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Home My WebLink About207-106~ ~ ~~ , ~ ~~~~~~~ ~~~ ~9~~~ ~~~~ ~r~~~~ ~ ~ ~~~- ~ Q ~ V~leii Fiistory File ~clentifier OI"~8I7/2/l7~ (done) ^ Two-sided II ((I'I II II I~ I II III ^ Rescan Needed RESCAN ^ Color items: ~eyscale Items: ^ Poor Quality Originals: DIGITAL DATA ^ Diskettes, No. ^ Other, No/Type: OVEI2SIZED (Scannable) ^ Maps: ^ Other Items Scannable by a Large Scanner OVERSIZED (Non-Scannable) ^ Other: ^ Logs of various kinds: NOTES; ^ Other:: BY: Maria Date: U ~ O ~ ~S~ Project Proofing III II II~I I) III I I~II BY: Maria Date: ~ `~ D ~S~ Scanning Preparation ~_ x 30 =~+ ~4~ = TOTAL PAGES ~°~`' (Count does not include cover she~t) BY: Maria Date: ~' ~~ I~C~ lsl Production Scanning Stage 1 Page Count from Scanned File: ~ 3(Count does include co sheet) Page Count Matches Number in Scanning Preparation: YES NO BY: Maria Date: g~~ ~q /sl ~~ ~ Stage 1 If NO in stage 1, page(s) discrepancies were found: YES NO BY: Maria Date: ~S~ ~ii n^i^~ ii^n io ~i~ Scanning is complete at this point unless rescanning is required. 9?eScanned ~I) II~III I~III II ~I' BY: Maria Date: ~S~ Comments about this file: Quality Checked II) II'I~) ~I~ ~I~~ ~II 10/6/2005 Well History File Cover Page.doc • • peti � FULL FREE SUBS,, �..- 8 8 VV Horne r rti Si.thSCflpZj4n5 i Publications e i http://www.petroleumnews.com/pnads/891782894.shtml Vol. 16, No. 13 Week of March 27, 2011 Providing coverage of Alaska and northern Canada's oil and gas industry BLM admits to drilling safety lapse Federal agency concedes diverter wasn't used on well drilled near Alaska village of Wainwright; AOGCC to continue probe c, Wesley Loy a 01 mAR 3 0 ZVI For Petroleum News The Bureau of Land Management has admitted responsibility for a failure to use a safety device called a diverter on a federal drilling project near the northwestern "Q`1 `\ Alaska village of Wainwright. c But the BLM also seemed to steer accountability for the lapse toward its designated operator on the project, the U.S. Geological Survey. — (V.\ The BLM stated its position in a March 15 letter to the Alaska Oil and Gas t)0 —()\ Conservation Commission, which had been pushing the agency for months to show proof it had used the required diverter on the seven wells at issue. "BLM understands it is responsible for the actions of its operator," said the letter signed by Julia Dougan, the BLM's associate state director for Alaska. `BLM has no immediate plans for additional drilling but can assure the Commission if future drilling should be permitted, operations will be carried out in full compliance with state regulations." How conflict unfolded • • The letter is the latest twist in a long - running conflict between the BLM and the AOGCC. The Wainwright project, which began in 2007, was a joint effort involving the BLM, the USGS, the North Slope Borough and Arctic Slope Regional Corp. The goal was to test a local coalbed as a potential source of natural gas to meet energy needs in the remote village of about 550 people on the Chukchi Sea coast. The AOGCC has authority to regulate drilling statewide, whether on federal, state or private land. On June 22, 2010, the AOGCC hit the BLM with a "notice of violation" for possibly drilling wells without the required safety equipment. A diverter, which sits atop the well, is designed to direct any unexpected release of dangerous hydrocarbons safely away from the rig work area. Like blowout preventers, diverters are a last line of defense for drillers. The two agencies swapped letters over several months, with the AOGCC contending it was not seeing the verification it wanted on whether a diverter was used on the exploratory wells. On Dec. 9, the AOGCC threatened the BLM with a public hearing to get answers. Ultimately, Pat Pourchot, the U.S. Interior secretary's special assistant for Alaska affairs, was brought into the discussion. In its March 15 letter, the BLM said it was the applicant for the state permit to drill one of the wells, Wainwright No. 2, but that it had designated the USGS as operator. "Our documentation confirms no diverter was used on the Wainwright well #2," the letter said. But the BLM said the USGS was both the applicant and operator for the other wells, Wainwright Nos. 3, 4, 5, 6, 9 and 10, and it directed the AOGCC to send any correspondence about those wells to a USGS official. Investigation to continue Cathy Foerster, one of the three AOGCC commissioners, told Petroleum News the Alaska Department of Law had advised the agency it probably doesn't have the power to fine the BLM for failure to use a diverter on Wainwright No. 2. But Foerster said the BLM letter is significant, an indication "that the federal government is perfectly capable of self - correcting." The AOGCC now plans to make inquiries to the USGS regarding whether the safety gear was used on the other Wainwright wells. Foerster said the state's objective is plain. "When the federal government comes into our state to operate, we want their assurance that they will abide by our laws like any other operator," she said. The Wainwright matter isn't the only source of friction between the AOGCC and the BLM. The commission has pointedly questioned the federal agency's attention to dozens of derelict "legacy wells" located chiefly in the National Petroleum Reserve - Alaska. USGS - BLM Wells • Missing Required Information Well Name . ; Permit to Drill Number " ° ' Missing,lrifarrnation .P�� Prior Requests-. ': P1N DOI -04 -1A (Ft. Yukon) 2040830 Core analysis Requested 11/5/2009 2040830 Core chips Requested 11/5/2009 2040830 Cuttings samples Requested 11/5/2009 2040830 Mud log Requested 11/5/2009 2040830 Open hole logs - Paper Print Requested 11/5/2009 2040830 Open hole logs - Reproducible Requested 11/5/2009 Franklin Bluffs 1 2051050 As built survey plat Requested 11/5/2009 2051050 Core description and analysis Requested 11/5/2009 2051050 Mud log Requested 11/5/2009 2051050 Open hole logs - Digital Requested 11/5/2009 2051050 Open hole logs - Paper Print Requested 11/5/2009 2051050 Open hole logs - Reproducible Requested 11/5/2009 Wainwright 01 2070650 Core analysis Requested 11/5/2009 2070650 Core chips Requested 11/5/2009 2070650 Location information (coordinates as metes & bounds, Required on Completion Report form coordinates in AK State Plane NAD 27) 2070650 Location information (lat /long datum) Wainwright 02 2071060 Cuttings samples Requested 11/5/2009 2071060 Inclination survey Requested 11/5/2009 2071060 Lithology log Requested 11/5/2009 2071060 Location information (coordinates as metes & bounds, Required on Completion Report form coordinates in AK State Plane NAD 27) 2071060 Location information (lat /long datum) Wainwright 09 2080770 Core chips Requested 11/5/2009 2080770 Core description and analysis Requested 11/5/2009 2080770 Lithology log - Paper Print Requested 11/5/2009 2080770 Location information (lat /long datum) Wainwright 10 2090350 Core chips Requested 11/5/2009 2090350 Core description and analysis Requested 11/5/2009 2090350 Cuttings samples Required on Completion Report form 2090350 Inclination survey Requested 11/5/2009 2090350 Location information (coordinates as metes & bounds, Required on Completion Report form coordinates in AK State Plane NAD 27) 2090350 Location information (lat /long datum) Mud log (required by permit to drill; drilling history states will 2090350 Requested 11/5/2009 not collect mud -gas log at this site. ") Wainwright 03 2080710 In compliance Wainwright 04 2080720 In compliance Wainwright 05 2080730 In compliance Wainwright 06 2080740 In compliance Wainwright 07 2080750 Expired permit: never drilled Wainwright 08 2080760 In compliance Wainwright 11 2090360 Cancelled permti: never drilled AOGCC February 17, 2011 • . Alaska regulators continue pressing BLM Lack of clarity on whether Wainwright gas wells had proper blowout prevention equipment could lead to public hearing, AOGCC warns F ANWED OE 4 6 ZO't Wesley Loy For Petroleum News For months now, Alaska drilling regulators have been asking federal officials to prove they used the required blowout prevention equipment on a series of test wells near the remote village of Wainwright. Thus far the issue remains unresolved — and it might be intensifying. The latest twist: Commissioners with the Alaska Oil and Gas Conservation Commission are threatening to hold a public inquiry in the conflict with the U.S. Bureau of Land Management. a--On "In an effort to maintain a constructive relationship between State and Federal regulatory bodies, the AOGCC is extending the Bureau of Land Management one final opportunity to demonstrate that BLM's Wainwright wells number 2, 3, 4, 5, 6, 9 and 10 were drilled with appropriate blowout prevention equipment," said a Dec. 9 letter to BLM officials in Anchorage. "To date BLM has declined to provide the requested information. This correspondence marks AOGCC's final request prior to proceeding to convene a public hearing on the matter." The letter was copied to Alaska's congressional delegation, Gov. Sean Parnell and the U.S. Environmental Protection Agency. How it started Since the summer, the AOGCC has been trying to verify whether the BLM and its partners used a safety device known as a diverter on wells drilled to test for coalbed gas near the northwest Alaska village of Wainwright. The drilling project is a joint effort involving the BLM, the U.S. Geological Survey, the North Slope Borough and Arctic Slope Regional Corp. The Wainwright issue broke open on June 22 when the AOGCC hit the BLM with a "notice of violation," saying the federal agency appeared to be in violation of state regulations in drilling the wells without the required safety equipment, and improperly securing suspended wells. • In response to letters from the AOGCC, officials with the BLM have attempted to supply P � p Pp Y proof that the diverter was used on at least some wells. On Nov. 16, the BLM supplied the AOGCC with drill site photos as evidence of the use of the diverter during the Wainwright project's 2007 and 2008 drilling seasons. "I hope this information is helpful and provides the clarification you are seeking," wrote Julia Dougan, the BLM's acting state director. Unsatisfactory response Commission Chairman Dan Seamount, in the AOGCC's Dec. 9 letter back to Dougan, said the photos were insufficient, as they were taken at Wainwright wells 1 and 8. Seamount wrote: "Neither of these wells was included in the AOGCC's notice of violation; the wells for which AOGCC requested documentation of diverter usage were the Wainwright No. 2, 3, 4, 5, 6, 9 and 10 wells." Seamount set a deadline of Jan. 31 for the BLM to show its wells were drilled with the proper blowout prevention gear. The AOGCC has authority to regulate drilling statewide, whether on federal, state or private land. Its relations with the BLM have been tenuous for some time, with the commission questioning the federal agency's handling not only of the Wainwright wells but also dozens of old "legacy wells" on Alaska's North Slope. STATE OF ALASKA ALASKA AND GAS CONSERVATION COMMISSO WELL COMPLETION OR RECOMPLETION REPORT AND LOG 1a. Well Status: Oil ❑ Gas ❑ SPLUG ❑ Other ❑ Abandoned ❑, Suspended❑ 1b. Well Class: 20AAC 25.105 20AAC 25.110 Development ❑ Exploratory Q GINJ ❑ WINJ ❑ WAG ❑ WDSPL ❑ No. of Completions: a Service ❑ Stratigraphic Test ❑ 2. Operator Name: ate Q�p°�mp� Susp., or .5 12. Permit to Drill Number: US Geological Survey ate, 10 '`tAl22 /2010 207 -106 3. Address: 6. Date Spudded: 13. API Number: PO Box 25046 MS 939 DFC Denver, CO 80225 7/7/2007 50- 302 - 20004 -00 4a. Location of Well (Governmental Section): 7. Date TD Reached: 14. Well Name and Number: Surface: N7038'40.8" W16001'201.1" 7/10/2007 Wainwright -2 Top of Productive Horizon: 8. KB (ft above MSL): 15. Field /Pool(s): GL (ft above MSL): Total Depth: 9. Plug Back Depth(MD +TVD): 1300 ft 1260-1300 4b. Location of Well (State Base Plane Coordinates, NAD 27): 10. Total Depth (MD + TVD): 1 16. Property Designation: Surface: x- y- Zone- TPI: x- y- Zone- 11. SSSV Depth (MD + TVD): 17. Land Use Permit: Total Depth: x- y- Zone - 18. Directional Survey: Yes No H 19. Water Depth, if Offshore: 20. Thickness of Permafrost MD/TVD: (Submit electronic and printed information per 20 AAC 25.050) 1 (ft MSL) -900 ft 21. Logs Obtained (List all logs here and submit electronic and printed information per 20AAC25.071): 22.Re- drill /Lateral Top Window MD/TVD: 23. CASING, LINER AND CEMENTING RECORD WT. PER SETTING DEPTH MD SETTING DEPTH TVD AMOUNT CASING FT GRADE TOP BOTTOM TOP BOTTOM HOLE SIZE CEMENTING RECORD PULLED 2.5 -in PVC sch 80 land surface 1260 5 5/8 in cement 1160 -1260 bentonite grout 100 -1160 cement land surface -100 ID plate welded 75" bls 24. Open to production or injection? Yes ❑ No F, If Yes, list each 25. TUBING RECORD interval open (MD +TVD of Top & Bottom; Perforation Size and Number): SIZE DEPTH SET (MD) PACKER SET (MD/TVD) NUV 26. ACID, FRACTURE, CEMENT SQUEEZE, ETC. DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED 27. PRODUCTION TEST Date First Production: Method of Operation (Flowing, gas lift, etc.): N/A Date of Test: Hours Tested: Production for Oil -Bbl: Gas -MCF: Water -Bbl: Choke Size: Gas -Oil Ratio: Test Period Flow Tubing Casing Press: Calculated I Oil-Bbl: Gas -MCF: Water -Bbl: Oil Gravity - API (corr): Press. 24 -Hour Rate .♦ 28. CORE DATA Conventional Core(s) Acquired? Yes ❑ No Sidewall Cores Acquired? Yes ❑ No ❑� If Yes to either question, list formations and intervals cored (MD +TVD of top and bottom of each), and summarize lithology and presence of oil, gas or water (submit separate sheets with this form, if needed). Submit detailed descriptions, core chips, photographs and laboratory analytical results per 20 AAC 25.071. H QV 04210 > 4il & r . 3as cons. Goar,381on MO %1 rw� Anrfint +� Form 10 -407 Revised 1212009 CONTINUED ON REVERSE Submit original only 29. GEOLOGIC MARKERS (List all formations and markers encountered): 30. FORMATION TESTS NAME MD TVD Well tested? Ll Yes : No If yes, list intervals and formations tested, briefly summarizing test results. Attach separate sheets to this form, if needed, Permafrost - Top and submit detailed test information per 20 AAC 25.071. Permafrost - Base -900 ft drawdown recovery test. Results showed -100 mD perm. Collected water samples for analyses Nanushuk Formation at total depth: 31. List of Attachments: 32. 1 hereby certify that the f�egoing is true and correct to the best of my knowledge. Contact: Printed Name: Arthur C k Title: Supervisory Geologis Signature: Phone: 303 - 236 -5793 Date: 11/11/2010 INSTRUCTIONS General: This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Alaska. Submit a well schematic diagram with each 10 -407 well completion report and 10 -404 well sundry report when the downhole well design is changed. Item 1b: Classification of Service wells: Gas Injection, Water Injection, Water - Alternating -Gas Injection, Salt Water Disposal, Water Supply for Injection, Observation, or Other. Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPI (Top of Producing Interval). Item 8: The Kelly Bushing and Ground Level elevations in feet above mean sea level. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits (ex: 50- 029 - 20123- 00 -00). Item 20: Report true vertical thickness of permafrost in Box 20. Provide MD and TVD for the top and base of permafrost in Box 28. Item 23: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 24: If this well is completed for separate production from more than one interval (multiple completion), so state in item 1, and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval). Item 27: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut -in, or Other (explain). Item 28: Provide a listing of intervals cored and the corresponding formations, and a brief description in this box. Submit detailed description and analytical laboratory information required by 20 AAC 25.071. Item 30: Provide a listing of intervals tested and the corresponding formation, and a brief summary in this box. Submit detailed test and analytical laboratory information required by 20 AAC 25.071. Form 10-407 Revised 12/2009 Abandonment schematic Wainwright -2 ID late 75" bis Arctic blend cement Drilled 9 7 /8 -in diamet I o .r 6 5 /8 -in steel casing, 51 ft BLS borehole to 51 ft I oc C I � I I U I �— 100 ft BLS 0 0 0 co 0 4 5 5 /8 -in diameter borehole a� d Bentonite abandonment 0 grout 100 -1160 ft 2.5 -in PVC casing m 0 m 0 co N r rr C d E d U bottom of PVC casing: 1260 ft l -------------------- - - - - -- - -- ................ - .......................... « h t # _ x -,• x $ � x a , a e. • I x t ,f r Iv Ll Vv Nri r Y a i } 3 � a • Md ys�" 4 ",i ♦ �� +�° ✓ fi x♦ � � � �7� . a ,i N, f i. " ♦ a + v 1 , ,+t r F , +3 h � ' f ° 1 R Y � ' �. �� Ufa .. ♦ ,. , # r „a. R . 7 lk to r!� • Sir.wLa�. f�I _ .i ► , • s, i. f 1 � �. +r � . r � �: ,.. ; , . , DATE ACTIyi7y Tuesday, June 01, 2010 USGS crew arrives in Wainwright. Begin digging out equipment. Wednesday, June 02, 2010 Digging out equipment. loading equipment for backhaul flight to Anchorage. Thursday, June 03, 2010 Plowing snow and digging out equipment. Tag monitor wells W4, W5, W6, W8 - W4 is plugged at 660 ft, WS at 641 ft. Friday, June 04, 2010 Preparing equipment. Give 72 -hour P &A notice to AOGCC for well W6. Request permission to P &A wells W4 &5 from plug to surface. . Still digging, starting, and moving equipment. Informed that AOGCC inspector will Saturday, June 05, 2010 arrive in Wainwright on Monday. Set rig over W4 and drop 11 /4-in pipe to 660 ft to confirm solid plug. Sunday, June 06, 2010 Set rig over W5 and trip 11 /4 -in pipe to 641 ft to confirm solid plug. C -130 arrives with equipment from Deadhorse. Send equipment to Anchorage on backhaul. Monday, June 07, 2010 Informed that we can't P &A wells W4 or W5 from plug. Move rig to W6 for P &A. Trip 11/4 -in pipe to 1260 ft in W6 and pump glycol to confirm open well. Receive new Tuesday, June 08, 2010 P &A procedures from AOGCC and told inspector must be present to tag top of bentonite. Wednesday, June 09, 2010 Pump 100 ft cement across perfs, bentonite grout to within 100 ft of land surface. Inspector arrives. Thursday, June 10, 2010 Tag top of bentonite grout at 84 ft and cement from there to surface per inspector. Receive permission to P &A wells 4 &5 from plug to surface. Move rig from W6. We're Friday, June 11, 2010 informed that no further work can be done on any wells (including P &A) without the diverter assembly installed - diverter was backhauled to Anchorage. Inspector leaves Wainwright. Saturday, June 12, 2010 Waiting on diverter. Sunday, June 13, 2010 Waiting on diverter. Monday, June 14, 2010 Waiting on diverter. Tuesday, June 15, 2010 Waiting on diverter. Wednesday, June 16, 2010 Diverter arrives at 14:00. Install on well W3, center rig, begin reaming to bottom. Thursday, June 17, 2010 Reaming well. Friday, June 18, 2010 Ream to bottom, circulate, and stablize. Saturday, June 19, 2010 Trip pipe, insert tremie, cement bottom of well. Sunday, June 20, 2010 Ream to bottom but cement didn't set properly. Recement w /heavier mix. Monday, June 21, 2010 Drill out cement with 6-in bit to 1260 ft and flush well. Underream to 12 -in diameter from .1241 -1249 ft. Tuesday, June 22, 2010 underream coal to 12 -in diameter. Standby for Wood Group Production Group to assemble needed stimulation equipment Wednesday, June 23, 2010 Stimulate well. Flush well and fill with glycol mix Thursday, June 24, 2010 Trip in submersible PC pump, drive rods, transducers, heat trace etc. A / r Friday, June 25, 2010 Begin testing V V Saturday, June 26, 2010 Raise pump 8 ft in well. Continue test. Sunday, June 27, 2010 testing Monday, June 28, 2010 testing Tuesday, June 29, 2010 testing Wednesday, June 30, 2010 Raise pump 32 ft in well. Continue test. Thursday, July 01, 2010 testing Friday, July 02, 2010 testing Saturday, July 03, 2010 testing Sunday, July 04, 2010 Kill well with propylene glycol /water mix. Pull pump and all equipment from well. Monday, July 05, 2010 Secure wellhead and clean equipment. Test is on hold for now. Tuesday, July 06, 2010 Remaining drill crew return to Denver for break. Wednesday, July 07, 2010 no work Thursday, July 08, 2010 no work Friday, July 09, 2010 no work Saturday, July 10, 2010 no work Sunday, July 11, 2010 no work Monday, July 12, 2010 no work Tuesday, July 13, 2010 no work Wednesday, July 14, 2010 no work Thursday, July 15, 2010 no work Friday, July 16, 2010 no work Saturday, July 17, 2010 no work Sunday, July 18, 2010 no work Monday, July 19, 2010 no work Tuesday, July 20, 2010 no work Wednesday, July 21, 2010 no work Thursday, July 22, 2010 no work Friday, July 23, 2010 no work Saturday, July 24, 2010 no work Sunday, July 25, 2010 no work Monday, July 26, 2010 Crew returns to Wainwright. Move rig over well and equipment in place. Tuesday, July 27, 2010 Remove production head and install diverter. Clean hole to 1200 ft and circulate Wednesday, July 28, 2010 Finish circulating. Run caliper and gamma loss below 6-in casing. Cargo plane arrives. Thursday, July 29, 2010 Tremie 3 /8 -in gravel in well from 1260 -1220 ft. Fill well with glycol /water. Pull diverter Friday, July 30, 2010 Set pump to 1216 ft and and wire in controls, heat traces, transducers. Saturday, July 31, 2010 Start production test. Sunday, August 01, 2010 testing Monday, August 02 201 testing. Move rig over Wainwri ht -1 and prepare for P &A. 2 Y, $ 0 $ $ $ P P � • / 1 Tuesday, August 03, 2010 testing. AOGCC inspector arrives. Mix and pump cement into bottom of Wainwright -1. `/ V Wednesday, August 04, 2010 testing. Finish P &A of Wainwright -1. Move equipment off well. Thursday, August 05, 2010 testing. Set up over Wainwright -2, trip in tremie pipe and P &A well. Friday, August 06, 2010 testing. Move rig over Wainwright -5 and trip tremie in well. AOGCC inspector leaves but we have OK to continue P &A activities o' Saturday, August 07, 2010 testing. P&A Wainwright -5. Move equipment and set up over Wainwright -8. Trip W- tremie in well: W/ V Sunday, August 08, 2010 testing. P &A Wainwright -8. Move equipment and set up over Wainwright -4. Monday, August 09, 2010 testing. Set up over Wainwright -4, trip tremie in tremie pipe and P &A well. �- y Tuesday, August 10, 2010 testing Wednesday, August 11, 2010 testing Thursday, August 12, 2010 testing Friday, August 13, 2010 testing Saturday, August 14, 2010 testing Sunday, August 15, 2010 testing W 3 Monday, August 16, 2010 testing Tuesday, August 17, 2010 testing. Notify AOGCC of intent to abandon well. Wednesday, August 18, 2010 testing Thursday, August 19, 2010 testing Friday, August 20, 2010 testing Saturday, August 21, 2010 testing Sunday, August 22, 2010 end test. Kill well, pull pump and equipment from well. Monday, August 23, 2010 AOGCC inspector can't make it to Wainwright. Circulate fluid in well and standby. Tuesday, August 24, 2010 Cement bottom of well from 1220 -1040 ft Wednesday, August 25, 2010 tag cement and pump bentonite grout from 1040 -100 ft. Cement from 100 ft to 40 ft. Thursday, August 26, 2010 tag cement. Cement from 40 ft to land surface. Friday, August 27, 2010 pack equipment. Drill crew personnel leave Wainwright. • I MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission TO: Jim Regg, DATE: October 22, 2010 P. I. Supervisor ( FROM: Chuck Scheve, SUBJECT: Surface Abandonment Petroleum Inspector Wainwright #2 PTD# 2071060 Friday, October 22, 2010: I traveled to the USGS Wainwright #2 exploration location to inspect the casing cut off and abandonment of this well. All casing strings were cut off at approximately 4' below original ground level. Cement was found at surface in all casing stings. A cap was welded to the conductor covering all strings. Due to the small diameter of the conductor casing a marker plate was welded to the cap vertically with the required information bead welded to it. SUMMARY: I inspected the casing cut off depth, and the P &A marker plate on the Wainwright #2 well and found all to be in order. Attachments: Photos (2) Surface Abandonment - Wainwright #2 10 -22 -10 • Surface Abandonment — Wainwright #2 PTD 2071060 Photos by AOGCC Inspector C. Scheve 10/22/2010 3 t Ar i! ' xi , u a ` :- •••• Casing cut -off; • :t ; . r , ` cement to surface . . -- ,. * :::•' : - . .--- .,. 1 -. .. i . __F)1. . v , AO ,r ,tros 4, ... 4 " .. - rtt..... ...,.., *.** ' ilk!• a- gg • elf ` ,} -41 e' „ R ' l'"'. . ,° Well marker ,t ` - .. + 0' ef, . `a; - R , ■ Surface Abandonment - Wainwright #2 10 -22 -10 Page 1 of 1 Regg, James B (DOA) From: Joseph Adami Dadami @OLGOONIK.COM] Sent: Tuesday, October 19, 2010 10:46 AM lc vz,'lG To: Regg, James B (DOA) Subject: USGS Arrival in Wainwright Importance: High Mr. Regg, This e - mail is to inform you that today, 10 - 19 - 10, two (2) USGS personnel arrived in Wainwright with the intention of completing the abandonment of the Wainwright USGS wells. USGS sent one driller and a helper with no geologist or engineer. We have been informed by the driller that USGS intends to use NSB equipment and an NSB operator to assist them. They anticipate the start of work some -time this afternoon. Yesterday, 10-18-10, I was contacted by your Prudhoe Bay based Inspector who requested that I inform i USGS personnel upon arrival that 24 hour notification would be required to him prior to placement of the well monuments. I have informed the USGS personnel of this request. Additionally, as a representative of the surface landowner, I informed them of the requirement to remove the casings and conductors to -3' of the tundra surface below the pad, and that in the event that the excavation exceeded four (4') feet in depth, a 1.5:1 side slope would be required per 29 CFR 1926, Subpart P. The USGS driller acknowledged this requirement. I am on site in Wainwright and will remain here until the operations have been completed to document the work. Respectfully, �aw SR. HSEQ CONSULTANT ' NOV 1 5 201b OES, INC. 360 WEST BENSON BLVD, STE. 302 ANCHORAGE, AK 99503 907 - 444 -0745 10/22/2010 • • MEMORANDUM ~ _ State of Alaska Alaska Oil and Gas Conservation Commission TO: Jim Regg ~~( DAVE: August 6, 2010 P. I. Supervisor ~~,,~ " ~,D" ~~~~ ~;~ FROM: Lou Grimaldi Petroleum Inspector SUBJECT: Wellbore Plugs Wainwright #2 USGS PTD#2071060 Tuesday, August 3, 2010; I traveled from Deadhorse to Wainwright to witness the setting of cement and grout plugs on well's "Wainwright #1 and #2". I had previously witnessed the plugs on Wainwright #1 and the rig had moved over to this well (#2). For understanding, the term "Tremie" pipe is a water well drillers name for small diameter wash pipe and in this job consisted of 1 '/4" I.D./ 1 '/2" O.D galvanized schedule 40 plumbing-type pipe. It should be noted that all pipe used (with the exception of pup's) was nearly equal in length at 21' 0" Thursday, August 5, 2010; The rig ran 1291' of "Tremie" pipe and tagged bottom, this was approximately 30 feet deeper than expected. The rig circulated hot water to remove the Glycol. At bottoms up we started seeing water with dark particulate matter that appeared to be coal flakes. I discussed this with Jeff Edam (USGS rep). We calculated the new volume as this hole had been undereamed and proceeded to pump 86' gals of HES Permafrost "C". This volume in a worse case scenario and would cover the open hole and 2 7/8" monitor tube up to 1060' (EOT @ 1260'). The rig pulled the washpipe to 1008' and circulated warm water. It was apparent that we were still in cement and the decision was made to continue pumping and we lifted approximately 75 gallons of good cement back to surface. This was more than what was left in the washpipe so I considered this to be top of cement. The rig mixed and pumped 162 gallons of "Volclay" bentonite grout in batches while pulling 105' of wash pipe between batches. This volume should have left us ~r 200' below surface but showed up at approximately 400' .The well was either collapsing or freezing. As the returns were good grout I allowed for them to pull up to 126' from surface and pump the top cement plug. Twenty eight gal's (135 lineal feet) of HES Permafrost C cement slurry was mixed and pumped in 4 batches. I pulled a sample out of the second batch which ~ weighed 15.6 ppg heavy. This was circulated to surface with nice cement returns. The rig pulled the remainder of Tremie pipe and shut down operations for the evening. 2010-0806_Plug_W ainwright-2_lg. doc 1 of 4 • • Friday, August 6, 2010; This morning I travelled back to location and inspected both plug samples which were setup and hard. I marked both samples by scratching, which plug, my name, the date they were laid and the well name. I ,~ showed this to Jeff Edam and his crew and instructed them to mark all future samples in this fashion. Attachments: photos (4) Non-Confidential 2010-0806_Plug_W ainwright-2_lg. doc 2 of 4 • P&A -Wainwright (BLM) Coalbed Methane Well #2 PTD 2071060 Propylene glycol (foreground); "Steam Jenny" style heater (mid frame); grout mixing equipment (background) Rig tripping pipe 2010-0806_Plug_Wainwright-2_lg.doc 3 of 4 Photos by AOGCC Inspector L. Grimaldi August 5-6, 2010 Mixing grout for plugging well Casing stub - Wainwright #2 2010-0806_Plug_W ainwright-2_lg. doc 4 of 4 • ~~I~~~ O[~ ~~Q~G~a 1~..%~~.~o~a,~ Arthur Clark Supervisory Geologist US Geological Survey P.O. Box 25046 Denver, CO 80225 Re: Exploratory Field, Wainwright Undefined Gas Pool, Wainwright-2 Sundry Number: 310-130 Dear Mr. Clark: Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. A person may not appeal a Commission decision to Superior Court unless rehearing has been requested. Sincerely, Daniel T. Seamount, Jr. / ~ Chair DATED this ~!~ day of April, 2010. Encl. • ~~ ~.,~ STATE OF ALASKA ~~' APR 1 4 201Q ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS'~~~~1pr' ~~ ~ ~~ ~~ .,Q~ 1. Type of Request: Abandon Q Plug for Redrill ^ Perforate New Pool ^ Repair Well ^ Change Approved Program ^ Suspend ^ Plug Perforations ^ Perforate ^ Pull Tubing ^ Time Extension ^ Operations Shutdown ^ Re-enter Susp. Well ^ Stimulate ^ Alter Casing ^ Other: ^ 2. Operator Name: 4. Current Well Class: 5. Permit to Drill Number: (,` ~ d ~ ~ ` US Geological Survey Development ^ Exploratory Q o ~ O 7' ti!/ 3. Address: Stratigraphic ^ Service ^ 6. API Number: PO Box 25046 MS 911 DFC Denver, CO 80225 S4 ' ~O/ • 2 aG~/. Q U 7. If perforating, Gosest approach in pool(s) opened by this operation to nearest 8. Well Name and Number: property line where ownership or landownership changes: Spacing Exception Required? Yes ^ No ^ Wainwri ht-2 • 9. Property Designation (Lease Number): 10. Field/Pool(s): yM•i ,*%~~'_-~1.~/.~ri ~/-~~,~~ D Eir ~o~a.~io~ EX ~or fie 11. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD (ft): 1613 Plugs (measured): Junk (measured): 1300 ft 1300 ft ~ 1300 ft 1260 - 1300 ft Casing Length Size MD TVD Burst Collapse Structural Conductor 50 ft 6 518 Surface Intermediate Production Liner 1260 ft 2 1/2-in PVC Perforation Depth MD (ft): Pertoration Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): N/A Packers and SSSV Type: Packers and SSSV MD (ft) and TVD (ft): 12. Attachments: Description Summary of Proposal Q 13. Well Class after proposed work: Detailed Operations Program ^ BOP Sketch ^ Exploratory ~ Development ^ Service ^ 14. Estimated Date for 8/15/2010 15. Well Status after proposed work: Commencing Operations: Oil ^ Gas ^ WDSPL ^ Suspended ^ 16. Verbal Approval: Date: WINJ ^ GINJ ^ WAG ^ Abandoned ^~ Commission Representative: GSTOR ^ SPLUG ^ 17. I hereby certify at the foregoing is true and correct to the best of my knowledge. Contact Printed Name Art Clarl Title Supv Geologist Signature Phone 303-236-5793 Date t' 3/23/2010 ry ~ t7 COMMISSION USE ONLY ess Sundry Number: ~ ~ ~ - (3 it ti t ve may w n a Conditions of approval: Notify Commission so that a represen Q~ Plug Integrity ~ BOP Test ^ Mechanical Integrity Test ^ Location Clearance ^^ Other: +~ / jOCJiKt /Llf~ ~OGU.r,~Cn~.-T'r•o~ /Jt t'e/'t f 4t"~r We~iY i~ STGC~ ~C.r' e tin n, ~ SS: ~ Y /Ud f ; ~ . r •~ CCV// Subsequent Form Required: ~Q • YD / / APPROVED BY ~ ~~ / O Approved by: COMMISSIONER THE COMMISSION Date: J 6/ MS APR 1 `~ •` ; . ^~~ ~~ ~~ O Submit in Duplicate Form 10-403 Revised 1/2010 _ _ $ + t`; rp Plug and Abandon procedures for Wainwright wells 1,2,4,5,6,8 . • Drill rig will be positioned over well • 1 '/4-in steel pipe will be lowered into the Z '/2-in PVC pipe to bottom of well • High-solids bentonite grout will be mixed in ahigh-pressure grouter and pumped through the 1 '/4-in pipe to the bottom of well • Grout will be pumped from the bottom of the well upward towards land surface, displacing the water and propylene-glycol that are currently in the well. These fluids will be contained at surface and disposed of at the approved fluid disposal pit. • The 1 1/4-in will be removed from the well as mixing and pumping continue (the bottom of the pipe is always kept below grout level) until the grout and pipe are 100 ft below land surface (bls). • Arctic-blend cement will be mixed and pumped from 100 ft bls to land surface: ~- All 1 '/4-in pipe is removed from well. No +; ~ A ~ y~ • Conductor and liner casings are cut off 3 ft bls • A steel plate, with pertinent well information welded to its surface, is welded to `~ ~'~ ~css the top of the conductor casing • Hole is filled with native material and site is leveled to grade • Rig is removed from well t • • Wainwright-1 and 2 Daily Drilling Logs Friday June 8, 2007: Drill crews arrive in Wainwright 6/9/07-6/11/07: Equipment and site preparation 6/12/07: Mud rotary drill 8 3/a" hole to 75'. Set and cement 75' of 6 5/8" OD steel casing. 6/13/07: Final site and equipment preparation. 6/14/07: Core to 176'. 2.5" diameter core, 5" diameter hole. 6/15!07: Core to 350'. 6/ 16/07: Core to 525' . 6/17/07: Core to 725'. 6/ 18/07: Core to 865' . 6/19/07: Core to 1025'. 6/20/07: Core to 1188'. 6/21/07: Core to 1275'. 6/22/07: Core to 1366'. 6/23!07: Core to 1375'. Ream tight spots. from hole. 6/24/07: Continue reaming. Core to 1433'. 6/25/07: Pull steel to clean bit and core tube. Core to 1470'. 6/26/07: Core to 1560'. 6/27/07: Core to 1613'. Drill bit becomes stuck and drill rods break at 780'. Install fishing tool and latch on to steel. Pull partial fish. Top of broken rods now at 957'. 6/28/07: Continue fishing. Latch on to steel several times but can't retrieve. Run gamma and density logs through broken rods from 1613' to surface, resistivity and caliper from 957' to surface. Begin reaming hole to 5 5/8" diameter. 6/29/07: Ream to 900' . ~O'a--O~e `J ~v ~'"~d Co ..:._ i • • 6/30/07: Ream to 957' and circulate to warm well. Pull rods and run sonic logs. Begin tripping in straddle-packer system to try and conduct permeability test and collect water samples from 896'-910' coal zone. 7/1/07: Install packer system and begin developing well. Having problems with development line freeze-up and well appears to me making very little, if any, fluid. Pull development pipe and install transducer to monitor overnight well recovery. Fabricate deflection wedge to attempt to drill past broken rods. 7/2/07: Pull transducer -well had no recovery; either screen was plugged or coal zone is in permafrost -and remove packers from hole. Trip steel to 957' and circulate to clear well. Mix ~ 100 gallons Arctic cement and pump to bottom. Trip steel from well, drop deflection wedge, and trip steel behind to ensure wedge is firmly set in place. Pull steel and standby for cement to cure. 7/3/07: Trip steel and ream to 955' where wedge is encountered. Drill slowly past wedge, drill another 4-5', then begin binding up against broken rods. Continue drilling in an attempt to get away from rods but without success. Binding becomes severe. Order sub from Deadhorse that will allow us to attempt to drill past using heavy rotary, rather than light-weight core rods. 7/4/07: Waiting for sub. Circulating from 950'. 7/5/07: Attempt to drill past wedge with larger pipe but continue to bind. Pull rods and install long-term temperature monitor well to 940' for UAF. Fill well with 50-50 mix Dow Frost and water and grout outside of well with bentonite grout and cement. 7/6/07: Prepare site and move equipment ~ 50' to SW to drill well for permeability testing and water sampling from 1250' coal seam. 7/707: Drill 8 3/a" hole to 50'. Set and cement 6 5/8" OD steel casing. Standby for cement cure 7/8/07: Rotary drill 5 5/8" hole to 400'. 7/9/07: Rotary drill to 1000'. 7/10/07: Equipment repair. Rotary drill to 1295' and circulate. 7/11/07: Trip steel from well. Try to run geophysical logs but can't get tools past 1120' Equipment repair. Trip in bit and begin reaming from 1100'. 7/12/07: Ream to 1295'. Trip steel and run multi-function, caliper, and sonic tools from 1295' to surface. Install straddle packer system to isolate and test 1242'-1250' coal seam. Begin air development. a 7/13/07: Finish air development -having problems with freeze up in development pipe. Set pressure transducer and conduct overnight well recovery test. 7/14/07: Finish recovery test. Pull transducer and bail water samples from well. Deflate packers and remove from well. Set long-term temperature monitor well for UAF to 1259', filled with 35-65 mix of Dow Frost and water. Fly core and test equipment to Anchorage via air charter. 7/15/07: Grout around temp well using bentonite grout and cement. Install hole enclosures, clean site, winterize and pack equipment. 7/16/07: All personnel leave Wainwright. • ~ Colombie, Jody J (DOA) From: Seamount, Dan T (DOA) Sent: Tuesday, November 10, 2009 10:21 AM To: Colombie, Jody J (DOA) Subject: FW: Wainwright Please put in files -----Original Message----- { ~ ~Q From: Greg_Noble@blm.gov [mailto:Greg_Noble@blm.gov] ~ry~ r" ~ Sent: Monday, November 09, 2009 10:01 AM « To: Seamount, Dan T (DOA) Subject: Wainwright Dan, Called and left message for you with your staff assistant. I would iike to speak with you. I am not pleased with your letter of support. Please call me. Greg 7 Noble Energy Section Chief (907) 267-1429 "Seamount, Dan T (DOA)" <dan.seamount~ala ska.gov> 11/06/2009 11:40 AM Greg, Gre~ Noble@ak.blm.~ov FW: Here are your courtesy first to see copies. dan From: Colombie, 7ody 7 (DOA) Sent: Friday, November 06, 2009 11:39 AM To: Seamount, Dan T (DOA) Subject: To cc Subject .„,....-....~.. ..~...,._. „~.. . ~'~~'d[~~~ NQ ~ ~ ~ 200~ 1 ~ . ]ody 7. 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) [attachment "BLM Wainwright 11-6-09.pdf" deleted by Greg Noble/CTF/AK/BLM/DOI] [attachment "USGS Wainwright 11-5-09.pdf" deleted by Greg Noble/CTF/AK/BLM/DOI] • ,~ ~~~~ ~~d~ ~ ~ ~" '.; 4 ~ ~ .~ ~" ~ ?: a ~ ~`''4 ~ ~~ ~ Y k & 1 ~'"~, ( ~ ~c h ° ~ i ' ~y ~~ ~ ~~ ~ b~ ~ ~7, 6 ~ ~ ~ ~ ~ 4 t. ~ i F y E, ~' ~°~,~ t ~ ~ ~~;~ ~ ~ f ~ ~ ~' ~ ~ ~m.s b ~ ~. ~ $ ~ ~~ ~ n , ~ ~~ ~, ;} k ~ R ~ ~ K R ~ ~ r_ r~ ~ ~ @ ~~,~ ~°~5 ~~~ ~ ~ ~ SEAN PARNELL, GOVERNOR ~- ~~ ~ ~. ~ ~. ~~ ~.=`w: .~`~:t' ~ ~ ° ~~ t ~,:~ ~~ ~~ `~.~ .~~~ ~~ ~ ~*~~+ ~~~~r ~ t~Lt~-7~ Da~V Lusi1 l7ra--7 ~ 333 W. 7th AVENUE, SUITE 100 CO1~T5ERQATI011T COrII-IISSIOI~T ~ ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Greg Noble Section Chief - Energy Section Bureau of Land Management 4700 BLM Road Anchorage, Alaska 99507 Dear Mr. Noble: November 6, 2009 ~~~~.~~~~.. ''~ `' ~`' ~i~~~; This letter responds to your November 9, 2009 email expressing displeasure with my November 5, 20091etter. While the November 5 letter may not have been what you were expecting, the AOGCC is statutorily charged with assuring compliance with our drilling regulations. The AOGCC remains amenable to resolving this matter without the necessity of a public hearing. To that end, Guy Schwartz, an AOGCC petroleum engineer, will contact Art Clarke to discuss the situation with him. If you would care to participate in that dialogue, please contact Guy at 907-793-1226. Sincerely, Daniel T. Seamount, Jr. Chair i ~ i ~ I ~ ~ i ~ ~ r r .~ ~ ~ ~-`^~ ~, 4 ri G ,~~ ~ ~ ~ ~ f ~ ~ ~, b ~ ~s N ~ ~ - ~ ~ t~;+~ '~' r,~ ~ ~ ~ ~ ~ t~ ~, ~ f~ t ~ ~n r A ~t ~ f3 7 ~ ~ ~ ~ ~ ~ ~ '- ~~ r ~ ~ _ ~ ~ ` ~ ~ ~ ~ " ~ ~ ~ ~ ~ r ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~ ~ ~ ~ ~ ~ '~ SEAN PARNELL, GOVERNOR ~a~~ ~ ~_k ~ ~ ~~~ ~ P ~ 7 ~ ~ ~ ~~,~ ` ._ ~, ~:: €_~.,~ ~.~ ~ ~ ~+ ~t~~~~~+ ~a~~ ~I~ t~l`i~ 17~7 ~ v~ I CO1~T3ERQATIOI~T COMr-IIS51O1~T ~ 99501 3539 ANCHORAGEEA ASKA r ~ PHONE (907) 279-1433 FAX (907) 276-7542 November 6, 2009 Greg Noble Section Chief - Energy Section Bureau of Land Management 4700 BLM Road Anchorage, Alaska 99507 Dear Mr. Noble: .,~,~y ~t~ ~i V L.'~u~# ;~~1~~U . ,: ..~ ._ 'ya~4~' This letter is a follow-up to discussions regarding the USGS's ongoing violations of AOGCC regulations at the Wainwright, AK exploratory coal bed methane project. In those discussions you questioned the AOGCC's support for the coal bed methane proj ect. AOGCC strongly supports the project. However, that support is predicated on compliance at Wainwright with AOGCC regulations. Wainwright well operations are continually conducted in violation of AOGCC regulations. Some of those violations, including well work undertaken without a permit, are very serious. The AOGCC's prior efforts to obtain regulatory compliance have essentially been ignored. The AOGCC remains amenable to resolving these issues informally. But as much as the AOGCC supports the project, we are rapidly approaching a point where other options need to be considered, including a public hearing regarding the violations. To the extent you may be able to obtain or encourage USGS compliance with AOGCC regulations, we welcome your support. In closing, let me again express the AOGCC's support for the program and the hope that once the compliance issues are resolved it is a resounding success. Sincerely, Enclosure i~ Daniel T. Seamount, Jr. Chair ~ ~ • Art Clark, Supervisory Physical Scientist USGS CR RM WRD Box 25046, Denver Federal Center Mail Stop 939 Denver, CO 80225-0046 Gary Reimer, District Manager USGS, Anchorage District Office 4700 BLM Road Anchorage, AK 99507 Leslie Holland-Bartels, Regional Executive - Alaska Area USGS WR AA DO 4210 University Drive Anchorage, AK 99508-4626 Anne Kinsinger, Western Regional Director USGS WR -- DO 909 1 st Avenue, Suite 704, 7th Floor Seattle, WA 98104-1055 Peter Lyttle, Acting Associate Director for Geology USGS HQ -- GD 12201 Sunrise Valley Drive, Mail Stop 911 Reston, VA 20192-0002 Thomas P. Lonnie, State Director Bureau of Land Management Alaska State Office 222 W 7th Avenue # 13 Anchorage, Alaska 99513 Bob Abbey, Director BLM Washington Office 1849 C Street NW, Rm. 5665 Washington DC 20240 ~ ~l r ~v 1 I~`- . - 4 t i 4 `~ i f f / ~r C ~ , ~ I~ ~'4' ~ V t ~ l' j ~` ~ { k ` I' F~.r , L VN'tF ~~ `.Iti \~~1t11 ~P''.~ r ~~! C ~ _ _ ~ f . ~' ` ~ . _ ~ .~ . . ~ ~'_ ~ P 6 ~ y 6 ~'4 t ALASSA ou AHD ~5 COI~SER~ATIOI~T COM~'IISSIOI~T November 5, 2009 ~ ~~ fo~ ~ f ~ SEAN PARNELL, GOVERNOR a F ~ ~^ 333 W. 7th AVENUE, SUITE 100 ~5~ ANCHORAGE, ALASKA 99501-3539 ~ PHONE (907) 279-1433 , FAX (907) 276-7542 Art Clark, Supervisory Physical Scientist Gary Reimer, District Manager USGS CR RM WRD USGS, Anchorage District Office Box 25046, Denver Federal Center Mail Stop 939 4700 BLM Road Denver, CO 80225-0046 Anchorage, AK 99507 Dear Mr. Messrs: ~`~¢ ~~~' N~ ~j ~- ~ ZQa~ On September 9, 2009 the Alaska Oil and Gas Conservation Commission (AOGCC) wrote to request compliance with AOGCC regulations at the Wainwright, AK exploratory coal bed methane project. The USGS provided no response. Because Wainwright well operations are being conducted in violation of AOGCC regulations, and because some of those violations, including well work undertaken without a pertnit, are very serious, the AOGCC is making a final attempt to resolve these issues informally. The following actions are required in order for the USGS to bring its Wainwright operations into compliance with AOGCC regulations: Wainwright #6 (PTD 208-074 ) - Submit AOGCC forml0-407 documenting 2009 activities in detail. (as per 20 AAC 25.070 (3)) - Submit a current wellbore drawing. (as per 20 AAC 25.300) - Submit hard and digital copies of all logs obtained drilling and completing the well. (as per 20 AAC 25.071 (6)) Wainwright #9 (PTD 208-077) - Submit AOGCC form 10-407 documenting all activities including the P& A. (as per 20 AAC 25.070 (3) ) - Submit a current wellbore drawing. (as per 20 AAC 25.300) - Submit hard and digital copies of all logs obtained drilling and completing the well. (as per 20 AAC 25.071 (6)) - Submif Core sample chips. (as per 20 AAC 25.071 (4) ) - Submit Core description and analysis (as per 20 AAC 25.071 ( 3)) - Submit Lithology log (as per 20 AAC 25.071(3)) Wainwright #10 ( PTD 209-035) - Submit AOGCC form 10-407 documenting all activities including the P& A. (as per 20 AAC 25.070 (3) ) - Submit a current wellbore drawing. (as per 20 AAC 25.300) - Submit hard and digital copies of all logs obtained drilling and completing the well. (as per 20 AAC 25.071 (6)) - Submit Core sample chips. (as per 20 AAC 25.071 (4) ) - Submit Core description and analysis (as per 20 AAC 25.071 ( 3)) - Submit Lithology log (as per 20 AAC 25.071(3)) - Submit inclination log (as per 20 AAC 25.050 (2)) Additional wells out of compliance as referenced in Attachment #1 - September 9, 20Q9 letter are: Wainwright # 1 (PTD 207-065_) - No hardcopies of open hole logs were submitted (as per 20 AAC 25.071 (6)) - No core chip samples submitted(as per 20 AAC 25.071 (4) ) - No core description submitted(as per 20 AAC 25.071 ( 3)) - No core analysis submitted(as per 20 AAC 25.071 ( 3)) - No header information on the .pdf digital graphics files submitted on dataset number T14024. ( as per 20 AAC 25.071 (7)) Wainwri~ht #2 (PTD 207-106) - No washed and dried samples submitted (as per 20 AAC 25.071 (2)) - No lithology / sample log submitted ( as per 20 AAC 25.071 (1)) - No core chips submitted(as per 20 AAC 25.071 (4) ) - No core description submitted(as per 20 AAC 25.071 ( 3)) - No core analysis submitted(as per 20 AAC 25.071 ( 3)) - No header information on the .pdf digital graphics files submitted on dataset number T14024 ( as per 20 AAC 25.071 (7)) - No directional survey submitted. (as per 20 AAC 25.050 (2}) Franklin Bluffs 1 (PTD 207-106) - No mud logs submitted. ( as per 20 AAC 25.071 (1)) - No dry samples submitted (as per 20 AAC 25.071 (2)) - No as-built submitted (as per 20 AAC 25.070(2)) - No core analysis submitted(as per 20 AAC 25.071 ( 3)) - No core description submitted(as per 20 AAC 25.071 ( 3)) - No open hole logs submitted (hardcopy nor digital) (as per 20 AAC 25.071 (6)) DOI-041A (PTD 207-1Ob) - No mud logs submitted. ( as per 20 AAC 25.071 (1)) - No dry samples submitted (as per 20 AAC 25.071 (2)) - No OH logs submitted (hardcopy nor digital data) (as per 20 AAC 25.071 (6)) - No core chip samples submitted(as per 20 AAC 25.071 (4) ) - No core analysis submitted(as per 20 AAC 25.071 ( 3)) i . C = [__r ,. _ °' a~ ~'` '' i'' ~ ~ ~~ ~ I FJ ~ ( ~ , 4 "" ~ i; ' ~ ~ B '~ ~ ! ~' i C i k, , ~ l ; ~ ~ I ~-_ h ~ - ~ ~ ~t ~ ~ ~ ~_~ ~` , p ~ ~ t ~ ~. ` ) ~ '~ ~ fr _ ~ F ~ ~ ~~ " ~G ~ ~~`s ~ F~ 4 g s~ ~ ~ ~~~~w ` ~ `;~~ ~yn SEAN PARNEtL, GOVERNOR ~,~~~ ~~j ~~ F"~ 333 W. 71h AVENUE, SUITE 100 ~~~~~~~'~~~~ ~~~~~~~~ ~~' PHONORA 907)279K4339501-3539 FAX (907) 276-7542 September 9, 2009 Art Clark, Supervisory Physical Scientist Gary Reimer, District Manager USGS CR RM WRD USGS, Anchorage District Office Box 25046, Denver Federal Center Mail Stop 939 4700 BLM Road Denver, CO 80225-0046 Anchorage, AK 99507 Dear Mr. Messrs: The U.S. Geological Survey (USGS) has again failed to meet the Alaska Oil and Gas Conservation Commission's (Commission) regulatory requirements for exploratory coal bed methane wells drilled near Wainwright, Alaska. During the current drilling season, the USGS failed to file Sundry permit applications - required by 20 AAC 20.015, 20 AAC 25.280 and 20 AAC 25.110 - for the following operations: 1. repairing of monitor well Wainwright 6, 2. plugging and abandoning of well Wainwright 9, and 3. plugging and abandoning of well Wainwright 10. The USGS also failed to file, in a timely manner, weekly operations summaries for the current Wainwright exploratory drilling program. These summaries are authorized under 20 AAC 25.300. Alaska Statute 31.05.027 and Regulation 20 AAC 25.S15 require Federal agencies to conform to the Commission's permitting and reporting requirements. Without permit applications in advance of well operations, it is not possible for the Commission to review proposed operations to ensure that they meet Alaska's statutory requirements to prevent waste, protect correlative rights, and improve ultimate recovery while protecting underground freshwater, health, safety and the environment. Without weekly operations summaries, the Commission cannot, in a timely manner, review actual well operations to ensure conformance with our requirements. The current failures reflect a continuing pattern of poor compliance by the USGS and the Bureau of Land Management (BLM) over the past five years. On May 23, 2008, the Commission issued Conservation Order No. 600 (CO 600), which found that the BLM had drilled the Wainwright No. 2 exploratory coal bed methane well before the Commission received or approved a Permit to Drill application for the well. This inaction drew the BLM and the USGS, the operator for the well, a rebuke from the Commission. CO 600 also concluded that the BLM and the USGS had not submitted all information required for the Wainwright No. 1 and No. 2 exploratory wells. CO 600 ordered BLM and the USGS to submit, by June 23, 2008, the reports and information required by 20 AAC 25.070 and 20 AAC 25.071. Attachment 1 presents the continued reporting deficiencies for Wainwright No. 1 and Wainwright No. 2 along with reporting deficiencies for the Franklin Bluffs No. 1 and DOI-04 No. lA exploratory wells that were drilled about five years ago. ~ U.S. Geological Survey September 9, 2009 Page 3 of 3 Attachment 1 Continued Reporting Deficiencies for BLM and USGS Wells ~ Wainwright 1 No hardcopies of open hole logs were submitted (PTD 207-065) No core chip samples submitted No core description submitted No core analysis submitted No header information on the .pdf digital graphics tiles submitted on dataset number T14024. Wainwright 2 No washed and dried samples submitted (PTD 207-106) No lithology / sample log submitted (hard copy nor digital) No core chips submitted No core description submitted No core analysis submitted No header information on the .pdf digital graphics files submitted on dataset number T 14024 No directional survey submitted (hardcopy nor digital) Franklin Bluffs ] No mud logs submitted (hardcopy nor digital data) (PTD 205-105) No dry samples submitted No as-built submitted Core cut and was apparently directly sent to Alaska Geological Materials Center No core analysis submitted No core description submitted No open hole logs submitted (hardcopy nor digital) DOI-04 1 A No mud logs submitted (hardcopy nor digital data) (PTD 204-083) No dry samples submitted No open hole logs submitted (hardcopy nor digital data) No core chip samples submitted No core analysis submitted No core description submitted Density and porosity data missing from submitted digital data. (407 states that those types of logs were run.) 1 ~ ,~, ~..~~ DATA SUBMITTAL COMPLIANCE REPORT 8/18/2009 Permit to Drill 2071060 Well Name/No. WAINWRIGHT 02 Operator U S DEPT OF INTERIOR API No. 50-301-20004-00-00 MD ND Completion Date Completion Status Current Status UIC N REQUIRED INFORMATION Mud Log Yes Samples No Directionai Survey No DATA INFORMATION Types Electric or Other Logs Run: (data taken from Logs Portion of Master Well Data Maint Well Log Information: Log/ Electr Data Digital Dataset Log Log Run Interval OH / Type Med/Frmt Number Name Scale Media No Start Stop CH Received Comments ED C Las 17585 Gamma Ray 918 1130 2/13/2009 Depth, GR, Cal, Tens, Time w/other LAS files and TXT files Well Cores/Samples Information: Sample Interval Set Name Start Stop Sent Received Number Comments Cores and/or Samples are required to be submitted. This record automatically created from Permit to Drill Module on: 6/5/2008. ADDITIONAL II~FORMATION Well Cored? Y/ 1~ Daily History Received? ~'~ N Chips Received? '"t`7'1~ Formation Tops ~Y~d N Analysis ~~~- Received? i ~ Comments: Compliance Reviewed By: Date: ~ Maunder, Thomas E (DOA) ~ From: Maunder, Thomas E (DOA) Sent: Friday, July 31, 2009 2;52 PM To: 'Arthur C Clark' Cc: Davies, Stephen F(DOA); Tom Mqrtensen Subject: Wainwright 01 (207-065) & Wainwright 02 (207-106) ~~, ~i~~r ~~~ ~~, 3V{~~~a~~, i ~~ ~~rai~~~~ t~~ ~~~ ~o~ ~,r~~ri~~~ ~~ ~~~7~~~ ~~~ t~~~~~e~~~ ~~ ~~~~~~~~: ~~a ~~ ~~~~~~ ~F ~p~r~~ti~r~~, f~r b~itl~t ~sr~if~ it `s~ ~f~~d t~i~t ~t`i~ w~il~ ~+v~r'~ ~l~v~l~~d ~~ Itartg f~r`t~ t~t~i~r~i~fti~~ rr~~r~i#~r ~~Il~ t~r U~. ~rr t;~~ ~~t~l 4t~~ ~~r~~t~; ~:5" F~~e/~ i~ li~t~d i~i bi~~l~ ~2 ~~~ir~g, ~~ f~r V1/~ir~wrig~it ~7 but fF~~r~ i~ ~~ ~i~i~~- ~~at€~ ~ ~,~ ~~~~t ~~ s~t, ~i~ ~a~ ~~~i~a~ ~~i~at~~a~ ~ ~ ~~ ~~ ~ ~1~~, ~~~~d~'i ~~ ~~ in t~~ rc~~ir~~ ~~ti~ ~ ~~ ~~ ~~ r~9~~ '~~~t~k~ ir~ ~dv~t~~~: ~~r~ Ni~ur~d~r, P~ ~~~~ 7/31 /2009 • - +~~~ ~ STATE OF ALASKA ` ALASKA OIL AND GAS CONSERVATION COMMISSION ., :"~~ WELL COMPLETION OR RECOMPLETIOI~,~tEPORT AND LOG 1a. Well Status: Oil ~ Gas ~ Plugged ~ Abandoned ~ Suspended ~• 20AAC 25.105 20AAC 25.110 ~ GINJ~ WIIVJ^ WDSPL~ WAG^ Other^ No.ofCompletions: 1b. Welf Class: ° ~?`~3aSlOT~ DeV~I0~1'1"I~Fik ~-~ Exploratory0 Service ^ StratigraphicTest^ 2. Operator Name: US Geological Survey 5. Date Comp., Susp., or 7,~r- Aband.: 07 2. Permit to Drill Number: 207-106 ~ 3. Address: PO Box 25046, MS 406, Denver Federal Center, Denver, CO 80225 6. Date Spudded: ~3.t1q 7/7/2007 • ~. 13. API Number: 50-301-20004-00 • 4a. Location of Well (Governmental Section): Surface: 890' FNL, 2318' FEL Sec 24 T15N R32W U.M. 7. Date TD Reached: 7/10/2007 14. Well Name and Number: Wainwright 2• Top of Productive Horizon: Same 9~. (0~/.5~/ ~/60 - d/$ yy ~ 8. KB (ft above MSL): 30 , Ground (ft MSL): 25 15. Field/Pool(s): N/A Total Depth: Vertical Well - 1300 ft 9. Plug Back Depth(MD+TVD): 1295 4b. Location of Well (State Base Plane Coordinates, NAD 27): 4~ 5~~~: X- 9 3~g~/~ y- ~o~OCj9 /~Z- Zone- '7 10. Total Depth (MD + ND): • 1295 16. Property Designation: ~~ "~ City of Wainwright TPI: x- y- f'yirric ~(S Zone- Total Depth: x- y- ~Z,/;~Zone- 11. SSSV Depth (MD + ND): na 17. Land Use Permit: ~r3~a~ 18. Directional Survey: Yes ~ No Q (Submit electronic and printed information per 20 AAC 25.050) 19. Water Depth, if Offshore: N/A (ft MSL) 20. Thickness of Permafrost (ND): - 900 ft 21. Logs Obtained (List all logs here and submit electronic and printed information per 20 AAC 25.071): gamma, resistivity, caliper, density, sonic 22. CASING, LINER AND CEMENTING RECORD CASING WT. PER GRADE SETTING DEPTH MD SETTING DEPTH TVD HOLE SIZE CEMENTING RECORD AMOUNT FT TOP BOTTOM TOP BOTTOM PULLED 6 5/8 .280 wall sch 40 0 80 0 80 9.875" cement from bottom-up 23. Open to production or injection? Yes ~ No ~ , If Yes, list each 24. TUBING RECORD interval open (MD+TVD of Top & Bottom; Perforation Size and Number): SIZE DEPTH SET (MD) PACKER SET (MD) Open hole below 6 5/8" casing to TD N/A 25. ACID, FRACTURE, CEMENT SQUEEZE, ETC. DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED N/A 26. PRODUCTION TEST Date First Production: N/A Method of Operation (Flowing, gas lift, etc.): Date of Test: Hours Tested: Production for Test Period Oil-Bbl: Gas-MCF: Water-Bbl: Choke Size: Gas-Oil Ratio: Flow Tubing Press. Casing Press: Calculated 24-Hour Rate .• Oil-Bbl: Gas-MCF: Water-Bbl: Oil Gravity - API (corr): 27. CORE DATA Conventional Core (s) Acquired? Yes ^ No ^~ ` Sidewall Cores Acquired? Yes ^ No Q_ If Yes to either question, list formations and intervals cored (MD+ND of top and bottom of each), and summarize lithology and presence of oil, gas or water (submit separate sheets with this form, if needed}. Submit detailed descnptions, core chips, photographs and laboratory analytica! results per 20~A~4C 25.071. ~?.~:.~ ~ -. ~ATE "7 /~ ~' ~~~~~ ~ (''~ z• r s•a9 Form 10-407 Revised 2/2007 o K NTINUED ON REVERSE ~ ` ~3~0~ • • 28. GEOLOGIC MARKERS (List all formations and markers encountered): 29. FORMATION TESTS NAME MD N~ Well tested? Yes ~ No If yes, list intervals and formations tested, briefly summarizing test results. Attach separate sheets to this form, if Permafrost - Top 0 0 needed, and submit detailed test information per 20 AAC 25.071. Permafrost - Base -900 ~ 900 NO Drilling in Nanushuk Fm from top-bo Formation at total depth: Nanushuk • 30. List of Attachments: Daily Record 31. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Printed Name: Greq Noble Title: BLM Supv Petroleum Engineer Signature: Phone: 907-267-1429 Date: 6/12l2008 INSTRUCTIONS General: This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Alaska. Submit a well schematic diagram with each 10-407 well completion report and 10-404 well sundry report when the downhole well design is changed. Item 1a: Classification of Service wells: Gas Injection, Water Injection, Water-Alternating-Gas Injection, Salt Water Disposal, Water Supply for 1 njection, Observation, or Other. Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPI (Top of Producing Interval). Item 8: The Kelly Bushing and Ground Level elevations in feet above mean sea level. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits (ex: 50-029-20123-00-00). Item 20: Report true vertical thickness of permafrost in Box 20. Provide MD and TVD for the top and base of permafrost in Box 28. Item 22: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tpol. Item 23: If this well is completed for separate production from more than one interval (multiple completion), so state in item 1, and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval). Item 26: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut-in, or Other (explain). Item 27: Provide a listing of intervals cored and the corresponding formations, and a brief description in this box. Submit detailed description and analytical laboratory information required by 20 AAC 25.071. Item 29: Provide a listing of intervals tested and the corresponding formation, and a brief summary in this box. Submit detailed test and analytical laboratory information required by 20 AAC 25.071. Form 10-407 Revised 2/2007 ! Wainwright-1 and 2 Daily Drilling Logs WAINWRIGHT #1 Friday June 8, 2007: Drill crews arrive in Wainwright 6/9/07-6/11/07: Equipment and site preparation C~ 6/12/07: Mud rotary dri118 3/4" hole to 75'. Set and cement 75' of 6 5/8" OD steel casing. 6/13/07: Final site and equipment preparation. 6/14/07: Core to 176'. 2.5" diameter core, 5" diameter hole. 6/15/07: Core to 350'. 6/16/07: Core to 525'. 6/17/07: Core to 725'. 6/18/07: Core to 865'. 6/19/07: Core to 1025'. 6/20/07: Core to 1188'. 6/21/07: Core to 1275'. 6/22/07: Core to 1366'. 6/23/07: Core to 1375'. Ream tight spots from hole. 6/24/07: Continue reaming. Core to 1433'. 6/25/07: Pull steel to clean bit and core tube. Core to 1470'. 6/26/07: Core to 1560'. 6/27/07: Core to 1613'. Drill bit becomes stuck and drill rods break at 780'. Install fishing tool and latch on to steel. Pull partial fish. Top of broken rods now at 957'. 6/28/07: Continue fishing. Latch on to steel several times but can't retrieve. Run gamma and density logs through broken rods from 1613' to surface, resistivity and caliper from 957' to surface. Begin reaming hole to 5 5/8" diameter. 6/29/07: Ream to 900'. ~ ~ 6/30/07: Ream to 957' and circulate to warm well. Pull rods and run sonic logs. Begin tripping in straddle-packer system to try and conduct permeability test and collect wate~ samples from 896'-910' coal zone. 7/1/07: Install packer system and begin developing well. Having problems with development line freeze-up and well appears to me making very little, if any, fluid. Pull development pipe and install transducer to monitor overnight well recovery. Fabricate deflection wed~e to attempt to drill past broken rods. 7/2/07: Pull transducer - well had no recovery; either screen was plugged or coal zone is in permafrost - and remove packers from hole. Trip steel to 957' and circulate to clear well. Mix ~ 100 gallons Arctic cement and pump to bottom. Trip steel from well, drop deflection wedge, and trip steel behind to ensure wedge is firmly set in place. Pull steel and standby for cement to cure. 7/3/07: Trip steel and ream to 955' where wedge is encountered. Drill slowly past wedge, drill another 4-5', then begin binding up against broken rods. Continue drilling in an attempt to get away from rods but without success. Binding becomes severe. Order sub from Deadhorse that will allow us to attempt to drill ~ast using heavy rotary, rather than li~ht-wei~ht core rods. 7/4/07: Waiting for sub. Circulating from 950'. 7/5/07: Attempt to drill past wedge with larger pipe but continue to bind. Pull rods and install long-term temperature monitor well to 940' for UAF. Fill well with 50-50 mix Dow Frost and water and grout outside of well with bentonite grout and cement. WAINWRIGHT #2 ~~ ~ ~~ '"~ 7/6/07: Prepare site and move equipment ~ 50' to SW to drill well for permeability k~ ~ testing and water sampling from 1250' coal seam. 7/707: Dri118 3/4" hole to 50'. Set and cement 6 5/8" OD steel casing. Standby for cement cure 7/8/07: Rotary drill 5 5/8" hole to 400'. 7/9/07: Rotary drill to 1000'. 7/10/07: Equipment repair. Rotary drill to 1295' and circulate. 7/11/07: Trip steel from well. Try to run geophysicallogs but can't get tools past 1120' Equipment repair. Trip in bit and begin reaming from 1100'. ' ` i ~ ~ 7/12/07: Ream to 1295'. Trip steel and run multi-function, caliper, and sonic tools from 1295' to surface. Install straddle packer system to isolate and test 1242'-1250' coal seam. Begin air development. 7/13/07: Finish air development - having problems with freeze up in development pipe. Set pressure transducer and conduct overnight well recovery test. 7/14/07: Finish recovery test. Pull transducer and bail water samples from well. Deflate packers and remove from well. Set long-term temperature monitor well far UAF to 1259', filled with 35-65 mix of Dow Frost and water. Fly core and test equipment to Anchorage via air charter. 7/15/07: Grout around temp well using bentonite grout and cement. Install hole enclosures, clean site, winterize and pack equipment. 7/16/07: All personnel leave Wainwright. . • Page 1 of 3 Davies, Stephen F (DOA) From: Arthur C Clark [aclark@usgs.gov] Sent: Monday, June 15, 2009 4:19 PM To: Davies, Stephen F (DOA) Subject: Re: Wainwright Weil Inquiry Steve, I do have the authority to waive the confidentiality clause but I'm not sure if an email will suffice. In the hope that it does, I'm sending this email with the explicit intenti to give the AOGCC unrestricted permission to release all confidential and/or other reports and information for wells Wainwright-l and Wainwright-2 to the University of Alaska Fairbanks. If you need further or documetation for this to happen, please let me know. Thanks, Art -----"Davies, Stephen F (DOA)" <steve.davies@alaska.gov> wrote: ----- To: Arthur C Clark <aclark@usgs.gov> From: "Davies, Stephen F (DOA)" <steve.davies@alaska.gov> Date: 06/15/2009 09:10AM Subject: Wainwright Well Inquiry Art, I have had two inquiries from UAF concerning transferring custody of one of the Wainwright wells to UAF for research purposes. The last calf I received was from Dian Siegfried, and she requested a copy of the permit to drill. Since all of the Wainwright wells are exploratory wells, by statute, the USGS is entitled to a two-year confidentiality period for the well information"... unless the operator gives written and unrestricted permission to release all of the reports and information at an earlier date." (See 20 AAC 25.537(d).) So, in order to release a copy of the permit or any other confidential information concerning the well to Dian, I must have the USGS's written and unrestricted permission to do so. If you don't have the authority to waive confidentiality for this information for the USGS, please forward this request to the appropriate person within the USGS who does have this level of authority. Thanks for your help, Steve Davies AOGCC 907-793-1224 8/11/2009 ~~ • STATE OF ALASKA • ALASKA OIL AND GAS CONSERVATION COMMISSION WELL COMPLETION OR RECOMPLETION REPORT AND LOG 1a. We!! Status: Oil~ Gas~ Plugged ~ Abandoned ~ Suspended Q 20AAC25.105 zo,ar~„c2s.~~o GINJ^ WINJ ~ WDSPL[] WAG ^ Other^ No. of Completions: 1b. Well Class: Development ^ Exploratory~ Service ^ Stratigraphic Test^ 2. Operator Name: US Geological Survey 5. Date Comp., Susp., or Aband.: 7/5/2007 12. Permit to Drill Number: 207-106 3. Address: PO Box 25046, MS 406, Denver Federal Center, Denver, CO 80225 6. Date Spudded: 7/7/2007 13. API Number: 50-301-20004-00 4a. Location of Well (Govemmental Section): Surface: 890' FNL, 2318' FEL Sec 24 T15N R32W U.M. 7. Date TD Reached: 7/10/2007 14. Well Name and Number. Wainwright 2 Top of Productive Horizon: Same 70.64511111, -160.0184444 8. KB (ft above MSL): 30 Ground (ft MSL): 25 15. Fieki/Pool(s): N/A Total Depth: Vertical Well - 1300 ft 9. Plug Back Depth(MD+ND): 1295 4b. Location of Well (State Base Plane Coordinates, NAD 27): Surface: x- y- Zone- 10. Total Depth (MD + ND): 1295 16. Property Designation: City ofWainwright TPI: x- y- Zone- Total Depth: x- y- Zone- 11. SSSV Depth (MD + ND): na 17. Land Use Permit: 18. Directional Survey: Yes No ~ (Sibmit electronic and printed information per 20 AAC 25.050) 19. Water Depth, 'rf Offshore: N/A (ft MSL) 20. Thidcness of Permafrost (TVD): - 900 ft 21. Logs Obtained (List all logs here and submrt electronic and printed information per 20 AAC 25.071): gamma, resistivity, calper, densiry, srnic 22. CASING, LI NER AND CEMENTING RECORD CASING Wf. PER ~ GRADE SETTING DEPTH MD TOP BOTTOM SETTING DEPTH ND TOP BOTTOM HOLE SI~ CEMENTlNG RECORD AMOUNT pULLED 6 5/S .280 wall sch 40 0 80 0 80 9.875" cement from bottom-up 23. Open to production or injection? Yes~ No0 If Yes, list each 24. TUBING RECORD interval open (MD+ND of Top & Bottom; Perforation Size and Number): SIZE DEPTH S~T (MD) PACKER SET (MD) Open hole below 6 5/8" casing to TD N/A 25. ACID, FRACTURE, CEMENT SQUEEZE, ETC. DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATEPoAL USED N/A 26. PRODUCTION TEST Date First Production: N/A Method of Operation (Flowing, gas lift, etc.): Date of Test: Hours Tested: Production for Test Period Oil-Bbl: Gas-MCF: Water-Bbl: Choke S¢e: Gas-Oil Ratio: Flow Tubing Press. Casing Press: Calculated 24-Hour Rate ~ Oil-Bbl: Gas-MCF: Water-Bbl: Oil Graviry - AP! (corr): 27. CORE DATA Conventional Core(s) Acquired? Yes ^ No ^~ Sidewall Cores Acquired? Yes ^ No Q If Yes to either questio~, list fortnations and intervals cored (MD+ND of top and bottom of each), and summarize lithology and presence of oil, gas or water (submit separate sheets with this form, if needed). Submit detailed descriptions, core chips, photographs and laboratory analytical results per 20 AAC 25.071. • i 28. GEOLOGIC MARKERS (List all formations and markers encountered): 29. FORMATION TESTS NAME MD ND Well tested? ^ Yes ~ No If yes, iist intervals and formations tested, briefly summarizing test results. Attach separate sheets to this form, if Permafrost - Top 0 0 needed, and submit detailed test information per 20 AAC 25.071. Permafrost - Base ~900 900 NO Drilling in Nanushuk Fm from top-bo Formation at total depth: Nanushuk 30. List of Attachments: Daily Record 31. I hereby certify that the foregoing is true and correot to the best of my knowledge. Contact: Printed Name: Grea Noble Title: BLM Supv Petroleum Engineer Signature: Phone: 907-267-1429 Date: 6/12/2008 INSTRUCTIONS General: This form is designed for submitting a complete and correct well completion report and log on al! types of lands and leases in Alaska. Submit a well schematic diagram with each 10-407 well completion report and 10-404 well sundry report when the downhole well design is changed. Item 1 a: Classification of Service wells: Gas Injection, Water Injection, Water-Alternating-Gas Injection, Salt Water Disposal, Water Supply for I njection, Observation, or Other. Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPI (Top of Producing Interval). Item 8: The Kelly Bushing and Ground Level elevations in feet above mean sea level. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits (ex: 50-029-20123-00-00). Item 20: Report true vertical thickness of permafrost in Box 20. Provide MD and ND for the top and base of permafrost in Box 28. Item 22: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 23: If this well is completed for separate production from more than one interval (multiple completion), so state in item 1, and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval). Item 26: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut-in, or Other (explain). Item 27: Provide a listing of intervals cored and the corresponding formations, and a brief description in this box. Submit detailed description and analytical laboratory information required by 20 AAC 25.071. Item 29: Provide a listing of intervals tested and the corresponding formation, and a brief summary in this box. Submit detailed test and analytical laboratory information required by 20 AAC 25.071. Form 10-407 Revised 2/2007 ~ ~ Davies, Stephen F (DOA) From: Davies, Stephen F (DOA) Sent: Wednesday, June 11, 2008 2:31 PM To: 'Greg_Noble@ak. blm.gov' Cc: Okland, Howard D (DOA} Subject: RE: Wainwright Wells - Information Needed Greg, In response to your phone request this morning, Howard Okland and I went through the Commission's well files for Wainwright 1 and 2. The Commission currently has received very little data for these wells. Our first-pass listing of data lacking for Wainwright 1 and 2 is presented below. Please review our regulations 20 AAC 25.070 and 20 AAC 25.071 to ensure complete compliance. This regulation is available online at http://www.aogcc.alaska.gov/Regulations/RegIndex.shtml)_ Please label each item clearly with the well name and the permit to drill number (Wainwright 1 is #207-065 and Wainwright 2 is #207-106). Wainwright 1 and Wainwright 2 information needed: 1. Well Completion or Recompletion Report and Log (available at http://www.aogcc.alaska.gov/forms/10-407.x1s ). Please fill out all boxes on the form, including the X,Y location af the well in NAD 27 Alaska State Plane coordinates. 2. Daily operations summary from rig up through the last operation on the well for Wainwright 2. The Commission has a summary for Wainwright 1_ 3. Lithology log or sample log for Wainwright 2- one printed copy, one electronic image file (.pdf format or .tiff format), and digital data in LAS format (if ineasurements were recorded digitally). The Commission received a graphic "core description" diagram for wainwright 1 from Art Clark. 4. Complete set of washed and dried, legibly identified samples of drill cuttings for Wainwright 1 and 2 as required by the permits to drill. 5. Lithologic description and laboratory photographs (when taken} of conventional or sidewall cores_ The Commission has a set of rough photos of the Wainwright 1 core. 6. A copy of any laboratory analyses made on core or sidewall core samples. 7. Representative chip sample (one cubic inch) from every foot of any conventional cores recovered. These chips need not be submitted until 30 days after the conventional core is analyzed_ 8. One printed, final copy of all logs run accompanied by an electronic image file (.pdf format or .tiff format). The Commission received some well log electronic images, but the log-header blocks were blank and the image files weren't cleariy identified. Since these are archival logs, they should be clearly labeled with all pertinent information. 9. A CD-ROM or DVD containing final digital data for all logs run in LAS version 2 or DLIS format and a verification listing for all digital data. Again, the Commission received some digital log data, but the files were all labeled Wainwright 1. Please ensure alI archival data are complete and clearly labeled. 10. A copy of all drill stem test, production test or injection test data and charts. 11. A brief summary of production tests, drill stem tests, wireline formation tests, and other formation tests performed including test date, time, depth, duration, method of operations, recovered fluid types, fluid amounts, GOR, pressure and choke size. 12. A printed copy of any geochemical and formation fluid analyses obtained_ 13. A printed copy and digital data in ASCII format of all directional survey information. Sundry application(s) with supporting documents must be submitted to, and approved by, the Commission before any further operations may be conducted on the wainwright wells, including plugging and abandonment. The Commission will 7, 8, and 9 wells in for any exclusions. also require most of these data items for the Wainwright 3, 4, 5, 6, a timely manner. See the permit to drill application for each well 6/11/2008 2:52 PM Thanks for your help, ~ Steve Davies AOGCC 907-793-1224 -----Original Message----- From: Greg_Noble@ak.blm.gov [mailto:Greg_Noble@ak_blm.gov] Sent: Wednesday, June 11, 2008 11:51 AM To: Davies, Stephen F (DOA) Subject: Wainwright wells Steve, • As we discussed, I would like to know what the Commission needs for Wainwright Wells 1 and 2 to comply with 20 AAC 25.070 and 20 AAC 25.071 by June 23rd as required by Conservation Order No. 600. If you'll let me know I'll see that it gets to you as best I'm able. thanks 2 6/11/2008 2:52 PM ~ ~ Davies, Stephen F (DOA) From: Greg_Noble@ak.blm.gov Sent: Wednesday, June 11, 2008 11:51 AM To: Davies, Stephen F (DOA) Subject: Wainwright wells Steve, As we discussed, I would like to know what the Commission needs for Wainwright Wells 1 and 2 to comply with 20 AAC 25.070 and 20 AAC 25.07I by June 23rd as required by Conservation Order No. 600_ If you'l1 let me know I'll see that it gets to you as best I'm able. thanks 6/11/2008 2:52 PM • u STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West Seventh Avenue, Suite 100 Anchorage, Alaska 99501 Re; THE APPLICATION OF The United States Department of the Inte~•ior, Bureau of Land Management for an order granting waivers of the bonding requirements of 20 AAC 25.025, blowaut prevention equipment requirements of 20 AAC 25.035, wellbore survey requirements of 20 AAC 25.050(a)(2), well site seismic survey requirements of 20 AAC 25.061(a), and gas detection requirements of 20 AAC 25.066 to allow the drii(ing, testing (other than fiow testing), and plugging the U.S. Depai~tment of the Interior Wainwright No. 2 expIoratory gas well. Conservation Order No. 600 Docket No. CO-08-03 Wainwright No. 2 Exploratory Well May 23, 2008 IT APPEARING THAT: The U.S. Department of tha Interior (USDOI), Bureau of Land Management (BLM), by Permit to Drili app(ication No. 207-106, dated July 25, 2007, and undated ~etters, which were received by the Alaska Oil and Gas Conservation Commissian (Commission) on July 3I, 2007, requested an order waiving the bonding requirements of 20 AAC 25.025, blowout prevention equipment requirements of 2Q AAC 25.Q35, wellbore survey requirements of 20 AAC 25.050(a)(Z), well site seismic survey requirements of 20 AAC 25.061{a}, and gas detection requirements of 20 AAC 25.066 to alfow for the drilling, testing (other than flow testing), and plugging the Wainwright No. 2 exploratory gas well (Wainwright No. 2 well). 2. The Commission published notice of opportunity to comment and request a public hearing in the AIVCHORAGE DAILY NEWS on September 11, 2007, and THE ARCTfC SOUND~,R on September 20, 2007, pursuant to 20 AAC 25.540. 3. One individual requested information related to the application. No comments on the applicatian or requests for a hearing were received. A hearing was held at the Commission's offices, at 333 West Seventh Avenue, Suite 100, Anchorage, ~1tas[ca, on October 25, 2007. FINDINGS: Wainwright No. 2 is a vertical coalbed methane exploratory wetl located near Wainwright, Alaska. The well is 890 feet from the north line and 2,318 feet from the east (ine of Sectian 24, Township 15 North, Range 32 West, Umiat Meridian (UM}. The Wainwright No. 2 well was driiled before the Commissian r•eceived or approved BLM's Permit to Drill application No. 207-106, dated July 25, 2007 The Olgoonik Corporation owns the surface estate, and the United States owns the subsurface estate, which BLM administers. The onty owners of the subsurface estate within 1,500 feet of the well are the United States and the State of Alaska. /1____"__._`____ !1__J_"_ !/~n • • Docket No. CO-08-03 May 23, 2008 Page 2 of 5 4. Under AS 31.05.027, land in the NPR-A is subject to the Commission's authority, and the Commission is aware of no Federal law that preempts the Commission's authority under tlie Alaska Oil and Gas Conservation Act, AS 3].05, or the Commission's reguiations, 20 AAC 25. The Village of Wainwright, Alaska, obtains dri~iking water from surface water sources according ta the Alaska Department of Environmental Conservation, Division of Envi~•onmental HeaIth, Drinking Water Program and the Alaska Department of Natural Resouiroes Land Administration System. The sources are located in the NW quarter of the SW quarter of Section 9, T31N, R31 W, UM, which is more than 2-1/2 miles from the Wainwright No. 2 well. 6. The depth of the base of permafrost within the Wainwright No.2 well is expected to be about 1,000 feet. (Because required corripletion reports have not yet been ftled for the Wainwright No. 1 and Wainwright No. 2 wells, the actual depth remains unknown.) If this is the case, subsurface aquifers wilI not be utilized for drinking water. 7. On May 3I, 2007, the Commission received a le#ter from the Arctic Slope Regional Corpor~tion (ASRC) stating that the BLM could enter ASRC Iand to conduct the Wainwright Coa1-bed Methane Project, which includes drilling, testing, and plugging the Wainwright No. 2 well. On September 13, 2007, BLM filed a Designation of Operator form, naming the U.S. Geological Survey (USGS) as the operator for the Wainwright No. 2 well. 9. As an ageacy of the United States, BLM seeks a waiver of the bonding requirements of 20 AAC 25.025 for the drilling of the Wainwright No. 2 well. 10. In drilling the Wainwright No. 2 well, BLM used a rotating drill head, which seals around the di•ill stern and directs annular mudflow to the pits. When necessary, a rotating head can also function as a diverter. A similar rotating drill head was used successfuily at the Franklin Btuffs No. 1 exploratory gas well (AOGCC Permit to Drill No. 205-105). l l. Seismic information obtained near the Wainwright No. I and Wainwright No. 2 wells sliows no indication of shalIow gas. In addition, drilling records and mud lag infoc•mation from the nea~•est exploration wells {Peard Test Well No. 1 and Tunalik No. l, located 25 miles to the east-northeast and 34 miles to the southwest, respectivety) show no indication of abnormal pressure. 12. The Wainwright No. 2 well was drilled with a portable truck-mounted dril(ing rig. This equipment has no enclosures where methane could accumulate so as to pose a risk of explosion oi• f-re, or where a methane detector could practicably be Iocated. 13. During the Octaber 25, 2007, hearing, a USGS employee testified that he believed that a Permit to Drill was not necessary for the Wainwright No. 2 well because the wel! would be used only to test watei- in the coal seam(s) encountered and not tfl produce oil or gas. CONCLUSIONS: The Wainwright No. 2 well-drilled near Wainwright, Alaska, to exp(ore for coaIbed methane-is subject to regulation under the Alaska Oil and Gas Conservation Act, AS 31.05, and the Commission's regulations at, 20 AAC 25. Conservation Order 600 ~ • Docket No. CO-08-03 May 23, 2008 Page 3 of 5 2. BLM, in drilling the Wainwright No_ 2 well without f'trst obtaining an approved Permit to Dcill, violated AS 31.05.090 and 20 AAC 25.005(a). 3. Prior to drilling the Wainwright No. 2 well, BLM was required under the Alaska Oil and Gas Consetvation Act, AS 31.05, to apply for a Permit to Drill and request the waivers that are the subject of BLM's application. 4. The waivers thai are the subject of BLM's application are comman for nonconveiitional gas wells in Alaska and routinely granted by the Commission when properly supported and timely applied for by the applicant. 5. The requirements of AS 31.05.030(j)(1)(A) do not apply because the Wainwright No. Z well will not be used to produce gas from an aquifer that is a source of water for human consumption or ag~-icultural purposes. 6. Commission approval of the waivers that are the su6ject of BLM's apptication will conform with 20 AAC 25.505(b), which allows the Commission to issue an order in conformance with 20 AAC 25.540 that prevails over the Commission's general statewide regulations contained in 24 AAC 25. 7. The Wainwright No. Z well was drilled within 1,500 feet of a property fine where ownership changes, which would require an exception to ZO AAC 25.055(a)(2} to permit the well to be open for test or regular production. 8. Under AS 31.05.170(8) anci AS 38.45.965(14), a caalbed tnethane well is a nonconventional gas well. AS 31.05.030(j)(2}(A) requires the Commission to regulate hydraulic fracturing in such weIls to ensure protection of drinking water quality. 9. BLM and USGS have not submitted the information required undej• 20 AAC 25.070 (pertaining to records and reports) and 20 AAC 25.071 (pertaining ta geologic data and logs) with respect to the Wainwright No. 1 and Wainwright No. 2 wells. 10. The Commission accep#s the assurance of BLM, as an agency of the United States, that a bond is not necessary to ensu-•e that the Wainwright No. 2 well is dri(led, operated, maintained, repaired, and abandoned and the location is cleared in accordance with 20 AAC 25. NOW, THEREFORE, IT IS ORDERED: 1. BLM's application for a waiver of ttie blowout prevention equipment requirements of 20 AAC 25.035 is hereby granted. 2. BLM's apptication for a waiver of tl~e wellbore survey requirements of 20 AAC 25,050(a)(2) is hereby granted. 3. BLM's application for a waiver of the well site seismic survey requirements of 20 AAC 25,061(a) is hereby granted. 4. BLM's application for a waiver of the gas detection requirements of 20 AAC 25.066 for drilling, testing (other than flow testing), and plugging the Wainwright No. 2 well is hereby granted. Conservation Order 60Q ~ ~ Docket No. CO-08-03 May 23, 2008 Page 4 of 5 As BLM ar-d USGS are agencies of the federal government, BLM's application to waive the bonding requirements of 20 AAC 25.025 is hereby granted, as long as BLM or USGS remains the operator of the Wainwright No. 2 well. 6. Under 20 AAC 25.055(a)(2), because the Wainwright No. 2 we31 is within i,500 feet of a property line where awnership changes, a spacing exception fi•om the Commission is required prior to opening the wellbore to test or regular production. Under AS 30.05.030(j)(2)(A), the Wainwright No. 2 well may not be hydraulically fractured without the Commission's prior approval. $. Should BLM or USGS in the future drill a well in search of oil or gas within the Commission's jurisdiction without tirst obtaining a Permit to Drill, the Commission wi11 consider BLM or USGS to be in flagrant violation of the provisions of the Alaska Oil and Gas Conservation Act, 31.05. 9. Under AS 31.05.090(d)(2), in determining whether to approve a Permit to Dril! application, the Commission is required to consider whether the applicant is in violation of a provision of AS 31.05, 20 AAC 25, or a Commission order or permit. Accordingly, the Commission may not approve future BLM or USGS Permit to Drill applications unless there is compliance with all applicabie laws. 10. By June 23, 2a08, the operator shall submit to the Commission the reports and infarmation required by 20 AAC 25.070 and 20 AAC 25.07I for the Wainwright No. 1 and Wainwright No. 2 wells. ENTERED at Anchorage, Alaska, and dated May 23, 20Q8. ~ ' ~~ ~ - . F, Daniel T. Sea~ unt, Jr., Chaii• Alaska Oil ~fid C1~as Conservation Commission Gas Conservation Commission Cat y P. oerster, Commissioner Alaska il and Gas Consetvation Commission Conservation Order 600 ~ ~ Docket No. CO-08-43 May 23, 2008 Page 5 of 5 TION AND APPEAL As provided in AS 31.05.080(a), within 20 days after written noticc of the entry of this order or decisiai, or such further time as the Comnrission grants for good cause shotivn, a person affected by it may file with ihe Commission an application for reconsideration of thc matter determined by it. lf the notice was mailed, then the per'tod of time shall be 23 days. An application for reconsideration must set out the respeck in ~vhich the order or decision is believed to be erroneous. The Commission shall gra~rt or tefuse the application for reconsideration in whole or in part within t0 days after it is filed. Faiture to act on it ~vithin 10-days is a denial of reconsideration. If the Commissiai denies reconsideration, upon denial, tltis order or decision and the denial of re- consideration are FINAL and may be appealed to suparior court. The appeal MUST be filed within 33 days after the date on ~vhich tlie Com- mission mails, OR 3U days if the Commission otherwise distributes, the order or decision denying reconsideration, UNLESS the denial is by in- action, in ~vhich case the appeal MUST be filed within 40 days after the date on which the application for reconsideration was filed. If the Co~nmission grants an application for reconsidaration, Ihis order or decision dces not become final. Rather, die order or decision on re- consideration wikl be the FINAL order or decision of the Commission, and it may be appealed to superior court. That appcat MUST be filed within 33 days after the date on ~vhich the Commission mails, OR 30 days if the Commission othenvise distributes, the order or decision on re- consideration. As provided in AS 3 L05.080(b}, "[t]he questions reviewed on appeal are limited to the questions presentcd 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 izot inctudeci in the pe- riod; 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 stata holiday. ~ ~ ; a f ~ E..~ ~ ~` ' ~ `~ ~ Mw`:! ; S ry ,~;u'~ 5......, , ,~ ~... ~ ~~ 1._~y ;~. ~ 9 ~,~t~~~ ~ C ~' , ~~' v E _ ~~+ 3 ~~~ ~'f y,~ '' tl ~ ~ ~ ~ ~ p ,~ ~ ~ B { ~ ~~ ~ ; ~itt ~ `'`~~, 1 ~~'~ ~ ~~ ~ g ~ *, ~ R ~~ ~~^ (...~ ~~. ~ ~ ~.~ ~~,..~ E ~.,~ L.1 ~~a. ~..t :~ ~..i~ ~.~ ~.~~~R 1.~~~°~, ~.~:.. ~sS~ ou ~D c~s COI~TSER~ATIOI~T CO1rIl~II5SI0I~T Beth Maclean Geologist Bureau of Land Management 222 W. 7~ Avenue, Suite 13 Anchorage, AK 99513-7504 Re: E~loratory Well, Wainwright No. 2 Bureau of Land Management Pernut No: 207-106 SARAH PAL/N, GOVERNOR 333 W. 7th AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Surface Location: 70 37' 56.6" 160 O1' 28.2" 890' FNL, 2318' FEL Bottomhole Location: Vertical Well, 1300' Dear Ms. Maclean: Enclosed is the approved application for a permit to drill the above-referenced e~loration well. This permit to drill does not exempt you from obtaining additional permits and approvals required by law from the Commission and other governmental agencies and does not authorize conducting drilling operations until all other required permits and approvals ha~e been issued. In addition, the Commission reserves the right to withdraw the permit in the event it was erroneously issued. A weekly status report is required from the time the well is spudded until it is susperided or plugged and abandoned. The report should be a generalized synopsis of the week's activities and is exclusively for the Commission's internal use. Approval to test and commence reg~zlar production is contingent upon issuance of a conservation order approving a spacing exception. The Bureau of Land Management assumes the liability of any protest to the spacing exception that may occur. Exemptions requested by the Bureau of Land Management associated with the drilling of this well must be addressed in a separate Conservation Order. All dry ditch sample sets submitted to the Commission must be in no greater than 30' sample intervals from below the permafrost or from where samples are first caught and 10' sample intervals through target zones. Please note the following special condition of ' this permit: production or production testing of coal bed methane is not allowed for Wainwright-2 until Permit No: 207-106 ~ ~ June 4, 2008 Page 2 of 2 after Bureau of Land Management has designed and implemented a water well testing program to provide baseline data on water quality and quantity. Bureau of Land Management must contact the Commission to obtain advance approval of such water well testing program. Except as provided in this permit, operations must be conducted in accordance with AS 31.05; 1~it1e 20, Chapter 25 of the Alaska Administrative Code (e.g., 20 AAC 25.055); and any applicable orders or permits of the Commission. Failure to so comply may result in the revocation or suspension of the permit, other enforcement actions, and penalties. When providing notice for a representative of the Commission to witness any required test, conta.ct the Commission's petroleum field inspector at (907) 659- 3607 (pager). Sincerely, Dan T. Seamount ~~ Chair DATED this ~ day of June, 2008 cc: Department of Fish & Game, Habitat Section w/o encl. Department of Environmental Conservation w/o encl. ~~~~~ V ~~ STATE OF ALASKA ALA„ .A OIL AND GAS CONSERVATION COM~510N C .JUL 3 Y ZOG~ L'1 PERMIT TO DRILL ~~ r~e~6 ~~~ska tlil & G~~ ~ans. C~mr~issio~ 20 AAC 25.005 ~ ~3~ 1a. Type of Work: Drill ~ Redrill ~ Re-entry ~ 1b. Current Well Class: Exploratory Stratigraphic Test ~ Service Multiple Zone Q Development Oil ~ ~ Devetopment Gas ~ ~ Single Zone ~ 1a Specify if well is proposed for: ~~~ ~s~ Coalbed Methane Q Gas Hydrates ~ Shale Gas ^ 2. Operator Name: Bureau of Land Management - DOI 5. Bond: Blanket ~ Single Well ~ Bond No. ~.,~, V:~ ,SC~~-'~~~iNrt~ 11. Well Name and Number: Wainwright - 2 3. Address: 222 West Seventh Ave., #13, Anchorage, AK 99513-7504 6. Proposed Depth: MD: ~ 300' n/~~ 1300~ 12. Field/Pool(s): 4a. Location of Well (Governmental Section): Surface: 70 37' 56.6" 160 01' 282" 890' FNL, 2318' FEL 7. Property Designation: ~~,,/ Cit i"nwright ~~~~"'~ Top of Productive Horizon: Sea 24, T15N, R32W, UM 8. Land Use Permit: ~./ •07 13. Approximate Spud Date: Total Depth: Vertical Well, 1300' 9. Acres in Property: 14. Distance to Nearest Property: 4b. Location of Well (State Base Plane Coordinates): Surface: x- y- Zone- 10. KB Elevation (Height above GL): 30' MSL feet 15. Distance to Neare~t Wei~, W ithin Pool: ~. ~d ~'.o 16. Deviated welis: Kickoff depth: feet Maximum Hole Angle: degrees 17. Maximum Anticipated Pressures in psig (see 20 AAC 25.035) Downhole: Surface: 18. Casing Program: Specifications To p - Setting Depth - Bottom Cement Quantity, c.f. or sacks Hole Casing Weight Grade Coupling Length MD TVD MD ND (including stage data) 9 7/8 6 5/8 18.97 ppf 20 0 80 30 cu. Ft. 19. PRESENT WELL CONDITION SUMMARY (To be completed for Redrili and Re-Entry O perations) Total Depth MD (ft): Total Depth ND (ft): Plugs (measured): Effect. Depth MD (ft): Effect. Depth TVD (ft): Junk (measured): Casing Length Size Cement Volume MD ND Conductor/Structurai Surface Intermediate Production Liner Perforation Depth MD (ft): Perforation Depth ND (ft): 20. Attachments: Filing Fee Q BOP Sketch Q Property Plat Q Diverter Sketch ^~ Drilling Program Q Time v. Depth Plot Q Shaliow Hazard Analysis Q Seabed Report ^~ Drilling Fluid Program Q 20 AAC 25.050 requirements ^ 21. Verbal Approval: Commission Representative: 22. I hereby certify that the foregoing is true and correct. Printed Name Beth Maclean Signature ~*s~C.~,~, Date Contact Title Geologist Phone 907-271-1985 Date 7/25/2007 Commission Use Only Permit to Drill Number: ~~"' f~~p API Number: /~,~ e~ 50- ~ l'" Z~v~,,,~T'~ Permit Approval Date: •~~ See cover letter for other requirements. ' Conditions of approval : If box is checked, well may not be used to explore for, test, or produce coalbed methane, gas hydrates, or gas contained in shales:^ Other: Samples req'd: Yes[~No^ Mud log req'd: Yes~ No HZS measures: Yes^ No[.]~ Directional svy req'd: Yes[~No[~ 3R ~.t ~t.o/s~~( ov .Sa.~.~-~-~e. lc.~, s~ a. ~ p~. fl 7 <) ~ ` /" APPROVED BY THE COMMISSION ~~~ DATE: , COMMISSIONER ~ - Form 1 401 Revised 12/2005 Submit in Duplicate ORIGINAL ~y~~~r~- ~..~. r. , , SEC 2S T1~WNSHIP 15N RANGE 32W OF THE UMIAT MERIDiAN, ALASKA LEGEND _ AASB ~ --("'.•~~~- ~~h~~ tNDPC~KPlIY avavsr in~a _..._.__..._... auRVav wr uHs -~ --- -- mwtuwmrctw~r ortrm - ' - - iK sanww w~e }O~tWAY ~ ~.~'_"' R~ r Zp II , "' r-~--~--~- A , RAN10M ~, ~ ' 0.BCIRIGAL NR'6N Li1Qe i~..,~~.~J 1~+:~ ..-i f TYlB~Ig LII'B p~g18lg --- - . AOIPONYiLhPmWO BffUP L~ !{OF17LN7'AI. NOfl11M. 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IfGiMO/~V 6~ffAtG4 ea+. ~~~,,,,~~annn~ ~cn~u~ar.~ra~ r A°jr~"uw'~~'r~ ~ r~'ir~nr wr'µ°` AT7oV190N BTA'1779 PGS fMBlll: oq x~n Mi, ,ul at~ns tna n0Y TOIt ~citWLL ZIN7 Y'IDD tveo AoU[ert iMU~alOl~ M1~ Ct67~0 RM71f IJIiY til01 Ai 06~0lM. i0.lRCN6 7T1L4 WWR+RIOM. ~IC. ![e~Y afOl 7o AWADM 70711WiF! mt W 70 -BlHUN O ACUda ~c1Cm MYWD M~aWaltYS ilroNN IX7 'ilY MT. YMii Tlfli ~71M~16 AIO ~YT~IL'I{q! 18At Nav~n a.ar aw au. nwrx n raooucr ~ ~ 3EC 2S rr~~ or uns~n SP e~r+-~r a t+nniw. uwuncm TWP 15N unn xeaxro cmaur~na+ scrnm+ RNG 32W ~,AD~~'°~,1G~ UM I ~ ~ ~ ---- ,::~ . out a Y. a ima n+.~r ImNp! MANUIMMYaf1 Lt M IL1N1 M IMy ~ _ __. ` ~ ~ ----- ....~.~~'"TTT~f~"'`I`~T ' ~.. _ , . . ._. . _ ,~. _ . _ _ ..... ~..,..r. i .., ~x emoc a aan~ rur ~~wavu++ow ~ 6 N4lO~ WDH WOI NI;'Mt CAN 1 Y~.~Y W ~ BPf MlCAt{ RAAB MA. O F6 7M fm Y !es Y IYL ~ Permit to Drill Exemption Requests DOI Wainwright Well ~ 1. 20AAC 25.035, blowout prevention equipment requirements. DOI is requesting an exemption to having a BOP. DOI will drill with a Diverter. AOGCC Questions: a. Have you examined the well histories and logs for the wells in the surrounding vicinity for gas kicks and mud weight histories in the upper 3500 feet? b. Can you demonstrate that you have a means of well control that is equally effective to a BOPE? a. DOI has examined all well logs for the wells within the general vicinity of the proposed DOI-07-1 well. They include Tunalik, Kugrua, and Peard Bay. In the upper 3500 feet of each of these wells; measurable gas readings were associated with coal seams only. Mud weights were kept between 9-10 pounds per gallon (ppg) above 3500 feet in each well indicating that no overpressured conditions were expected or encountered. b. DOI will be drilling with a weighted mud system typically ranging from 9.0 ppg - 9.8 ppg. If overpressured gas is encountered, we will be able to make a 10.5+ ppg mud to circulate down the well and stop the gas from venting. Optionally, a cement slurry weighing from 13 ppg -15 ppg could be mixed and pumped through the drill steel from the bottom to the surface to kill the well. In this situation, the well would be considered abandoned. c. If a gas kick were to be encountered, the amount of gas that can safely be vented during drilling is considerable. DOI is proposing to utilize a Washington stripping head sealing 3'/z" drill pipe on 6 5/8" casing, and a 40 foot by 4" ID blooey line. 2. 20 AAC 25.050 (a) (2), requiring well bore surveys for each 500 feet of well depth. DOI is requesting a waiver on directional surveying. 3. 20 AAC 25.061 (a), requiring seismic surveys of near surface strata. DOI has examined two seismic surveys in the Wainwright area. The first is an E-W line that runs from the S. Meade well to the Arctic coast approximately 5-10 miles SW of Wainwright. The second is a NE-SW line that parallels the coastline from north of the Peard Bay well to north of the Tunalik well and runs directly through Wainwright. These surveys, while shot for deeper targets, do not show any shallow hazards in the vicinity of the proposed drill site. 4. 20 AAC 25.066, requiring gas detection on drilling rigs. DOI is requesting exemption from H2S and methane detectors. Drilli 100 psi rubber seal Diverter head Threaded coupler-~ 6 5/8" O D Conductor -' casing 40'-80' bls -- ~-- 3.5" core rod Valve T-~tting 1 ~ ~~' ~ Valve 0 ~ ~ ~ ~U .D ._ LL Fluid discharge to recirculation pit To holding pit ~ ~ viv~i ~c~ ~~ ~vwyi aN~ ~ ~ i Drilling Plan for Alaska Rural Energy Project Wainwright, Alaska, 2007 1. Finish transporting equipment to Wainwright. Rig and most equipment already there. 2. Dri119 7/8" mud rotary hole through eolian sand deposits. Estimated thickness 40'- 80'. 3. Set and cement flush joint 6 5/8" OD, 6 1/8" ID steel casing to base of 9 7/8" hole.. 4. Begin wireline coring operations (HT core rods, 4.25" diameter hole, 2.4" diameter core) at base of surface casing. Collect continuous core through permafrost zone (~800'-1000') if time and conditions allow. If not, combine open-hole rotary drilling with select core drilling to base of permafrost with an emphasis on coring coal seams contained within this zone. 5. Continuous core to a total depth of between 2000'-2500' as time, funding, and conditions allow. 6. In significant gas-bearing coal beds: Isolate with pneumatic packer and conduct drawdown-recovery test. Collect water samples from coal seam with bailer. 7. Run geophysical logs (natural gamma, resistivity, caliper, density, sonic). If collected data warrants, select coal seam for further hydraulic testing and long- term monitoring. 8. Using abandonment bentonite grout, backfill hole from total depth up to selected coal seam. 9. Ream hole to 6" diameter from through the base of selected coal seam. 10. Set 2.5" PVC monitor well with screened interval isolated in coal bed. Tremie filterpack material (sand or gravel) around screen and seal annular area above screen using '/" bentonite pellets and abandonment bentonite grout. 11. Conduct further hydraulic testing as required. 12. Fill top ~1500' of well with food-grade propylene glycol (RV antifreeze) to keep from freezing, install downhole transducers and thermistars to collect overwinter pressure and temperature data. 13. Install locking hole enclosure around well. If data does not warrant the setting of a long-term monitor well: 14. Backfill well with abandonment bentonite grout from bottom to within 100 ft of surface. 15. Mix and pump cement from 100 ft bls to surface. 16. Cut off steel and PVC casing 3 ft below grade and reclaim site. 17. Ship equipment to Deadhorse. ~ ~ Drilling Fluid Plan for Alaska Rural Energy Project Wainwright, Alaska, Summer 2007 The hole will be drilled using standard fresh water bentonite drilling fluids. Additives to be used include (all listed products are NL Baroid trade names): • Quick-Gel high yield bentonite (hole stability, circulation control, clay-shale control) • Aqua-Gel bentonite (hole stability, circulation control, mud-density control) • Pac-L and Pac-R powdered cellulose polymer (clay-shale control, water loss, viscosity control) • Pennetrol liquid detergent (bit cleaning, control clay build up around bit face and teeth) Drill fluids will be monitored for viscosity, weight, and temperature on a full-time basis. Drilling fluids will have cuttings removed and will be recirculated via a 1000 gallon trailer-mounted shaker system incorporating shaker screens and centrifugal desilting cones. Cuttings and used drill mud will be contained in above-ground tanks. At project's end, cuttings will be transported to the local landfill for disposal and liquid drilling fluids will be transported to the local sewage lagoon for disposal. Rotary drilling and reaming operations will be conducted using a Gardner-Denver 5" x 6", 200 gpm, duplex mudpump. Core drilling will be conducted using a hydraulically-driven Bean 35 gpm triplex mudpump. = Wainwright Time vs. Depth 0 1 2 5 6 7 8~ 1Q 1't 12 13 14 't5 16 13 18 19 ZO 21 22 23 24 25 26 2~ 28 29 3E3 31 32 33 34 35 36 37 38 40 41 42; ~ Pack and 500 S@t Sutf8G8 winterixe equipment ; - Perm issting,-,--i- ; water samptes 1000 - Pemt testing, _.._.~, ~ water samptes ` -,500 a Ream fio(e _-.~. Set monitac -2000 ' '"~ ltydr8u{ic 1A#8~8f 8~t`t'i{~IAS t@St111~ Geophysical ' -2500 -3000 _~:.~.~._..~~..r.~..._.:~:W.~..~.:._~_~._ .~:: ~ : ~ _ .. .~..._ . ...~... .~._ Days ~ ~ ~ ~ Description Summary of Well Closure Proposal During drilling and coring operations, aquifers will be protected by mixing bentonite and polymer additives in the drill mud specifically desi~ned to seal and protect water-bearin~ strata. As the completion of drilling, coring and ~eophysical logging operations, if encountered conditions warrant, a temporary well may be installed and isolated in a coal seam as identified from drilling, Desorption, hydraulic, and geophysical information. All strata below the base of the monitor well, as well as the annular areas between the PVC pipe and the borehole, will be sealed with high-solids abandonment bentonite grout specifically designed for this purpose using the displacement method by pumping the slurry from the bottom of the borehole through 3.5" diameter core rods or 1'/2" stainless steel pipe. With the exception of the isolated coal zone this will effectively seal all hydrocarbon and water-bearing zones encountered in the borehole. The well, if set, will be filled with a 50%-50% mixture of water and propylene glycol to a depth of 1500 ft to prevent freezing of the weli in the permafrost zone (approximate depth of 1000 ft). The well will be used as a monitor well for future production and reservoir testing as well as for long-term pressure and temperature monitoring purposed. ~ ~ United States Department of the Interior ~-~ , BUREAU OF LAND MANAGEMENT ~ f Alaska State Office t~~~ ~~ ~ 222 West Seventh Avenue, #13 Anchorage, Alaska 99513-7504 http://www.blm.gov/ak In Reply Refer to: 3160 (940) Mr. Steve Davies Alaska Oil and Gas Conservation Commission 333 West 7~' Avenue, Suite 100 Anchorage, Alaska 99501 Dear Mr. Davies: I'm writing to request waiving the As Built Survey requirement for the Wainwright #2 well that the Department of the Interior, Bureau of Land Management is going to be drilling this summer and is submitting an Application for Permit to Drill to AOGCC. Sincerely, ~.71)l~c)~- Y~ Beth Maclean Geologist LLM:940:Bmaclean:bm:04/02/07:RM4FOB:907-271-1985:PermittoDri112 ~ ~ r United States Department of the Interior -~ ~ BUREAU OF LAND MANAGEMENT ~° Alaska State Office 'x"At~E F'~~Q~° 222 West Seventh Avenue, #13 '~A~~R1G~ Anchorage, Alaska 99513-7504 http://www.blm.gov/ak In Reply Refer to: 3160 (940) Mr. Steve Davies Alaska Oil and Gas Conservation Commission 333 West 7~' Avenue, Suite 100 Anchorage, Alaska 99501 Dear Mr. Davies: I'm writing to request waiving the bond requirement of 20 AAC 25.025 for the Wainwright #2 well that the Department of the Interior, Bureau of Land Management drilled this summer and is submitting an Application for Permit to Drill to AOGCC. The Department of the Interior, Bureau of Land Management is self-insured under the Federal Tort Claims Act, 28 USC Sec. 26.7L I understand that in order to waive the bonding requirements AOGCC is required under statute to publish notice. Please let me know when notice has been published. Please advise if any other information is needed by AOGCC in regards to the bonding. Sincerely, ~ Beth Maclean Geologist 940: Bmaclean:bm:02/28/07:1448:U:/bmaclean/alternativeenergy/coalbedmethane/permitting/wai nwright/aogcc/bondingwaiverrequest07 2.doc ~ ~ United States Department of the Interior ~' , BUREAU OF LAND MANAGEMENT ~ Alaska State Office ~~~~R~~ 222 West Seventh Avenue, #13 Anchorage, Alaska 99513-7504 http://www.blm.gov/ak In Reply Refer to: 3160 (940) June 7, 2007 Mr. Steve Davies Alaska Oil and Gas Conservation Commission 333 West 7`~' Avenue, Suite 100 Anchorage, Alaska 99501 Dear Mr. Davies: The Federal Government has reserved the right to the coal and oil and gas within 1500 feet of the proposed drill site (as stated on the permit application for Wainwright #2 well) in Wainwright, Alaska. For an in-depth explanation of the land status plat (currently on file with AOGCC in the Wainwright #1 Permit to Drill Application), please see the attached document. Sincerely, ^~~"a'~~ Beth Maclean Geologist 940:Bmaclean:bm:06/07/07:1448: U:/bmaclean/alternativeenergy/coalbedmethane/permitting/wai nwright/aogcc/subsurfaceestate 2.doc Wainwright #1 & #2 ~ • Bureau of Land Management Explanation of Plat for Survey Township 15 North, Range 32 West of the Umiat Meridian, Alaska Sections 13, 24 and 25 Section 24, T15N, R32W contains the boundaries of the village of Wainwright. The coal drill site will be located near the northeast portion of Section 24, at the GPS location submitted to AOGCC on the permit application. Patent Number 50-91-0562 conveyed surface estate to Olgoonik Corporation on the following parcels of land (refer to plat): Section 13 (north of Section 24). The northern part of Section 24 Southwest corner of Section 24 Southeast corner of Section 24 Section 25 The subsurface estate was reserved to the Federal Government (noted by SSE below patent number on plat and stated in conveyance document submitted with the plats). Patent Number 50-85-0526 conveyed the surface estate to Olgoonik Corporation on the following parcels of land (refer to plat): Blk 22, Lot 1, located in the northeastern part of Section 24. USS 4418, Tr E, located adjacted to Blk 22 in Section 24 USS 4418 Tr C, located southwest of Blk 22 in Section 24 USS 4418 Tr F, located southwest of Tr C in Section 24 USS 4418, Tr G, located southwest of Tr F in Section 24 The subsurface estate was reserved to the Federal Government (noted by SSE below patent number on plat and stated in conveyance document submitted with the plats). Patent Number 50-77-0089 conveyed the surface estate to Mr. George B.M. Gustafson, Trustee who in turn divested his interest "for the use and benefit of the occupants of the Townsite of Wainwright, Alaska, according to their respective interests, and to his successors in trust" including the following tracts: USS 4418 Tr A, Section 24 USS 4418 Tr B, Sections 24 & 25 USS 4418 Tr D, Sections 24 & 25 The Federal Government reserved the right to put in Rights of Ways and the coal and oil and gas minerals. Wainwright #1 & #2 • • Bureau of Land Management The Wainwright School Site is located within USS 4418 TrA in the central part of the north half of Section 24 (USS 2401 on Plat). The surface was granted to the Bureau of Indian Affairs for use as the School site. The Federal Government reserved the right to ditches and canals and all minerals. ~ ! ~ Shallow Hazards Alaska Rural Energy Project,Wainwright, Alaska, Summer 2007 DOI has examined two seismic surveys in the Wainwright area. Thes~ se:isrnic surveys. are currently on file with AQGCC in the Wainwright #1 Perrnit to i?rill Application.~ The first is an E-W line that runs from the S. Meade well to the Arctic coast approximately 5- 10 miles SW of Wainwright. The second is a NE-SW line that parallels the coastline from north of the Peard Bay well to north of the Tunalik well and runs directly through Wainwright. These surveys, while shot for deeper targets, do not show any bright spots or other markers that indicate shallow gas hazards in the vicinity of the proposed drill site. In addition, DOI has examined the geophysical and mud logs from the oil and gas wells closest to Wainwright: S. Meade, Tunalik, Kugrua, and Peard Bay wells ~these Ic~gs axe also cuYrently on file with AOGCC in the Wainwright #I Permit to Drill Applica~ior~. All mud logs show that mud weights in the shallow subsurface (<5000 ft) were kept between 9.0 ppg and 10.0 ppg. This indicates that no shallow overpressured conditions were expected or encountered during the drilling of these wells. From this information, DOI does not expect to encounter any shallow hazards during the drilling of this well. 06-07 -07;06:59PM;ol~oon~ . ;763_2926 # 2/ 2 Ms. Beth Macl~an Bureau of Land Managcmcnt 222 West Seventh Avenue, #13 Anchorage, AK 99513 Dear Ms. Maclean: .~une 7, 2007 Olgoonik Corporacion (OC) is supportive of your efforts to evaluate coalbed natural gas potential of Wainwright as outlin~d in the town meecings you have held in Wainwright. We apgreciate the effort that you have put forth on this project an behalfoCour communiiy. - OC has land entidements within the city limits of Wain~vrigllt and also outside of these boundaries. OC recognizes the benefits that could occur from having a lacat, energy source available for the community. We reco~nize the cooperative work planned between Federal, State, and the private sector and ate pleased to be a part of this effort in conjunciion with Arcitic Slape Re~ional Corporataan, We appreciate the fact that the Bureau of Land Mana~~ment and US Geological Survey are making a good ~a~ith efforl to involve local eommunities in locatin~ local sources of energy in rural Alaska. Sincerely, ~ ,~a~~~~. ~ w ~,ucille Mayer Presideni, Olgoonik Corporation Cc; Teresa Imm, Axctic Slope Regional Corporation PTD#:2071060 Cam Administrafion I1 ~3 14 ~15 16 7 '8 '9 '10 ~~~~11 Appr Date ,12 SFD 8/14l2007 ~'i14 • ~ ,~ UU 15 16 17 Engineering Appr Date TEM 9/4I2007 ~~ 1~' \ (~I.~~Otl~ 6 Geology Appr Date SFD 8/14/2007 G,3,a8 18 19 ~'~~~~' 'Field & Pool _ _ _ ~~~.. Well Name: WAINWRI_G_H__T_2 __ _ Pro ram EX_P____ Well bore se __ _ __ g g ny U S DEPT 0_F INTERIOR __ __ ___ __.__ __ Initial Class/Type EXPl_PEND _GeoArea 890 __ ____ Unit ____._ __._ OnlOff Shore On __ Annular Disposal Permit fee attached _ _ . NA_ _ _ _ _ _ _ ~ease numberappropriate_ . . . . . Yes _ _ _ _ _ _ _ No lease_involyed: _BLM_land, $PACING EXCEPTION NEEDED because of nearby shoreline (state-federal bntlry) Uni_que weli name and number . Yes _ _ . . Well located in a_defined_pooi . No _ _ _ _ _ _ Exploraiorywell . Well located proper dis~ance_from_ drilling unit_boundary No_ _ ____ SPACING EXCEPTION R_EQUIRED: well is within 1500'_of shoreline, which is boundary between fed & state lease Well located proper distance_ from other weils_ ___ . No_ _ ______ Wainwrighl 1 is located less than 50' away_(but it may be P&A'd; no reports available). _ Sufficient acreage available in driping unit_ __ No _ __ Secontl well in Section_ 24_(but Wainwright 1 may be P&A d, no repofts available) If deviated, is wellbore plat included NA_ _ __ __ Vertical well, buk close_prowmity ko Wainwright 1_ means a waiver_from 20 AAC 25.050(aj is needed. Operator only affected party_ __ __ . No_ _ ___ Need Designation of Operafor form._ The_form_filed on 6/8/2007 was_specific to Watnwright #1 I~cation. . Opera#or has_appropriate_ bond in force _ _ _ _ _ . No_ _ _ _ _ _ _ _ Waiyer of bonding requirements neetled: requested in permit application_ _ _ _ _ _ _ _ _ _ Permil can be issued without consen!alion order_ _ . . No_ _ ______ Need exception for spacing and waiy@rs for wellbore suryeys, weli sile.surveys, bonding,_BOPE, and gas & H2S Permit can be issu_ed without administrative_approval . . . Yes _ ____. detec#ion equipment._ . . Can permit be approved before 15-day_wa_it . No_ _ ____ We_II located within area and strata authorized by_Injection ~Cder #(put10# in_comments) (For_ NA All welis within 1/4_mile area of teyiew identifietl (For service well only) . . NA_ _ __ . Pre-produced in~ector; duration of pre-production less than 3 months (For service well. only) _ NA_ _ __ __ Nonconve_n, gas conforms to A$31,05,030(~.1.A),(j.2.A-D} . . Yes _ _ _ _ _ _ _ _ . . . . Contluctor string,providetl . Yes _ -- _ _ _ __- 6-5/8 80', _ _ @ Su _rface casing_protects all.known_ USDWS _ . NA_ _ _ _ Continuous core hole below conductoC_ _ _ _ _ _ _ _ _ _ _ _ _ CMT vol adeguate_to circulate.on conductor_& surf_csg Yes _ ______ Adequate excess for conductor. . Pla_n is to use bentonite grout ko_ seal in PVC casing to t_est coal gas. CMT vol atlequale_to tie-in long string to surf csg_ _ NA_ _ CMT_will coyer all knownp[oductiye horizons_ . No_ _ ___ _ Czsing designs adequate f_or C, T, B&_peCmafrost . . .. Yes _ ___... Low pressure operation planned. I.nterior_freeze_protected with propylene_gly_col, ___ . Adequate tankage_or reserve pit _ . . . . Yes . _ _ _ - Plan states rig equipped with tanks_ _ _ _ _ _ _ _ _ _ _ _ _ . If a_re-drill, has a,10-403 for abandonmenk been approved NA_ _ ___, No sundry was obtained to abandon_Wainwrght_#1, __ . Atlequate wellbore separation_proposed . No_ _ _ _ _ _ _ _ Wainwright #1located less than 50' distant at su_rface, _ _ . . If diverter require.d, does it meet regu_la_tions_ __ _ Yes _ ______ Will employ a rotating head, Rotating_head will pr_otect_d_riller's area and divert flow._ __ .. Drillinq fluid_program schematic & equip list adequat_e . Yes _ ______ Expected formati4n_ pressures 9.p - 9.8 EMW.. Provision_to weight up to 10:5_ ppg if needed._ _ BOPEs,_tlo they meet_ regulation ___ . N_A_ _ ____., BOP is not planned for this surface hole section, _ BOPE_press [ating appropriate; test to_(put psig irrcomments) _ _ _ _ _ NA_ _ _ _ _ _ Choke_manifold complies w/APl_RP-53 (May 84) NA_ _ _ _ _ _ _ _ . Work will occur without operation shutdown . Yes _ __ Is presence_of H2S gas_probable _ No_ _ __ - Mechanical condition of wells within AOR verified (For_service well gnly) . _ _ _ _ _ _ _ _ _ _ _ NA. . _ _ _ _ . . . - _--- - -_..-- ------- --- Permitcan be issued w!o hydr_ogen_sulfide measures . . es _ -.- . - - -- - - - .. - ____.. The Commission has no report_of H2S o[gas from Wainwri ht 1 or 2._ ___ 9 Data_presentetl oq potential ove_rqres_sure zones _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Yes _ _ _ _ _ _ . Offse# seismie and w_itlely separatetl_well control examined by operator:_ no_@vitlence of any shallow drillin _ 9 Seismic analysis. of shallow gas_zgnes. . . N_o_ _ ____,_ hazards was observed, _ . Seabed condition survey_(if off_-shore) _ , _ NA_ _ _ _ _ _ _ . _ . . . Contact name/phone for weekly_progress reports [exploratory only] Yes _ _ _ _ _ _ _ Beth Maclean, 907-271-1985_ _ _ _ _ _ Geologic Engineering Public Wainwright 1 was drilied to a depth greater than 950' (weekly status reports were not submittetl) then broken drill rods were lost in Date: Date Date Commissioner: ~ Commissioner. Commissioner the hole. The rig was moved ~40' NW, & a second unpermittetl well, Wainwright 2, was drilled to ~1000'. A spacing exception was requiretl, along with a Designation of Operator form, & bonding, BOPE, wellbore& well site surveys, & gas detection waivers. Public notice & opportunity for hearing were circumvented. Hearing held 10/25107, antl CO 600 was issued 5/23l08. SFD 613/08 ~ ~ ~ Z° 7 - ~c~ Wainwright 2- Permit to Drill Application Note to File A permit to drill application for a coal bed methane test well in the City of Wainwright, named the Wainwright 1 well, was approved by the Commission on June 11, 2007. Drilling operations apparently began that same week, and the well was subsequently drilled to a depth at least 950' (weekly status reports required by the letter of approval for the permit to drill were not submitted). After drill rods were broken and lost in the hole, the BLM/USGS team moved the rig about 40' to the northwest, where they then drilled a second, unpermitted well that was subsequently named Wainwright 2. I first became aware of Wainwright 2 through a phone call on July 23, 2007, after drilling and coring operations had ceased (again, operations reports are lacking). On July 24, I requested BLM submit a permit to drill application for Wainwright 2 so that all data from the wells could be properly recorded. The Permit to Drill form for Wainwright 2 received on July 31, 2007 is incomplete. Missing are: X, Y coordinates, a more relevant property designation {a lease or agreement number should be supplied), land use permit information, anticipated pressure information, distance to nearest property line and distance to nearest well in pool. Csranted, these are small items, but whatever the operator doesn't fill in, Commission staff must find elsewhere. The Wainwright 2 location requires a spacing exception because it is within 1,500' of a property line (the shoreline, which is the state-federal land ownership boundary). Operations reports are lacking, but presumably Vt~ainwright 1 was plugged and abandoned due ta junk in the hole, so other drilling unit and well spacing requirements likely do not apply. Waivers were needed for bonding, blow out prevention equipment, wellbore surveys, well site surveys, and gas and H2S detection equipment. A 34-day public comment period would have been required prior to granting of the waivers for Wainwright 2. These same waivers were granted for the Wainwright 1 well in CO 582, after the 30-day public comment period concluded. A separate Designation of Operator form is also required for Wainwright 2 because the form filed by BLM on June 8, 2007 was specific to the surface location of Wainwright 1. By proceeding as they did, the BLM ignored AOGCC regulations and circumvented the public notice and comment process. Please note that this is the BLM's third application for a coal-bed methane test well and BLM has now drilled two coal bed methane exploratory wells, so familiarity with Commission regulations is expected. Suggested path forwazd: 1. Process and approve the permit to drill application to ensure proper recording of data from both Wainwright 1 and Wainwright 2. 2. In the permit to drill approval letter, place BLM on notice that a spacing exception is still required to complete or test Wainwright 2. 3. The public hearing concerning the waivers needed to drill Wainwright 2 no longer seems necessary since the operator has already finished the well. The public comments concerning the waivers for bonding, BOPE, wellbore surveys, well site surveys and gaslH2S detection equipment are now moot. 4. BLM should be reprimanded and fined a significant amount for lack of familiarity and compliance with Commissio egulations, and for circumventing the public hearing process. ~7 ~ ~ ~ ~ 0~ ~ ~ rA~ ~~r-~ ~~~v~g ~ ~ ~. ° ~~. ~ ~- io~ ~ ~ Wainwright #2 Conformance to AS 31.05.030(j) (j) For exploration and development operations involving nonconventional gas, the commission Wainwright #2 is a coaZ bed methane (non-conventi.onal gas} exploration well. (1) may not (A) issue a permit to drill under this chapter if the well would be used to produce gas from an aquifer that serves as a source of water for human consumption or agricultural purposes unless the commission determines that the well will not adversely affect the aquifer as a source of water for human consumption or agricultural purposes; or The Wainwright #2 well is located on BI.M lands ~ithin the city of WainTVright. The Village of Wainwright abtains its drinking water from surface water sources according to the Alaska Department of Environmenta2 Conservatioa, Division of Eavironmeatal Health, Dri.aking Water Program and the Alaska D~part~reent of Natural Resources LaAd Admiaistration System. The sources are located in the NW quarter of the SW quaxter of Section 9, T31N, .R31W, UM, which is m.ore than 2-1/2 miles from the proposed we11 .Iocatioa. In this area, the base of pezmafrost lies approximately 900' below the grouad surface. The location of this well and the a,bundant surface water nearby make it highly unlikely that any potential aquifers affected by the weZl wi11 ever be used to provide water for human consumption or agricultural purposes. (B) allow injection of produced water except at depths below known sources of water for human consumption or agricultural purposes; No produced ~ater. ( 2 ) shall (A) regulate hydraulic fracturing in nonconventional gas wells to assure protection of drinking water quality; The we12 was not hydraulically fractured. (B) regulate the disposal of wastes produced from the operations unless the disposal is otherwise subject to regulation by the Department of Environmental Conservation or the United States Environmental Protection Agency; Aacordi.ng to Beth Maclean of BLM, wastesvater ~ras not injected, but was instead collected and tran.sported to the local sewagse lagoon for disposal. Cuttings ~sere aZso transportea2 to the local landfill for disposal. Wainwright #2 Conformance t~ 31.05.030(j) ~ Page Z of2 August 14, 2007 (C} [Repealed, Sec. 6 ch 79 SLA 2005]. (D) as a condition of approval of a permit to dri11 a well for production or production testing of coal bed methane, require the operator to design and implement a water well testing program to provide baseline data on water quality and quantity; the commission shall make the results of the water well testing program available to the public. Not applicable. No water wells in this area. Steve Davies AOGCC August 14, 2007 ~~ I ~ /~~ ~ i ~~. ~ ~~ ~ Davies Ste hen F DOA " ~ N ~ From: Davies, Stephen F (DOA) Sent: Monday, July 30, 2007 4:02 PM To: 'Beth Maclean@ak.blm.gov' Subject: RE: Permit to Drill Wainwright #2 Beth, 1. Will the well log and seismic information submitted to AOGCC with the Wainwright #1 well suffice for the Permit for Wainwright #2? The simplest course would be to state that the required well log and seismic information is currently on file with the AOGCC within the Wainwright #1 permit to drill application. 2. Do I need to submit another Bond Waiver request, or will the Wainwright #1 request suffice? Yes, you will need to submit the same list of waiver requests that USGS/BLM included in the Wainwright #1 application. 3. Is another Permit Fee required? No, as of July 12, 2007, when Alaska Senate Bill No. 109 was signed into law by Governor Palin, there is no longer a filing fee for permits to drill. Please let me know if you have any further questions. Thanks, Steve Davies AOGCC --Original Message----- From: Beth MacleanCak.blm.gov [mailto:Beth_Maclean@ak.blm.gov] Sent: Monday, July 30, 2007 3:20 PM To: Davies, Stephen F (DOA) Cc: aclark@usgs.gov Subject: Permit to Drill Wainwright #2 Steve, I have filled out the Permit to Drill for the Wainwright #2 well, but before I submit it, I want to make sure it is complete for AOGCC and have the following questions 1. Will the well log and seismic information submitted to AOGCC with the Wainwright #1 well suffice for the Permit for Wainwright #2? 2. Do I need to submit another Bond Waiver request, or will the Wainwright #1 request suffice? 3. Is another Pennit Fee required? Thanks for your help. Beth Maclean Acting Energy Branch Chief Bureau of Land Management 6881 Abbott Loop Rd. Anchorage, AK 99507 907-267-1429 or 907-271-1985 Fax: 907-267-1304 1 ~ Davies, Stephen F (DOA) From: Davies, Stephen F (DOA) Sent: Wednesday, July 25, 2007 4:47 PM To: Arthur C Clark Subject: RE: AOGCC sundry request Art, ~ Page 1 of 3 I would recommend holding off submitting the completion report for the second Wainwright well until the permit applicaiton is approved. The permit to drill will have an API number and a permit to drill number that are needed for the completion report. For nearly all wells in Alaska, an "A" suffix in the well number is used to denote a redrill (sometimes called a"sidetrack"). I would suggest that you name the well Wainwright 2 to avoid any confusion the 1A number might cause. Please let me know if you have additional questions. Thanks, Steve Davies AOGCC 907-793-1224 From: Arthur C Clark [mailto:aclark@usgs.gov] Sent: Tuesday, July 24, 2007 3:16 PM To: Davies, Stephen F (DOA) Cc: shearer@alaska.net; Beth_Maclean@ak.blm.gov Subject: RE: AOGCC sundry request Thanks Steve, I was wondering how I was going to fill out two completion forms using one permit. Should I go ahead and fill out the completion form for Wainwright 1 now and hold off on Wainwright 1A until the permit has been granted? No doubt I'll have a few more questions and won't hesitate to call when, not if, I do. Thanks again, Art -----"Davies, Stephen F (DOA)" <steve.davies@alaska.gov> wrote: ----- To: shearer@alaska.net, Arthur C Clark <aclark@usgs.gov> From: "Davies, Stephen F (DOA)" <steve.davies@alaska.gov> Date: 07/24/2007 03:38PM cc: Beth_Maclean@ak.blm.gov Subject: RE: AOGCC sundry request Art, ]erry is correct, all information from the two well bores must be treated and labeled as separate wells. I have to reverse my stream-of-conciousness discussion with Jerry: per 20 AAC 25.005, a permit to drill application will be required for Wainwright 2, even though it is after-the-faet. I need to assign a permit to drill number and an API number for the second well based on the application, so the sooner the better. 8/7/2007 ~ ~ Page 2 of 3 rompletion reports will also be required for both wells, and all data and samples must be labeled clearly ~o that there is no confusion as to what data came from which wella 411 other requirements of 20 AAC 25.071 apply. The Commission still requires one paper print of all ~nud and well logs. However, in lieu of a sepia print for each log, we prefer to receive digital files (log mage in PDF or PDS format plus the log curve data in LAS format). [f BLM/USGS would like to waive the 24-month confidentiality period for information concerning these wells, then per 20 AAC 25.537(d): Except as provided by (a) of this section, the reports and information required by this chapter to be filed by the operator will be kept confidential by the commission for 24 months following the 30-day filing period after well completion, suspension, or abandonment unless_ the ~erator__g.ives written and _unrest_ricted _permission to retease all_of the_reports_and _information__at an__earlier_date__. Upon notification that the commissioner of the Department of Natural Resources has made a finding that the required reports and information from a well contain significant information relating to the valuation of unleased land in the same vicinity, the commission will hold the reports and information confidential beyond the 24-month period and until notified by the commissioner of the Department of Natural Resources to release the reports and information. Please let me know if you have any questions. Steve Davies Alaska Oil and Gas Conservation Commission 907-793-1224 From: shearer@alaska.net [mailto:shearer@alaska.net] Sent: Monday, July 23, 2007 12:57 PM To: Arthur C Clark Cc: Beth_Maclean@ak.blm.gov Subject: Re: AOGCC sundry request Art, These should be treated as two separate wells; Wainwright - 1 and Wainwright - 2. You should submit a Completion Report for each well. The wells are not plugged and abandoned as you still have monitoring equipment in the hole. I believe you would check off the Suspended box in la. I spoke to Steve T. and he thought that you would not need to file a retroactive permit application for the second well. He thought that it would make no sense at this point, but that may still be an open question. The State will assign separate API numbers to the wells. Obviously, any data from either well should be identified as to whether it is from Wainwright - 1 or Wainwright - 2. Steve T. asked if the information on the well was to remain proprietary. He said that if it was to be made public that he needed a release from you or Beth. If you have any other questions just email or call. Good lucke ----- Original Message ----- From: Arthur C_CI_ark To: shearera(~alaska.net Sent: Monday, July 23, 2007 9:52 AM Subject: Re: AOGCC sundry request ]erry, Sorry to hear you're not working on a BLM contract any longer. Your knowledge and help in the permitting process has been invaluable and most appreciated. Quick question: Since we set a temperature monitor well to a depth of 950' in the abandoned first well (due to broken and irretrievable drill rods), then drilled a second well and also set a temperature monitor well in that (1250'), any suggestions on how we fill out the completion form? Should we still consider this as one well or will we need two forms? Also, what does this make the status of our well? 8/7/2007 ~ Plugged, Abandoned, Suspended, or Other? Thanks again for all your help and best of luck in future endeavors, Art <shearer@alaska.net> 07/20/2007 06:40 PM ~ Page 3 of 3 To "Arthur C Clark" <aclark@usgs.gov> cc Subject Re: AOGCC sundry request Art, I am not working for BLM any more. However, I would be glad to help in any way I can. I just taiked to Beth. I believe what you will need is to complete the AOGCC "Completion Report". The placing of a thermister string should not require a sundry request since it was permitted under the original submitted documents; other changes in the program might require further documentation. The bottom line is you appear to have had a very sucessful summer! As they say, the third time is often the charmed one even though from a permitting standpoint it looked iffy right up to the end. Good luck. Jerry ----- Original Message ----- From: Arthu_r_C._Clark To: Gerald Shearer Sent: Friday, July 20, 2007 1:18 PM Subject: Re: AOGCC sundry request Hi Jerry, I'm not sure if Beth talked with you about several changes we made to our original application plan or not but we definitely need to submit a sundry request (after the fact) to AOGCC to get everything in order. If you're in next week, let me know when a good time to talk with you would be so that I can filt you in on the details. Thanks, Art 8/7/2007 ~ Davies, Stephen F (DOA) From: Arthur C Clark [aclark@usgs.gov) Sent: Tuesday, July 24, 2007 3:16 PM To: Davies, Stephen F (DOA) Cc: shearer@alaska.net; Beth_Maclean@ak.bim.gov Subject: RE: AOGCC sundry request Thanks Steve, ~ Page 1 of 3 I was wondering how I was going to fill out two completion forms using one permit. Should I go ahead and fill out the completion form for Wainwright 1 now and hold off on Wainwright lA until the permit has been granted? No doubt I'll have a few more questions and won't hesitate to call when, not if, I do. Thanks again, Art -----"Davies, Stephen F (DOA)" <steve.davies@alaska.gov> wrote: ----- To: shearer@alaska.net, Arthur C Clark <aclark@usgs.gov> From: "Davies, Stephen F (DOA)" <steve.davies@alaska.gov> Date: 07/24/2007 03:38PM cc: Beth_Maclean@ak.b~m.gov Subject: RE: AOGCC sundry request Art, Jerry is correct, all information from the two well bores must be treated and labeled as separate wells. I have to reverse my stream-of-conciousness discussion with Jerry: per 20 AAC 25.005, a permit to drill application will be required for Wainwright 2, even though it is after-the-fact. I need to assign a permit to drill number and an API number for the second well based on the application, so the sooner the better. Completion reports will also be required for bath wells, and all data and samples must be labeled clearly so that there is no confusion as to what data came from which well. All other requirements of 20 AAC 25.071 apply. The Commission still requires one paper print of all mud and well logs. However, in lieu of a sepia print for each log, we prefer to receive digital files (log image in PDF or PDS format plus the log curve data in LAS format). If BLM/USGS would like to waive the 24-month confidentiality period for information concerning these wells, then per 20 AAC 25.537(d): Except as provided by (a) of this section, the reports and information required by this chapter to be filed by the operator will be kept confidential by the commission for 24 months following the 30-day filing period after well completion, suspension, or abandonment un_less.the operator_gives w_ritten_and unr__estricted_~ermission_to re_lease_all of_the_re~orts and information at an earlier date . Upon notification that the commissioner of the Department of IVatural Resources has made a finding that the required reports and information from a well contain significant information refating to the valuation of unleased land in the same vicinity, the commission will hold the reports and information confidential beyond the 24-month period and until notified by the commissioner of the Department of Natural Resources to release the reports and information. Please let me know if you have any questions. ~~ ~ Page 2 of 3 ~teve Davies alaska Oil and Gas Conservation Commission a07-793-1224 From: shearer@alaska.net [mailto:shearer@alaska.net] 5ent: Monday, July 23, 2007 12:57 PM ~o: Arthur C Clark Cc: Beth_Maclean@ak.blm.gov 5ubject: Re: AOGCC sundry request Art, These should be treated as two separate wells; Wainwright - 1 and Wainwright - 2. You should submit a Completion Report for each well. The wells are not plugged and abandoned as you still have monitoring equipment in the hole. I believe you would check off the Suspended box in la. I spoke to Steve T. and he thought that you would not need to file a retroactive permit application for the second well. He thought that it would make no sense at this point, but that may still be an open question. The State will assign separate API numbers to the wells. Obviously, any data from either well should be identified as to whether it is from Wainwright - 1 or Wainwright - 2. Steve T. asked if the information on the well was to remain proprietary. He said that if it was to be made public that he needed a release from you or Beth. If you have any other questions just email or call~ Good luck. ----- Original Message ----- From: Arthur C Clark - ---- - To: shearer@alaska,net Sent: Monday, July 23, 2007 9:52 AM Subject: Re: AOGCC sundry request Jerry, Sorry to hear you're not working on a BLM contract any longer. Your knowledge and help in the permitting process has been invaluable and most appreciated. Quick question: Since we set a temperature monitor well to a depth of 950' in the abandoned first well (due to broken and irretrievable drill rods), then drilled a second well and also set a temperature monitor well in that (1250'), any suggestions on how we fill out the completion form? Should we still consider this as one well or will we need two forms? Also, what does this make the status of our well? Plugged, Abandoned, Suspended, or Other? Thanks again for all your help and best of luck in future endeavors, Art <shea rer~alaska. net> 07/20/2007 06:40 PM To "Arthur C Clark" <aclark@usgs.gov> cc Subject Re: AOGCC sundry request art, I am not working for BLM any more. However, I would be glad to help in any way I can. I just talked to Beth. I believe what you will need is to complete the AOGCC "Completion Report". The placing of a 8/7/2007 ~ ~ Page 3 of 3 thermister string should not require a sundry request since it was permitted under the original submitted documents; other changes in the program might require further documentation. The bottom line is you appear to have had a very sucessful summer! As they say, the third time is often the charmed one even though from a permitting standpoint it looked iffy right up to the end. Good luck. Jerry ----- Original Message From: Arth_ur C__Cla_rk To: Gerald Shearer Sent: Friday, July 20, Subject: Re: AOGCC Hi Jerry, 2007 1:18 PM sundry request I'm not sure if Beth talked with you about several changes we made to our original application plan or not but we definitely need to submit a sundry request (after the fact) to AOGCC to get everything in order. If you're in next week, let me know when a good time to talk with you would be so that I can fill you in on the details. Thanks, Art 8/7/2007 ~ Davies, Stephen F (DOA) ~ Page 1 of 2 From: shearer@alaska.net Sent: Monday, July 23, 2007 12:57 PM To: Arthur C Clark Cc: Beth_Maclean@ak.blm.gov Subject: Re: AOGCC sundry request Art, These should be treated as two separate wells; Wainwright - 1 and Wainwright - 2. You should submit a Completion Report for each well. The wells are not plugged and abandoned as you still have monitoring equipment in the hole. I believe you would check off the Suspended box in 1 a. I spoke to Steve T. and he thought that you would not need to file a retroactive permit application for the second well. He thought that it would make no sense at this point, but that may still be an open question. The State will assign separate API numbers to the wells. Obviously, any data from either well should be identified as to whether it is from Wainwright - 1 or Wainwright - 2. Steve T. asked if the information on the well was to remain proprietary. He said that if it was to be made public that he needed a release from you or Beth. If you have any other questions just email or call. Good luck. ----- Original Message ----- From: Arthur C_Ciark To: shearer~alaska.net Sent: IVlonday, July 23, 2007 9:52 AM Subject: Re: AOGCC sundry request Jerry, Sorry to hear you're not working on a BLM contract any longer. Your knowledge and help in the permitting process has been invaluable and most appreciated. Quick question: Since we set a temperature monitor well to a depth of 950' in the abandoned first well (due to broken and irretrievable drill rods), then drilled a second well and also set a temperature monitor well in that (1250'), any suggestions on how we fill out the completion form? Should we still consider this as one well or will we need finro forms? Also, what does this make the status of our well? Plugged, Abandoned, Suspended, or Other? Thanks again for all your help and best of luck in future endeavors, Art <shearer~alaska.neb 07/20/2007 06:40 PM Art, To ~~Arthur C Clark" <aclark@usgs.gov> cc Subject Re: AOGCC sundry request I am not working for BLM any more. However, I would be glad to help in any way I can. t just talked to Beth. I believe what you will need is to complete the AOGCC "Completion Report". The placing of a thermister string should not require a sundry request since it was permitted under the original submitted documents; other changes in the program might require further documentation. The bottom line is you appear to have had a very sucessful summer! As they say, the third time is often the charmed one even though from a permitting standpoint it looked iffy right up to the end. Good 8/7/2007 ~ luck. Jerry ----- Original Message ----~ From: Arthur_C_Clark To: Gerald_Shearer Sent: Friday, July 20, 2007 1:18 PM Subject: Re: AOGCC sundry request HiJerry, ~ Page 2 of 2 I'm not sure if Beth talked with you about several changes we made to our original application plan or not but we definitely need to submit a sundry request (after the fact) to AOGCC to get everything in order. If you're in next week, let me know when a good time to talk with you would be so that I can fill you in on the details. Thanks, Art 8/7/2007 ~ ~ Page 1 of 2 Davies, Stephen F (DOA) From: Davies, Stephen F (DOA) Sent: Tuesday, July 24, 2007 1:38 PM To: shearer@alaska.net; Arthur C Clark Cc: Beth_Maclean@ak.blm.gov Subject: RE: AOGCC sundry request Art, Jerry is correct, all information from the finro well bores must be treated and labeled as separate welis. I have to reverse my stream-of-conciousness discussion with Jerry: per 20 AAC 25.005, a permit to drill application will be required for Wainwright 2, even though it is after-the-fact. I need to assign a permit to drill number and an API number for the second well based on the application, so the sooner the better. Completion reports will also be required for both wells, and all data and samples must be labeled clearly so that there is no confusion as to what data came from which well. All other requirements of 20 AAC 25.071 apply. The Commission still requires one paper print of all mud and well logs. However, in lieu of a sepia print for each log, we prefer to receive digital files (log image in PDF or PDS format plus the log curve data in LAS format). If BLM/USGS would like to waive the 24-month confidentiality period for information concerning these wells, then per 20 AAC 25.537(d): Except as provided by (a) of this section, the reports and information required by this chapter to be filed by the operator will be kept confidential by the commission for 24 months following the 30-day filing period after well completion, suspension, or abandonment unless the_operator_giyes_wntten_and_un_restncted_permission to_release al.l_of_the reports.and information_at an_earlier_date. Upon notification that the commissioner of the Department of Natural Resources has made a fnding that the required reports and information from a well contain significant information relating to the valuation of unleased land in the same viciniry, the commission will hold the reports and information confidential beyond the 24-month period and until notified by the commissioner of the Department of Natural Resources to release the reports and information. Please let me know if you have any questions. Steve Davies Alaska Oil and Gas Conservation Commission 907-793-1224 From: shearer@alaska.net [mailto:shearer@alaska.net] Sent: Monday, July 23, 2007 12:57 PM To: Arthur C Clark Cc: Beth_Maclean@ak.blm.gov Subject: Re: AOGCC sundry request Art, These should be treated as two separate wells; Wainwright -1 and Wainwright - 2. You should submit a Completion Report for each well. The wells are not plugged and abandoned as you still have monitoring equipment in the hole. I believe you would check off the Suspended box in 1 a. I spoke to Steve T. and he thought that you would not need to file a retroactive permit application for the second well. He thought that it would make no sense at this point, but that may still be an open question. The State will assign separate API numbers to the wells. Obviously, any data from either well should be identified as to whether it is from Wainwright - 1 or Wainwright ~ 2. Steve T. asked if the information on the well was to remain proprietary. He said that if it was to be made public that he needed a release from you or Beth. If you have any other questions just email or call. Good luck. 8/7/2007 ~ ____ Original Message ----- =rom: A~thur_C_Clark fo: shearer@alaska,net 3ent: Monday, July 23, 2007 9:52 AM 3ubject: Re: AOGCC sundry request Jerry, ~ Page 2 of 2 Sorry to hear you're not working on a BLM contract any longer. Your knowledge and help in the permitting process has ~een invaluable and most appreciated. Quick question: Since we set a temperature monitor well to a depth of 950' in the abandoned first well (due to broken and irretrievable drill rods), then drilled a second well and also set a temperature monitor well in that (1250'), any suggestions on how we fill out the completion form? Should we still consider this as one well or will we need two forms? Also, what does this make the status of our well? Plugged, Abandoned, Suspended, or Other'? Thanks again for all your help and best of luck in future endeavors, Art <shearer~alaska. net> 07/20/2007 06:40 PM art, To ~~Arthur C Clark" <aclark(a~usgs.gov> cc Subject Re: AOGCC sundry request I am not working for BLM any more. However, I would be glad to help in any way I can. I just talked to Beth. I believe what you will need is to complete the AOGCC "Completion Report". The placing of a thermister string should not require a sundry request since it was permitted under the original submitted documents; other changes in the program might require further documentation. The bottom line is you appear to have had a very sucessful summer! As they say, the third time is often the charmed one even though from a permitting standpoint it looked iffy right up to the end. Good luck. Jerry ----- Original Message ----- From: Arthur_C_Clark. To: Gerald Shearer Sent: Friday, July 20, 2007 1:18 PM Subject: Re: AOGCC sundry request HiJerry, I'm not sure if Beth talked with you about several changes we made to our original application plan or not but we definitely need to submit a sundry request (after the fact) to AOGCC to get everything in order. If you're in next week, let me know when a good time to talk with you would be so that I can fill you in on the details. Thanks, Art 8/7/2007 ~ • TRANSMITTAL LETTER CHECKLIST , ~~ Z WELL NAME ~ G~ /G~ Gl~V" f PTD# ~7 ~ IO ,~_ Development Service !/ Exploratory Stratigraphic Test Non-Conventional Well Circle Appropriate Letter 7 Paragraphs to be Included in Transmittal Letter CHECK ADD-ONS TEXT FOR APPROVAL LETTER WHAT (OPTIONS) APPLIES MULTI LATERAL The permit is for a new wellbore segment of existing well ~ (If last two digits in permit Na , API No. 50- - - API number are between 60-69) Production should continue to be reported as a function of the original API number stated above. PILOT HOLE In accordance with 20 AAC 25.005( fl, all records, data and logs acquired for the pilot hole must be clearly differentiated in both well name ( PH) and API number (50- - -_) from record , data and logs ~ acquired for well ~-s' SPACING The permit is approved subject full ompliance with 20 AAC EXCEPTION 25.055. Approval to perforate roduce in'ect is contingent ~ upon issuance of a conser ation or er approving a spacing exception. assumes the liability of any protest to the spacing exception that may-occur. DRY DITCH All dry ditch sample sets submitted to the Commission must be in SAMPLE no greater than 30' sample intervals from below the permafrost or from where samples are first caught and 10' sample intervals through target zones. Please note the following special condition of this permit: Non-Conventional production or production testing of coal bed methane is not allowed Well for (name of well) until after (Compan~Name) has designed and implemented a water well testing program to provide baseline data on water quality and quantity. SCom~any Name) must contact the Commission to obtain advance approval of such water well testing ro ram. Rev: 7/ 13/2007 Field & Pool __ _____Well Name: WAINWRIGHT 2 _ Program EXP Well bore seg ^ PTD#:2071060 Company U S DEPT OF INTERIOR Initiai ClasslType EXP / PEND GeoArea 890 Unit OnlOff Shore ~ Annular Disposai ^ Administration 1 P_e[mitfeeattached_ _ NA_ _ _ _ . . _ _ . 2 Lease number appropriate_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Yes _ _ _ _ _ _ _ No lea&e_involyed: _BLM_ land, SPAGING EXCEPTION.NEEDED because of nearb}! shoreline_(state-federai bndry) 3 Uniquewell_nameandnumber____________________________ ________ Yes, ___.____________________,____ -- -- - ----- ----- -- - - - 4 Welllocatedin,a.de_fined_pool______ ______ _______________ _________ No__ ______E~loratorywell________ - 5 Well located proper dis#ance from drilling unit boundary_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ No_ _ _ _ _ . _ _ SPACING EXCEPTION REQUIRED: well is within 1500'_of shoreline, which is.bountl~ry bQkiveen fed & skate_ lease 6 Well located proper distance from other wells_ _______ No_ _ __ _._ Wainwcight 1 is located less than 50' awa _ but it ma be P&A'd; no re o[ts availabl_e .___ -y~ Y p ~ 7 S_ufficient acreaqe_ayailable in_drilling unit_ _ _ _ _ _ . _ - No_ _ _ _ _ _ . Second well_in Section 24,(but Wa_inwright 1 may be P&A'd~no,reports available)__ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 8 If_deviated, is_wellbore plat_included _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ NA _ _ _ _ _ _ _ Ve~tical well, but close_proximity to Wainwright 1 means a waive[f[om 20_AAC.25,050(al is needed.. _ _ . . , . _ _ 9 Ope[ator gnly affected party_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ No_ _ _ _ _ _ _ Need_Designa_tion of_Operator form._ The form_file_d on 6/8l2_007 was.specifc.to Wainw[ight #1 location. _ . . _ . 1 D Ope[ator has_appropriate bond in force _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ No_ _ _ _ _ _ _ _ Waiver of bQnding [equirements needed:_r~que~ted in perm_it application._ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 11 Pe[mit_can be iss~ed without conservation order_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ No_ _ . _ _ . _ _ Need exception for spacing and waivers for well_bore suryeys,_well sife_ su[veys, bonding,_BOPE, and_ gas.& H2$ _ Appr Date 12 Permitcan be isSued without administta#ive_approval _ _ _ _ _ _ _ Yes _ _ . _ _ . detection_equipment._ _ _ _ _ _ _ _ _ _ - SFD 8/1412007 13 Can permit be approved before 15-day wait No 14 Well located within area and_str~ta auth4rizQd by Injection Order # (put 10# in_comments)_ (F9r_ NA_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 15 Allwells_within1l4_mile_area_ofreyiewidentified(Fo(servieewellonly)______ _________ NA__ ________________._.______,__.______ ---------- ---~- -- -------- 16 Pre-produced injectot duCation_of pre-production I_ess than_ 3 months_ (For_se[vice well only) . _ NA_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 17 Nonconyen, gas conforms3o AS31.05,030(j.1.Aj,(~.2.A-D) _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Yes _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ - - - Engineering 18 Conductorstring,provided_______________________________ ___.__ _ Yes_ ______6-518"@_8_0'._____.__ - 19 Su_rfacecaSing.pr4tectsall_knownU~DWs______________________ ____ __ NA__ __.__ Continuouscoreholebelowconductor._______________._._._ _._.______.______ _... 20 CMT_vol adeguate to circulate.on conductor & Surf_csg _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Yes _ _ _ _ . Adequate excess for conducto[. _Plan_is to use benionite grout to &eal_in PVC casing to test_coal gas. _ _ _ 21 CMT_voladequate_totie-inlongstringtosurfcsg____ ______________ ________ NA_. _,__. ,_._________ _____ 22 CMT_will cover_all known_productive horizons_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ N_o_ _ _ _ _ _ _ - -- 23 Ca~ing design~ adequate for C, T, B &_ petmaf[o~t_ . _ . . . Yes _ _ _ _ _ _ Low pressure operation planned, Interio[freeze prote~t~d withpropylQne_glycql_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 24 A_dequatetan_kage_orreseryepit___________________________ _______ _ Yes_ ..._. Planstates[igequipped_withtanks.....,_____,.__ __,___ ________________________ 25 If_a_re-drill, has_a 1.0-403 for abandonment been approved _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ NA_ _ _ _ . _ . No sund was obtained_to abandon,Wainwri ht #1, . _ _ _ ry 9 26 Adequateweliboreseparation_proposed_____________________ _________ No__ ______Wainwriqht#1locatedlessthan50'distantatsurfzee,___________________________________ 27 If tlive~ter required., does it meet regulations_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Yes . _ _ _ _ _ . Will.employ a rotating head, Rotatinghead will protectdriiler's a[ea and dive_rt flow._ _ _ _ . . _ . _ _ _ _ , Appr Date I, 28 Drilling fluid prpgram sehematic_& equip list adequate_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Ye5 _ _ - . _ _ _ ExpeCted formation pressures 9;0 - 9;8 EMW._ Provi~ion to weight up io 1D.5 ppg if needed._ _ _ _ . _ , . . _ _ . _ TEM 9/4/2007 2g BOPEs,_do they meet regulation _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ NA_ _ _ _ _ _ _ _ BOP is_not planned f_or this surf_a_ce hole section. _ _ _ _ _ _ _ _ _ _ 30 BO_PE_press rating ~pprop[iate; tesi to_(put psig in comments)_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ NA_ _ _ _ , _ _ . _ _ _ _ _ _ , . _ _ _ _ _ , 31 Choke_manifoldcompliesw/API.RP-53GMay84)__________________ ________ NA,_ ______._._______ - 32 Work will occ_ur without operation shutdown_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Yes _ _ _ _ _ _ _ 33 Is presence_ of H2S gas probable - -- N0 --- - -- 34 Mechanical_conditiop of wells within AOR verified (For_se[vice wel_I only) _ _ _ _ _ _ _ _ _ _ _ _ _ _ NA_ _ _ _ . _ . _ . _ _ _ _ _ _ . _ _ . _ _ _ Geology 35 Pe[mit ean be isSued w/o hydrogen_ sulfide measures _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Yes _ . _ _ _ _ . The_Gommission has no reportof H2$ or gas from Wainwright 1 or 2._ _ _ _ _ 36 Data presented on potential overpressur_e zones_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Yes _ _ _ _ _ _ _ 0_ffset seismic and_w_idely_sepa_rated well control examined by ope[ator: no evidenee of any shallow d[illiqg_ _ . _ _ Appr Date 37 Seismic analysis of shallqw gas.zones_ _ _ _ _ _ _ _ _ _ _ No. _ . _ _ haz~cds wa& obseryed: . _ . . . SFD 8l1412007 38 Seabed condition survey_(if off-shore) _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ NA 39 Contact namelphone for weekly_progress reports [exploratory gnly] _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Yes _ _ _ _ _ _ _ Beth MaClean, 907-271-1985 _ _ _ _ _ _ . _ . . , _ _ _ _ . . _ . . _ Geologic Engineering Public Date: Date Date Incomplete application for a well drilled during June/July 2007. Wainwright 1 was drilled to a depth greater than 950' (weekly Commissioner: n~- Commissioner: C er ~j ,,' ~1~~~~ ~_s.~~ status reports were not submitted) then broken tlrill rods were lost in the hole. The rig was moved ~40' NW, & a second unpermitted well, Wainwright 2, was drilled to-1000'. A spacing exception was required, along with a Designation of Operator ~ f•~ ~ ~ ~%~ ~' ~~~ D 2 T form, & bonding, BOPE, wellbore& well site surveys, 8 gas detection waivers. Public notice & opportunity for hearing were circumvented . ~ v