gemmingen, Scott E (DOR); 'Walter Featherly'; 'Walter Quay'; 'Wayne Rancier'; 'Aaron Gluzman'; '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); 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, Bren (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:Public Notice DIO -Kenai Well 12-17.pdf; Jody J. Colombie Special Assistant Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 (907)793-1221 (phone) (907)276-7542 (fax) 3/25/2009 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 ~,e~ ~s/~ ~~ Marathon MARATHON Oil Company March 23, 2009 LIAR ~ ~ ?~Q9 Alaska Oil & Gas Corti. ~~arnmissia Anchorage Mr. Daniel T. Seamount, Chairman Alaska Oil & Gas Conservation Commission 333 W 7t" Ave Anchorage, Alaska 99501 RE: Request for Amendment to Disposal Injection Order No. 34 Kenai Unit Well 12-17 Kenai Gas Field, Kenai Peninsula Borough, Alaska Dear Chairman Seamount: Marathon Oil Company Alaska Asset Team P.O. Box 1949 Kenai, AK 99611 Telephone 907/283-1371 Fax 907/283-1350 Marathon requests amendment to DIO 34, Rule 1 to permit disposal of oil field wastes into the interval from 3500 feet to 4400 feet TVD in Well KU 12-17. Marathon submitted application for disposal on August 20, 2008 prior to drilling and completion of the subject injection disposal well. The subsequently approved DIO #34 granted a disposal interval from 4002 feet to 4147 feet TVD as specified in Rule 1 of approved DIO 34. Marathon's application denoted this disposal interval to be roughly coincident with the Sterling B1 and B2 sands, but the Kenai undefined disposal pool is much greater in extent, with an EPA approved aquifer exemption applying to all intervals below 1300 ft TVD. Following the drilling and completion of KU 12-17, fracture simulations were performed using actual log data and results of pressure fall-off tests conducted in the subject well following perforation of the injection interval. This more rigorous analysis indicates a fracture geometry that is slightly different than specified in Rule 1 of the DIO. Marathon requests an amendment to DIO 34 to adjust the fluid disposal zone to better represent the findings from the modeling. Marathon expects upper confinement of the disposal fluids at a coal section from 3919 feet to 3926 feet TVD during the first year of injection, while lower confinement is expected at a coal section at 4200 feet to 4203 feet TVD. Worst case scenarios (see Exhibit 2, assumes no barriers or confinement layers) show fractures extending to 3600 ft TVD. Therefore, it is requested that DIO 34 be amended for a fluid disposal zone from 3500 feet to 4400 feet TVD. This interval should provide for several years of injection at the expected volumes and conditions for disposal, with confinement well within the established, field-wide, EPA aquifer exemption. Additionally, given that analysis of injection performance would be substantially more meaningful after several months of injection, Marathon requests amendment to Rule 6 to defer the first required report date until six months after injection begins. Subsequent reports will be made annually on July 1. Enclosed exhibits include an annotated KU 12-17 well log detailing the confining zones found above and below the perforation interval, along with several summary exhibits of fracture geometry simulations performed by Advantek International, Inc. To date, there has been no fluids injection in this well other than the previously mentioned pressure fall-off tests. Injection/disposal operations will not begin until approved by the Commission. Please contact me at (907) 565- 3042 if you have any questions or need additional information. Sincerely, 1~y Ly on C. Ibele, PE Production Coordinator Enclosures • • Exhibit 1 KU 12-17 Confining Zones • Exhibit 2 Tim• = 723985 Injection Volume = 2888 418 8(m in sj 9(bands l 3500 ----------- ....._ - --- ~ n cenva[ion Y~atuni~ t t ~ U ~ [. 3600 L oe X 3700 - - o ' i -- ~~~ i u ' I . L ..... ~'y ......_ ......... .......-__.... , _;.... - .... o ~. F. ~ d a 39~J V - [ m 39]:1 - -- _ . ~ ~ d000 ~ ~ ~ ' ~ i ~ 4100 _.~________~ .. I -~------- ~--~ -_--_-- ~. ~ ~ 42000 100 200 0 0 d0 0 5 00 800 700 fractu re Leng th (ft) • In light of the simulation results showing fracture extension outside of the targeted zones, the maximum upward fracture growth was assessed for permitting/re-permitting purposes assuming a uniform stress gradient was present; no stress barriers present. • Simulations run with the uniform gradient and the previously used parameters yield: • A maximum upward growth = 3600 ft ND • A maximum downward growth = 4150 ft ND • Therefore, subject to AOGCC orders and/or existing commitments, we recommend re- permitting atotal interval from 3500 ft ND - 4200 ft ND for injection at Kenai. Exhibit 3 • To extrapolate a six month performance prediction for the well, the evolution of the active stress profile within the targeted lithological sequence is important. • Assuming that the stress increase per batch is constant for a given stress profile, the cumulative injection volume possible between each evolutionary step of the stress profile can be calculated. • The original stress profile yields a 1000 ft. fracture half-length of about 100' thickness. • Shifting the stress profile to the right on the plot yields Stress Profile #2 (red), which has a taller uniform stress section and yields a shorter and taller fracture with ahalf-length of 510' and a thickness of X170'. Fracture Contour -Original Stress Profile _. _ _~_.... a,,, --- ~C n'.na. vow.... :e i~e~vu.~:.~ I €'~° a a~a s d, a a,~., _ _.__._ ~ ago ~ ~~ Fracture Contour -Stress Profile #2 - e= Mjsrbn Vo'un~s 26]F t@8]~W+qaf ', • • Exhibit 4 significantly as soon as the thin barrier is breached, extending the fracture past the top of the Pool 4 zone identified in the DIO at 4002 ft TVD, to a final height of 3920 ft TVD. • The fracture extends up into the low stress, high permeability zones and does not extend downward. •The third stress profile line (green) shifts to the right, resulting in a fracture profile 510' long and 180' high little changed from the SP#2. •The fourth and final stress profile (gray) connects a taller section, notably with a thin stress barrier immediately above and lower stress/higher permeability formations just above that. •The fracture profile moves up -°••• -w~"..`.~ -°•• •~ Tme - 12046114m fr -- - -- H?f[Ibn VOIVrM• 2a]4394W hfnNf? fi 0 °v InNttWn VOIYIrN • 2p614114bfrtNf) 3100 _ _ va.n frK Ga 3.00 _ i ,:f ~ ~ ;5 ~~ ~~ I 4,00 _.. _._ :_ .200 ~--- ~- i 43aa ...._. ___._i-__-_-. -____ _-__- __-___ i 4400 --- - -- ~6~0 260 ~ 600 150 1000 1160 1600 Fr~aun LsrgU3 iFl a a 2 r Exhibit 5 3700 3800 -Original Sbess Profile ~Sbess Increase - Prdk 1 ~Strass Increase -Profile 2 ~Sbess incra3se - Profile 3 Mininmm Horimntal Strew Gradient (psi/ft) 0.5 0.6 0.7 0.8 0.9 1 C_ 4000 4100 8 9 h 4200 4300 0 300 600 900 1200 1500 4900 4500 • The Stress Increases calculated are based on 24 hr Batches • Increased batch duration results in increased stress increase per batch, but increased solids volumes can be injected on a per psi differential basis.